National Labor Relations Board v. Nash-Finch Co.

211 F.2d 622, 33 L.R.R.M. (BNA) 2898, 45 A.L.R. 2d 683, 1954 U.S. App. LEXIS 3769
CourtCourt of Appeals for the Eighth Circuit
DecidedApril 13, 1954
Docket14882
StatusPublished
Cited by28 cases

This text of 211 F.2d 622 (National Labor Relations Board v. Nash-Finch Co.) is published on Counsel Stack Legal Research, covering Court of Appeals for the Eighth Circuit primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
National Labor Relations Board v. Nash-Finch Co., 211 F.2d 622, 33 L.R.R.M. (BNA) 2898, 45 A.L.R. 2d 683, 1954 U.S. App. LEXIS 3769 (8th Cir. 1954).

Opinion

SANBORN, Circuit Judge.

The National Labor Relations Board found that the Nash-Finch Company, a wholesaler of food and other products, had, in its dealings with its warehouse-men and truck drivers at its plant in Fargo, North Dakota, committed unfair labor practices in violation of § 8(a) (1), 8(a) (3) and 8(a) (5) of the National Labor Relations Act, as amended, 61 Stat. 136, 29 U.S.C.A. § 151 et seq. 103 N.L.R.B. No. 149. The Board has petitioned this Court for the enforcement of its order based upon such findings. The respondent asks that the order be set aside.

The controlling question in the case was stated by the Trial Examiner in his intermediate report as follows:

“The sole issue involved in this case is whether or not hospitalization insurance fully paid, and group life insurance partially paid for, by Respondent and enjoyed by its employees prior to July 26, 1951, together with a Christmas bonus consistently paid in previous years, could be unilaterally cancelled, withdrawn or withheld by Respondent after July 26, 1951, when Respondent and the Union entered into a collective bargaining agreement which made no explicit mention of any of the benefits aforementioned” 1

The Trial Examiner concluded that, although the agreement did not call for the continuation of the benefits referred to, it was the duty of the respondent not to terminate them without having bargained with the Union with respect to their discontinuance, and that the termination of the benefits was a violation of the organizational rights of the employees contrary to § 8(a) (1) of the Act, a refusal to bargain collectively in violation of § 8(a) (5) of the Act, and an attempt to discourage membership in a labor organization in violation of § 8 (a) (3).

The Board accepted the Trial Examiner’s findings, agreed with his conclusions, and adopted his recommendations. It ordered the respondent to make its union employees whole for any pecuniar)' *624 losses which they may have sustained on account of the termination of the insurance benefits until such time as they were restored or the respondent had terminated them after bargaining with the Union in good faith, and to make its employees whole for the withholding of their 1951 Christmas bonus. The Board also ordered the respondent to cease and desist from the unfair labor practices it was found to have committed.

The facts out of which this controversy arose are virtually undisputed. On May 14,' 1951, the General Drivers, Helpers, Warehousemen, Dairy Employees and Inside Workers Union, Local 116, A. F. of L., was, at a consent election held by the Regional Director of the Board at the respondent’s plant, selected as the collective bargaining representative of “all warehousemen and truck drivers employed at Respondent’s Fargo, North Dakota, plant, excluding office and clerical employees, watchmen and guards, professional employees, and supervisors as defined in the Act.” The Board, on May 21, 1951, certified the Union to be “the exclusive representative of all the employees in the unit * * * for the purposes of collective bargaining in respect to rates of pay, wages, hours of employment, and other conditions of employment.”

It had been customary for the respondent to maintain hospitalization insurance and to contribute toward the maintenance of group life insurance for all the employees at its Fargo plant, as well as to pay them a Christmas bonus. Prior to the selection of the Union as their collective bargaining representative, about one-half of the respondent’s warehouse-men and truck drivers at Fargo had individual contracts of employment with the respondent. During the organizational campaign preceding the election at the plant, the warehousemen and truck drivers were told by the respondent, in substance, that if they selected the Union to represent them the insurance benefits and Christmas bonus would be discontinued.

After the election and certification of the Union as the representative of these employees, the respondent and the Union held their first bargaining conference at respondent’s offices in Fargo on June 8, 1951. The Union was represented by Greg Helvig, its Secretary-Treasurer, and A1 Stolz, a shop steward. Stolz had worked for the respondent about twenty years and had a typical employment contract which called for hospitalization and group insurance and a Christmas bonus. Stolz was one of those who had heard the statement of the management that the employees would lose their bonuses and insurance if they selected the Union to represent them. The respondent’s representatives at the bargaining conference were George B. Wertin, its plant manager at Fargo, and C. W. Ferguson, its personnel director. The Union representative, Helvig, submitted a draft of a proposed contract, which Ferguson said he would have to take to the respondent's main office in Minneapolis for study.

The next bargaining conference was held at Fargo on July 10, 1951. The respondent submitted a counter proposal. The Union’s objective was an increase in wages. Tentative agreement as to wage rates as well as a guaranteed work week of 46 hours was reached. The draft, of the proposed contract submitted to> the respondent by the Union had contained an Article 5 relative to maintenance of standards, reading as follows:

“The Employer agrees that all conditions of employment relating to wages, hours of work, overtime differentials, and general working conditions shall be maintained at not less than the highest minimum standards in effect at the time of the signing of this agreement, and the conditions of employment shall be improved wherever specific provisions for improvement are made elsewhere in this agreement.”

At this July 10 meeting, Ferguson referred to this Article as “vague”, and was told by Helvig that “what we want to do by that clause is maintain all good *625 conditions that they [the employees] have had and then from that point work forward and build an agreement in addition to that and improve on other items, which is the purpose of collective bargaining.” During the negotiations, Ferguson had referred to the fact that the respondent had had insurance plans for its employees.

The proposed wage rates and work week understanding reached at the July 10 conference was submitted to the Union membership for approval, and was acceptable to them. Thereafter by letter of July 17, 1951, a second draft of a proposed contract was submitted to the respondent by the Union. On or about July 20 Helvig was called by Wertin to come to his office and look over the proposed contract which had been signed by the respondent’s President and sent to Wertin for execution. Helvig went over to Wertin’s office and obtained a copy of the contract “to look over.” The things he was most interested in were the work week and wages. Helvig retained the contract until July 23, when he discussed it with Wertin. They agreed to certain changes as a result of their discussion. Article 5 of the agreement as it was originally proposed by the Union had been amended by the respondent to read as follows:

“5. Maintenance of Standards.

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Bluebook (online)
211 F.2d 622, 33 L.R.R.M. (BNA) 2898, 45 A.L.R. 2d 683, 1954 U.S. App. LEXIS 3769, Counsel Stack Legal Research, https://law.counselstack.com/opinion/national-labor-relations-board-v-nash-finch-co-ca8-1954.