National Labor Relations Board v. Newman-Green, Inc.

401 F.2d 1, 69 L.R.R.M. (BNA) 2129, 1968 U.S. App. LEXIS 5675
CourtCourt of Appeals for the Seventh Circuit
DecidedAugust 29, 1968
Docket16598_1
StatusPublished
Cited by12 cases

This text of 401 F.2d 1 (National Labor Relations Board v. Newman-Green, Inc.) is published on Counsel Stack Legal Research, covering Court of Appeals for the Seventh 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. Newman-Green, Inc., 401 F.2d 1, 69 L.R.R.M. (BNA) 2129, 1968 U.S. App. LEXIS 5675 (7th Cir. 1968).

Opinion

KILEY, Circuit Judge.

The Board seeks enforcement of its order, based on findings that respondent Newman-Green, Inc., violated Sec. 8(a) (1) of the National Labor Relations Act by coercively interrogating an employee and by granting employees a benefit on the eve of a representation election; violated 8(a) (2) (1) by assisting and supporting employee committees; and violated 8(a) (3) by discharging an employee for union activity. Respondent was ordered, so far as pertinent here, to cease and desist from the unlawful practices; to withhold recognition of the employee committees as bargaining agents unless and until certified by the Board; and to offer immediate and full reinstatement and back pay to the discharged employee. We deny enforcement of the order, except as to the 8(a) (1) violation with respect to the insurance benefit.

In 1962 Newman-Green was in the business of manufacturing and assembling aerosol valves, and employed a total of 180 people in three shifts, about 60 to 75 in each of the first and second shifts and 45 or 50 in the third. The Union 1 had been attempting to organize the plant for several years, but had lost elections at the plant in 1959, 1962, 1963 and 1964. In 1965 it lost another election by a vote of 148 to 38. Thereafter it filed unfair labor practice charges, the complaint issued, a hearing was had, and the Trial Examiner found the Sec. 8(a) (1), (2) and (3) violations. The Board adopted the findings and entered the order before us.

During the 1965 election campaign Newman-Green agreed to assume the full cost of a hospital insurance program which previously had been paid for by the employees. It posted a notice of this benefit on April 29, 1965. The election was on June 25.

The Board found that Newman-Green violated Sec. 8(a) (1) of the Act by announcing and granting the insurance benefit to its employees in order to discourage union activities of employees, °r’ “ any, e7ent’ be^use Newmanfreen s conduct reasonably tended to mterfere with employees’ freedom ra the exefclsf °¿their rlghts' Newman-Green ?on*ends the5® 18 a° “^tantial support m the record for thls inclusion,

Newman-Green’s employees had paid the entire cost of Blue Cross-Blue Shield hospitalization insurance since about 1962. In November, 1964, the insurer notified Newman-Green that the cost of the insurance would be increased 25%, and Walter O’Neill, Newman-Green’s financial officer, was assigned to investi *3 gate terms of other insurers, with a view to Newman-Green’s assuming the cost. 2 In February, 1965, O’Neill met with Lincoln National Life Insurance Company and later with Prudential and Metropolitan. All three insurers submitted proposals and in mid-April Newman-Green accepted a Lincoln Life proposal and informed Lincoln Life to take immediate action so that the insurance could be “put * * * into effect immediately.” On April 29, 1965, Newman-Green posted a notice informing the employees that the new plan would be at no cost to them. The plan went into effect May 1, 1965, and early that month Lincoln Life representatives explained the plan to the employees.

Newman-Green argues that the decision to assume the cost of the insurance was made in late 1964, before the 1965 union activity; that it informed the employees of the decision in early February, 1965; and that the April notice was merely that the insurance plan, decided upon in November, 1964, was to be put into effect as of May 1.

It is uncontroverted that the employee committees had for several years requested Newman-Green to assume the cost of hospital insurance. The Board found that the 1964 decision was indefinite as to time; that no final decision was made until late April when Newman-Green knew the Union had resumed its organizational activity; and that the employer’s June 18 campaign letter in which the employer discussed the benefits it gave its employees, including “a paid Health Insurance Policy,” was anti-union and “very” significant.

It is our view that the record gives substantial support to the Board’s conclusion. It could well have considered that the “decision” in November, 1964, was merely to investigate the cost to Newman-Green of a hospitalization insurance program and that the final decision was not made until late April, after the employer discovered that the Union had begun passing out organizational literature at the plant. The discussion concerning insurance which Mrs. Green had with employees in February could with reason have been considered by the Board as no more definite than the 1964 “decision.” Finally, the Board was not required to accept Newman-Green’s argument that the testimony that the delay in promulgating the insurance plan was due to unavoidable circumstances obviates the possibility that the April announcement was made for the purpose of discouraging employees’ union activity or interfering with their organizational rights in violation of Sec. 7.

Newman-Green is charged with knowledge of the Act’s concern about employee freedom in the exercise of organizational rights, and has offered no explanation of the timing of its announcement which would compel a Board finding that Newman-Green’s action was not designed to effect the election. When the employer chose to announce the insurance program at the time and under the circumstances here, it took the risk that its conduct could justify the inference the Board drew, that the preparation of the insurance plan and its promulgation was timed to induce, or did induce, votes against the Union. Indiana Metal Products Corp. v. NLRB, 7 Cir., 202 F.2d 613, 620; NLRB v. Exchange Parts Co., 375 U.S. 405, 84 S.Ct. 457, 11 L.Ed.2d 435.

We set aside the conclusion that the employer violated 8(a) (3) by discharging employee Fortune for reporting for work under the influence of alcohol. The record establishes that Fortune had been previously warned about drinking while at work and for making obscene telephone calls, and that he was again intoxicated on the job on the day he was fired. We think the Board had no substantial basis in the record for deciding that the reason given by Newman-Green for Fortune’s discharge was a pre *4 text which hid the real motive — his union activity. The clear evidence that Newman-Green had good reason for discharging him, along with the fact that the discharge came after the election at a time when another election could not be held for a year, weakens the basis for the Board’s attributing an anti-union motive to the discharge. The General Counsel had the burden of proving, by substantial evidence, that Fortune’s discharge was due to union activity, Indiana Metal Products Corp. v. NLRB, 202 F.2d 613, 616, and we think he did not meet that burden.

The Examiner considered together the charges that employee Fortune was unlawfully discharged and unlawfully interrogated, in violation of 8(a) (3) and 8(a) (1) respectively. It is obvious from the Examiner’s “Analysis and Conclusions” in this part of his decision that the alleged unlawful interrogation was de minimus

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401 F.2d 1, 69 L.R.R.M. (BNA) 2129, 1968 U.S. App. LEXIS 5675, Counsel Stack Legal Research, https://law.counselstack.com/opinion/national-labor-relations-board-v-newman-green-inc-ca7-1968.