National Labor Relations Board v. Penokee Veneer Co.

168 F.2d 868, 4 A.L.R. 2d 1350, 22 L.R.R.M. (BNA) 2254, 1948 U.S. App. LEXIS 4013
CourtCourt of Appeals for the Seventh Circuit
DecidedJune 23, 1948
Docket9522
StatusPublished
Cited by9 cases

This text of 168 F.2d 868 (National Labor Relations Board v. Penokee Veneer Co.) 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. Penokee Veneer Co., 168 F.2d 868, 4 A.L.R. 2d 1350, 22 L.R.R.M. (BNA) 2254, 1948 U.S. App. LEXIS 4013 (7th Cir. 1948).

Opinions

BRIGGLE, District Judge.

Petitioner seeks enforcement of its order of August 21, 1947, requiring Penokee Veneer Company and Spliced-Wood Corporation to “cease and desist from interfering with the right of their employees to bargain collectively through Local No-. 12-381, International Woodworkers of America C..I. O. * * by attempting to bargain with their employees individually or by any like or related acts.”

The conduct complained of, and of which the defendants have been found guilty by the Board is said to violate Section 8(a) (1), of the National Labor Relations Act, 49 Stat. 452, 29 U.S.C.A. § 158.1

The narrow question for determination is whether a certain communication sent by respondent companies on April 15, 1946, to their employees can be construed to be an unfair labor practice, which communication is set out in full in Footnote 2.2

The respondents are two Wisconsin cor[869]*869porations, located at Mellen, Wisconsin, and engaged in the procurement and Processing of logs and the manufacture of various types of veneers. Penokee had about 140 employees, Spliced-Wood 65, and a third company, called the F. A. MacDonald Company (originally a party defendant, but not now involved) 25 employees. In the summer of 1943 the International Woodworkers of America, affiliated with the C.I. O. initiated an' organization program among the employees of the 3 companies which culminated in the certification on September 20, 1943, of such union, as the exclusive bargaining representative of the production, maintenance and service employees of the three companies. On April 2, 1945, following numerous meetings, a collective [870]*870bargaining agreement was entered into 'between the union and the companies, embracing the usual terms of a collective bargaining agreement and providing for its termination on October 30, 1945. By agreement between the company and the union, this termination date was, in September, 1945, extended for a period of 60 days to December 30, 1945. About a month prior to the expiration of the extension agreement, the union served notice on the company of its desire to negotiate a new agreement, and stated that a proposal would be submitted. The companies agreed to meet upon receipt of the union’s proposal and accordingly a meeting was held on December 12th. The company did not accept the proposal of the union, but agreed to submit a counter proposal on certain issues involved. After an exchange of letters a subsequent meeting was held on December 18th, but no agreement was reached. Further negotiations were had on January 3, 1946, between the union and respondents and on failure to reach an agreement, the union held a meeting on January 6th, at which a strike vote was conducted. It appears that less than a majority of the employees voted to strike. However, on or about January 8, the union notified the Secretary of Labor of its intention to strike. The United States Conciliation Service then intervened, and at the instance of thé conciliator further meetings were held from time to time between the union and the respondents all without result, and on March 2, 1946, the employees struck, and all production ceased. The conciliation service persisted in its endeavor to bring about an agreement between the parties and various other meetings were had after the strike began. The last meeting was held on April 9th, at which time respondent companies made an additional proposal which the bargaining agent rejected, and refused to submit the proposition to the employees for rejection or approval. The plant having remained closed from the beginning of the strike on March 2, the respondent companies apparently determined to make an effort to open the plant providing they could secure employees in sufficient numbers to operate their business. They did not fix a date for the opening of the plant, presumably because of the uncertainty of whether men could be procured in sufficient numbers to operate the plants.. Consequently, on April 15, 1946, they sent to their former employees the communication which is the subject matter of the finding of unfair labor practice by the Board.

There is no substantial disputed question of fact involved and the decision of whether the conduct of respondents in sending such communication of April 15th amounted to an unfair labor practice turns upon the construction to be placed upon it. The Board concedes that respondents were entirely within their legal rights in undertaking to reopen their plant and were at liberty to employ anybody who wished to work for them for the wages they were willing to pay, and upon the terms and conditions that they were willing to offer. These terms and conditions had been previously submitted to the bargaining agent on April 9th, 1946; and in addressing their inquiry to the former employees, asking them to indicate whether they desired to return to work under the wages, hours and working conditions as proposed by the company on April 9th, respondents were, of course, obliged to disclose to the employees what those terms and working conditions were. This they did in detail in their letter. The board concluded “that the respondents after having bargained to an impasse with the C.I.O. as to wages and other matters, violated Section 8, Paragraph 1 of the Act by attempting to poll each striker as to whether he individually would return to work under the wages, hours and working conditions proposed by respondents, and rejected by his exclusive bargaining representative.” They held that by such conduct “respondents sought to by-pass the C.I.O. as the exclusive bargaining representative of the strikers and to deal with each striker on an individual basis.”

No previous unfair conduct had ever been charged against respondents and the entire record discloses ready and persistent cooperation by the employers with the union in an earnest effort to bring about an agreement. We think the conduct of the employers in sending the letter of April 15th must be measured against this back[871]*871ground of complete recognition of the rights of their employees under the National Labor Relations Act. See N.L.R.B. v. Algoma Plywood & Veneer Co., 7 Cir., 121 F.2d 602. A fair interpretation of the letter, we think, discloses that the real object was to ascertain how many, if any, employees desired to return to work on the terms that had been offered. No other or different terms were mentioned to the employees and the letter discloses no effort whatsoever on the part of the companies to bargain with the employees individually. No compulsion was indicated in the letter and the employees were told that those who elected to remain on strike would be accorded their full rights under both the State and Federal Labor laws. The good intentions in this respect of the respondent companies is further disclosed by the following conduct: — On March 25, 1946, in a communication to the employees, respondent said, “In an election held in September, 1943, a majority of the employees of these companies voted for Local 381-IWA-CIO as their bargaining agent.

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168 F.2d 868, 4 A.L.R. 2d 1350, 22 L.R.R.M. (BNA) 2254, 1948 U.S. App. LEXIS 4013, Counsel Stack Legal Research, https://law.counselstack.com/opinion/national-labor-relations-board-v-penokee-veneer-co-ca7-1948.