National Labor Relations Board v. PIE Nationwide, Inc.

923 F.2d 506, 136 L.R.R.M. (BNA) 2278, 1991 U.S. App. LEXIS 652
CourtCourt of Appeals for the Seventh Circuit
DecidedJanuary 17, 1991
DocketNos. 89-2585, 90-1265 and 90-1579
StatusPublished
Cited by67 cases

This text of 923 F.2d 506 (National Labor Relations Board v. PIE Nationwide, 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. PIE Nationwide, Inc., 923 F.2d 506, 136 L.R.R.M. (BNA) 2278, 1991 U.S. App. LEXIS 652 (7th Cir. 1991).

Opinion

HARLINGTON WOOD, Jr., Circuit Judge.

This application, petition, and cross-application represent the latest chapter in the [509]*509relationship between Patrick Clement and PTE Nationwide (“PTE”). It is an association that has given rise, over a seven-year period, to two discharges, no less than three administrative hearings before the National Labor Relations Board (“Board”), and a similar number of enforcement proceedings before this court. It has also produced a series of legal skirmishes in which PTE has rarely prevailed, and the present actions are no exception.

I.

PTE first hired Clement in September 1983 to work as an extra board driver1 at its Franklin, Wisconsin, terminal. His first discharge from PTE occurred on October 19, 1983 — only one day after Clement had completed his one-month probationary period. It was motivated, in large part, by PTE’s knowledge of and animus toward the fact that the Board had filed prior unfair labor practice proceedings on Clement's behalf, a motivation that was later found by the Board to constitute a violation of section 8(a)(4) of the National Labor Relations Act (“Act”), 29 U.S.C. § 158(a)(4). P*I*E Nationwide, Inc., 282 N.L.R.B. 1060 (1987), enf'd, NLRB v. P*I*E Nationwide, Inc., 894 F.2d 887, 890-91 (7th Cir.1990).

Clement spent most of the next four years searching for a job. He did manage to find some interim employment, but he was unable to hold a position for more than a few months. In particular, he was discharged by Aurora Fast Freight (“Aurora”) after only three and one-half months. Subsequent to that termination he received a letter, signed by Aurora’s president, which provided in relevant part:

On July 10, 1985, you were instructed to return to Milwaukee with tractor Number 3. You refused to take that tractor and proceeded to take a tractor that you knew had mechanical problems. On the trip back to Milwaukee you broke down for five hours. If you had returned with the tractor you were instructed to take we would not have had the cost of the breakdown as well as the delay of the freight.
We cannot afford to have people not doing what they are instructed to do. You are hereby discharged effective July 11, 1985.

In the meantime, PTE negotiated a settlement with the Board. In exchange for the Board withdrawing its application for enforcement, PTE agreed to post the Board’s notice and, on July 8, 1987, reinstated Clement to his former position. The Board and PTE also entered into a stipulation whereby PTE reserved its right to a hearing to determine the amount of Clement’s back pay.

Clement returned to PTE’s employ only a few months before the company transferred its break bulk facility2 from Danville, Illinois, to Chicago, Illinois. This change of operations heralded a substantial increase in the number of trips between the Franklin terminal and the Chicago break bulk facility. Moreover, the change of operations allowed the Franklin terminal to send its drivers on up to three trips per shift without violating Department of Transportation (“DOT”) safety regulations.3

The distance between Franklin and Chicago was short (sixty-nine miles) and the drive was often arduous (traffic jams were quite common, and the trip normally took at least one hour and forty-five minutes). Extra board drivers, on the other hand, were paid by the mile, not the hour; they preferred longer trips with minimal traffic. Thus, it is not surprising that even a single Franklin-Chicago assignment was viewed [510]*510with a lack of enthusiasm, and the possibility of three trips per shift was viewed with outright disdain.

As complaints increased and tempers flared, union representative Frank Busalac-chi had a telephone conversation with Michael Crowley, PTE’s labor relations representative. Busalacchi confronted Crowley with the complaints concerning third trips to Chicago. In response to Crowley’s adamant insistence that extra board drivers had to make the trips because PTE had to move the freight, Busalacchi argued, “[I]f the guys are fatigued, they just ain’t going to go.” Crowley answered, “I don’t have a problem with that,”4 and also stated that the dispatcher, in his discretion, could assign the run to another available driver rather than saddle an employee with a third trip to Chicago.

The Busalacchi-Crowley conversation underwent a transformation as its content was relayed; the drivers came to understand the oral agreement in a manner quite different than Busalacchi. They interpreted the agreement to mean that third trips to Chicago were in the driver’s discretion, and that they could reject such dispatches with impunity. Indeed, some of the drivers, including Clement, rejected third trips in the upcoming months and did not always give a reason for the decision. PTE, however, took no action against these drivers.

PTE did pursue its right to dispute the Board’s calculation of Clement’s back pay. At a hearing on April 21, 1988, PTE argued that Clement’s discharge from Aurora constituted a “willful loss of earnings” that would reduce the total amount of back pay sought by the Board. See Mastro Plastics Corp., 136 N.L.R.B. 1342, 1346 (1962), enf'd, 354 F.2d 170 (2d Cir.1965), cert. denied, 384 U.S. 972, 86 S.Ct. 1862, 16 L.Ed.2d 682 (1966). The administrative law judge (“AU”), relying in large part on the discharge letter from Aurora, later agreed with PTE and reduced Clement’s back pay award from $102,117.46 to $77,959.72 in a decision announced on September 30, 1988.

The other drivers at the Franklin terminal were well aware of Clement’s back pay hearing, and a significant number discussed the proceeding with him. In particular, they discussed the testimony of Larry Scarbrough, PTE’s line transportation manager. Clement told his coworkers that Scarbrough had failed to produce subpoenaed documents and had answered questions about that failure by stating “I don’t know.” For whatever reason, Scarb-rough’s performance at the hearing became the subject of widespread derision among the drivers, who began to answer his questions by stating “I don’t know” in a manner that mocked Scarbrough’s slight southern accent.

The underlying tensions created by the taunting and the drivers’ interpretation of the Busalacchi-Crowley oral agreement came to a head on July 18, 1988. As Clement was completing his paperwork for a shift in which he had already completed two Franklin-Chicago runs, Scarbrough assigned him a third trip to Chicago. Clement, in rejecting the assignment, exhorted: “Larry, you know that we are only required to do two trips. A third trip is up to the driver if he wants to do it or not. I have done my two for the day and I am going home.” After Clement continued to refuse the assignment, Scarbrough issued two warnings in rapid succession and fired him.

After a hearing on September 1 and 2, 1988, the AU essentially found that the testimony of Clement and his coworkers was credible whereas the testimony of PTE’s witnesses was incredible. She concluded that Clement’s discharge violated sections 8(a)(1) and 8(a)(3) of the Act, 29 U.S.C. §§ 158

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Bluebook (online)
923 F.2d 506, 136 L.R.R.M. (BNA) 2278, 1991 U.S. App. LEXIS 652, Counsel Stack Legal Research, https://law.counselstack.com/opinion/national-labor-relations-board-v-pie-nationwide-inc-ca7-1991.