National Labor Relations Board v. Sac Construction Company, Inc.

603 F.2d 1155, 102 L.R.R.M. (BNA) 2513, 1979 U.S. App. LEXIS 11402
CourtCourt of Appeals for the Fifth Circuit
DecidedOctober 4, 1979
Docket78-2458
StatusPublished
Cited by14 cases

This text of 603 F.2d 1155 (National Labor Relations Board v. Sac Construction Company, Inc.) is published on Counsel Stack Legal Research, covering Court of Appeals for the Fifth 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. Sac Construction Company, Inc., 603 F.2d 1155, 102 L.R.R.M. (BNA) 2513, 1979 U.S. App. LEXIS 11402 (5th Cir. 1979).

Opinion

VANCE, Circuit Judge:

SAC Construction Company was a party to a labor contract executed between a multi-employer association and the union representing SAC’s carpentry unit. 1 It was unable to operate profitably under the contract and timely withdrew from the multiemployer unit in December 1975 before the contract expired on March 31, 1976. 2 At the same time, SAC notified the union of its intention to negotiate a separate contract. The company did not hear anything from the union until March 29, 1976, when SAC President Stanley Cohen was apprised of a negotiation session on March 3Í. Although Cohen had a prior engagement on that date, he responded that he would be happy to meet with the union representative at the representative’s convenience, and he actually held two such meetings during the month of April. On September 9, 1976, 3 Cohen was informed of a master agreement negotiated with the multi-employer unit and was sent a copy for approval. 4 On September 21, Cohen replied that the master agreement was unacceptable, adding that “[i]f you wish to negotiate with me I am available to meet with you at your convenience.”

On or about April 1,1976, SAC unilaterally reduced wage rates 5 and ceased fringe benefit plan contributions, both of which were mandatory bargaining subjects. These unilateral changes precipitated unfair labor practice charges against SAC, and the Board found the Company guilty of refusing to bargain. It ordered SAC to begin collective bargaining negotiations, to resume paying the wage rates and fringe benefit contributions in effect under the expired contract, and to make whole any employee loss suffered because of the unilateral changes. The Board now petitions this court to enforce its order, pursuant to 29 U.S.C, § 160(e). We deny enforcement.

An employer’s duty to bargain with a union, whether it be a Board-certified union or simply an incumbent union, ceases when the employer can demonstrate a good faith belief that the union lacks majority status. See NLRB v. Newspapers, Inc., 515 F.2d 334, 340-41 (5th Cir. 1975); NLRB v. A. W. Thompson, Inc., 449 F.2d 1333, 1336 (5th Cir. 1971), cert. denied, 405 U.S. 1065, 92 S.Ct. 1497, 31 L.Ed.2d 795 (1972). The duty to refrain from making unilateral changes in those employment conditions subject to mandatory bargaining *1157 after termination of an existing contract derives from the employer’s statutory duty to bargain collectively, because such changes are tantamount to a refusal to negotiate. Hinson v. NLRB, 428 F.2d 133, 137 (8th Cir. 1970); see NLRB v. Katz, 369 U.S. 736, 82 S.Ct. 1107, 8 L.Ed.2d 230 (1962). Under the same logic, the obligation to maintain existing conditions after contract expiration also ceases whenever the union has lost majority status.

The Board found that as of March 31, 1976, 6 the expiration date of the contract, a majority of unit employees voluntarily supported the union. It based its finding solely on the ground that on that date all employees in the recognized unit were paying union dues. Because there was no applicable union-security provision, such payment of union dues shows that a majority of the unit employees voluntarily supported the union at that time. See NLRB v. Auto Ventshade, Inc., 276 F.2d 303, 307 (5th Cir. 1960).

Identification of the appropriate bargaining unit is necessary for determining majority status. The Board construed the appropriate unit as including not just employees formally classified as journeymen and apprentice carpenters, who were included in the unit before April 1, 1976, but also employees performing work within the union’s trade jurisdiction. 7 We agree and accept the Board’s construction. This finding is critical to the ultimate determination of majority status because, as of April 1, SAC has not utilized any job classifications. 8 Instead, its employees now perform all phases of the construction work, and consequently must be included in the appropriate unit for determining majority status.

While it is true that all six of SAC’s carpenters were union members on March 31, only three of those employees continued to work for SAC after expiration of the contract on that date. The declassification of employees and the unilateral changes were not made until April 1, 1976. The Board erred in failing to determine majority status as of that date. Majority support is not a constant factor, and with it changes the duty to bargain. Cf. Brooks v. NLRB, 348 U.S. 96, 75 S.Ct. 176, 99 L.Ed. 125 (1954) (duty to bargain after loss of majority during one year period of Board certification).

In certain instances, a presumption of majority support can compel an employer to bargain collectively. See NLRB v. Newspapers, Inc., 515 F.2d at 340. Whatever presumption 9 of continued majority support that existed in the instant case, however, was destroyed by the events occurring on April 1, 1976. On that date SAC abolished job classifications for its employees, who began performing all phases of construction work, including those duties previously performed by carpenters. Because of this abolition and the Board’s correct determination of the appropriate unit, no majority status existed on April 1, 1976.

Mr. Cohen testified unequivocally and without contradiction concerning the makeup of SAC’s employee complement as of April 1, 1976:

*1158 Q. Okay.
Prior to the expiration of the latest agreement that you had with the tricouncil, did any of these 20 that are now employed perform the same work for you at that time?
A. Yes, Ma’am.
Q. Okay.
Were they employed since you had previous agreements with laborers, carpenters, operating engineers and iron workers, of these 20 individuals that you now employ, did any of them fall within the trade jurisdiction of the Carpenters?
A. Yes, Ma’am.
Q. Okay.

Free access — add to your briefcase to read the full text and ask questions with AI

Related

Louisiana Dock Co. v. National Labor Relations Board
909 F.2d 281 (Seventh Circuit, 1990)
Maule v. Independent School District No. 9
1985 OK 110 (Supreme Court of Oklahoma, 1985)

Cite This Page — Counsel Stack

Bluebook (online)
603 F.2d 1155, 102 L.R.R.M. (BNA) 2513, 1979 U.S. App. LEXIS 11402, Counsel Stack Legal Research, https://law.counselstack.com/opinion/national-labor-relations-board-v-sac-construction-company-inc-ca5-1979.