National Labor Relations Board v. Southwire Company, and Roy Richards

429 F.2d 1050
CourtCourt of Appeals for the Fifth Circuit
DecidedOctober 28, 1970
Docket21784_1
StatusPublished
Cited by16 cases

This text of 429 F.2d 1050 (National Labor Relations Board v. Southwire Company, and Roy Richards) 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. Southwire Company, and Roy Richards, 429 F.2d 1050 (5th Cir. 1970).

Opinions

SIMPSON, Circuit Judge:

Old labor cases never die nor unfortunately do they fade away. This case is no exception.1

On May 8, 1968, a Special Master was appointed by this Court to take testimony and receive evidence with respect to the issues raised by the Board’s petition which prayed that Southwire Company and Roy Richards, its president, be adjudged in civil contempt for failing to comply with two decrees of this Court, NLRB v. Southwire Company, 5 Cir. 1963, 313 F.2d 638, and NLRB v. Southwire Company, 5 Cir. 1965, 352 F.2d 346. The Master has made such findings and recommends that Southwire and Richards be adjudged in civil contempt. The Board, in the main, urges that the Mas[1053]*1053ter’s findings be adopted. We adopt the Master’s findings.

The operative portions of this Court’s decrees, upon which the present civil contempt proceeding is based, forbid the Company from discouraging membership by unlawfully discharging or discriminating against its employees; unlawfully interrogating its employees; and promising benefits to discourage union support. Succinctly the decrees prohibit the Company from further violation of 8(a) (1) and (3) of the Act.

In the spring of 1967, an organization drive was undertaken by two unions.2 An election was held which the Unions lost. Alleged unfair labor practices occurred and this contempt proceeding followed.3 The Master’s findings of labor violations by the Company contrary to this Court’s prior judgments are at issue.

I.

Judicial Notice

Southwire, an embattled and apparently embittered veteran of the union wars, vigorously complains that it was prejudiced by the Master’s taking notice of prior proceedings involving Southwire. The Company contends that by taking judicial notice of its deepseated anti-union animus, the Master effectively altered the degree of proof required in a contempt proceeding; i. e. the evidence must be clear and convincing. Southwire suggests that by taking such notice, the Master made all credibility choices against the Company. The Company thus concludes that the Board’s burden was reduced from producing clear and convincing evidence to merely that of substantial evidence.4

At a Pre-hearing Conference, attorneys for the Board requested the Special Master to take “official notice” of four cases in which this Court had affirmed Board findings of unfair labor practices by Southwire Company. The Company objected on the ground that such “Notice” would be a deprivation of their constitutional rights since there is a lesser degree of proof required in a Board hearing than in a contempt proceeding. The following colloquy occurred:

SPECIAL MASTER: * * your purpose in using respondents past actions as reflected in these cases is so that I can evaluate the character of the company * * * you want me to have that in the back of my mind as I listen to these witnesses and say, ‘Well now, these are the company’s witnesses and they are not reliable on particular evidence that is being given,’ and throw that in the hopper to bring that up or down, if that is your purpose, and I believe that is what it is. As I listen to the testimony I would say, ‘Well, don’t give that too much weight because you have these two cases that say they have been in trouble before’ * *

The Special Master denied petitioner’s request for official notice, stating:

“The doctrine of official notice should not be used to alter the degree of proof required in a contempt proceeding”.

Despite this ruling the Company claims that the Master did notice the prior cases and as a result the Company was denied due process of law through use of a lower standard of proof.

The Special Master stated in his recommended findings of fact:

“It should be noted here that the unsuccessful efforts of unions to organize Southwire’s employees in the past have resulted in prior proceed[1054]*1054ings in this Court. There can be no question that the Company possesses deepseated anti-union animus not only as recorded in prior proceedings of this Court, but as clearly demonstrated by its vigorous opposition to the 1967 Union organizing campaign as reflected in the printed matter distributed to its employees. The record of this proceeding as a whole leaves no doubt that the Company, its officers and its supervisory personnel are unalterably opposed to any unionization of South-wire.” (Footnote and citations omitted)

The parties on brief vigorously argue the pros and cons of this issue as to whether judicial notice of prior proceedings is proper in a labor contempt case. Resolution of this question is not necessary in these proceedings and we pretermit discussion of the issue. Assuming that it is impermissible to take such notice we find that the Company has not suffered from application of a lower standard of proof. We find no indication that the Special Master relied on the prior proceedings in any substantial manner to find anti-union animus. Indeed the record read as a whole offers very nearly a text book model of union harassment techniques. We view the Master’s language quoted above as a gratuitous observation. There was abundant proof of anti-union animus independent of the prior labor history and the prior decisions. We do not perceive that error was committed in this regard.

II.

Surveillance

In 1964, Southwire hired the Roman Security Agency Inc. to provide security services. Roman placed undercover agents in the plant who masqueraded as ordinary employees. The procedures employed by the agency displayed cloak and dagger techniques worthy of the C.I.A.

The agents recorded all normal company problems, such as timewaste and thefts in a regular report. Labor activities on the other hand were reported in two ways. One method was to submit written reports to the head agent who would transcribe such notes to a special report. The original notes were always destroyed. The special report was submitted to high company officials. The second method was to record in the regular report the code words “Nothing Special to Report Today”. This language signified that a report on labor activities would be submitted orally and no record of the details would be made.

The Company correctly states that not all surveillance is prohibited by the Act; that the only surveillance prohibited is that which interferes with, restrains or coerces union activities. The Company submits that the Master did not make a finding of interference, coercion, or restraint and the surveillance here was not violative of the Act. The Company also argues rather futilely that the purpose of the security program was not to spot theft, safety violations and inefficiency and hence that any ancillary or byproduct spying on union activities was de minimus. But the record convincingly shows that while union surveillance was not the sole or perhaps even the chief function of Roman, it was by no means de minimus.

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429 F.2d 1050, Counsel Stack Legal Research, https://law.counselstack.com/opinion/national-labor-relations-board-v-southwire-company-and-roy-richards-ca5-1970.