National Labor Relations Board v. Stor-Rite Metal Products, Inc.

856 F.2d 957, 129 L.R.R.M. (BNA) 2392, 1988 U.S. App. LEXIS 12763
CourtCourt of Appeals for the Seventh Circuit
DecidedSeptember 12, 1988
Docket87-2161
StatusPublished
Cited by34 cases

This text of 856 F.2d 957 (National Labor Relations Board v. Stor-Rite Metal Products, 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. Stor-Rite Metal Products, Inc., 856 F.2d 957, 129 L.R.R.M. (BNA) 2392, 1988 U.S. App. LEXIS 12763 (7th Cir. 1988).

Opinion

COFFEY, Circuit Judge.

The National Labor Relations Board (the “NLRB” or “Board”) seeks enforcement of its order directing Stor-Rite Metal Products, Inc. (“Stor-Rite”) to cease and desist from an alleged unfair labor practice and to make its employees whole for resulting lost earnings. The NLRB found that Stor-Rite impermissibly reduced the hours of its part time painting department, or “powder line” employees in retaliation for the activities of one powder line employee, Paul Martin, when Martin attempted to convince Stor-Rite’s management that he either was or should have been covered by the collective bargaining agreement between Stor-Rite and its unionized, full time production workers. The NLRB ruled that Martin’s conduct constituted protected “concerted activity],” see 29 U.S.C. § 157 (1982), and that Stor-Rite reduced the hours worked by the powder line employees to retaliate against Martin. The Board concluded that Stor-Rite had committed an unfair labor practice by interfering with the rights of its workers to engage in concerted activities, id. at § 158(a)(1), and furthermore committed acts to discourage union membership through discrimination in the terms and conditions of employment. Id. at § 158(a)(3). 1 We review the Board’s deter *959 mination pursuant to section 160(e) of the National Labor Relations Act (“the Act”). Id. at § 160(e). Because we hold that Stor-Rite did not act with a retaliatory motive in response to Martin’s alleged concerted activity, we deny enforcement.

FACTS

Stor-Rite manufactures metal display shelving and related products. Prior to 1982, Stor-Rite had its painting, or “powder coating” done by other firms. In 1982, Stor-Rite moved to its current plant in Michigan City, Indiana and established its own painting facility or “powder line.” Since then, Stor-Rite has powder coated its own products and also has contracted to do powder coating for other companies’ products. However, Stor-Rite’s powder coating process is much faster than its manufacturing process and the capacity of Stor-Rite’s powder line is also greater than the combined total of Stor-Rite’s production and outside contract work. Thus, Store-Rite has never been required to run its powder line full time.

At all times relevant to the dispute at hand, Stor-Rite’s full time production and maintenance workers have been unionized and have been covered by a collective bargaining agreement (“the agreement”) as contrasted with the powder line employees who have always been considered part time workers and thus are not covered by the labor agreement. Consequently, these full time production (Stor-Rite) employees receive higher pay than do the powder line employees, including the receipt of holiday pay, insurance, pensions and other benefits not available to powder line employees. Powder line employees are allowed to “bid” on any available full time positions in Stor-Rite’s plant and frequently are given preference in hiring decisions.

On July 9, 1983, Stor-Rite entered into a collective bargaining agreement with the General Service Employees Union, Local No. 73 (“the union”). The agreement remained in effect through November 8, 1985, and applied to “all full time production and maintenance employees and plant clerical employees.” The agreement did not contain a definition of “full time,” but according to the record, the parties to the agreement, both Stor-Rite and the union, understood full time workers to be those who had completed a contractually-required probationary period. The agreement provided that, “The probationary period for a new employee ... shall be forty-five (45) calendar days from the date of hire.” The parties agree that an employee cannot fulfill this requirement until that employee has worked at least forty hours per week during the probationary period. According to the record, Stor-Rite and the union have always understood the agreement to exclude all part time employees.

Stor-Rite’s powder coating department work schedule depends on the volume of its own production and outside contract work, each of which is subject to change as demand changes. Therefore, the number of powder line employees and their hours also vary to accommodate the changing work load. In mid-1984, Dwayne Norman, chief steward for the union, learned that some powder line employees often worked forty or more hours per week during busy periods. Norman approached Stor-Rite’s management and asked whether those employees might be brought within the bargaining unit and included in the agreement. Stor-Rite replied that it could do all necessary powder coating in two or three days per week, and thus there was not enough powder coating work to justify running the powder line full time. Norman also discussed the matter with the union’s business manager, who told Norman that the union had proposed including powder line employees in the agreement during negotiations on the current contract, but that the union had dropped that proposal when Store-Rite’s management contended that full time operation of the powder line was not financially feasible. Thus, according to Norman, both the union and Stor-Rite understood the agreement to exclude powder line employees because they were part time only. The very terms of the labor agreement reinforce this point by omitting the *960 powder coating department in its listing of the departments included within the labor contract. As a result of this information, after Norman’s mid-1984 discovery that powder line workers sometimes worked forty-hour weeks, the union did not pursue the inclusion of the powder line workers in the agreement through the contractual grievance procedure.

Stor-Rite hired Paul Martin, the charging party in this case, on September 25, 1984. When Stor-Rite hired Martin, Stor-Rite’s powder coating department supervisor, Gregory Jaques, advised Martin that he was being hired as a part time worker. Jaques informed Martin he would not always work forty hours per week, nor would he receive those benefits available to those workers classified as full time employees. It is interesting to note that between September 1984 and February 1985, Jaques sometimes provided powder line employees with extra work (make-work projects), including maintenance tasks and production work in other departments. Moreover, although Stor-Rite’s management intended that the powder coating work should be shared by six to eight regular part time employees, Jaques limited his hiring selections to three or four. Jaques assigned the extra work and minimized hiring as a favor to the part time workers, to give them an opportunity to make more money than they would if the department were operated according to company policy. As a result, the three or four powder line employees often worked forty or more hours per week between September 1984 and February 1985.

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Bluebook (online)
856 F.2d 957, 129 L.R.R.M. (BNA) 2392, 1988 U.S. App. LEXIS 12763, Counsel Stack Legal Research, https://law.counselstack.com/opinion/national-labor-relations-board-v-stor-rite-metal-products-inc-ca7-1988.