National Labor Relations Board v. Tulsa Sheet Metal Works, Inc.

367 F.2d 55, 63 L.R.R.M. (BNA) 2217, 1966 U.S. App. LEXIS 4820
CourtCourt of Appeals for the Tenth Circuit
DecidedOctober 5, 1966
Docket8244
StatusPublished
Cited by34 cases

This text of 367 F.2d 55 (National Labor Relations Board v. Tulsa Sheet Metal Works, Inc.) is published on Counsel Stack Legal Research, covering Court of Appeals for the Tenth 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. Tulsa Sheet Metal Works, Inc., 367 F.2d 55, 63 L.R.R.M. (BNA) 2217, 1966 U.S. App. LEXIS 4820 (10th Cir. 1966).

Opinion

PICKETT, Circuit Judge.

This case is before the court upon petition of the NLRB for enforcement of its order requiring Respondent, Tulsa Sheet Metal Works, Inc. to discontinue certain unfair labor practices found to violate Section 8(a) (5) and (1) of the National Labor Relations Act.

In 1951 Respondent, a manufacturer of sheet metal products, joined Tulsa Sheet Metal Contractors Association, which represented its members in negotiating collective bargaining agreements with the Sheet Metal Workers International Association, Local Union No. 270. The most recent collective bargaining agreement, executed in 1961, was to expire on May 31, 1963. When the Union and the Association indicated their respective desire to enter into negotiations for a new agreement, Respondent, along with several other firms, executed a composite “Letter of Assent”, designating the Association as its representative for the purpose of negotiating a collective bargaining agreement. Thereafter, by letter to the Union, the Association *57 listed 27 firms, including Respondent, which had executed letters of assent. Negotiations failed to achieve a new agreement by May 31, 1963, and on June 1, the existing contract having expired, the Union called a strike against all members of the Association. Nevertheless, ' negotiations continued — meetings were held on June 4, 5, 6 and 12 — and finally, on June 21, 1963, a new collective bargaining agreement, retroactive to June 1, was executed by the Association and the Union.

In the meantime, while the strike was in progress, Respondent, on June 3, submitted its resignation from the Association. On the following day the Association accepted the resignation and informed the Union that it no longer was bargaining on Respondent’s behalf. Respondent did not notify the Union directly of its withdrawal, but it did not thereafter participate in the negotiations between the Union and the Association. On June 11 the Union advised Respondent by letter that it could not accept its “withdrawal at this late date * * *” Thereafter, on July 9, a meeting was held between the Union and Respondent, at which time Respondent attempted to negotiate a wage scale lower than that provided for in the June 21 agreement. The Union took the position that the withdrawal from the Association was untimely and ineffective, that Respondent was bound by the contract of June 21, and that further negotations would be improper.

When Respondent refused to execute or be bound by the agreement of June 21, 1963, the Union filed with the NLRB an unfair labor practice charge. A complaint issued, and a hearing was held. The Board adopted the trial examiner’s decision in full and concluded that Respondent’s withdrawal was untimely and that it was guilty of violations of Section 8(a) (5) and (1) of the National Labor Relations Act by refusing to bargain collectively with the Union through the Association, by refusing to execute the collective bargaining agreement negotiated by the Association and the Union on June 21, 1963, and by engaging in individual bargaining with one of its employees. The Board's order required Respondent to cease and desist from the unfair labor practices, to execute and give retroactive effect to the collective bargaining agreement of June 21, 1963, (excepting certain provisions relating to subcontracting and union security), and to reinstate, without prejudice, all employees who were on strike.

The order of the Board is based essentially upon the untimeliness and consequent ineffectiveness of Respondent’s withdrawal from the Association. 1 In National Labor Relations Board v. Truck Drivers Local Union, No. 449 etc., 353 U.S. 87, 95-96, 77 S.Ct. 643, 647, 1 L.Ed.2d 676, the Supreme Court recognized multi-employer bargaining to be a “vital factor in the effectuation of the national policy of promoting labor peace through strengthened collective bargaining”, and observed that “Congress intended ‘ * * * to leave to the Board’s specialized judgment the inevitable questions concerning multi-employer bargaining bound to arise in the future.’ * * * ” Although participation in multi-employer bargaining is voluntary, the Board has repeatedly held that withdrawal therefrom can be accomplished only at an appropriate time and that in the absence of union consent or unusual circumstance, withdrawal is untimely if attempted after the commencement of negotiations. See, NLRB v. Sheridan Creations, Inc., 2 Cir., 357 F.2d 245, and NLRB v. Sklar, 6 Cir., 316 F.2d 145. *58 Here Respondent had not only participated in the Association’s collective bargaining agreements for several years, but also, when negotiations for a new contract became imminent, firmly designated the Association as its exclusive representative in contract negotiations with the Union. Furthermore, prior to withdrawal, Respondent’s president actively participated in a number of bargaining sessions with the Union. 2 In these circumstances, Respondent’s withdrawal on June 3, 1963, long after negotiations had commenced, can hardly be characterized as timely.

Respondent asserts that its withdrawal was rendered permissible due to existing special circumstances. It is contended that the withdrawal was justified by the existence of an impasse in bargaining. This contention, however, finds no support in the record, for while substantial disagreement existed on May 31, the parties nevertheless contemplated and arranged for additional bargaining sessions after the expiration of the existing contract, and these meetings ultimately produced an agreement. Furthermore, the Union, between May 31 and June 17, executed “interim agreements” with ten Association members, whereby these members agreed “to accept without exception or reservation, all terms and conditions of employment without limitations, as may be agreed upon in negotiations now being conducted by and between [the union] and [the association].” This indicates an expectation that negotiations would continue to a successful conclusion, and it is apparent that there was no impasse.

Respondent urges that the Board should have given effect to its withdrawal from the Association because the wage scale then being seriously considered was excessively high with respect to Respondent’s employees and would be financially ruinous. However, to allow withdrawal from the multi-employer bargaining unit because negotiations are apprehended by one of the group members to be progressing toward an agreement which would be economically burdensome insofar as it is concerned, would be disruptive to the stability of the group collective bargaining process. As the trial examiner observed, “ * * * some responsibility must rest upon the employer who invokes the advantages of group bargaining to assess and assume the responsibilities and limitations inherent therein.” Furthermore, the record indicates that while the Union offered to consider a lower wage scale if the Respondent could that it actually was engaged in “production” rather than “construction” operations, Respondent apparently elected to pursue the matter no further.

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367 F.2d 55, 63 L.R.R.M. (BNA) 2217, 1966 U.S. App. LEXIS 4820, Counsel Stack Legal Research, https://law.counselstack.com/opinion/national-labor-relations-board-v-tulsa-sheet-metal-works-inc-ca10-1966.