National Labor Relations Board v. Village Ix, Incorporated, D/B/A Shenanigans

723 F.2d 1360, 115 L.R.R.M. (BNA) 2297, 1983 U.S. App. LEXIS 14083
CourtCourt of Appeals for the Seventh Circuit
DecidedDecember 29, 1983
Docket83-1432
StatusPublished
Cited by54 cases

This text of 723 F.2d 1360 (National Labor Relations Board v. Village Ix, Incorporated, D/B/A Shenanigans) 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. Village Ix, Incorporated, D/B/A Shenanigans, 723 F.2d 1360, 115 L.R.R.M. (BNA) 2297, 1983 U.S. App. LEXIS 14083 (7th Cir. 1983).

Opinion

POSNER, Circuit Judge.

The Labor Board found that a company that owns a restaurant called “Shenanigans” in Decatur, Illinois had engaged in eight unfair labor practices in the course of an organizing campaign, in violation of sections 8(a)(1) (interference with employees’ protected activities) and 8(a)(3) (discrimination in terms or conditions of employment to encourage or discourage union membership) of the National Labor Relations Act, 29 U.S.C. §§ 158(a)(1), (a)(3). The Board ordered the company to cease and desist from the violations and to post the usual notices assuring the employees that it would desist, and also ordered the company to bargain with the union as the exclusive representative of Shenanigans’ workers, even though the union had lost the representation election. The company in its opening brief in this court asked us to set aside only four of the Board’s unfair labor practice findings, plus the bargaining order. But the Board in its brief undertook at considerable length to defend even the uncontested findings, in order that, as the *1364 Board’s attorney explained at argument, we might get the full “odor” of the company’s conduct. Not surprisingly, this led the company in its reply brief to attack those findings, and we conclude that the correctness of all of the unfair labor practice findings is before us insofar as their correctness bears on whether the Board’s bargaining order should be enforced.

In March 1980, a few months after Shenanigans opened, a waitress named Dee Griffiths received union-authorization cards from the United Retail Workers Union to give to the other employees. Assisted by her husband Ralph (not an employee) she became the principal organizer of the employees and held frequent meetings with them in her home during March and April. On April 13 Mrs. Griffiths called in sick to Shenanigans, but she was not sick; she was conducting an organizational meeting. The company found out about this and fired her the next day. This is the first of the unfair labor practices found by the Board.

Also on April 13 one of the company’s co-owners, Block, made a speech (which was tape recorded) in which he told the employees that the restaurant business was highly competitive and that

Unions do not work in restaurants .... The balance is not here .... If the Union exists at Shenanigans, Shenanigans will fail. That is it in a nutshell .... I won’t be here if there is a Union within this particular restaurant. I am not making a threat. I am making a statement of fact.... I respect anyone who wants to join the Union if that in essence is a workable place and can afford to pay Union wages. We can’t in the restaurant business.

He said the only restaurant in Decatur that was unionized was struggling, and if Shenanigans raised its prices in order to pay union wages its customers would switch to the nonunion restaurants, whose prices would be lower. He added:

Shenanigans can possibly exist with labor problems for a period of time. But in the long run we won’t make it. The cancer will eat us up, and we will fall by the wayside. And if you walk into this place five years down the road, if there is a Union in here, then I guarantee you it won’t be a restaurant. I don’t know what it will be. But wherever you people will be working in this town, in Decatur, it will not be in a Union restaurant. It will be in a non-Union restaurant, because there is a Union in town, it’s at the Sheridan, and I think they only use one or two waitresses during the week and maybe three on the weekends. And you get Union wages, and I doubt if you get hardly any tips.
I am not making a threat. I am stating a fact. When you are dealing with the Union you had better consider the pros and cons. I am sure there is a lot of pros that are involved. I haven’t looked into them in that great of detail because this is my first experience with them. I only know from my mind, from my heart and from my pocketbook how I stand on this. And I don’t like the idea of looking at a Union as far as my employees are concerned.

The Board held that this speech was coercive.

Mrs. Griffiths complained to the Board about her discharge, and the Board and the company entered into a settlement agreement whereby the company agreed to reinstate her with back pay. She returned to work on November 20, 1980, and the same . day the company announced that distributing any campaign literature on company time was forbidden. The Board found that this “no-distribution rule” violated section 8(a)(3) because it had been adopted in order to impede the union’s organizing effort, and that it violated section 8(a)(1) because it extended to nonwork areas of the restaurant and nonworking time during the work day.

Ralph Griffiths had been accustomed to pick up his wife at the restaurant after work. Often he would arrive early — sometimes hours early — and pass the time in the restaurant, soliciting employees to join the union. The company forbade him to solicit and when he continued doing so banned him *1365 completely from the restaurant. This was held to be an unfair labor practice too.

The other four unfair labor practice findings grow out of a party that the company threw for Shenanigans’ employees in January 1981 (the anniversary of its opening), two days before the election, at a different restaurant but one owned by the company’s owners. Mrs. Griffiths and another known union adherent, Miss Tuttle, received invitations postmarked the day of the party and thus not delivered till it was too late; and when Miss Tuttle later complained to Block he said, “You didn’t deserve one, bitch.” The Board found that the company had deliberately delayed mailing invitations to the two employees and by doing so had discriminated against them because of their union activities, in violation of section 8(a)(3). At the party Block and his co-owner asked a retarded employee whether any union people had visited him in his home. He said they had. This was the end of the conversation, but the Board held that the questioning violated section 8(a)(1). Finally, in the parking lot outside the restaurant, Miss Tuttle along with two nonemployee union organizers put leaflets under the windshield wipers of the parked cars. Block ordered them removed and also knocked down one of the organizers, Ryan, who was putting a leaflet on Block’s car. (Ryan was not hurt, and Block was not arrested.) The removal of the leaflets and the assault on Ryan were held to be unfair labor practices.

By December 22, 1980, the union had received signed authorization cards from 28 of Shenanigans’ 47 employees. (Most of these cards had been secured back in March and April, when the organization campaign began.) The union petitioned for a representation election, and it was held on January 22. The union lost by a vote of 28 to 12.

With respect to the first and last (chronologically) of the alleged unfair labor practices — the discharge of Mrs. Griffiths and the assault on Ryan — the Board’s findings are amply supported. Although Mrs. Griffiths called in sick when she was not sick, she arranged for another waitress to take her place; and since this type of substitution (not dependent on illness) was common at Shenanigans, the Board was entitled to infer that Mrs.

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Bluebook (online)
723 F.2d 1360, 115 L.R.R.M. (BNA) 2297, 1983 U.S. App. LEXIS 14083, Counsel Stack Legal Research, https://law.counselstack.com/opinion/national-labor-relations-board-v-village-ix-incorporated-dba-ca7-1983.