National Labor Relations Board v. Western Temporary Services, Inc. And the Classic Company, Inc.

821 F.2d 1258, 125 L.R.R.M. (BNA) 2787, 1987 U.S. App. LEXIS 7444
CourtCourt of Appeals for the Seventh Circuit
DecidedMay 20, 1987
Docket86-1624
StatusPublished
Cited by43 cases

This text of 821 F.2d 1258 (National Labor Relations Board v. Western Temporary Services, Inc. And the Classic Company, 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. Western Temporary Services, Inc. And the Classic Company, Inc., 821 F.2d 1258, 125 L.R.R.M. (BNA) 2787, 1987 U.S. App. LEXIS 7444 (7th Cir. 1987).

Opinion

*1260 CUDAHY, Circuit Judge.

This case comes before us on the application of the National Labor Relations Board (the “NLRB” or the “Board”) for enforcement of its unfair labor practice order issued against Western Temporary Services, Inc. (“Western”) and The Classic Company, Inc. (“Classic”) as joint employers. Classic and Western oppose the application on a number of grounds. They claim that they were denied due process in the representation proceeding, and they also challenge the NLRB’s finding of joint employer status as well as the Board’s inclusion of part-time employees in the bargaining unit. For the reasons discussed below, we order enforcement of the NLRB’s order.

I.

Classic operates a production facility in Fort Wayne, Indiana and is engaged in the wholesale sale and distribution of bowling supplies, including embroidered team shirts, engraved trophies and screen-printed T-shirts. Classic also operates a small retail outlet for its products in Fort Wayne. Each product assembled and distributed by Classic has a different period of peak production. Prior to October 1982, Classic used temporary or part-time employees during periods of peak production to supplement its permanent full-time production work force of 50 to 60 employees. Classic directly hired some of these part-time employees and hired others through temporary employment services such as Western. Western is a local supplier of employees on a temporary basis in the secretarial and light industrial fields. In October 1982, Classic had 32 part-time employees on its own payroll.

On October 13, 1982, officials of Classic met with all of its employees; full-time and part-time, to explain why it would not be granting a wage increase that year. During this meeting, the part-time employees brought their grievances to the attention of Classic officials; these employees wanted the same fringe benefits accorded the full-time staff as well as more hours of work. Transcript of Nov. 30, 1982 Proceeding at 75 (“Tr. of Nov. 30 Proc.”). On October 15, Classic entered into an agreement with Western under which Western would supply all Classic’s temporary help needs. The agreement, which took effect on October 18, also provided that “existing temporary personnel now used by Classic Company shall be transferred to the payroll of Western Temporary Services, Inc.” On October 19, Marlys Schommer, the manager of Western, interviewed Classic’s 32 part-time employees for employment with Western. All but five accepted employment with Western at $3.35 per hour, the same rate they had been paid by Classic. Id. at 49. This is also the rate paid the full-time employees at Classic, except for those occupying full-time positions requiring special skills.

Classic and Western agreed that Western would accord former Classic employees preference for work at Classic. When Western receives a request for workers from Classic, former Classic employees are contacted first. Other Western employees are contacted only if there are insufficient numbers of former Classic employees available. Id. at 21. Not only does Western give preference to former Classic employees in general, but if Classic requests particular employees by name, which it frequently does, Western attempts to honor these requests. Id. at 50. Classic also has the right to ask that a particular employee not be referred to it, and in that event, Western will comply with such a request. Western charges Classic a flat fee of $4.60 per employee per hour from which Western pays the employee and covers the costs of social security, unemployment and other insurance, fringe benefits and overhead. Id. at 37. The part-time employees’ benefits, including vacation, are determined by Western. Classic determines their conditions of work and work assignments. Part-time employees use the same facilities, work in the same areas, perform many of the same tasks (most of which are unskilled) and are subject to the same supervision as Classic’s full-time employees. Id. at 103-05, 110, 155-56. Their hours are verified on Western time slips by Classic supervisors before they receive their paychecks from Western. Id. at 51-52. At *1261 the time the Classic employees were transferred to Western’s payroll, Classic announced that it would maintain its policy of considering part-time employees for full-time positions. Id. at 110. This reshuffling of employees triggered a number of proceedings before the NLRB.

The Indiana Joint Board of the Retail, Wholesale and Department Store Union, AFL-CIO (the “Union”) filed a charge against Classic on October 25, 1982, alleging that Classic’s transfer of employees and other tactics were an attempt to discourage membership in the Union and destroy its majority status. Western was not named in the charge. On November 12, 1982, the NLRB issued a complaint against Classic as respondent and Western as a party-in-interest, alleging them to be joint employers. The complaint also claimed that Classic had violated sections 8(a)(1) and (3) of the NLRA, 29 U.S.C. §§ 158(a)(1), 158(a)(3), by interrogating its employees regarding their union activities, soliciting grievances and promising improved benefits during the October 13 meeting with its employees, granting increased benefits and discharging its part-time employees on October 15; in addition, Classic and Western were alleged to have committed the same violation by jointly rehiring these employees on October 19 without fully reinstating them to their former positions. The NLRB issued an order dated November 18, 1982, scheduling a January 1983 hearing on the complaint. The Board issued an amended complaint on December 18, 1982 naming Western as a respondent. 1

On October 18, 1982, the Union filed a petition with the Board for a representation election in a unit of all regular full-time and part-time employees of Classic, excluding office clerical and technical employees and guards and supervisors. Classic received notice on November 17 that a hearing on this petition would be held on November 30. The Union amended its petition on November 29 to name Western and Classic as joint employers. On November 30, a hearing was held on the representation petition. Neither Classic nor Western was notified prior to the representation hearing that their status as joint employers would be an issue at the hearing. Classic first learned that the petition had been amended to include this issue at the November 30 hearing. Western also first received notice on November 30 of its joinder as a respondent in the representation hearing. Although one of Western’s managers was present as a prospective witness for Classic, Western was not represented by counsel. At the hearing, Classic opposed both the inclusion of the part-time employees in the bargaining unit and the characterization of it and Western as joint employers. Classic moved for a continuance, claiming that the amended petition did not afford it and Western timely notice of the joint employer allegation. Tr. of Nov. 30 Proc. at 7. Classic’s motion was denied. Classic renewed in its post-hearing brief its objection to the denial of its continuance.

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Bluebook (online)
821 F.2d 1258, 125 L.R.R.M. (BNA) 2787, 1987 U.S. App. LEXIS 7444, Counsel Stack Legal Research, https://law.counselstack.com/opinion/national-labor-relations-board-v-western-temporary-services-inc-and-the-ca7-1987.