National Labor Relations Board v. Williams Enterprises, Incorporated, a Division of Williams Industries, Incorporated

50 F.3d 1280, 148 L.R.R.M. (BNA) 2978, 1995 U.S. App. LEXIS 7645
CourtCourt of Appeals for the Fourth Circuit
DecidedApril 6, 1995
Docket19-4879
StatusPublished
Cited by45 cases

This text of 50 F.3d 1280 (National Labor Relations Board v. Williams Enterprises, Incorporated, a Division of Williams Industries, Incorporated) is published on Counsel Stack Legal Research, covering Court of Appeals for the Fourth 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. Williams Enterprises, Incorporated, a Division of Williams Industries, Incorporated, 50 F.3d 1280, 148 L.R.R.M. (BNA) 2978, 1995 U.S. App. LEXIS 7645 (4th Cir. 1995).

Opinion

OPINION

PHILLIPS, Senior Circuit Judge:

The National Labor Relations Board (“the Board”) petitions for enforcement of its affirmative order that Williams Enterprises, Inc. (“Williams”) recognize and bargain with Local Lodge 10 of the International Association of Machinists and Aerospace Workers, AFL-CIO (“the Union”). Williams challenges critical Board findings upon which liability was determined and also challenges the propriety of a bargaining order as remedy for the violations found. Finding no merit to these challenges, we enforce the Board’s order.

I

Williams owns and operates a steel fabricating business in Richmond, Virginia, that engages primarily in steel bridge construction. Earlier, Bristol Steel and Iron Works, Inc. (“Bristol”) had owned and operated the facility now owned by Williams, fabricating steel primarily for use in building construction. Pursuant to a buy-sell agreement, Williams purchased Bristol’s tangible assets in 1987. At the time of the agreement, Bristol employed 83 production employees who were represented by the Union.

*1284 Pursuant to the purchase agreement, all work at the Bristol plant was scheduled to shut down on September 30, 1987, and all Bristol employees were to be terminated at that time. On July 14, 1987, the plant manager for Bristol, John Barnes, and the plant superintendent, James Johnson, called a meeting of all Bristol employees to inform them of this plan. Barnes and Johnson told the employees that they were invited to fill out applications for jobs with Williams but that none of them would automatically be hired. All 83 Bristol employees applied.

Shortly after the July 14 meeting announcing the shut down, the Union’s business agent, Stephen Spain, called Barnes and said he “would like for Local 10 to represent the employees of the new company.” He also asked Barnes to tell a Williams official that he wanted “to have an opportunity to discuss, perhaps negotiate with” the official. Later in September, Barnes forwarded this message to Richard Geyer, the new Williams facility manager, but neither Barnes nor Geyer responded to Spain’s suggestion.

On August 21, 1987, Barnes and Johnson again met with Bristol employees but this time they held two separate meetings — one with 44 employees designated “favored for employment” and one with the remaining “unfavored” employees. At the meeting with the favored employees, an employee asked whether Williams’s new employees would be represented by a union. Johnson responded that Williams “did intend to operate the Richmond plant as a non-union plant.” This answer was not mere conjecture: Barnes later testified that he knew it to be true because Williams officials had instructed him to convey that message to the Bristol employees; Johnson actually carried out the instruction.

Spain continued to represent the Bristol employees’ interests. He negotiated a shutdown agreement with Bristol that secured severance pay, vacation pay, and temporary insurance coverage for the Bristol employees. He met with the employees in September to review the terms of that agreement. He also passed out union authorization cards to the employees; the record does not indicate how many employees signed the cards or to what use the Union put the signed cards.

On September 30, Bristol ceased operating as planned, and Williams began operations the next day. On that day, Williams hired 17 former Bristol employees to start up its operations, and it hired Barnes and Johnson to continue as plant manager and superintendent. Williams later hired more former Bristol employees, and by November 30, 1987, Williams had drawn 36 of its 40 new employees from the list of 44 favored Bristol employees.

By December 1987, Spain still had not received a response to his suggestion that he and a Williams official meet to discuss representation of the Williams employees. Consequently, on December 14, the Union filed a charge with the Board alleging violations of the National Labor Relations Act (“NLRA”). Barnes called an employee meeting to discuss the Union’s allegations on December 28, 1987. During the meeting, an employee said that he opposed union representation and asked Barnes what he and other employees sharing his view could do to prevent unionization of the plant. Barnes explained that the employees could draw up a petition expressing their views but cautioned that any effort to do so would have to be done on the employees’ own time. Barnes also stated that Williams would be “glad” to receive a petition as a “defense” to the charges. Barnes was delivered a petition on December 31, 1987, signed by 23 of the 35 current production employees of Williams stating that they did not wish to be represented by the Union.

On January 25,1988, for unknown reasons, the Union withdrew its charge with the Board. By letter dated February 2, it renewed its demand for recognition from Williams. Then, two days later, the Union refiled its charges. Williams rejected the Union’s second request for bargaining by a letter dated February 16, asserting that the anti-union petition signed by a majority of its production employees in December created a good faith doubt as to the Union’s majority status and thereby relieved it of the duty to bargain.

*1285 On August 9, 1988, based on the above facts, the Board issued a complaint against Williams alleging that Williams had a duty to bargain with the Union as a successor employer and that its refusal to do so violated the NLRA. The complaint also alleged that Williams violated the NLRA by telling employees that it would not have a union at the new plant. 1

An Administrative Law Judge found that Williams was a successor company to Bristol, that, as such, it had a duty to bargain with the Union because it was an incumbent union, 2 and that its failure to bargain constituted a violation of the NLRA. Williams Enters., Inc., 5-CA-19408, slip op. at 8, 11 (May 22, 1989) (hereinafter ALJ Opinion). The ALJ concluded that the duty to bargain arose after Spain’s telephone conversation with Barnes; although made before Williams succeeded Bristol, this conversation constituted a demand that continued until approximately October 15, 1987, by which time Williams had hired a substantial and representative complement of its work force, the majority of whom had been employed by Bristol and presumably supported the Union. The ALJ further found that this original demand was reaffirmed by the Union’s filing of refusal-to-bargain charges in December 1987 and again by the Union’s letter in February 1988 which renewed the demand for recognition. Because the ALJ then found that Johnson’s statement at the August 21, 1987 meeting that Williams intended to operate non-union violated the NLRA and tainted the petition signed by the employees, the ALJ rejected Williams’s contention that it had a good faith doubt about the Union’s majority status when it refused to bargain. Finally, the ALJ found that Barnes did not violate the NLRA by discussing a decertification petition at the December 28 meeting of employees. Based on these findings and conclusions, the ALJ recommended ordering Williams to cease and desist all NLRA violations including the refusal to recognize and bargain with the Union.

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Bluebook (online)
50 F.3d 1280, 148 L.R.R.M. (BNA) 2978, 1995 U.S. App. LEXIS 7645, Counsel Stack Legal Research, https://law.counselstack.com/opinion/national-labor-relations-board-v-williams-enterprises-incorporated-a-ca4-1995.