NLRB v. Aluminum Casting

CourtCourt of Appeals for the Seventh Circuit
DecidedOctober 13, 2000
Docket99-4187
StatusPublished

This text of NLRB v. Aluminum Casting (NLRB v. Aluminum Casting) 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
NLRB v. Aluminum Casting, (7th Cir. 2000).

Opinion

In the United States Court of Appeals For the Seventh Circuit

No. 99-4187

National Labor Relations Board,

Petitioner,

v.

Aluminum Casting & Engineering Co., Inc.,

Respondent.

On Application for Enforcement of an Order of the National Labor Relations Board. Nos. 30-CA-12855, et al.

Argued September 6, 2000--Decided October 13, 2000

Before Manion, Kanne, and Diane P. Wood, Circuit Judges.

Diane P. Wood, Circuit Judge. This case has lain in labor relations limbo for nearly six years, between a union victory in an election that was ultimately set aside and the holding of a new election. In the meantime, the company has (quite happily, we may assume) been operating union- free, and the National Labor Relations Board (the Board) has been pursuing a series of unfair labor practice charges based on conduct both before and after the contested election. Eventually the Board found that the company, Aluminum Casting & Engineering Co., or ACE/CO, had committed a number of violations of the National Labor Relations Act, sec.sec. 8(a)(1) and (3), 29 U.S.C. sec.sec. 158(a)(1) and (3), and it issued an order requiring ACE/CO to cease and desist and to take certain affirmative steps to cure those violations. Aluminum Casting & Engineering Co., 328 NLRB No. 2, 1999 WL 678727 (April 9, 1999). We enforce most of that order, but as we explain below, we decline to enforce with respect to one of the charged violations, and we enforce the remedy only as clarified by the Board’s counsel at oral argument.

I

ACE/CO is a Milwaukee company in the business of manufacturing automobile parts. From 1971 to 1988, its employees were represented by the Moulders Union. The experience was an unhappy one, at least for ACE/CO. Strikes and violence were the order of the day, and the relationship ended in 1988 when the parties were unable to agree on a new collective bargaining agreement. No new union activity seems to have begun until July 1994, when the United Electrical, Radio & Machine Workers of America (the Union) began an organizing drive among ACE/CO’s 400-some production and maintenance workers.

To avoid undue repetition, we discuss the particular events during the organizing campaign that followed in connection with the particular charges the Board brought. It is enough to say here that the election took place on January 5 and 6, 1995. Of the 396 ballots cast, 193 were in favor of the Union and 183 were against; challenged and void ballots would not have changed the result. On the other hand, it turned out that many of the ballots were flawed because of erroneous translations into the several languages spoken at the workplace, including Hmong and Vietnamese. Following a June 1995 hearing on these objections filed by ACE/CO, the Board set aside the January 1995 election and directed that a new one take place. To this day, it has not set a new date, because (as the administrative law judge in this case put it), "further processing of the representation case is blocked by the unfair labor practice charges in this case."

The charges to which the administrative law judge (ALJ) referred were filed by the Regional Director of the Board. There was a hearing on these charges in February 1998, and ALJ William G. Kocol issued a decision in May 1998, to which both ACE/CO and the Board’s General Counsel filed exceptions. The Board ultimately found that ACE/CO had violated the National Labor Relations Act (the Act) in a number of respects: (1) by failing to follow its established practice of giving an annual across-the-board wage increase in early 1995 and by engaging in conduct that indicated to the employees that the failure to receive this increase was the Union’s fault; (2) by prohibiting solicitation "except when all concerned are relieved from duty," (3) by reimbursing only certain anti-union employees for vehicle damage their cars suffered on or near company premises, contrary to its normal practice; (4) by directing employees to report any pressure to sign union authorization cards; and (5) by declaring in its employee handbook its intention "to do everything possible" to remain union-free. The Board’s remedial order requires ACE/CO to rescind the no-solicitation rule, to rescind the challenged handbook language, and to make whole all employees who were not granted across-the-board wage increases in 1995 and thereafter. The Board now seeks enforcement of its order, and ACE/CO has asked that we set it aside.

II

Our review of the Board’s findings of fact and application of the law is deferential, as both parties recognize. See, e.g., Beverly California Corp. v. NLRB, Nos. 98-3177, et al., 2000 WL 1286248, at *5 (7th Cir. Sept. 13, 2000). The Board’s findings of fact are conclusive if they are supported by substantial evidence on the record as a whole. 29 U.S.C. sec. 160(e); Beverly, 2000 WL 1286248, at *5. Its conclusions of law are also entitled to deference if they have a reasonable basis in the law and are not inconsistent with the Act. NLRB v. Yeshiva University, 444 U.S. 672, 691 (1980); Beverly, 2000 WL 1286248, at *5; see also Central Transport, Inc. v. NLRB, 997 F.2d 1180, 1184 (7th Cir. 1993). Finally, we review the Board’s choice of remedy only to ensure that it is narrowly tailored and that it effectuates the polices of the Act. See Beverly, 2000 WL 1286248, at *24; Ron Tirapelli Ford, Inc. v. NLRB, 987 F.2d 433, 437 (7th Cir. 1993). With these standards of review in mind, we consider first ACE/CO’s challenges to the violations found by the Board, and then the remedy.

A. Across-the-Board Wage Increase

The Board found that ACE/CO violated sections 8(a)(3) and 8(a)(1) by failing to grant an across-the-board wage increase in early 1995 and by communicating to the employees throughout that year that the Union was responsible for their failure to receive a raise. ACE/CO argues that the evidence did not show that it had a regular practice of giving an across-the-board raise, and that the real reason none was given in 1995 had nothing to do with the Union. Instead, it claims that it was in the process of revamping its entire compensation system in order to respond to the pressures of competition within the automobile and automotive parts industry, from one that used across-the-board measures to one that was entirely based on factors such as merit and training. The ALJ found that the facts supported the Board’s allegations, and that whatever ACE/CO had begun to do with alternative compensation systems was still merely supplementary to, rather than in lieu of, its across-the-board raises.

Section 8(a)(3) of the Act prohibits an employer from discriminating with regard to terms or conditions of employment in an attempt to encourage or discourage membership in any labor organization. 29 U.S.C. sec. 158(a)(3). Section 8(a)(1) makes it an unfair labor practice for an employer "to interfere with, restrain, or coerce employees in the exercise" of their statutory rights, including especially their section 7 rights to organize. 29 U.S.C. sec. 158(a)(1). An employer violates both sections of the Act if it departs from an established practice of granting wage increases because of a union organizing campaign or other union activity. See, e.g., NLRB v. Shelby Memorial Hosp. Ass’n, 1 F.3d 550, 557- 58 (7th Cir. 1993); NLRB v.

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