NLRB v. Dynatron/Bondo Corporation

Court of Appeals for the Eleventh Circuit·Decided May 25, 1999·No. 98-8257·Published

Opinion

NATIONAL LABOR RELATIONS BOARD, Petitioner, v.

DYNATRON/BONDO CORPORATION, Respondent.

Nos. 98-8257, 98-8418.

United States Court of Appeals,

Eleventh Circuit. May 25, 1999.

Applications for Enforcement of Orders of the National Labor Relations Board (Georgia Case).

Before COX, BIRCH and HULL, Circuit Judges.

PER CURIAM:

The National Labor Relations Board seeks to enforce two decisions and orders against

Dynatron/Bondo Corporation. Dynatron, for its part, challenges those orders. We enforce in part and deny

enforcement in part.

I. Background

In yet another chapter in a long battle between Dynatron and its employees, the newly certified Union

of Needletrades Industrial and Textile Employees accused Dynatron of engaging in several unfair labor practices. The practices still at issue1 here fall into two categories: impermissible unilateral changes to

working conditions, see 29 U.S.C. § 158(a)(5); Litton Financial Printing Div. v. N.L.R.B., 501 U.S. 190, 198,

111 S.Ct. 2215, 2221, 115 L.Ed.2d 177 (1991), and discrimination against pro-union employees, see 29

U.S.C. § 158(a)(3).

The unilateral changes charged (and still at issue here) were: (1) ceasing of regular merit raises; (2)

raising employee contributions to group health insurance premiums; (3) banning smoking in Dynatron's entire plant; (4) establishing a rule requiring an employee to timely arrive at his work station, in addition to

punching in on time; (5) assigning employees numbered parking spaces; (6) requiring employees to use and

carry ID cards; (7) promulgating new disciplinary rules for material handlers; and (8) fixing compensation for plant shutdowns due to hurricanes. The two alleged discharges in violation of NLRA § 8(a)(3) were of

Floyd Robin Davis, ostensibly fired for taking four green pens to use in his work without authorization, and

1 The original charges included some other alleged unfair labor practices (such as Dynatron's unilateral elimination of "safety bingo"), but no one challenges the result below on those practices.

Lee Carter, assertedly fired for using abusive and profane language to a member of management and for

insubordination.

The administrative law judge ruled against Dynatron in every respect in the complaints based on these

charges. He found that Dynatron, by unilaterally altering the working conditions described above, had refused to bargain in good faith. He further found that Davis and Carter had been fired for their vocal support

of the union. Dynatron appealed to the N.L.R.B., which substantially agreed with the ALJ and ordered

appropriate relief. Dynatron now seeks to have this court deny enforcement of the N.L.R.B.'s orders.2 Dynatron has not argued that the Board's rules are unreasonable in any respect. Rather, some of its

challenges rest on the assertion that the record before the Board does not support the Board's findings of fact. These findings are conclusive "if supported by substantial evidence on the record considered as a whole."

29 U.S.C. § 160(e), (f). "Put differently, we must decide whether on this record it would have been possible

for a reasonable jury to reach the Board's conclusion." Allentown Mack Sales & Serv., Inc. v. N.L.R.B., 522

U.S. 359, 118 S.Ct. 818, 823, 139 L.Ed.2d 797 (1998). Other challenges rest on the Board's application of N.L.R.B. rules to the facts. As in the case of construction of the Act, we defer to the Board's application of

its rules if the application is reasonable. See Evans Servs., Inc. v. N.L.R.B., 810 F.2d 1089, 1092 (11th

Cir.1987).

II. Discussion

1. Merit increases.

The Board concluded that Dynatron had engaged in an unfair labor practice under 29 U.S.C. §

158(a)(5) by unilaterally ceasing to grant merit pay increases after May 1993. Dynatron does not dispute that

discontinuing merit pay increases would be an unfair labor practice, nor does it dispute that it discontinued

the increases. Dynatron argues, rather, that as a matter of fact regular merit pay increases were never a condition of employment, since even before May 1993 such increases were awarded only at Dynatron's whim.

Dynatron's argument on this point rests on the testimony of its management and on profiles of a few employees' wage history.

2 The N.L.R.B. asks this court to enforce those portions of its orders that Dynatron has not challenged, particularly those relating to the Board's finding that Dynatron engaged in improper surveillance of union leafleting and fired employees Pepper, Bennett, and Moss in retaliation for union activity. The N.L.R.B. is of course due enforcement of the parts of its orders relating to these findings, and we summarily enforce them. See 29 U.S.C. § 160(e), (f); Northport Health Servs., Inc. v. N.L.R.B., 961 F.2d 1547, 1551 n. 3 (11th Cir.1992).

While one certainly could reasonably agree with Dynatron, we conclude that the Board's finding of

a past policy is based on substantial evidence. It was undisputed that employees underwent merit reviews during the relevant period. The coversheet of performance reviews prescribed a three-step process. The

second step was to "DECIDE ON RECOMMENDED INCREASE, IF ANY." (E.g., 98-8257 R.2-Gen'l

Counsel Ex. 140 at 1.) The third step was to "REVIEW PROPOSED EVALUATION AND INCREASE

WITH PERSONNEL MANAGER." (E.g., id.) According to a summary of merit pay increases from the late

1980s through 1993 (whose accuracy is not controverted), a majority of employees received annual merit pay increases in each year. Over the period summarized, almost all employees hired before 1992 received at least

one merit pay increase on a service anniversary. All this evidence suggests that Dynatron did have a practice of frequently awarding merit increases on anniversary dates, and it distinguishes this case from those in which

the practice of awarding merit pay increases was totally capricious and not based on periodic evaluation. See,

e.g., Ithaca Journal-News, Inc., 259 N.L.R.B. 394, 395 (1981).

The Board was entitled, moreover, to give little weight to the testimony of Dynatron management.

The plant manager's testimony, for instance, was inconsistent with his own testimony and the human resources manager's: when first asked of the merit review and pay raise process, the plant manager testified that "[g]enerally there was a three[-]month review, a six[-]month review, and an annual review. Basically,

we give an increase really at any one of those times or any combination of those times." (98-8257 Tr. at 342.)

Later, however, he testified that "[p]eople received increases indiscriminately at anytime [sic ]." (Id. at 344.)

And the human resources manager testified that raises were given "haphazardly" and were "all over the

place." (Id. at 429-30.) The cherry-picked examples of six employees whose merit pay increases did not

follow the policy, moreover, are only weakly persuasive for the usual reasons that cherry-picked examples are not; exceptions may disprove a firm rule, but they do not undermine evidence of a broad and general policy.

Considering the record "as a whole," 29 U.S.C. § 160(e), (f), we conclude that substantial evidence

supported the Board's finding, and we enforce the portion of its order concerning the merit pay increases.

2. Health Insurance Premiums.

The Board ruled that Dynatron engaged in an unfair labor practice in violation of 29 U.S.C. §

158(a)(5) by unilaterally increasing employee contributions to health insurance premiums following a

unilateral decision to select a more expensive insurance carrier. Dynatron does not dispute that if it had no fixed policy of passing on premium costs, increasing the employee contribution would have to be negotiated

with the union. See N.L.R.B. v. Allis-Chalmers Corp., 601 F.2d 870, 875-76 (5th Cir.1979). Rather,

Dynatron argues that it had a fixed policy.

Substantial evidence supports the Board's conclusion to the contrary. No one disputes that Dynatron

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