Ohr v. Arlington Metals Corp.

148 F. Supp. 3d 659, 204 L.R.R.M. (BNA) 3645, 2015 U.S. Dist. LEXIS 160492, 2015 WL 7731959
CourtDistrict Court, N.D. Illinois
DecidedDecember 1, 2015
DocketNo. 15-CV-8885
StatusPublished
Cited by2 cases

This text of 148 F. Supp. 3d 659 (Ohr v. Arlington Metals Corp.) is published on Counsel Stack Legal Research, covering District Court, N.D. Illinois primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Ohr v. Arlington Metals Corp., 148 F. Supp. 3d 659, 204 L.R.R.M. (BNA) 3645, 2015 U.S. Dist. LEXIS 160492, 2015 WL 7731959 (N.D. Ill. 2015).

Opinion

MEMORANDUM OPINION AND ORDER

AMY J. ST. EVE, District Court Judge:

The United Steel, Paper and Forestry, Rubber, Manufacturing, Energy, Allied Industrial and Service Workers International Union, AFL-CIO (“Union”) filed unfair labor practice charges with the National Labor Relations Board (“NLRB”) against Defendant Arlington Metals Corporation (“AMC”). Plaintiff NLRB has filed a petition seeking interim injunctive relief pending the final disposition of the administrative proceeding under 29 U.S.C. § 160(j) (“Section 10(j)”). After considering the entire record, 'including the testimony and proceeding before the Administrative Law Judge (“ALJ”), the Court denies Plaintiffs petition for the following reasons.

BACKGROUND

I. Events Leading To The Negotiations At Issue

AMC is an Illinois corporation engaged in the business of steel slitting and blanking. Specifically, AMC’s business involves two operations: toll processing and metal sales. (R. 20, Admin. Rec., at 47-58.) In toll processing, AMC buys steel coils from steel mills, cuts them according to- the mills’ customer-specifications, and collects a “tolling fee.” (Id. at 58.) In metal sales, AMC buys steel from steel mills, cuts the metal according to AMC’s customer-specifications, and sells the metal to its customers. (Id. at 51-56.) Toll processing comprises about eighty percent of AMC’s business while metal sales comprise approximately twenty percent. (Id. at 85.)

On October 10, 2007, the Union won a certification election and became AMC employees’ exclusive collective-bargaining representative serving the following people:

All full-time and regular part-time production, maintenance, and shipping and receiving employees employed by the Employer [AMC] at its facility currently located at 11855 Franklin Avenue, Franklin Park, Illinois; but excluding office clerical employees and guards; professional employees and supervisors as defined in the Act.

(R. 20-1, Admin. Rec., at 173; R. 20, Admin. Rec., at 125-26.) The Union assigned the AMC employee representation to the United Steel Workers Amalgamated Local 7773 (“Union”)1. (R. 20, Admin. Rec., at 124.) At that time, the Union represented 52 unit employees. (Id. at 125.)

[663]*663Soon afterward, AMC’s business began to suffer, in part, from the December 2007 national recession. (Id. at 397; R. 20-1, Admin. Rec., at 303.) In 2006, AMC processed 201,867 tons of steel with 52 unit employees, reaping a $1,229 profit. (Id. at 535.) Each number would steadily decrease from 2007 to 2011. Indeed, in 2010, AMC only processed 126,912 tons of steel with 24 unit employees, losing $452,170. (Id.) Ultimately, from 2007 to October 5, "2011, AMC lost $3,399,024. (Id.)

AMC-Union negotiations began in November 2007. (Id. at 13Ó.) Throughout 2007 and most of 2008, the parties' reached a number of agreements regarding non-economic issues. (Id. at 130-31; 136.) In late 2008, however, the parties began negotiating economic issues. (Id. at 131-32.) In 2009, AMC, still suffering from the recession, withdrew a previous wage increase proposal. (Id. at 437-38; R. 20-1, Admin. Rec., at 303.) Instead,, AMC proposed its “Last Best and Final Offer:” a wage cut and 180,000-ton-steél-processing benchmark for increasing the unit employees’ wages. (Id. at 438.) In May 2009, the Union rejected AMC’s offer. (Id. at 371.) In August 2009, however, AMC declared that the parties were at an impasse and unilaterally implemented its proposal. (Id. at 132,. 369.) Specifically, AMC stated that,

[t]he Company [AMC} will re-store [sic] the wage rates in effect immediately pri- or to the effective date of this Agreement if in the 12 month period immediately following the effective date of this Agreement the Company processes 180,-000 tons of steel.
The Company [AMC] will pay each employee a lump- sum bonus on or around the 30th month following the effective date ■ of this Agreement, if during the second full year of this Agreement the Company [AMC] processes 180,000 tons of steel. Such lump sum-payment will be equal to 1% of the employee’s'previous year’s lowest base wage multiplied by 2080.

(R. 20-1, Admin. Rec., at 264, 371.)

The ALJ concluded that by January 2012, AMC and the Union had met at least thirty-five times to, in part, negotiate these economic issues. (R. 20-2, Admin. Rec., at 141.) Specifically, the parties-, met nine times between April 2011 and December 2011 to negotiate changes to AMC’s 2009 unilateral wage implementation. (Id.) In December 2011, however, AMC again declared that the parties were at an impasse. (R. 20, Admin. Rec., at 363.) As a result, in January 2012, AMC again unilaterally implemented employment terms and conditions, in. part, setting the same 180,000-steel-ton threshold for wage increases. (Id. at 132-33.) In March 2012, while the parties made some progress, they could not agree upon new wage terms and conditions. (Id. 455-58.) In June 2012, the Union attempted to meet, and bargain with . AMC, and AMC declined, declaring that the circumstances had not changed and the parties remained at an impasse. (Id. at 458-59.)

In July-' 2012, an AMC employee petitioned for an election to decertify the Union- as the employee’s-exclusive bargaining representative. (Id. at 134, 459.)'The Union won that election and was re-certified. (Id. at 135.) In September 2012, the Union requested to meet and.bargain with AMC regarding the 2012 unilaterally implemented wage terms and conditions. AMC declined, restating that the parties were at an impasse, (Id. at 139, 459.)

Accordingly, the Union filed unfair labor practice charges against AMC in 2013. (Id. at 139-140.) Specifically, the Union alleged that AMC had refused to bargain in good faith and illegally'sponsored a decertification petition. (Id. at 140.) The parties eventually signed an informal settlement agreement on-July 8, 2013. (Id. at 140-41; R. 20-

[664]*6641, Admin. Rec., at 229.) Without admitting to any National Labor Relations Act (“Act”) violations, AMC agreed to meet and bargain with the Union in good faith and allow Union representatives access to its facilities to investigate health and safety concerns. (R. 20-1, Admin. Rec., at 229-32.) In addition, the settlement agreement extended the Union’s certification for one year. (Id. at 229; R. 20, Admin. Rec., at 141.)

II. September and October 2013 Meetings

On September 2013, the parties met to discuss AMC’s discharge of the Union’s steward and two employees’ insurance issues. The parties also established a collective bargaining negotiation schedule. (R. 20, Admin. Rec., at 144-48; 463-65.) The parties agreed to meet on October 31, 2013 to begin negotiating. (Id. at 144,148.)

On October 31, 2013, the Union negotiated for a new employee contract. Before issuing a new proposal, the Union provided AMC economic evidence illustrating how the employees had suffered since the 2009 and 2012 unilaterally implemented wage terms at issue. (Id.

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148 F. Supp. 3d 659, 204 L.R.R.M. (BNA) 3645, 2015 U.S. Dist. LEXIS 160492, 2015 WL 7731959, Counsel Stack Legal Research, https://law.counselstack.com/opinion/ohr-v-arlington-metals-corp-ilnd-2015.