Osthus v. Trustone Financial Federal Credit Union

182 F. Supp. 3d 901, 2016 U.S. Dist. LEXIS 56146, 2016 WL 1643770
CourtDistrict Court, D. Minnesota
DecidedApril 26, 2016
DocketCase No. 16-cv-168 (SRN/HB)
StatusPublished
Cited by2 cases

This text of 182 F. Supp. 3d 901 (Osthus v. Trustone Financial Federal Credit Union) is published on Counsel Stack Legal Research, covering District Court, D. Minnesota primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Osthus v. Trustone Financial Federal Credit Union, 182 F. Supp. 3d 901, 2016 U.S. Dist. LEXIS 56146, 2016 WL 1643770 (mnd 2016).

Opinion

MEMORANDUM OPINION AND ORDER

SUSAN RICHARD NELSON, United States District Judge

This matter is before the Court on Petitioner Marlin Osthus, Regional Director for the Eighteenth Region of the National Labor Relations Board, for and on behalf of the National Labor Relations Board’s (the “Board”) Petition for Temporary Injunction (“Petition”) [Doc. No. 1]. A hearing on the Petition was held on February 26, 2016. This case presents an especially close call since it appears the Board may ultimately succeed on its underlying claims against Respondent TruStone Financial Federal Credit Union (“TruStone”). However, the threat of irreparable harm is largely lacking. Thus, for the following reasons, the Petition is denied in part and granted in part.

I. BACKGROUND

A. The Parties’ History Regarding the Scope of the Bargaining Unit

TruStone is a credit union which owns and operates a number of branch locations in the metropolitan area’ around Minneapolis and St. Paul and more recently in Wisconsin. (Admin. Tr., Vol. 2 at 201-03 [Doc. No. 11-2]; R-l at 3 and R-2 at 5-6 [Doc. No. 11-5].)1 Since 1979, Local 12 of [905]*905the Office and Professional Employees International Union (the “Union”) has been the exclusive bargaining representative for certain TruStone employees in labor relations and negotiations. (GC-2 (“Cert, of Representative”) at 2 [Doc. No. 11-4].) The employees the Union represents are known as a “unit” which is defined in relevant part as “[a]ll full-time and regular part-time office and clerical employees; excluding managerial employees, temporary employees, ... professional employees ... and supervisors .,” (the “Unit”) (See Cert, of Representative.) Important to the present matter, the Unit carries no geographical limitation—e.g., restriction of the Union’s representation to employees at certain branches or other geographic locations. (See id.)

Over time, TruStone opened new branch locations, or relocated existing branches, without contesting that the Union was the representative of Unit employees at the new and relocated facilities. (See Admin. Tr., Vol. 1 at 93-96, Vol. 2 at 226-27.) However, in approximately 2010, the parties began to disagree about the scope of the Unit—specifically, whether the Union was the “de facto” representative of Unit employees at newly opened TruStone branches (i.e., the geographic scope of the Unit). In an effort to resolve this dispute, the Union and TruStone entered into at least two “neutrality agreements.”

1. The First and Second Neutrality Agreements

The first agreement (“First Neutrality Agreement”) pertained to TruStone’s new branch located in the Highland Park neighborhood of St. Paul (“Highland Park Branch”). (See GC-4 (“First Neutrality Agreement”) at 29-34 [Doc. No. 11-4].) That agreement acknowledged that the Union and TruStone failed to resolve their disagreement about the geographic scope of the Unit during their broader collective bargaining efforts in 2010. (First Neutrality Agreement at 29.) Instead, the parties agreed that the Union would not be recognized as the “de facto” representative of the Highland Park Branch’s employees (who would otherwise be encompassed by the Unit) in exchange for TruStone taking a position of neutrality towards the Union and any organizing efforts at the Highland Park Branch. (See id. at 29-33.) If the Union established majority status at the Highland Park Branch, the parties agreed that it would become the recognized bargaining representative. (See id. at 32-33.) The First Neutrality Agreement was signed by both TruStone and the Union. (Id. at 34.)

At approximately the same time, the parties entered into a second agreement (“Second Neutrality Agreement”) regarding the geographic scope of the Unit at TruStone’s new branch located in Northeast Minneapolis (“Northeast Branch”). (R-3 (“Second Neutrality Agreement”) at 8-13 [Doc. No. 11-5].) Other than the specific branch it pertained to, the Second Neutrality Agreement was in all substantive ways identical to the First Neutrality Agreement. Again, in exchange for Tru-Stone taking a position of neutrality towards the Union and its organizing ef[906]*906forts, the Union agreed that it would not be recognized as the “de facto” representative of office and clerical employees at the- Northeast Branch. (See Second Neutrality Agreement at 8-12.) Although this agreement was not signed by the parties, TruStone claims they agreed that it was effective.2 (See id. at 13 (containing no signatures or date); Admin. Tr., Vol. 2 at 209-12, 232.)

Thus, by the terms of the First and Second Neutrality Agreements, the clerical and office employees at TruStone’s branches located in Apple Valley, Golden Valley, Maple Grove, Minneapolis, Rose-ville, St. Cloud, and its Plymouth administrative center were part of the Union’s bargaining Unit, while similar employees at the Highland Park and Northeast Branches were not.3 (See First Neutrality Agreement at 29; Second Neutrality Agreement at 8.)

2. The Third Neutrality Agreement and the Current Collective Bargaining ; Agreement

Between late 2012 and early 2013, Tru-Stone alleges that it negotiated a third neutrality agreement (“Third Neutrality Agreement”) with the Union as part of a broader collective bargaining effort at that time. (See Admin Tr., Vol. 2 at 212-14; Resp.’s Mem. in Opp. to Petition (“Mem. in Opp.”) at 15-17 [Doc. No. 18].4) As evidence, TruStone produced a redlined5 and unsigned neutrality agreement attached to an email, dated' January 25, 2013, sent from TruStone to the Union. (See R-5 (“Third Neutrality Agreement”) at 21-27 [Doc. No. 11-5].) However, TruStone’s only evidence that the Third Neutrality Agreement was ultimately agreed upon is testimony to this effect from its general counsel who was involved in the bargaining process.6 (See Admin. Tr., Vol. 2 at 215-17.) The Union disputes that the unsigned and redlined Third Neutrality Agreement was effectuated between the parties, (See Pet’s Mem. in Supp. of Petition (“Mem. in Supp.”) at 4 [Doc. No. 15].)7

The Third Neutrality Agreement is substantively similar to the First and Second Neutrality Agreements. However, an important difference is that the Third Neutrality Agreement purports to apply to all “New Facilities” or “New Branches.” (Third Neutrality Agreement at 22-23.) These terms are defined in relevant part as “facilities and branches purchased by [TruStone] or opened by [TruStone] in the State of Minnesota after the effective date of this Neutrality Agreement .... ” (Id. at 22.) Like the previous agreements, the [907]*907Third Neutrality Agreement states that, in exchange for TruStone taking a position of neutrality towards the Union organizing at its new branches, the Union agrees that it will not be recognized as the “de facto” representative of office and clerical employees at new branches. (Id. at 23-26.) Also important is the fact that the Third Neutrality Agreement, by its own terms, expired on September 30, 2014, two years after its alleged effective date, October 1, 2012. (Id. at 27.) Despite this fact, Tru-Stone contends that the Third Neutrality Agreement remains in effect between the parties to this day, emphasizing that Tru-Stone is “prepared to honor” its terms. (See Admin. Tr., Vol. 2 at 225, 237-40; Mem. in Opp. at 12-14.)

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Bluebook (online)
182 F. Supp. 3d 901, 2016 U.S. Dist. LEXIS 56146, 2016 WL 1643770, Counsel Stack Legal Research, https://law.counselstack.com/opinion/osthus-v-trustone-financial-federal-credit-union-mnd-2016.