Outboard Marine Corporation v. National Labor Relations Board

9 F.3d 113, 145 L.R.R.M. (BNA) 2200, 1993 U.S. App. LEXIS 35212
CourtCourt of Appeals for the Seventh Circuit
DecidedOctober 13, 1993
Docket92-2733
StatusUnpublished

This text of 9 F.3d 113 (Outboard Marine Corporation v. National Labor Relations Board) 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
Outboard Marine Corporation v. National Labor Relations Board, 9 F.3d 113, 145 L.R.R.M. (BNA) 2200, 1993 U.S. App. LEXIS 35212 (7th Cir. 1993).

Opinion

9 F.3d 113

145 L.R.R.M. (BNA) 2200

NOTICE: Seventh Circuit Rule 53(b)(2) states unpublished orders shall not be cited or used as precedent except to support a claim of res judicata, collateral estoppel or law of the case in any federal court within the circuit.
OUTBOARD MARINE CORPORATION, Petitioner, Cross-Respondent,
v.
NATIONAL LABOR RELATIONS BOARD, Respondent, Cross-Petitioner.

Nos. 92-2733, 92-3171.

United States Court of Appeals, Seventh Circuit.

Argued May 6, 1993.
Decided Oct. 13, 1993.

Before CUDAHY, COFFEY and MANION, Circuit Judges.

ORDER

The National Labor Relations Board found that Outboard Marine Corporation committed a plethora of unfair labor practices. Among the many findings against it, Outboard challenges only three: whether Outboard improperly hired too many permanent replacements; whether it delayed recalling the economic strikers; and whether it improperly withdrew recognition of the union after a decertification petition. We conclude that the record shows substantial evidence supporting the Board's decisions, and accordingly enforce.

I. Facts

Outboard manufactures and distributes recreational marine products. This case focuses in particular on its Calhoun, Georgia manufacturing plant that produces outboard motors. On April 18, 1985, after a Board-conducted election in which a majority of production and maintenance employees elected the Laborers' International Union of North America, Local Union 752 (the Union) as their collective bargaining representative, the Union was certified. But Outboard had a long history of opposing unionization of the Calhoun plant. Beginning in November 1984 Outboard was alleged to have made numerous threats of plant closure, the loss of jobs if a strike occurred, the futility of supporting the Union, and future unfavorable recommendations. While each side casts a different light on this confrontational period, Outboard has chosen not to appeal many of the Board's findings. Although contested before the ALJ and the Board, we recite facts that are essentially uncontested on appeal.

In the months following the Union's certification, the parties negotiated on a contract. Continued animosity seemed to dominate these negotiations. Supervisors Steve Fowler and Howard Gallman warned employees of the futility of their support for the Union and their possible engagement in a strike. Manager Ronald Tetzlaff and Supervisor George Hutchinson predicted that the plant would close if a strike occurred. Production Manager Terry Fulmer speculated that other employers would not hire the strikers. The Board saw these incidents in the context of threats. Fulmer also offered a supervisor's position to the Union's chief steward, Ray Moore, if he would assist Outboard in getting rid of the Union. Plant Manager John Florip admonished the employees regarding the futility of supporting the Union, that no contract would ever materialize, and that if they went on strike, they would lose their jobs and not work anywhere in the community.

During this time period, the Union was not Outboard's only concern. Although it is the world's largest producer of outboard motors, Outboard faced stiff, world-wide competition. It originally designed the Calhoun plant to manufacture motors on a computerized, continuous conveyor, hoping to produce more than 1,200 motors per day. But production never came close to that goal. While Japan-made motors averaged one defect per three motors, some evaluations showed Calhoun experiencing as many as twenty defects per motor. Thus, the contract negotiations occurred against the additional pressure of failures in a costly program which was designed to revamp the Calhoun manufacturing process and to make it more competitive.

As the months went by, contract negotiations did not progress. On January 6, 1986, after twenty negotiating sessions had produced few positive results, the Union declared a strike for January 15. Approximately a week before the planned strike, Supervisors Gallman and Hutchinson again warned employees with the loss of their jobs and benefits and unfavorable recommendations to prospective employers if they went on strike. Outboard has not contested the Board's finding that these direct confrontations with employees violated section 8(a)(1) of the National Labor Relations Act (NLRA),1 29 U.S.C. Sec. 158(a)(1).

On January 14, 1986, one day before the scheduled strike, the Company proposed a complete contract to the Union during the bargaining session. After reading the document, the Union asked to reconvene (by this time it was late in the evening). The parties briefly discussed a dues check-off provision and the contract's duration. However, Jim Miles, Outboard's chief negotiator, had had enough. When the Union presented a counter-proposal, Miles stated the negotiations were at an impasse. Although the Union negotiator insisted they were not at impasse, Miles claimed he was too tired to continue, and left the meeting. As planned, on January 15 the employees went on strike. As an immediate response, Outboard implemented the wage and benefit increases contained in their last contract proposal. Outboard does not contest the Board's findings that its actions in declaring an impasse when none existed and its unilateral implementation of compensation increases violated section 8(a)(5).

The strike was short-lived. In less than a week, on January 21, 1986, the Union accepted Outboard's contract terms previously presented and unconditionally offered to return to work. The circumstances, however, had changed dramatically. On January 15, when the strike commenced, Outboard had been employing 185 production and maintenance workers. Of those, 103 went on strike while the rest stayed on the job. By January 20, Outboard had recalled approximately 30 non-striking, previously laid-off employees and hired 115 additional permanent replacements, bringing the total complement to 231 employees. Apparently because this number was more than before the strike, the strikers' offer to return to work resulted in their merely being placed on a preferential hiring list.

During the short strike, Outboard continued to pressure Union supporters. As stated previously, Outboard does not contest the Board's finding that prior to the strike Supervisor Hutchinson threatened employees not only with the loss of their jobs and benefits but also with unfavorable recommendations to prospective employers if they went on strike. One of those employees was Eunice Darlene Rayburn. Soon after the strike was underway, she spoke with Hutchison concerning the possibility of her returning to work. He stated that Outboard did not "want[ ] anyone there with a union card." Plant Manager Florip told the picketing strikers, "Well it's going to be a cold day in hell before you get a contract." In addition to these uncontested violations of the NLRA section 8(a)(1), the ALJ and the Board also found that on January 20 Outboard hired at least ten new employees rather than several strikers, including Rayburn, who had shown up at 7:00 that morning offering to return to work. They were sent home at noon, being told that they had been replaced.

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9 F.3d 113, 145 L.R.R.M. (BNA) 2200, 1993 U.S. App. LEXIS 35212, Counsel Stack Legal Research, https://law.counselstack.com/opinion/outboard-marine-corporation-v-national-labor-relat-ca7-1993.