Overnite Transportation Co. v. National Labor Relations Board

240 F.3d 325
CourtCourt of Appeals for the Fourth Circuit
DecidedFebruary 16, 2001
DocketNos. 99-2494, 00-1065
StatusPublished
Cited by4 cases

This text of 240 F.3d 325 (Overnite Transportation Co. v. National Labor Relations Board) is published on Counsel Stack Legal Research, covering Court of Appeals for the Fourth Circuit primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Overnite Transportation Co. v. National Labor Relations Board, 240 F.3d 325 (4th Cir. 2001).

Opinions

Petition for review denied and cross-application for enforcement granted by published opinion. Judge KING wrote the majority opinion, in which Judge KEELEY joined. Judge NIEMEYER wrote a dissenting opinion.

OPINION

KING, Circuit Judge:

Overnite Transportation Company petitions for review of the Decision and Order (the “Order”) entered against it on November 10, 1999, by the National Labor Relations Board (the “Board”). Pursuant to its statutory authority and the Supreme Court’s decision in NLRB v. Gissel Packing Co., 395 U.S. 575, 89 S.Ct. 1918, 28 L.Ed.2d 547 (1969), the Board the International Brotherhood of Teamsters, AFL-CIO, and its affiliated local unions (collectively the “Union”) at four of Overnite’s service centers. The Board has cross-applied for enforcement of its Order. For the reasons explained below, we deny Ov-ernite’s petition for review and grant the Board’s cross-application for enforcement.

I.

A.

Our recitation of the facts is drawn in significant part from the ALJ’s Decision of April 10, 1998 (the “Decision”), which was affirmed by the Board as to “rulings, findings, and conclusions as modified.” Overnite Transp. Co., 329 N.L.R.B. No. 91, at 1, 1999 WL 1036568 (Nov. 10, 1999).1 As the facts reveal, this is a complex proceeding arising in the context of a campaign advanced by the Union to organize the bulk of Overnite’s 175 service centers throughout the country. The Union alleged, inter alia, that Overnite had granted a discriminatory wage increase in March 1995 to non-Union employees only, in an unlawful attempt to discourage its employees from supporting the Union, thereby violating sections 8(a)(1) and 8(a)(3) of the National Labor Relations Act (the “Act”).2 [328]*328The Union also asserted that Overnite undermined fair elections by engaging in various and pervasive unfair labor practices at specific service centers. The Board’s General Counsel subsequently issued a consolidated complaint against Overnite, alleging that the company had violated the Act in several respects during the Union’s organizing campaign. On July 29, 1995, the General Counsel and Overnite entered into a partial settlement agreement with respect to the consolidated complaint, which the Board approved and incorporated into a decision of September 6,1995.3

After the partial settlement, several issues remained for resolution by the ALJ, relating primarily to whether Gissel bargaining orders were warranted at seventeen of Overnite’s individual service centers.4 The parties thereafter agreed to litigate a sampling of the seventeen Gissel cases, on the premise that a limited decision by the ALJ would assist them in determining how to advance with the remaining issues. By the terms of the partial settlement, the General Counsel reserved the right to use any relevant and admissible evidence, including evidence pertaining to allegations resolved therein.

In his Decision, the ALJ determined that Overnite had committed unfair labor practices affecting employees on both a nationwide and a unit-specific basis. The ALJ proceeded to find that such conduct justified issuance of Gissel orders at four of Overnite’s service centers, i.e., those located in Lawrenceville (Georgia), Louisville (Kentucky), Norfolk (Virginia), and Bridgeton (Missouri). The Board, by its Order, adopted the ALJ’s Decision and directed Overnite to bargain with the Union at those four service centers. Overnite petitions for review of the Board’s decision on the Gissel orders, and the Board cross-applies for enforcement of its Order.

B.

In the exhaustive findings set forth in his Decision, the ALJ catalogued multiple violations of the Act by Overrate, consisting of both national violations and unit-specific violations. Those findings are summarized below.

[329]*3291. National Violations

Two specific violations were found by the ALJ and the Board to have been committed by Overnite on a system-wide basis. These national violations consist of a pair of discriminatory wage increases, in violation of sections 8(a)(1) and 8(a)(3) of the Act, the first taking effect in March 1995, and the second in January 1996.

a. The March 1995 Wage Increase

At the core of this proceeding — and a key justification for issuance of the four Gissel orders — is the nationwide wage increase granted by Overnite to its nonunion employees in March 1995. Beginning in 1991, Overnite had departed from its practice of granting across-the-board raises to its hourly employees each October; Overnite instead deferred the raise anticipated in October 1991 until January 1992, granting additional small hourly increases in, January 1993 and January 1994. Along with its 1994 hourly increases, Over-nite introduced a performance incentive plan (PIP), which provided for employee bonuses if the company met its quarterly and annual earning targets. Due to its disappointing financial performance, however, Overnite awarded only one quarterly PIP bonus in 1994.

Attributable perhaps to employees’ unfulfilled bonus expectations, the Union stepped up its organizing efforts in September 1994. Overnite’s president at the time, Thomas Boswell, responded aggressively to the Union organizing effort in a November 22, 1994 letter to the employees, in which he warned:

I guarantee you, based on what they have done at other companies, the Teamsters will not help us to better make our targets or pay you bonuses or salary increases.... The long lasting record of the Teamsters is not just that they failed to deliver on their promises, but that when their demands have been met, trucking companies have often lost the battle to survive.'

Overnite, 329 N.L.R.B. No. 91 at 17. Similar warnings were made in a December 7, 1994 letter that Overnite distributed to drivers and dock workers in Los Angeles who were attempting to organize. Id. Ov-ernite invoked the Union experience at its Chicago facility, declaring that “just like in Chicago, after the Union was unable to keep the wild promises it made before the vote, it called the employees out on strike.” Id. The December 7 letter ominously concluded: “Do you see any good reason to bring this outside Union in, pay your money to it, and at the same time run the risk of tearing r apart everything you now have?” Id. at 18.

These anti-Union statements were a harbinger of the first discriminatory wage increase, conceived in January 1995, when Jim Douglas replaced Boswell as Over-nite’s president. Just before he left, President Boswell had proclaimed that nonunion employees would receive a 3.5% increase, effective January 1, 1995. Boswell also revealed certain other workplace improvements, calculated to appease the employees.5

When Jim Douglas took over, however, he immediately determined that employees should be given an additional raise. On February 10, 1995, President Douglas announced the “highest annual hourly raise in Overnite’s history,” effective March 5, 1995. He advised the Union, however, that employees in the represented units6 would not receive the raise, unless negotiated through collective bargaining.

Free access — add to your briefcase to read the full text and ask questions with AI

Related

Cite This Page — Counsel Stack

Bluebook (online)
240 F.3d 325, Counsel Stack Legal Research, https://law.counselstack.com/opinion/overnite-transportation-co-v-national-labor-relations-board-ca4-2001.