Pascarell v. Gitano Group, Inc.

730 F. Supp. 616, 133 L.R.R.M. (BNA) 2906, 1990 U.S. Dist. LEXIS 1580, 1990 WL 12259
CourtDistrict Court, D. New Jersey
DecidedFebruary 13, 1990
DocketCiv. A. 89-3997
StatusPublished
Cited by5 cases

This text of 730 F. Supp. 616 (Pascarell v. Gitano Group, Inc.) is published on Counsel Stack Legal Research, covering District Court, D. New Jersey primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Pascarell v. Gitano Group, Inc., 730 F. Supp. 616, 133 L.R.R.M. (BNA) 2906, 1990 U.S. Dist. LEXIS 1580, 1990 WL 12259 (D.N.J. 1990).

Opinion

OPINION

WOLIN, District Judge.

This matter is before the Court on a petition filed by the Regional Director of Region 22 of the National Labor Relations Board (the “NLRB” or the “Board”), pursuant to § 10(j) of the National Labor Relations Act, as amended, 29 U.S.C. § 160(j) (“the NLRA”), for a temporary injunction pending the final disposition of this action. The filing of this petition follows the issuance of an unfair labor practice complaint pursuant to NLRA § 10(b), upon charges filed by United Automobile, Aerospace & Agriculture Implement Workers of America, AFL-CIO (the “Union”) alleging that respondent Gitano Group, Inc., d/b/a Gitano Distribution Center (“Gitano”) has engaged in, and is engaging in, unfair labor practices within the meaning of NLRA § 8(a)(1), (3), and (5).

The NLRB asserts that Gitano has discriminated against Union employees by laying off and refusing to reinstate employees because of their support for the Union, and that Gitano has refused to recognize and .bargain with the Union concerning a unit of employees at Gitano’s two New Jersey warehouses. Gitano has filed an answer to the Board’s petition for injunctive relief along with a memorandum opposing such relief because there is no reasonable cause to believe the NLRA was violated and the relief sought is not just and proper. As there has been no objection to the Board’s motion to rely on the administrative record for evidence on the reasonable cause issue, the Court will rely on that evidence and the testimony presented before the Court on November 3, 1989. After review of the administrative record, the testimony before the Court and the submissions of the parties, the Court finds that there exists reasonable cause to believe that a violation of the NLRA and that injunctive relief would be just and proper to effectuate the purposes of the NLRA. Therefore, the Board’s petition for injunctive relief pursuant to § 10(j) will be granted.

I. BACKGROUND

A. Prior Proceedings

The Gitano Group, Inc., is a holding company which, through its subsidiaries and *618 affiliated companies, imports and sells men’s, women’s and children’s clothing. Prior to 1986, Gitano’s warehouse and distribution operations were located in Linden, New Jersey. Beginning in 1986, Gitano relocated its operations to a warehouse facility in Edison, New Jersey. The employees at Edison were employed by at least two wholly-owned subsidiaries of Gitano, Orit Corporation (“Orit”) and North American Underwear Company (“NAU”). From 1987 to December, 1988, Gitano also operated a satellite warehouse operation one building away from their Edison warehouse known as the “Crazy Eddie” warehouse.

In March, 1987, the Board issued a Decision and Direction of Election, directing that an election be held among Gitano’s warehouse employees in Edison. In August, 1987, an election was held among Orit and NAU employees in Edison which determined that a majority of the employees voting wanted the Union to represent them. The Board certified the Union to represent “the full-time and regular part-time warehouse employees employed by the Employer [Gitano] at its Edison, New Jersey warehouse, excluding all office clerical employees, professional employees, guards and supervisors as defined in the Act” in September, 1987. Gitano refused to bargain with the Union, contesting the Board’s decision regarding the appropriateness of the bargaining unit among other objections. The Board found that Gitano had violated NLRA § 8(a)(5) and ordered Gitano to bargain. 288 NLRB No. 2, 129 L.R.R.M. 1086 (1988). The Board's decision was enforced by the Third Circuit. N.L.R.B. v. Orit Corporation, et al., 866 F.2d 1411 (3d Cir.1988).

In November, 1987, employees from the bargaining unit engaged in an unfair labor practice strike. In December, 1987, Gitano denied the returning strikers their reinstatement rights under the NLRA. After an unfair labor practice charge was filed by the Union, the Board obtained § 10(j) in-junctive relief from this Court. Pascarell v. Orit Corp., 705 F.Supp. 200 (D.N.J.) (Wolin, J.), aff'd mem. 866 F.2d 1412 (3d Cir.1988). Contempt proceedings were subsequently brought against Gitano by the Board, alleging that Gitano had failed to fully comply with this Court’s order. In May, 1989, the Board’s issued a Decision and Order which ordered Gitano to reinstate the unfair labor practice strikers and make them whole. Orit Corp., 294 NLRB No. 55, 132 L.R.R.M. 1047 (1989). The Board is currently seeking enforcement of that decision.

B. The Instant Case

In June, 1988, Orit entered into a lease for, and began to occupy a warehouse facility at 1111 Corporate Road in North Brunswick, New Jersey, approximately twelve miles from its existing Edison facility. At that point Gitano hired approximately 8 new employees in North Brunswick to work on the P.S. Gitano product line and thereafter received most new merchandise in that product line at the North Brunswick facility. Transcript of Proceedings before the AU (“Tr.”) 155, 180, General Counsel Exhibit (“GCX”) 16. Previously that product line had been split between the Edison facility and the Crazy Eddie warehouse, with most of the merchandise received at the Crazy Eddie warehouse. No Edison warehouse employees were transferred to North Brunswick during this period, although one Edison supervisor was promoted to manage the North Brunswick warehouse. Tr. 162, 628. Gitano did not advise the Union of this relocation at that time. Tr. 233.

The Union first heard rumors of the existence of the North Brunswick facility in August, 1988. NAU employee Delia Colla-do testified that NAU Warehouse Manager Joseph Gabay announced to employees in August, 1988, that it was possible that the NAU operation would be transferred to North Brunswick and asked for employee comments. Tr. 299-300. By letter dated August 11, 1988, the Union requested that Gitano bargain about the effects of a possible relocation. GCX 2. Gitano did not respond. Tr. 20-21. The lease for North Brunswick also provided that additional space would become available in the warehouse in September, 1988. In September, *619 Mr. Gabay viewed the North Brunswick space and recommended to Gitano’s senior management that it be allocated for use by NAU. Respondent’s Brief in Opposition (“Opp. Br.”), p. 4.

In December, 1988, Gitano recognized the Union as the bargaining agent for the Edison employees. On December 12, 1988, the parties held their initial meeting and discussed the mechanics of upcoming contract negotiations. No mention of any proposed relocation of the NAU operations was made at this meeting by Gitano. Tr. 22. By letter dated December, 16, 1988, which was received on, or around, December 19, Gitano informed the Union that all NAU operations would be transferred from Edison to North Brunswick and that all employees currently working for NAU in Edison would be laid off. Tr. 22-23; GCX 3. The letter indicated that the transfer and lay-off would take place “on or about December 30, 1988.” At that time approximately 74 employees worked in the NAU operation at Edison.

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730 F. Supp. 616, 133 L.R.R.M. (BNA) 2906, 1990 U.S. Dist. LEXIS 1580, 1990 WL 12259, Counsel Stack Legal Research, https://law.counselstack.com/opinion/pascarell-v-gitano-group-inc-njd-1990.