Pennsylvania Transformer Technology, Inc. v. National Labor Relations Board

254 F.3d 217, 349 U.S. App. D.C. 140, 167 L.R.R.M. (BNA) 2552, 2001 U.S. App. LEXIS 14400
CourtCourt of Appeals for the D.C. Circuit
DecidedJune 29, 2001
DocketNo. 00-1388
StatusPublished
Cited by10 cases

This text of 254 F.3d 217 (Pennsylvania Transformer Technology, Inc. v. National Labor Relations Board) is published on Counsel Stack Legal Research, covering Court of Appeals for the D.C. Circuit primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Pennsylvania Transformer Technology, Inc. v. National Labor Relations Board, 254 F.3d 217, 349 U.S. App. D.C. 140, 167 L.R.R.M. (BNA) 2552, 2001 U.S. App. LEXIS 14400 (D.C. Cir. 2001).

Opinion

Opinion for the court filed by Circuit Judge KAREN LeCRAFT HENDERSON. '

KAREN LeCRAFT HENDERSON, Circuit Judge:

The petitioner, Pennsylvania Transformer Technology, Inc. (PTTI), petitions the court for review of a decision and order of respondent National Labor Relations Board (NLRB or Board), reported at 331 N.L.R.B. No. 151 (Aug. 25, 2000). In that decision, the Board affirmed and adopted, with modifications, the decision of the Administrative Law Judge (ALJ), who held [221]*221that PTTI violated section 8(a)(1) and 8(a)(5) of the National Labor Relations Act (NLRA or Act), 29 U.S.C. § 158(a)(1) & (5), by refusing to recognize the United Steel Workers of America, AFL-CIO (Union) as the collective-bargaining representative of PTTI’s production and maintenance employees pursuant to a recognition request made on March 30, 1998. PTTI maintains that the Board erred in determining that it was a successor to Cooper Industries, Inc. (Cooper) and that it had hired a substantial and representative complement of employees as of April 1, 1998. The Board cross-applies for enforcement. For the reasons set forth below, we deny PTTI’s petition for review and grant the Board’s application for enforcement.

I. Background

Beginning in 1985, Cooper owned and operated a plant in Canonsburg, Pennsylvania where it produced core electric transformers and shell form transformers. Cooper also sold spare parts to customers. In 1994 Cooper employed between 750 and 880 employees. Its employees were represented by different locals of the Union in three separate collective-bargaining units. In April 1994 Cooper announced to the Union that it planned to close the facility unless a purchaser could be found by the end of 1994. Although the Union and its three locals formed a committee to find a buyer, none was found and on November 22, 1994 the plant closed. Cooper and the Union entered into a “closing agreement” that provided for recognition of the Union in the event Cooper reopened within two years. Cooper retained a skeleton crew to maintain the facility and to provide spare parts to its utility customers. Several former union presidents, state and local officials and members of the local Chamber of Commerce formed a new search committee to find a buyer. Ultimately the committee helped to bring about the sale of the plant to Ravindra Nahl Rahangdale.

In 1995 Rahangdale began negotiations to acquire Cooper’s plant and equipment. On August 9, 1996 he acquired all of the assets of the Canonsburg plant, which he combined with another company he owned to form PTTI. PTTI commenced operations in August 1996 and hired its first employees on September 1, 1996. In January 1997 the company produced its first transformers, utilizing about one-half of the plant space previously used by Cooper and most of the same equipment. PTTI obtained its employees from Bedway Temporary Services (Bedway), which had also assisted Cooper with staffing. Applicants for employment were interviewed by PTTI personnel but hired by Bedway. Employees worked under the supervision of PTTI as probationary employees for three to six months, at which time they were eligible to become permanent employees of PTTI.

In a letter dated March 30, 1998, the Union requested PTTI to recognize and bargain with it as the exclusive bargaining representative of the company’s employee units. As of that time, approximately 82 production employees worked at the plant, 58 of whom, or 72 per cent, were former Cooper employees. Of the 68 production workers on the company’s payroll, 54 were former Cooper employees. PTTI refused to recognize the Union, prompting the Union to file an unfair labor practice charge. The Board subsequently issued a complaint alleging that, beginning April 1, 1998, PTTI had unlawfully refused to recognize and bargain with the Union in violation of sections 8(a)(1) and 8(a)(5) of the Act. By the time of the hearing, which was held on July 7, 1998, PTTI had hired approximately 100 production and maintenance employees, a majority of whom were former Cooper employees.

[222]*222On September 30, 1998 the ALJ issued his findings of fact and conclusions of law, finding, in pertinent part, that PTTI was a successor employer under the Act. The ALJ ordered PTTI to recognize the Union, to bargain collectively with the Union and to post an appropriate notice. PTTI filed timely exceptions to the ALJ’s decision. On December 10, 1998 PTTI also filed a motion to reopen the record to introduce evidence that it had 130 production and maintenance employees, only 62 of whom were former Cooper employees and that former members of the Cooper production and maintenance unit became a minority of PTTI’s production workers as of October 29, 1998. JA 409. The Board’s General Counsel filed limited cross exceptions challenging the ALJ’s failure to find specifically that as of April 1, 1998 PTTI had hired a substantial and representative complement of employees. The Board denied PTTI’s exceptions and its motion to reopen the record, adopted the ALJ’s findings, rulings and order with slight modifications and corrections and granted the General Counsel’s cross-exceptions. • The Board held that (1) PTTI was a successor to Cooper, (2) PTTI had hired a substantial and representative complement of employees as of April 1, 1998 and (3) PTTI violated the Act by refusing to recognize and bargain with the Union. PTTI challenges all three determinations.

II. Analysis

A new employer is a successor to a former employer if there is “substantial continuity” between the enterprises. Fall River Dyeing & Finishing Corp. v. NLRB, 482 U.S. 27, 43, 107 S.Ct. 2225, 96 L.Ed.2d 22 (1987). “Substantial continuity exists when the new company has ‘acquired substantial assets of its predecessor and continued, without interruption or substantial change, the predecessor’s business operations.’ ” CitiSteel USA, Inc. v. NLRB, 53 F.3d 350, 353 (D.C.Cir.1995) (quoting Golden State Bottling Co., Inc. v. NLRB, 414 U.S. 168, 184, 94 S.Ct. 414, 38 L.Ed.2d 388 (1973)). “The essential inquiry is whether operations, as they impinge on union members, remain essentially the same after the transfer of ownership.” International Union of Elec., Radio & Mach. Workers (IUEW) v. NLRB, 604 F.2d 689, 694 (D.C.Cir.1979). The analysis is undertaken with an “emphasis on the employees’ perspective.” Fall River, 482 U.S. at 43, 107 S.Ct. 2225. The implied statutory goal is to promote “industrial peace.” “If the employees find themselves in essentially the same jobs after the employer transition and if their legitimate expectations in continued representation by their union are thwarted, their dissatisfaction may lead to labor unrest.” Id. at 43-44, 107 S.Ct. 2225. Thus the union certified as the collective bargaining representative of the predecessor employer’s employees presumptively retains its certification if the majority of employees after the change of ownership worked for the predecessor employer. See NLRB v. Burns Int'l Sec. Servs., Inc., 406 U.S. 272, 279, 92 S.Ct. 1571, 32 L.Ed.2d 61 (1972).

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254 F.3d 217, 349 U.S. App. D.C. 140, 167 L.R.R.M. (BNA) 2552, 2001 U.S. App. LEXIS 14400, Counsel Stack Legal Research, https://law.counselstack.com/opinion/pennsylvania-transformer-technology-inc-v-national-labor-relations-board-cadc-2001.