Plastic Masters, Inc. v. National Labor Relations Board

512 F.2d 449, 88 L.R.R.M. (BNA) 2822, 1975 U.S. App. LEXIS 16005
CourtCourt of Appeals for the Sixth Circuit
DecidedFebruary 20, 1975
Docket74-1152
StatusPublished
Cited by18 cases

This text of 512 F.2d 449 (Plastic Masters, Inc. v. National Labor Relations Board) is published on Counsel Stack Legal Research, covering Court of Appeals for the Sixth Circuit primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Plastic Masters, Inc. v. National Labor Relations Board, 512 F.2d 449, 88 L.R.R.M. (BNA) 2822, 1975 U.S. App. LEXIS 16005 (6th Cir. 1975).

Opinion

PHILLIPS, Chief Judge.

This case is before the court upon a petition to review a bargaining order of the National Labor Relations Board and the cross-application of the Board for enforcement of its order. The decision of the Board was issued on summary judgment by a vote of two to one, with Chairman Edward B. Miller dissenting. Reference is made to the decision and order reported at 206 N.L.R.B. No. 105 (1973). Although the case involves genuine issues of material fact, no hearing was conducted by an Administrative Law Judge.

We deny enforcement because of the cash payments by the Union to the individuals in question, on authority of NLRB v. Savair Mfg. Co., 414 U.S. 270, 94 S.Ct. 495, 38 L.Ed.2d 495 (1973), and Collins & Aikman Corp. v. NLRB, 383 F.2d 722 (4th Cir. 1967).

Plastic Masters, Inc. (the Company) refused to bargain with the Union upon *450 the claim that the Union’s narrow victory in a certification election was the result of unlawful payments of money by the Union to certain employees, including one William May whom the Company contends to have been one of its supervisors. These payments ostensibly were made as repayment for time lost from work and expenses incurred in the Union’s organizing effort.

After the election had been won by the Union by a vote of 51 to 46, the Company filed timely objections thereto, contending that: (1) May, an alleged supervisor, had participated in the Union’s organizing efforts and election campaign; and (2) the Union had offered and provided monetary benefits and rewards to May and to certain employees as inducement for their support of the organizing effort. The Regional Director conducted an administrative investigation, following which he issued a supplemental decision and order overruling the objections and certifying the Union. He held that: (1) May was not a supervisor and (2) that any payments made by the Union were remunerative in character and that employees were not induced to support the Union by offers of or by actual payments of money.

Thereafter the Company filed a timely request for a review of the supplemental decision of the Regional Director. A hearing was granted to the Company on its objection relating to Union payments of cash to its employees. An evidentiary hearing was conducted before Hearing Officer Stewart J. Katz, who recommended that the Company’s objection be sustained, that the certification of the Union be withdrawn and that a second election be ordered. It is not without significance that Hearing Officer Katz was the only Board representative in this entire proceeding who heard evidence and had an opportunity to make a determination as to credibility of witnesses. Reference is made to the decision of Hearing Officer Katz, which is attached as Appendix A to this opinion, for his findings of fact after a full evidentiary hearing.

The Regional Director disagreed with the findings and recommendations of Hearing Officer Katz and certified the Union as bargaining representative, saying, inter alia:

However, contrary to the Hearing Officer, I am of the opinion that the concatenation of events herein does not demand an inference that the Petitioner’s intent in paying May and Hill-man in excess of actual reimbursements was for the purposes of influencing their votes and insuring the continued support by two employees.

With respect to May, the Regional Director said:

In the present case May received less than twice his usual pay. He had taken the whole day off and participated during three staggered polling periods for a total of about three and one-quarter hours. Furthermore, May pri- or to agreeing to become the Petitioner’s observer demanded he be compensated for the lost time and he was on the same basis as previously. There was no evidence to suggest that such payment, even if Petitioner knowingly overpaid May, was for the purpose of influencing his or any other employees’ vote.

While the Board agreed with this conclusion, in our opinion the intent or absence of intent on the part of the Union to influence the employees’ votes by the overpayments is not a controlling factor. Whether the conduct of the Union was intended to influence the vote, these actions “undoubtedly had a tendency to influence the election results.” Collins & Aikman Corp. v. NLRB, 383 F.2d 722, 729 (4th Cir. 1967). Therefore the actual overpayment to May, who was highly respected and influential, and the overpayments to certain of the other employees precludes enforcement of the decision of the Board. NLRB v. Savair Mfg. Co., supra, 414 U.S. 270, 94 S.Ct. 495, 38 L.Ed.2d 495, aff’g 470 F.2d 305 (6th Cir. 1972). We follow the decision of the Fourth Circuit in Collins & Aik *451 man, supra, 383 F.2d at 728 — 29, cited with approval by the Supreme Court in Savair, supra, 414 U.S. at 279 n. 6, 94 S.Ct. 495.

It also is significant that even though the dissenting opinion of Mr. Justice White in Savair disagreed with the majority view as to the inducement in a waiver of initiation fees, it was pointed out that cash payments by a Union to employees presents a different problem:

It is certainly arguable that such a connection [between a Union inducement and the employee’s vote] can be made when the union pays a person cash to vote for or assist the union. The benefit of the union has been tendered and the employee may well feel he has incurred a moral obligation to vote for the union. See, e. g., Wagner Electric Corp., 167 N.L.R.B. 532, 533 (1967) (grant of life insurance policy to those who signed with union before representation election “subjects the donees to a constraint to vote for the donor union”). See also Collins & Aikman Corp. v. NLRB, 383 F.2d 722 (CA4 1967) (payment of $7 to employee to be observer at election); NLRB v. Commercial Letter, Inc., 455 F.2d 109 (CA8 1972) (excessive payments to union members to attend meetings). 414 U.S. at 288 n. 7, 94 S.Ct. at 504.

The company further contends that May was a supervisor and that the Board erred in holding to the contrary. We cannot say that the finding of the Board on this issue is not supported by substantial evidence on the record considered as a whole. However, the record demonstrates that May was a man of considerable influence among the employees. Overpayments by a union to such an employee are suspect, since, as stated in Savair, supra, 414 U.S. at 277, 94 S.Ct.

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512 F.2d 449, 88 L.R.R.M. (BNA) 2822, 1975 U.S. App. LEXIS 16005, Counsel Stack Legal Research, https://law.counselstack.com/opinion/plastic-masters-inc-v-national-labor-relations-board-ca6-1975.