Serramonte Oldsmobile, Inc. v. National Labor Relations Board

86 F.3d 227, 318 U.S. App. D.C. 153, 152 L.R.R.M. (BNA) 2558, 1996 U.S. App. LEXIS 14712
CourtCourt of Appeals for the D.C. Circuit
DecidedJune 18, 1996
Docket95-1455
StatusPublished
Cited by2 cases

This text of 86 F.3d 227 (Serramonte Oldsmobile, 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
Serramonte Oldsmobile, Inc. v. National Labor Relations Board, 86 F.3d 227, 318 U.S. App. D.C. 153, 152 L.R.R.M. (BNA) 2558, 1996 U.S. App. LEXIS 14712 (D.C. Cir. 1996).

Opinion

86 F.3d 227

152 L.R.R.M. (BNA) 2558, 318 U.S.App.D.C. 153

SERRAMONTE OLDSMOBILE, INC., d/b/a Serramonte Oldsmobile,
Serramonte Pontiac, Serramonte GMC Trucks and
Transcar Leasing, Inc., d/b/a Serramonte
Service Plaza, Petitioners,
v.
NATIONAL LABOR RELATIONS BOARD, Respondent,
International Association of Machinists and Aerospace
Workers, District Lodge 190, Local Lodge No. 1414,
Intervenor.

No. 95-1455.

United States Court of Appeals,
District of Columbia Circuit.

Argued May 6, 1996.
Decided June 18, 1996.

On Petition for Review and Cross-Application for Enforcement of an Order of the National Labor Relations Board.

Robert G. Hulteng, San Francisco, CA, argued the cause for petitioners, with whom Robert Leinwand, San Francisco, CA, was on the briefs.

Robert J. Englehart, National Labor Relations Board, Washington, DC, argued the cause for respondent, with whom Linda R. Sher, Associate General Counsel, Aileen A. Armstrong, Deputy Associate General Counsel and Margaret G. Neigus, Supervisory Attorney, Washington, DC, were on the brief.

David A. Rosenfeld, Piedmont, CA, argued the cause and filed the brief, for intervenor.

Before: EDWARDS, Chief Judge, SILBERMAN and ROGERS, Circuit Judges.

Opinion for the Court filed by Chief Judge EDWARDS.

HARRY T. EDWARDS, Chief Judge:

In the fall of 1992, after negotiating for several months with the International Association of Machinists and Aerospace Workers District Lodge 190, Local Lodge No. 1414 ("Union"), petitioners Serramonte Oldsmobile ("Oldsmobile") and Serramonte Service Plaza ("Service Plaza"), two commonly owned automotive facilities, each claimed that an impasse had been reached in collective bargaining with the Union. Accordingly, on September 2, 1992, Oldsmobile discontinued bargaining with the Union and unilaterally implemented most of its proposed contract terms; Service Plaza proceeded likewise on October 12, 1992. Several months later, petitioners entirely withdrew recognition from the Union and unilaterally implemented further changes to employee benefit plans and wage structures.

The Union filed unfair labor practice charges with the National Labor Relations Board ("Board"). The Board found that Oldsmobile was justified in taking unilateral action on September 2, 1992, because the Union, at that point in its dealings with Oldsmobile, had "engaged in a strategy of continually avoiding or delaying bargaining." Serramonte Oldsmobile, Inc., 318 N.L.R.B. No. 6 at 22 (1995), reprinted in Deferred Joint Appendix ("J.A.") 74. However, the Board did not view Service Plaza's actions in the same light. Although the Administrative Law Judge ("ALJ") found that the Union and Service Plaza had reached an impasse on September 14, 1992, he nevertheless determined that subsequent statements from the Union's bargaining representative indicated a willingness to negotiate further. Thus, the Board found that Service Plaza violated the National Labor Relations Act ("NLRA") by unilaterally implementing its proposed contract terms in October 1992. The Board found no lawful bases for the employers' withdrawals of recognition from the Union; these actions, along with petitioners' subsequent unilateral actions, were therefore held to constitute unfair labor practices. Petitioners now seek review of all the Board's unfair labor practice rulings.

We grant the petition only with respect to Service Plaza's unilateral implementation of its contract provisions in October 1992. On this issue, we hold that the evidence is insufficient to support a finding that the impasse reached on September 14th had been broken prior to Service Plaza's unilateral decision to implement changes. As to the other claims presented in this petition, we find the Board's determinations to be supported by substantial evidence and fully in accord with established law. Therefore, the petition for review and the Board's cross-application for enforcement are each granted in part and denied in part.

I. BACKGROUND

A. Overview

The facts of this case are recounted in great detail by the ALJ in his initial decision (which was adopted by the Board in toto). We therefore need only highlight those aspects of the record that are relevant to this opinion.

During most of the period in question, Service Plaza and Oldsmobile operated as separately incorporated facilities located within a mile of each other in Colma, California. Oldsmobile was a self-contained automobile dealership, encompassing retail sales, office, and service areas. Service Plaza was a complex of two buildings housing four separate vehicle servicing areas, each having its own car service pods, equipment, offices, and work areas. As of September 1991, one of the Service Plaza vehicle service areas was utilized for maintenance on Chrysler-Plymouth automobiles, one for Nissan-Isuzu, one for Lincoln-Mercury, and one was vacant. Both corporations were owned by Tom Price, who also held an ownership interest in a separately incorporated, non-union, Mitsubishi dealership. The Mitsubishi dealership was located in the general vicinity of the two unionized operations.

The Oldsmobile service technicians had been represented by the Union since at least 1977, and the most recent collective bargaining agreement was effective from July 16, 1989 until July 15, 1992. However, the Union did not gain certification at Service Plaza until August 9, 1991. The Service Plaza certification included "[a]ll full-time and regular part-time service technicians, including Chrysler-Plymouth/Lincoln-Mercury service technicians, Nissan-Isuzu service technicians [and other technicians] employed by the Employer at its Serramonte Service Plaza location in Colma, California." Decision and Direction of Election 1, 1 (1991), reprinted in Supplemental Appendix ("S.A.") 1. The certification also included a stipulation that specifically excluded from the unit the service technicians employed at the Mitsubishi dealership. Id. at 4, reprinted in S.A. 4.

During the months preceding the fall of 1992, both Oldsmobile and Service Plaza were in negotiations with the Union over the terms of proposed collective bargaining contracts. Compensation and fringe benefits appear to have been the principal points of contention. While the Union's proposed contracts included hourly wage rates and coverage under specified union-sponsored health and pension plans, the companies offered flat-rate compensation based on work production rather than hours worked, and a "cafeteria benefits plan" that included optional health insurance and retirement savings plans.

On September 2, 1992 and October 12, 1992, respectively, both Oldsmobile and Service Plaza declared that the negotiations were at an impasse and accused the Union of engaging in dilatory tactics designed to extend negotiations and prevent implementation of the employers' proposals. Both companies unilaterally adopted most of their contract proposals, but held off on making changes to the employee benefit plans.

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86 F.3d 227, 318 U.S. App. D.C. 153, 152 L.R.R.M. (BNA) 2558, 1996 U.S. App. LEXIS 14712, Counsel Stack Legal Research, https://law.counselstack.com/opinion/serramonte-oldsmobile-inc-v-national-labor-relations-board-cadc-1996.