Service Employees' International Union, Local 79 v. Monroe Mercy Hospital

216 N.W.2d 589, 52 Mich. App. 165, 86 L.R.R.M. (BNA) 2721, 1974 Mich. App. LEXIS 1010
CourtMichigan Court of Appeals
DecidedMarch 15, 1974
DocketDocket No. 17370
StatusPublished

This text of 216 N.W.2d 589 (Service Employees' International Union, Local 79 v. Monroe Mercy Hospital) is published on Counsel Stack Legal Research, covering Michigan Court of Appeals primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Service Employees' International Union, Local 79 v. Monroe Mercy Hospital, 216 N.W.2d 589, 52 Mich. App. 165, 86 L.R.R.M. (BNA) 2721, 1974 Mich. App. LEXIS 1010 (Mich. Ct. App. 1974).

Opinion

Bashara, J.

Defendant appeals from a decision of the Michigan Employment Relations Commission (MERC) directing it to begin collective bargaining with the plaintiff union.

On May 20, 1970, an election was conducted by the MERC to determine whether certain employees of defendant hospital desired to be represented by the plaintiff union. As a result of the election, the union was certified as the bargaining agent of these employees on May 28, 1970, and the union began negotiating with the hospital for a contract. After some 15 to 19 bargaining sessions, the union, believing an impasse had been reached, applied for a governor’s special commission hearing pursuant to MCLA 423.13a; MSA 17.454(14.2); MCLA 423.13b; MSA 17.454(14.3). A commission was convened, hearings were held, and on April 8, 1971, a report was issued. The union indicated it was willing to accept the commission’s recommendations, while the hospital indicated it would work within the framework of the commission’s report, but had reservations concerning the length of the contract and the provision for union security.

A last-offer strike vote was conducted on May 14, 1971. The vote was 97 to 60 in favor of rejecting the hospital’s last offer and striking, 1 ballot was spoiled, and 11 ballots were contested. On May 1, 1972, the union struck against the hospital. Although meetings between the parties were held on May 15, June 1, and June 9, 1972, in an effort [168]*168to resolve the strike, no progress was made. Of the employees in the bargaining unit 106 actually struck, 39 either did not strike or initially struck but later returned to their jobs, and 82 new employees were hired to replace the striking workers.

By a letter dated June 30, 1972, the hospital notified the union that it did not believe the union represented a majority of the employees in the bargaining unit, and as a consequence, the hospital would no longer continue to bargain with the union as the representative of these employees. In response, the union filed unfair labor practice charges against the hospital alleging that it had unilaterally changed working conditions, discriminatorily excluded strikers from the group hospitalization plan, and refused to bargain with the union in violation of MCLA 423.16(1), (6); MSA 17.454(17), [1], [6]. A hearing on the foregoing charges was held before an administrative law judge who determined that the union did not represent a majority of the employees in question, and that the hospital had not violated the statute. In addition, it was recommended that the charges against the hospital be dismissed. The union filed exceptions with the Michigan Employment Relations Commission. After consideration, MERC concluded, contrary to the ruling of the administrative judge, that the 39 employees who had either not struck or who had struck and thereafter returned to work should have been counted as members of the union thereby giving the union majority status in the bargaining unit. The commission also decided that there were no other objective facts establishing the hospital’s good faith doubt of the union’s majority status and as a result the hospital’s refusal to bargain was not in good faith and in violation of § 16(6) of the labor relations [169]*169mediation act. The hospital appeals from the foregoing decision.

The two major issues and corresponding sub-issues will be treated seriatim.

I. Failure of record to establish the "good faith doubt” defense

The defendant contends that there were reasonable grounds for it to believe that the union had lost its majority status. We disagree.

The record reveals that the hospital continued to bargain with the union after the May 1, 1972 strike and actually recognized the union as its employees’ bargaining agent until June 30, 1972, when it notified the union by letter that it did not believe the union represented a majority of the employees in the bargaining unit. However, the hospital now claims that its doubt about the union’s majority status developed gradually and that factors existing before June 30, 1972, provide a reasonable basis for that doubt.

It is clear that an employer cannot "shut its eyes to the. facts”, express no doubt as to the union’s majority status, deal with it as the duly constituted employee representative, and then, when the matter is embroiled in lengthy litigation, argue that it acted on a "good faith” belief. NLRB v Economy Food Center, Inc, 333 F2d 468, 472 (CA 7, 1964); NLRB v Elliott-Williams Co, Inc, 345 F2d 460, 463-464 (CA 7, 1965); Happach v NLRB, 353 F2d 629 (CA 7, 1965). In Lodges 1746 & 743 Int Association of Machinists and Aerospace Workers, AFL-CIO v NLRB, 135 US App DC 53, 57; 416 F2d 809, 813 (1969), the Court commented on the danger of such a delay to the bargaining process when it stated:

"In support of this finding, the Board here urges upon us that the company’s withdrawal of recognition, timed as it was, could not have been in good faith. As a [170]*170general proposition, we agree that the appropriate time for a withdrawal of recognition based on reasonable doubt of a union’s majority status is when the union demands bargaining for new contract. To permit an employer to 'save’ his doubts for use at his convenience might subvert the bargaining process by providing him with a club to hold over the heads of the union negotiators.”

The defendant, citing Lane Drug Co v NLRB, 391 F2d 812, 819 (CA 6, 1968), next contends that the closeness of an election is a factor tending to establish the good faith of an employer’s doubt that a union has majority status. While we agree with this statement, it is not applicable to the present case since any inference that might have been drawn from the results of the election was offset by the lapse of time of more than two years between the election and the hospital’s letter raising the question of majority status. The record shows that since the date of the election, rather than losing support, the union actually increased the number of its supporters, since 110 of its members went out on strike, while only 86 had previously voted in favor of the union. Since the hospital knew of the union’s increased support, this fact, apparent from the record, contradicts the hospital’s post-strike assertion that it relied on the closeness of the election on producing, in part, a "good faith” doubt as to the union’s majority status.

The defendant argues that high employee turnover, resulting in 175 changes in the composition of the original voting unit,1 contributed to its doubt that the union still represented a majority of its employees. In NLRB v John S Swift Co, Inc, 302 F2d 342, 345 (CA 7, 1962), the Court stated:

[171]*171"[T]he record is devoid of evidence establishing that the union in fact lost its majority status. The discharges and replacements show only a turnover of employees in the unit. Of itself such turnover is no evidence of loss of majority status by the union.”

We are inclined to agree with the above statements and thus feel that the mere fact that employees have been replaced is without significance. See also NLRB v Gulfmont Hotel Co, 362 F2d 588 (CA 5, 1966).

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216 N.W.2d 589, 52 Mich. App. 165, 86 L.R.R.M. (BNA) 2721, 1974 Mich. App. LEXIS 1010, Counsel Stack Legal Research, https://law.counselstack.com/opinion/service-employees-international-union-local-79-v-monroe-mercy-hospital-michctapp-1974.