Southern Bakeries, LLC v. National Labor Relations Board

871 F.3d 811
CourtCourt of Appeals for the Eighth Circuit
DecidedSeptember 27, 2017
Docket16-3328, 16-3509
StatusPublished
Cited by2 cases

This text of 871 F.3d 811 (Southern Bakeries, LLC v. National Labor Relations Board) is published on Counsel Stack Legal Research, covering Court of Appeals for the Eighth Circuit primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Southern Bakeries, LLC v. National Labor Relations Board, 871 F.3d 811 (8th Cir. 2017).

Opinions

MURPHY, Circuit Judge.

Some production and sanitation employees of Southern Bakeries (“Southern” or “company”) attempted several times to end their representation by the Bakery, Con-fectionary, Tobacco and Grain Millers Union, Local 111 (“union”). The National Labor Relations Board (“NLRB” or “Board”) twice prevented union decertification votes due to Southern’s unfair labor practices that would have tainted such votes. After employees later filed a withdrawal petition, the company withdrew its recognition of the union, and the union again filed an unfair labor practices charge. An administrative law judge (“ALJ”) determined that Southern had committed a number of unfair labor practices that had tainted the withdrawal petition. A divided panel of the Board adopted the majority of the ALJ’s rulings arid, among other things, ordered the company to recognize and bargain with the union. Southern now petitions for review of the Board’s order and the Board cross petitions for enforcement. For the reasons that follow, in substantial part we deny Southern’s petition for review and grant the Board’s cross petition to enforce its order. We also grant the petition for review and deny the cross petition for enforcement as to several portions of the Board’s order.

I. Facts

Southern Bakeries is a commercial bakery that in 2005 purchased its facility from Meyer’s Bakeries. Southern hired most of the employees and recognized the existing union as the bargaining representative for the approximate 200 production and sanitation employees. Southern and the union negotiated several subsequent collective bargaining agreements. The most recent expired in February 2012.

In 2009 a Southern employee petitioned the Board for an election to decertify the union. Most of the employees voted to retain the union. Another decertification petition was filed in December 2011. The union then alleged that Southern had engaged in unfair labor practices. No election was held after the Board determined that Southern had unlawfully assisted the de-certification petition. These charges were later settled without Southern admitting fault.

Southern started restricting the union’s access to its bakery in March 2012. The previous collective bargaining agreement had allowed the union bakery visits to ensure that the agreement was being honored. According to union representative Cesar Calderon, however, the union had in practice been free to meet with employees in the break area with no restrictions as to topic or frequency. Southern now repeatedly told the union that it could only discuss compliance with the previous collective bargaining agreement and could not lobby employees about the decertification efforts. Southern moved Calderon’s visits to a small cubicle with only one chair and no table, and director of manufacturing Dan Banks threatened to call the police if Calderon met with employees in the break area. Subsequently, on March 23, Southern banned him from visiting with employees at the bakery after the company had allegedly received reports about his harassing employees. After some seven months he and other union representatives were again allowed to visit with employees at the bakery. Southern continued to limit their access and emphasized that they were not permitted to solicit union support.

In May 2012, employee John Hankins filed a third decertification petition with the Board. It had been signed by a majority of bargaining unit employees. A decerti-fication vote was scheduled for February 2013, but when union representatives came to the bakery in January 2013, they discovered that without notice or bargaining, Southern had installed surveillance cameras and divided the break area with plywood. The company claimed that it had installed the cameras to deter theft and replaced the windows with plywood to provide adequate ventilation. .

Southern posted a memo to employees in January 2013 stating that the union appeared to have plans to take employees on strike as it had at Hostess bakeries, which had resulted in 18,000 lost jobs and 33 closed bakeries. Over the next month, Southern executive Rickey Ledbetter gave a series of mandatory speeches that between 150 and 170 bargaining union employees were required to hear. In the first speech he told them that unions can harm companies in many ways and leave less money for employee wages and benefits. Ledbetter specifically referred to Meyer’s Bakeries and Hostess, stating that the strike at Hostess had caused 18,000 people to lose their jobs and 33 bakeries to be closed.

Ledbetter repeated similar points in later speeches. He said that strikes sometimes backfire and hurt employees and their families, that strikers can be permanently replaced, and that jobs can be lost at a striking facility. He told the employees that “[i]f a strike does succeed in crippling a company,” it might thereafter be unable to meet customer demands and survive. He also added that Southern employees who were not represented by a union had received pay increases each year while the bargaining unit employees had not received raises in three of the prior five years. The union thereafter filed unfair labor practice charges, and the Board declined to hold the decertification election that had been scheduled for February 2013.

Southern disciplined a number of pro union employees between March and May 2013. After Sandra Phillips discussed the closure of Hostess with another employee and gave him a related newspaper article, she was investigated and received a written warning. Vicki Loudermilk and Lorraine Marks were also investigated after discussing votes with another employee. After Marks left the production line for an emergency bathroom break of fewer than five minutes when no supervisor was available to give permission, she was suspended for six days. Southern officials also urged individual employees to oppose the union for their wages to increase and to avoid the kind of strike that purportedly caused Hostess to fail.

In June 2013 Hankins submitted a petition to the company signed by a majority of the bargaining unit employees. They asked Southern to withdraw recognition of the union which Southern did. The union did not regard its withdrawal as legitimate, however. Several months later, the company unilaterally raised employee wages by an average of 27 cents per hour without notice or bargaining.

The Board then filed its complaint against Southern. Before the ALJ issued a ruling on the charges, however, the Board filed a petition for injunctive relief. The. district court then enjoined Southern from refusing to recognize the union. This injunction was later vacated by our court on the ground that the Board had not sufficiently shown a threat of irreparable harm, in part because the union lacked the support of most employees. See McKinney ex rel. NLRB v. S. Bakeries, LLC, 786 F.3d 1119 (8th Cir. 2015). Thereafter, the ALJ determined in the administrative proceeding that Southern had engaged in a number of unfair labor practices. The company and the Board’s general counsel each filed exceptions to the ALJ’s decision.

A three member panel of the Board largely affirmed in a split decision. The majority decided that Southern had interfered with employees’ exercise of collective bargaining rights, thus violating § 8(a)(1) of the National Labor Relations Act (“NLRA” or “Act”).

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Related

Southern Bakeries, LLC v. NLRB
937 F.3d 1154 (Eighth Circuit, 2019)
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883 F.3d 725 (Eighth Circuit, 2018)

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Bluebook (online)
871 F.3d 811, Counsel Stack Legal Research, https://law.counselstack.com/opinion/southern-bakeries-llc-v-national-labor-relations-board-ca8-2017.