Southern Indiana Gas and Electric Co. v. National Labor Relations Board

657 F.2d 878, 108 L.R.R.M. (BNA) 2057, 1981 U.S. App. LEXIS 18629
CourtCourt of Appeals for the Seventh Circuit
DecidedAugust 10, 1981
Docket80-1733
StatusPublished
Cited by13 cases

This text of 657 F.2d 878 (Southern Indiana Gas and Electric Co. v. National Labor Relations Board) is published on Counsel Stack Legal Research, covering Court of Appeals for the Seventh Circuit primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Southern Indiana Gas and Electric Co. v. National Labor Relations Board, 657 F.2d 878, 108 L.R.R.M. (BNA) 2057, 1981 U.S. App. LEXIS 18629 (7th Cir. 1981).

Opinion

PELL, Circuit Judge.

Southern Indiana Gas and Electric Company (Company) has petitioned this court pursuant to 29 U.S.C. § 160(f) to set aside a final order 1 of the National Labor Relations Board (Board) which found that the Company violated Sections 8(a)(1) and (5) of the National Labor Relations Act (NLRA or Act), 29 U.S.C. § 158(a)(1), (5).

The Company has recognized the International Brotherhood of Electrical Workers, Local Union 702, AFL-CIO, (Union) as the exclusive bargaining representative of its production and maintenance employees. The Union, seeking also to represent the Company’s five Power Control Center’s “System Supervisors” (system supervisors), petitioned the Board to direct an election among these employees. The Company opposed the election contending that these employees were (1) “supervisors” exempt from the Act’s coverage under 29 U.S.C. § 152(11), and/or (2) managerial employees traditionally omitted from the Act’s coverage by the Board, see NLRB v. Bell Aerospace Co., 416 U.S. 267, 94 S.Ct. 1757, 40 L.Ed.2d 134 (1974). A Regional Director of the Board held an evidentiary hearing, concluded that these employees were not supervisory or managerial personnel, and directed an election. 2 The Union prevailed *880 and was certified as the system supervisors’ exclusive bargaining representative.

The Company refused to bargain with respect to these employees. The Union thereupon filed an unfair labor practice charge on October 29, 1979. The Board’s Regional Director issued a complaint and the General Counsel moved for summary judgment which the. Board granted. The Board found the Company in violation of Sections 8(a)(1) and (5) 3 of the NLRA and ordered it to bargain with the Union regarding the system supervisors.

The Company continued to refuse to bargain and filed this petition to review and set aside the Board’s order. The Board has cross-applied for enforcement pursuant to 29 U.S.C. § 160(e).

The Company’s Operations

The Company provides electrical utility service 4 to residential, industrial, and commercial customers over a 751-mile network of high voltage lines in an eight-county area around Vanderburgh County, Indiana. The Company operates a total of seventeen generating units eight of which are dual-fueled with oil and gas, eight are coal-fired, while the remaining unit operates on natural gas. Four of the generating units at the Warwick Generating Complex are jointly owned by the Company and the Aluminum Company of America Generating Company (Alcoa). The Company interconnects with six other utilities at seven interchange points which enables the Company to buy or sell power with these utilities.

The Power Control Center (Center), located apart from the Company’s other facilities, monitors the generation and transmission of power for the entire system to ensure the supply of a safe and reliable energy source in the most economical manner. The Center, which operates 24 hours per day, seven days a week, is staffed by the Chief system supervisor, Claude Hunt, five system supervisors, and one clerk. Hunt works the daytime shift and is present during five of the twenty-one weekly shifts. At other times the system supervisors work alone although they generally can get in touch with Hunt, James Van Meter, the Director of Power Production and Procurement, or Norman Wagner, the Vice-President of Operations, if problems arise.

The Role of the System Supervisors

System Supervisors monitor the entire system through electronic measuring devices which enable them to supervise the production and transmission of power, the receipt of purchased power, and the distribution of sold power. They prepare load forecasts daily to predict the amount of power necessary to maintain the system. Factors such as temperature forecasts, customers’ additional power requests, and the estimated capability of each generating unit are considered. Because these plans are only predictions, they are subject to frequent modification by system supervisors to adjust to actual capability and load requirements. Actual need may differ from projected need due to changes within the system such as the loss of equipment or interchanges, or due to unanticipated power demand.

If a power shortage develops, system supervisors can exercise a variety of options. They may direct control operators at any of the various generating plants to increase production, and can even start up the more expensive gas-operated turbine if necessary. 5 If no generation is available, the *881 supervisors have authority to instruct Alcoa to curtail added power use from the jointly owned plant. These lines remain down until system supervisors authorize Alcoa to bring them back up. Finally, supervisors may decide to purchase power from other utilities. They can commit the Company financially on an instantaneous basis. When purchasing emergency power, system supervisors rarely have time to contact their superiors. Likewise, if the system’s generation exceeds present demand for current, the supervisors must curtail generation or sell the excess power.

Naturally, Hunt and his superiors have input into major decisions resulting from the modification of a load forecast when they are available. The system supervisors, however, frequently operate the Center alone. Time pressures can prohibit them from clearing their decisions with their superiors. James Van Meter testified at a Board hearing regarding the authority possessed by system supervisors:

Q: ... Do they [system supervisors] have the right to modify or alter that plan [load forecast] during the course of the day depending upon what the realities of the loads are?
A: I would venture to say that there are very few days that go by that the plan isn’t altered, and that’s true not only of the day shift, but also of the night shift where the supervisors are alone. There are some modifications that must be made to every plant [sic] due to unforeseen circumstances that come up as a result of generating or buying electricity.
Q: And that can occur at any time during any of the shifts?
A: That can occur at any time.
Q: Do they supervise that judgment independently of any orders?
A: They have the right and responsibility to exercise that independently of anything to protect our system.

Beyond power generation and procurement, the system supervisors are also responsible for power transmission.

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Bluebook (online)
657 F.2d 878, 108 L.R.R.M. (BNA) 2057, 1981 U.S. App. LEXIS 18629, Counsel Stack Legal Research, https://law.counselstack.com/opinion/southern-indiana-gas-and-electric-co-v-national-labor-relations-board-ca7-1981.