Southern Maryland Hospital Center v. National Labor Relations Board, Office and Professional Employees International Union, Local 2, Intervenor For

801 F.2d 666, 123 L.R.R.M. (BNA) 2640, 1986 U.S. App. LEXIS 30853
CourtCourt of Appeals for the Fourth Circuit
DecidedSeptember 18, 1986
Docket85-2042
StatusPublished
Cited by26 cases

This text of 801 F.2d 666 (Southern Maryland Hospital Center v. National Labor Relations Board, Office and Professional Employees International Union, Local 2, Intervenor For) is published on Counsel Stack Legal Research, covering Court of Appeals for the Fourth Circuit primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Southern Maryland Hospital Center v. National Labor Relations Board, Office and Professional Employees International Union, Local 2, Intervenor For, 801 F.2d 666, 123 L.R.R.M. (BNA) 2640, 1986 U.S. App. LEXIS 30853 (4th Cir. 1986).

Opinion

CHAPMAN, Circuit Judge:

This case comes before us upon the petition of Southern Maryland Hospital Center to review and set aside an order of the National Labor Relations Board (NLRB or Board). The Board has filed a cross-application for enforcement of its order. The Office and Professional Employees International Union, Local No. 2 (OPEIU or the union), the charging party before the Board, has intervened in support of enforcement.

The petitioner is a full-service general hospital located in Clinton, Maryland. The hospital opened in 1977 under the direct control of its Chief Executive Officer and principal stockholder, Dr. Francis Chiara-monte. It employed approximately 1300 persons during the time period relevant to this suit. In the spring of 1981, five labor organizations, including intervenor OPEIU, began what would become a thirteen-month organizational effort at the hospital. The effort culminated on June 11, 1982, with a representation election in which no labor organization won a majority. This case arises from union charges filed January 25, 1982, claiming that the hospital committed a long list of unfair labor practices during the organizational campaign in violation of § 8(a)(1) and (3) of the National Labor Relations Act, as amended, 29 U.S.C. § 158(a)(1), (3) (1982).

The administrative law judge found numerous violations of § 8(a)(1) and two violations of § 8(a)(1) and (3). The Board affirmed, in substance, all but one of the AU’s findings and conclusions and issued a remedial order. 1 Southern Maryland *668 Hospital Center and Office and Professional Employees International Union, Local No. 2, AFL-CIO, 276 N.L.R.B. 153 (1985). In reviewing these violations pursuant to 29 U.S.C. § 160(e), (f), we are mindful that we must sustain them and grant enforcement of the order if the findings are supported by substantial evidence on the record as a whole. Universal Camera Corp. v. NLRB, 340 U.S. 474, 488, 71 S.Ct. 456, 465, 95 L.Ed. 456 (1951); NLRB v. Kiawah Island Co., 650 F.2d 485, 489 (4th Cir.1981). We find that there is substantial evidence in the record as to most of the § 8(a)(1) violations and grant enforcement on that portion of the order. We deny enforcement as to the two claimed § 8(a)(1) and (3) violations and three other claimed § 8(a)(1) violations.

I

THE BONUS ISSUE

The most significant issue arises from the Board’s finding that the hospital violated § 8(a)(1) and (3) of the Act by “withholding” a year-end bonus in 1981. The Board found that even though the hospital had given just one such bonus in the past, the evidence indicated that the hospital intended to give a bonus in 1981 but chose not to out of anti-union animus. The Board adopted the ALJ’s recommended remedy, requiring the hospital to pay its 1981 employees a bonus similar in amount to the $215,000 bonus of 1980, along with interest.

The hospital contends that the 1980 bonus was a one-time gift which it had no intention of repeating in 1981. In particular, Dr. Chiaramonte testified that the 1980 bonus was a spur-of-the-moment gift which he authorized because the cash was on hand and because he wanted to repay the hospital employees for their support in a personal crisis — his sixteen year-old daughter had been fatally injured in an automobile accident and had received care at the hospital. The hospital further contends that its yearly contributions to an employee pension plan illustrate that the hospital preferred this system of employee recognition over a bonus system. The hospital had contributed $195,000 to the plan in 1980 and $175,000 in 1981. Finally, the hospital contends that even if it had intended to give a 1981 bonus, cash flow problems at the time prevented it from paying out funds to the employees.

The Board found, contrary to the hospital’s contention, that the 1980 bonus was not a one-time “gift”, that the hospital intended to give a bonus in 1981, that the bonus was withheld out of anti-union animus, and that the cash flow problems put forth as a separate business justification for the hospital’s inability to grant a bonus were pretextual. The Board concluded that the withholding of the bonus was an attempt to coerce and restrain employees into not supporting the union and therefore violative of § 8(a)(1) and (3). See NLRB v. Tamper, Inc., 522 F.2d 781, 785 (4th Cir.1975).

A.

There is general agreement that when an employer by promises or by a continuous course of conduct has made a particular benefit part of the established wage or compensation system, then the withholding of that benefit during an organizational campaign raises the inference of improper employer conduct. NLRB v. Dothan Eagle, Inc., 434 F.2d 93, 98 (5th Cir.1970); Gossen Company v. NLRB, 719 F.2d 1354, 1356-57 (7th Cir.1983); Plasticrafts, Inc. v. *669 NLRB, 586 F.2d 185, 188-89 (10th Cir.1978); Free-Flow Packaging Corp. v. NLRB, 566 F.2d 1124, 1129 (9th Cir.1978). An employer can avoid the finding of a violation in such a case only if he can separately justify his action with a legitimate business purpose. NLRB v. Otis Hospital, 545 F.2d 252, 256 (1st Cir.1976).

On the other hand, when there is no “established practice” of granting benefits, the General Counsel must show that the employers’ withholding of particular benefits was motivated by anti-union sentiment to prove a violation of the Act. Plasti-crafts, 586 F.2d at 188-89. This is so because “in such an ambiguous situation the employee is unlikely to draw a predictable conclusion [that the employer seeks to influence the election] from the employer’s course of conduct.” Id; see also Gossen, 719 F.2d at 1356-58; Free-Flow Packaging, 566 F.2d at 1129-30.

B.

The initial determination to be made is whether an employer by promises or by a continuous course of conduct has made a particular benefit part of its “established practice.” The focus in such a situation should be upon the employer, who is confronted with the dilemma of deciding whether his past promises or grants of benefits have created a clear status quo that he must maintain during the pre-election period. See Free-Flow Packaging, 566 F.2d at 1129.

Free access — add to your briefcase to read the full text and ask questions with AI

Related

Finley Hospital v. National Labor Relations Board
827 F.3d 720 (Eighth Circuit, 2016)
The Finley Hospital v. NLRB
Eighth Circuit, 2016
SNE Enterprises, Inc. v. National Labor Relations Board
257 F. App'x 642 (Fourth Circuit, 2007)
NLRB v. Pepsi Cola Bottling
Fourth Circuit, 2001
NLRB v. Pepsi Cola
Fourth Circuit, 1996
NLRB v. AMFM of Summers Cnty
Fourth Circuit, 1996
National Labor Relations Board v. Motorola, Inc.
991 F.2d 278 (Fifth Circuit, 1993)
N.L.R.B. v. Motorola, Inc.
Fifth Circuit, 1993

Cite This Page — Counsel Stack

Bluebook (online)
801 F.2d 666, 123 L.R.R.M. (BNA) 2640, 1986 U.S. App. LEXIS 30853, Counsel Stack Legal Research, https://law.counselstack.com/opinion/southern-maryland-hospital-center-v-national-labor-relations-board-office-ca4-1986.