Southwest Merchandising Corporation, D/B/A Handy Andy, Inc. v. National Labor Relations Board

53 F.3d 1334, 311 U.S. App. D.C. 370
CourtCourt of Appeals for the D.C. Circuit
DecidedJuly 26, 1995
Docket93-1859
StatusPublished
Cited by50 cases

This text of 53 F.3d 1334 (Southwest Merchandising Corporation, D/B/A Handy Andy, 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
Southwest Merchandising Corporation, D/B/A Handy Andy, Inc. v. National Labor Relations Board, 53 F.3d 1334, 311 U.S. App. D.C. 370 (D.C. Cir. 1995).

Opinions

Opinion for the Court filed by Circuit Judge WALD.

Opinion concurring in part and dissenting in part filed by Circuit Judge SILBERMAN.

WALD, Circuit Judge.

This ease returns to us on appeal for the second time. In the main, it poses a relatively straightforward issue of whether the National Labor Relation Board’s (“NLRB” or “Board”) determination that Southwest Merchandising Corporation (“Southwest”) discriminated against certain employees of its predecessor, Handy Andy, Inc., on the basis of their participation in a strike against Handy Andy, is supported by substantial evidence. We conclude that it is. But we further conclude that .the Board exceeded its authority in extending its remedy of reinstatement and backpay to three former strikers who never applied for jobs with Southwest. Accordingly, we grant only partial enforcement of its remedial order.

I. BACKGROUND

In 1981, Handy Andy, a grocery store chain, filed in bankruptcy. At this point, Handy Andy’s meat department employees were represented by Local 171 of the United Food and Commercial Workers International Union. In 1982, the Bankruptcy Court nullified Handy Andy’s collective bargaining agreement with Local 171, and 24 of the meat department workers went on an economic strike shortly thereafter. Handy Andy’s meat department employees subsequently voted against union representation in a decertification election, and, in November, the strikers unconditionally offered to return to work. Handy Andy rejected these offers on the grounds that their positions had been eliminated or filled.

On January 31, 1983, Handy Andy closed down its stores and terminated all its employees. The following day, February 1, 1983, Southwest bought the Handy Andy chain and rehired most of its managers. On February 2, Southwest opened its stores solely for the purpose of accepting job applications for service positions. By February 3, [1337]*1337after one day of taking applications, Southwest had completely restaffed its stores. Its meat department now employed 77 of the 92 people who had worked there immediately before the sale (“incumbent employees”). Although seven former strikers attempted to submit applications on February 2, only one application was accepted, and none of the strikers was hired.

A. The February 2 Hiring Process

On the evening of February 1, Southwest held a meeting attended by company President Dan Regáis, Personnel Director George Tamez, the officials in charge of the specialized departments — bakery, produce, and meat — and all the individual store managers. Southwest instructed the store managers to open their stores on February 2 in order to accept applications for all departments and to “accept all applications all day long.” Transcript (“Tr.”) 423. New employees would be selected that evening from among those who applied that day. In designing the job application process, Southwest expected that its managers — who were holdovers from the pre-sale company — would look for employees with whom they had prior good experiences, although it stoutly denies any preference for incumbent employees. While local media reported that the new owners of the Handy Andy stores were accepting job applications, they did not state when or where. Nor did Southwest make any effort to publicize that information.

Carl Sehroat was in charge of hiring the meat department employees. According to Sehroat, he was not authorized to hire any applicant who had not submitted an application on February 2, nor was he authorized to contact any employees to notify them of the deadline or request them to submit applications. Sehroat testified that he received between 100 and 150 applications for meat department jobs from individual store managers on the evening of February 2, and that he selected the 77 incumbent employees from among those applications. He further maintained that none of these employees was granted any special notice of the application process beyond that of the general public. The record contains no direct evidence supporting or refuting that contention.

In selecting new hires, Sehroat said he identified “the best people, in the applications, best productive people,” and preferred those “that I had already known and that had been previously employed by us.” Tr. 426-27. Sehroat never said outright, however, that he preferred incumbent employees over strikers. To the contrary, Sehroat maintained that he was familiar with the work of all the former strikers and, although some of them met his criteria, he did not consider them solely because they had not filed applications.1

In contrast to the meat department hiring process, individual store managers were responsible for filling the grocery department positions; they were authorized both to notify incumbent employees personally of the application process and to rehire incumbents on February 2 even if they did not formally apply. The store managers were allowed simply to inform employees to come into work on February 3 and fill out a job application at that time. Bob Simmons, one of the store managers, rehired forty of his fifty incumbent employees, even though he obtained no applications from ten of the forty on February 2. He notified the ten on the evening of February 2 that they were rehired and told them to fill out applications upon reporting to work the following day. Simmons further testified that none of the four meat department employees who had worked in his store under Handy Andy submitted applications to him on February 2,2 but that he found he had a staff of four the following day, two from his prior store staff, two from other stores. Simmons did not know how these employees had been hired.

B. The Experience of the Former Strikers

Seven former strikers attempted to apply for meat department jobs on February 2. [1338]*1338313 N.L.R.B. 616, 621 & n. 21, 1993 WL 513145 (1993). Six of these seven proved that they spoke on that day with an identified supervisor.3 Only one, Frankie Danmon, managed to obtain and submit an application. The other six were informed that applications were no longer being given out, or that no applications were being accepted for the meat department. Four testified that when requesting an application, they had identified themselves as former strikers. Although one former striker was informed as part of a long line of applicants that applications had run out, the other strikers were told of the run-out individually (at least four of them before noon). Id.; Tr. 110, 239, 285, 316. Southwest never provided any explanation for this occurrence.

C. Post-February 2 Applications and Hiring

Fourteen other former strikers attempted to apply for jobs at some point in February.4 They generally identified themselves as former strikers and were informed that there were no openings in the meat department or that the store was not giving out any more job applications. Only Joe Huerta was able to submit an application, and he never heard back from Southwest.

Over the next nineteen months,5 sixty meat department vacancies were filled yet no former strikers were hired for any of these positions. According to Schroat, “[i]n most cases, I was promoting apprentices and part-time people into full-time situations,” but that did not mean “that ...

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Bluebook (online)
53 F.3d 1334, 311 U.S. App. D.C. 370, Counsel Stack Legal Research, https://law.counselstack.com/opinion/southwest-merchandising-corporation-dba-handy-andy-inc-v-national-cadc-1995.