The Exchange Bank v. National Labor Relations Board

732 F.2d 60, 115 L.R.R.M. (BNA) 3692, 1984 U.S. App. LEXIS 23488
CourtCourt of Appeals for the Sixth Circuit
DecidedApril 16, 1984
Docket82-1807, 82-1933
StatusPublished
Cited by7 cases

This text of 732 F.2d 60 (The Exchange Bank v. National Labor Relations Board) is published on Counsel Stack Legal Research, covering Court of Appeals for the Sixth Circuit primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
The Exchange Bank v. National Labor Relations Board, 732 F.2d 60, 115 L.R.R.M. (BNA) 3692, 1984 U.S. App. LEXIS 23488 (6th Cir. 1984).

Opinion

MERRITT, Circuit Judge.

The sole issue in this appeal, as phrased by petitioner, is whether its unfair labor practices had “such a severe impact ... as to preclude the possibility of a fair election,” i.e., whether the National Labor Relations Board erred in ordering petitioner to recognize and bargain with the International Association of Machinists and Aerospace Workers. Petitioner maintains that a bargaining order is not an appropriate remedy because the Board’s decision fails to provide adequate analysis of the continuing effects of the Exchange Bank’s admitted unfair labor practices and does not explain why some lesser remedy could not redress the wrong. Petitioner also argues that there are “changed circumstances” at the Bank. We find that the Board has properly articulated its reasons for imposing the remedy, and agree that on the facts, the Board did not err in imposing the bargaining order.

I.

There is no real dispute concerning the facts of this case or the unfair labor practices committed by petitioner. Petitioner, the Exchange Bank, is located in Mayfield, Kentucky. In early February, 1979, several of the Bank’s employees approached the Bank manager and expressed dissatisfaction with their wages and working conditions. The Bank refused to meet their requests for improved wages and working conditions, and instead threatened them individually with discharge and made unlawful promises of benefits. The employees then began an organizational drive which led to the formation of the “Exchange Bank Collective Bargaining Group” on February 25, 1979. Ten of petitioner’s twelve unit employees signed authorization cards authorizing the Group to represent them for collective bargaining purposes.

Learning of these developments, the Bank chairman accosted the two employees designated as president and vice president *62 of the Group on the following day, demanded their keys and refused to allow them to enter the Bank. Shortly thereafter six of the remaining ten unit employees left the Bank and commenced a strike to protest the unlawful discharges. The Bank hired replacements for the discharged and striking employees and on March 7 informed the Group by letter that it would not recognize or bargain with it. The following week, the strikers retained an attorney who relayed to the Bank their unconditional request to return to work; he was informed they had been permanently replaced.

Frustrated by the Bank’s refusal to recognize them, eight members of the Group disbanded it on April 10 and signed authorization cards for the International Association of Machinists and Aerospace Workers (IAM). On April 25, the IAM notified the Bank of the designation and demanded recognition, but the Bank again refused to recognize or bargain with the union.

In June, an employee who had signed an IAM authorization card prepared and circulated a petition requesting a wage increase. In response, the Bank’s manager summoned her to his office, where he and the Bank chairman interrogated and threatened her about her union activities and stated that her conduct had caused them to postpone instituting a merit raise system for another six months.

The AU and the Board found on the basis of the facts that the Bank violated sections 8(a)(1), (3) and (5) of the National Labor Relations Act, 29 U.S.C. §§ 158(a)(1), (a)(3) and (a)(5) by (1) coercively interrogating and threatening employees concerning their union activities; (2) warning employees not to discuss with each other individual conversations with management regarding wages and working conditions; (3) promising wage increases and other benefits to discourage union activities; (4) creating the impression of surveillance of union activities; (5) attempting to force employees to quit because of protected concerted activities; (6) telling employees that their union activities would make it difficult for them to find employment elsewhere; (7) discharging the two Group leaders for their union activities; (8) refusing to bargain collectively with the employees’ bargaining representative; and (9) refusing to reinstate the unfair labor practice strikers when they offered unconditionally to return to work at the Bank. The Board fashioned a threefold remedy for these unfair labor practices. First, the Bank was required to cease and desist from these unlawful practices. Second, the Board ordered the Bank to offer immediate and full reinstatement and lost earnings to the two discharged union leaders as well as to the six unfair labor practice strikers who were unlawfully denied reinstatement. Finally, the Board ordered the Bank to recognize and bargain with the IAM, retroactive to April 1979, and to embody in a signed contract any agreement reached. The bargaining order is the only remedy challenged by the Bank.

II.

In NLRB v. Gissel Packing Co., 395 U.S. 575, 89 S.Ct. 1918, 23 L.Ed.2d 547 (1969), the Supreme Court established the Board’s authority to order an employer to bargain with a union where the employer has committed unfair labor practices which “have the tendency to undermine majority strength and impede the election processes.” Id. at 614, 89 S.Ct. at 1940. A bargaining order is an appropriate remedy if the union once possessed majority status and “the Board finds that the possibility of erasing the effects of past [unfair labor] practices ... by the use of traditional remedies, though present, is slight and that employee sentiment once expressed through cards would, on balance, be better protected by a bargaining order.” Id. The bargaining order is an extraordinary, but sometimes necessary remedy. Without it, employers could often profit from wrongfully refusing to bargain: “The employer could continue to delay or disrupt the election processes and put off indefinitely his obligation to bargain [and] any election held under these circumstances would not *63 be likely to demonstrate the employees’ true, undistorted desires.” Id. at 610-11, 89 S.Ct. at 1938.

Because the bargaining order is an extraordinary remedy, we have scrutinized very closely the Board’s decision to impose it without holding a new election. See, e.g., NLRB v. Rexair, Inc., 646 F.2d 249 (6th Cir.1981); Donn Products, Inc. v. NLRB, 613 F.2d 162 (6th Cir.), cert. denied, 447 U.S. 906, 100 S.Ct. 2988, 64 L.Ed.2d 855 (1980). Thus, bargaining orders have not been enforced when “[t]he Board made no findings or detailed analysis as to the residual impact ... or the likelihood of recurrence, of any of the unfair labor practices,” or when they are “based on eonclusory statements unsupported by sufficient facts.” Donn Products, 613 F.2d at 166. Nor have we enforced bargaining orders when the rationale offered by the Board was simply “a litany, reciting conclusions by rote without factual explication.” NLRB v.

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732 F.2d 60, 115 L.R.R.M. (BNA) 3692, 1984 U.S. App. LEXIS 23488, Counsel Stack Legal Research, https://law.counselstack.com/opinion/the-exchange-bank-v-national-labor-relations-board-ca6-1984.