Tobey Fine Papers v. National Labor Relations Board

659 F.2d 841
CourtCourt of Appeals for the Eighth Circuit
DecidedApril 20, 1981
DocketNos. 79-1840, 79-1872 and 79-2000
StatusPublished
Cited by1 cases

This text of 659 F.2d 841 (Tobey Fine Papers 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
Tobey Fine Papers v. National Labor Relations Board, 659 F.2d 841 (8th Cir. 1981).

Opinion

LAY, Chief Judge.

Tobey Fine Papers of Kansas City, Graham Paper Company and Butler Paper Company separately petition this court for review of an order of the National Labor Relations Board finding that the petitioners violated section 8(a)(1) and (5) of the National Labor Relations Act. 29 U.S.C. § 158(a)(1), (5). The Board held that petitioners were guilty of unfair labor practices by refusing to honor collective bargaining agreements negotiated by the Paper Industry of Kansas City, a multiemployer bargaining association to which each company belonged.1 The Board found petitioners had made an untimely and ineffective with[843]*843drawal from the multiemployer collective bargaining negotiations because their withdrawals occurred after negotiations had begun and were not justified by “unusual circumstances.” Petitioners urge that each of their withdrawals were motivated by an impasse in negotiations which constituted, as a matter of law, “unusual circumstances” justifying unilateral withdrawal. Alternatively, petitioners urge that the bargaining unit was fragmented by the withdrawal, with Union consent, of two members of the association and the Union’s execution of separate agreements2 with the two companies. In each case, the Board cross-petitions for enforcement of its order.

We enforce the Board’s order in each case on a limited ground; we find substantial evidence on the record as a whole sustaining the Board’s finding that the actual reason for each company’s withdrawal was not based upon impasse or fragmentation, but on the fact that the employees of the individual companies expressed a doubt as to the Union’s representation of a majority of each company’s employees. It is well settled that this constitutes an impermissible reason for a company to withdraw from multiemployer bargaining. See NLRB v. Sheridan Creations, Inc., 357 F.2d 245, 248 (2d Cir. 1966).

Petitioners urge that their motivation for withdrawing from the bargaining unit was that contract negotiations had reached an impasse and the Union had executed separate agreements with Bermingham & Prosser and Nationwide Papers, the largest employer of the group. The Union and association met three times to negotiate a new contract before June 1, 1978, the date the existing contract expired. No agreement was reached and the Union struck all association employers on June 6. On June 8, Bermingham & Prosser withdrew from the association with Union consent and reached a separate agreement with the Union on June 26, 1978. On July 25, one week after the only negotiation session held since the strike began, Nationwide Papers withdrew, with Union consent, from the association and signed an agreement on July 31, 1978. After the withdrawal of Bermingham & Prosser and Nationwide Papers the number of employees in the bargaining unit declined from 130 to 75 members. On August 11, Tobey and Graham notified the Union and the association that they were withdrawing from the association. On August 14, Butler also informed the Union it had withdrawn from the association. The Union refused to consent to these withdrawals. Subsequently, the original wage package tendered to the Union by the association was resubmitted to the 75 employees remaining after the withdrawal of Bermingham & Prosser and Nationwide Papers. On August 25, the wage package was approved by a vote of 19 to 12 and a contract between the association and the Union was subsequently signed. Tobey, Graham and Butler have refused to recognize or bargain with the Union or to execute or abide by the agreement.

Petitioners urge that it is the overwhelming law of the circuits that an employer may withdraw from a multiemployer group once an impasse has been reached, citing NLRB v. Independent Association of Steel Fabricators, Inc., 582 F.2d 135 (2d Cir. 1978); NLRB v. Beck Engraving Co., 522 F.2d 475 (3d Cir. 1975); NLRB v. Associated Shower Door Co., 512 F.2d 230 (9th Cir. 1975); and NLRB v. Hi-Way Billboards, Inc., 500 F.2d 181 (5th Cir. 1974). Petitioners also rely upon the dicta in Fairmont Foods Co. v. NLRB, 471 F.2d 1170, 1172 (8th [844]*844Cir. 1972), that an impasse was an “unusual circumstance” justifying unilateral withdrawal.3 This rule has had recent reappraisal by the Board and at least three courts of appeals. For reasons discussed, we need not pass on the impasse issue. However, because of the importance of the issue, we think it helpful to point out the reasons we feel it best to resolve the issue at a later date..

The Ninth Circuit recently reaffirmed its earlier position taken in Associated Shower Door and commented that “Courts of Appeals have consistently recognized an impasse in negotiations as justification for a unilateral withdrawal from a multi-employer unit.” H&D, Inc. v. NLRB, 633 F.2d 139, 142 (9th Cir. 1980), quoting Authorized Air Conditioning Co. v. NLRB, 606 F.2d 899, 907 (9th Cir. 1979). The Ninth Circuit, however, did not discuss Charles D. Bonanno Linen Service, Inc. v. NLRB, 630 F.2d 25 (1st Cir. 1980), cert. granted, 450 U.S. 979, 101 S.Ct. 1512, 67 L.Ed.2d 813 (1981), which questioned the right of an employer to withdraw simply on the basis of an impasse reached in negotiations. The First Circuit in Bonanno thoroughly analyzed the policy background involved in the controversy and adopted the Board’s position that without evidence of fragmentation or of an intent by the Union to destroy the bargaining unit, an impasse in negotiations, standing alone, is not a sufficient basis for an employer’s unilateral withdrawal. Id. at 35. In Bonanno, unlike the present case, no separate agreements were eonsensually reached after impasse between the Union and withdrawing employers.

As recently as January 30,1981, the Fifth Circuit has reevaluated its position taken earlier in Hi-Way Billboards. NLRB v. Marine Machine Works, Inc., 635 F.2d 522 (5th Cir. 1981). In Hi-Way Billboards, the Fifth Circuit declined to adopt the Board’s reasoning that impasse alone could not constitute an “unusual circumstance” justifying unilateral withdrawal.

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659 F.2d 841, Counsel Stack Legal Research, https://law.counselstack.com/opinion/tobey-fine-papers-v-national-labor-relations-board-ca8-1981.