U.S. Contractors, Inc. v. National Labor Relations Board

697 F.2d 692
CourtCourt of Appeals for the Fifth Circuit
DecidedFebruary 7, 1983
DocketNos. 81-4394, 81-4414
StatusPublished
Cited by1 cases

This text of 697 F.2d 692 (U.S. Contractors, Inc. v. National Labor Relations Board) is published on Counsel Stack Legal Research, covering Court of Appeals for the Fifth Circuit primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
U.S. Contractors, Inc. v. National Labor Relations Board, 697 F.2d 692 (5th Cir. 1983).

Opinion

INGRAHAM, Circuit Judge:

On September 3, 1981, the National Labor Relations Board (Board) issued an order1 finding U.S. Contractors and Dow Chemical, U.S.A., Texas Division (Dow) in violation of section 8(a)(1) of the National Labor Relations Act (Act), 29 U.S.C. § 158(a)(1), by threatening U.S. Contractors’ employees with the loss of their jobs if they unionized. U.S. Contractors petitioned this court for review of the order alleging that the Board was barred by a January 23 settlement agreement from basing a labor violation on presettlement campaign conduct and that the findings were not supported by substantial evidence. The Board, however, cross-applied for enforcement of the order against U.S. Contractors.2 Further, International Union of Operating Engineers, Local 564, AFL-CIO (Union) petitioned for review of the same decision and order and attacked the Board’s findings that U.S. Contractors did not violate sections 8(a)(1), (3) and (5) by discontinuing its custodial operations and that Dow did not violate sections 8(a)(1) and (3) when U.S. Contractors cancelled its custodial contract with Dow. Although a review of the record reveals substantial evidence supporting the Board’s findings, we hold that the settlement agreement precluded the Board from litigating U.S. Contractors’ presettlement conduct. Thus, the Union’s petition for review is denied, the U.S. Contractors’ petition for review is granted, and the Board’s cross-application for enforcement against U.S. Contractors is denied.

U.S. Contractors is a Texas corporation engaged primarily as a mechanical and maintenance contractor in the petrochemical industry and employs approximately 1400 people. Dow operates its immense Plant B petrochemical facility at Freeport, Texas. At the request of Dow, for whom U.S. Contractors was already providing construction work, U.S. Contractors expanded into the custodial services business in 1972. The U.S. Contractors custodial work force comprised 60 employees, whose work was limited to a yearly purchase-order contract [694]*694for Dow’s Plant B.3 The last of these contracts was executed on December 29, 1978, one day after the U.S. Contractors custodial employees voted for union representation.

The events of this controversy can be categorized in three periods: early organizational, campaign and election, and post-settlement. Early organizational activities began in August 1978, when two U.S. Contractors custodial employees, Anderson and Carlson, approached the Union Business Agent to discuss organizing U.S. Contractors custodial employees. A representation petition was filed on September 29 and resulted in direction of an election that was held on December 28. After the early organizational activities calmed in September, union related conduct flared again during the campaign and election in November and December. Together these two periods comprise presettlement conduct. Finally, the discontinuation of the custodial business in February and March of 1979 is encompassed within the post-settlement period.

The Administrative Law Judge and the Board found that during the early organizational period U.S. Contractors assigned various employees associated with the union drive to less desirable or irregular work hours and more arduous job duties and even discharged some in September 1978. This conduct precipitated the filing of a charge and amended charge by the Union on September 22 and November 13, respectively, and a complaint by the Board on January 2, 1979.

Since the events surrounding the campaign, the election, and postsettlement termination of the custodial contract are reported in detail in the Board’s decision, we note only the highlights. Two days before the election, U.S. Contractors supervisors Roddy and Beasley made comments that the Board determined were coercive. Similarly, the day before the election U.S. Contractors President Monical made a speech to the employees that both the Administrative Law Judge and the Board determined was coercive. The Board determined that these utterances were individually and collectively coercive because they threatened employees with job losses as a consequence of selecting the Union as their bargaining representative. In spite of these statements, the custodial employees voted thirty five to four for Union representation on December 28, 1978. On January 19, 1979, U.S. Contractors and the Union settled the section 8(a)(1) charges. The Regional Director of the Board approved the settlement agreement and withdrew the complaint on January 23, 1979.

Events leading to the discontinuation of the custodial services, which are broadly categorized as postsettlement conduct, began on January 18 when U.S. Contractors requested a 14.4% retroactive compensation increase because of higher operating costs. Although Dow granted the increase prospectively on January 30, it began looking for less expensive alternative services and replaced a six-person crew on February 1. Rather than reinstating the U.S. Contractors crew and making the rate increase retroactive, Dow further expanded its use of J & L Janitorial Services, the alternative custodial service. Without the retroactive pay increase and without a full work load, U.S. Contractors concluded that they could no longer afford to continue the custodial operation. When informed on February 14 of U.S. Contractors’ decision to dissolve the custodial operations, the Union responded that “there’s nothing further to discuss.” The U.S. Contractors-Dow custodial relationship was reduced throughout late February and early March until it ceased on March 17, 1979.

On March 6, 1979, the Union filed a charge alleging that Dow and U.S. Contractors violated sections 8(a)(1), (3), and (5) of the Act by supervisor’s coercive statements and the termination of the custodial services. The Board issued a complaint on July 2 that was tried before the Administrative Law Judge on November 27-30. All parties filed exceptions and the Board dismissed in part, reversed in part, and upheld [695]*695in part the decision and order of the Administrative Law Judge. The Union and U.S. Contractors petitioned for review of the Board’s decision and order, while the Board cross-applied for enforcement.

The Union and U.S. Contractors contend that portions of the Board’s decision are not supported by substantial evidence. This circuit has repeatedly recognized that deference will be given to the Board’s findings, if they are reasonable and supported by substantial evidence from the record considered as a whole. E.g., TRW, Inc. v. NLRB, 654 F.2d 307, 310 (5th Cir.1981). While our examination of the evidence and findings will be more critical where the Board has reversed the decision of the Administrative Law Judge than if the two were in agreement, Berry Schools v. NLRB, 653 F.2d 966 (5th Cir.1981), the standard for review remains the same. NLRB v. Beckham, Inc., 564 F.2d 190 (5th Cir.1977). Although we might have reached different results had we decided the case de novo, the record provides ample evidence supporting the Board’s findings. Consequently, we do not disturb the Board’s findings.

This leaves for consideration the contention of U.S.

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697 F.2d 692, Counsel Stack Legal Research, https://law.counselstack.com/opinion/us-contractors-inc-v-national-labor-relations-board-ca5-1983.