W & W Steel Company v. National Labor Relations Board

599 F.2d 934, 101 L.R.R.M. (BNA) 2445, 1979 U.S. App. LEXIS 14339
CourtCourt of Appeals for the Tenth Circuit
DecidedMay 31, 1979
Docket77-1915
StatusPublished
Cited by7 cases

This text of 599 F.2d 934 (W & W Steel Company v. National Labor Relations Board) is published on Counsel Stack Legal Research, covering Court of Appeals for the Tenth Circuit primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
W & W Steel Company v. National Labor Relations Board, 599 F.2d 934, 101 L.R.R.M. (BNA) 2445, 1979 U.S. App. LEXIS 14339 (10th Cir. 1979).

Opinions

BARRETT, Circuit Judge.

W&W Steel Company (W&W) petitions to set aside an order of the National Labor Relations Board (Board) issued September 19, 1977. Board ruled, inter alia, that W&W was a successor employer, W&W did not have a reasonable basis for a good faith doubt to the United Steel Workers of America’s (Union) majority status, and that by refusing to bargain with Union, W&W violated Section 8(a)(5) and (1) of the National Labor Relations Act (Act), 29 U.S.C.A. § 151, et seq. Board has cross-applied for enforcement of its order.

[936]*936Prior to April 1, 1976, Mosher Steel Company (Mosher) owned and operated a steel plant at Lubbock, Texas. On August 30, 1973, Board held an election for some 980 Mosher employees located at seven different plants, including those at Lubbock. Ballots from all plants were commingled, and then counted. Only thirty (30) of the approximately fifty (50) employees at the Lubbock plant voted. It is not known how they voted. The total votes cast were 511 for Union and 378 against. Thereafter, on January 18, 1974, Board certified Union as the exclusive collective bargaining representative for a company-wide unit of production and maintenance employees employed in Mosher’s seven plants.

Union struck Mosher July 22,1974 and 27 of the 51 unit employees at Lubbock went out. The strike concluded on May 12, 1975. Thereafter, all but 11 Lubbock strikers returned to work.

On December 16, 1975, W&W entered into contract to purchase the Lubbock plant with an effective take-over date of April 1, 1976. Under the terms of the contract, W&W agreed to purchase Mosher's assets. During the course of the contract negotiations, Mosher indicated that Lubbock was not a union plant. W&W did “hear” about a union being involved at the plant in January, 1976, although Union did not contact W&W until April 8, 1976, one week after W&W assumed operations of the plant. In assuming operations of the Lubbock plant, W&W utilized substantially all of Mosher’s managerial personnel and thirty-seven (37) bargaining unit employees. It is uncontested that W&W operated the plant for the fabrication of steel and steel products in a manner relatively similar to Mosher’s operation.

By letter of April 8, 1976, Union demanded that W&W bargain with it as the exclusive bargaining representative for all W&W production and maintenance employees. Union claimed to be the representative of Mosher employees in an appropriate unit which included employees of the Mosher plant at Lubbock; however, it did not disclose that its certification related to the multi-plant company-wide unit of Mosher employees. Thereafter, W&W requested a copy of Union’s certification and Union forwarded a copy of the seven-plant unit certification.

Following receipt of the seven-plant unit certification, and with knowledge that an election had never been held as a unit for the Lubbock plant, W&W petitioned Board on May 4, 1976, for an election for the Lubbock employees to determine if they desired to be represented by Union. Union responded May 10, 1976 that it was not agreeable to an election and related that it was filing unfair labor practice charges against W&W. Without knowledge to W&W, Union had in fact filed unfair labor practice charges against W&W on April 29, 1976. Notice of these charges, however, was not received by W&W until May 11, 1976, a full week after W&W had petitioned for an election. On May 26, 1976, employees at the plant, acting through their own counsel, petitioned Board for an election.

Board declined to act on the petitions for an election until September 21, 1976. At that time it simultaneously rejected the petitions and issued a complaint against W&W alleging that from and after May 4, 1976, W&W had unlawfully refused to bargain with Union.

The complaint against W&W was heard before an administrative law judge (ALJ) on November 10, 1976. During the course of the hearing extensive oral and written evidence was presented by both parties.

On April 11, 1977, the ALJ ruled in favor of W&W and dismissed the complaint in its entirety. The ALJ held that W&W was not a successor for bargaining purposes based on the dictates of National Labor Relations Board v. Burns, 406 U.S. 272, 92 S.Ct. 1571, 32 L.Ed.2d 61 (1972):

The critical question is whether the Respondent is a successor for bargaining purposes within the meaning of NLRB v. Burns International Security Services, 406 U.S. 272 [92 S.Ct. 1571, 32 L.Ed.2d 61] (1972).

[937]*937In my opinion, the evidence supports the General Counsel’s theory of successor-ship obligation to bargain in all respects except one. Thus, the facts reveal that a majority of Respondent’s employees hired on April 1,1976, were employees of Mosh-er Steel prior to April 1, 1976. Such changes as to work station, commercial or industrial type work, shuffling of supervision, or newer type machinery, do not in this case reveal a material change in the enterprise or structure. Essentially the same employees are doing the same type work at the same location. Unlike the Burns ’ requirement that there be no significant reason to question the Union’s majority representative status, the facts in this case reveal that there is a question of the Union’s representative status. Thus, of the 3711 employee complement

hired on April 1, 1976, only 8 of such employees have revealed themselves to have been union adherents or supporters, the other 29 employees included 13 employees who had worked but had not participated in strike activity at Mosher Steel in 1974, and included 16 employees hired after the commencement of the 1974 strike or after the strike and who are not shown to have participated in Union activity. The 12 employees who were hired on April 20, 1976, and May 3, 1976, were new employees who had not worked for Mosher Steel.

Although there is a weak presumption that in 1974, as a result of the certification, a majority of the employees in the Lubbock portion of the overall 7 plant unit supported the Union, the overall facts herein destroy such presumption. The facts herein reveal that on April 1, 1976, there were 11 unreinstated Mosher Steel unfair labor practice strikers. The stipulation as to these persons, however, was broad and to the effect that their failure of return was either voluntary or unvoluntary.

[R., Vol. III, pp. 380-381.]

Union did not appeal the decision of the ALJ. Board counsel, however, appealed on behalf of Board’s Houston office. On September 19, 1977, Board entered its order herein reversing the ALJ.

In ordering that W&W cease and desist from refusing to bargain with Union, Board held, inter alia:

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599 F.2d 934, 101 L.R.R.M. (BNA) 2445, 1979 U.S. App. LEXIS 14339, Counsel Stack Legal Research, https://law.counselstack.com/opinion/w-w-steel-company-v-national-labor-relations-board-ca10-1979.