Watson v. Moeller Rubber Products, Inc.

792 F. Supp. 1459, 140 L.R.R.M. (BNA) 2449, 1992 U.S. Dist. LEXIS 7675, 1992 WL 106735
CourtDistrict Court, N.D. Mississippi
DecidedApril 30, 1992
Docket4:92CV017-D-O
StatusPublished

This text of 792 F. Supp. 1459 (Watson v. Moeller Rubber Products, Inc.) is published on Counsel Stack Legal Research, covering District Court, N.D. Mississippi primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Watson v. Moeller Rubber Products, Inc., 792 F. Supp. 1459, 140 L.R.R.M. (BNA) 2449, 1992 U.S. Dist. LEXIS 7675, 1992 WL 106735 (N.D. Miss. 1992).

Opinion

MEMORANDUM OPINION

DAVIDSON, District Judge.

This matter is before the court upon petitioner’s request for injunctive relief under Section 10(j) of the National Labor Relations Act, 29 U.S.C. § 160(j), pending final disposition of the case before the National Labor Relations Board (Board). The peti *1461 tioner seeks an order directing the respondent to cease and desist from failing to recognize and bargain with the United Steelworkers of America, AFL-CIO, CLC (“the Union”), as the exclusive bargaining representative for respondent’s employees at its Greenville, Mississippi facility. The court held an evidentiary hearing on the motion on March 6, 1992, after which the parties submitted post-hearing briefs. The parties have stipulated that the court may take into consideration the evidentiary record which was developed at a hearing before an Administrative Law Judge on February 26, 1992. Having considered this record as well as the briefs, arguments and exhibits of the parties, the court has decided to grant the requested relief in part and deny it in part. The factual background and authority for the court's decision are set forth below.

STATEMENT OF FACTS

The instant dispute arose after a three-part entity known as the Moeller Manufacturing Company, Inc. (“MMCI”) separated and sold a portion of its assets. For all intents and purposes, MMCI is the original umbrella corporation from which all other entities relevant to this opinion directly or indirectly emanate. 1 Since July 8,1969, the exclusive collective bargaining representative for production and maintenance employees at this umbrella entity has been the United Steelworkers of America, AFL-CIO, CLC (“the Union”). The parent company for this original umbrella entity was the Moore Company.

Up until about September 1, 1990, the actual production process at MMCI was divided into three areas of production or three plants — automotive products, rubber products and marine products. 2 The plants produced automotive and marine products, which consisted of metal and rubber component parts that were assembled together. All of the rubber components were produced in-house through the rubber products plant, so that the rubber division did not actively market rubber products to outside customers. 3 The automotive plant and rubber products plants were located approximately a hundred yards from each other on Thornton Street, while the marine facility, “Moeller Marine,” was located a quarter of a mile away. 4 Uniform policies for the plants were dictated by MMCI, and its parent, the Moore Company. Up until July 1991, a total of 140 employees worked in these plants and had opportunities to be transferred or promoted from one division or plant to another within the Greenville operation of MMCI. The employees of all three plants were included as a single bargaining unit, with a single collective bargaining agreement which initially covered a period of time from October 1, 1988 through July . 14, 1991. MMCI and the Union amended the collective bargaining agreement on July 15, 1991 to extend its coverage through October 15, 1991.

On July 10, 1991, MMCI sold the facilities of the automotive division and the rubber products division to Washington County and sold almost all of the equipment assets and production assets of these two plants to an organization called the Breckenridge Group. 5 Washington County then leased back the facilities to the new owner. This new entity consisting of the automotive and rubber product production became known as “Moeller Products, Company, *1462 Inc.,” (Moeller Products/Automotive). 6 The sale of the automotive and rubber product facilities and assets left the original umbrella entity, MMCI, with only the marine facility, which was not sold and which changed its name to “Moeller Marine Products” (Moeller Marine). 7 For a time, Moeller Marine produced its own rubber parts, but soon announced that it would no longer produce such parts and instead obtain them from outside sources. The company that began to supply needed rubber parts to Moeller Marine, as well as to other customers, “Moeller Rubber Products, Inc.,” (Moeller Rubber), is the respondent in this petition. Its refusal to recognize and bargain with the union is the focus of this dispute.

Respondent asserts that Moeller Rubber was formed by “a group in Greenville separate and unrelated to Moeller Manufacturing, Moeller Marine, the Moore Company or Moeller Products/Automotive.” 8 A bill of sale between Moeller Products/Automotive and Moeller Rubber shows that Moeller Rubber acquired certain rubber assets from Moeller Products/Automotive presumably to fill a void created by the decision by Moeller Marine to terminate production of rubber component parts and to terminate employees that had been associated with those jobs. But a letter dated September- 12, 1991 from Ron Brock, the president and general manager of the respondent company, to the staff representative of the United Steelworkers more directly links the Moeller Rubber acquisition to the old MMCI rubber plant. Written to inform the Union that Moeller Rubber would not assume the bargaining agreement, the letter states:

On September 12, 1991, Moeller Rubber Products, Inc., will acquire the Moel-ler Manufacturing Company, Inc., Rubber Division Plant in Greenville, Mississippi pursuant to its purchase of certain assets of Moeller Manufacturing Company, Inc., and Moeller Products Company, Inc. This letter is to advise you that Moeller Rubber Products has not and will not assume the existing collective bargaining agreement in effect between the United Steelworkers of America and Moeller Manufacturing Company, Inc., for this plant and does not intend to be bound by that agreement.
Moeller Rubber Products will set initial terms and conditions of employment to be offered to its employees at the plant. Existing employees will be afforded the opportunity to apply for employment with Moeller Rubber Products and to determine for themselves whether or not they wish to accept employment under such new terms and conditions ... 9

Consequently, a major issue before the Board is whether Moeller Rubber did step in as an independent entity or simply acquired the former rubber division plant of MMCI without interruption or substantial change.

A list of forty-two employees who were offered a position at Moeller Rubber shows that all but seven were formerly employed by MMCI; 10 many supervisors, including Brock, were previously supervisors with the former MMCI plants; 11

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Bluebook (online)
792 F. Supp. 1459, 140 L.R.R.M. (BNA) 2449, 1992 U.S. Dist. LEXIS 7675, 1992 WL 106735, Counsel Stack Legal Research, https://law.counselstack.com/opinion/watson-v-moeller-rubber-products-inc-msnd-1992.