Werthan Packaging, Inc. v. National Labor Relations Board

64 F. App'x 476
CourtCourt of Appeals for the Sixth Circuit
DecidedMay 2, 2003
DocketNos. 01-1794, 01-2029
StatusPublished

This text of 64 F. App'x 476 (Werthan Packaging, Inc. 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
Werthan Packaging, Inc. v. National Labor Relations Board, 64 F. App'x 476 (6th Cir. 2003).

Opinions

SARGUS, District Judge.

Petitioner—Appellant, Werthan Packaging, Inc. [“Appellant” or “Werthan”], seeks review of a decision of the Respondent— Appellee, National Labor Relations Board [“NLRB” or “the Board”] entered on May 17, 2001, certifying the Paperworkers, Allied-Industrial, Chemical and Energy Workers International Union [“PACE” or “the Union”] as the representative of Appellant’s production and manufacturing employees working in Appellant’s Nash[479]*479ville, Tennessee plant. Appellant’s Petition for Review, pursuant to 29 U.S.C. §§ 160(e) and (f), was filed on June 16, 2001.1 Appellee, the Board, filed a cross-application for enforcement of the NLRB’s decision on August 1, 2001. PACE has intervened on behalf of the NLRB.

For the reasons that follow, the Board’s application for enforcement of its August 1, 2001 order is GRANTED and the petition of Werthan seeking to vacate the Board’s order is DENIED.

I.

Appellant, Werthan Packaging, Inc., located in Nashville, Tennessee, is engaged in the manufacture of paper packaging, in particular, bags for pet food. On September 24, 1998, PACE filed a petition with the NLRB seeking to represent Werthan’s production and maintenance employees at the Nashville plant. (J.A. at 494). Werthan objected to the proposed composition of the unit, asserting that it should also include human resources assistants, customer service representatives, sales representatives, a marketing manager, graphics coordinator and process planner. (J.A. at 497). The Board overruled the objections and the Regional Director directed an election, which took place on December 2, 1998. (J.A. at 504, 507). The results were 120 votes for union representation and 153 votes against. (Id.).

The Union filed objections to the election on the basis of company misconduct. A hearing was held and the NLRB determined that Werthan improperly solicited grievances from employees, promised employees increased benefits and wages for opposing unionization and improperly interrogated an employee. (J.A. at 514-24). The Hearing Officer recommended setting aside the election and holding a second election. Werthan filed objections to the decision, which were overruled by the Board. (J.A. at 527-30).

The second election took place on July 29, 1999. The results were 114 votes for unionization, 139 votes against and 51 challenged ballots which were of sufficient number to determine the outcome. (J.A. at 532). PACE filed objections to the election and a hearing was held to resolve the ballot challenges and objections. After seven days of testimony, a report and recommendation was issued. As to the challenged ballots, the Hearing Officer overruled 10 challenges, sustained 40 challenges, and deferred decision on one pending a determination on the individual’s claim that he was discharged from employment unlawfully. In addition, the Hearing Officer sustained two of the Union’s objections: first, that Werthan had solicited employees to report to management any evidence of purported union harassment; and second, that Werthan unlawfully attempted to pack the voter eligibility list with ineligible, anti-union employees. (J.A. at 571-72; 576^85). The Hearing Officer recommended that the election be set aside and a new election ordered. Werthan objected to the recommendation, but it was sustained on appeal. (J.A. at 592-97).

A third election was held on April 13, 2000. The results were 130 votes for unionization and 115 votes against. There were 14 challenged ballots, which were too few in number to be determinative. (J.A. at 599-600). Werthan filed objections alleg[480]*480ing that the union “unlawfully bribed and induced, and effectively bought the support and votes of Werthan employees.” (J.A. at 610). A one-day hearing was held. The Hearing Officer recommended overruling Werthan’s objection on the basis that the alleged bribery occurred well before the “critical period” of the election. (J.A. at 646-47). The Hearing Officer rejected Werthan’s claim that the union improperly reimbursed several employees for lost wages while testifying on behalf of the union at the hearing following the second election. (J.A. at 647-50). The Hearing Officer recommended that the NLRB certify PACE as the exclusive bargaining representative. (J.A. at 650).

Werthan objected to the Hearing Officer’s recommendation and filed a motion to reopen the record and submit additional evidence. On January 31, 2001, the Board overruled the objections and adopted the Hearing Officer’s findings and recommendations. (J.A. at 690-92). The motion to reopen was denied. (J.A. at 691). The Board certified PACE as the exclusive bargaining representative of the Appellant’s production and manufacturing employees.

On February 5, 2001, PACE requested that Appellant bargain with it as the representative of the certified unit. (J.A. at 717). Werthan refused the request. (Id.). PACE then filed a charge with the Board, whose general counsel subsequently filed a complaint based on the charge. Werthan conceded its refusal to bargain, but took issue with the Board’s decision to certify the union. (J.A. at 695-97; 699-701). On December 11, 2001, general counsel filed a motion for summary judgment to which Werthan failed to respond despite the issuance of a show cause order. (J.A. at 715-16).

On May 17, 2001, a decision and order was rendered, granting the motion for summary judgment on the basis that Werthan’s refusal to bargain with the Union violated Section 8(a)(5) and (1) of the National Labor Relations Act, 29 U.S.C. § 158(a)(5) and (1). The Order of the NLRB requires Werthan to bargain with PACE upon request. (J.A. at 717). Werthan now appeals from the Order of the NLRB.

II.

Werthan raises four issues on appeal: First, it contends that the NLRB abused its discretion in determining the appropriate bargaining unit. Second, Werthan asserts that the NLRB abused its discretion in setting aside the first and second elections. Third, it submits that the NLRB abused its discretion in failing to set aside the third election. Finally, Werthan argues that the NLRB abused its discretion in refusing to reopen the record and consider newly submitted evidence.

III.

Standard of Review

This Court reviews the NLRB’s legal conclusions de novo and its factual findings under a “substantial evidence” standard. Harborside Healthcare Inc. v. NLRB, 230 F.3d 206, 208 (6th Cir.2000) (citations omitted). The latter standard has been explained as follows:

The Board’s findings of fact are conclusive if supported by substantial evidence. Evidence is substantial when it is “adequate, in a reasonable mind, to uphold the [Board’s] decision.” We must • consider the record as a whole, including evidence that runs contrary to the Board’s findings. Deference to the Board’s factual findings is particularly appropriate where conflicting testimony requires the Board to make credibility determinations. The Board’s applica[481]

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