White Sulphur Springs Company v. National Labor Relations Board

316 F.2d 410, 114 U.S. App. D.C. 409, 52 L.R.R.M. (BNA) 2608, 1963 U.S. App. LEXIS 5952
CourtCourt of Appeals for the D.C. Circuit
DecidedMarch 7, 1963
Docket16966_1
StatusPublished
Cited by4 cases

This text of 316 F.2d 410 (White Sulphur Springs Company v. National Labor Relations Board) is published on Counsel Stack Legal Research, covering Court of Appeals for the D.C. Circuit primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
White Sulphur Springs Company v. National Labor Relations Board, 316 F.2d 410, 114 U.S. App. D.C. 409, 52 L.R.R.M. (BNA) 2608, 1963 U.S. App. LEXIS 5952 (D.C. Cir. 1963).

Opinions

DANAHER, Circuit Judge.

This unique case involves the Board’s conclusions that our petitioner had engaged in unfair labor practices. Despite a long history of apparently harmonious labor relationships with the charging party, the petitioner was said to have discriminated against two employees named Compton and'Boone. One initially mishandled episode arising out of chance remarks on a Friday afternoon resulted: (1) in the, employer’s imposing an improper condition for the retention of employment by Compton and Boone; and (2) almost as rapidly, overnight, in the employer’s unconditional offer the next morning to reinstate the two men with full pay for the few hours’ lost time. The men did not accept the offer. The Board’s Decision and Order, 136 N.L.R.B. No. 30, observed that the Saturday offer was “made in good faith.”

The employer renewed the offer of reinstatement on the following Monday. Again, Compton and Boone did not accept [412]*412and return to work with the afternoon shift. Notwithstanding, the Board ordered reinstatement with back pay. The principal issue — although there are others which will be mentioned — is whether or not the law requires that an employer at his peril must keep open his bona fide offer of reinstatement until the union decides whether or not the offer is to be accepted.

Background

The petitioner, White Sulphur Springs Company, at all times mentioned herein, operated the Greenbrier Hotel in the small town of White Sulphur Springs, West Virginia, and there employed about 1,000 persons. Since about 1948, most employees were represented by six unions, one of which was United Association of Journeymen Plumbers and Pipe-fitters and Apprentices of North America, Local Union 651, AFL-CIO, the charging party. The Local’s business agent, Hunt, had headquarters at Charleston, West Virginia, about 125 miles from the Greenbrier Hotel. Local 651 had about 117 members scattered throughout various West Virginia counties, but only six such members were employed at the Greenbrier. The other 111 plumbers had no voice in contracts for the Greenbrier plumbers. Perhaps because of the distance factor, “it was always the practice of the Union” as the Trial Examiner found, for Hunt “to let the six [or] seven plumbers employed by [the Greenbrier] decide under what terms and conditions they were to be employed.”

The record, including Hunt’s own testimony, overwhelmingly “establishes that the Union acquiesced in the local unit’s [Greenbrier plumbers] negotiation of their own contract with [petitioner], and merely required it to notify Union headquarters [Hunt] of the results thereof by a letter of intent.1 ******It was after this information was received and presumably with full knowledge of how accord was achieved, that the formal written contracts were signed by Union officials.” 2 The Trial Examiner so found, and the record supports him.

“Until this [instant] proceeding was instituted,” said the Trial Examiner in his Intermediate Report, “not a single voice was uttered in protest thereof by any union official, nor was there any suggestion that Respondent’s meetings and negotiations with the men was in derogation of the Union’s status as collective bargaining representative.”

[413]*413He concluded that the Local had authorized its White Sulphur Springs unit [the Greenbrier plumbers] to continue that practice in 1960, and that the petitioner’s conduct in these last negotiations was not violative of the Act. The Trial Examiner knew there had been no labor dispute between the employer and the Greenbrier plumbers. They had not crossed the picket line after several hundred other workers went on strike June 23,1960. The Examiner knew that upon termination of the strike as of July 19th, the plumbers reported for work, including Compton at noon on July 20, and Boone at 8 A.M. on July 21. He knew that the plumbers then hoped to be accorded the. raise which had been granted to the others, such as the electrical workers.

The employer knew that since the 1959 contract with the plumbers had nearly a year to run, it was in no position to grant a unilateral increase. When the plumbers on July 21, 1960 sought the increase, the employer met with them and gave them their choice to be exercised by noon of July 25, either to continue under the 1959 contract, or to initiate steps to work out a new contract.

Against that background and in light of other details, the Trial Examiner appraised the evidentiary showing on the whole record made before him and summed up as follows:

“Though I am mindful of the well-established principle that where a collective bargaining representative of employees has been chosen by them, it is incumbent upon the employer to bargain with that representative and no other I am nevertheless convinced that, under the circumstances existing here, Respondent’s conduct was not violative of ■ the Act. (Emphasis in the original.)
“I find no evidence in this record that Respondent engaged in negotiations with the employees ‘to the exclusion of the employees’ collective bargaining representative,’ as claimed by the General Counsel. Indeed, the letter of intent, the very document which occasioned this entire proceeding and upon which the General Counsel relies, was prepared for the plumbers by Respondent and states ‘that a contract will be executed on their behalf between [the] Union’ and Respondent.”

The sequence of events in the critical period, July 21-25, 1960, will later be developed. Importantly for the present, on Friday, July 22, the employer’s chief engineer, Way, brought to the plumbers’ shop the document prepared the previous day and now known as the letter of intent.3 .

He had been informed that a majority of the men “were in favor of receiving the wage increases and other benefits.” He placed the letter on a table with a copy of the proposed new contract, with changes marked in red so that the men might readily note new items. He left the documents with the men that the business might be discussed. When he later returned with the plumbers’ foreman,. Walton, he found that four of the men had already signed the letter. Compton and Boone had not yet done so. Compton' uttered a critical comment. Way vented [414]*414what should have been taken as an irrelevant rejoinder. But as can happen, Compton ascribed to it greater importance. Thereafter an impasse developed from the erroneous emphasis accorded to the verbal exchange. As a result, Compton was presently to telephone Hunt in Charleston to report that the employer was then treating the contract as having been breached. The employer in fact had offered to enter into a new contract only if the men voted to do so. The alternative was open to them to continue under the 1959 contract — which they finally did. We can understand the employer’s desire to get the hotel reopened, and that the work of the plumbers was essential, but Way never should have put pressure on Compton and Boone. It is clear that Way told Compton and Boone that unless they signed the letter, they could not work.

That last circumstance created a violation of section 8(a) (1), and we so hold despite petitioner's claim to the contrary.

Free access — add to your briefcase to read the full text and ask questions with AI

Related

Cite This Page — Counsel Stack

Bluebook (online)
316 F.2d 410, 114 U.S. App. D.C. 409, 52 L.R.R.M. (BNA) 2608, 1963 U.S. App. LEXIS 5952, Counsel Stack Legal Research, https://law.counselstack.com/opinion/white-sulphur-springs-company-v-national-labor-relations-board-cadc-1963.