NLRB v. Minute Maid Corporation

• Decision Date: 09 November 1960
• Docket Number: No. 18092.,18092.
• Citation: 283 F.2d 705
• Parties: NATIONAL LABOR RELATIONS BOARD, Petitioner, v. MINUTE MAID CORPORATION, Respondent.
• Court: U.S. Court of Appeals — Fifth Circuit

283 F.2d 705 (1960)

NATIONAL LABOR RELATIONS BOARD, Petitioner, v. MINUTE MAID CORPORATION, Respondent.

No. 18092.

United States Court of Appeals Fifth Circuit.

November 9, 1960.

Paul J. Spielberg, Atty., Thomas J. McDermott, Assoc. Gen. Counsel, Marcel Mallet-Prevost, Asst. Gen. Counsel, Stuart Rothman, Gen. Counsel, Dominick L. Manoli, Assoc. Gen. Counsel, Duane B. Beeson, Attys., N. L. R. B., Washington, D. C., for petitioner.

Theo. Hamilton, Jacksonville, Fla., Hamilton & Bowden, Jacksonville, Fla., for respondent.

Before TUTTLE, CAMERON and JONES, Circuit Judges.

JONES, Circuit Judge.

In December of 1954, the Respondent, Minute Maid Corporation, acquired a plant at Auburndale, Florida, for the manufacture of frozen citrus concentrate which was shipped, in substantial quantities, in interstate commerce. Minute Maid also owned about 15,000 acres of producing citrus groves. At the time of the acquisition of the plant by Minute Maid there was a contract between the Respondent's predecessor and Citrus Workers Local Union 24218, an A F L affiliate. Minute Maid recognized this union and negotiated contracts with it. The Teamsters Union, disregarding the existing contract between Minute Maid and the Citrus Workers Union, carried its campaign of attempting to organize the workers in the citrus industry¹ into the Auburndale, Florida, plant of Minute Maid. The Teamsters Union convinced the National Labor Relations Board that it was entitled to recognition. Minute Maid Corporation, 117 N L R B 68. The Union, International Brotherhood of Teamsters, Chauffeurs, Warehousemen & Helpers of America, Cannery, Citrus Workers, Drivers, Warehousemen and Allied Employees, Local 444, was certified as the bargaining agent of an employee unit composed of all production and maintenance employees, including warehousemen, checkers, cafeteria employees, leadmen and peel oil operators.

Bargaining sessions were held on fourteen occasions at irregular intervals between April 9, 1957, and November 6, 1957. As to some issues, both Union and the Respondent made concessions that narrowed, if not entirely closing, the gap between them. On other questions each declared a position which was unacceptable to the other and neither showed any disposition to yield. The attorney and chief negotiator for the Respondent lived in Jacksonville, Florida. The Chairman of the Union's eight-man negotiating team had his residence in Texas. Others lived at places distant from Lakeland, Florida, which was the agreed site of the negotiations. In October the Union submitted its "final draft". This was rejected by the Respondent which tendered, in November, its "final proposal." On December 11 the Union sent the respondent a telegram saying that the Union membership had "soundly rejected" the Respondent's last proposal. Such was the stalemated status of the collective bargaining processes between Union and employer on the evening of December 11, 1957. The employer had disapproved the final contract draft of the Union, and the Union had rejected the employer's final proposal.

On the night of December 11, and again on the night of December 12, the citrus regions of Florida were subjected to freezes of the greatest severity that had been experienced since the beginning of frozen concentrate production. It was then feared by the processors of concentrates that the effects of the freeze upon their business would be disastrous. It was not then known whether the manufacturers of concentrates would be permitted to use frozen fruit, nor was it known how much of the fruit had been frozen. Minute Maid, as a grower as well as a processor, was in a position of greater peril than its competitors who were not grove operators. On December 13, Minute Maid telegraphed the Union saying that since the Union had rejected Minute Maid's proposal and because of the freeze creating new problems which made operational conditions unpredictable, the Respondent's proposal was withdrawn. On December 19 the parties met and at the meeting Minute Maid handed the representatives of the Union a written communication² requesting the Union to defer decisions regarding contract negotiations until the effect of the freezes could be evaluated and this it thought could be done by January 16, 1958.

The Union declined to allow the Respondent the time it needed, or thought it needed, to ascertain the effect of the freezes. On the night of January 8 there was another freeze, and promptly thereafter, on January 9, 1958, the Union submitted a "last and final proposal" and made the threat that unless the proposal was accepted it "would take such action as may be necessary to bring the issues to a conclusion." A further freeze occurred on January 9, and still others on February 4 and February 5. At the request of Minute Maid a meeting was held on February 6. A further meeting was held on February 13. At these meetings consideration was given to many of the various non-wage proposals which had been previously made by either the Union or the employer. At these meetings discussions were had with a minimum of acrimony, progress was made, agreements with respect to some matters were reached, and no ultimatums were delivered. On February 13, at the conclusion of what was described by the Petitioner's Examiner as "a busy day for both parties," it was agreed that there should be another meeting on February 26. There were succeeding freezes on February 14, February 18, and February 21.

The Florida Citrus Commission, an agency of the State of Florida, is created and empowered by statute³ to regulate the citrus industry. After the first freeze in December 1957 and at frequent intervals thereafter the Commission met and evolved a day-to-day program intended to permit the concentrate producers to market a product if and when, and to the extent that, this could be done without a lowering of acceptable standards of quality. At the outset there was an embargo. This was followed by restrictions on the use of frozen fruits. After a brief time, manufacturers were permitted to resume the making of citrus concentrate but were required to hold it in bulk pending a determination as to whether or not it could be canned and marketed. The freezes resulted in damage to the citrus crop and caused doubts as to the business prospects in the near future of those who were growing, processing and marketing the fruit and its products. Because the citrus concentrate industry was without prior experience in the use of frozen fruit, there was an uncertainty as to the extent by which the operations would be curtailed by reason of the freezes.

As this critical time wore on it was ascertained that, within a certain tolerance range, citrus fruits could be used in the making of concentrate and that the product was of a quality available for canning and marketing. Gradually the outlook for the season's business became less dark and by the latter part of February it seemed apparent that Minute Maid would have a satisfactory season at its Auburndale plant.

On January 14, 1958, the Union filed with the Board a charge against Minute Maid that on and after October 7, 1957, the Company had refused to bargain with the Union. On February 21, 1958, a year and a day after the Union had been certified as a bargaining agent, a petition was filed with the Board by 141 of the 208 employees in the bargaining unit, repudiating the Teamsters Union and requesting its decertification. Notices of a hearing on the decertification petition were given and, after several postponements, the Board's Regional Director, on June 9, without a hearing, advised that because a charge was pending against the employer the decertification petition had been dismissed. The dismissal was sustained by the Board. Meanwhile Minute Maid had advised the Union that it could not continue bargaining with the Union until the question of representation was settled. The meeting scheduled for February 26 was called off. The Union requested further meetings and the employer adhered to its stated position that it could not bargain with a union which did not represent a majority of the employees. On April 18, 1958, the Respondent notified the employees that bonus payments to them would be made. The bonuses were paid in May and June. The Board's General Counsel issued a complaint and notice of hearing on July 3, 1958, based upon the Union's charge of January 16, 1958, and an amendment to the charge of April 22, 1958. It will be noted that no complaint was filed until more than four months after the employees' decertification petition had been filed and more than three weeks after the employees' petition for decertification had been dismissed without any investigation or hearing.

As stated in the Board's brief,

"The Board found as a matter of fact that the Company\'s conduct following December 13, 1957, when it withdrew its November proposal and declined further to discuss economic matters, was not pursued in good faith, i.e. that the Company had adopted a fixed intention not to reach any agreement with the Union * * * but rather * * * to frustrate the whole bargaining process. It also found that, independently of the Company\'s bad faith, its withdrawal on and after December 19, 1957, from negotiations over economic matters, and its

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