National Labor Relations Board v. Grace Co.
| Citation | 184 F.2d 126 |
| Decision Date | 13 September 1950 |
| Docket Number | No. 14107.,14107. |
| Parties | NATIONAL LABOR RELATIONS BOARD v. GRACE CO. |
| Court | United States Courts of Appeals. United States Court of Appeals (8th Circuit) |
Mozart G. Ratner, Acting Assistant General Counsel, National Labor Relations Board, Washington, D. C. (David P. Findling, Associate General Counsel, A. Norman Somers, Assistant General Counsel, and Frederick U. Reel and Irving M. Herman, attorneys, all of Washington, D. C., on the brief), for petitioner.
Burr S. Stottle, Kansas City, Mo. (Robert J. Ingraham, Kansas City, Mo., on the brief), for respondent.
Clif. Langsdale, Kansas City, Mo. (John J. Manning, Kansas City, Mo., on the brief), for intervener, International Ladies' Garment Workers' Union.
Before SANBORN, JOHNSEN and RIDDICK, Circuit Judges.
The question is whether this court should grant the petition of the National Labor Relations Board for a decree enforcing its order requiring respondent to bargain collectively with the International Ladies' Garment Workers' Union as exclusive representative of production employees of the respondent at its Clinton, Missouri, plant.
The Grace Company, a Missouri corporation, is engaged in the manufacture of children's wearing apparel. At all times during the proceedings before the National Labor Relations Board the company operated two plants, one at Belton and the other at Clinton, Missouri. There were 58 employees at the Belton plant and 53 at the Clinton plant. Matters concerning wages, hours, and working conditions for both plants were determined at Belton where the company maintained its management office. There was little difference in the character of work or in the working conditions at the two plants. There was little or no interchange of employees between the plants, but from the standpoint of management the two plants were operated as one.
On October 7, 1946, the employees of the Grace Company organized the Independent Union of The Grace Company of Clinton and Belton, Missouri, an unaffiliated labor organization, which began collective bargaining negotiations with respondent representing a majority of the employees of both plants. These negotiations continued until November 8, 1946, when respondent and Independent reached an understanding on terms and conditions of employment and reduced their understanding to writing. Because of interlineations and corrections in the written instrument, the parties thought it necessary to prepare a final draft of the agreement in corrected form before signing. This was done, and the agreement was signed by respondent and Independent on November 14, 1946.
On November 13, 1946, the International filed a petition with the Board for certification as bargaining representative of the employees of respondent at its Clinton plant, claiming to represent a majority of the employees at that plant, and alleging that Independent was a company-dominated union. On December 30, 1946, Independent filed a similar petition for certification claiming to represent a majority of all employees. The petitions for certification were consolidated for hearing, after which, on May 27, 1947, the Board ordered an election at the Clinton plant.
In the consolidated hearing the Board found, over the objections of respondent and Independent, that either a company-wide unit or a plant unit would on the facts before it constitute a proper bargaining unit for the employees, the Board ruling that: "Under these circumstances * * * the determination of the unit should depend, in part, upon the desires of the employees themselves."
The Board did not find that Independent was a company-dominated union, nor did it make any finding concerning the propriety or the validity of the contract signed November 14, 1946, between Independent and respondent, nor that Independent at the time the contract was signed did not represent a majority of the employees at both plants.
At the election International received a majority of the votes of the employees at the Clinton plant. On July 8, 1947, the International was certified by the Board as their appropriate bargaining representative. Following the certification of International, respondent and International agreed upon July 18, 1947, for a meeting for collective bargaining purposes. The meeting was never held.
On July 15, 1947, Independent, in a proceeding in a Missouri State court for a declaratory judgment sustaining the validity of its bargaining agreement, obtained an order temporarily restraining respondent from "renouncing or disclaiming" its contract with Independent. The order commanded respondent to recognize its contract with Independent and to perform all its obligations thereunder pending a hearing on the merits. Respondent took the position that it was bound to obey the order of the State court until vacated. International asserted that the order was void, and that respondent was required by the Board's order of certification to ignore the State court.
On July 24, 1947, respondent filed a motion with the Board to vacate its certification of International because of respondent's contract of November 14, 1946, with Independent and because of the State court's restraining order. The motion was denied on August 11, 1947.
On July 30, 1947, International filed with the Board its charge that respondent was engaged in unfair labor practices by refusing to bargain collectively with International, and on March 15, 1948, the General Counsel of the Board, pursuant to the charges filed by International, instituted proceedings before the Board which resulted in the order of June 21, 1949, which the Board now seeks to enforce.
On December 18, 1947, respondent filed a motion in the State court to dissolve the temporary restraining order because of the Board's certification of International as bargaining representative of the Clinton plant employees. The motion was denied December 20, 1947. In the meantime International had refused a request of respondent to intervene in the State court proceeding for the purpose of dissolving the restraining order. The order was vacated before May 9, 1949, when the proceeding in the State court were dismissed for reasons not appearing in this record.
On February 23, 1950, respondent filed its application with this court for leave to adduce additional evidence before the Board to show that at all times since its execution the contract with Independent has continued in full force and effect, and that on June 21, 1949, the majority of the employees of the Clinton plant had notified respondent of their desire to be represented by Independent in place of International. The motion was resisted by the Board on the ground that the additional evidence sought to be adduced was immaterial on any question before the court. The motion was denied with leave to respondent to renew it at the hearing on the merits, which respondent did, after amending the motion by a request to adduce additional evidence to show that due to business reasons wholly apart from the issues in the enforcement proceeding operations at its Clinton plant had been discontinued and the plant permanently closed on May 5, 1950. The Board has made no response to the allegations of the amended motion.
On the Merits.
Respondent resists the petition for enforcement on the grounds that: (1) the Board's certification of International as bargaining representative of the employees at the Clinton plant was, on the facts in this case, arbitrary and unreasonable; (2) the contract between Independent and respondent in force at the time of the representation hearing was a bar to the certification of International; and (3) respondent had not in fact or law refused to bargain with International while restrained by an order of the State court. We are unable to agree with contentions numbered (1) and (2). For reasons stated later in this opinion, the third contention is no longer in the case.
(1) The question of a proper unit for collective bargaining, whether plant, industry-wide, or craft, is committed to the wide discretion of the Board. The Board's determination of the appropriate unit for collective bargaining purposes will not be disturbed by the courts unless clearly arbitrary and unreasonable. Bussman Mfg. Co. v. National Labor Relations Board, 8 Cir., 111 F.2d 783, 785; National Labor Relations Board v. May Department Stores, 8 Cir., 146 F.2d 66-70, affirmed 326 U.S. 376-380, 66 S.Ct. 203, 90 L.Ed. 145; Pittsburgh Plate Glass Co. v....
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