Rivera-Vega v. ConAgra, Inc.

• Decision Date: 10 February 1995
• Docket Number: Civ. No. 94-1798-DRD.
• Citation: 876 F. Supp. 1350
• Parties: Efrain RIVERA-VEGA, Acting Regional Director for Region 24 of the National Labor Relations Board, for and on behalf of the National Labor Relations Board, Petitioner, v. CONAGRA, INC. and/or ConAgra Grain Processing Companies, Inc. and Molinos de Puerto Rico, Inc., Respondents.
• Court: U.S. District Court — District of Puerto Rico

876 F. Supp. 1350

Efrain RIVERA-VEGA, Acting Regional Director for Region 24 of the National Labor Relations Board, for and on behalf of the National Labor Relations Board, Petitioner, v. CONAGRA, INC. and/or ConAgra Grain Processing Companies, Inc. and Molinos de Puerto Rico, Inc., Respondents.

Civ. No. 94-1798-DRD.

United States District Court, D. Puerto Rico.

February 10, 1995.

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Antonio F. Santos-Bayron, N.L.R.B. Region 24, Hato Rey, PR, for petitioner.

Roger J. Miller, McGrath, North, Mullin & Kratz, P.C., Omaha, NE, for respondent ConAgra, Inc.

Angel Munoz-Noya, Lespier & Munoz-Noya, San Juan, PR, for respondent Molinos de Puerto Rico, Inc.

OPINION AND ORDER

DOMINGUEZ, District Judge.

This proceeding is before the Court upon a petition for injunctive relief filed on June 10, 1994 by the Acting Regional Director of Region 24 of the National Labor Relations Board ("the Board"), pursuant to Section 10(j) of the National Labor Relations Act, as amended (61 Stat. 149; 29 U.S.C. Sec. 160(j) ("the Act"). The injunctive relief herein requested, if granted, is to be on effect until the final disposition of matters pending before the Board on a charge and amended charges filed by Congreso de Uniones Industriales de Puerto Rico ("the Union"). The Union alleges that ConAgra, Inc. and/or ConAgra Grain Processing Companies ("ConAgra") and Molinos de Puerto Rico, Inc. ("Molinos") and both collectively referred to as Respondents), have engaged in, and are engaging in, unfair labor practices within the meaning of Section 8(a)(1), (3) and (5) of the Act, which section prohibits an employer from interfering with, restraining or coercing employees in the exercise of their right to engage in union and/or concerted activities; from discriminating against employees because of their membership in a labor organization; and from failing or refusing to bargain collectively in good faith with the representative of its employees in an appropriate unit.¹

A hearing on the Regional Director's petition was held on June 24, 1994. The parties agreed to submit this case on the transcript and exhibits presented at the administrative hearing before an Administrative Law Judge (ALJ) of the Board and on supplemental affidavits submitted to the Court.

In essence, the Regional Director alleges that Respondent has incurred in a refusal to bargain by adhering to proposals that were "predictably unacceptable" to the Union; by refusing to provide properly requested financial and sales information; by declaring a fictitious impasse followed by effectuating unilateral changes to terms and conditions of employment, and finally by imposing a lockout on its employees in order to compel the acceptance of its bargaining position and by replacing employees with temporary employees.

Upon consideration of the pleadings, evidence, and memoranda² filed by the parties, the Court is ready to rule.

I. The 10(j) Applicable Standards

Under Section 10(j) of the Act, federal courts are empowered to grant injunctions pending the Board's resolution of unfair labor practice proceedings. This provision reflects the Congressional recognition that, because the Board's administrative proceedings often are protracted, absent interim relief, a respondent may accomplish unlawful objectives before being placed under legal restraint, thereby rendering a final Board order ineffective. See Fuchs v. Hood Industries, Inc., 590 F.2d 395, 396 (1st Cir.1979), citing S.Rep. No. 105, 80th Cong., 1st Sess., at pp. 8, 27 (1947), reprinted at I Legislative History of the Labor Management Relations Act of 1947, 414, 433 (Government Printing Office 1985). Thus, Section 10(j) was intended to prevent the potential frustration or nullification of the Board's remedial authority caused by the passage of time inherent in Board administrative litigation. See, e.g. Asseo v. Centro Médico Del Turabo, Inc., 900 F.2d 445, 454 (1st Cir.1990); Angle v. Sacks, 382 F.2d 655, 660 (10th Cir.1967).

In addressing a 10(j) petition, a district court must focus on two issues: (1) whether there is "reasonable cause to believe" that a respondent has violated the Act, and (2) whether temporary injunctive relief is "just and proper". See, e.g. Asseo v. Centro Médico Del Turabo, Inc., 900 F.2d at 450; Asseo v. Pan American Grain Co., 805 F.2d 23, 25 (1st Cir.1986). The district court is not authorized to decide whether an unfair labor practice actually occurred. Asseo v. Centro Médico Del Turabo, 900 F.2d at 450.

In determining whether there is reasonable cause to believe that the Act has been violated, the district court only needs to find that the Board's position is "fairly supported by the evidence." See NLRB v. Sullivan Brothers Printers, Inc., 38 F.3d 58 (1st Cir.1994); Asseo v. Centro Médico Del Turabo, Inc., 900 F.2d at 450; Maram v. Universidad Interamericana de Puerto Rico, Inc., 722 F.2d 953, 958-959 (1st Cir.1983); Asseo v. Pan American Grain Co., Inc., 805 F.2d 23, 25 (1st Cir.1986). The district court should not resolve contested factual issues and should defer to the Regional Director's version of the facts if it is "within the range of rationality". Maram v. Universidad Interamericana, 722 F.2d at 958. Accord: Fuchs v. Hood Industries, 590 F.2d at 397. However, district courts must not yield too facile deference to the Regional Director's injunctive prayers diluting the extraordinary nature of the relief and ushering concerns that "courts not be routinely deprived of the expertise which would be available to them in reviewing the Board's holdings and enforcement proceedings". McLeod v. General Electric 257 F.Supp. 690 (S.D.N.Y.), rev'd 366 F.2d 847, 850 (2d Cir.1966). As noted in Boire v. Pilot Freight Carriers, Inc., 515 F.2d 1185, 1193 (5th Cir.1975), "the judge does not abdicate his power merely upon a showing that the Regional Director's theories surpass frivolity. He maintains some power to do equity and mold each decree to the necessities of the case". Minnesota Mining & Manufacturing Co. v. Meter, 385 F.2d 265 (8th Cir.1967); Arlook v. S. Lichtenberg & Co., 952 F.2d 367 (11th Cir.1992). Therefore, the deference due to the Regional Director is not "unfettered". Asseo v. Centro Médico Del Turabo, Inc., supra.

Interim injunctive relief is "just and proper" to preserve and restore the status quo "when the circumstances of a case create a reasonable apprehension that the efficacy of the Board's final order may be nullified, or the administrative procedures will be rendered meaningless". Asseo v. Centro Médico Del Turabo, Inc., 900 F.2d at 455 quoting Angle v. Sacks, 382 F.2d at 660.

In the First Circuit jurisdiction, District courts must examine "the whole panoply of discretionary issues with respect to granting preliminary injunctive relief." Asseo v. Centro Médico Del Turabo, 900 F.2d at 454; Asseo v. Pan American Grain Co., 805 F.2d at 26. Under those standards relief is appropriate if: (1) petitioner has exhibited a likelihood of success on the merits³; (2) the petitioner will suffer irreparable injury if the injunction is not granted; (3) such injury outweighs any harm which granting injunctive relief would inflict on the respondent; and (4) the public interest will not be adversely affected by granting the injunction. Asseo v. Centro Médico Del Turabo, Inc., at 453; Narragansett Indian Tribe v. Guilbert, 934 F.2d 4, 5 (1st Cir.1991); Planned Parenthood League of Mass. v. Bellotti, 641 F.2d 1006, 1009 (1st Cir.1981).

Thus, in ultimately resolving the Board's 10(j) petitions the courts are not "a rubber stamp" of the NLRB Director. Maram v. Universidad Interamericana, supra, at 958. In the district court's efforts to preserve the status quo, the court should grant only that relief which is reasonably necessary to preserve the remedial powers of the NLRB.

II. Findings of Fact

A. Background and Bargaining History

We examine the evidence presented by the Regional Director to determine compliance with the standard of "within the range of rationality". Maram v. Universidad Interamericana, 722 F.2d at 958.⁴ The Court finds the following facts "fairly supported" by the record.

Respondent Molinos, is a wholly owned subsidiary of Respondent ConAgra. Respondent Molinos' production and maintenance employees have been represented by the Union for over 20 years. During this period the parties have entered into eight collective bargaining agreements ("CBA"). During these past eight labor negotiations, until the labor negotiations of 1993-1994, the Union has not called a strike and the Company has not implemented a lock-out. The last CBA between the parties was signed on January 31, 1990, and was to be effective until October 28, 1993.⁵

B. Bargaining Sessions

A review of the bargaining minutes submitted in evidence discloses the following:

The parties began negotiations for a new CBA on June 17. Fernando Espinosa, Respondent Molinos' Director of Human Resources was the spokesperson for the Respondents, Ray Godbout, Respondent ConAgra's Vice-President of Human Resources, and Fred Lange, Respondent's Molinos General Manager, appeared and spoke for the Respondents at various meetings. Human Resources manager Elba Delgado drafted the minutes for most meetings. Arturo Figueroa was the spokesperson for the Union. Twenty two sessions were scheduled from June 17 to October 27. Four were canceled. The parties had 18 labor negotiations sessions.

At the first meeting, Fred Lange explained the changes that had occurred in the corporate structure of Respondent Molinos. Lange informed the Union that Respondent Molinos had became part of more than 60 companies that belong to what is known as ConAgra Grain Processing Company. Lange informed the Union that henceforth Respondent Molinos was going to be evaluated in a different way from what it had been in the past; that it was going to be compared against the other 60...