United Furniture Workers of America v. NLRB
| Citation | 388 F.2d 880 |
| Decision Date | 27 December 1967 |
| Docket Number | No. 11413.,11413. |
| Parties | UNITED FURNITURE WORKERS OF AMERICA, AFL-CIO, Petitioner, v. NATIONAL LABOR RELATIONS BOARD, Respondent. |
| Court | United States Courts of Appeals. United States Court of Appeals (4th Circuit) |
Martin Raphael, New York City, for petitioner.
Hans J. Lehmann, Atty., N.L.R.B. (Arnold Ordman, Gen. Counsel, Dominick L. Manoli, Associate Gen. Counsel, Marcel Mallet-Prevost, Asst. Gen. Counsel, and Solomon I. Hirsh, Atty., N.L.R.B., on brief) for respondent.
Before BOREMAN and BUTZNER, Circuit Judges, and WOODROW W. JONES, District Judge.
This case is here on a Petition by United Furniture Workers of America, AFL-CIO, hereinafter referred to as the "Union", to review and set aside an order of the National Labor Relations Board, hereinafter referred to as the "Board", issued on October 25, 1966, pursuant to Section 10(c) of the National Labor Relations Act, as amended (61 Stat. 136, 73 Stat. 519, 29 U.S.C. § 151 et seq.). The Board in its order, dismissed the Complaint which the Union had filed against White Furniture Company, Mebane, North Carolina, hereinafter referred to as the "Company", for alleged unfair labor practices. The Board's decision and order are reported at 161 NLRB, No. 23.
The alleged unfair labor practices occurred at Mebane, North Carolina, where the Company manufactures and sells furniture, and all the parties concede that this Court has jurisdiction under Section 10(f) of the Act.
The only question before this Court is whether the Board properly found that the Company did not violate Section 8(a) (1) and (5) of the Act by refusing to produce certain financial information as requested by the Union. The Board found the Company's acts were not unlawful in refusing to produce for Union inspection extensive financial data pertaining to its gross profits, deductions therefrom, and taxes for the five (5) years prior thereto. We agree with this decision.
The point of contention between the Union and the Company related to certain Christmas bonuses which had been paid by the Company since the year 1957. The bonuses were based upon a percentage of the Company's profits and distributed among the employees according to seniority. Each year the Company's Board of Directors decided whether a bonus would be paid and, if so, in what amount.
In November 1964, after the Union was certified by the Board, the Company and the Union began negotiations wherein one item discussed was the Union's proposal to increase the Christmas bonus. On November 19, 1964, the Union asked the Company to furnish information as to "percentage of profits before taxes used to determine the percentage of annual earnings paid to each seniority group." On January 19 and 27, 1965, the Union again requested the percentage of profits used to determine bonuses for the years 1960, 1961, 1962, 1963 and 1964, and also for the percentage of annual earnings paid to employees in 1964, broken down by seniority groups, and the amount of bonus paid each employee in the bargaining unit.
The Company furnished information as follows:
1) It used 25% of its adjusted profits before taxes to determine the amount of the Christmas bonuses for the years 1960, 1961, 1962, 1963 and 1964. The method of determining adjusted profits being the same for all years.
2) The following percentages of annual earnings were paid to each seniority group for 1964:
0-5 years 4.94%
5-10 years 8.20%
10 years and over 10.25%
3) A list of employees showing the amount of Christmas bonus before tax deductions paid each employee in the bargaining unit for Christmas 1964.
During April 1965, the Union requested the following additional information which the Company refused to furnish, resulting in a complaint being filed with the Board's Regional Office in Winston-Salem, North Carolina:
1) The amount of gross profits, both before and after taxes, for the years 1960, 1961, 1962, 1963 and 1964.
2) The amount of gross profits "after taxes and business deductions," as well as "gross profits after taxes, business deductions and adjustments" for the same years.
3) Specifications of "business deductions and adjustments", including the amount allocated for officers' salaries and bonuses, plant and equipment, inventory, depreciation, and all other business deductions and adjustments.
The Company rejected this request on the ground that it was under no legal obligation to furnish the requested data and made no suggestion that it was financially unable to pay the increased bonuses asked by the Union.
The Union alleged that the Company committed unfair labor practices in that it refused to furnish this information in violation of Section 8(a) (1) and (5) of the Act. Upon a hearing, the Trial Examiner found that the Company had violated Section 8(a) (1) and (5) of the Act, but upon review by the Board, this decision was reversed and the Complaint dismissed. The Board concluded that the Union had not shown a specific need for such data at the time such request was made and was therefore not entitled to the information demanded.
To constitute good faith bargaining, the Company is required to furnish wage and related information pertaining to employees in the bargaining unit, and such information is presumptively relevant, but where the employer rebuts such relevancy, the Union must by reference to the circumstances of the case, demonstrate more precisely the relevancy of the data it requests. Curtiss-Wright Corp., etc. v. NLRB, 347 F.2d 61 (3rd Cir. 1965).
The Board, in its Order dated October 25, 1966, said:
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