Packerland Packing Co., Inc.Download PDFNational Labor Relations Board - Board DecisionsMar 4, 1975216 N.L.R.B. 841 (N.L.R.B. 1975) Copy Citation PACKERLAND PACKING COMPANY 841 Packerland Packing Company , Inc. and Local 248, Amalgamated Meat Cutters and Butcher Work- men of North America , AFL-CIO. Case 30-CA- 2743 March 4, 1975 ORDER DENYING MOTIONS By MEMBERS FANNING, KENNEDY, AND PENELLO On October 11, 1974, Administrative Law Judge John P. von Rohr issued his Decision in the above- entitled proceeding, recommending that the com- plaint be dismissed and the dispute be deferred to the grievance-arbitration procedures of the collective- bargaining contract between the Union and the Respondent under the principles set forth in Collyer Insulated Wire, A Gulf and Western Systems Co., 192 NLRB 837 (1971). Thereafter, the case was trans- ferred to the Board in Washington, D.C. On October 31, 1974, the General Counsel and the Union each filed a motion to reopen the record and to remand the case to the Administrative Law Judge for the receipt of newly discovered evidence. There- after, the Respondent filed a "motion" in opposition to the motions of the General Counsel and the Union. Pursuant to the provisions of Section 3(b) of the National Labor Relations Act, as amended, the National Labor Relations Board has delegated its authority in this proceeding to a three-member panel. Upon the entire record in this proceeding, includ- ing the motions and briefs of the parties, the Board finds as follows: Respondent has meat packing plants in Green Bay, Wisconsin; Chippewa Falls, Wisconsin; and Pampa, Texas. The present proceeding involves only the plant in Green Bay. Since 1970, the Union has been the certified bargaining representative of the pro- duction and maintenance employees at the Green Bay plant. The relevant collective-bargaining con- tract at this plant, effective from June 1, 1971, to February 28, 1975, con tains a dues-checkoff provi- sion . In September 1973, the Union's International and an affiliated local began an economic strike against Respondent's Chippewa Falls plant. In support of that strike, the International and its locals, including the Union, engaged in a consumer boycott against Respondent's products, including those produced at the Green Bay plant. In retaliation, Respondent discontinued the dues checkoff claiming that the boycott was a violation of the Union's contract undertaking not to engage in a strike stoppage, slowdown, or suspension of work. 216 NLRB No. 128 The complaint alleged that by refusing to honor the contract checkoff provision , Respondent violated Section 8(a)(5) and ( 1) of the Act. In its defense, Respondent contended initially that the dispute should be deferred to the contract grievance -arbitra- tion machinery in accord with the teaching of Collyer Insulated Wire, 192 NLRB 837 (1971). The Administrative Law Judge reviewed Respond- ent's history and found that , aside from a representa- tion proceeding , Respondent has been involved in two cases wherein a Board order has been entered. The first of these occurred prior to the Union's certification and merely involved Board approval of a settlement stipulation which had been arrived at by agreement of the parties . In the sole unfair labor practice case to be brought to a hearing before the Board , Packerland Packing Company, Inc., 203 NLRB 198 (1973), the Board found one independent violation of Section 8(a)(1) of the Act and also that Respondent had discriminatorily assigned two em- ployees to different positions in violation of Section 8(a)(3) of the Act. In addition , the record shows an arbitration award against Respondent with which Respondent complied concerning Respondent 's fail- ure to honor the Union 's request to deduct an extra $1 in addition to the regular monthly union dues for 3 months . The arbitrator added a special note to his award to the effect that the "Company had an honest difference of opinion as to the meaning of the contract as respects its duty to checkoff dues." Finally , at the hearing herein , Respondent's plant manager stated that Respondent is willing to have the dispute herein taken to arbitration. Based on the foregoing , the Administrative Law Judge agreed with Respondent's contention that the dispute should be deferred to the available dispute- solving machinery . He stated: Applying the test set forth in United Aircraft Corporation, supra [204 NLRB 879 (1973) ], and as more fully explicated therein , I am persuaded and find that the combination of Respondent's past and presently alleged misconduct does not appear to be of such character as to render the use of the available dispute solving machinery to be un- promising or futile. In their motions, the General Counsel and the Union argue that the record should be reopened to receive four items of evidence, allegedly discovered subsequent to the hearing before the Administrative Law Judge , which in the opinion of the moving parties demonstrate Respondent's enmity toward employee and union rights and, together with the evidence already in the record, justify nondeferral to the contract grievance-arbitration machinery. The 842 DECISIONS OF NATIONAL LABOR RELATIONS BOARD items of evidence which the moving parties would introduce are as follows: (a) An arbitration award by Arbitrator Lewis E. Solomon issued August 22, 1974, reducing from 7 to 5 days Respondent's suspension of employee Kruse and directing Respondent to give him 2 days' backpay. (b) An arbitration award by Arbitrator Howard Bellman issued on October 8, 1974, reducing from 30 to 7 days Respondent's suspension of employee Samuelson and directing Respondent to make Samuelson whole for any loss of pay he suffered in excess of 7 days. (c) On September 13, 1974, a complaint and notice of hearing issued against Packerland Packing Co. of Texas, Inc., a subsidiary of Respondent, charging said Company with violating Section 8(a)(1) and (2) of the Act. (d) On September 4, 1974, Respondent initiated a civil action against the Union alleging that the Union had damaged Respondent's business by engaging in a consumer boycott against Respondent. In support of the motions, the moving parties also submitted an affidavit of Vic Bobrowicz, business agent for the Union, who states that he contacted Respondent with respect to compliance with the above arbitration awards and was told that Respond- ent would not comply with either. In its answer to the motions, Respondent asserts that the allegations concerning Packerland Packing Company of Texas, Inc., are not newly discovered evidence since the complaint is based on unfair labor practice charges filed on July 3, 1974, more than a month before the hearing in the present case, and in any event are irrelevant. As to the arbitration proceedings, Respondent admits that there was a delay in complying with the arbitration award concerning employee Kruse, but, according to the affidavit of Respondent's attorney, asserts that Kruse has been paid and that the delay was the result of an ambiguous stance by Union Agent Bobrowicz concerning deferred implementation of the award until a subsequent proceeding against Kruse was decided. As to the Samuelson arbitration award, Respondent's attorney in his affidavit states that he believes that the arbitrator failed to consider rele- vant, uncontroverted evidence, that the award was in error, and that Respondent intends to appeal it to the court. Respondent's attorney further states in his affidavit that should the decision on appeal sustain the arbitrator the award will then be timely imple- mented. As to the state court proceeding, Respond- ent's attorney states that it is intended to allege a cause of action based on state laws unrelated to the National Labor Relations Act, as amended, or Section 301 of the Labor Management Relations Act. We agree with the contention of Respondent that the admission of the evidence relied upon by the General Counsel and the Union in their motions would not require modification of the Administrative Law Judge's decision to defer the dispute over discontinuance of dues checkoff to the grievance- arbitration machinery in accordance with the man- date of Collyer. As to the complaint issued against a subsidiary of Respondent and involving a different plant of Respondent, we deem it irrelevant on two grounds: (1) it pertains to a different plant of Respondent, and (2) it proves nothing since a complaint merely reflects a belief of the General Counsel that a respondent has committed an unfair labor practice; it is for the Administrative Law Judge hearing the case and the Board on review to determine whether the General Counsel is correct. As to the arbitration proceedings, in both cases the arbitrators upheld Respondent's contention that the employees involved had violated work rules and were deserving of censure, but ruled that the discipline meted out was too severe and so reduced the number of days for which the employees were penalized. The affidavit of Respondent's attorney, which has not been challenged, states that the 2 days' backpay due to employee Kruse under the arbitration award involving him has been paid and that the delay was due to a misunderstanding. As to the Samuelson award, Respondent asserts , and its good faith is not challenged, that it believes the arbitrator erred in his award and it intends to challenge the award in the courts as it has a legal right to do; but it also states that it will promptly comply with the award if its appeal is rejected. We do not believe that Respond- ent's record in these two arbitration proceedings indicates that deferral to arbitration in the present proceeding is either unpromising or futile. Finally, we can perceive no relevancy to the deferral issue in the fact that Respondent has chosen to file a civil suit in a state court for what it believes was actionable conduct under state law.' In United Aircraft Corporation (Pratt & Whitney Division; Hamilton Standard Division), 213 NLRB No. 22 (1974), the Board majority stated: As we noted in United Aircraft Corporation, supra, if there is effective dispute-solving machin- ery available, and if the combination of past and presently alleged misconduct does not appear to be of such character as to render the use of that machinery unpromising or futile, then we ought not to depart from our usual deferral policies. I Cf. United Aircraft Corporation (Pratt and Whitney Division), 192 NLRB 382,384 (1971). PACKERLAND PACKING COMPANY We conclude that the additional evidence which the General Counsel and the Union seek to introduce is not sufficient either alone or together with the other evidence in the record to establish that requiring the parties to submit their present dispute to the contract grievance-arbitration procedure will be either unpromising or futile. In any event, we note that the Board will retain jurisdiction to reopen the case in the event that Respondent engages in foot dragging, or the disposi- tion in the arbitration proceeding is irregular or repugnant to the policies of the Act. Accordingly, we shall deny the motions to reopen the record. ORDER It is hereby ordered that the motions of the General Counsel and the Union to remand the instant case to the Administrative Law Judge for the purpose of reopening the record and receiving additional evidence be, and they hereby are, denied as lacking in merit.2 MEMBER FANNING, dissenting: Contrary to my colleagues, I would grant the motions of. the General Counsel and the Union to remand the instant case to the Administrative Law Judge, who conducted the hearing on August 19 and 20, 1974, and to reopen the record for the purpose of receiving newly discovered evidence bearing upon the issue of whether Respondent engaged in conduct which will render the use of the arbitration process unpromising or futile. As stated in the majority opinion, the Administra- tive Law Judge in his Decision recommended dismissal of the complaint which alleged that Respondent violated Section 8(a)(5) and (1) of the Act by its unilateral refusal to honor the checkoff provision in its collective -bargaining agreement with the Union.3 The Administrative Law Judge noted Respondent' s willingness to utilize arbitration to resolve its dispute with the Union and rejected the contention of the General Counsel that the Board should deny deferral to arbitration because of Respondent's history of interference with employee rights . In so holding, the Administrative Law Judge invoked the United Aircraft test4 which requires a review of the "past conduct and present allegations of misconduct" of Respondent to determine whether 2 Following the filing of the motions , the Board granted indefinite extensions for filing exceptions to the Administrative Law Judge 's Decision and supporting briefs. Exceptions to the Decision and supporting briefs will now be due in Washington , D.C., on or before 20 days from the date of this Order. 3 Respondent discontinued the checkoff because the Union engaged in a consumer boycott against Respondent in furtherance of a strike by a sister local. In this connection , note the following statement of Respondent's 843 the parties' own arbitration procedures will effective- ly resolve the current dispute in a prompt and fair manner. However, as indicated above, the General Counsel and the Union thereafter filed remand motions to permit the introduction of newly discovered evidence which they contend "clearly demonstrates Respond- ent's enmity toward employee and union rights." In support of their motions, they refer to the following posthearing developments that should be "weighed with the existing record evidence": On August 22, 1974, Arbitrator Lewis E. Solomon issued an award which reduced from 7 to 5 days Respondent's suspension of employee Richard Kruse and ordered 2 days' backpay for him. On October 8, 1974, Arbitrator Howard Bellman reduced employee Peter Samuelson's 30-day suspen- sion to 7 days and directed that Samuelson be made whole for any loss in pay he suffered in excess of 7 days. On October 18, 1974, the Union's representative, Vic Bobrowicz, filed an affidavit stating that he was told by Respondent that it could not comply with either award. On September 4, Respondent filed in a Wisconsin circuit court a complaint charging the Union with damaging Respondent's business by taking part in a consumer boycott against Respondent. On September 13, a complaint was issued by the General Counsel against the Texas subsidiary of the Company in Case 16-CA-5657, alleging unlawful assistance to and recognition of another labor organization. Respondent opposed the motions on the following grounds: (1) Although there was a delay in compliance with the award concerning Kruse, the delay was a result of the "ambiguous stance" of Union Representative Bobrowicz regarding deferred implementation of the award to Kruse until another arbitration proceeding concerning him was decided.5 (2) Respondent intends to contest the award respecting Samuelson as inconsistent with the terms. of the collective-bargaining agreement. (3) The action brought in a circuit court of the State of Wisconsin seeks an injunction against the Union and is outside the purview of the Federal law. (4) No evidence has been submitted that the unfair labor practices alleged in the complaint against president in his letter dated April 25, 1972: "If you continue to insist on setting up grievance and arbitration on matters that are clearly not subject to arbitration , we will have to play the same game , and we will simply stop collecting your dues for you." 4 United Aircraft Corporation, et al., 213 NLRB No. 22 ( 1974), and 204 NLRB 879 (1973). 5 According to an affidavit of Respondent counsel, a check was sent to Kruse on November 7. 844 DECISIONS OF NATIONAL LABOR RELATIONS BOARD Respondent 's Texas subsidiary have any relevance to the instant case which involves Respondent 's Green Bay, Wisconsin , plant. The Board held in the United Aircraft cases that if there appears to be a continuing pattern of efforts to defeat the purposes of the Act and if the evidence indicates that "the parties' own machinery is not functioning smoothly ," the Board should not defer to arbitration. It is clear from an analysis of the new evidence concerning the troubled relationship of the parties and the poorly functioning arbitration procedures that it would be useful in shedding further light on the propriety of deferral . In view of the gravity thereof, it is incumbent upon the Board to direct the reopening of the record in order to enable the Administrative Law Judge to consider and evaluate the totality of the available evidence. In the interest of fairness , the Board can do no less. To prohibit the presentation of the proffered evidence, which may well be critical in resolving the issues herein, is to contravene the principle of due process. In sum , the remand motions should be granted because the newly discovered evidence appears sufficiently serious to warrant reopening the record. Copy with citationCopy as parenthetical citation