The American Can Co.Download PDFNational Labor Relations Board - Board DecisionsAug 30, 1979244 N.L.R.B. 736 (N.L.R.B. 1979) Copy Citation I)E(ISIONS OF NATIONAL LABOR RELATIONS BOARD The American Can Company and Stanley H. Egan and I)onald R. Egan United Steelworkers of America and Local 5490 of the United Steelworkers of America and Stanley H. Egan and Donald R. Egan. Cases 27-CA 4945 and 27 CB- 1032 August 30, 1979 SUPPLEMENTAL DECISION AND ORDER On April 5, 1978, the National Labor Relations Board issued its Decision and Order' in this proceed- ing finding that the superseniority provision of the collective-bargaining agreement was lawful on its face, and that application of the provision was not unlawful. Accordingly, the Board ordered that the complaint be dismissed in its entirety. On May 2, 1978, Stanley H. Egan and Donald R. Egan, the indi- vidual Charging Parties, filed a petition for review with the United States Court of Appeals for the Tenth Circuit. After announcement to the parties the Board, on September 26, 1978, filed a motion with the court to withdraw the record herein to permit it to reconsider its Decision and Order. On November 6, 1978, the Board notified the parties that the process- ing had been remanded for reconsideration and in- vited them to submit briefs. Thereafter, the Charging Parties, Respondent Employer, and the General Counsel filed briefs on remand. Upon the entire record in this proceeding, includ- ing the briefs of the parties, the Board makes the fol- lowing: FINDINGS AND CONCLUSIONS A. The Issue At issue herein is whether Respondent Employer and Respondent Unions violated Section 8(a)(1) and (3) and Section 8(b)(I)(A) and (2), respectively, by applying the superseniority provision of the collec- tive-bargaining agreement to permit local union offi- cers, including a guard (i.e., a position similar to ones usually titled "Sergeant-at-Arms") and a trustee, to retain their employment in the face of layoffs of em- ployees with greater plant seniority. B. Facts The pertinent facts are not in dispute. The Em- ployer and the International Union were parties to a collective-bargaining agreement covering various of 1235 NLRB 704. the Employer's plants, including the Denver, Colo- rado, plant involved herein. Local 5490 represented the production and maintenance unit employees at the Denver plant. In October 1975 the Employer told the union that it was going to cease production at the Denver plant as of December 5, 1975.2 Accordingly, on that day the Employer laid off all but 11 of its unit employees, who were retained to dismantle, crate, store, and ship machinery. Subsequently. the Em- ployer made additional layoffs and recalls. The collective-bargaining agreement between the Union and the Employer provided that in the event of layoffs unit employees with the greater seniority were to be retained provided that they could perform the work. The agreement also provided that superse- niority would "apply to a total of not more than ten local union officers and grievance committeemen who, notwithstanding their positions on the seniority roster, shall have preferential seniority in case of lay- off or recall." Pursuant to the agreement a seniority roster had been posted in the plant, and the Union had advised the Employer of the 10 union officers and committeemen for whom it claimed superseniority status.' The parties stipulated that of the 11 employees re- tained on December 5, 1975, C. E. Bugh and D. R. Howard were retained on the basis of superseniority. Bugh was the Local Union's treasurer and a griev- ance committeeman. (A grievance committeeman served as a steward at the plant.) Howard was a trustee for the Local. The union constitution de- scribes a trustee's duties as "to have charge of the hall and all property of the Local Union ... and perform such other duties as the Local Union may require." The record does not show that Howard had any other duties as trustee.4 The Administrative Law Judge found that C. Thompson, a trustee, was also retained because of his superseniority. Although Thompson was on the superseniority list and was only 25th in plant senior- ity, the parties did not stipulate and the General Counsel did not argue in its brief to the Administra- tive Law Judge that he was retained because of super- seniority. In addition, in their brief on recall the Charging Parties state, "Thompson had a secondary basis for his recall based upon his specific job qualifi- cations." There is no direct evidence why Thompson was retained. Accordingly, we find that the record 2 Pursuant to its usual practice in plant closures the International ap- pointed an administrator over the affairs of Local 5490. 3 Employee seniority ranking and the Union's superseniority claims are detailed in the Administrative Law Judge's Decision, attached to our origi- nal Decision and Order herein. I Howard was also chairman of the health and safety committee. This. however, was not the result of his being a trustee and was not the reason he was given superseniority. In addition. the Administrative Law Judge found, and the record supports his finding, that the testimony that Howard was active in this role in the period in question was not convincing 244 NLRB No. 78 736 AMERICAN CAN COMPANY will not support the finding that Thompson was re- tained on the basis of his superseniority as a union officer. The parties stipulated that W. S. Miller. grievance committee chairman, and S. Schneider, a guard, were recalled on January 5, 1976. on the basis of superse- niority. The Union's constitution describes the duties of a guard as "to take charge of the door and see that no one enters who is not entitled to do so." Schneider performed no other official duties for the Union. On February 13 and 20, 1976, there were general layoffs. Thereafter, as stipulated by the parties, How- ard was recalled on May 25, 1976, on the basis of superseniority. He was laid off on September 2, 1976. C. Discussion The record shows that Howard and Schneider were the only employees retained or recalled solely on the basis of their superseniority as union officers, namely, trustee and guard, respectively The record further shows that other employees who were not retained or recalled had greater plant seniority than Howard, who was 14th on the list, and Schneider, who was 22d on the list, and who would have been retained or re- called but for the superseniority afforded Howard and Schneider. 6 In Dairylea Cooperative, Inc., 219 NLRB 656 (1975), enfd. 531 F.2d 1162 (2d Cir. 1976), the Board majority held that superseniority clauses which oper- ate to keep a union steward on the job are permissible because the steward's functions benefit all unit em- ployees. he governing considerations were stated in Dairylea at 658: [I]n view of the inherent tendency of super se- niority clauses to discriminate against employees for union-related reasons . . . we do find that super seniority clauses which are not on their face limited to layoff and recall are presump- tively unlawful, and that the burden of rebutting that presumption (i.e., establishing justification) rests on the shoulders of the party asserting their legality. Dairylea, however, applied only to superseniority af- forded to union stewards. In United Electrical, Radio and Machine Workers of America, Local 623 (Limpco Mfg., Inc.), 230 NLRB 406 (1977), enfd. sub nom. Anna M. D'Amico v. N.L.R.B., 582 F.2d 820, 824 (3d 5 Other officers were retained but not solely because they were officers. Some were at the top of the seniority list, some were also grievance commit- teemen (stewards), and some were not shown to have been retained because they were officers (as with Thompson). For example, the individual Charging Parties, Stanley H. Egan and Don- ald R. Egan, were 9th and 10th, respectively, on the seniority list and were apparently discriminated against. Actual determination of who would have been recalled or retained but for the superseniority afforded Howard and Schneider is to be determined in the compliance stage of this proceeding. Cir. 1978), the Board majority held that the Dairylea presumption that superseniority protection for stew- ards is lawful because it "furthers the effective admin- istration of the bargaining agreements on the plant level" applies to union officers because they play an important role in contract administration. In Otis Elevator Comnpanl, 231 NLRB 1128 (1977), the Board majority held that union officers may lawfully be given superseniority because they generally contrib- ute, in their official capacities. to the ability of the union to represent the unit effectively and efficiently. The panel majority issuing the Board's Decision and Order in this proceeding. relying in part on the above-cited cases, found that the superseniority pro- vision involved herein was presumptively lawful be- cause it covered only union officers and committee- men, and that the Board would not question a union's decision as to which officers aid the union in eflec- tively representing the unit. Subsequent to that deci- sion the Third Circuit issued Anna M. D'.4nico v. N.L.R.B., supra. In doing so the court stated that the respondent "was obligated to produce credible proof that the individual in question was officially assigned duties which helped to implement the collective bar- gaining agreement in a meaningful way. An) less rigid interpretation of the Board's ruling would leave substantial room to dilute the statutory neutrality principle without the requisite collective bargaining justification" (582 F.2d 825). Upon reflection of the issues involved herein and consideration of the D'Amico decision the Board de- cided to reconsider sua sponte its earlier Decision and Order herein. As can be seen from the above-cited cases the Board Members have widely divergent views on Dain'lea issues, particularly on that issue involved herein. Thus, this Supplemental Decision and Order is based on an aggregate majority as fol- lows: Chairman Fanning and Member Truesdale do not agree with the restrictions placed on supersenior- ity by Dairylea and its progeny (see their dissent herein): Members Jenkins and Penello would not per- mit union officers to benefit from superseniority ex- cept when the officers also serve as stewards or other- wise engage in administration of the contract at the place and during the hours of their employment (see their concurrence herein); and Member Murphy ad- heres to Dairylea and Limpco. supra, but finds that the General Counsel has rebutted the presumption that the union officers here involved were lawfully af- forded superseniority by showing that Howard and Schneider are not engaged in contract administration (see her separate concurrence herein). Thus, the ma- jority of the Board finds that Respondents violated the Act as alleged in their application of the superse- niority provision in question to trustee Howard and guard Schneider. 737 DECISIONS OF NATIONAL LABOR RELATIONS BOARD Upon the aggregate majority outlined above the Board makes the following: CONCLUSIONS OF LAW I. The Employer was at all material times an em- ployer engaged in commerce, and the Unions were labor organizations within the meaning of the Act. 2. United Steelworkers of America and Local 5490 of the United Steelworkers of America violated Sec- tion 8(b)(1)(A) and (2) of the Act by requesting the Employer to retain or recall trustee Howard and guard Schneider under the superseniority provision of the applicable collective-bargaining agreement while senior employees holding superior contractual reten- tion and recall rights were denied retention and recall inasmuch as the union duties of those officers do not involve the representation of unit employees in mat- ters involving the administration of the agreement or grievance processing. 3. The American Can Company violated Section 8(a)(1) and (3) of the Act by complying with the above-described request of the Unions. 4. The above-described unfair labor practices af- fect commerce within the meaning of the Act. THE REMEDY Having found that Respondents violated the Act by effecting a discriminatorily unlawful application of their superseniority provision, we shall order them to cease and desist from any such discriminatory appli- cation. Because trustee Howard and guard Schneider were retained or recalled pursuant to an unlawful ap- plication of the superseniority provision of the collec- tive-bargaining agreement in derogation of the rights of senior employees to contractual retention and re- call rights, it shall be ordered that Respondent Unions and Respondent Employer make whole any wage losses suffered by those senior employees who would have been retained or recalled between De- cember 5, 1975, and September 2, 1976, but for the unlawful retention and recall of Howard and Schnei- der, less any net earnings, such employees would have received in the periods they would have been em- ployed. The lost wages and interest thereon shall be computed in the manner presribed in F. W. Wool- worth Company, 90 NLRB 289 (1950), and Florida Steel Corporation, 231 NLRB 651 (1977).7 ORDER Pursuant to the provisions of Section 10(c) of the National Labor Relations Act, as amended, the Na- tional Labor Relations Board hereby orders that: See, generally, Isis Plumbing a Heating Co., 138 NLRB 716 (1962). A. Respondent, The American Can Company, Denver, Colorado, its officers, agents, successors, and assigns, shall: 1. Cease and desist from: (a) Permitting, in any layoffs or recalls within units covered by agreements between The American Can Company and United Steelworkers of America and its affiliated local unions, superseniority to be invoked for other than a reasonable number of local union officers whose duties involve the administration of the agreement or the processing of grievances whenever such invocation or permission results in the displace- ment of unit employees with greater seniority status under the agreement for purposes of layoff or recall. (b) In any like or related manner interfering with. restraining, or coercing employees in the exercise of their rights protected by Section 7 of the Act. 2. Take the following affirmative action designed to effectuate the purposes and policies of the Act: (a) Make whole those unit employees who would have been retained or recalled under the agreement but for the retention or recall of trustee Howard and guard Schneider between December 5. 1975, and Sep- tember 2, 1976, at the Employer's Denver, Colorado, plant in the manner set forth in the section of this Supplemental Decision and Order entitled "The Remedy." (b) Preserve and, upon request, make available to the Board or its agents, for examination and copying, all payroll records, social security payment records, timecards, personnel records and reports, and all other records necessary to analyze the amount of backpay due under the terms of this Order. (c) Post at the plants of the Employer where em- ployees are covered by national agreements between the Employer and the United Steelworkers of Amer- ica copies of the attached notice marked "Appendix A." 8 Copies of said notice, on forms provided by the Regional Director for Region 27, after being duly signed by the Employer's representative, shall be posted by the Employer immediately upon receipt thereof, and be maintained by it for 60 consecutive days thereafter, in conspicuous places, including all places where notices to employees are customarily posted. Reasonable steps shall be taken by the Em- ployer to insure that said notices are not defaced, al- tered, or covered by any other material. (d) Notify the Regional Director for Region 27, in writing, within 20 days from the date of this Order, what steps Respondent Employer has taken to com- ply herewith. I In the event that this Order is enforced by a Judgment of a United States court of appeals, the words in the notice reading "Posted by order of the National Labor Relations Board" shall read "Posted Pursuant to a Judgment of the United States Court of Appeals Enforcing an order of the National Labor Relations Board." 738 AMERICAN CAN COMPANY B. Respondent United Steelworkers of America and Local 5490 of the United Steelworkers of Amer- ica, their officers, agents, and representatives, shall: 1. Cease and iesist from: (a) Invoking, in any layoffs or recalls within units covered by agreements between The American Can Company and United Steelworkers of America and its affiliated local unions, superseniority for other than a reasonable number of local union officers whose duties involve the administration of the agree- ment or the processing of grievances whenever such invocation results in the displacement of unit employ- ees with greater seniority status under the agreement for purposes of layoff and recall. (b) In any like or related manner restraining or co- ercing employees in the exercise of their rights pro- tected by Section (7) of the Act. 2. Take the following affirmative action designed to effectuate the purposes and policies of the Act: (a) Make whole those unit employees who would have been retained or recalled under the agreement but for the retention or recall of trustee Howard or guard Schneider between December 5, 1975, and Sep- tember 2, 1976, at the Employer's Denver, Colorado, plant in the manner set forth in the section of this Supplemental Decision and Order entitled "The Remedy." (b) Post at the meeting halls of local unions affili- ated with the United Steelworkers of America which have members covered by national agreements be- tween the Employer and the United Steelworkers of America copies of the attached notice marked "Ap- pendix."9 Copies of said notice, on forms provided by the Regional Director for Region 27, after being duly signed by Respondent Union's representative, shall be posted by it immediately upon receipt thereof, and be maintained by it for 60 consecutive days there- after, in conspicuous places, including all places where notices to members are customarily posted. Reasonable steps shall be taken by the Union to in- sure that said notices are not defaced, altered, or cov- ered by any other material. (c) Notify the Regional Director for Region 27, in writing, within 20 days from the date of this Order, what steps Respondent Union has taken to comply herewith. MEMBERS JENKINS and PENELLO, further concurring: We agree that this contractual provision herein which permitted trustee Howard and guard Schneider to benefit from superseniority is unlawful, not merely because it applies to union officers who play no role in the effective and efficient administration of the contract, but also because it applies to all union offi- I See fn. 8, supra. cers without regard to whether they act as stewards. In our opinion, the contract provision in question is unlawful on its face. In Dairylea, supra, the Board held that supersenior- ity provisions giving benefits to stewards with regard to layoff and recall are lawful. The Board majority, however, has expanded Dairylea, in Limpco, supra, in Otis Elevator, supra, and in this case to include union officers with those employees who may lawfully bene- fit from superseniority. We do not agree: see our dis- sents in Limnpco and Otis Elevator. Superseniority pro- visions which benefit union officials, be they stewards, officers, or others, are by their very nature coercive because they discriminatorily encourage and reward union participation contrary to the Section 7 right to refrain from such activity. We recognized, however, in Dairylea that a steward's processing of grievances and enforcement of the collective-bargaining agree- ment on the job offset any restraint on Section 7 rights by the facilitation of unit employees' contrac- tual rights. Thus, Dainlea found that superseniority protection with respect to layoff and recall for union stewards was lawful because its objective was to re- tain on the job those union officials whose activities facilitate employee rights and whose presence on the job is required for the proper performance of this function. In our view, permitting union officers who do not so act as stewards to benefit from superseniority is contrary to the operative principles of Dairylea. Even if union officers facilitate employee rights by acting to effectively and efficiently administer the collective- bargaining agreement, the proper performance of such activities does not require the continued pres- ence of the officers on the job. Thus, at most, union officers meet only half of the twofold test of Dairvlea. In contrast, the steward's activities, i.e., the handling and adjustment of on-the-job grievances, serve to benefit employees, and are such that the steward's presence on the job is necessary. Put differently, the activities of union officers, however they benefit em- ployees, do not generally involve on-the-job func- tions, while those of stewards are primarily on-the-job activities. In this case the superseniority provision in issue, on its face and in its application, permits union officers to benefit merely because of their status as officers and not because their presence on the job is necessary for handling grievances. Accordingly, we would find that the superseniority provision is unlawful on its face, and that, perforce, application of that provision to benefit union officers is unlawful. MEMBER MURPHY, concurring: As I stated in Union Carbide Corporation Chemical and Plastics Operations Division, 228 NLRB 1152 739 DECISIONS OF NATIONAL LABOR RELATIONS BOARD (1977), 1 find presumptively lawful those clauses giv- ing job retention superseniority-including layoff. re- call, shift assignment, or retention of the same job or category of job during incumbency in such position- for union stewards and officers whose functions re- late, in general, to furthering the bargaining relation- ship. I have also stated that the General Counsel has the burden of proving affirmatively that the applica- tion of a superseniority clause to a union officer is invalid. Limpco Mfg., Inc., 230 NLRB 406, 408 (1977). The Third Circuit, in enforcing Limpco, supra, enid. sub nom. Anna M. D'Amico v. N.L.R.B., 582 F.2d 820, 825 (1978), found the Board's accommodation permissible when a proper justification appears. The court stated that it read the Board's Decision to mean that "the Union was obligated to produce credible proof that the individual in question was officially as- signed duties which helped to implement the collec- tive bargaining agreement in a meaningful way." These, then, are the burdens which must be satis- fied. An examination of the undisputed facts here dis- closes that the General Counsel has met his initial burden of showing invalidity in the application of this clause. The duties of the guards, according to the In- ternational Union's constitution, are to "take charge of the door and see that no one enters [a meeting] who is not entitled to do so." The trustees' duties are defined as "to have charge of the hall and all property of the Local Union . . . and perform such other duties as the Local may require." None of the duties of ei- ther office, as so specified in the Union's constitution, relates to the general furthering of the bargaining re- lationship as set forth by the court. Hence, the duties of guard and trustee are too remote to justify superse- niority for such positions. The burden thus shifted to Respondents to come forward with evidence that these officers, in fact, do perform functions which re- late to the "general furthering of the bargaining rela- tionship." But Respondents have failed to establish that either trustee Howard or guard Schneider has any such responsibilities.' 0 Therefore I emphasize that while I find the clause lawful on itsface, I find that under the facts here Re- spondents violated the Act by their application of the superseniority provision to trustee Howard and guard Schneider. Accordingly, I join in adopting the remedy set forth in the principal opinion. CHAIRMAN FANNING and MEMBER TRUESDALE, dis- senting: We would dismiss the complaint in its entirety for 10 No evidence was presented with respect to other duties of Schneider. With respect to Howard, the evidence adduced related to his position as chairman of the health and safety committee. This, however, was not the result of his being a trustee and was not the reason that he was given super- seniority. the reasons stated in the original Decision and Order in this proceeding (235 NLRB 704), and because we do not agree with the restrictions placed on superse- niority by Dairylea and its progeny. See Chairman Fanning's dissents in Dairylea and A.P.A. Transport Corp., 239 NLRB 1407 (1979), and Member Trues- dale's separate dissent in A.P.A. Transport. Contractually providing superseniority benefits for union stewards and officers does not, in our view, in- terfere with, restrain, or coerce employees in the exer- cise of their rights but instead serves to benefit the union, the employer, and the employees. We do not believe that the remote and contingent benefits of superseniority associated with service as a steward or officer have any significant impact on whether an em- ployee chooses to support a union. Instead, the only real effect of such provisions is to encourage and reward service as a union official. Nor do we believe that rewarding union officials for their service adversely affects unit employees. To the con- trary, such rewards serve to benefit all the employees in the unit. A union can represent unit employees only through the actions of its officers and stewards. To encourage quality representation by giving super- seniority rewards to such officers thus serves the inter- ests not only of unions and employers but also of all employees, both members and nonmembers. Thus, in our view, superseniority for union officials serves the purpose of effective and efficient representation of unit employees by the union. For these reasons we would find that such provisions which are duly nego- tiated by the parties and contained in their bargaining agreements are presumptively lawful provided, of course, that they meet the tests of reasons and good faith. The superseniority provision in issue in the instant proceeding clearly meets these standards. The provi- sion gives superseniority to a reasonable number of union officers and grievance committeemen (10) who contribute, in their official capacities, to the ability of the union to represent all the employees in the unit effectively and efficiently. Accordingly, we would find that the provision in issue is presumptively lawful. A description of the officers' duties showing no visible or direct impact by them on contract administration is not sufficient to rebut the presumption of lawful- ness. We would not, on the basis of such evidence, second-guess a union's decision as to which officers aid the union in effectively representing the unit. To do otherwise would be contrary to the realities of bar- gaining, would ignore the often vital indirect impact on contract administration by apparently low-level officers, and would put the Employer in the impossi- ble position of trying to determine to which officials it 740 AMI RICAN ( .\N CO()MI'PANY can lawt'ull 5 give superseniorit. or these reasons we would dismiss the complaint in its entirety. APPENDIX A No( l: I o EMI'I ()Yil-s POStItt) BY ORDEI)IR It- IlI NA I()tNAI. LAB()R R.AIIONS BOARD An Agency of the United States GCovernmnent Wi WI.I. NO1 permit any local union affiliated with the above International Union to invoke superseniority of such agreements for other than a reasonable number of local union officers whose duties involve the administration of such agreements or the processing of grievances whenever such permission results in the displace- ment of unit employees with greater seniority status under such agreements for purposes of layoff and recall. WE Wll. NOT in any like or related manner interfere with, restrain, or coerce our employees in the exercise of their rights protected by Sec- tion 7 of the National Labor Relations Act. W[ wii.t. make whole for any wage losses, plus interest. those senior employees suffered who would have been retained in or recalled to active employment at our Denver. Colorado. plant be- tween December 5 1975. and September 2. 1976. but for the retention and recall of Steelworkers I.ocal Union 5490 trustee [). R. loward and guard S. Schneider. TitI AMi RI('AN ('AN ((), MPAN APPIN )IX B T4o11( I() NIIi i)YI I S POslll) BY OR)DER () it N'AIIO)NAI AB()R Ril .I i}NS BI)ARI) An Agenct of the United States (overnnltenl WI. vt 1i. No)I invoke the superseniorit\ provi- sion oft such agreements for other than a reatson- able number ot' Local Union officers whos duties involve the administration of such agreements or the processing of grievances whenever such invo- cation results in the displacement of unit em- ployees with greater seniority status under such agreements for purposes of laot' and recall. WE wnt.. (Nt1 in an, like or related manner restrain or coerce employees oft' 'he American Can Company in the exercise oft' their rights pro- tected by Section 7 of' the National .ahbor Rela- tions Act. W}t wt.i. make whole for any wage losses. plus interest. those senior employees suffered who would have been retained in or recalled to active employment at the Denver. Colorado. plant. of' The American Can Compan, between I)ecem- her 5. 1975. and September 2. 1976. but for the retention and recall of Steelworkers ocal Union 5490 trustee I). R. Howard and guard S. Schnei- der. U\N II t) S i I:V, O()RKI RS 01 AMIRI( A 741 Copy with citationCopy as parenthetical citation