NOTICE: This
opinion is subject to formal revision before publication in the bound volumes
of NLRB decisions. Readers are requested
to notify the Executive Secretary, National Labor Relations Board,
Clarke Manufacturing, Inc. and United Steel, Paper and Forestry, Rubber, Manufacturing,
Energy, Allied Industrial and Service Workers International
February 20, 2008
DECISION AND ORDER
By Members Liebman and Schaumber
On April 10, 2007, Administrative Law Judge Karl H.
Buschmann issued the attached decision.
The General Counsel and the
The National Labor Relations Board has considered the decision and the record in light of the exceptions and briefs and has decided to affirm the judge’s rulings, findings,1 and conclusions and to adopt the recommended Order.2
ORDER
The
National Labor Relations Board adopts the recommended Order of the administrative
law judge and orders that the Respondent, Clarke Manufacturing, Inc.,
Dated,
______________________________________
Wilma B. Liebman, Member
______________________________________
Peter C. Schaumber, Member
Andrew S. Gollin, Esq., for the General Counsel.
Russ R. Mueller, Esq., of
Ernest L. Dex, Sub-District Director, of
DECISION
Statement of the Case
Karl H.
Buschmann, Administrative Law Judge. This case was tried in
On the entire record, including my observation of the demeanor of the witnesses, and after considering the briefs filed by the General Counsel and the Respondent, I make the following
Findings of Fact
i.
jurisdiction
Clarke Manufacturing, Inc. is a Wisconsin corporation, engaged
in the operation of a machine shop at its facility in
ii. alleged
unfair labor practices
For more than 20 years, the
Production and maintenance employees of the Company, excluding office clerical, management and professional employees, and guards and supervisors.
The most recent of a series of collective-bargaining agreements was effective March 1, 2003 to February 28, 2006 (Jt. Exh. 1). In a telephone conversation in early January, Ernest Dex, union staff representative, requested Thomas Nelson, Respondent’s president, to set dates for negotiations. By letter of December 15, 2005, the union representative demanded certain information from the Company and suggested several days in February for contract negotiation meetings (GC Exh. 2). Thereafter, the parties held eight negotiation sessions. The substance of the discussions during these meetings is contained in the notes taken by Dex, as supported by his testimony (GC Exh. 3). The testimony of Thomas Nelson about the same negotiations was brief and differed in only minor respects.
Attending the first meeting on February 21, 2006, as well
as most subsequent meetings, were Thomas Nelson, president, and Russ R.
Mueller, attorney, for the Company, Ernest Dex, union staff representative,
Maria Favell, chief steward, and Ray Gnadt, an employee, for the
The next meeting on February 24, 2006, dealt mainly with
health care issues. The Respondent
disclosed to the
The parties met for their third meeting on February 27,
2006, for an extended session lasting into the afternoon, where the Respondent
presented additional and detailed information on the Federated Insurance
Plan. The Respondent also offered a
contract proposal for the renewal of the current agreement (Jt. Exh. 12). Attached to the proposal was a comprehensive
medical plan known as Defined Reimbursement Plan #5677 offered by Federated
Insurance. That plan differed from the existing health insurance plan, the
United Healthcare Plan. According to the
On March 20, 2006, the parties met for their fourth
session. The parties continued to
discuss the alternatives to the employees’ medical insurance. The
The parties met again on April 3, 2006, and resumed negotiations,
even though the
The sixth meeting was held on April 6, 2006. Initially, the parties discussed the
grievance procedure. The Respondent also
indicated that it needed a loan to cover the Company’s obligation under the
health insurance plan for the employees’ $2000 deductible amounts. The
The Union failed to receive the Respondent’s letter of
April 11, 2006, containing the cost calculation for the first year of the Company’s
final offer, the information requested by the
By letter, dated April 17, 2006, the Respondent explained
its reasons for asking the
This is to request the
In response, the Union informed the Respondent by letter of April 21, 2006, that “the Union is not interested in agreeing to implement the Federated Defined Reimbursement Plan #5677 effective May 1, 2006,” that the Union needed additional information for further negotiations, including insurance, and that the Company’s position to retain “the right to change” insurance benefits during the life of the contract amounted to “an unfair labor practice and a violation of the National Labor Relations Act” (Jt. Exh. 38).
The Respondent provided the Union with additional information
and informed the
This implementation is made pursuant to the existing
impasse in the negotiations for terms of a renewal labor Agreement and as a
result of the
The letter stated five reasons for the “impasse in the
negotiations,” among them the Union’s insistence to delete “the right to change
language,” and to condition its acceptance of the health plan on that proposal,
the Union’s position to increase costs in areas other than wages and the Union’s proposal to require information to be
submitted to the International Union.
A comparison between the two insurance plans shows that the benefits offered to the employees were substantially similar. In any case, the Respondent implemented the Federated plan on May 1, 2006, based on the impasse in the negotiations.
The Company also sent a letter, dated April 24, 2006, to
the Union in response to the Union’s April 21 letter, in which the
The parties did not meet for several weeks. But in a letter, dated May 22, 2006, to the
Respondent, the Union requested dates in order to resume contract negotiations,
suggesting June 7 or 8, 2006 (GC Exh.
4). The parties met on June 8,
2006. The
The next and final meeting was held on June 19, 2006. The Respondent provided the
In sum, the parties held eight meetings from February 21,
to June 19, 2006, in order to negotiate a contract. Each side made concessions on terms and
conditions of employment. From the
outset, the Respondent provided extensive and exhaustive information to the
Analysis
The complaint alleges that the Respondent failed and
refused to bargain in good faith in violation of Section 8(a)(1) and (5) of the
Act by proposing to replace the United Healthcare Plan with the Federated Plan
#5677, declaring an impasse in bargaining for a successor agreement, by
implementing the Federated Plan, and by proposing in its “postfinal offer” the
elimination of the union security provision and the employees’ pension benefit
plan. The General Counsel argues that
the Respondent failed and refused to bargain in good faith by (1) prematurely
declaring an impasse in the negotiations, (2) unilaterally changing health
insurance plans and implementing its Federated Plan #5677, and (3) by
submitting regressive proposals. The Respondent
counters and refers to a deadlock generated by the
The record, as summarized above, is not in dispute. Two factors changed the dynamics of the
parties’ longstanding bargaining relationship, first, the health insurance
issue, and second, the change in management involving Tom Nelson as the new
president. As to the former, the record
shows that the Company struggled with the health insurance plans, and made it
clear from the inception of the negotiations that medical insurance would be a
deciding factor. It invited the Union at
the outset to participate and to get involved, providing the
The other concern which affected the negotiations was the
In all other respects, the Respondent did not appear to be
evasive, dishonest, or uncooperative. It
gave no indication to the
It is well settled that an employer’s unilateral changes
during the course of a collective-bargaining relationship concerning mandatory
subjects of bargaining is unlawful.
Health insurance is a recognized subject of bargaining. Recognized exceptions to an employer’s
unilateral action are those instances where an impasse is reached or where a
waiver can be established. Here, under
the terms of the expired contract, namely the “right to change” language, the
The determination of impasse involves an inquiry into “a myriad of circumstances,” including (1) the background and relationship of the parties, (2) their willingness to negotiate, (3) the extent and frequency of bargaining, (4) the integrity of the bargaining, and (5) the good or bad faith of the parties.
Applying that test to the instant situation, I find that
the declaration of the impasse was not unlawful. Here, the parties had a well established and
successful bargaining relationship, as exemplified by a series of
collective-bargaining agreements. Dex
testified that Robert Nelson, the Company’s past president, was tough but fair,
and that he had a cordial relationship with him. As already observed, the
The second element, the parties’ willingness to negotiate,
is shown by the Respondent’s cooperation in agreeing to set dates and in
attending meetings. Both parties
presented proposals based on the expired contract and made concessions. The Respondent furnished detailed
information, especially on the health insurance plan, and gave serious
consideration to the
Unlike the circumstances in Triple A Fire Protection, Inc.,
supra, where the respondent
attended only one negotiation session, here the Company attended a total of
eight meetings, and declared the impasse after the sixth meeting. The record does not show that the Respondent
rejected the
The fourth criterion, the integrity of the bargaining, was
shown by the sincerity of the parties in attempting to arrive at an agreeable
solution to the problems. There is no
dispute that the Respondent was faced with increasing cost of the existing
health plan, and tried to involve the
Finally, as to the good faith of the parties, the General
Counsel faults the Company for overemphasizing the insurance issue at the
expense of other outstanding issues. To
be sure, the parties could have come to an agreement on a few other outstanding
issues, such as life and sickness insurance, the pension plan, the elimination
of the management right clause, and other, more minor matters. But it is also clear that the parties were deadlocked
on two issues and unable to overcome their differences. At one point the
Mindful that parties deadlocked on certain issues are not
free to implement, unless an overall impasse is reached, I am convinced that
further meetings would not have been productive. Here, any further negotiations were futile,
because the parties were simply unable to
resolve the fundamental issues and any agreements on other issues would not, in
my opinion, have resolved the impasse.
I accordingly find that the evidence does not indicate that the Respondent declared the impasse prematurely and I find that the unilateral implementation of the Federated Plan did not violate the Act. I would therefore dismiss those allegations in the complaint.
However, I agree with the General Counsel that the Respondent
violated the Act after the parties had resumed negotiations at the behest of
the
The Company’s explanation that it considered to make the
pension fund issue as an initial proposal, because it is in financial trouble
seems like an afterthought and clearly designed to undermine the bargaining
relationship. The Respondent’s demeanor
was also inconsistent with its earlier dealings involving the health plan,
where the Company gave advanced notice and kept the
Conclusions of Law
1. The Respondent is an employer engaged in commerce within the meaning of Section 2(2), (6), and (7) of the Act.
2. The
3. The following employees of the Respondent constitute a unit appropriate for the purpose of collective bargaining within the meaning of Section 9(b) of the Act:
Production and maintenance employees of the Company, excluding office clerical, management, and professional employees, and guards and supervisors.
4. By submitting regressive proposals during the negotiations without sufficient explanations, the Respondent has engaged in unfair labor practices affecting commerce within the meaning of Section 8(a)(1) and (5) of the Act.
5. The unfair labor practices found above affect commerce within the meaning of Section 2(6) and (7) of the Act.
Remedy
Having found that the Respondent has engaged in certain unfair
labor practices, I find that it must be ordered to cease and desist and to take
certain affirmative action designed to effectuate the policies of the Act. Having found that the Respondent failed to
bargain in good faith with the Union by making regressive proposals during the
negotiations, the Respondent must be ordered to cease and desist and be ordered
to bargain in good faith with the
ORDER
The Respondent, Clarke Manufacturing, Inc.,
1. Cease and desist from
(a) Making regressive proposals in terms and conditions of
employment during the negotiations
without sufficient explanations.
(b) In any like or related manner interfering with, restraining, or coercing employees in the exercise of the rights guaranteed them by Section 7 of the Act.
2. Take the following affirmative action necessary to effectuate the policies of the Act.
(a) On request, bargain with the
Production and maintenance employees of the Company, excluding office clerical, management and professional employees, and guards and supervisors.
(b) Within 14 days after service by the Region, post at
its facility in
(c) Within 21 days after service by the Region, file with the Regional Director a sworn certification of a responsible official on a form provided by the Region attesting to the steps that the Respondent has taken to comply.
(d) It is further
ordered that the complaint is dismissed insofar as it alleges violations of the Act not specifically found.
Dated,
APPENDIX
Notice To
Employees
Posted
by Order of the
National
Labor Relations Board
An Agency of the
The National Labor Relations
Board has found that we violated Federal labor law and has ordered us to post
and obey this notice.
federal law gives you
the right to
Form, join, or assist a
union
Choose representatives to
bargain with us on your behalf
Act together with other
employees for your benefit and protection
Choose not to engage in any
of these protected activities.
We will not make regressive proposals in terms and conditions of employment during the negotiations without sufficient explanations.
We will not in any like or related manner interfere with, restrain, or coerce employees in the exercise of the rights guaranteed them by Section 7 of the Act.
We will on request, bargain with the Union as the exclusive representative of the employees in the following appropriate unit concerning terms and conditions of employment and, if an understanding is reached, embody the understanding in a signed agreement:
Production and maintenance employees of the Company, excluding office clerical, management and professional employees, and guards and supervisors.
Clarke Manufacturing, Inc.
1 We affirm the judge’s finding that the Respondent violated Sec. 8(a)(5) and (1) by submitting, without a tenable explanation, a regressive proposal to eliminate the collective-bargaining agreement’s longstanding union-security provision. However, we find it unnecessary to pass on the judge’s additional finding that the Respondent violated Sec. 8(a)(5) by submitting a regressive proposal to terminate participation in the Union’s pension fund, as any such finding would be cumulative and would not materially affect the remedy.
2 Effective midnight December 28, 2007, Members Liebman, Schaumber, Kirsanow, and Walsh delegated to Members Liebman, Schaumber, and Kirsanow, as a three-member group, all of the Board’s powers in anticipation of the expiration of the terms of Members Kirsanow and Walsh on December 31, 2007. Pursuant to this delegation, Members Liebman and Schaumber constitute a quorum of the three-member group. As a quorum, they have the authority to issue decisions and orders in unfair labor practice and representation cases. See Sec. 3(b) of the Act.
1 If no exceptions are filed as provided by Sec. 102.46 of the Board’s Rules and Regulations, the findings, conclusions, and recommended Order shall, as provided in Sec. 102.48 of the Rules, be adopted by the Board and all objections to them shall be deemed waived for all purposes.
2 If this Order is
enforced by a judgment of a