Opinion ID: 717843
Heading Depth: 2
Heading Rank: 4

Heading: AutoZone's Withholding of Employee Pay Increase

Text: 47 An employer violates section 8(a)(1) of the Act by withholding a previously planned, promised, or scheduled employee benefit during an attempt at union organization. Southern Moldings, Inc. v. NLRB, 715 F.2d 1069, 1074 (6th Cir.1983). Similarly, withholding of a promised benefit can violate section 8(a)(3) of the Act, particularly where the employer's action was motivated by a discriminatory intent to discourage employees from engaging in organizational activities. See Turnbull Cone Baking Co. v. NLRB, 778 F.2d 292 (6th Cir.1985), cert. denied, 476 U.S. 1159 (1986); NLRB v. Shelby Memorial Hosp. Ass'n, 1 F.3d 550, 557-58 (7th Cir.1993); Gupta Permold Corp., 289 NLRB 1234, 1234-1235 (1988). Although an employer commits an unfair labor practice by engaging in protected activities and gives pretextual reasons for the discharge, the employer's anti-union animus must contribute to the discharge for the actions to be unlawful. Turnbull, 778 F.2d at 296. 48 In the instant case, the record fully supports the Board's finding that AutoZone withheld a planned and expected pay adjustment it would have otherwise granted based upon the relevant factors indicating that employees were due for a raise. Moreover, the Board found and the record substantially supports that AutoZone discontinued its pay adjustment process and postponed a pay increase at Greenville because of the Union's petition and the Union activities of its employees. 49 The record reflects that a wage adjustment at the Greenville Distribution Center was anticipated as a part of AutoZone's wage adjustment process for January 1993 and that AutoZone communicated to its employees its intention to grant a wage adjustment. AutoZone had followed a practice of granting an annual adjustment in January to employees at each of its distribution centers where local wage surveys indicated that an adjustment was needed in order to remain competitive in the local labor market. In addition, Vice President Roberts received a preliminary report in November that showed an increase in salary would be required to keep the center competitive and told employees in December that he expected the raise to be between 4 and 5%. On January 11, 1993, all reports and wage survey data were available, and adjustments were implemented in the centers excluding the Greenville facility. Under its established policy, the data would have warranted an increase of 4 to 5 percent. After halting its pay adjustment process for the Greenville Distribution Center, Vice President Roberts announced in his January 22 speech that his earlier forecasts had been tentative, that the expected wage adjustment was being withheld, and that the filing of the Union's representation was responsible. 50 In his speech, Roberts stated the pay increase was withheld because it would have been illegal. The ALJ discredited this testimony. The function of the ALJ is to resolve credibility problems, and this Court will not normally disturb the credibility assessments of the Board or the ... [ALJ] who has observed the demeanor of the witnesses. NLRB v. Norbar, Inc., 752 F.2d 235, 239 (6th Cir.1985). Accordingly, credibility determinations affirmed by the Board must be upheld on review unless they are shown to be unreasonable. NLRB v. Baja's Place, 733 F.2d 416, 421 (6th Cir.1984). Here, AutoZone has failed to show any basis for disturbing the credibility determinations by the ALJ, all of which were affirmed by the Board. 51 As the Board noted and as supported by the record, Roberts exploited his decision and the resulting wage adjustment denial, using it as a weapon during his January 22 speech. He blamed the Union for tying AutoZone's hands and strongly implied that a vote against the Union would restore AutoZone's freedom to grant the pay increase. Intensifying this exploitation, Roberts falsely told employees after the speech that the pay increases taking effect at the other distribution centers averaged from 12 to 15 percent. As the ALJ reasonably inferred, this exaggeration of the average increases at the other distribution centers was calculated to maximize the anger of the Greenville employees toward the Union. 52 AutoZone argues that the employees had no right to expect an increase because its history had been erratic in both timing and amount. This contention is without merit and was properly rejected by the Board. First, the record shows that there had been an annual average adjustment at Greenville in 1989, 1990, and 1991 and that there was a company wide practice of granting adjustments at all of its distribution centers in January. In addition, the ALJ noted and the record supports that AutoZone led its employees to believe that some kind of wage increase would be forthcoming in 1993. 53 In sum, the record supports the Board's finding that AutoZone suspended its anticipated wage adjustment procedure because the employees had assisted the Union and because AutoZone wanted to postpone the pay increases in order to help defeat the Union at the election.