Opinion ID: 385886
Heading Depth: 2
Heading Rank: 4

Heading: granting benefits prior to the election

Text: 36 On July 26, 1976, well before the unionization drive began, the Company formulated a new program of wage reviews, which was to take effect in September of that year. The program called for regular reviews of all employees at various intervals, depending upon the length of employment and job description. The Board did not find that this program violated the Act. However, the Board found that the Company deviated from the plan in such a way as to grant an inordinate number of wage increases and promotions in the two days immediately preceding the election. Twenty-eight employees, or fifteen percent of the bargaining unit, received wage increases on January 18 or 19, 1977. Eleven of the wage increases were granted three or more weeks later than the time prescribed in the wage review plan timetable. Six of the increases were granted two or more weeks earlier than called for in the timetable. The Board found that these wage increases were saved to have the maximum impact on the election results and that, therefore, they constituted unfair labor practices. 37 Granting a regularly scheduled wage increase does not become an unfair labor practice merely because a union representation election is pending. Oshman's Sporting Goods, Inc. v. NLRB, 586 F.2d 699, 705 (9th Cir. 1978); Allen v. NLRB, 561 F.2d 976, 981 (D.C.Cir.1977); NLRB v. Styletek, Division of Pandel-Bradford, Inc., 520 F.2d 275, 280 (1st Cir. 1975); NLRB v. Gruber's Super Market, Inc., 501 F.2d 697, 701 (7th Cir. 1974). However, § 8(a)(1) prohibits conduct immediately favorable to employees which is undertaken with the express purpose of impinging upon their freedom of choice for or against unionization and is reasonably calculated to have that effect. NLRB v. Exchange Parts Co., 375 U.S. 405, 409, 84 S.Ct. 457, 460, 11 L.Ed.2d 435 (1964). Accord, NLRB v. Olympic Medical Corp., 608 F.2d 762, 764 (9th Cir. 1979). The motive of the employer is critical in determining whether the granting of a wage increase prior to an election is an unfair labor practice. An important indicator of that motive is whether there has been a change from the status quo. See Free-Flow Packaging Corp. v. NLRB, 566 F.2d 1124, 1129 (9th Cir. 1978). Moreover, the law is well established that there is a presumption of illegal motive adhering to wage increases granted prior to an election. Id.; NLRB v. Newman-Green, Inc., 401 F.2d 1, 3 (7th Cir. 1968). As one court has observed: 38 The Board has long required employers to justify the timing of benefits conferred while an election is actually pending. Justifying the timing is different from merely justifying the benefits generally. Wage increases and associated benefits may be well warranted for business reasons; still the Board is under no duty to permit them to be husbanded until right before an election and sprung on the employees in a manner calculated to influence the employees' choice. 39 NLRB v. Styletek, Division of Pandel-Bradford, Inc., 520 F.2d at 280. 40 In this case the large percentage of the bargaining unit that received wage increases, coupled with the several weeks variation from the Company's own schedule for those increases, coupled with the extremely close proximity to the election provides ample evidence to support the Board's conclusion that the Company intended the wage increases to influence voting in the election. The Company's explanation that the fact the wage increases occurred in the two days prior to the election was merely coincidental is incredible. Therefore, the Court affirms the determination of the Board that these wage increases constituted unfair labor practices.