Court Opinion

ID: 9467543
Source: CourtListenerOpinion
Date Created: 2023-08-05 01:51:13.727833+00
Date Added: 2024-06-11T17:40:23.944068
License: Public Domain

GIBBONS, Circuit Judge,
dissenting:
It is no secret that at least a significant minority of the members of this court believe that the Supreme Court in NLRB v. Gissel Packing Co., 395 U.S. 575, 89 S.Ct. 1918, 23 L.Ed.2d 547 (1969), erred in interpreting the National Labor Relations Act to permit the National Labor Relations Board to enter a bargaining order as a remedy for unfair labor practices committed in the course of an organizing campaign. Nor is it any secret that those judges who are uncomfortable with the Gissel construction of the statute have been signalling the Board vigorously that bargaining orders are unwelcome in this circuit. See, e. g., NLRB v. Armcor Industries, Inc., 535 F.2d 239 (3d Cir. 1976); Hedstrom Co. v. NLRB (Hedstrom I), 558 F.2d 1137, 1148 (3d Cir. 1977); NLRB v. Craw, 565 F.2d 1267 (3d Cir. 1977); NLRB v. Garry Mfg. Co., 630 F.2d 934, 946 (3d Cir. 1980) (Weis, J., dissenting); Hedstrom Co. v. NLRB, 629 F.2d 305, 319 (3d Cir. 1980) (en banc) (Rosenn, J., dissenting); NLRB v. Permanent Label Corp., No. 80-1617 (3d Cir., filed Jan. 8, 1981). At the same time the Board is receiving from a different group of judges on this court a quite different signal. See, e. g., NLRB v. Armcor Industries, Inc., 535 F.2d at 246 (Gibbons, J., dissenting); Kenworth Trucks of Philadelphia v. NLRB, 580 F.2d 55 (3d Cir. 1978); NLRB v. Daybreak Lodge Nursing and Convalescent Home, 585 F.2d 79 (3d Cir. 1978); NLRB v. Garry Mfg. Co., 630 F.2d 934 (opinion of the court); Hedstrom Co. v. NLRB, 629 F.2d 305 (opinion of the court); NLRB v. Permanent La*471bel Corp., No. 80-1617, slip op. at 28 (Seitz, C. J., dissenting). Those different signals are that we acknowledge the primacy of the Supreme Court in interpreting the Act, at least until Congress speaks, that we acknowledge the primacy of the Board’s role as a fact finder, and that if the Board decides to enter a Gissel order we will be satisfied with a statement of reasons reasonably identifying for us the basis, among several permissible bases, for choosing that remedy.
Until this case the guerilla warfare against Gissel orders has been carried out by insisting that the Board’s opinion writing is so opaque that we cannot understand it, and remanding. See NLRB v. Permanent Label Corp., No. 80-1617, slip op. at 28 (Seitz, C. J., dissenting). With the present majority a new weapon is resorted to. The majority simply substitutes its fact finding for that of the Board. Perhaps the new tactic reflects a conclusion that finally the Board has devised a formula for stating its reasons satisfactorily. I hope so. The Board’s statement follows:
Respondent’s unfair labor practices are serious in nature, and began on the day the Union demanded recognition. Its entire course of conduct, which included a promise of a wage increase, promises of better benefits, and solicitation of and a promise to remedy grievances, was designed to impress upon the employees the fact that they did not need a union to obtain satisfaction of their demands.5
Under the principles set forth in N. L. R. B. v. Gissel Packing Company, Inc., 395 U.S. 575, 89 S.Ct. 1918, 23 L.Ed.2d 547 (1969), a bargaining order is appropriate where a union’s majority is established by cards and the nature and extent of the employer’s unfair labor practices render unlikely a free choice by the employees in our election. As previously set forth, Respondent’s unfair labor practices were clearly designed to undermine the Union’s majority status. Here, the promises of a wage increase, increased benefits, and new approaches to resolve employee grievances, coupled with the threat that the organizational campaign would be futile, result in giving the employees much if not all of what they were seeking through union representation.
In Honolulu Sporting Goods Co., Ltd. a subsidiary of Zale Corporation, 239 NLRB No. 173 (1979), the Board quoted with approval the following statement from Tower Enterprises, Inc., d/b/a Tower Records, 182 NLRB 382, 387 (1970), which is directly applicable:
It is difficult to conceive of conduct more likely to convince employees that with an important part of what they were seeking in hand union representation might no longer be needed. An employer may have the right to persuade the employees that representation is not in their best interests, but it does not have the right to threaten them or confer benefits on them which are designed to influence the employees against choosing a representative. When, as here, an employer does so, free choice in a subsequent election becomes a matter of speculation, so long as the effects of the interference remain unremedied.
Accordingly, we find that a bargaining order is necessary and appropriate to protect the majority sentiment expressed through authorization cards and otherwise to remedy the violations committed.6
We find that Respondent’s bargaining obligation arose on October 24, 1978, the date of the Union’s demand and on which it achieved majority status, inasmuch as Respondent commenced its course of unlawful conduct on or about that date. Trading Port, Inc., 219 NLRB 298 (1975).
For me this statement of reasons is adequate.
*472Turning to the factual bases for the Board’s findings of unfair labor practices, I can do no better than to quote them:
We agree with the Administrative Law Judge that Respondent violated Section 8(a)(1) of the Act by interrogating an employee concerning employee interest in and activity on behalf of the Union, promising employees a wage increase and health insurance and profit-sharing benefits to discourage their interest in or activity on behalf of the Union, and threatening an employee that the employees’ activity on behalf of the Union would be futile.3
The Administrative Law Judge recommended dismissal of the complaint allegation that Respondent violated Section 8(a)(1) of the Act when President Katz, in a meeting with the employees the week following the Union’s demand for recognition, solicited and impliedly promised to remedy employee grievances. We find merit to the General Counsel’s exception to this recommendation.
In concluding that there was no solicitation of grievances, the Administrative Law Judge apparently ignored the uncontroverted testimony of three employees, Ann Anderson, Nancy Green, and Evelyn Wirhgt [sic], that Katz stated at the meeting that he wanted the employees to bring their problems to him. Thus, Anderson testified that “Katz said he hoped to settle our disputes among ourselves” and “to try to resolve our problems with him, to come to him and get this settled that way.” Similarly, Green testified that “Katz said he didn’t realize all our problems we had, or were having, and he felt we could handle this problem between us,” and Wright testified that “Katz said he hoped he could work with us better in the future, and he told us that he hoped he could settle things, without an outside organization.” Indeed, Katz testified himself, on direct examination, that he said that he wanted the employees to deal directly with him and “I also told them that in the past, I probably haven’t heard them out.... I mean just haven’t been around enough to hear what’s happened, or what should be happening.” On cross-examination, he admitted that he told the employees that they could work out their problems better without a third party and that they should bring their problems to him so that they could try to do so.
The Administrative Law Judge did not make any factual findings based on the testimony of these witnesses as to this issue, but the testimony of all four is consistent and mutually corroborative. In addition, Katz’ concession that he told the employees to bring their problems to him is clearly an admission against interest. Based on this testimony,4 we find that Katz solicited employee grievances and in so doing impliedly promised to remedy them. Reliance Electric Company, Madison Plant Mechanical Drives Division, 191 NLRB 44, 46 (1971).
In making this finding, and in adopting the Administrative Law Judge’s findings that Katz and Supervisor Barbara Weiler unlawfully promised employees improved benefits to dissuade them from their union activity, we find no merit to Respondent’s contention that Weiler and Katz rebutted any inference of promises by stating in their conversations with employees that they could not make such promises. The Administrative Law Judge made no finding regarding Weiler’s testimony that she stated in her telephone calls to two employees, in which *473she was found to have made promises of increased wages and improved benefits, that Katz could make no promises. Nor 'did the Administrative Law Judge make any finding either on Katz’ testimony on direct examination that during his October 30 speech to the employees he had told the employees he could make no promises, or on Katz’ concession on cross-examination that he did not explain to the employees his instructions from his attorney not to make promises. We find it irrelevant in the circumstances of this case whether Weiler or Katz denied the ability to make promises, for as stated in Michigan Products, Inc., 236 NLRB No. 147, ALJD, si. op., p. 6 (1978): “It is immaterial that an employer professes that he cannot make any promises, if in fact he expressly or impliedly indicates that specific benefits will be granted.” See also Montgomery Ward & Co., Incorporated, 228 NLRB 750, 757 (1977).
Thus, we have found that Respondent violated Section 8(a)(1) of the Act by interrogating employees concerning union activities; threatening employees that the Union’s organizational campaign would be futile; promising to increase wages and benefits; and soliciting employee grievances. However, contrary to the Administrative Law Judge, we find that Respondent’s unlawful conduct precludes the holding of a fair election, and warrants the issuance of a bargaining order.
The Union demanded recognition on October 24, 1978. That afternoon, Respondent interrogated a union proponent, and threatened that the organizational campaign would be blocked. True to its word, Respondent announced several days later that it would grant the employees a substantial wage increase. Then, on October 30, Respondent announced that it had been considering a medical insurance plan and a profit-sharing plan. Furthermore, during the October 30 meeting, Respondent’s president told the employees that he hoped to settle the problems
“without an outside organization.” As previously set forth, we find that, by this latter conduct, Respondent violated Section 8(a)(1) by soliciting and impliedly promising to remedy employee grievances.
A comparison of the well written majority opinion with that of the Board discloses that the majority, looking at the same record evidence, has chosen to draw inferences from that evidence different from those the Board drew. Our scope of review under the National Labor Relations Act does not permit such action. See 29 U.S.C. § 160(e) (1976); Universal Camera Corp. v. NLRB, 340 U.S. 474, 71 S.Ct. 456, 95 L.Ed. 456 (1951); Tri-State Truck Service, Inc. v. NLRB, 616 F.2d 65, 72 (3d Cir. 1980) (Gibbons, J., dissenting).
Conscientious Board members reading our opinions from Armcor Industries in 1976 to Permanent Label in 1981 must be puzzled about what they should attempt to do in a Gissel bargaining order case to satisfy us. The answer to their puzzlement, I fear, is that for the judges uncomfortable with the Gissel interpretation of the statute nothing the Board does will be likely to appear satisfactory. I do not mean to suggest that discomfort over Gissel orders is an unreasonable judicial posture. We are all well aware that in recent years labor unions have been winning far fewer contested elections than heretofore. A Gissel order insulates a union from the hazards of an election, and arguably tilts the scale too far in the union’s favor. But the Supreme Court interpreted the Act in the Gissel cases to give the Board that authority, and Congress has not chosen to react. If I were a congressman requested to vote on overruling Gissel, I am not sure how I would vote. The opponents of Gissel orders point out that they tend to undermine secret balloting in the choice of bargaining representatives. On the other hand, the keystone in the arch of federal labor policy is collective bargaining, which cannot take place until a bargaining representative has been recog*474nized. A card majority is a legitimate means for such recognition. NLRB v. Atlas Lumber Company, 611 F.2d 26 (3d Cir. 1979); Eisenberg v. Hartz Mountain Corp., 519 F.2d 138, 143 (3d Cir. 1975); Suburban Transit Corp. v. NLRB, 499 F.2d 78, 82-83, 85-86 (3d Cir.), cert. denied, 419 U.S. 1089, 95 S.Ct. 681, 42 L.Ed.2d 682 (1974); NLRB v. Air Master Corp., 339 F.2d 553, 556-57 (3d Cir. 1964). If on the basis of a card majority a collective bargaining agreement resulted, we would not be overly concerned about the undermining of secret balloting in the choice of bargaining representatives. Thus one has to take at somewhat less than face value the oft-repeated concern that Gissei orders are inimical to the interests of employees. The real concern is for employers, but against that concern must be weighed the strong federal policy in favor of the formation of collective bargaining relationships. See 29 U.S.C. § 151 (1976).1 From that perspective Gissei orders do not look quite so threatening. In any event, it is not the role of an intermediate appellate court to substitute its balancing of the competing policies for that of the legislature, in the guise of requiring statements of reasons or of substituting its factual inferences for those made by the Board.
I would enforce the Board’s order.

 Teledyne Dental Products Corp., 210 NLRB 435 (1974).

 Honolulu Sporting Goods Co., Ltd., supra. See also Crago Gear & Machine Works, 236 NLRB No. 65 (1978); National Care & Convalescent Industries, Inc. d/b/a Elmwood Nursing Home, 238 NLRB No. 40 (1978).

 The Administrative Law Judge further found that Respondent did not violate Sec. 8(a)(1) of the Act by changing its method of calculating gross pay for income and social security tax purposes or by assignments of allegedly more arduous work. No exceptions were taken to these findings.

 It is well settled that the Board has the power to make findings of fact based on the uncontradicted testimony of witnesses whose testimony has been neither credited nor discredited by an administrative law judge. See Retail Clerks International Association, AFL-CIO, Local 219 (National Food Stores, Inc.), 134 NLRB 1680, 1683 (1961).

. As stated by Congress in 1935:
Experience has proved that protection by law of the right of employees to organize and bargain collectively safeguards commerce from injury, impairment, or interruption, and promotes the flow of commerce by removing certain recognized sources of industrial strife and unrest, by encouraging practices fundamental to the friendly adjustment of industrial disputes arising out of differences as to wages, hours, or other working conditions, and by restoring equality of bargaining power between employers and employees.
29 U.S.C. § 151 (1976).