Nat'l Labor Relations Bd. v. Ingredion Inc.
Nat'l Labor Relations Bd. v. Ingredion Inc.
Opinion
*513 Ingredion, Inc. petitions for review of the Decision and Order of the National Labor Relations Board on the ground that five of the Board's findings, including that Ingredion violated the National Labor Relations Act ("the Act") by dealing directly with employees and denigrating a union in the eyes of employees, are unsupported by substantial evidence. We conclude that Ingredion fails to meet its burden in this regard. We further conclude that Ingredion's contentions that the Board violated its due process rights and improperly imposed a notice-reading remedy lack merit. Accordingly, we deny the petition and grant the Board's cross-application for enforcement of its Order.
I.
Ingredion is a multinational corn starch manufacturing company. In March 2015, it acquired a corn processing plant in Cedar Rapids, Iowa. Approximately 165 of the plant's employees were represented by a local division of the Bakery, Confectionery, Tobacco Workers, and Grain Millers International Union, AFL-CIO ("the Union"). Ingredion recognized the Union and assumed the existing collective bargaining agreement ("CBA"), which was scheduled to expire on August 1, 2015. On June 1, 2015, Ingredion and the Union commenced negotiations for a new CBA. The Union proposed to modify the existing CBA in several ways. Ingredion proposed to start from scratch with an entirely new CBA in both substance and form. The parties had not reached an agreement as of August 18, when Ingredion declared that they were at impasse and presented its "last, best, and final offer." After rejecting the Union's counteroffer of September 10, Ingredion unilaterally implemented the terms of its final offer on September 14, 2015. Ten days later, the Union filed charges with the Board alleging that Ingredion had engaged in numerous unfair labor practices proscribed by Section 8(a)(1) and (5) of the Act,
Section 8(a)(1) and Section 8(a)(5) define unfair labor practices in overlapping terms. Section 8(a)(1) provides that it is "an unfair labor practice for an employer to interfere with, restrain, or coerce employees in the exercise of" their right to bargain collectively.
An administrative law judge determined, after conducting an evidentiary hearing, that Ingredion had committed several violations of Section 8(a). As relevant here, the ALJ found that Ingredion had violated Section 8(a)(1) by "denigrating the Union" in the eyes of employees and by "threatening employees that they would lose their jobs if they went on strike."
Ingredion, Inc.
, No. 18-CA-160654, slip op. at 58-59,
The Board affirmed with respect to all five violations.
*514
Ingredion, Inc.
,
II.
The Board's factual findings are conclusive "if supported by substantial evidence on the record considered as a whole."
1. Direct dealing. The Board found that Ingredion engaged in direct dealing with employees when its chief negotiator, Ken Meadows, first visited the plant on April 6, 2015. Decision at 1 n.1. Ingredion acknowledges that Meadows spoke to at least five employees during that visit but maintains that his "impromptu conversations" with them were too "brief and general" to constitute direct dealing. See Pet'r's Br. 38-41.
Section 9(a) of the Act obligates an employer to treat union officials as "the exclusive representatives of [its] employees."
Under Board precedent, an employer violates Section 8(a)(1) and (5) of the Act if it "attempt[s] to arm itself for upcoming negotiations" by directly "soliciting
*515
the sentiment of the employees on a subject to be discussed at the bargaining table."
Harris-Teeter Super Mkts., Inc.
,
The record shows that less than two months before the start of negotiations with the Union over a new collective bargaining agreement, Meadows spent approximately 25 minutes speaking with employees about subjects that were to be addressed during the negotiations. He criticized the work schedules and health insurance benefits provided by the existing CBA and asked what the employees hoped to see in a new agreement. They expressed interest in a wage raise of 3 to 3.5 percent, an increased pension multiplier, different work schedules, more vacation days, and health insurance coverage for early retirees. Meadows told the employees that any wage increase would be "in the range of 2 to 2.5 percent," that the health insurance policy would be changed, and that the pension multiplier would not be increased because "pensions were a thing of the past and 'would probably be going away.' " ALJ Decision at 7, 37-38 (quoting Hr'g Tr. 61 (Apr. 18, 2016)). Employees who had worked at the plant and been represented by the Union for decades testified that they had never had a manager or supervisor approach them to discuss contract negotiations prior to Ingredion's takeover of the plant.
Ingredion does not dispute that Meadows had direct contact with employees and solicited their views about key terms in soon-to-be-commenced bargaining with the Union. Whether such contact is too brief or informal to constitute a violation of Section 8(a)(1) and (5) is the type of on-the-ground assessment that "implicates [the Board's] expertise in labor relations,"
United Servs.
,
2. Denigration of the Union.
The Board found that one of Ingredion's managers unlawfully denigrated the Union in the eyes of employees by falsely representing that it was unwilling to negotiate on certain subjects.
See
Decision
at 1 n.1. Ingredion contends that the manager did not violate the Act because he made only "a non-actionable statement of opinion, not a 'threat of reprisal or force or promise of benefit.' " Pet'r's Br. 44 (quoting
NLRB v. Gissel Packing Co.
,
Section 8(a)(1) of the Act makes it unlawful for an employer to "interfere with, restrain, or coerce employees" with respect to collective bargaining.
The Board has held that an employer violates Section 8(a)(1) by "misrepresent[ing] the [u]nion's bargaining positions" in a way that "tends to undermine" employee support for the union.
Miller Waste Mills, Inc.
,
The record shows that Ingredion's manager told an employee in early July not to sign his retirement papers because "there was a better contract coming" and he "would like the retirement that [Ingredion] was going to propose."
ALJ Decision
at 30. The manager also told the employee not to "let a few people in the union body sway what [he] want[ed] to do."
The record further shows that shortly after speaking with the first employee, this manager approached another employee who was considering retirement and told him to contact his union representatives and "have them get a hold of the company and start negotiating."
Ingredion's contention that the manager's statements were non-threatening, see Pet'r's Br. 44, misunderstands the nature of its violation. The Board did not find that the statements were threatening, but rather that they were misleading. See Decision at 1 n.1. The record evidence supports the Board's finding that Ingredion violated Section 8(a)(1) by misrepresenting the Union's position in a way that tended to cause employees to lose faith in the Union.
3. Impasse. The Board found that Ingredion violated Section 8(a)(1) and (5) of the Act by unilaterally implementing new terms and conditions of employment when "the parties had not reached an overall impasse in bargaining." Id. at 1. Ingredion contends that it bargained with the Union to a valid impasse over a single issue, namely the format of the new CBA. See Pet'r's Br. 20-22. Here, Ingredion simply ignores record evidence to the contrary.
It is well established that "an employer commits an unfair labor practice if, without bargaining to impasse, it effects
*517
a unilateral change of an existing term or condition of employment."
Litton Fin. Printing Div. v. NLRB
,
The record shows that although the Union's proposals used the format of the existing CBA and Ingredion's proposals used a different format, this did not prevent the parties from proceeding to negotiate and reach agreement on some material issues. For example, the Union added to its June 29 proposal certain provisions initially proposed by Ingredion regarding union elections, seniority, and paid time off.
Compare
Union Proposal of June 29, art. II, §§ 2, 4; art. V, § 1; art. VIII, § 3,
with
Ingredion Proposal of June 1, art. III, §§ 1, 3; art. V, § 1; art. XIV, § 4. Similarly, Ingredion added to its July 28 and 29 proposals certain elements of the existing CBA that the Union wanted to retain.
Compare
Ingredion Proposal of July 28, art. XX, § 3,
and
Ingredion Proposal of July 29, art. XI, §§ 5-6,
with
CBA art. IV, §§ 11-12; art. X, § 1(g). In addition, the parties created and exchanged summaries that compared the substantive terms of their proposals despite the differences in format. Moreover, at the time Ingredion declared impasse, major economic issues had received little attention from the parties: Ingredion had made only a single wage proposal, the Union had not made "any specific proposal regarding wages," and there had "been relatively little discussion regarding other important economic issues such as health insurance and retirement benefits."
ALJ Decision
at 48. For that reason, the Board concluded that "further discussion of the substantive terms may well have resulted in the parties compromising with respect to the format and language of a new agreement."
4. Delay in providing requested information.
Ingredion promptly responded to most of the Union's requests for information but took eleven weeks to provide three items of pension-related information. The Board found that this delay was unreasonable and therefore violated Section 8(a)(1) and (5).
See
"The duty to bargain collectively" imposed by Section 8(a)(5) "includes a duty to provide relevant information needed by a labor union for the proper performance of its duties as the employees' bargaining representative."
Detroit Edison Co. v. NLRB
,
The record shows that Ingredion's contemporaneous explanation for the delay differs from the explanation it presented to the court. Meadows did not tell the Union that the information would be difficult or time-consuming to retrieve,
see
Pet'r's Br. 48, 50, but rather that Ingredion might not provide pension-related information because it intended to discontinue the existing pension plan.
See
ALJ Decision
at 12. This was not a valid reason for delaying compliance with an information request; regardless of what Ingredion intended, it had an obligation to provide the information in a timely manner because it was relevant to
the Union's
proposals.
See
Country Ford Trucks, Inc. v. NLRB
,
5. Threats of job loss. The Board found that Ingredion violated Section 8(a)(1) of the Act when one of its managers told employees discussing a potential strike, "You boys, you might want to think long and hard about walking out on these people. They've got the deep pockets and lots of plants that make the same thing you do. You may not get back in the door if you go out." ALJ Decision at 32 (quoting Hr'g Tr. 38 (Apr. 18, 2016)). Ingredion characterizes this as "a truthful statement that one potential consequence of a strike is job loss." Pet'r's Br. 47.
Although an employer may communicate "what [it] reasonably believes will be the likely economic consequences" of a labor strike,
Gissel Packing
,
The Board reasonably found that the statement was not an "honest forecast[ ]" based on "economic realities,"
Gissel Packing
,
To the extent Ingredion's challenge morphs into a due process objection,
*519
this too fails. Ingredion maintains it did not have a meaningful opportunity to respond to the unlawful-threats allegation because it was added to the complaint just two days before the administrative hearing.
See
Pet'r's Br. 51-52. Yet the record shows Ingredion received a "full and fair opportunity to litigate the matter," and in any event Ingredion points to no prejudice.
See
Davis Supermarkets, Inc. v. NLRB
,
III.
Ingredion objects to the Board's remedial Order on two grounds. First, it maintains it was denied due process by the provision rescinding all discipline imposed pursuant to unilaterally implemented terms and conditions because the complaint did not specifically request such a remedy. See Pet'r's Br. 53-54. This is meritless. Ingredion was on notice that the remedy was in play because the complaint asked the Board to compensate employees "for any losses they have suffered as a result of the unilateral implementation" of new terms and conditions. Compl. 8.
Second, Ingredion objects to the provision directing that Meadows read a notice describing Ingredion's legal obligations to assembled employees "or permit a Board agent, in the presence of Meadows and other corporate officials responsible for labor relations, to read the notice to employees,"
Order
at 3. The Board's broad discretion to fashion remedies for violations of the Act,
see, e.g.
,
Fibreboard Paper Prods. Corp. v. NLRB
,
Accordingly, we deny the petition for review and grant the Board's cross-application for enforcement of its Order.
Reference
- Full Case Name
- NATIONAL LABOR RELATIONS BOARD, Petitioner v. INGREDION INCORPORATED, D/B/A Penford Products Co., Respondent Local 100G, Bakery, Confectionery, Tobacco Workers and Grain Millers International Union, AFL-CIO, CLC, Intervenor
- Cited By
- 15 cases
- Status
- Published