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Cerlo Manufacturing Corp. v. National Labor Relations Board

decided: October 24, 1978.


Petition for Review and Cross-Application for Enforcement of an Order of the National Labor Relations Board.

Before Cummings, Pell and Wood, Circuit Judges.

Author: Cummings

Cerlo Manufacturing Corporation has asked us to review a decision by the National Labor Relations Board finding that Cerlo's refusal to bargain with the Union*fn1 violated Sections 8(a)(1) and 8(a)(5) of the National Labor Relations Act (29 U.S.C. §§ 158(a)(1) and 158(a)(5)). 234 NLRB No. 61 (1978). Cerlo claims that the Union's certification under Section 9 of the Act (29 U.S.C. § 159) arising from a rerun representation election on May 12, 1977, was invalid because the prior election of October 6, 1976, in which the Union failed to obtain a majority was erroneously set aside. We agree and therefore deny the requested enforcement of the Board's order requiring Cerlo to bargain with the Union and to furnish it with the names, rates of pay, job classifications, hiring dates and present benefits of all unit employees as a predicate to bargaining.

On October 6, 1976, an election was held to determine whether the Union would be the exclusive bargaining representative for Cerlo's warehouse, production and maintenance employees at its Lockport, Illinois, plant. All 21 eligible voters cast ballots. Eight cast ballots for the Union, nine cast ballots against it, and four ballots were challenged. Three of the four challenges were sustained but the Board did not rule on the fourth since it would not affect the results of the election.

Under the September 2, 1976, Stipulation for Certification upon Consent Election executed by Cerlo and the Union, the Board's Regional Director was to prepare a notice of election and supply copies to the parties for posting.*fn2 No Labor Board notice of election was posted by Cerlo because it received none from the Board. However, on September 2, Cerlo posted a notice listing the date of the election and a description of the collective bargaining unit and also posted a copy of the Stipulation for Certification upon Consent Election listing the election details.

On October 13, 1976, the Union filed with the Regional Director certain objections with respect to the conduct of the election. The ninth objection was that Cerlo did not post an official Labor Board notice of election, "thereby depriving employees of an opportunity to be informed of a forthcoming election."

Commencing on October 19, 1976, Cerlo's counsel interviewed the 21 voters and obtained sworn statements from them to the following effect (with some slight variations):

"I was aware of the date and times during which the election was to be held, and I did, in fact, vote in the election on October 6, 1976. I have reviewed a xerox copy of Form NLRB-707 (7-72) for the October 6, 1976 election at Cerlo. Prior to the day of the election, I was aware of all the rights listed on the NLRB form which I had with respect to the election.

"My vote in the election, as cast, was an expression of my own free choice, and accurately represented my preference concerning collective bargaining representation."

These statements were filed with the Board and show that each voter knew of the rights of employees as listed on the Labor Board's notice of election form.*fn3

On December 3, 1976, the Regional Director issued a report on the challenges and objections, upholding Union objection No. 9 because the Labor Board's notice of election had not been posted. Therefore, he recommended a second election. On April 7, 1977, the Board adopted his findings and recommendations and directed him to conduct a second election, which was held on May 12, 1977. In that election, a majority of the votes (the valid votes counted plus challenged votes) were cast for the Union and it was certified as the exclusive bargaining representative of these employees on May 20, 1977.

On June 9, 1977, Cerlo informed the Union that it would not bargain with the Union nor give it requested bargaining information on the ground that the Board had erroneously set aside the first election which the Union had lost. Therefore, the Union filed charges with the Board and its General Counsel issued a complaint asserting that Cerlo's refusals had violated Sections 8(a) (5) and (1) of the Act. On June 1, 1977, the Board granted its General Counsel's motion for summary judgment because the Union had been certified as the collective bargaining representative of these employees on May 20, 1977, as a result of the May 12, 1977, majority vote in favor of the Union. Consequently, Cerlo was ordered to bargain with the Union and to furnish necessary and relevant bargaining information. Cerlo was also required to post a specified notice.

The question before us is whether the first election should have been set aside because Cerlo did not post a Labor Board notice which it concededly never received. All eligible employees voted at that election and were informed of the details of the election through Cerlo's own September 2 postings. Each voter has sworn that he knew of his rights under the Act at the time of the election. Therefore, there was no interference with laboratory conditions essential for a free election.

We agree with Cerlo that Pegwill Packing Company, 115 NLRB 1151 (1956), is applicable. In Pegwill, as here, the Regional Director had recommended that a union objection be sustained because the employer posted its own notice of the election in the absence of receipt of an official posting notice from the Labor Board. The Board refused to adopt the Regional Director's recommendation because, as here, the employer had adequately apprised the employees of the issues in the election, all in the unit voted, and the ...

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