Earle Industries, Inc. v. National Labor Relations Board , 75 F.3d 400 ( 1996 )


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  •           ___________
    No. 94-3843
    ___________
    Earle Industries, Inc.,         *
    *
    Petitioner,      *
    *
    v.                         *
    *
    National Labor Relations Board, *     On Petition for Review of
    *     an Order of the National
    Respondent,      *     Labor Relations Board.
    *
    Southwest Regional Joint Board, *
    Amalgamated Clothing and        *
    Textile Workers Union, AFL-CIO, *
    CLC,                            *
    *
    Intervenor.      *
    ___________
    No. 95-1033
    ___________
    Earle Industries, Inc.,         *
    *
    Respondent, *
    *
    v.                         *
    *
    National Labor Relations Board, *     On Petition for Enforcement
    *     of an Order of the National
    Petitioner, *      Labor Relations Board.
    *
    Southwest Regional Joint Board, *
    Amalgamated Clothing and        *
    Textile Workers Union, AFL-CIO, *
    CLC,                            *
    *
    Intervenor. *
    ___________
    Submitted:   June 14, 1995
    Filed: January 31, 1996
    ___________
    Before WOLLMAN, FLOYD R. GIBSON and JOHN R. GIBSON, Circuit Judges.
    ___________
    JOHN R. GIBSON, Circuit Judge.
    Earle Industries, Inc. petitions for review of a National
    Labor Relations Board order finding that Earle Industries committed
    an unfair labor practice by firing Earley Mae Wallace.          The
    administrative law judge found that Earle Industries fired Wallace
    for insubordination and dishonesty.     However, the Board ordered
    Earle Industries to reinstate Wallace with backpay, despite the
    Board's adoption of the ALJ's credibility findings.       The Board
    cross-petitions for enforcement. We grant the petition for review
    and deny enforcement of the order.
    At the time she was fired, Wallace had worked for Earle
    Industries for sixteen years. She had advocated unionization of
    the company's workers for many years. The company had fired her
    twice, first in 1977 and then in 1978. It reinstated her the first
    time in settlement of an unfair labor practice charge, and the
    second time as a result of a National Labor Relations Board Order.
    See Earle Indus. Inc., 
    260 N.L.R.B. 1128
    (1982).
    On October 1, 1991, in the midst of a union1 organizing
    campaign at Earle Industries, the Reverend Jesse Jackson came to
    the plant to make a lunchtime speech in support of the union.2 A
    1
    The rally was held by the Amalgamated Clothing & Textile
    Workers' Union, Southwest Regional Joint Board, which intervened
    in this case.
    2
    We recounted the story of the rally and subsequent events
    in greater detail in NLRB v. Earle Indus., Inc., 
    999 F.2d 1268
    (8th Cir. 1993) (Earle I). In Earle I, we upheld the Board's
    determination that any union misconduct did not materially affect
    election results. Earle I did not involve Wallace's firing.
    -2-
    television news crew captured the speech and the ensuing events on
    videotape. The tape is in the record before us, and was the basis
    for much of the detail in the ALJ's findings.
    Jackson delivered his speech from the back of a flatbed truck
    driven onto company property by a union representative.      Local
    police arrived on the scene and informed the union organizers that
    they were trespassing on company property and asked them to leave.
    The organizers did not leave voluntarily, so police arrested two
    union representatives and put them in the back of a police car.
    Police also drove the flatbed truck off company property.
    Jackson then learned that the two union men were under arrest
    and went to visit them at the police car, assuring them that he
    would get them released.    The videotape followed Jackson as he
    walked toward the plant, surrounded by a crowd of admirers.
    Jackson and the crowd went to the employees' plant entrance. Above
    the door was a sign saying, "Employees Only."
    After Jackson entered the plant, Wallace walked to the front
    of the entourage and led the way toward the office. The personnel
    manager, Gary Smith, stepped up to bar Jackson's way. Smith told
    Jackson he was trespassing and asked Jackson to leave the plant and
    return by the visitor's entrance in the front of the plant. As
    this conversation was taking place, Wallace urged Jackson to walk
    past Smith, saying "Front door locked, come on." Smith said to
    her, "No ma'am."    Wallace repeated her statement, and said to
    Jackson, "Right over there," gesturing toward the office. Jackson
    calmly told Smith he would go back out to the visitor's entrance if
    Smith would go with him, which Smith refused to do. Jackson and
    Smith repeated this exchange several times. Unable to turn Jackson
    back, Smith gave up and retreated to the office, as the crowd
    cheered.
    Jackson, surrounded by the crowd and news cameras, walked on
    -3-
    through the plant to vice president Peter Felsenthal's office.
    Jackson left the plant after speaking with police inside, but
    Felsenthal did agree to meet with Jackson. Jackson then entered
    the plant through the visitor's entrance.
    Felsenthal obtained a copy of the videotape of Jackson's
    confrontation with Smith from the television station that recorded
    it. After viewing the tape and seeing Wallace's prominent role in
    the Smith-Jackson confrontation, Felsenthal decided to call Wallace
    in for questioning. On October 7, Felsenthal interviewed Wallace,
    with Smith and supervisor Louise Eskridge present. Unbeknownst to
    Wallace, Felsenthal audiotaped the meeting.       Wallace at first
    refused to answer questions and demanded an attorney. Felsenthal
    offered to let Wallace have a fellow worker with her in the
    interview, but Wallace still repeatedly declined to answer his
    questions. After Wallace said there was no point in questioning
    her, since Felsenthal had seen the tape of the incident, Felsenthal
    said: "I saw what was on T.V. and that was it. I don't know what
    went on."   In fact, Felsenthal had already seen the uncut news
    station video, as well as the excerpts that appeared on the news.
    The interview continued until Wallace finally began making
    statements. Wallace eventually told Felsenthal that she "did not
    indicate to anybody that the front door was locked" and did not
    "motion or encourage" Jackson in his progress through the plant.
    Earle Industries first suspended, then fired Wallace, citing
    her conduct on October 1 and her failure to cooperate with the
    company investigation on October 7.
    The Union filed an unfair labor practice charge against Earle
    Industries, alleging that, in firing Wallace, the company violated
    sections 8(a)(1) and (3) of the National Labor Relations Act.3
    3
    Sections 8(a)(1) and (3), codified at 29 U.S.C. § 158
    (1988), provide:
    -4-
    Wallace filed an affidavit in which she described the October 1
    incident. In the affidavit Wallace said that when Smith stopped
    Jackson she had said, "[L]et's clock," and motioned to the other
    workers to go to the time clock. She explained:
    During the time that Jackson was in the plant talking to
    Smith, I didn't have anything to do with what Smith and
    Jackson were talking about--I was telling the girls to
    "come on" to the clock--and I was motioning them to come-
    -kind of whispering "don't forget to clock" at the same
    time--they were talking.       I can't remember saying
    anything about a door being locked while Jackson was
    coming down through the aisle in the plant. . . . I
    don't have anything to do with the front door at all--the
    front door is usually locked.      . . .    I was saying
    "clock" not "lock."
    After a hearing the administrative law judge recommended that
    the Union's complaint be dismissed.     The ALJ held that Wallace
    forfeited the protection of the NLRA by her conduct. Specifically,
    the ALJ found that Wallace intentionally lied during Smith's
    confrontation with Jackson:
    While it might be argued that the first time Wallace made
    this statement ["front door locked"] it was spontaneous,
    I do not believe that to be the case.        There is no
    evidence of record that the front door was locked. It is
    normally left unlocked at this time of day. And there is
    evidence that it was not locked on October 1.        When
    Wallace said that it was locked the first time it was a
    misstatement. . . . Wallace was a totally unreliable
    (a) It shall be an unfair labor practice for an
    employer--
    (1) to interfere with, restrain, or coerce
    employees in the exercise of the rights guaranteed in
    section 157 of this title . . .
    (3) by discrimination in regard to hire or tenure
    of employment or any term or condition of employment to
    encourage or discourage membership in any labor
    organization. . . .
    -5-
    witness. She lied before in a Board proceeding. She
    lied in her affidavit to the Board in this proceeding.
    And she lied while testifying herein.     Wallace wanted
    Jackson   to   continue   walking   through   the   plant
    notwithstanding the fact that it would have been obvious
    to a reasonable person that Gary Smith, Respondent's
    personnel manager, by what he said and by his body
    language, wanted Jackson to go back out the employee
    entrance. . . . Jackson, relying on what Wallace was
    saying, apparently believed he would be locked out of the
    plant if they locked the employee entrance behind him.
    . . .    But for Wallace's statements, I believe that
    Jackson would have gone, as he subsequently did, to the
    front door.   Wallace's first statement that the front
    door was locked was not a spontaneous or impulsive
    statement.    Wallace impressed me as being a very
    calculating individual. This was a calculated statement.
    As she subsequently demonstrated, no matter what Smith
    said or did Wallace wanted Jackson to proceed through the
    plant and this was her way of achieving that.
    Earle Indus., Inc., 
    315 N.L.R.B. 310
    , 347-48 (1994). The ALJ made
    specific findings that Earle Industries fired Wallace because of
    her insubordination and dishonesty, rather than because of her
    union activity:
    Was Wallace terminated because she was insubordinate and
    she lied about it or was she terminated because of her
    union activity? In my opinion it is the former. . . .
    I believe that Respondent has shown that it would have
    terminated Wallace absent her union activity and any
    concerted protected activity she may have engaged in.
    
    Id. at 348-49.
    Despite the ALJ's recommendation, the Board found Earle
    Industries had committed an unfair labor practice, issued a cease
    and desist order, and ordered Earle Industries to reinstate Wallace
    with backpay. 
    Id. at 315-16.
    Significantly, the Board adopted the ALJ's credibility
    determinations. 
    Id. at 310
    n.1. The Board did not disagree with
    the ALJ that Wallace was insubordinate and dishonest. 
    Id. at 312
    -6-
    n.11, 313-35. Rather, the Board used a different legal analysis
    than the ALJ.     The ALJ held that Wallace had forfeited the
    protection of section 7 of the NLRA4 by her insubordination and
    dishonesty. 
    Id. at 348.
    The ALJ then used the Wright Line5 test
    for mixed motive firings. 
    Id. at 349.
    Under Wright Line, if an
    employer is accused of firing an employee because of the employee's
    union activities, the General Counsel must show that the employer
    was motivated by anti-union animus.     The burden is then on the
    employer, which can exonerate itself by showing that it would have
    fired the employee for a legitimate, nondiscriminatory reason
    regardless of the employee's protected activity. See generally 1
    ABA Section of Labor and Employment Law, The Developing Labor Law
    195 (Patrick Hardin et al. eds. 3d ed. 1992). The ALJ found that
    the General Counsel had not showed Earle Industries acted out of
    anti-union animus. Earle 
    Indus., 315 N.L.R.B. at 349
    . Further, he
    found that Earle Industries showed it would have fired Wallace for
    insubordination and dishonesty regardless of her union activity.
    
    Id. The Board,
    on the other hand, considered the Wright Line test
    inapplicable to this case because the misconduct for which Earle
    4
    Section 7 of the NLRA, codified at 29 U.S.C. § 157 (1988),
    provides:
    Employees shall have the right to self-
    organization, to form, join, or assist labor
    organizations, to bargain collectively through
    representatives of their own choosing, and to engage in
    other concerted activities for the purpose of
    collective bargaining or other mutual aid or
    protection, and shall also have the right to refrain
    from any or all of such activities except to the extent
    that such right may be affected by an agreement
    requiring membership in a labor organization as a
    condition of employment as authorized in section
    158(a)(3) of this title.
    5
    
    251 N.L.R.B. 1083
    (1980), enforced, 
    662 F.2d 899
    (1st Cir.
    1981), cert. denied, 
    455 U.S. 989
    (1982), approved in NLRB v.
    Transportation Management Corp., 
    462 U.S. 393
    (1983).
    -7-
    Industries fired Wallace occurred in the context of concerted
    activities. 
    Id. at 315
    n.19. In such a case even conduct like
    dishonesty and insubordination, which could justify firing under
    the Wright Line test, can fall into a class of protected
    misbehavior or "leeway," which the Board considers a necessary
    accommodation of the realities of industrial life. 
    Id. at 313-14;
    see F. W. Woolworth Co., 
    251 N.L.R.B. 1111
    (1980), enforced, 
    655 F.2d 151
    (8th Cir. 1981), cert. denied, 
    455 U.S. 989
    (1982);
    Consumers Power Co., 
    282 N.L.R.B. 130
    (1986). The Board held that
    Wallace's insubordination fell "within the degree of latitude which
    the Act affords employees in order to ensure that they may freely
    exercise their Section 7 rights." Earle 
    Indus., 315 N.L.R.B. at 313
    . The Board found that Wallace's lies in the various steps of
    this proceeding were precipitated by the company asking her
    questions it should not have asked: "Wallace may well have felt
    compelled to conform her testimony in this proceeding to the
    statements which she made during the course of the coercive
    interrogation. . . ." 
    Id. at 315
    . Accordingly, the Board held
    that in firing Wallace, Earle Industries violated sections 8(a)(1)
    and (3) of the NLRA (29 U.S.C. § 158(a)(1) & (3)). 
    Id. at 313.
    The Board ordered Wallace reinstated with backpay. 
    Id. at 315
    .
    On petition for review, Earle Industries argues that it was
    entitled to fire Wallace for insubordination and dishonesty.
    We review the Board's findings under the substantial evidence
    standard, meaning that we will not disturb the findings if they are
    supported by substantial evidence on the record as a whole, taking
    into account the evidence detracting from the findings. Universal
    Camera Corp. v. NLRB, 
    340 U.S. 474
    , 488 (1951). We examine the
    Board's findings more critically when, as here, the Board's
    conclusions are contrary to the ALJ's, because the ALJ's opinion is
    part of the record we must consider. GSX Corp. v. NLRB, 
    918 F.2d 1351
    , 1356 (8th Cir. 1990); NLRB v. Hawkins Constr. Co., 
    857 F.2d 1224
    , 1226 (8th Cir. 1988); see Universal Camera Corp., 340 U.S. at
    -8-
    496.
    Earle Industries argues that it was entitled to fire Wallace
    in order to maintain discipline at its plant.       It argues that
    Wallace was part of a group of employees who assisted and
    accompanied Jackson in making his way through a part of the plant
    where he had no right to be.6 When the personnel manager stopped
    Jackson, Wallace defied the manager before a crowd of employees and
    did so by means of a false statement. The ALJ found the false
    statement to be calculated, not impulsive, Earle 
    Indus., 315 N.L.R.B. at 348
    , and the Board adopted the ALJ's credibility
    findings, 
    id. at 310
    n.1.
    The Board argues that if an employee's misconduct occurs
    simultaneously with any sort of concerted activity, the employer
    must   tolerate  the   conduct   unless   it  is   "flagrant"   and
    "opprobrious", and cites instances of equally bad behavior that the
    Board has protected in the past.7
    6
    The Board compares the Jackson incident to past incidents
    in which other employees' family members entered the plant by the
    employees' door. Earle 
    Indus., 315 N.L.R.B. at 314
    . The Board
    argues that the company did not care about the rule, but used the
    rule as a pretext for firing Wallace. The videotape of the
    Jackson visit shows a horde of people, including news cameras,
    other press, and employees, walking en masse through the plant.
    This crowd scene is hardly analogous to a visit by a solitary
    husband or even a family group come to say good byes. See 
    id. at 340.
    Therefore, we reject the Board's contention that these past
    incidents show Earle Industries' concern about use of the
    employee entrance during the Jackson incident was pretextual.
    7
    The Board also cites several cases in which United States
    courts of appeals enforced Board orders: Keokuk Gas Service Co.
    v. NLRB, 
    580 F.2d 328
    , 335 n.17 (8th Cir. 1978); Hawaiian Hauling
    Serv., Ltd. v. NLRB, 
    545 F.2d 674
    , 675-76 & n.8 (9th Cir. 1976),
    cert. denied, 
    431 U.S. 965
    (1977); Crown Cent. Petroleum Corp. v.
    NLRB, 
    430 F.2d 724
    , 730-31 (5th Cir. 1970); J. P. Stevens & Co.
    v. NLRB, 
    547 F.2d 792
    , 793-94 (4th Cir. 1976); and Coors
    Container Co. v. NLRB, 
    628 F.2d 1283
    , 1288 (10th Cir. 1980).
    The first four cases involved grievance proceedings, captive
    -9-
    It is true that the Board has the power and the responsibility
    to balance the employee's section 7 interest against the employer's
    interest in maintaining discipline. See NLRB v. Prescott Indus.
    Prods. Co., 
    500 F.2d 6
    , 10 (8th Cir. 1974); NLRB v. Thor Power Tool
    Co., 
    351 F.2d 584
    , 587 (7th Cir. 1965).         Though the Board's
    decision is discretionary, it is not beyond review.        Prescott
    
    Indus., 500 F.2d at 10
    . We must deny enforcement if the Board's
    determination is illogical or arbitrary. 
    Id. And, more
    to the
    point, that balancing test must be anchored in the policies of the
    National Labor Relations Act. We have refused to enforce Board
    orders based on the unreasonable and arbitrary conclusion that the
    employee's misconduct should be protected under section 7. See
    Prescott 
    Indus., 500 F.2d at 10
    -11; NLRB v. Red Top, Inc., 455
    F.2d, 721, 726 (8th Cir. 1972); accord Sullair P.T.O., Inc. v.
    NLRB, 
    641 F.2d 500
    , 503 (7th Cir. 1981).
    The Board seeks to exercise its discretion by cutting a wide
    swath for permissible misconduct occurring in connection with any
    sort of concerted activity. The Board distinguishes only between
    gradations of offensiveness of the conduct. The Board's conception
    of "leeway" for misconduct is far too blunt an instrument when
    applied without regard to the situation in which the misconduct
    took place. In past cases we have held the Board must take into
    account other factors in considering whether protecting such
    conduct serves the NLRA's goals of self-organization and
    representation. See Red 
    Top, 455 F.2d at 725-26
    (quoting NLRB v.
    Jones & Laughlin Steel Corp., 
    301 U.S. 1
    , 45-46 (1937)). We held
    the conduct of the employees in Red Top to be unprotected because
    protecting the conduct did not serve the purposes of the Act: "We
    do not think the approval of conduct disclosed by this record will
    encourage harmonious labor-management relationships nor result in
    audience speeches, or   strikes, all of which we discuss infra at
    11-12. J. P. Stevens    and Coors also involved conduct
    specifically found to   be impulsive, unlike Wallace's conduct in
    this case. See infra    at 12.
    -10-
    the proper consideration and resolution of legitimate grievances.
    Quite   to   the   contrary,  it   would   encourage   insolence,
    insubordination, and intimidation." 
    Id. at 728.
    In view of the purposes of the NLRA, we have recognized that
    an employer cannot insist on subordination in the context of
    bargaining or grievance processes. These are situations in which
    the Act aims for equality of bargaining positions between employer
    and employee to permit meaningful negotiation. See Red 
    Top, 455 F.2d at 728
    ; Prescott 
    Indus., 500 F.2d at 11
    ; see also Chemvet
    Labs., Inc. v. NLRB, 
    497 F.2d 445
    , 452 (8th Cir. 1974); see
    generally NLRB v. City Disposal Sys., Inc., 
    465 U.S. 822
    , 835
    (1984) ("[I]t is evident that, in enacting § 7 of the NLRA,
    Congress sought generally to equalize the bargaining power of the
    employee with that of his employer by allowing employees to band
    together in confronting an employer regarding the terms and
    conditions of their employment.").     In Crown Central Petroleum
    Corp. v. NLRB, 
    430 F.2d 724
    (5th Cir. 1970), which the Board cites,
    the Fifth Circuit focussed on the context of the misconduct as the
    key to deciding whether the misconduct was protected by the Act.
    There, the misconduct was protected because it occurred during
    grievance proceedings:
    Of central importance to our view of the case, is
    the nature of the protected activity involved. Harris
    and Gilliam were participating in a grievance meeting,
    which by its very nature requires a free and frank
    exchange of views, and where bruised sensibilities may be
    the price exacted for industrial peace. As the Board
    noted, a grievance proceeding is not an audience,
    conditionally granted by a master to his servants, but a
    meeting of equals--advocates of their respective
    positions.   Manly was not assailed with abuse on the
    floor of the plant where he stood as a symbol of the
    Company's authority; the characterization of the untruth
    came while he was appearing as a Company advocate during
    a closed meeting with Union 
    representatives. 430 F.2d at 73l
    (emphasis added).     Therefore, we have required
    -11-
    employers to countenance insubordinate, rude conduct in these
    contexts that might be cause for firing without the protection of
    the NLRA.
    Similarly, in the context of strikes, grievances, and captive
    audience speeches, we have recognized that industrial conflict
    tends to bring out less than admirable conduct.            We have
    acknowledged the need to excuse impulsive, exuberant behavior (so
    long as not flagrant or rendering the employee unfit for
    employment) as an inevitable concomitant of struggle. See Prescott
    
    Indus., 500 F.2d at 10
    ; Red 
    Top, 455 F.2d at 728
    ("It is of course
    understandable that tempers may flare in the course of grievance
    meetings and that harsh and rough words may be exchanged between
    the parties without giving rise to a basis for discharge consistent
    with the protections afforded under § 7 of the Act."). Conversely,
    we have considered an employee's bad faith or calculated use of the
    shelter of the Act in holding that section 7 did not extend its
    protection to that employee's acts.8 See Red 
    Top, 455 F.2d at 726
    ("[t]he question of whether or not the three employees pressed
    their   alleged  grievances   in   good   faith   becomes   vitally
    important."); Prescott 
    Indus., 500 F.2d at 10
    ("[B]efore us we have
    no situation of mere exuberant conduct."); cf. F. W. Woolworth Co.
    v. NLRB, 
    655 F.2d 151
    , 154 (8th Cir. 1981) (excusing employee's
    conduct as impulsive), cert. denied, 
    455 U.S. 989
    (1982).
    8
    We believe that this concern about bad faith remains vital
    after ABF Freight Sys., Inc. v. NLRB, 
    114 S. Ct. 835
    (1994). ABF
    holds that the Board may reinstate an employee who was wrongfully
    discharged, but who lied to the employer and in Board
    proceedings. In ABF the Supreme Court emphasized that though the
    worker had lied, ABF fired him because of union activity and not
    because of his 
    dishonesty. 114 S. Ct. at 838
    . Therefore, the
    question before the Court was whether the employee's abuse of
    Board proceedings prevented the Board from reinstating him even
    though the employer had committed an unfair labor practice.
    Wallace's case and those we rely on here deal with the entirely
    different question of when it is an unfair labor practice to fire
    a worker for dishonesty and insubordination occurring in the
    context of concerted activity.
    -12-
    We have also weighed the effect of the employee's conduct on
    the employer's authority in the workplace.        Compare Prescott
    
    Indus., 500 F.2d at 8-11
    (permitting firing where walkout
    undermined employer's authority) with F. W. 
    Woolworth, 655 F.2d at 154
    (not permitting firing where employee's conduct posed no threat
    to employer's authority).
    We also take into account whether the employer unlawfully
    provoked the employee's misconduct. See NLRB v. Vought Corp., 
    788 F.2d 1378
    , 1384 (8th Cir. 1986); Wilson Trophy Co. v. NLRB, 
    989 F.2d 1502
    , 1509 (8th Cir. 1993). The ALJ specifically found that
    Earle Industries did not provoke Wallace's defiant conduct during
    the Jackson incident, Earle 
    Indus., 315 N.L.R.B. at 348
    , a
    conclusion the Board did not take issue with.
    Here, the factors of context, impulsiveness and effect on
    discipline all weigh against Wallace.       Although the incident
    occurred in the context of a union campaign, we cannot ignore the
    fact that the nonemployee union organizers had basically moved
    their rally onto the plant floor. When Smith tried to assert the
    company's rights,9 Wallace defied him. If Wallace had not been
    part of a group escorting Jackson through the employees' entrance,10
    she would never have become involved in the standoff between
    Jackson and Smith; the concerted activity underlying her misconduct
    consisted of breaking a legitimate company rule with others. If we
    hold that the concerted activity gave her the license to defy her
    employer, we allow her to leverage her rights by wrongful conduct.
    Thus, her case is fundamentally different from grievance or
    9
    See generally Lechmere, Inc. v. NLRB, 
    502 U.S. 527
    , 537
    (1992).
    10
    The Board makes some issue about whether Wallace led
    Jackson in the door. Earle 
    Indus., 315 N.L.R.B. at 314
    n.14. We
    need not resolve that issue, since it is indisputable from the
    videotape that Wallace was part of a large band of employees
    escorting Jackson through the plant.
    -13-
    bargaining cases where the employee misbehaved in conducting union
    business that he had every right to pursue. Further, even if she
    had not been breaking a company rule to begin with, Wallace defied
    the personnel manager, not in the protected give and take of
    negotiations or grievance, but "on the floor of the plant where he
    stood as a symbol of the Company's authority." Crown 
    Cent., 430 F.2d at 731
    . This context differs crucially from grievance and
    bargaining settings where the NLRA frees the worker from
    subordination the employer otherwise has the right to insist on.
    Second, the ALJ found that Wallace deliberately lied to
    Jackson to cause him to push forward instead of going back to the
    visitor's entrance as Smith asked him to. The ALJ concluded the
    misconduct was "calculated," not impulsive. Therefore, Wallace's
    case differs from the cases where we excused impulsive or exuberant
    conduct.    Protecting her action would create a license for
    manipulative dishonesty, surely not a goal of the Act. See Red
    
    Top, 455 F.2d at 728
    .
    Finally, Smith was humiliated in front of a crowd of workers
    and news cameras, undermining his authority in the plant.     The
    crowd cheered as Smith gave up on trying to turn Jackson back to
    the visitor's entrance and as Jackson and his entourage surged
    toward the office. The Board's decision simply does not consider
    the employer's interest in maintaining discipline.
    By holding that Wallace's initial misbehavior in escorting
    Jackson through the plant gave her a zone of safety for
    insubordination on the plant floor, and that her insubordination
    gave her a license for her later dishonesty in the interview, the
    Board does not serve the purposes of the Act, but gives the Board's
    imprimatur to industrial anarchy. We therefore hold the Board's
    misguided application of its balancing test to be unreasonable and
    arbitrary.
    -14-
    There is not substantial evidence on the record as a whole of
    an unfair labor practice. See Prescott 
    Indus., 500 F.2d at 11
    .
    We grant the petition for review and deny enforcement of the
    order.
    WOLLMAN, Circuit Judge, dissenting.
    The court's opinion sets forth a most thorough review of our
    decisions in cases of this nature, but it seems to me that the
    opinion leads to the conclusion that the Board's decision must be
    upheld.
    In describing the events that occurred at Respondent's plant
    on October 1, 1991, we pointed out that less than two minutes
    elapsed from the time Reverend Jackson entered the plant to the
    time he entered the front office; that the activities within and
    without the plant were restrained in nature; that neither Reverend
    Jackson nor any union agents made any threats of any kind against
    Respondent's management, employees or property; that Reverend
    Jackson's exchange with Gary Smith was quiet and civil; that the
    employees had not, contrary to Respondent's assertions; erupted
    into a frenzy or near-riot. N.L.R.B. v. Earle Industries, Inc.,
    
    999 F.2d 1268
    , 1270, 1273 (8th Cir. 1993). Granted, the issue in
    that appeal was whether the events of that day interfered with the
    representation election held later that month, but our holding that
    they did not supports the Board's holding that Ms. Wallace's
    October 1, 1991, conduct fell within the zone of activities
    protected by Section 7 of the National Labor Relations Act.
    Given Reverend Jackson's short stay within the employees' area
    of the plant, the restrained nature of his exchange with Gary
    Smith, and his subsequent entry through the visitors' entrance, I
    agree with the Board that Ms. Wallace's conduct in encouraging
    Reverend Jackson to enter and proceed through the employees'
    -15-
    entrance was neither flagrant nor extreme and did not differ in any
    material way from the encouragement offered to Reverend Jackson by
    other employees, none of whom was later disciplined by Respondent.
    Likewise, although I join with the court in decrying
    dishonesty and false statements by employees, I cannot say that the
    Board abused its discretion in holding that Ms. Wallace's false
    answers during the October 7 interrogation did not forfeit her
    right to the protections afforded her by the Act.         If false
    testimony under oath before an administrative law judge does not
    preclude reinstatement, see ABF Freight System, Inc. v. N.L.R.B.,
    
    114 S. Ct. 835
    (1994), neither do the false statements made by Ms.
    Wallace in what the Board found was a coercive interrogation and
    then only after she had initially exercised her right not to answer
    any questions regarding her activities on October 1, 1991. Had I
    been the administrative law judge in this case, I might well have
    ruled as Judge West did, for I am no more tolerant of false
    statements than are my colleagues.      Employers are entitled to
    honest employees, but where the false statements are made in the
    course of protected union activity, it is within the Board's
    discretion to fashion a remedy for a violation of that protected
    activity that in effect does not penalize, and perhaps will be
    viewed by some as rewarding, such statements.
    I would deny the petition for review and would enforce the
    Board's order of reinstatement.
    A true copy.
    Attest:
    CLERK, U. S. COURT OF APPEALS, EIGHTH CIRCUIT.
    -16-
    -17-
    

Document Info

Docket Number: 94-3843, 95-1033

Citation Numbers: 75 F.3d 400

Judges: Wollman, Gibson

Filed Date: 1/31/1996

Precedential Status: Precedential

Modified Date: 11/5/2024

Authorities (18)

National Labor Relations Board v. Transportation Management ... , 103 S. Ct. 2469 ( 1983 )

Lechmere, Inc. v. National Labor Relations Board , 112 S. Ct. 841 ( 1992 )

National Labor Relations Board v. Thor Power Tool Company , 351 F.2d 584 ( 1965 )

Crown Central Petroleum Corporation v. National Labor ... , 430 F.2d 724 ( 1970 )

National Labor Relations Board v. Prescott Industrial ... , 500 F.2d 6 ( 1974 )

Chemvet Laboratories, Inc. v. National Labor Relations Board , 497 F.2d 445 ( 1974 )

J. P. Stevens and Company, Inc. v. National Labor Relations ... , 547 F.2d 792 ( 1976 )

Keokuk Gas Service Co. v. National Labor Relations Board , 580 F.2d 328 ( 1978 )

F. W. Woolworth Co. v. National Labor Relations Board , 655 F.2d 151 ( 1981 )

Sullair P.T.O., Inc. v. National Labor Relations Board , 641 F.2d 500 ( 1981 )

National Labor Relations Board v. Vought Corporation--Mlrs ... , 788 F.2d 1378 ( 1986 )

National Labor Relations Board v. Hawkins Construction ... , 857 F.2d 1224 ( 1988 )

Coors Container Company v. National Labor Relations Board, ... , 628 F.2d 1283 ( 1980 )

Universal Camera Corp. v. National Labor Relations Board , 71 S. Ct. 456 ( 1951 )

National Labor Relations Board v. Wright Line, a Division ... , 662 F.2d 899 ( 1981 )

national-labor-relations-board-southwest-regional-joint-board-amalgamated , 999 F.2d 1268 ( 1993 )

Wilson Trophy Company v. National Labor Relations Board, ... , 989 F.2d 1502 ( 1993 )

National Labor Relations Board v. Jones & Laughlin Steel ... , 57 S. Ct. 615 ( 1937 )

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