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Montebello Rose Co. v. Agricultural Labor Relations Board

Citations: 119 Cal. App. 3d 1; 173 Cal. Rptr. 856; 1981 Cal. App. LEXIS 1726Docket: Civ. 5266

Court: California Court of Appeal; May 12, 1981; California; State Appellate Court

Narrative Opinion Summary

This case involves the Montebello Rose Company and the Agricultural Labor Relations Board in the context of alleged unfair labor practices under the Agricultural Labor Relations Act. The United Farm Workers (UFW) was certified as the collective bargaining representative for Montebello's employees. After initial negotiations stalled, the UFW's certification was not extended by the Board, leading Montebello to assert no further obligation to bargain post-certification year. The Board found that Montebello engaged in bad faith bargaining and discriminatorily terminated employees for union activities, violating sections 1153, subdivisions (c), (a), and (e). The Board mandated reinstatement of certain employees, back pay, and a make-whole remedy. The court affirmed the Board's findings but remanded the case to reassess the make-whole remedy in light of Montebello's good faith belief about its obligations. The court rejected Montebello's claims concerning res judicata, the tolling of limitation periods, and attorney-client privilege, emphasizing the duty to bargain persists beyond the certification year until the union is decertified. The case underscores the legal obligations of employers in collective bargaining and the protection of workers' rights under the Act.

Legal Issues Addressed

Attorney-Client Privilege in Labor Negotiations

Application: Communications between an employer and attorney-negotiator related to collective bargaining are not protected by attorney-client privilege unless primarily legal in nature.

Reasoning: Montebello's claim that communications between its general manager Barwick and negotiator Jay Jory were protected by attorney-client privilege was rejected.

Discriminatory Practices in Employment

Application: Employers violate labor laws by discriminatorily terminating employees for union activities.

Reasoning: The Board's findings of Montebello's violations of bargaining duties during the certification year and discriminatory discharge of six employees were supported by substantial evidence.

Duty to Bargain Beyond Certification Year

Application: An employer's obligation to negotiate with a labor organization persists beyond the certification year unless the union is officially decertified.

Reasoning: The inquiry shifts to whether an employer must continue bargaining with a labor organization after the certification year without reaching an agreement or obtaining an extension.

Res Judicata in Labor Relations

Application: Res judicata does not bar the relitigation of good faith bargaining issues when the general counsel was not a party in the initial proceeding.

Reasoning: Montebello's claim that the doctrine of res judicata prevents the Board from finding a violation of the duty to bargain in good faith under Section 1153, subdivision (e) is rejected.

Tolling of Limitation Period for Unfair Labor Practices

Application: The six-month limitation for unfair labor practices is tolled until the charging party discovers, or should have discovered, the other party's bad faith.

Reasoning: The Board determined that the make-whole remedy could be retroactively imposed from February 4, 1976, the date of Montebello's first act of bad faith.