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Dunbar Armored, Inc. v. National Labor Relations Board

Citation: 186 F.3d 844Docket: Nos. 98-4067, 99-1046

Court: Court of Appeals for the Seventh Circuit; August 2, 1999; Federal Appellate Court

Narrative Opinion Summary

In this case, Dunbar Armored, Inc. was subject to review for violating Sections 8(a)(5) and (1) of the National Labor Relations Act due to its refusal to negotiate with the United Plant Guard Workers of America, the certified representative of its employees at the Cinnaminson terminal. The core legal issue revolves around the determination of an appropriate bargaining unit, with Dunbar challenging the Board's decision, contending that their operations were functionally integrated across multiple offices, thus requiring a broader bargaining unit. The NLRB, however, upheld the Union's position, establishing a single-site unit at Cinnaminson. Applying a deferential standard, the court found that the NLRB's factual determinations were supported by substantial evidence, and the Board’s discretion in unit determinations, as per 29 U.S.C. § 159(b), was not abused. The single-facility presumption was maintained, as Dunbar failed to demonstrate significant employee interchange or centralized control that would negate the separate identity of the Cinnaminson site. The NLRB’s order for Dunbar to bargain with the Union was enforced, affirming the Board's decision based on the evidence and maintaining the presumption of a single-site bargaining unit due to local autonomy and insufficient integration evidence.

Legal Issues Addressed

Determination of Bargaining Units

Application: The NLRB's determination of an appropriate bargaining unit is given deference and reviewed for abuse of discretion, focusing on whether it is unreasonable, arbitrary, capricious, or unsupported by substantial evidence.

Reasoning: The discretion to make bargaining unit determinations is firmly with the Board as established in 29 U.S.C. § 159(b) and relevant case law. The Board's decisions are reviewed for abuse of discretion, focusing on whether the determinations are unreasonable, arbitrary, capricious, or unsupported by substantial evidence.

Refusal to Bargain under National Labor Relations Act

Application: Dunbar Armored, Inc. was found to have violated Sections 8(a)(5) and (1) by refusing to negotiate with the certified representative of its employees.

Reasoning: Dunbar Armored, Inc. is being reviewed for violating Section 8(a)(5) and (1) of the National Labor Relations Act by refusing to negotiate with the United Plant Guard Workers of America, the certified representative for a group of its employees at the Cinnaminson terminal.

Role of Local Autonomy in Unit Determination

Application: Local autonomy at the Cinnaminson branch supported the single-location presumption despite centralized control in certain areas.

Reasoning: Despite Dunbar's claims of centralized management from the Mid-Atlantic Region, the Regional Director's findings indicate significant local autonomy at the Cinnaminson branch, where branch management retains authority over many operational decisions.

Single Facility Presumption in Collective Bargaining

Application: A single facility is presumed appropriate for collective bargaining unless substantial integration negates its separate identity. Dunbar did not sufficiently rebut this presumption.

Reasoning: For employers with multiple facilities, a single facility is presumed appropriate for collective bargaining unless substantial integration negates its separate identity.

Substantial Evidence Standard

Application: The court applies a deferential standard to the NLRB's factual findings, which will stand if supported by substantial evidence.

Reasoning: In reviewing the case, the court adopts a deferential standard, stating that the NLRB's factual findings will stand if supported by substantial evidence, and acknowledges that differing conclusions by the court do not justify overturning the Board's determinations.