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Dunbar Armored, Inc., Petitioner/cross-Respondent v. National Labor Relations Board, Respondent/cross-Petitioner, and International Union, United Plant Guard Workers of America, Intervening Respondent/cross-Petitioner

Citations: 186 F.3d 844; 162 L.R.R.M. (BNA) 2032; 1999 U.S. App. LEXIS 18162Docket: 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. challenges a decision by the National Labor Relations Board (NLRB) which found the company in violation of the National Labor Relations Act for refusing to bargain with a union representing its employees at the Cinnaminson terminal. The core issue revolves around the appropriateness of a single-site bargaining unit as determined by the NLRB. Dunbar argues that its operations are integrated across multiple locations, warranting a broader regional bargaining unit. The NLRB, however, maintains that a single facility is a presumptively appropriate bargaining unit, a decision reinforced by local management's autonomy and limited employee interchange. The court reviews the NLRB's factual findings and legal conclusions under a deferential standard, requiring substantial evidence to support the Board’s decision. Ultimately, the court upholds the NLRB's order, finding no abuse of discretion in its determination of the Cinnaminson unit as appropriate. The decision underscores the Board's discretion in unit determinations and the evidentiary burden on employers to demonstrate that a single-site unit is clearly inappropriate.

Legal Issues Addressed

Evaluation of Employee Interchange

Application: Dunbar's evidence of temporary transfers and interactions with other branches was insufficient to rebut the single-site presumption.

Reasoning: Dunbar contends that the frequent interaction between drivers and guards from other branches and Cinnaminson employees undermines the single-site unit classification. Specifically, Dunbar cites over 1600 'temporary transfers' during a sixteen-month period.

Factors Determining Bargaining Unit Appropriateness

Application: The Board evaluated factors such as central control of labor relations, employee interchange, and geographic proximity, ultimately supporting the single-site unit at Cinnaminson.

Reasoning: Factors considered in this evaluation include central control of labor relations, similarity in employee skills and conditions, employee interchange, distance between locations, and any existing bargaining history.

Presumptively Appropriate Single-Site Bargaining Unit

Application: The single-location unit at Cinnaminson is deemed appropriate despite Dunbar's argument for a broader regional unit, due to local management's autonomy and lack of substantial employee interchange.

Reasoning: For employers with multiple facilities, a single facility is considered a 'presumptively appropriate' unit for collective bargaining, which can be rebutted by evidence of substantial functional integration among facilities negating their separate identities.

Refusal to Bargain under the National Labor Relations Act

Application: Dunbar Armored, Inc.'s refusal to negotiate with the certified union for the Cinnaminson terminal employees was found to violate Section 8(a)(5) and (1) of the National Labor Relations Act.

Reasoning: Dunbar Armored, Inc. is appealing a decision by the National Labor Relations Board (NLRB) which found the company in violation of Section 8(a)(5) and (1) of the National Labor Relations Act for refusing to bargain with the United Plant Guard Workers of America, the certified representative of its employees at the Cinnaminson terminal.

Standard of Review for NLRB Decisions

Application: The Court gives deference to the NLRB's factual findings and legal conclusions, only overturning them if they are unreasonable, arbitrary, or capricious.

Reasoning: The standard of review for the National Labor Relations Board (NLRB) is characterized by deference, meaning that while the reviewing court may have reached a different conclusion, it will not displace the Board's reasonable inferences.