A federal appeals panel has ruled snack foods giant Mondelez broke labor law by trying to hamper union activities at an East Coast plant, which included firing union leaders for "sham" reasons.
The July 21 decision was written by Circuit Judge Michael Brennan, with agreement from judges Joel Flaum and Michael Scudder, of the U.S. Court of Appeals for the Seventh Circuit. The ruling went against Mondelez Global in its dispute with the National Labor Relations Board.
Mondelez, which makes such iconic snack brands as Oreo and Chips Ahoy cookies, Cadbury candies, Ritz and Triscuit crackers, among many other items, operates plants in the Chicago's suburbs and elsewhere. The company has dual headquarters in suburban Deerfield and in East Hanover, N.J.
Daniel Schudroff
| Jackson Lewis P.C.
The case centers on a Mondelez plant in Fair Lawn, N.J. The Bakery, Confectionary, Tobacco Workers and Grain Millers International Union Local 719 represents workers at the facility. Union-management relations deteriorated during 2016, after contract negotiations fell apart.
A company investigation that year into overtime led the company to fire union officials Nafis Vlashi, Claudio Gutierrez and Bruce Scherer for allegedly falsifying time records and leaving work areas without authorization.
According to the union, the men were terminated because of their union activities and to discourage others from engaging in such activities.
In addition, the union alleged Mondelez changed the short-term disability leave policy at the plant without notifying the union, and denied union access to newly hired workers. The union used the access to go over dues and other membership information. The union further claimed Mondelez altered shift times without talking to the union.
The union also alleged Mondelez refused to hand over a complete list of new hires, so the union could conduct union orientation. The union added it also asked for the names of employees disciplined for violating time clock policy, but only received a partial list.
The union went to the National Labor Relations Board, which sided with the union. Mondelez then asked the court of appeals to overturn the Board's ruling, but made no headway.
As far as the three fired union leaders, Judge Brennan found that although Mondelez booted them for alleged time card irregularities, the company took no similar action against other serious offenders.
"There is ample support for 'an inference that stealing time was not the real reason why Gutierrez, Scherer, and Vlashi were discharged,'" in what was a "'sham" overtime investigation, Brennan said, quoting the NLRB.
Brennan also found Mondelez conceded it unilaterally changed disability leave policy and stopped giving union access to new hires, but its argument — the changes were immaterial — did not wash. Quoting the NLRB, Brennan said the leave policy affected employees' pay, and denial of union access created a "chilling effect on soliciting contributions" and otherwise undermined the union.
Mondelez contended the adjusted shift schedules were based on its interpretation of the union contract. However, Brennan concluded work hours are "mandatory bargaining subjects," which Mondelez could not change without negotiation.
Brennan determined Mondelez was also in the wrong when it failed to furnish lists of new hires and workers disciplined for time clock infractions. Brennan said the NLRB correctly found the union's requests were "reasonable, appropriate, and necessary" for adequate union representation of employees.
Mondelez was represented by Philip Rosen, Daniel Schudroff, Megann McManus and James Thomas, of the New York City firm of Jackson Lewis P.C.
The National Labor Relations Board was represented by its in-house counsel Barbara Sheehy.