Walgreen Co. v. NLRB

Walgreen Co. v. NLRB

Opinion

 [*751]  SPRECHER, Circuit Judge.

The sole issue in this appeal is whether the National Labor Relations Board's (NLRB) decision to certify a single Walgreen's Store as an appropriate unit for  [*752]  collective bargaining was arbitrary or capricious.

The case arises on a petition of Walgreen Company (Walgreen) to review and set aside two decisions of the NLRB, 226 NLRB No. 88 (Oct. 21, 1976), 226 NLRB No. 89 (Oct. 21, 1976), ordering Walgreen to cease and desist from violating sections 8(a)(1) and (a)(5) of the National Labor Relations Act, 29 U.S.C. §§ 151, et seq., for refusing to bargain collectively with the Retail Clerks Union Local 1550 chartered by Retail Clerks International Association, AFL-CIO (the Union). The Board has filed a cross-application in both cases requesting this court to enforce its orders. The court's jurisdiction is based on sections 10(e) and (f) of the National Labor Relations Act, [**2]  29 U.S.C. § 160(e), (f) (1970).

Walgreen is an Illinois corporation engaged in the retail sale of prescription and non-prescription drugs and various other items. It operates approximately 124 stores in the Chicago Metropolitan Area. Those stores are grouped administratively by Walgreen into eight districts, each consisting of 13 to 19 stores.

Although several single-store Union elections are at issue in this case, ² it will suffice to describe in detail the facts surrounding the initial NLRB decision since all of the subsequent elections raised identical factual and legal questions. Between September 8, 1975 and October 1, 1975, the Union filed four single-store petitions seeking to represent Walgreen employees. Those stores were located in three different Walgreen administrative districts. A representation hearing was held at which Walgreen contended that the smallest appropriate unit for collective bargaining purposes was the administrative district. The Regional Director disagreed and issued his decision and Decision of Election in which he found the separate single-store units sought by the Union were appropriate for purposes of collective bargaining. [**3]  Walgreen petitioned the Board to review the Regional Director's findings, but it denied the request as one raising no substantial issues warranting review.

A Union election was held in each of the four stores, the Union won three of them and it was certified as the exclusive bargaining representative of the employees in those three stores. Subsequently, the Union requested Walgreen to commence collective bargaining, but it refused.

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