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Administrative Law Keyed to Breyer
National Labor Relations Board v. Bell Aerospace Co.
Citation:
416 U.S. 267 (1974)Facts
Bell Aerospace Company operated a plant in Wheatfield, New York, engaged in research and development of aerospace products. In 1970, a union petitioned the NLRB for a representation election to represent 25 buyers in the company’s purchasing department. The buyers had authority to select vendors, draft invitations to bid, evaluate bids, negotiate prices and terms, and prepare purchase orders. They could execute purchase orders up to $50,000 and place orders under $5,000 on their own signature, though larger purchases required approval from superiors. The company opposed the petition, arguing the buyers were “managerial employees” outside the Act’s protection. The NLRB ruled that even if the buyers were managerial employees, they were still covered by the Act unless their inclusion would create a conflict of interest in labor relations. After the union won the election, the company refused to bargain, leading to an unfair labor practice finding by the NLRB. The Second Circuit denied enforcement, holding that all true managerial employees were excluded from the Act and that the Board must use rulemaking rather than adjudication to change its long-standing position on buyers.
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