Labor board hearing starts
National Extrusion’s future in the balance of judge’s decision

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National Extrusion and Manufacturing Co. is risking its future by refusing to settle with the United Auto Workers, its attorney admitted prior to start of Tuesday’s National Labor Relations Board hearing, but the company is “comfortable” it can fight charges it is not negotiating in good faith and that it unfairly locked out 16 Local 1224 members on Oct. 22.

Administrative Judge David I. Goldman asked before the hearing if a settlement was still possible and both National Extrusion’s attorney Kerry P. Hastings and NLRB General Counsel Karen Neilsen said the sides still were too far apart.

“I would say we’re at an impasse,” Mr. Hastings said.

“The general counsel is willing to work with the company,” Ms. Neilsen said. “We don’t want to put your company out of business.

“However, they (company leaders) don’t want to bring back employees and they don’t want to offer back pay.”

The back pay issue will be critical if National Extrusion and its parent company KLB Industries Inc. are unsuccessful.

Judge Goldman noted the back pay will continue to add up until he comes to a decision and during any appeals if there are any. That could be years, he said.

Ms. Neilsen started the hearing in the Logan County Common Pleas Courtroom calling KLB partner Craig Johnson to the stand.

He is the controller and treasurer for the company.

He testified that while he was present at negotiation sessions, he had limited authority in reaching an agreement.

Basically, if the union agreed to the company’s terms, he could act for the other three owners. If the union presented a proposal or asked for changes, he would have to take the proposal or changes back to the other owners for their direction, Mr. Johnson said.

He testified National Extrusion was seeking an eight percent pay cut in the first year of the contract and two percent cuts in second and third years. The owners also wanted employees to help pay for insurance while agreeing to a cut in the company’s 401K contribution.

Mr. Johnson said the cuts were necessary to keep the company competitive with Asian firms.

Ms. Neilsen believes her case will prove KLB and National Extrusion never intended to negotiate with the union and it unfairly barred the union members from working.

Mr. Hastings opted to give an opening statement later.

The hearing is scheduled to end Friday.

Attorneys for both sides will have 30 days to file briefs. Then, Judge Goldman will take the case under consideration and issue a ruling.

His ruling could come in a few months. Either side could appeal his decision to the full board which could take a couple of years. Further appeals would go to the Sixth District of U.S. Appeals Court.

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