A Summary of the U.S. Court of Appeals Consent Order on Hearthside

January 24, 2011

On January 10, the U.S. Court of Appeals for the Sixth Circuit ordered Herathside to fully comply with the Court's November 14, 2008 judgement against Consolidated Biscuit Company, "and not in any way engage in, induce, encourage, permit or condone any future violations of that judgement." (Read a summary of the November 14, 2008 judgement)

The Court further ordered that Hearthside shall not:

• Unlawfully remove union-related literature from non-work areas, including employee breakrooms, while permitting non-union related materials to remain in the same non-work areas;

• Threaten employees with job loss, plant closure and plant relocation if the employees select the BCTGM, or any other labor organization, as their exclusive collective bargaining representative;

• Threaten that employees' immigration papers will be more closely examined or held to a stricter standard than required by law if the employees select the BCTGM as their exclusive bargaining representative;

• Coercively inform employees that they will be subject to closer scrutiny and surveillance because of their union activities and/or in order to monitor, prevent or restrict them from engaging in union activities;

• Orally promulgate an overly broad no-talking rule by directing employees not to speak with any other employees at the plant because of their union activities and/or in order to prevent or restrict them from engaging in union activities;

• Unlawfully limit the access of off-duty employees to nonworking areas because of their union activities;

• Coercively interrogate employees about union support or union activities;

• Harass its employees by falsely accusing them of failing to properly perform their work assignments, issue disciplinary counseling based on such activity, or
  discriminate in regard to hire or tenure of employment or any other terms or conditions of employment, in order to discourage membership in the Union, or in any
  other labor organization; and

• In any other manner interfere with, restrain, or coerce employees in the exercise of the rights guaranteed them by Section 7 of the National Labor Relations Act.

The Court further ordered that within ten days of entry of this order, Hearthside shall remove from its files and destroy any reference to the discipline of William Lawhorn detailed in the Board's contempt petition, and that within three days thereafter, notify him, in writing, that this has been done and that any such discipline or counseling will not be used against him in any way.

The Court ordered Hearthside to post for 60 consecutive days copies of Notices to Employees that have been signed and dated by Rich Scalise, Chairman and Chief Executive Officer of Hearthside, alongside this Consent Order. The Notices, provided by the Board, and this Consent Order will be translated by the Board into Spanish and Laotian and all three language versions shall be posted by Hearthside.

Hearthside was ordered to duplicate and mail, at its own expense, copies of the signed Notices and the Consent Order in all three languages to all current employees and all former employees as of November 14, 2008, at their last known address, and to the BCTGM International Union. A legible list of the names and address of all individuals to whom the notice was sent shall be provided to the Regional Director of Region 8 in Cleveland, Ohio and to the Contempt Litigation & Compliance Branch (CL&CB) in Washington,D.C. within five business dates of the mailing. A copy of the list will also be provided to the Union within five business days of the mailing.

Hearthside Chairman and Chief Executive Officer Rich Scalise, within 20 days of the Order, shall read the English language version of the Notice to Employees and this Consent Order to all current employees, managers and supervisors at a safety meeting, during paid time, for each shift at its McComb, Ohio facility. A Spanish language version of the Notice and Consent Order is to be read at those meetings by Lead Supervisor Rudy Lomeli, or if he is not available, another individual of similar rank and fluency in Spanish.

Ten business days in advance, Hearthside will inform the Regional Director for Region 8 and the CL&CB of the date and times of the readings to arrange for the attendance of their agents as well as the Union's attorney and a Union Official should they choose to attend, at any assembly of employees called for the purpose of the reading of the Notices and Consent Order. Within five business days of the readings,Hearthside shall provide a list of the names and address of all employees, supervisors, and managers who attended the readings that indicate the date and time of the reading for each such individual to the Regional Director of Region 8 and to the CL&CB.

Immediately following the reading of the Notice and Consent Order, Hearthside will allow the Union thirty 30 minutes to address the employees of Hearthside and to answer any questions that the employees may have.

Hearthside will allow the Union the right to deliver a 30 minute speech to employees, on working time, for each shift prior to any Board election which may be scheduled involving Hearthside's unit employees at the McComb facility within business days before, but not less than 48 hours before such an election. This provision shall apply for a period of two years from the date of the posting of the Notice provided by the Consent Order or until the Regional Director for Region 8 has issued an appropriate certification following a fair and free election, whichever comes first.

The Court further ordered that within 30 days, Hearthside will conduct training for all leads, supervisory or managerial employees, regarding the Court's November 14, 2008 Judgment and the Consent Order. The training shall reference the Hearthside's intolerance for violations of the Court's directives. The training materials shall be approved in advance by the Board. Each individual provided with such training shall sign an acknowledgment that he or she understands the Court's directives, and that he or she will conduct himself or herself in all respects consistently therewith.

Training will also be provided within 10 business days of the hiring of a new lead, supervisor or manager. Refresher training shall continue each year within three business days of the anniversary of the Court's Judgment

The Court orders Hearthside that within 10 days of the posting of the Notice to Employees, 10 days after the posting period has ended, and on the first anniversary date of entry of the Consent Order, Hearthside shall certify to the Director of Region 8 and the CL&CB, in a form provided by the Board, that it has complied with this Consent Order.

Should new allegations be filed against Hearthside by the Board alleging that it is in contempt of the Court's November 14, 2008 judgment or this Consent Order, and upon a finding by the Court that Hearthside is in contempt, Hearthside shall pay to the Board $50,000 in compensatory damages for reasonable attorneys' fees incurred by the Board in the investigation and prosecution of the instant case. Additionally, if found in violation, Hearthside may be assessed new costs and expenses incurred by the Board in the investigation, preparation, presentation and final disposition of any new contempt proceedings.