A. L. French Co.Download PDFNational Labor Relations Board - Board DecisionsDec 26, 1963145 N.L.R.B. 627 (N.L.R.B. 1963) Copy Citation A. L. FRENCH CO. 627 WE WILL offer to all strikers , upon their application , reinstatement to their former or substantially equivalent positions , without prejudice to their seniority or other rights and privileges , dismissing if necessary any employees hired after February 18, 1963, to replace these employees , and we will make each em- ployee whole for any loss of pay suffered by him as a result of our failure to reinstate him within 5 days after his application. SOUTHERN TRANSPORT, INC., Employer. Dated------------------- By------------------------------------------- (Representative ) ( Title) NOTE.-We will notify any of the strikers above referred to if presently serving in the Armed Forces of the United States of their right to full reinstatement upon their application in accordance with the Selective Service Act and the Universal Military Training and Service Act of 1948, as amended , after discharge from the Armed Forces. This notice must remain posted for 60 consecutive days from the date of posting, and must not be altered , defaced, or covered by any other material. Employees may communicate directly with the Board 's Regional Office, 746 Fed- eral Office Building, 167 North Main Street , Memphis, Tennessee , Telephone No. 534-3161 , if they have any questions concerning this notice or compliance with its provisions. Action Wholesale , Inc. d/b/a A. L. French Co. and International Brotherhood of Teamsters , Chauffeurs, Warehousemen and Helpers of America, Local 959. Case No. 19-CA1-2553. Decem- ber 36, 1963 DECISION AND ORDER On June 19, 1963, Trial Examiner George L. Powell issued his Intermediate Report in the above-entitled proceeding, finding that the Respondent had engaged in and was engaging in certain unfair labor practices and recommending that it cease and desist therefrom and take certain affirmative action, as set forth in the attached Inter- mediate Report. He also found that the Respondent had not engaged in certain other alleged unfair labor practices and recommended dis- missal of those allegations of the complaint. Thereafter, the Re- spondent filed exceptions to the Intermediate Report. The General Counsel filed exceptions to the Intermediate Report and a supporting brief. Pursuant to the provisions of Section 3(b) of the Act, the Board has delegated its powers in connection with this case to a three- member panel [Chairman McCulloch and Members Leedom and Fanning]. The Board has reviewed the rulings of the Trial Examiner made at the hearing and finds that no prejudicial error was committed. The rulings are hereby affirmed. The Board has considered the Inter- mediate Report and the entire record in this case, including the ex- ceptions and brief, and hereby adopts the findings, conclusions, 145 NLRB No. 61. 628 DECISIONS OF NATIONAL LABOR RELATIONS BOARD and recommendations of the Trial Examiner with the following modification : The Trial Examiner found that the Respondent violated Section 8(a) (3) of the Act by discharging employees Storck and Todd and by causing employee Roseta to leave the Respondent's employment "as if [it] had in fact discharged her." While we agree with the Trial Examiner's findings as to Storck and Todd, we disagree with his finding as to Roseta. The record shows that at the time Rojcewicz, owner of the Re- spondent company, discharged employee Storck, Roseta, who was present, immediately requested that her check be made out also. She testified that she resented the arbitrary manner in which Storck had been discharged, and explained further, "I was frightened and I thought possibly this could happen to me and I wished to leave the premises before it happened to me." However, Roseta's private thoughts and feelings, standing alone, do not provide a sufficient basis to support the Trial Examiner's finding of unlawful discrimination as to her. The record contains no suggestion that Respondent dis- criminatorily altered Roseta's conditions of employment or otherwise engaged in conduct of a kind calculated to force her to quit. Even if she might have had reason to speculate that she too might soon be discharged, her voluntary decision "to beat the gun" is insufficient to impose liability on Respondent. Her action was no less voluntary because of Roj cewicz's failure to resist or protest it. Under all the circumstances, we cannot say that Respondent "caused" Roseta to quit, or that her voluntary quitting, though acquiesced in by Respond- ent, was tantamount to a constructive discharge violative of Section 8(a) (3) of the Act.' ORDER The Board adopts as its Order the Recommended Order of the Trial Examiner with the following addition and modifications : 1. The Recommended Order is hereby amended by substituting for the first paragraph therein, the following paragraph: Upon the entire record in this case, and pursuant to ;Section 10 (c) of the National Labor Relations Act, as amended, the 1 Member Fanning agrees with the Trial Examiner's ultimate conclusion that Respond- ent's treatment of Roseta was unlawful and that she, as well as Storck and Todd, is en- titled to reinstatement with backpay . Unlike the Trial Examiner , however, Member Fanning would find that, when Respondent summarily discharged Storek because of her union membership in the presence of Roseta, another known union adherent , it thereby coerced Roseta into abandoning her employment rather than being subjected to like treat- ment by Respondent . In his opinion, this conduct restrained and coerced Roseta in the exercise of her rights under Section 7 of the Act to join , support, and assist the Union, was violative of Section 8(a) (1), and warrants the award of backpay to her with reinstatement. A. L. FRENCH CO. 629 National Labor Relations Board hereby orders that Respondent, its officers , agents, successors , and assigns, shall: 2. Omit the name Norma Roseta from paragraph 2(a).' 3. Add the following paragraph to the Recommended Order: (b) Respondent shall, upon request, bargain collectively with Local 959, International Brotherhood of Teamsters , Chauffeurs, Warehousemen and Helpers of America , as the exclusive repre- sentative of all office, warehouse, and delivery employees of the Respondent at its Anchorage , Alaska, office and warehouse, ex- cluding guards and supervisors as defined in the Act , and, if an understanding is reached , embody such understanding in a signed written agreement. 4. Paragraphs 2(b), 2(c), and 2 ( d) are renumbered 2(c), 2(d), and 2 ( e) respectively. 2 The notice is amended to omit the name of Noima Roseta from the fourth paragraph, and to delete from the fifth paragraph the words "or any other labor organization of our employees , in the following unit of employees " and substitute therefor the words "as the exclusive representative of our employees in the following unit." INTERMEDIATE REPORT AND RECOMMENDED ORDER STATEMENT OF THE CASE Upon a charge filed December 18, 1962, amended February 1, 1963, by Inter- national Brotherhood of Teamsters, Chauffeurs, Warehousemen and Helpers of America, Local 959, herein called the Union, a complaint was issued on February 5, 1963, and amended on March 21, 1963. The complaint as amended, alleged that Respondent, Action Wholesale Company, Inc., d/b/a A. L. French Co., herein called Respondent, discriminatorily discharged two of its employees in December 1962, caused one employee to quit her employment on December 11, 1962, unlaw- fully interrogated its employees concerning their union membership, activities, and desires, threatened to sell its business, bargained directly with its employees instead of with the exclusive representative of a majority of the employees and since Novem- ber 24, 1962, refused and continues to refuse to bargain with the Union as the exclusive collective-bargaining representatives of the employees, thereby violating Section 8(a)(1), (3), and (5) of the National Labor Relations Act' The Re- spondent's answer, as amended, denies the commission of any of the unfair labor practices alleged. A hearing was held before Trial Examiner George L. Powell at Anchorage, Alaska, on March 21 and 22, 1963. All parties waived oral argument at the conclusion of the hearing Both counsel for Respondent and counsel for General Counsel filed briefs which have been carefully considered. Upon the entire record 2 in the case and from my observation of the witnesses, I make the following: FINDINGS OF FACT I THE BUSINESS OF RESPONDENT Respondent, an Alaska corporation, maintains an office and place of business in Anchorage, Alaska, where it is engaged in selling candy, cigarettes, and like items, at wholesale During its last calendar or fiscal year, the Respondent purchased goods or services directly from outside the State of Alaska of a value exceeding 129 U S C Sec. 151 et seq 2 The General Counsel, in his brief, moved to correct the official transcilpt in certain par- ticulars Not hearing objections from Respondent and because the requested correction accords with my notes taken at the hearing, the motion is granted and the corrections are noted 630 DECISIONS OF NATIONAL LABOR RELATIONS BOARD $50,000. I find that at all times material herein, Respondent has been engaged in commerce within the meaning of Section 2(6) and (7) of the Act. II. THE LABOR ORGANIZATION INVOLVED International Brotherhood of Teamsters, Chauffeurs, Warehousemen, and Helpers of America, Local 959, is a labor organization within the meaning of Section 2(5) of the Act.3 III. THE ALLEGED UNFAIR LABOR PRACTICES Issues: Whether Respondent interrogated its employees concerning their union activities and threatened to sell its business in reprisal therefor in violation of Sec- tion 8(a)(1) of the Act; whether Respondent discharged employees Edith Storck and Frank Todd because of their union activities in violation of Section 8(a)(3) of the Act; whether Respondent caused Norma Roseta to quit in violation of Sec- tion 8(a)(3) of the Act;4 and whether Respondent violated Section 8(a)(5) of the Act by refusing to bargain in good faith with the majority representative in an appropriate unit, and by bargaining directly with an employee. Background Peter Rojcewicz bought the A. L. French Co. in December 1961, operated it for awhile as a proprietorship, and then incorporated it. The business continued and is continuing substantially the same as it was under the former owner. From November 20, 1962, to December 11, 1962, the pertinent period of time, Respondent had a manager, Myron Center; a salesman, Howard Thompson; a deliveryman; office workers, Mrs. Edith Storck 5 and Mrs. Norma Roseta; and a warehouseman, Frank Todd. In the first half of November 1962,6 Roseta secured authorization cards from the Union, signed one, and gave one each to Storck and Todd for them to sign. They all signed and Storck gave them to the union organizer, Robert Erickson.7 The Union wrote a letter to Respondent on November 20 notifying it that a majority of its employees had authorized the Union to be their bargaining agent, and requested bargaining. The Respondent has never replied and no bargaining meeting with the Union has ever been held.8 Was Myron Center a Supervisor? Myron Center's title was manager. He admitted on cross-examination that he wrote letters for Respondent as "Manager." 9 He admitted talking to Storck asking her to return to work for Respondent,10 admitted recommending her to Rojcewicz, and admitted that his recommendation was followed in her hire. Roseta credibly testified she first talked about a job to Salesman Thompson who referred her to Center for interview who in turn interviewed her and hired her. Center testified that he "coordinated" the work of Storck and Roseta, determined the stock for sale, and worked out orders. He admitted that former employee Haag, who came to work late one day, said to him, "I don't know why you're so damn mad at me for being late." Further he admitted that Todd came to him for permission to go to the doctor and that permission was granted after he and Rojcewicz "talked it over." g This is based upon uncontradieted evidence adduced at the trial 4The complaint alleged alternatively that Roseta was a protest striker, hence an unfair labor practice striker 5 She became manager around November 26, 1962 8 All dates are in 1962 unless otherwise noted. 7 According to Storck's credited testimony, after she could not get a definite answer from the manager, Center, as to whether November 11 Is a holiday, she, Roseta, and Todd decided to go to the Union and join up with it Roseta agreed to get the authorization cards and Storck agreed to deliver them signed, to the Union. Roseta credibly testified the three of them talked over the problem and she agreed to get the cards 8 The above facts are taken from admissions of Respondent, stipulations of the parties, and credited testimony of Roseta and Todd. 9 He testified that much of his correspondence was handwritten and in it he did not use the term "Manager." 10 Storck credibly testified that she had worked for A. L. French Co before it was pur- chased by Rojcewicz. When she left it in January 1960, her position was taken by Margaret Gagnon. In July 1962, at the request of Center, she worked during Gagnon's vacation and when the latter left she took the job on a permanent basis, at the request of Center, beginning September 4 A. L. FRENCH CO. 631 He testified that he was paid hourly since first hired but on cross-examination he at first did not know his hourly rate of pay, finally stating he "believed" it to be $4 per hour. Rojcewicz testified that Center was paid a "guaranteed" $800 per month, one-half being paid twice a month. Storck and Gagnon testified that they, respec- tively, when working, made out Center's paychecks and it was never computed on an hourly basis but was based on $800 a month and was "split down the middle" and paid twice a month. Rojcewicz admitted instructing Center that all freight should be checked in. Todd's job was to check the freight. Rojcewicz instructed Center after he, Rojcewicz, found that Todd had not checked in certain freight from Garrison Fast Freight and found that there was a shortage in it. Haag must have considered Center his supervisor because he said to him, "I don't know why you're so damn mad at me for being late." A fellow employee, unlike a supervisor, ordinarily does not get "so damn mad" at another employee for being late. Here, Haag, according to Center's own testimony, was concerned about the ex- tent to which Center was "mad" at his tardiness and not concerned with the fact that Center was "mad." Both Storck and Roseta were hired by Center, and Center at one time gave Todd permission to go to the doctor. It is significant that Todd would come to him in the first place. As to the freight incident, it is significant that Rojcewicz went to Center after finding out that Todd was not checking in the freight, and told Center he did not want any freight without first checking it. Checking in freight was Todd's job, not Center's. Hence, this appears to be instructions as to company policy directed to one who had authority to see it was carried out. Finally, the credible testimony is that Center was salaried and not an hourly rated employee. While this alone may not be dispositive of the supervisory issue it none- theless weighs in that balance on the side of the supervisor. I find from the above testimony that Center was a supervisor within the meaning of the Act. He had authority, in the interest of Respondent, to hire or discipline other employees, or responsibly to direct them or effectively to recommend such action, and the exercise of such authority was not of a merely routine or clerical nature, but required the use of independent judgment I do not credit his denials of these powers. As I have concluded that Center is a supervisor, there remain but five nonsuper- visory employees working for Respondent. As three of them had signed cards authorizing the Union to represent them (the two ladies and Todd) a majority of the employees had selected the Union as their bargaining agent. But an essential element in an allegation of a refusal to bargain is the establishment of an ap- propriate unit. The Unit The unit set out in the complaint as a unit appropriate for the purpose of col- lective bargaining within the meaning of Section 9 (b) of the Act is All office, warehouse, and delivery employees of the Respondent at its Anchor- age, Alaska, office and warehouse, excluding guards and supervisors as defined in the Act. The Act itself states (Section 9(b)) that (the Board shall decide) an appropriate unit "shall be the employer unit ... plant unit, or subdivision thereof." As the above unit, in the instant case, covers all of Respondent's nonsupervisory employees, it obviously is an appropriate unit either as an "employer unit" or a "plant unit" and I so find. Now, as I have found above, three out of these five employees selected the Union as their bargaining agent,ii and it represented a majority of the employees. Rojcewicz admitted never questioning the unit when he received the Union's letter dated November 20 requesting bargaining. The Union Uncontradicted and credible evidence was adduced through Robert M. Erickson, Western Conference organizer of the Union, that the purpose of the Union was to represent employees, that it dealt with employees concerning grievances, rates of pay, and conditions of work, and that it admits employees into membership. I n There was evidence that these three employees were not interested in having the Union represent them once they had secured certain benefits and promises from Respondent, but there was no evidence of revocation of the authorization cards, and in this case this is the evidence necessary to disprove majority representation by the Union. 632 DECISIONS OF NATIONAL LABOR RELATIONS BOARD find the Union to be a labor organization within the meaning of Section 2(5)> of the Act. The 8(a)(1) Allegations The complaint alleges that Respondent through Center and Rojcewicz at certain specified times "interrogated its employees concerning their union membership, activities, and desires," and by so doing violated Section 7 of the Act. I find no persuasive evidence that Center ever did the alleged acts and will recom- mend the complaint as to him be dismissed. However, according to the credited testimony of Roseta, Storck, and Todd, and by admissions of Rojcewicz, the following is a pertinent summary of what took place at Respondent's place of business on Saturday, November 24, and thereafter. This was the day on which Rojcewicz received the letter, dated November 20, from the Union telling him that a majority of the employees had authorized it to bargain for them. He came into the office where Center and Storck were working 12 and asked Center if he knew anything about the letter. Center knew nothing about it Then Rojcewicz asked Storck if she knew anything about the letter. She replied, "Yes," and told him the action of the employees was brought on by his firing employee Haag.13 According to Storck's credited testimony, Rojcewicz then got upset and said, "Nobody was going to tell him how to run his business," and "that ends the profit sharing plan." That ended this incident. Then Rojcewicz went to the warehouse and asked Todd if he had signed a union card, to which Todd replied, "I'm afraid I did." Rojcewicz never threatened him but did say the profit-sharing plan would not be put into effect. Later that same Saturday, November 24, Storck telephoned Roseta and told her Rojcewicz had received the letter from the Union and related to her what had happened. Then, according to Roseta's credited testimony, Roseta met with Howard Thompson, the Respondent's salesman, about 3 o'clock in the afternoon at the Roaring 20's-a bar where her husband was the bartender. She discussed the em- ployees' grievances 14 with Thompson, among which was that she would not remain at the job if Center remained the manager. Thompson, a witness for Respondent, credibly testified that he met her and asked her why they had "signed up" with the Union. She told him she just could not get any satisfaction from Center. He sug- gested she talk to Rojcewicz and listened to her for some 2 hours going through the complaints she, Storck, and Todd had, including the "Haag" affair. He admitted that she told him the complaints, as she previously had testified. He also testified that she told him she really did not want to join the Union but only wanted to use the Union as a lever to get their demands The following day Thompson telephoned Roseta, reporting that he had spent some time talking with Rojcewicz, who was concerned about their eagerness to join the Union and wanted to know their grievances. Thompson was to arrange a meeting between Storck and Rojcewicz to discuss the grievances. He also reported to her that Storck would be named the manager. Roseta then reported the Thomp- son conversation to Storck and then to Todd. Thompson credibly testified that on the following Monday (November 26) morn- ing at 8 o'clock he met with Roseta, Storck, and Todd 15 for 15 minutes, during which time a list of things the employees wanted was prepared to be presented to Rojcewicz with Storck to be the representative to talk to him. He testified that Storck promised to write a letter to the Union withdrawing her authorization. On the list of things the employees wanted were such things as vacations, legal holidays, and sick leave According to Storck's credited testimony she then went over each demand with Rojcewicz in his office and he agreed to every one. Addi- 12 Roseta was not working that Saturday She and Storck earlier had arranged with Respondent whereby they would take turns working all day Saturdays rather than each working one-half day every Saturday 13 Haag is not involved in the case except that his leaving triggered Roseta, Storck, and Todd into signing the union authorizational cards 14 Her testimony on this point follows A Mr Thompson told me that he had spent a good part of the afternoon talking to Mr Rojcewizc [sic] in regard to our contacting the Teamsters Union And he asked me what our grievances were and what brought it about. I explained in detail what our grievances were with the idea that these grievances would be related to ,Mr. Rojcewizc [sic]. He told me lie would tell Mr Rojcewizc [sic] what our griev- ances were. 15 He said Roseta had requested the meeting , but also testified that Rojcewicz had sug- gested the meeting to get the plans of the employees A. L. FRENCH CO. 633 tionally he said, "You also heard that I give Christmas bonuses?" He gave her the insurance plans he had been working on to read and get her agreement. She agreed to talk to Roseta and Todd and "see if they were in agreement with all this" and to let him know later in the day. She then reported back to Rojcewicz that Roseta and Todd were in agreement . She then told him that since he was giving them all they wanted they no longer needed the Union . To this, she said, "he seemed real pleased." Rojcewicz admitted talking to Storck , but at her request. When Storck left the meeting with Rojcewicz she met with Roseta and Todd in the warehouse . There she told them that Rojcewicz had agreed that they should have at least 1 week's vacation and seven legal holidays and Storck would be the manager instead of Center. Also that he had remarked about a profit-sharing plan, a pension plan , and a bonus. Roseta then told Storck that she was very satisfied and saw no purpose in joining the Union if Rojcewicz would give the same benefits without the Union. Todd told the ladies that he would go along with them and not join the Union since they were satisfied with Rojcewicz ' promises. 16 After lunch the day Storck met with Rojcewicz , he, Rojcewicz , came in to where the ladies were working and said to Storck that he was going to sell the business. She asked him why and he replied that his head accountant had told him he "couldn't possibly operate the business with the union involved " Both ladies then told him they had no intention of joining the Union as they were satisfied with the conditions that he had offered them . He replied that the Union would get in anyway. Todd credibly testified that Rojcewicz came into the warehouse the following Wednesday or Thursday , where he was working and told him, . you people are asking too much , I can 't meet your demands" and that if the shop went union he would have to sell as he cannot meet demands . Todd told him . they were not going union. Storck credibly testified that 2 or 3 days after the three employees had told Rojcewicz they did not need a union , he told her that if she went to the Union to withdraw they would blackball her. He said this would be bad for Todd, a "wage earner," and that the correct answer was to hold an election . She then told him to go ahead and have an election and they would vote it down As to plans for an election , Rojcewicz testified that he telephoned the Board's Regional Office, told the Region his problem, and was promised some forms for an election, but that nothing further happened . He never received anything from the Regional Office nor did he follow up on his request . I need make no finding as to what actually took place nor if fault there be, whose it was. I only note that nothing happened for about 2 weeks when on December 11, 1962, Storck and Todd were discharged and Roseta quit. As to the contemplated sale of the business , Respondent put on witnesses who credibly testified they had talked with Rojcewicz about buying when he told them he was thinking of selling, with these talks being held in the spring of 1962, and as late as September 1962 No sale has been made As to fringe benefits, Respondent 's accountant credibly testified that action was taken, after December 1961 , to inaugurate a profit-sharing plan, an insurance plan, and a hospitalization plan, and that when Resoondent was incornorated in June, pension plans and hospital plans were discussed. Then as late as October or early November 1962, Rojcewicz brought him some insurance proposals for analysis. None of these plans were put into effect before the critical date of December 11, 1962. Conclusions as to the 8 ( a)(1) Violations Rojcewicz did, on November 24, ask Storck if she knew anything about the Union's letter of November 20 in which he had learned for the first time of the union ac- tivities of Roseta , Storck, and Todd . She replied and told him she did and why the action was taken He then went to the warehouse and asked a similar question of Todd. He was given an answer similar to that of Storck . In both instances he said, "That ends the profit -sharing plan" or words to that effect Under certain safeguards not present in this case . an employer havinI doubt of a Union's majority may question them 17 But when he asked them about their union 16 Roseta testified that when she was first hired she talked over fringe benefits such as vacations and holidays with Center , but he told her there was nothing current pending changes in the corporate setup , but that they would happen But she was not aware of anything being done until after the Union sent the letter of November 20 17 Blue Flash Express, Inc, 109 NLRB 591 634 DECISIONS OF NATIONAL LABOR RELATIONS BOARD activity concluding with a reference to the fact that some benefit would be lost, even though it had never been mentioned up to that time, he undoubtedly is interfering with the rights his employees have to join or not join a union, or to engage in or not engage in concerted activities 18 And, indeed, by signifying they were losing a benefit, albeit one not yet in effect, he undoubtedly coerced his employees. These actions violated Section 8 (a) (1) of the Act and I will recommend the Respondent cease and desist from them and similar actions. In addition I can arrive at no conclusion under these facts other than that Rojcewicz further interfered with his employees' union activities by starting a chain of events beginning with Thompson's first meeting with Roseta at the Roaring 20's and the plan to have one person, Storck, come to him with the grievances of his employees. Even if he originally never asked Thompson to act as a go-between, he did participate in the plan and this is sufficient to hold he was interfering with his employees' rights as given them by the Act. I add at this point that the Act does not require an employer to "love" or even to "like" a union. Neither is there a violation of the Act when an employer "dislikes" or "hates" unions. These strong feelings are not illegal but they may explain actions of employers. Here, there is direct evidence of asking an employee, under circumstances tending to interfere with his statutory rights, what he knows about a union and then telling him of a loss of a benefit he may have later had he not taken the union action be admitted taking. The ruling of the courts and the Board are that "interrogations," "inter- ference," and "coercion" are legal conclusions to be drawn from the facts, and that the question of whether or not an employee in fact felt coerced is irrelevant. There was "interference" here. In conclusion, then, Respondent did violate Section 8(a)(1) of the Act by the above actions Also the Employer's statement that he would have to sell his business because he could not meet the employees' demands or the Union's demands (it makes no difference which) violates Section 8(a)(1) of the Act. An employee is coerced by presenting him with another practical problem brought about because he was only exercising his lawful rights under the Act. The employer has no legal right thus to thrust on an employee a problem of who his next boss, if any, will be even though in a given case the employee is very capable of solving it and may welcome the challenge to his problem-solving capacity. Further, the Employer here violated Section 8(a) (1) of the Act by injecting himself into the private rights of his employees by discussing with them the consequences of seeking to withdraw from the Union, i.e., a possible "blackball," and suggesting the answer to be an election-knowing at the time and told by the employee that the Union would lose the election because he now had satisfied the employees who had authorized the Union to represent them and they would vote "No Union." This is the rankest kind of interference, being in the nature of a contrivance to avoid his responsibilities under the law. (See: Reserve Supply Corporation of L.1., Inc. v. N.L.R.B., 317 F. 2d 785 (C.A. 2) enfg. 140 NLRB 330. Thus it is seen that in the law of this vital and dynamic business of labor relations, an employer can violate the Act even if his actions might have been prompted with a sincere regard for the livelihood and wellbeing of his employees. The 8(a) (3) Allegations as to Storck and Todd Tuesday, December 11, about 3 o'clock in the afternoon, Rojcewicz came into the office where Storck and Roseta were working and loudly said to the former, "Get out! Get out! Write your check and get out of here " She replied, "Pete, Is Sections 7 and 8 provide* RIGHTS OF EMPLOYEES SEC. 7 Employees shall have the right to self-organization, to form, join, or assist labor organizations, to bargain collectively through representatives of their own choosing, and to engage in other concerted activities for the purpose of collective bargaining or other mutual aid or protection, and shall also have the right to refrain from any or all of such activities except to the extent that such right may be affected by an agreement requiring membership in a labor organization as a condition of em- ployment as authorized in section 8(a) (3) UNFAIR LABOR PRACTICES SEC 8. (a) It shall be an unfair labor practice for an employer- (1) to interfere with, restrain, or coerce employees in the exercise of the rights guaranteed in section 7 ; A. L. FRENCH CO. 635 what are you talking about?" He told her that she had been giving out confidential information to one of his competitors and he did not want to discuss it any more and for her to make out the check and get out. Roseta, "frightened" by the appearance of Rojcewicz, asked Storck to make out her check too. When asked at the hearing why she did this, she replied that she thought Rojcewicz would also fire her and she wished to leave before that happened. After Storck had made out both checks, Rojcewicz walked back into the room. He looked at Roseta's check for a moment and then saying, "So long as I have no office force I might as well clean house," he went out and called to Todd telling him, . I had no office help and therefore we couldn't make up any orders and I wouldn't be needing him." None of the three have been offered reinstatement. The above facts are largely uncontroverted and come from the testimony of Rojcewicz, Roseta, Storck, and Todd. Respondent's Position Rojcewicz testified that he was talking to Knott, a competitor operating Frigid Fruit & Produce, and quoted him an incorrect price for one of his articles. Knott corrected him by quoting Respondent's correct price. Knott was asked how he knew it and replied that his wife had told him through a leak from Storck. Knott testified this did not happen more than once. Rojcewicz immediately went back and fired Storck as set out above. Mrs. Knott also testified. She said she was concerned about the loyalty of both Storck and her employee Margaret Gagnon. Her testimony is: A. I really don't know anything except my bookkeeper was involved with another bookkeeper that was stirring up trouble, and I didn't want to get involved, and I think competition can be done on a friendly basis without having leaks in the company. TRIAL EXAMINER: Did you hear any leaks? The WITNESS: I didn't encourage it. I am too busy running that business and whenever anything started, I would try to avoid it. TRIAL EXAMINER: But you never heard of any leaks? The WITNESS: Well, I knew what A. L. French was charging for their stuff. TRIAL EXAMINER: How did you hear that? The WITNESS: Through Mrs. Gagnon. TRIAL EXAMINER: She told you that? The WITNESS: Yes. Mrs. Knott's testimony, as quoted above, was that she knew Respondent's prices through her bookkeeper, Gagnon. However, she would not testify that there was a leak from Respondent although pointedly asked this question by the Trial Examiner. Her most illuminating observation was, "I really don't know anything except my bookkeeper was involved with another bookkeeper that was stirring up trouble, and I didn't want to get involved." Then she added a general observation "and I think competition can be done on a friendly basis without having leaks in the company." Her bookkeeper "was involved with another bookkeeper that was stirring up trouble." The only "trouble" was the Union which Storck had helped bring in and the grievances which she brought up with Rojcewicz. This appeared to be more important than the general statement about friendly competition without leaks. Mrs. Storck and Mrs. Gagnon did have lunch together occasionally. They had known each other for years. Gagnon took Storck's place at the A. L. French Co. in January 1960. Storck relieved her during the July 1962 vacation period, and finally, when Gagnon left to work for Frigid Fruit & Produce, Storck came back to A. L. French Co. as a full-time employee on September 4, 1962. Both Gagnon, as of September, and Storck knew Respondent's prices. Storck denied disclosing confi- dential information. Analysis of the 8(a)(3) Under the Act,19 an employer may fire an employee for any reason whatsoever and no one may substitute his judgment as to the severity of the punishment for that 19 The Act provides. SEC. 8 (a) It shall be an unfair labor practice for an employer- s • s s • n s (3) by discrimination In regard to hire or tenure of employment or any term or condition of employment to encourage or discourage membership in any labor organization. 636 DECISIONS OF NATIONAL LABOR RELATIONS BOARD of the employer. 20 But the Act makes it an unfair labor practice under Section 8(a)(3) if an employee is discharged because he engaged in union activity. Such a discharge would discriminate against an employee and the discharge would dis- courage other employees from engaging in such activity. As the Act gave employees rights to engage in union activity, obviously these rights cannot be enjoyed if em- ployers fire those so engaged. This is simple. The hard part lies in determining the real reason why a given employee is fired. Rojcewicz said he discharged Storck because she gave out confidential information on his prices to a competitor. He found this out when he himself was quoting prices to the competitor. He was told the leak was from Storck through Gagnon, who he knew was familiar with his prices. Why then was he so angry and wished to fire this employee whom he had elevated to manager only 2 weeks before and who was thoroughly familiar with his business and with the business before he bought it? Why did not he check with Storck to get her side of the story? Of course this would not be expected were he an impulsive, head-strong person. But there was no evidence of this. He impressed me as a conservative businessman. Hence his actions are suspicious because they are so out of character. This thing Storck was alleged to have done was the very thing he was doing when it came to his attention. Storck's discharge certainly points to her union activity. She was the one who had told him what the November 20 letter was about and she was the one who had met with him as the representative of the employees over the list of grievances on November 26. She had even told him they would vote out the Union in an election. But an interesting thing about an election is that an employer may not have one unless he has reason to doubt the majority representation of the Union. Rojcewicz at no time doubted this He knew the three-mentioned employes had in fact signed union authorization cards So he knew a majority wanted the Union. Hence he could not have had an election. This may have accounted for the fact that he made no further effort to hold an election after November 27, the date he allegedly tele- phoned the Board's Regional Office. His 8(a)(1) activities set out above show he was desirous of getting rid of the Union. He gave in to all of the employees' grievances in an effort to cause them to leave the Union. They even told him they would not push for a union and were satisfied after they got their demands. Neither he nor they, apparently, knew a union authorization could not be revoked (for the purpose of causing a loss in majority status) when the revocation resulted from undermining tactics of the Employer More of this will be developed later under Section 8(a)(5) It appears to me that the reason given for discharging Storck was a pretext with the real reason being her union activities This is based on the fact that the given reason, under the circumstances. is inherently incredible. This incredible reason coupled with Rojcewicz' knowledge of Storck's union activities, plus his efforts to undermine the majority status of the Union, and his interference and coercive tactics discussed above, lead to the sound inference that he discharged her for union activities in violation of Section 8(a) (3) and I so find. The case of Roseta, at first blush, looks like a "quit " But why did she quit and why didn't Rojcewicz talk to her? Rojcewicz never said a thing to her. Picture a sound, practical businessman quitely losing his whole office force and going out of business. It is incredible. Why should he speak up, however, if this were exactly what he wished? It is not necessary that it be established that he knew or had reason to know that a discharge of Storck would cause Roseta to quit although there is some evidence which would lead to that conclusion. The reason why the three employees signed the union cards was because of the recent "Haag discharge" and Rojcewicz was told this. There is no question but what this discharge of Storck, being as arbitrary as it was, did frighten Roseta into quitting. She quit before she would be discharged. Hence Rojcewicz, having put into action this chain of events, caused her to leave the Respondent as if he had in fact discharged her. Accordingly this also violates Section 8(a)(3) Todd's case tends to prove that of Roseta. Rojcewicz went right out and "cleaned house " He fired Todd giving as the reason that he did not need a warehouseman with no office help. But he did not fire Center, nor his salesman, Thompson, who could not sell without an office force to back him up. Nor did he fire the deliveryman who had neither an office force nor a warehouse to give him anything to deliver The discharge reason for Todd, when analyzed. is not reasonable nor credible. The inference that he was fired for his known union activities is most compelling and I find he to was discharged in violation of Section 8(a)(3) of the Act. 20 N L. I? B v T. A McGahey, et al d /b/a Columbus Marble Works, 233 F 2d 406, 413 (C A 5). See also N L.R B v Hudson Pulp & Paper Corporation, 273 F. 2d 660, 666 (CA 5) A. L. FRENCH CO. 637 The 8(a)(5) Allegations Respondent was notified by letter dated November 20 that the Union represented a majority of his employees and wished to bargain. At the time he received the letter he was told by both Storck and Todd that they and Roseta had so authorized the Union. Thus the Union did in fact represent a majority of all his nonsupervisory employees, a fact which he never questioned. But he never replied to the letter. He stipulated that he made no effort to even answer the letter. But under the law, an employer must meet and bargain in good faith with the majority representative of his employees in an appropriate unit. By not doing so he violates Section 8(a)(5) of the Act 21 There was no questioning of the unit, which was found above to be appropriate. Likewise, an employer who makes unilateral changes in the terms and conditions of employment of his employees without first bargaining with the majority repre- sentative violates Section 8(a)(5) of the Act. Respondent agreed to the grievances of the employees on November 26 which up to that time were not known conditions of employment, and hence, without bargaining with the Union, he "unilaterally" put them into effect This, I find, violated Section 8(a) (5) of the Act. Further for an employer to bargain with an individual over terms and conditions of employment when there was in existence a majority representative is also a refusal to bargain in good faith within the meaning of Section 8(a) (5) of the Act 22 Not only did Respondent meet and bargain with Storck, but he had even suggested that she meet with him as the representative of the employees. This is a flagrant by- passing of the majority representative which violates Section 8(a) (5) and I so find. Likewise Respondent's threats to sell should a union be the majority agent induced the employees to promise to revoke their authorizations. He is responsible for this because he started it all by his threat to sell. This is a deliberate undermining of the majority representative and violates Section 8(a) (5) of the Act because it is not possible to bargain in good faith with the agent of the employees while at the same time attempting to destroy the agent. IV. THE EFFECT OF THE UNFAIR LABOR PRACTICES UPON COMMERCE The activities of the Respondent set forth in section III, above, occurring in con- nection with the operations of the Respondent described in section I, above, have a close, intimate, and substantial relation to trade, traffic, and commerce among the several States and tend to lead to labor disputes burdening and obstructing commerce and the free flow of commerce. V. THE REMEDY Having found that Respondent has engaged in unfair labor practices violative of Section 8(a)(1) and (3) of the Act, I shall recommend below that it cease and desist therefrom and take certain affirmative action designed to effectuate the policies of the Act. The Respondent's unfair labor practices strike at the heart of the rights guaranteed employees by Section 7 of the Act.23 The rights involved are closely related to other rights guaranteed by Section 7. The Company's independent violations of Section 8 (a) (1) evince a general hostility to the right of employees to engage in legitimate concerted activities 24 and because of the nature of the unfair labor practices found, there is reasonable ground to believe that Respondent will infringe upon such other rights in the future unless appropriately restrained. Therefore, in order to make effective the interdependent guarantees of Section 7, I shall recom- mend an order below which will have the effect of requiring the Respondent to refrain in the future from abridging any of the rights guaranteed employees by Section 7.25 4 The Act provides: Sec. 8 (a) It shall be an unfair labor practice for an employer- t (5) to refuse to bargain collectively with the representatives of his employees, subject to the provisions of section 9(a) 22 See Rockwell Manufacturing Company , Kearney Division, 142 NLRB 741. 22 N.L R B v Entwistle Mfg. Co, 120 F 2d 532 (C A 4) 24 Rockwell Manufacturing Company, Kearney Division , 142 NLRB 741 25 May Department Stores v. N .L R.B., 326 U.S 376; Bethlehem Steel Company v. NLRB.. 120 F. 2d 641 (CA.DC). 638 DECISIONS OF NATIONAL LABOR RELATIONS BOARD Having found that Respondent has discriminatorily discharged and refused to reinstate Edith Storck and Frank Todd, and has discriminatorily caused the quit of Norma Roseta and refused to reinstate her, I will recommend that Respondent be ordered to offer them immediate and full reinstatement to their former or substan- tially equivalent positions, and make them whole for any loss of earnings they may have suffered because of the discrimination against them, by payment to them of a sum of money equal to the amount of wages they would have earned from the date of the discrimination to the date of the offer of reinstatement together with interest thereon at the rate of 6 percent per annum and that the loss of pay and interest be computed in accordance with the formula and method prescribed by the Board in F. W. Woolworth Company, 90 NLRB 289, and Isis Plumbing & Heating Co., 138 NLRB 716, to which the parties hereto are expressly referred. Having found that Respondent has refused to meet and bargain in good faith with the Union, the majority representative of the employees in an appropriate unit, I will order it to do so and reduce to writing any agreement they may reach. CONCLUSIONS OF LAW 1. The Respondent is engaged in commerce within the meaning of Section 2(6) and (7) of the Act. 2. International Brotherhood of Teamsters, Chauffeurs, Warehousemen and Helpers of America, Local 959, is a labor organization within the meaning of Section 2(5) of the Act. 3. By interrogating employees about the letter from the Union, by threatening employees with loss of benefit, e.g., "that ends the profit-sharing plan," after being told by them of the Union, by starting or agreeing to a plan to meet and bargain with an employee over grievances when there was a majority representative of the employees, by so meeting and bargaining with an employee over grievances, by holding out promises of benefit if the employees would give up the Union, by co- ercively threatening to sell because of the Union, and by interfering with employees by suggesting how they could eliminate their representative without fear of conse- quences, e.g., "blackball," Respondent interfered with, restrained, and coerced its employees in the exercise of their rights guaranteed in Section 7 of the Act, in viola- lation of Section 8(a) (1) of the Act. 4. By discharging employees Storck and Todd because of their union activities, and permitting employee Roseta to quit because of her union activities, Respondent has engaged in unfair labor practices within the meaning of Section 8(a)(3) and (1) of the Act. 5. By not making an effort to meet and refusing to bargain in good faith with the majority representative of his employees in the aforesaid appropriate unit, by making unilateral changes in the terms and conditions of employment of his em- ployees without first bargaining with the majority representative of his employees, by bargaining with an individual employee over terms and conditions of employ- ment when there was in existence a majority representative of the employees, by attempting to undermine the majority representative of the employees in the afore- said appropriate unit with threats to sell and inducements to employees to revoke their union authorizations, Respondent has engaged in unfair labor practices within the meaning of Section 8(a) (5) of the Act. 6. The aforesaid unfair labor practices are unfair labor practices affecting com- merce within the meaning of Section 2(6) and (7) of the Act. 7. A preponderance of the evidence does not support allegations in the complaint that Respondent violated Section 8(a)(1) of the Act except in the respect above found. Upon the basis of the foregoing findings of fact and conclusions of law and upon the entire record in the case, I hereby issue the following: RECOMMENDED ORDER Action Wholesale Company, Inc., d/b/a A. L. French Co., its officers, agents, successors, and assigns , shall: 1. Cease and desist from: (a) Interrogating employees about their union activities in a manner constituting interference, restraint, or coercion in violation of Section 8 (a) (1) of the Act. (b) Threatening employees with the loss of benefits and the sale of business because of their union activities. (c) Promising benefits to employees if they would give up their union activities. (d) Interfering with the rights of employees by making suggestions as to how the employees could eliminate the Union. A. L. FRENCH CO. 639 (e) Discouraging membership in International Brotherhood of Teamsters, Chauf- feurs, Warehousemen and Helpers of America, Local 959, or any other labor organiza- tion of its employees , by discharging its employees or permitting them to quit as a consequence of such discharge , because of their concerted or union activities, or in any other manner discriminating in regard to their hire or tenure of employment or any term or condition of employment. (f) Refusing to meet and bargain with the majority representative of the employees in the previously described appropriate unit. (g) In any other manner interfering with, restraining , or coercing employees in the exercise of their right to self-organization , to form labor organizations , to join or assist International Brotherhood of Teamsters , Chauffeurs, Warehousemen and Helpers of America, Local 959, or any other labor organization, to bargain collec- tively through representatives of their own choosing, and to engage in other con- certed activities for the purpose of collective bargaining or other mutual aid or protection , or to refrain from engaging in such activities. 2. Take the following affirmative action which it is found will effectuate the policies of the Act: (a) Offer Edith Storck, Frank Todd, and Norma Roseta immediate and full reinstatement to their former or substantially equivalent positions without prejudice to all rights and privileges to which they are entitled , and make them whole in the manner set forth above in the section entitled "The Remedy." (b) Preserve until compliance with any order for reinstatement or backpay made by the Board is effectuated and, upon request , make available to the said Board and its agent, for examination and copying, all payroll records, social security pay- ment records, timecards, personnel records and reports, and all other records rela- tive to a determination of the amount of backpay due, and to the reinstatement and related rights provided under the terms of any such order. (c) Post at its place of business in Anchorage, Alaska, copies of the attached notice marked "Appendix A." 26 Copies of said notice , to be furnished by the Regional Director for the Nineteenth Region, shall , after being signed by Respondent's rep- resentative , be posted by Respondent immediately upon receipt thereof and main- tained by it for 60 consecutive days thereafter in conspicuous places, including all places where notices to employees are customarily posted . Reasonable steps shall be taken by Respondent to insure that said notices are not -altered , defaced, or covered by any other material. (d) Notify the Regional Director for the Nineteenth Region, in writing , within 20 days from the receipt of this Intermediate Report , what steps Respondent has taken to comply herewith 27 It is further recommended that the complaint be dismissed insofar as it alleges violations of Section 8 (a) (1) of the Act, except as herein specifically found. zo If this Recommended Order Is adopted by the Board , the words "A Decision and Order" shall be substituted for the words "The Recommended Order of a Trial Examiner" in the notice If the Board 's Order is enforced by a decree of a United States Court of Appeals , the notice will be further amended by the substitution of the words "A Decree of the United States Court of Appeals , Enforcing an Order" for the words "A Decision and Order " If this Recommended Order is adopted by the Board, this provision shall be modified to read: "Notify the Regional Director for the Nineteenth Region, in writing, within 10 days from the date of this Order , what steps Respondent has taken to comply herewith " APPENDIX A NOTICE To ALL EMPLOYEES Pursuant to the Recommended Order of a Trial Examiner of the National Labor Relations Board, and in order to effectuate the policies of the Labor Management Relations Act, we hereby notify our employees that: WE WILL NOT interrogate our employees about their union activities, nor threaten them with loss of benefits should they engage in union activities, nor promise benefits to employees to give up their union activities , nor threaten to sell because of the union activities of our employees , nor interfere with the union activities of the employees by suggesting methods whereby they could eliminate their majority representative without fear of consequences. WE WILL NOT discourage membership in International Brotherhood of Teamsters , Chauffeurs , Warehousemen and Helpers of America, Local 959, or any other labor organization of our employees by discharging employees because 640 DECISIONS OF NATIONAL LABOR RELATIONS BOARD of their concerted or union activities, or in any other manner discriminating in regard to their hire or tenure of employment or any term or condition of employment. WE WILL NOT in any other manner interfere with, restrain, or coerce employees in the exercise of their right to self-organization, to form, join, or assist labor organizations, to bargain collectively through representatives of their own choosing, and to engage in other concerted activities for the purpose of collective bargaining or other mutual aid or protection or to refrain from engaging in such activities. WE WILL offer immediate and full reinstatement to Edith Storck, Frank Todd, and Norma Roseta, and we will make them whole for any loss they may have suffered as a result of the discrimination against them. WE WILL, upon request, bargain collectively with International Brotherhood of Teamsters, Chauffeurs, Warehousemen and Helpers of America, Local 959, or any other labor organization of our employees, in the following unit of employees with respect to rates of pay, wages, hours of work, and other condi- tions of employment and, if an understanding is reached, embody such under- standing in a signed agreement: All office, warehouse, and delivery employees at our Anchorage, Alaska, office and warehouse, excluding guards and supervisors as defined in the Act. All our employees are free to become or remain, or to refrain from becoming or remaining members of the above-named or any other labor organization. ACTION WHOLESALE COMPANY, INC., D/B/A A. L. FRENCH CO., Employer. Dated------------------- By------------------------------------------- (Representative) (Title) NOTE.-We will notify the above-named employees if presently serving in the Armed Forces of the United States of their right to full reinstatement upon applica- tion in accordance with the Selective Service Act and the Universal Military Training and Service Act of 1948, as amended, after discharge from the Armed Forces. This notice must remain posted for 60 consecutive days from the date of posting, and must not be altered, defaced, or covered by any other material. Employees may communicate directly with the Board's Regional Office, 327 Logan Building, 500 Union Street, Seattle, Washington, Telephone No. Mutual 2-3300, Extension 553, if they have any question concerning this notice or compliance with its provisions. Hankins Container Company , a Division of The Flintkote Com- pany and Southern States Regional Council, Region 5, Inter- national Woodworkers of America.' Case No. 15-CA-p3191. December 26, 1963 DECISION AND ORDER On June 20, 1963, Trial Examiner Thomas S. Wilson issued his Intermediate Report in the above-entitled proceeding, finding that the Respondent had engaged in and was engaging in certain unfair labor practices sand recommending that it cease and desist therefrom and take certain affirmative action, as set forth in the attached Inter- mediate Report. Thereafter, the Respondent and the General Counsel 1 Southern -States Regional Council, Region 5, is an administrative subdivision of Inter- national Woodworkers of America , AFL-CIO, which is the labor organization involved herein. 145 NLRB No. 62. Copy with citationCopy as parenthetical citation