Alton-Arlan's Dept. Store, Inc.Download PDFNational Labor Relations Board - Board DecisionsJan 27, 1965150 N.L.R.B. 1303 (N.L.R.B. 1965) Copy Citation ALTON-ARLAN'S DEPT. INC. 1303 WE WILL NOT interfere with the efforts of Insurance Woikers International Union , AFL-CIO, to negotiate for or represent as exclusive bargaining agent the employees in the bargaining unit described below. WE WILL, upon request, bargain with the above -named Union , as the exclusive representative of all the employees in the bargaining unit described below with respect to rates of pay, wages , hours of employment , and other conditions of employment , and, if an understanding is reached , embody such an understanding in a signed agreement. The bargaining unit is: All Metropolitan Insurance consultants and canvassing , regular, and office account agents of the Company, attached to the district office and to the Litchfield and Gillespie detached offices attached to the district office in Alton, Illinois, excluding independent agents, retired agents, managers, assistant manager, cashiers , clerical employees , secretaries , professional employees , guards, watchmen , and supervisors , as defined in the Act. METROPOLITAN LIFE INSURANCE COMPANY, Employer. Dated---------------- --- By------------------------------------------- (Representative) (Title) 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, 4459 Federal Building , 1520 Market Street, St. Louis, Missouri, Telephone No. Main 2-4142, if they have any questions concerning this notice or compliance with its provisions. Alton-Arlan 's Dept. Store, Inc. and Retail Clerks Local 149, Re- tail Clerks International Association , AFL-CIO. Case No. 14-CA-318. January 97, 1965 DECISION AND ORDER On October 13, 1964, Trial Examiner Morton D. Friedman issued his Decision in the above-entitled proceeding, finding that Respond- ent had engaged in certain unfair labor practices and recommending that it cease and desist therefrom and take certain affirmative action as set forth in the attached Decision. The Trial Examiner also found that Respondent had not engaged in certain other unfair labor practices and recommended that the complaint be dismissed with respect to such allegations. Thereafter, Respondent filed exceptions to the Trial Examiner's Decision, and also filed a supporting brief.' The Charging Party filed a brief in answer to the exceptions. Pursuant to the provisions of Section 3(b) of the National Labor Relations Act, the Board has delegated-its powers in connection with this case to a three-member panel [Members Fanning, Brown, and Jenkins]. . The Board has reviewed the rulings of the Trial Examiner made at the hearing and finds that no prejudicial error was committed. 'The Respondent has requested oral argument . ' Because, in our opinion , the record and briefs adequately set forth the issues and position of the parties , this request is hereby denied. 150 NLRB No. 124. 1304 DECISIONS OF NATIONAL LABOR RELATIONS BOARD The rulings are hereby affirmed. The Board has considered the Trial Examiner's Decision, the exceptions and brief, and the entire record in this case, and hereby` adopts the findings, conclusions, and recommendations of the Trial Examiner with the exceptions stated below. 1. We agree with the Trial Examiner, for the reasons set forth in his Decision, that the Respondent in discharging the four custodial employees and subcontracting their work was motivated by a desire to rid itself of any possible obligation to recognize or bargain with the Union on their behalf, and by so doing the Respondent violated Section 8 (a) (1) and (3) of the Act.2 2. However, we' do not agree with the Trial Examiner that the Respondent by subcontracting the custodial work without prior notice to, and consultation with, the Union violated Section 8(a) (5) of the Act .3 In finding the violation, the Trial Examiner was of the view that the custodial employees were part of the unit represented by the Union and covered under the terms of the agreement between the Union and the Respondent. On the evidence before us we reach a different result. As noted hereafter, the evidence supports the Respondent's contention that it was the intent of the parties to exclude the custodial employees from the contract unit coverage, and hence that it had no obligation to bargain with the Union on that basis. The Respondent operates some 43 retail stores throughout the country. Many of these stores are represented by different locals of the Retail Clerks, and in many of the stores the Respondent has collective-bargaining agreements which exclude custodial employees from the contract unit. One such agreement is that covering the employees at the Respondent's St. Louis store. The Respondent and the Union entered into a recognition agree- ment in the latter part of August 1963 when a card check showed that the Union had signed up a majority of the Respondent's em- ployees. The Union's majority was tested against a list of employees in the appropriate unit submitted by the Respondent. This list did not include the name of one Harold Mayhall who at the time of the card check was the only custodial employee at the Alton store. The Union knew of Mayhall's employment and in fact purported to have obtained an authorization card from him, but it did not challenge or raise any question as to his exclusion from the Respondent's list. The recognition agreement signed by the Union and Respondent in defining the composition of the unit excluded all persons ex- 21n the absence of exceptions thereto, we affirm the Trial Examiner's dismissal of the 8 (a) (1) allegation. 3 Sec East Bay Union of Machinists, Local 1304, United Steelworkers of America, AFL-CIO ( Fibreboard Paper Products Corporation ) v. N.L.R B., 379 U. S. 203. ALTON-ARLAN'S DEPT. INC. 1305 eluded under Arlan's St. Louis contract. It was conceded by Ray Haggard, the Union's representative, that before entering into the recognition agreement he had been informed by his Union's Interna- tional representative that it was all right to agree to the St. Louis coverage. Thus the coverage of the custodial employees was a mat- ter specifically dealt with at the time of the negotiations because by agreeing to exclude the same employees excluded under the St. Louis agreement, the parties intended to exclude the custodial employees 4 We are further supported in our conclusion that it was the intent of the parties to exclude the custodial employees by the nature of the agreement entered into by the parties. It is undisputed that the custodial employees were employed only between the hours of 10 p.m. and 8 a.m. At the Arlan store they received an hourly rate which was less than the lowest wage stipulated in the contract for any specified classification of employees. The contract also provided that employees who worked between 10 p.m. and 8 a.m. were to receive time and one-half for all hours worked, and no exception was writ- ten into the contract for the custodial employees. Thus, if the Union's contention that these employees were covered by the con- tract were correct, the custodial employees who were hired at a rate less than that paid to any other employees would be contractually entitled to receive time and a half for their normal work schedule. This would result in their receiving a rate far in excess of the maxi- mum pay received by the most experienced and skilled hourly em- ployee. This disparate result lends weight to a determination that it was not the intent of the parties to include custodial employees in the coverage of their contract. As the Union asserted only a right to bargain for the custodial employees as part of the contract unit, and on no other appropriate unit basis, and as we have found that the custodial employees were not part of the contract unit; we conclude that the Respondent was not obligated to bargain with the Union for them and hence by sub- contracting the custodial work without prior notice to, or consulta- tion with, the Union, the Respondent did not violate Section 8(a) (5) of the Act. 3. As we have found that the Respondent discontinued its cus- todial operation, and thereby terminated the four custodial em- ployees in violation of Section 8 (a) (3) and (1) of the Act, the Respondent will be ordered to resume the custodial services and offer to all four employees who were unlawfully discharged immediate ,We deem it immaterial that the custodial employees at the Alton store did not also perform guard duties as did the custodians at the Employer ' s St. Louis store in view of our conclusion that the parties, by excluding Mayhall 's name from the list of em- ployees attached to the recognition agreement and by not providing a contract rate for his classification , clearly intended to exclude custodial employees from the unit. 1306 DECISIONS OF NATIONAL LABOR RELATIONS BOARD and full reinstatement to their former or substantially equivalent positions, without prejudice to their seniority or other rights and privileges. ORDER Pursuant to Section 10(c) of the National Labor Relations Act, as amended, the National Labor Relations Board hereby orders that the Respondent, Alton-Arlan Dept. Store, Inc., East Alton, Illinois, its officers, agents, successors, and assigns, shall: 1. Cease and desist from : (a) Discouraging membership in Retail Clerks Local 149, Retail Clerks International Association, AFL-CIO, or any other labor organization of its employees, by discharging or in any other man- ner discriminating in regard to their hire or tenure of employment or any term or condition of employment. (b) In any other manner interfering with, restraining, or coercing employees in the exercise of the right to self-organization, to form- labor organizations, to join or assist the above-named or any other labor organization, to bargain collectively through representatives of their own choosing, and to engage in any other concerted activi- ties for the purposes of collective bargaining or other mutual aid or protection, or to refrain from any and all 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 employment, as authorized in Section 8(a) (3) of the Act, as modified by the Labor- Management Reporting and Disclosure Act of 1959. 2. Take the following affirmative action which the Board finds will effectuate the policies of the Act : (a) Resume the custodial operations previously performed by its employees. (b) Offer Harold G. Mayhill, Ervin R. Hancock, David L. Rob- erts, and William T. Stalp reinstatement to their former or substan- tially equivalent jobs, without prejudice to their seniority or other rights and privileges, and make them whole for any loss of pay suf- fered by them by reason of the discrimination against them, from the date of their discharge on December 4, 1963, to the date of the offer of reinstatement. Loss of pay shall be computed as prescribed in F. W. Woolworth Company, 90 NLRB 289, and interest on such backpay shall be computed at 6 percent per annum in accordance with Isis Heating cf Plumbing Co., 138 NLRB 716. (c) Notify the above-named employees if presently serving in the Armed Forces of the United States of their right to full reinstate- ment upon 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. ALTON-ARLAN' S DEPT. INC. 1307 (d) Preserve and, upon request, make available to the Board and its agents, for examination and copying, all payroll records, social security payment records, timecards,, personnel records and reports, and all other records necessary or useful to determine the amount of backpay due and the rights of reinstatement under the terms of this Order. (e) Post at its retail store in East Alton, Illinois, copies of the attached notice marked "Appendix." 5 Copies of said notice, to be furnished by the Regional Director for Region 14, shall, after being duly signed by the Respondent's ' representative, be posted by the Respondent immediately upon receipt thereof, and be maintained by it for 60 consecutive days thereafter, in conspicuous places, in- cluding all places where notices to its 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. (f) Notify the Regional Director for Region 14, in writing, within 10 days from the date of this Order, what steps the Respondent has taken to comply herewith. IT Is FURTHER ORDERED that the complaint, insofar as it alleges that the Respondent violated Section 8(a) (5), of the Act and that the Respondent had independently violated Section 8(a) (1) of the Act, be, and it hereby is, dismissed. ' In the event that this Order is enforced by a decree of a United States Court of Appeals, there shall be substituted for the words "a Decision and Order" the words "a Decree of the United States Court of Appeals, Enforcing an Order". APPENDIX NOTICE TO ALL EMPLOYEES Pursuant to a Decision and Order of the National Labor Relations Board, and in order to effectuate the polices of the National Labor Relations Act, as amended, we hereby notify our employees that : WE WILL NOT discourage membership in Retail Clerks Local 149, Retail Clerks International Association, AFL-CIO, or in any other labor organization of our employees, by discharging or discriminating against them in regard to their hire and tenure of employment. WE WILL NOT in any other manner interfere with, restrain, or coerce our employees in the exercise of their right to self- organization, to form labor organizations, to join or assist Retail Clerks Local 149, Retail Clerks International Association, AFL- CIO, or any other labor organization, to bargain collectively through representatives of their own choosing, and to engage in other concerted activities for the purposes of collective bargain- 1308 DECISIONS OF NATIONAL LABOR RELATIONS BOARD ing or other mutual aid or protection , and to refrain from any and all 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 employment ; as authorized by Section 8(a) (3) of the Act, as modified by the Labor -Manage- ment Reporting and Disclosure Act of 1959. WE WILL resume our custodial operation previously performed by our employees. WE wILL offer to Ervin R. Hancock , Harold G. Mayhall, David L. Roberts , and William T. Stalp immediate and full reinstatement to their former or substantially equivalent jobs, without prejudice to their seniority or other rights and privi- leges, and make them whole for any loss of pay suffered by them by reason of the discrimination against them. ALTON-ARLAN 'S DEPT. STORE, INC., Employer. Dated- --------------- By------------------------------------ (Itepresentative ) ( 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 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, 4459 Federal Building , 1520 Market Street , St. Louis, Mis- souri, Telephone No. Main 2-4142 , if they have any question con- cerning this notice or compliance with its provisions. TRIAL EXAMINER'S DECISION - STATEMENT OF THE CASE Upon a charge filed on December 11, 1963, by Retail Clerks Local 149, Retail Clerks International Association , AFL-CIO, herein referred to as the Union, the Regional Director for Region 14 of the National Labor Relations Board, herein called the Board, issued a complaint on March 31, 1964, on behalf of the General Counsel of the Board against Alton-Arlan's Dept. Store, Inc., hereinafter referred to as the Respondent or the Company, alleging violations of Section 8(a)(1); (3 ), and (5) of the National Labor Relations Act, as amended (29 U.S.C. Sec. 151, et seq .), herein called the Act. In its duly filed answer to the aforesaid complaint, the Respondent, while admitting certain of the allegations thereof, denied the commission of any unfair labor practices. Pursuant to notice , a hearing was held before Morton D. Friedman in St . Louis, Missouri , on May 18 and 19, 1964. All parties were present and afforded full oppor- tunity to be heard, to introduce relevant evidence, to present oral argument, and to file briefs . Oral argument was waived . Briefs were filed by the Respondent and counsel for the General Counsel. ALTON-ARLAN'S DEPT. INC. 1309 Upon consideration of the entire record in this case, including the briefs of the parties, and upon my observation of, the demeanor of each of the witnesses testifying before me, I make the following: FINDINGS OF FACT AND CONCLUSIONS OF LAW 1. THE BUSINESS OF THE RESPONDENT At all times material herein, the Respondent has been and is an Illinois corporation and since on or about August 22, 1963, has operated and is operating a retail depart- ment store in the city of East Alton, Illinois. Respondent's, projected annual gross retail sales of goods and materials will exceed $500,000. Since on or about August 22, 1963, Respondent has purchased, transferred, and delivered to its East Alton, Illinois, retail department store goods and materials of a value in excess of $50,000, which goods and materials were transported to said store directly from States of the United States other than the State of Illinois. It is admitted, and I find and conclude, that the Respondent is engaged in commerce within the meaning of the Act and that it will effectuate the policies of the Act to assert jurisdiction herein. H. THE LABOR ORGANIZATION INVOLVED It is admitted and I find that the Union is now , and has been at all times material herein , a labor organization within the meaning of Section 2(5) of the Act. III. THE ISSUES The complaint alleges, in substance, that Respondent's store manager, Chris Gill, threatened an employee with discharge if the latter and other employees chose to be represented by the Union in violation of Section 8(a) (1) of the Act. A further allega- tion of the complaint alleges that the Respondent discharged certain janitorial employees; namely, Ervin R. Hancock, Harold G. Mayhall, David L. Roberts, and William T. Stalp and refused to reinstate them because they had joined and had requested the Union to assist them in obtaining union wages for their work. A third allegation of the complaint alleges a violation of Section 8(a) (5) contending that the Respondent refused to bargain in good faith when it subcontracted the janitorial services it had performed through the above-named employees and contracted with an independent contractor for janitorial services without consulting with the Union with regard to this subletting. The Respondent denies, in the main, the allegations of the complaint. Affirmatively, Respondent contends that with regard to the discharges, all of the four janitors were discharged for cause, in that they had failed to perform their duties properly. With regard to the refusal-to-bargain allegation, the Respondent affirmatively alleges that the alleged discriminatees performed both janitor and guard work and as such were specifically excluded from the unit represented by the Union and that therefore the Respondent was under, no obligation to bargain with the Union as to the subcontracting of the janitorial services because this was not unit work. Thus the issues would seem to be: (a) Did the Respondent violate Section 8(a) (1) of the Act by Store Manager Gill threatening employee Mayhall with discharge if the latter and other employees chose to be represented by a labor organization? (b) Did the Respondent violate Section 8(a)(3) of the Act by discharging employees Mayhall, Roberts, Stalp, and Hancock or were the latter discharged for cause? (c) Did the Respondent violate Section 8(a) (5) of the Act by subcontracting the janitorial services unilaterally and without prior negotiations with the Union or were the janitorial services performed by the above-named employees not unit work'? A subissue relating to this issue is whether these employees were janitors or guards within the meaning of the Act. A still further subissue is whether or not the parties contem- plated including in the unit these janitorial employees. IV. THE UNFAIR LABOR PRACTICES A. Background The Respondent, a separate corporate entity, is I of 43 discount department stores operated by a parent corporation, Arlan's Department Stores, Inc. The Respondent began its retail department store operations on or about August 22, 1963. Before the store was operating, the Union began organizing among the Respondent's employees 1310 DECISIONS OF NATIONAL LABOR RELATIONS BOARD to the extent that sometime before August 18 or 19, Ray Haggard , a business repre- sentative for the Union, made a demand for recognition upon Chris Gill, the manager of the Respondent's store. As a result, and upon agreement with Respondent's counsel, the police chief of East Alton conducted a card check and concluded that a majority of Respondent's employees had designated the Union as their collective- bargaining representative. Based on this card check, the Union was recognized by the Respondent and immediately thereafter, on the same day as the card check, upon insistence of the Union, a recognition agreement was drawn up in which it was agreed that the Union was recognized by the Respondent as the collective-bargaining repre- sentative of all of the Respondent's employees in the following unit: All employees employed by the Company and all employees employed by the licensed departments, excluding all persons excluded under the Arlan's St. Louis con- tract and also excluding assistant office manager and all employees of the food operation.l Attached to this recognition agreement was a list, supplied by the Respondent, of all employees purportedly in the unit. It should be noted for reference hereinafter that Harold Mayhall, one of the alleged discriminatees, who was the only member of the custodial staff employed by the Respondent at the time of the recognition agreement, was not named among the employees on the list. After the recognition agreement was executed, the Respondent and the Union entered into negotiations toward a formal collective-bargaining agreement. These negotiations ended on or about November 12, when a collective-bargaining agree- ment was executed. Among other things, the agreement provided for a bargaining unit as follows: All regular full-time and regular part-time employees of Alton-Arlan's Dept. Store, Inc., located at 613 St. Louis Avenue, East Alton, Illinois, including leased department employees, but excluding the store manager, the assistant store manager, office manager, assistant office manager, head cashiers, head receiver„head hard-line receiver, head soft-line receiver, leased department managers, guards, professional employees, and supervisors as defined in the Act. It should be noted that the unit description follows almost word for word the unit description of the agreement with the Union covering the St. Louis store which the recognition agreement purported to follow. The only difference between the unit description above set forth and the unit description in the St. Louis agreement is that the unit description above set forth includes the assistant office manager. Guards are excluded from both units. B. The alleged interference, coercion , and restraint Harold G. Mayhall was hired by the Respondent sometime toward the end of July 1963 and was assigned to custodial duties. The major part of his time was spent in cleaning the store. Sometime during the latter part of November 1963, Mayhall had a conversation with Store Manager Chris Gill. Mayhall and Gill were alone when the conversation occurred. Mayhall testified that he asked Gill if the custodial department employees were covered in the contract between the Union and the Respondent and Gill answered that if they were he would have to let them go because he could get an outside cleaning service to do the work more cheaply. On the other hand, Gill testified that on or about November 15, Mayhall came to him and mentioned that the other people, meaning the sales people, were going to get more money. Gill told Mayhall that the latter did not have to worry about his wages and that the Company would compensate him later on, if he did a good job, and would give him an agreeable wage. According to Gill, Mayhall did not ask whether he or the other custodians were covered by the contract with the Union. Nor did Mayhall ask if he was going to get the contract rate. As a matter of fact, according to Gill, nothing specific was said about the Union at all during that conversation. Upon my observation of Mayhall and Gill, and for reasons set forth elsewhere in this report, I credit Gill over Mayhall in this instance and find that the conversation that occurred was as related by Gill and not as related by Mayhall. Accordingly, I find that Gill did not in any manner threaten Mayhall with regard to what would happen to him if he was covered by the union contract. Accordingly, I shall dismiss the portion of the complaint which alleges that Gill threatened Mayhall and shall dismiss this allegation of Section 8(a) (1) of the Act. 1 Arlan's, shortly before, had opened a store in St. Louis, Missouri , whose employees were represented by a sister local of the Union ALTON-ARLAN' S DEPT. INC. 1311 C. The discharge of the custodial employees 1. The events Employees Harold G. Mayhall, David L. Roberts, William T. Stalp, and Ervin R. Hancock, whose chief duties 2 were janitorial, worked at night when the Respondent's retail store was closed, washing and waxing and generally cleaning the store in prepa- ration for the next day's business. They normally worked from 10 o'clock at night until 8 o'clock in the morning. Mayhall, Roberts, and Stalp joined the Union on November 15, 1963, and Hancock joined December 3. The Respondent had no knowledge of any union activities by any of these employees until December 3. There was very little contact, if any, between Store Manager Chris Gill and any of the above-named employees with the exception of Mayhall, whom Gill regarded as a sort of leadman who passed on Gill's instructions to the others. As early as September 1963, Gill told Mayhall that he was not satisfied with the manner in which the jani- torial work was being performed. He told Mayhall at one time that if the condition of the floors did not improve the Respondent would bring in an outside service to perform the work. Moreover, in October 1963, a piece of furniture on display in the furniture department was burnt by a cigarette and, although Gill was not certain as to who burnt the furniture, Gill suspected that it was one of the night janitorial employees and Gill told Mayhall that if it happened again the night crew would be disbanded.3 Sometime toward the end of November, Mayhall telephoned the union offices and spoke to Hazel Miller, who was then the Union's secretary-treasurer, and told her that he did not believe he was receiving the correct amount of pay. As a result of this conversation, Miller told Mayhall to bring his paycheck stubs to the union office. Pursuant to these instructions, Mayhall and Stalp brought their paycheck stubs to Miller at the union office. The two left their stubs with Miller who informed them that she would attempt to compute their wages from the stubs and would also tell Ray Haggard, the Union's business representative, about their dissatisfaction with the wages they were receiving. On Sunday, December 1, 1963, Gill, Respondent's manager, together with Gill's office manager, entered the store at 8 o'clock. On their way back to the office, accord- ing to Gill, they observed Mayhall in an armchair in the furniture department. They continued on to the lounge, and in the center of the lounge Stalp was slumped over in a chair asleep and Hancock was asleep on the employees' lunchtable. Evidently the noise of Gill and the manager coming through woke the employees, according to Gill, and he asked them whether or not they were supposed to be working until 9 o'clock on Sunday mornings. They answered in the affirmative and admitted that he had caught them sleeping. He told all three employees to punch out on the timeclock and to go home. Davey Roberts, the fourth janitorial employee, was not working that morning as it was his night off. Mayhall and Hancock denied that they were sleeping on the job that morning. In fact, Mayhall testified that he was in the aisles checking upon equipment and upon the manner in which the work had been done when Gill entered the store. However, it should be noted that neither of these employees nor Stalp, all of whom testified, denied that they had been sent home early that morning. Gill testified that when he caught the men sleeping he felt that this was the last straw in view of the fact that the cleaning work had been unsatisfactory and that the furniture had been burnt. Therefore, on the very next day, which was December 2, a Monday, he called the Respondent's district manager, Brandeberry, and told him of the situation and asked Brandeberry whether or not he should switch to a service for the custodial work. Brandeberry answered that it was all right for Gill to do so. After the conversation with Brandeberry, Gill called a Mr. Basden who confirmed that the price would be the same as an earlier bid he had made and he also told Gill that it would take him several days to be able to assemble a crew to commence the janitorial work. Basden estimated that it would probably be Wednesday or Thursday of that week before he would be ready. Therefore, according to Gill, he held back 3 See section IV, D, 1, infra, for a fuller description of the duties of these employees. 3 From credited testimony of Gill as supported in part by admissions of Mayhall to the effect that Gill may have warned him about these matters and by the further admis- sion of Mayhall that Gill did warn him about using an outside service if there was any further damage to the furniture Mayhall was very reluctant and vague about these admissions and I am convinced that although his testimony was in some respects credible, he was not completely forthright about matters which he thought harmful to the Gen- eral Counsel's case. 775-692-65-vol. 150-84 1312 DECISIONS OF NATIONAL LABOR RELATIONS BOARD announcing to the men that they were being laid off and discharged. As a matter of fact, Gill testified, on Monday, Mayhall called Gill and asked if he still had a job and asked if he should come to work that night. Gill informed him that he should report to work. Gill did not tell him of the contemplated discharge. Gill testified that Hancock also called and asked if there was further work and Gill told him to come to work. This testimony of Gill, to the effect that the men called to ask if they still had the job, was in no way refuted by testimony from any of the witnesses of the General Counsel who were at the hearing and who could have testified in rebuttal. On Tuesday, December 3, Gill received a telephone call from Haggard, the union business representative. Haggard testified, in substance, that he made the telephone call to Gill in the presence of Mayhall and Stalp after discussing with them the results of Miller's checking Stalp's and Mayhall's paycheck stubs and determining that the custodial employees were not being paid according to the rates set forth for other employees under the contract between the Union and the Respondent. Haggard testi- fied that he told Gill that the custodial employees complained that they had not been paid at the union scale and that they were entitled under the contract to $1.35 an hour and also were entitled under the contract to be paid time and a half for their work because the contract provided that all employees in the unit who worked after 10 o'clock at night were entitled to time and a half. According to Haggard, Gill answered that he was unaware that the janitors were subject to union scale and that the Respondent could not afford to pay union scale to these employees. He added that if they were forced to pay that union scale to these employees, the Respondent would have to let them go and that Gill could probably have the work done cheaper by an outside cleaning service. Haggard testified that he then told Gill that as to discharging the custodial employees, that was Gill's prerogative, but if these employees felt that they were being discharged for an unlawful reason, or wanted to fight it, the Union would represent them. Haggard then testified that he told Gill that even if the Respondent brought in an outside cleaning service it would probably be a union cleaning service and the Repondent would have to pay for such service an amount that would cover union wages. Gill's version of this telephone conversation was quite different. He testified that when Haggard called him on Tuesday, December 3, Haggard told Gill that the men had been down to see him in regard to their dismissal. Gill answered that the men were going to be laid off and that the Company was going to have a janitorial service. Gill told him that the name of the service was Basden. Then, Gill testified, Haggard asked if it was going to be a union service and Gill answered him in the affirmative and that was the end of the conversation. According to Gill, during that conversation Haggard did not say that the janitors were members of the Union nor did he insist that they were covered by the contract. Haggard did mention, according to Gill, that the men were not getting the contract rate to which Gill answered that they were not covered by the contract. Gill insisted in his testimony that when he mentioned to Haggard that the Respondent was going to subcontract janitorial guard work that Haggard said that was Gill's prerogative. Gill took this to mean that the Company could subcontract the work. Also, according to Gill, Haggard said nothing to him about the Union representing these employees if the Respondent discharged them or when the Respondent discharged them. Additionally, Gill stated, after his conversa- tion with Haggard, he called Page, the Respondent's attorney, and informed him about the Haggard conversation. He told Page what he had told Haggard, and that Haggard said that subcontracting was the Company's prerogative, but just to be sure that it was a union service so that they would not get into a hassle over it. According to Gill, Page then told him that this was perfectly all right and that they could bring this service in the following evening. Page testified to the same effect as Gill with regard to what Gill related to Page insofar as the Haggard-Gill telephone conversation was concerned. Page, in his testimony, emphasized that he had Gill repeat to him twice the statement that Haggard allegedly made that the subcontracting of the janitorial work to an outside service was the Respondent's prerogative. However, Page also testified that this was only what Gill told him of the conversation and that this was all that he, Page, knew of such conversation. On Wednesday, December 4, Gill spoke to Mayhall and Roberts on the telephone. According to Mayhall, Roberts came to his home and told Mayhall that Gill had told Roberts that they had been fired for sleeping on the job, damaging one of the couches, and also that Gill had said something about getting the job done cheaper by an outside cleaning service. Mayhall also received a call from Gill and Gill told him that he no longer needed Mayhall's services; that Mayhall was not being fired but that Gill was bringing in an outside service. Roberts, in his testimony, stated that Gill ALTON-ARLAN 'S DEPT. INC. 1313 told him that there was no need for him to come to work any more because they had been sleeping on the job, burning holes in the furniture , and because the janitors wanted to go union and that he could get janitor service in there cheaper than that. According to Stalp, however, when Gill called him he was told that he was discharged because he was sleeping on the job. It should be noted at this point that approximately 2 weeks after he was discharged by Gill , Stalp was employed by the grocery department concessionaire in the Respond- ent's store and has worked for him in a janitorial capacity ever since . This is the same work that Stalp performed for the Respondent before he was discharged as Stalp was assigned to clean the grocery department when he was working for the Respondent. 2. Findings and conclusions as to the discharges The General Counsel contends that the Respondent discharged the four custodial employees after it had learned that they had requested the Union to intercede for them in regard to their wage rates. This, the General Counsel contends , is a discharge for union activity and, therefore , violates Section 8 (a) (3) of the Act. He further con- tends that the subcontracting of the work was part and parcel of this activity on the part of the Respondent and was, therefore , also violative. On the other hand, the Respondent contends that the custodial employees were discharged because their work had been unsatisfactory , that they had been warned that they would be replaced with an outside service unless their work improved, and that the situation became intolerable on December 1, 1963, when they were discovered sleeping during working hours. The Respondent further contends that this decision to discharge these employees for the unsatisfactory quality of their work was made on Monday, December 2, before the call from Haggard which informed the Respondent that the Union was interceding on the employees ' behalf. Thus , the Respondent could not have known of any union activity on the part of the employees and, therefore, the discharge was for cause. The Respondent further contends that the subcontracting that followed was as a result of months of dissatisfaction and contemplation as to whether to put into effect a companywide policy of replacing custodial employees with outside contractors . I cannot accept the Respondent's contentions for the reasons set forth below. I credit Gill 's testimony to the effect that the work of at least some of the employees was unsatisfactory . Furthermore , Mayhall himself admitted that there had been warnings with regard thereto for some months before the actual discharge . Moreover, I credit Gill 's testimony to the effect that on Sunday morning, December 1, he dis- covered Mayhall , Stalp, and Hancock asleep on the job.4 Were these the only factors presented , I would credit the Respondent 's claim that the discharges came as the cul- mination of months of patience which was ultimately outworn by the discovery of the men's sleeping on the job. However, there are factors present which must be con- sidered and which lead me to a contrary conclusion. While I find that the employees , as stated above, were sleeping on the job inasmuch as two of these employees, Mayhall and Hancock , called the next morning to find out if they still had jobs , I nevertheless do not find that this was the chief factor in the discharge . As set forth above, the versions of the telephone conversation between Gill and Haggard varied greatly as to what was said. In substance , according to Haggard's version , when he told Gill that the men wanted to be paid in accordance with union rates, Gill told him that he did not believe the men were covered by the contract between the Respondent and the Union and that the Respondent would not and could not afford to pay those rates and if it had to, Respondent would subcontract the work. This would place the determination to discharge the employees subsequent to receipt of knowledge by the Respondent that the employees had asked the Union to intercede for them. However, according to Gill's version , Haggard spoke to him about the men's discharge and then the conversation got around to Gill 's telling Haggard that the men had been discharged for cause and that the work had already been subcontracted. I credit Haggard's version of the conversation for several reasons. Firstly, Gill claimed that on the day before the telephone conversation , he had engaged Basden as an independent contractor to perform the work that the custodial employees had been performing , and had made up his mind to discharge the employees although he informed them to the contrary in order to keep them on the job until Basden could take over . However, Basden, the one person not involved here, who could have sub- 4 The employees did not deny that on Monday, December 2, they called Gill to ask if they still had jobs I conclude that they would not have called had they not been discovered sleeping on the job and had they not been sent home early therefor. , 1314 DECISIONS OF NATIONAL LABOR RELATIONS BOARD stantiated this claim, was not produced by the Respondent. His testimony could have definitely fixed the date upon which he was given the contract to perform the custodial services. Secondly, Gill, himself, testified that when the employees called on Monday to ask if they still had jobs, he assured them that they had. Therefore, there would be no purpose in Haggard's calling Gill to ask about the discharge of the men. Haggard's inquiry must have been with regard to the wage rates and the failure of the Respondent to pay contract scale and not, as Gill testified, about the discharges. Thirdly, the purpose of the employees going to the Union for assistance was the failure of the Respondent, rightly or wrongly, to pay the contract rate. Thus the natural consequence of this employee discontent would have been a telephone call from Haggard to Gill regarding the wage rates. I conclude, therefore, that Gill told Haggard that if, as Haggard insisted, the con- tract covered the custodial employees, he would have to let them go because the Respondent could not afford to pay that kind of money and could probably secure a janitorial service for less money. I further find that it was after this conversation that Gill set into motion the machinery which resulted in the hiring of Basden and the discharge of the employees. Moreover, I find that the incident of the Sunday previous, when Gill found the three. employees asleep on the job, furnished Gill with the pretext he needed to rid himself of the possibility of the Respondent having to deal with the Union on behalf of the custodial employees. I am persuaded in this because, although Gill had com- plained to Mayhall about the unsatisfactory quality of the work and about the burned furniture, he did nothing about the matter for several months until the telephone call from Haggard when he was informed for the first time of the custodial employees' union activity. Then, he abruptly severed the employees and contracted with the outside cleaning service. Moreover, that the degree of dissatisfaction with the custodial employees' work was less than Gill testified to, is demonstrated to some extent at least by the fact that Stalp was almost immediately rehired by the grocery concession operator for the same work he had been doing for the Respondent and, moreover, the day of the Sunday sleeping incident, Roberts was not even at the store as it was his day off. Thus, there is some doubt as to the amount of dissatisfaction with at least two out of the four employees. Lastly, I cannot overlook the reasons assigned for the discharge by Gill in his con- versations with Mayhall and Roberts informing them that they were discharged .5 In his conversations with these employees, Gill gave the subcontracting as a reason for the discharge and also told Roberts that one of the reasons that he was being dis- charged was that the janitors "wanted to go union." 6 Accordingly, I find and conclude that the discharge of the custodial employees on December 4 was motivated, at least in part, by a desire of the Respondent to rid itself of any obligation to recognize or bargain with the Union insofar as the custodial employees were concerned. The Board has uniformly held that discharges for such motivation constitute violations of Section 8(a) (3) of the Act. This is true, even if, as in the instant case, the Respondent might have had an honest belief that it could not afford to pay the wages which the Union demanded that the Respondent pay? Moreover, even though the Respondent, as testified by both Page and Gill, had a companywide policy of subcontracting janitorial services and even though in the particular instance of the East Alton store the Respondent might have been con- templating such subcontracting at some future date if the work of the janitors did not prove to be satisfactory, and, even though the motivation may have been economic and may have arisen as an economic necessity because the Respondent could not afford to pay time and a half at union scale for janitorial services, nevertheless, the logical inference to be drawn from the facts is that the affected employees would not have so summarily been dismissed if they had not sought union assistance and had not sought through the Union to exercise their Section 7 rights.8 5 As noted earlier in this Decision, I do not consider Mayhall in some respects to be a completely reliable witness. However, because his testimony in this instance is supported by the testimony of Roberts, whom upon personal observation I credit, I credit Mayhall's versition of his discharge conversation with Gill e In coming to all of these conclusions, I have not overlooked the conversation' which allegedly took place between Gill and Respondent's counsel, Page, on December 3, in which Gill related his conversation with Haggard to Page However, although I do not discredit Page, I find that Gill had evidently given him a version which was not correct. 4 See Darlington Manufacturing Company, 139 NLRB 241, 245. 8 See J. M. Lansing, at al., d/b/a Consumers Gasoline Stations, 126 NLRB 1041; Jays Foods, Inc., 129 NLRB 690. ALTON-ARLAN'S DEPT. INC. 1315 Accordingly, I find that by discharging the custodial employees because they engaged in the protected activity of asking the Union to intercede for them, the Respondent violated Section 8 (a) (3) and (1) of the Act. D. The refusal to bargain 1. The appropriate unit As indicated hereinabove, the parties agreed in their collective-bargaining agreement that all regular full-time and regular part-time employees of Alton-Arlans Department Store, Inc., located at 613 St. Louis Avenue, East Alton, Illinois, including leased department employees, but excluding the store manager, the assistant store manager, office manager, assistant office manager, head cashiers, head receiver, head hard-line receiver, head soft-line receiver, leased department managers, guards, professional employees, and supervisors as defined in the Act constitute an appropriate unit for collective bargaining, and I so find. 2. The status of the custodial employees The Respondent contends that the custodial.employees or, as the Respondent calls them, the janitor-watchmen were guards within the meaning of the Act and were, therefore, excluded from the unit above set forth. It further argues that because the custodial employees were guards and were excluded from the unit that the Respond- ent was under no obligation to bargain with the Union with regard to subcontracting the janitorial services to an outside contractor or to bargain in any manner with regard to these employees. Thus, it must be determined whether the custodial employees were guards before it can be decided whether the Respondent's failure to negotiate with the Union with regard to the subcontracting was violative of the Act. It is clear that the duties of the custodial employees included sweeping, dusting, mopping, and waxing the floors, washing windows, cleaning debris from the store and disposing of such debris, cleaning counters and other parts of the store, emptying waste cans, and, in the case of Stalp, straightening grocery carts. Thus, these employ- ees performed what would be normally accepted as regular janitorial duties and both parties agree that this is so. The Respondent, however, contends that they also per- formed duties which would make them guards within the meaning of the Act. Thus the Respondent's counsel, Page, and Respondent's store manager, Gill, both testified that in all of the Respondent's parent corporation's stores the janitors are also charged with security responsibility at night when they are alone in the various stores. They also testified that these people are known on the Respondent's payroll records as janitor-watchmen and are not included in the overall units in any of the stores with the other employees. They testified that if the janitor-watchmen at the other stores are represented they are represented by a guard union. Although I credit this testimony, I cannot dispose of the issue of whether or not the employees involved in this proceeding are guards on the basis of what occurs in other stores. Rather, the determination of whether the custodial employees involved here were guards must be made purely upon the basis of what occurred and what their jobs and respon- sibilities involved in the particular store which is the subject of this proceeding. Mayhall, Roberts, and Stalp all testified that their jobs consisted mainly in the janitorial work. So far as Stalp's and Roberts' testimony is concerned neither of these individuals were ever given any instruction with regard to any guard duties whatsoever. Each testified that, so far as he knew, his sole responsibilities were janitorial in nature and nothing more. With regard to Mayhall, Gill testified that when Mayhall first was employed by the Respondent, Gill hired him because the store had merchandise moved into it before it was opened and it was necessary to have someone there at night to watch this merchandise. Then, according to Gill, the first few nights that Mayhall was on the job, he and Gill made the rounds of the store so that Mayhall could learn where the various doors were located so that the same could be checked each night and, moreover, Mayhall was shown where the emergency telephones were and where the list of the various telephone numbers of Gill, the assistant manager, the police, and the fire department were located. Gill further testified that Mayhall was to make a report each morning of anything unusual that might occur during the night when the janitors were alone in the store. Mayhall denied that he had any guard duties other than to watch out for fires or breakins just as any other employee might have and denied that he was obligated to make any reports as testified by Gill. However, it should be noted that in his pretrial affidavit Mayhall stated that he was obligated to make such written report. However, Gill himself admitted that such reports, if they were made at all, were made orally. 1316 DECISIONS OF NATIONAL LABOR RELATIONS BOARD Accordingly, I find that Mayhall was instructed to make reports of anything which might have been unusual which would have occurred in the store during the night. Also, Mayhall admitted that on a couple of occasions he was given the key to admit certain personnel into the store. He further admitted that at one time he called Gill at the latter's home because he found a door unlocked. Additionally, Gill testified that all the janitors were expected to call Gill or the fire department in case of fire or Gill or the police department in the event of any threat to the Respondent's property. However, Gill admitted that ,the same duties devolved upon all of the Respondent's employees and not only its janitors. Gill fur- ther admitted that to the extent that the janitors were responsible for security of the store while on duty this responsibility was no greater than that placed on every rank- and-file employee of the Respondent while such employee was on duty. It should be noted, and it was admitted by Gill, that none of the custodial employ- ees were uniformed nor were they licensed to or required to either carry firearms or use any form of defensive weapon. As a matter of fact, there were no weapons available to them in the store. Moreover, although the janitors were bonded they were bonded in no different way than were any of the other selling and nonselling employees in the Respondent's employ. Respondent, in further support of its contention, argued.that the unit here which excluded guards excluded the janitor-watchmen just as the janitor-watchmen were excluded as guards in the Respondent's parent corporation's St. Louis store. This might very well have been the Respondent's intention at the time that the recognition agreement was drawn up which recognition agreement, as heretofore set forth, did refer to the St. Louis store unit as the basic unit, with the same inclusions and exclu- sions. However, examination of the transcript of a representation proceeding held with regard to the St. Louis store shows that, as contrasted to the employees here involved, the St. Louis janitor-watchmen are armed, they have a more complete security check in that they are investigated by the FBI before hiring, their names are on record at the police department and at the American District Telegraph Office which is the alarm service to which the Respondent subscribes, there are shotguns available to these employees for their use in a breakin emergency, they have to have knowledge with regard to the handling of firearms, and they make out daily written reports as to occurrences during the night. The East Alton janitors involved here have none of these prerequisites, qualifications, or duties. As a matter of fact, with regard to Roberts, at least, he did not even make out an application until he had worked for a period of 3 days. It should be noted with regard to all of the foregoing that Gill testified that the subcontractor who was hired to replace the custodial employees and perform the same functions as they did, was bonded, because the subcontractor was responsible for merchandise, as were the custodial employees before him, which ranged any- where in value from a quarter of a million to a half million dollars' But, Gill admitted that he did not even know what company the bond of the contractor was with, that he never saw the bond, did not know the limits thereof, and, in fact, had no knowledge of what type of protection the bond afforded the Respondent. On the basis of all of the foregoing and upon the entire record, I conclude and find that the plant protection duties which the custodial employees may have been obligated to perform were merely extensions of and incidental to their being in the store at night and were incidental to their janitorial duties and that such protection obligations were the same as with any other employee-of the store. There is no testimony whatsoever in the record that these employees were expected to enforce any rules or regulations against other employees which concerned plant protection. I find, that like other employees, the custodial employees were expected to take some action if they observed a fire or breakin but that this was only incidental to the main duty of providing janitorial service during the time they were required to work .9 Accordingly, I find that the custodial employees are rank-and-file employees and are not guards within the meaning of the Act. I, therefore, further find that unless the record supports an agreement or an under- standing to exclude these employees from the unit in some specific manner, they are included in the unit determined herein to be appropriate. 3. Findings and conclusions as to the subcontracting As heretofore discussed, on December 3, 1963, after Haggard, the Union's busi- ness representative, had spoken to Gill on the telephone with regard to the wage rates of the custodial employees, and advised Gill that these employees were not receiving 9 Watchmanitors, Inc., 128 NLRB 903-905. ALTON-ARLAN'S DEPT. INC. 1317 the wage rates to which they were entitled under the terms of the collective-bargain- ing agreement between the Union and the Respondent, Gill told Haggard that Respondent could not afford to pay the custodial employees union scale and if it had to do so, Gill would have to let them go and also that Gill could probably have the janitorial service performed much more cheaply by an outside cleaning company. On the same day, Gill discharged the custodial employees and contracted with Basden for the service. With regard to other portions of that conversation, I have already accepted Haggard's complete version and find that with regard to the use of the word "prerogative" Haggard told Gill that it was Gill's prerogative to discharge the employees but that the Union would represent these employees if they thought the discharge was unlawful. Under these circumstances, it would seem that the janitors, not being guards, would be included in the bargaining unit and that therefore bargaining unit work was subcontracted out. The Board has held that the duty to bargain with the bar- gaining representative of its employees before work within the bargaining unit is contracted out is mandatory and has stated ". . . management decision to subcontract work out of an existing unit, albeit for economic reasons, was a mandatory bargain- ing subject." 10 It is clear from the facts recited above, and from the entire record, that the Respond- ent subcontracted the janitorial work and discharged the custodial employees without affording the Union an opportunity to meet with the Respondent and discuss with it the proposed subcontracting. This is clearly a refusal to bargain within the meaning of the Act inasmuch as "such prior discussion with a duly designated bargaining rep- resentative is all that the Act contemplates. But it commands no less." 11 The Respondent contends, however, that inasmuch as the very issue as to whether the janitors were included in the bargaining unit was a basic part of the very dispute between the parties and that as of the date of the discharge and the subcontracting of the work to Basden this issue had not been settled, the duty imposed upon an employer under Board precedent which governs subcontracting of bargaining unit work, should not be imposed upon the Respondent in this case because the Respond- ent in good faith and with reasonable justification believed that the janitorial employ- ees were not included in the unit set forth in the collective-bargaining agreement and that it would be manifestly unjust and contrary to the fundamental principles of the Act to hold that the Respondent was required under the Act to bargain collectively with the Union before subcontracting the work operations of these custodial employ- ees. The Respondent further argues that such a requirement would operate retro- actively to impose heavy -penalties and burdens upon an employer who was operating in complete good faith. Factually supporting the contention of the Respondent is the testimony of Respond- ent's counsel Page to the effect that when he spoke over the telephone on the night of the card count to a union official by the name of Falk, he specifically stated to Falk that the night porters were to be excluded from the unit. Additionally, the list of employees supplied by the Respondent to the Union, which list was used for the purposes of the card check conducted by the police chief, did not include the name of Mayhall, the only janitorial employee employed at that time. Moreover, the parties agreed that there would be excluded from the unit the same classification of employees who were excluded from the St. Louis unit. Additionally, employee May- hall supported Gill's testimony to the effect that on several occasions both before and after the signing of the contract, Gill told Mayhall, upon the latter's inquiry, that the janitors were not covered by the bargaining contract between the Union and Respond- ent. Finally, in the telephone conversation of December 3, between Gill and Hag- gard, Gill intimated that he did not believe that the janitorial employees were included in the unit. In addition to this foregoing testimony, Respondent's counsel testified, as alluded hereto above, that in all other stores associated with Respondent's parent corporation the janitor-watchmen are excluded as guards from the unit of selling and nonselling employees. I do not find merit in the Respondent's contention. Accepting the testimony of Respondent's counsel to the effect that in all of its stores, the janitor-watchmen are excluded from the unit as guards, it is nevertheless the employees involved herein whose duties determine whether they are guards. It may well be also that at the time the contract between the Union and the Respondent herein was executed, the Respondent's counsel and the Respondent's representatives felt that this store, like io Fibreboard Paper Produet8 Corporation, 138 NLRB 550-551. u Town & Country Manufacturing Company, Inc., at al., 136 NLRB 1022, 1027. 1318 DECISIONS OF NATIONAL LABOR RELATIONS BOARD Respondent 's other stores , would engage janitor-watchmen whose duties would be such that they would actually be guards within the meaning of the Act . This is quite likely in view of the fact that the janitor -watchmen in the St. Louis store clearly came within the guard classification . Whatever Respondent 's representatives might have had in mind at that time, however , the fact is, as heretofore found , that the janitors are not guards within the meaning of the Act and their duties were virtually exclu- sively janitorial in nature . Whatever management policy or decision resulted in this situation is not part of this case and is not presented for my consideration . It is for me to resolve the situation in the light of what duties and responsibilities of the janitors actually were and to make a determination of this situation on that basis. Thus, as a result , of determining that the janitors are not guards , it must be, perforce, concluded that they are members of the unit ; that unit work was subcontracted with- out negotiation and consultation with the Union which represented all of the employ- ees in the unit, and that, therefore , by so subcontracting , the Respondent violated its statutory duty to bargain . The Respondent 's professed belief that the janitorial employees are not included in the unit, albeit possibly conceived and nurtured in good faith, cannot change the fact that unit work was subcontracted without fulfill- ing the duty which the Board has held is imposed by the Act.12 Accordingly , I find and conclude that by subcontracting the janitorial work herein, the Respondent failed and refused to bargain with the bargaining representative of its employees and thereby violated Section 8(a)(5) and ( I) of the Act. V. THE EFFECT OF THE UNFAIR LABOR PRACTICES UPON COMMERCE The conduct of the Respondent set forth in section IV, above, occurring in connec- tion with the operations 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. VI. THE REMEDY It having been found that the Respondent has engaged in certain unfair labor practices , it will be recommended that the Board issue an Order requiring that it cease and desist therefrom , and take certain affirmative action, including the posting of appropriate notices, designed to effectuate the policies of the Act, as amended. Having found that the Respondent closed its janitorial department at its East Alton store on December 4, 1963, and subcontracted out the work thereof, and terminated the employment of Ervin R. Hancock , Harold G . Mayhall, David L . Roberts, and William T. Stalp, I shall recommend that these actions be remedied in accordance with the Board 's policy in such cases. Accordingly, I recommend that Respondent be required and ordered to reopen that department and offer these employees immediate and full reinstatement to their former or substantially equivalent positions , without prejudice to seniority or other rights and privileges. It is further recommended that the Respondent make whole each of the employees named immediately above for any loss of economic benefit each may have suffered by reason of Respondent 's discrimination against him by payment to him of a sum of money equal to the amount of wages he would have earned , together with a rea- sonable value of any benefits he would have enjoyed but for such discrimination between December 4, 1963, and the date of a proper offer of reinstatement to him as aforesaid . Loss of pay shall be computed as prescribed in F. W. Woolworth Company, 90 NLRB 289, and interest on any such backpay awarded shall be com- puted at 6 percent per annum in accordance with Isis Plumbing & Heating Co., 138 NLRB 716. Having found that Respondent violated Section 8 (a)(5) of the Act by unilaterally subcontracting its janitorial work without bargaining with the Union over its decision to do so, I shall recommend that the Respondent cease and desist from unilaterally subcontracting unit work or otherwise making unilateral changes in their terms and conditions of employment without consulting the Union. 12 I do not believe that I am empowered to carve out an exception to the Board's decisional rulings in this respect. If the application seems harsh in this case, it is for the Board to decide whether the Fibreboard Paper Products Corporation decision should be modified. SINGER SEWING MACHINE COMPANY 1319 In view of the nature of the unfair labor practices committed, it is recommended that the Respondent be ordered to cease and desist from in any manner infringing upon rights guaranteed to its employees by Section 7 of the Act. CONCLUSIONS OF LAW 1. Alton-Arlan's Dept. Store, Inc., is an employer engaged in commerce within the meaning of the Act. 2. Retail Clerks Local 149, Retail Clerks International Association, AFL-CIO, is a labor organization within the meaning of the Act. 3. All regular full-time and regular part-time employees of Alton-Arlan's Dept. Store, Inc., located at 613 St. Louis Avenue, East Alton, Illinois, including leased department employees, but excluding the store manager, the assistant store manager, office manager, assistant office manager, head cashiers, head receiver, head hard-line receiver, head soft-line receiver, leased department managers, guards, professional employees, and supervisors as defined in the Act constitute, and at all times material herein, constituted, a unit appropriate for the purposes of collective bargaining within the meaning of Section 9 (b) of the Act. 4. Retail Clerks Local 149, Retail Clerks International Association, AFL-CIO, was, on December 4, 1963, and at all times thereafter has been and now is the exclu- sive representative of all the employees in the above-described unit for the purposes of collective bargaining within the meaning of Section 9(a) of the Act. 5. By unilaterally subcontracting its janitorial work without bargaining with the above-named Union as the exclusive representative of the employees in the appropri- ate unit over its decision to do so, Respondent has engaged in and is engaging in unfair labor practices within the meaning of Section 8(a)(5) of the Act. 6. By discharging Ervin R. Hancock, Harold G. Mayhall, David L. Roberts, and William T. Stalp on December 4, 1963, thereby discouraging membership in the Union, the Respondent has engaged in and is engaging in unfair labor practices pro- scribed by Section 8(a) (3) of the Act. 7. The aforesaid unfair labor practices are unfair labor practices affecting com- merce within the meaning of Section 2(6) and (7) of the Act. [Recommended Order omitted from publication.] Singer Sewing Machine Company and Retail , Wholesale, and Department Store Union , Local 101, AFL-CIO. Case No. 6-CA-2569. January 27, 1965 . SUPPLEMENTAL DECISION AND ORDER On August 14, 1964, Trial Examiner Frederick U. Reel issued his Decision in the above-entitled matter, finding that 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 Trial Examiner's Decision. Thereafter, both General Counsel and Respondent filed exceptions to the Trial Examiner's Decision and supporting briefs. Pursuant to the provisions of Section 3(b) of the National Labor Relations Act, the Board has delegated its powers in connection with this case to a three-member panel [Members Fanning, Brown, and Jenkins]. The Board has reviewed the rulings of the Trial Examiner made at the hearing and finds that no prejudicial error was committed. 150 NLRB No. 137. Copy with citationCopy as parenthetical citation