Big Three Industries, Inc.Download PDFNational Labor Relations Board - Board DecisionsFeb 7, 1973201 N.L.R.B. 700 (N.L.R.B. 1973) Copy Citation 700 DECISIONS OF NATIONAL LABOR RELATIONS BOARD Big Three Industries , Inc. and General Truck Drivers, Warehousemen & Helpers Local 5, affiliated with International Brotherhood of Teamsters , Chauf- feurs, Warehousemen & Helpers of America, Ind. Cases 15-CA-4312 and 15-CA-4313 February 7, 1973 DECISION AND ORDER BY MEMBERS FANNING, JENKINS, AND KENNEDY On October 18, 1972, Administrative Law Judge Josephine H. Klein issued the attached Decision in this proceeding. Thereafter, Respondent filed excep- tions and a motion to reopen and the General Counsel filed a brief in support of the Administrative Law Judge's Decision. Pursuant to the provisions of Section 3(b) of the National Labor Relations Act, as amended, the National Labor Relations Board has delegated its authority in this proceeding to a three-member panel. The Board has considered the record and the Administrative Law Judge's Decision in light of the exceptions and brief and has decided to affirm the Administrative Law Judge 's rulings , findings, and conclusions and to adopt her recommended Order.' ORDER Pursuant to Section 10(c) of the National Labor Relations Act, as amended, the National Labor Relations Board adopts as its Order the recommend- ed Order of the Administrative Law Judge and hereby orders that Respondent, Big Three Industries, Inc., Baton Rouge , Louisiana , its officers, agents, successors , and assigns , shall take the action set forth in said recommended Order. IT IS FURTHER ORDERED that the complaint be, and it hereby is, dismissed insofar as it alleges unfair labor practices not found herein. Respondent's motion to reopen is hereby denied as the additional evidence sought to be adduced would not require a different result. See NLRB Rules and Regulations Sec 102 48(d)(1) DECISION STATEMENT OF THE CASE JOSEPHINE H. KLEIN, Administrative Law Judge: This case was heard in Baton Rouge , Louisiana , on June 27 and 28, 1972, on complaints issued on February 4, 1972 (Case 15-CA-4312), and April 10, 1972 (Case 15-CA-4313), and consolidated for hearing by Order issued on April 10, 1972. I It appears that the delay in issuance of the complaint in Case 15-CA-4313 was occasioned by the Regional Director 's initial refusal to issue a complaint , which refusal was reversed by the General Counsel on appeal At the hearing , the Administrative Law Judge rejected Respondent's offer into evidence of the Regional Director 's and General Counsel 's letters The complaints were both issued pursuant to charges filed by General Truck Drivers , Warehousemen & Helpers Local No. 5, affiliated with International Brotherhood of Teamsters , Chauffeurs , Warehousemen & Helpers of America, Ind. (the Union ), on December 15, 1971.1 The major allegation in Case 15-CA-4312 is that Respondent has refused to bargain in good faith with the Charging Party as the duly certified representative of the production and maintenance employees at Respondent's cryogenics plant in Baton Rouge , Louisiana. Case 15-CA-4313 principally concerns the allegedly discrimina- tory discharge of Fred J. Rushlow , an employee at Respondent 's Baton Rouge plant , on December 14, because of his union activities "and/or to discourage union and other concerted activities." All parties were afforded full opportunity to be heard, to present oral and written evidence , and to examine and cross-examine witnesses . The parties waived oral argument and since the hearing a brief has been filed on behalf of the General Counsel. Upon the entire record , observation of the witnesses, and consideration of the General Counsel 's brief, I make the following: FINDINGS OF FACT 1. PRELIMINARY FINDINGS A. Respondent , a Texas corporation , maintains a place of business in Baton Rouge , Louisiana , where it is engaged in the manufacture , sale, and distribution of oxygen, nitrogen , and other related products. During the past 12 months , a representative period , Respondent , in the course and conduct of its business , purchased and received goods and materials valued in excess of $50,000 at its Baton Rouge , Louisiana , facility directly from points outside Louisiana , and sold and shipped goods and materials valued in excess of $50,000 from its Baton Rouge facility directly to points outside Louisiana. Respondent is, and has been at all times material herein, an employer engaged in commerce within the meaning of Section 2(2), (6), and (7) of the Act.2 B. The Union is, and has been at all times material herein, a labor organization within the meaning of Section 2(5) of the Act. 11. THE UNFAIR LABOR PRACTICES A. Refusal To Bargain in Good Faith 1. Chronological outline On July 15, pursuant to an election held on June 2, the Union was certified as the collective -bargaining represent- ative of the production and maintenance employees, numbering about 15 , at Respondent 's cryogenics plant in Baton Rouge , the only installation involved herein. Mr. J. D . Arnold, assistant business agent and chief advising of their action Unless otherwise indicated , all dates herein are in 1971. 7 National Labor Relations Act, as amended (61 Stat 136 , 73 Stat 519 29 U.S C Sec . 151. et seq) 201 NLRB No. 105 BIG THREE INDUSTRIES, INC. negotiator for the Union, and employee Fred J. Rushlow, the alleged discriminatee, testified on behalf of the General Counsel concerning the bargaining meetings . Robert O. Moore, Respondent's administrative vice president, who had accompanied Attorney Charles R. Vickery, Jr., Respondent's principal negotiator, took the witness stand. However, he gave virtually no direct testimony concerning the bargaining sessions but, instead, introduced into evidence, over the General Counsel's objections, notes, or "minutes," of the meetings that he had prepared. The General Counsel was then permitted to review the notes and cross-examine Moore. While serving as counsel at the hearing, Vickery repeatedly made essentially evidentiary or testimonial statements concerning the negotiations. How- ever, since he did not take the stand as a witness, no evidentiary weight is here given to any such statements except to the extent that they were embodied in stipula- tions or amount to admissions or declarations against interest. Moore testified that his notes of the meetings were made "solely for the information of Big Three personnel" and "to be brought to hearings such as this one here." Because of the nature and sparsity of Respondent's testimonial evidence, as contrasted with the full testimony by union representatives, together with careful observation of the demeanor of the witnesses, I credit Arnold and Rushlow over Moore wherever there is any conflict. In any event, it may be said at the outset that the ultimate decision would be the same if Moore's notes were to be accepted as true and accurate in all respects. The first negotiating meeting was held at the Baton Rouge Airport on August 5. Vickery, accompanied by Moore, was Respondent's spokesman. The Union was represented by Mr. Jerry Millican, its counsel; Arnold; and employees Rushlow 3 and Bernard James Minvielle.4 At this meeting, the Union presented a detailed contract proposal, consisting of some 33 articles. In offering the proposal, the union representatives said that each and every part thereof was fully negotiable, a position which they repeated several times thereafter. The Union's proposal was hastily reviewed. Vickery emphatically rejected most major provisions proposed by the Union. According to Arnold's credited testimony, essentially corroborated by Moore, Vickery advised that Respon- dent's plant in Orange, Texas, was being shut downs and that Respondent could similarly shut down the Baton Rouge plant. According to Arnold, Vickery also expressed the opinion that "if he got something that looked like [the Union's proposed contract], they might as well" close the Baton Rouge facility. Vickery further emphatically main- tained that Respondent would not grant the employees anything more than they were already receiving-they would get precisely what they were then getting, no more and no less. However, the meeting ended with an understanding that Respondent would further study the Union's proposal and make a counterproposal. The second meeting was held at a Baton Rouge motel on August 26. Vickery and Moore again attended for the 3 Moore's notes erroneously list employee Glenn Louis Bordelon in place of Rushlow. 4 This is the employee's full name as it appears in Moore's notes. 5 Respondent's Orange, Texas, plant was involved in a previous Board 701 Company. The Union was represented by Arnold, Rush- low, Minvielle, and employee Kenneth B. Sheats, with Business Agent Ed Partin present for a short time. The Union's proposed contract was reviewed article by article. As discussed below, agreement was ostensibly reached on some matters; others the Union was to rewrite; others Respondent was to rewrite. The meeting ended with Respondent agreeing to submit a counterproposal. On September 21, the Union rejected the counterproposal "as a whole" and requested a further meeting. The third meeting was held at the same Baton Rouge motel on October 22. The representatives for the two parties were the same as before, except that employee Travis W. McCoy substituted for Rushlow, who was away on vacation. Assistant Business Agent J. M. Walters was scheduled to join the Union's group, but he did not show up. Again the parties reviewed the Union's proposal article by article, again without reaching agreement on any basic or major issues. As detailed below, Respondent's "counter- proposal" did not embody the few agreements that had been reached on August 26. Early in December, Business Agent Walters spoke to Vickery about the possibility of further negotiations. Vickery maintained that further meetings would be futile. However, he said he would be in touch with Walters again some time after January 17, 1972, when Moore would have been released from the hospital.6 Vickery also insisted that further negotiations should be conducted in Houston, Texas, where he and Moore and Respondent's main office were located rather than in Baton Rouge, where Arnold, the employees, and the plant were all located.? On December 14, apparently shortly after the conversation between Walters and Vickery, Rushlow was discharged. The next day, December 15, the Union filed the two charges here involved. As of the present hearing, late in June 1972, the Union had received no further communica- tions. 2. Respondent's specific positions Arnold testified, and Moore's notes report, that general agreement was reached on some matters at the August 26 meeting. The Union's proposed contract included a provision concerning "contracting out of work" (art. IX). After elaborately setting forth a spirit of cooperation between management and employees, the article provided for creation of a permanent management-employee committee to meet regularly on a semimonthly basis and "on any emergency that may arise on subcontracting." It conclud- ed: "The Company will not subcontract any work that can be performed by members of this bargaining unit." According to Moore's notes, at the August 26 meeting, "This article was basically agreed upon with the Union to rewrite the last paragraph having to do with Company subcontractors." The counterproposal thereafter submitted did not include any portion of the Union's proposal. On the contrary, the counterproposal provided (art. XII) that proceeding, reported at 145 NLRB 1685. 6 Moore testified that, as he recalled , he was hospitalized for about 6 or 7 days in February. 7 It may be noted that the Company maintains a private plane. 702 DECISIONS OF NATIONAL LABOR RELATIONS BOARD "subcontractors will perform production and maintenance work when convenient or desired by the Company." When the matter was again discussed on October 22, the Union said that it would provide a provision from another contract which it thought might be satisfactory. At the hearing Vickery, acting as counsel, sought to fault Arnold for not having provided the promised contract proposal. As previously stated, however, Respondent never resumed negotiations, despite the Union's attempts to do so. The Union's proposal contained elaborate provisions concerning seniority rights, the maintenance of seniority lists, and the posting of available jobs (art. X). At the August 26 meeting, according to Moore's notes, Respon- dent said it "would be agreeable to handling lay-offs and recalls on a seniority basis within classification. Minor portions of the article were approved with most of the article to be rewritten and discussed further." Respon- dent's counterproposal contained no provision for seniority rights. On the contrary, Respondent's proposed manage- ment prerogative clause (art. VIII, quoted below) would apparently negative any seniority protection. On October 22, Respondent again "advised the Union that it must have absolute control over promotions and transfers but , . . was agreeable to recognizing seniority in lay-offs and recalls." But even within the area of stated agreement, Respondent drastically cut the time periods for seniority proposed by the Union and rejected all proposed adminis- trative measures for protecting such rights. The Union's proposal called for negotiation of rates for any new job classifications (arts. VI and XXVIII). Although the Company agreed to those provisions on August 26, it was not contained in its counterproposal. Indeed, Respondent maintained that the plant was too small to have "classifications." The counterproposal in large part negatived negotiation on rates for new jobs, reserving the right to make any change in its methods of operation "which the company in good faith believes desirable." Moore's notes of the October 22 meeting recite that the Union's article concerning negotiation of rates for jobs incident to new production techniques "had received basic approval from the Company on August 27th [sic], however, Mr. Vickery advised the Union that this article was really not relevant." So far as appears, the provision could be rendered "irrelevant" only by Respondent's insistence on unilateral determination of such questions. On August 26, Respondent agreed to major portions of the Union's proposed provisions concerning union repre- sentation (art. V) and grievances (art. VII). These agree- ments, however, were not embodied in Respondent's counterproposal. The attitude of Vickery, Respondent's negotiator, toward agreements reached in the course of bargaining is reflected in the following colloquy which occurred during his cross-examination of Arnold: Q. On Article VII did you ever offer to modify it during the course of negotiations? A. You agreed to it like it was. Q. We never agreed to it in a written form under a signature, did we? s Moore testified that II plants he listed were "cryogenic plants, separation plants similar" to the one here involved . No weight can be given to the nontestimomal protestation by Respondent 's counsel that "they A. No, sir. You tentatively agreed to it. Q. Whenever we talked , it was tentative , wasn't it? A. When you make an agreement with anybody you tentatively agree so if your word isn't any good. Q. I have been ordered not to testify, but I didn't agree to those Articles... . Moore's notes , however, report that on August 26 the Union's grievance proposal (art. VII) "was basically approved with the addition of the statement that griev- ances were limited to the express items in the agreement." The grievance procedure contained in Respondent's counterproposal (art. VI), particularly in conjunction with the arbitration and discharge provisions (arts. VII, VIII, X, XIII, and XIV), discussed below, was greatly at variance with the Union's. Article XXI of the Union's proposal covered temporary transfers, providing that an employee assigned to a higher paid job than his regular work for more than an hour would be paid for such time at the higher rate. According to Moore 's notes, on August 26 "[t]his article was discussed and passed.9' The Company's counterproposal contained the following provisions relevant to transfers: Article IV. Work Assignments. Since the employee force in the plant is small , without regard to classifica- tion or rate of pay, each employee will perform whatever work is assigned to him by the Company from time to time at his regular wage scale. R • i ! Article XIV. Transfer. The Company reserves the right to transfer any employee to any other Company plant; failure to accept a transfer shall be "good cause" for discharge; any discharge under this proviso shall not be subject to the grievance or arbitration proce- dure. In connection with the proposed article on interplant transfers, it should be noted that, according to Moore's testimony, Respondent has some 12 cryogenics plants, in California, Texas, Louisiana, and Florida8 (plus an undisclosed number of other types of facilities at unspeci- fied locations). The Union's proposed contract (art. XXVI) provided for: "Insurance and retirement plan to be paid in full by the Company to be submitted at a later date." Concerning the August 26 discussion of this article, Moore's notes report: The Union advised that they did not have copies of the Company insurance and retirement plans. The Company agreed to forward this information to Mr. J. D. Arnold... . Moore's notes do not reflect the fact that at the August 26 meeting there was a somewhat unpleasant interchange between Moore and Rushlow when the latter questioned the apparently excessive cost of the Company's hospitaliza- tion and health insurance and indicated that some of the employees doubted whether the Company was actually paying half the cost, as it said it was. Rushlow said that employee investigation disclosed that individual insurance aren 't similar." Under date of May 10, 1972, the home office sent a memorandum concerning the loading and unloading of liquid trucks to the managers of 26 named plants. BIG THREE INDUSTRIES , INC. 703 was obtainable at substantially less than the Company said its group coverage cost. Although Moore testified that his "secretary was instructed to send [the promised informa- tion] to Mr. Arnold and to the best of [Moore's] knowledge this was done," the record fails to establish that such material was actually provided. In any event, the Company's counterproposal contains no reference to any insurance or similar fringe benefits . Its acknowledgement of retirement as a possible fact of life took the following form: Article IX. Retirement. The compulsory retirement date shall be the employee's 60th birthday; at any time after an employee's 60th birthday, the Company shall have the right and option to retire or discontinue the employment of such employee. The Union proposed (art. XXII) that preference for light work be given to "[e]mployees with long and satisfactory service records" who became physically unable to perform their regular work. On August 26, it was agreed that the Company would "rewrite" that provision. The Company "rewrite," as embodied in its counterproposal was com- plete, as follows: Article XIII. Physical Examination . At any time at company cost, the Company may require any one or more of the employees to take a physical examination by the Company doctor; if any employee is found to be disabled in any degree by the Company doctor, such employee may be terminated by the Company. Termi- nation under this Article shall not be subject to arbitration or the grievance procedure. And, as if to tie the knot completely, Respondent's counterproposal specified "[d ]isability or incapacity in any degree or percent" as one of innumerable "good causes" for discharge of an employee. The Union proposed provisions for discipline (art. XX) under which prior disciplinary records would be destroyed and employees in the future would be given warning notices and opportunity to defend themselves, with the presence of a union representative. At the August 26 meeting, the Company proposed to "rewrite" that article "for submission." Again its "rewrite" was total . Respon- dent's counterproposal listed 33 separately numbered "good cause[s]" for discharge . Included were items such as the following: 22. Violation of the no strike clause or any other term of this agreement. 29. Solicitation of any kind on company property. 31. Wearing of excessively long hair or beards; the Company shall unilaterally determine a violation of this provision. Any discharge under this provision shall not be subject to arbitration. 32. The wearing of effeminate dress or other dress objectionable to the company. The last specified, numbered "good cause" for discharge was: 9 Moore's notes concerning the third negotiating session , on October 22, state that the Union was advised that the reference to Texas courts "was an error and this should have read Louisiana court " Arnold, however, testified that he told Vickery that the Union "would abide by the laws in the State of Louisiana and not the laws that was in Texas." He did not testify to any agreement by Respondent to accept that position. No such agreement can 33. The company, in good faith, believes the discharge is in the best interest of the company. After these "specific good causes" for discharge , Respon- dent's contract proposal continues: This list is not exclusive but any other "good cause" shall justify discharge ; the arbitrator shall have no discretion nor authority whatsoever to change, miti- gate , lessen or reduce the penalty of discharge, if any one or more of the defined "good causes" exist. The discretion of the Company to discharge is not subject to review by the arbitrator upon establishment of any of the enumerated "good causes" for discharge. The arbitrator shall have no authority nor jurisdic- tion to award money damages or otherwise impose expense or costs on the Company directly or indirectly. The arbitrator shall have only a limited authority to find facts but shall have no discretion nor authority to fashion remedies or impose any costs or expense on the Company. No employee shall be awarded any money for any time not actually worked. This may be done only by a Texas court of competent jurisdiction .9 According to Moore's notes, on October 22 Arnold said "that he could agree with an immediate discharge without recourse for such items as theft, intoxication and insubor- dination , however, he could not agree with all the items as he felt this could provide the Company with an excuse to discharge anyone at any time. Mr. Vickery advised that the Company would be happy to review this article and that it would be restated." However, Arnold credibly testified that Vickery insisted that his proposed "good causes" for discharge "were going to stay like they were." Significantly, it was at just about this time that Wayne Gray , the new general manager, announced personnel policies under which the causes for immediate discharge were limited to firearms , liquor or intoxication , theft , and fighting on company premises. For all other misconduct, employees would be entitled first to an oral reprimand and then a written reprimand , possibly with a suspension of up to 3 days , before there would be any discharge action.10 To underscore the Company's desire to deny any protection to the employees, and place them fully at the mercy of Respondent , was its proposed "Management Prerogative Clause ," reading: Nothing in this Agreement shall limit or restrict the management prerogatives of the Company, except to the extent that such prerogatives are specifically limited by the unambiguous, express terms of this Agreement; the Company expressly reserves the right to layoff, to determine manning required and number of employees needed, to hire , transfer, suspend , layoff , recall, promote , discharge , assign, reward , to otherwise disci- pline the employees and to exercise all other manage- ment prerogatives. The Company reserves the right to suspend or shut down operations of all or any part of be inferred in view of Respondent 's repeatedly expressed intention to maintain uniformity among its plants. 10 Gray 's announcement of this policy has not been alleged as unilateral action independently violative of Sec. 8 (aX5). Accordingly , no such finding is being made here 704 DECISIONS OF NATIONAL LABOR RELATIONS BOARD the Company plants, machinery or equipment at any time desired by the Company. Respondent's counterproposal also reserved to manage- ment the right to have nonunit employees or subcontrac- tors perform unit work whenever the Company found that convenient. Coupled with these "management prerogative" provi- sions were extremely restrictive no-strike clauses and a sham arbitration provision, as follows: Article XVII. Limit or Curtailment of Production. This contract is a guarantee by the Union and the bargaining unit employees that there shall be no limit on, or curtailment of production for any reason whatsoever during the term of this agreement. Article XIX. No Strikes nor Lockouts. The Union agrees and guarantees to the Company that during the term of this Agreement neither it nor any of the bargaining unit employees shall engage in, participate in or sanction any strike, slow-down, stoppage of work or suspension of work whatsoever; that there shall be no work stoppage nor delayed performance of duties or interference in any way with the operation or conduct of the Company's business.. . .11 This Agreement is a guarantee that there shall be neither strikes , slow-downs , work stoppages , refusal to cross picket-lines at a customer situs , suspensions of work, delays in the work or interruption of work during the term of this Agreement and that all disputes will be settled under the grievance procedures of this contract or by the courts. Article VII. Arbitration Procedure. C. The arbitrator's findings and decisions shall be presented in writing and shall be conclusive, final and binding on both parties, if, but only if, the finding, decision and award (1) are based upon the violation of an express, unambiguous term of this agreement set forth in the award; (2) are not based on past practices, the "rule of the shop" or some other implication appealing to the arbitrator; (3) makes no award of money cost or expense against the Company in the form of back pay or otherwise, but any such money damage or back pay obligation of the Company shall be determined by a Texas court of competent jurisdiction. I • i i 4 G. The arbitrator shall have neither jurisdic- tion nor authority to determine arbitrability. 11 The no-lockout provision included at this point is apparently nullified by the various management prerogative reservations. 12 Vickery indicated the same position during the heanng is It is difficult to infer that Vickery might have made an inadvertent error as to the "Federal law ," in view of his statement at the hearing that he Specific attention should be directed to the inclusion of a prohibition of employees ' refusal to cross picket lines. The Union had originally proposed an article protecting the employees ' rights to honor picket lines (art. XXIII). According to Arnold, Vickery said that "[a]ny man that refused to cross a picket line , wherever he was going, he would consider him quit and he would replace him with somebody else." Respondent apparently denies that Vickery threatened to discharge employees who refused to cross picket lines but acknowledged that Respondent said it would replace such persons . 12 According to Moore's notes, at the August 26 meeting , Respondent "proposed writing an amendment which would state that both parties would follow Federal law. This was agreed." The Company took the same position on October 22. The Company's counterproposal, however , would have made "refusal to cross picket -lines at a customer situs" a violation of the no- strike clause and thus "good cause" for discharge. This provision thus denies employees their statutorily protected right to respect picket lines. Smith Transit, Inc., 176 NLRB 1074, 1083, and cases there cited.13 Without further extending this Decision by discussion of other specific provisions of the two contracts , it can be said that , rather than making any concessions in the way of protecting employees , Respondent proposed to exact from the Union contractual waivers of many substantial and basic employee rights . And at no time did Respondent offer any compensation concessions , on either economic or noneconomic matters. Respondent 's positions concerning wages and hours are fully indicative of its attitude toward the bargaining process in general . The Union's proposal , submitted on August 5, called for a 1-year contract and specified wage rates for five classifications (art. XXXII) retroactive to the date of certification (preamble). At the August 26 meeting, the wage question was not discussed. The Company, however, apparently flatly rejected the concept of retroac- tivity in any form. Respondent 's counterproposal on wage rates read : "Present effective rates . The Company will make no payment for any time not actually worked ." (Art. XVI.) 14 Articles XIII and XIV of the Union's proposal con- cerned hours of work and overtime pay. The Union also proposed that overtime generally be voluntary. Respon- dent said it "did not intend to pay overtime for over 8 hours nor for the 6th and 7th days of a week " and that the Union's "request for $5 .00 meals was too high and also that the Company insisted that an employee must work overtime , as requested ." It was agreed that the Company would make a proposal . The Company's subsequent proposal required employees to work overtime when requested ; assured $2 for meals required, the amount the Company was already paying; and authorized two 10- minute coffee or cigarette breaks per shift (the record is silent as to the existing practice concerning rest periods). Otherwise , the Company 's proposal contained no provision concerning hours or overtime compensation and the has been trying Labor Board cases for 24 years 14 On its face , this provision appears inconsistent with Respondent's pnor agreement to some provision for call-in pay . Presumably , however, it would not be construed to nullify specific provisions such as those for vacations and holidays which did call for payment for time not worked BIG THREE INDUSTRIES, INC. Company made clear its position that it was not prepared to grant or assure anything more than was provided by Federal law. At the hearing Respondent apparently maintained that its position was based on the Presidential wage and price freeze. The flavor of Respondent's position can best be seen in the following bits of colloquy occurring during Vickery's cross-examination of Arnold: Q. (By Mr. Vickery) Mr. Arnold, didn't we tell you that the reason we couldn't spend any more money on these boys was that our sterling President had a wage and economic freeze in effect? A. No, sir. * s s Q. You mean that on August 26 we didn't mention the President's wage freeze? In each meeting we told you we were going to observe it? A. That's right. But you said insofar as the wages and working conditions there would be no changes. Q. We said we were going to observe the Presi- dent's wage and economic freeze. . . . Your contract was in square breach of the wage freeze. A. Our contract? No. Q. Where you proposed wage increases of 100%. A. We negotiated on August 5. At that time we weren't in the wage freeze. s • s * $ Q. Did you ever offer to reduce your demands in Article XXXII? A. We didn't discuss wages. Q. It ought to be said you didn't offer to reduce them because we didn't ever discuss them. A. That's right. You didn't either. s s : ► s Q. Did you ever offer any concessions as to General Counsel's Exhibit 3 Article XI [vacations]? A. We couldn't offer you nothing, if you aren't going to talk about it. Q. They were frozen by the wage freeze put in effect by the President. A. You said we wouldn't talk about it. Q. We wouldn't talk about it. We were going to help the government's deflationary program and we wanted to make a fair contribution. It may be noted that Moore's notes report that at the August 26 meeting "Mr. Arnold commented that they were under contract negotiations with other companies and that they were proceeding with such negotiations which would be subject to any rulings by the Government." Arnold credibly testified that at their final meeting, on October 22, Vickery persisted in his initial insistence that "whatever 15 New Year's Day, Memorial Day. Independence Day, Labor Day, Thanksgiving Day, Christmas Day. 16 It reads "Article XVIII. When the Employer needs additional employees to work under the provisions of this contract he shall notify the 705 they were making now, they would continue to get; no more and no less." Respondent's attitude toward economic matters is graphically displayed in connection with the question of holidays. The Union proposed 12 holidays, with somewhat detailed provisions concerning payment therefor (art. XII). At the August 26 meeting, according to Moore's notes, "[t]he Company advised that this was a cost item and that it would rewrite it and make a proposal to the Union." The subsequent counterproposal listed the six major national legal holidays 15 and provided for holiday pay for nonpro- bationary employees at their regular rates whether they were required to work or not (art. IX). Under the Company's proposal, there would be no additional pay or time off for a holiday falling within an employee's vacation (art. IX (3)). The Union proposal contained certain provisions de- signed primarily for its benefit, as distinguished from that of the employees: a bulletin board, union dues checkoff, union security, and union hiring hall. As to the bulletin board, the Company orally agreed to make reasonable space available for a bulletin board to be provided by the Union. However, the Company counterproposed no such provision. According to Moore's notes, the Company repeated this agreement at the October 22 meeting. The Company also said it would checkoff union dues upon payment by the Union of $1.20 per month per employee. No agreement was reached on this item on August 26, Moore's notes reciting that the article was "passed." The Company's "offer" was not incorporated in its later counterproposal. Moore's notes recite that on August 26 the Union's proposal for a union-security clause (art. I (f)) "was passed." The Company's counterproposal contained no such provision but, on the contrary, added "membership in or nonmembership in a union" to the Union's nondiscrimi- nation clause . The Union's proposal for a hiring hall "was discussed and passed." Moore's notes say that at the beginning of the meeting on October 22- Mr. Vickery advised the Union that the Company and the Union were far apart and that the Company would be adamant on their stand that they could not agree to a union shop and to a hiring hall. Mr. Vickery further stated that he was not certain but what the hiring hall would be illegal. Again, in the item-by-item review of the Union's proposal, Vickery advised that "under no circumstances" would Respondent agree to a union shop or hiring hall provision. He reiterated that the Union's proposals were or might be illegal . Each time Arnold said that he would consult the Union's business agent and its counsel as to the legality of the provisions. The union-proposed hiring hall provision 18 appears to be entirely lawful. Local 357, Teamsters [Los Angeles-Seattle Motor Express] v. N.L.R.B., 365 U.S. 667. The union- security clause does not contain the statutorily required 30- day grace period and thus would not be lawful as written. Union , and the Union shall furnish the employees through its hall. No new employee may be hired except , he be hired upon referral by the Union. The employer shall not discriminate against any person because of his Union membership " 706 DECISIONS OF NATIONAL LABOR RELATIONS BOARD However, as previously stated, it is conceded that the Union volunteered that all parts of its proposal were negotiable. There is not the slightest suggestion that the Union would press for any unlawful provision and said it would check with its counsel. Respondent's negotiator, an experienced labor lawyer, did not point out the nature or extent of the "illegality" of the Union's proposed union- security clause. Rather, Respondent made it clear from the beginning that it was unalterably opposed to any form of union-security or hiring hall provision. The claimed "illegality" of the provision was, therefore, just a red herring. At the hearing Vickery confirmed Respondent's ada- mant refusal to yield to any degree on the picket line, union shop, and hiring hall provisions.17 Vickery based his opposition to a hiring hall provision on his erroneous statement that it would be violative of the law.18 He did not point out the limited remediable deficiency in the union shop provision or suggest that Respondent would consider or discuss a lawful union-security clause (i.e., a revision of the Union's proposal to provide the statutory 30-day grace period).19 He said he would abide by "federal law" as to the picket line provision, while proposing a contractual waiver of employees' rights under Federal law. 3. Discussion and conclusion The foregoing analysis of Respondent's positions on specific issues is only representative and not complete. Other items, both important and relatively minor, were similarly dealt with by the parties. In virtually no respect did Respondent indicate its willingness to make any concession or even significantly to recognize the employ- ees' statutorily protected rights. From the first meeting, when Vickery invited the Union to strike and warned that the Baton Rouge plant could be closed as the Orange, Texas, plant had been,20 through the time of the present hearing, when Respondent had failed to keep its promise to arrange a further negotiating meeting, Respondent gave not the faintest indication that it desired or intended to reach any agreement with the Union. To the slight extent that he gave any explanation of his positions, Respondent's representative, a sophisticated labor lawyer, made errone- ous and half-true statements of law. Since Respondent has not filed a brief, the nature of its defense must be gleaned from its rather sparse evidence and counsel's conduct. In cross -examining Arnold, Vickery attempted to wrest "admissions" that the Union had not 17 Mr Vickery stated as follows: We stipulate that we wouldn't give them anything but a federal law on picketing : that we wouldn ' t give them a hiring hall in any form whatsoever . . That we discussed them for three meetings , the hiring hall, the Union and closed shop and their attempt to legalize secondary picketing and we said we would not agree to them in any form whatsoever, but if they wanted to argue about them for some more sessions, we would come and argue about them but I thought we reached an impasse on them. . 1s The following colloquy occurred in Vickery's cross-examination of Arnold Q Didn't I tell you it [the union hiring hall provision I was in plain violation of the National Labor Relations Act9 A I think you might have, but you wouldn' t make any concession You said that you weren't even going to talk about it. Q Talk about violating the National Labor Relations Act? offered "concessions" on its specific proposals. However, as Arnold testified , and as is clear from the record as a whole, on all major substantive issues Respondent's position was inflexibly negative . In answer to a leading question by Vickery, employee Rushlow conceded that Respondent had not refused to discuss any issue raised. But the evidence clearly establishes that Respondent's "discussion" of significant issues consisted solely of rejection of the Union's position and insistence on Respondent 's positions . Moore's notes report that the bargaining session of October 22 ended as follows: Mr. Vickery then requested that the Union prepare their last best offer and that it be submitted to the Company and that it would be reviewed and the Company's answer given immediately. There is no indication that Respondent recognized even the possibility that it had any obligation as one of two parties to statutorily required bargaining . On the contrary, Vickery placed the total burden on the Union and was clearly bent on forcing an impasse rather than seeking some basis of accomodation. For example , Arnold credibly testified as follows concerning the end of the October 22 meeting: Q. Was there anything said about meeting again or the usefulness of meeting again? A. [Vickery ] said if we were going to keep arguing about the same things, there wasn 't any use in us meeting again , so we just would do whatever we wanted to do. Q. Was there anything said about a final offer? A. Well, he said that was his only offer and if we were going to keep arguing about the same things over and over again , we would be wasting time. There wasn't any use in coming back. We could do whatever we wanted to do. Vickery's intransigence continued thereafter . In Decem- ber Gray disclosed to employee Sheats the Company's intention to reach any agreement and to file a decertifica- tion petition as soon as possible . At this time, Gray also "advised" Sheats to induce the employees not to authorize a strike . Employee Dallas Stillwell quoted Gray as having said in February 1972 that the Union would be unable to obtain a contract from Vickery. And employee Travis McCoy credibly testified that around March 1 , 1972, Gray predicted that the employees would get nothing from Vickery, who "could drag this on for two or three years." 21 In the course of the present hearing , Vickery displayed A. You said you wasn 't going to talk about it; it was out Q. Did you offer to modify the hiring hall provision of Article XV111'1 A. Give us equal opportunity Q. Give who equal opportunity. A Give the Union . You said that was out ; we will hire the employees. 19 Louisiana is not a "right-to-work " State. 20 The Orange plant was involved in Big Three Welding Equipment Company, 145 NLRB 1685 , enfd . in major part 359 F .2d 77 (C A. 5), in which Respondent was found to have engaged in unfair labor practices, including four discriminatory discharges in violation of Sec. 8 (aX3) of the Act. 21 At the hearing Vickery stated his willingness to "drag this 8 (aX3) on for three years." BIG THREE INDUSTRIES, INC. 707 his continuing enthusiasm for having an "impasse" declared.22 However, in no sense could it be said that a genuine "impasse" had been reached. The Union at no time said that it would not yield on the issues referred to by Respondent. On the contrary, despite the utmost provoca- tion by Respondent, the Union did not qualify its original statement that all parts of its proposal were negotiable. Not only did Respondent fail to consider or propose any compensating concessions on its part, but the only proposals it ever made would have required a waiver of important employee rights, leaving the employees substan- tially worse off with a contract than without one. Rather than bargaining to a genuine " impasse," Vickery's entire course of action shows "a predetermination not to reach agreement, or a desire to produce a stalemate, in order to frustrate bargaining and undermine the statutory repre- sentative." Stuart Radiator Core Mfg. Co., Inc., 173 NLRB 125. Unlawful conduct cannot be rendered lawful by the verbal legerdemain of substituting the word "impasse" for the more accurate "stalemate."23 As recently said by the Court of Appeals for the Ninth Circuit in N.L.R.B. v. Holmes Tuttle Broadway Ford, Inc., 465 F.2d 717, 719: Sections 8(a) (5) and (d) do not require that a party make concessions or yield any position fairly main- tained. . . . This does not mean, however, that the Board is prohibited from examining the contents of the proposals put forth. The Board "must take some cognizance of the reasonableness of the position taken by an employer in the course of bargaining negotia- tions" if it is not to be "blinded by empty talk and by the mere surface motions of collective bargaining . . ." N.L.R.B. v. Reed & Prince Mfg. Co., I Cir., 1953, 205 F.2d 131, 134... . In judging a party's compliance with Sections 8(a)(5) and (d), the "Board has been afforded flexibility to determine . . . whether . . . conduct at the bargaining table evidences a real desire to come into agreement." N.L.R.B. v. Insurance Agents' Union, . . . 361 U.S. [ 4771 at 498. This determination is made by "drawing inferences from the conduct of the parties as a whole." Id.... Respondent's purported "counterproposal" to the Union reflects an unmitigated, cynical disregard for the Employ- er's statutory obligation to bargain. See Stuart Radiator Core Mfg. Co., supra: ... [Respondent's] proposals indicate more than hard bargaining. Since the Respondent could not have offered them with any reasonable expectation that they would be acceptable to the Union, we can only conclude that Respondent did not approach negotia- 22 The testimony is as follows: MR. VICKERY : We never refused to negotiate with him. TRIAL EXAMINER : If you would like to do so, we can- MR. VICKERY : Our position is unchanged until they will make a concession on the close[d] shop, picketing , hot cargo and hiring hall. We are at an impasse. TRIAL EXAMINER : I didn't mean for me to get into negotiations. MR. VICKERY : We got it in the record and now we are at an impasse on four issues. If they want to give ground, we will negotiate. TRIAL EXAMINER : We are not negotiating. MR. VICKERY: I am . . . . TRIAL EXAMINER: If you people want to sit down, I would be very tions in good faith and with the intent of reaching an agreement... . See also, e.g., Flambeau Plastics Corporation v. N.L.R.B., 401 F.2d 128, fn. 12 (C.A. 7), cert. denied 393 U.S. 1019; Shovel Supply Company, Inc., 162 NLRB 460; Jeffery Stone Co., Inc., 173 NLRB 11, 14-15. For the foregoing reasons, I find, on all the evidence, that, by the totality of its conduct (Florida Machine & Foundry Corp., 190 NLRB No. 109), Respondent has refused to bargain with the Union in good faith and has thus violated Section 8(a)(5) and (1) of the Act. Since Vickery's closedminded and dogmatic approach was apparent as early as the first negotiating session, I find that, as alleged in the complaint, the refusal to bargain commenced on August 5 and has continued to date. B. Rushlow 's Discharge Rushlow was employed by Respondent as an operator from sometime in 1968 until he was discharged on December 14, 1971. According to Respondent, on Decem- ber 13 Rushlow was responsible for filling a vessel with liquid nitrogen and, through negligence, allowed a large quantity, estimated by Respondent's witnesses at some 150 to 300 gallons, of liquid nitrogen to overflow, causing damage by "thermal shock" to the bed of the truck.24 Although Respondent presented some evidence designed to show that Rushlow had been reprimanded or criticized on occasions in the past, Gray, who discharged Rushlow, testified that he "absolutely" did not do so "for any other reason than running this vessel over." Rushlow testified that at or around 5:15 to 5:30 p.m. on December 13 Plant Manager Oliver Stansbury came into the control room, where Rushlow was working, and where Rushlow's helper was. Rushlow replied that he was performing his other duties. Stansbury said that a vessel belonging to Woodward Wight Big Three, a customer and affiliate of Respondent, was at the loading area to be filled immediately. Rushlow asked Stansbury to watch the control board while Rushlow attended to the vessel, but Stansbury refused and left the plant, According to Rushlow, he was specifically instructed to fill the vessel by gravity (rather than with a pump), "out the vent," i.e., until a stream of liquid ran out the vent, indicating the vessel was full 25 Rushlow tested the purity of the vessel content. About 5 to 10 minutes later Henry Holliday, Rushlow's helper, came into the control room and Rushlow asked him to hook up the hose and open the valve to start filling the vessel. Since Holliday had other essential functions to perform at the time, Rushlow said he would watch the filling of the vessel. From the control room, where his happy to suspend the hearing and let you do [so]. MR. VICKERY: We will suspend the hearing when they are willing to give way on those four issues . We would negotiate. We are willing to negotiate but not give ground on those issues. 23 At one point Vickery also conditioned further negotiations on the Union 's withdrawing its "economic demands and excessive wage rates." 24 Respondent also presented some testimony to the effect that the rear tires of the truck had been frozen by the liquid nitrogen , but its itemization of the monetary loss made no mention of the tires. 25 The vent is at the top of the spherical vessel . However, a tube or pipe is run from the vent through the vacuum casing around the sphere and discharges at the bottom of the vessel. 708 DECISIONS OF NATIONAL LABOR RELATIONS BOARD primary and most important duties were performed, Rushlow looked out at the vessel about every minute. After some 20 to 30 minutes , Rushlow saw a flow of liquid coming out of the vent , which indicated that the vessel was full. He went out to the truck and shut the valve off and then returned to the control room . A short time later, Holliday came to the control room and Rushlow instructed him to go out and disconnect the hose so the truck could be on its way. Holliday left the control room, but returned almost immediately , saying there were noises of explosions at the truck, which frightened him. Leaving Holliday to watch the board , Rushlow went outside toward the loading area , also heard explosive sounds , and immediately returned to the control room for safety's sake. He then called Henry Sonnier26 of Woodward Wight, to report that there was something wrong with the vessel . While waiting for a Woodward Wight representative to arrive, Rushlow went back out to the truck. Finding nothing apparently wrong, he disconnected the hose. At this time he noticed cracks in the metal plate on the bed of the truck. Sonnier arrived with Eugene Ducote, the Woodward Wight dispatcher who had originally brought the truck to Respondent 's premises. Rushlow told them not to move the truck because it might be dangerous to do so . He then telephoned Stansbury for instructions. Stansbury said to empty the vessel (putting the nitrogen back into the storage tank, after checking its purity) and then to move the vessel to another truck and refill it. Holliday and Ducote then took the truck away to have the vessel moved to another truck. They returned about 20 minutes later and refilled the vessel . As to his participation , Holliday essentially corroborated Rushlow's testimony. Respondent's evidence conflicted in many respects with the testimony of Rushlow and Holliday. Further, however, there were inconsistencies and conflicts within Respon- dent's evidence. Stansbury testified that Ducote had driven the truck in, with the vessel on it, at or about 4:30 p.m. With Ducote present at least part of the time, Stansbury made repairs to the vessel and then "released" it at or about 5 p.m., when he personally directed Holliday to hook up the hose and start filling. Stansbury testified that he had not told Rushlow about the vessel to be loaded until after Holliday, on instructions from Stansbury, had connected the hose and begun to fill the vessel. Yet Stansbury also testified that he "assumed" Rushlow had sent Holliday out to the loading platform . Stansbury further testified that it is the operator's (i.e., Rushlow's) duty to check the purity before a vessel is loaded but Stansbury had had "no idea" who checked the purity on the occasion in question.27 Kenneth W . Pelham , a dispatcher , called as a witness on behalf of Respondent , testified that at or about I or 2 p.m. on December 13, Cal Hodges , president of Woodward Wight , called and said he would be sending over a partially full vessel which was to be "topped off." At or around 4:30 p.m., before leaving for the day , Pelham told Rushlow about the vessel to be "topped off." Pelham recalled that Stansbury and Stanley W. Whitley, assistant plant manag- er, were present at the time . Neither Stansbury nor Whitley corroborated this . However , Pelham did not mention Gray's presence at the time . However, Gray testified that he had gone into the control room with Pelham and was present when Pelham told Rushlow "the vessel was on the load list and needed to be topped off." Gray also testified that he was present when Stansbury told Rushlow that the vessel was ready to be topped off and that Rushlow at that point "went to look for his helper ." However , at another point Gray said he thought Holliday was present in the control room when Stansbury told Rushlow that the vessel was ready to be "topped off." But, as previously stated, Stansbury testified that he had had Holliday attach the hose and start loading the vessel before he informed Rushlow that it was ready. The part of this conflicting testimony which is most important to Respondent 's position is the alleged fact that Rushlow was informed that the vessel was half full and needed only to be "topped off." Other evidence presented by Respondent , however , strongly tends to refute this contention. Ducote, the Woodward Wight employee who had brought the truck and vessel to Respondent 's plant, was called as a witness by Respondent . He testified that he "put a regulator" on the vessel while Stansbury did other work on it . Ducote testified unequivocally that he did not know that the vessel was partially full.28 At the same time, he acknowledged that "It's quite obvious that anything that hold pressure is dangerous ." His testimony continued: Q. But you weren't told anything about that this particular operation might be dangerous because this vessel was half full? 26 Although the record spells this name as "Somer ." Moore's notes spell it "Sonmer " The latter is the spelling of the last name of an employee at Respondent 's Beaumont , Texas, plant and of a supervisor at the Orange. Texas , plant as reported in Big Three Industrial Gas & Equipment Co, 181 NLRB 912, in which the Oil , Chemical and Atomic Workers International Union was certified as collective -bargaining agent at Respondent 's plants in Beaumont and Orange , Texas, and Lake Charles, Louisiana. 27 The confusion in Stansbury 's testimony as a whole can be seen in the following sample: Q And you did not advise Mr Rushlow that the vessel was ready to be loaded until after you started filling it by using Holliday Is this right? A Right. Q Who checked the purity of the vessel? A I have no idea. Q. You normally fill vessels without checking the purity? A. No. That's the operator'sjob. Q But [who ] told Rushlow it was ready to be filled[9] A. I wasn 't there Rushlow or somebody checked Q. Is this the usual procedure" A If the vessel hadn 't been checked , it was Mr Rushlow's obligation to stop the filling Q But Mr Rushlow hadn ' t been advised it was ready to be loaded" A As far as I know he knew that the vessel was ready to be loaded. 28 The testimony is as follows. Q Do you know how much liquid , if any , was in that vessel when you backed it up" A. No. I don't-well. I didn't Q. What instructions did you have from Big Three" How much liquid was to go in there" A. All I know it was to be filled Q How many gallons" A. Five hundred . I guess five hundred The total capacity of the vessel was 500 gallons. BIG THREE INDUSTRIES , INC. 709 A. I am sure at one time-not on this one. Q. That's what I mean. A. No. I didn 't know it was half full. With Respondent as safety conscious as it now claims to be, it is incredible that Stansbury would permit Ducote to perform a dangerous operation without at least mentioning the fact , if it were a fact , that the vessel was half full. And if, as Stansbury testified , a gauge prominently located in the vessel showed it to be half full, it is strange that Ducote thought it was empty. Stansbury testified that , after having had Holliday hook up the hose and start filling the vessel , he went into the control room and told Rushlow "the vessel was over half full and filling and to watch it." Then Stansbury again "went outside and watched it. " He then went back into the control room and told Rushlow "he had better watch it, again ." Stansbury then left the premises . Stansbury testified that Rushlow made no response to either of Stansbury 's warnings to watch the vessel . Testifying on rebuttal, Rushlow denied that Stansbury had said anything about the vessel 's being half full. Gray testified that he went through the control room and out toward the parking lot at or about 5:30, after Stansbury had left . Gray "noticed that the vessel was venting hard," whereupon he returned to the control room and "told Fred Rushlow that the vessel needed attention . It needed someone around it." According to Gray, Rushlow made no response, and Gray left . On rebuttal , Rushlow denied this testimony by Gray. It is most unlikely that Rushlow would blatantly ignore three warnings by the general manager and plant manager. It would be extraordinary for two responsible company officials to leave the premises hastily in the face of what they claim was manifestly imminent danger and Rushlow's alleged indifference . Vessels ordinarily are equipped with copper tubing outlets through which there will be a flow of liquid when a vessel had been 90 percent filled. Respon- dent's counsel apparently sought to establish that Rushlow was culpably negligent in not using the 10-percent line in filling the vessel on December 13. Rushlow credibly testified that vessels frequently were used with inoperable 10-percent lines . Rushlow and Holliday both testified that the 10-percent line was inoperative on the vessel that night. Stansbury testified that it was in working order , but he had no specific recollection , basing his testimony solely on the fact that he had released the vessel and he would not have released it with a defective or inoperable 10-percent line.29 However, there was no more evidence of infallibility on Stansbury 's part than on Rushlow 's. Indeed , the evidence was uncontradicted that Rushlow was known as a careful and conscientious operator. 29 "I checked the vessel out and changed the safety valves, checked the regulator and released it for service . Q Did you check the 10-percent line? A I checked the vessel . If the 10-percent line-if it-it had to be alinght, if I released it " 30 On direct examination , Gray testified A. The first appearance of it was cold It had ice on it The side panels . . the four-inch chapels [sic I going around , they were frosted They were frozen. Q Was the entire flat bed surface covered with ice? A Up to about three feet from the back of the truck Q And all of the forepart of the truck bed was covered with Ice' A The forepart was covered with ice Several witnesses , including those called by Respondent, indicated that it was not mandatory that the 10-percent line be used in filling vessels with liquid nitrogen . Rushlow credibly testified that on the occasion in question Stans- bury specifically instructed that the vessel be filled by gravity "out the vent"; i.e., that it be filled from above until a steady flow emerged from the vent . Significantly Stansbury did not attempt to look at the 10-percent line when he claimed that he warned Rushlow that the vessel needed attention. Finally , Gray rejected counsel 's suggestion concerning the 10-percent line. Gray testified: My personal opinion , I think we are putting a lot of emphasis on this 10% line that 's needless . I think when a man is filling a vessel and he knows that it is going to take 30 minutes to fill a vessel or to top it off, I think it should be watched continuously. My theory is tfiat a man should be there and if he is not going to be there, he should turn the valve off. The undisputed evidence establishes that an operator 's first and overriding obligation is to attend the control board and protect plant operations . Gray maintained only that an operator "could leave the control room for short intervals of time ." There are also discrepancies and deficiencies in Respondent 's evidence concerning events after the accident. Whitley testified that he was working on the repair of a machine when , sometime between 5:30 and 6, Rushlow rushed up "and said that he had messed up." According to Whitley , Rushlow said : "There is some liquid vessel running over ." Whitley went out to inspect . According to him, "[f ]t looked like an ice hockey arena," there were "either two or three inches [of ice or frost ] underneath the vessel itself" and a 4 or 5 square foot area of ice on the truck bed . The ice had begun to melt. Ducote , however, testified that , when he returned to the plant around 5:30 or 6, there was "a thin coating of ice" on the bed of the truck. Employee W. C. Mahary was called as a witness for Respondent . According to Ducote , Mahary was at the plant when Ducote arrived . Mahary testified that the truck bed "had a small frosted area underneath the vent line and it appeared to me it had been washed down to thaw it out "30 Yet Gray maintained that when he arrived at or around 8:15 or 8 : 30 there was considerable ice or frost still covering an extensive area in and around the truck 31 As previously stated , Rushlow testified that he tele- phoned Stansbury and received instructions to unload the vessel , move it to another truck , and then refill it. Stansbury , however, testified that when Rushlow tele- phoned , at or about 7 p.m., Stansbury merely told Rushlow to call Gray . Gray testified that he learned about the Q. Had any of it run off onto the ground? A. Obviously it had because there was frozen substance on the ground under the truck... . Q. How much was under the truck ? Do you have any way of estimating that? A I would have to-as I didn ' t measure it-1 would have to assume that this area was about five or six feet in diameter. 31 By leading question , Respondent's counsel sought to establish that Holliday , at Rushlow 's direction , had washed the area with a water hose Counsel's attempt was unsuccessful. Rushlow and Holliday credibly testifying that they had not done so. 710 DECISIONS OF NATIONAL LABOR RELATIONS BOARD accident by a telephone call he received from Hodges, of Woodward Wight, at or about 8 p.m. Gray testified that he immediately went to the plant, arriving about 8:15 or 8:30.32 Gray testified that, when he arrived at the plant, in response to Hodges' call, he asked Rushlow what had happened, and Rushlow replied: "It's pretty obvious. I run the vessel over." Gray "shrugged [his] shoulders in disgust and went to the plant office." The nitrogen had already been removed from the vessel. Gray told the men not to move the truck until it had thawed out. However, it was driven to Delta Southern, -a nearby company having hoisting equipment, and the vessel was there transferred to another truck. Gray left the plant before the vessel returned to Respondent's premises. Rushlow, however, testified that Gray did not arrive at the plant until after the vessel had been emptied and the truck had been driven off. According to Rushlow, Gray asked where the truck was, Rushlow replied that he believed it was at Delta Southern, at which point Gray left. Rushlow assumed Gray went to Delta Southern. As shown, Whitley and Gray are Respondent's principal witnesses to the alleged substantial damage, which, according to them, could have been caused only by the overflow of from 150 to 300 gallons of liquid nitrogen, which would have taken some 20 to 30 minutes. Nobody testified to Whitley's presence; he and Gray testified that Whitley, with occasional assistance by Gray, had been working all day, and continued after normal quitting time, on repair of the bearing of a machine in the plant. Gray testified that the machine had been test operated on December 12, at which time the bearing burned out. On rebuttal. employee Sheats produced a graphic chart of the plant operation on December 12. Respondent's counsel objected to the introduction of the chart in evidence, maintaining that it had been "stolen" from the plant. Sheats testified that such charts, which are made in the regular course of operations, are never referred to after they are made and generally are discarded. His statement was not denied and Respondent 's counsel himself indicat- ed that there was no reason why Sheats should not have access to them.33 Expressly declining to accept or rule on counsel 's protestation that Sheat 's taking of these charts, apparently having no monetary or other value, constituted theft, I sustained Respondent's objection to the introduc- tion of the chart. Sheats then testified that he knew how to read and interpret charts and that such a chart would reflect test operation of the machine on which Whitley was supposed to have worked. Sheats testified further that he had examined the chart for December 12 and it showed that no such machine was started or shut down on December 12.34 Respondent's counsel did not cross-exam- ine and Sheats ' testimony remains uncontradicted and is credited. On all the evidence, together with careful observation of 32 Gray testified that "[ tjhe Woodward Wight people were still there" Ducote, however, did not mention Gray's arrival or presence. 33 Counsel said, in part "He said he took them All he had to do was ask to take these things. He didn 't do that " 31 "That lit unit could have been down The IR-an IR unit could have been down but it wasn 't started up or one went down Q No test was made of it on December 12, 1971? A What it shows? Q No test was made of a bearing which would show on that day . A. That's right." the demeanor of the witnesses , I credit Rushlow's and Holliday's version of the events on the evening of December 13 and discredit Stansbury,35 Whitley, and Gray wherever their testimony conflicts with that of the General Counsel's witnesses. Presumably to establish the enormity of Rushlow's misconduct in leaving the truck unattended during loading, Respondent introduced an interoffice memorandum from Houston to the managers at 27 named locations stating that , because of possible penalties for violation of Federal regulations , "there must be no deviation ... for any reason" from the rule requiring constant attendance at the trucks during loading and unloading . The memorandum, however, is of little significance in the present case , since it was sent on May 10, 1972, 5 months after the events here involved . There are conspicuous signs at the loading area requiring drivers to remain with their vehicles during loading . However , Respondent's own witnesses confirmed that drivers do not normally obey that rule. Perhaps most significant is the fact that , so far as the record discloses. Ducote, the driver of the truck here involved, was not even mildly reprimanded (except by Rushlow) for having absented himself before the loading began. Holliday and Rushlow both testified , without contradic- tion, that shortly after becoming general manager of the Baton Rouge plant , in October 1971, Gray announced new personnel policies . He said there would be four causes for immediate discharge: fighting on the premises , sleeping on the job , drunkenness or drinking on the job , and firearms on company property . In all other cases, before being discharged for cause employees would first be given oral reprimands and then written reprimands, possibly accom- panied by a suspension of up to 3 days. No attempt was made to follow this or any other reasonable procedure before Rushlow was discharged . Indeed , Respondent summarily declined Rushlow's offer to reimburse the Company for the loss it claimed to have suffered.36 Rushlow credibly testified as follows concerning the possible explanations for the event in issue: ... The first thing that came to my mind Mr. Stansbury had worked on this vessel prior to my loading this way. . . . With my knowledge I figured that a safety had gone off on the sphere; that it had built up pressure and somehow or something wasn't right with the vessel ... . s • s • ... Coming from my mind that the bed of the truck had cracked from this liquid was one observation I had or that the vessel had created pressure and jumped off the truck and cracked the bed of the truck. That was my second theory of what happened. I do not find Rushlow 's testimony inconsistent with the statement in his pretrial affidavit that he "assumed that the 35 In Big Three Equipment Co. 145 NLRB 1685, 1692. In 24. 1694, In 31, 1695 , fn. 33, enfd in major part 359 F 2d 77 (CA . 5). Stansbury's testimony was discredited as evasive and self-contradictory . That appraisal is equally descnptive of his testimony in the present case 36 As credibly described by Rushlow , his offer was made solely to keep his job and was accompanied by a disclaimer of responsibility He refused to sign his dismissal slip because he thought it untrue BIG THREE INDUSTRIES, INC. freezing nitrogen caused the cracks." The evidence leaves little doubt that this assumption was correct. So far as culpability or blame was concerned, the question would be how the nitrogen escaped from the vessel. If Respondent's witnesses were to be believed, there was considerably more frost and ice around at 8:15 or 8:30, when Gray saw the truck, than there was at or around 5:30, when Mahary saw it. If that was so, it would follow that the damage was not caused by an overflow during the loading process but rather presumably by a leak or some other cause, since there was no contradiction of Rushlow's testimony that he had closed the loading valve before any of the other witnesses arrived. Perhaps the most telling circumstance is the undisputed fact that Gray discharged Rushlow without ever seeking to ascertain his or Holliday's versions of the events. Even under Respondent's evidence, Rushlow and Holliday were the only people present at the time the accident actually happened. Any genuine interest in determining the truth, to say nothing of attempting to act fairly, would have dictated giving the employees an opportunity to state their views. The evidence as a whole fails to establish that Rushlow was, through negligence or other misconduct, responsible for the damage which occurred on December 13. Further, the record as a whole leads inexorably to conclusion that Rushlow's precipitous discharge on December 14 was not motivated solely by a belief on the part of Respondent's representatives that Rushlow had caused the damage and that this conduct warranted immediate discharge. The finding that Rushlow was not properly discharged for cause does not in itself establish that his discharge was violative of Section 8(a)(3) of the Act, as alleged in the complaint. The real motivation must be found on the basis of inferences. N.L.R.B. v. Melrose Processing Co., 351 F.2d 693, 698 (C.A. 8). One possibility is that Stansbury, who had performed some repair work on the vessel before it was loaded, had negligently left it in a defective condition, and that Rushlow was made the scapegoat to protect Stansbury. If this were the fact, Rushlow's discharge, while unjust, would not be violative of the National Labor Relations Act. However, there was no evidence to this effect. From a management point of view it would be imprudent to retain Stansbury in the responsible position of plant manager if he had been responsible, through negligent repair of a vessel, for causing a dangerous condition and substantial damage. Absent compelling evidence, I cannot indulge in conjecture ascribing such unwise conduct to Respondent. The motivation for Rushlow's discharge must be sought in considerations which would serve some self-interest of Respondent. The evidence as a whole leads to the inference that the discharge was designed to further Respondent's interest in being rid of the Union. In appraising the evidence, Respondent's "general bias and hostility toward the union . . . are proper and highly significant factors for Board evaluation in determining 37 See also Big Three Industrial Gas & Equipment Co., 181 NLRB 1125, enforcement denied 441 F.2d 774 (C.A. 5). 38 This is not necessarily inconsistent with Rushlow's uncontradicted testimony that within a month of his discharge his work was praised by Gray, who further said that Rushlow's prospects of becoming an assistant 711 motive." Respondent's underlying hostility toward the Union is graphically reflected in its bargaining technique, as discussed above: It is further demonstrated by a series of other unfair labor practices, including discriminatory discharge in violation of Section 8(a)(3). See Big Three Welding Equipment Company, 145 NLRB 1685, enfd. in major part 359 F.2d 77 (C.A. 5); Big Three Industrial Gas & Equipment Co., 165 NLRB 30 and 1069, enfd. in major part 405 F.2d 1140 (C.A. 5).37 The evidence here establishes that Rushlow was a worthy specific target for Respon- dent's union animus. Rushlow assumed the role of spokesman for the employees and union activist. On August 5, he testified on behalf of the Union at a representation proceeding involving Woodward Wight Big Three. And he served as a member of the Union 's negotiating committee. At the negotiating meeting on August 26, Moore invited employee questions. Stating that he was asking questions raised by other employees, Rushlow raised several matters, including the absence of Christmas bonuses and the cost of health and hospitalization benefits. According to both Moore and Arnold, Rushlow in effect accused Respondent of not paying half of the insurance premiums, which Respondent said it was paying. Moore was visibly and vocally angered by Rushlow's statements. Sometime toward the end of October, shortly after arriving at the Baton Rouge plant, Gray held a safety meeting. At that meeting, Rushlow complained of several safety deficiencies and stated that the employees would not hesitate to go to the Federal government if necessary to have remedial action. taken. Moore requested that the employees withhold such action to give him an opportunity to have matters corrected. The employees agreed to that request. Employee Sheats had worked for Respondent for about 7-1/2 years and had been outspokenly antiunion . Howev- er, he felt the Baton Rouge employees were being unfairly treated and therefore supported the present campaign. He credibly testified to a conversation he had with Gray toward the end of October. According to Sheats, Gray expressed displeasure with Sheat's change of heart. Gray also told Sheats to "get together with the other men" and vote against authorizing a strike. Sheats then credibly quoted Gray as having said: "If everything goes as I expect it to, we will be able to apply for decertification of the Union shortly." According to Sheats' uncontradicted testimony, Gray said there was a small group of employees with whom he could not communicate, and he specifically identified Rushlow as the one employee who "had to go."38 It is noteworthy that Rushlow was discharged at just about the time the Union was attempting to secure resumption of contract negotiations, which had been quiescent since October. Taken as a whole, the evidence shows an antiunion employer bent upon never reaching an agreement with the Union and hopeful that there will be sufficient defection plant manager were good . Like discharge , promotion to a supervisory position would remove Rushlow as an effective spokesman for the Union or the employees . The praise for Rushlow . however, is inconsistent with the varied criticism contained in Rushlow 's discharge slip and in the testimony of some of Respondent 's witnesses. 712 DECISIONS OF NATIONAL LABOR RELATIONS BOARD among the employees for a successful decertification petition at the end of the certification year . The discharge of Rushlow manifestly would tend to encourage such defection . It would be particularly effective at this time-when the Union was seeking to have negotiations resumed , almost 2 months after the last meeting. In the absence of any credible explanation for the unduly harsh treatment of Rushlow , without his even being afforded an opportunity to defend himself , I can conclude only that he was being used as an example to the other employees of the potential cost of concerted and protected activities . Even if Respondent had reasonably believed that Rushlow 's negligence had caused the damage of the truck, and therefore had ground for discharging him, the record as a whole requires the inference that "the actual reason for the discharge was because of Union activities," and therefore "it was a violation of § 8(a )(3)." N.L.R . B. v. Big Three Industrial & Equipment Co., supra, 405 F .2d at 1142. C. Section 8(a)(1) The complaint in Case 15-CA-4312 alleged three independent violations ansing from Gray 's conversations with Sheats in October. I do not consider Gray 's advising Sheats to tell other employees not to authorize a strike by the Union to constitute coercion or interference with the employees' rights. According to Sheats . Gray explained his advice by pointing out, in effect , that a strike would deprive the employees of their freedom of individual action . There was no suggestion of any threat of retaliatory action by Respondent . I consider Gray's remarks in this connection as permissible free speech. On the other hand , I do find that Gray could not "talk to" Rushlow and that Rushlow "has got to go" amounted to a threat of discharge for active support of the Union and/or espousal of employee complaints . As such, the statement was violative of Section 8(a)(I). Gray's statement that Respondent intended to file a decertification petition may well have been part of the pattern of Respondent's unlawful refusal to bargain with the Union . However , it does not appear to be independent- ly coercive or otherwise violative of Section 8(a)(l). The complaint also alleged that Moore independently violated Section 8(a)(1) by chastising Rushlow and accusing him of disloyalty to Respondent when, at the August 26 negotiating meeting , he expressed doubt that the Company was being truthful in saying that it was paying half of the premiums for the employees' hospitalization and health insurance . In my opinion , Moore's reaction was a natural response to an accusation of dishonesty , whether or not the accusation was warranted . Moore's statement was part of a bargaining session and was unaccompanied by any threat . I find it was not independently violative of Section 8(a)(1). At the outset of the hearing , the General Counsel amended the complaint to allege that sometime in June 1972 Assistant Plant Manager Whitley "threatened to take away certain employee privileges if the Union were successful in its bargaining efforts." In support of this allegation the General Counsel presented testimony by employee William Diamond that about a week before the present hearing Diamond asked Assistant Plant Manager Whitley if he had heard anything recently about the Union . According to Diamond , Whitley replied that "if the Union came in they were going to take the table and chairs and the coffee machine and all out of the office " and "the helpers would stay out . . . in the plant" while the operators would remain in the control room for their entire 8-hour shifts . Additionally, Whitley "said something about all the missing , taking off, was going to have to cease." Whitley was not connected with the bargaining. His statements , as briefly summarized by Diamond, are certainly susceptible of the interpretation that he was referring to contract terms which Respondent would demand . Under the circumstances , I cannot conclude that the statements constituted a threat of retaliation or reprisals for the employees ' having chosen to be represent- ed by the Union . At the most , Whitley's statements were part of the refusal to bargain and not independently violative of Section 8(a)( I). It may be noted , however , that a contrary finding as to the alleged violations of Section 8(a)(l) would not substantially affect the results of this case since, as set forth below, I shall in any event recommend a broad cease-and- desist order. CONCLUSIONS OF LAW 1. Respondent violated Section 8(a)(5) of the Act by failing to bargain in good faith with the Union on and after August 5 , 1971, as the exclusive bargaining representative of its employees in the following appropriate bargaining unit: All production and maintenance employees, includ- ing truckdrivers and plant clerical employees , employed by Respondent at its Baton Rouge , Louisiana , facility, exclusive of all other employees , office clerical employees, guards and supervisors as defined in the Act. 2. Respondent violated Section 8(a)(3) and ( 1) of the Act by discharging Fred J. Rushlow on December 14, 1971, and refusing to reinstate him thereafter. 3. Respondent violated Section 8(a)(l) of the Act by threatening the discharge of an employee because of his union or other protected concerted activities. 4. The aforesaid unfair labor practices are unfair labor practices affecting commerce within the meaning of Section 2(6) and (7) of the Act. 5. The General Counsel has not shown by a preponder- ance of the evidence that Respondent has engaged in any unfair labor practices other than those found above. THE REMEDY Having found that Respondent has engaged in unfair labor practices , I shall recommend that Respondent be ordered to cease and desist therefrom and take affirmative action of the type customarily ordered in such cases. Having found that Respondent discriminatorily discharged Fred J. Rushlow , I shall recommend that Respondent be required to offer him immediate and full reinstatement, with backpay , to be computed in the manner established in F. W. Woolworth Company , 90 NLRB 289, together with interest at 6 percent per annum in accordance with Isis Plumbing & Heating Co ., 138 NLRB 716. BIG THREE INDUSTRIES, INC. Respondent's discriminatory discharge of Rushlow and its cynical and sham approach to its bargaining obligation strike at the very heart of the Act. Additionally, as set forth above, Respondent's proclivity to violate the Act has been established by previous unfair labor practices concerning which broad cease-and-desist orders have been issued and judicially sustained. Accordingly, I shall recommend entry of a broad cease-and-desist order. Because the evidence indicates that Respondent has been "stalling" and undoubtedly intends to continue doing so, with the purpose of dissipating the Union's support, I shall also recommend that the "certification year" be extended through 1 year after Respondent commences to bargain in good faith. Raynal Plymouth Company, 175 NLRB 527. Upon the basis of the foregoing findings of fact, conclusions of law, and the entire record in this proceed- ing, and pursuant to Section 10(c) of the Act, I hereby issue the following recommended: 39 ORDER Respondent, Big Three Industries, Inc., its officers, agents, successors , and assigns, shall: 1. Cease and desist from: (a) Refusing to bargain collectively in good faith concerning wages , hours, and other terms and conditions of employment with General Truck Drivers, Warehouse- men & Helpers Local No. 5, affiliated with International Brotherhood of Teamsters, Chauffeurs, Warehousemen & Helpers of America, Ind., as the exclusive representative of all production and maintenance employees, including truckdrivers and plant clericals employed by Respondent at its Baton Rouge, Louisiana, facility, exclusive of all other employees, office clerical employees, guards, and supervisors as defined in the Act. (b) Threatening to discharge an employee for engaging in protected concerted activity or for supporting the above- named labor organization or any other labor organization, except to the extent that the right to do so may be restricted by a valid contractual provision authorized under the Act. (c) Discouraging membership in the above-named labor organization (or any other labor organization, except to the extent permitted by a contractual provision valid and authorized by the Act) by discharging an employee or by discriminating in any other manner in regard to hire and tenure of employment or any term or condition of employment. (d) In any other manner interfering with, restraining, or coercing employees in the exercise of the right to self- organization, to form, join, or assist any labor organiza- tion, 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 any or all such activities. 2. Take the following affirmative action which is necessary to effectuate the policies of the Act: (a) Bargain collectively in good faith with General Truck Drivers, Warehousemen & Helpers Local No. 5, affiliated with International Brotherhood of Teamsters, Chauffeurs, Warehousemen & Helpers of America, Ind., as the exclusive representative of all the employees in the 713 appropriate unit defined above, and embody in a signed agreement any understanding reached. Regard the Union as exclusive agent as if the initial year of certification has been extended for an additional year from the commence- ment of bargaining pursuant hereto. (b) Offer Fred J. Rushlow immediate and complete reinstatement to his former job or, if that position is no longer in existence, to a substantially equivalent position, without prejudice to his seniority or other rights and privileges, and make him whole for any loss of earnings he may have suffered by reason of the discrimination against him, in the manner set forth in the section of this Decision entitled "The Remedy." (c) Notify immediately the above-named individual, if presently serving in the Armed Forces of the United States, of the right to full reinstatement , upon application after discharge from the Armed Forces, in accordance with the Selective Service Act and the Universal Military Training and Service Act. (d) Preserve and, upon request, make available to the Board or its agents, for examination and copying, all payroll records, social security payment records, timecards, personnel records and reports, and all other records necessary to analyze the amount of backpay due under the terms of this recommended Order. (e) Post at its facility in Baton Rouge, Louisiana, and at its home office in Houston, Texas, copies of the attached notice marked "Appendix." 40 Copies of said notice, on forms provided by the Regional Director for Region 15, after being duly signed by Respondent's representative, shall be posted by Respondent immediately upon receipt thereof, and be maintained 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. (f) Notify the Regional Director for Region 15, in writing, within 20 days from the date of the receipt of this Decision, what steps the Respondent has taken to comply herewith.41 IT IS FURTHER ORDERED that the complaint be, and it hereby is, dismissed insofar as it alleges violations of the Act not specifically found herein. 99 In the event no exceptions are filed as provided by Sec. 102.46 of the Rules and Regulations of the National Labor Relations Board , the findings, conclusions , and recommended Order herein shall , as provided in Sec. 102 48 of the Rules and Regulations, be adopted by the Board and become its findings, conclusions, and Order, and all objections thereto shall be deemed waived for all purposes. 40 In the event that the Board 's Order is enforced by a Judgment of a United States Court of Appeals, the words in the notice reading "Posted by Order of the National Labor Relations Board" shall read "Posted Pursuant to a Judgment of the United States Court of Appeals Enforcing an Order of the National Labor Relations Board." 41 In the event that this recommended Order is adopted by the Board after exceptions have been filed, this provision shall be modified to read. "Notify the Regional Director for Region 15 . in writing, within 20 days from the date of this Order , what steps the Respondent has taken to comply herewith " 714 DECISIONS OF NATIONAL LABOR RELATIONS BOARD APPENDIX NOTICE TO EMPLOYEES POSTED BY ORDER OF THE NATIONAL LABOR RELATIONS BOARD An Agency of the United States Government After a trial in which all parties had the opportunity to present their evidence , it has been found that we violated the law and we have been told to post this notice about what we are committed to do. The Act gives all employees these rights: To organize themselves To form, join, or help unions To bargain as a group through a representative of their own choosing To act together for collective bargaining or other mutual aid or protection To refuse to do any or all of these things. We assure all of our employees that we will not do anything that interferes with these rights. WE WILL offer Fred J. Rushlow immediate and full reinstatement to his formerjob or, if that job no longer exists, to a substantially equivalent job, without prejudice to his seniority or other rights and privileges. WE WILL make Fred J. Rushlow whole for any loss of earnings he may have suffered by reason of his discharge by us on December 14, 1971, together with interest. WE WILL, in good, faith, bargain collectively with General Truck Drivers, Warehousemen & Helpers Local No. 5, affiliated with International Brotherhood of Teamsters, Chauffeurs, Warehousemen & Helpers of America, Ind., for the unit described below in respect to rates of pay, wages, hours of work, and other terms and conditions of employment , and, if an understand- ing is reached, reduce it to writing and sign it. The bargaining unit is: All production and maintenance employees, employed by us at our Baton Rouge, Louisiana , facility , exclusive of all other employees, office clerical employees , guards and supervisors as defined in the Act. WE WILL NOT discharge any employees or threaten them with discharge or any other form of reprisals for engaging in protected concerted activities or for joining or supporting General Truck Drivers, Warehousemen & Helpers Local No. 5, affiliated with International Brotherhood of Teamsters , Chauffeurs , Warehousemen & Helpers of America , Ind., or any other labor organization. Dated By BIG THREE INDUSTRIES, INC. (Employer) (Representative) (Title) We will notify immediately the above -named individual, if presently serving in the Armed Forces of the United States, of the right to full reinstatement , upon application after discharge from the Armed Forces, in accordance with the Selective Service Act and the Universal Military Training and Service Act. This is an official notice and must not be defaced by anyone. 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. Any questions concerning this notice or compliance with its provisions may be directed to the Board 's Office, Suite 2700, Plaza Tower, 1001 Howard Avenue , New Orleans, Louisiana 70113, Telephone 504-527-6361. Copy with citationCopy as parenthetical citation