Central American AirwaysDownload PDFNational Labor Relations Board - Board DecisionsJun 14, 1973204 N.L.R.B. 161 (N.L.R.B. 1973) Copy Citation CENTRAL AMERICAN AIRWAYS 161 Central American Airways and International Brother- hood of Firemen and Oilers, Local 281 , AFL-CIO. Case 10-CA-9579 June 14, 1973 DECISION AND ORDER BY CHAIRMAN MILLER AND MEMBERS FANNING AND PENELLO On February 16, 1973, Administrative Law Judge Jerry B. Stone issued the attached Decision in this proceeding. Thereafter, the General Counsel and the Respondent filed exceptions and supporting briefs. The Respondent also filed an answering brief. Pursuant to the provisions of Section 3(b) of the National Labor Relations Act, as amended, the Na- tional Labor Relations Board has delegated its au- thority in this proceeding to a three-member panel. The Board has considered the record and the at- tached Decision in light of the exceptions and briefs and has decided to affirm the rulings, findings, and conclusions of the Administrative Law Judge except as modified herein. We agree with the Administrative Law Judge, for the reasons stated by him, that Respondent violated Section 8(a)(3) and (1) of the Act by failing and refus- ing to hire two of its predecessor's employees, Ives and Spader Sr., because of their active role in support of the Union.' We also agree with the Administrative Law Judge's finding that Respondent's obligation as a successor employer to bargain with the Union 2 which repre- sented its predecessor's employees did not mature un- til after May 3 or 4, when Respondent hired its full complement of employees consisting of 9 of its predecessor's 12 employees whom Respondent knew to be represented by the Union.' The Administrative Law Judge, therefore, correctly concluded that Re- spondent did not violate Section 8(a)(5) and (1) of the Act when, on May 2, 1972, it established the initial terms and conditions of employment for its operation which was scheduled to begin on May 5. Since there is no evidence that these terms were changed after Respondent's obligation to bargain had matured on or about May 4, we also agree with the Administrative Law Judge that Respondent did not unlawfully change the existing terms and conditions of employ- ment when it implemented its previously established initial working conditions upon commencing opera- tions on May 5. We disagree, however, with the Administrative Law Judge's finding that, in the circumstances here, the Union was required to renew its demand for recogni- tion and bargaining after Respondent's obligation to bargain had matured. In our opinion, the facts of this case, particularly the statements by Respondent's President Paris to Union Steward Ives on May 2 that it would not bargain in any manner or enter into a collective-bargaining agreement with the Union war- rants a finding that a renewed request would have been futile.4 We find, therefore, that Respondent vio- lated Section 8(a)(5) and (1) of the Act by its refusal to recognize the Union on or about May 5, 1972, when it commenced operations with a work force consisting for the most part of former Hallmark employees who were represented by the Union. Accordingly, we shall order that Respondent recognize and, upon request, bargain with the Union regarding terms and condi- tions of employment promulgated after Respondent's obligation to bargain had matured. ' Ives and Spader Sr., as well as Snyder, were the only employees of Respondent's predecessor , Hallmark Aviation , Inc., not hired by Respon- dent They were also the only elected union officials at the Hallmark opera- tion. No exceptions were taken to the Administrative Law Judge's finding that Snyder did not file an employment application and for that reason was not hired. Respondent , however, has excepted to the Administrative Law Judge's finding that Ives and Spader Sr. were discriminatorily denied employment. These findings are based entirely on the Administrative Law Judge's credibil- ity resolutions . It is the Board 's established policy not to overrule an Admin- istrative Law Judge's resolutions with respect to credibility unless the clear preponderance of all of the relevant evidence convinces us that the resolu- tions are incorrect . Standard Dry Wall Products, 91 NLRB 544, enfd . 188 F.2d 362 (C A. 3, 1951). We have carefully examined the record and find no basis for reversing his findings. 2 The Union was certified on May 19, 1971, in a bargaining unit consisting of all full-time and regular part -time employees employed by Hallmark Avia- tion , Inc., at the Valdosta Municipal Airport, excluding all office clerical employees , guards and supervisors as defined in the Act CONCLUSIONS OF LAW 1. Central American Airways, the Respondent, is an employer engaged in commerce within the mean- ing of Section 2 (6) and (7) of the Act. 2. International Brotherhood of Firemen and Oil- ers, Local 281 , AFL-CIO, is, and has been at all times material herein , a labor organization within the mean- ing of Section 2(5) of the Act. 3. All full-time and regular part-time employees 3 N L.R.B. v. Burns International Security Services, Inc., 406 U.S. 272 (1972); Hecker Machine, Inc, 198 NLRB No. 161. 4 Roadway Express, Inc, 170 NLRB 1446, 1448. 204 NLRB No. 25 162 DECISIONS OF NATIONAL LABOR RELATIONS BOARD employed by Central American Aviation at the Val- dosta Municipal Airport, excluding all office clerical employees, guards, and supervisors as defined in the Act, constitute a unit appropriate for the purposes of .;ollective bargaining within the meaning of Section 9(b) of the Act. 4. The above-named labor organization has been and now is the exclusive representative of all employ- ees in the aforesaid appropriate unit for the purpose of collective bargaining within the meaning of Section 9(a) of the Act. 5. By refusing on or about May 5, 1972, and at all times thereafter, to recognize and bargain with the Union in the previously described appropriate unit, Respondent has engaged in and is engaging in unfair labor practices within the meaning of Section 8(a)(5) and (1) of the Act. 6. By refusing to hire Von E. Ives and Daniel L. Spader, Sr., Respondent has discouraged membership in a labor organization by discriminating in regard to tenure of employment, thereby engaging in unfair la- bor practices in violation of Section 8(a)(3) and (1) of the Act. 7. The aforesaid unfair labor practices affect com- merce within the meaning of Section 2(6) and (7) of the Act. ORDER Pursuant to Section 10(c) of the National Labor Relations Act, as amended, the National Labor Rela- tions Board hereby orders that the Respondent, Cen- tral American Airways, Valdosta, Georgia, its officers, agents, successors, and assigns , shall: 1. Cease and desist from: (a) Refusing to recognize and, upon request, bar- gain with International Brotherhood of Firemen and Oilers, Local 281, AFL-CIO, as the exclusive repre- sentative of the employees in the appropriate unit described below with respect to rates of pay, wages, hours of employment, and other terms and conditions of employment. All full-time and regular part-time employees employed by Central American Airways at the Valdosta Municipal Airport, Valdosta, Georgia, excluding all office clerical employees, guards, and supervisors as defined in the act. (b) Refusing to hire or otherwise discriminating against employees in regard to hire or tenure of em- ployment, or any term or condition of employment because of their union or protected concerted activi- ties. (c) In any other manner interfering with, re- straining, or coercing employees in the exercise of their rights guaranteed in Section 7 of the Act except to the extent that such rights may be affected by law- ful agreements in accord with Section 8(a)(3) of the Act. 2. Take the following affirmative action which the Board finds will effectuate the policies of the Act: (a) Recognize and, upon request, bargain with the Union as the exclusive representative of all the em- ployees in the aforesaid appropriate unit with respect to rates of pay, wages, hours, and other terms and conditions of employment, and embody in a signed agreement any understanding reached with the Union. (b) Offer to Von E. Ives and Daniel L. Spader, Sr., immediate employment as flight instructors, or, if such positions no longer exist, to substantially equiva- lent positions , without prejudice to their seniority, or other rights previously enjoyed, and make each whole for any loss of pay suffered by reason of the discrimi- nation against him in the manner described in the section entitled "The Remedy" of the Administrative Law Judge's Decision. (c) 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 Order. (d) Post at Respondent's place of business at Val- dosta, Georgia, copies of the attached notice marked "Appendix." 5 Copies of said notice, on forms provid- ed by the Regional Director for Region 10, after being duly signed by Respondent's representative, shall be posted by it immediately upon receipt thereof, and be maintained by Respondent 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. (e) Notify the Regional Director for Region 10, in writing, within 20 days from the date of this Order, what steps the Respondent has taken to comply here- with. 5 In the event that this 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 " CENTRAL AMERICAN AIRWAYS APPENDIX NOTICE To EMPLOYEES POSTED BY ORDER OF THE NATIONAL LABOR RELATIONS BOARD An Agency of the United States Government WE WILL NOT refuse to hire or otherwise dis- criminate against employees in regard to hire or tenure of employment, or any term or condition of employment because of their union or protect- ed concerted activities. WE WILL NOT refuse to recognize and upon re- quest to bargain collectively concerning rates of pay, wages, hours and other terms and conditions of employment with the International Brother- hood of Firemen and Oilers, Local 281, AFL- CIO as the exclusive representative of the em- ployees in the bargaining unit described below: All full-time and regular part-time employ- ees employed by Central American Aviation at the Valdosta Municipal Airport, excluding all office clerical employees, guards, and supervi- sors as defined in the Act. WE WILL NOT in any other manner interfere with, restrain, or coerce employees in the exercise of their rights guaranteed in Section 7 of the Act. WE WILL offer to Von E. Ives and Daniel L. Spader, Sr., immediate employment as flight in- structors or, if such positions no longer exist, to substantially equivalent positions, without preju- dice to their seniority or other rights previously enjoyed, and make each whole for any loss of pay suffered by reason of the discrimination against him. WE WILL recognize and, upon request, bargain with the International Brotherhood of Firemen and Oilers, Local 281, AFL-CIO as the exclusive representative of all employees in the bargaining unit described herein, with respect to rates of pay, wages, hours and other terms and conditions of employment and, if an understanding is reached, embody such understanding in a signed agreement. All our employees are free to become or remain, or refrain from becoming or remaining members of any labor organization. CENTRAL AMERICAN AIR- WAYS (Employer) Dated By 163 (Representative) (Title) 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 compli- ance with its provisions may be directed to the Board's Office, Peachtree Building, Room 701, 730 Peachtree Street, N.E., Atlanta, Georgia 30308, Tele- phone 404-526-5760. DECISION STATEMENT OF THE CASE JERRY B. STONE, Administrative Law Judge: This proceed- ing, under Section 10(b) of the National Labor Relations Act, as amended, was tried pursuant to due notice on De- cember 5, 1972, at Valdosta, Georgia. The charge was filed on May 12, 1972. The amended complaint in this matter was issued on October 27, 1972. The amended complaint was further amended on Novem- ber 17, 1972. The issues concern whether Central American Airways is a successor to Hallmark Aviation, Inc.; whether Central American Airways since on or about May 5, 1972, has refused to bargain with the Union in violation of Sec- tion 8(a)(5) and (1) of the Act; whether Central American Airways made unilateral charges in wages and hours of work of its employees on or about May 5, 1972, in violation of Section 8(a)(5) and (1) of the Act; and whether Central American Airways discriminatorily refused to hire, on or about May 5, 1972, the following individuals, Von E. Ives, Daniel L. Spader, Sr., and Stanley W. Snyder. All parties were afforded full opportunity to participate in the proceeding. Briefs have been filed by the General Counsel and Respondent and have been considered.' Upon the entire record in the case and from my observa- tion of witnesses, I hereby make the following: FINDINGS OF FACT I THE BUSINESS OF THE EMPLOYER The facts herein are based upon the pleadings and admis- sions therein. 'Respondent's brief alludes to a letter from employees to the Regional Director of Region 10 relating to a request for a decertification election This referred-to letter is not in evidence. General Counsel 's motion of February 1, 1972, alluding to the Respondent's brief and moving to strike such portion of the brief is granted . General Counsel 's motion is deemed marked as ALJ Exh. I and is received into the record. 164 DECISIONS OF NATIONAL LABOR RELATIONS BOARD Central American Airways, the Respondent, is, and has been at all times material herein, a Kentucky corporation, with its principal office and place of business located at Louisville , Kentucky , where it is engaged in the operation of a fixed-based flying service. Only Respondent's opera- tion at Valdosta Municipal Airport, Valdosta, Georgia, herein called the airport, is involved in this proceeding. Respondent, during a 1-year representative period, will provide flying instruction services, pursuant to written con- tract, for the United States armed forces at bases located in Georgia, valued in excess of $50,000. As conceded by Respondent and based upon the fore- going, it is concluded and found that the 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. 11. THE LABOR ORGANIZATION INVOLVED International Brotherhood of Firemen and Oilers, Local 281, AFL-CIO, is and has been at all times material herein a labor organization within the meaning of Section 2(5) of the Act. III THE UNFAIR LABOR PRACTICES A. Preliminary Facts Supervisory Status 2 The following-named individuals , occupying the posi- tions set opposite their respective names, are and have been at all times material herein, except as indicated , supervisors of Respondent within the meaning of Section 2(11) of the Act: Wilbur Pans-President Glen Armstrong-Facility Manager , Webb Air Force Base Parker Slocomb-Flight Supervisor Terminated 7/19/72 B. The Successorship Question 3 From on or about February 22, 1971, until on or about May 4, 1972, Hallmark Aviation, Inc. (hereinafter called Hallmark), pursuant to a written contract , provided flying instruction services at the Valdosta airport for the United States Air Force. This program was and is known as the T-41 contract program. All full-time and regular part-time employees employed by Hallmark at the Valdosta Municipal Airport, excluding all office clerical employees , guards and supervisors as de- fined in the Act, constituted a unit appropriate for the pur- poses of collective bargaining within the meaning of Section 9(b) of the Act. On May 19, 1971, the Regional Director for Region 10 of the National Labor Relations Board certified the Union (International Brotherhood of Firemen and Oilers, Local 281, AFL-CIO) as the exclusive bargaining representative for the employees in the unit described above. After the Union was organized and had become the col- lective-bargaining representative of Hallmark 's employees, Von E. Ives was elected union steward . Daniel Spader, Sr., and Stanley W. Snyder were elected bargaining committee- men. There were no other local officers elected from the Hallmark employees. During the period of time that the Union was bargaining with Hallmark concerning a collective -bargaining agree- ment, all of Hallmark 's employees went on a strike in sup- port of the Union's contract demands. The strike lasted for 2 days and occurred around October 11 and 12, 1971. On or about October 14, 1971, the Union and Hallmark entered into a collective-bargaining agreement, expiring February 15, 1972, covering the employees in the unit de- scribed above. From February 15, 1972, until May 5, 1972, Hallmark continued in effect the same terms and conditions of employment for the employees in the bargaining unit described above. Excepting for the union strike which occurred for 2 days around October I1 and 12, 1971, there were no significant problems with respect to the United States Air Force Flight Instruction T-41 program at Valdosta, Georgia. United States Air Force officers on the scene, Lt. Colonel Scheuring and Captain Verno, kept abreast of the Valdosta program and reported on the same to Colonel Wilkerson, based at San Antonio, Texas. Wilkerson, on occasion, visited the Valdosta operation. In February 1972, Colonel Wilkerson checked with Lt. Colonel Scheuring about the Valdosta op- eration, and asked about the three union representatives (Ives , Spader Senior, and Snyder). Wilkerson and Scheuring discussed these matters and the flight instruction program (called the T-41 program) in general . The overall facts re- veal that Scheuring had and has high regard for Spader's abilities and services. Wilkerson told Scheuring in effect that it appeared that Spader would be rehired when the new contract was let but that the other two (Ives and Snyder) would not be rehired because they were troublemakers. Paris, Respondent's President, credibly testified to the effect that as of February 1972 he had not been in contact with the United States Air Force about the upcoming T-41 contract at Valdosta, Georgia." 4Considenng the nature of Scheuring 's testimony as to what Wilkerson had related concerning a contractor's potential hiring of Spader and refusal 2 The facts are based upon the pleadings and admissions therein . to hire Snyder and Ives and the credited testimony of Pans indicated above, 3 The facts are based upon the pleadings and admissions therein , stipula- I find such evidence to fail to reveal that Respondent indicated to the Air bons, exhibits, and credited testimony of witnesses. The facts are not in real Force in February 1972 that it would hire Spader and not hire Ives and dispute except where indication is made . Snyder because they were troublemakers. CENTRAL AMERICAN AIRWAYS During the several months before May 5, 1972, the Unit- ed States Air Force went through procedures designed to obtain a new T-4l contract for the services performed by Hallmark as described above . Hallmark initially submitted a bid for such contract but later withdrew its bid . Respon- dent also submitted a bid for such contract during this period of time. While the bids by various companies were pending, the Union on March 17, 1972, sent the following letters to the Respondent: INTERNATIONAL BROTHERHOOD OF FIREMEN & OILERS AFL-CIO LOCAL 281 MOODY AIR FORCE BASE , GEORGIA 17 March 1972 Central American Airways Attn: Mr. Wilbur Paris Bowman Field Louisville, Kentucky CERTIFIED MAIL Sir: It has come to our attention that you are a prospective bidder on the next USAF T-4I Primary Training con- tract commencing on or about 5 May 1972. We wish to inform you that we are presently employed with Hallmark Aviation, Inc.: San Antonio, Texas un- der a Union successor type Labor Agreement as recog- nized by the National Labor Relations Board and pertinent laws thereof. Should you be the newly favored contractor we desire that you be aware that the present employee force as a group will be available to man the operation for you. We would welcome the opportunity, at your conve- nience, to discuss with you particulars to assure a fu- ture mutually satisfactory relationship. 165 The Respondent did not respond to this letter from the Union. Around this time, March or April 1972, Respondent placed an advertisement in a trade journal soliciting appli- cations for employment as flight instructors.5 The exact details of such advertisement were not revealed by the evi- dence presented by the Respondent. Paris's credited testi- mony, however, revealed that this advertisement did not allude to the Valdosta operation. Paris's testimony further did not reveal whether Respondent specified the terms and conditions of employment that the advertisement con- cerned. Pans credibly testified to the effect that he received about 150 applications for employment as Flight Instructors from the trade journal advertisement. Paris further credibly testi- fied to the effect that he considered 100 of such applications to be from qualified applicants. The facts reveal that Re- spondent did not hire any of these applicants for the Val- dosta operation when it commenced work on May 5, 1972. In mid-Apnl 1972, Respondent was orally advised by the United States Air Force that it would receive the contract for providing flight instruction services at the Valdosta air- port. Respondent then placed the following advertisement in a local Valdosta, Georgia, newspaper on April 25, 1972. INSTRUCTOR PILOTS Applications are being accepted for flight instructors and ground personnel in connection with USA T-41 training program. CENTRAL AMERICAN AIRWAYS P. O. BOX 5637 BOWMAN FIELD LOUISVILLE, KENTUCKY 40205 The Union, on April 26, 1972, sent the following letter to the Respondent: INTERNATIONAL BROTHERHOOD OF FIREMEN & OILERS AFL-CIO LOCAL 281 MOODY AIR FORCE BASE, GEORGIA 26 April 1972 Yours truly, Sammy A. May Secretary CERTIFIED MAIL, Route I Central American Airways Attn: Mr Wilbur ParisRay City Georgia ., Ph 912/244-8785 P. O. Box 5637 Von E. Ives, Steward Bowman Field c/o Hallmark Aviation, Inc. Louisville, Kentucky Valdosta Municipal Airport Valdosta, Georgia 31601 5 Based upon the credited testimony of Parts 166 DECISIONS OF NATIONAL LABOR RELATIONS BOARD Sir: It has come to our attention that you are the favored bidder on the next USAF T-41 Primary Training con- tract of Moody Air Force Base commencing on or about 5 May 1972. We also note your recent advertise- ment in the Valdosta Daily Times newspaper accepting applications for employees. We advised you by letter of 17 March 1972 of the availability of the present work force and solicited your reciprocal communication . We have received no re- sponse from you. The door is still open! Yours truly, Sammy A. May, Secretary Route 1 Ray City , Georgia Ph 912/244-8785 Von E. Ives, Steward c/o Hallmark Aviation, Inc. Valdosta Municipal Airport Valdosta , Georgia 31601 Ph 912/242-4162 The Respondent did not reply to the Union 's letter of April 26, 1972. The Respondent received the T-41 contract from the United States Air Force concerning the providing of flight instruction services at Valdosta, Georgia, on Saturday, April 29, 1972. Such services were scheduled to commence on May 5 , 1972. It appears that although Hallmark's con- tract expired on May 4, 1972, actual flight instruction classes ceased on or about May 2, 1972. On May 2, 1972, Respondent 's officials went to Valdosta, Georgia , for the purpose of interviewing applicants and of hiring employees for its work force to carry out its contrac- tual duties . Prior to going to Valdosta , Georgia , Respondent notified two individuals (Mansfield and Carpenter) who worked for Respondent at Louisville , Kentucky , that they would be hired as flight instructors for the Valdosta opera- tion. Respondent notified Hallmark's supervisors to tell Hallmark 's employees that Respondent 's officials would be at the Holiday Inn in Valdosta , Georgia, for the purpose of interviewing applicants for employment on May 2, 1972. Respondent 's officials , as indicated , were at the Holiday Inn in Valdosta , Georgia , on May 2 , 1972, for the purpose of interviewing employees for employment in its upcoming operation . None of the Hallmark employees showed up for applications or interviews until after 5 p.m. Prior to that time , however, Ives , a Hallmark flight instructor , had talked over the telephone with President Paris . Walser, not an employee of Hallmark , apparently in answer to Respondent's advertisement in the Valdosta newspaper, was interviewed and hired by Respondent as a flight in- structor during the afternoon of May 2, 1972. On May 2 , 1972, Hallmark's Manager Fitzgerald told Ives that Respondent 's President Paris would be in town all day long for the purpose of accepting applications. Ives thereafter telephoned Paris . What occurred is revealed by the following credited excerpts from Ives' testimony. A. I had a telephone conversation with him about one p .m. on the same day for the purpose of arranging a meeting. Q. How did you know that Mr. Paris was at the Holiday Inn? A. Early on the same morning of the same day, Mr. Scott Fitzgerald , manager of the T-41 operation, told all the T-41 employees that Mr. Paris was in town for the purposes of accepting applications all day long. Q. Do you recall what was said during this phone conversation? A. I first asked him when would be a convenient time for an interview. And, his answer was that he was not going to make any package deals, that he would deal with each individual on an individual basis, and that he had a lot of applications to process and needed to get on with it. So, I again asked him when would be a convenient time, and he said he first had to go to Moody Air Force Base for a meeting with Colonel Katuh , and he would be back sometime after 3 p.m. Ives then conferred with local union officials, Heinz and May, and with bargaining committeemen , Snyder and Spader . It was decided that Ives would go to see President Paris at the Holiday Inn. During Paris' conversation with Ives on the telephone, Paris indicated to Ives that he couldn't wait much longer to interview the employees , that he was going to "chop it off" at 5 p .m., that he had a backlog of applications and that he had to do his hirings in time to commence operations on Friday. Ives saw Respondent's officials at the Holiday Inn around 5 p.m. What occurred is essentially revealed by the following credited excerpts from Ives' testimony: Q. And, what time did you meet Mr. Paris at the Holiday Inn? A. At 5 p.m. on the same date, May 2. Q. And , did you speak with anyone else connected with Central American , other than Mr. Paris? A. Not directly: Mr. Armstrong . We retired to an- other room . Room 367, where Mr. Bill Armstrong was. No direct conversation with him as such. He made a few remarks but nothing significant. 6 The facts are not in real dispute. CENTRAL AMERICAN AIRWAYS Q. When you finally talked with Mr. Paris, who else was in the room? A. Mr. Bill Armstrong. A. Well, after we sat down, I asked him, I told him that the union had wondered why we had no response from his company, and he stated that he hadn't been able to make any commitment until that time due to the fact that he did not have the Air Force contract in hand until the previous Saturday, I believe, 29 April 1972. And, he asked me what my qualifications were and I gave him a brief verbal resume of my flying experience and pilot certification. And, after that, he stated that he had already some local labor response, although not as much as he had anticipated; and if the local employees of the T-41 operation did not respond or cooperate, that he had a backlog of other available employees that he would call in and begin upgrading on Friday. After that, I made a statement to him or asked him how he felt about negotiating for wages or hours and working conditions, and he stated that he would not bargain in any manner of that type. However, he did volunteer that he was offering $725 a month to the instructor pilots with Air Force holiday pay. I asked him did he think that maybe the employees might be sitting home during bad weather without pay. He said he did not think they would have to do that. I asked him about the prospects of future pay raises, and he said well, there may be possibly in a future contract. Of course, he could not promise anything of that nature. At that, I informed him that the ufiion had a contract with Hallmark Aviation and asked him would he consider such being made an agreement. And, he said emphatically not, that he had built his business more or less on his own and he didn't need any outside help to help him run it. After that, I asked him would he consider a group job application. I told him I had the paper in my hands of the names of all 12 employees, and he reiterated again that he would not accept a group application, that he would consider only the individual application of each employable person. And, at this point, he seemed somewhat ruffled and said as far as he was concerned the purpose of this meeting was to discuss my employment and he would not discuss the subject any further. Whereupon, I re- ceived a job application from him and asked him when he would like it back, and he said that same night or early the next morning. As I went out the door, Mr. Armstrong was showing a T-41 Hallmark guard employee in, I assume for an interview. Thereafter and for the next several days, Hallmark em- 167 ployees went to the Holiday Inn, were interviewed by Respondent's officials, and filled out applications. Some of the employees took applications home overnight and re- turned the application to Respondent the next day. One of Hallmark's employees, apparently, a flight instructor, was not interviewed, was out of town, but was hired because of a strong recommendation apparently by one of the supervi- sors who was hired. One of Hallmark's employees, Black, a mechanic, was not interviewed or told that he was hired. Black reported to work on May 5, worked, and filled out an application for work a day or two after May 5, 1972. In short, Black was hired. Snyder was interviewed, took his application home and filled it out. Snyder testified to the effect that he returned the next day to the Holiday Inn, did not find Respondent's officials in the conference room where he had been interviewed, slipped his application un- der the door, realized that something was wrong, waited awhile, did not check at the Holiday Inn desk as to the whereabouts of Respondent's officials or as to retrieval of his application, and left. Snyder later went to the Valdosta airport and although in the presence of Respondent's offi- cials, did not tell them of his apphcation.7 The Respondent completed its determination of employ- ees to be hired either late on May 3 or on the morning of May 4, 1972. Before commencing work on May 5, 1972, Carpenter decided upon other plans and did not report to work at Respondent's Valdosta operation. An individual named Rogers was hired to fill the spot left vacant as a result of Carpenter's failure to take a job. The record does not reveal exactly when Rogers was hired or reported to work. The job of flight instructor required meeting certain U.S. Air Force requirements and tests. Rogers was found as a result of such testing to be unqualified and thus apparently was released from employment. The facts as to the supervisors and employees of Hall- mark prior to May 5, 1972, the employees and supervisors hired by Respondent as of May 4, 1972, and the employees and supervisors of Respondent that commenced work on May 5, 1972, may be set forth as follows:' On May 3, 1972, or on May 4, 1972, United States Air Force officers Scheuring and Vemo were at the Valdosta, Georgia airport and spoke to Respondent's supervisors Armstrong, Driver and Parker Slocumb. Lieutenant Colo- 7 Paris credibly testified to the effect that he did not receive an application from Snyder . I do not credit Snyder's testimony that he returned and left his application for employment As indicated later, Snyder was with Ives when Ives turned his application in Ives credibly testified to such effect. Snyder did not appear a truthful witness as to these points. 8 The facts are based upon stipulations , credited testimony of witnesses, and a fair inference therefrom Ives' credited testimony reveals that the total Hallmark employee complement is as indicated herein. The parties stipulated in effect that all but Ives, Spader Senior, and Snyder were hired. Further, Pans' testimony revealed that Respondent did not intend to hire all of the mechanics and only had three flight instructor openings. Black , a mechanic, however, was also hired as indicated. 168 DECISIONS OF NATIONAL LABOR RELATIONS BOARD Hallmark Central American Airways Central American Airways Pre. May 5, 1972 hired as of May 4, 1972 commenced work as of May 5, 1972 Supervisors General Manager Scott Fitzgerald Flight Instructor C. H. Driver C. H. Driver Supervisors Parker Slocumb Flight Instructor Parker Slocumb Scott Fitzgerald Parker Slocumb Scott Fitzgerald Von E. Ives Daniel L. Spader, Sr. Stanley W. Snyder Stephen K. Farner Earl E. Garlick Emory L. Naismith Donald 0. Davis Norman F. Conant, Jr. Walser Mansfield Carpenter Stephen K. Farner Earl E. Garlick Emory L. Naismith Donald 0. Davis Norman F. Conant, Jr. Walser Mansfield Rogers 9/ Stephen K. Farner Earl E. Garlick Emory L. Naismith Donald 0. Davis Norman F. Conant, . 10/ George L. Barnasky George L. Barnasky George L. Barnasky Mechanics John R. Bkack James W. Maine James W. Maine Daniel L. Spader, Jr. Daniel L. Spader, nel Scheuring and Captain Verno , having responsibilities concerning the T-41 contract, were interested in Respondent's hiring plans. 12 Armstrong told Scheuring of Respondent's hiring plans, told Scheuring that most of the Hallmark employees except- ing Ives , Spader Junior, and Snyder were being hired, told Scheuring that he disagreed with his bosses , told Scheuring that he felt that they should either bring in an entire new work force or bargain with the Air Force so that higher 9 It is not clear whether Rogers reported to work on May 5, 1972 10 Norman F Conant , Jr., at some date after May 5, 1972, was made a supervisor. John R Black was not hired before May 5, 1972. Black , however, report- ed to work , worked , and was hired within a day or two after May 5, 1972 As far as pay purposes , Black was paid for his work on May 5, 1972, and thereafter. it The facts are based upon a composit of the credited aspects of the testimony of Scheuring, Verno, Armstrong, and Driver and a fair inference therefrom . Vemo testified to the effect that Armstrong expressed dis- agreement with his bosses' plans, expressed that Respondent should have hired an entire new work force or bargained for higher wages , and expressed that "they had wanted us to break up the Union." Scheunng's and Driver's testimony was to the effect that they did not recall hearing such remarks by Armstrong Armstrong denied making such remarks. Verno had no interest in this proceeding and appeared to be a truthful witness I credit his testimo- ny and discredit inconsistent testimony of the other witnesses Driver and John R. Black 11/ James W. Maine Jr. Daniel L. Spader, Jr. wages coul1 be paid, and told Scheuring that "they" wanted us to break up the Union." The facts are clear that Respondent notified on May 2, 3, and 4, most, if not all, of the employees to be hired of Respondent's determined wages and working conditions. It is clear that these terms and conditions were different from the conditions in effect between Hallmark and the employ- ees of Hallmark. As of May 4, 1972, the Respondent had determined not to hire Ives and Daniel Spader, Sr., as flight instructors, did not consider Snyder as a flight instructor since it did not receive his application for employment, had decided to hire Walser as a flight instructor who had responded to its Val- dosta newspaper advertisement, had decided to hire or transfer Mansfield and Carpenter as flight instructors from one of its other operations, had decided to hire only two Scheuring may not recall or may not have heard the remarks . I am persuaded, however, that Verno's testimony is truthful , that the remarks were made as indicated. iJ It is not clear whether "they " referred to Respondent officials or to higher-ups in the United States Air Force. As indicated , I credit Verno as to Armstrong's remarks about breaking up the Union. I discredit Armstrong's denial of such remarks . Scheuring's testimony as to what occurred , although not recalling Armstrong's remarks as indicated, reveals facts of a logical consistency with such remarks CENTRAL AMERICAN AIRWAYS 169 mechanics, Maine and Daniel L. Spader, Jr., had not con- sidered Black since he had not made application. It devel- oped that * Carpenter could not transfer to Valdosta, Georgia, and on May 5, 1972, or thereafter Respondent hired Rogers as a flight instructor. It developed that Rogers was not qualified for such job, and he was later terminated. Black, as indicated, showed up for work, worked, and in effect was hired. The General Counsel alleged in his complaint (para. 11) that "on or about April 25, 1972, Respondent was awarded a service contract for the performance of all flight instruc- tion services at the airport for the United States Air Force, for the period May 5, 1972, through May 4, 1973, such services being essentially the same as those which had been previously performed by Hallmark." The facts overwhelmingly support a finding that such allegation is supported. It is so concluded and found. As to precise details, the details are revealed by the following excerpts from the record of stipulation thereto: JUDGE STONE. How about Paragraph l l? MR COHEN It is my understanding with the follow- ing reservation or additional stipulation counsel for the respondent will stipulate as to the facts contained in Paragraph 11 with the following reservation: that Hallmark's contract ended as of May 4th, 1972 and that Central American did not assume the contract of Hallmark in any way. Additionally, that the only duties called for under the Air Force contract with Hallmark and Central American was to provide flight instruction for Air Force personnel, that the equipment and facili- ties used by both Hallmark and Central American were not facilities and equipment of the contractors. JUDGE STONE: Let me see if I am keeping up with you. Hallmark contract ended on May 4. Respondent did not assume the Hallmark contract. The only duties of both contracts were to provide flight instruction ser- vice, and what was the last part? MR. COHEN: And that the equipment and facilities used in the flight instructions by both Hallmark and Central American were not the equipment of the con- tractors. JUDGE STONE Were not the equipment of the contrac- tors. MR COHEN. Correct. The flight equipment was that of the Air Force, and it is my understanding that the physical facilities are owned by the city of Valdosta Air Port on a lease. JUDGE STONE: Is that a stipulation? MR. BAUMANN: Adding to that, that the repair parts and so forth required were supplied by the respondent. He did not assume any or take over any of the equip- ment of the previous contractor. JUDGE STONE. All right, is that correct? MR COHEN• Just with the understanding that take over the equipment that it did not use, purchase, lease or use the equipment that was Hallmark's equipment. They may have used the same equipment but it was not Hallmark's equipment. It was either the Air Force's or leased from the city of Valdosta. MR BAUMANN We will stipulate that the planes were the same, yes. JUDGE STONE The repair parts required by the con- tract were the respondents and were not acquired or purchased from Hallmark. MR COHEN Correct. JUDGE STONE And the only equipment used was the equipment of the Air Force and the facilities of the city of Valdosta. MR. BAUMANN. Right. JUDGE STONE Is that a stipulation by all the parties? MR COHEN That is correct, Your Honor. Considering all of the foregoing, it is clear that on May 3 or 4, 1972, Respondent had hired substantially the same employees as had worked for Hallmark, and that Respon- dent commenced operations on May 5, 1972, with substan- tially the same employees doing the same work at the same location as had Hallmark's employees. It is clear that Respondent's obligation to bargain with the Union matured on or about May 3 or 4, 1972, and was in effect on May 5, 1972. Respondent contends that it had a good-faith doubt as to the Union's representation rights. This contention is reject- ed. The Union was certified as bargaining representative of such employees on May 19, All of such employees had supported the Union during the October 1971 strike. None of the Hallmark employees responded to Respondent's ad- vertisement in the Valdosta, Georgia, newspapers. None of the employees showed up for interviews until Ives had seen Respondent's officials on May 2, 1972, about a group appli- cation. It is clear that Respondent knew the employees had been represented by a union. It is also clear that Respon- dent, by its interviews, knew who were Hallmark's employ- ees. Respondent contends that its doubt could be presented under such circumstances. Considering the objective facts set out above, I would not credit Paris' testimony that he had a good-faith doubt. The status of the Union, the con- duct of the employees in support of the strike,14 and the failure of employees to seek interviews until the group appli- cation idea had been rejected, overwhelmingly establish that there was not a basis for a good-faith doubt of the Union's collective-bargaining status after the employee complement was hired. The question presented is whether Respondent has re- fused to bargain collectively with the Union in violation of Section 8(a)(5) and (1) of the Act. The facts reveal that the Union on March 17, 1972, and April 26, 1972, requested Respondent to engage in collective bargaining. Ives, on May 2, 1972, inquired as to whether Respondent would negotiate, and asked for a group appli- cation for employment. This case presents ramifications of the issues presented in the opinion of the Supreme Court of the United States in William J. Burns International Security Services, 406 U.S. 272 (1972). In Burns, the Supreme Court indicated in dictum the 14 The facts also reveal that all employees had executed dues checkoff cards which were still in effect until May 5, 1972 170 DECISIONS OF NATIONAL LABOR RELATIONS BOARD following: Although Burns had an obligation to bargain with the union concerning wages and other conditions of em- ployment when the union requested it to do so, this case is not like a § 8(a)(5) violation where an employer unilaterally changes a condition of employment with- out consulting a bargaining representative . It is diffi- cult to understand how Burns could be said to have changed unilaterally any pre-existing term or condition of employment without bargaining when it had no pre- vious relationship whatsoever to the bargaining unit and prior to July 1, no outstanding terms and condi- tions of employment from which a change could be inferred . The terms on which Burns hired employees for service after July 1 may have differed from the terms extended by Wackenhut and required by the collective-bargaining contract, but it does not follow that Burns changed its terms and conditions of employ- ment when it specified the initial basis on which em- ployees were hired on July 1. The Supreme Court, in Burns, rejected the theory that there is a unilateral change in wages , etc., when a replace- ment employer initiates different wage scales and set forth that there would not be a unilateral change in wages etc. unless the replacement employer set wage scales and then changed such without bargaining when said employer has an obligation to bargain . Instead , the dictum set out above indicates that where it is initially clear that the replacement employer has an obligation to bargain because he plans to employ all of the employees of the former employer, it is appropriate to have the replacement employer initially con- sult with the Union before fixing the terms and conditions of employment. The Board made this dictum Board law in Howard Johnson Company, 198 NLRB No. 98. In the instant case the facts reveal that Respondent did not hire all of Hallmark's employees. The General Counsel contends in effect that Respondent planned to hire all of the employees excepting three, that these three were excepted from hiring because of discriminatory reasons , and that Respondent intended to destroy the Union. The General Counsel contends in effect that Respondent was obligated to bargain with the Union before fixing the initial terms and conditions of employment. Considering all of the facts, I am not persuaded that Respondent's plans concerning the hiring of employees was so fixed that it may be said that it was clear that Respondent's complement would be one represented by a Union. The facts reveal that Respondent had fixed its initial terms and conditions of employment prior to May 2, 1972, intended to hire a complement of employees who would accept employment on such basis, that Respondent intend- ed to give preference in employment opportunities to most of Hallmark's employees, that Respondent had, however, made arrangements to insure that it could man the Valdosta operation with or without the former Hallmark employees. It is clear that Respondent was not sure that the Hallmark employees would accept employment on its terms. I have carefully considered the fact that Armstrong made a statement on or about May 3 or 4, 1972, to the effect that "they" wanted us to break up the Union. Considering all of the facts, I am not persuaded that this statement reveals that the initial wage scale was decided upon for such reason. In my opinion, Respondent's initial wage scale and its backlog of other applications require a finding that Respondent was unsure of what its ultimate employee complement would be. Applying the principles of Burns and Howard Johnson Company, I am persuaded that Respondent's obligation to bargain had not matured on May 2, 1972, and that Respon- dent was free at that time to set its initial terms and condi- tions of employment. Accordingly, I conclude and find that Respondent's setting of its initial terms and conditions of employment on or before May 2, 1972, did not constitute conduct violative of Section 8(a)(5) and (1) of the Act. The General Counsel contends that Respondent, on or about May 5, 1972, unilaterally and without notice to or consultation with the Union, changed existing wages and hours of work of employment in the appropriate bargaining unit. The facts reveal that Respondent set its initial wages and working conditions for its employees at a time, on or before May 2, 1972, when it was not obligated to bargain with the Union. There is no evidence that it made changes in the wages and working conditions for its employees between May 2 and 5, 1972. Accordingly, it is concluded and found that Respondent has not violated Section 8(a)(5) and (1) of the Act, as alleged. Burns reveals that there is no obligation for the replace- ment employer to notify and consult unless the facts reveal circumstances that indicate the obligation is clear at the time that hiring commences. If there is a hiatus of a clear fixed obligation to bargain, the obligation to notify and con- sult does not appear even if the obligation to bargain ma- tures. This is true even where there is no hiatus in actual employment. Thus, in Burns, the Supreme Court indicates that when the obligation to bargain matures, the union has to make a demand for bargaining or the replacement em- ployer is free to proceed with his determined initial wages and other conditions of employment. The same reasoning indicates that a premature bargaining demand by the Union would lack vitality and must be renewed after the bargain- ing obligation has matured. In sum, the facts are insufficient to reveal that Res on- dent has violated Section 8(a)(5) and (1) of the Act.t C. The Discrimination Issues The General Counsel alleges and contends that Respon- dent discriminatorily refused to hire Von E. Ives, Daniel L. Spader, Sr., and Stanley W. Snyder, in violation of Section 8(a)(3) and (1) of the Act. The Respondent denies that it discriminatorily refused to hire Spader and Ives, and con- tends in effect that it did not consider Snyder for employ- ment since it did not receive his application for employment. The facts relevant to the discriminatory issues as to Ives, Spader, and Snyder may be summarized as follows. Ives, Spader, and Snyder worked for Hallmark during 15 At a later date, Respondent changed the wage scale for employee Black. I do not find under the facts of this case that such was presented in support of the complaint issues. CENTRAL AMERICAN AIRWAYS Hallmark's time of performing the T-41 contract services for the United States Air Force at the Valdosta, Georgia, airport. Ives, Spader, and Snyder were among the highest skilled and highest paid flight instructors for Hallmark and were the union leaders at Hallmark, being the only employ- ees at Hallmark holding elected union positions. Ives was the elected union steward, and Snyder and Spader were elected as bargaining committeemen. Respondent, as of May 3 or 4, hired all of Hallmark's flight instructors excepting Ives, Spader, and Snyder, and hired two of Hallmark's mechanics. The overall facts reveal that Respondent as of May 2, 1972, intended to hire such Hallmark employees as it could, upon their application and its consideration, excepting that Respondent did not intend to hire Ives, Spader, and Snyder. Ives, Spader, and Snyder were interviewed by Respon- dent and made aware of Respondent's wages and working conditions. Ives and Spader submitted applications for em- ployment with Respondent. Snyder testified to the effect that he attempted to leave an application for employment with Respondent at the con- ference room at the Holiday Inn. I do not believe or credit his testimony. Snyder's testimony was to the effect that on May 3, 1972, he did not find Respondent's officials at the Holiday Inn at the conference room where he had been interviewed, that he slid his application under the door, that he waited a period of time, that he realized in effect that something might be wrong in leaving the application in such a manner, that he did not see anyone at the Holiday Inn or elsewhere to ascertain where Respondent's officials were or to retrieve his application, that he saw no Respondent's officials that day, that he only saw President Paris on the next day, and that he did not mention his application to Respondent's officials. Ives' credited testimony reveals, however, that on May 3, 1972, he (Ives) gave his application to Respondent's officials at the Valdosta airport and that this was done in the presence of Snyder and Spader. Presi- dent Paris credibly testified that he did not receive Snyder's application. Respondent had clear knowledge of Ives' connection with the Union by virtue of receipt of the Union' s letters in March and April 1972. Thus, such letters noted that Ives was the local union steward. Further, Ives' conversation with President Paris on May 2, 1972, clearly revealed his continued support of the principles of collective bargaining. Respondent does not deny that it had knowledge of Ives' union connection. Respondent denies that it knew of Daniel Spader, Sr.'s union position or activities. I do not credit Paris' testimony to such effect. Paris did not impress me as being a truthful witness when he testified to such point. Further, the facts reveal that Lieutenant Colonel Scheuring argued to Respondent's officials that Spader should have been hired, that if they were trying to break up the Union that they were doing it the wrong way. In this context, Armstrong com- plained that he disagreed with his bosses, that he felt they should have hired an entire new force, or bargain for higher wages with the Air Force, and that they wanted them to break up the Union. I am persuaded that this reveals that Armstrong was explaining why Respondent had not hired Spader and Ives and that the reason was that Respondent 171 wanted to break up the Union.I" Respondent's President Pans testified to the effect that he decided not to hire Ives because of his attitude in the May 2, 1972, interview, that he decided not to hire Spader be- cause he believed Spader would be unhappy with the salary offered and that Spader was more qualified for a larger airplane and would be dissatisfied using the smaller planes. Paris also testified that he was not discriminatorily motivat- ed in his refusal to hire Ives and Spader. I do not credit his testimony to such effect. I did not find such testimony to be presented with a truthful ring. Ives' conversation with Paris in the May 2, 1972, interview in essence consisted of state- ments to indicate a desire to have collective bargaining rights and constitutes protected concerted activity. Spader submitted an application for employment on Respondent's terms. Respondent, it is noted, hired other flight instructors who, similar to Spader, would receive less pay from Respondent than they had at Hallmark. Considering all of the foregoing, I am persuaded that the preponderance of the evidence reveals that Respondent dis- criminatorily refused to hire Ives and Spader for employ- ment on May 2, 1972. Considering all of the above facts, I conclude and find that the facts do not establish that Snyder made an applica- tion for employment. It follows that the evidence is insuffi- cient to reveal that Respondent has discriminatorily refused to hire Snyder in violation of Section 8(a)(3) and (1) of the Act. It is so concluded and found. IV THE EFFECT OF THE UNFAIR LABOR PRACTICES UPON COMMERCE The activities of the Respondent set forth in section III, above, occurring in connection with the Respondent's oper- ations described in section I, above, have a close, intimate, and substantial relationship to trade, traffic, and commerce among the several States and tend to lead to labor disputes burdening and obstructing commerce and the free flow of commerce. V THE REMEDY Having found that the Respondent has engaged in unfair labor practices, it will be recommended that Respondent cease and desist therefrom and take certain affirmative ac- tion to effectuate the policies of the Act. It having been found that the Respondent iefused to hire Von E. Ives and Daniel L. Spader, Sr., in violation of Sec- tion 8(a)(3) and (1) of the Act, the recommended Order will provide that Respondent offer them employment as flight instructors, and make them whole for loss of eanrings within the meaning and in accord with the Board's decisions in F. W. Woolworth Company, 90 NLRB 289; Isis Plumbing & Heating Co., 138 NLRB 716, except as specifically modified by the wording of such recommended Order. Because of the character of the unfair labor practices 16 Respondent's questions at the hearing indicate an argument that the Air Force might be the "they" wanting to break up the Union. It is just as illegal for Respondent to act discriminatorily because of the Air Force's desires as it is for Respondent to act discriminatorily on its own 172 DECISIONS OF NATIONAL LABOR RELATIONS BOARD herein found, the recommended Order will provide that the Respondent cease and desist from in any other manner interfering with , restraining , and coercing employees in the exercise of their rights guaranteed by Section 7 of the Act. Upon the basis of the above findings of fact and upon the entire record in the case , I make the following: CONCLUSIONS OF LAW 1. The Respondent , Central American Airways, is an em- ployer engaged in commerce within the meaning of Section 2(6) and (7) of the Act. 2. International Brotherhood of Firemen and Oilers, Lo- cal 281 , AFL-CIO, is, and has been at all times material herein , a labor organization within the meaning of Section 2(5) of the Act. 3. By refusing to hire Von E. Ives and Daniel L. Spader, Sr., Respondent has discouraged membership in a labor organization by discriminating in regard to tenure of em- ployment, thereby engaging in unfair labor practices in vio- lation of Section 8(a)(3) and (1) of the Act. 4. By the foregoing Respondent has interfered with, re- strained , and coerced its employees in the exercise of rights guaranteed in Section 7 of the Act and has engaged in unfair labor practices proscribed by Section 8(a)(1) of the Act. 5. The aforesaid unfair labor practices affect commerce within the meaning of Section 2(6) and (7) of the Act. [Recommended Order omitted from publication.] Copy with citationCopy as parenthetical citation