Central Hardware Co.Download PDFNational Labor Relations Board - Board DecisionsMar 4, 1970181 N.L.R.B. 491 (N.L.R.B. 1970) Copy Citation CENTRAL HARDWARE CO. 491 Central Hardware Company and Retail Clerks Union Local No. 725, Retail Clerks International Association , AFL-CIO. Cases 25-CA-3214 and 25-CA-3261 March 4, 1973 DECISION AND ORDER BY CHAIRMAN MCCULLOCH AND MEMBERS FANNING AND BROWN On June 23, 1969, Trial Examiner Alvin Lieberman issued his Decision in the above-entitled proceeding, finding that Respondent had engaged in and was engaging in certain unfair labor practices and recommending that it cease and desist therefrom and take certain affirmative action, as set forth in the attached Trial Examiner's Decision. He further found that Respondent had not engaged in certain other unfair labor practices alleged in the complaint and recommended that such allegations be dismissed. Thereafter, the Respondent filed exceptions to the Trial Examiner's Decision and a supporting brief, and the General Counsel filed limited exceptions with a brief in support of the Trial Examiner'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 powers in connection with this case to a three-member panel. The Board has reviewed the rulings of the Trial Examiner made at the hearing and finds that no prejudicial error was committed. The rulings are hereby affirmed. The Board has considered the Trial Examiner's Decision, the exceptions and briefs, and the entire record in this case,' and hereby adopts the findings, conclusions, and recommendations of the Trial Examiner with the following modifications: 1. The Trial Examiner found, and we agree, that Respondent violated Section 8(a)(1) of the Act by maintaining an unlawfully broad employee "no-solicitation" rule. The Trial Examiner also found, however, that Respondent did not violate Section 8(a)(1) of the Act by disparate and discriminatory enforcement of this rule. General Counsel excepted to this finding. For the reasons set forth below, we find merit in General Counsel's exception. On June 13, 1968, the Respondent's Vice-President, George Reed, delivered a speech to the employees and announced a long-standing policy regarding solicitations on company premises. The policy as stated was that "no solicitation may be made on company premises for any purpose without prior management approval." The Trial Examiner found, as stated above, that this rule was invalid and in violation of Section 8(a)(l) of the Act. Sometime in June, an antiunion petition was circulated among the employees at the Respondent's East store. Raymond Spears, while on working time in the selling area of the store, was asked to sign the petition. Ted Kaptain, a supervisor for Respondent, was present at the time of the signing and praised the objectives of the petition. No disciplinary action was taken against the circulators or signatories of the petition. Later, in July, George Reed while unlawfully interrogating employee Ragle showed her the document and stated that it had been circulated and signed by employees at the East store. In contrast with its leniency with regard to employees engaging in antiunion activity on working time, Respondent strictly enforced its no-solicitation rule against Ragle for union solicitation on July 8 by laying her off for 3 days. We find, therefore, that Respondent by its disparate and discriminatory enforcement of the invalid no-solicitation rule further violated Section 8(a)(1) of the Act. 2. For the reasons hereinafter set forth, we find, contrary to the Trial Examiner, that Respondent violated Section 8(a)(1) of the Act, by its conduct in ejecting Union Representative Mark Kapetanakis from its store and having him arrested. The Trial Examiner found, and the record reveals, that union Representative Kapetanakis, on July 22, 1968, attempted to enter the Respondent's West store, and was told by store manager, Max Hagerman, not to enter the store and to leave the parking lot. Kapetanakis replied that he was going into the store as a customer to look at sporting goods and would not talk to employees about the Union. At the hearing, he testified that he also intended to look "to see who the employees [were] facialwise, who, [was] working and who [he could] home call." Hagerman testified that he informed Kapetanakis "that if he went in the store [he] had orders to call the police." Kapetanakis entered the store and went to the sporting goods department. Shortly, thereafter, an Indianapolis policeman who had been sent for by Hagerman, asked Kapetanakis to leave the store, and in full view of several employees, escorted him out and placed him in a police vehicle. This action was taken by Respondent in furtherance of a rule it had adopted to "keep all union organizers off [its] premises, both inside and outside." The Trial Examiner correctly found this rule to be an unduly broad, and hence invalid, nonemployee no-solicitation rule violative of Section 8(a)(1) of the Act.' But he held nonetheless that Respondent did not act unlawfully in ejecting Kapetanakis from the store and in having him arrested in the circumstances above set out. We do not agree. in finding this rule to be unduly broad , the Trial Examiner took into consideration circumstances disclosing that there were no reasonable means As the record herein, including the exceptions and briefs , adequately available to the nonemployee representatives of the Union to reach presents the positions of the parties , Respondent's request for oral Respondent's employees with its organizing message except at the argument is hereby denied Respondent 's premises , that the complex in which Respondent 's stores 181 NLRB No. 74 492 DECISIONS OF NATIONAL LABOR RELATIONS BOARD We are not faced here with the question of whether Respondent could lawfully have prohibited Kapetanakis from engaging in union solicitation on its selling floor.3 The undisputed evidence establishes that Kapetanakis had advised Respondent he was entering the store as a customer, and on doing so committed no overt act inconsistent with his announced intent or otherwise disruptive of Respondent's business. In the context of Respondent's other, and clearly unlawful action restrictive of employee organizational rights, we find that Respondent's summoning of the police to have Kapetanakis expelled and arrested in the full view of its employees was not justified by any legitimate business considerations, but was motivated by the same antiunion considerations that prompted Respondent's unlawful prohibitions of employee solicitation in the store, its prohibition of nonemployee solicitation on its parking lots, its discriminatory enforcement of its no-distribution and no-solicitation employee rules, and its other unlawful conduct directed against employee self-organizational rights.4 We therefore conclude that by expelling and having union representative Kapetanakis arrested, in the present circumstances, Respondent further interfered with, restrained, and coerced its employees in the exercise of their rights guaranteed by Section 7 of the Act, and thereby violated Section 8(a)(1) of the Acts 3. We reach a different conclusion, however, as to Union representative Stahl, whom Respondent also excluded from the store and threatened with arrest. Respondent had a uniformly enforced policy against allowing discharged employees on its premises, and Stahl had been discharged by Respondent for just cause in the latter part of May. In excluding Stahl were located contains other business enterprises , that there are no fences, or gates around Respondent 's parking lots, that Respondent does not station guards there for the purpose of refusing access to anyone ; and that there are no signs barring trespassers from its lots We agree that these circumstances distinguish this case from N L R B v Babcock and Wilcox C o, 351 U S 105. See Solo Cup Co. 172 NLRB No 110, and Amalgamated Food Employees Union Local 590 v Logan Valley Plaza, Inc, 391 U.S 308 In addition , we note also that Respondent precluded any union solicitation by employees on its premises, while permitting antiunion solicitation , thereby further restricting employee opportunities to be informed about organization 'See the following cases involving retail store operations in which we have held that employers may lawfully prohibit nonemployee union organizers from soliciting and from distributing union material in certain areas of the retail store premises and enforce violations of that prohibition by expulsion and by maintenance of surveillance over the nonemployee union organizers who enter the store for purposes of soliciting employees G C Murphy Company, 171 NLRB No. 45, Heck's, Inc, 170 NLRB No 53, Super X Drugs of West Virginia, Inc. 169 NLRB No 42, Cf Marshall Field & Co, 98 NLRB 88 'No contrary inference as to Respondent 's motivation flows from Kapetanakis' admission at the hearing that his subjective but undisclosed reason for entering the store was to acquaint himself with the identity of the employees "facialwise " 'Cf Priced-Less Discount Foods, Inc, 162 NLRB 872, Heck's Inc, 156 NLRB 760, 761 from the store Respondent was enforcing its valid rule forbidding discharged employees on its premises. Accordingly, in these circumstances, we do not believe a finding is justified that Respondent violated Section 8(a)(1) of the Act by excluding Stahl. 4. The Trial Examiner also found that the Respondent did not violate Section 8(a)(1) of the Act by its interrogation of employee Ragle. We disagree. The Trial Examiner found that in October, Respondent's supervisor, Cavellier, approached Ragle, who was wearing a union button, and asked her if she would "like to have the Union in here." The conversation continued along this line for several minutes. Respondent up to this time had engaged in numerous unfair labor practices, including interrogation, threats of loss of benefits and discriminatory disciplinary action against this same employee. In the context of Respondent's other substantial violations of the Act, we find that this interrogation was coercive and in violation of Section 8(a)(1) of the Act. ORDER Pursuant to Section 10(c) of the National Labor Relations Act, as amended, the National Labor Relations Board adopts as its Order the Recommended Order of the Trial Examiner, as modified herein, and orders that the Respondent, Central Hardware Company, Indianapolis, Indiana, its officers, agents, successors, and assigns, shall take the action set forth in the Trial Examiner's Recommended Order, as amended below. 1. Add the following as paragraphs 1(e) and 1(f) to the Trial Examiner's Recommended Order, relettering the subsequent paragraph: "(e) Enforcing in a discriminatory manner any rule pertaining to union activities on company time. "(f) Coercively interrogating employees concerning their or other employees' union membership, activities, and desires." 2. Substitute the attached notice for the notice attached to the Trial Examiner's Decision.8 IT IS FURTHER ORDERED that the complaint herein be, and it hereby is, dismissed insofar as it alleges violations of the Act not found herein. '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 " 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 both sides had an opportunity to present their evidence, it has been adjudged that we violated the law by committing unfair labor practices. CENTRAL HARDWARE CO. Accordingly, we post this notice and we will keep the promises that we make in this notice. WE WILL NOT make, or enforce, any rule prohibiting any employee from soliciting any other employee to become a member of, or to support, Retail Clerks Union Local 725, or any other union, in nonselling or nonworking parts of our stores during nonworking time. As such a rule was announced in speeches given by George Reed, our vice president, on June 13, 1968, WE WILL cancel it WE WILL NOT question any employee as to whether such a rule has been obeyed and WE WILL NOT fire, lay off, suspend, or in any other way punish any employee for not obeying such a rule. WE WILL NOT make, or enforce any rule prohibiting organizers or representatives of Retail Clerks Union Local 725, or any other union , from coming on our parking lots to solicit, or to arrange to solicit, any employee to become a member of, or to support, Retail Clerks Union Local 725, or any other union . As such a rule was announced in letters to employees, dated July 15, 1968, signed by Stanley M. Cohen, our president, WE WILL cancel it. WE WILL NOT reduce your salary, or wages, or any other benefit you now have, or do anything else which will be to your disadvantage, and WE WILL NOT threaten to do any of these things for the purpose of encouraging you not to support, or not to become members of, Retail Clerks Union Local 725, or any other union. WE WILL NOT raise your salary or wages, or give you any benefits you do not now enjoy, and WE WILL NOT promise to do any of these things for the purpose of encouraging you not to support, or not to become members of, Retail Clerks Union Local 725, or any other union WE WILL NOT fire, layoff, suspend, fail or refuse to reinstate, or discriminate against, any employee for engaging in union activity or for joining any union. As it has been decided that we discriminated against Marilyn Ragle in this manner when we suspended her because she engaged in activity in support of Retail Clerks Union Local 725, WE WILL pay her for any loss of wages she suffered because we suspended her. WE WILL NOT coercively ask employees questions about their and other employees' union membership, activities, and desires. WE WILL NOT enforce in a discriminatory manner any rule pertaining to union activities on company time. WE WILL NOT in any manner interfere with, restrain, or coerce you in the exercise of any rights guaranteed to you by the National Labor Relations Act. In this connection WE WILL respect your rights to self-organization, to form, join, or assist any union, to bargain collectively through any union or representative of your choice as to wages, hours of work, and any other term or condition of employment. You also have the right, which WE WILL also respect, to refrain from doing so. All our employees are free to become or remain, or not to become or remain, members of Retail Clerks Union Local 725, or any other union. CENTRAL HARDWARE COMPANY (Employer) Dated By 493 (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 compliance with its provisions, may be directed to the Board's Office, 614 ISTA Center, 150 West Market Street, Indianapolis, Indiana 46204, Telephone 317-633-8921. TRIAL EXAMINER'S DECISION STATEMENT OF THE CASE ALVIN LIEBERMAN, Trial Examiner: The trial in this proceeding, with all parties represented, was held before me in Indianapolis, Indiana, on January 29, 30, and 31, and February 5, and 6, 1969, upon the General Counsel's complaint' and amendment to complaint,, dated respectively November 27, 1968, and January 11, 1969,' and respondent's answer. In general, the issues litigated were whether respondent violated Section 8(a)(1) and (3) of the National Labor Relations Act, as amended (herein called the Act). Particularly, the questions for decision are as follows: 1. Did respondent violate Section 8(a)(I) of the Act by coercively interrogating employees? 2. Did respondent violate Section 8(a)(1) of the Act by threatening, and promising benefits to, employees to induce them to refrain from supporting, or becoming members of, Retail Clerks Union Local 725, Retail Clerks International Association, AFL-CIO (herein called the Union)9 3. Did respondent violate Section 8(a)(I) of the Act by its "no-solicitation" rules and by the manner in which they were applied? 4. Did respondent violate Section 8(a)(1) of the Act by causing the arrest, and threatening to cause the arrest, of representatives of the Union?' 5. Did respondent violate Section 8(a)(3) and (1) of the Act by laying off an employee? Upon the entire record,' upon my observation of the witnesses and their demeanor while testifying, and upon careful consideration of the arguments made and the able briefs submitted by the parties, I make the following: The complaint was issued on separate charges filed on August 21 and October 18, 1968, by Retail Clerks Union Local 725, Retail Clerks International Association , AFL-CIO 'During the trial the complaint and its formal amendment were amended by substituting the name " Rene Cuvellier" for "Rene Caverlier" whenever it appears in those pleadings 'Unless otherwise noted , all subsequent references to the complaint include its amendment and all dates hereinafter mentioned without setting forth a year fall within 1968 On respondent' s motion made at the conclusion of the General Counsel's case-in-chief paragraph 5(d)(m) and (iv) which also alleged independent violations of Section 8(axl) were dismissed , no evidence having been offered by the General Counsel to support the former and the latter being redundant 'Issued simultaneously is a separate order correcting the stenographic transcript of this proceeding in several respects 494 DECISIONS OF NATIONAL LABOR RELATIONS BOARD FINDINGS OF FACT" I JURISDICTION Respondent , a Missouri corporation whose principal office is located in St . Louis, Missouri , operates several retail hardware stores, two of which are located in Indianapolis , Indiana.' During the year ending on November 27, a representative period , respondent ' s gross volume of business exceeded $500,000. In the same period respondent purchased and received merchandise valued at more than $50,000 from suppliers located in States other than those in which it operated stores. Accordingly, I find that respondent is engaged in commerce within the meaning of the Act and that the assertion of jurisdiction over this matter by the National Labor Relations Board (herein called the Board ) is warranted Carolina Supplies and Cement Co., 122 NLRB 88, 89; Catalina Island Sightseeing Lines, 124 NLRB 813, 815. 11. THE LABOR ORGANIZATION INVOLVED The Union is a labor organization within the meaning of the Act. III. THE ALLEGED UNFAIR LABOR PRACTICES A Introduction Briefly, this case concerns itself with events which occurred during the Union's campaign to organize the employees working in respondent's two Indianapolis stores Among these, were a speech delivered to respondent's employees by its vice president, respondent's promulgation of two "no-solicitation" rules, its interrogation of employees, the arrest in one of respondent's stores of a union representative and threats to have another arrested, and the layoff of an employee. The complaint alleges, and the General Counsel contends," that respondent violated Section 8(a)(1) of the Act by threats and promises made by respondent's vice president during the course of his speech, by its two "no-solicitation" rules' and the disparate manner of their application, by its interrogation of employees concerning compliance with one of the rules and respecting matters relating to the Union, by causing the arrest of a union representative, and by threatening to have another arrested. It is further alleged in the complaint, and contended by the General Counsel, that by suspending an employee td punish her for having violated one of the "no-solicitation" rules claimed to be invalid, respondent contravened Section 8(a)(3).'° 'Respondent 's motion to dismiss the complaint , made at the close of the trial , upon which decision was reserved and all other motions upon which decision was reserved are disposed of in accordance with the findings and conclusions set forth in this Decision 'This case deals only with respondent 's Indianapolis stores As the contentions of the General Counsel and the Union are in large part similar, unless otherwise indicated they will be referred to hereinafter as the General Counsel 's contentions 'As will be more fully set forth below , one of these rules excluded nonemployee representatives of the Union from respondent ' s parking lots The other applied to employees and was not limited to respondent's parking lots "In pertinent part these sections provide* Sec 8 (a) It shall be an unfair labor practice for an employer - (I) to interfere with, restrain, or coerce employees in the exercise of For its part respondent denies that the speech given by its vice president contained threats or promises of benefit. Asserting that its "no-solicitation" rules were valid, or if seemingly too broad not improperly enforced, respondent argues that the Act was not violated by its promulgation or enforcement of the rules, by its laying off an employee for not having complied with one of the rules, or by the interrogation through which it learned of the rule's transgression. Insofar as the arrest and threatened arrest are concerned respondent contends that it was not obliged to permit union representatives to enter its stores; that it did not want the union representatives in its stores; that when they refused to leave upon request it threatened to, and did, call the police to eject them; that one union representative nevertheless remained in its store, and that when a policeman arrived, he, on his own volition, without being requested to do so by respondent, arrested the union representative. B. Facts and Conclusions Concerning Respondent's Premises, its Employees and their Availabilitv for Organizing Purposes, and the Union's Organizing Campaign" 1. Respondent's stores and parking lots Respondent operates two stores on offstreet enclaves in outlying areas of Indianapolis One of its stores (herein called the West Store) is located near the intersection of West 38th Street and Lafayette Road. The other store (herein called the East Store) is situated near the intersection of East 38th Street and Shadeland Avenue. The roads, which intersect near respondent's stores are busy public highways" along which traffic moves at fairly high rates of speed." There are no sidewalks alongside the roads in question in the vicinity of respondent's stores. Although employees are stationed in the sales areas of respondent's stores, their main function is to advise customers as to the nature and purpose of the merchandise displayed for sale. Insofar as actual sales are the rights guaranteed in section 7, (3) by discrimination in regard to hire or tenure of employment to encourage or discourage membership in any labor organization Section 7 , insofar as relevant , provides as follows Sec 7 Employees shall have the right to self-organization , to form, join, or assist labor organizations , to bargain collectively through representatives of their own choosing, and to engage in other concerted activities for the purpose of collective bargaining or other mutual aid or protection "These findings and conclusions are being made here , at the outset of this Decision, in order to furnish a frame of reference, within which to consider respondent ' s "no-solicitation " rules To bring the rules, themselves, into focus , in this connection , their provisions will be set forth in this footnote even though it will be necessary to restate them later when their validity will be discussed at length, at which time I will also take up the parties' major arguments in this respect However, to the extent that the contentions of the parties relate specifically to the findings and conclusions here made they will be considered here, although they may again be considered in another context The two rules in question follow t "[N]o solicitation may be made on company premises for any purposes without prior management approval Violations will result in disciplinary action including the possibility of dismissal." 2. "[M]anagement [will] keep all union organizers off [company) premises both inside and outside " "Recent surveys made by Indiana state and county agencies show that on weekdays between 8 am and 10 p in more than 29,000 vehicles pass each of the street intersections near which respondent 's stores are located "Posted speed limits of from 35 to 40 miles an hour are typical of the streets in question CENTRAL HARDWARE CO. 495 concerned, customers, in the main, serve themselves. Shopping carts and baskets are provided in which goods selected by customers may be carried to checkout lanes, located near the store's front doors, which are manned by employees It appears, therefore, that the hardware stores are operated very much like the familiar self-service grocery markets In each of respondent's stores there are storage areas, which customers do not enter. There are also lockerrooms and lunchrooms set aside for use by employees during their free time. Although customers do not, like employees, eat in the West Store employee lunchroom they do, from time to time, enter it for the purpose of buying cigarettes and candy bars which are there offered for sale 1d In addition to using the employee lunchrooms and lockerrooms during their off-duty time employees may, and do, eat their lunch on respondent's parking lots, to be described below Respondent leases its Indianapolis stores. Also under lease to respondent at the site of each store are paved offstreet areas used as parking lots. The major portion of each lot is'directly in front of the store to which it is adjacent, the remainder lying to one side of the store. Each lot is large enough to accommodate about 350 cars Employees who drive to work are required to park in certain areas of these lots, generally those sections along the side of the store in which they work. The enclaves in which respondent's stores are located also contain other business enterprises. Among these, at the site of the West Store, are a restaurant, a loan company, and a carpet store, each with its own parking lot, much smaller in size than respondent's. At the East Store site are an office building, an establishment at which automobiles are washed, and a truck service station which has its own parking space." There are no fences- or gates around respondent's parking lots, nor does respondent station guards there for the purpose of refusing their use to anyone. There are, likewise, no signs barring trespassers from the lots. The areas which contain respondent's stores and the other business enterprises described may be entered" from their adjoining roads only at certain places. There is one entrance to the West site from West 38th Street and two from Lafayette Road. The East location may be entered from Shadeland Avenue at several points, three of which are directly in front of respondent's parking lot. It may also be entered by means of an access road which runs from respondent's parking lot to East 38th Street. At some points at which automobiles enter and leave these areas people may stand without danger from passing traffic. "Although not too clear from the record, it would appear that the cigarettes and candy bars sold in the West Store employee lunchroom are dispensed by vending machines "Respondent asserts, despite the presence of other business enterprises, some of which are retail in character , that the complexes in which its stores are located are not shopping centers Accordingly, respondent argues that Amalgamated Food Employees Union Local 590 v. Logan Valley Plaza, 391 US 308, and Solo Cup Company, 172 NLRB No 110, on which the General Counsel heavily relies in support of his claim that the rule excluding nonemployee representatives of the Union from respondent's parking lots is invalid , are inapplicable However, whether or not respondent 's stores are in shopping centers is immaterial , inasmuch as the Board , in Priced-Less Discount Foods. Inc , 162 NLRB 872, 874, equated a single store parking lot to a shopping center parking lot "The only fence on either of the locations is one maintained around its property at the East site by the car washing establishment located there "The entrances described in this paragraph are also the only exits from 2. Respondent's employees Respondent took possession of its Indianapolis stores on April 15. Between that date and June 3, when they were opened for business, respondent hired employees and was engaged in preparing to open its stores. There are about 125 people working in each of the stores This number has remained fairly constant since respondent first occupied them Most of respondent's employees live in various sections of Indianapolis, a city whose population exceeds 476,000. About 50 employees live in surrounding towns 18 The average distance from these localities to the stores in which employees living in them worked is about 20 miles Several employees who live outside of Indianapolis have rural route addresses. These do not locate the employee concerned geographically and are difficult to find. A few of respondent's employees walk to work. The remainder arrive in automobiles driven either by themselves or others. Although employees who drive to work are required to leave their cars in certain specified areas of respondent's parking lots, they are not limited in their choice of the lots' entrances and exits. Consequently, all are used by employees as their convenience dictates. Respondent issues distinctive orange colored vests and smocks to its employees. These have been worn by employees since about June 3, the date on which respondent's stores opened for business. In addition, they wear name tags. There are two newspapers of general circulation published in Indianapolis, and respondent's merchandise advertisements appear in these. Also published in Indianapolis are some 40 so-called neighborhood newspapers. There are 4 television, and about 15 radio stations whose broadcasts are ordinarily able to be seen and heard in the Indianapolis area. In connection with its contention that several avenues of communication with its employees in addition to talking to them on the parking lot were open to the Union, respondent would have me find that its employees customarily read the two newspapers which carry respondent's advertisements This finding, were I to make it, would have to be based solely on an assumption and opinion given by Charles Mercer, the Union's director of organization, that retail employees "ordinarily read the newspapers to watch the ads of the stores in which they work so they're familiar with what's on sale and what isn't on sale." While this opinion as to the reading habits of retail employees may be well founded insofar as their perusal of their stores' advertisements is concerned, I feel that it is an insufficient basis for a finding that these employees read other parts of the newspaper in which the advertisement appears Accordingly, there being an absence of actual evidence on the subject, I do not make the finding suggested by respondent. 3. The Union's organizing campaign The Union's organizing campaign began in the latter part of May During its course the Union used several methods of obtaining support among respondent's employees. the areas in question "The findings respecting respondent 's employees are based upon its payroll records for the period ending on June 15, which are in evidence as G C Exh 6 There is no contention that the general situation portrayed by these records did not obtain at any material time 496 DECISIONS OF NATIONAL LABOR RELATIONS BOARD Representatives of the Union from time to time walked through respondent's stores. After noting the appearance and name tags of the employees, who could be recognized by their distinctive vests and smocks, the Union's iepresentatives spoke to them on the parking lots at the beginning and end of the day and during their lunch period and free time Employees who favored the Union talked to their colleagues in the stores and also on the parking lots. Based on information received from various sources the Union compiled a list of names and addresses of employees which, by July 22, was about 80 percent complete. Using this list representatives of the Union visited the residences of employees and there sought to convince those whom they found at home of the benefits of unionization Respondent's "no-solicitation" rules prevented the Union from continuing its store and parking lot communication with employees. The rules, of course, did not preclude the Union from pursuing other methods of reaching employees with its message. These, as suggested in Solo Cup Company, 172 NLRB No. 110, could have included distribution of literature at the points at which employees entered and left the parking lots; the use of radio, television, and newspapers; meeting employees on the streets of Indianapolis, where most of them lived; and the continuation of visits to employees' homes. Concerning the latter method, here; unlike the situation which was present in Solo Cup, the Union had a fairly complete list of employees' names and addresses and representatives of the Union continued to visit the homes of employees after respondent's "no-solicitation" rules were announced. The principal problem which this entailed, aside from the substantial difficulty of finding the homes of employees who lived in rural areas surrounding Indianapolis, was that the employees were absent from their homes more often than not when the Union's representative called. In this regard, Mercer, the Union's director of organization, testified that a union representative making a "home call . may have to go back on an average [of] five to six times in order to actually make contact with the person" sought. Mercer's testimony was based on his general organizing experience It does not appear from the evidence that he visited the home of any employee of respondent. However, Mark Kapetanakis, one of the Union's organizers, did. The results which he obtained support Mercer's conclusion. Of 50 to 60 employees at whose homes Kapetanakis called, he succeeded in talking to from 7 to 10; the rest were out when visited by him. Again unlike the situation which obtained in Solo Cup, union representatives can, as I have found, safely stand at some of the points at which automobiles enter and leave the areas in which respondent's stores are located for the purpose of distributing literature to, and otherwise communicating with, respondent's employees. The Union, however, did not engage in this practice To have done so would have required the union representative participating in this procedure to be able to determine which of several entry or exit points would be used by the employees, who could choose any, and to be able to distinguish the cars in which employees ride from those of other people driving through those points in time to stop the employees' cars. Even were I to find that these difficulties could have been overcome, which the evidence does not seem to warrant, had the Union instituted the program here under consideration it would have resulted in lines of automobiles backing up into the parking lots and traffic tieups on the surrounding roads. Concerning the Union's use of newspapers, radio, and television, there are, as I have already found, more than 40 newspapers published in Indianapolis, and 4 television and some 15 radio stations whose signals can be seen and heard there This being so, I find, as did the Board in Solo Cup, that were the Union to attempt to communicate with respondent's employees through these channels it "would have a problem in deciding on the appropriate stations or newspapers,19 and would not be able to reach the employees effectively . . . through such media." [Emphasis in original.] In arriving at the foregoing conclusion in Solo Cup the Board "assum[ed] that cost was no object " In the instant case the evidence establishes that cost was, indeed, an object. Respecting this, Mercer stated that the Union did not use radio and television in its organizing campaign because of the "cost factor, which is quite high [and] very expensive in addition to not knowing which station to put [the advertisement] on." Insofar as meeting on the streets is concerned, Indianapolis, although not as large as Chicago, the city in which the events giving rise to the Board's decision in Solo Cup took place, is, nevertheless, a substantial metropolitan community In Solo Cup, the employees concerned lived in and around Chicago Similarly, here, respondent's employees live in various sections of Indianapolis and in its surrounding towns. Accordingly, it is quite unlikely that representatives of the Union would, or could be expected to, meet any significant number of respondent's employees on the street. In a not too different context the Board in Solo Cup distinguished the situation present there from the one before the Supreme Court in N L R B v. Babcock & Wilcox Company, 351 U.S. 105, 107. In Babcock & Wilcox, a large percentage of the employees involved lived in Paris, Texas, a city of 21,000 people Because of this the Court was of the opinion that nonemployee union representatives, barred by a "no-solicitation" rule from a plant parking lot could reasonably be expected to continue to avail themselves of other methods of imparting information to the employees, which included "talking with them on the streets of Paris." This distinction is equally applicable here. I find, therefore, that the method of communication between the Union and respondent's employees here under discussion would be as impractical as any of the others which have been considered. Accordingly, I conclude that there are no reasonable means available to nonemployee representatives of the Union to reach respondent's employees with its organizing message other than by having those representatives meet them on respondent's parking lots. C Facts Concerning Respondent's Alleged Unfair Labor Practices Relating to its Rule Against Solicitation by Employees and its Enforcement In speeches delivered to respondent's employees on June 13 by George Reed, its vice president," he "In this regard , as Mercer , the Union 's director of organization , testified "we have several radio stations in the Indianapolis area, around 15 at least It would be hard to distinct [sic] which one radio station to put the advertisement on " In this connection , see also my findings , set forth above, concerning the Indianapolis newspapers in which respondent's merchandise advertisements appear "Reed gave the same speech twice at each of respondent 's stores, once to full-time employees and once to part-time employees A copy of this speech is in evidence as an attachment to G C Exh 2 CENTRAL HARDWARE CO. 497 announced respondent's "policy regarding solicitations on company premises." This policy, which is still in effect, is, as stated by Reed, that "no solicitation may be made on company premises for any purpose without prior management approval. Violations of the no solicitation policy will result in disciplinary action, including the possibility of dismissal." It seems clear from the penalty provision of this "policy" that its applicability is limited to employees 11 During the latter part of June, Larry Stuck, an employee in respondent's West Store, notified a supervisor that he had received a union authorization card from Marilyn Ragle, another employee Within a short time this matter was brought to Reed's attention. Although Reed interrogated Stuck and Ragle extensively concerning the place of the card's delivery to Stuck, he was unable to establish that Ragle had given it to Stuck in the store, as Stuck maintained during the interrogation. However, Reed became convinced during his questioning of Ragle that she had violated respondent's "no-solicitation" rule in other respects== and that punishment was required. Accordingly, on July 8, Ragle was laid off for 3 days. At the time of her layoff Ragle was given a paper entitled "NOTICE OF DISCIPLINARY ACTION":3 which stated: This is to record that [Marilyn Ragle] has violated the Company's "no-solicitation" rule; and is hereby given a disciplinary layoff of three (3) days, and a warning that future violation of the rule will result in immediate discharge without further notice. While questioning Ragle concerning the authorization card received by Stuck, Reed showed her a document which had been circulated among, and signed by, employees working in respondent's East Store. This paper, which I shall for convenience refer to hereinafter as a petition or as an antiunion petition, is addressed to Reed, is undated, bears 97 signatures, and recites that the subscribers "do not want the [Union] harassing [them] any more [and] do not wish to join this union "30 In support of his contention that respondent's employee "no-solicitation" rule was discriminatorily enforced, the General Counsel, in effect, requests that I find that the petition was circulated after June 13, the date on which respondent's rule was announced; that it was circulated in the store and there signed by employees in the presence of a supervisor, and that no disciplinary action was taken against those employees who circulated or signed the petition All the findings sought by the General Counsel concerning the petition. except with respect to the time of its circulation and signing , are supported by a preponderance of the evidence and are, therefore, made Raymond Spears, upon whose testimony the foregoing findings are based, was the only witness who gave evidence as to the actual circulation and signing of the petition. His testimony was not precise as to the date on which these events occurred. In this regard he stated that "to the best of [his] knowledge" he was asked to sign the "As has already been set forth (see fn 11 ) respondent promulgated another "no-solicitation" rule aimed at nonemployee representatives of the Union . This rule will be discussed at length in a later portion of this decision "Reed 's conviction in this regard was based , he testified , on Ragle's admission to him that she had "solicited people [although not Stuck] on company time in the store " "This document is in evidence as G C Exh 10 "This petition is in evidence as G C Exh 8 petition by a fellow employee "in the month of June about three to four weeks" after he had been transferred from the West Store, where he began to work for respondent, to the East Store. Spears was equally imprecise about the date of his transfer to the East Store. He fixed that time, however, as being in the "latter part of May," or about the "middle [of May] or from there on " His final word on the subject was that he started to work at the East Store some 3 or 4 weeks after he began to work at the West Store Spears was as uncertain about his date of hire at the West Store as he was about all the other dates he gave In this respect, Spears was unable to recall when, exactly, he started to work at the West Store, but stated that it was in "the latter part of April." The exact date on which the petition was circulated or on which it was signed by Spears can not be determined from the testimony he gave. The periods during which these things occurred, can, however, be calculated by substituting actual dates for the indefinite time spans assigned by Spears to the events in question. Reckoning on this basis, Spears started to work at respondent's West Store between April 15 and April 30, which interval would comprise, as he testified, "the latter part of April." He was transferred to the East Store, as he stated, 3 to 4 weeks later, or between May 6 and May 28. Finally, he related that in Jk:ne, about 3 or 4 weeks after his transfer, or between June 1 and June 25, he signed the petition As part of this period, within which he signed the petition, included a substantial span of time before June 13, when respondent's "no-solicitation" rule was made known to its employees, I cannot find that the petition was signed by Spears, or circulated, after that d ate D. Contentions and Concluding Findings as to Respondent 's Employee "No-Solicitation" Rule The General Counsel contends that respondent's employee "no-solicitation " rule is invalid because of its undue breadth and that by not penalizing the employees at its East Store who circulated and signed the petition respondent discriminatorily enforced its rule 25 Respondent contends that the rule in question is privileged because of the retail nature of its business ; that the evidence does not establish that the rule was discriminatorily enforced; and that Ragle's layoff for noncompliance with the rule does not fall within the Act's proscription because the rule, respondent claims, is valid . As will be shown below, respondent's contentions and that of the General Counsel concerning the discriminatory enforcement of the rule are not well taken. Unlike the situation obtaining in a factory, for example, where a rule forbidding solicitation during employees ' off-duty time is presumptively invalid,16 an operator of a retail store is "privileged to promulgate a rule prohibiting all union solicitation within the selling areas of the store during both working and nonworking hours." Montgomery Ward & Co, Inc, 145 NLRB 846, 848, modified in other respects , 339 F 2d 889 (C A. 6). However a retail store rule prohibiting "solicitation in any form . . . on store premises" is "unduly broad in scope" and therefore violative of Section 8(a)(1) of the Act because it forbids "solicitation during nonworking time "The General Counsel seems to argue that by its discriminatory enforcement of the rule respondent engaged in an unfair labor practice separate and apart from its promulgation of the rule "Stoddard-Quirk Manufacturing Co, 138 NLRB 615, 617 498 DECISIONS OF NATIONAL LABOR RELATIONS BOARD whether on or off the selling floor and in or out of work areas." Mock Road Super Duper, Inc., 156 NLRB 983, 984. _7 The validity of respondent's rule here under consideration turns, therefore, on whether it bans solicitation by employees off respondent's selling floors during their nonworking time In this regard, even if the lunchroom in respondent's West Store, in which only employees eat, is considered as a selling area because customers enter it from time to time to buy the cigarettes and candy bars there offered for sale, there are other portions of respondent's premises, clearly not used for selling purposes, which would, nevertheless, fall within the rules purview. Included among these are the lunchroom in the East Store, employees' lockerrooms, storage areas located off the sales floors, and the parking lots, in all of which the rule, on its face, forbids solicitation by employees regardless of whether they are actually working. Being thus unduly broad, respondent's employee "no-solicitation" rule goes beyond the privilege set forth in Montgomery Ward It is, therefore, invalid. Having found that respondent's employee "no-solicitation" rule is invalid, it follows that the interrogation of Stuck and Ragle by Reed, respondent's vice president, to determine whether the rule had been complied with was violative of Section 8(a)(1) of the Act. Pepsi-Cola Bottlers of Miami, Inc, 155 NLRB 527, 530-531. It also follows that Ragle's disciplinary layoff by respondent because she allegedly failed to comply with the rule was violative of Section 8(a)(3). Marlene Industries Corporation, 166 NLRB No. 58. As noted earlier, the General Counsel argues that respondent separately violated Section 8(a)(1) of the Act by its discriminatory enforcement of the rule. This argument is based upon the circulation and signing of an antiunion petition in respondent's East Store. As set forth above, the evidence does not warrant a finding that the circulation and signing of the petition occurred after June 13, the date on which respondent announced its employee "no-solicitation" rule. This being so, I must reject this argument. In sum , therefore, I conclude that respondent engaged in unfair labor practices within the meaning of Section 8(a)(1) of the Act by promulgating, maintaining, and enforcing an unduly broad rule forbidding solicitation by its employees, and by interrogating employees concerning their compliance with this rule. I further conclude that respondent engaged in unfair labor practices within the meaning of Section 8(a)(3) and (1) by laying Ragle off because of her claimed noncompliance with the rule. Finally, insofar as respondent's employee "no-solicitation " rule is concerned, I conclude that the General Counsel has not sustained his burden of proving by a preponderance of the evidence that respondent "The Court of Appeals for the Sixth Circuit refused to enforce the Board 's Order in Mock Road insofar as it dealt with the "no-solicitation" rule because the court was of the opinion that there was insufficient evidentiary support for the Board 's conclusion as to the nature of the rule N L R B v. Mock Road Super Duper, Inc , 393 F 2d 432, 435 The court, however , did not find fault with the principle enunciated by the Board. In any event , as a Trial Examiner , it is my "duty to apply established Board precedent which the Board or the Supreme Court has not reversed " Prudential Insurance Company of America, 119 NLRB 768, 773, reversed on other grounds 361 U S 477 As far as my research has disclosed the precedent established by the Board in Mock Road has not been reversed by either the Supreme Court or the Board separately violated Section 8(a)(1) of the Act by enforcing the rule in a discriminatory manner. I will, therefore, recommend that paragraph 5(d), (d)(i), and (d)(ii) and the relating portion of paragraph 8 of the complaint be dismissed. E Facts Concerning Respondent's Alleged Unfair Labor Practices Relating to its Rule Against Solicitation by Nonemployees and its Enforcement About a month after respondent adopted its employee "no-solicitation" rule it announced the promulgation of a "no-solicitation" rule applicable to nonemployee representatives of the Union. This was done by letter dated July 15," distributed about 4 or 5 days later, in which respondent's employees were informed by its president that instructions had been issued to "our Indianapolis management to keep all union organizers off our premises, both inside and outside." Like respondent's employee "no-solicitation" rule, this rule, too, is still in force Although by its terms respondent's nonemployee "no-solicitation" rule is effective inside respondent's stores, as well as outside, the evidence establishes that its main thrust is to prevent nonemployee union organizers from soliciting on behalf of the Union on respondent's parking lots. To this end, respondent's officials, since July 22, have asked union representatives to leave its lots. F. Contentions and Concluding Findings as to Respondent's Nonemployee "No-Solicitation" Rule Claiming that respondent's parking lots are generally open to the public,29 and that confrontation between the Union and respondent's employees on the parking lots is the only reasonable method of solicitation available to the Union, the General Counsel argues that respondent's nonemployee "no-solicitation" rule is invalid. In support of this argument the General Counsel relies principally on Amalgamated Food Employees Union Local 590 v. Logan Valley Plaza, Inc, 391 U.S. 308, and Solo Cup Company, 172 NLRB No. 110. Taking issue with the General Counsel's premise that its employees are not reasonably within reach of the Union except on the parking lots, respondent contends that there are avenues of communication with its employees readily available to the Union other than by meeting them on the parking lots.30 Taking further issue with the General Counsel, respondent asserts that its stores are not located in shopping centers and that, therefore, their parking lots cannot be deemed to be generally open to the public. Accordingly, respondent argues in support of the validity of its ban against nonemployee solicitation that Logan Valley and Solo Cup are inapposite and that the general rule expressed in N.L R B. v. Babcock & Wilcox Company, 351 U.S. 105, should be followed. "A copy of this letter is in evidence as G C Exh 3 "It will be remembered in this connection , that I have already found that there are no barriers , guards, or signs barring anyone from using respondent 's parking lots "As will be recalled , I have found against respondent on this point However , as shall be shown, even had this issue been determined in respondent 's favor it would not , in the circumstances of this case , require a conclusion , as respondent argues, that its nonemployee "no-solicitation" rule is valid CENTRAL HARDWARE CO. 499 In determining the question of - the lawfulness of respondent's rule barring nonemployee union organizers from its parking lots the starting point for analysis is the Supreme Court's decision in Babcock & Wilcox where the legality of a similar proscription applicable to, a parking lot adjoining a manufacturing plant was under consideration There the Court noted" that "organization rights" of employees, including their right "to learn the advantages of self-organization" from nonemployee union representatives, stem from "the same authority, the National Government, that preserves [the] property rights" of their employers. "Accommodation between the two" rights, the Court went on to say, "must be obtained, with as little destruction of one as is consistent with the maintenance of the other." Striking the balance made necessary by this formula, the Court concluded" "that an employer may validly post his property against nonemployee distribution of union literature3J if reasonable efforts by the union through other available channels of communication will enable it to reach the employees with its message and if the employer's notice or order does not discriminate against the union by allowing other distribution." But, the Court went on to say,34 "if the location of a plant and the living quarters of the employees place the employees beyond the reach of reasonable union efforts to communicate with them, the employer must allow the union to approach his employees on his property." Finding that these conditions did not obtain, the rule involved in Babcock & Wilcox was not disturbed by the Court. The general problem present in Babcock & Wilcox, but in a different legal and physical setting, again came before the Supreme Court in Amalgamated Food Employees Union Local 590 v Logan Valley Plaza, Inc, 391 U.S. 308. Unlike Babcock & Wilcox, Logan Valley was not concerned with the circumstances under which an employer's rule excluding nonemployee union representatives from an industrial plant parking lot could with propriety intrude upon rights guaranteed by Section 7 of the Act. The issues in Logan Valley were broader. They required a balancing of rights arising from private ownership of property against rights of employees guaranteed not only by statute but also by the Constitution. - Specifically, in Logan Valley the Court had to decide whether a union had been properly enjoined from peaceful picketing on a parking lot within the confines of a privately owned shopping center, called Logan Valley Mall, which invited public patronage. A store located in the shopping center was the object of the picketing. The pickets were hot employed in the store. They patrolled near the store in an area of the shopping center parking lot which was generally open to the'public and to which the public had unrestricted access. The sole ground urged for the affirmance of the injunction was that the picketing constituted a trespass on private property; i.e., the privately owned shopping center and the parking lot on which it occurred. This argument was not accepted. To do so, the Court commented, would be to permit retail merchants whose businesses are located in privately owned shopping centers, which it likened" to "normal municipal business district[s]" unjustifiably to "351 U.S 112-113 "351 U.S. 112 immunize themselves from lawful picketing "by creating a cordon sanitaire of parking lots around their stores."36 Accordingly, the injunction was nullified. In doing so the Court in Logan Valley, as it had done in-Babcock & Wilcox, again struck a balance between rights granted to, employees by statute and the Constitution and rights flowing from the same sources generally enjoyed by their employers. In this regard the Court stated:37 Therefore, as to the sufficiency of respondent's ownership of the Logan Valley Mall premises as the sole support of the injunction issued against petitioners, we simply repeat what was said in Marsh v. Alabama, 326 U.S., at 506, "Ownership does not always mean absolute dominion. The more an owner, for his advantage, opens up his property for use by the public in general , the more do his rights become circumscribed by the statutory and constitutional rights of those who use it." The final case in this analysis is Solo Cup Company, etc., 172 NLRB No. 110 Here the Board concluded that a rule excluding nonemployee union representatives from the parking lots of a privately owned industrial park was invalid For a proper understanding of the Board's rationale in Solo Cup, account must be taken of the nature of the premises involved. Notwithstanding its private ownership the industrial park in question was open generally to the public. Noting the absence of fences, gates, guards, or signs prohibiting anyone from entering the property, the Board stated that "even though the area may not be classed as a fully `public' area, in view of the unlimited accessibility to the area . . . it has become through custom and use, a quasi-public area." Accordingly, the Board found, as did the Supreme Court in Logan Valley with respect to the privately owned shopping center there under consideration, that the privately owned industrial park was "clearly analogous to ... the normal municipal business district." In arriving at its conclusion in Solo Cup that the rule barring nonemployee union representatives from the industrial park was an unfair labor practice the Board first applied the longstanding criteria enunciated in Babcock & Wilcox. In this regard, the Board found that the Union was unable "by `reasonable attempts' to reach [the employees concerned] `through other available channels of communications,' " and that the rule was enforced in a discriminatory manner . For these reasons the Board, in essence , held that the property, rights of the employer in Solo Cup had to yield to the rights guaranteed to his employees by Section 7 of the Act. Upon reaching this result in Solo Cup, grounded on Babcock & Wilcox, the Board could well have stopped, but did not. It went further and assessed the impact of Logan Valley, which had been decided by the Supreme Court some 2 months earlier, on the situation then before it. Having done this, the Board enunciated a new, independent, and highly significant consideration to be taken into account in balancing the respective rights of employer and employee. Relying on the principles set forth in Logan Valley, the Board held in Solo Cup, separate and apart from its conclusions based on the authority of Babcock & Wilcox, that where an employer's private property has attained quasi-public status a rule denying access to that property to a nonemployee union "In context there appears to be no distinction between distribution , of "391 U.S 3I9 union literature and other forms of union solicitation . "391 U.S 325. 14351 U S. 113. "391 U.S. 325. 500 DECISIONS OF NATIONAL LABOR RELATIONS BOARD representative for the purpose of soliciting on behalf of a union is violative of Section 8(a)(l) of the Act. To this end the Board stated: There were no fences, gates, guards, or signs barring trespassers or distribution of literature on the property, all of which are general indications foreclosing the access of private property to the public. Thus even though the area may not be classed as a fully "public" area , in view of the unlimited accessibility to the area established by past practice it has become through custom and use, a quasi-public area. In the recent Logan Valley Plaza case, the Supreme Court in an analogous situation, found that a privately owned shopping center could not exclude nonemployees who sought to peacefully picket and distribute literature from the premises. In reaching such conclusion the Court pointed out that the shopping center utilized its premises or property as the "functional equivalent" of a "normal municipal business district" and the "public had unrestricted access to the property " The Court also noted that the economic development of the United States in the last 20 years, particularly in the area of suburban growth and the advent of shopping centers, would, if a contrary conclusion be reached, allow businesses located in suburban shopping centers to immunize themselves from all types of union campaigns and prevent the "free expression and communication that is the heart of the First Amendment." We find the industrial park in the present case clearly analogous to the privately owned suburban shopping center or the normal municipal business district and similarly conclude that Respondents cannot deny access to the premises to union representatives, whether it be for picketing or handbilling. Accordingly, in determining whether an employer's rule excluding nonemployee union representatives from his property is valid the question of whether his employees are otherwise within reasonable reach by the union has significance. This factor, however, is not of paramount importance in the case of parking lots, whether in shopping centers or not.38 Of equal, if not of greater, importance in view of constitutional implications, as Solo Cup teaches, is whether the parking lot in question, although privately owned, is quasi-public in character. If that is the fact, the owner of the lot may not prevent nonemployee agents of a union from communicating with his employees on the lot even though they may be otherwise reasonably available to receive the union's message. The parking lots here, like the premises in Solo Cup, are accessible to the public without limitation. Also like the property in Solo Cup, the parking lots here are unfenced, unguarded, and there are no posted signs barring anyone from the lots. Accordingly, as the Board did in Solo Cup, I find that respondent's parking lots have a quasi-public status. This being so, I further find on the authority of Solo Cup that respondent's rule excluding nonemployee representatives of the Union from its parking lots is invalid. I conclude, therefore, that by promulgating, maintaining , and enforcing this invalid rule respondent engaged in unfair labor practices within the meaning of Section 8(a)(1) of the Act. "As I have already noted (see in 15, above), the Board does not differentiate between shopping centers and single store parking lots G. Facts Concerning Respondent's Alleged Violations of Section 8(a)(1) of the Act Unrelated to the "No-Solicitation" Rules As set forth in the introductory portion of this Decision the complaint alleges that respondent violated Section 8(a)(1) of the Act in several other respects. In this regard it is asserted that respondent made promises and threats to induce employees to refrain from supporting the Union, interrogated an employee respecting matters relating to the Union," caused the arrest of one union representative, and threatened to have another arrested. Each allegation will be separately discussed. 1. The promises and threats It will be recalled that on June 13 George Reed, respondent's vice president, made speeches to employees in which he announced what I have called respondent's employee "no-solicitation" rule. In the same speeches Reed told his listeners that their "salaries and benefits ... already exceed[ed] that which [was] currently being offered to employees in comparable retail establishments in Indianapolis." Reed also remarked, in this vein, that it was respondent's feeling that its employees "are entitled to more benefits than the [Union] has been successful in obtaining from comparable retail stores in Indianapolis." Woven into Reed's speech at this point were references to what he called the Union's "propaganda" which, apparently, contained statements of advantages ensuing from union membership These, Reed said "would have to be negotiated over a bargaining table." In this event, he continued, "If [the Union] would be successful in leading you down the garden path, then quite frankly all bets are off and we start from scratch." 2. The interrogation During October Marilyn Ragle4° wore a button issued by the Union which, in effect, urged people to register for the purpose of voting in the forthcoming presidential election. Seeing this button, Rene Cuvellier, one of respondent's supervisors, stated to Ragle, as she testified, "I reckon you'd like to have the Union in here." Upon receiving an affirmative response, Cuvellier said "they'll never make it" because, unlike a union he belonged to in California, the Union did not "have a dental plant [plan?] here." 3. The arrest and threatened arrests Mark Kapetanakis, who resides in Columbus, Ohio, is employed as an organizer by the Retail Clerks International Association, of which the Union is an affiliate. Edward Stahl, who lives in the Indianapolis area, occupies a similar position on the Union's staff. In about mid-June Kapetanakis came to Indianapolis to assist the Union in its cafnpaign to organize respondent's employees. "The interrogation allegation to be considered here appears in the amendment to the complaint and does not relate to the interrogation carried on by George Reed , respondent 's vice president , in connection with the union authorization card received by Larry Stuck , one of respondent's employees , as to which findings have already been made "Ragle's layoff in July for allegedly violating respondent 's employee "no-solicitation" rule has already been found to have been an unfair labor practice CENTRAL HARDWARE CO. On July 22, after making calls at employees' homes, Kapetanakis and Stahl met on the parking lot at respondent's West Store. While walking toward the store they were intercepted by Max Hagerman, respondent's Indianapolis group manager, who told them not to enter the store and to leave the parking lot." Refusing to comply with Hagerman's direction, Kapetanakis said that he was going into the store as a customer. Upon being informed by Hagerman that his business was not wanted and that "if [he] went into the store [Hagerman] had orders to take action," Kapetanakis repeated that he "was going in as a customer and [Hagerman] could do what he had to do."'z Having said this, Kapetanakis entered the store. Although Kapetanakis told Hagerman that his entry into the store would be as a customer and testified that he "was going to look at some golf equipment," Kapetanakis also testified that this was "not necessarily" all he intended to do, or all that he actually did, in the store. In this regard, as Kapetanakis further related, while in the store he "looked to see who the employees [were] facialwise, who [was] working and who [he could] home call." While Kapetanakis, the Union's representative, was wandering around the store, an Indianapolis policeman who had been sent for by Hagerman, respondent's group manager, arrived. Hagerman having pointed Kapetanakis out to the policeman, the policeman approached him, asked him to leave the store, escorted him to the door, and placed him in the rear seat of a marked police car which was parked near the store's front door. After a short wait, during which the policeman who had walked out of the store with Kapetanakis conferred with another of superior rank, Kapetanakis was told that he was under arrest and a police van was called. Upon its arrival Kapetanakis was led from the car in which he had been sitting, placed in the van, which like the other police vehicle was clearly marked for what it was, and driven to a police station. All of this, from Kapetanakis' first confrontation with the policeman in the store until he was taken away in the police van, occurred in view of several employees of respondent In addition to Kapetanakis' arrest, Stahl, who like Kapetanakis is a representative of the Union, was twice threatened with arrest by officials of respondent in respondent's West Store. The first incident of this nature occurred on November 5, some 2 weeks after Stahl, himself, signed the second charge in this case" which alleged Kapetanakis' arrest as having been caused by respondent in violation of Section 8(a)(1) of the Act. On the day of the first threat Stahl was in respondent's store for the purpose, he testified, of buying paint. He was told, however, by Cuvellier, one of respondent's supervisors, that respondent "didn't want [his] business and to leave the store." Hagerman, respondent's group "In its brief, respondent asserts that neither Kapetanakis nor Stahl ever made known to any of respondent's management representatives that they were agents of the Union Respondent further states in its brief that Stahl, who had at an earlier time been employed by respondent , "was known only as a former employee discharged for cause and Kapetanakis was unknown " This, however , is not borne out of the evidence Hagerman, himself, testified that he knew on July 22 that "Ed Stahl was associated with the Union" and that he also knew that Kapetanakis "was associated [with the Union] through Ed Stahl " "These findings are based upon a synthesis of the testimony given by Hagerman and Kapetanakis . The quotations are taken from Kapetanakis' narration. "The charge in question was docketed as 25-CA-3261 501 manager, joined Stahl and Cuvellier at this point and said to Stahl, as he further related, "Ed, I want you to leave the store or I'll call the police " Apparently, this conversation did not take place within view or hearing of any employee. Having been ordered out of the store, Stahl, followed by Hagerman, walked from the paint department toward the checkout lanes located in front of the store, one of which was manned by Ragle, an employee. As they approached Ragle's lane Stahl asked Hagerman to repeat what he had said in the paint department. Hagerman did so using the same words he had used earlier This time, however, they were heard by Ragle. In this connection, Stahl candidly agreed that he asked Hagerman to repeat himself in Ragle's presence "so she would hear what [Hagerman] had to say." After this repetition Stahl left the store. Stahl returned on November 13. While in the sporting goods department he encountered two supervisors, Phil Bowers and Cuvellier. Stahl told both, as he recounted, that he was in the store to "buy . . lighter fluid as a customer." They replied that respondent "didn't want [his] business [and] to leave the store." Cuvellier added that unless Stahl did so the police would be called Stahl, thereupon, left the store. As with Stahl's paint department conversation with Cuvellier and Hagerman, respondent's Indianapolis group manager, on November 5,' Stahl's encounter with Bowers and Cuvellier on November 13 does not appear to have been seen or heard by any employee. H. Contentions and Concluding Findings Concerning Respondent's Alleged Violations of Section 8(a)(1) of the Act Unrelated to the "No-Solicitation" Rules Respondent contends, on brief, that the portion of the speech of its vice president, Reed, including the "start from scratch" phrase, was not given in a coercive atmosphere, nor was there, on respondent's part, a "background of anti- union sentiment or unfair labor practices," and that, therefore, "there is no basis for penalizing respondent on this issue." The General Counsel argues that it is char from other remarks in Reed's speech, that his "start from scratch" language is a promise that existing benefits would be continued and increased if respondent's employees refrained from supporting the Union and also a threat that they would be discontinued or diminished if the Union was supported. Thus, the General Counsel contends, respondent has violated the Act. The expression "start from scratch," or words of similar import, when applied by employers to bargaining or to benefits which employees enjoy, or which they may expect to obtain through membership in a labor organization is not new in labor relations matters. "In the context of . other substantial unfair labor practices committed by [an employer, the words in question] imply a threat of reprisal should ... employees select [ a] union; [they are] thus coercive." Aerovox Corporation, etc., 172 NLRB No. 97. On the other hand, where "an examination of [the employer's] contemporaneous behavior" shows an absence of accompanying coercive conduct "no unlawful meaning should be attached to the words in issue ." Wagner Industrial Products Company, Inc , 170 NLRB No. 157. Accordingly, in determining whether the "start from scratch" phrase used by Reed, respondent's vice president, 502 DECISIONS OF NATIONAL LABOR RELATIONS BOARD was violative of Section 8(a)(1) of the Act reference must be had to respondent's other conduct. If it includes substantial unfair labor practices, then the expression in question must be deemed to have taken on an aura of coercion. In this regard, it will be remembered that in the very speech in which Reed uttered the "start from scratch" words he also announced respondent's employee "no-solicitation" rule, which I have found to have been violative of the Act. A short time later respondent interrogated two employees concerning an alleged violation of the rule and laid off one, Ragle, because of her claimed failure to comply with the rule. This conduct, too, I have found to have been violative of the Act. Finally, I have found that respondent's "no-solicitation" rule relating to nonemployee representatives of the Union was also violative of the Act. In the "context of [these] other substantial unfair labor practices" committed by" respondent, I find that Reed's "start from scratch" language constituted, as the General Counsel argues, both a threat of reprisal and a promise of benefit designed to induce employees to refrain from supporting the Union As such, the expression under consideration was coercive within the meaning of Section 8(a)(1) of the Act. The second item in this category of unfair labor practices allegedly committed by respondent is the statement made to Ragle, an employee of respondent, by Cuvellier, a supervisor, that he thought that Ragle would "like to have the Union in here." The General Counsel argues that because Cuvellier's statement had the effect of "causing [Ragle] to declare [her] position" concerning the Union "Respondent thereby violated Section 8(a)(l) of the Act." Ragle was, indeed, caused by Cuvellier's statement to declare her position concerning the Union. I am not persuaded, however, that by causing her to do so respondent violated Section 8(a)(1). In Southern Cotton Oil Crude Mill, etc, 144 NLRB 959, -965, relied on by the General Counsel, it was stated that a supervisor's "remark [which] cause[d] an [employee] to declare his position . would not be coercive standing alone." What moved the Board to find the remark there under consideration to be coercive was another statement in the conversation between the supervisor and the employee in which the former "indicat[ed] that the job prospects of union adherents were not bright " No such facts appear here The balance of the conversation in question consisted of an innocuous comment by Cuvellier that the Union would "never make it" not because of something respondent might do, but because the Union lacked a "dental plant [plan?]." The last items for consideration are the arrest and threatened arrest, respectively, of Kapetanakis and Stahl, organizers for the Union. Claiming that respondent knew that Kapetanakis had entered its store as a customer, the General Counsel argues in his brief that respondent violated Section 8(a)(1) of the Act when it caused his arrest "in front of its employees." The General Counsel makes a similar argument with respect to respondent's threats to cause Stahl's arrest. "Aside from respondent ' s other unfair labor practices, the substantiality of an unfair labor practice involving a discriminatory deprivation of employment , as in Ragle's case, cannot be gainsaid It "goes to the very heart of the Act." N L R B v. Entwistle Manufacturing Company, 120 F.2d 532, 536 (C A 4) This is not to say that I consider respondent's other unfair labor practices to be unsubstantial. In Heck's Inc., 156 NLRB 760, 761, modified in other respects 386 F.2d 317 (C.A. 4), cited by the General Counsel to support his position, the Board found a violation of Section 8(a)(1) by an operator of a retail store who, "in front of its employees, ordered a union representative to leave [its] store although he had entered the premises to do business as a customer," and, as here in the case of Kapetanakis, called upon the police to enforce its order. The touchstone for the Board's decision in Heck's is the finding that the union representative there "entered the premises to do business as a customer." Such a finding, insofar as Kapetanakis is concerned, is not warranted here. Although Kapetanakis told Hagerman, respondent's Indianapolis group manager, that he, was "going [into the store] as a customer," this, in my judgment, was nothing more than a ruse to overcome Hagerman's objections to his entering the store. Two facts fortify my opinion in this regard. The first is that Kapetanakis came to Indianapolis from his home in Columbus, Ohio, to assist the Union in organizing respondent's employees The second is that immediately before arriving at respondent's West Store on the day in question Kapetanakis, accompanied by Stahl, another representative of the Union, had been making calls at employees' homes. Under these circumstances it strains credulity to accept at face value Kapetanakis' statement to Hagerman that he intended to enter the store "as a customer." On the other hand, I am impressed with Kapetanakis' admission that while in the store he "looked to see who the employees [were] facialwise, who [was] working and who [he could] home call " In the face of this testimony, to believe that Kapetanakis was in the store as a customer rather than as an organizer for the Union would be to exalt form, i.e, what Kapetanakis told Hagerman, over substance; i.e , what Kapetanakis actually did during his tour of the store. I, therefore, find that Kapetanakis was in respondent's store as an organizer for the Union and not as a customer. My opinion is the same insofar as it concerns Stahl, a union representative who was twice threatened with arrest unless he left respondent's West Store. Much need not be said about the second incident, which took place on November 13. Having found that it did not occur within the sight or hearing of employees, even if Stahl were, in fact, a customer at the time, respondent's order that he leave the store coup!°d with a threat to call the police unless he complied would not have been violative of Section 8(a)(1) of the Act. Priced-Less Discount Foods, Inc, 162 NLRB 872; Heck's Inc., 156 NLRB 760, 761. In the background of the first incident involving Stahl was the Kapetanakis affair, which, from the time he was first approached by the policeman in the store until his removal in the police van, was witnessed by employees. This gave rise to the charge, signed by Stahl, himself, alleging Kapetanakis' arrest as an unfair labor practice. Some 2 weeks after he signed the charge Stahl went into respondent's West Store, ostensibly to buy paint. Upon seeing Stahl, Hagerman, respondent's Indianapolis group manager, ordered him to leave the store and threatened to call the police if he did not do so. No employees being present in the paint department at the time, Stahl maneuvered Hagerman to a point in the store at which an employee was on duty. In her presence and, as he admitted, "so that she would hear" Stahl had Hagerman repeat what he had earlier said in the paint department. CENTRAL HARDWARE CO. 503 A customer, it seems to me, would not have acted in this manner It is clear to me that the purpose of Stahl's ploy was to obtain an employee witness to Hagerman's threat to have police eject him from the store if he did not obey the order to leave. Whether Stahl sought by this to create an independent incident similar to the one which concerned Kapetanakis, or to lend support to the charge he signed respecting that matter, or whether he had still another object in mind is of no moment. What is important is that the entire complex of events convinces me that Stahl, like Kapetanakis, did not enter respondent's store at the time in question as a customer, but as a representative of the Union. Having found that neither Kapetanakis nor Stahl "had entered Respondent's premises to do business as a customer" as the complaint alleges, I further find that the manner in which their removal was accomplished was not violative of Section 8(a)(1) of the Act. See, in this connection, Super X Drugs of West Virginia, Inc , 169 NLRB No. 42, and Meier & Frank Company, Inc., 89 NLRB 1016, 1018. In sum, respecting the allegations of the complaint not directly related to respondent's "no-solicitation" rules, I conclude that respondent engaged in unfair labor practices within the meaning of Section 8(a)(1) of the Act by the speech given by Reed, its vice president, insofar as it contained threats of reprisal and promises of benefit to induce employees to refrain from becoming members of, or supporting, the Union. I further conclude that respondent did not engage in unfair labor practices within the meaning of Section 8(a)(1) by its interrogation of Ragle, one of its employees, during October; by ordering Kapetanakis and Stahl, representatives of the Union, to leave its West Store, by causing the arrest of Kapetanakis, or by threatening to cause the arrest of Stahl. I will, therefore, recommend that the pleading entitled "Amendment to Consolidated Complaint," and paragraph 5(h), (j), (k), and the relating portions of paragraph 8 of the complaint be dismissed. IV THE EFFECT OF THE UNFAIR LABOR PRACTICES UPON COMMERCE Respondent's activities to the extent found violative of the Act occurring in connection with its operations set forth in section I, above, have a close, intimate, and substantial relation to trade, traffic, and commerce among the several States and tend to lead to labor disputes burdening and obstructing commerce and the free flow of commerce. V. THE REMEDY Having found that respondent engaged in unfair labor practices within the meaning of Section 8(a)(1) and (3) of the Act, my Recommended Order will direct respondent to cease and desist therefrom and to take such affirmative action as will effectuate the policies of the Act. In this connection , inasmuch as respondent has already reinstated Ragle respondent will be required only to make her whole for loss of earnings she may have suffered by the discrimination practiced against her . Any backpay found to be due shall include interest in the amount and manner provided for in Isis Plumbing & Heating Co., 138 NLRB 716. As an alternative to its claim that its employee "no-solicitation" rule was privileged respondent , claiming that the rule was not improperly enforced , argues, on brief, that for this reason "no remedy is indicated." The short answer to this argument is found in Great Atlantic & Pacific Tea Company , Inc., 162 NLRB 1182, 1184, 1189. There, notwithstanding the fact that an invalid "no-solicitation" rule had not been enforced at all, a remedial order was entered. Accordingly, my Recommended Order will contain remedial provisions relating to respondent's "no-solicitation" rules. It will also contain , in view of the nature and extent of respondent ' s unfair labor practices, broad cease-and -desist provisions. Upon the basis of the foregoing findings of fact and upon the entire record in this case , I make the following- CONCLUSIONS OF LAW 1. Respondent is an employer within the meaning of Section 2(2) of the Act and is engaged in commerce within the meaning of Section 2(6) of the Act. 2. The Union is a labor organization within the meaning of Section 2(5) of the Act. 3. By promulgating, maintaining, and enforcing a rule prohibiting employees from soliciting any other employee on behalf of the Union in nonselling and nonworking areas of its retail stores during nonworking time respondent has engaged, and is engaging, in unfair labor practices within the meaning of Section 8(a)(1) of the Act. 4 By interrogating Larry Stuck and Marilyn Ragle, employees of respondent, concerning their complaince with the rule described in Conclusion of Law 3, above, respondent has engaged, and is engaging, in unfair labor practices within the meaning of Section 8(a)(1) of the Act. 5. By laying off Marilyn Ragle, an employee of respondent, on the ground that she failed to comply with the rule described in Conclusion of Law 3, above, thereby discouraging membership in the Union, respondent has engaged, and is engaging, in unfair labor practices within the meaning of Section 8(a)(3) and (1) of the Act 6. By promulgating, maintaining, and enforcing a rule prohibiting nonemployee representatives of the Union from appearing on parking lots maintained by respondent adjacent to its retail stores and there soliciting employees on behalf of the Union respondent has engaged, and is engaging, in unfair labor practices within the meaning of Section 8(a)(1) of the Act. 7. By promising employees that the benefits they enjoyed would be increased to induce them to refrain from becoming members of, or assisting, the Union respondent has engaged, and is engaging, in unfair labor practices within the meaning of Section 8(a)(1) of the Act. 8. By threatening employees that the benefits they enjoyed would be discontinued or diminished if they became members of, or assisted, the Union respondent has engaged, and is engaging, in unfair labor practices within the meaning of Section 8(a)(1) of the Act. 9. Respondent did not engage in unfair labor practices within the meaning of Section 8(a)(1) of the Act by disparately enforcing the rule described in Conclusion of Law 3, above. 10. Respondent's interrogation of Marilyn Ragle, one of its employees, during October 1968 was not coercive and respondent did not thereby engage in an unfair labor practice within the meaning of Section 8(a)(1) of the Act 504 DECISIONS OF NATIONAL LABOR RELATIONS BOARD 11. Respondent did not engage in unfair labor practices within the meaning of Section 8(a)(1) of the Act by ordering Mark Kapetanakis, a representative of the Union, to leave its store, or by causing him to be arrested and removed from its premises in a police van. 12. Respondent did not engage in unfair labor practices within the meaning of Section 8(a)(1) of the Act by ordering Edward Stahl, a representative of the Union, to leave its store, or by threatening to call the police to enforce its orders. 13. The unfair labor practices engaged in by respondent, as set forth in Conclusions of Law 3, 4, 5, 6, 7, and 8, above, affect commerce within the meaning of Section 2(6) and (7) of the Act. Upon the foregoing findings of fact, conclusions of law, and upon the entire record in this case, I hereby issue the following: RECOMMENDED ORDER Central Hardware Company, its officers, agents, successors, and assigns , shall: 1 Cease and desist from: (a) Promulgating, maintaining, enforcing, interrogating any employee concerning, or laying off, discharging, or otherwise disciplining any employee for failure to comply with, any rule prohibiting any employee from soliciting any other employee on behalf of Retail Clerks Union Local 725, Retail Clerks International Association, AFL-CIO, or any other labor organization, in nonselling or nonworking areas of its retail stores during the nonworking time of both. (b) Promulgating, maintaining , or enforcing any rule prohibiting nonemployee representatives of Retail Clerks Union Local 725, Retail Clerks International Association, AFL-CIO, or any other labor organization, from appearing on the parking lots adjacent to its retail stores and there soliciting employees on behalf of Retail Clerks Union Local 725, Retail Clerks International Association, AFL-CIO, or any other labor organization. (c) Promising employees benefits, or threatening them with any form of reprisal, to induce them to refrain from becoming members of, or assisting, Retail Clerks Union Local 725, Retail Clerks International Association, AFL-CIO, or any other labor organization. (d) Discouraging membership in Retail Clerks Union Local 725, Retail Clerks International Association, AFL-CIO, or any other labor organization, by discriminating against employees in regard to hire or tenure of employment or any term or condition of employment. (e) In any other manner interfering with, restraining, or coercing employees in the exercise of their rights to self-organization, to form, join, or assist Retail Clerks Union Local 725, Retail Clerks International Association, AFL-CIO, or any other labor organization, to bargain collectively through representatives of their own choosing, or to engage in any concerted activities for the purpose of collective bargaining or other mutual aid or protection, as guaranteed in Section 7 of the National Labor Relations Act, as amended, or to refrain from any or all such activities except insofar as these rights could be affected by any contract with a labor organization, if validly made in accordance with said Act, whereby membership therein is a condition of employment after the 30th day following the date of such contract or the beginning of such employment, whichever is later. 2. Take the following affirmative action which, it is found , will effectuate the policies of the National Labor Relations Act, as amended: (a) Revoke and withdraw its rule, announced in speeches to employees delivered on or about June 13, 1968, by George Reed , its vice president , or any prior or subsequent rule, insofar as any said rule prohibits any employee from soliciting any other employee on behalf of Retail Clerks Union Local 725, Retail Clerks International Association , AFL-CIO, or any other labor organization , in nonselling or nonworking areas of its retail stores during the nonworking time of both. (b) Revoke and withdraw its rule, announced in letters, dated July 15, 1968, addressed , and later delivered, to employees , or any prior or subsequent rule prohibiting nonemployee representatives of Retail Clerks Union Local 725, Retail Clerks International Association , AFL-CIO, or any other labor organization , from appearing on the parking lots adjacent to its retail stores and there soliciting employees on behalf of Retail Clerks Union Local 725, Retail Clerks International Association, AFL-CIO, or any other labor organization. (c) Make Marilyn Ragle whole, in the manner set forth in the section of this Decision entitled "The Remedy," for any loss of earnings she may have suffered by reason of the discrimination practiced against her. (d) Preserve and, upon request , make available to the National Labor Relations 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 each of its Indianapolis stores copies of the attached notice marked "Appendix .11 41 [Board's Appendix substituted for Trial Examiners .] Copies of said notice, on forms provided by the Regional Director for Region 25 of the National Labor Relations Board, after being duly signed by respondent 's authorized 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 said Regional Director , in writing , within 20 days from the receipt of this Decision, what steps respondent has taken to comply herewith °6 IT IS FURTHER ORDERED that the pleading entitled "Amendment to Consolidated Complaint " and the complaint be, and they hereby are , dismissed insofar as they allege unfair labor practices not specifically found herein. "In the event that this Recommended Order is adopted by the Board, the words "a Decision and Order" shall be substituted for the words "the Recommended Order of a Trial Examiner" in the notice . In the further event that the Board 's Order is enforced by a decree of a United States Court of Appeals, the words "a Decree of the United States Court of Appeals Enforcing an Order" shall be substituted for the words "a Decision and Order " "In the event that this Recommended Order is adopted by the Board, this provision shall be modified to read : "Notify said Regional Director, in writing, within 10 days from the date of this Order, what steps respondent has taken to comply herewith " Copy with citationCopy as parenthetical citation