Crane Co.Download PDFNational Labor Relations Board - Board DecisionsDec 24, 1963145 N.L.R.B. 587 (N.L.R.B. 1963) Copy Citation CRANE COMPANY 587 quiring membership in a labor organization as a condition of employment, as authorized in Section 8(a)(3) of the National Labor Relations Act, as modified by the Labor-Management Reporting and Disclosure Act of 1959. All our employees are free to become and remain or to refrain from becoming or remaining members of the above-named Union or any other union. CERTIFIED CASTING & ENGINEERING, INC., Employer. Dated------------------- By------------------------------------------- (Representative ) ( Title) This notice must remain posted for 60 consecutive days from the date of posting, and must not be altered, defaced, or covered by any other material. Employees may communicate directly with the Board's Regional Office, 500 Book Building, 1249 Washington Boulevard , Detroit, Michigan, Telephone No. 226-3200, if they have any question concerning this notice or compliance with its provisions. Crane Company and United Steelworkers of America , AFL-CIO. Case No. 96-CA-1441. December 24, 1963 DECISION AND ORDER On May 7, 1963 , Trial Examiner John C. Fischer issued his Inter- mediate Report in the above -entitled proceeding , finding that the Respondent had not engaged in the unfair labor practices alleged in the complaint and recommending that the complaint be dismissed in its entirety , as set forth in the attached Intermediate Report. There- after, the General Counsel and the Charging Party filed exceptions to the Intermediate Report and supporting briefs. Pursuant to the provision of Section 3 (b) of the National Labor Relations Act, the Board has delegated its powers in connection with this case to a three -member panel [Chairman McCulloch and Members Fanning and Brown]. 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 entire record in this case , including the Intermediate Report, the exceptions, and briefs , and hereby adopts the findings, conclusions , and recom- mendations of the Trial Examiner , only insofar as they are consistent with the following : 1 The Trial Examiner found that the Respondent's discharges of Maynard , Box, and Spence on December 14, 1962, were not motivated by discriminatory considerations . He concluded that the discharges, the first two of which assertedly were for leadership in a production 'As we cannot say that the Trial Examiner ' s credibility resolutions were clearly erroneous , we agree with him, for reasons stated in his Intermediate Report , that the speech of Foreman Spicer of the polishing and buffing department to the employees in the department on the day preceding the election did not violate Section 8 ( a) (1) of the Act 145 NLRB No. 56. 588 DECISIONS OF NATIONAL LABOR RELATIONS BOARD slowdown and the latter for falsifying company records by failing to report work completed, did not violate Section 8(a) (3) and (1) of the Act because they were for violations of company rules. Ex- ceptions were taken by the General Counsel and the Charging Union to these and supporting findings. The General Counsel contends that Maynard and Box were discharged because they were union leaders, and that Spence was not discharged for allegedly falsifying company records but for discriminatory reasons. We find, contrary to the Trial Examiner, that a preponderance of the evidence , which is de- scribed below, supports the General Counsel 's position. The record discloses that in early 1961 , Respondent began the manu- facture of bathroom fixtures and brass fittings at a new plant at Jonesboro , Arkansas . An organizing campaign by the International Association of Machinists , in which Maynard and Box were leaders, began in late 1961 . Maynard also served as an observer at the Board- conducted election held July 25 , 1962 , which that union lost. It is clear from the record herein that Respondent knew the identity of the leaders in that campaign . About October 1, 1962 , the Charging Union, hereinafter called the Steelworkers , started organizing Re- spondent 's employees . Maynard and Box again became leaders in the campaign , openly distributing authorization cards among polish- ing and buffing department employees with whom they worked and in various other plant areas before and after work , during lunch hours, and on break periods. Contrary to the Trial Examiner , the record contains uncontroverted evidence that management had knowledge of the Steelworkers' cam- paign. Thus, John Spence , who had signed and also assisted in pass- ing out union cards in both the IAM and the Steelworkers campaigns, testified that while organizing for the Steelworkers no attempt was made to hide such activity . According to Spence he personally in- formed Foreman Ring of the Steelworkers ' drive. In a conversation in November , he told Ring that he was in favor of the Steelworkers and intended "to do everything [he] could to help it come in." Ring indicated that although he had not been in favor of unionization at the time of the IAM campaign, he did not hold this view with respect to the Steelworkers ' efforts and would not stand in the way. Ring testified that he had heard a rumor concerning the Steelworkers cam- paign but did not remember the conversation referred to by Spence. He also stated that he had gained knowledge of the Steelworkers' efforts from someone not employed by Respondent . Spence further testified, without contradiction, that the foreman of the die-cast de- partment knew the Steelworkers were organizing and had had conver- sations on this subject with Spence on several occasions, the last being no more than a week before Spence was discharged. CRANE COMPANY 589 On a Friday in October 1962, employees in the polishing and buffing department engaged in a 20-minute work stoppage during which Maynard acted as spokesman for the group? After this matter Was settled, Box and several other employees called a meeting for the following Saturday at a cafe near the plant for the purpose of desig- nating a committee and working out a procedure whereby grievances might be brought to the attention of management. At that meeting a committee of six was selected, including Box and Maynard, with the latter chosen as spokesman. Admittedly, Foreman Spicer knew that this meeting was to take place before it occurred. He also later learned what happened. On December 14, 1962, Maynard, Box, and Spence were separately called into the office of Personnel Manager and Labor Relations Di- rector John Fogle and, in the presence of Department Foreman Spicer, were discharged. John Spence was told by Fogle that they had proof he had been falsifying company records. When he denied this and requested that they specify the manner, he was told that they meant he had been carrying completed work forward from one day to the next without including it in his production report on the day completed.' Spence replied this was the first he had heard that the procedure he had been following was 'against company policy; that "everybody back there has been doing it," whereupon Fogle stated : "Well, John, this re- quires discharging. We hate to have to do it." Continuing, Fogle stated that there was really no need to fire Spence; all they wanted was to know who were the ringleaders in holding down production. Spence indicated he did not know what they were talking about; that this was the first he had heard of it. Fogle explained, then advised Spence, that they did not have any complaints and were satisfied with 2 Although we do not accept the Trial Examiner's characterization of this incident as constituting a "sitdown strike ," we nevertheless agree with him that this work stoppage by employees, as well as formation of the grievance committee, was concerted activity pro- tected by Section 7 of the Act. 8 At this time each employee was required to turn in a written report at the end of each day indicating the number of finished pieces he had produced . As noted by the Trial Examiner, there was considerable confusion in the minds of employees as to what the work reporting requirements were . Several employees testified that they did not know they were expected to report more than 100 percent of their production quota. What was done with the unreported finished work apparently varied among the employees It is undisputed that those who held over the finished work covered it up or hid it between boxes, when two shifts were working but when only one shift operated the work was left beside the machine for the next day Apparently, rather than hold the work over, some employees turned it in but only reported as completed an amount corresponding to their quota on that job. Indeed , one employee testified that on an occasion when he had run a substantial amount over the quota and did not want to place that much work on the side, he went to Spicer and said he was going to send it all in but was not going to put it all on his card , and Spicer said , "All right." This appears to be what Spence had done on the occasion of his discharge , for Spicer testified that he had received the 800 pieces of the job and Spence had obtained from him a new jot) but the records,for the department showed that Spence had completed only 300 or 350 pieces so he checked Spence's report and dis- covered that the completed work had not been recorded. 590 DECISIONS OF NATIONAL LABOR RELATIONS BOARD his work," but that they could not have anyone in the department restricting production, and again Fogle offered Spence as the alter- native to his discharge, disclosure of the leaders. Spence repeated that he did not know, adding that, in any event, he would not in- form, whereupon he was discharged. Fogle accused Maynard of telling other employees to hold produc- tion to 100 percent of quota, but Maynard denied this and cited his own production in excess of that amount.5 Maynard's request to con- front his accuser was refused. When asked to disclose who the de- partment ringleaders were, Maynard asserted he did not know. Spicer retorted with the argument that if Maynard himself was not one of the ringleaders, why did the employees push him forward to talk dur- ing the strike. Maynard stated that if they meant the union leaders, he knew there was plenty of union activity going on and who the leaders of that activity were and this he could tell them, adding ex- pression of a hope that the Union came in. He was told that if this was his attitude they were going to discharge him, whereupon they gave him his separation slip and checks and told him to leave. Spicer escorted Box to Fogle's office where Fogle told Box he was going to have to let Box go. Box asked why and Fogle stated that every time something happened Box's and Maynard's names always appeared and that he, Fogle, was tired of it; that now he had proof that they were holding down production. When Box asked Fogle to explain what he meant by this, Fogle refused to do so and gave Box no opportunity to deny complicity. Box asked whether his work was all right and Spicer said that he had found nothing wrong with Box's work. As he was leaving Box stated that he could not under- stand their position and was going to take the matter up with the Board whereupon Spicer walked out the door with him stating he, Spicer, hated to see Box go but there was nothing he could do to help. Both Spicer and Fogle testified concerning the discharges but neither contradicted the testimony of the dischargees as to what occurred at the exit interviews related above. In fact Fogle corroborated that testimony in important respects. As to Spence, Fogle explained that he gave Spence a chance to inform in order to develop extenuating circumstances which would justify not discharging him for breach of a rule which called for discharge. Fogle also indicated that the decision to discharge Maynard and Box was made before the exit interviews: Spicer had talked with him that morning; they had dis- cussed the whole matter with the plant superintendent and then with 4 As noted by the Trial Examiner, Spence was a fast worker . The record indicates that when the department average was well below 100 percent , Spence , as a rule , far exceeded the quota producing as high as 200 percent despite his tendency to visit other departments for which he had received a written reprimand but which was admittedly not a factor in his discharge. 5 It appears that both Maynard and Box were efficient producers consistently producing and reporting in excess of quota and among the highest in the department. CRANE COMPANY 591 the plant manager who approved the discharge action; he and Spicer had arranged with the accounting office to prepare the checks; and he had told Spicer what time to bring the individuals to the office for discharge. Fogle admitted that they had no proof of the charges of holding down production but held a suspicion that Box and Maynard were the leaders based on the fact that their names were mentioned in connection with other problems Spicer had in his department. That Spicer's so-called information was, at most, ao more than suspicion based upon the previously displayed leadership of Maynard and Box as indicated by Fogle is further supported by Spicer's testi- mony. He claims he recommended the discharge of Maynard and Box when he felt that he had proof they were responsible for the slowdown. He also testified that shortly before these three men were discharged Bobby Neal was called into Fogle's office where they un- successfully tried to get him to tell who was holding down produc- tion. Spicer specifically stated that at that time they did not know who was responsible; that they only thought certain persons were the leaders but had no confirmation; and that they also "vaguely" sus- pected as possible leaders Mangrum and Johnston, "mainly because of association with one another. They seemed to be together all of the time. That's the only reason . . . they ate lunch together."' Spicer claimed that during the pressure for increased efficiency he suspected there was a deliberate campaign to hold down production. He was importuned by several employees to discontinue the practice of posting individual figures of finished production on the bulletin board.' Spicer stated that in addition to several insinuations he also was informed that Maynard and Box each had told another employee to limit his output." 6In this connection , Neal testified that he was called in and interrogated by Fogle and Spicer as to whether he had any knowledge of who in the department was holding down production . Showing him a paper with the names of Maynard , Box, Johnston , Mangrum, and Reynolds ( individuals who had been active in both the IAM and the Steelworkers campaigns ) listed thereon , Fogle stated that other people had informed him these men had told employees to slow down production Neal replied this might be true but be had never heard these men tell anybody to slow down Neal was released upon his promise to let them know if he heard anything. It is not clear whether the purpose of this alleged request was to prevent anyone from pressuring employees to produce less, or to report less as indicated by the Trial Examiner within a day or two , according to Spicer, employee Green , who shared a ride with him, reluctantly told Spicer that Pete Box was doing the pressuring and Sam Maynard was rumored "word of mouth " as doing the same . In his pretrial affidavit Spicer had stated that Maynard was not mentioned by Green. He explained that what he meant was Green "could not point his finger directly at Sam Maynard . . . " In any event Spicer discontinued posting the individual production in mid -November, a month before the discharges. 8 Spicer placed the incident concerning Box vaguely at "about a year before this," at which time he called Box and talked with both employees It was mid-July when Maynard was reported to have told another employee he was running too many parts Spicer said he spoke to Maynard who denied it and he was left with one man 's word against another. With respect to these incidents , Spicer also testified that had he felt the charges were true lie would have discharged the men at the time. 592 DECISIONS OF NATIONAL LABOR RELATIONS BOARD Spicer was confronted with the affidavit given the Board agent in which he stated : I decided to discharge the men. The decision to discharge them was based on the background of trouble with the men, Box and Maynard. Maynard was mentioned by Green as having told him to slow down production. Maynard and Box were involved in the sit down strike they had in the department and Maynard and Box called a meeting of the men where they discussed work- ing conditions and had a strike vote. This meeting was some- time in September on the Saturday after we laid off the second shift. The only reason that I would consider this a factor in dis- charging them was because they seemed to be the leaders of the group. On cross-examination he, in effect, reiterated that their demonstrated leadership in union activity was the basis for his selection of Maynard and Box in this situation by explaining the above statement as fol- lows : ". . . if Sam and Pete could sway the men one way or another in any given thing that they could sway the men in the production hold down." With respect to the alleged slowdown which Maynard and Box were accused of leading, the record reveals the following situation : apparently because the plant was not operating up to its production capacity, Respondent on August 1, 1962, employed a new general manager. Various types of surveys and studies were immediately instituted to determine the relative efficiency of each department and each operation therein as well as means to improve productivity. Such studies disclosed that the plant , and in particular the polishing and buffing department in which the three dischargees worked, was operating at about 50 percent of efficiency , and a program to improve this situation was commenced immediately . It appears that as a result of the efforts made, efficiency for the polishing and buffing de- partment improved to about 75 percent within a week, 97 percent at the time of the discharges, and 125 percent at the time of the hearing. After the discharges, the individual employee standards were raised from 100 percent to 125 percent quota. The existence of any slow- down is, therefore, strongly controverted by the facts presented, for, as noted, production and efficiency increased phenomenally during the period the slowdown supposedly was in effect. Apparently intended interchangeably, the Respondent's witnesses used with the label "slowdown" the words production "hold-down" and "hold-back." The evidence produced with respect to Spence's discharge indicates that the holding back of production was the fail- ure to either report or to turn in completed work, and that this was due to a general misunderstanding of the required procedure, not a failure to produce the work. Further, the evidence establishes that CRANE COMPANY 593 the procedures used were not unknown to the foreman and, in fact, in some instances had his specific approval. As to holding down production at a time when Respondent was attempting to increase it, although there is some indication that some employees were not en- thusiastic about a production push,' there is no evidence that a counter- endeavor of the type alleged existed, much less that Respondent had evidence that Maynard and Box were the leaders of such a scheme. As disclosed by the foregoing evidence, the situation pointed to as implicating Maynard and Box in any production holddown were, ac- cording to Spicers own admission, insufficient to establish their com- plicity and, therefore, did not warrant their discharge at the time the incidents occurred. The remaining basis of "proof" consisting solely of "insinuations" by two unidentified men at an unspecified time, which Maynard denied and which Box was not even given an opportunity to deny, demonstrates the pretextual nature of their dis- charges. Thus, it is clear that Maynard and Box were not discharged for the reasons asserted by the Respondent but were selected be- cause of the leadership qualities demonstrated in the course of their union and concerted activity. With respect to the reasons given for discharging Spence, it is clear that because there was confusion as to what Respondent wished to have reported, other employees had accorded the same and similar treat- ment to Respondent's records; that Respondent had knowledge of several specific instances thereof; that through Foreman Spicer, Re- spondent had specifically acquiesced therein; and that other employees were not even reprimanded for the same so-called breach of Re- spondent's rules. Instead, after Spence was discharged, Respondent changed and explained to them the revised reporting procedure.'° 9 Employee Emerson testified he overheard Box ask employee Wilson how many pieces he was running and comment that this was too much ; that he, Box, was not aiming to run over 100 percent ; and that "the more you would run the more they would expect you to run." Employee Wilson testified that neither Maynard nor Box had asked him to hold down production ; that Box had told him to do what he wanted but Box personally was not going to try for over 100 percent because "the more we run the more they want," He denied that there had been any criticism among employees in the department for producing too much This may establish that Box personally was withholding his best effort from his job , but he was not discharged for his own work performance. 10 That what Spence did was not inconsistent with the existing practice in the depart- ment is indicated by testimony of what occurred with respect to the reporting procedure after Spence ' s discharge. Thus, It appears that Spicer spoke to the employees in the department and stated that he was not going into the details of why the men were fired but there might be some confusion over reporting finished and unfinished parts. He was reported as saying , "Most of you have been carrying work over ," but this would have to stop He then outlined the new proedure to be followed which included the change to reporting the time spent on each step of the process and indicating the status of uncom- pleted work at the end of each day . He also spoke to one employee who had 'been reporting an even 100 percent quota and commented that this looked like they were just doing 100 percent and then quitting The employee replied this was not the fact, when he reached the 100 percent for the day he started some for the next day. Spicer said that "until then they did not say to run on the standard , but from now on we should turn in all of our parts as we finished on the day that we finished." 734-070-64-vol. 145-39 594 DECISIONS OF NATIONAL LABOR RELATIONS BOARD This disparate treatment accorded Spence vis-a-vis other employees similarly situated, requires the conclusion that the reason given for his discharge was not the real reason, and necessitates inquiry into the motivating force behind the discharge. As noted above, Respond- ent had knowledge of Spence's views and his supporting role in the organizing campaign through two of its supervisors. In our view, Respondent seized upon what at most was a technical violation of a plant rule, honored by common practice primarily in its breach, as a cover for its antiunion motive of ridding itself of this union adherent. However, Respondent apparently also had another more immediate objective. As demonstrated with respect to Maynard and Box, Re- spondent was diligently seeking out the leaders of the Steelworkers' organizing campaign under the guise of investigating a purported slowdown. The purpose of this search was twofold : to eliminate such active union adherents from its employ and to interfere with the exercise by employees of their Section 7 rights by depriving them of effective leadership. As was made clear at the exit interview, Respondent was willing to retain Spence if he would assist it in establishing the pretextual basis for the discharge of Maynard and Box. It therefore offered to with- draw Spence's discharge in exchange for evidence to support its false and pretextual charge against those union leaders. When Spence refused to be a party to that scheme as threatened he was summarily discharged for his union activities. In view of the foregoing, we find, contrary to the Trial Examiner, that the discharges of Maynard, Box, and Spence on December 14, 1962, were discriminatorily motivated by Respondent's desire to inter- fere with, restrain, and coerce employees because of their union ac- tivities, and thus violated Section 8 (a) (3) and (1) of the Act.ll THE REMEDY Having found that the Respondent has engaged in certain unfair labor practices, we shall order that it cease and desist therefrom and take certain affirmative action designed to effectuate the policies of the Act. Having found that the Respondent discriminatorily discharged Sam Maynard, Jr., P. W. Box, and John Spence, we shall order that it offer them immediate and full reinstatement to their former or sub- stantially equivalent positions, without prejudice to their seniority or other rights and privileges previously enjoyed, and make them whole for any loss of earnings they may have suffered because of n See, e.g., N L R.B. v. Great Eastern Color Lithographic Corp., 309 F . 2d 352 (C.A. 2) ; N.L.R.B. v. Jamestown Sterling Corp, 211 F . 2d 725, 726 (C.A. 2) ; DuBois Chemicals, Inc., 140 NLRB 103; and Julius Corn and Sheldon Corn, d /b/a Julius Corn and Co., 129 NLRB 1264. CRANE COMPANY 595 the discrimination against them, by payment to each of them of a sum of money equal to that which he would normally have earned as wages from the date of the discharge to the date of the offer of reinstatement, less net earnings during said period, with backpay computed on a quarterly basis in the manner established by the Board in F. W. Woolworth Company, 90 NLRB 289. Interest at the rate of 6 percent per annum shall be added to backpay to be computed in the manner set forth in Isis Plumbing cf Heating Co., 138 NLRB 716. As the discharge of employees because of their union activities goes to the very heart of the Act, the commission of similar and other unfair labor practices by the Respondent may reasonably be antici- pated in the future. We shall therefore order the Respondent to cease and desist from in any manner infringing upon the rights guaranteed to employees in Section 7 of the Act. ORDER Upon the entire record in this case, and pursuant to Section 10(c) of the National Labor Relations Act, as amended, the National Labor Relations Board hereby orders that the Respondent, Crane Company, Jonesboro, Arkansas, its officers, agents, successors, and assigns, shall : 1. Cease and desist from : (a) Discouraging membership in United Steelworkers of America, AFL-CIO, or in any other labor organization of its employees, by discharging employees or by discriminating in any other manner in regard to hire or tenure of employment or any term or condition thereof. (b) In any other manner interfering with, restraining, or coercing employees in the exercise of the right to self-organization, to form labor organizations, to join or assist United Steelworkers of America, AFL-CIO, or any other labor organization, to bargain collectively through representatives of their own choosing, and to engage in other concerted activities for the purposes of collective bargaining or other mutual aid or protection, or to refrain from any or all such activities. 2. Take the following affirmative action which the Board finds will effectuate the policies of the Act : (a) Offer immediate and full reinstatement to their former or sub- stantially equivalent positions, without prejudice to their seniority or other rights and privileges, to employees Sam Maynard, Jr., P. W. Box, and John Spence, and make each of them whole for any loss of pay he may have suffered by reason of the Respondent's discrimi- nation with respect to him, in the manner set forth in the section of this Decision and Order entitled "The Remedy." (b) Preserve and, upon request, make available to the Board or its agents, for examination and copying, 'all payroll records, social security payment records, timecards, personnel records and reports, 596 DECISIONS OF NATIONAL LABOR RELATIONS BOARD and all other records necessary to analyze the amounts of backpay due and the rights of employment under the terms of this Decision and Order. (c) Post at its plant at Jonesboro, Arkansas, copies of the attached notice marked "Appendix." 12 Copies of said notice, to be furnished by the Regional Director for the Twenty-sixth Region, shall, after being duly signed by an authorized representative of Respondent, be posted by the 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. (d) Notify the Regional Director for the Twenty-sixth Region, in writing, within 10 days from the date of this Order, what steps have been taken to comply herewith. IT IS FURTHER ORDERED that the complaint herein, insofar as it alleges violations of the Act not found in this Decision and Order, be, and it hereby is, dismissed. CHAIRMAN MCCULLOCH, concurring in part and dissenting in part: I agree with the majority's finding that Respondent unlawfully dis- charged Maynard and Box, but not with the further finding that Re- spondent also unlawfully terminated Spence. The majority gives two reasons for concluding that the discharge of Spence was discrim- inatorily motivated : (1) Respondent desired to rid itself of a union adherent and seized on a pretext to justify the discharge; and (2) Spence refused to cooperate in supporting the false and pretextual charge against Maynard and Box. As to the first reason, the General Counsel has not urged this theory before the Board. Moreover, the evidence fails to show that Spence was a leader in union activities or in any way comparable in importance to Maynard and Box. His participation in union activities was at most minimal. No reason is suggested why Respondent should have discriminatorily singled him out for discharge. As to the second reason, there is absolutely no evidence nor proper basis for an inference that in urging Spence to reveal the names of the leaders in the alleged slowdown movement, Respondent was guided by a desire to have Spence "finger" Maynard or Box. In 'the absence of such evidence, the conclusion of the majority is simply not warranted. Because I believe that the Gen- eral Counsel has not proved by a preponderance of evidence that Re- spondent discharged Spence for discriminatory reasons, I would adopt the Trial Examiner's recommendation that this allegation of the complaint be dismissed. 12 In the event that this Order is enforced by a decree of a United States Court of Appeals, there shall be substituted for the words "A Decision and Order " the words "A Decree of the United States Court of Appeals , Enforcing an Order." CRANE COMPANY APPENDIX NOTICE TO ALL EMPLOYEES 597 Pursuant to a Decision and Order of the National Labor Relations Board, and in order to effectuate the policies of the National Labor Relations Act, as amended, we hereby notify our employees that : WE WILL NOT discourage membership in United Steelworkers of America, AFL-CIO, or in any other labor organization of our employees, by discharging employees or by discriminating in any other manner in regard to hire or tenure of employment or any term or condition thereof. WE WILL OFFER immediate and full reinstatement to their former or substantially equivalent positions, without prejudice to their seniority or other rights and privileges, to Sam Maynard, Jr., P. W. Box, and John Spence, and make each of them whole for any loss of pay he may have suffered by reason of our dis- crimination against him. WE WILL NOT in any other manner interfere with, restrain, or coerce our employees in the exercise of their right to self- organization, to form labor organizations, to join or assist United Steelworkers of America, AFL-CIO, or any other labor organiza- tion, to bargain collectively through representatives of their own choosing, and to engage in other concerted activities for the pur- pose of collective bargaining or other mutual aid or protection, or to refrain from any or all such activities. All our employees are free to become or remain or refrain from becoming or remaining members of the above-named or any other labor organization. CRANE COMPANY, F, mplo yer. Dated--- ------------- By------------------------------------- (Representative ) ( Title) NoTE.-We will notify the above-named employees if presently serving in the Armed Forces of the United States of their right to full reinstatement upon application in accordance with the Selective Service Act and the Universal Military Training and Service Act of 1948, as amended , after discharge from the Armed Forces. This notice must remain posted for 60 consecutive days from the date of posting , and must not be altered , defaced, or covered by any other material. Employees may communicate directly with the Board 's Regional Office, 746 Federal Office Building, 167 North Main Street , Memphis, Tennessee , Telephone No. 534-3161, if they have any questions con- cerning this notice or compliance with its provisions. 598 DECISIONS OF NATIONAL LABOR RELATIONS BOARD INTERMEDIATE REPORT AND RECOMMENDED ORDER STATEMENT OF THE CASE Upon charges duly filed by United Steelworkers of America AFL-CIO (herein called the Union), the General Counsel of the National Labor Relations Board, by the Regional Director for the Twenty-sixth Region (Memphis, Tennessee), issued his consolidated complaint dated February 7, 1963, against Crane Company (herein called the Respondent). In substance the complaint alleged that Respondent had engaged in conduct proscribed by Section 8(a) (1) and (3) of the National Labor Relations Act (herein called the Act), and that such conduct affected commerce as set forth in Section 2(6) and (7) of the Act. Respondent's answer admits some of the facts pleaded in the complaint, but denies the commission of any unfair labor practices by Crane Company. Pursuant to appropriate notice, a hearing was held before Trial Examiner John C. Fischer at Jonesboro, Arkansas, on March 12 and 13, 1963. All parties were represented at and participated in the hearing and were afforded the right to present evidence, to examine and cross-examine witnesses, to offer oral argument, and to file briefs. Upon the entire record in this case, including the admission in the answer and the stipulations of the parties, and from my observation of the witnesses, I make the following: FINDINGS OF FACT 1. THE BUSINESS OF RESPONDENT Respondent Crane Company is now, and has been at all times material herein, an Illinois corporation with a place of business at Jonesboro, Arkansas, where it is engaged in the manufacture and sale of plumbing brass. During the past 12 months, Respondent , in the course and conduct of its business operations , purchased and received at its Jonesboro, Arkansas, plant, materials and supplies valued in excess of $50,000 directly from points outside the State of Arkansas. During the same period, Respondent manufactured, sold, and shipped from its Jonesboro, Arkansas, plant, finished products valued in excess of $50,000 directly to points outside the State of Arkansas. Respondent is now, and has been at all times material herein, an employer engaged in commerce within the meaning of Section 2(6) and (7) of the Act. H. THE LABOR ORGANIZATION INVOLVED The Steelworkers Union and International Association of Machinists, AFL-CIO, are now, and have been at all times material herein, labor organizations within the meaning of Section 2 (5) of the Act. III. THE ALLEGED UNFAIR LABOR PRACTICES Background At the time of filing of the alleged unfair labor practice charges, December 31, 1962, Respondent Crane Company had been operating a new plant or factory, known as the plumbing brass division, which manufactured bathroom fixtures and brass fittings. About 500 workers were employed. The operation virtually started from scratch with new and inexperienced employees in this field of manufacture. After about a year and a half, the Jonesboro plant was not operating up to the production standards prevailing in this competitive industry. Accordingly, a change in management occurred. The then plant manager, Vitales, was relieved, and A. C. Harrison supplanted him as general manager about August 1, 1962. General Manager Harrison testified that the Jonesboro Crane plant was in serious trouble financially and he was brought here because the incumbent management was not able to get to the bottom of the problem. Harrison traced the financial losses, in large part, to employee inefficiencies . Although the inefficiencies were distributed throughout the plant, his studies and investigations revealed that the "polishing and buffing" department operated at the lowest level of efficiency. In terms of productivity, this department Harrison found to be operating at only 50 percent efficiency. At the time of the hearing, however, it was operating at approxi- mately 125 percent efficiency. (It was in this department that the three alleged discriminatorily discharged employees, P. W. Box, Sam Maynard, Jr., and John F. Spence, were working until fired on December 14, 1962.) CRANE COMPANY 599 Harrison's Survey Harrison promptly began a plantwide investigation. He described conditions in the polishing and buffing department as follows: Well, the polishing and buffing department was actually the department with the lowest level of efficiency from what I could determine upon coming to the plant. I used a practice which I had used in industry for many, many years of taking work samplings to determine what the difficulty was, why the efficiency was so low and the work samplings that I took indicated just a lack of appli- cation. People were not doing their work. They were standing around talking in groups, or two or three individuals together. They were not working, in some cases, or even at their work station. I found them in various places in the shop, in the men's room; in fact, out of their department on occasions. On several occasions I actually went up and asked the people individually if they were on a break and I always got the answer in the negative and on occasion I asked them if they thought it was being fair that they were taking an extra break just as a means of trying to make people realize that they had a responsibility to be producing . . . . I took this matter up with the plant superintendent and with the foreman and Mr. Fogle and as the problem became a little bit more difficult, we weren't making any progress; we weren't making the progress we were making in the rest of the shop in correcting the situation, I told them that we would have to get to the bottom of the problem, if it needed very serious steps to correct it, because it was jeopardizing the jobs of all of the people in the plant. Q. (By Counsel FRIERSON.) Sometime in early December information was brought to you, it has been testified that there was a deliberate effort to hold down the production in that department. Did you give any instructions con- cerning-or give any instructions to your foreman on that occasion? A. I took action in two directions at that time. I asked my industrial engineering department at that time to go into the department and make indi- vidual studies of some of the lost time and I also told the foreman and Mr. Fogle and the superintendent that if worst come to worst we were going to have to let the entire buffing department go and start from scratch again. Advent of I.A.M. Union From the time of inception of the plant early in 1960, until the early summer of 1962 the operation followed the usual course of a new industry. It was necessary to recruit, staff, and train new personnel. Even as late as the time of the hearing, Respondent Counsel Frierson stated that the Company has not yet had its full trial run or its full experience with training persons and getting everything in order to produce most economically. However, in the late spring or early summer of 1962 the International Association of Machinists Union undertook to unionize the new plant. Management resisted this effort and at a Board-conducted consent election the Union was defeated on July 26. Charges were filed by I.A.M. in Case No. 26-CA-1290 but a settlement agreement was entered into between the parties and signed on July 17 and 19. Pursuant to this settlement agreement, approved by the Regional Director, the Company agreed not to maintain any rule prohibiting em- ployees from soliciting on behalf of the Union on company premises during the nonworking hours. It also agreed and posted a notice that it would not in any other manner interfere with, restrain, or coerce its employees in the exercise of their rights guaranteed by Section 7 of the Act. This notice bears the date of August 6, 1962. However, the complaint in the instant case (arising out of a preelection speech) alleged that the Respondent, by its supervisor and agent, William A. Spicer, on or about July 25, 1962, threatened its employees with the loss of benefits and economic reprisals if they selected International Association of Machinists, AFL-CIO, as their collective-bargaining representative-thus the 8 ( a) (1) allegation herein. Foreman Spicer's Version Supervisor Spicer testified that he spoke to the employees in his department the morning before the machinists' election. Spicer's accepted testimony in this con- nection reads: The purpose of the talk was to inform them that we would be voting the following day. I wanted to urge each one of them to vote. I told them that 600 DECISIONS OF NATIONAL LABOR RELATIONS BOARD there would be a team of two men that would come to our department and indicate it was time to vote at which time they would be given the signal to shut their machines down and file out of the department and to vote. I told them that I wanted to answer a question that had been asked me by several of the employees concerning what would be done if and when the union was brought in and I told them that up until this time I had no qualified answer for them and this was the only way I could answer it: That when the union was voted in and the negotiations were negotiated that they could end up with more or they could end up with less or they could end up with the same thing. I said, "Is there any questions?" There were no questions and I said, "I want to urge you again to go up and vote and let your conscience be your guide." Spicer reaffirmed that the above-quoted testimony were the exact words that he said at that time and that he used no other words. Further, he had been specifically advised by Counselor Frierson as to the words he should use. He explained that at a meeting in Fogle's office the afternoon before he talked to the employees, he was so instructed and he followed with the statement the words spoken were the ones checked and authorized by Respondent Counsel. Spicer impressed the Trial Ex- aminer as a sincere, straightforward, and dependable witness. He was a man of deep religious convictions and one who, in the estimation of the Trial Examiner, would live up to his oath. General Counsel's Witnesses The General Counsel's witnesses attribute statements to Spicer to the effect that when the Company negotiated with the Union, negotiations would not start from the wages they were presently getting, but would start at the bottom. So testified Bobby H. Neal. Witness Sam Maynard, one of the complainants, quoted Spicer as saying: "If you vote the Union in, you automatically lose all the rights you now have, all of your benefits you now have." He said, "You will lose them and start negotiating from the minimum wage." Witness John Spence, also a complainant, testified that Spicer said "he wanted to make it clear to us that if we voted the Union in that our pay raises, and fringe benefits and insurance would be done away with; that we would have to start out with the base rate and chances were that we would have to pay for our own insur- ance." However, employee Willis Green testified that Spicer called them together and said, "'Now boys,' he said, `tomorrow is the day that you vote.' And he says, `I want you to go vote the way you want to.' He said, `I cannot guarantee you what you will draw.' He said, `You may draw more or you ,may draw less or you may draw the same.' " He further testified that he neither heard nor understood Spicer to say that if the Union was voted in everybody would start back at the mini- mum wage without any benefits and might have to pay for their own hospitalization. The Trial Examiner was favorably impressed with the objectivity of, and by the demeanor of, Green and accepts his version of Spicer's statements anent contract negotiations if the Union won the election. The Trial Examiner finds no threats of loss of benefits or economic reprisals in Spicer's remarks, and accordingly will recommend that the 8(a) (1) allegation involved be dismissed. The 8(a)(3) Allegations The complaint alleges discharge of, and refusal to reinstate, P. W. Box, Sam Maynard, Jr., and John Spence because said employees joined or assisted the Union or engaged in other protected concerted activities for the purpose of collective bar- gaining or other mutual aid or protection in violation of Section 8(a) (1) and (3) of the Act. Respondent's defense was that these employees were discharged for cause and without antiunion motivation. The burden of Respondent's plea was that shortly before Box, Maynard, and Spence were discharged, management learned, through fellow employees of Box and Maynard that there was a deliberate campaign to hold down production in the polishing and buffing department. Box and Maynard were leaders responsible for the slowdown. The reason assigned for Spence's dis- charge was that of falsifying company production records-listed as a cause for immediate discharge under the plant rules. The Sitdown Strike Shortly after the I.A.M. union effort failed, an organizational drive was com- menced by United Steelworkers. Box and Maynard were the prime movers or CRANE COMPANY 601 leaders in this drive. The record supports the fact that management had no knowl- edge of the Steelworkers' campaign nor did it know that Box or Maynard were in- volved. There are, however, two incidents, in the nature of concerted activity, for which activities, if the Company had discharged Box, Maynard, and Spence, it may have been liable under the Act. The first incident involved a situation which occurred when the plant maintenance department started to board up the windows and ventilators preparatory to the onset of cold weather. It appears that the men had just returned from a "break" and observed the maintenance carpenter in the act of nailing wooden coverings over the ventilators. A petition, directed to Spicer, was drawn up forthwith and circulated among the employees, and was signed by 25 or more. In the words of General Counsel's witness Neal, the petition protested the closing of the ventilators and recited "you men all know how important fresh air is to the polishers and buffers." Neal narrated: The men worked about an hour, went to lunch, and upon their return, seeing three of the windows closed and a fourth window in the process of being closed, all but two of the men failed to start their machines and return to work-and "everyone just sat down until they could get the windows unbarricaded." Neal testified that Foreman Spicer came down from upstairs and stopped in front of the department asking who was the speaker for the bunch. He recited that no one answered and finally Maynard said, "If no one else don't want to talk, I will." After a short discussion with Maynard, Spicer called the fellows together in a group and told them to go back to work and he would see that the windows would be opened up. Spicer's testimony in this connection is as follows: The second shift supervisor in the assembly department had asked the plant engineer if he would close the windows because it was beginning to get cool in the plant and he started a man on the project and the following morning he carried the project on through and he started putting windows in our depart- ment, and three or four men came to me and asked me if they had to be closed and I said I didn't think they did, but I would find out and as I recall, there was a petition that came around to the effect that the men did not want the windows closed. I told the men on the end of the line to pass the word around that I would do all I could to get the windows open and I left the department to look for Mr. Willers, who is sometimes hard to find. I called his office- He is our plant engineer. He was not in his office and I took a tour around the plant and did not find him and I came back to the department and told the men on the head of the line again that I could not find Mr. Willers, that I would continue to look for him and to tell the boys that I was working on it. I didn't find him. I got word that he was out of the plant on business. So, I went to the plant superintendent, Mr. Stromsoe, and I told him all the details and he said for me to go back to the department and tell Dave Weathers, the man who was putting the windows in.... And I told Dave that Clyde had told me to leave the windows out and to take the windows out that he had already put in and Dave's answer to me was that he worked for Mr. Willers and he had been told to put the windows in and he would have to continue to put them in until Mr Willers told him to take them out. So, I again went to the man on the head of the line and said that there was a misunder- standing, I am still working on it and I will get an answer for you as quick as I can. I looked for Mr Willers again, hoping that I could find him and I was 20 minutes late getting up to lunch It was 20 minutes until 12.00 when I finally got to lunch I ate my lunch in 15 minutes and hurried back down to the department and when I walked into the department the machines were all off and the men were sitting at the machines idle. I immediately knew-thought that I knew why, and I walked to the head of the second line and I just said loud enough for them to hear me, "Who is going to speak for this group," and I took a step or two down the line and one or two men pointed to Sam Maynard and Sam started toward me and as T started toward him Gene Vincent walked out in front of me and I met them both at once and they both said in effect that all of the boys had decided that they were not going to work until the windows were taken out and I said-T called the men to me then. I just motioned for them to come to me and I said. "T would advise you to go back to work, because T am working on it and I will have an answer for you in five or ten minutes." They all went back to work and I again went up to Mr. Stromsoe, who was having lunch with Mr. Fogle and 602 DECISIONS OF NATIONAL LABOR RELATIONS BOARD I told them that there was a very unpleasant situation that had happened and that I had to have an answer and Mr. Stromsoe told me very emphatically to go downstairs and take the windows out myself under his orders and I went downstairs and started to tearing them out of the wall with my bare hands, because I had no tools, at which time Dave Weathers came over with his tools and said , "Bill, if I've caused you this much trouble, I will help you take them out," which he did and they were taken out. Q. (By Counsel FRIERSON.) Did the fact that fellow employees designated Maynard or the fact that Maynard did talk to you at that time have any- was that any reason for his later termination? A. No, sir. No, sir. Rationale on Sitdown and Grievance Activities The Trial Examiner accepts, demonstrable as a fact, Spicer 's statement that Maynard was not discharged because his fellow employees designated him as spokes- man or because he was a leader in union activity . Nor was his subsequent participa- tion as a member of grievance committee which a dozen of the workers met and organized for the purpose of handling such situations as the ventilator incident. The same is true with reference to the discharge of Box These two men were discharged , as will be developed more fully hereinafter , because they engaged in and were in a great measure responsible for a deliberate campaign to hold down production . With reference to the "sitdown " of the crew of buffers and polishers, the law is well settled that employees who walk off the job en masse because of unpleasant working conditions are engaged in a concerted activity for mutual aid and protection within the meaning of Section 7 of the Act. N.L.R.B. v. Washington Aluminum Company, Inc., 370 U.S. 9. The law is equally well settled that the formation of an employee grievance committee is a protected concerted activity. As stated above, neither Maynard nor Box suffered discriminatory treatment or discharge for engaging in such protected activities. Cause of the Discharges If the men were having difficulty in adjusting to plant conditions and production requirements in this comparatively new industry , certainly the supervisory person- nel encountered their share of problems upon the arrival of the new general manager, Harrison . Particularly was this true with Spicer and Assistant Supervisor Amaul Ring because of the obvious low production of their department . As heretofore indicated , Harrison and his staff of technicians and accountants demonstrated that something was radically wrong in production . Accordingly , in the vernacular, he "put the heat on" the foreman . At this time information came to Spicer that there was a deliberate campaign by some persons to hold down the amount of production- Box and Maynard were the leaders . For some time Spicer had suspicioned Maynard and Box as being responsible , but he felt that he did not have sufficient proof based upon previous information to take action . Now, Spicer reported that fact to Plant Superintendent Fogle. Fogle was in charge of labor relations . Spicer's credited testi- mony in this connection is as follows: I went to Mr. Fogle because I figured it was a labor relations problem. I went directly to Mr. Fogle with tears in my eyes practically , because outside of my department there is two things in this world that mean more to me than my department and that's Jesus Christ and my family, and I went to Roy with tears in my eyes and I said, "Roy, I've got the ultimatum. My department is low. My hands are tied behind me because somebody is tying them and I can't do any more than I am doing now and I 've got to have help from somebody else." He went to Mr. Harrison with the problem and the answer came back to me from Mr. Harrison, "You find out who it is and I don't give a damn who it is, if it is the whole department they are going to all go," and that's the answer that came back to me from Mr. Harrison. . . . I had questioned several men trying to have them pinpoint or to name names. Several of the men were reluctant to say exactly who it was. One man in particular said it was Pete Box. One man said that he had been approached by a man that had sent a message by Sam Maynard and several insinuations that that was who it was. . . . They were reluctant because of the fact that they had to work in the department with the men . They didn't want to put themselves on a spot CRANE COMPANY 603 with the men in question or their fellow employees and they seemed a little afraid. Spicer, concluding that he had sufficient proof that Box and Maynard were re- sponsible for causing the slowdown, reported the matter and recommended the dis- charges. Spicer had previously confronted Maynard and Box and queried them as to their connection with the slowdown. Both of them denied complicity. Significantly, both Box and Maynard produced at the rate of 100 percent or better, as did Spence who was discharged for "falsifying company records." There is considerable testimony in the record with reference to the method of reporting production by employees. There is evidence that there may have been confusion in the minds of some of the employees. Suffice to say, everyone knew that it was a company rule to make a written report of production of finished prod- ucts. In the case of unfinished pieces it was only necessary to report the time spent on a job, but this did not obtain in reporting finished pieces. Some of the employees engaged in the practice of surreptitiously reporting only a given number of finished pieces at the end of a shift, while they hid behind machines the remainder of the finished fittings, or otherwise covered them up out of sight of the next shift. The remaining parts were reported and counted as the following day's production. Some of the employees reported their full production. Production of finished pieces was regularly posted on the bulletin board where all might observe the production of any individual. Box and Maynard took to task certain of the employees who were factually reporting their finished production. Certain of these employees came to Spicer and importuned him to discontinue the practice of posting figures of finished production. Their assigned reason was that some of the fellows would "get on them" for running too many pieces. The persons complained of were Maynard and Box. Spicer confronted Maynard and Box with this charge, but they denied that they had urged others to hold down production, and they cited their own production records of 100 percent. However, management eventually found the charge to be true and discharged both of them for violating the plant rule of deliberately restrict, ing output by telling other employees to hold down production. In so doing, management acted within its rights. Spence was discharged for falsifying company records by reporting less produc- tion than he had made. Spence admitted that he had not reported his full produc- tion , but offered the excuse that he did not know that it was contrary to the company rule and punishable by discharge for the first offense. Spence, a fast worker, had been warned about being away from his machine and loafing in other departments. His attitude was that as long as he completed 100 percent there was nothing the Company could do about it. He was discharged because of holding back and not reporting finished production as required by company rules-a proper exercise of a prerogative of management. Conclusion In conclusion, the record clearly establishes that Maynard, Box, and Spence were discharged for violation of posted company rules and not because of their union activities. Accordingly, it is found that the General Counsel has not established his burden of proof by the preponderance of the credible evidence, and it will be recommended that the 8 (a) (3) and (1) counts in the complaint be dismissed. CONCLUSIONS OF LAw 1. The operations of Respondent Crane Company affect commerce within the meaning of Section 2(6) and (7) of the Act. 2. United Steelworkers of America, AFL-CIO, and International Association of Machinists, AFL-CIO, are labor organizations within the meaning of Section 5 of the Act. 3. Respondent has not engaged in unfair labor practices within the meaning of Section 8 (a) (1) and (3) of the Act. RECOMMENDATION In view of the foregoing findings of fact and conclusions of law, it is recom- mended that the complaint be dismissed in its entirety. Copy with citationCopy as parenthetical citation