Crystal Springs Shirt Corp.Download PDFNational Labor Relations Board - Board DecisionsJun 30, 1975218 N.L.R.B. 1196 (N.L.R.B. 1975) Copy Citation 1196 DECISIONS OF NATIONAL LABOR RELATIONS BOARD Shaw Industries, Division of Crystal Springs Shirt Corp. and Mississippi Joint Board, Amalgamated Clothing Workers of America , AFL-CIO. Cases 26-CA-5174,26-CA-5212, and 26-RC-4785 June 30, 1975 DECISION, ORDER, AND DIRECTION OF SECOND ELECTION BY CHAIRMAN MURPHY AND MEMBERS JENKINS AND KENNEDY On February 28, 1975, Administrative Law Judge Joel A. Harmatz issued the attached Decision in this proceeding. Thereafter, Respondent and the Charg- ing Party filed exceptions and supporting briefs, and the General Counsel filed cross-exceptions and a supporting brief. Pursuant to the provisions of Section 3(b) of the National Labor Relations Act, as amended, the National Labor Relations Board has delegated its authority in this proceeding to a three-member panel. The Board has considered the record and the attached Decision in light of the exceptions and briefs and has decided to affirm the rulings, find- ings,' and conclusions2 of the Administrative Law Judge and to adopt his recommended Order. ORDER Pursuant to Section 10(c) of the National Labor Relations Act, as amended, the National Labor Relations Board adopts as its Order the recommend- ed Order of the Administrative Law Judge and hereby orders that Respondent, Shaw Industries, Division of Crystal Springs Shirt Corp, Shaw, Mississippi, its officers, agents, successors, and assigns , shall take the action set forth in the said recommended Order, except that the attached notice is substituted for that of the Administrative Law Judge. IT IS FURTHER ORDERED that Case 26-RC-11785 be, and it hereby is, remanded to the Regional Director for Region 26 for the purpose of opening and counting the challenged ballots of Annie Ruth Cail, Jane Ella Reed, and Viola Vineyard, and thereafter preparing and causing to be served on the parties a revised tally of ballots. If the revised tally of ballots shows that Petitioner, Mississippi Joint Board, Amalgamated Clothing Workers of America, AFL- CIO, has received a majority of the valid ballots cast in the election, the Regional Director is ordered to certify it as the collective-bargaining representative of the employees in the appropriate unit. IT IS I1URTHER ORDERED that if the revised tally of ballots shows that a majority of the valid ballots cast 218 NLRB No. 181 in the election were not for the Petitioner the Regional Director for Region 26 shall conduct a new election at such time as he deems that the circum- stances permit the free choice of a bargaining representative. [Direction of Second Election and Excelsior foot- note omitted from publication.] 1 The Respondent and Charging Party have excepted to certain credibility findings made by the Administrative Law Judge. It is the Board's established policy not to overrule an Administrative Law Judge 's resolu- tions with respect to credibility, unless the clear preponderance of all of the relevant evidence convinces us that the resolutions are incorrect . Standard Dry Wall Products, Inc., 91 NLRB 544 (1950), enfd . 188 F.2d 362 (C.A. 3, 1951). We have carefully examined the record and find no basis for reversing his findings. 2 In the absence of exceptions thereto , we adopt pro forma the Administrative Law Judge's recommendation that the allegation that Respondent violated Sec . 8(a)(l) of the Act by implementing the new base rates be dismissed. APPENDIX NOTICE To EMPLOYEES POSTED BY ORDER OF THE NATIONAL LABOR RELATIONS BOARD An Agency of the United States Government After a hearing at which all sides had a chance to give evidence, the National Labor Relations Board has found that we violated the National Labor Relations Act, and has ordered us to post this notice. The Act gives all employees these rights: To engage in self-organization To form, join, or help a union To bargain collectively through a repre- sentative of their own choosing To act together for collective bargaining or other mutual aid or protection To refrain from any or all these things. WE WILL NOT do anything that restrains or coerces employees with respect to these rights. More specifically: WE WILL NOT discharge, refuse to reinstate, or otherwise discriminate against employees for joining or supporting Mississippi Joint Board, Amalgamated Clothing Workers of America, AFL-CIO, or any other union. WE WILL NOT interrogate employees concern- ing their union activities or the union activities of other employees. WE WILL NOT threaten employees that they will lose their jobs or that we will close the plant if the employees select a union to represent them. WE WILL NOT withhold any benefits because our employees have engaged in activities on behalf of a union. WE WILL NOT maintain any rule preventing our employees from soliciting on behalf of any union during their nonworking time. SHAW INDUSTRIES 1197 WE WILL NOT maintain any rule which pre- cludes our employees from distributing literature on behalf of any union during nonworking time in nonworking areas. WE WILL offer full reinstatement to Annie Ruth Cail and Jane Ella Reed to their former jobs or, if those jobs no longer exist, to substantially equivalent ones, with backpay plus 6-percent interest. WE WILL make employees whole for losses sustained as a result of a delay in increasing base rates, with 6-percent interest. SHAW INDUSTRIES, DIVISION OF CRYSTAL SPRINGS SHIRT CORP. DECISION STATEMENT OF THE CASE JOEL A. HARMATZ, Administrative Law Judge: The above consolidated proceeding was heard in Greenville, Mississippi, on November 14, 15, and 16, 1974, upon a charge filed in Case 26-CA-5174 on June 27, 1974; a charge filed in Case 26-CA-5212 on July 22, 1974, and a consolidated complaint issued on August 23, 1974, alleging that Respondent independently violated Section 8(a)(1) of the Act by coercively interrogating employees concerning union activity, by threatening reprisals for union activity, by maintaining an unlawfully broad no-solicitation, no- distribution rule, and by withholding benefits and then granting benefits to discourage union activity. The consoli- dated complaint further alleged that Respondent violated Section 8(a)(3) of the Act by discharging Jane Ella Reed, Annie Ruth Cail, Emma Johnson, and Gloria Donaldson. Respondent in a duly filed answer denied that any unfair labor practices were committed. The petition in Case 26-RC-4785 was filed on May 6, 1974. Thereafter, pursuant to a stipulation for certification upon consent election, an election by secret ballot was conducted on July 3, 1974, among employees in the agreed-upon collective-bargaining unit. At the conclusion of the election, the tally of ballots showed that of approximately 107 eligible voters, 96 ballots were cast, of which 45 were for representation by the Petitioner, 46 were against, and 5 ballots were challenged. The challenged ballots were sufficient in number to affect the results of the election. Petitioner, after the election, filed timely objec- tions alleging misconduct by the Employer affecting the results. Thereafter, the Regional Director for Region 26 conducted an investigation of the challenges and objec- tions and, on August 23, 1974, issued and served on the parties his report on objections and challenges and order directing hearing. In his report, the Regional Director recommended to the Board that the challenge to the ballot of Viola Vineyard be overruled, but not opened until the remaining challenges are resolved. He further found that 1 After close of the hearing the General Counsel filed a motion to correct the official transcript, and, consistent with my recollection and the sense of the challenges to the ballots of Essie Selmon, Jane Ella Reed, Annie Ruth Cail, and Emma Johnson, together with the Petitioner's objections, raised issues best , resolved through record testimony, and further, that, as these issues, except for the challenge to the ballot of Essie Selmon, involved matters alleged as unfair labor practices in Case 26-CA-5174, he recommended consolidation of those issues for determination in said unfair labor practice proceeding. Thereafter, the Employer filed timely excep- tions to the Regional Director's Report, urging that the objections be overruled, and that the consolidated hearing exclude all issues pertaining to the election. By order directing hearing dated November 6, 1974, the Board found no merit in the Employer's exceptions, and ordered a consolidated hearing, as per the Regional Director's recommendations. Prior to conclusion of the hearing, all parties were afforded the opportunity to present all available, competent evidence, and to participate fully in the proceeding. Subsequent thereto, the General Counsel, the Charging Party-Petitioner, and the Respondent-Employer filed posthearing briefs, which have been carefully considered. Upon the entire record' in this consolidated proceeding and from my observation of the witnesses while testifying, I hereby make the following: FINDINGS OF FACT 1. THE BUSINESS OF THE EMPLOYER The Respondent-Employer is a corporation with a place of business in Shaw, Mississippi, from which it is engaged in the manufacture and distribution of shirts and blouses. During the 12-month period preceding issuance of the complaint, a representative period, Respondent-Employer in the course of said operations purchased and received at its Shaw, Mississippi, location, products valued in excess of $50,000, shipped directly from points outside the State of Mississippi, and during that same period Respondent- Employer sold and shipped from its Shaw, Mississippi, location, products valued in excess of $50,000 directly to points located outside the State of Mississippi. The consolidated complaint alleges, the answer admits, and I fmd that Respondent is, and at all times material, has been an employer engaged in commerce within the meaning of Section 2(6) and (7) of the Act. II. THE LABOR ORGANIZATION INVOLVED The complaint alleges, the answer admits, and I fmd that the Charging Party-Petitioner is a labor organization within the meaning of Section 2(5) of the Act. IH. THE ALLEGED UNFAIR LABOR PRACTICES A. The Issues As should be obvious from the foregoing, the issues in this consolidated proceeding are not atypical of those arising where, in an initial organization context, employers are accused of coercing and intimidating employees to the matters set forth therein , the transcript is hereby amended in certain respects. 1198 DECISIONS OF NATIONAL LABOR RELATIONS BOARD impair their freedom of choice and to restrain their activity on behalf of a labor organization. Thus, the complaint and the Union's objections to the election describe numerous efforts to unlawfully thwart employee organization, includ- ing acts of coercion by supervisors, restrictive rules impairing union activity, coercive speeches by prominent company officials, the manipulation of benefits to influ- ence employee choice, and the discharge of four union supporters. The issues presented are primarily factual and turn upon the resolution of conflicting testimony. Also involved are questions going to the results of the first election, which remain in an inconclusive state due to the existence of five unopened challenged ballots.2 Resolu- tion of these challenges could very well shift the result appearing on the initial tally of ballots. In addition to the challenges, the Union's objections to the election, which correspond with certain of the unfair labor practice allegations, require resolution, for they will determine whether a rerun election will be necessary, if the final result of the first election fails to reflect that the Union has been designated as the majority employee representative. B. Background Respondent acquired the production facility involved here in January 1974. However, prior thereto, production operations were conducted at that same location by Respondent's predecessor for several years, and many of Respondent's employees have an employment history at the plant which predates Respondent's acquisition thereof. The size of Respondent's work force appears to be of a shifting nature, but normally is in the range of 100 employees.3 It does not appear that these employees, at any time, before or since Respondent's acquisition of the Shaw facility, were subject to union representation. The organization drive began in early March 1974.4 At that time Annie Ruth Cail, a former employee not working because of pregnancy,5 was visited by one of the Union's organizers, James McCormick. Cail at that time signed a card, and agreed to contact other employees to enlist their support of the Union. On March 6, five employees attended a meeting at Cail's home for that purpose. The employees in attendance included Ollie McWilliams, who subsequently, in late April, was promoted to a supervisory position. All employees, including McWilliams, at that time signed union authorization cards. McWilliams at that meeting obtained blank authoriza- tion cards, in order that she too could assist in soliciting additional support for the Union. In addition, that same evening, McWilliams met with McCormick at her home. Only one other employee, Jane Ella Reed, was present at that meeting, and Reed at that time signed an authoriza- tion card. Subsequently, Jane Ella Reed solicited signa- tures to authorization cards and in late March or early' April held an organizational meeting at her home. 2 As heretofore indicated the challenge to the ballot of Viola Vineyard is not in dispute here. The Regional Director previously overruled the challenge to Vineyard's ballot, but directed that it not be opened until after resolution of the disputed challenges to the ballots of Essie Selmon, Annie Ruth Cail, Emma Johnson, and Jane Ella Reed. s There were approximately 107 eligible voters in the July 3, 1974, election. 4 Unless otherwise indicated all dates refer to 1974. On May 6, the Union filed its election petition. During the critical preelection period the Respondent actively campaigned against the Union. Prior to the election, which was conducted on July 3, Jane Ella Reed and Annie Ruth Cail were terminated on the same day, June 24. Two days later, on June 26, Emma Johnson was discharged. On July 12, Gloria Donaldson, who on July 3 had acted as a union observer at the election, was also discharged. C. Interference, Restraint and Coercion 1. No-solicitation, no-distribution rule The complaint alleges that Respondent violated Section 8(a)(1) of the Act by maintaining the following rule: "No soliciting or passing out of hand bills will be allowed at any time on company property." This rule appears in a document which includes a listing of some 22 plant rules, and which, as a matter of routine, is shown to all employees. The rule as written is broad enough to restrict, and would be understood as precluding anywhere on company property, both union solicitation and the distribution of union materials. Under settled authority such limitations on union activity by employees "must be presumed to be an unreasonable impediment to self-organization and therefore discriminatory in the absence of evidence that special circumstances make the rule necessary in order to maintain production or discipline."6 Respondent, by way of defense, points to no evidence, and, indeed, the record would hardly support an argument, that so broad a rule could be justified by special considerations related to the maintenance of production and discipline. On the other hand, Respondent does argue that, as the rule was not adopted for the purpose of impairing legitimate union activity, and not enforced against union activity, no illegality would inure. There is no merit in this contention. The express terms of the rule include all forms of solicitation and distribution, and there is • no evidence whatever that union activity was excepted from its ban or that employees were informed either of any such exception or, that, in maintaining the rule, Respon- dent had no intention of applying it to union activity. Joe Tittle & Sons, Inc., 174 NLRB 517 (1969), relied upon by Respondent, is distinguishable, for there, unlike the instant case, the Board's conclusion that the rule had no intended application to employees was predicated upon record facts. Respondent's claim here is based solely upon argument and there is nothing in the record having the slightest indication that employees had any basis for believing that Respondent would condone union solicitation or distribu- tion conducted on the premises of the plant. Here, as in Wagner Electric Corporation 216 NLRB No. 77 (1975), the Respondent has failed to demonstrate, by factual proof, that employees bent on soliciting or 5 Shortly thereafter, on March 25, Cad returned to active employment status. 6 See Peyton Packing Company, Inc., 49 NLRB 828, 843, 844 (1943). See ,Republic Aviation Corporation v. N L R B., 324 U.S. 793, 803-804, with respect to restrictions upon the right to engage in union solicitation, and Stoddard-Quirk Manufacturing Co., 138 NLRB 615 (1962), for the standards governing employee distribution of union literature. SHAW INDUSTRIES 1199 distributing on behalf of the Union knew, or should have known, that in doing so they would not be risking violation of the published plant policy. Accordingly, I find that the Respondent violated Section 8(a)(1) of the Act by maintaining a rule which precluded employees from both engaging in union solicitation on nonworking time, and union distribution on nonworking time, in nonworking areas.? 2. Threats and interrogation a. Preliminary statement The General Counsel produced some nine witnesses who testified in substantiation of allegations of coercive threats and/or interrogation variously attributed to Respondent's President, Paul Bernstein; head supervisor, Pauline McClure; and supervisors, Eddie Crowe, Ola Fitts, and Marice Peacock.8 Each of these alleged incidents occurred prior to the election. Although at the outset of the hearing Respondent denied that certain individuals were supervi- sors or agents, prior to close of the hearing Respondent amended its answer so as to eliminate all such issues. b. By Eddie Crowe Eddie Crowe, at times material, was a quality inspection supervisor. In such capacity, she had regular contacts with the various sewing operators who testified on behalf of the complaint in this proceeding, since her duties included spot-checking their work. Annie Ruth Cail testified that in mid-June, Crowe, while at Cail's machine, asked what Cail thought of the Union. When Cail said she didn't know, Crowe asserted that Cail should not vote for the Union because it couldn't get her a job and could do nothing but cause a lot of trouble. Johnnie Wesley testified that in June or July, but before the election, she too was approached by Crowe, who asked if Wesley knew anything about the Union. When Wesley did not respond, Crowe repeated the question. Wesley then, in apparent reference to speeches made by Bernstein and/or production manager Richard Purnick, answered that she had only heard one side, and had not heard the Union's position. According to Wesley, Crowe then asked if she knew the plant would close if the Union got in. Wesley also testified that during said conversation, Crowe asked her how she would vote, but that she declined to answer. Genetta Reed testified that, about 1 week before the election, Crowe approached her at her machine and, after a comment about walking picket lines if the Union were to come in, asked Reed what she thought about the Union. Reed said she thought it was necessary. Also, during this 4 The General Counsel, in his brief, argues that the violation should also be based on enforcement of the rule in question . The complaint contains no such allegation, and specific evidence of enforcement does not appear in the record. Contrary to the General Counsel, f am unwilling to conclude that vague and general testimony by Plant Manager James Bevill that all 22 rules were enforced "to the best of my knowledge and ability" is tantamount to an admission that the one rule in controversy here was actually enforced- 8 The complaint alleged that supervisor Doris Boyd threatened an employee with plant closure . The record does not show that Boyd engaged conversation, Crowe stated that the plant would close if the Union were designated. Bobbie Bryson testified that about a week before the election, Crowe came to her machine and told her not to vote for the Union, and that the factory might close if the Union were designated. Also during this conversation, according to Bryson, Crowe asked her how she felt about the Umon. Bryson responded that she did not know much about it .9 In contrast with the foregoing, Crowe denied ever asking Cail anything about the Union, but claims that Cail asked her whether the plant would close if the Union came in. According to Crowe, Cail, Bryson, and Genetta Reed frequently questioned her about the Union and as to what consequences would follow if the Union came in. Crowe denied ever discussing the Union with Wesley. As to Bryson, Crowe denied that she ever inquired as to Bryson's feelings about the Union and further denied telling Bryson that the plant would close if the Umon came in. Crowe could not recall whether she told Genetta Reed that the plant would close if the Union were designated, nor could she recall ever having a conversation with Reed, before the election, in which the subject of the Union came up. I credit Cail, Wesley, Bryson, and Reed. I was favorably impressed with the demeanor of Cail and Wesley and in addition, with respect to Bryson and Reed, I note that, as incumbent employees at the time of the hearing, I doubt that they would have related false testimony prejudicial to Respondent. The testimony of all four portrayed Crowe as having engaged in a somewhat consistent pattern of conduct, which in contrast with Crowe's testimony has a strong ring of plausibility. Crowe was totally unimpressive. She did not respond to the accusations made against her with direct, forthright denials but seemed even to grope and evade the most leading and exculpatory of questions put to her by Respondent's own counsel. Her effort to mitigate the testimony of Cail, Bryson, and Reed by claiming that they would question her about the Union seemed improbable and contrived. None of the employees who testified that they had some role in the union campaign attested to a willingness to run the risks of any overt conduct in furtherance of that effort. In this light, it is difficult to believe that Cail, Bryson, and Reed would have raised such matters with Crowe. That Crowe fell upon this explanation loosely as a convenient catchall is suggested by her first indication that she could not recall discussing the Union with Genetta Reed, and her subsequent inclusion of Reed in the group of employees who repeatedly asked her questions about the Union. Based upon the credited testimony, I find that in each of the separate incidents related by Cail, Wesley, Reed, and Bryson, Respondent coercively interrogated employees thereby violating Section 8(a)(1) of the Act. I further find in any such conduct and the allegation is dismissed insofar as it pertains to her. 9 In its brief, Respondent claims that the testimony of Bryson and Reed is contradictory. This assertion rests upon the assumption that Bryson and Reed were giving separate accounts of a single conversation with Crowe, The record indicates to the contrary, and I am satisfied that Bryson and Reed were each testifying to separate conversations with Crowe, one of which occurred during the morning hours and the other in the afternoon. Accordingly, I see no contradiction in the accounts of Bryson and Reed. 1200 DECISIONS OF NATIONAL LABOR RELATIONS BOARD that Respondent violated 8(a)(1) by Crowe's threats to Wesley, Reed, and Bryson that the plant would close if the Union were designated. c. By O1a Fitts At times material, Fitts was a line supervisor whose authority covered several sewing operations, from the sewing of buttons to the collaring of the clothes. Mae Ella Davis testified that on July 2, following a speech made by Paul Bernstein, Fitts, at Davis' machine, asked Davis what she thought about the speech. Davis said she didn't know. Fitts indicated that she (Fitts) needed her job. Davis advised that she needed hers too. Fitts replied, "Well, you know what to vote then." Johnnie Wesley testified that on the day of, but prior to the election, Fitts approached her at her machine, stating, "Johnnie, I came to see how you are going to vote." Wesley advised that she didn't know, and couldn't say. Both laughed, and Fitts then asked if Wesley had heard Bernstein's speech. Wesley said she had. Fitts asked if she understood what was said and Wesley said she thought she did. Fitts advised that if a majority of the employees voted yes, "we won't have a job." According to Wesley, the conversation ended with Fitts stating that if the Umon went through, "the plant would surely close." Genetta Reed testified that on the day before the election , Fitts came 'to her machine and told her to vote no, because if she voted yes "the Union will come in and the plant will close down." Fitts, upon initial examination by Respondent's counsel as to whether, before the election, she discussed the Union with any employees, responded by indicating that she could not remember "too much what was said," and that she didn't "remember really having a conversation with the employees." After further efforts by said counsel to refresh her recollection,fFitts, as to Mae Ella Davis, testified that Davis asked'her if the factory would close if the Union got in. -Fitts relates that she `responded to Davis by indicating that she,did not know. Fitts eventually admitted that she igfocmed Davis that she 4(Fitts) needed her job, and that Davis needed her's too. Fitts denied that she told Davis how to vote. As to Johnnie Wesley, Fitts testified that she did have a conversation concerning the Union with Wesley. After indicating that she could only remember Wesley telling her that she had heard the Company's view and wanted to hear the Union's, Fitts went on to deny that she came over to Wesley's machine to see haw the latter was going to vote, and further denied making the threat of plant closure. As to Genetta Reed, Fitts denied having a conversation on .July 3 with Reed concerning the Union or the election. On cross-examination , Fitts, when confronted with her pretrial affidavit, did admit asking certain employees who were her "friends" how they felt about the Union. I credit Davis, Wesley, and Reed. Reed's testimony as to the conversation she had with Fitts on July 2 was not met by a denial on the part of the latter, since Fitts was not examined with respect to any conversations with Reed on that day. Insofar as Fitts denies the statements imputed to her by the General Counsel's witnesses, her testimony is' considered unreliable. Davis, an incumbent employee, and Genetta Reed, also employed by Respondent at the time of the hearing, afforded forthright and entirely credible accounts of the alleged unfair labor practices attributed to Fitts. The testimony of Wesley is consistent with the pattern of conduct imputed to Fitts which was limited to the day preceding and the day of the election. Fitts, on the other hand, confessed to a lack of recollection which rendered suspect the entirety of her testimony. Indeed, even after efforts on the part of counsel for the Respondent to refresh her recollection, Fitts responded with occasional imprecision and contradiction, and repeated assertions of an inability to remember. In my opinion, the conduct attributed to Fitts by Davis, Wesley, and Reed was sufficiently interrelated and compacted in, time to invite direct and clearly expressed denials, if in fact the testimony of her accusers was imagined, erroneous, or a byproduct of misunderstanding. Accordingly, based upon the credited testimony of Davis, Wesley, and Reed, I find that Respondent, through Fitts, on three separate occasions just prior to the election, independently violated Section 8(a)(1) by coercively interrogating employees concerning their union activity, and by threatening reprisals if the Union were designated in the election. d. By Pauline McClure At all times material Pauline McClure was the head supervisor, and exercised authority at the level between James Bevill, the plant manager, and all subordinate production and training supervisors. Annie Ruth Cail, without contradiction, testified that on the 21st of June, McClure came to Cail's machine, inquiring as to what Cail thought about the Umon. Call responded that she didn't know, and was then told, by McClure that if she had anything to discuss about the Union, Cail should feel free to come to either McClure or Bevill. Gloria Donaldson, over McClure's denial, testified to the effect that she had an identical conversation with McClure on July 2. Jane Ella Reed testified as to a conversation between herself and McClure which occurred prior to Jane Ella Reed's discharge after work, at a Piggly Wiggly Super Market, where both were shopping. McClure asked her what she thought about the speech that "the man" gave, and Reed responded that she did not know. McClure then told Reed, "you girls have got to get together and vote no." McClure was not examined as to Cail's version of their conversation of June 21. Cail's uncontradicted testimony is credited and, absent any showing of a legitimate basis for the McClure's questioning of Cail, and in the context of the other unfair labor practices found herein, I find that Respondent thereby engaged in a further act of coercive interrogation violative of Section 8(a)(1).10 McClure admitted to frequent conversations with Jane Ella Reed at the Piggly Wiggly, but denied that the Union 10 In the light of the above finding, the incident reported by Donaldson Donaldson's veracity, as is more fully discussed infra, I am unwilling to base is somewhat cumulative. But, in any event, in view of my doubts as to an unfair labor practice upon her controverted testimony. SHAW INDUSTRIES 1201 or the election was ever discussed or that she ever told Reed that the girls have got to get together and vote no. In my opinion, Reed's testimony in this regard is too vague to warrant a clear resolution of credibility. Apart from the references to "the man's speech," Reed's testimony does not identify when this alleged conversation occurred. Furthermore, critical to her testimony is the question of whether this was a reference to the Purnick or Bernstein speech; for, if the latter, since Bernstein spoke to the employees after the discharge of Reed, her account would be thoroughly incredible. The confusion is compounded by Reed's attempt to identify the speaker, since the informa- tion she supplied, considered against other matters of record, pointed to Bernstein, rather than Purnick. On this state of the record, Reed's testimony requires too many corrective inferences to form the basis for an unfair labor practice finding. e. By Marice Peacock According to Bonnie Williams, Marice Peacock, an admitted supervisor, on the morning of the day on which the election was held told Williams that if the employees voted "yes" the plant could close down. After this Williams left the plant to escort her daughter to the doctor. She returned to the plant at about 1 p.m. that day. Thereafter, Peacock and another supervisor, Doris. Boyd, were in the vicinity of Williams' machine. Williams asked Peacock what would happen if the Union came in, and Peacock, according to Williams, replied that the plant would close down. Boyd then said that she had worked at the plant for 11 years. Peacock then said that she had found another job. Peacock could not recall the conversation which Wil- liams described as having occurred on the morning of the day of the election. She denies ever telling Williams that the plant would be closed if the employees voted "yes. ",She admits, however, to a conversation with Williams that afternoon, in which Williams beckoned Peacock over to her machine and asked Peacock how she was going to vote. After this they exchanged views concerning Peacock's ineligibility, as a supervisor, to participate in the election. Boyd did not testify. I discredit Williams, because I was not sufficiently impressed with her demeanor to believe that after Peacock in the morning had informed her the plant would close, Williams would again later in the day have asked Peacock what would happen if the Union came in. Considering the lack of corroboration, the fact that Williams had quit Respondent's employ prior to the hearing, and the inherently suspicious nature of her testimony, I reject her account and shall recommend dismissal of the 8(a)(1) allegations based thereon. f. By Paul Bernstein On July 2, Bernstein, Respondent's president, who resides in New York, was present at the Shaw plant. He, at the time, during working hours, addressed the assembled employees concerning the organizational campaign and the impending election. The General Counsel claims that Bernstein in the course of his speech threatened to close the Shaw plant, if the Union were designated by a majority: Respondent, on the other hand, contends that Bernstein spoke from a prepared text, which is in evidence, and which, according to Respondent, is devoid of any such threat. In support of his position, the General Counsel adduced testimony from Johnnie Wesley, Genetta Reed, and Gloria Donaldson. According to Wesley, Bernstein in the course of his remarks stated that "if the Union got in the plant that he would pack up, move out, get out' and go somewheres else that there wasn't a Union at." Genetta Reed testified that Bernstein said "if the Union get in the plant the plant would ordinarily be closed down, the plant would be ordinarily closed down and `he had other factories that could do the same types of shirts that we did." Finally, Gloria Donaldson testified that Bernstein informed the employees that "if a union-calve into the plant, the plant would be shut down because people would rather buy a shirt from a nonunion plant, than shirts from a' plant that has . . . a union in it." As would be expected, the text of the prepared speech allegedly delivered by Bernstein lacks the direct threats set forth in the above testimony. Most closely approximating the references attributed to Bernstein, are the following extracts from the prepared statement:' Some of you have made the statement that Unions seem to work okay in some businesses and you ask why a union would not work here. There are many reasons that I could name but let us talk about some of them. By its nature, the shirt business isn't like the steel business or the automobile business. It doesn't take a big company to put in a shirt factory. Most shirt makers are non-union. Our compe- tition is all non-union. In most cases, if one of our competitor's plants is unionized; the competitor moves his operation to some other location that isn't union and starts again. Some shirt makers are like us and have more than one plant. We have four now and are looking at another location. -Our competitors make the same kind of shirts at each plant and if one of them goes union and can't compete anymore, they transfer that business to their non-union plants. When this election is over, our non-union competi- tors are still going to be making shirts somewhere and so am I. We came here not to close a plant - but to open one. On balance, I do not believe that the testimony of Wesley, Reed, and Donaldson represents an exact portray- al of Bernstein's spoken words. Although each imputes a direct threat of closedown to Bernstein , the variances in their respective accounts, at a minimum, suggest that they were not recanting his specific words, and lead me to conclude, without questioning their veracity in this regard, that all three were testifying as to their understanding of what was said, rather than the precise content of his statements . Based upon assessment of the testimony and 1202 DECISIONS OF NATIONAL LABOR RELATIONS BOARD considering the probabilities, I find that Bernstein's remarks were limited to those appearing in Respondent's Exhibit 6.11 However, the matter does not end there. I have heretofore found that, Respondent through the remarks of supervisors Crowe and Fitts, on the very day of Bernstein's speech, unlawfully threatened several employees with plant closure if the Union were successful. There is little doubt that Bernstein 's speech set the stage for these independent coercive expressions, and in the overall context, the intended import of his message cannot be separated from the more direct remarks made by Crowe and Fitts. But apart from the surrounding circumstances, I am satisfied that the" speech itself, standing alone, is sufficient_ to substantiate the allegation that Bernstein threatened to close the plant if the Union came in. Examination of the entire speech, with emphasis upon the portion set forth in the above text, reflects an effort to impress employees with facts rather than debatable matters, counterable argument, or prediction. Bernstein leads off by indicating why the Union would not work at Shaw, and then proceeds to elucidate that some competitors close and remove their plants when organized, while others transfer operations to their other existing facilities when that occurs. Thus, Bernstein's admonition that the Union would not work at Shaw, is expressed in unreserved terminology as to what always happens upon organization of a nonunion shirt factory, and on its face purports to convey "facts of life" in the shirt industry, rather free of any ambiguity as to what would occur at Shaw. In my opinion, this speech refers to plant closure in a context of certainty, while lacking in objectivity, as well as the flexible terminology of argumen- tation or prediction. Whatever his true intent, employees were squarely apprised of what Bernstein professed to do at Shaw, if the Union were to win the election. Anyone hearing this speech would be left with the impression that the Shaw plant would be saved from closure, in that event, only if Bernstein did not really mean what he was saying. I find that Bernstein's remarks exceeded the form of free expression protected by Section 8(c) of the Act, and contained an unambiguous threat of closedown. I find that Respondent thereby violated Section 8(a)(1) of the Act. 3. The base rate issue The production operators at the Shaw plant work under an incentive pay arrangement. Pursuant thereto , a stand- ard, daily output quantity exists for each operation. If an operator fails to produce at levels meeting or exceeding the assigned standard , their compensation for that day's work is limited to the minimum wage guaranteed by Federal law. As for those who meet or exceed their prescribed standard, Respondent maintains base rates which vary in amount depending on the operation involved, and which are intended to exceed the minimum wage . Such employees receive the higher base rate pertaining to their operation, rather than the minimum wage, as a reward for their productivity. Effective May 1, the Federally quaranteed wage was increased by law from $1.60 to $2 hourly. At that time, the base rates which had been in effect at Shaw were $2, $2.06 and $2.11 respectively. Obviously, after the new minimum wage became effective, some upward revision in the base rate schedule was necessary, if Respondent were to preserve the incentive principle. Accordingly, in late April or early May, about a week before the Union filed its election petition, Bevill spoke to the employees, informing them of the increased minimum wage and also announcing that new and higher base rates would be announced at a later date. According to Bevill, it was the Respondent's "plan" to put new base rates into effect 2 weeks after May 1. However, employees were not informed as to any such intention. On May 6, the RC_ petition was filed by the Union. Thereafter, Bevill made another speech to the employees, advising them that the new base rates could not be made effective because the Company had received the petition from the NLRB and felt it would be an unfair labor practice to enact the new base rates at that time. Thereafter, Respondent's production manager, Purnick, addressed the employees in an extemporaneous talk concerning the organization campaign. According to Purnick, he at that time sought to educate the employees as to certain experiences with union organization sustained by employees at Respondent's Hamburg, Arkansas, plant. He informed the employees that during the 3 -year period of negotiations at that location between the Employer and the Union, the employees were not granted a single wage increase or additional benefit, and that the Union upon conclusion of those negotiations left and had not since returned. Also, in his July 2nd speech, Respondent's president; Paul Bernstein, made the following observations concern- ing the deferral of base rate revisions at the Shaw plant: It was not the Company that filed the union election petition the first week of May right at the time the new minimum wage law took effect. The Union did this. Why did the union do this? The union knew that under the law, a company cannot make wage increases after a union election petition is filed. Under the law, I can't tell you what the Company would do if the Union were voted down in the election tomorrow. But, I can tell you that at our Hamburg plant where there was no union election pending, we increased the base rates when the minimum wage was raised. it Respondent's counsel testified that the speech in question was prepared by him, and that he followed the text during Bernstem 's delivery thereof on July 2. In connection with the finding that Bernstein simply delivered his remarks from the prepared text, I have not overlooked the observation of the General Counsel and the Charging Party that no testimony was elicited on behalf of Respondent that Bernstein made no departures from the prepared text. Nonetheless, I emphasize that my finding is predicated upon the unconvincing nature of the parol evidence offered by the General Counsel on this question. SHAW INDUSTRIES 1203 After the election, on July 8 or 9 new base rates were made effective at the Shaw plant, in the following amounts: $2.15, $2.25, $2.35, and $2.40.12 The complaint alleges that both the withholding of the new base rates as of May 13, 1974, and the implementation thereof as of July 8 or 9, independently violated Section 8(a)(1) of the Act.13 As the Board has held, "an employer confronted with a union organizing campaign should decide the question of granting or withholding benefits as he would if a union were not in the picture; if his course of action in granting or withholding benefits is promoted by the Union's presence, he violated the Act." The May Department Stores Company d/b/a Famous-Barr Company, 174 NLRB 770, 771 (1969). There can be no question in the instant case as to the basis for the delayed implementation of the new base rates. It is conceded that the Respondent had planned to put the new rates into effect in mid-May and failed to do so only because of the Union's petition. Nonetheless, Respondent argues that implementation of the new base rates as planned would have been unlawful,14 and the withholding of the new benefits was necessary to avoid that consequence. I do not agree. As indicated by the principles set forth above, an increase planned pnor to the commencement of an organization drive, which would have been granted thereafter, may be legitimately invoked since not related to the presence of a union. Furthermore, this is not a case where the withholding of benefits could be regarded as limited to a good-faith effort to avoid unlawful action.15 Quite to the contrary, the withholding was exploited by Respondent in a manner which hardly could be described as indicative of an interest on its part, of leaving the base rate issue to neutral status during the election campaign. For, on the day before the election, President Bernstein, in the context of other antiunion remarks, placed the onus for the withholding of the increased base rates upon the Union. The plain import of his remarks were to the effect that employees already had suffered impaired benefit levels because of their exercise of Section 7 rights. Here, as in American Paper and Supply Company, Container Division, 159 NLRB 1243, 1244 (1966), Bernstein "held out to the employees a benefit they would be receiving but for the Union." By withholding the increase in base rates because of the Union and in order to disparage the Union in the eyes of employees, I find that Respondent violated Section 8(a)(1) of the Act.16 As for the further allegation in the complaint that the implementation of the new base rate, after the election, was also violative of Section 8(a)(1), the General Counsel in his 12 Although in the past the base rates had covered only three different operations, the addition of a fourth, more difficult operation at the Shaw plant required installation of the additional base rate of $2.40 hourly. 13 The complaint also alleges that Respondent violated Sec. 8(a)(1) by statements allegedly made by Punuck that the wage rates of employees at Shaw were frozen because of the union campaign. It is noted that this is the substance of the above quote taken from Bernstein's July 2nd speech. Purnick denied making any such statement and also denied the testimony of Genetta Reed, Bobbie Bryson, and Jane Ella Reed that he stated that if the Union came in, the wages or benefits of employees at Shaw would be frozen. Here, as was true of the testimony concerning Bernstein's July 2nd speech, it is my impression that the parol testimony offered by the General Counsel was unreliable since reflective of the witness' comprehension of Purnick's remarks rather than his precise words. Indeed, if their testimony posthearing brief expresses no theory, - argument, nor authority in support of this proposition. It is true that the new benefits were at that time placed in effect though the validity or conclusiveness of the election remained in doubt; normally, the grant of new benefits at such times violates Section 8(a)(1) of the Act. See, e.g., Ambox, Incorporated' 146 NLRB 1520, 1521 (1964). However, in the particular circumstances of this case, it would be inappropriate to bring Board remedies to bear upon this issue. As heretofore found, the new base rates, but for the petition, would have been made effective prior to the election in mid-May. Indeed, as of May 1 the relationship between the old base rates and the increased minimum wage had compressed to the point of threatening the basic objectives. of Respondent's incentive system. Although Respondent unlawfully deferred its cure for the problem, having found this to have been the case, I shall recommend an effective remedy with respect to that phase of the transaction. However, having committed this latter viola- tion, Respondent ought not to be penalized by a further unfair labor practice finding, which would rest on the assumption that the Act precluded Respondent from eliminating the inequity in its incentive system until the question concerning representation were finally resolved. On the contrary, as the new'base rates were not excessive, and since, should a rerun election prove necessary, any adverse consequences upon employee choice resulting from this grant of benefits will be neutralized through other provisions of the remedy recommended herein, I find that it would not effectuate the policies of the Act to find this additional violation. Accordingly, I shall dismiss the allegation that Respondent violated Section 8(a)(1) of the Act by putting the new base rates into effect. D. The Alleged Discrimination 1. Annie Ruth Cail Cail, pnor to her discharge, had an employment history at the Shaw facility dating back to January 1968. It will be - recalled that Cail was the employee most responsible for the advent of the Union at the Shaw plant. Union Organizer James McCormick made his initial contact at the plant through Cail. She set up the first meeting of employees for promotion of the Union, arranged for McCormick to meet directly with other employees, and actively solicited employee signatures to union authorization cards. Eddie Crowe, the quality control supervisor, named Cail as one of three employees whom she considered as being in favor of the Union. were accepted, a stronger and more clear-cut violation would be made out than was spelled out by the allegation set forth in the complaint. I shall recommend dismissal of this allegation of the complaint. 14 H. A. Kuhle Company, 205 NLRB 88 (1973), cited by Respondent as authority for its view that the implementation of the new base rates as planned would have been unlawful , does not support that position. In Kuhle, the violation was predicated on the fact that the decision to give the increase did not predate the organization campaign , but was made in response to it 15 See e.g., N.L.R.B. v. Dorn's Transportation Company, Inc., 405 F.2d 706, 714, 715 (C.A. 2, 1969). 16 Hendel Manufacturing Company, Incorporate4 197 NLRB 1093, 1099- 1100 (1972), enfd. 483 F.2d 350 (C.A. 2, 1973). 1204 DECISIONS OF NATIONAL LABOR RELATIONS BOARD On Monday, June 24, at the end of the workday, Cail was discharged. Head Supervisor McClure testified that she recommended to Bevill that Cail be terminated after the latter failed to show improvement following oral warnings concerning her low production and poor quality of work. Although McClure testified that these alleged deficiencies were reported to her by the line supervisor, Ola Fitts, and the quality supervisor, Eddie Crowe, neither Fitts nor Crowe were examined as to Cail's performance. According to Bevill, some 3 weeks before her discharge, McClure had mentioned that Cail's production was low, and also that she had been observed talking to her fellow employees in violation of company policy. Bevill relates that he at that time asked McClure to talk to Cail about her production. Thereafter, McClure reported that the problem was continuing and Bevill again told McClure to talk to Cail. Subsequently, according to Bevill, he observed Cail, away from her work station, walking across the production floor, and told her to return to her machine. Bevill admittedly had no knowledge as to why Cail was away from her work station on that occasion. A few days later, Bevill related that Cail was again observed "doing these things" and her production was still low. According- ly, when McClure recommended her discharge, he con- curred. According to Cail, she at no time received any warning, either in writing or orally, as to any inadequacy in her work performance. With respect to production, she testified that two other girls who worked on the same operation, namely Bobbie Bryson and Genetta Reed, had a daily output exceeding her own by but 1 to 2 dozen daily. Bryson and Reed corroborated Cail in this respect. All three testified that in the period preceding Cail's discharge, no one made production (45 dozen shirts daily) on the single-needle cuff setting operation to which Cail had been assigned when discharged. Reed and Bryson further testified that prior to Call's discharge, they received no warnings about their low production, which at that time was well below the prescribed standard. No effort was made by Respondent to offset the corroborating testimony of Reed and Bryson17 by persuasive counterproof.18 On the question of whether Cail was warned about her work performance, I discredit McClure and Bevill. Call was a far more impressive witness, who testified in a forthright manner, and related facts honestly in the manner of one not fearful of the truth. I could not say the same for McClure, who manifested a somewhat limited capacity for recollection and a bent towards exaggeration. As for Bevill, my suspicion was aroused by his expressed concern for 17 Respondent in its brief points to the admission by both Reed and Bryson that they ultimately made production on the single-needle cuff setting operation. It is plain, however , that neither produced at standard on this operation until after they were issued formal warnings, and given trial periods to improve their production . All of this transpired well after the discharge in issue here. 18 In this connection , I note that in cross-examining Cail, Genetta Reed, and Bryson, Respondent's counsel appeared to be utilizing production records which, from his questions , seemingly reflected the percentage of standard made by all three at various tunes both before and after the discharge . No such records were offered in evidence. is I impute Crowe 's admitted suspicion of Cail's union sentiment to management generally. I am unwilling, however, to do so with respect to the knowledge possessed by Supervisor Ollie McWilliams . McWilliams was on Call's alleged frequent talking and roaming away from her work station. McClure's testimony is barren of any reference to this form of indiscretion, as was the testimony of Fitts, who was Cail's line supervisor. I am persuaded that Cail's termination was based entirely upon union considerations. Witnesses on behalf of Respondent could not point to a single act on the part of Call which would lend some explanation for the precipitant action, without prior warning, of effecting her discharge at the close of work on a Monday. Under such conditions the termination of, perhaps, the leading employee protagonist of the Union, whose union sentiment was suspected,19 in the context of an antiunion campaign, marked by numerous unfair labor practices, suffices to establish a prima facie case of unlawful discrimination. The defense, instead of countering, is sufficiently suspect to enforce the existence of a proscribed motivation. Thus, witnesses for the Respondent point to three distinct inadequacies in Call's work; namely, low production, poor quality, and excessive talking. However, they could get together on but one - low production. For while Bevill makes no reference to McClure's claim of poor quality, McClure makes no mention of Bevill's complaint concerning Call's alleged talking problem.20 Neither Fitts nor Crowe who were in a position to observe such indiscretions, were examined as to Cail's work record. Somewhat contradict- ing was Respondent's claim that, in Call's case, low production warranted a discharge, without formal warning or a clearly defined opportunity to improve. This, despite the fact that Bevill portrayed himself as a man of fairness and understanding, who routinely extended corrective opportunities to other employees, including Cail's cowork- ers Genetta Reed and Bobbie Bryson. The credited, uncontradicted testimony of Cail, Bryson, and Genetta Reed hardly reveals that Cail's production record was beneath comparative levels of individual output as to justify the disparate treatment accorded her. In sum, I find that Respondent's discharge of Cail, shortly ^ before the scheduled Board election, was in reprisal for her known or suspected union activity, and that the reasons assigned by Respondent for said action were'pretextual. Accordingly, I find that the discharge of Annie Ruth Cail violated Section 8(a)(1) and (3) of the Act. 2. Jane Ella Reed Prior to her discharge, Reed had been employed at the Shaw facility since May 1969. Like Annie Ruth Cail, she too was terminated at the end of the workday on Monday, June 24. the ground floor of the union campaign prior to her promotion to a supervisory position. She had full knowledge of the involvement of Call and Jane Ella Reed in that effort . Yet, I am convinced, to a certainty, considering the longstanding friendship between all three , as well as other highly cogent considerations , that McWilliams truthfully testified that she at no time informed upon either Cad or Reed. In my opinion , the presumption which allows knowledge of a supervisor to be imputed to management has been refuted in this instance. Cf. Goldblatt Bros., Inc., 77 NLRB 1262, 1263 (1948); William B Patton Towing Co. and Tex-Tow Inc., 180 NLRB 64 (1969). 20 Significantly, McClure did testify that she had received reports from Line Supervisor Fitts to the effect that Jane Ella Reed was " walking around and talking to other employees." SHAW INDUSTRIES Reed performed a number of operations while employed at the plant, but was a button sewer at the time of her discharge. Respondent does not deny that Reed always made 100 percent of her production quota and that she often produced well over her 62 dozen per day standard. Reed was one of the early supporters of the Union, having signed an authorization card the day after organizer McCormick made his initial contact with Annie Ruth Cail. She signed her card at the behest of Ollie McWilliams who at the time was actively engaged in the organizational effort. In addition, Reed herself actively solicited signatures to authorization cards, passing them out on the parking lot outside of the plant. Reed also conducted union meetings at her home. According to Reed, prior to her discharge, no supervisor ever spoke to her about her work. However, at about 3:30 p.m. on June 24 she was summoned to Bevill's office and informed by Bevill that he couldn't use her any more. She asked why, and he advised that Crowe had reported that her quality of work was bad and that she had to do a lot of repairs. Reed denied this, claiming that she did not get repairs. Bevill indicated that they would see about that. At this point according to Reed, Bevill said that too many people were standing around Reed's machine talking. Reed advised Bevill that she did not know what he was referring to. Bevill then said that this was all he had to say and he then terminated her. Respondent produced five witnesses, including Bevill and Supervisors McClure, Crowe, and Peacock, as well as employee Mary Rose Herbison, to testify in support of the Company's alleged reasons for the discharge. Neither Bevill nor McClure, however, who were in attendance at the discharge interview, contradict Reed's fully credited account of what Bevill had said in discharg- ing her. Nor does it appear from the testimony elicited on behalf of Respondent, that Reed engaged in any specific misconduct at a time immediate to her discharge. From my observation of Respondent's witnesses and, consideration of their testimony I am convinced that the defense was unbelievable, and that it bore all the earmarks of an effort to mask the true facts underlying an illicit discharge. Thus, McClure and Bevill were the only parties to the decision to terminate Reed. According to McClure, about 1 or 2 weeks before the discharge she received reports from Ola Fitts, Reed's line supervisor, and Eddie Crowe, the quality supervisor, that the quality of Reed's work was bad. McClure, acting on such reports, claims that about a week before the discharge she herself investigated Reed's work. According to McClure, she checked the volume of repairs that Reed was getting back for rework, and "asked her to try to improve." About a week later, Fitts and Crowe allegedly reported that she had not improved, and McClure discussed this with Bevill, recommending that he discharge Reed. Bevill agreed and Reed was called to his office and then discharged. McClure could not recall anything that was said between Bevill and Reed on that occasion. Fitts was not examined as to Reed's job performance. Crowe, however, testified that Jane Ella Reed "just did bad work." According to Crowe, Reed "was just a lousy button sewer"; Reed would not sew buttons on and when her work was returned to her there would be trouble. Both 1205 Crowe and McClure variously testified that Reed's poor quality had been a continuing problem over the years, on the one hand, and yet, on the other, they testified that it was discovered that Reed's work was bad just 2 to 3 weeks before her discharge. I discredit both Crowe and McClure. Their testimony seemed exaggerated, contradictory, and evasive. Both seemed prone to improvise with the facts when the logic of their accounts was put to the test. No convincing explanation was offered as to why, if Reed's quality problem had persisted for so long, interest in her poor production was not aroused until shortly before the discharge. The improbability of their testimony and its exaggerated nature is also suggested by Respondent's practice of requiring operators to redo their own repair work. Under this practice, operators required to do repairs must perform the rework during time charged against production, and hence those with excessive quantities of repairs would have difficulty in meeting their production standard. No explanation was offered as to how Reed could have consistently maintained a high level of productivity, meeting her daily output quantity regularly, while reworking the excessive number of repairs that Crowe and McClure attribute to her. I credit Reed's testimony that she had few repairs. Bevill was the last witness called by the Respondent and, apparently in recognition of the weaknesses that had unfolded through the course of the testimony of McClure and Crowe, his description of the reasons leading to the discharge showed a shift away from the complaint that Reed had a poor quality of work. Thus, in summarizing his reasons, Bevill makes a vague reference to Reed's attitude and her mixing and talking with the people on the line. He states that the quality of her work was not a major problem, and that he probably would have mentioned it and "let it go" had it not been for him having called Reed to his office on three previous occasions with respect to other matters. In this latter connection, it does appear that some time prior to the discharge, Reed and two of her coworkers , Beatrice Robinson and Mary Rose Herbison, were having difficulty getting along. The first such incident involved a dispute growing out of Reed's refusals to do certain repair work which she claimed belonged to Herbison, and therefore ought to have been assigned to Herbison for, rework. Bevill, not knowing who was at fault, resolved the problem by dividing the work between the two girls and by admonishing them that their bickering would have to cease. After this Bevill received a report from Marice Peacock, who was then the line supervisor on Reed's operation, that Reed, Herbison, and a third employee , Beatrice Robinson, were "at it again." This incident related to an accusation against Reed that she had been selecting the shirt bundles which could be more rapidly processed. According to Bevill he could not at that time ascertain whether Reed was at fault, for lack of sufficient evidence, but he suspected she was responsible. In any event, Bevill concluded the meeting by telling the girls that their problems would have to stop because they were a disruption to other employees, and that, if not, and he couldn't determine who was at fault, all three would be, discharged. Following this, there 1206 DECISIONS OF NATIONAL LABOR RELATIONS BOARD was a third incident in which Reed was again accused of selecting bundles. Reed went to Bevill's office, with Peacock in attendance. Bevill indicates that he told Reed that he felt that she was causing the problems and they had to stop immediately, and if not she would be discharged. From the uncontradicted credited testimony of Reed, it is apparent that Bevill, in the discharge interview, made no reference to these incidents, or to the prior warning growing out of them, or to Reed's past difficulties with Robinson and Herbison. Nor does it appear that there was any recurrence of Reed's difficulty with her coworkers at any time proximate to her discharge. The record also indicates that the last of the incidents involving Herbison, Robinson, and Reed occurred some time prior to the discharge, perhaps even a month before. Thus, the entire matter transpired while McClure was in the hospital and during a period when Marice Peacock was serving as line supervisor. According to the sense of the testimony of McClure, Crowe, and Peacock, McClure was back on the job 3 to 4 weeks before Reed's discharge. Peacock testified that she was relieved of her line supervisory responsibility and transferred back to her normal duties as a training supervisor either in May or June. Bevill's shift to reliance upon this part of Reed's history struck me as afterthought. I find it difficult to believe that Reed's problems with her coworkers was a serious consideration since not referred to by Bevill during the discharge interview, since the last of the incidents involved occurred at least 3 to 4 weeks prior to the discharge, and since there was no evidence of any recurrence in the interim. Although I am unwilling, for the reasons already stated, to impute the knowledge possessed by Ollie McWilliams to Respondent, the total circumstances, including the uncon- vincing nature of the defense, reasonably support an inference of proscribed discrimination. Both Cail and Reed, two principal employee organizers, were discharged on the same day, without prior warning as to any inadequacy in the performance of their work. The action taken against them was precipitate, having occurred after commencement of the workweek, and without their having engaged in any single, specific act of misconduct which could have been said to have triggered the action taken against them . The similarities underlying these discharges, their timing, Respondent's animus , and the unbelievable and shifting explanation by Respondent's witnesses as to the reasons for Reed's discharge adequately support the inference that Reed was known or suspected by manage- ment- to have been an active employee organizer. I so find, and based upon the foregoing I find that Respondent terminated Reed because of her union activity in violation of Section 8(a)(3) and (1) of the Act. 21 Johnson testified that she did not previously request a change in machines because Peacock had informed her, on one occasion, to bear with the old machine because new ones would be coming in next week. Peacock testified that she merely told Johnson that she could get a different machine and denied making any statement about new machines coming in. Upon the probabilities, I credit Peacock's denial . There is no evidence that the Company obtained or contemplated ordering new machines prior to the hearing, and I doubt that Peacock would have made such a representation based upon her own imagination . Furthermore, if Peacock had made such a 3. Emma Johnson Johnson was hired on March 25, 1974, and was continuously classified as a trainee up to the day of her discharge on June 26, 1974. In April, she was given an authorization card by Jane Ella Reed in the parking lot. She returned the signed card to Reed the next day. Johnson indicates that thereafter she discussed the Union with other employees, but admits that she never told anyone whether or not she would vote for the Union. This represents the full extent of Johnson's participation in union activity. Johnson admits that about a month before her termina- tion, the training supervisor, Peacock, told her that McClure wanted to see her. McClure, at that time, informed Johnson that her production was no greater than what it had been when Johnson was first hired. Johnson did not deny this, but explained that her machine was not functioning properly. McClure indicated that she would have the mechanic check out Johnson's machine. Accord- ing to Johnson, the mechanics subsequently fixed the machine and it ran well for awhile, but then the problems developed again. On the day of her discharge, Johnson was summoned by Bevill, who advised her that she would be fired for low production. Again Johnson did not deny that her pro- duction was low, but responded by again pointing to all the trouble she was having with her machine. Bevill told her she could have asked for another machine and that the reason for her low production was that she didn't care and wasn't trying. To this, Johnson again asked how she could make--production "if I was having trouble with the sewing machine." She then got up and walked out 21 Both McClure and Peacock testified that Johnson was warned by McClure twice before the discharge, and that on both occasions Johnson 'was told that her production would have to improve or she would be terminated. Peacock further testified as to two incidents in which Johnson reflected a disposition to avoid work. Johnson disputes Peacock's version of both. The first incident involved a situation in which Johnson ran out of work. According to Peacock, she advised Johnson that she would get more work from the cutting table, whereupon Johnson indicated that Peacock "needn't bother because I am not going to do any more goddamned work today `anyway." In the second incident, Johnson was also out of work, and Peacock told her she would put her to work on repairs so Johnson would not have to go home. Johnson, according to Peacock, replied that she was not going to do any repairs and that she would go home first. Although as to other questions of credibility that have arisen in the course of this proceeding, I have found the testimony of McClure to be unreliable, I do believe both McClure and Peacock as to the conflicts arising in statement , it seems only reasonable that Johnson would have confronted Bevill with it when the subject matter was raised during the discharge interview. Johnson, at the hearing, claimed that her production was also impaired by the fact that she was required to perform a variety of different operations, and because she occasionally did not have enough work to do. It does not appear that Johnson called these possible explanations for her low production to the attention of management officials. SHAW INDUSTRIES connection with the Johnson discharge . I was unimpressed with Johnson's demeanor and from my observation of her, the accounts of Peacock and McClure seemed entirely plausible. In any event , even if the evidence relative to the allegation in question were limited to the testimony of Johnson, no suspicion is aroused by the circumstances surrounding her discharge . Johnson's union activities were extremely limited , and there is -not the slightest basis for inferring that any management functionary had knowledge or a basis for suspecting that Johnson had signed a card or was prounion . In recognition of this weakness in Johnson's case, the Charging Party argues that the violation should nonetheless be found on the theory that Respondent terminated Johnson to lend an aura ' of legality to the illicit terminations of Annie Ruth Cail and Jane Ella Reed which had been effected 2 days earlier . The Charging Party's view rests upon raw speculation , and is totally baseless. There is no suggestion from any source that any of Respondent's officials sought to cloak its actions with respect to Cail and Reed by reference to the Johnson discharge. In sum, I find that the termination of Johnson was not shown to relate to union activity , and, as the record stands, merely reflects another example of Respondent 's frequently invoked practice of terminating marginal producers who have demonstrated a "lack of progress ." 22 Accordingly, I shall recommend dismissal of the allegation that Respondent violated Section 8(a)(3) and (1) by discharging Emma Johnson. 4. Gloria Donaldson Donaldson was hired on March 18 , 1974, and remained classified as a trainee until her discharge on July 12. On March 21 , while riding home with Jane Ella Reed, she signed a union authorization card at Reed's request. Thereafter, Donaldson engaged in no union activity, and at one point in her testimony she indicates that she did not even discuss the Union with other employees, until she attended a union meeting on June 28 . At that meeting Donaldson volunteered to act as a union observer during the election scheduled for July 3. On July 12, Donaldson, following the election in which she acted as union observer, was terminated. The General Counsel and the Charging Party contend that her discharge was in reprisal for Donaldson's having served as a union observer . Respondent claims that she was discharged because of her failure to improve her low level of productivity, after having received two formal warnings. It is undisputed that Donaldson, prior to her discharge, was issued two written warnings based on her low production and poor quality of work . Both warnings recited that termination would be in order in the event that improvement was not shown. The first of these warnings bore the date of June 26 , 1974 . Before Donaldson was confronted with this document, she had orally testified that she had received no warnings , nor was she called to Bevill's office until after the election. On cross-examination, when confronted with this document, which among other , things bears Donaldson's signature, she reiterated that she did not 1207 receive this warning until after the election . According to Donaldson, Bevill presented the warning to her for signature about 5 days after the election. At that time she states that the June 26 date was not on the document, nor were there any check marks in the blocks designating the reasons for the disciplinary warning . According to Donald- son, though she was somewhat curious about the request to sign a disciplinary warning whose material portions were left blank, she concedes that she raised no questions concerning this alleged procedure but simply signed the document. Bevill, McClure , and McWilliams all testified that, apart from the signatures, the disciplinary warning in question was in a completed state when submitted to Donaldson for signature on June 26. I discredit Donaldson and find that she received her initial written warning on June 26 , well prior to the election . I regard Donaldson as a totally unreliable witness. Her testimony as to highly material facts was contradictory and in certain respects was proven erroneous by accepted fact . She showed a complete inability to recall the timing of important events and demonstrated a propensity to place such events at times which were favorable to her cause. Specifically with respect to the June 26 warning, much aside from my expressed reservations as to Donaldson's trustworthiness , I consider it entirely improbable that said document was executed under the conditions and at the time described by Donaldson. Firstly, I note that Donald- son impressed me as a highly aggressive individual who would resist vigorously any attempt to put something across on her. I doubt seriously that she would have signed, without questioning, an incomplete "disciplinary warning." Also of interest is the fact that Donaldson, who prior to the Union meeting of June 28 , had merely signed a card, suddenly decided at that time to expose her union sentiment to all by acting as a union observer . Absent any other explanation , I regard it as entirely likely that Donaldson took this step because of the warning she had received 2 days earlier. It is noted in this respect that Donaldson, on being questioned as to the date of the meeting in question, testified that she attended that meeting about 3 weeks after she had signed a card, which would place the meeting, which was actually held on June 28, as having occurred in April . I find it difficult to believe that such a departure from the actual fact with respect to so highly material an event could be attributed to an honest lack of recollection . On the contrary , it was my impression that Donaldson may well have placed the meeting at a time remote from issuance of the warning so as to deceive as to the true reason that she elected to become an union observer. I do not rely on Donaldson's testimony as to any factual matter which is in dispute. The remaining credited facts relative to Donaldson's discharge reveal that on June 26 Donaldson was called to Bevill's office and informed by Bevill that her production had to be increased. Donaldson responded by indicating that her production was low because she had to do repairs for others and because most of the time she didn't have sufficient material to work on . Bevill then completed the disciplinary warning referred to above and gave it to Donaldson for signature . Donaldson upon signing the 22 See Resp . Exh. 8(a)-(m). 1208 DECISIONS OF NATIONAL LABOR RELATIONS BOARD document asserted that she fully understood its import. The document specifically provided that improvement must be shown by July 9, 1974. After Donaldson signed, Ollie McWilliams and Pauline McClure added their signatures. On July 12 Donaldson was again called to Bevill's office. Also in attendance were McWilliams, McClure, and Bevill. Bevill then informed Donaldson that her production rate still had not increased. Donaldson at this time indicated that she'could not-increase her production because of the machine she was on. Bevill then told McWilliams to put Donaldson on another machine. He then gave McWilliams the second written warning, which is in evidence, which indicated that if improvement was not shown by the end of that day she would be terminated. The document also contained the written inscription "FINAL WARNING." Also of importance is the fact that the production standard applicable to the job that Donaldson was then performing was 45 dozen per day. Bevill, during this meeting, noted that on the day before, Donaldson had turned out 11 dozen shirts in a half day. He advised Donaldson that her production for that day July 12, should be 25 dozen shirts. Donaldson objected to this indicating - that she felt that production at that level was impossible. Bevill then dropped the requirement to 20 dozen. He then made a notation on the disciplinary warning as follows: "Must produce at least 20 doz. today or get terminated." Bevil] then turned over the disciplinary warning to Donaldson, but she refused to sign. Before Donaldson's release for work that morning, Bevill instructed McWilliams to have a mechanic check Donaldson's machine. Donaldson only produced 13 dozen shirts that day. Bevill credibly testified that in the course of the day he went out into the factory to observe Donaldson and found that she was "moving, just like, you know, we've got from now til Christmas to do this." After observing this and getting' the results of Donaldson's production, Bevill testified that he decided to terminate her. Before doing so he informed Donaldson that he could not put up with her production any longer and indicated that she was not trying. He advised Donaldson that he observed her during the day and she impressed him as not seeming to care. In response, Donaldson asked to be-put on another job. Bevill refused, stating that if she was not going to try on her present job, she would not try on anything else either. With this, Bevill-discharged Donaldson. Based on the foregoing, and particularly my rejection of Donaldson's testimony as unworthy of belief, I find that a preponderance of the evidence fails to establish that Respondent treated Donaldson unfairly or unreasonably or that Respondent acted against Donaldson for reasons other than her failure to respond favorably to previously issued and perfectly legitimate disciplinary warnings. I find that Respondent has- established that Donaldson was discharged for cause, and, accordingly, I shall recommend dismissal of the allegation that Donaldson was terminated in violation of Section 8(a)(3) and (1) of the Act.23 IV. CASE 26-Rc-4785 A. The Challenges With respect to the determinative challenges, I sustain the challenge to the ballot of Emma Johnson as I have found that her employment was permanently terminated for dust cause prior to the election, and' hence under. standard eligibility criteria she was 'not entitled to vote. As I have found that Annie Ruth Cail and Jane Ella Reed were discharged in violation in Section 8(a)(3) and (1) of the Act, the challenges to their ballots are overruled. The only remaining issue with respect to eligibility concerns the challenge to the ballot of Essie Selmon. Sehnon left her employment with the Respondent on February -22, 1974, to have a baby. She subsequently returned to work, but- after the payroll eligibility date. Although she at that time was given her old position, there is no evidence that her return to work was pursuant to any leave of absence, or guarantees arising from practice or understanding with the. Employer. Thus,.Selmon testified that when she left her employment in February, she did not talk to' any supervisors or anyone else at the, plant about her reasons for leaving. According to Selmon she gave no notice other than a request of her mother-in-law to tell one of the supervisors that "I will be taking off." There is no evidence that Respondent maintained `a practice whereby those leaving work ,to have a baby are assured of jobs when they `return, nor is there evidence that at the time of Selmon's leaving her employment in February, she had any intention of returning or that Respondent had any intention of providing her future employment. In these circumstances, I can only construe Selmon's action in February 1974 as a voluntary quit. Tlle•fact that she did return, in the circumstances, can only be attributed to conditions existing at that time; namely, her willingness to work and the availability of a job There is no basis for concluding that prior to her rehire, Selmon could reason- ably be considered as possessed of any reasonable expectancy of reemployment. I sustain the challenge to her ballot. - As the Regional Director, with Board approval, has previously overruled the challenge to the ballot of Viola Vineyard, and as I have overruled the challenges to the ballots of Annie Ruth Cail and Jane Ella Reed, it shall be recommended that these determinative ballots be opened and counted ^ by the Regional Director and that a revised, tally be- furnished the parties. I shall further recommend that if the -revised tally indicates that the Union has been designated by a majority of the valid ballots cast, the Regional Director shall issue a certification, of representa- tive. B. The Objections The objections to the election are based entirely upon matters included in the complaint and alleged to be unfair 23 At the hearing the complaint was amended to add an allegation that in such capacity At the hearing, I struck this allegation on grounds of legal the Donaldson termination was violative of Sec. 8(a)(4). That allegation was insufficiency. While I reaffirm that ruling, for the specific reasons stated on based on the theory that Respondent discharged Donaldson because she the record, it is noted that, in view of my finding that Donaldson was had acted as an observer in a Board -conducted election, and upon the legal discharged for cause, it is unnecessary to reach the legal issue presented by argument that Sec. 8 (a)(4) is broad enough to protect employees who serve the 8(a)(4) allegation. SHAW INDUSTRIES labor practices. I have heretofore found that during the critical election, period between the filing of the petition and the conduct of the election, the Employer violated Section 8(a)(1) of the Act by coercive interrogation, threats of reprisals, the withholding of increased base rates, and the maintenance of an unlawfully, broad no distribution-no solicitation rule, and violated Section 8(a)(3) and (1) of the Act by discriminatorily discharging Annie Ruth Cail and Jane Ella Reed. I find that the, Employer, by engaging in the conduct described above, interfered with the election and, accordingly, I shall recommend, in the event the revised tally of ballots does not disclose that the Union was designated by a majority of the valid ballots cast, that the election conducted on July 3, 1974, be set aside and that a rerun election be directed. CONCLUSIONS OF LAW 1. The Employer-Respondent is an employer engaged in commerce within the meaning of Section 2(6) and (7) of the Act. 2. The Charging Party-Petitioner is a labor organiza- tion within the meaning of the Section 2(5) of the Act. 3. By discharging and refusing to reinstate Annie Ruth Cail and Jane Ella Reed in order to discourage member- ship in the Union, Respondent has violated Section 8(a)(3) of the Act. 4. By the foregoing conduct, by coercively interrogat- ing employees concerning union activities, by threatening employees that the plant would be closed if they selected the Union, by withholding increased base rates because of union activity, and by maintaining an unlawfully broad no solicitation-no distribution rule, Respondent has interfered with, restrained, and coerced employees in the exercise of their rights guaranteed by Section 7 of the act, in violation of Section 8(a)(1) of the,Act. 5. The aforesaid unfair labor practices are unfair labor practices effecting commerce within the meaning of Section 2(6) and (7) of the Act. 6. By the conduct described in paragraphs 3 and 4 above, insofar as said conduct occurred during the critical period between the filing of the petition and the election, Respondent-Employer has engaged in preelection miscon- duct interfering with the freedom of choice of its employees. THE REMEDY Having found that Respondent has engaged in certain unfair labor practices, I shall recommend that it be ordered to cease and desist therefrom and to take affirmative action designed to effectuate the policies of the Act. Having found that Respondent discriminatorily dis- charged and refused to reinstate Annie Ruth Cail and Jane Ella Reed in violation of Section 8(a)(3) and (1) of the Act, I shall recommend that Respondent be ordered to offer them reinstatement and make them whole for any loss of pay resulting from their discharge by payment to them of a sum of money equal to the amount they normally would 24 In the event no exceptions are filed as provided by Sec. 102.46 of the Rules and Regulations of the National Labor Relations Board, the findings, conclusions, and recommended Order herein shall, as provided in Sec. 1209 have earned as wages from the date of their discharge to the date of reinstatement if offered, less net earnings during that period. Backpay shall be computed on a quarterly basis in the manner proscribed in P. W Woohvorth Company, 90 NLRB 289 (1950), and shall include interest at 6 percent as provided in Isis Plumbing & Heating Co., 138 NLRB 716 (1962). Having found that Respondent violated Section 8(a)(1) by withholding base rate increases which, but for the union activity then in progress, would have been made effective on May 13, 1974, 1 shall recommend that employees adversely affected thereby be made whole by payment of a sum representing the difference between what they would have earned but for the Respondent's unlawful action, together with 6 percent interest. Hendel Manufacturing Company, Incorporated, 197 NLRB 1093, 1094 (1972). Upon the foregoing findings of fact and conclusions of law, and upon the entire record, and pursuant to Section 10(c) of the Act, I hereby issue the following recommend- ed: ORDER 24 Respondent, Shaw Industries, Division of Crystal Springs Shirt Corporation, Shaw, Mississippi, its officers, agents, successors, and assigns, shall: 1. Cease and desist from: (a) Discharging, refusing to reinstate, or otherwise discriminating against employees because they joined or supported a labor organization or because they are suspected of engaging in such protected activity. (b) Interrogating employees concerning their union activities. (c) Threatening employees with a loss of jobs or closing of the plant if the employees select a union to represent them. (d) Maintaining a rule which precludes employees from soliciting on behalf of the Union during their nonworking time. (e) Maintaining a rule which precludes employees from distributing literature on behalf of the Union in nonwork- ing areas of the plant, during nonworking time. (f) Withholding increased base rates or any other benefits because employees have engaged in activity protected by Section 7 of the Act. (g) In any other manner interfering with, restraining, or coercing employees in the exercise of their rights under Section 7 of the Act. 2. Take the following affirmative action necessary to effectuate the policies of the Act: (a) Offer to Annie Ruth Cail and Jane Ella Reed immediate and full reinstatement to their former jobs or, if those positions no longer exist, to substantially equivalent positions, without prejudice to their seniority or other rights and privileges, and snake them whole for their loss of earnings in the manner set forth in the section of this Decision entitled "The Remedy." 102.48 of the Rules and Regulations, be adopted by the Board and become its findings, conclusions , and Order, and all objections thereto shall be deemed waived for all purposes. 1210 DECISIONS OF NATIONAL LABOR RELATIONS BOARD (b) Make whole employees adversely affected by the deferred grant of new base rates in the manner set forth in the section of this Decision entitled "The Remedy." (c) Preserve and, upon request, make available to the Board or its agents, for examination and copying, all payroll records, social security payment records, timecards, personnel records and reports, and all other records necessary to analyze the amount of backpay due. (d) Post at its Shaw, Mississippi plants copies, of the attached notice marked "Appendix." 25 Copies of the notices , on forms provided by the Regional Director for Region 26, 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 ensure that said notice is not altered, defaced, or covered by any other material. (e) Notify the Regional Director for Region 26, in writing, within 20 days from the date of this Order, what steps Respondent has taken to comply herewith. IT IS FURTHER RECOMMENDED that Case 26-RC-4785 be remanded to the Regional Director for the opening of the ballots of Viola Vineyard, Annie Ruth Cail, and Jane Ella Reed.' Thereafter, the Regional Director shall issue a revised tally of ballots to the parties and, if said tally indicates that the Petitioning Union was designated by a majority, he shall issue a Certification of Representative. Should the revised tally of ballots fail to disclose that the Petitioning Union has been designated by a majority, the election conducted on July 3, 1974, shall be set aside and the Regional Director for Region 26 shall conduct a rerun election at such time as he deems the circumstances permit afree choice on the issue of representation. 25 In the event the Board's Order is enforced by a Judgment of the to a Judgment of the United States Court of Appeals Enforcing an Order of United States Court of Appeals, the words in the notice reading "Posted by the National Labor Relations Board." Order of the National Labor Relations Board" shall read "Posted Pursuant Copy with citationCopy as parenthetical citation