Cyr Bottle Gas Co.Download PDFNational Labor Relations Board - Board DecisionsJun 26, 1973204 N.L.R.B. 527 (N.L.R.B. 1973) Copy Citation CYR BOTTLE GAS CO. Cyr Bottle Gas Co. and United Steelworkers of Ameri- ca, AFL-CIO. Case 30-CA-2000 June 26, 1973 DECISION AND ORDER BY CHAIRMAN MILLER AND MEMBERS JENKINS AND KENNEDY On February 7, 1973, Administrative Law Judge John M. Dyer issued the attached Decision in this proceeding. Thereafter, the General Counsel filed ex- ceptions and a supporting brief. Respondent filed no exceptions, but did file an answering brief. Pursuant to the provisions of Section 3(b) of the National Labor Relations Act, as amended, the Na- tional Labor Relations Board has delegated its au- thority in this proceeding to a three-member panel. The Board has considered the record and the at- tached Decision in light of the exceptions and briefs and has decided to affirm the Administrative Law Judge's rulings, findings, and conclusions only to the extent consistent herewith. The General Counsel excepts to the Administrative Law Judge's findings that Respondent had perma- nently replaced six of the striking employees and elim- inated the positions of the remainder at the time they made unconditional application for reinstatement. We find merit to this exception A review of the relevant facts reveals that on June 1, 1972,' nine employees went on a lawful economic strike, after notifying Respondent's managerial per- sonnel that they would return to work when Respon- dent had set a definite date for negotiations with the employees' certified bargaining representative. On June 8, Respondent agreed to a definite date for negotiations. On the afternoon of June 8, having learned that Respondent had set a date for negotia- tions, the striking employees notified Respondent of their desire for reinstatement. However, Respondent did not acknowledge this application for reinstate- ment until June 27, at which time Respondent replied that it had permanently replaced all of the nine strik- ing employees. The Administrative Law Judge found that at the time of the employees' request for reinstatement, Re- spondent had already hired six replacements, whom he concluded were permanent. He further found that during the strike, Respondent instituted its alleged longstanding policy that there should be only six em- 1 All dates hereinafter are 1972 unless stated otherwise 527 ployees in addition to the office manager and assis- tant manager, thus eliminating the remaining three positions. The General Counsel has excepted to both of these findings. We agree with the General Counsel that, with the exception of James Stewart, who was interviewed for a permanent job before the strike, the replacements were hired on a temporary basis. Thus, Raymond Peterson and Ernest Grimsby, the only replacement employees called as witnesses, testified that when they were hired by Mel Ray, Respondent's assistant re- gional manager, they were told that Respondent could not promise any job tenure; that they might work 2 weeks, a month, or maybe years. They further testified that they were told by Ray that their jobs were temporary and depended upon when the strikers came back to work. This testimony was corroborated by Ray who, as the Administrative Law Judge found, admittedly told some of the replacements that they might work a day, a week, a month, or a year; that he did not know how long they would be employed; but that a lot depended on how well they worked, how the strike was resolved, and whether the Board would order the strikers reinstated. From this testimony the Administrative Law Judge concluded that the new employees were hired as permanent replacements for the strikers-subject only to their performance during the probationary period-and that Respondent was only being fair to advise these replacements that they might be discharged if the Board ordered the strikers reinstated. While we do not quarrel with the genuineness of the Respondent's asserted attempt to deal fairly with the replacements, we view this latter warning as hardly reassuring to the replacements that their jobs were permanent, subject only to the probationary period. Rather, it indicates that Respondent was not offering permanent positions to the replacements and, indeed, the testimony of these employees establishes that they so construed these statements. Our finding that Respondent did not hire the new employees as permanent replacements for the strikers is further buttressed by the fact that Respondent did not immediately advise the strikers, upon their initial unconditional offers to return to work, that they had been permanently replaced. To the contrary, nearly 3 weeks elapsed from the time the strikers first offered to return to work on June 8 until Respondent, on June 27, finally told them they had been permanently re- placed. Between those dates, the Union made repeat- ed requests on behalf of the strikers for their prompt return to work. As described in the Administrative Law Judge's Decision, these requests were uniformly 204 NLRB No. 83 528 DECISIONS OF NATIONAL LABOR RELATIONS BOARD met by evasive and noncommittal answers, which in our view fairly indicate that Respondent had made no firm decision regarding either the permanence of the replacements or the reinstatement of the strikers. In these circumstances, and upon the entire record, we conclude, contrary to the Administrative Law Judge, that Respondent had not in fact hired permanent re- placements for the strikers before their first uncondi- tional offer to return to work was communicated to Respondent on June 8. With respect to Stewart, we disagree with the con- clusion of the Administrative Law Judge that Stewart was hired as a replacement for one of the striking employees. Thus, Stewart testified that on the morn- ing of May 31, before the strike started, he was told by the Michigan Employment Commission that Re- spondent had two job openings. Stewart went to Respondent's plant that day and applied for one of these positions. Stewart was employed on June 5 in one of these positions. To find that Stewart was a striker replacement would be to overlook the fact that he applied and was hired for a position which was available before the strike ever began. We further find no merit in Respondent's conten- tion, first argued during the proceedings herein, that the strike offered Respondent the opportunity to insti- tute its alleged new staffing policy, thus eliminating three positions. It is clear'that on June 8, Respondent had not permanently replaced any of the striking em- ployees. Further, the record is replete with evidence that Respondent had work available, and was in fact planning to hire additional employees, since the tem- porary employees were working a great deal of over- time and Respondent also brought in several supervisors from other areas who helped with the workload. Thus, Respondent hired George Parkonen on June 16,2 and William Van Vickle on July 31.' Again, when Stewart left Respondent's employ his job was not offered to any of the strikers, although some of the striking employees were fully qualified for that position. Such evidence leads us to the conclusion that the policy Respondent was attempting to institute during the strike was that of eliminating employees who had been the cause of the Union's recent certifi- cation as bargaining representative. 2 We note the short duration of Parkonen 's employment . However, by Respondent 's own testimony , Parkonen 's discharge was for cause , and not because of any manpower overage. 3 Van Vickle 's extra supervisory duties are completely irrelevant As we have already stated , the only questions before us are whether Respondent had permanently replaced the striking employees and if there was work available on June 8 to which the striking employees could be reinstated Van Vickie clearly performed the same kind of work as the strikers had been doing We find, therefore, that as of June 8 Respondent had positions available for nine striking employees who requested reinstatement. By failing to reinstate the striking employees to their previous positions upon their application for unconditional rein- statement when they had not been permanently re- placed, Respondent violated Section 8(a)(1) and (3) of the Act. N.L.R.B. v. Mackay Radio & Telegraph Co., 304 U.S. 333; The Laidlaw Corporation, 171 NLRB 1366. THE REMEDY Having found that the Respondent has engaged in unfair labor practices, we shall order that it cease and desist therefrom and that it take certain affirmative action designed to effectuate the policies of the Act. Accordingly, we shall order Respondent to offer immediate and full reinstatement to the nine employ- ees who participated in the economic strike which began June 1, 1972, to their former or to substantially equivalent positions, without impairment of their sen- iority and other rights and privileges, dismissing, if necessary, any persons hired as replacements on and after June 1, 1972. We shall also order that Respon- dent make the striking employees whole for any loss of earnings they may have suffered by reason of Respondent's refusal to reinstate them, by payment to each of a sum of money equal to that which he nor- mally would have earned during the period from 5 days after the date on which he applied for reinstate- ment, to the date of reinstatement, less interim earn- ings. Backpay shall be computed on the basis of calendar quarters, in accordance with the method pre- scribed in F. W. Woolworth Company, 90 NLRB 289. Interest at the rate of 6 percent per annum shall be added to the net backpay and shall be computed in the manner set forth in Isis Plumbing & Heating Co., 138 NLRB 716. AMENDED CONCLUSIONS OF LAW We substitute the following for paragraph 3 of the Administrative Law Judge's Conclusions of Law: "3. By not reinstating its striking employees to their former or substantially equivalent positions upon their request for unconditional reinstatement made on June 8, 1972, Respondent engaged in and is engaging in unfair labor practices within the meaning of Section 8(a)(1) and (3) of the Act." ORDER Pursuant to Section 10(c) of the National Labor CYR BOTTLING GAS CO. Relations Act, as amended, the National Labor Rela- tions Board hereby orders that Respondent, Cyr Bot- tle Gas Co., Marquette, Michigan, its officers, agents, successors, and assigns, shall: 1. Cease and desist from discouraging membership in United Steelworkers of America, AFL-CIO, or any other labor organization, by refusing to offer rein- statement to its striking employees to their former or to substantially equivalent positions. 2. Take the following affirmative action, which we find necessary to effectuate the policies of the Act: (a) Offer Fred Beaudry, Frank Dupras, Charles H. Maki, Ralph V. Lane, Arthur Myers, Raymond Neva- la, Paul Feltner, Raymond Shorkey, and William Lompri immediate and full reinstatement to their for- mer jobs or, if those jobs no longer exist, to substan- tially equivalent positions, without prejudice to their seniority and other rights and privileges, dismissing, if necessary, any persons hired as replacements by Re- spondent on or after June 1, 1972, and make whole these employees for any loss of earnings they may have suffered by reason of Respondent's refusal to reinstate them, such loss of earnings to be computed in the manner set forth in the section 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, and all other records necessary to analyze the amount of backpay due under the terms of this Order. (c) Post at its plant in Marquette, Michigan, copies of the attached notice marked "Appendix." ° Copies of said notice, on forms provided by the Regional Director for Region 30, after being duly signed by Respondent's representative, shall be posted by it im- mediately upon receipt thereof, and be maintained by it for 60 consecutive days thereafter, in conspicuous places, including all places where notices to employ- ees 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 Region 30, in writing, within 20 days from the date of this Order, what steps the Respondent has taken to comply here- with. In the event that this Order is enforced by a Judgment of a United States Court of Appeals, the words in the notice reading "Posted by Order of the National Labor Relations Board " shall read "Posted Pursuant to a Judgment of the United States Court of Appeals Enforcing an Order of the National Labor Relations Board." APPENDIX NOTICE To EMPLOYEES POSTED BY ORDER OF THE NATIONAL LABOR RELATIONS BOARD An Agency of the United States Government 529 After a trial in which both sides had the opportunity to present their evidence, the National Labor Rela- tions Board has found that we violated the law and has ordered us to post this notice and we intend to carry out the order of the Board and abide by the following: WE WILL offer immediate and full reinstate- ment to their former jobs or, if those jobs no longer exists, to substantially equivalent posi- tions, without prejudice to their seniority and other rights and privileges, to all our employees listed below who were on strike on or after June 1, 1972, dismissing, if necessary, any persons hired by us on or after June 1, 1972, as replace- ments for our striking employees: Fred Beaudry Arthur Myers Frank Dupras Raymond Nevala Charles H. Maki Paul Feltner Ralph V. Lane Raymond Shorkey William Lompri WE WILL make whole the above-mentioned em- ployees, with interest, for any loss of earnings they may have suffered by reason of our refusal to reinstate them to their positions on June 8, 1972. CYR BOTTLE GAS CO (Employer) Dated By (Representative) (Title) This is an official notice and must not be defaced by anyone. This notice must remain posted for 60 consecutive days from the date of posting and must not be altered, defaced, or covered by any other material. Any questions concerning this notice or compli- ance with its provisions may be directed to the Board's Office, Commerce Building, Second Floor, 744 North Fourth Street, Milwaukee, Wisconsin 53203, Telephone 414-224-3861. 530 DECISIONS OF NATIONAL LABOR RELATIONS BOARD DECISION STATEMENT OF THE CASE JOHN M. DYER , Administrative Law Judge : The United Steelworkers of America , AFL-CIO, herein called the Union or Charging Party , filed a charge alleging violations of Section 8(a)(1), (3), and (5) against Cyr Bottle Gas Co., herein called the Company , Cyr, or Respondent , on June 22, 1972. 1 The charge was amended on August 3 to delete the 8(a)(5) allegation and to allege that Respondent had refused since on or about June 8 to reinstate nine economic strikers 2 who had made an unconditional offer to return to work on June 8. On August 11, the Regional Director of Region 30 issued his Complaint and Notice of 'Hearing which in essence al- leges that Respondent refused to reinstate six of the nine named economic strikers on or after June 8 because they had engaged in a strike or other concerted activity against Respondent . This complaint was amended during the hear- ing over the opposition of Respondent to allege alternative- ly that Respondent had failed or refused to reinstate all nine of the economic strikers on or after June 8. Respondent's August 22 answer denied that it had in any way violated the Act while admitting the requisite service and commerce allegations and the agency and supervisory status of named company officials. All parties were afforded full opportunity to appear, to examine and cross -examine the witnesses , and to argue oral- ly at the hearing held in Marquette , Michigan , on Septem- ber 28 and 29 and October 24 . General Counsel and Respondent filed briefs which have been carefully consid- ered. The essential question in this case is whether Respondent hired permanent replacements for the economic strikers prior to their unconditional offer to return to work, with a subsidiary question being when the offer was made. I have concluded that the offer to return to work was made by the employees on June 8 , but that all the replacements hired by Respondent were .permanent replacements and that, with the exception of one , they were hired before June 8. That one individual , McKenzie , was hired in September to re- place a strike replacement who left on September 1 and, by not offering this position to one of the strikers on or after September 1, Respondent violated 'Section 8(a)(1) and (3) of the Act . (The Laidlaw Corporation , 171 NLRB 1366). In evaluating the evidence in this case , I was particularly im- pressed by the forthright testimony of Charles Ricker whom I found to be a trustworthy, unbiased witness. On the entire record in this proceeding, including my evaluation of the reliability of the witnesses based on the evidence received and my observation of them , I make the following: 1 Unless stated otherwise , all dates herein refer to 1972 2 The nine are Fred Beaudry, Charles Maki, Arthur C Myers, Raymond Shorkey, Raymond Nevala, Frank Dupras , Ralph V Lane, Paul R Feltner, and William Lompri. FINDINGS OF FACTS I THE BUSINESS OF RESPONDENT AND THE LABOR ORGANIZATION Cyr Bottle Gas Company is a Michigan corporation wholly owned by Empire Gas Company (herein called Em- pire) and owning and operating a facility at Marquette, Michigan, where it is engaged in the wholesale and retail sale of bottled gas. During the past year, Respondent's gross receipts were in excess of $500,000 and during the same period it purchased and received gas and other goods direct- ly from outside Michigan valued in excess of $50,000. Respondent admits, and I find, that it is engaged in com- merce within the meaning of Section 2(6) and (7) of the Act. Respondent admits, and I find, that the Union herein is a labor organization within the meaning of Section 2(5) of the Act. II. THE UNFAIR LABOR PRACTICE A. Background and Undisputed Facts Respondent was a local bottle gas corporation operating in Marquette, Michigan, and vicinity for a number of years prior to its purchase on October 1, 1971, by Empire Gas. Empire has purchased it large number of local gas compa- nies and has established operating procedures for these lo- cal companies which are set forth in a manual . One of the first changes made following the purchase was that delivery- men were told that they should collect accounts, both on present deliveries and on prior or past-due accounts. Empire's policy was to reduce the large accounts receivable which Cyr had allowed to grow. According to the evidence, the drivers expressed dissatisfaction at being asked to col- lect accounts. On October 21, 1971, the Cyr employees went on strike. Unfair labor practice charges were filed, the case heard , and a decision issued . A settlement was reached on the matter which terminated with 10 striking employees returning to work on April 4. On April 12, the Union was certified as the collective-bargaining representative for the Cyr employees and on May 3 the Company and Union met in a first negotiation session. Topics other than the econom- ic issues were discussed. The chief union negotiator was Leo Prusi, a field representative for the Union, who sent an economic proposal to the Company by mid-May. On May 20, Local Manager Charles Ricker, who had been with the Company for some 10 years, first as the office manager and later as the manager under Empire, submitted his resignation to be effective June 10. William Randolph is the regional manager of region 6 of Empire Gas and has under his direction the Respondent and some 35 other local gas companies . Under Randolph were two assistant regional managers , Mel Ray and Larry Minor. After receiving Ricker's resignation, Randolph sent Ray to Marquette to hire a manager and an office manager. A meeting of the employees was called for the morning of May 31 and Ray was introduced to the employees. Arthur Myers, who was then the spokesman for the em- ployees, testified that in the meeting of May 31 Ray said he was there to accept Ricker's resignation and wanted to know if any of the employees wanted the job or could CYR BOTTLING GAS CO. suggest someone for the position. Ray said that in May Empire regularly conducted a wage review to determine annual wage raises . Ray concluded the meeting by inviting any of the employees to see him in the office if they wished. As the meeting concluded, Myers asked Ray if he was aware that the Cyr employees had a bargaining representative. Ray said he was aware of it and Myers told him that the Union would be the one to be bargaining for the wages. Ray replied that it was the Company's policy to review wages during May. A short while later, Myers went to the office and asked if Ray had any information on the contract negotiations. Ray said that he didn't , that he had recently become an assistant regional manager and wasn 't aware of all the mat- ters , but that he would find out about the contract negotia- tions and let Myers know . Myers told Ray that if they didn't get any information on a scheduled negotiation meeting for a new contract there would be another strike . Ray said that he would be in touch with headquarters in Lebanon, Mis- souri , and find out if negotiations were being set up and let Myers know by the end of the day. Sometime between 4 and 4:30 p .m., Myers asked Ray if he heard anything from Lebanon . Ray said no, that he had tried to call but hadn't heard anything. Myers told Ray there would be a strike the next morning. Myers had previously cleared this with the employees. The next morning the employees gathered in the parking lot and Myers went in to see Ray . Ray asked if they were going to strike or go to work and Myers asked whether he had heard anything on the contract negotiations . Ray said he hadn't . Myers told Ray than when Ray heard something the employees would be out in front of the building on a picket line. B. Strike Chronology Around 2:30 p.m. on June 1, union staffworker Leo Prusi arrived in Marquette and went to the picket line. The pick- ets told Prusi that they were not satisfied with the progress of negotiations and wanted either a signed contract or a firm date for a negotiation meeting . Prusi said he had recently sent an economic proposal to the Company and that the Company had not had sufficient time to reply . The strikers said they were still dissatisfied with the progress and he asked if a definite date for a negotiation meeting would satisfy them so that they would return to work . They said it would . Prusi said he would contact his office and Ray and try to set a date. Prusi testified that on Monday , June 5 , he called Respondent 's office in Marquette and talked to Ray, stating that he had talked to the strikers and they were willing to go back to work as soon as a date for the next negotiation meeting was set. Ray said that he would relay the message to someone in authority , stating that he didn't have any authority to set such a meeting . Ray denies that such a conversation took place. On either June 6 or 7 , Prusi received a letter , dated June 2, from John Price then counsel for Respondent, which asked that future correspondence be directed to him rather than President O'Brien of Empire . Price commented briefly on the Union's economic proposals, stated that they could 531 meet to negotiate the differences, but added that he had been informed that a strike had been called and he assumed that the Union did not wish to meet , but he was willing to be corrected if that assumption was incorrect. Prusi testified he called Attorney Price 's office on June 7 and was in- formed that Price was in Europe and that Mr . Gritta was in charge of the case . Prusi called Gritta on June 8, men- tioned the letter from Price , and stated that they were inter- ested in negotiations , that the strike had been called because the men wanted a definite date set, and that once it was set they would go back to work. Gritta and Prusi agreed on June 27 as a firm date for negotiations. In the interim , Myers had found another job and asked to be relieved of his spokesman position for the Union, suggesting Charles Maki as his replacement . The employees agreed to Maki taking Myers' place. On June 8 , Prusi called Maki and advised him that a definite date for negotiations had been set and gave him Gritta's name and telephone number so that this informa- tion could be confirmed by Respondent . While on his way to the picket line to talk to the employees , Maki saw Ricker's car approaching from the opposite direction; he blinked his headlights and they both stopped . Maki walked over to Ricker's car and told him that a date had been set for negotiations and since this was what the employees were waiting for they were willing to go back to work , adding that he was speaking on behalf of all the employees . Ricker said he only had 2 or 3 days left with the Company and that there wasn 't much he could do about it , but he would tell higher personnel at the plant about it. Maki stated that he gave Gritta's name and telephone number to Ricker for the Com- pany to verify the information, if they wished . Ricker, who was a convincing witness, essentially confirmed Maki's tes- timony. Once the strike started , Randolph sent Larry Minor to run the Company and detailed Mel Ray to hire replace- ments for the strikers . Ricker , who was due to leave on June 10, gave up his managerial responsibilities when the strike commenced and Ray and Minor were present . Ricker testi- fied that, when he returned to the office after his conversa- tion with Maki , he told Minor he had just seen Charlie Maki who told him that Prusi said a date for a negotiation meeting had been set up and that the men were willing to return to work . Minor said he would relay this information to the "brass." On June 12, Prusi called Respondent 's office and asked Mr. Evans if the men had been put back to work. Evans said they had not . When asked why not, Evans replied that it wasn't his job to do so but was up to somebody higher up. Prusi asked if they had called the "higher-ups" and Evans said no , that it wasn 't up to him to call them , that the "higher-ups" call him . Evans was not asked about this con- versation , so it is undenied. On June 13, Maki called Respondent and talked to Office Manager Wangberg . A meeting was set up for 9 a .m. Larry Minor , who was then charged with running Respondent, and one of the local managers , Evans, who had been sent in to assist in training new employees , met Maki and Arthur Myers outside the front door of the Company. Minor testi- fied that he introduced himself to Maki and told him that he was there to run the Company. The parties agreed that 532 DECISIONS OF NATIONAL LABOR RELATIONS BOARD part of the conversation had to do with a charge by the Union that the Company was breaking Michigan law by bringing in "strike-breakers" from out of the State. Minor agrees that Maki asked him about the employees returning to work. Minor told Maki that was not his function, that he had nothing to do with negotiations, that such was between Maki's union representatives and Respondent's negotiators. Maki's testimony was not as specific, but he stated that Minor or Evans said they did not have an answer about taking the men back. During cross-examination, Leo Prusi remembered a sec- ond telephone conversation with Respondent's Attorney Gritta in which he told Gritta that the Company was violat- ing Michigan law by employing "strike-breakers." Gritta told him the people referred to were supervisors from other locations who were there to train the employees who had been hired locally in Marquette. There was also some con- versation about the requirements of the newspaper ads in stating the Company had openings. Prusi also recalled that in this second conversation he asked Gritta about the status of the strikers. He did not remember whether Gritta said anything concerning the strikers or that replacements had been hired. On June 19, all but one or two of the striking employees met at the Union's office in Negaunee and drew up a written offer to return to work which was dated that day and signed by nine strikers? That same day, the entire group, with Maki as the spokesman, went to Respondent's office and presented the written offer to Office Manager Wangberg. Maki asked if Wangberg had heard anything about taking the employees back. Wangberg said he had not. Maki said the offer was a bona fide offer to return to work signed by all the employees. Wangberg said he couldn't act on it but would relay it to someone else who could and added that some of the Company's officials were due in that afternoon by plane. On the following day, Maki returned to the office and asked Wangberg if the company officials were acting on the letter. Wangberg said the plane never got to Mar- quette. At the beginning of the scheduled negotiations meeting of June 27, Prusi stated that the Union was not going to negoti- ate for the men presently working, that the strikers had offered to go back to work and had submitted a letter to that effect, and that the Company had not acted; he saw no reason to negotiate until the men were back at work. The company negotiators said they had no knowledge of such The document addressed to Respondent stated, Dear Sir: We, the undersigned employees of Cyr Gas Company of Marquette, constituting all of the striking employees , have elected to discontinue the strike , return to work at once and resume negotiations as agreed upon and scheduled. It was signed by: Fred Beaudry Arthur Myers Frank Dupras Raymond Nevala Charles H. Maki Paul Feltner Ralph V Lane Ray Shorkey William Lompri The only striker who did not sign the document was Arthur Saano who had been a regular part-time employee an offer or a letter and an inquiry was made to Respondent's office which confirmed the existence of the letter. Respondent asked for a recess until after lunch to see the document and consider its position. When they recon- vened, the Company stated that the men had been out on an economic strike and, exercising its rights, the Company had permanently replaced them to keep its business going and there were no openings presently available. Gritta's offer to negotiate was refused by the Union and the meeting ended. C. The Replacements General Counsel's added position is that under the Company's rules all new employees are hired as probation- ary employees and are not considered regular employees. Specifically, the Company's manual uses these definitions: Regular Employee: A regular employee is one, other than a temporary employee, who has completed thirty work days. Probationary Employee: A probationary employee is one who is hired for a regular job, but has completed less than thirty days of work. All new employees hired for a regular job, must be hired as probationary employees and must have that understanding at the time they are hired. The Retail Manager should observe the employee carefully during the thirty day period, and if his work is not satisfactory, the employee should not be retained beyond the thirty day period. It is the General Counsel's position that since none of the replacements had worked for 30 days before the offers to return to work were made, that the replacements were all probationary employees and did not have status as regular permanent employees and should have been displaced by the strikers. General Counsel cites Danner Press, Inc., 153 NLRB 1092, as his authority. I find Danner Press inapplicable in the present situation. In that case, the respondent had always hired journeymen for its principal positions and during a strike hired new, relatively unskilled employees and stated that they were replacing journeymen. It was found by these and other facts that Danner had not permanently replaced its strikers and further did not intend these new probationary employees to be replacements. More to the point in this case is the decision in American Machinery Corporation, 174 NLRB 130, 133. Judge Libbin in commenting on a position taken by General Counsel that probationary employees were not permanent replacements where the company had a policy of hiring probationary employees, stated that the Board had refused to accept such a position in Kansas Milling Company, 97 NLRB 219, 220- 226. In Kansas Milling, the Board found that only proba- tionary employees who were terminated during the proba- tionary period were not permanent replacements. This holding was adopted by the Board in American Machinery Corporation and I find it applicable in the present proceed- ing. This holding is in concert with the Board's holdings in "R" cases where it includes apprentices, trainees, and pro- bationary employees in units of permanent employees CYR BOTTLING GAS CO. where they have reasonable expectation of continuing to work in the relevant job classifications after completing their initial periods of employment. I, therefore , dismiss General Counsel's complaint amend- ment and theory that none of the replacement employees are permanent employees because they were or may have been probationary. The testimony is clear that those listed below were hired on the specified dates as strike replacements: 1. John Warjonen, hired on June 2 as a bulk driver. 2. James Kurian , hired on June 5 as a serviceman and salesman. 3. Joe Bierman , hired on June 6 as a bulk driver. 4. Ray Peterson, hired on June 6 as a bottle truckdriver. 5. Ernest Grimsby, hired on June 5, originally tried as a bottle truckdriver and finally given a position as a plant serviceman, filling gas bottles. 6. James Stewart , originally applied for a position as a manager or assistant manager on May 31, was finally hired on June 5 by Mel Ray as assistant manager in the Big Bay area . Stewart asked for additional time before reporting since he had to move his family to the Big Bay area and finally reported for work on June 12. Under General Counsel's alternative theory, he agrees that Warjonen , Kurian , and Bierman were hired as perma- nent replacements . The parties agreed that neither Bierman nor Stewart were supervisors within the meaning of the Act. Stewart resigned his job on September 1 and Respondent replaced him with Donald McKenzie . Respondent also hired an individual named Parkonen on June 13 and termi- nated him the same or the following day and did not there- after replace him. General Counsel maintains that William Van Vickie was a strike replacement in that he performed ordinary service duties some 75 percent of the time . Respondent maintains that Van Vickie was hired as assistant manager to its local manager , Stillwell , at Stillwell's request . The testimony was uncontradicted that Van Vickie had the authority to hire, fire , and discipline employees , that he assisted Stillwell in his duties, helped train employees, and checked on vehicle maintenance . As did Stillwell, Van Vickie had a company truck assigned for his use in commuting to work. Ricker testified that during the first strike he got Respon- dent to set up the position of an assistant manager and filled that position , but after some months the person left and the position was not refilled . He said that the position duties which Stillwell described, and said Van Vickie was hired for, were the same as had been originally established . I find that Van Vickie was a supervisor within the meaning of the Act and that his position was not that of a strike replacement. General Counsel contends that Peterson , Grimsby, and Stewart were not hired as permanent replacements. Pe- terson testified on direct examination that when he was hired he did not know how long the job would last, whether 2 weeks, a month, or 10 years, and that Ray did not say why, but that Peterson figured it had to do with the labor dispute. He said the first time he figured his job was permanent was some 3 weeks later when Respondent President O'Brien told the employees at a company meeting that they were doing a good job and could have theirjobs as long as they wanted them. 533 Grimsby testified during direct examination that after completing his application, Mel Ray asked about his experi- ence and told him that the job would be temporary depend- ing on the negotiations and when the strikers would be coming back. Grimsby said he first heard the job would lie permanent when O'Brien told the men several weeks la.er that they had done a goodjob and had a permanentjob with the Company. On cross-examination, Grimsby stated noth- ing had been said about a probationary status and that he took out group insurance and found out later that only permanent employees could get group insurance . He stated that Ray said something about the Company having the right to replace the strikers and he was one of the replace- ments and that the law might require the strikers to be put back to work, but nothing was said about being laid off. Finally, Grimsby recollected that he was told that he would not be permanent until the Company saw what he could do and that Ray had said they would be employed there unless the Labor Board said the strikers had to come back. Mel Ray testified that he told some of the replacements that they might be employed for a day, a week, a month, or a year, that he did not know how long they would be there, but a lot of it would have to do with how they worked and what had happened in the past because of the last strike. Despite some confused testimony, it seems clear that Ray told the replacements they were hired to replace the strikers and might be there for a short or long time depending on whether the Company was ordered by the Labor Board to replace them with the strikers, but that their tenure with the Company also had to do with how well they performed. In essence, this means that the people were hired as permanent replacements subject to a probationary period and subject to the possibility that if the Board found that the strikers should be taken back by Respondent, the replacement em- ployees would be subject to discharge because of such or- der. With the background of the prior strike, charges, decision, and settlement, it seems that Respondent was being fair to the replacements by informing them of that possibility and qualifying the permanence of their jobs in that manner. As to Stewart, it appears to be General Counsel' s conten- tion that he was hired on June 12 as he testified on direct examination. During subsequent examination, it became clear that Stewart submitted his application on May 31 and was hired during the following week, by June 5, on the premise that he would be located in the Big Bay area. Stew- art asked for additional time to move his family up and reported for work on June 12. It is clear from his testimony that he had the job on June 5 and would have reported for work then but for the additional time given him by the Company for his family move. On the basis of the testimony, I conclude that all six replacements were hired as permanent replacements on or before June 8. The sole exception is McKenzie, who re- placed Stewart in September. Respondent offered uncontroverted testimony that it was its position in 1971 that besides the manager there should only be eight male employees including the office manager and any assistant manager and that it ordered Ray not to hire any other employees after Parkonen was discharged, feeling that it had a full complement of employees for its 534 DECISIONS OF NATIONAL LABOR RELATIONS BOARD needs. Further, it is Respondent's position that this was an occasion for instituting the staffing plan that Empire drew up when it purchased Respondent. It states that it had no chance to establish its table of organization before or after the first strike since the time was so brief before the first strike and it had agreed under a settlement agreement to reinstate all the strikers following that strike. Since the various offers to return to work were made between June 8 and 19, and there were no other employees hired until September, it is clear that the date of the offer to return to work whether it be June 8 or 19 or some date in between, does not affect any jobs under these circum- stances. However, I would find that the offer made by Maki through Ricker to Ray on June 8 was a bona fide offer of the strikers to return to work. It is clear that on June 8 Respondent through Ray and through its attorney, Gritta, was aware of the fact that the employees would return to work if a date was set for the resumption of negotiations. This fact had been made known to Ray on May 31 and June 1. It is clear that the knowledge of the June 1 strike took very little time (I to 2 days) to get from Marquette, Michigan, through Respondent's supervisory hierarchy to its attorney, Price, in Texas, since Price wrote to Prusi on June 2 and the strike was one of the topics. It is clear that Ray knew of the offer to return as of June 8. Ray was not questioned about this conversation and it stands undenied and I credit it. It is clear from the succeeding events, from the way that Maki and Prusi talked to the local managers, including Ray, Ev- ans, Minor, and Wangberg, and from their replies that local management understood that the employees had offered to return to work, but local management was trying to turn away responsibility by stating that the decision whether to accept the offer was to be made by the "higher-ups" or should be made through the union representative. Whether or not local management ever relayed these offers to upper management or Attorney Gritta was not demonstrated, but it is clear that the offer was known to local management which was entrusted with the hiring responsibility and cer- tainly Respondent is responsible for this knowledge. The June 19 written offer by the strikers to return certain- ly could not have been misunderstood. This was delivered to Respondent's office and if for unknown reasons Respondent's local officials did not report it to Empire cials, such failure was not the fault of the strikers In any event it is clear that an offer to return to work was made and that Respondent did not have any openings from June 8 until September 1. General Counsel argues that Respondent has not filled all the available positions since 10 people went out on strike and Respondent has only 6 strike replacements. Respon- dent claims that it has filled all the available positions in that it has revamped the Company to some extent and done away with some of the positions. For example, Cyr used to employ regular part-time employees throughout the year. Respondent maintains that under its scheme of operations where part-time employees are needed they are hired only for the winter season and terminated in the spring. In the same manner , Cyr used to have helpers on the bottle trucks but Respondent has no such positions and insists that the bottle truckdrivers do not need assistants and it has abol- ished those positions. It would further seen. `hat having an assistant manager performing some "unit duti, i" would fur- ther decrease Respondent's need of more employees. With this revamping of positions, I can not find that Respondent has any unfilled positions presently available. Under the The Laidlaw Corporation doctrine, 171 NLRB 1366, the hiring of new employees when strikers were able and available to take such positions violater Section 8(a)(1) and (3) of the Act. It would appear from the testimony that Stewart's job in the Big Bay area was that of a bottle truckdriver and ser- viceman. When he left that job, it seems clear that any of the striking servicemen or truckdrivers or the mechanic could have taken that position, if it had been offered. Under Laidlaw, hiring McKenzie without offering the position to the strikers violated Section 8(a)(1) a n d (i of the Act. Re- spondent has not offered any business reason why it did not offer the position to any of the strikers except that it wanted the person to reside in the Big Bay area. At the very least, this condition could have been made and the job offered to the strikers. Respondent has sought to establish that the strikers wanted to all come back together or none would. There is no convincing evidence to establish that as a fact. I, therefore, find and conclude that Respondent, by fail- ing to offer reinstatement to one or more of the strikers following their unconditional offer to return to work and when the September 1 vacancy occurred, violated Section 8(a)(1) and (3) of the Act. III THE EFFECT OF THE UNFAIR LABOR PRACTICES UPON COMMERCE The activities of Respondent set forth in section II, above, have herein been found to constitute unfair labor practices in violation of Section 8(a)(3) and (1) of the Act, and, occur- ring in connection with Respondent's business operations described in section I, above, have a close, intimate, and substantial relationship to trade, traffic, and commerce among the several States and tend to lead to labor disputes burdening and obstructing commerce and the free flow of commerce. IV THE REMEDY Having found Respondent in violation of Section 8(a)(3) and (1) of the Act in that it did not offer reinstatement to any of the nine strikers when a position was open and avail- able, I shall recommend that Respondent cease and desist from such unfair labor practice and that it offer reinstate- ment to the nine striking employees to the extent that their jobs were not filled by permanent replacements or that other comparable positions became available and that it place the remaining strikers on a preferential hiring list. Specifically, Respondent can not continue to employ Mc- Kenzie, who was hired subsequent to the strikers applica- tion for reinstatement, unless it has offered reinstatement to each of the strikers. Respondent is to offer to reinstate one striker with backpay from September 1, 1972, the date that position became available. In addition, vacancies occurring since the date of the hearing in this case must be offered to the strikers with backpay from the date of such vacancies. There are a number of problems which may anse in com- CYR BOTTLING GAS CO. puting the backpay in this case. In order to help ease such complications, I recommend that the Order direct Respon- dent to list the nine strikers in the order in which it would have offered them reinstatement, using any fair, equitable, and lawful method, as for example, seniority, in compiling such a list. Some consideration may be given to the job duties of the jobs and it is possible that one or more lists should be compiled. Such list or lists should be furnished to the Regional Director for Region 30, to the Charging Party, and to each of the strikers. Such list or lists will serve as the basis for offering reinstatement to the position presently held by McKenzie and to subsequent vacancies which may occur prior to the time of compliance with this Decision and, to the extent any names remain on the lists or lists, they will constitute a preferential hiring list or lists. It is possible that within the framework of Laidlaw some of the strikers may have accepted regular and substantially equivalent employment elsewhere ° or might not desire to accept the position held by McKenzie with its attendant company-imposed location in the Big Bay area. It would seem possible that a striker might accept a position at one time and might not have been available for it at a subse- It is possible that Myers and Nevala may have taken substantially equiva- lent positions elsewhere, but whether and when such were obtained and whether they had them at the time of the September I, 1972, vacancy are questions to be answered in the compliance stage of these proceedings 535 quent or earlier time. Therefore, on the basis of the list or lists drawn up, it would seem that backpay from the date of the vacancy, September 1, should be granted to the first qualified person. However, I do not preclude any other division of the total backpay which may commend itself to the affected parties, as for example, an equal division of the total backpay among those strikers who remain able and available to fill the position. All sums to be paid under this proceeding should be computed in accordance with the formula set forth in F. W. Woolworth Company, 90 NLRB 289, and Isis Plumbing & Heating Co., 138 NLRB 716. On the basis of the foregoing findings and the entire record, I make the following: CONCLUSIONS OF LAW 1. Cyr Bottle Gas Co. is an employer engaged in com- merce within the meaning of Section 2(6) and (7) of the Act. 2. The Union is a labor organization within the meaning of Section 2(5) of the Act. 3. By not offering the position, formerly occupied by James Stewart and vacated by him on September 1, to any of the strikers on or after that date and by hiring Donald McKenzie for that position in September 1972, Respondent engaged in and is engaging in unfair labor practices within the meaning of Section 8(a)(1) and (3) of the Act. [Recommended Order omitted from publication.] Copy with citationCopy as parenthetical citation