Holmes Typography, Inc.Download PDFNational Labor Relations Board - Board DecisionsJun 17, 1975218 N.L.R.B. 518 (N.L.R.B. 1975) Copy Citation 518 DECISIONS OF NATIONAL LABOR RELATIONS BOARD Holmes Typography, Inc. and Bay Area Typographical Union No. 21, International Typographical Union. Case 20-CA-9194 June 17, 1975 DECISION AND ORDER BY MEMBERS FANNING, KENNEDY, AND PENELLO On February 25, 1975, Administrative Law Judge Irving Rogosin issued the attached Decision in this proceeding. Thereafter, the Union filed exceptions and a supporting brief, and the Respondent filed a brief in opposition to the exceptions. 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 conclusions 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 the complaint be, and it hereby is, dismissed in its entirety. 1 The Administrative Law Judge inadvertently referred to Respondent's answer as being filed October 23, 1973, instead of 1974. DECISION STATEMENT OF THE CASE IRviNG RoGOs1N, Administrative Law Judge: The complaint, issued September 20, 1974, alleges that Respon- dent has engaged in unfair labor practices within the meaning of Section 8(a)(1) and (5) and Section 2(6) and (7) of the Act. Specifically, the complaint, as amended at the hearing upon prior notice, alleges that Respondent, (1) since about December 15, 1973, and more particularly, in January, February, March, and April 1974, has engaged in specified acts of interference, restraint, or coercion through its president and agent, including statements that (a) Respon- dent would deliberately protract negotiations; (b) would never sign a collective-bargaining agreement with the I The allegations covered by (1),(d) were stricken on General Counsel's motion at the outset of the hearing, those covered by (1),(b) and (c) were dismissed on Respondent's motion at the close of the General Counsel's case for lack of proof. 2 This allegation was added by amendment at the outset of the hearing. 3 Designations herein are as follows: The General Counsel, unless otherwise stated or required by the context, his representative at the 218 NLRB No. 64 Union; (c) was contemplating moving its operation out of State to avoid bargaining with the, Union; and (d) threatened an employee with "unspecfied reprisals" for supporting the Union;1 and (2) since about December 15, has failed and refused to bargain collectively with the Union after demand, on about September 27, 1973, notwithstanding the Union' s status as exclusive representa- tive of the employees in an appropriate unit; and (3) has, since about June 24, 1974, made unilateral changes in the wages and hours of the unit employees, without prior consultation with the Union.2 The complaint further alleges that, since about June 6, 1974, certain named employees have been engaged in an unfair labor practice strike in protest against Respondent's unfair labor prac- tices.3 Respondent's answer, filed on October 23, 1973, admits the procedural and jurisdictional allegations of the com- plaint; admits the status of the Union as majority representative of the unit employees, at all times prior to June '6, 1974, but, for lack of information or belief, denies these allegations insofar as they relate to the period subsequent to June 6, 1974; admits the Union's bargaining demand, insofar as it relates to the period between September 27, 1973, and June 6, 1974; and denies generally and specifically the remaining allegations of the complaint. Further answering, Respondent alleges that, since about June 6, 1974, the Union and the named strikers have engaged in unfair labor practices, picketed Respondent's premises and have sought to induce customers to refrain from doing business with Respondent, in violation of Section 8(b)(3) and (d) of the Act, and that the Union has, itself, failed and refused to bargain in good faith, engaging in only "surface bargaining" for several months prior to June 6, 1974. Hearing on the complaint, as amended at the hearing, was held before me from November 19 to 22, 1974, both inclusive, at San Jose and San Francisco, California. All parties appeared and were represented by counsel, were afforded full opportunity to be heard, to examine and cross-examine witnesses, to introduce oral and documenta- ry evidence relevant and material to the issues, to argue orally, and to file briefs and proposed findings of fact and conclusions of law. The parties declined the opportunity to argue orally but exercised the right to file briefs. Pursuant to an extension of time duly granted, the General Counsel and Respondent filed briefs on December 23, 1974. No proposed findings of fact or conclusions of law have been filed by any of the parties. Upon the entire record in the case, and, based on the appearance and demeanor of the witnesses, and the briefs of the parties, which have been carefully considered, I make the following: hearing ; Holmes Typography, Inc., Respondent, the Company or the Employer, Bay Area Typographical Union No. 21, International Typo- graphical Union, the Charging Party or the Union; the National Labor Relations Act, as amended, (61 Stat. 136, 73 Stat. 519, 29 U.S.C. § 151, at seq.), the Act; the National Labor Relations Board , the Board . The charge was filed and served on May 14, 1974. HOLMES TYPOGRAPHY, INC. 519 FINDINGS OF FACT 1. THE BUSINESS OF RESPONDENT The complaint alleges, Respondent's answer admits, and it is hereby found that, at all times material herein, Holmes Typography, Inc., Respondent herein, has been a Califor- nia corporation engaged in the printing business at premises located in San Jose, California. During the year preceding issuance of the complaint, Respondent sold goods and furnished services valued in excess of $50,000 directly to customers located outside the State of Califor- nia. The complaint further alleges, Respondent's answer admits , and it is hereby found that, at all times material herein, Respondent has been an employer engaged in commerce and in operations affecting commerce within the meaning of Section 2(6) and (7) of the Act. II. THE LABOR ORGANIZATION INVOLVED The complaint alleges , Respondent's answer admits, and it is hereby found, that, at all times material herein, Bay Area Typographical Union No. 21, International Typo- graphical Union, the Union 'herein, has been a labor organization within the meaning of Section 2 (5) of the Act.4 III. THE ALLEGED UNFAIR LABOR PRACTICES the last three negotiating meetings, discussed later. Inci- dentally, he has been a member of the Printing Pressmens' Union for nearly half a century until his retirement as president of the Company. Respondent has occupied the plant at its present location for some 18 years, leasing the property for the past 8 years from the Holmes' family, consisting of George C. Holmes, his wife, and their two sons. Members of the Holmes family also own a controlling interest in three other business enterprises, known as Holmes Composition Service, Repro Graphic, Inc., both located in San Jose, and Auto Graphics in Los Angeles. The nature of Respondent's operation is essentially typesetting for outside customers. Of its annual gross revenues, 75 percent is derived from the setting of type for book publications; 10 percent from setting type for advertisements or commercial work; and the balance of 15 percent from industrial accounts located both inside and outside the San Francisco Bay area and the area commonly referred to as the Peninsula. In the setting of type for customers in the book publishing business, Respondent is in direct competition with some four other firms in the San Francisco Bay and Peninsula areas and, at least, three concerns in the Los Angeles and Orange County areas. According to Vice President Thomas L. Holmes, none of these competitors operate as union shops, and all operate on a 40-hour week, in contrast to Respondent, which has conducted a union shop and has operated on a 35-hour-week basis.5 A. Introduction Holmes Typography, Inc., engaged in the business of typesetting in the printing industry, was founded by George C. Holmes, late in 1956, when he became president of the corporation. He was joined by his two sons, Thomas L. Holmes, as vice president and 'secretary-treasurer, and George R. Holmes, whose duties encompassed substantial- ly all the production processes at the plant. In September 1973, George C. Holmes retired, effective January 1, 1974, and assumed the office of chairman of the board. On January 1, 1974, George R. Holmes succeeded his father as president of the corporation. George C. Holmes has, however, since served the corporation on an advisory basis; assisted in the preparation of the Compa- ny's counterproposals to the Union; and participated in 4 The Union is the successor to San Jose Typographical Union No. 231, party to a collective-bargaining agreement with Respondent, covering the unit employees involved, effective from December 6, 1971, to December 1, 1973. Although Respondent's answer admits the Union's status as majority representative of the unit employees prior to June 6, 1974, Respondent denies these allegations , for lack of information or belief, insofar as they relate to the Union's status since June 6, 1974. To the extent Respondent seeks to challenge the Union's majority status since June 6, 1974, the date the employees went on strike, there was no showing of any defection from the Union by the striking employees or any loss of majority. Moreover, the record establishes that Respondent recognized and engaged in negotiations with the Union commencing with the first session held on November 29, 1973. 5 Among competitors whom Holmes also named were companies elsewhere in California and the United States , as well as Great Britain. The foreign competitors employ representatives in the San Jose area and throughout the country to solicit business and submit bids for work in competition with Respondent . These findings are based on the undisputed testimony of Thomas Holmes , a member of the board of directors, for 4 years, and secretary-treasurer, for the past 3 years, of Western Typographers B. Collective-Bargaining Relations The Company has engaged in collective bargaining with the Union's predecessor at least since the firm was founded in 1956.6 The latest collective-bargaining agreement between the Company and San Jose Typographical Union No. 231, entitled "Typesetting Contract" and "Scale of Prices, was effective from December 6, 1971, to December 1, 1973. Sometime in 11972, San Jose Local No. 231 merged with Bay Area Local 21, both affiliated with the Interna- tional Typographical Union, with Local 21 emerging as the surviving local. Prior to the merger, Robert E. Troupe had been president of Local No. 231. Upon completion of the merger, Leon Olson became president, Morris Goldman, first vice president, and Troupe, second vice president.? Association, an association of employers engaged in the typesetting industry, covering the States of Arizona, California, Oregon, Washington, and Utah. Vice President Holmes has also been a director , for some 6 years, and a member of the executive comnuttee, for 4 years, of the International Typographic Association, representing typography plants in the United States, Canada, and foreign countries . Holmes acquired the data regarding his competitors in the course of exchanges of information with representa- tives of such companies at general conventions and regular meetings of the two Associations over the past 7 years. According to Holmes, based on studies and contracts furnished him by at least one British representative, wage rates paid by British competitors are approximately 40 percent lower than the hourly rate paid by Respondent. 6 According to the Company's founder, he had been engaged in negotiations with Local 231 since 1941 , when he commenced doing business in San Jose. 7 At the outset of the negotiations, presently discussed, Percy V. Cram, chief negotiator for the Company, raised the question of Local 21's right to represent the Company's employees . Although the Company, as well as other employers, had been notified of the merger of the two locals, and Local 21's successorship, and a subsequent increase in required contnbu- (Continued) 520 DECISIONS OF NATIONAL LABOR RELATIONS BOARD By letter dated September 27, 1973, Union President Olson served notice on Respondent of the Union's intention to terminate the collective-bargaining agreement as of December 1, 1973, and enclosed a copy of a Master Trade Plant Contract as a basis for negotiations for a new agreement. The letter stated that the contract had been accepted by the union membership, approved by the ITU Bureau of Contracts, and was already in effect in trade plants elsewhere in the Union's jurisdiction. The letter also proposed a union-security clause, as set forth on the inside backeover of the proferred contract. The letter requested an early meeting and offered to continue working under the old agreement in the event negotiations were not completed by the expiration date. The Company made no response until November 8, 1973, when Vice President Holmes, in a letter addressed to Goldman at the Union's office, referring to the expiration date of the contract on December 1, 1973, suggested negotiations with the Union's committee as early as possible prior to the expiration date "so that the negotia- tions do not prolong into an expanded period of time as it is not our intent to be incumbered with retroactive pay." Advising that he would be out of town on Monday or Tuesday of the following week, the letter stated that Holmes was anticipating hearing from Goldman during the latter part of the week. Following receipt of this letter, Goldman called Vice President Holmes and, in discussing the letter, told Holmes that he had sent the Company the standard notice sent to all employers. Discussion turned to the scheduling of meeting dates , Holmes suggesting that negotiations be held in the conference room at the plant. Goldman refused to meet on company premises and proposed instead that meetings be held in the De Anza Hotel, located in the vicinity. Holmes agreed to "check that out, and to call him back." According to Goldman, Holmes did not return his call. Later that month, however, Goldman received a letter from the Printing Industries of Northern California (PINC), notifying the Union that it was representing two employers (including the Company), in negotiations with the Union, and requesting meeting dates. Goldman thereupon called Reg Howard, director of PINC, who requested a copy of the Union's proposed agreement. Goldman told Howard that he had never received an acknowledgement of the proposal which he had sent to Respondent. Howard, too, inquired whether the Union would be willing to meet at the Holmes' plant but Goldman declined, stating that the Union would meet anywhere outside the plant, including at the offices of PING. Howard indicated that he would look into the matter of the Company's failure to acknowledge the Union's letter of termination and submission of the proposed contract. No date was set at that time for the first negotiating session . On about November 23, Howard notified' Percy V. Crain, a staff member of PINC, who conducted collective bargaining on behalf of members of the Association, that he would be representing Holmes Typography in contract negotiations with the Union.8 Crain conferred with Holmes, Sr., regarding the Union's contract proposals, and participated in drafting the Company's counterproposals. Thereafter, Crain acted as principal negotiator for the Company. Several days after learning that he would be acting in that capacity, Crain had a telephone conversation with Goldman. Crain repeated the request that meetings be held at the office of the Company. When Goldman rejected the request, Crain suggested postponing the date of the first conference which had been scheduled for November 29. Goldman told Crain that in view of the Company's position on retroactivity the Union wanted to meet as soon as possible. After a brief exchange, according to Goldman, Crain ventured that negotiations would require more than half-day sessions , and said that he intended to so advise the Company. On November 28, the Company notified the Union that a meeting room had been reserved at the Holiday Inn for the following day, November 29, at 2:30 in the afternoon. The first negotiating session was held on November 29, as scheduled. Goldman acted as spokesman for the Union's negotiating committee , which included Stanley Adams and Bob Bozarth, and generally acted in that capacity thereafter whenever the local president was unavailable. Representing the Company were Crain, Holmes, Sr., and his two sons. Also present at this meeting was Dick Martin, of D & J Typographers, the other employer-member of PING, Crain had been designated to represent .9 At the outset of the session, Crain questioned the Union's status as a result of the merger and its right to represent the Company's employees. After the Union satisfied Crain on this score, the parties proceeded to a preliminary discussion of the Union's proposals. The next meeting was scheduled for December 12, management representatives indicating that that was the earliest they could meet, having due regard for its normal business operations. Meantime, Crain assisted the compa- ny officials in preparing a counterproposal. Using a copy of the expired collective-bargaining agreement as a format, each page of the contract was photocopied on sheets large enough to accomodate proposed changes in the margin opposite the affected provisions. The term of the proposed contract was December 3, 1973, to December 1, 1975. During subsequent negotiations, the parties utilized this "counterproposal" as a basis for discussion. The Union had based its wage proposal on what it referred to as the San Francisco Trade Plant Area contract, which provided for an initial wage rate of $7.143 an hour, for a 35-hour straight time day-shift week (with overtime after 7 hours a day or 35 hours a week), or an aggregate of $250 a week, for a straight time day shift. In its counterproposal, Respondent offered an hourly wage rate of $6.673 an hour, for a 40-hour straight time day-shift workweek, aggregating $266.92 a week, for the first year, tions to the printing industry health and welfare fund , the Company had not 8 Crain retuned from his position with the Association as of April 1, 1974, previously challenged the validity of the merger or the right of Local 21 to but remained on its staff to complete contract negotiations . He remained represent the, Company's unit employees . In any event , apart from its with the Association on a retainer basis until about November 15, 1974. acquiescence in the merger, Respondent proceeded with the negotiations, 9 D & J Typographers subsequently withdrew from these negotiations implicitly recognizing Local 21 as majority representative of the employees. and eventually signed a contract with the Union. HOLMES TYPOGRAPHY, INC. 521 an hourly increase of 13 cents over the prevailing straight time day rate of $6.543 under the expired contract.10 Respondent's wage proposal also provided for an increase to $6.806 an hour, amounting to $272.26 per week, beginning December 4, 1974, as well as premium pay for the first and second night shifts is each year. It is undisputed that, at least since Respondent commenced operations, its typographical journeymen or apprentices have worked a 35-hour week. Altogether, the parties held 17 negotiating meetings between November 29 and June 6, 1974, including two separate meetings between Goldman and Crain, late in January or early February.11 Commencing with the second negotiating session, on the afternoon of December 12, tentative agreement was reached on various noneconomic issues, including provisions regarding the posting and cancellation of overtime (Hiring Practice, 6[a]), and the provision relating to the right of union representatives to enter composing rooms during working hours. (Sanitation, 46.)12 It should be noted that the preamblte to the Company's counterproposals, appearing opposite the photocopy of the title page of the expired contract, reads as follows: We propose the following deletions, additions and modifications in our present contract dated December 6, 1971, to December 1, 1973, the balance of the present contract as is except where modifications may be necessary to comply with these changes. Provisions in the Agreement dated December 6, 1971, to December 1, 1973, which are not proposed for amendment herein shall be considered acceptable to D & J Typographers and Holmes Typography, Inc., to be incorporated in an amended agreement. We reserve the right to add to, delete from, or modify these proposals during negotiations. [Emphasis supplied.] As of March 12, 1974, sufficient progress had been made in negotiations to warrant the following letter from Leon Olson, president of Local 21, to Crain: Dear Mr. Crain: As indicated at the conclusion of our last negotiating meeting [March 5 ] with Holmes Typography, the following is a list of the remaining unresolved issues which the Union feels are critical toward achieving a new contract: 1) New Processes clause as contained in Section 9(a) of the Printing Industries of Northern California contract. 2) Union Foreman language and rate of pay for foreman. 3) Recognition of Local overtime laws. 4) Vacation provisions of the PINC Agreement. 5) Nine paid holidays. 6) Sales, Successors and Assigns language. 7) Health and Welfare. 8) Pension contributions. 9) Wages 10) Settlement of disputes procedure as provided in PINC Agreement. 11) Supplemental Sick Pay We would again propose that the Agreement follow the format of the PINC Contract. I am pleased that we were evidently able to break the deadlock which had existed at the last meeting, and trust that both parties will diligently devote themselves to trying to get an acceptable agreement at the earliest possible date. Sincerely yours A copy of this letter was sent to Bob Holmes, and blind copies to Morrie Goldman, Stan Adams, and Ivan Halksworth. At the Union's request, discussion of economic issues under the new contract proposals was deferred until the latter stages of the negotiations. At the December 12 meeting, an attempt was made to schedule further meetings. With the yearend holidays intervening, it was decided to delay further meetings until after the first of the 10 Although the parties, throughout their negotiations, erroneously referred to the Employer's offer of a 13-cent-an-hour wage increase as a 3- percent wage increase , simple arithmetic indicates that this offer actually amounted to only a 2 -percent increase. 11 The dates of the meetings were as follows: November 29 and December 12, 1973; January 24, February 8 and 20, March 5, 15, and 22, April 25 and 26, May 3, 9, and 10, June 5 and 6, 1974; of whichm the last two meetings were scheduled by the FMCS commissioner . Of these, approxi- mately half were afternoon meetings, commencing at or about 1:30, the remainder, at 10 or 1 l a.m. 12 The sections indicated refer to the applicable provisions of the expired collective-bargaining; agreement: HIRING PRACTICE 6.(a) The Employer agrees to respect and observe all regulations governing the posting and cancellation of overtime as have been adopted by the Union, and as are in effect on the date of execution of this Agreement to be applicable to all employees covered by this agreement. SANITATION 46. The accredited representative of the Union for the performance of official duties, upon application to the business office , shall be permitted to enter the composing rooms at any time during working time. 522 DECISIONS OF NATIONAL LABOR RELATIONS BOARD year. Although the Union attempted to place the onus for this delay on Crain, because he had indicated he would not be available until after the holidays, it is evident that the postponement was by mutual consent. Crain called the Union at that time, and a meeting was scheduled for January 16. The meeting was canceled for the convenience of Respondent's officials, and was subsequently held on January 24. The only thing of significance which occurred at this meeting was that Respondent withdrew its approval of Section 46, quoted above, relating to permission to union representatives to enter the composing room on official business, and sought to impose further restrictions on this privilege. The next two meetings were brief sessions between Crain and Goldman, at which nothing of consequence occurred. At the next meeting, held on February 8, Respondent withdrew its approval of Section 6(a), previously quoted, concerning the Union's regulations relating to the posting and cancellation of overtime, on which the parties had agreed at the second bargaining session.13 According to Crain, Respondent's change of position on this issue resulted from a misconception of the Union's overtime rules because he had assumed that the rules in the proposal were the same as those appearing in the PINC and Local 21 contract, which he had negotiated. At the February 8 meeting, the Union protested that members of the Holmes family had been working in the plant, allegedly in disregard of the hiring provisions of the contract, and a formal grievance, prepared the day before, was submitted. Although no specific action was taken with respect to the grievance, the Company contended that the Union (more accurately, Local 231) had acquiesced in this practice over a long period of time, and the issue was ultimately resolved by permitting a continuance of this practice as to Thomas Holmes, who had acted as a foreman for several years, and George R. Holmes, who had always worked in production before becoming president. The issue as to whether Mrs. George C. Holmes, who worked occasionally as a proofreader, would be permitted to continue in that capacity was not defmitely resolved. At the same meeting, the Union presented an additional demand; namely, that Respondent furnish the Union, through its chapel chairman, with a copy of employees' weekly earnings so that it could verify the overtime posted by employees, as well as to facilitate the collection by the chapel chairman of union dues, which were based on earnings . Respondent maintained that, since it furnished its employees with this information on their paycheck stubs, the chapel chairman could obtain the information from the employees themselves. Moreover, Respondent contends, since this information was neither requested nor required for purposes of collective bargaining but merely as a convenience to the Union, it amounted to no more than a request to bargain about a nonmandatory issue. Respondent refused to accede to this demand and declined to supply such information. 13 The Union's rules, which this provision incorporated, were designed to require members steadily employed , to share available work with qualified unemployed or underemployed union members . The ITU rules regarding posting and cancellation of overtime do not appear in the expired collective- bargaining agreement between the parties, but are contained as Section 7(b) It ^ was during this interval, in late February or early March, that Board Chairman George C. Holmes is alleged to have stated to a group of employees that he could "drag out these negotiations for at least a year." This incident is discussed later. During the ensuing negotiating sessions , between Febru- ary 20 and May 3, discussions were held on the noneco- nomic issues, and agreement was reached on some. Thus, at the April 26 meeting, at which International Representa- tive Wilson was the union spokesman, agreement was reached regarding the section dealing with layoffs; reten- tion of the provisions regarding the duties of foremen, subject to the Employer's right to review union local laws affecting the performance of such duties; and the Compa- ny's proposal limiting notice regarding institution of new processes to 30 days. The next meeting was scheduled for May 3, Wilson having - indicated that he would not be available before then, due to other commitments. Although the meeting was held, Wilson did not attend. At the meeting held on May 9, International Representa- tive Wilson proposed that all noneconomic issues remain- ing unresolved be settled on the basis of the language in the expired contract between the parties. Respondent rejected this offer. It was actually not until the last three negotiating sessions that the economic issues were seriously discussed. The first of these meetings was held on May 10. According to Union Representative Goldman, Crain, the Company's principal negotiator, stated that the Company's wage proposal, demand for a 40-hour week, vacation pay, sick leave, and holiday pay offers were nonnegotiable, and that George R. Holmes had stated that the Company, had made up its mind regarding economic issues 2 months earlier. Crain denied Goldman's testimony in this respect and, although Respondent did not recede from its position, the evidence does not warrant the conclusion that it ap- proached the negotiations with a fixed determination not to bargain about economic issues or that it confronted the Union with a "take it or leave it" attitude regarding those issues. In fact, during the latter stages of the negotiations, the Company indicated that it would reconsider its position on its demand for a 40-hour week, as opposed to the Union's insistence on retaining the 35-hour week schedule, if the Union would offer something of compara- ble value. Thus, although Respondent did not submit a concrete proposal along these lines , it suggested that it would be receptive to a graduated wage scale based on the comparative skills required for the jobs involved. The Union steadfastly adhered to its insistence on retention of the 35-hour workweek, suggesting only that it might be receptive to instituting a new classification of computer- typist, with a wage scale falling somewhere between that of utilityman and journeyman, if Holmes Composition Service (also owned by the Holmes family), whose employees were outside the unit represented by the union, would enter into a collective-bargaining agreement with [Canceling Overtime ], in the Commercial Agreement between Bay Area Typographical Union No. 21 and Printing Industries of Northern California, effective from September 3, 1973, to August 31, 1975. The subsection has been attached hereto as Appendix "A." HOLMES TYPOGRAPHY, INC. 523 Local 21. Since the Company did not employ computer- typists at its typography plant, it rejected the proposal. No progress' was made during the final negotiating sessions and, after a brief meeting on June 6, negotiations were terminated. At the final negotiating meeting, the Company renewed its proposal for a 40-hour week, and a 3 (sic) percent hourly wage increase. The union negotiating committee caucused briefly and rejected the Company's offer. Goldman conceded that throughout the negotiations the Company repeatedly insisted that it could not increase wages without a corresponding increase in productivity. For the Union's part, although Goldman testified that he had no recollection of having made the statement, he was reliably reported to have remarked, in negotiations with Donald Fleming, president of Atherton's Advertising Typography, on November 18, 1973, as well as during negotiations with Respondent, that the Union would not sacrifice 3,000 union members for the sake of one shop, an obvious allusion to its determination to secure an accepta- ble contract on its own terms. As of the February 20 (seventh session) negotiating meeting, the Union was already taking steps to obtain strike authorization from the International. At a union meeting held May 29, after a report by Goldman on the state of negotiations, the members voted to strike against Respondent . After two further unsuccessful negotiating meetings, Respondent's employees went on strike. At the time of the hearing, the employees were still on strike and picketing the plant. On June 20, Respondent mailed identical letters to all its employees, including those on strike, informing them that it intended to institute the changes in wages and working conditions, substantially as offered the Union during negotiations, effective June 24, 1974.14 Mention has been made of a statement attributed to Board Chairman Holmes, late in February or early in March, while negotiations were in progress, in which he is alleged to have said, "I can drag out these negotiations for at least a year." According to Lorne Shirton, Holmes made this remark to a group of employees early one morning before work commenced while they were standing near the makeup bank. The employees in the group included Henry McCray and Gordon Newman, then chapel chairman. According to Shirton, the group was standing about 10 feet from his station when he allegedly overheard the remark . Actual measurements by George R. Holmes, and a plat of the area involved, made for the purpose of the hearing, established this distance to be between 23 and 24 feet . George C. Holmes, categorically denied making the statement, testifying that he refrained from discussing the negotiations with the employees, referring them instead to the chapel chairman . Shirton was unable to testify to anything more regarding the context in which the alleged statement was made or what else was said by any of, the parties to the conversation. Neither of the employees to 14 The text of this letter in its entirety is annexed to this Decision as Appendix "B." 15 Donald E. Joshn, an employee who knew McCray, testified, on the basis of correspondence he had had with him, that McCray had been residing in Scotland since June 6, when the strike began There was no showing whether any effort had been'made to obtain McCray's testimony by deposition or other means. Although the General Counsel served a whom the statement was allegedly made was called to corroborate Shirton's testimony.15 On the basis of the foregoing, including Holmes' positive denial that he made the statement; the lack of corrobora- tion of Shirton's testimony; the distance between Shirton's work station and the place where Holmes' remark is claimed to have been uttered; Holmes' considerable background in dealing with the Union's predecessor, which would have informed him of the folly of making such a remark, it is found that the burden of proof that Holmes made the statement has not been sustained, and it will be recommended that this allegation be dismissed. It is also found that Shirton's testimony furnishes no support for the 8(a)(5) allegations of the complaint.' Contentions of the Parties The grounds for the allegations of the complaint have been succinctly summarized in Respondent's brief as follows: (1) "foot-dragging" in delaying the commence- ment of negotiations and failing to schedule subsequent meetings; (2) requiring late afternoon sessions, thereby curtailing negotiations; (3) rescinding tentative agreements previously reached; (4) discussions without intention of reaching agreement; (5) refusing to supply the Union with essential information; (6) statements that negotiations would be unduly prolonged; (7) instituting unilateral changes in working conditions; and (8) surface bargaining and refusal to bargain by Respondent's entire course of conduct. It is unnecessary to discuss these grounds seriatim. Although the Union mailed its notice of termination on September 27, and Respondent took no action until November 8, when it notified the Union of its desire to commence negotiations at the earliest possible date, there is no substantial evidence that Respondent deliberately sought to delay negotiations. Considering that the contract did not expire until 3 weeks after the date of Respondent's letter and, more especially, its expressed concern at any delay, in view of its position with regard to retroactivity, it is difficult to conclude that Respondent was bent on procrastination. Moreover, Respondent was entitled to a reasonable opportunity to consider and evaluate the Union's proposals. Although Vice President Holmes informed the Union that he would be unavailable due to his absence from the city the first 2 days of the following week, he stated that he would expect to hear from the Union during the latter part of that week. When Goldman reached Holmes after receiving his letter, he discussed with him the scheduling of meeting dates. Some disagreement arose over the place of such meetings. Thereafter, PINC notified Goldman that it would be representing the Company, and requested a copy of the Union's proposals. The PINC representative inquired whether the Union would be willing to meet for subpena on Gordon T. Newman on November 12, 1974, by registered mail, at an address in British Columbia, Canada, Newman did not appear, and there was no showing of any effort to enforce the subpena or to obtain his testimony by any other means. There was no showing that any of the other employees alleged to have been present when it is claimed Holmes made the statement were unavailable. 524 DECISIONS OF NATIONAL LABOR RELATIONS BOARD negotiations at the Holmes plant. Goldman declined, although he asserted that the Union would be willing to meet anywhere outside the plant, including the PINC offices. On about November 23, Crain was designated to act as principal negotiator for the Company and, within a few days, contacted Goldman and after some preliminary skirmishing regarding a meeting place, suggested that the meeting, already scheduled for November 29, be post- poned pending a decision on where meetings were to be held. When Goldman reminded Crain of the Company's position on retroactivity, and insisted on a meeting as early as possible, Crain acquiesced, and agreed to meet on November 29, when the first meeting was actually held. Although 2 months had elapsed since the Union's initial notice of termination, considering the necessity for reviewing the Union's proposals and for conferring with the PINC representative who was to act as Respondent's principal negotiator, the efforts to reach agreement on the site for negotiating meetings, and the necessity for conducting its normal business operations, it cannot be said that Respondent was deliberately seeking to delay the commencement of negotiations to frustrate the collective- bargaining process. Moreover, part of the delay must be attributed to the unavailability of union negotiators, who were also meeting with other employers during this period. The intimation that the delay in commencing negotia- tions may have been due, in part, to Respondent's reluctance to deal with Local 21, as successor to the union with which Respondent had been dealing for so long in the past, is unwarranted. While it is true that Crain may have expressed some doubt at the outset of the negotiations regarding the merger and the Union's right to represent the employees, and that Holmes, Sr., may have indicated a preference for dealing with former Local No. 231, there is no evidence that this adversely- affected Respondent's attitude in subsequent negotiations.16 Crain' s misgivings were readily allayed, and when the Union satisfied him at the outset of the legality of the merger and the Union's authority to represent Respondent's employees, the subject was not brought up again in the negotiations. As to the intermittent nature of the negotiating sessions, the longest hiatus, between the second and third meetings (December 12 to January 24) was largely attributable to the holiday season. The Company had requested an 8-day postponement from January 16 to 24, apparently for valid business reasons, in which the Union acquiesced. Both parties had concurred in the holiday recess . Subsequent dates were scheduled by mutual consent, and dictated in some instances by the Union's other commitments. With regard to the scheduling of meetings in the afternoon, despite the Union's contention that Crain had stated to Goldman, in their initial conversation, that he felt that all-day meetings would be required, and that he would 1 Robert E. Troupe, president of San Jose Local 231 at the time of the merger, and second vice president of Bay Area Local 21, since, testified that twice during negotiations Holmes, Sr., stated that he was unhappy with Local 21, and on April 19, and again during a recess while the hearing was in progress, that the merger was a. "big mistake ," and that if the Union wanted a fight, he "wasn't going to back away from it." Troupe himself, however, acknowledged that former members of Local 231 had expressed disenchantment with Local 21. As to the latter remarks attributed to so inform Respondent (which Crain, incidentally denied) there was no showing that the Union protested against afternoon- meetings, nor does the evidence support a finding that Respondent deliberately scheduled afternoon meetings to subvert the bargaining- process. Presumably, the meetings were scheduled in the afternoon to cause the least possible disruption to Respondent's normal business operations. There was no showing that the scheduling of afternoon negotiating sessions prevented a full and fair discussion of all bargaining issues. It should also be noted that the Union was also negotiating with other employers in the industry, on some occasions conducting such negotiations in the mornings of the very day it was meeting with Respondent in the afternoon. It ii, therefore, found that Respondent did not, by- the delay in commencing negotiations, the scheduling of subsequent sessions or by holding afternoon sessions, engage in dilatory tactics to hinder, delay, impede, or frustrate the bargaining process. The next contention that Respondent withdrew or revoked its previous agreement to certain proposals , relates to the issues of cancellation and posting of overtime, as provided in the Union's rules, and the right of union representatives to enter the composing room during working hours.17 The short answer to this contention may be found in the preamble to Respondent's counterpropo- sals, quoted earlier, which stated, in material part: We reserve the right to add to, delete from or modify these proposals during negotiations. That Respondent was not alone in this position is evident from Crain's testimony, not specifically denied, that Goldman had stated, at the February 8 meeting, that he wanted it understood that all language was tentative until complete agreement was reached on all aspects of the contract, that Crain concurred in that position, and proceeded with negotiations on that basis. Whatever may be said for the desirability of securing firm agreement on specific issues at each stage of negotiations, such fragmen- tation of the bargaining process is not necessarily condu- cive to consummating a complete agreement. For, it is an accepted technique in collective bargaining to relinquish positions previously adopted as a quid pro quo for concessions granted by the other side. With regard to both these disputed issues, Respondent advanced cogent rea- sons for its change of position. As to the cancellation and posting provision, Crain had assumed, erroneously, it turned out, that the provision was' the same as that contained in the San Francisco area contract rather than the one included in the expired contract with San Jose Local No. 231. When Crain discovered a discrepancy, he sought to renegotiate this provision. Thus, it is evident that Respondent's purpose in withdrawing its tentative agreement with regard to the Holmes, they do not constitute an unlawful threat . In any event, this evidence does not warrant a finding that these were factors in the outcome of negotiations. 17 In his brief, Respondent's counsel inadvertently refers to the latter provision as the one dealing with the right of members of the Holmes family to work in the plant . Respondent sought to modify the provision relating to access by union representatives to the composing room by making it conditional on noninterruption of company operations. HOLMES TYPOGRAPHY, INC. cancellation and posting of overtime was to clarify otherwise vague and ambiguous provisions rather than to frustrate collective bargaining. The General Counsel's contention that, since Crain had himself been the principal employer negotiator on the Commercial Agreement be- tween the Union and PINC, which contained a reference to the union laws relating to overtime, Crain should have been aware of any discrepancy between the contract proposal provision and that included in the PINC contract. Apart from Crain's uncontroverted testimony that he had requested a copy of the union laws on the subject, and had never been provided with it and, hence, was unfamiliar with the Union's actual requirements, it is not unreasona- ble for Crain to have assumed that the provisions were identical in each instance. For all the foregoing reasons, it is found that Respon- dent, by withdrawing its tentative approval of the provi- sions in question, has not engaged in bad-faith bargaining. The issue concerning Respondent's refusal to agree to a provision requiring it to furnish the Union with a weekly list of employee earnings, has been previously adverted to, and for the reasons advanced by Respondent, previously outlined, it is found that the refusal to accede to the Union's request does not constitute a refusal to bargain, and does not amount to indicia of bad faith. The allegation that a company official made an isolated statement to employees while negotiations were under way, that he could unduly prolong negotiations, has been fully discussed earlier, and dismissed. The most serious allegation deals with the contention that Respondent engaged in negotiations with no intention of reaching agreement. The General Counsel characterizes this conduct as "surface bargaining" as manifested by Respondent's "whole course of conduct." The evidence of what took place during the bargaining sessions, though not related in minute detail , fails to support this contention. It is evident that the sticking point in the entire negotiations was over the issue of wages and the length of the workweek. It is hardly coincidental that this issue was deferred until the latter stages of negotiations. It was also evident that despite any previous agreement which may have been reached on noneconomic issues, no contract would be finalized until agreement could be reached on bread-and-butter issues. It is conceded that Respondent repeatedly insisted that it could not grant a wage increase without obtaining greater productivity. In addition to competition from nonunion shops, most of which operated on a 40-hour week at nonunion wages , Respondent had been faced with a steadily declining loss of business, especially in the book publishing phase, resulting from plant closures or removals of publishing houses from the west coast, coupled with increasing foreign competition in this field from companies paying wages amounting to 40 percent of Respondent's wage scale . As an indication of its concern, Respondent drastically reduced the salaries of its officers by more than 50 percent, from $33,000 to $15,600 a year between 1971 and 1973. Holmes, Sr., who retired as of January 1, 1974, is The dictionary definition of arm's-length bargaining is singularly apropos to the negotiations in this case: "... the condition or fact that the parties to a transaction or negotiation are independent and that one does 525 was receiving only $200,a month as expenses. Under all the circumstances, it cannot be maintained that Respondent's offer of a 13-cent-an-hour increase, based on a 40-hour week, and its failure to'increase this offer during negotia- tions, manifested a lack of good-faith bargaining. The Union at all times steadfastly adhered to its position that, under no circumstances, would it give up the 35-hour workweek, asserting that it would not sacrifice 3 thousand members for the sake of 20 jobs. Respondent, on the other hand, in a genuine effort to resolve this obvious impasse, indicated that it would be willing to consider a 35-hour week if the Union could offer some quid pro quo, such as the establishment of new job classifications and rates for skills falling between utilityman and journeyman. The Union's response was to propose a new job classification of computer-typist, which Respondent did not require. It is, of course, axiomatic that good-faith bargaining does not require either party to agree to a proposal or require the making of a concession. Yet, it would be unrealistic to ignore the fact that the willingness to agree to proposals or make concessions is some measure of a party's good faith. It is, therefore, significant that in negotiations with the Union, Respondent acceded to the Union's demand for union security, an entirely new proposal, which the predecessor union had not enjoyed; had capitulated to the Union's insistence on retention of contract provisions permitting reproduction (commonly, though disparagingly, referred to as setting of "bogus" type, anathema to employers in the industry), and other noneconomic issues. That negotiations foundered on the basic economic issues establishes only that the parties had been engaging in "arm's length bargaining." 18 Even the intervention of the FMCS mediator 2 days before the strike failed to resolve the impasse, which, it is found, existed. Although the Union had tacitly threatened Respondent with a strike several weeks earlier, the strike did not begin until June 7, when the employees remained away from their jobs without warning. The intention to strike was, however, publicized in the Union's periodical, which undoubtedly reached the attention of Respondent. The strike was still current at the time of the hearing. Since it has been found that Respondent has not unlawfully refused to bargain, within the meaning of the Act, and has not engaged in any, other unfair labor practices, it is obvious that the strike was not caused or prolonged by any unfair labor practices on Respondent's part. It, therefore, follows that the strike was wholly economic in origin, and has remained so. The employees who have engaged in the strike have been, and continue to remain economic strikers, with all attendant consequences. With regard to the allegation that Respondent made unilateral changes in the, working conditions of its employees, based on the letter mailed on June 20, effective June 24, 1974, it is sufficient to point out that, since the parties had reached a genuine impasse in negotiations, Respondent was at liberty to institute the changes which it had previously offered, and which the Union had rejected. not dominate the other . . . [arm's-length bargaining ]." Webster's Third New International Dictionary, 1963. 526 DECISIONS OF NATIONAL LABOR RELATIONS BOARD It is, therefore, found, on the basis of the foregoing and on the entire record that Respondent has not by this or any other conduct alleged in the complaint, engaged in a refusal to bargain with the Union within the meaning of Section 8(a)(5) of the Act. 7. The unfair labor practices in which Respondent is alleged to have engaged are unfair labor practices within the meaning of Section 2(6) and (7) of the Act. [Recommended Order dismissing complaint omitted from publication.] IV. THE EFFECT OF THE ALLEGED UNFAIR LABOR PRACTICES UPON CON[MERCE The activities of Respondent, set forth in section III, above, occurring in connection with the operations of Respondent, described in section I, above, have a close, intimate, and substantial relation to trade, traffic and commerce among the several States, and tend to lead to labor disputes burdening and obstructing commerce and the free flow of commerce. V. THE REMEDY Having found that Respondent has not engaged in unfair labor practices within the meaning of Section 8(a)(l) and (5) of the Act, it will be recommended that the complaint be dismissed in its entirety. Upon the basis of the foregoing findings of fact, and upon the entire record in the case, I make the following: CONCLUSIONS OF LAW 1. Holmes Typography, Inc., of San Jose, California, Respondent herein, is, and at all times material herein has been, an employer engaged in commerce and in an industry affecting commerce within the meaning of Section 2(2), (6), and (7) of the Act. 2. Bay Area Typographical Union No. 21, Internation- al Typographical Union, the Union herein, is, and at all times material herein has been, a labor organization within the meaning of Section 2(5) of the Act. 3. At all times material herein, Respondent's pro- duction employees, including foremen, but excluding guards and supervisors as defined in the Act, have constituted a unit appropriate for the purpose of collective bargaining within the meaning of Section 9(b) of the Act. 4. At all times material herein, Bay Area Typographical Union No. 21, International Typographical Union, the Union herein, has represented a majority, and has been the exclusive representative of all employees in the aforesaid appropriate unit, for the purpose of collective bargaining within the meaning of Section 9(a) of the Act. 5. Respondent has not, since about December 15, 1973, or at any time thereafter, failed or refused to bargain collectively with the Union on behalf of the employees in the appropriate unit above-described, in violation of Section 8(aX5), and has not interfered with, restrained, or coerced its employees in the exercise of the rights guaranteed in Section 7, or engaged in unfair labor practices within the meaning of Section 8(a)(1) of the Act. 6. The strike in which Respondent's unit employees have engaged since June 6, 1974, was not caused or prolonged by any unfair labor practices on the part of Respondent and has, at all times material, constituted an economic strike. APPENDIX A Canceling Overtime [7] (b) When any situation holder accumulates overtime equal to the unit of hours established for a regular shift he shall engage a competent substitute prior to the start of his shift for the purpose of canceling such overtime; provided, it shall not be mandatory that any situation holder cancel more than one day's accumulated overtime in any one financial week nor shall it be mandatory that any situation holder cancel accumulated overtime on any shift which falls within the financial work week and for which premium pay is provided for by contract. Holidays or time lost through "begging off" shall not cancel overtime. Overtime amounting to a full shift shall not be cancelled until sixty days have elapsed (exclusive of paid vacations) from the date it was worked or first accumulated to the number of hours equal to a full shift unless it has been given out in accordance with the laws of the Union. The sixty-day cancelation period shall not begin until the number of hours -of accumulated overtime equals the number of hours constituting a full shift. Overtime amounting to less than a full shift shall be posted indefinitely unless canceled by the employment of a substitute. When more than one substitute is available the one with the most accumulated shifts of overtime must be regarded as unavailable unless there is enough work to be given out by the office or situation holders to employ all substitutes; provided, no substitute shall be restricted on either of the first four shifts in an office with a five-day work week (or the first three shifts in an office with a contractual four-day work week) for which he accepts work during a financial week, nor shall premium shifts be included in this calculation. A substitute cancels a shift of overtime on any day, up to the number constituting a week's work he does not work in a financial week. Any days worked in that week shall be deducted from said work week. For the purpose of canceling overtime, a situation holder need not hire a substitute who refuses to accept a situation or a "fF ' slip he is competent to fill in the Chapel' for a period of 30 days from such refusal. Nor need a situation holder hire not-at-trade members, proprietor members, pensioner members, members working on emergency cards or members retaining dual priority during a strike or lockout while drawing strike benefits. However, a situation holder shall cancel ' overtime for any shift he hires such members. The oldest overtime shall be given out first. When there is more than one journeyman with the oldest overtime, the journeyman with the most overtime shall cancel first. (c) Should the number of substitutes available for hire for the forced cancelation of overtime in, any classification on the same shift and the same day be so great as to jeopardize the production schedule of the plant, the HOLMES TYPOGRAPHY, INC. number of such substitutes available in such classification, shift or day may be limited by mutual agreement between the foreman and the chairman. APPENDIX B June 20, 1974 On June 7 Bay Area Typographical Union No. 21, your collective bargaining representative, instituted a strike against this company, and you and the other employees have engaged in picketing since that date. As you have observed, our operations have continued without interrup- tion. This does not mean that we prefer the strike, but that we are not in a position to grant the demands of Local 21 and that Local 21 is not willing to agree to the terms which we find necessary for the proper operation of the business. Just as Local 21 was entitled to call a strike, we are entitled to continue in business despite the strike. So that you might know what the main issues were which led to the impasse in the bargaining, we are taking this means to advise you as follows: 1. We proposed a 40-hour week. The union has insisted on a 35-hour week. We explained that our competition in the area and in the east comes from shops working on a 40-hour week and that we had to be competitive on that basis, among others. The union has insisted on the San Francisco commercial shop practice. 2. We proposed an hourly first-shift rate for journey- men of $6.673, which would amount to $266.92 per week. We proposed a second-shift rate for journeymen $6.798, which would amount to $271.92 per week. The union proposed rates of $7.03 and $7.24, which would amount to weekly wages of $246.00 for first-shift and $253.50 for second-shift journeymen. 3. We proposed the same vacation schedule, whereas the union proposed 4 weeks from the first year. 4. We proposed to continue our practice of allowing employees make up time, but the union opposed it. 527 5. We proposed no change in holidays, but the union requested one more. 6. We offered to maintain health and welfare benefits, which would have increased our cost $2.15 per employee per week. 7. We proposed that the pension contributions remain the same, but the union requested 50$ per shift more. There were other differences which were not of such great importance. The major disputes were and still are the 40-hour week and the hourly wage rate. We intend to place into effect the terms of the last offer made to Local 21 on Monday, June 24, and will offer to any employees returning to work or applicants for employment those terms and conditions, except for the health and welfare and pension contributions. We will have to substitute another health and welfare plan having comparable benefits and will pay the amount of the pension contributions directly to employees. These changes will be necessary because , in the absence of a union contract, we will not be eligible to contribute to the plans which are related to collective bargaining agreements. You are hereby notified that, beginning Monday, June 24, we will accept applications for employment and will, as the need for employees arises, hire permanent replace- ments for those who are on strike. If you wish to return to work, please notify us and we will advise you of any vacancies which still remain. This letter is not intended and should not be construed as an offer to bargain with you or any of our other employees, individually or directly. You are still represent- ed by Local 21 and we are willing to resume bargaining with that organization in accordance with our legal obligations at any time. This letter is written solely to inform you of the facts of our last offer, of our intention to put that offer into effect next Monday, and of our plan to hire permanent replacements as they are needed. A'copy of this letter is being sent to Local 21 so that it will be fully advised. Sincerely yours, cc: Bay Area Typographical Union No. 21 Copy with citationCopy as parenthetical citation