Intermountain Rural Electric AssociationDownload PDFNational Labor Relations Board - Board DecisionsJan 8, 1981253 N.L.R.B. 1153 (N.L.R.B. 1981) Copy Citation INTERMOUNTAIN RURAL ELECTRIC ASSOCIATION Intermountain Rural Electric Association and Inter- national Brotherhood of Electrical Workers, Local No. 111. Cases 27-CA-6151, 27-CA- 6280, and 27-CA-6305 January 8, 1981 DECISION AND ORDER BY CHAIRMAN FANNING AND MEMBERS JENKINS AND PENEI.LO On September 29, 1980, Administrative Law Judge Richard J. Boyce issued the attached Deci- sion in this proceeding. Thereafter, Respondent filed exceptions and a supporting 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 brief and has decided to affirm the rulings, findings, 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 Re- lations Board adopts as its Order the recommended Order of the Administrative Law Judge and hereby orders that the Respondent, Intermountain Rural Electric Association, Littleton, Castle Rock, Conifer, Strasburg, and Woodland Park, Colorado, its officers, agents, sucessors, and assigns, shall take the action set forth in the said recommended Order, except that the attached notice is substituted for that of the Administrative Law Judge. i The fact that we are ordering Respondent to reinstitute its pension plan as it existed as of December 31. 1978, although allegedly unqualified by reason of IRS Ruling 78-403. does not preclude the parties from bar- gaining over any proposed changes, including retroactive changes. in- tended to retain IRS qualification Rather. our Order merely restores the status quo ante and places the parties in the positions they sould have enjoyed but for Respondent's illegal conduct Respondent's motion to reopen the record shall be, and it hereby i, denied as irrelevant to the issues presented for our review. In addition to the reasons given by the Administrative l.aw Judge fr finding Tate's discharge to iolate Sec (a)(3). we note that a principal reason for Re- spondent's denial of Tate's request for lealve namely, the hacklog f work fr her. as, itself he product of Respondenlt'les earlier unlassful sus- pension of her 253 NLRB No. 164 APPENDIX NOTICE To EMPLOYEES POSTED BY ORDER OF THE NATIONAL LABOR RELATIONS BOARD An Agency of the United States Government After a hearing at which all sides had an opportu- nity to present evidence and state their positions, the National Labor Relations Board found that we have violated the National Labor Relations Act, as amended, and has ordered us to post this notice. The Act gives employees the following rights: To engage in self-organization To form, join, or assist any union To bargain collectively through repre- sentatives of their own choice To engage in activities together for the purpose of collective bargaining or other mutual aid or protection To refrain from the exercise of any or all such activities. WE WIll. NOT refuse to bargain collectively with International Brotherhood of Electrical Workers, Local No. 111, as the representative of the employees in the appropriate unit de- scribed below, by abrogating article XVII of the 1977-80 bargaining agreement between us and the Union, as concerns the treatment of pension plan dividends, or by abrogating any other provision of said agreement, without the valid consent of the Union. The appropriate unit is: All production and maintenance employees employed by us at and out of our Littleton, Colorado, place of business, and at or out of our branch places of business, including Castle Rock, Conifer, Strasburg, and Wood- land Park, Colorado, including the ware- houseman, the janitor, the assistant engi- neers, and chain and rod man; excluding office clerical employees, guards, profession- al employees, and supervisors as defined in the Act. WE WI.L NOT refuse to bargain collectively with the Union, as the representative of the employees in the above unit, by failing to pro- vide the Union, promptly upon request, with complete information underlying our decision to alter the application of dividends under our pension plan; or with any other information to which the Union is lawfully entitled as bar- gaining representative. I 11 53 DECISIONS OF NATIONAL LABOR RELATIONS BOARD WE WILL NOT discharge, suspend, repri- mand, or otherwise discriminate against em- ployees for engaging in union or concerted ac- tivities protected by the Act. WE WILL NOT tell employees that "a blan- ket" has been put on raises "because of the filing" of a petition for a union election; and that raises probably will not be forthcoming "if the Union comes in," but probably will be "if the Union doesn't come in." WE WILL NOT ask employees why the em- ployees "were filing for a union." WE WILL NOT indicate to the employees, by memorandum or otherwise, that the Union's election victory and the organization effort preceding it were a futility and would cause them economic detriment. WE WILL NOT tell employees, in response to their union sympathies and activities, that we are thinking of suspending them or that they will "probably be fired." WE WILL NOT in any like or related manner interfere with, restrain, or coerce employees in the exercise of their rights under the Act. WE WILL rescind the change in the treat- ment of pension plan dividends, effective Janu- ary 1, 1979, as it affects employees in the above unit; and execute whatever documents, make whatever remittances, and otherwise do whatever is necessary to restore the situation, as concerns employees in the above unit, to that which would now obtain had the change never been made. WE WILL promptly provide the Union with all documents and information requested by it on May 31 and August 16, 1979, concerning the pension plan. WE WILL, upon request, to the extent re- quired by Section 8(d) of the Act, bargain col- lectively with the Union as the representative of our employees in the above unit, concerning contemplated changes in the terms or condi- tions of employment of those employees, and, if an understanding is reached, embody it in a signed document. WE WILL offer Katherine Tate immediate and full reinstatement to her former job or, if that job no longer exists, to a substantially equivalent job, without prejudice to her se- niority or other rights and privileges, discharg- ing a replacement if necessary; and WE WILL make her whole for any loss of earnings or benefits suffered by reason of her unlawful sus- pension and discharge in July 1979, with inter- est on lost earnings. WE WILL expunge from our files and other records all copies of or references to the repri- mand, dated July 5, 1979, that was issued to Kathleen Gunton, and inform her in writing that this has been done. INTERMOUNTAIN RURAL ELECTRIC ASSOCIATION DECISION STATEMENT OF THE CASE RICHARD J. BOYCE, Administrative Law Judge: This matter was heard before me in Denver, Colorado, on November 14-16, 1979. The underlying charges were filed by International Brotherhood of Electrical Work- ers, Local No. 111, herein called the Union, on March 19, July 12, and August 7, 1979. A consolidated com- plaint, superseding separate complaints of an earlier date, issued on October 18, 1979, alleging that Intermountain Rural Electric Association, herein called Respondent, had committed certain violations of Section 8(a)(1), (3), and (5) of the National Labor Relations Act, as amend- ed. FINDINGS OF FACT 1. JURISDICTION Respondent is a Colorado corporation with its head- quarters in Littleton, providing electrical power to the communities of Castle Rock, Conifer, Strasburg, and Woodland Park, as well as Littleton. Its annual gross income exceeds $250,000, and it annually supplies power of a value exceeding $5,000 to firms in Colorado which meet the Board's direct inflow jurisdictional standard. Respondent is an employer engaged in commerce and in operations affecting commerce within the meaning of Section 2(2), (6), and (7) of the Act. II. LABOR ORGANIZATION INVOLVED The Union is a labor organization within the meaning of Section 2(5) of the Act. III. THE AI.I.EGED 8(a)(5) and (I) VIO.ATIONS A. Allegations The Union represents the so-called outside or produc- tion and maintenance employees in a unit embracing Re- spondent's operations in the five communities named above.' The complaint alleges the following violations of Section 8(a)(5) and (1) with respect to this unit: The formal unit description is: All production and maintenance employees employed by [Respond- entl at and out of its Littleton, Colorado, place of business, and at or out of its branch places of business, including Castle Rock, Conifer, Strasburg, and Woodland Park, Colorado, including the warehouse- man, the janitor, the assistant engineers, and chain and rod man, ex- cluding office clerical employees, guards, professional employees, and supervisors as defined in the Act. Continued 1154 INTERMOUNTAIN RURAL ELECTRIC ASSOCIATION (a) Since April 18, 1979, Respondent has failed to make pension contributions for the employees as previ- ously agreed upon with the Union, and has refused to negotiate the matter with the Union. (b) Since May 31, 1979, Respondent has failed to comply with the Union's request for assorted information concerning an employee pension plan and Respondent's decision to reallocate dividends from the plan. B. Facts Article XVII of the current bargaining agreement cov- ering the employees in the unit just described, effective from December 1, 1977, through November 30, 1980, provides: The Association [Respondent] agrees to keep in full force and effect, during the term of this Agreement, the retirement plan, including the return of divi- dends and profits to the plan . . . presently in effect covering employees of the Association. Where con- tribution is presently required by an employee, such contribution shall continue to be required. At the time this agreement was entered into, Respond- ent was party to an annuity contract with Minnesota Mutual Life Insurance Company (herein called Minneso- ta Mutual) affording pension coverage for those employ- ees, unit and nonunit alike, choosing to participate. Par- ticipating employees contributed between 3 and 5 per- cent of their compensation to fund the plan,2 with Re- spondent contributing the remainder. Among the features of the annuity contract was a provision that yearly divi- dends in excess of 19,000 "shall be allocated to" the participating employees. Because of the above-quoted provision of the bargaining agreement, Respondent had bound itself to continue this arrangement on behalf of the unit employees for the term of that agreement. Total dividends for 1978 were $72,000, meaning that, had the past practice been followed. the participants, unit and nonunit, would have received an allocation of $53,000 in January 1979. But this was not to be. In the summer of 1978, Respondent engaged the accounting firm of Peat, Marwick, Mitchell & Co. (herein called Peat) to review the pension plan, the objective being to reduce its cost to Respondent. On November 21, 1978, representatives of Peat, and Minnesota Mutual met with Respondent's general manager, Stanley Lewandowski. They concluded that the plan as then constituted and funded eventually "would bankrupt the Company," and, further, that a substantial question existed whether the handling of dividends under the plan prevented its being a "defined benefit pension plan" qualifying for favored treatment under the Internal Revenue Code. This was followed by letters to Lewandowski, dated December 1, from Minnesota Mutual and Peat. Both let- ters cited IRS Ruling 78-403, which issued on November 13, 1978. The Minnesota Mutual letter, characterizing the situation addressed by the ruling as "similar" to Re- It is undisputed that this is an appropriate unit for purposes of the Act, and it is so found. z The participants contributed 3 percent of their first $350 in monthly income and 5 percent of their monthly income o,er $350 spondent's, concluded: "[]t is obvious from the ruling they [dividends] can no longer be allocated to the par- ticipants." Similarly, the Peat letter construed the ruling to hold "that a defined benefit plan that credits excess in- vestment income to individual participant accounts will not qualify." Noting that the ruling by its terms excused such plans already in existence, provided they were amended to conform "by the end of the first plan year that begins after December 31, 1978, and that the amend- ment is effective as of the first day of such plan year," the Peat letter stated: It would appear necessary then . . . to retain its qualified status, the Plan must be amended no later than December 31, 1979, to eliminate the crediting of dividends to participants with respect to divi- dends paid on or after January I, 1979. Lewandowski reported these developments at the monthly meeting of Respondent's board of directors, held December 5, adding that, since the existing plan as incorporated in the bargaining agreement provided for the allocation of excess dividends to the participants, any change in that regard "would have to be agreed to by the Union." Lewandowski's report continued: Since we have two years remaining on the . . . cur- rent contract, the Union would have to agree to open up the contract for renegotiation of that sec- tion. Lewandowski stressed the need for "a strong selling point" to induce the Union to forgo the dividend alloca- tion, adding that it had been decided during his Novem- ber 21 meeting with Minnesota Mutual and Peat that, "if a plan was developed that eliminated the employee con- tribution . . . that could be the salable feature." The matter next was considered by the directors at a special meeting on December 18. Lewandowski again in- formed them that any change in the pension plan "would have to be negotiated with the Union," and proposed an alternative plan in which "dividends would be used to offset company costs and a salable feature to employees would be the elimination of employee contributions." During the meeting, the board authorized Lewandowski to "contact the Union and attempt to negotiate" such a plan. The IRS ruling notwithstanding, Lewandowski tes- tified that his "entire objective" in seeking the board's authorization was "to reduce the Company's costs and expenses for the pension plan." Lewandowski and three other management officials3 accordingly met with two union representatives, John Meaders and Robert Mason, on December 22. Citing IRS Ruling 78-403, Lewandowski announced that the al- location of dividends to participants would have to be discontinued, lest the pension plan lose IRS qualification and, incorrectly, that the change had to be made by De- cember 31, 1978. He granted that this would mean "a loss to" the employees, and said that he "contemplated" :' Fred Willians, assistant general manager. Spencer (Cronk. operations manager, and R (sw;ln. director ofoperationls 1155 DECISIONS OF NATIONAL LABOR RELATIONS BOARD the elimination of employee contributions "to offset this loss." Lewandowski made no mention of his true objec- tive-cutting costs-in seeking to change the plan. Meaders responded that he did not want the plan "to be disqualified"; that, "if the dividends were going to have to be applied in some other manner, there would have to be an offsetting arrangement made"; and that it would be only "fair" for Respondent "to pick up" the participants' share of the funding. Lewandowski stated during the meeting that it might take "quite a while to work out the technical details" of the change and, indeed, that elimination of employee contributions might turn out to be impossible. Lewan- dowski offered that, in the meantime, Respondent either could cease withholding contribution shares from the participants' pay in the expectation that their further contributions would be unnecessary, assessing them later should that expectation not materialize, or it could con- tinue to withhold, without remitting those moneys to Minnesota Mutual, later refunding such amounts, with interest, should further participant contributions not be needed. Meaders expressed a preference for the latter ap- proach on the ground that it would be easier to make re- funds than to collect for several months of arrearages, and it was agreed to proceed in that fashion. Meaders or Mason also said that any change in the plan would have to be reviewed by the Union's attorney and be submitted to its membership for ratification, and Lewandowski stated that, were it to develop that partici- pant contributions could not be eliminated, he would "get back and talk" with the union representatives. Lewandowski conceded in his testimony that neither Meaders nor Mason verbalized any willingness by the Union to give up the allocation of dividends without some kind of offset. 4 The relationship between Respondent and the Union to the time of the meeting just described was excellent. As Mason testified: [A]t that point in time, we had excellent relations [with] Mr. Lewandowski and we had absolutely no reason to doubt his word. His word has been [as] good as gold for as long as we have known him On December 29, Lewandowski met with the employ- ees, describing the dividend/IRS situation much as he had to Meaders and Mason on December 22. Mason was present. Again, no mention was made of Lewandowski's more basic cost-cutting objective in seeking to change the plan. He stated that, while Respondent would contin- ue to withhold contribution shares from the participants' pay, it was envisioned that their obligation would be as- 4 For the most part, the testimony of the several witnesses is in agree- ment regarding the substance of the December 22 meeting. Mason is credited that Meaders said any change would have to be reviewed by the Union's attorney and ratified by the membership. He was convincing on the point, even though the Union apparently did not follow this proce- dure on all midterm changes in the contract, particularly since neither Lewandowski, Williams, nor Cronk denied that this was said, testifying only that they had no recall of it Meaders and Cowan did not testify Mason testified that Meaders was in Washington, D.C., at the time of hearing, and thus unavailable to testify. sumed by Respondent and that the sums withheld would be refunded upon perfection of the new arrangement. He also invited those not then participating to enroll, assur- ing them that, should it eventuate that participant contri- butions could not be eliminated, they would have the "option" of withdrawing. On January 18, 1979, without further communication of moment between Respondent and the Union, Re- spondent's president and an official of Minnesota Mutual executed an amendment to the pension plan providing, as explained in a letter from Minnesota Mutual: [A]s of January 1, 1979, all dividends would be ap- plied to reduce the Employer's cost [and] the divi- dends which were allocated as of January 1, 1978, will be the last to be apportioned among the em- ployees. Also on January 18, Respondent's board of directors met, during which Lewandowski reported that he had instructed Minnesota Mutual not to file the amendment with IRS, "as we will be following up with a completely new plan." Lewandowski further reported that "there is no question that . . . the elimination of employee contri- butions is what will be required in getting the plan changed," and that, regarding such contributions, "we are deducting the same from employees' checks but are not forwarding them to the insurance company." Lewan- dowski continued: We will keep the contributions as part of our gener- al funds and general investments. If everything goes according to plan, then the contributions will be re- funded to the employees with interest. For at least the first two months, the dividends should take care of the plan premiums. If it takes longer, we can make company contributions for premiums and not get into employee contributions until the entire matter is finalized. It is a lot simpler for us to keep track of the contributions rather than the insurance company. When a new plan would be finalized, there would be a premium adjustment one way or the other in switching from one plan to another. The report closed: "We will work as rapidly as possible on the matter, but the language development and IRS approval will take time." Lewandowski next reported to the directors on Febru- ary 6, 1979, stating that the matter of the pension plan "is being worked on and some comparison data should be completed within 30 days." By letter dated February 16, i.e., nearly a month after the event, Lewandowski informed the Union for the first time that the amendment to the plan had been executed by Respondent and Minnesota Mutual. The same letter stated that Respondent intended "to review the entire pension plan with the idea of making certain modifica- tions, if possible, that would allow for the elimination of employee contributions," and then noted, in seeming contradiction of Lewandowski's January 18 and Febru- ary 6 reports to the directors, that he did not "anticipate 1156 INTERMOUNTAIN RURAL ELECTRIC ASSOCIATION any work or discussions on the subject for the next few months." A likely explanation for the assertion in Lewandows- ki's letter that he anticipated no further activity regard- ing the pension plan "for the next few months" is that the Union, on February 12, had petitioned the NLRB for an election among Respondent's "inside" employees5-a development seemingly hardening his attitude toward the Union.6 This explanation gains plausibility from Lewan- dowski's then having received a letter, dated February 7, from Minnesota Mutual, setting forth in elaborate detail various calculations and projections that would obtain under a proposed new pension plan, from his soon re- ceiving a similar letter, dated February 16, from Peat, and from his reporting to the directors on March 6: Because of the organizing effort, this [the matter of the pension plan] will have to be indefinitely post- poned. However, we are obtaining immediate bene- fits which are substantial in that the dividends are coming back to the Company and will be used to offset our cost. Since the Union got nothing in return, I am sure that they will bring up the matter in time, but it is doubtful that they will until the or- ganizing matter is settled one way or the other. Following Lewandowski's February 16 letter, the Union next heard from Respondent upon receiving this letter, dated April 18, from Lewandowski: This letter is in reference to my correspondence of February 16, 1979, concerning the Association's pension plan. As previously stated, our objective in reviewing the plan and considering modifications was to see if it was possible to eliminate the employees' contribu- tion but yet provide the same level of benefits con- tained in the existing plan, continue about the same total amount of contributions that are presently being made on behalf of the employees, and main- tain approximately the same net cost to the Associ- ation. Our review of the plan shows that these ob- jectives cannot be met and, therefore, we are doing nothing to modify the pension plan. Employees' contributions will continue as they have in the past. We are going to contact all of the employees who have joined the pension plan this past January I and notify them that contributions will continue and, should somebody desire to drop out of the plan, they will be allowed to do so. This was stated at the meetings that were held when this subject was discussed. Of course, anybody who had belonged prior to January I will not be able to drop out of the plan. 5 27-RC-5809. e Thus, in a confidential memorandum to members of management, dated April 16, 1979, Lewandowski stated, with reference to the "orga- nizing effort that has recently taken place." that Respondent "would not welcome the Union with open arms and . . would deal [with it] in a cold, hard and arms' length manner." The document continued that, should the organizing effort succeed, the office employees would be rep- resented by the same union as those in "the existing bargaining unit." and then repeated that "the relationship with [the Union] will he maintained on a cold, hard and arms' length basis" You have been previously notified that, in ac- cordance with Internal Revenue regulations, divi- dends are no longer being credited to employees but being used to offset the Company's cost. Also on April 18, Lewandowski disseminated this memorandum among the employees: You will recall that several months ago we had meetings concerning our pension plan. At the meet- ings, I had stated that we were going to be review- ing the plan with an objective of seeing if it was possible to eliminate the employees' contribution but yet provide the same level of benefits contained in the existing plan, continuing about the same total of contributions that are presently being made on behalf of employees, and maintaining approximately the same net cost to the Association. We have found that these objectives cannot be met and, therefore, the pension plan will not be modified and employees' contributions will continue as they have in the past. During the meeting you were notified that, in accordance with Internal Revenue regula- tions, dividends are no longer being credited to em- ployees but are being used to offset the Company's cost. You will also recall that at the meeting I stated that should the employee contributions not be elimi- nated then anybody who had joined effective Janu- ary 1 would be given an opportunity to drop out of the pension plan. This memorandum is notification to you that, should you desire to drop out of the plan, please let Tom Riffe know within the next 15 days. Of course, anybody who had belonged prior to January 1 will not be able to drop out of the plan. In response to Lewandowski's April 18 letter, the Union promptly invoked the grievance procedure in the bargaining agreement. The gravamen of the grievance, as set forth in a letter of May I from Mason to Tom Riffe, Respondent's director of personnel, was Respondent's "altering the employee Retirement Plan which is re- ferred to in Article XVII of the Agreement." Riffe's re- sponse, by letter dated May 10, was this: Several months ago, Mr. John Meaders and yourself were notified that Internal Revenue was coming out with a new regulation which eliminated the applica- tion of any dividends or profits back to a defined benefit plan. Subsequent to that time, on February 16, 1979, John Meaders was notified by letter that, in accordance with Internal Revenue regulations, dividends would no longer be allocated to employ- ee accounts. Should you have disagreed then, you should have filed a grievance at that time. The time period stipulation as noted in Article 21, Paragraph A of the Collective-Bargaining Agreement requires that a request for a Step A proceeding be initiated within 5 days of the controversy. This was not acccmplished, therefore, there is no grievance and there is no issue. 1157 DECISIONS OF NATIONAL LABOR RELATIONS BOARD An arbitrator thereafter rejected Respondent's contention that the grievance was untimely, and an arbitrator's deci- sion on the merits of the dispute was pending at the time of the hearing herein. In his report to the directors at their meeting on May 8, 1979, Lewandowski stated: You will recall that we amended the [pension] plan in accordance with IRS regulations so divi- dends would be used to offset the Association's cost.... [W]e notified the Union that we would review the plan with the idea of seeing if it was possible to eliminate employee contributions and generally keep the same level of benefits. . . I was not satisfied with the results of some studies. . .. A lot of it appeared not to really reduce our costs and some proposals were totally wrong and unaccepta- ble.... Any further change would require union acceptance (there is even a good chance we will have to negotiate about the dividend that is now being used to offset our costs). Because of the cir- cumstances, I notified the Union that we were using the dividend to offset our costs and were planning no additional change at this time. They had a fit and filed a grievance. They feel that the money is theirs and, if it can't be put in the plan like previ- ously, then it should be given back in some other manner. Without eliminating the employee contribu- tions, the benefits are substantial to the Company. The dividends for last year were over $72,000 and the end result is that our cost is being reduced by one-third .. . There still is a need to review the plan further even if we need to make no concessions to the Union.... There are . . . a number of items that need to be explained and understood .... I plan to start gathering data this summer for comparisons and explanations. .... Any further change would not be done until the next union ne- gotiations, which would take place the last quarter of 1980. Regardless, in the meantime, our costs will be substantially less. In a later report to the directors, on September 4, Lewandowski stated concerning the matter of the pen- sion plan: [T]he Union has filed unfair labor practice charges regarding the pension plan. Regarding that matter, we have been processing a grievance and the Union has just demanded arbitration. It is the Union's con- tention that the company had no right to eliminate the dividend from the plan and just drop the matter. . . . IRS eliminated the plow back of dividends and, because of cost consideraticns, we would not consider giving back that money to the employees in some other form. Meanwhile, on May 31, Mason and the Union's attor- ney, Philip Hornbein, met with Respondent's attorney, Martin Semple, to discuss the Union's grievance over the pension plan. During that meeting, and again by letter dated August 16, Hornbein requested: . . .that the Company supply to the Union a copy of the group retirement annuity contract between the Company and Minnesota Mutual Life Insurance Company and copies of correspondence, memoran- dums, legal opinions, tax opinions, and other docu- ments and papers relating to the Company's deci- sion to divert to itself dividends and profits of the Retirement Plan. Semple replied to the May 31 request that he would see what he could do, after which, under cover of a letter dated July 20, he provided a copy of the pension plan as then constituted, together with a booklet summarizing the plan. Then, under cover of a letter dated October 31, Semple supplied a copy of the contract between Re- spondent and Minnesota Mutual. Semple's cover letter included this: I apologize for the delay in getting this material to you. Since I have not reviewed the file in this matter for some time, I overlooked the fact that I had not responded to your last request. Respondent previously had furnished the Union with a copy of IRS Ruling 78-403 in response to a request made at the December 22 meeting. Otherwise, the Union received nothing in response to its requests. Lewandowski testified that other documents were not provided because some, in his view, were privileged communications with counsel, and some contained infor- mation about nonunit employees, which he considered confidential. Lewandowski's testimony continued: I felt that that information was not information that should be given to the Union and would give them an advantage in negotiations that possibly they shouldn't have.... I'm not going to give the other side everything about the pension plan, the inside and outside, and the strategy in trying to negotiate a plan. C. Conclusions The dividend matter: Section 8(d) of the Act states in part: [W]here there is in effect a collective-bargaining contract . . . the duty to bargain collectively shall also mean that no party of such contract shall ter- minate or modify such contract, unless the party de- siring such termination or modification- (4) continues in full force and effect . . . all the terms and conditions of the existing contract . . . until the expiration date of such contract . ... Section 8(d) further states that the duty to bargain "shall not be construed as requiring either party to discuss or agree to any modification" of the terms and conditions of an unexpired contract absent a provision for reopening. The Union thus would have been within its right to hold Respondent to the letter of article XVII of the bar- 1158 INTERMOUNTAIN RURAL ELECTRIC ASSOCIATION gaining agreement throughout the term of the agreement, and, in so doing, to require the continued allocation of dividends to those unit employees participating in the pension plan. A determination that the Union relin- quished that right must be grounded on "clear and un- mistakable" evidence, for the "waiver of a statutory right will not be lightly inferred." C & C Plywood Corporation, 148 NLRB 414, 416 (1964). Respondent contends that the Union consented to the abrogation of article XVII during the meeting of Decem- ber 22, 1978, between Lewandowski and the two union officials, Meaders and Mason. That the Union then and thereafter was willing to forgo the dividend allocation, to ensure the pension plan's continued IRS qualification, is clear. It is equally clear, however, that this willingness was contingent upon a quid pro quo in the form of Re- spondent's taking over the contribution-shares of the unit-participants; or, should that turn out to be unfeasi- ble, upon its negotiating some other comparable conces- sion. 7 This contingency perhaps was most graphically re- vealed by Lewandowski in his report to the directors on January 18, 1979, the very day the amendment to the an- nuity contract was executed, that there was "no question that . . . the elimination of employee contributions is what will be required in getting the plan changed." It is clear, finally, that whatever sincerity Lewan- dowski had regarding a quid pro quo ceased to exist about the time the Union petitioned for an election among the inside employees on February 12, 1979. Thus, he cryptically informed the Union on February 16 that he did not "anticipate any work or discussions on the subject for the next few months," he reported to the di- rectors on March 6 that the matter would "have to be indefinitely postponed . . . because of the organizing effort," he advised the Union on April 18 that Respond- ent was "doing nothing to modify the pension plan" and that employee contributions "will continue as they have in the past," and he reported to the directors on Septem- ber 4 that, "because of cost consideraticns, we would not consider giving back that money to the employees in some other form." It is concluded in these circumstances that the Union's consent to the abrogation of article XVII, as concerns the dividend allocation, was misleadingly induced and perpetuated, and therefore of no jural effect. As stated in Mor Paskesz, 177 NLRB 116, 119 (1968), "a consent given upon unfulfilled conditions is no consent." Re- spondent's conduct in this regard consequently failed to comport with the 8(d) requirement that it continue "in full force and effect . . . all the terms and conditions of the existing contract," and, by so failing, violated Section 8(a)(5) and (1).B I Contrary to the complaint, the weight of evidence compels the con- clusion that Respondent did not enter into an enforceable agreement to assume the participants' pension contributions as a quid pro quo, but rather that it held his out as a strong likelihood, and that some other concession would be made should that not be feasible B While the complaint is not couched in terms of the abrogation of art XVII, the issue was sufficiently litigated to warrant the finding of a io- lation Niagara Falls Memorial Medical Center, Inc.. 236 NLRB 342, fn 2 (1978) Rejected is Respondent's contention that Citizens National Bank of Willmar. 245 NLRB 389 (1979), is "particularly apropos." That case did not involve the abrogation of an existing contract provision. Again refer- The withholding of information: The Union's request for information made on May 31, 1979, was ignored for nearly 2 months, and then complied with in only token fashion. Its iteration of that request on August 16 lan- quished for about 2-1/2 months before being observed. as previously, in only small part. It is concluded, without need for analysis or case cita- tion, that Respondent's failure to comply fully and promptly with the Union's May 31 and August 16 re- quests was unwarranted, therefore violating Section 8(a)(5) and (1) as alleged.9 IV. THE OTHER AI.I. TEI) VIOLATIONS A. Background In early 1979, a drive was undertaken to organize the so-called inside or office employees of Respondent in the five communities previously named. On February 12, 1979, as earlier mentioned, the Union filed for an NLRB election seeking certificaticn as the representative of those employees. A post-filing hearing was held on March 2, after which the Acting Regional Director issued a Decision and Direction of Election on March 21. The election followed on April 13, and, on August 31, after resolution of challenges to the eligibility of cer- tain voters, the Union was certified as bargaining agent. The conduct hereafter in issue took place at Respond. ent's headquarters in Littleton. B. Alleged Misconduct by Spencer Cronk The allegation: The complaint alleges that Cronk, Re- spondent's operations manager, violated Section 8(a)(1) on March 9, 1979, by telling an employee that "a blan- ket" had been placed on raises because of the pendency of the election, by asking the employee what had caused the employees to want a union, and by saying to the em- ployee that she would not get a raise if the Union got in but might if it did not. The facs: On March 9, Barbara Hightower, a consum- er accounting representative for Respondent, questioned Cronk as to why Hightower had not received a raise after 90 days on the payroll as Katherine Tate had. Hightower, who had engaged in some union activities, speculated that that may have been the reason She raised the matter with Cronk because Lewandowski pre- viously had told the employees to take any union-related problems to Cronk. Cronk replied that he would inquire about the status of Hightower's raise and "get back to" her. Later the same day, Cronk reported to her that the raise was not forth- coming, explaining in part that Lewandowski "had put a ring to Sec 8(d). the duty to bargain does not require either party "lo discuss or agree to any modification" of the terms and conditions of an unexpired contract." 9 .eV andlowski's professed opilnbon to the contrary Respondent failed to make a showing that any of the requested material came within the attorney-client privilege. It is no defense. moreover, that some of the in- formation sought pertained to nonunit people See. e.g. Rockell-Sand- ard Corporation, Transmission and A.4xel Division. Forge Dision, Ib6 NLRB 124. 132 (1967). 1159 DECISIONS OF NATIONAL LABOR RELATIONS BOARD blanket on all raises . . . because of the filing"--a tacit reference to the pending election matter.'0 Hightower asked what effect the union situation would have on her raise prospects. Cronk answered that, "if the Union comes in, you won't get your raise probably," adding: "[l]f the Union doesn't come in, then you will probably get your raise."" During the same conversa- tion, which lasted well over an hour and embraced a considerable range of subjects, not all union related, Cronk asked why the employees "were filing for a union." Hightower answered that she could speak only for herself, and that she was interested in "job security, promotions, [and] raises." 2 Cronk admittedly "could have" remarked to High- tower in this conversation that Lewandowski thought it was a "slap in the face" for the employees to seek union representation after all he had done for them. Conclusions: It is concluded that Respondent violated Section (8)a)(l) substantially as alleged by Cronk's telling Hightower that Lewandowski "had put a blanket on all raises . . . because of the filing" of the election peti- tion; 3 by his saying to her that she "probably" would not get a "raise if the Union comes in," but that she "probably" would "if the Union doesn't come in"; 4 and by his asking her why the employees "were filing for a union." 5 C. The Lewandowski Memoranda The allegation: The complaint alleges that Lewan- dowski issued memoranda on June 27 and July 20, 1979, which violated Section 8(a)(1) by threatening delays in granting or the withholding of raises to discourage em- ployee exercise of Section 7 rights, and further threaten- ing to obstruct the employees in their exercise of those rights. The facts: As earlier stated, the election among the inside employees was held on April 13, 1979. On June 26 the acting Regional Director issued a Supplemental De- cision on Challenged Ballots, and on June 27 Lewan- '0 Hightower is credited that Cronk spoke substantially as set forth Cronk conceded as much, testifying that he "may have used the term 'a blanket freeze,' or something like that, due to the fact that it [granting raises] was illegal or improper . while the election was in process," and that he "may have" mentioned Lewandowski "in this regard " I This is Hightower's credited version of Cronk's remarks. Cronk tes- tified that he said Hightower "would be considered for a raise after this matter was resolved" should the Union be "voted out," which corre- sponds in substance with Hightower's testimony: but further testified that he said "any future raises would depend on the negotiations" should the Union get in, which differs significantly from the Hightower rendition. Cronk's professed conditioning of raises on the outcome of negotiations if the Union were to prevail came across as an after-the-fact refinement of his comments to Hightower, and is not believed. 12 Hightower is credited that Cronk asked this question. Cronk, while testifying that he "knew better than to ask her any direct questions," ad- mitted that he "may have" achieved the same effect with Hightower and others by saying that he was "unaware of what the problems had been as far as the inside employees were concerned as to why they desired to . have the Union represent them." That Cronk would conduct himself in so subtle and circular a fashion in eliciting information from the em- ployees did not carry conviction. 13 See, e g.. Chatfield-Anderson Co., Inc. d/b/a Truss-Span Company, 236 NLRB 50, 51 (1978). 14 See, e.g.. Hinky Dinky Super Markets. Inc.. 247 NLRB No 1h9 (1980). See, generally. Patsy Bee, Inc.. 249 NLRB 976 (1980). 1S See, e.g., Didde-Glaser. Inc., 233 NLRB 765 (1977). dowski circulated the following document among Re- spondent's 20 or so supervisors: June 27, 1979 TO: All Supervisors FROM: Stanley R. Lewandowski, Jr., General Mgr. SUBJECT: Challenges for the Union Election A decision has been issued by the [Regional] Di- rector of the NLRB in Denver. The decision states that the position of Secretary to the Director of Personnel and Director of Member Relations and Energy Conservation is excluded; the Energy Con- servation Specialist is excluded; the Secretary to the Director of Electrical Engineering is included; The Plant Accountant is included; and the Computer Programmer-Operator is included. Since this decision is not acceptable to the Asso- ciation, the matter will be appealed to Washington. Our appeal must be submitted by July 9. Martin Semple will be at the Association next Monday taking depositions of people supporting our posi- tion. This will delay the final outcome substantially. The initial estimate for this portion was that should an appeal be sent to the NLRB, a decision from them should [arrive] within about three months. However, it takes forever for the NLRB to do any- thing. The [Regional Director] must file a brief and we know that there are substantial delays on getting anything out of the Denver office. I don't know how the Washington office is currently operating but it very well could be six months before any de- cision is arrived at. You will recall in a previous memorandom that, should an unacceptable decision be arrived at in Washington, we have a right to proceed to the Tenth Circuit Court of Appeals and that again could take an additional three years. After next Monday, it should be a substantial period of time before we hear anything additional on the matter. I will keep you informed. Please pass this information on to your employees. Lewandowski testified that he prepared this memoran- dum to provide the supervisors with answers to recur- rent questions they were being asked by the employees. Copies of the document itself came into the possession of at least two unit employees. On July 20 Lewandowski promulgated this memoran- dum to the supervisors: July 20, 1979 TO: All Supervisors FROM: General Manager SUBJECT: Labor Relations There . . . have been a couple of events that have transpired that I thought I would let you know about. The first is that the NLRB has post- poned the hearing on unfair labor practice charges that was to be held July 24 to November 14. The NLRB attempted to get the matter resolved with- 1160 INTERMOUNTAIN RURAL ELECTRIC ASSOCIATION out the hearing; however, we refused. They then immediately came in stating that they desired to postpone the hearing. In checking into this, there are a couple of circumstances. One, it is very likely that Barbara Hightower may not be available or they cannot locate her for the case. Second, we have an indication that the judge from San Francis- co thought that there was no merit in the case; however, the local district felt that they were not in a position to withdraw the charges. It is possible that we will never go to hearing on this matter. The second item is the Union has filed their state- ment in opposition to [the] request for review of challenged ballots to the NLRB in Washington. Ap- parently, the Union is becoming frustrated as it is affecting the language in some of the work they are puttinq out. The following is exact langauge as it appears in their statement. (I) "The request is palpa- bly frivolous. It appears to us that the primary pur- pose of the request is to serve as an outlet for the employer's venom and irrational hostility against the Regional Director, rather than as a serious peti- tion to the board." (2) "The employer's entire course of conduct in this matter has been one of ob- struction, to frustrate the process of the Board and to deprive the Company's employees of an opportu- nity to bargain through a representative of their own choosing." I assume they will become very frustrated if the matter goes the entire three years before the Tenth Circuit Court of Appeals. I have been informed by Martin Semple that it is very possible that legally we probably should not change any salaries because of the pending matter during the entire three-year period of time. I have not made a firm decision yet, but I am leaning toward the possibility that I will let the matter ride the entire three year period of time. I also wanted to mention that we will be having a comprehensive in-house, two-day seminar on the entire gamut of labor relations; i.e., negotiating and renegotiating contracts, maintaining and recapturing management rights and the entire process of decerti- fication. In this connection, I have retained the law firm of Jackson, Lewis, Schnitzler & Krupman. This firm is composed of 50 attorneys with its head- quarters in New York and branch offices in Atlanta and Los Angeles who do nothing but labor relations work. Lewandowski testified that this document was issued "to keep the supervisors abreast of what was going on," but that, unlike the one of June 27, he "did not antici- pate" that it would be distributed to, or that the supervi- sors would discuss its contents with, the employees. Even so, it purposely was given to Dorothy Pearce, who was previously determined by the Acting Regional Di- rector to be in the bargaining unit; and apparently, like the earlier one, got into the hands of other unit employ- ees as well. Because of this latter development, accord- ing to Lewandowski, Respondent initiated the practice, as concerns later memoranda not meant for rank-and-file distribution, of marking them "confidential." As he put it, "you live and learn." The record, however, contains an April 1979 memorandum so labeled, betraying the ex- istence of the practice before July 20 and arguably sug- gestinq that Respondent contemplated dissemination of the contents of the July 20 document among those in the unit. Conclusions: The June 26 memorandum, on its face meant for employee consumption, stated that a Board de- cision on Respondent's forthcoming appeal of the Sup- plemental Decision could "very well" take 6 months, and that an appeal of an "unacceptable" Board decision to the Tenth Circuit "could take an additional three years." The July 20 memorandum, while not facially intended for the employees, in fact did reach some of them-a foreseeable development inasmuch as it carried no pro- scription against such dissemination and was similar in tenor to that of June 26. It again raised the prospect of a 3-year delay occasioned by the appeal of an adverse Board decision to the Tenth Circuit, to which it added that salaries-and, by implication, wages-would likely be held constant for that "entire three year period of time." It reported as well that Respondent had retained a national law firm specializing in labor relations to con- duct a "comprehensive" seminar covering "the entire gamut of labor relations," including "the entire process of decertification." The message inherent in the memoranda was that Re- spondent was intent upon forestalling the effect of the election for several years through the appeal process, meanwhile depriving the employees of any salary/wage progression, and then subverting the election outcome, if necessary, by resort to the decertification procedure. It is concluded that, by thus indicating to the employees that the Union's election victory and the organizational effort that preceded it not only were a futility, but would cause economic detriment, Respondent violated Section 8(a)(1) substantially as alleged. Two Guys Discount Department Stores, Inc., a wholly owned subsidiary of Vornado, Inc., 242 NLRB 1139 (1979); Kent Brothers Transportation Co., 188 NLRB 53, 59 (1971); L. F Strassheim Co., 173 NLRB 846, 848 (1968). D. The Reprimand of Kathleen Gunton The allegation: The complaint alleges that Steve Glaim, Respondent's manager of office services, violated Section 8(a)(1) on July 5, 1979, by issuing a written reprimand to Gunton because of her exercise of Section 7 rights. The facts: On July 3, 1979, an angry customer deposit- ed a bag of spoiled food in the reception area of Re- spondent's headquarters building in Littleton, contending that a failure by Respondent to supply power had cre- ated the problem. In the aftermath, as is more fully de- veloped later, Katherine Tate had an exchange with Cronk which irritated him. Mike Deans, Respondent's di- rector of electrical engineering, consequently directed Tate to see him after work that day, leaving the impres- sion while doing so that she might be suspended. Tate was Deans' secretary. Tate thereupon informed Gunton of the situation, and asked that she be present as a wit- 1161 DECISIONS OF NATIONAL LABOR RELATIONS BOARD ness when Tate met with Deans. Gunton was a work order clerk in the accounting department. At quitting time, Gunton went to Tate's work area outside Deans' office. Also there, in addition to Tate, were Susie Deikman and Myrna Schmidt. Deikman's regular work station was in the front lobby as a PBX op- erator. Schmidt, a secretary to management, regularly worked near Tate. Several minutes after Gunton's arriv- al, Deans summoned Tate into his office, consenting to let Deikman have a final word with her first. Deikman and Schmidt then left, leaving Gunton behind. Gunton remained outside Deans' open door, maintaining visual contact with Tate and overhearing what was said. Upon hearing Deans state that Tate probably would be suspended, but that he could not be certain because he could not get in touch with Cronk, Gunton asked Tate if she wanted a witness. Tate nodding in the affirm- ative, Gunton entered the room and asked Deans if there was not some way he could speak with Cronk so that Tate's status would be clarified before the Fourth of July holiday. Deans answered that he could not reach Cronk, and Gunton asked if he might be reached on his car radio. With that, Deans commanded Gunton to "get the hell out." As Gunton started to say something else, Deans stood up and repeated, "Get out!" Gunton then left. On July 6 Glaim presented Gunton with the following: July 5, 1979 TO: Kathy Gunton FROM: Steve Glaim SUBJECT: Incident in Mike Dean's Office on July 3, 1979 I have been informed that at approximately 5 p.m., on July 3, 1979, you entered Mike Dean's office without any prior authorization and with no official duties to perform on behalf of IREA. Mr. Deans was most upset with your presence in his office at that time and felt that your conduct was inappropriate. Please be aware of the fact that employees of In- termountain Rural Electric Association are not au- thorized to visit other areas of the office building after working hours unless they have authorization or official business to conduct. This is necessary for the efficient running and the good order of the or- ganization. This correspondence is intended as a reprimand for your inappropriate conduct on July 3, 1979. A copy of this correspondence will be placed in your permanent personnel file. Name ------- Date---- I acknowledge that I received a copy of this corre- spondence and read its contents. Gunton responded that she wished to tell her side of the story. Glaim said that she should put it in writing, and that it would be placed, with his memorandum, in her personnel file. Gunton promptly submitted the fol- lowing document, which was put in her file: July 6, 1979 TO: Steve A. Glaim FROM: Kathy Gunton SUBJECT: Written Reprimand First of all I would like to state that I was in Kathy Tate's office not Mr. Deans' at 5:05 p.m., on July 3, 1979, waiting for Kathy to go home. She had asked me to wait and if Mr. Deans was intend- ing to fire her to be her witness. Since I have done this on occasion for Dorothy Pearce I felt that Kathy had the same right. Also, since she was wait- ing after 5 p.m., her own time and my own time, without being paid for doing this I did not feel that I was going against the Association's policy. Second, I would like to state that I was in Mr. Deans' office at 5:20 p.m. on Kathy's authorization as her witness as to what was being said after com- pany hours. All the time Mr. Deans was talking to Kathy previously I was in her office and as Mr. Deans left his door open the whole time where I could hear anything said Kathy did not feel it was against her right to have a witness. I would also like to add that as soon as Mr. Deans asked me to leave I did so promptly. I do not concur with the statements made in regard to the written reprimand I received dated July 5, 1979. Glaim testified that Fred Williams, Respondent's assist- ant general manager, told him on July 5 that Gunton had entered Deans' office "uninvited and unannounced and more or less butted into the counseling that was taking place" between Deans and Tate, that he, Glaim, saw this as "an inexcusable act," and that he therefore "drafted up" the reprimand letter. Glaim added that Gunton "had no business to be in the office building, let alone in an- other department area" after hours. Glaim asserted that he told Lewandowski of the incident before drafting the letter, and that Lewandowski, although making no rec- ommendation, agreed that Gunton's conduct had been "inexcusable." Glaim testified that he issues reprimands without consulting Lewandowski "if they're of a minor nature," but that he regarded Gunton's actions to be mis- conduct of "a major nature" because "she was infringing on another department and a supervisor." The employees in the accounting department had been told on April 24, 1979, that they were not to be at their desks before 7:55 a.m. and that they "had to be out" not later than 5:05 p.m. The stated rationale for tis, accord- ing to Gunton's credible testimony, was to avoid uninvit- ed liability for overtime pay. Further on, May 17 the ac- counting department employees were instructed that they were not to leave their work area without clearance from Suzy Holman, a supervisor in the department. The record affords no substantial basis for inferring, however, that this stricture contemplated employee movements after hours. Lewandowski conceded that Gunton's was the only written reprimand between January 1978 and the hearing "for unauthorized visits to other areas of the building after working hours." There is no evidence, for that 1162 INTERMOUNTAIN RURAL ELECTRIC ASSOCIATION matter, that any such reprimands ever had issued before Gunton's. Neither Deikman nor Schmidt received ad- verse comment stemming from the incident in question, at least so far as the record shows; indeed, Deikman cre- dibly testified that she commonly remained in the build- ing after hours without any problem. Gunton perhaps was the foremost union proponent among Respondent's employees. She provided the impe- tus for the first organizational meeting, contacting the union steward for the "outside" employees, Gordon No- vacek, who conveyed her interest to a union official. She "set up" most of the ensuing organizational meetings, and typed letters informing the employees of them. She also gathered all of the authorization cards after they had been signed, submitting them to the Union; and was a union observer during the election. Respondent concedes in its brief that Gunton's "strong" union proponency was "common knowledge." Conclusions: It is concluded that Gunton, by entering Deans' office on Tate's behalf and proposing that an at- tempt be made to reach Cronk by car radio for clarifica- tion of Tate's job status, had joined with Tate for "the purpose of . . . mutual aid or protection," that her so doing therefore was protected by Section 7 of the Act, and that the ensuing reprimand consequently violated Section 8(a)(1) as alleged. Richard M. Brown, D. 0.. and Donald R. Janower, D. O., a Co-Partnership d/b/a Park General Clinic, 218 NLRB 540, 546-547 (1975). Cf. Montgomery Hospital, 233 NLRB 752, 754-755 (1977). It does not detract from this conclusion that Gunton did not have a personal job stake in the outcome of the meeting between Deans and Tate. Quoting from N.LR.B. v. Peter Cailler Kohler Swiss Chocolates Compa- ny, Inc., 130 F.2d 503, 505-506 (2d Cir. 1942): When . . . other workmen in a shop make common cause with a fellow workman over his separate grievance . . . they engage in a "concerted activi- ty" for "mutual aid or protection," although the aggrieved workman is the only one of them who has any immediate stake in the outcome. The rest know that by their action each one of them assures himself, in case his turn ever comes, of the support of the one whom they are all then helping; and the solidarity so established is the "mutual aid" in the literal sense.' 6 It also is concluded that the reprimand of Gunton, while triggered by her activities in aid of Tate, in fact was in recrimination for her union sympathies and activi- ties, thereby violating Section 8(a)(3) in addition to Sec- tion 8(aXl1).L7 This conclusion is based upon the follow- ing array of considerations: 16 Respondent's efforts to prove the existence of a prohibition, quoting from Gunton's reprimand, against "visitlingl other areas of the office building after working hours" unless authorized or on official business were unconvincing. Emerson Electric Co.. US. Electrical Motors Division, 185 NLRB 346 (1970), thus is distinguishable in that those invited by the aggrieved employee in that case to act as witnesses left their work sta- tions contrary to a "well-established rule" against so doing without con- sent, and, unlike Gunton, they were insubordinate in the face of a subse- quent order to return to their stations. I1 Although the complaint does not include an allegation that the rep- rimand violated Sec. 8(a3), the issue was sufficiently litigated to warrant (a) Gunton was known by Respondent to be a "strong" union adherent. (b) The weight of evidence leaves little doubt that Re- spondent was hostile to the organization of the inside employees. Among the several indicia of this are Lewan- dowski's June 27 and July 20, 1979, memoranda, found above to have contained unlawful elements, and Cronk's admission that he "could have" told Hightower that Lewandowski thought it a "slap in the face" for the inside employees to seek union representation after all he had done for them. (c) To the extent that the reprimand is couched in terms of a prohibition against "visit[ing] other areas of the office building after working hours," it betrays pre- text. Not only is there no evidence that a reprimand ever before had issued on that basis, but, as mentioned in a previous footnote, Respondent's efforts to prove the ex- istence of such a ban pertaining to after-hours activity were unconvincing. (d) Further suggestive of pretext was Glaim's consult- ing with Lewandowski before issuance of the reprimand. The hyperbole implicit in Glaim's assertion that this was dictated by the "major nature" of Gunton's offense. given that Gunton promptly left when so directed by Deans, only underscores the disingenuousness of it all. E. Deans' Alleged l'hreats to Katherine ate and Tate's Suspension and Discharge lhe allegations: The complaint alleges that Deans vio- lated Section 8(a)(1) on July 3, 1979, by threatening to suspend Tate and on July 10 by threatening to discharge her because of her union activities, and that Respondent violated Section 8(a)(3) and (1) on July 5 and 13 by im- plementing those threats. The facts: Tate, in addition to serving as Deans' secre- tary, operated the switchoard in the reception area on a relief basis from 3:30 to 3:45 each afternoon. On July 3, 1979, as earlier mentioned, a customer left a bag of spoiled food in the reception area. After the customer's departure and while Cronk, who had been trying to ap- pease him, was still in the area, there was much merri- ment among the employees over the incident and how to dispose of the food. Cronk seemingly was a willing par- ticipant in the fun. As Cronk began to leave, Tate asked that he take the food with him, adding that, if he did not, she would "take it up and put it on [his] desk." Tate was doing switchboard duty at the time, and the food was near her. Cronk responded that he did not "carry out trash," and that, if Tate were to put it on his desk, "we will find out who takes who where," Tate countered that she did not "sit with trash," and Cronk remarked, "Go ahead and have a wildcat walkout." Tate thereupon gathered her things, arose, and started walking as if to leave the area. Before she had gone far, however, a call came into the switchboard. She returned to handle it, and finished out her allotted time there. such a finding Niagara bFltL Memorial Medical Center. Inc.. 236 NlRB 342. fn 2 (1'78) 1163 DECISIONS OF NATIONAL LABOR RELATIONS BOARD Tate testified that she was "just goofing around" when she left the switchboard. Whether or not that was Cronk's immediate perception, he said nothing at the time. He testified that, "after a few minutes of contem- plation," however, he "realized that that was an inappro- priate action for Miss Tate to take," and that, becoming "somewhat upset." he reported it to Deans. Upon Tate's return to her desk as Deans' secretary, Deans said he had some "pretty heavy stuff to lay on" her. He then asked what had happened "down at the switchooard." After listening to Tate's recital, Deans commented that he had been thinking of suspending her, but, now that he had "learned the gist of' the matter, he felt he should talk to Cronk again, and would "get ahold of" Tate later. Deans next spoke with Tate shortly after 5 that after- noon.' 8 He said that he had been unable to reach Cronk; that he, Deans, was about to go on vacation, and that he feared that "they" would not withhold suspending Tate until his return. Deans' representation notwithstanding, he apparently had talked to Cronk. Cronk testified that Deans reached him on his car radio about 5, asking if he had told Tate to have a walkout, and that he replied that he could not remember. Two days later, July 5, Cronk presented Tate with the following: July 5, 1979 TO: Kathy Tate FROM: Spencer Cronk SUBJECT: Incident at Switchboard on Tuesday, July 3 On Tuesday, July 3, 1979, at approximately 4 p.m., you were working as switchboard operator. You engaged me in a conversation relating to spoiled meat which was left by a consumer with whom I had been engaged in conversation. In the course of this conversation you made remarks and suggestions which I regard as acts of insubordina- tion and disrespect for your supervisor and adminis- trator of IREA. Such disrespect and insubordina- tion cannot be tolerated of any employees of Inter- mountain. Your conduct on July 3, 1979, was unbecoming for an employee and is regarded by me as a most serious breach of the standard that is expected of our employees. Such conduct cannot and will not be tolerated by Intermountain. Accordingly, I am suspending you without pay for a period of 3 working days commencing at 12:45 p.m., as a disciplinary action resulting from your disrespectful and insubordinate conduct. Since your regular supervisor in your capacity as secre- tary is on vacation, I will immediately communicate this action to him upon his return. This correspondence will be placed in your permanent file. I request that you sign this letter indicating that you have received a copy and are aware of its contents. ' This is the encounter giving rise to the reprimand of Kathleen Gunton, discussed previously. Name ------- Date---- I hereby acknowledge that I received a copy of this correspondence and read its contents. Tate wrote on the bottom: "I do not concur with the above statements." On July 9, the last day of her suspension, Tate was given a note by her doctor, for tender to Respondent, "strongly" recommending that she be given a l-week leave of absence "because of health problems." The note, which did not specify the nature of the problems, closed, "Please don't underestimate the importance of this." Returning to work on July 10, Tate showed the note to Deans and announced that she was going to take a leave of absence as prescribed. Deans took the matter up with Fred Williams, his immediate superior, who re- ferred him to Lewandowski. Lewandowski telephoned the originating clinic, verifying the note's authenticity, but made no effort to speak with the doctor or otherwise ascertain the nature or seriousness of Tate's condition. He and Deans assertedly then discussed whether the note gave rise to "a real need for" a leave of absence. Ac- cording to Lewandowski, Deans said that "a substantial amount of work" had accrued during Tate's suspension, and that he consequently could not spare her. Lewan- dowski testified that Deans also mentioned that Tate had wanted to take a trip and had no vacaticn entitlement, the implication being that health was not the true reason for her request. Lewandowski continued that he consid- ered the form of the note to be strange if there was a genuine health problem-"Why did he [the doctor] not just give her a note excusing her from work [instead of] requesting leave?" Lewandowski concluded that Tate's request should be denied. When Deans informed Tate of this, she declared that she had to follow her doctor's orders regardless. Deans replied that she would "probably be fired" if she did, and Tate asked if that meant she was fired as of then. Deans answered that it did not, but that she "will prob- ably be fired" should she fail to show up for work. Tate brought the exchange to a close by stating that she would return to work for a week and then leave. Deans and Lewandowski thereupon collaborated in the preparation of the following memorandum: July 10, 1979 TO: Tom Riffe, Director of Personnel & Training FROM: Mike Deans, Director cf Electrical Eng. SUBJECT: Kathy Tate On the afternoon of Tuesday, July 10, Kathy Tate requested a one week's leave of absence based on a note apparently handwritten by a doctor. The leave of absence was not granted for three reasons: 1. It is not only this department's but generally the Company's policy that leave of absence will not be granted unless such leave would not inter- fere with the efficient operation of the Company. 2. It was necessary to give Mrs. Tate a 3-day suspension which expired this afternoon because of a serious infraction. The workload caused be- 1164 INTERMOUNTAIN RURAL ELECTRIC ASSOCIATION cause of that absence and the general work schedule precluded any granting of leave. It is es- sential that Kathy Tate's position be filled. 3. The note from the physician did not state that Kathy Tate was unable to work for medical reasons. It only stated that it was suggested that she be given a leave of absence. From this, I gathered that a pressing medical emergency did not exist but merely a suggestion that she might need some time off. Upon being notified that the leave was not grant- ed, Mrs. Tate indicated that she was obeying her doctor and leaving anyway. She left the office only to return a short time later stating that she would be back at work next Wednesday, July 18. 1 indicat- ed to Mrs. Tate that she was not authorized to leave and should she be absent without authoriza- tion she would be terminated. She asked if she was terminated at the present time. I indicated that was not the case but it would be if she was not back at work. It is my intention to allow Mrs. Tate time to re- consider her actions and return and fill her position. However, if she does not do that within the next day or two, then I have no choice but to effect her termination. In the meantime, I would like to have a Kelly Girl as soon as possible, preferably starting tomorrow at 8 a.m. I considered that Mrs. Tate disobeyed a direct order in not immediately starting work, that she is disobeying known instruction to be at work during ail work hours, and not to be absent when not au- thorized and also consider her behavior in leaving was close to gross insubordination. I would appreci- ate your inserting this memorandum in her person- nel file and further action will [warrant] either dis- missal if she does not return or a letter of reprimand or other disciplinary action because of leaving her work place without authorization. While this memorandum on its face was Deans', he testi- fied that Lewandowski assisted "in the use of proper grammar, proper phraseology, punctuation, those kinds of things"; in fact, he testified that the original longhand draft was written by Lewandowski. Deans conceded that Lewandowski never before had involved himself in Deans' memoranda to such an extent. Hearing nothing in the interim, Tate returned to work on July 18 only to be told by Williams that a termination letter had been sent. She then left. The letter, dated July 13 and received by her a day or so after Williams' disclo- sure, was signed by Deans. It stated: You are hereby notified that you have been official- ly terminated from employment as of 10 a.m., Friday, July 13, 1979, for being absent from work without proper authorization. Respondent's manual of personnel policies then in effect provided that "leave of absence may be granted for illness or other urgent or vital personal reasons," and that "approval must be obtained from the General Man- ager in writing." Lewandowski testified that he granted a leave of absence to an employee in 1974 or 1975 be- cause of pregnancy, but that he denied the request of Suzy Holman, a supervisor, in the summer of 1979. Hol- man's husband was assuming custody of his children by a previous marriage, and she wished to be at home with them for a time. Lewandowski rejected the request be- cause it was not a "real emergency situation," beyond which he was concerned about her being suitably re- placed should her absence turn into "an extended-type thing." Tate was prominently prounion. Several organizational meetings were held in her home, she signed an authoriza- tion card, and she distributed cards to her coworkers. Her union sympathies were "common knowledge" to management, according to Deans, and were "a source of discomfort" to him. Deans elaborated that he thought some of her duties as his secretary were incompatible with her having union representation, and that, the way he "looked at it," the only way out of her dilemma was for her either to renounce the Union or be terminated. Deans continued that he spoke with Lewandowski and Williams about this "several times," and that, "shortly after" one such discussion near the "end of June," Wil- liams instructed him to "document any errors" in Tate's work. This instruction was forthcoming, according to Deans, because of the persistency of mistakes by Tate.9 A few days before her discharge, Tate was introduced by Deans to two new employees as "our union rabble- rouser." Tate credibly testified of an incident in March 1979 in which Cronk, after saying that she was slated to attend a training session in April "if you're still here," commented, "Oh, I shouldn't say that; you will file an unfair labor practice charge against me." Respondent took the postition in the pre-election hear- ing that Tate should be excluded from the bargaining unit on the ground that she was a confidential employee. The Acting Regional Director rejected that position in his Decision and Direction of Election. On Respondent's request for review, the Board sustained the Acting Re- gional Director. Respondent next challenged Tate's ballot, contending that changes in her duties since the representation hearing had rendered her a confidential employee. This contention likewise was rejected by the Acting Regional Director in a Supplemental Decision dated June 26, 1979. The Acting Regional Director again was sustained by the Board as concerns Tate by an order issuing on August 17. Tate had begun working for Respondent in November 1978. Conclusions: It is concluded that the suspension and discharge of Tate were prompted by her union sympa- thies and activities, thereby violating Section 8(a)(3) and (1) as alleged 2 0 It is further concluded that Deans' re- " Yet, in a letter of recommendation written about a month before Tate's discharge, Deans stated that she performed her duties "in a highly efficient and professional manner with a minimum of supervision." and was considered to be "a very productive and valuable employee" 20 Despite the recurrent determinations to the contrary in the represen- tation case, Respondent persists in its contention that Tate was a confi- dential employee It further contends that, as such, she is outside the pro- Continued 1165 DECISIONS OF NATIONAL LABOR RELATIONS BOARD marks to Tate on July 3 that he had been thinking of sus- pending her and on July 10 that she would "probably be fired" if she failed to report for work were similarly mo- tivated, thus violating Section 8(a)(1) as alleged. These conclusions derive from the following aggregate of factors: (a) It was "common knowledge" among management that Tate was prominently prounion. (b) Tate's union sympathies were "a source of discom- fort" to Deans, who felt that her duties as his secretery were incompatible with her having union representation. Deans not only spoke "several times" with Lewan- dowski and Williams about this, but felt that the only so- lution was for Tate either to renounce the Union or be terminated. (c) That Respondent was intent upon building a case against Tate, giving colorable validity to a later imposi- tion of sanctions, is revealed by Williams' having in- structed Deans in late June-i.e., perhaps I week before her suspension and 2 weeks before her discharge-to "document any errors" in her work. The weight of evi- dence, including Deans' previous letter of recommenda- tion, indicates that Tate was a more-than-adequate em- ployee, and undercuts the bona fides of such a documen- tation procedure. (d) The general merriment surrounding the spoiled food incident tends to corroborate Tate that she was "just goofing around" during her momentary absence from the switchboard. Also corroborative is Cronk's ad- mission that it did not occur to him until later, "after a few minutes of contemplation," that Tate's behavior was "inappropriate." This suggests that Tate's conduct nei- ther was nor perceived as being of a seriousness warrant- ing any kind of discipline, let alone a 3-day suspension, but was seized upon as a convenient pretext to punish her for her union involvement. (e) Regarding the discharge, the stated reasons for denying the leave of absence are unconvincing, indicat- ing that the denial was in the expectation that Tate nev- ertheless would follow the doctor's recommendation, thereby presenting Respondent with a sure-fire chance to terminate her for "insubordination." Lewandowski's pro- fessed reservations over the form of the doctor's note can only be described as the quibbling of one with an ul- terior motive. The same can be said of his checking with the clinic concerning the note's genuineness, but not bothering to inquire into the nature and seriousness of Tate's health problem. Equally as transparent is the assertion that Deans could not spare Tate because of workload considerations. Her request was for only one week's leave, Respondent seemingly had no hesitancy about workload when it un- tection of the Act. The Board recently stated in Los Angeles New Hospi- tal, 244 NLRB 960, fn 4 (1979): "[T]hat confidential employees do not enjoy protection under the Act, although consistent with the decisions of several courts of appeals, is, with all respect to those courts of appeals, inconsistent with current Board law." The Board continued in the same footnote "It is well settled that it is the duty of an Administrative Law Judge to apply established Board precedent which the Supreme Court has not reversed." To like effect are Peavey Company, 249 NLRB 853, fn. 3 (1980), and Hendricks County Rural Electric Membership Corporaltion, 236 NLRB 1616, 1619 (1978). lawfully suspended her a few days before, and temporary fill-in help apparently was readily available. 2 1 (f) Lewandowski's heavy involvement in the matters immediate to Tate's discharge-even to the point of writ- ing the rough draft of the memorandum to the director of personnel that issued in Deans' name-indicates that this was seen as a matter of great sensitivity in which policy considerations transcended those usually obtaining when adverse action against an employee is contemplat- ed. CONCLUSIONS OF LAW 1. Respondent violated Section 8(a)(5) and (1) of the Act by: (a) Abrogating article XVII of the 1977-80 bargaining agreement as concerns the allocation of pension plan dividends, effective January 1, 1979, without valid con- sent from the Union. (b) Failing to comply fully and promptly with the Union's requests of May 31 and August 16, 1979, for in- formation underlying Respondent's decision to alter the application of dividends under its pension plan. 2. Respondent violated Section 8(a)(3) and (1) of the Act by: (a) Suspending Katherine Tate on July 5, 1979, and discharging her on July 13. (b) Issuing a written reprimand, dated July 5, 1979, to Kathleen Gunton. 3. Respondent violated Section 8(a)(1) of the Act by: (a) Cronk's telling Barbara Hightower on March 9, 1979, that Lewandowski "had put a blanket on all raises · . because of the filing" of an election petition; his saying to her that she "probably" would not get a raise "if the Union comes in," but that she probably would "if the Union doesn't come in"; and his asking her why the employees "were filing for a union." (b) Lewandowski's issuing memoranda on June 26 and July 20, 1979, that indicated to the employees that the Union's election victory, and the organizational effort that preceded it, not only were a futility, but would cause them economic detriment. (c) Deans' remarking to Tate on July 3, 1979, that he had been thinking of suspending her and on July 10 that she would "probably be fired," both statements having been prompted by Tate's union sympathies and activities. ORDER 2 2 The Respondent, Intermountain Rural Electric Associ- ation, Littleton, Castle Rock, Conifer, Strasburg, and Woodland Park, Colorado, its officers, agents, succes- sors, and assigns, shall: 1. Cease and desist from: 21 The record suggests that, starting on or about July I1, Respondent used a Kelly Girl as a temporary fill-in for Tate. 2 All outstanding motions inconsistent with this recommended Order hereby are denied. In the event no exceptions are filed as provided by Sec 102.46 of the Rules and Regulations of the National Labor Relations Board, the findings, conclusions, and recommended Order herein shall, as provided in Sec 102.48 of the Rules and Regulations, be adopted by the Board and become its findings, conclusions, and Order. and all objections thereto shall be deemed waived for all purposes 1166 INTERMOUNTAIN RURAL ELECTRIC ASSOCIATION (a) Refusing to bargain collectively with International Brotherhood of Electrical Workers, Local No. 111, as the representative of the employees in the appropriate unit described below, by abrogating article XVII of the 1977-80 bargaining agreement between Respondent and the Union as concerns the treatment of pension plan divi- dends or by abrocating any other provision of said agree- ment without the valid consent of the Union. The appro- priate unit is: All production and maintenance employees em- ployed by IREA at and out of its Littleton, Colora- do, place of business, and at or out of its branch places of business, including Castle Rock, Conifer, Strasburg, and Woodland Park, Colorado, including the warehouseman, the janitor, the assistant engi- neers, and chain and rod man, excluding office clerical employees, guards, professional employees, and supervisors as defined in the Act. (b) Refusing to bargain collectively with the Union, as the representative of the employees in the above unit, by failing to provide the Union, promptly upon request, with complete information underlying Respondent's deci- sion to alter the application of dividends under its pen- sion plan or with any other information to which the Union is lawfully entitled as bargaining representative. (c) Discharging, suspending, reprimanding, or other- wise discriminating against employees for engaging in union or concerted activities protected by the Act. (d) Telling employees that "a blanket" has been put on raises "because of the filing" of a petition for a union election, and that raises probably will not be forthcoming "if the Union comes in," but probably will be "if the Union doesn't come in." (e) Asking employees why the employees "were filing for a union." (f) Indicating to the employees, by memoranda or oth- erwise, that the Union's election victory and the organi- zational effort preceding it were a futility and would cause them economic detriment. (g) Telling employees, in response to their union sym- pathies and activities, that it is thinking of suspending them or that they will "probably be fired." (h) In any like or related manner interfering with, re- straining, or coercing employees in the exercise of the rights guaranteed them by Section 7 of the Act. 2. Take the following affirmative action: (a) Rescind the change in the treatment of pension plan dividends, effective January 1, 1979, as it affects em- ployees in the above unit, and execute whatever docu- ments, make whatever remittances, and otherwise do whatever is necessary to restore the situation, as con- cerns employees in the above unit, to that which would now obtain had the change never been made. 23 23 The Union proposes in its brief that, as an alternative to restoration of the status quo ante, it be given the option of restoring and continuing the arrangement whereby Respondent made all pension contributions. with amounts withheld from employee pay for that purpose being refund- (b) Promptly provide the Union with all documents and information requested by it on May 31 and August 16, 1979, concerning the pension plan. (c) Upon request, to the extent required by Section 8(d) of the Act, bargain collectively with the Union as the representative of its employees in the above unit con- cerning contemplated changes in the terms or conditions of employment of those employees, and, if an under- standing is reached, embody it in a signed document. (d) Offer to Katherine Tate immediate and full rein- statement to her former job or, if that job no longer exists, to a substantially equivalent job, without prejudice to her seniority or other rights and privileges, discharg- ing a replacement if necessary, and make her whole for any loss of earnings or benefits suffered by reason of her unlawful suspension and discharge in July 1979, with in- terest on the lost earnings. 2 4 (e) Expunge from its files and other records all copies of or references to the reprimand, dated July 5, 1979, issued to Kathleen Gunton, and inform her in writing that this has been done. (f) Preserve and, upon request, make available, to the Board or its agents, for examination and copying, all payroll records, social security payment records, time- cards, personnel records and reports, and all records nec- essary to analyze the amount of backpay and benefits owing under the terms of this Order. (g) Post at its facilities in Littleton, Castle Rock, Coni- fer, Strasburg, and Woodland Park, Colorado, copies of the attached notice marked "Appendix." 2 5 Copies of said notice, on forms provided by the Regional Director for Region 27, after being duly signed by Respondent's rep- resentative, shall be posted by Respondent immediately upon receipt thereof, and be maintained by it for 60 con- secutive days thereafter, in conspicuous places, including all places where notices to employees are customarily posted. Reasonable steps shall be taken by Respondent to insure that said notices are not altered, covered, or de- faced by any other material. (h) Notify the Regional Director for Region 27, in writing, within 20 days from the date of this Order, what steps Respondent has taken to comply herewith. ed. This is rejected for the reason, earlier noted, that Respondent did not enter into a final and binding agreement to assume the participants' share of the contributions. To fashion a remedial scheme on the premise that it did would conflict with the Spreme Court's admonition that "the Bard may not, either directly or indirectly, compel concessions or otherwise sit in judgment upon the substantive terms of collective bargaining agree- ments" NL.R.B v. American ational Insurance Co., 343 U.S 395, 404 (1952). See also IK Porter Co.. Inc.. Disston Dvision-Danville Works .VL.RB., 397 U.S. 99, 102 (1970) 24 Backpay is to he computed in accordance with F. W' W*,lsirh Company, 90 NLRB 289 (1950), with interest to be computed as set forth in Florida Steel Corporation, 231 NLRB 651 (1977). See, generally, sis Plumbing Heating Co., 138 NLRB 716 (1962). 2s 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 Pursu- ant to a Judgment of the United States Court of Appeals Enforcing an Order of the National Labor Relations Board " 1167 Copy with citationCopy as parenthetical citation