J. C. Penney Co., Inc.Download PDFNational Labor Relations Board - Board DecisionsJul 24, 1968172 N.L.R.B. 1279 (N.L.R.B. 1968) Copy Citation J. C. PENNEY CO., INC. (STORE #1814) 1279 J. C. Penney Co., Inc . (Store #1814) and Local 725, Retail Clerks International Association, AFL-CIO. Case 25-CA-2934 July 24, 1968 DECISION AND ORDER By MEMBERS BROWN , JENKINS, AND ZAGORIA On April 2, 1968, Trial Examiner John F. Funke issued his Decision in the above-entitled proceed- ing, finding that the Respondent had engaged in and was engaging in certain unfair labor practices and recommending that it cease and desist therefrom and take certain affirmative action, as set forth in the attached Trial Examiner's Decision. Thereafter, the Respondent filed exceptions to the Trial Examiner's Decision and a supporting brief, and the General Counsel filed a brief in support of the Trial Examiner's Decision. 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 powers in connection with this case to a three- member panel. The Board has reviewed the rulings of the Trial Examiner made at the hearing and finds that no prejudicial error was committed. The rulings are hereby affirmed. The Board has considered the Trial Examiner's Decision, the exceptions and brief, and the entire record in the case, and hereby adopts the findings, conclusions, and recommenda- tions of the Trial Examiner.' In rejecting store manager White's testimony as to when the decision to terminate Owens was made, the Trial Examiner characterized his conclusion that his rejection of White's testimony very well might amount to substituting suspicion for proof. We do not agree. Critical to the Respondent's defense is the credibility of White's testimony that the decision to terminate Owens was made on Friday, September 8, 1967, prior to Owens union activity of which patently White could not have had any knowledge if his testimony with respect to the decision to terminate is accepted. White's testimony, however, while not contradicted, is sub- ject to the test of corroborating evidence or the lack thereof particularly where, as here, cor- roborating evidence apparently should have been available. If, as White testified, he instructed the of- fice manager to make out the termination papers on Friday morning, why did not the Respondent have the office manager testify on this point? In our opinion, the absence of such a witness or the failure to explain such absence weighs heavily in favor of the General Counsel's case.' In addition to this, the testimony of Hardesty, the Respondent's area operations and control manager, supports White's testimony as to a conversation regarding Owens' at- titude on the 7th, but again, fails zo corroborate White's critical testimony that in this conversation they discussed terminating Owens. Finally, we be- lieve that if in fact White did decide to terminate Owens on Thursday evening or Friday morning and directed the papers be prepared as of Friday morn- ing, this information would have been commu- nicated in some way to Wolfe, the supervisor most directly concerned with these events. A careful review of the record fails to show that Wolfe was at any time apprised of this decision, and yet Wolfe testified that he had talked with Smalley on the 9th about Owens' union activity.' ORDER Pursuant to Section 10(c) of the National Labor Relations Act, as amended, the National Labor Relations Board adopts as its Order the Recom- mended Order of the Trial Examiner as modified below and hereby orders that the Respondent, J. C. Penney Co., Inc. (Store #1814), Indianapolis, Indi- ana, its officers, agents, successors, and assigns, shall take the action set forth in the Trial Ex- aminer's Recommended Order; as so modified. 1. Add the following as paragraph 1(c): "(c) In any other manner interfering with, restraining, or coercing employees in the exercise of their rights of self-organization, or to form, join, or assist the Union, or any other labor organization, to bargain collectively through representatives of their own choosing, to engage in concerted activi- ties for the purpose of collective bargaining or other mutual aid or protection, or to refrain from engaging in any or all such activities." 2. Add the following as paragraph 2(b), the present paragraph 2(b) and those subsequent thereto being consecutively relettered: "(b) Notify the above-named employee, if presently serving in the Armed Forces of the United States of her right to full reinstatement upon application in accordance with the Selective Ser- ' As a discharge in violation of Section 8(a)(3) goes to the very heart of the Act, we shall modify the Recommended Order to include a broad cease-and-desist order 2 Wigmore , Evidence 285, (3d ed.) See also N L R.B. v Homedale Tractor & Equipment Company, 211 F 2d 309, 315 (C.A. 9, 1954) n Smalley's testimony shows that he was allegedly aware of the decision to discharge early on the 8th, and yet, neither Smalley nor White offered any explanation as to why Wolfe was not in some way involved in the deci- sion or given knowledge thereof even though Wolfe apparently expected Owens to report for work on Monday, September I I 172 NLRB No. 134 1280 DECISIONS OF NATIONAL LABOR RELATIONS BOARD vice Act and the Universal Military Training and Service Act , as amended, after discharge from the Armed Forces." 3. Add the following after the third substantive paragraph of the Appendix "Notice to All Em- ployees: " WE WILL NOT in any other manner interfere with , restrain , or coerce our employees in the exercise of their rights to self-organization, or to form , join , or assist the Union , or any other labor organization , to bargain collectively through representatives of their own choosing, to engage in concerted activities for the pur- pose of collective bargaining or other mutual aid or protection , or to refrain from engaging in any or all of such activities. 4. Add the following immediately below the signature line at the bottom of the Appendix at- tached to the Trial Examiner 's Decision: NOTE : We will notify the above -named em- ployee , if presently serving in the Armed Forces of the United States, of her right to full reinstate- ment , upon application , in accordance with the Selective Service Act and the Universal Military Training and Service Act, as amended, after discharge from the Armed Forces. TRIAL EXAMINER'S DECISION STATEMENT OF THE CASE JOHN F. FUNKE, Trial Examiner : Upon a charge filed September 28, 1967, by Local 725, Retail Clerks International Association , AFL-CIO, herein the Union, against J. C. Penney Co., Inc., herein Penney or the Respondent , the General Counsel is- sued complaint alleging Respondent violated Sec- tion 8(a)(1) of the Act by engaging in surveillance of the union activity of its employees and violated Section 8(a)(1) and ( 3) of the Act by discharging Katherine L. Owens. The answer of Respondent de- nied the commission of any unfair labor practices. This proceeding , with all parties represented, was heard before me at Indianapolis , Indiana, on Janu- ary 22 and 23, 1968. At the conclusion of the hear- ing the parties were given leave to file briefs and briefs were received from the General Counsel and Respondent by March 6, 1968. Upon the entire record in this case and from my observation of the witnesses while testifying, I make the following: FINDINGS AND CONCLUSIONS 1. THE BUSINESS OF THE RESPONDENT Respondent is a Delaware corporation engaged in the operation of retail chain stores in many of the States. It maintains a store at Indianapolis, Indi- ana, known as the Southern Plaza store ( Store # 1814) which is the only store involved in this proceeding . During a representative 12-month period sales of merchandise at Store #1814 ex- ceeded $500,000. During the same period Store # 1814 received merchandise valued in excess of $50,000 which was transported to said store from States other than the States of Indiana . Respondent is engaged in commerce within the meaning of the Act. II. LABOR ORGANIZATION INVOLVED The Union is a labor organization within the meaning of the Act. III. THE ALLEGED UNFAIR LABOR PRACTICES A. The Facts 1. The discharge of Owens Katherine Owens was employed as a stock clerk at Respondent 's Southern Plaza store from March 1962 until she was discharged on September 11, 1967.She worked in the stockroom where she per- formed the usual duties of a stockroom clerk. Respondent contends Owens was a supervisor, a contention with which I do not agree . It is true that from June or July of 1966 , during the illness and ul- timate death of Stock Department Manager Mayer and until the employment of Leo Roger Wolfe on October 1 , 1966, the stockroom was without a su- pervisor and Owens acted as supervisor . Following the employment of Wolfe she resumed her regular duties. It is true that she recommended applicants for employment who were subsequently hired but it is a routine procedure for employees in retail and other small industries to recommend friends or acquaintances for employment when vacancies oc- cur.' Wolfe himself testified that when employees told him that if Owens did not like them they "would be gone" he told them this was not true. He also testified that when Owens, who was con- cededly a senior employee , protested certain changes in the working arrangements that "we went ahead and made the changes ." Perhaps more con- clusive is the fact that there were only two , three or four girls working in Owens' division of the stockroom ( it was divided into ladies ' and men's apparel ) and about seven in the entire room. Neither the nature of the functions nor the size of the complement required two supervisors. Owens was designated as a stock clerk on Respondent's personnel records of 1967.1 During the course of her employment Owens received the following pay increases: ' Wolfe stated he inquired of everyone in the stockroom when help was needed 'GC Exh 3 J. C. PENNEY CO., INC. (STORE #1814) 1281 From To Date (Hourly Rate ) (Hourly Rate) March 1962 Began $1.10 April 1963 $1.10 1.16 Nov. 1 1, 1963 1.16 1.21 May 18, 1964 1.21 1.30 Nov. 16, 1964 1.30 1.37 June 21, 1965 1.37 1.45 Oct. 18, 1965 1.45 1.52 Jan. 3, 1966 1.52 1.56 Aug. 22, 1966 1.56 1.70 May 22, 1967 1.70 1.85 (at time of discharge) On July 17, 1967, Owens went on sick leave. While on leave she had conversations with both Wolfe and Store Manager White. She testified that while on leave she learned that she was being trans- ferred to other work in her department and that on August 23 she called Wolfe, who told her he had a good job for her on the "chase machine" and she replied that two other girls had turned it down. Wolfe then told her it was all he had for her. Owens then went to the store and after some conversation she agreed to stay at Southern Plaza and work the chase machine. She later wrote White to that ef- fect. (G.C. Exh. 4.) On September 5 Owens saw her doctor who told her she could go back to work. On the 7th she called White who told her to report for work on September 11. On September 11 Owens reported for work shortly before 8 o'clock and left her medi- cal certificate on White's desk. A few minutes later she saw White who took her into his office and told her he thought it best for all concerned if they severed relations. She asked if she was fired and when White said she was, told him that was all right with her. This was the first she knew that the Respondent had contemplated firing her. Her ter- mination check had been made out and was given to her at the time. 2. Union activity and company knowledge Katherine Owens and her daughter, Janet Mil- ligan, signed authorization cards on behalf of the Union on September 4. (G.C.Exhs. 8 and 9.) On September 7 she asked another employee, Lola An- drews, if she would sign a card and gave her one. This conversation took place outside the store. On the same day she talked to employees Dorothy Titus and Margaret Beeman at lunch-they lunched at Woolworth's- talked to them about the Union, and gave them the Union's book "It Pays to Be- long." (G.C. Exh. 6.) Larry Malson, head of the shoe department and a witness for the Respondent, testified that he had dinner with Wolfe on September 8 and that Wolfe told him that Owens was trying to organize a union in the store. He advised Wolfe to tell White. The next day, Saturday, September 9, Malson had luncheon with Ronald Metcalfe and told him what he had heard from Wolfe. Metcalfe testified that after the luncheon he tried to call White but White was not at the store so he reported the conversation to Ronald Smalley, assistant manager.3 Wolfe testified that he had dinner with Malson on the evening of September 8, that he told Malson that he had heard "something about the, about union activity" and mentioned Owens. Wolfe stated he had heard of Owens' activity through a Mrs. Deatheridge and that Friday afternoon was the first he had learned of it. Wolfe did not report his knowledge of the activity to White but did, on the next day, Saturday, report it to Smalley. He also testified that during the dinner conversation with Malson, Malson did not indicate that he had any knowledge of union activity in the store. White, who made the decision to discharge Owens, testified that the first knowledge he had of Owens' union activity was acquired on Sunday, September 10, and that he had heard no rumors of any union activity prior to that time. On Sunday White received a telephone call from Smalley in which Smalley asked him if he knew Owens was at- tempting to organize the store. Smalley informed him that he had learned of it through Metcalfe on Saturday and had attempted to reach him (White) but had been unable to. White's response to Smal- ley's question as to what he proposed to do was, "I'll consider it." 3. Asserted reasons for the discharge of Owens Respondent gives three reasons for the discharge of Owens: poor productivity, poor attitude toward her work, and tardiness. As to productivity Kenneth Hardesty, group operations and control manager for the five Indi- anapolis stores, testified he visited the Southern Plaza store about March 7, 1967, to check its stockroom operations, which had the worst record of the five stores.5 He made "extensive recommen- dations and drew an outline of physical changes ... to improve efficiency." On March 31 he returned to the store and worked with Wolfe to effectuate the changes. According to Hardesty, Owens ob- jected to one of the changes because she would lose her marking table.' Respondent introduced man- ` Smalley, in his testimony, corroborated Metcalfe as to the date of this conversation The General Counsel offered in evidence the pretrial af- fidavit of Smalley in which he stated the conversation took place on Sep- tember 8 It was received without objection White's testimony that he left Indianapolis about noon on Saturday for Xenia, Ohio, and did not return until after 1 1 p in is uncontradicted and is accepted s Hardesty testified that stockroom productivity was running at $177 per man-hour while an acceptable average was $250-300 White's testimony is that Hardesty 's visits occurred in May, not March 6 White testified that Owens completely rejected the changes and that he and Owens went down to "make some changes to revert it back the way it was " Despite the lengthy testimony on the changes, the only direct testimony is that two tables were moved and that one of them was returned at the request of Owens 1282 DECISIONS OF NATIONAL LABOR RELATIONS BOARD hour figures to support its contention to show that Owens was responsible for the poor production of the stockroom . These figures, as testified to by White, indicated production for 1967 as follows: January 145.00 February 174.00 March 193.00 April 135.00 May 135.00 June 174.00 July 189.00 August 208.00 September 275.00 October 268.00 November 218.00 December 266.00 The figures do establish that following the month of July when Owens went on sick leave there was a significant increase in the man-hour production record of the stockroom. The accuracy of the figures was not susceptible to attack by the General Counsel, being peculiarly within the knowledge of Respondent. Respondent also introduced into evidence an appraisal of performance report for Owens, dated May 24, 1967, which indicated, on the basis of White's explanatory testimony, that her performance on most of the factors rated was per- haps adequate but certainly not superior. (G. C.Exh. 3.) As to the allegation that Owens' attitude was un- satisfactory the evidence is far from conclusive. White testified that while Mayer was sick in August of 1966 he spoke to Owens about productivity and that she told him she was doing all she could and could not "get these people to cooperate." White further testified that on June 19, 1967, he prepared a memorandum referring to Owens' continued fric- tion with stockroom girls and discussed it with Wolfe. No evidence of such friction was supplied in the testimony of White. On August 15, while Owens was on sick leave, White prepared another memorandum to the effect that Owens had been calling the girls in the stockroom and "Appears upset because Deloris Wagers is doing the job Kate was on. Possibly upset because merchandise is mov- ing out on time with fewer markers." The informa- tion on which this memorandum was based was acquired from Wolfe. Wolfe's testimony is that on one occasion Owens refused to discuss the problem of her relations with the other girls with him and told him she might not be in the next day because she was not feeling well. She was not in the next day. Another incident testified to by Wolfe concerned relations between Owens and an employee named Evelyn Johnson. According to Wolfe, Owens told him to get John- son off her back or she (Owens) would and that this stemmed from complaints made by Johnson to Wolfe related to Owens' late arrivals and her habit of keeping her coat and purse downstairs (presumably in the working area). This was ap- parently against the rules and when Wolfe spoke to the girls about this he stated that Owens resented it. In addition there is testimony by White that both Wagers and Johnson complained to him at some time concerning their relations with Owens. It is evident that there were incidents which arose from time to time in which Owens and the other girls had disagreements but it is impossible from the record to indicate where the blame should be placed or to indicate that the incidents were more than trivial. It is inevitable that when women (or men) work together in reasonably close proximity and in close- ly related jobs differences will arise. I do not find that the record here will sustain the charge that Owens' attitude toward her work or her relations with her fellow employees was sufficient grounds for discharge.7 As to tardiness, Respondent offered the testimony of White that Owens would arrive 15 to 20 minutes late at least once a week. This tardiness apparently was a regular occurrence during the 5- 1/2 years of her employment and was never the subject of reprimand. Offsetting this, if it needs off- setting, is Owens' uncontradicted testimony that she frequently worked overtime without compensa- tion. 4. Alleged surveillance of union activity The complaint alleged two instances of alleged surveillance of union activity. The first, the so- called parking lot incident, was dismissed by the Trial Examiner at the hearing and no appeal from the dismissal was taken. As to the second the testimony merely establishes that Phillip Smalley followed Katherine Owens and Madonna Whiteford about the store when they were shopping there some time after Mrs. Owens' discharge and assisted in making one sale to them. I find this testimony totally insufficient to establish surveillance within the meaning of the Act. B. Conclusions The resolution of the issue as to the discharge of Owens, the only issue remaining in the case, pro- vides the usual difficult problem where the asserted reasons lead to no firm conclusion and the alleged discrimination can be supported by no direct evidence. I find none of the asserted reasons, either productivity, attitude, nor tardiness convincing on the basis of the testimony offered to substantiate them. Particularly is this true in view of Owens' length of service with Respondent, her pay in- ' Neither Wagers nor Johnson nor any other fellow employee was called as a witness by Respondent J. C. PENNEY CO., INC. (STORE #1814) creases, and the minor degree of authority she was given in the stockroom." This, of course, does not answer the question at issue. An employer needs to give no reason for discharging an employee. The General Counsel must prove that the reason was discriminatory within the meaning of the Act. I think that the sole issue presented in establishing that the discharge was discriminatory was that of company knowledge of Owens' discharge in relation to the date of the decision to discharge. White's testimony, supported by that of Smalley, is that White did not learn of Owens' union activity until September 10. It is also his testimony that the decision to discharge Owens was made on September 7 following a conversation with Wolfe respecting Owens on that date. This conversation with Wolfe occurred after Owens had talked with White and White had told her to report to work on September 11. According to White, Wolfe told him "He says our operation has smoothed to the point where I don't see how I can continue or make it work by taking her back into the job." White agreed and decided to discharge her. He denied any knowledge of union activity on the part of Owens at this time.9 Nevertheless I believe the General Counsel has sustained his burden of proof that the discharge of Owens was in violation of the Act. The issue is cer- tainly not free from doubt and any reviewing authority might well reach a contrary conclusion. It is, however, a fact that Owens had been a satisfac- tory employee for more than 5 years, had received pay increases during that period, and her responsi- bilities had been increased. Management admit- tedly knew of her union activity on September 8 and management had admittedly promised her on September 7 that she could report back to work on September 11. The difficulty is in determining when White acquired knowledge of her union ac- tivity and when he reached the decision to discharge her. If White is credited he did not know of her union activity at the time of decision. I am not accepting this testimony and it may well be ar- gued that this is substituting suspicion for proof. The decision is based on the fact that the record does not support the alleged reasons for discharge, that at least one member of management knew of her union activity on September 8, that she had been promised her job back on September 7 and that White, when allegedly informed of her union activity on September 10 merely replied, "I will consider it." If her discharge papers had already been processed and had been for nondiscriminatory reasons the reply has little meaning. I therefore find that the discharge of Owens was in violation of Sec- tion 8(a)(3) and (I) of the Act. 8 Consideration has been given to Wolfe's testimony concerning his telephone conversation with Owens on August 23 in which he advised her that certain changes would be made in the stockroom While Wolfe testified that Owens was "pretty upset" I again find the testimony inconclu- sive I found Wolfe a hesitant and evasive witness and , where his testimony is contradictory with that of Owens, I credit Owens IV. THE REMEDY 1283 Having found the Respondent engaged in and is engaging a certain unfair labor practice it shall be recommended that it cease and desist from the same and take certain affirmative action designed to effectuate the policies of the Act. Having found that Respondent unlawfully discharged Katherine Owens because of her union or other concerted activity and in order to discourage membership in a labor organization, I shall recommend that Respondent offer her full and immediate reinstatement to her former or substan- tially equivalent position without prejudice to her seniority or other rights and privileges and make her whole for any loss of pay she may have suffered by reason of the discrimination practiced against her. Backpay shall be computed in accordance with the formulae set forth in F. W. Woolworth Company, 90 NLRB 289, and Isis Plumbing & Heating Co., 138 NLRB 716. Because only a single violation of the Act has been found and because the evidence to support that violation is far from overwhelming the broad cease-and-desist order usually recommended in remedying violations of Section 8(a)(3) will not be recommended herein. Upon the basis of the foregoing findings of fact and upon the entire record in this case, I make the following: CONCLUSIONS OF LAW 1. By discharging Katherine Owens because of her union or other concerted activity and in order to discourage membership in or action on behalf of Local 725, Retail Clerks, International Associa- tion, AFL-CIO, Respondent has violated Section 8(a)(3) and (1) of the Act. 2. The aforesaid unfair labor practice is an un- fair labor practice affecting commerce within the meaning of Section 2(6) and (7) of the Act. RECOMMENDED ORDER It is hereby recommended that J. C. Penney Co., Inc. (Store #1814), its officers, agents, successors, and assigns, shall: 1. Cease and desist from: (a) Discriminating against any employee in re- gard to his hire or other term or condition of em- ployment to discourage membership in Local 725, Retail Clerks International Association, AFL- CIO, by discharging him. (b) Discharging any employee for engaging in union or concerted activity for mutual aid and pro- tection guaranteed to him by Section 7 of the Act. 9 The Trial Examiner permitted testimony of a polygraph test taken of White on this issue The results of the test showed that White was telling the truth when he denied knowledge of union activity on the part of Owens when he made the decision to discharge her. The testimony has been evalu- ated but has not been given controlling weight in determining the credibili- ty of the witness 1284 DECISIONS OF NATIONAL LABOR RELATIONS BOARD 2. Take the following affirmative action neces- sary to effectuate the policies of the Act. (a) Offer Katherine Owens full and immediate reinstatement to her former or substantially equivalent position without prejudice to her seniori- ty or other rights and privileges and make her whole for any loss of pay or other monetary loss she may have suffered by reason of the discrimination practiced against her in the manner set forth in that part of this Decision entitled "The Remedy." (b) Preserve and, upon request, make available to the Board or its agents, for examination and copying, all payroll records, social security payment records, timecards, personnel records and reports, and all other records necessary to analyze the amount of backpay due under the terms of this Order. (c) Post at its terminal at Indianapolis, Indiana, copies of the attached notice marked "Appen- dix."" Copies of said notice, on forms provided by the Regional Director for Region 25, after being duly signed by the Respondent's authorized representative, shall be posted by Respondent im- mediately upon receipt thereof and maintained by it for 60 consecutive days thereafter, in con- spicuous places, including all places where notices to employees are customarily posted. Reasonable steps shall be taken by Respondent to insure that said notices are not altered, defaced, or covered by any other material. (d) Notify the Regional Director for Region 25, in writing, within 20 days from the receipt of this Decision, what steps have been taken to comply herewith." 10 In the event that this Recommended Order is adopted by the Board, the words "a Decision and Order " shall be substituted for the words "the Recommended Order of a Trial Examiner" in the notice . In the further event that the Board 's Order is enforced by a decree of a United States Court of Appeals , the words "a Decree of the United States Court of Ap- peals Enforcing an Order" shall be substituted for the words "a Decision and Order " " In the event that this Recommended Order is adopted by the Board, this provision shall be modified to read "Notify the Regional Director for Region 25, in wnting, within 10 days from the date of this Order, what steps Respondent has taken to comply herewith " APPENDIX NOTICE TO ALL EMPLOYEES Pursuant to the Recommended Order of a Trial Examiner of the National Labor Relations Board and in order to effectuate the policies of the Na- tional Labor Relations Act, as amended, we hereby notify our employees that: WE WILL NOT discharge any employee to discourage membership in Local 725, Retail Clerks International Association, AFL- CIO. WE WILL NOT discharge any employee because he has engaged in union activity or other concerted activity protected by Section 7 of the Act. WE WILL offer Katherine Owens her job back without loss of seniority or other rights or privileges and we will pay her for any loss of pay she may have suffered since we fired her. All our employees are free to become or remain, or to refran from becoming o remaining, members of the above-named or any other labor organiza- tion, except to the extent that such right might be affected by a lawful union-security clause executed between Respondent and a labor organization in conformity with Section 8(a)(3) and Section 7 of the Act. J. C. PENNEY CO., INC. (STORE #1814) (Employer) Dated By (Representative ) (Title) This notice must remain posted for 60 consecu- tive days from the date of posting and must not be altered, defaced, or covered by any other material. If employees have any question concerning this notice or compliance with its provisions , they may communicate directly with the Board' s Regional Office, 614 ISTA Center, 150 West Market Street, Indianapolis, Indiana 46204, Telephone 633-8921. Copy with citationCopy as parenthetical citation