J. J. Cook Construction Co., Inc.Download PDFNational Labor Relations Board - Board DecisionsApr 20, 1973203 N.L.R.B. 41 (N.L.R.B. 1973) Copy Citation J. J. COOK CONSTRUCTION COMPANY J. J. Cook Construction Company, Inc. and Empire Building Corporation and International Union of Operating Engineers , Local 627, AFL-CIO. Case 16-CA-4733 41 or serve to remedy the unfair labor practices found 4 Accordingly, we shall delete that requirement from the Administrative Law Judge's recommended Order. ORDER April 20, 1973 DECISION AND ORDER By CHAIRMAN MILLER AND MEMBERS FANNING AND PENELLO On November 21, 1972, Administrative Law Judge Thomas S. Wilson issued the attached Decision 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 briefs and has decided to affirm the rulings, findings,' and conclusions 2 of the Administrative Law Judge and to adopt his recommended Order with the modification noted below. While we agree with the Administrative Law Judge in his finding that Respondent violated Section 8(a)(3) and (1) of the Act, we do not agree that the facts in this case render appropriate the extraordinary remedy proposed by the Administrative Law Judge. In the absence of a showing that Respondent's initial refusal to retain counsel was based on mere caprice,' we do not find that ordering payment of the transpor- tation expenses will effectuate the purposes of the Act i The Respondent has excepted to certain credibility findings made by the Administrative Law Judge It is the Board 's established policy not to overrule an Administrative Law Judge's resolutions with respect to credibility unless the clear preponderance of all of the relevant evidence convinces us that the resolutions are incorrect Standard Dry Wall Products, Inc, 91 NLRB 544, enfd . 188 F.2d 362 (C.A 3) We have carefully examined the record and find no basis for reversing his findings 1 The Administrative Law Judge, apparently through inadvertence, failed to state the basis for his finding that Respondent is an employer within the meaning of Sec 2(6) and (7) of the Act Since J J Cook Construction Company, inc., had contracts in 1971 with the U S. Army Corps of Engineers totaling over $200 ,000, we find the Respondent 's activities have a substantial impact on the national defense and it will effectuate the purposes of the Act to assert jurisdiction herein . Ready Mixed Concrete & Materials, Inc, 122 NLRB 318. 3 The Board will, in a case involving a respondent who engages in frivolous litigation , issue as part of its order a requirement that respondent bear the cost of the litigation of all the parties . Tudee Products, Inc, 194 NLRB 1234, and 196 NLRB 158. (Chairman Miller dissented in Tudee II from giving such a remedy solely on the ground that, in his view, the record failed to support a finding that the defense asserted was frivolous) However, we do not see how the situation involved in this matter can he deemed to fall into that category or is analagous to it Pursuant to Section 10(c) of the National Labor Relations Act, as amended, the National Labor Rela- tions Board adopts as its Order the recommended Order of the Administrative Law Judge, as modified herein, and hereby orders that Respondent, J. J. Cook Construction Company, Inc., and Empire Building Corporation, Oklahoma City, Oklahoma, its officers, agents , successors , and assigns, shall take the action set forth in the said recommended Order, as modified below: Delete paragraph 2(b) and reletter remaining para- graphs accordingly. There is no evidence that Respondent had had any prior contact with Board procedures . Nor is there evidence that in retaining counsel Respon- dent was attempting to gain an undue advantage by delaying the case in the hope of making it difficult for General Counsel's witnesses to appear. Cer- tainly, counsel's request for time to familiarize himself with the issues of the case and prepare a defense was, under the circumstances , quite reasonable DECISION STATEMENT OF THE CASE THOMAS S. WILSON, Administrative Law Judge: Upon a charge and amended charges duly filed on April 3, May 5, and June 1, 1972, by International Union of Operating En- gineers , Local 627, AFL-CIO, herein referred to as the Charging Party or Local 627, the General Counsel of the National Labor Relations Board, referred to herein as the General Counsel I and the Board respectively, by the Re- gional Director for Region 16 (Fort Worth, Texas), issued its complaint thereon dated June 16, 1972, against J. J. Cook Construction Company, Inc., and Empire Building Corporation, herein referred to as the Respondent or indi- vidually as Cook Co. and Empire. The complaint herein alleged that Respondent had en- gaged in and was engaging in unfair labor practices affect- ing commerce within the meaning of Section 8 (a)(1) and (3) and Section 2(6) and (7) of the National Labor Relations Act, as amended, herein referred to as the Act. Respondent by Jack Cook on July 7, 1972, filed an an- swer admitting certain allegations of the complaint but de- nying the commission of any unfair labor practices. On August 21, 1972, at the resumption of the hearing, Counsel Harrington filed answers on behalf of Cook Co. and Empire individually, which also admitted certain facts alleged in the complaint but denied the commission of any unfair labor practices. In some respects, the answers filed on August 21 conflict with admissions made in the answer of July 7, 1972. i The term specifically includes the attorneys appearing for the General Counsel at the hearing. 203 NLRB No. 6 42 DECISIONS OF NATIONAL LABOR RELATIONS BOARD Pursuant to notice , a hearing hereon was held before me in Oklahoma City, Oklahoma, on August 1 , 2, and 21, 1972.2 All parties appeared at the hearing , were represented by counsel , and were afforded full opportunity to be heard, to produce and cross-examine witnesses , and to introduce evi- dence material and pertinent to the issues . At the conclusion of the heanng , oral argument was waived . Briefs have been received from General Counsel and Respondent on October 11, 1972. Upon the entire record in the case and from observation of the witnesses , I make the following: FINDINGS OF FACT I BUSINESS OF RESPONDENT J. J. Cook Construction Company, Inc., herein Cook Co., is, and has been at all times material herein , a corpora- tion duly organized under and existing by virtue of the laws of the State of Oklahoma, having its principal office and place of business at 5131 North Classen, Oklahoma City, Oklahoma , and is now , and has been at all times herein mentioned , continuously engaged in the building and con- struction business. Empire Building Corporation , herein Empire , is, and has been at all times material herein , a corporation duly organ- ized under and existing by virtue of the laws of the State of Oklahoma , having its principal office and place of business at 5131 North Classen, Oklahoma City, Oklahoma, and is now, and has been at all times herein mentioned , contin- uously engaged in the building and construction business. The complaint herein alleged: Respondent is composed of two corporations, name- ly, J. J. Cook Construction Company, Inc., and Em- pire Building Corporation, which are, and at all times material herein have been , affiliated businesses with common officers, ownership and directors and consti- tute a single integrated business enterprise ; the said directors and officers formulate and adminster a com- 2 At the opening of the hearing on August 1, 1972, upon my request for the appearances , J J (Jack) Cook announced that he was representing each of the corporations here involved, of each of which he was and is the presi- dent A few minutes thereafter , while Jack Cook and General Counsel were having trouble discussing stipulations , I suggested that , if Respondent had an attorney cognizant of labor law, it might assist the hearing At that time, Jack Cook rejected the suggestion with the comment that "I'm aware that it might assist , but I feel that we shouldn't be burdened with this expense " However, after testifying as a 43(b) witness called by General Counsel for about 50 pages of transcript, lack Cook turned to me during a hiatus in the proceeding with a request for a recess because he felt the need for legal representation because, as he explained the following day, "I feel like, due to the questions that are being put to me, that I feel like I do need to be represented by proper counsel to keep from jeopardizing my position " The hearing was thereupon immediately recessed until 2 p.m for that purpose At 2.30 p.m , August 1. Respondent 's present counsel , John Hamngton, appeared and requested a week 's postponement of the hearing in order for him to prepare for trial I thereupon recessed for that purpose until 10 a in August 2 On August 2, Harrington requested either a further postponement of the heanng or permission to withdraw as counsel because he had not had adequate time to prepare it was then mutually agreed to postpone the hearing to August 22, which the parties subsequently agreed to advance to August 21, at my request After 2.30 p.m., August 1, Attorney Harrington acted as Respondent's sole counsel. mon labor policy for the aforenamed companies, af- fecting the employees of said companies. The admitted facts here disclose that Cook Co. and Em- pire have the following officers in common: J.J (Jack) Cook-president and owner of 75 percent of the stock. Ronald Johnson-vice president and owner of 23 to 25 percent of the stock. Gary Reid-secretary. The treasurer of Cook Co. is Jack Cook's wife, Betty H. Cook , whereas the treasurer of Empire is Beatrice Gerhart. The aforementioned individuals also constitute the board of directors for the particular individual corporations. The headquarters of Cook Co. are located in suite 101 and those of Empire in suite 106 in a building located at 5131 North Classen which is owned by Jack Cook. Suites 101 and 106 therein are separated by the first-floor corridor of the building. Although the two corporations have sep- arate telephone numbers , these telephones are interconnect- ed on a common switchboard located in suite 106. Most of the clerical employees paid by checks drawn on Cook Co. work in 101 whereas most of those paid by checks drawn on the Empire account work in 106 . However , the single com- puter on which the payrolls for these two corporations are made out is located in 106 and is used interchangeably by all the employees. At least three-quarters of the supervisors, as well as the Charging Parties herein , are employed inter- changeably by these two corporations but are computerized on the Empire payroll , and one-quarter of the supervisors on the Cook Co. payroll are, regardless of which corporation's work they happen to have been performing during the pay period.; All these employees are paid by checks according to their computerization because , as Jack Cook expressed it, "very seldom would they switch payrolls because it messes up the computer." Jack Cook and/or Johnson determined whether Cook Co. or Empire would bid in a job as general contractor. Empire also is a subcontractor on some jobs where Cook Co. is the general contractor.4 The type of project, according to the testimony, often was determinative as to which corporation would be the general contractor . "Water and sewer treatment plants and resi- dential work, we usually do under Empire," according to Jack Cook. Whereas schools, churches, and industrial buildings were normally done by Cook Co . In this regard, Jack Cook testified: For the record, this is quite common. Several people have multicompany operations, just because . . . with the subcontracting situations, some subcontractors are prepared to work open shop or some are prepared to work union... . Cook further amplified on this as follows: A. A school or church would be built by Cook Con- struction as the general contractor. TRIAL EXAMINER Is that due to the difference in fi- Cook also testified that, in such cases, "we usually make an intercompany adjustment " Some subcontracts between Cook Co and Empire appear to have been slightly nebulous at best . When asked who decided to subcontract a certain job of Cook to Empire, Johnson answered Tee Wrmm I don't know that actually it was set down as a firm decision [to subcontract ] made on that specific job But the personnel that were going to do the job were Empire Building Corporation people J. J. COOK CONSTRUCTION COMPANY 43 nancing? THE WITNESS No it's mainly to meet competition. TRIAL EXAMINER How does it help in meeting compe- tition? THE WITNESS Well, mainly, all residential construc- tion is open shop. So, you can not pay union wage scale and be competitive. TRIAL EXAMINER. And the other . . . that would be the work that Empire is doing, the open shop work, is that right? THE WITNESS. As subcontractor, yes. TRIAL EXAMINER' And the work that Cook takes on in its own name would be union work, is that right? THE WITNESS In general , but not necessarily. Thus it becomes obvious that Jack Cook and Ronald Johnson also had a "multicompany operation" through which they did the business requiring union conditions and employees under the name Cook Co., while doing the non- union or open shop business under the name of Empire. The corporate veils cannot hide this. Jack Cook and Johnson determine the labor policies for both corporations although, according to them, their super- visors do most of the hiring. Consequently, I have no hesitation to find, as I here do, that J. J. Cook Construction Company, Inc., and Empire Building Corporation are affiliated businesses and consti- tute a single integrated business enterprise. II THE UNION INVOLVED International Union of Operating Engineers , Local 627, AFL-CIO, is a labor organization admitting to membership employees of Respondent. III THE UNFAIR LABOR PRACTICE A. The Facts At the time of their discharges on March 23, 1972, Wilmer Glover and Stafford Winn had been steadily employed by Respondent, either Cook Construction and/or Empire for 15 and 14 years, respectively. In fact, Jack Cook testified that Glover had been the first laborer employed by Respon- dent when it was originally organized in 1956 and had been working ever since. Glover and Winn had been members of either the Laborers Union or Local 627 throughout their employment. Originally Glover and Winn had received their pay on the checks of Cook Co. However, after the incorporation of Empire in 1961, they thereafter were paid on checks of Empire. No explanation for this change was ever given the employees. There had been no change in their work so far as they could discern for they continued to operate on Jack Cook's orders on work which, as this record proves, was work being performed by Cook Co. or Empire indiscrim- inately.5 In March 1968, when Glover and Winn were working on a job in Bethany, Oklahoma, Business Agent Bob Willabee came upon the premises, saw them operating heavy equip- ment, and stated that they would have to join the Operating Engineers to continue that work. Glover reported the inci- dent to Ron Johnson. Johnson apparently saw the obvious advantage in having Glover and Winn as members of the Union because they promptly joined the Union and paid their initiation fees with money supplied by Johnson. In- deed, since 1970 Glover and Winn have paid their union dues individually but have been reimbursed by Respondent for these payments. From this it is clear that Respondent saw considerable benefit in having these two employees operating its heavy equipment on both union and nonunion jobs and able to say honestly that they were members of the Union. However, even on that occasion, Johnson protected him- self by saying that he could not afford to pay Glover the union scale because he did not have that much work to do. Despite that comment, Glover and Winn, after having joined Local 627 under those financial arrangements, con- tinued to work steadily as heavy equipment operators on both Cook Co. and Empire projects until their discharge on March 23, 1972. Sometime in October 1971, at a project referred to in this record as Putnam City West, apparently a housing develop- ment and therefore a nonunion (Empire) job, Glover asked Jack Cook if he could not draw the union scale as an opera- tor. Cook answered that he would see. Neither Glover nor Winn heard anything further on this proposal from Cook. In November 1971, Glover requested Supervisor Ed Wa- sha to ask Cook about having himself and Winn paid the union scale for their work. Washa reported back that this was impossible because, if Glover and Winn were raised, all the other heavy equipment operators would have to be raised also. Glover complained that Respondent was paying the union scale to its white equipment operators but not to its three black heavy equipment operators .6 In February 1972, Glover and Winn saw Jack Cook in his office and requested a raise in pay. They pointed out that they had requested such a raise months earlier , but that nothing had come of it. Cook's answer was, "What do you want to do, draw as much money as me?" Cook then an- swered that he could not give them a raise, but that he could give them more hours of work. In March 1972, Glover reminded Respondent Superin- tendent Paul Keathley, who was paid by Cook Co., that he was a member of the Operating Engineers and thought that he should be drawing the union scale for his work. Keathley agreed. But nothing was done about it. Also in early March 1972, Glover and Winn were work- ing apparently for Cook Co., as it was a union job, at Tinker Air Force Base when an army lieutenant came up to Glover ment and continued working on a housing development at 63rd and Warren Streets in Oklahoma City , a nonunion job where Empire was the general contractor They were paid for this work , as usual , by an Empire check. Washa himself testified that both he , Glover , and Winn worked as ordered by Jack Cook on whatever job they were sent to without knowledge or 5 In fact, as disclosed hereinafter , in their last week of employment , Glover interest in whether it was a Cook Co. or an Empire job . Jack Cook testified and Winn worked for Respondent on the Western Electric project , a union that on occasions an intercompany adjustment was made in such cases. job where Cook Co. was the contractor, and immediately on its completion, 6 Actually Winn and Glover were being paid about $2 per hour less than on orders of Respondent 's dirt supervisor , Washa, moved their heavy equip - the scale 44 DECISIONS OF NATIONAL LABOR RELATIONS BOARD and inquired as to whether he was being paid the union scale. When Glover hedged with a "yes and no" answer, the lieutenant demanded a straight answer and received a "no." From Tinker Air Force Base , Glover and Winn were ordered to, and did, move with their heavy equipment to a Cook Co. [union] job at the Western Electric project in Oklahoma City. On or about March 17, while working at the Western Electric job, Glover and Winn requested Washa to call Jack Cook because they were not being paid the union scale. Later that afternoon, Ron Johnson (Cook being out of the office) came to the Western Electric project, had Glover and Winn brought to the construction shed there, and then said, "I understand that you all have some griev- ance." Glover agreed that was so and said , "what it amounts to is just paying me the scale . . . you've got white folks' prices and black folks' prices out here." Johnson answered, "Well, I will pal you the scale for the 2 days that you have left in the hole and the 2 more, we only have 2 more days of work here and when you get through here I don't have anything more for you to do."8 Glover replied, "Well, ok, I will accept it if you will pay me all my back time." Johnson's reply was, "No, I am not talking about no damn back time . I am talking as of 30 seconds ago." This sugges- tion Glover refused. Johnson pulled two bank drafts out of his pocket but did not make them out. He inquired of Winn if he was "going with Glover?" Winn answered, "If you've got to give him his, you might as well give me mine too." That concluded the conversation but, as Johnson passed Washa on his way from the construction shack, he instruct- ed Washa "to get him two more operators for Monday morning."9 According to Johnson's testimony, as he left the Western Electric project, he stopped at the guardhouse there and had the guards remove the names of Glover and Winn from the list of employees eligible for admission to the project. Acting upon the advice of the union business agent whom they consulted and who stated that he would talk to Cook, Glover and Winn reported back to the Western Electric project as usual on Monday. The guards permitted them to the project without question.10 They worked there all day. At about 3 p.m. that afternoon, Washa came on to the project and stated that he did not think anyone was working that day except him. Glover and Winn worked all day Tuesday at the Western Electric project until Washa arrived in the afternoon and ordered them to move their heavy equipment to another project at 63rd and Warren Streets, apparently a housing development and a nonunion (Empire) job. This they did and worked there all day Wednesday with Washa present on numerous occasions. 7 The "2 days in the hole" referred to the 2 working days of the past week for which Glover had not yet been paid . Glover had also worked that Sat- urday which under the union contract would have been at time and a half. 9 This was untrue as Supervisor Washa at the hearing named about four projects on which Winn and Glover would have worked but for their dis- charges 9 Washa's testimony indicated that he actually made no effort to secure other operators until the following Friday, March 24. 10 Johnson had no explanation as to how the employees had gotten through those gates on Monday to go to work. Winn and Glover were admitted to the project without question About 9 a.m. on Thursday, March 24, Jack Cook and Washa came up to Glover and Winn as they were servicing their equipment at 63rd and Warren Streets in preparation for further work there. Jack Cook greeted them with "Didn't Ron Johnson fire you all last Friday?" The men answered that they were not fired because they had not been paid as required by state law. Cook replied, "As far as I am con- cerned, you were fired last Friday." The men then asked Cook if he had not received a copy of the union contract." Cook retorted, "Who are you going to be loyal to, to me or to the Union?" The employees stated that they wanted Cook to abide by the contract. Cook then inquired as to who told them to report for work on Monday. The answer was "Sam Martin," president of Local 627. Cook replied, "Let Sam Martin feed you then," and instructed the men to find themselves something else permanent to do. That ended the employment of Glover and Winn. Thus were Glover and Winn discharged. They have not been reinstated since. B. Conclusions Judging from Respondent's "Suggested Findings of Fact and Conclusions of Law," Respondent here appears to be relying on about four defenses which, according to it, re- quire a dismissal of the complaint herein. A study of these alleged defenses shows that each is either factually errone- ous, legally wrong, or frivolous. Number 4 of these suggested findings reads: 4. Cook Construction and Empire are not integrated companies. This suggested finding is both factually and legally incor- rect. The facts disclose that Jack Cook and Ron Johnson, individuals, are engaged in the building construction busi- ness under the names of Cook Co. and of Empire. Jack Cook personally owns 75 percent of the stock of each corpo- ration while Johnson owns approximately 25 percent of the stock of each. Jack Cook and Johnson make the decisions for each of the corporations. Regarding their use of the names of Cook Co. and/or Empire in their construction business Jack Cook's testimony quoted in full on this point, supra, contains the following: Q. [By General Counsel] Assuming its the type of job that J. J. Construction would want, whose name would you bid on it in? J. J. Cook, or Empire. A. It all depends on the job this is the reason for the two entities. Some work is ... . 11 THE WITNESS I mean, some work we prefer to do in Cook Construction, some work we prefer to do in Em- pire. Cook could not remember that there was any mention of a union con- tract or that he had ever seen that contract before However , Jack Cook testified that "In general, the business agent is kind enough to tell us whether we're violating it [the AGC-Operating Engineers agreement ) or not ." Despite these denials, if such they were , when the employees mentioned being paid "the scale," neither Cook nor Johnson indicated any doubt but that the employees referred to the Union's scale of wages J. J. COOK CONSTRUCTION COMPANY After Jack Cook and Johnson decide under which corpo- rate name they will do the particular project, they order the same employees out to perform the necessary work without regard to whether it is a Cook Company or an Empire job. In their last few days of employment, for example, employ- ees Glover and Winn were ordered to, and did, work at the Western Electric project, a Cook Company or union job, and then were ordered to a housing development at 63rd and Warren Streets, an Empire or open-shop job. Supervi- sor Ed Washa worked the same jobs. Washa, himself, ac- knowledged that he never knew nor cared whether he was working on a Cook Company or an Empire project. He, like Glover and Winn, went where he was ordered by Jack Cook or Johnson. All three were paid by checks drawn on the Empire account, regardless of the project where they had been working and regardless of who was technically the employer, Cook Co. or Empire. Jack Cook testified that this was so because , after an employee 's name had once been programmed into the corporations' common computer, it was likely to "mess up" the computer if that employee's name were changed to another payroll. So these three em- ployees, at least, were always paid by Empire no matter if all their time working during that pay period had been spent technically with Cook Co. as their employer.12 On the other hand, Superintendent Keathley who also worked indiscrim- inately on Cook Co. and Empire jobs was paid by Cook Co. check. Jack Cook was correct when he testified that "several people have multicompany operations" in the construction industry. In fact, Jack Cook and Johnson operate one such "multicompany operation" under the names of Cook Co. and Empire, one being used for projects requiring unions and one for open-shop operations, with both being handled for their own interests by Jack Cook and Johnson. Respondent's brief cites the fact that each corporation had its own stationery, telephone numbers (which just hap- pen to be interconnected), offices (which just happen to be across the corridor), etc. But, as the operations of Jack Cook and Johnson were both union and open shop, both Cook Co. and Empire were a necessary integrated requirement for the successful pursuit of the construction business as prac- ticed by Jack Cook and Johnson. In fact, that was the very purpose and function of these two corporations. Perhaps 50 years or more ago the corporate veil was considered sacrosanct and could never be pierced. Because of just such "multicompany operations" as that operated by Jack Cook and Johnson, the law now permits the corporate veil to be pierced and the phrase "corporate fiction" is now in frequent use in the law books. Accordingly, I have no hesitation in finding, as the facts require, that Cook Co. and Empire were at all times material here affiliated and integrated companies constituting the Respondent here.13 They were also joint employers of the Charging Parties. The second defense raised by the "Suggested Findings" is as follows: 12 Yet Respondent contends that there was no interchange of employees between these two corporate entities 13 See Barwise Sheet Metal Co., Inc, a Division of A,rtron, Inc, 199 NLRB 372. 45 6. The complaining witnesses , Winn and Glover, voluntarily left the employment of Empire. In the light of Jack Cook's own testimony (as well as that of Johnson), this finding is so factually wrong that it is shocking that Respondent even makes the contention. Jack Cook testified as follows: A. Of course, I didn't know about the incident of Mr. Johnson going out on Friday afternoon until the following week. And when I did find out about it and I called Mr. Washa and asked him why they were work- ing when Mr. Johnson had discharged them and when I found out they were working I went out to the jobsite and had a conference with him and Mr . Washa and in essence backed up Mr. Johnson terminating them. It is beyond my knowledge why they were there when they had been terminated. [Emphasis supplied.] The undisputed facts prove beyond a question of a per adventure of a doubt that Respondent discharged employ- ees Glover and Winn, once on March 17 and again on March 24, in fact. I so find. Respondent 's third defense was stated as follows: 3. There is no existing collective-bargaining agree- ment between Cook Construction and the Union. On this point, however, Johnson testified as follows: A. J.J. Cook Construction, Incorporated normally does abide by the [AGC-Union] contract, yes, sir. Cook Co. admittedly had been a member for 4 years of the Oklahoma Chapter of the Builders Division of the Asso- ciated General Contractors of America, Inc., and admitted- ly AGC negotiates contracts on behalf of its members with labor unions which are binding upon both its members and the locals of the Union. AGC had negotiated such a con- tract with the Operating Engineers which was binding on both Cook Co. and Local 627. Jack Cook testified that he was "unsure" whether Cook Co. was bound by the contract or not. However, Cook Co.'s main function in the opera- tions of Jack Cook and Johnson was to permit them to operate as a union general contractor. To do this required contracts with the Union. Although Jack Cook purported to be perplexed as to whether Cook Co. was bound by this contract with the Union, he testified that he had never seen a copy of the contract. However, Cook testified that "In general , the business agent is kind enough to tell us whether we're violating it [the contract] or not." I find that Cook Co. was in fact bound by the AGC- Operating Engineers contract-although, actually, it is im- material to the decision here as to whether Respondent was bound by that contract or not. The fourth and final defense, the last which needs to be considered here, is to be found in three of the "Suggested Findings" as follows: 1. There was no concerted activity."' 11. The Union showed no interest in support of the claimed position of employees Winn and Glover, either at the time of the termination of their employment, the previous 4 years, or at the time of the hearing. 12. No fellow employees of Winn or Glover ap- peared to have any sympathy or support for the posi- tion of Winn and Glover. 14 Both Board and court cases are to the contrary. 46 DECISIONS OF NATIONAL LABOR RELATIONS BOARD Number 11, above, is factually accurate except for the fact that it was Local 627 which filed the charge and which also appeared at the hearing. Although number 12 is factually accurate so far as the record here is concerned, I am at a lost to understand why the Respondent included numbers I1 and 12, above, be- cause each of them is totally immaterial so far as the con- certed activities of employees Glover and Winn are concerned. If, perchance, Respondent considered that num- bers II and 12 were subsidiary findings of number I and proved a fatal deficiency in the allegation of concerted ac- tivity, Respondent is completely mistaken as to the law on the subject. Under the law, the interest of the Union and/or of the remainder of the employees in the problems raised by Glover and Winn is not prerequisite or even required for the actions of those named employees to constitute protected concerted activity. On this question, such are quite immater- ial." Of course, in view of all the testimony of all the parties, there is, and can be, no doubt but that Glover and Winn were discharged first by Johnson and lastly by Jack Cook. Nor can there be any doubt but that, in each instance, Respondent discharged these employees because they had the temerity to ask for a raise in pay and that Respondent abide by its agreement with the Union and pay them the union scale. Further, there can be no doubt but that the request for a wage increase and/or the demand that Re- spondent abide by their collective-bargaining agreement constituted protected concerted and/or union activity on the part of Glover and Winn. Discharging employees for engaging in such protected concerted and/or union activity is, of course, a violation of Section 8(a)(1) and (3) of the Act. I so find. Glover and Winn were, in fact, engaged in a protected concerted activity when requesting that Respondent either give them a raise in wages or pay them the [union] scale for their work for Respondent. They were likewise engaged in a protected concerted activity and/or union activity in de- manding that Respondent live up to its contract with the Union by paying them the contract scale of wages. For making such demands Respondent discharged them both, once on March 17,16 and again on March 24. By discharging Glover and Winn for engaging in the above protected concerted activities, Respondent violated Section 8(a)(1) of the Act. By discharging Glover and Winn for grieving to Respondent that Respondent was not abid- ing by its contract with the Union in failing to pay them each according to the union wage scale, Respondent viola- ted both Section 8(a)(1) and (3) of the Act. I so find. In either case, the remedy would be the same. 15 N L R B v. Interboro Contractors, Inc, 388 F.2d 495 (C A 2, 1967). N L R B. v Ben Pekin Corp., 452 F.2d 205 (C.A 7, 1971) N L R B v H C Smith Construction Co, 439 F.2d 1064 (C.A. 9, 1971 ) Also see Bi-State Warehousing, Inc and Associated Shippers, Inc, 192 NLRB 608 C & I Air Conditioning, Inc, 193 NLRB 911. N.L R B v. Guernsey- Muskingham Elec- tric Co-op Inc, 285 F.2d 8 (C.A 6, 1960). N L R B v. Phoenix Mutual Life Insurance Co 167 F.2d 983 (C.A 7, 1948), cert. denied , 355 U S 845, Crown Central Petroleum v. N L. R B , 430 F 2d 724 (C A 5, 1970) The Millgard Corporation, 189 NLRB 533 1 Johnson's statement to them that he had no more work for them after they completed the excavation work at the Western Electric project was untrue as noted heretofore IV THE EFFECT OF THE UNFAIR LABOR PRACTICES UPON COMMERCE The activities of the Respondent, set forth in section III, above , and occurring in connection with Respondent's op- erations described in section I, above , have a close , intimate, and substantial relationship to trade, traffic, and commerce among the several States and tend to lead to labor disputes burdening and obstructing the free flow of commerce. V THE REMEDY Having found that Respondent has engaged in certain unfair labor practices , I shall recommend that they cease and desist therefrom and take certain affirmative action designed to effectuate the policies of the Act. Having found that Respondent discriminated in regard to the hire and tenure of employment of Stafford Winn and Wilmer Glover on March 24, 1972, because they were en- gaging in protected concerted activities and union activities, I will recommend that Respondent offer each of them full and immediate reinstatement to his former job or, if that job no longer exists , to a substantially equivalent position with- out prejudice to his seniority or other rights and privileges and make him whole for any loss of pay he may have suffered by reason of said discrimination against him by payment to him of a sum of money equal to that which he would have earned at the union scale rate of pay from the date of the discrimination to the date of Respondent's offer of reinstatement less his net earnings during such period in accordance with the formula set forth in F. W. Woolworth Company, 90 NLRB 289, with interest thereon at 6 percent per annum. I will, in addition to the usual remedies required to correct the unfair labor practices found above, order Respondent to pay all the transportation costs of the General Counsel, the union representative at the hearing , the court reporter, and my own necessitated by the resumption of the instant hearing on August 21, 1972, following Respondent's request for a postponement of the instant hearing on August 2 as noted heretofore. As the postponement of August 2 and resumption of the hearing on August 21 was solely at the request of, and for the benefit of Respondent, it seems only fair that Respon- dent, rather than the taxpayers, pay the added costs of the instant hearing necessitated thereby. The facts here show that Jack Cook, president of both Cook Co. and Empire, as well as the owner and operator of a large number of other enterprises , deliberately chose at the opening of the instant hearing on August 1 to announce that he personally would represent Cook Co. and Empire be- cause , as he subsequently explained , he felt that Respondent "should not be burdened" in this matter with the expense of legal representation . This was a conscious and deliberate decision of an experienced businessman who knew the im- port of the complaint served on him on June 16, 1972. However, after testifying for about 50 pages as an adverse witness called by General Counsel, Jack Cook abruptly, but also deliberately, abandoned his original position stated above and requested the right to secure adequate legal rep- resentation in order, as he phrased it, not to "jeopardize" J. J. COOK CONSTRUCTION COMPANY 47 I Respondent's position in the hearing. The granting of this request by Cook necessitated the postponement and the resumption of the hearing with the added expenditures mentioned above. Neither of these decisions can be excused on the basis of mexperience or ignorance. The decisions were those of an experienced businessman deliberately arrived at. Conse- quently the added costs entailed thereby should be borne by the requesting part, the Respondent here. It would be unfair that the taxpayers should be burdened with the added ex- penses caused by Respondent's own deliberate neglect. Because of the type of unfair labor practices engaged in by the Respondent, I sense an opposition by Respondent to the policies of the Act in general and I deem it necessary to order Respondent to cease and desist from in any manner interfering with the rights guaranteed its employees in Sec- tion 7 of the Act. Upon the basis of the foregoing findings of fact and upon the entire record herein I make the following: CONCLUSIONS OF LAW 1. By discriminating in regard to the hire and tenure of employment of Wilmer Glover and Stafford Winn and by discharging each of them on March 24, 1972, because of the fact that they engaged in concerted protected activities, as well as union activities in attempting to enforce compliance with the union agreement, Respondent has engaged in and is engaging in unfair labor practices in violation of Section 8(a)(1) and (3) of the Act. 2. By interfering with, restraining, and coercing its em- ployees in the rights guaranteed them in Section 7 of the Act, Respondent has interfered with, restrained, and coerced its employees in violation of Section 8(a)(1) of the Act. 3. The aforesaid unfair labor practices affect commerce within the meaning of Section 2(6) and (7) of the Act. Upon the basis of the foregoing findings of fact and con- clusions of law, and upon the entire record in this case, I hereby issue the following recommended: ORDER 17 Respondent, J. J. Cook Construction Company, Inc. and Empire Building Corporation, Oklahoma City, Oklahoma, its officers, agents successors , and assigns , shall: 1. Cease and desist from: (a) Discharging or otherwise discriminating in regard to the hire and tenure of employment or of any terms or condi- tions of employment of any of its employees because of their concerted and/or union activities. (b) In any manner interfering with, restraining , or coerc- ing its employees in the exercise of their rights guaranteed them in Section 7 of the Act. 2. Take the following affirmative action designed to ef- fectuate the policies of the Act: (a) Offer to Stafford Winn and Wilmer Glover and each of them immediate and full reinstatement to his former job or, if that job no longer exists, to a substantially equivalent position without prejudice to his seniority or other rights and privileges, and make each of them whole for any loss of pay he may have suffered by reason of said discrimina- tion against him at the rate and in the manner set forth in the section of this Decision entitled "The Remedy," with interest thereon at 6 percent per annum. (b) Pay all the transportation expenses of the General Counsel , the union representative , the court reporter, and the Administrative Law Judge necessitated by the resump- tion of the instant hearing on August 21, 1972, following the Respondent's requested postponement of the hearing on August 2, 1972. (c) Preserve and, upon request , make available to the Board or its agents , for examination and copying , all payroll records , social security payment records , timecards , person- nel records and reports , as well as all other records neces- sary to analyze and compute the amount of backpay due under the terms of this Decision. (d) Post at its Oklahoma City, Oklahoma, offices and all other of Respondent 's facilities copies of the attached notice marked "Appendix." 18 Copies of said notice on forms pro- vided by the Regional Director for Region 16, after being duly signed by Respondent 's representatives , shall be post- ed by Respondent immediately upon receipt thereof, and be maintained by it for 60 consecutive days thereafter , in con- spicuous places , including all places where notices to em- ployees are customarily posted , including Respondent's corporate offices . Reasonable steps shall be taken by Re- spondent to insure that said notices are not altered , defaced, or covered by any other material. (e) Notify the Regional Director for Region 16, in writ- ing, within 20 days from the receipt of this Decision, what steps have been taken to comply herewith. IT IS FURTHER RECOMMENDED that , unless Respondent noti- fies said Regional Director within 20 days from the date of the receipt of this Decision , in writing, that it will comply with the foregoing Order, the National Labor Relations Board issue an order requiring the Respondent to take the action aforesaid. 17 In the event no exceptions are filed as provided by Sec. 102.467 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 18 In the event that the Board's Order is enforced by a Judgment of a United States Court of Appeals , the words in the notice reading "Posted by Order of the National Labor Relations Board" shall read "Posted Pursuant to a Judgment of the United States Court of Appeals Enforcing an Order of the National Labor Relations Board APPENDIX NOTICE TO EMPLOYEES POSTED BY ORDER OF THE NATIONAL LABOR RELATIONS BOARD An Agency of the United States Government WE WILL NOT in any manner discharge or discriminate in regard to the hire and tenure of employment or of any term or condition of employment of any of our I 48 DECISIONS OF NATIONAL LABOR RELATIONS BOARD employees because of their concerted and/or union activities. WE WILL offer to Stafford Winn and Wilmer Glover immediate and full reinstatement to his former job or, if that job no longer exists , to substantially equivalent positions , without prejudice to his seniority or other rights and privileges and WE WILL pay each of them for any loss of pay at the union scale he may have suffered by reason of our discrimination against him , together with interest thereon at 6 percent per annum. WE WILL NOT in any manner interfere with , restrain, or coerce our employees in the exercise of their rights to self-organization to form , join , or assist a union of their choice , to bargain collectively through a collec- tive-bargaining agent chosen by our employees, to en- gage in concerted activities for the purpose of collective bargaining or other mutual aid or protection, or to refrain from any such activities. Dated By J. J. COOK CONSTRUCTION COMPANY, INC EMPIRE BUILDING CORPORATION (Employer) (Representative) (Title) This is an official notice and must not be defaced by anyone. This notice must remain posted for 60 consecutive days from the date of posting and must not be altered, defaced, or covered by any other material. Any questions concerning this notice or compliance with its provisions may be direct- ed to the Board's Office, 819 Taylor Street, Federal Office Building, Room 8-A-24, Fort Worth, Texas 76102, Tele- phone 817-334-2921. Copy with citationCopy as parenthetical citation