Kimmel's Shop RiteDownload PDFNational Labor Relations Board - Board DecisionsSep 24, 1974213 N.L.R.B. 440 (N.L.R.B. 1974) Copy Citation 440 DECISIONS OF NATIONAL LABOR RELATIONS BOARD Lorraine Urbauer d /b/a Kimmel's Shop Rite and Re- Order of the Administrative Law Judge and hereby tail Clerks Union Local No. 1105 , Retail Clerks In- orders that Respondent, Lorraine Urbauer d/b/a ternational Association , AFL-CIO. Case Kimmel's Shop Rite, Vashon, Washington, her 19-CA-6383 September 24, 1974 DECISION AND ORDER BY MEMBERS JENKINS , KENNEDY , AND PENELLO On April 15, 1974, Administrative Law Judge Rich- ard D. Taplitz issued the attached Decision in this proceeding. Thereafter, the Charging Party filed ex- ceptions to the Administrative Law Judge's Decision, and Respondent filed an answering brief. Pursuant 'to the provisions of Section 3(b) of the National Labor Relations Act, as amended, the Na- tional Labor Relations Board has delegated its au- thority in this proceeding to a three-member panel. The Board has considered the record and the at- tached Decision in light of the exceptions and brief and has decided to affirm the rulings, findings,' and conclusions 2 of the Administrative Law Judge and to adopt his recommended Order.3 ORDER 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 ' The Charging Party 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 credibili- ty 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, 1951). We have carefully examined the record and find no basis for reversing his findings. 2 Viewing this case in the light of Steel-Fab, Inc., 212 NLRB No. 25 (1974), which issued subsequent to the Administrative Law Judge 's Decision herein, we agree with the Administrative Law Judge 's conclusion that the complaint should be dismissed msofar as it alleges an 8(a)(5) violation or unilateral action in violation of Sec 8(a)(1). As for the appropriateness of a bargaining order based on the three instances of unlawful interrogation , we agree with the Administrative Law Judge that it is not warranted . In the light of this conclusion , we need not make a finding as to whether the Union enjoyed majority status. Member Jenkins does not subscribe to Steel-Fab, for the reasons expressed in his dissent there . He does not consider the three unlawful interrogations sufficient misconduct to prevent the holding of a fair election , and therefore finds it unnecessary to consider whether the Administrative Law Judge's conclusions regarding the Union 's majority were correct. 3 Subsequent to the issuance of the Administrative Law Judge's Decision, Respondent moved to reopen the record for the purpose of showing that the "Notice to Employees" recommended by the Administrative Law Judge was posted by Respondent from May 3, 1974, to July 3, 1974. On the basis of this alleged posting , Respondent argues that "no further order or remedy should be entered in this case ." We find a reopening of the record to be unwarranted and hereby deny Respondent's motion To the extent that the motion raises questions relating to the posting of the notice ordered herein, that is a matter which may be raised at the compliance stage of this proceeding. agents, successors, and assigns, shall take the action set forth in the said recommended Order. DECISION STATEMENT OF THE CASE RICHARD D. TAPLITZ, Administrative Law Judge: This case was tried at Vashon, Washington, on January 16 and 17, 1974, and after the submission of certain stipulations, the hearing was closed on February 4, 1974. The charge was filed on April 27, 1973, by Retail Clerks Union Local No. 1105, Retail Clerks International Association, AFL-CIO, herein called the Union. The complaint issued on Novem- ber 26, 1973, and, as amended at the hearing, alleges that Lorraine Urbauer d/b/a Kimmel's Shop Rite , herein called the Company, violated Section 8(a)(1) and (5) of the Na- tional Labor Relations Act, as amended. Issues The primary issues are: (1) Whether the Company, through its agents , violated Section 8(a)(1) of the Act by promising employees benefits if they refrained from union activities, threatening employ- ees if they engaged in union activities, granting wage in- creases , changing hours and schedules, and interrogating employees. (2) Whether the Union represented a majority of the Company's employees, whether the Company precluded the possibility of a fair election by engaging ir_ unlawful con- duct, whether the Company violated Section 8(a)(5) by re- fusing to bargain with the Union, and whether the Company should be ordered to bargain with the Union based on union authorization cards signed by employees. All parties were given full opportunity to participate, to introduce relevant evidence, to examine and cross- examine witnesses, to argue orally, and to file briefs. Briefs, which have been carefully considered, were filed on behalf of the General Counsel and the Company. Upon the entire record' in the case, and from my obser- vation of the witnesses and their demeanor, I make the following: FINDINGS OF FACT 1. THE BUSINESS OF THE COMPANY The Company, a Washington corporation, operates a re- tail food store in Vashon, Washington. During the year immediately preceding issuance of the complaint the Company's gross volume of sales exceeded $500,000 and it purchased goods valued at in excess of $50,000 from firms which in turn purchased those goods from outside of Wash- 1 The unopposed motion of the Company to correct the transcript of the record is hereby granted 213 NLRB No. 69 KIMMEL'S SHOP RITE 441 ington. The complaint alleges, the answer admits, and I find that the Company is an employer engaged in commerce within the meaning of Section 2(6) and (7) of the Act. 11 THE LABOR ORGANIZATION INVOLVED The Union is a labor organization within the meaning of Section 2(5) of the Act. III THE ALLEGED UNFAIR LABOR PRACTICES A. The Allegations that the Company Violated Section 8(a)(1) of the Act 1. Background The Union began its organizational drive among the Company's employees on March 13, 1973.2 On that date, Mervyn Henderson, the Union's president and chief execu- tive officer, and Allen W. Berglund, the Union's secretary- treasurer came to the Company's store on Vashon Island, and asked the store manager, James Kimmel,3 whether they could talk to the employees. James Kimmel gave them per- mission and then left for lunch. The union representatives spoke to a number of employees and left authorization cards. Thereafter a number of cards were signed.4 At about 9:30 a.m. on March 20, Union Secretary-Trea- surer Berglund called James Kimmel on the telephone and told him that he was coming to the store later that morning. About noon, Berglund, together with Union President Hen- derson and a representative of the Washington State Media- tion Service, appeared at the store. Henderson handed James Kimmel a letter which stated that the Union repre- sented a majority of the employees at the store, excluding the manager, guards, and supervisors, and demanded recog- nition.5 The Company did not recognize the Union as the repre- sentative of its employees and on March 28 the Union filed a representation petition in Case 19-RC-6605 for a bargain- ing unit consisting of all employees employed by the Com- pany, with the standard statutory exclusions .6 Z All dates are in 1973 unless otherwise specified James Kimmel is the son of Lorraine Urbauer Kimmel , the owner of the store . The Company admits and I find that until April 27, 1973, James Kimmel was a supervisor and that at all times material herein Lorraine Urbauer Kimmel was a supervisor within the meaning of the Act. ° The circumstances surrounding these signings and the validity of the cards are discussed in detail below S These findings are based on the testimony of Henderson and Berglund James Kimmel acknowledged that he spoke to the union representatives on March 20 but he averred that he did not believe he spoke to them on the phone before they came ,` and he further averred that he did not see the letter demanding recognition until the date of the trial There were 10 employees in the bargaining unit on March 20. Before that date , eight of them had signed authorization cards on behalf of the Union The assertion of Hender- son and Berglund that they had come on that date to demand recognition is credible My observation of James Kimmel as he testified and his testimo- ny as a whole leads me to the conclusion that he either did not have a clear recollection of the matters he testified to or that he was less than candid I credit Henderson and Berglund 6 The complaint alleges, the answer admits, and I find that the following unit is appropriate for the purposes of collective bargaining within the mean- ing of Section 9(b) of the Act. On about April 24, Berglund and Claude Liday, another union representative , came to the store and spoke to Lor- raine Urbauer Kimmel , the owner of the store . Berglund told her that the Union had the right to represent the em- ployees through some State of Washington proceedings.7 Kimmel 9 told Berglund that she wanted her employees to have an election. On April 26, the Union' s petition for an election was withdrawn and on May 4, the Company filed a petition for an election in Case No. 19-RM-1066. 2. The April 15 meeting a. The statements of Kimmel (1) Facts Kimmel held a meeting for all of her employees at her home at about 8 p.m. on April 15. She acknowledged in her testimony that she called the meeting to discuss the union problem. She opened the meeting by telling the employees that when she acquired the store it was $200,000 in debt and that over the years she had reduced the debt to $18,000. She said that during all those years she did not have the money to go union. Kimmel then turned the meeting over to Ray- mond Elkins, who was to become the store manager the following day, saying that Elkins knew more about the Union than she did because he had a store in Tacoma that was union .9 (2) Conclusions Paragraph 10 of the complaint alleges that at this meeting Kimmel violated Section 8(a)(1) of the Act by saying that the Company had never gone union all those years; by promising certain employees that the Company would give them raises close to the union scale; and by telling certain All employees of the Company at its Vashon, Washington food store, excluding office clerical employees, guards, and supervisors as defined in the Act. 7 Apparently some state procedures had been followed and there had been a card check . However, counsel for the General Counsel stated on the record that he does not claim that there was an agreed-upon method for determining majority through a card check and he does not contend that the duty to bargain arose through anything related to a state proceeding. 9 Lorraine Urbauer Kimmel will be referred to as Kimmel. Her son will be referred to as James Kimmel. 9 The above findings are based on the credited testimony of Kimmel. Five other witnesses also testified concerning what Kimmel said at that meeting. Four employees (Hayfield, Fender, Hendricks , and Staton) testified on be- half of the General Counsel. Elkins also testified concerning that subject The testimony of all of those witnesses , except Hayfield, tended in large measure to corroborate Kimmel's testimony Staton 's testimony did not fully corrobo- rate Kimmel in that Staton averred that Kimmel said that she could not afford the Union at this time , while Kimmel averred that she had referred to the past Hendricks corroborated Kimmel by testifying that Kimmel said that she hadn 't had a union before because she couldn 't afford one. I believe that Staton was mistaken in this regard. Hayfield testified that Kimmel told the employees that she usually gave pay raises in June, and she would try to come as close to union scale as she possibly could. Hayfield also testified that in response to a question, Kimmel told the employees that she had not considered selling the store before the Union had become involved. I, am unable to credit Hayfield with regard to either of these assertions Her version of what was said by Kimmel at the meeting was at odds with the testimony of all five witnesses who also testified concerning that meeting, and I do not believe that her recollection of the events was accurate 9 442 DECISIONS OF NATIONAL LABOR RELATIONS BOARD employees that layoffs would occur if the Union came in. As to the first of these allegations, I have found that Kimmel did tell employees that in the past she could not afford to go union . However, I do not believe that that statement of Kimmel went beyond her right to express her views . Section 8(c) of the Act provides that the expressing of any views, arguments, or opinions shall not constitute or be evidence of an unfair labor practice, if those expressions contain no threat of reprisal or force or promise of benefit. I do not believe that Kimmel's statement could fairly be construed to be a threat. I therefore find that it did not violate Section 8(a)(l) of the Act. As to the other allegations contained in paragraph 10 of the complaint, the credited evidence fails to establish them. I shall, therefore, recommend that the allegations contained in paragraph 10 of the complaint be dismissed. b. The statements of Elkins (1) Facts Raymond Elkins became comanager of the store , togeth- er with James Kimmel, on April 16. He became sole manag- er when James Kimmel left a few weeks later . Before April 16, Elkins worked in the store premises as the owner of the meat market which he subleased from Kimmel . At the time Kimmel turned over the meeting of April 15 to Elkins, Elkins was not yet a store manager . 10 However , Kimmel conceded in her testimony that a decision to make Elkins manager was made the first week in March and that the employees might have found out about it. In any event, Kimmel remained at the meeting throughout Elkins' presen- tation and did not dispute anything that he said . Whether or not Elkins had some sort of anticipatory supervisory powers on April 15, I find that he was at that time an agent whose actions were binding on the Company. By introduc- ing Elkins and turning the meeting over to him , Kimmel gave him the apparent authority to speak for her, and by remaining mute when he did speak , she ratified his state- ments. I t Elkins testified in detail as to what he said at the April 15 meeting. Four employees called on the behalf of the Gener- al Counsel also testified as to what he said . The recollection of the four employees was less than exact. Each corroborat- ed parts of Elkins' testimony and parts of the testimony of the other employees , but there was little consistent pattern. On the other hand , Elkins impressed me as a candid witness with a very good memory. The following findings are based primarily on that testimony , which I believe was fully credi- ble. Elkins started his presentation by telling the employees that he wanted to relate some of his experiences with the 10 The Company concedes in its answer that Elkins became the store manager on April 16 and that from that time on he was a supervisor within the meaning of the Act. 11 Cf. Mike O'Connor Chevrolet -Buick-GMC Co., Inc., 209 NLRB 701 (1974), where the Board held that an employee was the agent of a company when he made certain remarks in the presence of an admitted supervisor who did nothing to disavow them and thereby ratified them . The fact that Elkins had already been selected to become a supervisor effective the following day reinforces this conclusion. Union, and that it made no difference to him whether the store was union or not. He said that the meat market he owned at the store was union, as were the other meat market operations he ran, and he was able to live with the Union. He told the employees that he had had some trouble with the Retail Clerks Union in his Tacoma store. He then went on to describe the situation there as follows: The Tacoma store was union, but was run like a very small family store. The cleanup boy boxed groceries, and the box boys checked in addition to their box boy work. One girl, at her request, worked Sundays at straight time. That was the condition when he bought the store, and he assumed things would continue as they were and that the duties of the employees could be varied. Three months after he bought the store, the Union complained that the girl working on Sundays had to be paid Sunday pay. He told the Union that she had always done it, and they replied that she couldn't anymore. The Union also told him to stop having the cleanup boy do stocking work, and to stop having the stockers do check- ing work. He was forced to cut help down because he couldn't afford to move employees up into categories or pay scales that the Union required. For example, he couldn't move the box boys up into a junior apprentice classification. He continued trying to run the store as a small family one. He hired some of his relatives to work in the store and let go two of the full-time employees. The Union complained and brought proceedings against him for the discharge of those employees, and for the discharge of another employee that he had fired for insubordination. He immediately re- hired that third man and he finally settled with the Union on the two others. He paid backpay and put them on a preferential hiring list . His relatives joined the Union. He finally put the store up for sale because economically it was not working out. In order for a store like that to work out, the owner had to be there, and he spent most of his time at Kimmels. The store was sold to a man named Dale Man- ning. The closing was in March. Manning asked if he had any problems, and he told him what had happened. The new owner then said that the store was going to be non- union , and he replied, "Well, more power to you." After Manning had taken over, Manning fired every employee, including Elkins' relatives, and brought his own people in. The store is now nonunion. His relatives went to the Union to try to get new jobs, but they didn't receive any help. Elkins then told the employees that he had three meat operations, all of which were union, and he had no problems with them. He said that the Union wouldn't be the burden at Kimmels that it was for his store in Tacoma, because Kimmels had the volume to handle it. At that point, Elkins asked for questions and a number of employees responded. One of the employees asked if they would get retirement retroactive to the date of their employment. He answered that he didn't know about the retail clerks, but he assumed the Meat Cutters' arrangements were similar and with that union there was a vesting period of 10 years. He told them about how credits were accumulated and said that he didn't believe that most of the employees at Kimmels would bene- fit from the retirement program. One of the box boys asked how the status of the box boys would be affected if the store went union. He answered that he did not know for sure, but that they could look to one KIMMEL'S SHOP RITE of the competing stores, Thriftway, which did about the same amount of business and had considerably more em- ployees. He told them that his knowledge was based on the Meat Cutters Union and it could be explained in terms of an employee not being eligible for health benefits unless that employee worked 80 hours a month. He said, "I assume this is why they have more people over there than we do because they're keeping them under 80 hours a month." He also answered the box boy's question by telling him that in Tacoma the Union told him that the box boy could only box groceries and could not stock shelves or do anything else. Another employee asked whether the employees would be working more or less hours if the Union came in, and Elkins told them that he could only compare it to Thriftway, which had more employees than Kimmels. He said he assumed that if the Union came in, they would be working under the same contract. When he was asked by an employee how many full-time employees there would be, he replied that he thought there would be between three and four and that they would have more employees rather than less. Elkins also told the employees that if he were doing the hiring and it were a union store with higher wages, he would look more favorably upon hiring family men that he could use for more skilled work and count on for 8 hours a day when they were needed.l" One employee asked a question concerning insurance. Elkins turned to Kimmel and asked her if she had insur- ance. Kimmel replied that they always had it.13 Employee Roberta Hayfield asked whether a new owner would do the same thing that had happened in Tacoma if the store were sold. Elkins replied, "I don't know whether he could or not. The only thing I know is that Dale Manning did it." Another employee asked, "If you, Ray Elkins, buy the store, will you do that?" Elkins replied that he was neither for or against the Union, and that he did not believe that he would do that.14 ii The four employee witnesses who testified about this meeting placed different emphasis on what was allegedly said Hayfield testified that Elkins told him they would all work less hours if they went union . Fender averred that Elkins told one employee that she would work less hours if the Union came in; that three people would work 40 hours and the rest under 80 hours a month so that they wouldn't have to put money in the Union , and that wages would be higher, but the employees would.be working less Hendricks testified that Elkins told them that if the Union came in, men would be hired instead of kids, there would be higher pay but less hours; and that only four people would get 80 hours to entitle them to benefits . Staton testified that Elkins said that the employees had to work 40 hours for benefits and the Company would cut down their hours so that they wouldn't get medical. Hayfield testified that Elkins told-them that if they went union , box boys would box and do nothing else. I credit Elkins' testimony, as set forth above, where it conflicts with that of the employees 13 Fender testified that Elkins said that the Union had insurance but the Company also did, and that the employees could be covered if they wanted to pay 50 cents a month . None of the other employees who testified concern- ing what was said at this meeting corroborated Fender with regard to this testimony I credit Elkins ' testimony upon which the above findings are based 14 Fender testified that Elkins said that if he took over the store and the employees went union, things wouldn ' t be as good as they thought they would be, that Elkins also said that he could get around the Union by laying everyone off and bringing in friends until he was nonunion ; and that he had done that in Tacoma Hendricks testified that Elkins said he had let people go in Tacoma and brought in nonunion help because he didn 't want to pay benefits , and that he sold the store because the Union cost him so much As indicated above , I believe that Elkins' recollection of what he said was more 443 Another employee asked a question concerning pay scales . Elkins said that he was sure Kimmel was going to review the pay as she had done every year before summer. He also said that if he were to become the owner of the store, he would probably review the pay scales also.15 (2) Conclusions Paragraph 11 of the complaint alleges that the Company, through Elkins, violated Section 8(a)(1) of the Act at the April 15 meeting by stating that if the store were organized by the Union, working hours would be reduced and there would be fewer full-time employees; stating that if the store were organized by the Union, box boys would not be able to continue doing grocery checking; and stating that if the store were not organized by the Union, Respondent would institute an insurance program for store employees. With regard to the third allegation which relates'to the institution of an insurance plan, the credited evidence fails to support it. With regard to the first two allegations, the credited evidences does indicate that Elkins spoke about reducing hours and having more part-time employees. In addition, there is credited evidence that Elkins indicated that the box boys might not be allowed to dojobs other than boxing. However, in the context in which Elkins made these statements , which is set forth in detail above, I do not be- lieve that he was unlawfully threatening employees with a loss of benefits or employment if they joined the Union. Under Section 8(c) of the Act, an employer is free to convey his opinions concerning unionization. Though this freedom does not extend to threats of economic reprisal to be taken solely on his own volition, an employer may state what he reasonably believes will be the likely economic consequences of unionization that are outside his control. As the United States Supreme Court held in N.L.R.B. v. Gissel Packing Co., 395 U.S. 575 (1969): [An employer's prediction about the consequences of unionization] must be carefully phrased on the basis of objective fact to convey an employer's belief as to de- monstrably probable consequences beyond his control ... in the case of unionization.... If there is_ any implication that an employer may . . . take action sole- ly on his own initiative for reasons unrelated to eco- nomic necessities ' and known only to him, the statement is no longer a reasonable prediction based on available facts but a threat of retaliation based on mis- representation and coercion. Elkins' experience with the Union in Tacoma appears, to indicate that the Union did limit the work that could be done by box boys. The result of such a limitation might well be to reduce the number of hours that the box boys worked. Elkins' observation of a comparable store in Vashon indi- cated that the Union did seek additional benefits for full- time as opposed to part-time employees with a result that there were a few full-time employees and many part-timers accurate than the vaned accounts of these employees, and I credit Elkins is Staton testified that Elkins not only said that Kimmel would reevaluate wages, but also said that if it were up to him he would satisfy everyone. I credit the testimony of Elkins as set forth above 444 DECISIONS OF NATIONAL LABOR RELATIONS BOARD who did not work enough hours to qualify for full-time benefits. This was not only Elkins' observation. The con- tract the Union had with the other employers, copies of which were distributed by the Union to the Company's employees during organization, specifically provides in a footnote to the appendix that "Courtesy Clerks shall not work as checkers. Not more than 16 percent (16%) of the total manhours worked by employees in the bargaining unit shall be employed in this classification." That clause also prevents courtesy clerks from performing stocking work. The contract provides that holiday pay, vacations, sick leave, and funeral leave are only to be paid for employees who work over a certain number of hours. A warning that part-time employees might lose their jobs if the union prevails may be an unlawful threat if the employer's prediction about the consequences of unioniza- tion are not based on objective facts beyond the employer's control. Helfrich Vending, Inc., 209 NLRB 596 (1974). How- ever, in the instant case, I believe that the statements of Elkins, which are alleged in paragraph 11 of the complaint to be violative of the Act, were reasonable predictions based on objective economic fact. The logic behind the Board decision in Appleton Discount, Inc. d/b/a Treasure Island Food Store, 205 NLRB 394 (1974), applies in the instant case. In Appleton, the Board refused to find a violation of Section 8(axl) where "the evidence indicates that the com- pany representatives did no more than present to employees their understanding that a labor organization would prefer full-time employment for a smaller number of employees over a large part-time complement." In a similar vein, the Board refused to find a violation in Missouri Heel Company, a Division of Ripley Industries, Inc., 209 NLRB 481 (1974), where an employer told employees that if he had to pay a mold changer the wages of a machinist, he would rather hire a machinist since the machinist could also do tooling work. In that case, the Board held that the Company's statement was a reasonable prediction based on objective economic fact and was, therefore, lawful. As General Counsel has not proven the allegations of paragraph 11 of the complaint by a preponderance of the credible evidence, I shall recommend that the allegations in that paragraph be dismissed. Though not alleged in the complaint, a serious argument can be made out that Elkins was impliedly threatening to discharge employees because of their union activities when he referred to the discharge of the employees in his Tacoma store after he had sold it, and when he somewhat equivocat- ed in answering the question whether he would take that kind of action if he purchased Kimmel's store. In answer to that question, he said that he "didn't believe" that he would take such action. However, it is noted that Elkins opened his presentation by a statement that his own operations were union, and that it made no difference to him whether the store was union or not. During the course of the meeting, he said that he could live with the Union and that the Union would not be the same type of burden it had been to him at the smaller Tacoma store. In the context of his entire presentation, I do not believe that a finding would be war- ranted that he even impliedly threatened to discharge em- ployees if he were to buy the store and the store were to go union. 3. The changes in wages , schedules, and hours-facts and conclusions On April 23, Elkins called a meeting of all the employees at the store. He told them that the purpose of the meeting was to let them know officially that he was now the manag- er. He said that he would be in charge of hiring, firing, wage increases, and scheduling. He added that if any employees wanted changes in schedules to let him know and he would do everything he could to make the desired change. Elkins then talked to them about being friendly to customers, per- sonal appearances, tardiness, and similar matters. During this meeting, Elkins told the employees that he had given everyone a raise and that it was effective immediately. He said that in some cases the raise was a token one because he felt that if he wasn't able to give an individual a raise that individual should be terminated.16 Elkins also said that the employees should not talk about their raises with each other as everyone did not get the same raise and that after he could evaluate their work there might be other raises. He told the employees that he wrote schedules according to the employees' performance and that the employees who were more valuable on the job would get more hours than those who are less valuable.17 Effective April 23, except for two recent hires, all the employees were granted wage increases that ranged from 15 cents to $1 an hour. About that time there were some shifts in schedules and changes in hours. The complaint alleges that the notification as well as the granting of wage increas- es and the other changes were independent violations of Section 8(a)(1) of the Act. The Respondent contends that all its actions in this regard were unrelated to any union activi- ty. Many people come to Vashon Island for the summer. June, July, and August are the store's busy months. Almost twice as much business is done in each of the summer months as in each of the winter months. Because of this, the Company has had the practice for many years of grant- ing wage increases each spring. In the early part of January 1973, Kimmel asked Elkins whether he would consider managing the store. There were many discussions about that topic. In February, Elkins said that if he did take the job he didn't want to be a figurehead store manager and he would control hiring, firing, wages and scheduling. Later in February, she agreed to that. In very late February or early March, Elkins told Kimmel that when he became manager he would like to give the raises that were normally given before the summer starts. She agreed. All this, as well as the decision to make Elkins manager, occurred before any union activity. When Elkins did become manager he had the discretion to determine 16 These findings are based upon the credited testimony of Elkins . Hayfield and Staton testified that Elkins told the employees that if they weren 't happy with the raise they might as well leave because they wouldn 't be there by the time the next pay raise was given out. This was not corroborated by Fender, who also testified as to what took place at this meeting . I believe that Elkins' recollection was more accurate than either Hayfield or Staton. 17 Staton testified that Elkins told them something about a 10-minute break because that was all the Union allowed . Elkins denied making such a statement . None of the other employees testified that he made it. I credit Elkins. KIMMEL 'S SHOP RITE what the wage rates should be. On April 23, which was a week after he assumed the comanager role, he informed the employees that the wage increases were being granted. Though some of the wage increases were larger than had been granted in previous years,18 they are not so divergent from prior practice as to indicate that the Company's moti- vation in giving the increases was different than it had been in prior years. The differences can be readily explained by the fact that a new store manager was making the decisions with regard to the increases. In these circumstances, I do not believe that the General Counsel has proven by a prepon- derance of the credible evidence that the wage increases were granted to dissuade the employees from union mem- bership or that they constituted independent violations of Section 8(a)(1) of the Act. With regard to changes in schedules and hours,19 there is no credible evidence that the employer was motivated by a desire to discourage employees from union membership. To the extent that there were changes, they are all explainable in terms of a new manager making decisions he felt were necessary for the efficient running of the business. There is no allegation nor is there any evidence that the Company gave less desirable hours of schedules to employees it be- lieved to be active on behalf of the union. There is no indication that the Company could have gained anything in terms of dissuading employees from union activity by its actions with regard to schedules and hours. Nor was there anything so radical in tthe changes as to suggest that there was an ulterior motive. I shall therefore recommend that those parts of the complaint that allege that the notifica- tion of and granting of wage increases and the changes in scheduling and hours constituted independent violations of Section 8(a)(1) of the Act be dismissed. 4. The interrogation a. James Kimmel On March 15, James Kimmel spoke to employee Lodahl in the store. James Kimmel said that the way most union 19 The wage rates for 1970, 1971, 1972, and 1973 are set forth in the record as Resp Exh. 3. 19 The hours worked by the employees are set forth in Resp Exh . 4. After the meeting of April 23, Elkins spoke to some of the checkers concerning what days they wanted off and how they would like their schedules arranged. On April 23 or 24 , he spoke to Hayfield about her hours . Hayfield said that she was having problems with her neck and she would prefer to work less hours than she had in the past He told her he would see what he could do. (This finding is based on the credited testimony of Elkins Hayfield acknowl- edged talking about her neck problem with other people but denied mention- ing it to Elkins I do not credit Hayfield .) On April 23 or 24, Elkins also spoke to Staton and asked her if she had any particular days off that she needed and whether she was happy with her hours She said she needed Tuesdays off for a dentist appointment and that she didn 't care to work as many hours as she had . About a week later another employee told Elkins that Staton didn't appear to be happy with her hours He spoke to Staton and asked her whether he had given her what she wanted . She replied that she had not told him she wanted less hours and she would like to have about the same hours she had before. He replied that he was sorry he misunderstood and he would correct it in the following week 's schedule . He did correct it. (This finding is based on the credited testimony of Elkins Staton acknowledged that after her hours were reduced , Elkins asked her how many hours she wanted and he agreed to give those hours to her and that she also asked for Mondays and Tuesdays off and he agreed ) 445 stores worked there would probably be only a few employ- ees who worked full hours and that since unions worked primarily on a seniority basis, box boys who hadn't been there long would have their hours cut back or wouldn't be working at all.20 A few days later, Lodahl spoke to Kimmel again and Kimmel asked whether Lodahl had signed an authorization card. Lodahl asked Kimmel why he was ask- ing and Kimmel replied that he knew Lodahl had already signed because he had verified the signatures. Lodahl an- swered that he had signed. Kimmel then said that he wasn't pressuring Lodahl because he (Kimmel) wasn't going to be working there at the end of the summer.21 On or about April 1, James Kimmel spoke to employee Hayfield in the store. James Kimmel asked her if she had signed an authorization and she replied that she had.22 Later in April, James Kimmel told employee Mosley that he (Kimmel) bet that Mosley was one of the guys who signed the card for the Union. Mosley did not reply.23 b., Elkins Employee Fender testified that on April 26 Elkins asked him, "What are you going to do about the Union?" and that he (Fender) answered that he didn't know. Elkins testified that he didn't remember saying anything about the Union. As indicated above, I believe that Elkins was a creditable and very observant witness. On the other hand, I believe that Fender substantially misstated , events that occurred at the April 25 meeting and that his recollection was not al- ways accurate. I do not credit Fender's assertion that he was interrogated by Elkins. c. Kimmel Employee Staton testified that on May 1, Kimmel asked her when the Union had contacted her and she replied that they hadn't. Staton further averred that Kimmel asked her when the Union had been in the store and she told Kimmel that they hadn't. Kimmel testified that she knew the union men were at the store on March 13 and 20 and that she did not ask Staton any such questions. I believe that Kimmel was a candid, careful witness while, as indicated by the findings above, Staton was not always accurate. I do not credit Staton's testimony that she was interrogated by Kim- mel. d. Conclusions with regard to the interrogation In Big Three Industries, Inc., 192 NLRB 370 (1971), the Board adopted the Administrative Law Judge's decision which held: In determining whether interrogation concerning 20 There is no allegation in the complaint that these remarks were in violation of the Act The complaint does not allege any unlawful activity by James Kimmel other than interrogation 21 These findings are based on the credited testimony of Lodahl. James Kimmel testified that he did not recall making those remarks. I do not believe that James Kimmel'si recollection was always accurate. 22 This finding is based on the credited testimony of Hayfield. 23 This finding is based on the testimony of Mosley. James Kimmel testi- fied that he didn 't believe that he said it. I credit Mosley. 446 DECISIONS OF NATIONAL LABOR RELATIONS BOARD union activities violates Section 8(a)(1) of the Act, the Board has held that all the circumstances in which the interrogation occurs must be considered. Blue Flash Express, Inc., 109 NLRB 591. In that case, the Board dismissed a complaint where such interrogation was accompanied by a statement from the company as to a legitimate reason for the interrogation, where the company representative assured the employee against reprisals, and where the company had not demonstrat- ed union hostility. See also N.L.R.B. v. Camco, Inc., 340 F.2d 803 (C.A. 5, 1965), where such matters as the place of the interrogation and the rank of the official doing the questioning were also considered. Though in Struksness Construction Co., Inc., 165 NLRB 1062, the Board was concerned with a polling of employees rather than individual interrogation, some of the lan- guage in that case is instructive. The Board held: "In our view any attempt by an employer to ascertain em- ployee views and sympathies regarding unionism gen- erally tends to cause fear of reprisal in the mind of the employee if he replies in favor of unionism and, there- fore, tends to impinge on the Section 7 rights. As we have pointed out, 'An employer cannot discriminate against union adherents without first determining who they are.' Cannon Electric Company, 151 NLRB 1465, 1468. That such employee fear is not without founda- tion is demonstrated by the immunerable cases in which the prelude to discrimination was the employer's inquiries as to the union sympathies of his employees." The Board went on to hold that in a poll- ing situation a violation would be found unless the purpose of the poll was to determine the truth of a union's claim of majority; this purpose was communi- cated to the employees; assurances against reprisal were given; the employees were polled by secret bal- lot; and the employer had not engaged in unfair labor practices or otherwise created a coercive atmosphere. In Struksness the Board revised the Blue Flash criteria to conform to this new standard. In the instant case, James Kimmel on three separate occa- sions singled out employees in the store and interrogated them concerning union activities. At the time of the interro- gations, James Kimmel was either store manager or coman- ager. In addition, the fact that he was the owner's son lent additional weight to his authority. The interrogations can- not be considered isolated in that they were directed against 3 employees out of a total bargaining unit of 10. Though the interrogations all took place in a casual manner, they were not made in jest. James Kimmel did tell Lodahl that he wasn't pressuring Lodahl, because he (Kimmel ) wasn't going to be working there at the end of the summer. In addition, the other employees knew or were soon to find out that Kimmel's tenure as a supervisor was to be short-lived. These factors do take some of the sting out of the interroga- tion, but, on balance, I find that James Kimmel's interroga- tions of Lodahl, Mosely, and Hayfield concerning union activities were coercive and violative of Section 8(a)(1) of the Act? x Sometime in May, Kimmel posted a notice in the store stating that she recognized the right of the employees to engage or not engage in union B. The Refusal-to-Bargain Allegations 1. The effect of the Company's unfair labor practices on the possibility of a fair election An employer need not recognize a union solely because that union asserts that it represents a majority of the employer's employees. An employer may insist on a Board election , unless it has agreed to an alternate means for re- solving the question concerning representation or has en- gaged in misconduct which is of such a character as to have a "lingering and distorting effect on any future election." Mike Velys, Sr., et al. d/b/a R & M Electric Supply Co., 200 NLRB 603 (1972). There is no contention that an agreed upon method was present in the instant case . As to employ- er unfair labor practices that warrant a refusal to bargain finding or a bargaining order, the criteria to be applied is set forth by the United States Supreme Court in N.L.R.B. v. Gissel Packing Co., 395 U.S. 575. In that case, the high court held that a bargaining order would be appropriate in two situations. The first is in the case of "outrageous" and "pervasive" unfair labor practices where the employer's ac- tions are so coercive that, even in the absence of a Section 8(a)(5) violation, a bargaining order is necessary to repair the unlawful effect of those actions. The unfair labor prac- tices found above do not fall within that category. The second is " ... in less extraordinary cases marked by less pervasive practices which nonetheless still have the tenden- cy to undermine majority strength and impede the election process." The court also held: " . . . An Employer can insist on a secret ballot election, unless, in the words of the Board, 'he engages in contemporaneous unfair labor practices like- ly to destroy the union's majority and seriously impede the election' ". In Ship Shape Maintenance Co., Inc., 189 NLRB 395 (1971), enforcement denied in part 474 F.2d 434 (C.A. D.C., 1972), the Board expressed the test to be applied in terms of whether the lingering effects of the unfair labor practices rendered uncertain the possibility that traditional remedies could ensure a fair election, and whether the union's majority card designations obtained before the un- fair labor practices provided a more reliable test of the employees' desires and better protected employee rights than would an election. As stated in Joseph J. Lachniet d/b/a Honda of Haslett, 201 NLRB 855 (1973), where a coercive atmosphere is,created by the employer which con- ventiorial Board remedies may not adequately dissipate so that a fair election can be held with reasonable certainty, a bargaining order is warranted. In the instant case, the only unfair labor practices found were three instances of interrogation of employees by Store Manager James Kimmel. In one of those instances, Kimmel told the employee that he, wasn't exerting pressure and that activity The notice ended. "I will not in any manner interfere with, restrain, or coerce you in the exercise of that right , nor will I try to penalize or discriminate against employees who desire to join or be represented by a labor organization " The record does not indicate how long the notice re- mained posted The Company argues in its brief that even if technical viola- tions did occur , no remedial order is needed because of that notice I believe the interrogation found above is more than a technical violation and that the usual Board remedy is warranted. KIMMEL'S SHOP RITE he (James Kimmel) was not going to be working there at the end of the summer. The impact of the interrogations was further limited by the fact that James Kimmel did leave the Company's employ. The Board has often refused to issue a bargaining order where an employer's unfair labor practices substantially exceeded those of the company's in the instant case. Thus in Motown Record Corporation, 197 NLRB 1255 (1972), an employer was found to have engaged in seven separate violations of Section 8(a)(1) of the Act, including coercive interrogation. The Board refused to issue a bar- gaining order, pointing out that: ... none of (the seven instances) were directed at em- ployees in general, none of them seriously jeopardized the employee's job security, no specific benefits were promised, and, taken in their context, none could have so affected the employee or employees involved to such an extent that they could not cast a free and uncoerced ballot after the application of the Board's remedies. See also Gold Circle Department Stores, a Division of Federat- ed Department Stores, Inc., 207 NLRB 1005 (1973); J. J. Newberry Company, 202 NLRB 420 (1973); Restaurant Asso- ciates Industries, Inc., et al., 194 NLRB 1066 (1972); Central Soya of Canton, Inc., 180 NLRB 546 (1970). In conclusion, I find that even if the Union did represent a majority of the Company's employees in the bargaining unit at the time it demanded recognition, the Board's con- ventional remedies are sufficient to neutralize the effect of James Kimmel's unlawful interrogation of employ_ees_so_ that a fair election could be held, and that, therefore, Both- a refusal to bargain finding and a bargaining order are unwarranted under the tests enunciated in the Gissel case. 2. The Union' s majority on March 20 An additional reason for reaching the conclusion set forth above is that the General Counsel has failed to establish by a preponderance of the credible evidence that the Union represented a majority of the Company's employees on March 20 , when it made its demand for recognition. The parties stipulated that there were 10 employees in the appro- priate unit on March 20 .25 From March 13 through 16, eight of these employees , all except , Comstock and Hayfield, signed union authorization cards . The cards read: I . . . hereby authorize Retail Clerks International As- sociation , AFL-CIO, or its chartered local Union to represent me for the purposes of collective bargaining, respecting rates of pay , wages , hours of employment, or other conditions of employment in accordance with applicable law. At the time of the Union's demand for recognition on March 20, those eight employees were the only ones who had signed authorization cards 26 25 The employees were Comstock, Fender, Grenville , Hayfield, Hendricks, Lodahl, Mosley, Staton, Russell , and Middling 26 Hayfield signed a card on March 21 The.cntical date for determing 447 The General Counsel in his brief states: "Counsel for the General Counsel concedes that employees Ken Hendricks and Rob Mosley repudiated their cards and thus should not be counted for purposes of majority." Lodahl credibly testified that when she was given the card by employee Fender, who was distributing them on behalf of the Union, Fender told her that the card "was just to have an election." 27 Hendricks credibly testified that when Fender gave him an authorization card, Fender told him that if he signed it, it didn't mean that he was for or against the Union and it just meant that it would give them a chance to vote. Mosley credibly testified that when Fender gave him a card, Fender told him that it didn't make any difference whether or not he (Mosley) was for or against the Union, but to sign up to get an election. Middling did not testify. Her card was authenticated through the testimony-of-Fender. Fender testified that he didn't recall whether he told Middling that it didn't matter whether or not she was for or against the Union and that she should sign it to get an election. He averred that he could have told her that. On further examination, he testi- fied that he didn't think he told her that. Russell testified that Fender told him that if 50 percent of the employees signed the card, there would be an election held by the Union. He also testified that he heard Fender tell Mosley and Hendricks that it didn't matter whether or not they were for or against the Union, but they should sign the card to get an election. Further in his testimony, he averred that he had heard that conversation with Lodahl and Mosley. Lodahl signed her card on March 13, and it is therefore probable that the conversation was on the 13th. Russell signed his card on the 15th. In order to establish through authorization cards that a union represents a majority of employees in a bargaining unit, the General Counsel must prove that the cards are a reliable index of the employees' wishes to be represented by the union. The reliability of the cards must be judged in the light of all the circumstances surrounding their signing. The starting point is the wording on the cards themselves. Where, as here;,the cards are unambiguous in indicating a desire for representation, they must be given substantial weight. However, where oral solicitation is inconsistent with the written wording, further inquiry is required. The Su- preme Court set forth the applicable criteria in the Gisse! case, supra, holding: ... we think it sufficient to point out that employees should be bound by the clear language of what they sign unless that language is deliberately and clearly majority status is the date upon which the Union seeks recognition, which in this case was March 20 Peerless of America, Inc., 198 NLRB 982 (1972), enforcement denied in part 484 F.2d 1108 (C A 7, 1973) The stipulation relating to the employees in the bargaining unit is keyed to the March 20 date, and the General Counsel has not urged a "continuing demand" theory. See Montgomery Ward & Co, Incorporated 197 NLRB 519 (1972). Hayfield's card cannot be counted in determining the Union 's majority status as of March 20. , 27 Fender testified that he told Lodahl and other employees to whom he gave cards that the cards authorized the Union as their bargaining agent, and if they signed the cards there would be an election I credit Lodahl and the other card signers whose testimony concerning the signing of the cards differed from Fender's 448 DECISIONS OF NATIONAL LABOR RELATIONS BOARD cancelled by a union adherent with words calculated to direct the signer to disregard and forget the language above the signature. The Court pointed out that there was nothing inconsistent in a solicitor asking an employee to sign an authorization card which states that it authorizes the Union to represent him and then telling him that the card will probably be used first to get an election. On the other hand, the Court held that a card should not be counted where the solicitor states that he will use the card only for an election. The Court also makes it clear that key or magic words are not to be control- ling, and that the totality of circumstances is to be consid- ered in determining whether an assurance was given that a card will be used for no purpose other than to help get an election. Fender, in soliciting cards from Hendricks and Lodahl, said in substance that if they signed the authorization cards it just meant that the employees would have a chance to vote. On the basis of that solicitation, I do not believe that Lodahl and Hendricks' cards can be considered reliable evidence to establish that at the time of the signing of the cards they wanted the Union to represent them. When Fender gave a card to Mosley, he told him that it didn't make any difference whether or not Mosley was for or against the Union, but to sign up to get an election. In effect, Fender was telling Mosley to ignore the language on the card that gave the Union the right to represent him. No reliance can be placed on such a card. The only evidence authenticating Middling's card was the testimony of Fender, and Fender's testimony, as is set forth above, was equivocal with regard to the circumstances un- der which she signed the card. I, therefore, find that General Counsel has not established that Middling's card should be counted toward the Union's majority. Russell was present when two employees were told that it didn't matter whether or not they were for or against the Union, but they should sign the card to get an election. Though the record is not completely clear, it is likely that Russell signed his card after he heard that conversation. I, therefore, do not believe that the General Counsel has es- tablished that Russell's card should be counted 28 In summary, there were 10 employees in the bargaining unit on the critical date of March 20. One did not sign an authorization card. One signed after the critical date and five signed in circumstances under which their cards should not be counted. Thus, on the critical date, the Union had only 3 valid authorization cards out of a unit of 10. In conclusion, I find that except for the matters dealing with the interrogation of employees by James Kimmel, the General Counsel has not shown by a preponderance of the credible evidence that the Company has violated the Act 29 IV. THE EFFECT OF THE UNFAIR LABOR PRACTICES UPON COMMERCE The activities of the Company set forth in section III, above, occurring in connection with the operations of the Company described in section I, above, have a close, inti- mate, and substantial relation to trade, traffic, and com- merce among the several States and tend to lead to labor disputes burdening and obstructing commerce and the free flow of commerce. V. THE REMEDY Having found that the Company has engaged in certain unfair labor practices , I shall recommend that it be ordered to cease and desist therefrom and take affirmative action designed to effectuate the policies of the Act. CONCLUSIONS OF LAW 1. The Company is an employer engaged in commerce within the meaning of Section 2(6) and (7) of the Act. 2. The Union is a labor organization within the meaning of Section 2(5) of the Act. 3. By coercively interrogating employees concerning union activities, the Company interfered with, restrained, and coerced its employees in the exercise of their rights guaranteed to them by Section 7 of the Act in violation of Section 8(a)(1) of the Act. 4. The aforesaid unfair labor practices are unfair labor practices affecting commerce within the meaning of Section 2(6) and (7) of the Act. 5. Except as set forth above, the General Counsel has not established by a preponderance of the credible evidence that the Company violated the Act. Upon the foregoing findings of fact and conclusions of law and upon the entire record and pursuant to Section 10(c) of the Act, I hereby issue the following recommended: ORDER 30 Lorraine Urbauer d/b/a Kimmel's Shop Rite , its officers, agents , successors and assigns , shall: 1. Cease and desist from: (a) Coercively interrogating employees concerning their activities on behalf of Retail Clerks Union, Local No. 1105, Retail Clerks International Association, AFL-CIO, or any other union. (b) In any like or related manner interfering with, re- straining, or coercing its employees in the exercise of their rights guaranteed to them in Section 7 of the Act. 2. Take the following affirmative action to effectuate the policies of the Act: (a) Post at its Vashon, Washington, store copies of the 28 See Ford Smith Outerwear, Inc., and H. L. Friedlen Company, 205 NLRB 592 (1973). 29 As I have found that the Company did not have a duty to bargain with the Union, it follows that those portions of the complaint that allege that the Company derivatively violated Sec . 8(a)(l) of the Act by making changes in wages, hours, and schedules without first bargaining with the Union, must also be dismissed. 30 In the event no exceptions are filed as provided by Section 102.46 of the Rules and Regulations of the National Labor Relations Board , the findings, conclusions , recommendations and recommended Order herein shall, as pro- vided by Section 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. KIMMEL 'S SHOP RITE attached notice marked "Appendix." 31 Copies of the no- tice, on forms provided by the Regional Director for Region 19, after being duly signed by the Company's authorized representative, shall be posted by the Company immedi- ately upon receipt thereof, and be maintained by it for 60 consecutive days thereafter, in conspicuous places, includ- ing all places where notices to employees are customarily posted. Reasonable steps shall be taken by the Company to insure that said notices are not altered, defaced, or covered by any other material. (b) Notify the Regional Director for Region 19, in writ- ing, within 20 days from the date of this Order, what steps it has taken to comply herewith. IT IS ALSO ORDERED that the complaint be dismissed insofar as it alleges violations of the Act not specifically found. 31 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 be changed to 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 After a trial at which all sides had a chance to give evidence, the National Labor Relations Board has found that we violated the National Labor Relations Act, and has ordered us to post this notice. The Act gives all employees these rights: 449 To engage in self -organization To form , join or help unions To bargain collectively through a representative of their own choosing To act together for collective bargaining or other mutual aid or protection To refrain from any or all of these things except to the extent that membership in a union may be required pursuant to a lawful union-security clause. WE WILL NOT do anything that interferes with, re- strains or coerces employees with respect to these rights . More specifically, WE WILL NOT coercively interrogate our employees concerning their activities on behalf of Retail Clerks Union, Local No. 1105, Retail Clerks International As- sociation , AFL-CIO, or any other union. Dated By LORRAINE URBAUER d/b/a KIMMEL'S SHOP RITE (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, 10th Floor, Republic Building, 1511 Third Avenue, Seattle, Washington 98101, Telephone 206-442-7472. Copy with citationCopy as parenthetical citation