Kroger Co.Download PDFNational Labor Relations Board - Board DecisionsFeb 5, 1974208 N.L.R.B. 928 (N.L.R.B. 1974) Copy Citation 928 DECISIONS OF NATIONAL LABOR RELATIONS BOARD Houston Division of the Kroger Co. and Retail Clerks International Association Local No. 455, AFL-CIO and Amalgamated Meat Cutters & Butcher Work- men of North America , District Local 40& AFL-CIO. Cases 23-CA-4304 and 23-CA-4419 February 5, 1974 DECISION AND ORDER On February 7, 1973, Administrative Law Judge Maurice S . Bush issued the attached Decision in this proceeding, to which thereafter the Respondent-filed exceptions and a supporting brief, and the Charging Parties filed a brief in answer to the Respondent's exceptions. The Board has considered the record and the Administrative Law Judge's Decision in light of the exceptions and briefs and has decided to reverse the Administrative Law Judge's conclusion that Respon- dent has violated Section 8(a) (5) of the Act by refusing to recognize and bargain with Retail Clerks Local 455 and Meat Cutters Local 408 with respect to certain employees in two of its stores which were recently transferred from one of its administrative divisions to another. However, we affirm the Admin- istrative Law Judge's findings of fact to the extent consistent herewith. Respondent is engaged in the operation of a chain of retail food stores in Texas and 19 other States. The Company's retail food chain store operations are divided for managerial and operational purposes into geographical areas or "Divisions" as designated by the Company. The Company's "Houston Division" covers approximately the southern halves of Texas and Louisiana, while the "Dallas Division" corre- sponds roughly to the northern halves of these two States. The initial status of a multistore unit of Retail Clerks within the Houston Division was established in 1956 when the Board certified the incumbent Union, Retail Clerks Local 455, as the-representative of all employees within the forerunner of the Houston Division operating in Texas. Meat Cutters Local 408 has been recognized as bargaining agent for nearly 40 years for a unit of meat employees at all Kroger stores within its Houston Division. Respondent's contracts with Retail Clerks Local 455 since 1963 have contained language virtually the same as that within the current contract as follows: A. The Union shall be the sole and exclusive bargaining agent for all employees employed by the Houston Division of Kroger Food Stores in stores operating in the state of Texas, excluding all persons employed in the meat departments .... [Emphasis supplied.] The pertinent contract between the Meat Cutters Local and Kroger, which expired April 14, 1973, contains the following language: A. The Employer recognizes Meat Cutters Local No. 408 as the exclusive and collective-bargaining agent for all employees in the meat department in all of Employer's retail stores located in the state of Texas operated by the Houston Division of the Kroger Co. B. The parties agree that this contract shall cover and the Union which is a party hereto shall have jurisdiction over all meat department em- ployees in retail stores that are, or will be, owned, leased, or operated by the Employer. [Emphasis supplied.] Although there are obvious differences in language between the two contracts, they both purport to add after-acquired stores to the existing multistore units of the Respondent's Houston Division. We shall characterize this type of clause as an additional-store clause. The dispute in the instant case arose from an administrative transfer of two of the Respondent's stores, viz, the Nacogdoches and Lufkin stores, from the Dallas to the Houston Division. The Unions contended that the above-quoted contract language brought these two stores, theretofore unrepresented as far as the clerks at both stores and the meatcutters at Nacogdoches were concerned , into the existing multistore units. Furthermore, the Retail Clerks Local claimed to represent a majority of clerk employees at both stores and the Meat Cutters Local to represent a majority of meat employees at the Nacogdoches store.' Admittedly, the Unions accom- panied their respective recognition demands on March 22, 1972, for the Retail Clerks Local and on May 26, 1972, for the Meat Cutters Local with an offer of proof of majority support in the form of authorization cards . It is not disputed that the Unions possessed genuine cards signed by a majority of the employees at the time of these demands. Respondent, however, rejected the demands for recognition and petitioned for separate elections among clerk employees at the two stores. The Regional Director dismissed these petitions on August 30, 1972, presumably because of the pending of unfair labor practice proceedings which are the subject of this case.2 During the period from November 15, 1966, 1 Meat Cutters Local 4th did not seek to represent meat employees in the Lufkin store because they are already represented by a sister local. 2 It does not appear that a petition was filed for meat employees at.either store. 208 NLRB No. 122 THE KROGER CO. through August 25, 1972, the Company consistently and without question recognized the two locals as the representatives of the employees in each of 27 different newly constructed stores it opened in that period by virtually automatic agreement and without Board-conducted representative elections. We have held that the individual retail stores of a large retail chain may constitute individual appropri- ate units, depending on the facts and circumstances of the case.3 We are in agreement with the Adminis- trative Law Judge that the Nacogdoches and Lufkin stores constituted independent appropriate units for the reasons whicl- were given in his opinion. We have held that we will not permit parties to include employees in a newly created presumptively appropriate unit into a larger unit without a proper assessment of employee sentiment as to representa- tion.4 As we stated in the Melbet decision: We will not, however, under the guise of accre- tion, compel a group of employees, who may constitute a separate appropriate unit, to be included in an overall unit without allowing those employees the opportunity of expressing their preference in a secret election or by some other evidence that they wish to authorize the Union to represent them. In Melbet, the Board found violations of the Act by the parties' having caused the accretion of a third store to an existing two-store unit in accordance with an additional-store clause in the current labor agreement. Critical to these findings was the fact that the third store was an appropriate unit by itself and that the union lacked majority support in such separate unit. Had the requisite majority support been found, a different result undoubtedly would have obtained. Voluntary recognition is an acceptable procedure so long as majority support is demonstrated in some reasonable form. An employer may lawfully recog- nize a union under circumstances which do not require recognition of the union. Whether he may do so requires one test; whether he must is a different matter. Without regard to the additional-store clauses herein, Respondent could have recognized the Unions for the additional stores, because there was 3 Sav-On Drugs, Inc., 138 NLRB 1032 (1962). 4 Melbet Jewelry Co, Inc, and I D S-Orchard Park, Inc, 180 NLRB 107, 110 If there is a true accretion, the desires of employees are not the critical factor in issue . On the other hand, the employees' wishes become critical if the new unit, as here, is not in fact an accretion. 5 Linden Lumber Diwsion, Summer & Co., 190 NLRB 718. 6 Arthur F Dersc, Sr, President, and Wilder Mfg Co., Inc., 198 NLRB No. 123, reviewed and remanded sub nom. Textile Workers Union of America v. N.L.R B. 487 F.2d 1099 (C.A.D.C., 1973). 929 proof of a card majority. However, in our view, the Respondent was not required to do so.5 It would have been able to, and did, seek Board elections. It could have agreed to a card check, which it did not do. It could have insisted that the Union establish its majority status in Board-conducted elections or have remained in a stand-pat positions We do not think the additional-store language waives or eliminates the Respondent's above options. In Snow & Sons,7 the Board held that the employer violated the Act by reneging on an agreement to honor a majority card check. That case involved a specific agreement to honor a card check in the context of a specific demand for recognition in a specific unit. There the employer essentially extended voluntary recognition after having full opportunity to make a considered assessment of the situation. In contrast, the additional-store clauses herein involve general language, unspecified future stores, and the absence of specific facts and circumstances. We believe this language should be construed differently than the specific agreement in Snow & Sons. We do not view an additional-store clause as tantamount to an advance agreement to honor a card majority. The contract language omits all reference to the question of majority support obtained by any means; indeed, it is dubious whether the parties held this subject within their contemplation.8 We believe our language in Linden Lumber9 is appropos here: We repeat for emphasis our reliance here upon the additional fact that the Respondent and the Union never voluntarily agreed upon any mutual- ly acceptable and legally permissible means, other than a Board-conducted election, for resolving the issue of union majority status. By such reliance we recognize and encourage the principle of voluntarism but at the same time insure that when voluntarism fails the "preferred route" of secret ballot elections is available to those who do not find alternative route acceptable. We stated in Wilder: io [We have] refused to enter a bargaining order on the basis of cards or other circumstantial evidence of majority status, where there has been no 7 Fred Snow, Harold Snow and Tom Snow, d/b/a Snow & Sons, 134 NLRB 709, enfd . 308 F.2d 687 (C A 9, 1962) R This is where the dissenters seriously err , the contract does not contain any agreement as to how majority status shall be established ; in the absence of any such agreement , surely access to NLRB procedures cannot be said to have been consciously waived. 9 Supra at 721. io Supra. 930 DECISIONS OF NATIONAL LABOR RELATIONS BOARD voluntary agreement or a means of resolving majority status ... . We find that as in the Linden and Wilder cases there has been no voluntary agreement upon a legally permissible means of resolving the issue of majority status. We believe that preserving free access to our orderly election machinery, in the absence of a specific agreement to determine majority status by an acceptable and legally permis- sible alternative method, is an essential duty of this Board in administering this Act. We do not purport to treat additional-store clauses as surplusage nor to minimize their importance when applied with due regard for the rights of self- determination of employees in the new store and the rights of all parties to avail themselves of our election machinery when majority status at that store is properly put in issue. We interpret this variety of clause as a lawful agreement so long as it is not used to foreclose either the right to self-determination or free access to our processes. Thus, such agreements may control the ultimate unit in which future bargaining should occur and the scope of future contract coverage, but the initial question of majority status in the unit to be added cannot, in our view, be disregarded or rendered moot by such clauses. We regard Smith's Management Corporation d/b/a Frazier's Market " as fully consistent with our decision herein. There we held that the Respondent could not, consonant with its statutory duties, refuse to execute a negotiated, written contract for the sole reason that it contained an additional-store clause. Since we do not regard such clauses, properly applied, as in contravention of the Act, we reaffirm the rationale of the Smith's Management decision. ORDER Pursuant to Section 10(c) of the National Labor Relations Act, as amended, the National Labor Relations Board hereby orders that the complaint herein be, and it hereby is, dismissed in its entirety. MEMBERS FANNING AND JENKINS, dissenting: Unlike our majority colleagues, we would find that Respondent reneged on its contractual commitment to recognize Retail Clerks Local 455 and Meat Cutters Local 408 as the bargaining representatives of designated categories of employees at all stores operated by Respondent's Houston Division in the State of Texas and that, in the circumstances presented here, such a refusal constitutes a violation of Section 8(ax5) of the Act. " 197 NLRB 1156. Is The meat department employees at the Lufkin store are presently represented by a sister local of Meat Cutters Local 408 and were not The facts are uncomplicated. Respondent has separate collective-bargaining agreements with Re- tail Clerks Local 455 and Meat Cutters Local 408. In each of these collective-bargaining agreements, Respondent has agreed to recognize the union signatory as the exclusive bargaining representative of employees in designated classifications at all stores operated by ;Respondent's Houston Division in the State of Texas. Recognition clauses of a similar nature have appeared in prior collective-bargaining agreements, executed by the parties and, over the years, the parties' practice has been to treat stores newly added to the division as accretions to the contract units. The instant controversy had its beginning in March 1972, when Kroger Co. decided, for administrative purposes, to shift its stores at Nacogdoches and Lufkin, Texas, from its Dallas to its Houston Division. As might be expected, the Unions took the position that they were entitled to recognition as the bargaining representatives of these employees under the terms of their collective-bar- gaining agreements with Respondent. The Unions formally demanded recognition on March 22, 1972, and, although their claims were based on the recognition clauses in their respective contracts, both Unions offered to submit proof that they had card majorities among the employees at the Nacogdoches and Lufkin stores.12 Respondent rejected both the claim for recognition under the collective-bargaining agreements and the offer to prove majority status on the basis of cards. It is undisputed that, at the time the recognition requests were made, the Unions possessed valid card majorities among the employees sought. Initially we note agreement with the majority that the principles of accretion do not resolve the issue herein inasmuch as the stores in question have a sufficient separate existence to constitute separate appropriate units.13 But the Unions' claimed right to recognition is predicated not on the application of our accretion doctrine, but upon rights which are the product of the parties' contractual agreements. Specifically then, we are compelled to consider whether or not Respondent has, by contract, obligat- ed itself to accept the union's claim of representative status in such unit if the union in fact has a majority and demonstrates it and, if so, whether giving effect to such an agreement would be in conformity with the principles and policies expressed in our Act. In White Front Stores, Inc.,14 the Board considered the union's representative status on the basis of the contractual rights flowing to it under the language of the "accretion" clause in the existing collective- included in the Unions' demand for recognition. 13 Melbetlewerly Co., Inc., andl.D.S.-Orchard Park,Inc.,180 NLRB 107. 14 192 NLRB 240. THE KROGER CO. bargaining agreement. Although the Board recogniz- ed that White Front Newark, the newly opened store, was not an accretion in the true sense of the word, it nevertheless chcse to give full effect to the contractu- al agreement of the parties upon being satisfied that the employees of White Front Newark were not being denied their right to have a say in the selection of their bargaining representative. In reaching this conclusion, the Board explained that, although in prior cases it had refused to give controlling weight to such a clause, this was only because of the Board's legitimate concern over the protection of the rights of self-determination by employees. But when it is clear that employee self-determination rights have in fact been protected and exercised so that the union has a majority and has established it by valid cards, the Board's policy is to give full effect to the contractual commitment of the parties. This statement of policy, although first expressed in the White Front Stores decision, has since been reaffirmed in a more recent decision.15 The employees at the Nacogdoches and Lufkin stores have had a full opportunity to express their desires with respect to representation and, by executing valid authorization cards, they have indicated a desire to be represented by the Unions involved herein. Having done so, the only issue then is the effect to be given to the contractual agreement of the parties. But, one might legitimately ask, what is the Board's intent and purpose in examining clauses granting the Unions recognition as the exclusive bargaining representatives at all stores operated by Respondent in the State of Texas? From the Board's previous decisions it is clear that the only reason these clauses have not been given a literal reading is that to do so forecloses employee self-determination. Once this is accomplished, no reason exists for not applying them. As the majority correctly points out, in Melbet the Board refused to give effect to such a clause because the union lacked a majority in the separate unit. The majority then goes on to acknowledge that: ... . Had the requisite majority support been found, a different result undoubtedly would have obtained. Voluntary recognition is an acceptable proce- dure so long as majority support is demonstrated in some reasonable form. if the majority's interpretation of these clauses means that the employer can voluntarily recognize the union or demand an election, then such an interpre- tation renders these clauses totally meaningless and 15 Smith's Manage-new Corporation, d/h/a Frazier's Market, 197 NLRB 1156. 16 Linden Lumber Division, Summer & Co., 190 NLRB 718, Member 931 without effect, for the Unions need no contract authorization to establish their representation status in a Board-conducted election. The clauses herein can be read to require recogni- tion upon proof of majority status by the union. As we have shown, there is no need to hold these clauses totally invalid simply because they do not contain an explicit condition that the Unions must represent a majority of the employees in the new store, inasmuch as the Board will impose such a condition as a matter of law. It is evident that under circumstances as are present in this case, the Unions have lived up to the requirements imposed by the Board and therefore the agreements between them and the Employer should be enforced. Also, contrary to our majority colleagues, we see no inherent conflict between our interpretation of the instant clauses and the policies expressed by the Board in its decision in Linden Lumber.16 In Linden Lumber, the Board recognized, as a general proposition, the right of an employer to insist upon a Board election as the means of resolving questions concerning the union's represent- ative status. However, as that decision itself makes clear, the application of such a rule contemplates, among other things, an absence of any agreement between the parties to resolve the question of representation by means other than a Board-con- ducted election. In our judgment, the parties here have, by their contractual agreements, evidenced their intention to forgo their right to resort to the use of the Board's election process in determining these issues and we do not believe one of them should be permitted to claim the very right which it has forgone, perhaps in return for concessions in other areas. Since the Unions' majority is conceded by all concerned, there is no reason of policy not to give effect to the parties' contractual agreements. The fact that the literal language of the agreements themselves goes beyond what the Board would permit, in determining by contract that an accretion had occurred when in fact the contract cannot resolve this issue, provides little reason for invalidating the entire agreement when it, plus the conduct of the Unions, can reasonably be read as we have read it. Indeed, what the majority explicitly holds is that, while an employer may agree in advance of a card count to recognize a union on the basis of a card majority, it may not contract with the union to do so in advance of the time the union has commenced organization. Our colleagues have offered no explanation of this anomaly, and we perceive none. For the foregoing reasons, we would, in the Fanning dissenting ; remanded sub nom Truck Drivers Union Local No 413, Teamsters v. N LR B , 487 F 2d 1099 (C A.D.C., 1973). 932 DECISIONS OF NATIONAL LABOR RELATIONS BOARD circumstances present here , give full effect to contractual agreements of the parties and find that Respondent 's refusal to honor its commitment to recognize the Unions as the exclusive bargaining representatives in such units violated Section 8(a)(5) of the Act.17 17 Cf. Fred Snow, Harold Snow and Tom Snow d/bla Snow & Sons, 134 NLRB 709. DECISION STATEMENT OF THE CASE MAURICE S. BusH , Administrative Law Judge : In early 1972, The Kroger Co. transferred for all operational and management purposes two of its unorganized or nonunion retail stores in the State of Texas from its Dallas division to its Houston division which for many years has had multistore unit bargaining agreements with accretion clauses with the two Unions here involved under which any new Texas store within the Houston division almost automatically became covered by such agreements. There- upon, the two Unions requested recognition for the two transferred stores based hoth on the accretion clauses in their respective multistore unit agreements and on offers to show by a card check that the involved employees in both of the transferred stores had designated them as their collective-bargaining representatives. The Company declined recognition on the ground that each of the two transferred stores constitute separate units, apart and separate from the multistore bargaining units defined in the collective-bargaining agreements. Under these admitted but skeletonized facts , the issue under the pleadings is whether the Respondent is in violation of Section 8(axl) and (5) of the National Labor Relations Act by its refusal to recognize and bargain with the two Unions with respect to the two transferred stores. This in turn revolves around the question of whether under the facts and circumstances of this case the two transferred stores constitute part of the agreed multistore bargaining units under the accretion clauses as contended by General Counsel , or constitute separate appropriate units as contended by Respondent. The complaint in Case 23-CA-4304 was issued on August 15, 1972, pursuant to a charge filed and served upon the Respondent on April 7, 1972. The complaint in Case 23-CA-4419 was also issued on August 15, 1972, but pursuant to a charge filed and served upon Respondent on June 30, 1972. The two complaints were consolidated for hearing by an order dated August 15 , 1972. Respondent's answers deny the alleged unfair labor practices. The case was tried before me on September 12 and 13, 1972, at Nacogdoches , Texas. Briefs duly filed by counsel for the General Counsel, the Clerks Union, and the Respondent on November 9, 1972, have been carefully reviewed and considered. For reasons hereinafter indicated , Respondent is found in violation of the Act as alleged in the complaints. Upon the entire record in the case and from my observations of the witnesses , I make the following: FINDINGS OF FACT 1. JURISDICTIONAL FINDINGS The above-named Respondent, The Kroger Co., Hous- ton Division, is an Ohio corporation, with its principal office at Cincinnati , Ohio . The Company is engaged in the operation of a chain of retail food stores in Texas and in 19 other States in the United States . As here pertinent, the only Kroger stores involved in this consolidated proceed- ing are its Retail Store No. 990 , located at Nacogdoches, Texas, and its Retail Store No. 110, at Lufkin, Texas. These stores will hereinafter be referred to as the Nacogdoches and Lufkin stores. During the past 12 months, a representative period, The Kroger Co., in the course and conduct of its business operations in the State of Texas , sold and distributed products , the gross value of which exceeded $500 ,000. During the same period, the Company purchased products in excess of $50 ,000 from suppliers located outside the State of Texas, and these products were delivered to its retail store facilities located in the State of Texas . By reason of these admitted facts, I find that the Respondent is an employer engaged in commerce within the meaning of Section 2(6) and (7) of the Act. II. THE LABOR ORGANIZATIONS INVOLVED The above-named Unions, the Charging Parties herein, are labor organizations within the meaning of Section 2(5) of the Act. III. THE UNFAIR LABOR PRACTICES A. Background The Company's retail food chain store operations are divided for managerial and operational purposes into geographical areas, or "Divisions ," as designated by the Company, which may cross state lines . The Company's "Houston Division" covers approximately the southern halves of Texas and Louisiana . The Company's "Dallas Division" roughly covers the northern half of Texas and apparently the northern half of Louisiana . Each division, headed by a vice president and manager of operations, is in THE KROGER CO. turn divided into geographical zones headed by zone managers who report to the manager of operations. Each zone is comprised of a group of individual stores within the zone . Each store is headed by a store manager who reports to the zone manager. The Company's stores fall into two classifications, the conventional superfood markets and the so-called "family centers" which, in addition to foods and related household goods, market and sell an extended line of general merchandise, such as soft and hard goods, beauty aids, and hardware items. The only two Kroger stores involved in this proceeding are the Kroger "Family Center" store, at Nacogdoches, Texas, and the Kroger conventional food store at Lufkin, Texas. The Company has no other stores in these two cities which are approximately 20 miles apart and appear to be nearly equidistant from Dallas and Houston, Texas. The Nacog- doches store was opened as a newly constructed store on February 23, 1971; the record appears silent as to when the Lufkin store was opened. At the times here pertinent,' the Company employed 53 clerk employees and 3 meat employees at its Nacogdoches stores and 18 clerk employ- ees at its Lufkin stores. For reasons that will appear below, the number of meat employees in the Lufkin store is immaterial to the issues in the case. Nacogdoches is located in the county of Nacogdoches, Texas, and Lufkin, in the county of Angelina, Texas. Prior to March 1972, both the Nacogdoches and Lufkin stores were part of the Kroger's "Dallas Division" and according- ly under the management and direction of the Dallas division. Although the Dallas division has a multistore, accretion type, collective-bargaining agreement with re- spect to its clerk employees, effective March 1, 1970, through March 3, 1973, with Local 368 of the Retail Clerks International Association, AFL-CIO (not with Local 455 of the same International here involved), that agreement is expressly restricted to Kroger stores located in Dallas and Tenant counties, Texas, and in the towns of Sherman and Gainsville, Texas, and has no application to the counties of Nacogdoches and Angelina in which the towns of Nacogdoches and Lufkin are in. Thus the Kroger stores at Nacogdoches and Lufkin while they were part of the Dallas division were not under or covered by the collective-bargaining agreement of the Dallas division with Local 368. The record by stipulation likewise shows that the clerk employees in Kroger's Nacogdoches and Lufkin stores were also not covered by or under any other collective-bargaining agreement while they were in Kro- ger's Dallas division and accordingly and admittedly were unorganized or nonunion stores. Similarly, it is established by stipulation that prior to i The "times here pertinent" have reference to the dates that the two Unions here involved requested recognition as the bargaining representa- tives of the clerk and meat department employees in the Nacogdoches and Lufkin stores The record by stipulation shows that on March 22, 1972, when the Clerks Local 455 requested recognition , there were 53 clerk employees in the Nacogdoches store It is also established by the undisputed testimony of a meat department employee , Joe Harkness , and Joint Exh 7(a), that there were 3 regular meat employees in the Nacogdoches store on May 26 , 1972, when the Meat Local 408 by letter (Joint Exh 7(a)) requested recognition On May 28 or 29, 1972 , Kroger hired a young man who had dust graduated from high school to work in the meat department of the Nacogdoches store He worked in the meat department for about 3 weeks 933 March 1972 the meat employees in the Nacogdoches store were unrepresented by any local or union. However, the meat employees in the Lufkin store were organized and represented prior to March 1972 and still are represented by Local 5402 of the Amalgamated Meat Cutters & Butcher Workmen of North America, AFL-CIO (but not with Local 408 of the same International here involved). Summarized, the record shows that prior to March 1972 when the Kroger stores at Nacogdoches and Lufkin were in Kroger's Dallas division the clerk and meat employees in the Nacogdoches store and the clerk employees in the Lufkin store were unrepresented and not covered by any collective-bargaining agreement, but that the meat employ- ees in the Lufkin store have been at all times here pertinent and still are covered by a collective-bargaining agreement. Inasmuch as the meat employees at the Lufkin store are represented by a sister local, Local 408 does not seek to represent the same employees and there is no issue in this proceeding with reference to the meat employees in the Lufkin store. On February 28, 1972, Kroger transferred the Lufkin store and on March 13, 1972, the Nacogdoches store from its Dallas division to its Houston division for all manageri- al purposes. Thereafter the two stores had no connection with the Dallas division. Shortly following these transfers, the Clerks Local 455 made demands for recognition at both the Nacogdoches and Lufkin stores and similarly Meat Local 408 made demand for recognition only at the Nacogdoches store. These demands for recognition by the two Locals were in part based upon the recognition-unit-accretion clauses in their collective -bargaining agreements with Kroger. Clerks Local 455's current contract with Kroger, effec- tive September 1, 1971, through September 7, 1974, has the following recognition-unit-accretion clause: ARTICLE 1. RECOGNITION OF THE UNION AND THE BARGAINING UNIT A. The Union shall be the sole and exclusive bargaining agent for all employees employed by the Houston Division of Kroger Food Stores in stores operating in the state of Texas, excluding all persons employed in the meat departments, store managers, co- managers , management trainees , professional employ- ees, guards, and supervisors as defined in the L.M.R.A., as amended. [Emphasis supplied.] Virtually the same recognition -unit-accretion clause is present in all the preceding contracts between Kroger and Local 455 from at least 1963 onward . The above clause and then was transferred to the produce department Thereafter the meat department reverted to 3 employees again It is found that the high school graduate was not employed at the Nacogdoches on May 26, 1972, when Local 408 made its demand for recognition In any event , it is found that the high school graduate was a temporary meat department employee in the Nacogdoches store and accordingly not entitled to be included in a card check to determine whether the meat department employees by a majority designation selected Local 408 to represent them 2 The above mentioned local is identified in the record as Local 540 (Tr 321) and in Respondent 's brief as Local 540 (see pages 4 and 5) but apparently incorrectly referred to as Local 450 in General Counsel's brief 934 DECISIONS OF NATIONAL LABOR RELATIONS BOARD evolved from a Board certification in 1956, pursuant to a consent election, under which the Board certified Local 455 as the representative of "all employees employed in stores of Henke & Pillot, Inc., Division of Kroger presently operating in Texas ...." 3 with practically the same exclusions as set forth in the above-quoted clause. Following the certification, the initial contract was an agreement between Local 455 and Henke & Pillot, as a division of The Kroger Co., effective January 21, 1957, through January 30, 1960. Similarly the Meat Local 408's current contract with Kroger, effective November 1, 1970, through April 14, 1973, has the following recognition-unit-accretion clause: ARTICLE 1. RECOGNITION AND JURISDICTION A. The Employer recognizes Meat Cutters Local No. 408 as the exclusive and collective-bargaining agent for all employees in4 the meat department in all of Employer's retail-stores located in the state of Texas operated by the Houston Division of the Kroger Co. B. The parties agree that this contract shall cover and the Union which is a party hereto shall have jurisdic- tion over all meat department employees in retail stores that are, or will be, owned, leased or operated by the Employer. [Emphasis supplied.] The pleadings show that Local 408 has represented the above-described unit of meat employees "in all" of Kroger's stores in Texas within its Houston division for nearly 40 years from April 1, 1936, to the present time. The meat employees unit, as. set forth above from the current multistore contract, evolved exclusively from negotiations between Kroger and Local 408 and not from a Board certification as was the case with the Clerks Local 455. In addition to their claims for recognition from the Company based on the above-quoted unit-accretion clauses in their respective contracts, the two Locals also claimed recognition based on representation auth- orization cards they had received from the majority of their respective constituents in the two stores. It is admitted that the two Locals made offers of a showing of such cards to the Company at the time they made their demands for recognition and that the offers were rejected. As heretofore noted, the Nacogdoches store, at the time the two Locals made their respective demands on the Company for recognition, had in its employment 53 clerks and 3 meat department employees. At the hearing it was established that at the date of their recognition demand March 22, 1972, the Clerks Local had duly authenticated and valid authorization cards from 33 of the 53 employees in the Nacogdoches store. The record further shows that the Meat Local on the date of its demand, May 26, 1972, had 2 duly authenticated and valid cards from the 3 meat employees in the Nacogdoches store. As heretofore also 3 Kroger prior to 1957 had purchased the entire Henke & Allot grocery chain in Texas and made it a subdivision of the Company. 4 The towns or cities in the southern half of Texas in which Houston division of the Respondent operates retail stores are for the most part geographically widely separated. 5 It appears front the brief filed in behalf of Clerks Local 455 that Respondent's petitions for elections by its clerk employees in its Nacog- noted, the Lufkin store had 18 clerk employees at the date, March 22, 1972, that the Clerks Local made demand for recognition at that store. At the hearing it was established that the Clerks Local had 14 duly authenticated and valid authorization cards from the 18 clerks in the Lufkin store on the date of its demand for recognition . Thus at the times of the demands , the two Locals had authorizations for representation from clear majorities of their respective constituents. (It may be again noted that Meat Local 408 does not seek to represent the meat employees in the Lufkin store because they are already represented by a sister local.) Finally the two Locals also made claim for recognition at the Nacogdoches and Lufkin stores on the basis of Kroger's past practice and. custom of according them recognition on any newly constructed stores Kroger plans in the State of Texas within its Houston division and to extend to all clerk and meat department employees in such new stores the coverage of its current collective-bargaining agreements with the two Locals . The pertinent facts with respect to such past practice and custom are largely stipulated, admitted , and undisputed as set forth below. Prior to March 1965, Kroger had approximately 30 retail food stores in the State of Texas within its Houston division. Between November 15, 1966, and July 25, 1972, Kroger opened 27 additional newly constructed stores at various cities or towns in Texas within the Houston division . As of March 1972 the Houston division which as noted has stores in the southern halves of Texas and Louisiana, had 54 stores in the Texas part of the division 4 and the remaining 14 stores in southern Louisiana. With reference to 27 additional new stores that Kroger opened from time to time in Texas in its Houston division, it is established by stipulation and detailed by testimony that the clerk employees in these stores as opened were virtually automatically included in the multistore unit represented by Clerk Local 455 and that the coverage of the then collective-bargaining agreement was extended without question to the clerks in each of such newly constructed stores . The pleadings and the record as a whole likewise show that as these 27 new Texas stores were added to the Houston division , the meat department employees in such stores were also virtually automatically included in the multistore unit represented by the Meat Local 408 and given the coverage of that Local 's current collective- bargaining agreement. The Respondent as above noted rejected the written demands of the two Locals for recognition. At or about the time these demands were made, the Respondent filed representation election petitions with the Regional Direc- tor under which it sought a determination that the clerk employees in the Company's store in Nacogdoches and at its store at Lufkin constitute separate appropriate units-5 Following the rejection of their demands for recognition, the two Locals filed charges against Respondent with the doches and Lufkin stores were dismissed by the Regional Director on August 30, 1972, presumably because of the pendency of this unfair labor practice proceeding. Respondent did not file a similar election petition with respect to the meat department employees at the Lufkin store , apparently because such employees in the Lufkin store are already represented by a sister local. THE KROGER CO. Regional Director of unfair labor practices in violation of Section 8(a)(1) and (5) by reason of the Company's refusal to bargain collectively with them on the multistore units they represent under their respective collective -bargaining agreements with the Company which resulted in the issuance of the complaint herein. The record shows that the operations of the Nacogdoch- es and Lufkin stores are identical with that of all other Kroger stores of the same type which are covered by the contracts of the two Locals here involved. The Nacogdoch- es and Lufkin stores are in zone 6 which has a total of nine stores. The zone manager, Harold Wallace, of zone 6 testified that the store managers of the Nacogdoches and Lufkin stores have sole authority to interview and hire personnel for their stores, but admits that all other store managers in zone 6 have the same authority. Wallace also testified that the Nacogdoches and Lufkin store managers had the authority to fire employees, but admits that this was true of all other Kroger store managers with the possible exception- of store managers in the city of Houston. Wallace's testimony further shows that all store managers throughout the Houston division have responsi- bility for ordering merchandise and placing local advertise- ments. 'He testified that the Nacogdoches -and Lufkin stores maintain separate bank accounts, but admits that each of the other seven stores in his zone likewise maintain separate bank accounts. He also testified that all store managers must follow company policy and procedures. He further testified that the store managers at the Nacogdoch- es and Lufkin stores have the authority to make manage- ment type decisions and to prepare payroll records, but admits that all other store managers in his zone have the same authority. He also testified that all store managers determined the inventory needs of their particular stores. Wallace testified that he did not know any essential difference between the family center store in Nacogdoches and the conventional store at Lufkin from any other such stores in the Houston division. Despite my adjurations as the trier of the facts to counsel for the Respondent to bring out the differences, not the similarities, between the Nacogdoches and Lufkin stores, on the one hand, and all the other Houston division Texas stores, on the other, no such evidence was produced. I find that there are no essential differences between the operations of Kroger's Nacogdoches and Lufkin stores and all other same type Kroger stores in the Houston division. The record shows through the testimony of Kroger's personnel manager for the Houston division, Bob Wash- tock, that the reason for the transfer of the Nacogdoches "Family Center" store from the Dallas division to the Houston division was that the latter division was better equipped by its larger buying staff to handle the merchan- dise needs of that type of store than the Dallas division. His testimony further shows that the transfer of the Nacogdoches store to the Houston division was also due to geographical reasons which, although not detailed in the record, appear to be that Kroger's warehouses at Houston 6 In its brief the Respondent states the issue as follows : "Whether the employees of the Company's Lufkin and Nacogdoches stores constitute separate appropriate units or whether the stores are accretions to the existing multistore unit?" 7 Interestingly, the involved drug store in Say-On Drugs, Inc., supra, was 935 are in easy reach of Nacogdoches. Washtock further stated that the reason for the transfer of the Lufkin conventional store to the Houston division was its close proximity to Nacogdoches, a distance of only 20 miles, and the fact that merchandise trucks on their way from Houston to Nacogdoches have to pass through Lufkin. Summarized , the record shows that the functions and operations of the Nacogdoches "Family Center" store and the Lufkin conventional food store are in all ways identical with that of all other such Kroger stores in Texas within Kroger's Houston division , and that the reasons for the transfer of the Nacogdoches and Lufkin stores from the Dallas division to the Houston division was due solely to the company decision that the two stores could be better serviced out of the Houston division than from the Dallas division. The Company in a letter dated March 27, 1972, to the Clerks Local 455 stated the following reasons for refusing the Union's offer of a card check to show that a majority of the clerk employees in both the Nacogdoches and Lufkin stores had designated Local 455 as its bargaining repre- sentative: "We doubt that you now represent a majority of employees in those store . . . . It has been our experience that cards are not a reliable indicator of employee support. Accordingly, we are refusing your demand for a card check ." In a letter dated June 7 , 1972, addressed to the Meat Local No. 408 , the Company declined Local 408's offer of a card check for the same reasons. In its same letters to the two Locals, the Company advised that it was filing representation petitions with the Board.- For the period November 15, 1966, through August 25, 1972, the Company consistently and without question recognized the two Locals as the representatives of the employees in all the 27 different newly constructed stores it opened in that period by virtually automatic agreement and without Board conducted representation elections. In its brief the Respondent no longer claims that it doubts that the two Locals represent the employees they claim to represent at the Nacogdoches and Lufkin stores by virtue of having obtained union authorization cards from a majority of such employees at the time they made their demands for recognition. Discussion and Conclusions In its brief Respondent seeks to justify its refusal to accrete the Nacogdoches and Lufkin stores to the existing multistore unit under its collective-bargaining contracts solely on the ground that each of the two stores constitute separate appropriate units by themselves.6 The Company seeks such a decision under the now well- established rule that a newly added store to a chain of stores under an accretion type collective-bargaining agree- ment is presumptively deemed to be a separate appropriate unit in the absence of evidence to the contrary. Say-On Drugs, Inc.,7 138 NLRB 1032 (1962); Hagg Drug Company, Incorporated; 169 NLRB 877 (1968); Melbet Jewelry a wholly owned administrative subdivision of apparently the same Kroger Company involved herein as the Respondent . But whereas in the present case Kroger seeks separate units for both the Nacogdoches and Lufkin stores, in Sav-On Drugs, Inc., Kroger unsuccessfully sought to include the single drug store there involved in a multistore unit. 936 DECISIONS OF NATIONAL LABOR RELATIONS BOARD Company, 180 NLRB 107 (1969); Super Valu Stores, Inc., 177 NLRB 899 (1969); Warehouse Markets, Inc., 174 NLRB 401 ( 1969); Sheraton-Kauai Corporation v. N.LR.B., 429 F.2d 1352 (C.A. 9, 1970). The controlling desideratum for this presumptive rule, the cases show , is the desire to protect the Section 7 rights guaranteed employees to select their own union representatives. As stated by the Board in Melbet Jewelry, supra, the "excessive ' preoccupation" of the appropriate unit concept of Section 9(b) of the Act must not lead to the abrogation of Section 7 rights. But all of the above-cited cases emphasize that while there is a presumption in favor of a single store unit, each case must be decided on the basis of all the circumstances in the case. Thus, the Board in the Sav-On Drug case, the first case in which it established the presumption in favor of the single store unit , stated that "whether a proposed unit which is confined to one of two or more establish- ments making up an employer 's retail chain is appropriate will be determined in the light of all the circumstances of the case." (Emphasis supplied .) Ten years later the Board in Smith 's Management Corporation, d/b/a Frazier's Market, 197 NLRB 1156 (1972), reiterated the same , holding in substantially the same language as follows : "Whether a group of new employees in a new store operated by the same employer will accrete to the existing unit is a matter to be determined by the Board in light of the circumstances of each individual case ...:. (Emphasis supplied.) In its consideration of the circumstances under which the employees of a single store, rather than a multistore unit, should be the appropriate unit, the Board has held ' that the degree of local autonomy of the single store manager in such matters as the hiring and firing of employees and their daily directions could be the determinative factor in its decision . Thus, in Haag Drug, supra the Board decided that the single drug store there involved was an appropriate unit in itself because of the high degree of autonomy the manager of that store had with reference to the employee personnel in that store . But the Board in that same decision clearly indicated that if such "countervailing factors" had been present as "an existing, stable bargaining relationship ... in a multistore unit and there is a reasonable expectation of continued stability in that unit," it would "find the multistore unit appropriate." 8 In all the above-cited cases and others cited by Respondent in its brief in which the Board or a court found the employees of a single new store , as opposed to a multistore unit, to be the appropriate unit, the question as to which was the appropriate unit arose from the opposition of a second union or an individual employee to the contention of the existing union or the employer that the store should accrete to the multistore unit set forth in the current collective-bargaining agreement . In such situations it is the Board policy to defer to the wishes of the employees of the newly added chain store either by the way of an expression of "their preference in a secret election or by some other evidence ...." (Emphasis supplied .) Melbet Jewelry, supra In a more recent case the Board even more explicitly held that an employer could challenge a union's right under an accretion clause to represent the employees in a newly added chain store "by means of a card check or a Board election or by some other means...." (Emphasis supplied .) Retail Cler4a Union, Local 870, Retail Clerks International Association, AFL-CIO, hereafter referred to as White Front Stores, 192 NLRB 240. In that case the Board held that the Union under its accretion clause had the right to represent the employees in a new White Front store by virtue of a showing under a card check that it represented the majority of the employees in the new store and that this showing satisfied the Board's "concern over protecting the rights of future employees to have a say in the selection of their bargaining representative." In the instant case the pivotal and controlling fact is that the two Locals here involved in connection with their demands for recognition had offered to show by a card check that they had been selected by a majority of the involved employees at the Nacogdoches and Lufkin stores to represent them . Kroger rejected the offer on the ground that its experience had shown that such card checks were unreliable and that instead it desired a Board election although actually Kroger's experience had been to the contrary because over a period of about 7 years in connection with the opening of 27 newly constructed stores it had accreted the employees in these new stores without question into the existing multistore unit under the accretion or recognition clauses of its collective-bargaining agreements with the two Locals here involved. At the trial as shown above , it was readily established as claimed by their proffered card checks that the two Locals did in . fact have valid authorization cards from the clear majority of their respective constituents in the two stores. Under such circumstances controlling effect can be and is given to the contractual commitments of the parties herein. White Front Newark, - supra. As shown above, Kroger's collective-bargaining agreement with Clerks Local 455 provides that "the Union shall be the sole and exclusive bargaining agent for all employees employed by the Houston Division of Kroger Food Stores in stores operating in the State of Texas . . . " Kroger's contract with the Meat Local 408 not only gives Local 408 the same representation rights in behalf of Kroger's meat depart- ment employees in stores in the State of Texas operated by its Houston Division but in addition expressly gives Local 408 jurisdiction over all meat department employees in retail stores that are, or will be, owned, leased, or operated by the Employer. " (Emphasis supplied.) In view of the fact that the clear majority of the involved employees in both the Nacogdoches and Lufkin stores have selected Locals 455 and 408 to represent them in collective bargaining with the Company , the asserted "high degree of autonomy under which the [two] stores are operated,-9 even if true, becomes immaterial on the issue 8 For precedent the Board cited Meyer Supermarkets, Inc., 142 NLRB about the asserted autonomy under which the Nacogdoches and Lufkin 513, and The Great Atlantic & Pacific Tea Co... Inc., 153 NLRB 1549. stores operate because the record shows that each and every store in the 9 It may be again noted, as found above, that there is nothing unusual State of Texas within Kroger's Houston division has identically the same THE KROGER CO. of whether the two stores should be found separate appropriate units because that issue has itself become moot by the employees' choice through. their union authorization cards to be represented by Locals 455 and 408 under and as part of the multistore units they represent in their contracts with the Respondent. Thus the involved employ- ees have not been deprived of any of the rights guaranteed to them under Section 7 of the Act but on the contrary have freely and fully exercised their rights under Section 7. In the White Front Stores case, supra, the Board in a basically parallel factual situation, after commenting on the identicalness of the retail operations of the two stores there involved, one organized and the other unorganized but claimed by the Union, stated: More important, however, is the contractual agree- ment between Respondent and White Front Oak Oakland whereby the parties agreed that any future White Front stores located within the Respondent's territorial jurisdiction would be deemed an accretion to existing bargaining unit . Although we have in past cases refused to give controlling weight to such a clause , our only reason for not giving controlling effect to the contractual commitment of the parties has been our concern over protecting the rights of future employees to have a say in the selection of their bargaining representative. No such problem exists here, however, because the employees at White Front Newark [the new store] have already clearly indicated that they wish to be represented by the Respondent. Therefore, as the rights of third parties, i.e., the employees of White Front Newark, have not been jeopardized, we consider it proper to give full effect to the contractual agreement of the parties , and on this basis alone conclude that White Front Newark is an accretion to the existing unit covered by the collective-bargaining agreement be- tween Respondent and White Front Oakland. [Empha- sis supplied.] The Board reaffirmed its White Front Stores holding in Smith 's Management Corporation, 197 NLRB 1156. In Smith 's the Board again held that where an employer and a . union have a multistore contract with an accretion clause, the Board "'will give controlling effect to such a contractual provision and accrete a new group of employees to the existing unit where they have indicated their clear desire to be represented by the union representing the other employees." (Emphasis supplied.) Similarly in the present case, based on the fact that the involved employees in the Nacogdoches and Lufkin store have expressed their clear desire to be represented by the same two Locals here involved who represent their counterpart employees in all other Kroger .stores in Texas within Kroger's Houston division, controlling effect is given to the accretion clauses in the two collective- bargaining agreements here involved and to the past practice and custom of Kroger to accrete new stores in autonomy (except possibly the stores in Houston where because of the multiple Kroger stores in Houston there appears to be central authority in the matter of hiring and discharging employees) and yet all such other Kroger stores in Texas Within the Houston division are under the collective- 937 Texas as opened within the Houston division to , the multistore unit set forth in the two contracts. Consideration has been given to Kroger's further contention that the Nacogdoches and Lufkin stores should not be accreted to the Texas based multistore units of its Houston division because they were transferred stores from the Dallas division as distinguished from the newly constructed Texas spores in the Houston division which the Company has freely accreted over the years to its existing Texas based multistore units within its Houston division. I find that contention without merit because, whether new or old, the Nacogdoches and Lufkin stores after their transfer to the Houston division became subject in every way to the identical management and operational controls as that of all other Texas stores in the Houston division. It is noteworthy that Kroger in or about 1956 not only took over by purchase and transfer the stores of the entire Henke & Pillot grocery chain in Texas but also almost immediately thereafter entered into a collective-bargaining agreement with the same Clerks Local 455 here involved under which Kroger agreed that Local 455 "shall be the sole and exclusive bargaining agent for employees in the stores of the Henke & Pillot, Division of the Kroger Co., as stipulated in NLRB Case 39-RC-1075." Thus there is even precedent for stores acquired by Kroger by transfer to become a part of multistore units. Summarized, I find and conclude under all the circum- stances of this case that the clerk employees in Kroger's Nacogdoches and Lufkin stores accreted to Kroger's existing contract with Clerks Local 455 and that the employees in the meat department of Kroger's Nacogdoch- es store accreted to Kroger's existing contract with Meat Local 408. Finally I find and conclude that under all the circum- stances of this case Kroger's refusal to recognize and bargain with Locals 455 and 408 is in violation of Section 8(a)(5) and (1) of the Act. Upon the basis of the foregoing findings of fact and upon the entire record in the case, I make the following: CONCLUSIONS OF LAW 1. Respondent, Houston Division of The Kroger Co., is an employer engaged in commerce within the meaning of Section 2(6) and (7) of the Act. 2. The aforementioned Unions, briefly referred to as Local No. 455 and Local 408, are labor organizations within the meaning of Section 2(5) of the Act. 3. All employees employed by the Houston division of Kroger Food Stores in stores operating in the State of Texas, including the stores at Nacogdoches and Lufkin, Texas, but excluding all persons employed in meat departments, store managers, co-managers, management trainees, professional employees , guards and supervisors as defined in the Act, constitute a unit appropriate for the purposes of collective bargaining within the meaning of Section 9(b) of the Act. 4. All employees in the meat department in all of bargaining agreements between Kroger and the two Unions here involved. The record further shows that except for their routine day-by-day operations, all stores are controlled by company policy and subject toclose scrutiny and supervision of zone managers. 938 DECISIONS OF NATIONAL LABOR RELATIONS BOARD Respondent's retail stores located in the State of Texas, operated by the Houston Division of The Kroger Co., including the store at Nacogdoches, Texas, exclusive of all other employees, guards, watchmen and supervisors as defined in the Act, constitute a unit appropriate for the purpose of collective bargaining within the meaning of Section 9(b) of the Act. 5. At all times from and after March 22, 1972, Clerks Local 455 has been and now is the exclusive representative for the purposes of collective bargaining of the employees in the unit described in paragraph 3 above, within the meaning of Section 9(a) of the Act. 6. At all times from and after May 26, 1972, Meat Local 408 has been and now is the exclusive representative for the purposes of collective bargaining of the employees in the unit of meat department employees described in paragraph 4 above, within the meaning of Section 9(a) of the Act. 7. By refusing to bargain with Clerks Local 455 on and after March 27, 1972, Respondent has engaged in unfair labor practices within the meaning of Section 8(a)(5) and (1) of the Act. 8. By refusing to bargain with Meat Local 408 on and after May 26, 1972, Respondent has engaged in unfair labor practices within the meaning of Section 8(a)(5) and (1) of the Act. 9. The aforesaid unfair labor practices affect commerce within the meaning of Section 2 (6) and (7) of the Act. REMEDY Having found that the Respondent has engaged in certain unfair labor practices in violation of Section 8(a)(5) and (1) of the Act, I shall recommend that the Respondent be ordered to cease and desist therefrom and from in any other manner infringing upon its employees' Section 7 rights, and that it take certain affirmative action designed to effectuate the policies of the Act. [Recommended Order omitted from publication.] Copy with citationCopy as parenthetical citation