Liberty Electronics Corp.Download PDFNational Labor Relations Board - Board DecisionsSep 27, 1962138 N.L.R.B. 1074 (N.L.R.B. 1962) Copy Citation 1074 DECISIONS OF NATIONAL LABOR RELATIONS BOARD because of their concerted or union activities, or in any other manner dis- criminate in regard to their hire or tenure of employment or any term or condition of employment. WE WILL NOT solicit our employees to give us their union authorization cards. WE WILL NOT in any other manner interfere with, restrain, or coerce our employees in the exercise of their right to self-organization, to form labor organizations, to join or assist Retail Clerks Union Local No. 455, AFL-CIO, Retail Clerks International Association, AFL-CIO, or any other labor organiza- tion, to bargain collectively through representatives of their own choosing, or to engage in concerted activities for the purpose of collective bargaining or other mutual aid or protection, or to refrain from any or all of such activities. WE WILL make Edward Cloud whole for any loss of pay he may have suffered by reason of the discrimination against him and we will notify him of his right to apply for reinstatement within 90 days after his discharge from the Armed Forces. All our employees are free to become or remain, or to refrain from becoming or remaining, members in good standing of Retail Clerks Union Local No 455, AFL-CIO, Retail Clerks International Association, AFL-CIO, or any other labor organization. MORRIS, SEWALL & CO., INC., Employer. Dated------------------- By------------------------------------------- (Representative) (Title) This notice must remain posted for 60 days from the date hereof, and must not be altered, defaced, or covered by any other material. Employees may communicate directly with the Board's Regional Office, 650 M & M Building, 1 Main Street, Houston, Texas, Telephone Number, Capitol 2-7201, Extension 041, if they have any question concerning this notice or compliance with its provisions. Liberty Electronics Corp. and Flight Electronic Supply Corp. and Warehouse Processing & Distribution Workers' Union, Local 26, International Longshoremen 's and Warehousemen's Union. Case No. 21-CA-4523. September 27, 1962 DECISION AND ORDER On June 1, 1962, Trial Examiner Martin S. Bennett issued his Inter- mediate Report in the above-entitled proceeding, finding that the Respondents had engaged in and Were engaging in certain unfair labor practices and recommending that they cease and desist therefrom and take certain affirmative action, as set forth in the attached Inter mediate Report. Thereafter, the Respondents filed exceptions to the Intermediate Report and a supporting brief.' The Board 2 has reviewed the rulings made by the Trial Examiner at the hearing and finds that no prejudicial error was committed. The rulings are hereby affirmed. The Board has considered the Inter- mediate Report, the Respondents' exceptions and brief, and the entire record in the case, and hereby adopts the findings, conclusions, and i The request for oral argument, filed by the Respondents , is hereby denied as the record , including the Respondents ' exceptions and brief , adequately presents the issues and the positions of the parties. 2 Pursuant to the provisions of Section 3(b) of the National Labor Relations Act, the Board has delegated its powers in connection with this case to a three -member panel [Chairman McCulloch and Members Leedom and Brown] 138 NLRB No. 110. LIBERTY ELECTRONICS CORP., ETC. 1075 recommendations of the Trial Examiner with the following excep- tions and modifications. We agree with the Trial Examiner that the Respondents' letter of August 30, 1961, to the employees who went out on strike on August 29, constituted a discharge of these employees because of their con- certed activities, and that Gallegos was later discharged for the same reason, in violation of Section 8(a) (3) and (1) of the Act. How- ever, it is the Board's established practice to award employees who are discharged while on strike backpay only from the date on which they make unconditional application for reinstatement. In this case, the strikers made such application as of September 22, and their unconditional offers were refused by the Respondents that day. We shall, accordingly, modify the Trial Examiner's Recommended Order to provide that the 17 employees discriminated against be made whole by the Respondents from September 22,1961. For the reasons stated in Isis Plumbing & Heating Co., 138 NLRB 716, we agree with the Trial Examiner that the backpay obligation of the Respondents should include the payment of interest, which shall be computed at the rate of 6 percent in the manner set forth in the Isis Plumbing case.' ORDER The Board adopts as its Order the Recommended Order of the Trial Examiner with the following modifications : 1. Section 2 (a) shall be modified to read : Offer to the 17 employees named in the appendix attached to the Intermediate Report immediate and full reinstatement to their former or substantially equivalent positions, without preju- dice to their seniority or other rights and privileges, and make them whole from September 22, 1961, for any losses suffered by reason of the discrimination against them in the manner set forth in the section of the Intermediate Report entitled "The Remedy," as modified by the Board's Decision and Order. 2. The following note shall be added to the bottom of the notice immediately below the signature : NoTE.-We will notify any of the above-named employees pres- ently serving in the Armed Forces of the United States of their right to full reinstatement upon application in accordance with the Selective Service Act after discharge from the Armed Forces. 3. Change the notice by substituting the words "60 consecutive days from the date of posting." for the words "60 days from the date hereof. ...." 8 Member Leedom dissents from the inclusion of interest in the backpay obligation for the reasons stated in the dissent in the Isis Plumbing case. 662353-63-vol. 138-69 1076 DECISIONS OF NATIONAL LABOR RELATIONS BOARD INTERMEDIATE REPORT AND RECOMMENDED ORDER STATEMENT OF THE CASE This case was heard at Los Angeles, California, on December 7, 8, 13, 14, 19, and 20, 1961 before Trial Examiner Martin S. Bennett. The complaint' alleges that Respondents, Liberty Electronics Corp. and Flight Electronic Supply Corp., herein called Liberty and Flight, had engaged in unfair labor practices within the meaning of Section 8(a)(3) and (1) of the Act. More specifically, it alleges that Respondents, on August 30, discharged 11 Liberty and 6 Flight employees who had commenced a strike on August 29, 1961 The Liberty employees are Kenneth Gene McBride, Valerie E. Glover, Glen T. Harbeck, Esther Gallegos, Rene L. Thezan, Gwendaline Lyrics, Irene Davis, Betty Fletcher, Jackie Jackson, Fred Martinez, and Alice Miller. The Flight employees are Shirley A. McCright, Jean Marie Donahue, Jacqueline King, Margie Harbeck, Elvin E. Talley, and Roger B. Williams. Oral argument at the close of the hearing was waived and briefs have been received from all parties.2 Upon the basis of the entire record in the case, and from my observation of the witnesses, I make the following: FINDINGS OF FACT I. THE BUSINESS OF RESPONDENTS Liberty Electronics Corp. and Flight Electronic Supply Corp. are commonly owned and controlled California corporations which maintain their principal offices and places of business on adjacent premises in Inglewood, California, where they are engaged in the assembly and distribution of electronic components. During the year prior to the issuance of this complaint, each corporation received goods and materials valued in excess of $50,000 which were shipped to it directly from points outside the State of California. The record demonstrates that these corporations are one integrated employer. Liberty handles five lines of electronic components and Flight handles two other lines, all in the same general category. Irving Zeiger is the central and controlling figure of these companies, owning more than 50 percent of the stock. He is the president and chief executive officer of both and his wife is their vice president; more- over, both concerns have the same secretary-treasurer. These officers are also the board of directors for each corporation and Zeiger normally fashions labor relations policies for all. Frederick Corrick is accounting supervisor at Liberty and is also supervising accountant at Flight. There are two other affiliated corporations, one of which is identified herein as Orbit. Corrick coordinates all four concerns, is general supervisor of all, and is also accounting supervisor of all. The office staffs of these four firms are under his direction and he spends most of his time at the Liberty office. The record discloses that Flight, Liberty, and Orbit are in close physical proximity. In at least one case during the strike described below, Flight work was done for 2 days on Orbit premises and the employee was thereafter temporarily transferred to Flight. Norman Jones, who plays a major role herein, was retained as a labor relations consultant to handle the dispute involving Liberty and Flight and it is clear that one single uniform policy was applied to the employees of both concerns. I find that the operations of Respondents affect commerce within the meaning of Section 2(6) and (7) of the Act and that it would effectuate the purposes of the Act to assert jurisdicition herein. H. THE LABOR ORGANIZATION INVOLVED Warehouse Processing & Distribution Workers' Union, Local 26, International Longshoremen's and Warehousemen's Union, is a labor organization within the meaning of Section 2(5) of the Act. 'Issued October 29, 1961, and based upon a charge and amended charge filed Septem- ber 22 and October 12, respectively, by Warehouse Processing & Distribution Workers' Union, Local 26, International Longshoremen 's and Warehousemen 's Union, herein called the Union. The corporate names of Respondents appear as amended at the hearing 2 Respondents have also submitted a reply brief which the General Counsel has moved to strike. As the Rules and Regulations of the Board make no provision for this, it has not been considered. The motion to strike is hereby granted and the document is ordered transferred to the rejected exhibit file. LIBERTY ELECTRONICS CORP., ETC. 1077 III. THE UNFAIR LABOR PRACTICES A. The issue; sequence of events Employees of Liberty and Flight jointly commenced a strike for union recogni- tion on August 29, 1961. The issue here is whether Respondents, pursuant to a decision made on August 29, terminated and discharged 17 strikers on August 30, 11 at Liberty and 6 at Flight, or whether Respondents merely paid them their accumulated wages allegedly pursuant to the requirements of California law but did not terminate their employment. The Union commenced organizational activity among the employees of Respond- ents in mid-August 1961, and ,many employees of both concerns signed up. On August 28, the Union sent a night telegram to Respondents wherein recognition was requested. International Representative Chester Meske and other union representa- tives met with President Zeiger of Respondents at approximately 9 a.m. on Tuesday, August 29, and Zeiger acknowledged receipt of the wire. The union representatives offered to prove their majority by a card check but Zeiger refused, claiming, as Meske testified, that he wanted "some Government agency to conduct an election." The union representatives immediately telephoned the Regional Office of the Board as well as the California State Conciliation Service. They then told Zeiger that either of these agencies could hold an election in 1 or 2 weeks if Zeiger consented to it. The details of the consent election, including unit and elegibility list, were ex- plored and the parties were in agreement thereon, although not on the date of an election. In fact, Zeiger stated that he had no objections to a single unit of Flight and Liberty employees. He then insisted that he would not agree to a consent election either under the auspices of the Board or the State agency. Immediately thereafter, Meske met with the employees of both plants in the street adjacent to the plants and accurately reported Zeiger's refusal to consent to an election. After some discussion, a secret ballot was taken and the employees voted to strike unless Zeiger either agreed to recognize the Union or to the holding of a consent election. An employee committee entered the plant and Meske reported the decision to Zeiger. The latter replied that he would not agree to an election and that he would not recognize the Union. Zeiger also stated that he wanted 1 week to think it over, but that under no circumstances would he agree to an election. In specific references to the strike threat, Zeiger added, "If that's the way you want it, be my guest." Meske accepted the challenge and told Zeiger that he left the employees no alternative but to strike. The strike commenced at once and picket lines were set up at both plants shortly before noon. Consultant Jones was retained by Respondents at 2 or 2:30 p.m. that day, August 29. He was given full control over Respondents' labor relations with authority to discharge, although he denied herein that anyone was discharged. In addition, Jones took personal charge of Respondents' records pertaining to the strikers. He testified that he did so because an arbitrator had once resolved a dispute adversely to a former client because of incomplete records. He stressed to Accountant Corrick, as well as to the latter's subordinates, the importance of keeping records concerning the strikers. Jones concluded that the most important records would be the payroll ledger sheets and the original employment application of each striker. He promptly instructed Accountant Corrick to make entries on the strikers' payroll ledger cards as to their status in the last pay period during which they performed work. Jones stressed to Corrick the importance of accurate entries on these payroll ledger cards and on company records. Jones arranged for his personal access to these recoids and, on a number of occasions removed them to areas in Respondents' buildings where he could and did work on them privately. The record discloses that the employees of both plants are paid by check every Friday. The next payday would have been Friday, September 1. The checks distributed at Flight normally reflect work performed during the current week up to and including Friday. At Liberty, there is a 1 week's wait and checks are issued on Friday for the week ending on the previous Friday. I find that Respondents arrived at a decision concerning the strikers on the after- noon of August 29, 1961, shortly after Jones was retained. Thus, Accountant Cor- rick testified that he instructed Bookkeeper Elizabeth Heagren of Flight on August 29 as to the notations to be placed on the payroll ledger cards of the Flight strikers. Jones testified about similar instructions to Heagren on August 31. Corrick further testified that he made notations on the Liberty payroll ledger cards pursuant to instructions from Jones given to him on the afternoon of August 29 and on the morning of August 30. These notations on both sets of ledger cards are considered hereinafter. 1078 DECISIONS OF NATIONAL LABOR RELATIONS BOARD Corrick later testified that he received his first instructions from Jones at a meet- ing on the afternoon of August 29; that they held a telephone conversation later that day; and that on August 30 he received a letter, described hereinafter, wherein his instructions were summarized. These instructions treated with the paychecks to be mailed to the strikers and the accompanying statements. He also testified that Jones instructed him during the telephone talk that "we must pay the people" and to send out certified paychecks "tomorrow [August 30].1 13 On August 30, Bookkeeper Heagren, pursuant to instructions from Jones and Corrick, sent letters, identical except for the sums of money set forth therein, to the seven strikers together with paychecks? That to striker McCright stated: "En- closed herewith is a check in the amount of $84.49, that is all monies due you as of August 30, 1961." Flight employees annually accrue 5 days of sick leave and at the end of the year are paid for the unused portion thereof. The reference in the letter to "all monies due" is to the fact that S of the 6 received sums which included accrued sick leave: 4 were paid for 3 days of sick leave, and another was paid for 1 day. On the same day, Corrick personally sent letters and paychecks to 10 of the 11 Liberty employees named in the complaint, excluding Gallegos; these were iden- tical but for names and amounts due. That to Martinez is in evidence and stated: Enclosed herewith is a check in the full amount of $58.14, that is full pay- ment of all monies due to you as of this date. The sick leave, paid to you in advance, was pro-rated and deducted from the amount you have received in the enclosed check .5 The above language stems from the fact that the sick leave policy at Liberty differs from that at Flight. As set forth, the workweek at Flight ends on Friday and payday is each Friday for work through that day. Early in August, Liberty abandoned an identical policy and instituted a delayed payday, still on Fridays, for work performed through the previous Friday. In order to avoid a 1 week hiatus with no paychecks, employees of substantial tenure received their regular checks on this particular Friday, these reflecting advance payment of 5 days of sick leave. In reference to the above statement mailed to the strikers, Corrick testified, "When they left . . . short of the year, which would have entitled them to the full five days . we deducted" a proportionate amount. He elsewhere put it that "we had paid them in advance and we made the deduction for that amount that they had been paid over what they would have been entitled to." This deduction, it is clear, covered sick leave paid in advance for a substantial period subsequent to August 29. No letter was sent to Esther Gallegos who had commenced a 2-week vacation on August 28 and was due back at work on September 12. According to Corrick, it was not sent because Respondents did not know "whether she was involved or not." On or about September 11, Foreman Marvin Hanich telephoned Gallegos, as the latter uncontrovertedly testified, and asked if she was returning to work. Gallegos replied that she had signed a union card and was "going with the rest of the people." I find that she then joined the strikers. Inasmuch as I find hereinafter that the other strikers were discriminatorily discharged on August 30, it is further found that she became an unfair labor practice striker as of September 11, 1961. It is clear and I find that as of September 11, in view of Hanich's offer, that she had not been re- placed and that her job was open. Jones testified that on September 9, a foreman, apparently Hanich who did not testify, told him that he had asked Gallegos if she was returning to work and that Gallegos had replied in the negative. Jones then marked her payroll ledger card "Being replaced and for economic reasons." This meant that it had not been deter- mined if her job would be filled due to retrenchment. Whether or not this conversa- tion took place on September 11 or 9, I further find for the reasons stated hereinafter that when Gallegos disclosed for the first time that she was joining the other strikers, S Jones in general admitted having a conversation with Corrick at the plant as well as a telephone conversation later that day on August 29. In the talk at the plant, he referred to State law allegedly requiring wage payments to strikers on the following pay- day. He also testified that he told Corrick in the telephone conversation to send out the checks on the next payday, September 1, and stressed the importance of accurate ledger entries. In view of subsequent events, I credit Corrick as to the day the checks were to be sent out. * Only six are named in the complaint. The General Counsel has not proceeded in the case of the seventh. 5 All emphasis is added unless otherwise indicated LIBERTY ELECTRONICS CORP., ETC. 1079 Respondents treated her in precisely the same manner as they had the others and discharged her prior to her replacement. On September 20, the Union sent the following telegram, signed by its secretary- treasurer, to Respondents: This is to advise that our strike at Liberty and Flight Corporations has been called off and terminated on Wednesday, September 20, 1961 at 59:30 P.M. On behalf of the following named employees, we hereby unconditionally offer to return to work: Liberty Electronics Corp. Flight Electronic Supply Corp. Kenneth Gene McBride Irene Davis Shirley A. McCright Valerie E. Glover Betty Fletcher Jean Marie Donahue Glen T. Harbeck Jackie Jackson Jacqueline King Esther Gallegos Fred Martinez Margie Harbeck Rene L. Thezan Alice Miller Elvin E. Talley Gwendaline Lynes Roger B. Williams They will present themselves ready for work no later than Friday, Septem- ber 22, 1961 at 8:30 A.M. Please advise me immediately of your acceptance of this offer by the above named employees. Striker Rene Thezan of Liberty reported at the plant on the morning of September 22. He was joined by other strikers including Fred Martinez of Liberty and Margie Harbeck and Shirley McCright of Flight and the group was referred to Jones who was on the Liberty premises. Jones appeared on the scene with a bundle of enve- lopes and asked them to call out their names. As they did so, Jones gave each an envelope containing two employment applications with the individual's name on it. These had been prepared for all the strikers and Jones testified that all but four, Williams, Talley, Donahue, and King appeared on this occasion. The group had learned from other strikers who had appeared earlier that morning that these envelopes contained employment applications. Martinez then asked, as he testified and I so find, "What are these for? We have jobs here." Jones then replied, "You terminated yourself when you walked out." Jones further stated that there were no jobs available. Thezan and Harbeck substantially corroborated the testimony of Martinez as to the above statement by Jones. Thezan specifically denied that Jones said they had been replaced, He was also asked if Jones said their jobs had been abolished and replied that Jones stated they "had terminated ourself [sic] when we checked out." Harbeck similarly corroborated Martinez. She testified that Martinez had pro- tested that they had jobs to which Jones replied, "No, we terminated ourselves when we punched out [on August 291.1 16 I find that all of the complainants ex- cept four unconditionally requested and were denied reinstatement on Septem- ber 22. As Respondents had applications as new employees ready for these four, I find that it would have been futile for them to have appeared at the plant that day. In any event, they were named in the telegram sent to Respondents. B. Analysis and conclusions The central issue, as indicated, is whether Respondents pursuant to a decision made on the afternoon of August 29, 1961, permanently severed the employment of their striking employees on August 30, or whether Respondents merely paid them their accumulated wages and maintained their employment status. The evidence strongly preponderates in favor of the former view for the following factors. 6 Jones denied saying that the strikers had terminated themselves or had been termi- nated . He testified about his remarks to a Mr. Harbeck and a female employee and denied telling them that they were terminated for walking off the job. However, this is manifestly another Harbeck and not the female Harbeck who testified herein. He identi- fied a second group including Tbezan and Martinez as appearing on the scene some 5 to 10 minutes later and claimed that be held a similar conversation with them. He allegedly told Martinez that there were no jobs available, that they "had all been re- placed" and that they would be considered for employment as new employees. I have credited the mutually corroborative testimony of Harbeck, Martinez, and Thezan herein. They impressed me as honest witnesses who were endeavoring to tell the truth as they recalled it. As will appear, there is strong evidence herein that the payroll records of Liberty strikers have been doctored so as to remove from them an abbreviation of the word "terminated." Still other evidence, described hereinafter, detracts from the reliability of this testimony by Jones. Accordingly, it is not credited herein. 1080 DECISIONS OF NATIONAL LABOR RELATIONS BOARD (1) Striker Rene Thezan of Liberty received a telephone call on the evening of August 29 from Foreman Marvin Hanich. As Thezan uncontrovertedly testified, Hamch stated that he was calling with regard to Thezan returning to work. Thezan replied that as a union member he could not cross a picket line. Hanich offered to "guarantee" Thezan his job, adding that "they were only calling two people and the rest were out." Hanich's supervisory status and his hiring authority are not disputed herein. (2) On or about September 6, Striker Gwendaline Lynes of Liberty telephoned Hanich from the home of striker Irene Davis. In order to ascertain their precise status for the unemployment compensation office, Lynes, as she uncontrovertedly testified, asked Hanich, "Are we fired?" Hanich replied in the affirmative. The record demonstrates that as of that date Respondents were still recruiting and hiring new employees. (3) Respondents took other moves which reflect an attempt to permanently sever the employment relationship of the strikers. A petition for an election had been filed by the Union in Case No. 21-RC-7348, prior to the filing of the instant charge. In connection therewith, Jones, on September 12, submitted a list of employees who were on the payroll as of August 30 and therefore were allegedly in the appropriate unit. The list included the strikers. In a subsequent letter sent on September 19, Jones submitted revised employee lists from which the names of the strikers were omitted. He stated in this letter: In reviewing our records, we find that the lists sent you on that day con- tained all the names of employees that had worked during the named pay periods. However, we would contend that the employees named on the en- closed pages were the only employees on the payrolls the date of the ending of such payroll periods. As noted, the end of the payroll period at both plants was on Friday, September 1, and not on Wednesday, August 30. It therefore follows that Respondents were taking the position that the strikers were no longer on the payroll as of the day after the strike began, despite the fact that Jones, an experienced labor relations consultant, must have known that the strikers remained employees under the Act. (4) Jones claimed that section 209 of the California Labor Code, requires that strikers be paid their wages on the next regular payday. Compliance with this pro- vision of the code would have required that the checks be issued at the plant on Friday, September 1. For the code states only that the unpaid wages "shall be- come due and payable on the next regular payday." It hardly needs stating that an employer is understandably reluctant to finance a strike by getting paychecks into the hands of employees in advance of a payroll date. This view as to the timing is buttressed by Respondents' treatment of the sick leave situation. The Flight strikers were paid the annual sick leave due them, as prorated, and the prepaid sick leave was deducted from the checks of Liberty strikers. A note of finality is readily apparent in this action and from the specially prepared letter sent to Liberty strikers which refers to the checks as being "in full payment of all monies due you." This, of course, is consistent with the statement of Hanich to Thezan on August 29 that Respondents were calling back only two employees and that the rest were "out." (5) Respondents maintain identical individual payroll ledger cards and those of the strikers are in evidence. All of them bear the longhand entry "TEMP FC" beside the payroll entry for the week in which the strike began. There are some variations in these. The Flight entries are all in ink; the "TEMP" is in lowercase and in script and the "FC" is printed in capitals. On one card there is a period after "TEMP" and on all but one there is a period or a dash after the "F." These entries on the Flight cards were made by bookkeeper Elizabeth Heagren, who did not testify, pursuant to instructions from Jones and Accountant Corrick. The Liberty cards received much attention herein. The entries on the 11 Liberty cards were made in pencil by Corrick "personally" on specific instructions from Jones. All of these bear the notation "TEMP FC" in print although in two cases the "TEMP" is in script. Certain expert testimony concerning erasures under these entries on the Liberty cards is considered hereinafter. According to Jones, this entry on both series of cards is intended to stand for "temporary off payroll, final check " It is immediately apparent, on Respondents' theory, that this entry makes no abbreviation for the two words "off payroll." The absence of such an abbreviation lends support to the expert testimony discussed below that the entry was originally "TER FC," reflecting the phrase "terminated final check." LIBERTY ELECTRONICS CORP., ETC. 1081 Corrick testified herein that he made the entries in their present form on these Liberty cards on August 29 or August 30, immediately after the checks had been prepared. There were, he claimed, no changes in these entries after he made them. While Respondents concede that there are erasures on these cards, these are mani- festly, and I so find, other erasures made by a bookkeeper who, in October, placed numerical totals in the wrong columns. Erasures of these were then made and the totals placed in the appropriate columns. I find that these latter erasures and the ensuing new entries were made in an area near the disputed entries but not in the identical location and that they relate to another topic. The record also discloses that a representative of the Regional Office interviewed Jones on October 3, 1961, and, according to Jones, was shown one of the Liberty cards. According to Jones, it then bore the entry which is now on it, namely, "TEMP FC." There are several factors which, aside from the expert testimony, indicate that the present entry on the payroll ledger cards does not truly reflect the actions which Respondents actually took. Thus, on September 29, Corrick wrote to the Regional Office concerning the matter. He testified here that Jones told him what to say in this letter. Corrick stated as follows, in part: ... On the payroll ending August 31st I closed out the striking persons pay records and sent them a check for all monies due them as required by the State Labor Code. I noted final check and terminated on their payroll cards. In his affidavit of October 3 to an investigator from the Regional Office, Corrick similarly stated as follows: At the time I made up the final checks for the striking employees I noted on their individual payroll records that they were final checks and that the employees were terminated, per Mr. Norman E. Jones' instructions. It should be noted that this affidavit, according to Corrick, purportedly reflects Jones' instructions to him. Jones also gave an affidavit on October 3 to the Regional Office. This stated as follows: I, Norman E. Jones, being first duly sworn, depose and say that on or about August 30, 1961, I instructed Mr. Frederick B. Corrick, Accounting Supervisor of Liberty Electronics Corp., to make out final payroll checks for the striking employees of Liberty Electronics Corp. and Flight Electronic Supply Corp., because the State Labor Code requires all monies must be paid individuals leaving work within 72 hours. Under California State Law, if a person is discharged from employment, they must be paid their full amount of monies due them before they leave the premises. In all other circumstances, such as a labor dispute, or voluntary termination, or layoff for lack of work, all monies due them are to be sent to their last address known to the Company. I told Mr. Corrick to note on their payroll voucher that these were final checks. I also told Mr. Corrick to note on their payroll record card that they were terminated because they were being replaced by other permanent employees.? Jones claimed that the Board representative on this occasion wished to use the word "discharge" and that Jones corrected him and replaced it with the word "terminated." In his testimony, Jones made a distinction between the terms. He described a discharge as reflecting a management decision to cut off the payroll one whose return is not desired. He viewed a terminated employee, on the other hand, as one who might conceivably be desired back by management. However, he later conceded, as is readily apparent and I so find, that the word "terminate" is broad enough to include a severance of the employment relationship undertaken by the employer. Jones claimed that had the word "terminated" been entered on the payroll ledger cards, it would have reflected neither his instructions to Corrick nor his advice to his clients. In view of this concession that a termination might be, in effect, as broad as a discharge, it is in order to consider the expert testimony as to what entries were originally on the payroll ledger cards. The reference to the 72-hour requirement is not in point . Section 201 of the Cali- fornia Labor Code requires that certain seasonal workers who are laid off shall be paid their wages within a reasonable time not to exceed 72 hours. Section 202 also provides that an employee who quits work and who does not have a written contract shall be paid his wages not later than 72 hours thereafter. Strikers, as indicated, are to be paid on the next regular payday. 1082 DECISIONS OF NATIONAL LABOR RELATIONS BOARD (6) In considering the expert testimony concerning the payroll ledger cards, it should be noted that neither Corrick nor Jones in their letters and affidavits quoted above made any differentiation between the employees of Flight and Liberty. True, the evidence of alteration of payroll records described below applies only to Liberty. However, the statements of Jones and Corrick demonstrate that the strikers of both concerns were treated alike and, in view of the integration of these concerns, the inference is well warranted that such was the case. Testimony was presented herein by John J. Harris, a duly qualified examiner of questioned documents. No challenge was made of his qualifications, and his testimony as to his tests and observations is uncontroverted and unassailed. He examined for erasures; writing over; and spacing the Liberty payroll ledger cards in the area of the penciled notation "TEMP FC." His examination was made by the naked eye; with a microscopic light; and then with a stereoscopic microscope. These payroll ledger cards are identified herein as General Counsel's Exhibits Nos. 5A through K, inclusive. These are the cards of the Liberty strikers named in the complaint, that of Gallegos being Exhibit No. 5D. In addition, the witness also prepared at the hearing what has been received in evidence as Charging Party's Exhibit No. 5, wherein the witness illustrated, by use of different colored pencils, the markings on the paper resulting from the alleged erasure of letters and the subsequent placing in the area of different letters. This exhibit treated with General Counsel's Exhibits Nos. 5C, B, H, J, K, I, and G in that order. It is to be further noted that the witness set up his equipment in the hearing room and that he used it in explaining the various markings on the docu- ments. In fact, the exhibits were inspected thereunder by all counsel and me. With respect to Exhibits Nos. 5C, D, E, and F, an erasure was found in the space occupied by the letter "M" in TEMP. It was his opinion that the letter R had originally been written in the space where the M now is. This opinion was, inter alia, based upon the impression or embossing left in the paper from the erased original writing. Harris further testified that as to Exhibits Nos. 5C, D, E, and F, the letters "M" and "P" in TEMP had been written at a different time and not in continuity with the letters "TE" and "FC." He relied herein on the fact that the pencil impressions of these two letters were darker and had wider lines than those of the other letters; that in general there were no erasures where the P is now located; and that the P was crowded in and unnaturally close to the M and to the F. As to General Counsel's Exhibits Nos. 5B, H, J, and K, he found erasures in the area of the letter M. He concluded as to Exhibit No. 5B that because the M and the P were softer than the FC and because the P was crowded, the M and P were not written in continuity with the other letters and were written at a later time. In essence, the same conditions were found with respect to Exhibits Nos 5H, J, and K. He found the embossing on the erasures to be consistent with the letter R although not as complete as in the cases of Exhibits Nos. 5C, D, E, and F As to Exhibit No. 51, he also found an erasure under the M in TEMP; noted that there was a mixture of script and print in the entry; and concluded that the entry was not made entirely by one person . As to Exhibit No. 5G, he detected erasure in the area of TEMP but could not discern any particular letter. As to Exhibit No. 5A, he detected erasures in the area of the M. He also testified that it was his opinion, based upon all the exhibits, that the TE and the FC are consistent and that the M and P are different, either through crowding or because of a different intensity of the pencil, or both. The foregoing warrants the conclusion that the General Counsel's Exhibit No. 5 series of exhibits originally bore the entry TER FC, this standing for "terminated final check" consistent with the various statements given by Jones and Corrick, as quoted above. Moreover, as noted, Jones conceded that the word "terminated" can include a permanent severance of the employment relationship which is under- taken by the employer, as is the fact. It inevitably follows that the alteration of the records was undertaken to eliminate what Respondents conceived to be their damaging or incriminating character and the inference is warranted that this demon- strates guilty knowledge on the part of Respondents. (7) The record warrants the finding that what Respondents actually undertook and did carry out was the severance of the strikers in contemplation of hiring re- placements thereafter rather than by the act of hiring replacements. While Respondents did adduce evidence of several hirings on August 30 and one on August 29, the great majority of the hirings came thereafter. And there is evidence that Respondents initially made temporary arrangements to carry on the work. Thus, an employee of Orbit, Davis, performed Flight work at Orbit, after about 2 days was transferred to the Flight payroll, and on September 13 or 14 went back to the Orbit payroll. And 10 of the 15 office employees of Liberty were temporarily assigned to the plant to process orders during August 29, August 30, LIBERTY ELECTRONICS CORP., ETC. 1083 and perhaps on August 31. Jones testified at several points that the transfer of Davis from Orbit to Flight was permanent. In view of the time sequence and his prompt return to Orbit, I find that such is not the fact and that the transfer was temporary.8 (8) The true motivation of Respondents is otherwise disclosed. During the strike, Jones handled the payroll ledger cards on a number of occasions and made entries which purportedly reflected personnel action. Jones testified at one point that on September 19, Respondents decided to stop all hiring after September 21. This allegedly reflected a decision to operate with three to five less personnel than at the start of the strike and was predicated upon economic factors, namely a reduction in business caused by the strike. The card of Liberty striker Alice Miller bears the notation made by Jones on September 9, "Being replaced & economic reasons." This indicates, according to Jones, that as of September 9 either Miller was in the process of being replaced or that, because of economic factors, her position was one of those which might be left unfilled. It is clear, however, that the decision had not been made as of that date. Miller's original employment application also bears a notation identical with that on her payroll ledger card on September 9 and further has the entry "RE- PLACED 9-19-61." 9 Jones conceded that he did not know as of that date whether Miller had been replaced "by name and classification." He did not handle this record again until September 19 when he marked the card "replaced." Yet, he admitted that had Miller applied for work on September 10, she would have been considered "as prob- ably a new employee, and if there was a job opening we would use her." I find, therefore, that, despite this razzle-dazzle of notations, (a) Respondents do not contend that Miller had been replaced on her job abolished prior to September 19; (b) the decision on job abolition was not made earlier than September 19; and (c) as of September 10 Miller would have been considered only as a former employee who had been discharged and who was applying for a job as a new employee. (9) There is yin evidence a 2-page letter, the pages stapled together, dated August 29 and allegedly sent on that date to Corrick by Jones. On page 1, reference is made to their prior talks that day concerning the strike, as described above. Jones stated in the letter that paychecks are normally issued on Fridays and directed that checks be sent so as to reach strikers on the payday. He then set forth the notice which was to accompany the checks. It is identical to that sent to Liberty strikers and appears above. He noted that the form notice stated that prepaid sick leave was being deducted and that this would "take care of the problem you face because of the advance in sick leave pay." He stated that President Zeiger wanted to continue operations and "we will replace the striking employees with permanent employees and transfer some from the other companies on a permanent basis." It may be noted at this point that the record discloses that there is no evidence of transfer of employees from the other companies on a permanent basis. Indeed, 10 Liberty office workers and I Orbit employee were brought in on a temporary basis only. On page 2 of the letter, Jones states, "I do not know now" if all the strikers will be replaced because of the drop in business; states that he is enclosing a copy of the State Labor Code with attention directed to section 209 thereof; and instructs Corrick to write "Temp. F C." on the payroll records. He further stated that this means "temporary off payroll, final check " I have previously set forth the documentary evidence wherein the word "termi- nated" was used by both Corrick and Jones. There is an intrinsic lack of logic in the very use of the indicated phrase "TEMP FC." to mean what Jones contends it means. The convincing testimony from the examiner of questioned documents In view of the fact that the decision to terminate the strikers was arrived at on August 29 and this was followed by the letters of August 30, it is not material that there was one new hire on August 29 and several on August 30. Moreover, Respondents' records disclose that six August 30 hirings at Liberty were on a temporary basis Jones, it is noted, refers to replacements on August 81 Indeed, Charging Party's Exhibits Nos. 51 and J, the ledger cards, refer to replacements of these two employees no earlier than August 31. And there is, of course, the fact that Foreman Hanich made it clear to strikers Thezan and Lynes on August 29 and September 6, respectively, that their em- ployment relationship was permanently terminated. This, too, is consistent with the statements made by Jones on September 22 to the returning strikers, as found above. As elsewhere indicated, Respondents as of September 19 had not decided on their ultimate complement. It is not clear whether this reads September 19 or September 17 1084 DECISIONS OF NATIONAL LABOR RELATIONS BOARD impels the conclusion that the August 29 letter, or at least page 2 thereof, was actually written at a later date as a self-serving document to support the changed payroll ledger entries. And although there is no evidence that the ink entries on the Flight series of payroll ledger cards were tampered with, those records, it is interesting to note, were not displayed to the Board investigator on October 3 as were the Liberty records. Moreover, the bookkeeper who allegedly made those entries did not testify herein and there is no claim that she was unavailable. And there is no evidence as to precisely when they were actually made except for the testimony of Jones that he saw Heagren make these entries on August 31 CONCLUSIONS To sum up, the statements by Foreman Hanich to strikers Thezan and Lynes demonstrate that they had been discharged and were out of a job. As Hanich put it to Thezan, "two people" were being called back and "the rest were out." Respond- ents' amended correspondence in the representation case further demonstrates that Respondents regarded the strikers as no longer on the payroll. The final account- ing of the respective sick leave pay systems is consistent not with an attempt to get payroll checks to the strikers as required by law, but rather with an effort to make a final accounting with a terminated employee. There is also the fact that Corrick wrote to the Regional Office and referred to marking payroll records with the notation "terminated." He made a similar statement to an investigator from the Regional Office. Even Jones in his affidavit referred to the employees as being "terminated." Actually, taking Respondents' position at face value there is an inherent conflict in the phrase that is used. The concept of giving a final check to someone who is only temporarily off the payroll does not hang together, because a check which is due to someone on the payroll and who has not been terminated is hardly a final check. Moreover, there is manifestly no provision in this abbreviation, on the theory ad- vanced by Respondents, for the words "off payroll." This serves only to further buttress the belief of the expert witness that the phrase originally read "TER FC"; it then reflects a decision that the employee was terminated and accordingly had been sent his final check. And the conclusion is warranted on this record that Jones well knew the implica- tions of using the word "terminated." It is clear that a termination may result either from employer or employee action. An employee obviously may terminate himself by resigning from his employment and it is, of course, not to be equated with a discharge. On the other hand, an employer may effect a termination of the employee, thus putting an end to the employment relationship This is identical with a discharge and it is precisely what Respondents did in this case I find, there- fore, that Respondents on August 29 decided to terminate and permanently sever the employment relationship of their strikers and that on August 30, pursuant to this decision, letters to this effect were sent to the strikers I find that Respondents thereby discharged the complainants, except Gallegos whose discharge came later on September 9 or 11 , but for the same reason. It is true that an employer has the right to continue his business and protect himself against an economic strike by filling places left vacant by strikers The Act, however, forbids an employer to terminate the employment of strikers merely be- cause they went out on strike. It is well established that it is an unfair labor practice to discharge economic strikers prior to the time their jobs have been filled. I find that this is precisely what Respondents did here. Accordingly, it is found that by such conduct Respondents have discriminated with respect to the hire and tenure of those named in the complaint and have thereby engaged in unfair labor practices within the meaning of Section 8(a)(3) of the Act. I further find that by such conduct Respondents have interfered with, restrained, and coerced their employees in the right to engage in concerted activities as guaranteed by Section 7 and have accordingly engaged in unfair labor practices within the meaning of Section 8(a)(1) of the Act. N.L R.B. v. Mackay Radio & Telegraph Co., 304 U S 333; N.L R R. v Globe Wireless, Ltd, 193 F 2d 748 (C A 9); N.L.R B. v. Buzza-Cardozo, 205 F. 2d 889 (C.A. 9). cert denied 346 US. 923: N.L R B. v. Cowles Publishing Company, 214 F 2d 708 (C A 9). cert denied 348 U S. 876; and European Cars Ypsilanti, Inc, 136 NLRB 15959. IV THE EFFECT OF THE UNFAIR LABOR PRACTICES UPON COMMERCE The activities of Respondents set forth in section TTI, above, occurring in connec- tion with their operations described in section I. above. have a close. intimate, and substantial relation to trade, traffic, and commerce among the several States. and LIBERTY ELECTRONICS CORP ., ETC . 1085. tend to lead to labor disputes burdening and obstructing commerce and the free flow thereof. V. THE REMEDY It has been found that Respondents have respectively discriminated with respect to the hire and tenure of employment of the 17 employees named in the complaint. The record discloses that Gallegos was offered a job on November 15 but refused it when she learned that she was to be considered a new employee and would re- ceive a lesser rate of pay than that she had previously enjoyed. I find therefore that this was not an offer of her former or substantially equivalent position. I shall recommend that Respondents offer to the employees named in the attached Appendix immediate and full reinstatement to their former or substantially equiv- alent positions, without prejudice to seniority or other rights and privileges. See The Chase National Bank of the City of New York, San Juan, Puerto Rico, Branch, 65 NLRB 827. I shall further recommend that Respondents respectively make them whole for any loss of pay suffered by reason of the discrimination against them. The General Counsel has urged that interest at 6 percent be allowed on the back- pay award and has submitted a detailed statement in support thereof. At law, the element of loss caused by the passage of time during which funds have been wrong- fully detained is regularly remedied by an award of interest on the principal sum, thus measuring the value of the loss. The request also seems appropriate in equity so that there will not be an unjust enrichment of the wrongdoer to the ensuing detriment of the discriminatee. The request has therefore been granted. Accordingly, it is recommended that said loss of pay, plus interest, based upon earnings which each normally would have earned from the date of the discrimina- tion, less net earnings, be computed on a quarterly basis as established by the Board in F. W. Woolworth Company, 90 NLRB 289. See N.L.R.B. v. Seven-Up Bottling Company of Miami, Inc., 344 U.S. 344. As set forth above the date of the discrimination is August 30, 1961, in the case of all the complainants except Gallegos in whose case it was either September 9 or 11, 1961. Viewed realistically, a striker who is discharged for engaging in a concerted activity wherein union recognition is sought is in no different a position than an employee who has been discharged for engaging in union activities. In both cases, employment has been lost because of equally unlawful conduct by the employer. In logic, therefore, backpay should commence with the date of the discrimination and it is so recommended. Of course, backpay is customarily with- held for periods when employees incur willful losses or have removed themselves from the employment market, this including engaging in picket line activity, but all this falls into the compliance aspect of the case where the precise amount of backpay is determined. Inasmuch as the employer by its unlawful conduct has brought about the unemployment of these discharges, equity dictates that backpay should commence with the date of the discharge and not with the date of the application for reinstatement. Surely, the burden to remedy unfair labor practices should initially rest with the wrongdoer rather than with the innocent victim. Moreover, there is nothing to show to what extent the various discriminatees re- moved themselves from the employment market The Board has in effect recognized this in the case of discriminatees who there- after strike or join a strike in protest of the discrimination; backpay is then awarded from the date of the discrimination and the period of strike activity is not tolled. See, e.g, Ozark Hardwood Company, 119 NLRB 1130, and West Coast Luggage Co., 105 NLRB 414. I deem recent language by the Board, in another con- text critical of tolling backpay, to be appropriate. It stated ". . . the particular respondent, who is responsible for the wrong committed, is, to the extent of the tolling relieved of its obligation to restore the discriminatees to the status quo ante and thus is permitted to profit by its violations of the Act-the respondent's bene- fit being both in the monetary sense and in the advantage it may enjoy by reason of the delay in returning unwanted employees to the plant " A.P.W. Products Co., Inc., 137 NLRB 25. These discharges and the circumstances under which they were made demonstrate the need for an order that is coextensive with the threat of future violations, and.I shall therefore recommend a broad cease-and-desist order. 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 Warehouse Processing & Distribution Workers' Union , Local 26, International Longshoremen 's and Warehousemen 's Union , is a labor organization within the meaning of Section 2(5) of the Act. 1086 DECISIONS OF NATIONAL LABOR RELATIONS BOARD 2. Liberty Electronics Corp. and Flight Electronic Supply Corp. are employers within the meaning of Section 2(2) of the Act. 3. Respondents Liberty and Flight have engaged in unfair labor practices within the meaning of Section 8(a)(3) and (1) of the Act by discriminating with respect to the hire and tenure of the 17 employees named in the attached Appendix. 4. The aforesaid unfair labor practices are unfair labor practices affecting com- merce within the meaning of Section 2(6) and (7) of the Act. RECOMMENDED ORDER Upon the basis of the foregoing findings of fact and conclusions of law, it is recommended that the Respondents, Liberty Electronics Corp. and Flight Electronic Supply Corp., Inglewood, California, their officers, agents, successors, and assigns, shall: 1. Cease and desist from: (a) Discouraging membership in Warehouse Processing & Distribution Workers' Union, Local 26, International Longshoremen's and Warehousemen's Union, or in any other labor organization of their employees, by discharging employees or by discriminating in any other manner in regard to hire or tenure of employment, or any term or condition thereof, except to the extent permitted under Section 8(a)(3) of the Act. (b) In any other manner interfering with, restraining, or coercing its employees in the exercise of their right to self-organization, to form labor organizations, to join or assist the above-named or any other labor organization, to bargain collectively through representatives of their own choosing, to engage in concerted activities for the purpose of collective bargaining or other mutual aid or protection, and to refrain from any or all such activities, except to the extent that such right may be affected by an agreemnt requiring membership in a labor organization as a condition of employment, as authorized in Section 8(a) (3) of the Act. 2. Take the following affirmative action which is deemed necessary to effectuate the policies of the Act: (a) Offer to the 17 employees named in the attached Appendix immediate and full reinstatement to their former or substantially equivalent positions, without prejudice to seniority or other rights and privileges, and make them whole for any losses suffered by reason of the discrimination against them in the manner set forth above in the section entitled "The Remedy." (b) Preserve and, upon request, make available to the Board or its agents, for examination and copying, all payroll records, social security payment records, time- cards, personnel records and reports, and all other records necessary to determine the amount of backpay due under the terms of this Recommended Order. (c) Post at their respective plants at Inglewood, California, copies of the attached notice marked "Appendix." 10 Copies of said notice, to be furnished by the Regional Director for the Twenty-first Region, shall, after being signed by a representative of Respondents, be posted by them immediately upon receipt thereof, and be maintained for a period of 60 consecutive days thereafter, in conspicuous places, including all places where notices to employees are customarily posted. Reasonable steps shall be taken by Respondents to insure that said notices are not altered, defaced, or covered by other material. (d) Notify the Regional Director for the Twenty-first Region, in writing, within 20 days from the date of receipt of this Intermediate Report and Recommended Order, what steps they have taken to comply herewith.ll 110 In the event that this Recommended Order be adopted by the Board, the words "A De- cision and Order" shall be substituted for the words "The Recommended Order of a Trial Examiner" in the notice . In the further event that the Board's Order be enforced by a decree of a United States Court of Appeals, the words "Pursuant to a Decree of the United States Court of Appeals, Enforcing an Order" shall be substituted for the words "Pursuant to a Decision and Order." 11 In the event that this Recommended Order be adopted by the Board, this provision shall be modified to read * "Notify said Regional Director, in writing, within 10 days from the date of this Order, what steps Respondents have taken to comply herewith." APPENDIX NOTICE To ALL EMPLOYEES Pursuant to the Recommended Order of a Trial Examiner of the National Labor Relations Board, and in order to effectuate the policies of the National Labor Rela- tions Act, we hereby notify our employees that: HERMAN BROTHERS PET SUPPLY, INC., ETC. 1087 WE WILL NOT discourage membership in or activity in behalf of Warehouse Processing & Distribution Workers' Union, Local 26, International Longshore- men's and Warehousemen's Union, or any other labor organization of our employees , by discriminating in any manner in regard to hire or tenure of employment , or any term or condition thereof, except to the extent permitted under Section 8 (a) (3) of the Act. WE WILL offer to the employees named below immediate and full reinstate- ment to their former or substantially equivalent positions , without prejudice to seniority or other rights and privileges, and we will make them whole for any loss of pay suffered as a result of our discrimination against them. Flight Electronic Supply Corp.: Shirley A. McCright Margie Harbeck Jean Marie Donahue Elvin E. Talley Jacqueline King Roger B. Williams Liberty Electronics Corp.: Kenneth Gene McBride Gwendaline Lynes Valerie E . Glover Irene Davis Glen T. Harbeck Betty Fletcher Esther Gallegos Jackie Jackson Rene L. Thezan Fred Martinez Alice Miller WE WILL NOT in any manner interfere with, restrain, or coerce our em- ployees in the exercise of their right to self-organization , to form labor organiza- tions, to join or assist the above-named or any other labor organization, to bargain collectively through representatives of their own choosing , to engage in concerted activities for the purpose of collective bargaining or other mutual aid or protection , and to refrain from any or all such activities, except to the extent that such right may be affected by an agreement requiring membership in a labor organization as a condition of employment , as authorized in Sec- tion 8 ( a) (3) of the National Labor Relations Act. All our employees are free to become or remain , or refrain from becoming or remaining , members of the above-named or any other labor organization. LIBERTY ELECTRONICS CORP. AND FLIGHT ELECTRONIC SUPPLY CORP., Employers. Dated------------------- By------------------------------------------- (Representative ) ( Title) This notice must remain posted for 60 days from the date thereof, and must not be altered, defaced, or covered by any other material. Employees may communicate directly with the Board's Regional Office, 849 South Broadway, Los Angeles, California, Telephone Number, Richmond 9-4711, Extension 1031, if they have any question concerning this notice or compliance with its provisions. Herman Brothers Pet Supply , Inc.; and Francis Herman, d/b/a Herman Brothers Bird Products ; and Leon Herman, d/b/a Herman Brothers Seed Merchants; and Julius J. Herman and Joseph M. Gondek. Case No. 7-CA-3376. September 27, 1962 DECISION AND ORDER On April 3, 1962, Trial Examiner David London issued his Inter- mediate Report in the above-entitled proceeding, finding that the Respondents had engaged in and were engaging in certain unfair labor practices and recommending that they cease and desist therefrom and take certain affirmative action, as set forth in the attached Interme- diate Report. Thereafter, the Respondents and the General Counsel 138 NLRB No. 104. Copy with citationCopy as parenthetical citation