Loggins Meat Co., Inc.Download PDFNational Labor Relations Board - Board DecisionsOct 9, 1973206 N.L.R.B. 303 (N.L.R.B. 1973) Copy Citation LOGGINS MEAT CO., INC. 303 Loggins Meat Co ., Inc.' and Amalgamated Meat Cut- ters and Butcher Workmen of North America, AFL- CIO, Local Union No. 540 . Case 16-CA-4908 October 9, 1973 DECISION AND ORDER BY MEMBERS FANNING, KENNEDY, AND PENELLO On February 9, 1973, Administrative Law Judge Henry L. Jalette issued the attached Decision in this proceeding. Thereafter, the Respondent and the Gen- eral Counsel filed exceptions and supporting briefs, and the Charging Party filed exceptions. Pursuant to the provisions of Section 3(b) of the National Labor Relations Act, as amended, the Na- tional Labor Relations Board has delegated its au- thority in this proceeding to a three-member panel. The Board has considered the record and the at- tached Decision in light of the exceptions and briefs and has decided to affirm the rulings, findings, and, conclusions to the extent consistent herewith. The Administrative Law Judge found 8(a)(1) and (3) violations in the 3-day suspension of Johnnie San- ders on July 28, 1972, and her discharge on August 18, 1972. We do not agree that the General Counsel has established by a preponderance of the evidence that the Respondent either suspended or discharged San- ders because of her union activity. The only evidence of union activity on the part of Sanders shown to have been known to the Employer is that on the day of the election, some 5 months before her suspension , Sanders wore a "Vote Yes" button .2 However, many of the other employees wore such buttons and no reprisals were taken against them. In finding that Sanders' suspension was discri- minatorily motivated, the Administrative Law Judge relies on Sanders ' testimony that after she had re- turned to work she was told by Plant Manager Parker that she had "harassed" three employees and named Linda Land as one of them. Elsewhere in her testimo- ny Sanders identifies Land as one of the employees "who, had slowed down on attending union meet- ings." Sanders made no inquiry of Parker as to the nature of the alleged harassment. Neither did she seek any explanation from Land. There is no evidence that Sanders had solicited Land in connection with the Union, or that she had engaged in contacting support- 1 The name of Respondent appears as amended at the hearing- 2 Sanders testified that she handed out six or seven cards between January and her termination The dissent refers to Sanders' solicitation of other employees to sign cards for the Union, and the Administrative Law Judge has found that this was the reason for Respondent's treatment of Sanders. But no evidence is recited to show Respondent's awareness of this activity. ers of the Union that seemingly had lost or were losing interest . TheAdministrative Law Judge draws the in- ference that when Parker spoke of harassment he had reference to solicitation in behalf of the Union.' He then proceeded to draw the further inference, based on the skeletal testimony that Land had slowed down in her attendance of union meetings, that Sanders was suspended by the Employer in the mistaken belief that she had been soliciting Land to renew her support of the Union. We view this as no more than speculation. Equally tenuous is the Administrative Law Judge's apparent theory as to Sanders' subsequent discharge. Sanders testified that at the time of her discharge she was told by Plant Superintendent Clarkson that "you have been heard to say you were going to slow down in your work and you did." Sanders made no reply to that accusation at the time. She, merely departed with- out saying anything further. However, at the trial in this proceeding she denied that she had engaged in any work slowdown. Based on Sanders' denial at the hearing, the Administrative Law Judge concluded that the Respondent was mistaken when it believed that Sanders had slowed down in her work. Because some employees had previously discussed, a work slowdown at a union meeting, the Administrative Law Judge perceived some connection between that union activity and Sanders' alleged work slowdown. However, according to the Administrative Law Judge, the employees had rejected the idea of a slow- down and there is no evidence that Respondent was even aware of the discussion of that topic at a union meeting. Nevertheless, he felt that Respondent's mis- taken belief regarding Sanders arose in a "context" of employees' union activities and concluded that the Burnup & Sims, Inc.,4 principle was applicable to this situation. We disagree. In Burnup & Sims, Inc., the Supreme Court stated: In sum, § 8(a)(1) is violated if it is shown that the discharged employee was at the time engaged in a protected activity, that the employer knew it was such, and that the basis of the discharge was an alleged act of misconduct in the course of that activity, and that the employee was not, in fact, guilty of that misconduct. It is clear in the instant case that Sanders was not 3 We believe the word harassment is capable of other interpretations than - union solicitations. Thus, although not mentioned in the Administrative Law Judge 's Decision, the record shows from Sanders' own testimony that, a few days before her suspension , it was brought to the Employer 's attention that she and another employee, Wanda Bennett, had engaged in an altercation arising out of Bennett's taking offense from remarks of Sanders with respect to another employee riding home with Mexicans and that "WAmte girls should leave Mexicans alone." 4379 U.S. 21, 23 (1964) 206 NLRB No. 31 304 DECISIONS OF NATIONAL LABOR RELATIONS BOARD engaged in a protected 'activity concurrently with Respondent's mistaken belief of misconduct. The connection between Sanders' earlier union activities and Respondent's subsequent belief that she had slowed down in her work is missing. Under Burnup & Sims there must coexist a protected activity and an employer's mistaken belief that the discharged em- ployee had engaged in misconduct "in the course of that activity." Moreover, unlike, the Administrative Law Judge, we are not persuaded that the discharge of an employ- ee at the start of the workday and without prior warn- ing necessarily "compels" a finding that there was a discriminatory motivation for the discharge. Nor do we find adequate warrant for such a conclusion in our colleague's dissent. On the basis of the record before us, we find that the General Counsel has not established that either Sanders' suspension or discharge was violative of Sec- tion 8(a)(1) and (3). Accordingly, as the Administra- tive Law Judge found no violations of Section 8(a)(1) and (5), we shall dismiss the complaint in its entirety. ORDER Pursuant to Section 10(c) of the National Labor Relations Act, as amended, the National Lbor Rela- tions Board hereby orders that the complaint herein be, and it hereby is, dismissed in its entirety. MEMBER FANNING , dissenting: I do not agree with the majority's refusal to find, as the Administrative Law Judge did, that the suspen- sion and later discharge of employee Johnnie Sanders were violations of Section 8(a)(3) and (1). I would, moreover, reverse the Administrative Law Judge's conclusion that Respondent did not violate Section 8(a)(5) of the Act. In my opinion the General Counsel has established a prima facie case that Johnnie Sanders' suspension and discharge were discriminatorily motivated be- cause of her membership in the activities on behalf of the Union. The Administrative Law Judge found that Sanders wore a "Vote Yes" badge on election day, March 10, 1972. This was brought to the'attention of coowner Ronnie Loggins when he asked Sanders' de- partment leadman how many girls were wearing "Vote Yes" badges.' Sanders and another girl were the only two in that department who were wearing such badges, and Sanders was standing "right beside" Loggins at the time. The Administrative Law Judge also found that Sanders passed out cards throughout 5 By inadvertence the Administrative Law Judge found that Plant Superin- tendent Charles Clarkson, rather than Ronny Loggins, was involved in this incident the campaign. In addition the record shows that even after the election she (Sanders) gave' some cards to new employees, and she attended all union meetings. Sanders received wage increases of 10 cents an hour in January and July. In his Remedy section the Ad= ministrative Law, Judge found that Sanders was later reinstated. The varying reasons given to Sanders for both the suspension and the discharge by Respondent tend to indicate that the reason for its action was union ani- mus. Originally Sanders was told that the reason for her July 28 suspension was "some confusion that was going around." Upon her return to work on August 3 a different reason, her alleged harassment of three employees, was given to her for the suspension. When Sanders was discharged on August 18 the purported reason,given her was "all this confusion that has been going on." Sanders denied knowledge of this, and Respondent told her that she had engaged in a slow- down. At the hearing it offered no evidence of a slow- down. The shifting reasons for the suspension and the dis- charge, the lack of any warning that she might be discharged, and the Respondent's failure to offer any evidence that Sanders participated in a slowdown per- suade me that the Administrative Law Judge rightly concluded-apart from reliance on N.L.R.B. v. Burn- up & Sims, 379 U.S. 21 (1964), on the 8(a)(1) aspects of the Respondent's treatment of Sanders-that she was suspended and discharged in violation of Section 8(a)(3) and (1).6 The complaint alleged an 8(a)(5) based on negotiat- ing in bad faith and withdrawing the authority of 6 The General Counsel has excepted to the failure of the Administrative Law Judge to credit the testimony of Sanders and of Ann Hunter concerning remarks made to them by coowner Randy Parker, which remarks are alleged as 8(a)( 1), as well as 8(a)(5), violations . Sanders was called in by Parker on August 3, after her suspension of July 28, and, as she testified, told that "he had a bunch of complaints from the Labor Board, but they were not going to amount to anything and for her to tell Fred Tilson there was not ever going to be a Union there " Ann Hunter, a former employee, testified that she called Parker on August 9 and told him she was quitting as she was tired of the whole mess . Parker asked her whether she was referring to the Union and went on to say ". that the Union is not going to get in here It is not going to run my business " Parker denied both statements and the Administrative Law Judge credited him partly because he saw no reason why Parker would make such statements "months after an election which the Union had won " This overlooks the fact that Respondent had recently received a decision by another Administrative Law Judge in Loggins, Robert D, Ronny M. Loggins and Randy Parker d/b/a Loggins Meat Co, 199 NLRB No. 38. That decision issued on June 20, 1972, and the Respondent filed exceptions to the Board in that case on July 25, just 3 days before Sanders' suspension , and less than a month before Respondent abruptly withdrew its contract proposal to the Union. It involved the early part of the same organizing campaign in which Sanders was active, found illegal threats and interrogation by Randy Parker, and directed the reinstatement of a union adherent who had been discharged. The Administrative Law Judge referred to the Loggins decision but was not persuaded that it supported a finding of bad faith by the Respondent in this case Apparently he failed to connect the timing of the receipt of that deci- sion, and the Respondent 's filing exceptions with respect to it, with the Sanders and Hunter testimony in early August. Thus his credibility finding with respect to that testimony is subject to serious question LOGGINS MEAT CO., INC. 305 Attorney Joe Parker to negotiate. The parties engaged in seven contract negotiating sessions beginning May 1. A Federal mediator attended the last two sessions. On August 23, the last session, Joe Parker presented a full contract proposal to Union Representative Til- son, as the mediator had requested at the session be- fore. Tilson did not accept the offer but said he would present it to the employees that evening for a vote. The employees approved Respondent's proposed contract that evening. Early the next morning, August 24, Parker called Tilson and told him that senior part- ner Loggins, Respondent's controlling owner, disap- proved of two provisions in the contract and therefore Respondent's agreement must be withdrawn as to those provisions. Tilson replied that the contract had already been accepted and that Parker had repre- sented that he had full authority to make the proposal. The charge followed on August 29. Parker had reaffirmed his authority to negotiate at the August 23 meeting, and he made no mention of any necessity for final approval by Loggins. At the hearing Parker admitted that he had acted at all seven negotiating sessions as if he had complete authority. His testimony includes the comment: "Now if the matter had been accepted prior thereto [the withdraw- al], we might be in a different ball game." Randy Parker testified that he had discussed the full contract with Mr. Loggins and it was his understanding at the last session that "if the Union signed the contract at the meeting, they had a contract " Finally it should be noted that Randy Parker is a coowner and that he participated in all but one of the earlier negotiating sessions. Taken together these facts establish to my satisfaction that the contract which the employees accepted was fully authorized. The abrupt withdrawal of two significant provisions on the morning of Au- gust 24, before the Union could communicate the fact that the employees had already approved the con- tract, is, in my opinion, totally inconsistent with good- faith bargaining. I would therefore find a violation of Section 8(a)(5) and issue an order requiring the Re- spondent to sign the contract. DECISION STATEMENT OF THE CASE HENRY L. JALETTE, Administrative Law Judge: This case involves a complaint alleging that Respondent, Loggins Meat Co., Inc.,' violated Section 8(a)(1) and (3) of the Act by first suspending and later discharging an employee be- cause of her union activities, and Section 8(a)(1) and (5) of the Act by withdrawing offers made in negotiations, with- drawing the authority of its negotiator to bargain with the i The name of Respondent appears as amended at the hearing. above-captioned Union, and by refusing to sign a written agreement embodying rates of pay, wages, hours of employ- ment, and other conditions of employment agreed upon between Respondent and the Union. The complaint issued on October 20, 1972,2 pursuant to a charge filed by the Union on August 29. Hearing was held in Tyler, Texas, on November 28. Upon the entire record,' including my observation of the witnesses, and after consideration of the briefs filed by Gen- eral Counsel and Respondent, I make the following: I FINDINGS OF FACT A. The Suspension and Discharge of Johnnie Sanders 1. The facts Respondent is engaged in the business of processing and distributing meat from a facility at Tyler, Texas, where it employs approximately 30 employees.' About the first week of January, the Amalgamated Meat- cutters and Butcher Workmen of North America, AFL- CIO, began an organizational campaign among employees of Respondent which culminated in the holding of an elec- tion on March 10. A majority of the employees voted for union representation and the Union was certified on March 20. Johnnie Sanders, who was employed packing, wrapping, and boxing meat, had been employed by Respondent since October 22, 1971. She testified that she signed a union card at the beginning of the union campaign and throughout the union campaign passed out union cards. On the day of the election for a period of about 3 hours, a number of the employees wore union badges with a legend "vote yes." Sanders was one of the employees to wear such a badge and she testified that while she had it on Plant Superintendent Charles Clarkston came up to -the leadman in her depart- ment and asked how many girls were wearing the union badges. Sanders and another employee were wearing them and the leadman so informed Clarkston. At the time of this conversation, Sanders was standing right next to Clarkston. On July 28, Clarkston suspended Sanders for 3 days tell- ing her that the reason for the suspension was some confu- sion that was going around. Sanders told him she knew nothing about any confusion and he rejoined that she did. Sanders returned to work 3 days later and during the morn- ing coffee break she was summoned to the office of Randy Parker, plant manager and co-owner of Respondent. San- ders testified that Parker did most of the talking and that he said something about her suspension. She told him she would like to know what the suspension was all about, and Parker told her she knew what it was all about. When she denied that she did he told her that three of his best employ- ees had complained that she had harassed them. When she 2 Unless otherwise indicated, all dates are in 1972 3 Respondent's unopposed motion to correct record is hereby granted and the motion is received into evidence as ALJ Exh 1 4 Commerce is not in issue. The complaint alleges, the answer admits and I find, that Respondent annually meets the Board's direct outflow and inflow standards for the assertion of jurisdiction. 306 DECISIONS OF NATIONAL LABOR RELATIONS BOARD asked him who, he named employee Linda Land. Sanders said she did not beleive it, because she and Land were friends. Parker told her that the complaint was true and that he preferred to believe Land to her. According to Sanders, the conversation ended with Parker stating that he had a bunch of complaints from the Labor Board, but they were not going to amount to anything, and for her to tell Fred Tilson, who is the business representative of the Union, that there never would be a union there. On August 18, before punching in for work, Sanders was approached by Clarkston and told that her services at Log- gins were no longer desired. She asked him why and he told her "Well, you know all this confusion that has been going around." Sanders told him that she was not guilty of any of that and he told her that she had been heard to say that she was going to slow her work down and she did. Sanders did not reply to this accusation, but simply left without saying anything else. At the hearing she denied that she had en- gaged in any work slow down. 2. Analysis and conclusions The complaint alleges that Respondent laid off Johnnie Sanders on July 28 and discharged her on August 18 be- cause of her membership in and activities on behalf of the Union. Respondent denied in its answer that it had sus- pended or discharged Sanders because of her union activi- ties, but Respondent offered no evidence to explain the reason for the 3-day suspension and the discharge. Thus, the only evidence respecting the allegation of discrimination is the uncontradicted testimony of Sanders as described above, and the question presented is whether such evidence is sufficient to establish a prima facie case that the suspen- sion and discharge were violative of Section 8(a)(1) and (3) of the Act. In its brief, Respondent asserts that the burden of proving that the suspension and discharge were unlawful rested on General Counsel and that the employer does not have the burden of proving that the discharge was for a proper rea- son. I agree. It is well established that an employer may discharge an employee for a good reason, a bad reason, or for no reason , and'the only limitation on that right is that he may not discharge or discipline an employee because of his union or protected activities. N.L.R.B. v. McGahey, T. A., Sr.; T. A. McGahey, Jr.; Mrs. Altie McGahey Jones and Mrs. Wilda Frances McGahey Harrison, d/b/a Columbus Marble Works, 233 F.2d 406 (C.A. 5, 1956). In this case, we do not know from Respondent for what reason or reasons it first suspended, then later discharged, Sanders. Neverthe- less, the burden of proving that the reason was one prohib- ited by the Act remained with General Counsel. In arguing that this burden was not met, Respondent adverts to the fact that Sanders' wearing of a "Vote Yes" button is a factor entitled to little weight inasmuch as the evidence indicates that most of the other female employees wore similar buttons and no reprisals were taken against them. As to Sanders' signing of a card, there is no showing that Respondent knew she had done so, just as there is no showing that Respondent knew of Sanders' soliciting other employees to sign cards. Moreover, Respondent asserts that there is no scintilla of evidence to show that from the date of the election in March until her discharge in August San- ders participated in any union activity whatsoever: On the other hand, Respondent notes that there were other employ-, ees whose union activities were more extensive than Sanders (in that they served on the negotiating committee) and no reprisals were taken against them. Although there is some merit in Respondent's assertions, they are outweighed by Sanders' uncontradicted testimony about the reasons given her for her suspension and dis- charge. Thus, when suspended, Sanders was told by Super- visor Clarkston that it was because of "some confusion that was going on." Sanders did not know what Clarkston meant and denied being the cause of any. If this were all we knew of the reason for the suspension I do not believe a finding of an unlawful suspension could be made. But when San- ders returned to work after the suspension, she testified that co-owner Randy Parker told her that the reason she had been suspended was that three employees had complained she had harassed them, naming one, Linda Land. Land had been one of the employees who had supported the Union and had worn a "Vote Yes" button who later lost interest in the Union and ceased attending union meetings. Accord- ing to Randy Parker's statement to Sanders, Land had told him Sanders was harassing her. He did not specify in what respects Sanders was doing so, but there is no indication of any reason for Sanders to have harassed Land, who she described as a friend of hers, and it is a reasonable inference that the alleged harassment related to Sanders solicitation of Land to renew her support of the Union. Sanders did not testify that she solicited Land. She did deny, that she har- assed her. Whether or not Sanders did solicit Land is imma- terial to decision. It is clear that Respondent believed that she had and that she had done so in an unprotected manner, and Respondent suspended her for that reason. Assuming, arguendo, that Respondent had a good-faith belief that San- ders had been guilty of misconduct in the solicitation of employees, her suspension was nevertheless violative of Sec- tion 8(a)(1) when the evidence shows that Sanders was not in fact guilty of misconduct. N.L.R.B. v. Burnup & Sims, Inc., 379 U.S. 21 (1964). As is readily seen, the application of this principle renders meaningless the arguments of Respondent against a finding of a violation. Burnup & Sims, however, only supports a finding that the suspension of Sanders violated -Section 8(a)(1) of the Act. The complaint alleges a violation of Section 8(a)(3) as well, and for such a finding there must be a showing of a discriminatory motive. In my judgment, such a motive may be reasonably inferred by the very manner in which Respondent handled the suspension. Sanders was not told why she was suspended in the first place, and when she was told the reason after the fact and denied engaging in the misconduct charged against her, Respondent merely brushed aside her denial. These circumstances persuade me that the motivating factor for Sanders' suspension was San- ders' activities in soliciting employees to join or support the Union and the suspension was violative of Section 8(a)(3) of the Act. Respondent's contention that it had no knowl- edge of such activities is belied by Randy Parker's remarks to Sanders on the occasion of her return to work. Moreover, given the size of Respondent's plant, it may reasonably be inferred that Respondent knew of Sanders' sympathies LOGGINS MEAT CO., INC. 307 for, and support of, the Union. Although the details are different, the same consider- ations apply in finding that Sanders' discharge was violative of Section 8(a)(1) and (3) of the Act. In this instance, ac- cording to Sanders' uncontradicted testimony, supervisor Clarkston gave as one of the reasons for the discharge that Sanders had engaged in a slow down. Sanders testified that employees had discussed the idea of a work slowdown at a union meeting, but the idea was rejected. Sanders testified she did not engage in a work slowdown, and there is no evidence she did. Thus, it was in the context of the employ- ees' union activities that Respondent formed the belief that Sanders engaged in unprotected activity. As the alleged misconduct was associated with. the protected activities of the employees, and as Respondent discharged Sanders be- cause of its belief that she had engaged in misconduct in the course of such activities, and as Sanders had not engaged in the alleged misconduct, her discharge was violative of Section 8(a)(1) of the Act. As with Sanders' suspension, the circumstances of the discharge compel a finding that Re- spondent was discriminatorily motivated in discharging her. Again, there was no warning. Again, the action was taken abruptly at the beginning of a work day, and Sanders' denial of misconduct was just brushed aside. These circumstances, coupled with the earlier unlawful suspension, support a finding that the discharge was discriminatorily motivated and violative of Section 8(a)(3) of the Act. B. The Alleged Refusal To Bargain 1. The facts As noted above, an election was held on March 10 and the Union was certified on March 20. Thereafter, the parties held seven meetings: May 1 and 17, June 21 and 22, July 7 and 26, and August 23. Respondent's negotiators were Randy Parker and Attorney Joseph Parker (who is not relat- ed to Randy Parker). Attorney Parker was the principal negotiator on behalf of Respondent. The sixth meeting on July 26 was held in the presence of a Federal mediator and it concluded with the under- standing that Respondent would prepare a counterproposal for the next meeting. When the parties met on August 23, Respondent present- ed a complete written contract proposal. After studying the proposal, the Union, through Fred Tilson, its principal ne- gotiator, proposed the addition of a checkoff provision and improvement in medical insurance benefits. Respondent re- fused to modify its proposal and Tilson advised its negotia- tors that he would call a meeting of the employees for that night and submit the matter to them with a recommenda- tion against acceptance. According to Tilson, he added that if the employees voted to accept Respondent's proposal, then they had a contract. A meeting was held that night and the employees voted to accept Respondent's proposal. The following morning, Tilson received a telephone call from Attorney Parker who advised him, before Tilson com- municated to him the results of the employee meeting, that the contract proposal was being withdrawn with regard to two provisions: the provision for daily overtime after 8 hours, and the annual wage reopener (the contract proposal was for a 3-year term). Tilson advised Parker that the em- ployees had voted to accept the contract, that he had been told by Parker that Parker had full authority to make the proposal, and that the contract was therefore agreed to. Attorney Parker later confirmed by letter his withdrawal of the contract proposal in the two particulars described above and advised Tilson he had contacted his client to determine if there was a possible area of compromise. He requested that Tilson contact him if he had any suggestions. The parties have had no negotiation meetings since Au- gust 23, and the charge in the instant case was thereafter filed on August 29. 2. Analysis and conclusions The complaint alleges that Respondent negotiated in bad faith by telling employees there would never be a union at its plant, by withdrawing its offer in regard to wages after the offer had been accepted by the Union, by withdrawing the otensible authority of its negotiator, and by refusing to sign a written agreement embodying the terms and condi- tions of employment orally agreed to by the parties. The refusal to sign a written agreement appears to be the princi- pal issue. It is settled law that where an employer or a union have orally agreed to the terms and conditions of a collective- bargaining agreement either may be required, upon request, to sign a written agreement embodying the terms and condi- tions orally agreed to. H. J. Heinz Company v. N.L.R.B., 311 U.S. 514 (1941). Of course, before there can be a finding of a refusal to sign, it must be established that the parties have entered into an oral agreement. In this case, the record indicates that an oral agreement was never entered into. In F. W. Means Company v. N.L.R.B., 377 F.2d 683, 686 (C.A. 7, 1967), the court pointed out that while the "technical rules of contracts" do not necessarily control all decisions in labor-management cases, "the normal rules of offer and acceptance" are generally determinative of the existence of a bargaining agreement. In this case, there was no accep- tance of Respondent's August 23 offer. It is undisputed that the Union did not accept Respondent's contract proposal at the August 23 meeting. Union Representative Tilson told Respondent's negotiators that he would have a meeting of the employees that same evening and that he would present them with Respondent's proposal with a recommendation against its acceptance.5 Contrary to Tilson's recommendation, the employees voted to accept Respondent's proposal. Despite this, a binding agreement did not come into effect because an acceptance is not effective until communicated to the offeror,' and 5 According to Tilson, he told Respondent's negotiators that he would not recommend acceptance of the proposal, but added that if the employees did accept it the Union would sign the contract Attorney Parker denied that this added remark was made I credit Parker whose demeanor impressed me and whose answers to all questions put to him appeared to me to be given candidly and without purpose of evasion I was not similarly impressed by Tilson. However, whether or not Tilson made the added remark is immaterial to decision. It was implicit in the situation that the employees might vote for acceptance of the contract 6 Williston on Contracts, 3d ed., vol. 1, § 70. 308 DECISIONS OF NATIONAL LABOR RELATIONS BOARD before the acceptance was communicated the offer was withdrawn. As stated in Shreveport Garment Manuracturers, 133 NLRB 117, 121, Strictly as a matter of fundamental contract law, and without regard to possible bad-faith motives, the Re- spondent effectively could have forestalled a contract at any time before acceptance of its outstanding offer by withdrawing or changing its terms .3 3 Williston on Contracts , 3d. ed., vol. 1, sec. 55 Sunderland's Incorporated 194 NLRB 118, cited by Gen- eral Counsel, is in accord with Shreveport. There, the Union negotiator's acceptance was deemed ineffective because the parties had agreed that ratification was a precondition to arrival at a final binding agreement, and before ratification occurred, the offer was withdrawn. In the instant case, the offer was rejected by the Union's negotiator and the mem- bership overruled him and voted to accept the offer, but before acceptance was communicated the offer was with- drawn. As the offer was withdrawn prior to notification of accep- tance, I conclude that no binding agreement was reached which Respondent can be required to sign. The foregoing represents the application of fundamental principles of contract law and, as pointed out in Shreveport, supra, prescinds from any question of bad faith motives in the withdrawal of the August 23 offer. The question is not one to be avoided, however, because one of the allegations of the complaint is that the withdrawal of the offer was motivated by bad faith. A related allegation is the allegation that Respondent withdrew the authority of its negotiator in violation of Section 8(a)(5). Respondent denies that any of its actions were motivated by bad faith. Both parties cite cases in support of their positions, but where issues of good' or bad faith are presented the conclusion is normally depen- dent on the particular facts of the case. That is the situation here. At the threshold, there is an issue concerning the ground rules of the bargaining. The record indicates that the Union expressly reserved in its initial contract proposal the right ` . . . to add to, to delete from or alter this proposal at any time." Respondent contends that at the initial negotiation meeting it reserved a like right, including an understanding with the Union that all agreements reached were tentative and subject to the approval of Robert Loggms who at that time was the employer's senior partner. Both Randy Parker and Attorney Joseph Parker testified to such an under- standing. Union Representative Tilson's testimony on the point appears to me to be equivocal and to amount to a denial of any such understanding. I see no need to analyze his testimony in detail. I am persuaded that it was under- stood by the parties that any agreements reached during the course of bargaining were tentative agreements subject to approval by Robert Loggins, and I credit Randy Parker and Attorney Parker's testimony in this regard. Conclusion on this does not, however, resolve the issue of Respondent's good or bad faith in withdrawing its contract offer on Au- gust 24. It is common practice for the parties to agree that agree- ments reached during the course of bargaining shall be ten- tative and subject to change, and just as a union may condition acceptance of a final contract proposal on ratifi- cation by its members, an ,employer may condition agree- ment on a contract proposal on approval by the negotiator's principal. But we are not treating here of tentative agree- ments made during the course of bargaining. We are treat- ing of a contract proposal prepared and submitted by Respondent's principal negotiator, and we are treating-of a proposal for a complete contract, not merely selected arti- cles tentatively agreed upon in the course of bargaining. In this circumstance, the ground rules cannot be said to have applied to the situation created by Attorney Parker's August 23 proposal and had the Union made a timely acceptance, Respondent would be bound to honor the agreement reached and to sign a written agreement. And it would appear that Attorney Parker understood this when he re- marked while testifying "Now, if the matter had been ac- cepted prior thereto [that is, withdrawal of the offer] we might be in a different ball game." Randy Parker likewise testified that if the Union had signed the contract at the meeting, they had a contract. Moreover, when Attorney Parker presented the proposed contract, he was asked by Tilson if he had the authority to negotiate and he replied that he did. He-said nothing about the necessity of obtaining approval of the proposal by Robert Loggins. But while Respondent could have been held to its agent's offer had it been accepted, it does not follow that it could not withdraw the offer before acceptance and after consul- tation between the agent and his principal. Such a with- drawal could have been made whether or not the parties had agreed on ground rules providing for approval of their ac- tions by their principals, and the only question would be the good faith of the party withdrawing the offer. As to this question, the first thing to be kept in mind is that the offer was not withdrawn, in total, but only with regard to daily overtime and the wage reopener provision. As to the wage reopener provision, it had never been discussed in negotia- tions. Initially, the Union had proposed a 1-year contract. During the negotiations, Respondent had suggested a 3- year contract and the Union had replied that it was open to the suggestion if the contract provided "enough" in the form of wage increases . What the Union deemed "enough" was never discussed, and when Attorney Parker was faced with the preparation of a complete contract proposal for the August 23 meeting, without consulting his principal, he pro- posed a 3-year contract (to suit his client) with an annual wage reopener (to suit the Union.) In my judgment, the very making of the proposal evidences a desire on the part of Attorney Parker to submit a proposal on which agreement ,could be reached. Parker testified that it was only after he had made the proposal that his client indicated disapproval of the provision, and the proposal was withdrawn. Of course, Attorney Parker's conduct may vouch for his good faith and his principal may still have acted in bad faith. In my judgment, the evidence is insufficient to hold that Re- spondent acted in bad faith when senior partner Loggins refused to endorse Attorney Parker's proposal. The wage' reopener provision was one he had not had a prior opportu- nity to consider and his reason for rejecting it (he did not LOGGINS- MEAT CO., INC. 309 want to engage in negotiations every year) was not a frivo- lous one. Bad faith can hardly be inferred from the principal's rejection of one contract proposal which he had not previously considered. The same situation does not apply to Respondent's with- drawal of agreement on the daily overtime provision. Agree- ment on this issue had been reached at the third negotiating session and, although the record does not expressly indicate that Robert Loggins had approved the provision, approval is implicit from the failure of the negotiators to withdraw the provision before August 24. No matter how you look at it, Respondent's withdrawal of agreement on that provision on August 24 represents a last minute change of position. This type of conduct is a well established indicium of bad faith. In Harry R. Pickett and Eva M. Pickett d/b/a F & J Wire Products Co.,174 NLRB 340 (1969), a case cited by General Counsel, the withdrawal of agreement at the last minute was described as "negotiation in reverse" and such conduct, coupled with the failure of the principal to devote sufficient time and attention to his bargaining obligation, was found to be disruptive and in derogation of the collective-bargain- ing process. A similar last minute withdrawal is present here, and a similar failure to pay sufficient attention to the obligations of collective bargaining is revealed in the explanation for the last minute withdrawal. According to Attorney Parker, he failed to prepare a contract proposal in sufficient time before the August 23 meeting to permit him to consult with Robert Loggins before he submitted the proposal to the Union. His failure to prepare a proposed contract sooner was attributed to the pressure of other business, plus Parker's misunderstanding of what he was to submit at the August 23 meeting. He testified credibly that he understood that he was to prepare a proposal only on open matters on which no company proposal had been made and he only learned 2 days before the meeting that he was expected to submit a complete contract. For this reason, he did not have the opportunity to discuss the contract proposal with his client before the August 23 meeting. While Attorney Parker may have been less diligent than he should have been in not preparing a complete proposal in sufficient time to review it with his principal before sub- mitting it to the Union, there is no contention that he had been lacking in diligence prior to this incident, nor is it contended that Respondent had engaged in dilatory tactics. Parker's lack of diligence in this one instance must be evalu- ated against his entire course of conduct, and, in my judg- ment, his entire course of conduct does not reveal a purpose to delay and frustrate bargaining. I find that his explanation for the `last minute" withdraw- al of two items from Respondent's offer is not inconsistent with good-faith bargaining. In contrast, in F & J, supra, the principal's entire course of conduct demonstrated bad faith. His last minute withdrawal from previously accepted provi- sions was accompanied by the insertion of more onerous provisions. There is none of that here. To the contrary, the record indicates that the August 23 meeting at which the complete contract offer was made was only the seventh meeting. Neither the General Counsel nor Respondent ad- verts to the terms and conditions of the proposed contract, but evidently it was not a situation, "fraught with conces- sions forced upon the Union by the Company's unfair labor practices." N.L.R.B. v. Industrial Wire Products Corporation, 455 F.2d 673, 679 (C.A. 9, 1972). If General Counsel's witnesses are believed, however, there is indirect, but strong, proof that Respondent acted in bad faith. Thus, as described earlier, when Johnnie Sanders returned to work on August 3, after her 3-day suspension, Randy Parker allegedly told her that he had a number of complaints from the Labor Board, but they wouldn't amount to anything and that Sanders could tell Tilson that there would never be a Union there. Former employee Ann Hunter testified that on August 9 she notified Randy Parker by telephone that she was quitting because she was tired of the "whole mess" at the plant. He asked her if she had reference to the Union and added, "That Union is not going to get in here. It is not going to run my business." Parker denied making the statements attributed to him by both Hunter and Sanders. I credit Parker who appeared to me to be a truthful witness. Apart from that, I cannot see any reason for him to have made the remarks attributed to him on the occasions described, months after an election which the Union had won. Finally, in assessing Respondent's good faith, consider- ation. has to be given to Respondent's conduct vis-a-vis Sanders, as described above, and to the findings of the Board in Loggins, Robert D., Ronny M. Loggins and Randy Parker d/b/a Loggins Meat Co., 199 NLRB 291, wherein Respondent was found to have engaged in unlawful interro- gation in violation of Section 8(a)(1) of the Act and to have discharged an employee in violation of Section 8(a)(1) and (3) of the Act. I have considered these matters and am not persuaded, in light of the circumstances which I have de- scribed above, that they support a finding that Respondent acted in bad faith in this case. For all the foregoing reasons, I shall recommend dismiss- al of the allegations of the complaint that Respondent vio- lated Section 8(a)(5) of the Act. II THE EFFECT OF THE UNFAIR LABOR PRACTICES UPON COMMERCE The activities of Respondent set forth in section I, above, occur in connection with its operations described therein, have a close, intimate, and a substantial relationship to trade, traffic, and commerce among the several States and tend to lead to labor disputes burdening and obstructing commerce and the free flow of commerce. III THE REMEDY Having found the Respondent as engaged in unfair labor practices in violation of Section 8(a)(1) and (3) of the Act, I shall recommend that it be ordered to cease and desist therefrom and to take certain affirmative action designed to affectuate the policy of the Act. The record indicates that after her discharge on August 18, Johnnie Sanders was reinstated to her former, or a sub- stantially equivalent, position, and there is no contention that she was deprived of seniority or any other rights and privileges. Accordingly, an order of reinstatement would be inappropriate. However, she has not been made whole for any loss of earnings she may have suffered by reason of her 310 DECISIONS OF NATIONAL LABOR RELATIONS BOARD unlawful suspension and discharge , and I shall recommend that she be made whole for any loss of earnings by reason of such suspension and discharge , by payment to her the sum of money equal to that which she normally would have earned as wages for the 3 days of her suspension and from the date of her discharge to the date when she was reinstat- ed, less net earnings to which shall be added interest at the rate of 6 percent per annum in accordance with the formula set forth in F. W. Woolworth Company, 90 NLRB 289, and Isis Plumbing & Heating Co., 138 NLRB 716. The discharge of employees because of their union activi- ties is an unfair labor practice which goes to the very heart of employee rights safeguarded by the Act. I shall therefore recommend that Respondent be placed on a Board order to cease and desist from in any manner infringing upon the rights of the employees guaranteed in Section 7 of the Act. N.L.R.B. v. Entwistle Mfg. Co., 120 F.2d 532, 536 (C.A. 4). CONCLUSIONS OF LAW 1. Loggins Meat Co., Inc., is an employer engaged in commerce within the meaning of Section 2(6) and (7) of the Act. 2. Amalgamated Meat Cutters and Butcher Workmen of North America, AFL-CIO, Local Union No. 540, is a labor organization within the meaning of Section 2(5) of the Act. 3. By discharging Johnnie Sanders because of her activi- ties on behalf of Amalgamated Meat Cutters and Butcher Workmen of North America, AFL-CIO, Local Union No. 540, Respondent has engaged in, and is engaging, in unfair labor practices within the meaning of Sections 8(a)(1) and (3) and 2(6) and (7) of the Act. 4. General Counsel has failed to establish by a prepon- derance of the evidence that Respondent violated Section 8(a)(1) and (5) of the Act as alleged in paragraph 12 of the complaint. Upon the foregoing findings of fact, conclusions of law, and the entire record, and pursuant to Section 10(c) of the Act, I hereby issue the following recommended: 2. Take the following affirmative action designed to af- fectuate the policies of the Act: (a) Make Johnnie Sanders whole for any loss of earnings suffered by reason of her suspension and discharge in the manner set forth in the section hereof entitled "Remedy." (b) Preserve and, upon request , make available to the National Labor Relations Board and its agents for examina- tion in copying, all payroll records , social security records, timecards , personnel records and reports, and all other re- cords relevant and necessary for a determination of the amount of backpay due within the terms of this recom- mended Order. (c) Post at its Tyler, Texas, plant, copies of the attached notice marked "Appendix." 8 Copies of said notice, on forms provided by the Regional Director for Region 16, after being duly signed by Respondent's authorized repre- sentative , shall be posted immediately upon receipt thereof and be maintained for 60 consecutive days thereafter, in conspicuous places, including all places where notices to employees are customarily posted . Reasonable steps shall be taken by Respondent to ensure that said notices are not altered , defaced , or covered by any other material. (d) Notify the Regional Director for Region 16, in writ- ing, within 20 days from receipt of this Decision as to what steps have been taken to comply herewith. The allegations of the complaint found not to have been sustained by a preponderance of the evidence are hereby dismissed. 7 In the event no exceptions are filed as provided by Sec 102.46 of the Rules and Regulations of the National Labor Relations Board, the findings, conclusions, and recommended Order herein shall, as provided in Sec. 102.48 of the Rules and Regulations, be adopted by the Board and become its findings, conclusions, and order, and all objections thereto shall be deemed waived for all purposes 8 In the event that the Board's Order is enforced by a Judgment of a United States Court of Appeals, the words in the notice reading "Posted by Order of the National Labor Relations Board" shall be changed to read "Posted Pursuant to a Judgment of the United States Court of Appeals Enforcing an Order of the National Labor Relations Board." ORDER? Respondent, Loggins Meat Co., Inc., its officers, agents, successors, and assigns shall: 1. Cease and desist from: (a) Discouraging membership in, or.activities on behalf of, Amalgamated Meat Cutters and Butcher Workmen of North America, AFL-CIO, Local Union No. 540, or any other labor organization of its employees, by suspending or discharging employees because of their activities on behalf thereof, or otherwise discriminating in regard to the hire or tenure of employment or any terms or conditions or em- ployment of its employees. (b) In any other manner interfering with, restraining, or coercing employees in the exercise of their right to self-orga- nization, to form, join, or assist labor organizations, to bar- gain collectively through representatives of their own choosing, and to engage in concerted activities for the pur- pose of collective bargaining or other mutual aid or protec- tion as guaranteed by Section 7 of the Act, or to refrain from any or all such activities. APPENDIX NOTICE To EMPLOYEES POSTED BY ORDER OF THE NATIONAL LABOR RELATIONS BOARD An Agency of the United States Government After a trial in which both sides had the opportunity to present their evidence, the National Labor Relations Board has found that we have violated the law and ordered us to post this notice. WE WILL NOT suspend or discharge employees because of their activities on behalf of Amalgamated Meat Cut- ters and Butcher Workmen of North America, AFL- CIO, Local Union No. 540, or any other labor organi- zation. Since the Board found that we violated the law when we suspended and later discharged Johnnie Sanders, who has LOGGINS MEAT CO., INC. been reinstated, WE WILL make her whole for any loss of pay she may have suffered by reason of the suspension and discharge. WE WILL NOT in any manner interfere with , restrain, or coerce any employees in the exercise of their rights to self-organization , to form, join , or assist any labor organization, to bargain collectively through a repre- sentative of their own choosing, and to engage in other concerted activities for the purpose of collective bar- gaining or other mutual aid or protection , or to refrain from any or all such activities. You are free to become and remain members of Amalga- mated Meat Cutters and Butcher Workers of North Ameri- ca, AFL-CIO, Local Union No. 540, or any other labor organization. Dated By 311 LOGGINS MEAT CO., INC. (Employer) (Representative (Title) This is an official notice and must not be defaced by anyone. This notice must remain posted for 60 consecutive days from the date of posting and must not be altered , defaced, or covered by any other material . Any questions concerning this notice or compliance with its provisions may be direct- ed to the Board's Office, Federal Office Building, Rm. 8- A-24, 819 Taylor Street, Fort Worth , Texas 76102, Tele- phone 817-334-2921. Copy with citationCopy as parenthetical citation