Machinists, Local No. 697Download PDFNational Labor Relations Board - Board DecisionsApr 9, 1976223 N.L.R.B. 832 (N.L.R.B. 1976) Copy Citation 832 DECISIONS OF NATIONAL LABOR RELATIONS BOARD International Association of Machinists and Aero- space Workers, Local Union No. 697 , AFL-CIO (The H. O. Canfield Rubber Company of Virginia, Inc.) and Ronnie G . Carroll . Case 5-CB-1644 April 9, 1976 DECISION AND ORDER BY CHAIRMAN MURPHY AND MEMBERS FANNING AND JENKINS Upon a charge filed by Ronnie G. Carroll on De- cember 20, 1974, the General Counsel of the Nation- al Labor Relations Board, by the Regional Director for Region 5, issued a complaint and notice of hear- ing on April 9, 1975, against International Associa- tion of Machinists and Aerospace Workers, Local Union No. 697, AFL-CIO, alleging that the Respon- dent had engaged in and was engaging in unfair la- bor practices affecting commerce within the meaning of Sections 8(b)(1)(A) and 2(6) and (7) of the Nation- al Labor Relations Act, as amended. Respondent filed an answer to the complaint, denying the com- mission of unfair labor practices. On June 27, 1975, the parties to this proceeding entered into a stipulation in which they agreed that the formal papers filed in this proceeding and the facts contained in the stipulation, together with the exhibits attached thereto, constitute the entire record in this case. They waived their right to a hearing be- fore an Administrative Law Judge, the making of findings of fact and conclusions of law by an Admin- istrative Law Judge and the issuance of an Adminis- trative Law Judge's Decision and recommended Or- der. They asked that the case be transferred directly to the Board for decision. The stipulation also pro- vided for the filing of briefs with the Board. On June 30, 1975, the Board issued an order ap- proving the stipulation and transferring this proceed- ing to the Board. Thereafter, the General Counsel and the Respondent each filed a brief with the Board. 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. Having accepted transfer of this proceeding to it, the Board, upon the entire record herein, makes the following: FINDINGS OF FACT 1. JURISDICTION The H. O. Canfield Rubber Company of Virginia, Inc., is a Virginia corporation engaged in the manu- facture of mechanical rubber products at its Clifton Forge, Virginia, location. During the past 12 months, a representative period, the Company purchased and received materials and supplies valued in excess of $50,000 from points located outside the Common- wealth of Virginia. We find that the Company is now, and has been at all material times herein, an employer engaged in commerce within the meaning of Section 2(6) and (7) of the Act. II. THE LABOR ORGANIZATION INVOLVED The parties agree, and we find, that the Respon- dent is, and has been at all times material, a labor organization within the meaning of Section 2(5) of the Act. III. THE ALLEGED UNFAIR LABOR PRACTICES A. Facts As indicated above, the facts are not in dispute and are fully set out in the stipulation and appended exhibits. Respondent is the exclusive collective-bar- gaining representative for the Company's production and maintenance employees. The current collective- bargaining agreement provides a three-step grievance procedure culminating in final and binding arbitra- tion; it does not contain a union-shop, agency-shop, or other compulsory union membership provision. Virginia, wherein the Company is located, is a right- to-work state. Ronnie G. Carroll, the Charging Party herein, has been employed by the Company since 1968. He is not a member of the Respondent. In 1974, Carroll was involved in a number of grievances, none of which is directly involved in this proceeding. Carroll was verbally warned about his production in Febru- ary 1974 and filed a grievance. After reaching the third step, the grievance was withdrawn. In May 1974, he filed a grievance concerning overtime, and the grievance was settled. In June 1974, the Respon- dent filed a grievance over a written warning con- cerning Carroll's job performance. Respondent told Carroll that it did not view the warning as warranting arbitration, and the grievance was withdrawn. Later in 1974, Carroll was involved in additional grievances which gave rise to this proceeding. On September 10, 1974, Carroll was given a 3-day sus- 223 NLRB No. 119 MACHINISTS , LOCAL NO. 697 833 pension for failure to maintain an acceptable level of production. Subsequently, Respondent filed a griev- ance. The Company denied the grievance at the first step, and it was not further processed. On November 1, 1974, Carroll was told he was going to be transfer- red from his molding job to a compounder classifica- tion. Carroll filed a grievance on November 5. On November 21, 1974, Carroll was told he would be given a 5-day layoff for failure to meet production standards. Carroll filed a grievance on November 25. At the meeting in which Carroll was told he would be transferred, Frankie Lavannis, a union steward, said that he did not think the grievance would go far or reach arbitration unless Carroll paid costs. The next day, November 2, Carroll talked to James Cash, a union committeeman, about the transfer. In the course of the conversation, Cash said the Union would handle the grievance initially, but that any costs after the first step would have to be borne by the nonmember employee. Subsequently, during the second-step grievance meeting, Cash said the Union would not carry the matter to the third step or to arbitration unless the nonmember employee agreed to pay the costs incurred by the Union for further processing the grievance. During the meeting in which Carroll was told of his 5-day layoff, Robert Byers, a union grievance committeeman, told Carroll that the Union would not arbitrate nonmember grievances unless the em- ployee paid the costs but that it would file and han- dle the grievance at the first step. Later that day, Carroll discussed his grievances with Robert Church, another union grievance committeeman. Church told Carroll that the grievances probably would have been processed through arbitration had Carroll been a member. Church said that the Respondent had de- cided that it would only process the grievances to the first step for nonmember employees, absent an agree- ment to pay for all costs incurred. Church told Car- roll that he should have paid for processing the job transfer grievance through the second step but to let the matter slide. Church said that from this point on, however, Carroll would have to pay for all costs in- curred after the first step. Under the grievance procedure, the Company pays for lost time for stewards processing first-step griev- ances. It costs Respondent approximately $15 to $20 to process second-step grievances and $25 to $30 to process third-step grievances. It costs Respondent approximately $175 for lost time in arbitration, plus the arbitrator's share of $350 to $400 per case. B. Contentions of the Parties The General Counsel contends that the Respon- dent, as exclusive collective bargaining representa- tive, must act fairly and impartially on behalf of all unit employees, whether or not they are members, and must process nonmember grievances in a fair and impartial manner. The General Counsel further contends that an employee request to have the Union process a grievance is a Section 7 right "to bargain collectively" since a grievance procedure is vital to the effectuation of a collective-bargaining agreement. The General Counsel argues that a union's refusal to process nonmember grievances for refusal to pay costs is unreasonable since nonmembers are entitled as a matter of right to the same grievance representa- tion as are members. Accordingly, the General Counsel contends that the Respondent's refusal to further process Carroll's grievances unless Carroll paid costs violates Section 8(b)(1)(A) of the Act. The Respondent, citing N.L.R.B. v. Miranda Fuel Company, Inc., 326 F.2d 172 (C.A. 2, 1963), first con- tends that the unfair labor practice provisions of the Act are not violated because of a breach of the duty of fair representation under Section 9 of the Act. Sec- ond, the Respondent contends that charging a fee to nonmembers for handling grievances is not discrimi- natory and does not violate the Union's duty of fair representation. Respondent cites Vaca v. Sipes, 386 U.S. 171, 194, fn. 16 (1967), "Thus, even if the jury believed Owen's controverted testimony [that the lo- cal demanded $300 to take a grievance to arbitra- tion], we do not think that this incident would estab- lish a breach of duty by the Union," for its conten- tion that the Supreme Court has held that a union may charge nonmembers for processing grievances.' The Respondent further argues that its action was not arbitrary, discriminatory, or in bad faith since it was merely assessing a nonmember for the actual costs Respondent would incur for services it would render. Respondent contends that it is making an honest effort to fairly serve all unit employees and that to provide grievance and arbitration services free to nonmembers would be unfair to members who have paid dues. C. Conclusions The complaint alleges that Respondent, by the ac- 1 The full footnote reads: "Owens did allege and testify that petitioner Vaca, President of the Kansas City local, demanded $300 in expenses before the Union would take the grievance to arbitration , a charge which all the petitioners vigorously denied at trial. Under the collective bargaining agree- ment, the local union had no power to invoke arbitration .' See n. 3, supra. Moreover , the Union 's decision to send Owens to another doctor at Union expense occurred after Vaca 's alleged demand, and the ultimate decision not to invoke arbitration came later still. Thus, even if the jury believed Owen's controverted testimony, we do not think that this incident would establish a breach of duty by the Union." 834 DECISIONS OF NATIONAL LABOR RELATIONS BOARD tions set forth above, violated Section 8(b)(1)(A) of the Act. That section makes it an unfair labor prac- tice for a labor organization to restrain or coerce em- ployees in the exercise of the rights guaranteed by Section 7 of the Act. Section 7 of the Act gives employees the right to self-organization to bargain collectively through representatives of their own choosing, to engage in other concerted activities for their mutual aid or protection, and to refrain from the above. It is undisputed that Respondent refused to process Carroll's grievances beyond the first step unless he agreed to pay Respondent the costs it would incur in pursuing his grievances. It also is clear that Respondent took this position because Carroll was not a member of the Union. Since Respondent does not condition the processing of grievances by dues-paying members on their paying costs, Respon- dent has drawn a distinction between members and nonmembers, and to this extent has discriminated against Carroll. Since Respondent has treated non- members differently from members, resolution of this proceeding does not turn upon the duty of fair representation in Section 9 of the Act. Thus, we find it unnecessary to consider Respondent's argument that Section 8 does not encompass the duty of fair representation? The issue here is whether Respondent's discrimination against nonmembers is such that it restrains or coerces them in the exercise of Section 7 rights, as contended by the General Counsel, or whether the discrimination is merely a lawful exercise of reasonable discretion, as contend- ed by the Respondent. In The Wallace Corporation v. N.L.R.B., 323 U.S. 248, 255-256 (1944), the Supreme Court stated, "The duties of a bargaining agent selected under the terms of the Act extend beyond the mere representation of the interests of its own group members. By its selec- tion as bargaining representative it has become the agent of all the employees, charged with the responsi- bility of representing their interests fairly and impar- tially." Similarly, the Board has long held that an exclusive bargaining agent has taken on the responsi- bility to act as a genuine representative of all the employees in the bargaining unit, "irrespective of union membership or the existence of a union securi- ty contract." Peerless Tool and Engineering Co., 111 NLRB 853, 858 (1955), enfd. sub nom. N.L.R.B. v. Die and Tool Makers Lodge No. 113, International As- sociation of Machinists, AFL, 231 F.2d 298 (C.A. 7, 1956), cert. denied 352 U.S. 833. Involved here is a quid pro quo which Congress made basic to the Act. The Act requires an employer to bargain in good faith with a duly selected exclusive bargaining repre- sentative, despite the fact that a substantial minority in the unit may not want to be represented by that particular union or any union at all. In exchange for the protection of the Act, the bargaining representa- tive must represent all unit employees. A grievance and arbitration procedure is a primary tool in the implementation of the collective-bargain- ing agreement and is, therefore, a vital part of collec- tive bargaining. The Supreme Court in Conley v. Gib- son, 355 U.S. 41, 46 (1957), stated, "The bargaining representative's duty . . . does not come to an abrupt end . . . with the making of an agreement between union and employer. Collective bargaining is a con- tinuing process. Among other things, it involves day- to-day adjustments in the contract and other working rules, resolution of new problems not covered by ex- isting agreements, and the protection of employee rights already secured by contract. The bargaining representative can no more unfairly discriminate in carrying out these functions than it can in negotiat- ing a collective agreement." In Peerless, supra, the Board stated that a union's "[denial of] assistance in prosecuting grievances is a grave matter." (111 NLRB at 857.) The Board has repeatedly held that, although a union is permitted wide discretion in its handling of grievances, a union cannot lawfully re- fuse to process a grievance of an employee in the unit because he is a nonmember. Port Drum Company, supra; International Union, United Automobile, Aero- space & Agricultural Implement Workers of America, UAW, and its Local No. 1303 (Jervis Corp., Bolivar Division), 192 NLRB 966 (1971); United Steelworkers of America, Local No. 937, AFL-CIO-CLC (Magma Copper Company), 200 NLRB 40 (1972); Local Union Nos. 186, 381, 396, et al., affiliates of the International Brotherhood of Teamsters, Chauffeurs, Warehousemen and Helpers of America (United Parcel Service), 203 NLRB 799 (1973); International Brotherhood of Elec- trical Workers, Local Union 1504 (Western Electric Company, Inc.), 211 NLRB 580 (1974). Respondent herein, of course, has not refused out- right to process Carroll's grievance but has refused to do so unless he will pay the costs.' Respondent is thus attempting to collect from nonmembers for costs it incurs in processing their grievances. Respon- dent argues that doing so is reasonable and necessary to protect the dues paid by its members from being eroded by expenditures to protect nonmembers. Re- spondent in essence is arguing that it must be able to protect itself from "free riders." The Board has dealt with that question in Hughes Tool Company, 104 NLRB 318 (1953), a case with obvious parallels to y 3 The stipulation shows that Respondent will process Carroll's grievances through the first step. However , Respondent incurs no out-of -pocket ex- 2 See, e .g., Port Drum Company, 170 NLRB 555, 556, In . 4 (1968). pense for the first step. MACHINISTS , LOCAL NO. 697 the instant case. In Hughes, the independent union had announced that nonmembers seeking its assis- tance would be charged $15 for processing griev- ances and $400 for arbitration. The Board essentially adopted the position taken therein by the Interna- tional Association of Machinists and held that a union engaging in such activity may have its certifi- cation revoked. In rejecting the contention that the fees were only a justifiable measure to control free riders, the Board stated: The Independent is barred, by the law of the State of Texas, from obtaining compulsory membership. We do not believe that, in the al- ternative, it may require a fee from nonmember employees for services which are due the latter as a matter of right. By adopting such a proce- dure, the Independent has, in effect, taken the position that it will only represent its members in the important area of contract administration. [104 NLRB at 329.] The Board's holding in Hughes, that grievance repre- sentation is due a nonmember as a matter of right, is clearly applicable to the instant proceeding. Respondent's reliance on Vaca v. Sipes, supra, for the contention that the Supreme Court has held that a union may charge fees for arbitrating grievances is misplaced. Before deciding whether to prosecute the grievance, the union therein sent the grievant to an- other doctor at the union's expense. It is clear that first the local and then the national vigorously prose- cuted the grievance and that the national's decision not to arbitrate was made on its view of the merits. In addition, the remark was said to have been made by an officer of the local union when the decision to arbitrate could be made only by the national. In the instant proceeding, Respondent clearly did not base its actions on its view of the merits of Carroll's griev- ances. In conclusion, we find that Respondent, by charg- ing only nonmembers for grievance representation, has discriminated against nonmembers. We further find that a grievance procedure is vital to collective bargaining and that grievance representation is due employees as a matter of right. To discriminate against nonmembers by charging them for what is due them by right restrains them in the exercise of their statutory rights.4 Accordingly, we find that Re- In justifying her proposal to require nonunion members to tender the equivalent of dues, Chairman Murphy analogizes it to requiring the pay- ment of a fee by a nonunion member for the use of an exclusive hiring hall. That analogy fails to take into account the significant difference between the operation of a hiring hall and the administration of a collective-bargain- ing agreement . Thus, the nonunion applicant for employment, who utilizes the hiring hall , is clearly not an employee in the unit which is represented by the Union and is therefore not entitled as a matter of right to the uncondi- 835 spondent has violated Section 8 (b)(1)(A) of the Act and shall order it to cease and desist therefrom and L to take further appropriate action. CONCLUSIONS OF LAW 1. H. O. Canfield Rubber Company of Virginia, Inc., is an employer engaged in commerce and in activities affecting commerce within the meaning of Section 2(6) and (7) of the Act. 2. Respondent is a labor organization within the meaning of Section 2(5) of the Act. 3. Respondent at all times material acted as the exclusive bargaining representative of the Employer's production and maintenance employees, including Ronnie G. Carroll, the Charging Party. 4. By refusing to process grievances against the Employer on behalf of Ronnie G. Carroll with re- spect to rates of pay, wages, hours of employment, or other terms and conditions of employment, beyond the first step of the grievance procedure unless he agreed to pay the costs involved, and by requiring the payment of such costs because he was not a member, Respondent has restrained and coerced said employee in the exercise of rights guaranteed in Section 7 of the Act, and said conduct is an unfair labor practice within the meaning of Section 8(b)(1)(A) of the Act. 5. The aforesaid unfair labor practice is an unfair labor practice affecting commerce within the mean- ing of the Act. ORDER Pursuant to Section 10(c) of the National Labor Relations Act, as amended, the National Labor Re- lations Board hereby orders that the Respondent, In- ternational Association of Machinists and Aerospace Workers, Local Union No. 697, AFL-CIO, Clifton Forge, Virginia, its officers, agents, and representa- tives, shall: 1. Cease and desist from: (a) Refusing, unless costs are paid by the employ- ee, to process grievances against the Employer on behalf of Ronnie G. Carroll, or any other nonmem- ber unit employee, because of his nonmembership in Respondent. (b) In any like or related manner restraining or coercing employees of H. O. Canfield Rubber Com- pany of Virginia, Inc., in the exercise of rights guar- anteed in Section 7 of the Act. 2. Take the following affirmative action necessary tionai provision of services that the Union must make available to all unit employees without imposition of special fees on those who are not among its members. 836 DECISIONS OF NATIONAL LABOR RELATIONS BOARD to effecuate the policies of the Act: (a) Upon request, handle grievances filed by Ron- nie G. Carroll, or any other member of the bargain- ing unit , without regard to union membership of the grievant and without requirement that nonmembers pay the costs involved. (b) Post at its offices and at all other places where it customarily posts notices to its members, copies of the attached notice marked "Appendix." 5 Copies of said notice, on forms provided by the Regional Di- rector for Region 5, after being duly signed by the Respondent's authorized representative, shall be posted by the Respondent immediately upon receipt thereof, and maintained by it for 60 consecutive days thereafter, in conspicuous places, including all places where notices to members are customarily posted. Reasonable steps shall be taken to insure that such notices are not altered, defaced, or covered by any other material. (c) Sign and deliver sufficient copies of said no- tices to the Regional Director for Region 5 for post- ing by the Employer, at all locations where notices to its employees are customarily posted, if said Employ- er is willing to so post. (d) Notify the Regional Director for Region 5, in writing , within 20 days from the date of this Order, what steps Respondent has taken to comply here- with. CHAIRMAN MURPHY, concurring in part and dissent- ing in part: I agree with my colleagues that the Respondent violated Section 8(b)(1)(A) for the reasons fully and ably set forth by them. I, too, do not believe a collec- tive-bargaining representative may require that a nonmember pay the total costs of processing any grievance beyond the first step unless members also pay such fees , and I agree that the imposition of a fee beyond that required of any member is definitely a form of discrimination based on nonmembership. However, I would permit a union to require that any nonmember pay the equivalent of dues for the remaining life of the contract in order to have the grievance processed. I would see nothing improper or unlawful in this. While the Union has obligations, there should be some concomitant responsibility on the part of the employee. The payment equal to dues would be only what is required of any member and could not be said to distinguish between individuals based on their membership or nonmembership sta- tus. Nor could the payment of such sums be said to 5 In the event that this Order is enforced by a Judgment of a United States Court of Appeals, the words in the notice reading "Posted by Order of the National Labor Relations Board" shall read "Posted Pursuant to a Judgment of the United States Court of Appeals Enforcing an Order of the National Labor Relations Board." be the equivalent of requiring membership in the Union in contradiction of the right-to-work law of the State. Rather, I would view this as analogous to payment for the use of an exclusive hiring hall of fees reasonably related to the services performed.' My colleagues attempt to distinguish an individual nonmember seeking referral through an exclusive hiring hall from the nonmember involved herein- and argue that the former may be charged a fee whereas the latter may not-because the former is not an "employee within the unit" and is "not enti- tled as a matter of right to the unconditional provision of services that the Union must make available to all unit employees without imposition of special fees on those who are not among its members." (Emphasis in original.) But this statement confuses the statutory rights of such nonmember applicants and the deci- sional holding that the Union may charge appropri- ate fees. Contrary to the majority herein, a nonmem- ber applicant at an exclusive hiring hall is entitled as a matter of right to the services of a union without discrimination based on nonunion status. N.L.R.B. v. Lummus Co., 210 F.2d 377, 381 (C.A. 5, 1954). The right of a union to charge a reasonable fee for the use of such a hiring hall was the result of Board decision and was based on comparison with the fees paid by members. I know of no rule, by statute or decision, prior to the instant case, and my colleagues cite none, that a union is obligated to furnish to all em- ployees in a unit every service without charge. None of the cases of which I am aware requires a finding that it would be unlawful to charge nonmem- bers any fee whatsoever. Hughes Tool Company, cited and discussed extensively in the main opinion, is fac- tually analogous to the instant situation and is not inconsistent with this approach. For there, as here, the fees imposed on nonmembers-$15 for each grievance and $400 for each arbitration proceeding- were far above those paid by members, $1 per month regular dues. In fact, the Board there held:' . .. all employees in an appropriate unit are en- titled, upon their request, to the impartial assis- tance of the . . . representative in the filing and adjustment of grievances. The duty of the . . . representative to render such impartial assis- tance is clearly evaded where some employees [emphasis supplied] are forced to pay a price for such help or to forego it entirely. . . . [Emphasis in original.] ... By demanding the payment of a $15 or $400 fee by nonmembers as a prerequisite to their obtaining the assistance they are entitled to 6 Local 825, International Union of Operating Engineers, AFL-CIO (H. John Homan Company), 137 NLRB 1043 (1962). ' 104 NLRB at 327-328. MACHINISTS , LOCAL NO. 697 [as compared to regular dues of $1 a month paid by members] as employees in the unit and refus- ing the representation if not paid, the Indepen- dent has abused the privileged status it occupies as certified representative by using that status as a license to grant or deny representation accord- ing to its own arbitrary standards. [Emphasis sup- plied.] However, the Board went on to state that it did "not consider that the measures placed in effect by the [Union] present a permissible solution" for the historic and troublesome problem of employees who accept representation without sharing in its expen- ses.' The Board thus did not indicate that no sharing of costs was possible but said only that there "the record affords some justification for doubting the as- sertion that the . . . fees amount to a `fair and equi- table' sharing of costs." 9 Under these principles, a bargaining repre- sentative's requiring payment of a reasonable fee by all employees for processing a grievance, im- posed upon members and nonmembers alike, cannot be discriminatory treatment of either group, and such a fee to be paid by nonmembers on the same basis as members cannot be unlawful. The only obli- gation imposed on a labor organization by the duty of fair representation is that it accord equal nondis- criminatory treatment to all those whom it represents without regard to membership. The obligation of a labor organization in operating an exclusive hiring hall is to accord equal nondiscriminatory treatment without regard to membership to all who seek refer- ral, and this is at least analogous to the obligation under the duty of fair representation. Both are statu- tory rights and of equal stature under the Act. Accordingly, I find the violation to the extent the fees exceed those paid by members. And for the above reasons I would issue a remedial order requir- ing that Respondent cease and desist from refusing 837 to process grievances for nonmembers unless they pay fees in excess of those paid by members and, affirmatively, that it handle such grievances upon re- quest and upon the offer by any grieving nonmem- bers to pay an amount equal to the monthly dues paid by members for the remainder of the contract. ' Id. at 328. 9 Id. at In. 25. Although the Board in that footnote thereafter observed that the monthly dues "presumably covers the costs of not only grievance and arbitration proceedings but all other facets of union business and bene- fits." nonmembers also enjoy the fruits of most if not all of the union's activities as their bargaining representative; hence the payment of an amount equal to dues would not result in any substantial overpayment for benefits in which they would not share. APPENDIX NOTICE To EMPLOYEES AND MEMBERS POSTED BY ORDER OF THE NATIONAL LABOR RELATIONS BOARD An Agency of the United States Government WE WILL NOT discriminate against nonmem- ber employees in the bargaining unit at the H. O. Canfield Rubber Company of Virginia, Inc., in processing their grievances. WE WILL NOT condition the processing of the grievances of Ronnie G. Carroll, or any other nonmember employee, on the payment of costs incurred by us after the first step of the griev- ance procedure. WE WILL NOT in any like or related manner restrain or coerce employees of the H. O. Can- field Rubber Company of Virginia, Inc., in the exercise of the rights guaranteed them by Sec- tion 7 of the Act. INTERNATIONAL ASSOCIATION OF MACHINISTS AND AEROSPACE WORKERS, LOCAL UNION No. 697, AFL-CIO Copy with citationCopy as parenthetical citation