Pioneer PrintersDownload PDFNational Labor Relations Board - Board DecisionsFeb 15, 1973201 N.L.R.B. 900 (N.L.R.B. 1973) Copy Citation 900 DECISIONS OF NATIONAL LABOR RELATIONS BOARD Noriega Industries Incorporated d/b/a Pioneer Print- ers I and Bindery Workers Union Local 40, Graphic Arts International Union , AFL-CIO, CLC.2 Case 21-CA-10745 February 15, 1973 DECISION AND ORDER BY MEMBERS JENKINS , KENNEDY, AND PENELLO On October 31, 1972, Administrative Law Judge Herman Corenman issued the attached Decision in this proceeding. Thereafter, the General Counsel filed exceptions and a supporting brief. Pursuant to the provisions of Section 3(b) of the National Labor Relations Act, as amended, the National Labor Relations Board has delegated its authority in this proceeding to a three-member panel. The Board has considered the record and the attached Decision in light of the exceptions and brief and has decided to affirm the rulings, findings, and conclusions of the Administrative Law Judge and to adopt his recommended Order, as modified herein. 1. For the reasons stated by the Administrative Law Judge, we agree that Respondent, when it became a successor-employer, did not assume the existing collective-bargaining agreement between the predecessor and the Charging Party.3 For this reason, we agree that Respondent was not obligated to sign the collective-bargaining agreement subse- quently negotiated by the multiemployer association, in which Respondent's predecessor had been a member, and that Respondent did not violate Section 8(a)(5) of the Act by refusing to do so. Accordingly, we find it unnecessary to pass upon the Administrative Law Judge's additional rationale that Respondent, even had it assumed the predecessor's contract, would not be bound by the predecessor's membership in the multiemployer bargaining associ- ation. 2. We agree that Respondent violated Section 8(a)(3) of the Act by refusing to employ Charles Hardy.4 3. The Administrative Law Judge credited testi- mony that after Alonzo Castro had been on the job for a week, Edward Gonzales, an admitted supervi- sor, asked Castro if he was in the Union, and Castro said no. "Gonzales replied that was good because they were trying to get the Union out to make it a non-union shop."5 Although the complaint specifically alleged that Respondent "interrogated employees concerning their union membership, sympathies, and activities," the Administrative Law Judge failed to discuss this alleged violation of Section 8(a)(1) of the Act. Such interrogation interferes with employees' rights as guaranteed them in Section 7 of the Act and by so interrogating Castro Respondent has violated Sec- tion 8(a)(1) of the Act . Accordingly , the Administra- tive Law Judge's Conclusions of Law are amended by substituting the following for paragraph 6 and renumbering the current paragraph 6 as 7: "6. By interrogating employee Alonzo Castro concerning his membership in the Union , Respon- dent has violated Section 8 (a)(1) of the Act." ORDER Pursuant to Section 10(c) of the National Labor Relations Act, as amended , the National Labor Relations Board adopts as its Order the recommend- ed Order of the Administrative Law Judge, as modified below, and hereby orders that Respondent, Noriega Industries Incorporated d/b/a Pioneer Printers, San Diego , California , its officers , agents, successors , and assigns , shall take the action set forth in said recommended Order as herein modified: 1. Substitute the following for paragraph 1(b) of the recommended Order and renumber the current paragraph 1(b) as 1(c): "(b) Interrogating employees concerning their union activities in a manner violative of the provi- sions of Section 8(a)(l) of the Act." 2. In paragraph 2(d) delete the words "Los Angeles" and substitute therefor "San Diego." 3. Substitute the attached Appendix for that of the Administrative Law Judge. Respondent's name appears as amended at the hearing s The name of the Charging Party is amended to reflect the merger, effective as of September 4, 1972, of the International Brotherhood of Bookbinders and the Lithographers and Photoengravers International Union. 3 The Administrative Law Judge found that Respondent followed the economic terms of the contract , although the record shows, and we find, that it followed the contract in logo. However, this difference is not sufficient to alter our decision in this case No exceptions were filed thereto. 5 This quote is from Castro's credited testimony Gonzales testified that he asked Castro whether he belonged to the Union merely as a prelude to telling him he might have to join . However, the Administrative Law Judge generally discredited Gonzales' testimony finding it "nfe with inconsisten- cies;" and specdgcally 'credited Castro's testimony in regard to the interroga- tion. Accordingly, we do not credit Gonzales ' testimony about the incident. See Bishop and Mako, Inc, d/b/a Walker's, 159 NLRB 1159, 1161 APPENDIX NOTICE TO ALL EMPLOYEES POSTED BY ORDER OF THE NATIONAL LABOR RELATIONS BOARD An Agency of the United States Government After a trial at which all sides had a chance to give evidence, it has been decided that we, Noriega Industries Incorporated d/b/a Pioneer Printers, 201 NLRB No. 130 PIONEER violated the National Labor Relations Act. The Board therefore ordered us to post this notice. WE WILL NOT interfere with, restrain, or coerce employees in the exercise of these rights: To engage in self-organization To form, join, or help unions To bargain collectively through a repre- sentative of their own choosing To act together for collective bargaining or for other mutual aid or protection To refrain from any or all of these things. WE WILL NOT unlawfully interrogate employees about their union membership. WE WILL NOT refuse to hire anyone because of his union membership, sponsorship, or activities. WE WILL employ Charles Hardy to the job for which he applied or, if that job no longer exists, to a substantially equivalent job without prejudice to his seniority rights and privileges. WE WILL also make up any pay he lost with 6- percent interest. NORIEGA INDUSTRIES INCORPORATED D/B/A PIONEER PRINTERS (Employer) Dated By (Representative) (Title) We will notify immediately the above-named indi- vidual, if presently serving in the Armed Forces of the United States , of the right to employment, upon application after discharge from the Armed Forces, in accordance with the Selective Service Act and the Universal Military Training and Service Act. 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 question concerning this notice or compliance with its provisions may be directed to the Board's Office, Eastern Columbia Building, 849 South Broadway, Los Angeles, California 90014, Telephone 213-688-5200. DECISION STATEMENT OF THE CASE HERMAN CORENMAN, Administrative Law Judge: Pur- suant to a charge filed on March 9, 1972, by Bindery Workers Union Local 40, International Brotherhood of Bookbinders, AFL-CIO, herein called the Union, the General Counsel of the Board issued a complaint against Noriega Industries, Incorporated d/b/a Pioneer Printers,' PRINTERS 901 herein called the Respondent , on April 25, 1972, alleging violations of Section 8(a)(1), (3), and (5) of the Act. The Respondent 's answer denied engaging in any unfair labor practices. A hearing was held before me on August 24, 1972, at San Diego, California, and the parties were given the opportu- nity to adduce evidence and to examine and cross-examine witnesses . The parties waived oral argument at the close of the hearing , and were given leave to file briefs which have been received from the General Counsel and the Respon- dent. Upon the entire record in the case and from my observation of the witnesses and their demeanor, I make the following: FINDINGS OF FACT 1. THE BUSINESS OF THE RESPONDENT The complaint alleges, the answer does not deny, and I find that the Respondent is, and has been at all times material herein , engaged in the business of printing and bookbinding with its place of business located at 805 West Cedar Street, San Diego, California. Respondent, in the normal course and conduct of its business operations, annually sells goods , products, and services valued in excess of $50,000 to customers located within the State of California, each of whom, in turn, either sells and ships goods, products, and services valued in excess of $50,000 directly to customers located outside the State of Califor- nia, or, alternatively, purchases goods, products, and services valued in excess of $50,000 directly from suppliers located outside the State of California. Respondent is, and has been at all times material herein, an employer engaged in commerce and in an industry affecting commerce within the meaning of Section 2(6) and (7) of the Act. H. THE LABOR ORGANIZATION INVOLVED The Union is, and has been at all times material herein, a labor organization within the meaning of Section 2(5) of the Act. III. THE UNFAIR LABOR PRACTICES A. Background An employer association known as the Union Printing Employers' Association of San Diego , herein called the Association, composed of commercial printers in San Diego , has, during the past 30 years , bargained with and had contractual relations with the four labor organizations, namely, the Lithographers Union, the Typesetters Union, the Printers Union, and the Bookbinders Union, which represent employees in the commercial printing and binding industry. The Association is a loose and informal organization which exists only for the purpose of collective bargaining and arrives at separate agreements with each of the four unions . In 1959, the members of the Association affixed their signatures to a document authorizing the Association to act as an agent for the purposes of 1 The name of the Respondent appears as corrected at the hearing. 902 DECISIONS OF NATIONAL LABOR RELATIONS BOARD negotiating, executing, and arbitrating labor agreements with the respective unions representing their employees. The document recited that the authorization to the Association should remain in effect for the calendar year 1959 "and shall continue in effect thereafter unless revoked by thirty (30) days written notice thereof." Charles D. Francis, superintendent for a previous owner, signed in behalf of Pioneer Punters. Noriega Industries Incorporated d/b/a Pioneer Printers, the Respondent herein, purchased Pioneer Printers from I R Printers on August 14, 1970. At the time of the purchase of Pioneer Printers by the Respondent, there existed an unexpired collective-bargaining agreement between the Association and all of its members, including Pioneer Printers, with Bindery Workers Union Local 40, the Union herein. The term of the collective-bargaining agreement was May 1, 1969, to April 30, 1971. When Respondent took over the business, it continued operations of the business as a successor, engaged in the same operation and with substantially the same work force. In addition, the Respondent continued to observe the economic provisions of the unexpired contract with Bindery Workers Union, continuing to pay the wage rates, health and welfare benefits , and all fringe benefits. With the approaching expiration of the collective-bar- gaining agreement with the Union effective April 30, 1971, the Association in early March 1971 directed letters to members of the Association notifying them of the approaching time to negotiate a new contract and of a preliminary meeting of the Association members, among other things, to select a committee to negotiate with the Union. Both Noriega, Respondent's president, and Gold- stein, Respondent's manager, attended this preliminary meeting of the Association members. There they an- nounced that they did not wish to be represented by the Association and left the meeting. The Association and the Union began contract negotia- tions in March 1971 and reached an agreement for a contract term effective May 1, 1971, to April 30, 1974. During negotiations, through an oversight, the Associa- tion's negotiating committee failed to mention to the union negotiators that the Respondent had notified the Associa- tion that they did not want the Association to represent them. It is undisputed that the Respondent likewise failed to notify the Union that the Association was not its collective-bargaining representative. Hence, the union negotiators remained under the impression , inasmuch as the Respondent was apparently observing the terms of the expiring contract, that the Association was representing the Respondent in the current collective-bargaining negotia- tions and the resulting contract would, therefore, be binding on the Respondent as a member of the multiem- ployer group. Accordingly, in August 1971, Union Representative Wayne R. Wade took copies of the new contract to the Respondent for signature and spoke to Business Manager Goldstein who put Wade off with the excuse that Mr. Noriega, Respondent's president, wanted time to study the contract. Wade returned with copies of the contract in September and again in October 1971 and was again put off with the same excuse by Goldstein. B. Analysis and Conclusions on Respondent's Refusal To Sign the Association Contract The General Counsel contends that the Respondent is part of the multiemployer unit and is bound by this collective-bargaining agreement negotiated by the Associa- tion and the Union for the term of May 1, 1971, to April 30, 1974, by reason of the Respondent 's compliance with the economic provisions , namely , wages, rates of pay, and fringe benefits of the expired 1969-71 contract between the Association and the Union which was in existence at the time the Respondent purchased the business in August 1970. The General Counsel relies on Sacramento Automo- tive Association, 193 NLRB No. 117, which holds that a successor company is bound to the contract of its predecessor as if it were signatory thereto and replaces the predecessor as a member of the multiemployer bargaining unit . The General Counsel recognizes that the Board's decision in William J. Burns International Detective Agency, 182 NLRB 348, which supported the Board's rationale in Sacramento Automotive Association , supra, was reversed by the Supreme Court in N.LR.B. v. Burns International Security Services, 406 U.S. 272 (May 15, 1972), but, nevertheless, contends that the Respondent adopted the predecessor 's contract and thereby became a member of the multiemployer group . I disagree . In the first place, I am of the opinion that the Respondent 's conduct in continuing to pay the economic benefits prevailing when it took over the business does not without more constitute an adoption by it of the contract ; and, moreover , I find it even more difficult to conclude that the Respondent 's continuation of the existing economic benefits thereby made it a part of the multiemployer group . It is not uncommon for an individu- al employer to comply with the economic provisions of a contract negotiated by an association or other multiem- ployer group and still not be a member of that group. Indeed , it becomes the successor-employer's legal duty not to unilaterally change existing terms and conditions of employment. S-H Food Service, Inc., 199 NLRB No. 4. Before an employer may be bound by multiemployer group action , it must have evinced a clear intention to authorize that employer association or group to act as its collective-bargaining agent, or to be bound in the future by group action .2 The Board asserted such a stance in Moveable Partitions, Inc., 175 NLRB 915, where it held that the fact that an employer had adopted a contract negotiated by an employer-association , standing alone, was not sufficient basis for including it in a multiemployer unit . 3 Therefore , in the instant case , even if it were to be assumed , arguendo, that the Respondent had adopted the old contract , that conduct , standing alone , was not sufficient to evince a clear intention to designate the Association as its collective -bargaining representative. To the contrary, in the instant case the Respondent 's officers, some 30 days before contract negotiations began for the 2 Woodworkers Western Regional Council ( Weyerhaeuser Company) v Company, 154 NLRB 4%. 499, Foley Construction Company, 134 NLRB NLRB , 398 F 2d 770 (C A D C, 1968), Korner Kale, Inc, 156 NLRB 1385,13% 1157, 1163, N L R B v Hart, 453 F 2d 215, 217 (C A 9,1971); Van Eerden 3 See also Texas Cartage Company, 122 NLRB 999, 1000 PIONEER PRINTERS 903 1971-74 contract, appeared at a preliminary meeting of the Association members where it notified the members of the Association that it did not want the Association to represent Respondent in collective bargaining with the Union . I find , therefore, that at no time was the Association authorized to represent the Respondent in the negotiations of a contract ; hence , the Respondent was not bound by the 1971-74 negotiated contract between the Association and the Union . The Respondent 's failure and refusal to sign the Association negotiated contract, I find, therefore , was not violative of Section 8(a)(5) of the Act. It is, therefore , recommended that the 8 (a)(5) allegation of the complaint be dismissed. C. The Refusal To Hire Charles Hardy Fred Dix was a bindery employee of the Respondent. He notified Gonzales, the foreman, in early February 1972 that he was quitting in 2 weeks. Dix also notified Union Secretary Betty Brown of his intention to quit and asked her to send somebody down to replace him. Brown telephoned Charles Hardy, who was at the top of the out- of-work list, and told him that he should go to the Respondent's place of business and talk to Mr. Goldstein and see if he could fill the job. Hardy reported to the Respondent in the afternoon of February 22, 1972, and Goldstein referred him to Gonzales. Gonzales admitted on the witness stand that he had been instructed by Noriega and Goldstein that they were not bound by the new contract and that he was not to hire a union man. Accordingly, when Hardy told Gonzales that the Union had sent him down for the bookbinding job, Gonzales told Hardy the job had been filled. Hardy remarked in surprise that the job had been vacated Friday and Gonzales' reply was that it didn't take long to fill a job. Hardy then left. After Dix quit on February 23, 1972, Respondent placed a help-wanted advertisement for a bindery worker in the San Diego Union Tribune for 3 days through February 25. Hardy, on seeing the want ad, telephoned the Respondent and learned the job was still open. Hardy then telephoned the Union of the fact, and Betty Brown, the union secretary, instructed Hardy to again apply for the job. Accordingly, Hardy reapplied for the job in person at the Respondent's office the following day at noon. Gonzales again advised Hardy that the job had been filled, and Hardy left, and reported again to Betty Brown that he was told the job had been filled. Aware of the newspaper advertisement in the help-wanted column, Miss Brown, that same day, phoned the Respondent and identified herself as with the Union and she talked to Gonzales. Brown asked if she could replace Mr. Dix who had just quit. Gonzales replied in the negative, assigning as the reason according to Brown's credible testimony that there was so little work of cutting and folding, that they were going to do it themselves. Immediately after this conversa- tion with Gonzales, Miss Brown phoned Alonzo Castro, who was next on the Union's out-of-work list and instructed him to go down and apply for the bookbinder's job but not to tell the Respondent's representatives that he had been sent by the Union. Castro applied for the job in person a few days after Betty Brown had talked to him, namely on February 28, 1972. Castro talked to Gonzales in the shop . Gonzales inquired about Castro's qualifications and told him he would notify him later because there were more people he had to interview . Castro did not tell Gonzales that he had been referred by the Union. About I week later, Castro phoned the Respondent 's shop and talked to Gonzales who told Castro that he had lost Castro 's phone number and instructed him to report to work . Castro reported to the Respondent as instructed by Gonzales and he was put to work. Castro credibly testified that after he had been at work with the Respondent for 1 week , Gonzales asked him if he was in the Union , and Castro told him, "No." "Gonzales replied that was good because they were trying to get the Union out to make it a non -union shop."4 I do not credit the testimony of Gonzales that Castro applied for the job about a week before Hardy made application and that was why he told Hardy the job had been filled. To the contrary, the testimony of Betty Brown, Hardy, and Castro are consistent and show beyond a doubt that Hardy applied twice and was rejected twice for the job before Betty Brown called Castro and instructed him to apply for the job, cautioning him not to divulge that the Union had sent him. Gonzales' testimony , on the other hand , was rife with inconsistencies. At one point on direct examination by the General Counsel he admitted he had been instructed by management not to hire a union man, then on cross- examination, in answer to a leading question from Business Manager Goldstein , changed his testimony to state that he was instructed that he did not have to hire a union man, but, when confronted with his pretrial affidavit given to a Board agent, agreed with the pretrial statement that he had been instructed by management not to hire a union man. Gonzales again contradicted himself by at one point testifying he did not hire Hardy because he had already hired Castro, while at another point in his testimony, he sought to justify his refusal to hire Hardy because Noriega, Respondent's president, "had someone in mind for the job." The inconsistent reasons advanced by the Respon- dent for refusing to hire Hardy are again manifested in Gonzales' telephone conversation initiated by Betty Brown , when he requested her not to send a man for the job because there was so little bindery work that the Respondent was going to do it without new help. Additionally, it should be noted that the Respondent's refusal to authorize the Association to represent it in negotiating a contract with the Union and its tactics in dealing with Union Representative Wade reinforce the conclusion that the Respondent's refusal to hire Hardy was part and parcel of its plan to make the Respondent a nonunion shop. I am convinced, and I find , that the Respondent 's refusal to hire Charles Hardy discriminated against him because of his union membership and sponsorship , thereby discour- aging membership in the Union , and violating Section 8(a)(3) and (1) of the Act. Upon the basis of the foregoing findings of fact and upon the entire record in the case , I make the following: 4 The quote is from Castro 's credible testimony. 904 DECISIONS OF NATIONAL LABOR RELATIONS BOARD CONCLUSIONS OF LAW 1. The Respondent, Noriega Industries Incorporated d/b/a Pioneer Printers , is an employer engaged in commerce within the meaning of Section 2(6) and (7) of the Act. 2. The Union is a labor organization within the meaning of Section 2(5) of the Act. 3. The Respondent did not authorize the Association to represent it in negotiating the 1971 -74 collective-bargain- ing agreement with the Union and was not at any time a member of the multiemployer unit represented by the Association. 4. By failing and refusing to sign the 1971-74 collec- tive-bargaining agreement negotiated between the Associa- tion and the Union, the Respondent did not engage in unfair labor practices within the meaning of Section 8(ax1) and (5) of the Act. 5. By refusing to hire Charles Hardy, the Respondent discriminated against him because of his union member- ship and/or sponsorship, thereby discouraging member- ship in the Union, in violation of Section 8(axl) and (3) of the Act. 6. The aforesaid unfair labor practices affect commerce within the meaning of Section 2(6) and (7) of the Act. THE REMEDY Having found that Respondent violated Section 8(axl) and (3) of the Act, I shall recommend that it cease and desist therefrom and take certain affirmative action designed to effectuate the policies of the Act. Having found that Respondent violated Section 8(a)(1) and (3) of the Act in its failure and refusal to hire Charles Hardy, I shall recommend that it offer him immediate employment to the position for which he applied or, if that job no longer exists, to a substantially equivalent position, without prejudice to his seniority or other rights and privileges, and make him whole for any loss of earnings he may have sustained by reason of discrimination against him, by paying him a sum of money equal to that which he would have normally earned as wages from the date of discrimination against him to the date of offer of employment to him , less his net interim earnings during such period. Backpay shall be computed in the manner set forth in F. W. Woolworth Company, 90 NLRB 289, with interest thereon at 6 percent in the manner set forth in Isis Plumbing & Heating Co., 138 NLRB 716. Upon the basis of the foregoing findings of fact, conclusions of law, and upon the entire record in the case, and pursuant to Section 10(c) of the Act, I recommend issuance of the following: 5 S 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 6 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 Respondent , Noriega Industries Incorporated d/b/a Pioneer Printers , its officers , agents, successors, and assigns, shall: 1. Cease and desist from: (a) Discriminating in regard to the hire or tenure of employment or any term or condition of employment of any employee because of his union membership , sponsor- ship, or activities , to discourage membership in any labor organization. (b) In any other manner interfering with, restraining, or coercing its employees in the exercise of the rights guaranteed in Section 7 of the Act, except to the extent that such rights may be affected by an agreement requiring membership in a labor organization as a condition of employment , as provided in Section 8(aX3) of the Act, as amended. 2. Take the following affirmative action which it is found will effectuate the policies of the Act: (a) Offer immediately to employ Charles Hardy to the job for which he applied or, if that job no longer exists, to a substantially equivalent job, without prejudice to his seniority rights and privileges. (b) Make said Charles Hardy whole for any loss of earnings he may have sustained by reason of Respondent's discrimination against him , by payment to him of a sum of money he would have earned from the date of the discrimination until the date of the Respondent 's offer of employment, less his net interim earnings during said period, loss of earnings to be computed in the manner set forth in the section entitled "The Remedy." (c) Preserve and, upon request , make available to the Board or its agent, for examination and copying, all payroll records, social security records, timecards , personnel records and reports, and all other records necessary or useful to determine or compute the amounts of backpay due, if any. (d) Post at its plant in Los Angeles, California, copies of the attached notice marked "Appendix." 6 Copies of said notice to be furnished by the Regional Director for Region 21, shall , after being signed by a duly authorized representative of Respondent , be posted immediately upon receipt thereof and maintained by it 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 such notices are not altered , defaced , or covered by other material. (e) Notify the Regional Director for Region 21, in writing, within 20 days from the date of receipt of this Decision , what steps Respondent has taken to comply herewith.? (f) The 8(ax5) allegations in the complaint are dismissed. 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." I In the event that this recommended Order is adopted by the Board after exceptions have been filed, this provision shall be modified to read. "Notify the Regional Director for Region 21 , in writing, within 20 days from the date of this Order, what steps Respondent has taken to comply herewith." Copy with citationCopy as parenthetical citation