Red Top Cab & Baggage Co.,Download PDFNational Labor Relations Board - Board DecisionsFeb 3, 1964145 N.L.R.B. 1433 (N.L.R.B. 1964) Copy Citation RED TOP CAB & BAGGAGE CO., ETC . 1433 MEMBER LEEDOM, concurring : I concur only in the result.6 MEMBER JENKINS took no part in the consideration of the above Decision and Direction of Election. 0 See my dissent in Martino 's Complete Home Furnishings, 145 NLRB 604. Red Top Cab & Baggage Co., Yellow Cab Company of Miami, Checker Cab Operators , Inc., B & S Taxi Corp., Yellow Cab System and John A. Kurtz. Case No. 12-CA-2380. February 3, 1964 DECISION AND ORDER On August 22, 1963, Trial Examiner A. Norman Somers issued his Intermediate Report in the above-entitled proceeding, finding that Re- spondents had engaged in and were engaging in unfair labor practices and recommending that they cease and desist therefrom and take cer- tain affirmative action, as set forth in the attached Intermediate Re- port. The Trial Examiner also found that Respondents had not en- gaged in other unfair labor practices alleged in the complaint and recommended that such allegations be dismissed. Thereafter, Re- spondents filed exceptions to the Intermediate Report and a support- ing brief.' Pursuant to the provisions of Section 3 (b) of the Act, the Board has delegated its powers in connection with this case to a three-member panel [Chairman McCulloch and Members Leedom and Jenkins]. The Board has reviewed the rulings made by the Trial Examiner at the hearing and finds that no prejudicial error was committed. The rulings are hereby affirmed. The Board has considered the Intermedi- ate Report, the exceptions and brief, and the entire record in the case, and hereby adopts the findings,2 conclusions, and recommendations of the Trial Examiner with the following additions : We agree with the Trial Examiner that Kurtz's concerted activities in protesting against alleged favoritism in dispatching at the airport, which adversely affected his earnings and those of his fellow cab- drivers, were protected by Section 7 of the Act. We also agree with the Trial Examiner that Respondent corpora- tions operating as members of the Yellow Cab System were joint em- 'Respondents requested oral argument . This request is hereby denied because the record, the exceptions , and the brief adequately present the issues and the positions of the parties. 2 The Intermediate Report incorrectly states that the upper ramp at the airport is not covered by Respondent Red Top's exclusive franchise and that the airport is in Miami. The record shows that the franchise covers the upper and lower ramps and that the air- port is not within Miami city limits but within Dade County. We hereby correct these inadvertent errors. 145 NLRB No. 138. 1434 DECISIONS OF NATIONAL LABOR RELATIONS BOARD ployers of Kurtz and of other drivers similarly situated and are there- fore jointly liable for the discharges of Kurtz brought about by their agents. Moreover, even assuming that Respondent corporations were not employers of Kurtz in the common law sense, their relationship to the owners of the cabs and the immediate employers of Kurtz was so close and they had such control over the employment relationship be- tween drivers and owners as to make them liable as employers under the Act for the discharges of Kurtz which their agents caused.3 The evidence is clear that all the owners in the Yellow Cab System who em- ployed Kurtz were satisfied with his services and wanted to retain him. But they nevertheless discharged him under economic pressure from top officials and supervisors in the Yellow Cab System, including Norton Segal, Stanley Segal, and Jerry Nudelman, who had insisted upon such action as a reprisal measure against Kurtz for having pro- tested against alleged unfairness in dispatching. Accordingly, we find, as did the Trial Examiner, that by terminating or causing the termination of Kurtz's employment for the reason stated, Respond- ents interfered with, restrained, and coerced him and other drivers in the exercise of rights guaranteed in Section 7 of the Act, thereby violat- ing Section 8(a) (1). ORDER The Board adopts the Recommended Order of the Trial Examiner with the modification noted below.4 3 Operating Engineers Local Union No. 3 of the International Union of Operating Engineers, AFL-CIO ( St Maurice, Helkamp & Musser) v. N L R B , 266 F 2d 905, 909 (C.A.D.C ), cert. denied 361 U S. 834 ; Hurd Corporation, 143 NLRB 306 ; Austin Company, 101 NLRB 1257. Member Leedom agrees that the Respondent corporations violated Section 8 ( a) (1) of the Act. However , in reaching the conclusion that the Respondent corporations were re- sponsible for the discharges of Kurtz, he relies solely on the fact that they were Instru- mental in bringing about such discharges and participated therein. Austin Company, supra. Member Leedom therefore finds it unnecessary to decide whether an employer- employee relationship existed between the Respondent corporations and Kurtz or between the Respondent corporations and the owner- drivers See his position in Hurd Corporation, supra, footnote 2. 'The Recommended Order is hereby amended by substituting for the first paragraph therein the following: Upon the entire record in this case , and pursuant to Section 10(c) of the National Labor Relations Act, as amended , the National Labor Relations Board hereby orders that Respondents , Red Top Cab & Baggage Co., Yellow Cab Company of Miami, Checker Cab Operators , Inc, B & S Taxi Corp, Yellow Cab System, their officers, agents , successors , and assigns , shall: INTERMEDIATE REPORT AND RECOMMENDED ORDER STATEMENT OF THE CASE This case, with all parties represented, was heard before Trial Examiner A. Norman Somers in Miami, Florida, on October 15 to 18, 1962, and April 3 to 5, 1963, inclusive, on complaint of the General Counsel and answer of Respondents.' The issue is whether Respondents violated Section 8(a) (3) and (1) of the Act in terminating John A. Kurtz as a driver within Respondent Yellow Cab System. I John Kurtz filed a charge on June 18 and an amended charge on August 23 , 1962. The General Counsel issued his complaint on August 31, 1962. RED TOP CAB & BAGGAGE CO., ETC. 1435 The parties presented oral argument, and the General Counsel and Respondents filed briefs, all duly considered. On the entire record, and from my observation of the witnesses, I make the following: FINDINGS OF FACT 1. THE BUSINESS OF RESPONDENTS Of the five Respondents, Yellow Cab System is not a corporation and the other four are: they are Florida corporations owned and controlled by a family of a father and three sons called "the Segals." Together, they are part of a coordinated taxi operation in Miami, termed the "Yellow Cab System," with a central dispatch office in downtown Miami, in Dade County. The custodian of the Segals' interest in this taxi operation is Respondent Red Top Cab & Baggage Co. In its formal aspects, Red Top Cab is the full corporate parent of Respondent B & S Taxi Corp., and the interlocking affiliate of the other two corporate Respondents (infra, foot- notes 9 and 13); in its practical aspects, it embodies the Segals' interest in the taxi operation of Respondent system across the board. Red Top Cab has for years had an exclusive franchise from the Dade County Port Authority to furnish taxi service at the Miami International Airport (hereafter called the airport)? It furnishes that service through cabs operating under permits from the city of Miami, title to which is distributed among the corporate affiliates within Respondent Yellow Cab System, 161 being owned by the 3 lesser corporate Respondents in this case. The Segals also own and control Red Top Sedan Service, Inc., a Florida corpora- tion (not a respondent here), which has a separate exclusive franchise from the same port authority for rendering limousine service at the airport. The System and all the corporations within it, whatever the service, are located at 1000 Lejeune Road, Miami, near the airport (the cab operation also having the central dispatch office at the location in downtown Miami, previously mentioned). The revenue of the cabs operating under the 161 permits of the 3 corporate Respondents exceeds $1,000,000 a year. It is found and concluded that Respondent corporations, operating as Respondent Yellow Cab System, are engaged in inter- state commerce within the meaning of the Act and that it would effectuate the policies of the Act to assert jurisdiction herein. Cf. City Transportation Company, 131 NLRB 814, enfd. 303 F. 2d 299 (C.A. 5), cert. denied 371 U.S. 920. H. THE ORGANIZATION INVOLVED International Taxi Drivers and Owners Association (called the Association) is a Florida nonprofit corporation, membership in which is open to drivers of cabs, owners or nonowners, in Dade County. The purpose recited in its certificate of incorporation is "to promote the general welfare and better business opportunities for [its members]." Kurtz and various owner-drivers testified that it had been formed specifically to help improve their "working conditions" at the airport, and to get their "fair share of the business" there. Respondents deny that the Association is a labor organization within the mean- ing of Section 2(5) of the Act. For reasons later stated (infra, footnote 36) we shall not reach that issue. M. THE UNFAIR LABOR PRACTICE A. The issue This case arises out of Kurtz' concerted activities in connection with a dispute over the allocation of patronage as between limousines and cabs at the airport. This, in turn, was an outgrowth of the change initiated in mid-1959, in respect ,to Respondents' taxi operation. Before the change, both the limousine and the taxi drivers were concededly employees. Under the change, the limousine operation remained as before, but the cab operation was conducted under an "owner-operator" arrangement, whose corporate complexities will engage our brow-knitting efforts later. The point here is that after that occurred many cabdrivers thought the starters at the airport had abandoned their former impartiality and were now favor- ing limousines over cabs in steering patrons. Among these was John A. Kurtz, who drove for an "owner-operator" on a commission basis. He sent petitions to the public authorities in an effort to rectify the grievance and voiced it openly at a meeting held by the port authority. He also obtained authorizations from owner 2 It has similar exclusive franchises at two railroad stations and the Southern Bell Tele- phone Building in Miami. 1436 DECISIONS OF NATIONAL LABOR RELATIONS BOARD and nonowner drivers in the System to "represent" them, and circulated a petition for removal of a particular starter. During these activities , Respondents declared Kurtz to be "undesirable" as a driver within the Respondent System, and successively required five "owner -operators" to dispense with his services under threat of being themselves ousted from the System if they resisted. At the same time, Respondents barred Kurtz from the use of all centralized facilities of the System. Apart from disputing that they terminated Kurtz because of the above activities, Respondents contend that even if they had, they are immune under the Act on the ground there was no employment relation between them and Kurtz and also that his activities were not protected by the Act. B. The Segals' Yellow Cab System and its composition up to mid-1959 The Respondent System , as comprised in 1959 , was made up of preexisting cor- porations bought up by the Segals . Years before , they started in the taxi business with Yellow Cab Co . of Miami (now one of the three lesser corporate Respondents). Later, they bought out other taxi corporations in Miami, acquiring in each instance, aside from the stock and equipment , the all -important taxi permits of each com- pany, as issued by the city of Miami (such a permit being the indispensable basis for a cab's capacity to operate, i.e., pick up passengers, in that City) .3 The Segals made their most significant addition in 1949 when they bought up Red Top Cab, with its exclusive taxi franchise at the airport, and from the same owners, they acquired also Red Top Sedan, which as stated , has the exclusive limousine franchise there.4 The Segals amalgamated the management of all their corporations under a single administration, which they called the Yellow Cab System. They continued the sep- arate corporate entities (including the taxi corporations' title to the permits), but the acknowledged employer of the entire personnel, whatever the service (including even a car rental service), was the System. There was, as there still is, one address and one telephone number for the System; there was also one set of officers and directors for every corporation in it, one general manager, and one personnel manager. The vehicles bearing the "Yellow Cab" designations have been the taxicabs, they being additionally identified by a uniform color scheme of yellow and black. The limou- sines have a different color scheme, and the designation appearing on them has always been the corporate name-Red Top Sedan Service.5 C. The change to "owner-operator" arrangement 1. Introductory: the cab permits involved As A. S. Costanzo, the lawyer who prepared the papers embodying the transition, aptly put it, "It's a complicated setup." In 1959, the Segals, while continuing their interest in the limousine revenues, shed their direct interest in the revenues of the cab operation. However, they retained control over both operations, over the limousine as before, and over that aspect of the cab operation which is capable of being used in discharging Red Top Cab's commitment to the port authority to furnish taxi service at the airport. This last can be done only through cabs operating under Miami permits, because the airport is in Miami. As stated previously (supra, footnote 4), the corporations operating under permits outside Miami were sold outright-stock, equipment, and permits (subject to the customary pledge as collateral for the purchase price). These did not re- main in and are no longer a part of Respondent Yellow Cab System .6 8 Although a permit from any municipality in Dade County allows taking a passenger to any point in the county, the crucial item is where a cab 'can pick up passengers. A cab can only do so within the domain of an incorporated subdivision of Dade County (such as, for example , Miami, Coral Gables, or Miami Beach ) under a taxi permit from that particular municipality. 4 Before the change in 1959 , the Segals acquired and included in their Yellow Cab Sys- tem taxi corporations operating outside Miami under permits from those respective munici- palities (Miami Beach, Coral Gables, supra, footnote 3). These have been sold outright to others , and are no longer part of Respondent Yellow System. 5 There now also appears the name , "Miami Beach Air Transport Service, Inc " We are advised by counsel that whatever that entity's separate function within the limousine operation for any other purpose or in any other context, for purpose of this case, it is to be deemed the same as and interchangeable with Red Top Sedan. 6 Some still use the "Yellow Cab" designation , but in their case it is a trade name used only for goodwill. They are not part of Respondent Yellow Cab System or within the controls or disciplines of the System. RED TOP CAB & BAGGAGE CO., ETC. 1437 Distributed among the taxi corporations within Respondent System were ap- parently 202 taxi permits issued by the city of Miami. John S. McKenna, general manager of the Yellow Cab System before and after the change,7 testified that the opportunity to share in the profits of the cab operation was extended only to our employees." Thereafter the use of 161 of these permits was accorded to Respond- ents' rank-and-file cabdrivers under the standard "agreement and conditional sales agreement" next to be described.8 2. The standard "Agreement and Conditional Sales Contract" used in the "owner-operator" arrangement a. The parties thereto Involved in the arrangement covered by the "agreement and conditional sale con- tract" are the 161 permits, title to which is distributed among the 3 corporate Re- spondents other than Red Top Cab. The contract is in standard form consisting of 27 articles (and a 5-paragraph "whereas" preamble) spread over 12 pages of extra legal size. Each separate contract is between the specific "Operator" on the one hand, and on the other, the given one of the three corporate Respondents having title to the permit (or permits) involved, and the Segals or Red Top Cab as "owner" of that corporation .9 b. The subject matter of the agreement and the financial obligations of the operator under it Under the agreement the "Operator," for each permit involved, buys from the Segals one share of "Class A" stock in the given corporation named in the contract (supra, footnote 9). The balance after the downpayment is payable in installments of $17.50 a week, with the share of stock pledged as security. In return, the desig- nated corporation gives the operator the use of the permit, an Ohmer taximeter, and a two-way radio. Additionally, the operator agrees to pay to the given corporation a sum "imposed to defray the costs of the corporate operating expenses ... as deter- mined and voted by a majority of the stockholders of the Corporation." (Paragraph 6.) As carried out, the operator pays Red Top Cab a sum, currently $35 a week, toward defraying the expenses of the cab operation of Respondent System. These expenses include, first, Red Top Cab's payment to the port authority of $100,000 a year for the taxi franchise; and secondly, the portion of the salaries of the limousine corporation personnel prorated as a service to the cab operationle They include also the cost of operating the central radio dispatch, the telephone services and clerical expenses of the centralized operation, and the premium paid by Red Top Cab on an overall policy of public liability insurance for all cabs operating within the System. The operator furnishes the cab; he buys it on his own, or, as is usually the case, through the System, but the corporation designated in the contract retains title in the cab, first because of the overall public liability insurance policy referred to, and secondly, as security for the operator's performance of his various obligations under the contract (default in which results in forfeiture of his equity, unless he has paid up for the cab in full). He also buys his own gasoline and secures and pays for the cab's maintenance. He retains the actual fares collected, whether by him or P He was a carryover from the management of the two Red Top corporations before the Segals acquired them. s The residue of 42 ultimately went to a newly formed corporation called Big Ten Taxi Corporation (not a respondent). Its composition is of an altogether different stamp, and will be separately treated in due course. 0In the Checker and Yellow of Miami contracts (General Counsel's Exhibits Nos. 4 and 6), the named "owner" is "the Segals" In that of B & S (General Counsel's Exhibit No 5) it is Red Top Cab. The interest thereby denoted is in all instances the same : Yellow of Miami and Checker were preexisting corporations, and the Segals own them in their names ; B & S was newly formed for purpose of the "owner-operator" arrangement here involved, and the Segals own it through Red Top Cab 10 These embrace the salaries of the starters and head starter at the airport, the salary of Jerome Nudelman, personnel manager formerly of both services and now (avowedly) only of the limousine service ; of McKenna, general manager of the System for both services and vice president of all Respondent corporations and of Red Top Sedan ; and James Andrews, safety and insurance director of the System for both services. The record does not show whether this exhausts the list or includes other interlocking officers, such as William Segal and Victor Behar, president and secretary, respectively, of all Respondent corporations and of Red Top Sedan. 1438 DECISIONS OF NATIONAL LABOR RELATIONS BOARD whoever drives for him, subject to such arrangement as the two make with each other.11 3. The control over the taxi operator retained by the Segals (Red Top Cab) a. The Segals' power as the majority stockholders For each share of class A thus sold to the operator in the designated corpora- tion, the Segals (Red Top Cab, supra, footnote 9) retain two shares of class B stock. While only class A is "participating," both classes are "voting" stocks (paragraph 1). The Segals thus outnumber the "owner-operators" in each corporation on a 2-to-i basis, and in respect to each designated corporation, are the "majority of the stock- holders of the corporation," who fix the weekly assessment that the operator must pay to defray the overall cost of the System's cab operation. Additionally (under paragraph 10) the class B stockholders elect four, and the class A holders three, of the seven directors of the given corporation. Under paragraph 13, the opera- tor is bound by the "uniform rules and regulations adopted by the board of directors of the corporation" named in the contract.12 The four majority directors of each of the three designated corporations are the four sole directors of Red Top Cab, the interlocking being shown in the marginal note below.13 u The arrangements will vary with the individual. If Kurtz' case is typical, it may be on the basis of half of what he collects above the expense for gas, or on a "lessee" basis, whereby he retains a percentage subject however to the guaranty of a minimum amount for the owner as lessor, or if he drives for a large "fleet" owner, like Moishe Zilber, it may be on a smaller percentage, with no allowance for gas expense, and the fleet owner even deducting for social security and tax withholding. 19 These rules and regulations are therein described (ibid) as being "for the purpose of assisting in the proper operation of the taxicab business in [Miami and Dade County], covering among other things, but without limitation, rules and regulations relating to the dispatch and traffic control of cabs, the use of taxi stands, the servicing of transportation accounts, display of advertising, and maintenance and care of the Operator's taxicab." 18 The directors and officers of the corporate respondents are: DIRECTORS Yellow of Miami Checker (Elected B & S (Elected by Red Top Cab (Elected by class by class B) class B) B) 1----------------- Wm Segal________ Wm Segal________ Wm Segal________ Win Segal 2----------------- Norton Segal______ Norton Segal______ Norton Segal______ Norton Segal. 3----------------- Stanley Segal_____ Stanley Segal_____ Stanley Segal_____ Stanley Segal. 4----------------- John S. McKenna- John S McKenna_ John S McKenna_ John S McKenna. (Elected by class A) (Elected by class A) (Elected by class A) 5----------------- -------------------- Moishe Zilber_____ Sophia____________ Jack Eisenberg. 6----------------- -------------------- Bertear___________ _________Sweedler---------- Ted Ungerman. 7----------------- -------------------- Henry Storck_____ Friedman---------an ---- Gilchrist. OFFICERS Red Top Cab Yellow of Miami Checker B&S President-------- Wm. Segal________ Win. Segal _____-__ Wm Segal________ Wm Segal. Vice president____ John S. McKenna- Jack Eisenberg____ M Zilber_________ Sophia. Morris Segal*_____ Treasurer-------- Stanley Segal_____ Norton Segal______ Norton Segal______ Norton Segal. Secretary________ Victor Behar______ Victor Behar______ Victor Behar______ Victor Behar. * Father of the Segals Though sharing stock ownership with the sons, so far as the record shows he is operationally a dormant figure. RED TOP CAB & BAGGAGE CO., ETC. 1439 Respondent claims the above power of the Segals is qualified by two other pro- visions. Under paragraph 7, if the operator has paid up in full, and at least 10 years have elapsed, he may demand title to the permit. But if he does so, he must surrender his share of stock for cancellation, which means that he has eliminated himself from Respondent System and has thus given up the very features that accounted for the price he paid. Under paragraph 8, if all class A holders of any given corporation shall have paid up for their shares in stock in full, the Segals will give up their class B stock and relinquish their offices and directorships in that corporation. But to avail themselves of the franchise rights belonging to Red Top Cab and of its centralized facilities, they must be part of the System and submit to its controls. Transcending this is that each item thus mentioned projects into a remote future, not affecting the power that exists in the here and now. b. The "Policy Board" as the governing body of Respondent System The present governing body of the System's taxi operation consists of all the directors in combination. This composite group is called the "Policy Board." General Manager McKenna testified its function is the same as those of the prior four directors for all the corporations across-the-board; indeed, that this body is alternatively (and more often) called the "Board of Directors." The Segals' governing role in each corporation considered separately is reflected in the decisive majority of their directorships in all of them considered compositely (supra, foot- note 13). But according to McKenna and Nudelman, the vote at the meetings of the policy board is only by individuals and thus the nine minority directors are really a majority, since despite all the directorships occupied by the Segals, as individuals they are four in number, in contrast with "the 9." This is a rather singular re- nunciation of power, never confirmed by the Segals (none of whom testified) or by any writing. Indeed, none is claimed to exist. The only instrument defining the rights of the Segals (or Red Top Cab) and the operator is the contract. Under paragraph 13, the "uniform rules and regulations" by which the operator is bound are those adopted by the directors of the given one of the three corporations in each instance. Under paragraphs 20 and 21, these are enforceable through the power of the given corporation to declare the operator in "default" and the addi- tional powers of the Segals therein provided to recapture the share of stock sold and forfeit the right to use the permit. The minority group of nine, as may be assumed, perform a useful administra- tive function. As persons with experience in the field, their ideas of sound prac- tices in a unified cab operation on such matters as courtesy to the public, and fair dealings of cabdrivers with each other (such as forbidding "stealing a passenger," or "shooting the radio," etc.) would naturally accord with that of the Segals, and in matters of that character there would be no necessity for the Segals, indeed it would be more serviceable to them not, to take the initiative. In the matter of administration of the rules, there is a "trial committee" of three or four members, chosen by the policy board from among "the 9," which sits as a "court" to try charges of infractions of rules or regulations by cabdrivers and impose a sentence. That, too, is an administrative convenience to the Segals. But all of the above can only be on the basis of an implied delegation from the Segals to "the 9" on an ad hoc basis subject to what the Segals deem consistent with their own interest . Such rules or regulations as inherently make sense in a unified operation and present no question of conflict with their own interest, would expect- ably not be opposed by the Segals, and though they will acquiesce in it, the rule is still one "adopted" by them. The same applies to disciplinary action . On matters in which their interest is involved, there is nothing in the existing instruments of power which requires the Segals to subordinate their interest to any interest of the operators, singly or in combination; and nothing in the record supports any intima- tion that this has occurred. Such instances as appear ,in the record show the reverse. c. The additional man on the "Policy Board"; Jerome Nudelman Presiding at the meetings of the policy board is General Manager McKenna. Present also is Jerome Nudelman. As earlier stated (supra, footnote 10), he is "personnel manager formerly of both services and now (avowedly) only of the lim- ousine service." The parenthesized avowal came from himself. He is concededly still the direct superior of Arthur Catterlin, the head starter at the airport, and is generally in charge of the System's airport operation. As such, his salary, though paid by Red Top Sedan, is among those prorated as an expense also of the cab op- eration (supra, footnote 10). 1440 DECISIONS OF NATIONAL LABOR RELATIONS BOARD Since his managerial position in the System is second only to that of McKenna, his presence at all the meetings would be understandable if frankly based on its reach- ing into both services in the same manner as McKenna's. But Nudelman disavowed this. He claimed that the managerial authority he had theretofore had over both operations is now confined to the limousine operation. On that basis, Nudelman's regular presence at the meetings of the policy board concerned with the cab opera- tion would be incomprehensible, except, as he claimed, that he is there as an addi- tional member of the policy board representing the interests of Big Ten Taxi Corp., on the same basis as "the 9" previously discussed. That corporation, a nonrespondent, has earlier been identified as (apart from Red Top Cab) the fourth corporate member of the Respondent System's cab operation (supra, footnote 8), and as the holder of the residual 41 permits remaining after the 161 disposed of in the owner-operator arrangement with the erstwhile avowed rank-and-file employees. Though it has no class A-class B division of stock, we were told that it too is entitled to designate three members on the policy board, and we were told it had only one such-Nudelman, who is its president and one of its four directors-a strange renunciation of rights in a body where the count, as claimed, is by individuals. The details developed at the resumed hearing showed a composition and structure of a distinctly different character from the three corporate Respondents whose permits are under the "owner-operator" arrangement. Its officers and directors are all, like Nudelman, salaried officials of the limousine corporation, whose services are chargeable pro rata to the cab operation. Its vice president is James Andrews, in- surance and safety director of the System; 14 its treasurer is Head Starter Catterlin, and its secretary is Victor Behar, the secretary of all the other corporations (supra, footnote 13) and who, Catterhn explained, "has been taking care of the books of the Company [the Yellow Cab System] for a long time." Witnesses for Respondents testified Big Ten's purpose was to enable valued su- pervisors too to "share in the profits" of the cab operation, that a new corporation was formed with 100 shares of stock distributed equally among 10 persons (which accounts for the name), and that each paid $1,000 for his 10 shares. The six stock- holders other than the four officers and directors previously mentioned, include Nor- man Segal, a college student and son of one of the Segals, a Mr. Woodbury, who had been in charge of checking cabs at the central dispatch office, and four whose presence is hardly explainable on the basis previously described.15 Catterlin testified to a detachment from Big Ten's actual operations which would seem typical of the rest, except Woodbury.is The one stockholder directly concerned in Big Ten's actual operations is Woodbury, who manages the corps of cabdrivers operating under the 41 permits allotted to Big Ten. (This is done directly out of the System's downtown dispatch office, where its cabs are garaged and maintained, as all the System's cabs had been before the "owner-operator" change.) Assuming Big Ten were an operation genuinely divorced from the Segals, one would normally expect Woodbury to be the representative of Big Ten's interest on the policy board, and he is neither that nor an officer or director. The probabilities, confirmed by Nudelman's role in the events here involved, persuasively point to his exercising the same functions across the board as before-in the limousine service in name and in fact, in the cab operation in fact, though not in name. d. The powers of control and supervision as in fact exerted As previously stated, the franchise agreement requires Red Top Cab, as the "Car- rier," to provide continuous taxi service at the airport and to exert detailed supervision 14 He is also paid by the insurance company which issues the overall liability policy. 15 They are a Mr. Voetto, who drove a limousine for 25 years, a Mr. Nitschke, who drove a cab but is now in an unrelated business enterprise In Miami Beach, and a Mr. Silver and a Mrs. Owsley, about whom Catterlin, who was the source of all this information, could not enlighten us. 1e Though Catterlin is the treasurer, he testified he never actually performed as such, the designation being more or less "honorary." Nudelman testified the $1,000 for the 10 shares of stock paid by each stockholder was really a downpayment on the taxi permits sold by the Segals to Big Ten (at $7,500 each)-subject to a pledge to secure payment. Catterlin testified he has put in nothing beyond the $1,000 for the stock, presumably paid in July 1961, when the Big Ten was formed. (At that time it was given only 22 permits, the additional 19 were transferred to it well over a year afterward from a Segal-owned corporation now apparently defunct-lxreen Cab & Baggage ) Neither has he taken any- thing out except "just enough to pay my Income tax on what the corporation shows a profit on." RED TOP CAB & BAGGAGE CO., ETC. 1441 over "its drivers." The agreement requires it to "instruct each of its drivers as to, the method and procedure used at the Airport" (article III(e) ), to "maintain its vehicles and other equipment in clean, first class, operable condition, and maintain efficient and courteous service to the public," and to "control the conduct, demeanor, and appearance of its officers, employees, agents, and representatives" (article IX). [Emphasis supplied.] The degree of control and supervision as actually exerted exceeds what even the franchise requires. Control over who may drive a cab within the System: All drivers must pass a preliminary fitness test at the central dispatch office of the System and receive their general instructions there. The "owner-operators" are a preapproved group (since they are all erstwhile employees under the old setup). Anyone driving for an "owner-operator," as did Kurtz, must likewise pass the same test. Should he there- after be declared "undesirable" by the System, the "owner-operator" may not retain him, or himself be declared "in default." Exemplifying this were the five for whom Kurtz last drove. The last, Louis J. Wine, was notified by letter that he was "in default" of his contract and subject to its seizure provisions. At the same time all owners were sent a notice as follows: Effective immediately, owners will be required to clear prospective drivers, of their taxicab with the radio room to determine whether the driver is eligible. to drive. Failure on the part of the owner to comply with the above regulation will' result in severe disciplinary action since it will constitute a direct violation of the contract existing between the owner and the corporation. Transferability of interest: Except where the intended transferee is a preapprovedi person who already has signed a contract with one of the three corporations, the "owner-operator" may not sell or transfer his interest to another without the written consent of "the Corporation." John Shaw, the first of the persons forced to drop Kurtz, was then not yet an "owner-operator" but a "lessee" from one (Sam Ruban), with an option to purchase. He was told by one the Segals and Jerome Nudelman that if he did not dismiss Kurtz, the assignment of the contract from Ruban to him would not be "approved," which would have meant a for- feiture of his equity. Control over where to operate cab: After the owner-operator arrangement was instituted, Respondents limited the access of the cabs to alternate days (on an odd, number-even number basis ). At first this applied merely to the area which is the subject of the exclusive franchise of Red Top Cab-the lower ramp, where. the limousines are also located and where the starters direct traffic. The upper ramp is not within the franchise and is available at all times to all Miami cab- drivers. Thus, it would be available that way to Respondents' drivers too except for the fact that the limitation which Respondents had previously put into effect for the lower ramp they have since put into effect for the upper ramp as well. Manner of operating: General Manager McKenna testified the board of directors, or policy board, supervises the actual operations of cabs, by owners and non- owners alike , in respect to such matters as courteous treatment of passengers, poor radio coverage, uncovered cab stands, the appearance of the drivers, cleanliness of the cabs, the kind of advertising that the cabs may carry, etc. This is indeed ex- pressly encompassed by the "uniform rules and regulations" provision of the basic contract (supra, footnote 12). In respect to radio coverage, all cabdrivers are subject to the instructions on the mimeographed "Yellow Cab System Radio Pro- cedure," issued by the central radio and dispatch office, listing the various "radio, call points" identifying the cab stands, and stating: The stands to be called for any order will be determined by the Dispatcher according to the procedures approved by the Board of Directors and are not subject to challenge or discussion on the air. Any question concerning these procedures should be directed to the Board. Centralized personnel system; comparison with preceding system: Respondents maintain in the dispatch office the same personnel cards for all cabdrivers, owners and nonowners, as had been there prior to the change, and with the same kind of entries. Previously, this was part of Nudelman's functions. Now it is done by Robert Staton, Jr., Nudelman's former assistant, who testified that thought he is now paid on a "contract" rather than salary basis, the personnel cards and records are handled in the same way as before. And the entries are premised on a rela- tionship hardly different from before. Thus, an entry for an employee made before change to "owner-operators," read: "Separated-Liar-Sandbagger-Agitator-No rehire under any circumstances." That for Kurtz, dated May 29, 1962, reads: 734-070--64-vol. 145-92 1442 DECISIONS OF NATIONAL LABOR RELATIONS BOARD "Discharged by Board-No Rehire-Agitator." That for a driver severed even later (Frank W. Leonard) reads: "Fired by Board-11/28/62 Chronic Offender, Sharpshooting, Stealing Jobs, etc. NO REHIRE." The entries for three "owners," made since the new arrangement, are also of the kind one normally finds for an employee.17 Limitation on right to abstain from driving: Respondents retain substantial con- trol over the drivers' choice as to whether to refrain from driving. In June and August 1961, certain owner-drivers engaged in work stoppages at the airport in protest over the manner in which the starters were steering patrons at the airport. After the August stoppage, William Segal, as president of Red Top Cab, wrote them they were barred from using the airport, calling attention to Red Top Cab's obligation under the franchise to provide taxi service. While the letter would sug- gest that their naked refusal to operate their cabs was considered a violation of the rules, it was not altogether clear whether this was the position taken or whether the claimed offense lay in that they had hindered traffic at the airport. Respondents clarified this at the resumed hearing. During the summation, counsel stated Re- spondents interpreted the contract as one imposing a "no strike" obligation on the drivers, on the ground that to engage in one would interfere with Red Top Cab's own commitment to provide continuous taxi service at the airport. Discipline and sanctions: For violation of a rule or regulation of the System as laid down and interpreted by Respondents, a nonowner is subject to discharge out- right. As to an owner, his obligation to comply therewith is one of the "terms, conditions, or stipulations" of the agreement, for violation of which "the Corpora- tion" may declare the Operator "in default," and if not corrected within the time therein specified, the entire unpaid balance becomes "immediately due and pay- able," and "in addition thereto" [emphasis supplied] the Segals and the Corporation may vest themselves with title to the share of class A stock, which eliminates him from Respondent System.18 These provisions (paragraphs 13, 20, 21) were spe- cifically invoked against Louis J. Wine to force him to dispense with Kurtz. The claimed need for the supervision as exerted: Nudelman volunteered the fol- lowing statement in justification of the degree of supervision here shown. He stated: You give the cab drivers a free hand on the streets without any supervision, you have to tie your hands down your pockets. You have to have rules and regulations and you have to supervise them yourself or also you won't have any business left. An operational necessity for the supervision all the more confirms the crucial fact of its presence. And in thus protecting the drivers against themselves, as Nudelman suggests, Respondents have effectively continued the cabdrivers in their prior role, rather than vested them with the independence of entrepreneurs, as is here claimed. D. The activities of Kurtz and his termination in the System because of them 1. Background- the grievance over allocation of patronage as between cabs and limousines at the airport preceding Kurtz' activities As earlier stated, after the "owner-operator" arrangement took effect, numerous drivers felt they were not being given their "fair share of the business" at the airport by the starters. The place where the System's limousines and cabs operate, under the respective exclusive franchises for each, is the lower ramp. Lined up at the curb of the concourse are the limousines. The cabs are in a parking area or "storage lot" out of immediate sight of patrons. There they wait for a call or signal from the starters, and respond in order of their lineup. As many cabdrivers saw it, the starters no longer asked the patron what kind of transportation he wanted, but inquired only where he was going and sent him to a limousine; and they called for a cab only if the patron volunteered a preference "'They read: Robert J. Titelman, Date employed Feb 10, 1959, Remarks: "Owner-operator as of 6-1-59 J N [standing for Jerry Nudelman] N. G Troublemaker" Thomas R Soukup, Employed Sept 24, 1959, Remarks: "Independent owner 5/10/60, Sold cab 7/15/62 JNW Agitator" Levi Lloyd Weaver, Employed Feb. 10, 1960, Remarks: "Owner #17, OK. JG 7/21/61. Sold cab 5/62 no good-troublemaker-agitator." le They also retain the cab, except when the operator has paid for it in full, in which event he is entitled to have it along with the radio and meter. However, without the taxi permit, he is hardly in a position to ply his trade with it. RED TOP CAB & BAGGAGE CO., ETC. 1443 for one, or after all limousines had been loaded. An additional complaint was that the patron's access to a cab, even when one was called, was hampered by the fact that the cab was permitted to pull up only alongside the "bumper to bumper" lineup of limousines, instead of the curb. Dominic Bruno, one of the "owner-operators," testified, without contradiction, that the income situation for cabs got "tighter and tighter," while the limousines tripled in number. Numerous owners complained in vain first to Head Starter Catterlin, and then to the board of directors. As stated earlier, in June and in August 1961, some of the "owners" staged a work stoppage of a few hours each in protest against that situation-the one in August resulting in William Segal's earlier mentioned letter as president of Red Top Cab, notifying three of them that they were indefinitely barred from the airport.19 2. Preliminary resume of Kurtz' employment in the System Although Kurtz was then driving a cab within the System, he did not participate in the stoppages. His own activities began in 1962, when he was driving for John Shaw. Kurtz was admitted to work within the Respondent System in January 1961, when, on becoming a licensed chauffeur, he applied for a job at Respondent System's central radio and dispatch office. After passing the System's test for vision and alert- ness, he received from Safety Insurance Director Andrews the instruction concern- ing safe driving and the radio dispatch procedure, previously mentioned. He was then referred to Moishe Zilber, a "fleet" owner in Respondent System, for whom he drove 8 days, then hired out to a single "owner-operator," then to Robert Sweedler another "fleet" owner, from whom he "leased" a cab, and then in September 1961 to John Shaw on the 50 percent of the gross basis, previously mentioned (supra, footnote 11). 3. Kurtz' activities a. Before the petitions Aside from protesting individually to starters about the claimed unfairness in the steering of patrons, Kurtz did not act on the grievance until early 1962. In the early fall of 1961, he along with others signed up with a local of the Teamsters Union. So far as the record shows, its only activity was a request of Respondent System for recognition as bargaining agent for a unit of "drivers, lessees and owner drivers," and on being refused, it faded out of the picture. b. The court order preceding Kurtz' appeal to the authorities Kurtz, on March 4, 1962, sent the Governor of the State, the commissioners of Dade County, and the director of the port authority, a petition with some 240 signa- tures asking for redress of the grievance in respect to claimed favoritism by the starters at the airport. A copy of that petition is reproduced as Appendix A of this report. As there noted, it also complains of failure to enforce an order of the Florida Supreme Court directing "Red Top Limousine to go terminal to terminal " The order, as Kurtz saw it, was calculated to prevent the limousines from duplicating one of the major inducements of taxi service-that of delivery and pickup to and from any point, instead of specified terminals, to which limousines are normally limited. That subject, so far as appears, was not the underlying grievance of Kurtz and his fellows, the order of the court being in fact the culmination of litigation brought by taxi corporations outside Respondent System 20 But the court order (which was issued on November 1, 1961) apparently furnished the occasion for Kurtz taking to the public authorities his and his fellow drivers' grievance, and since this ruling too tended to mitigate the inroads of limousines on the income of cab- 19 This penalty was mitigated pursuant to settlement of a State court suit brought separately by each owner. In evidence here as typical of the rest are the complaint and settlement decree in Eisenberg v. Checker Cab Co., et al (the other defendants being the Segals individually and Red Top Cab). The decree enjoined further debarment of the "owners" from the airport, on condition that they not "interfere" with the exclusive con- cession of the defendants or violate the latter's "uniform rules and regulations," they being specifically enjoined from so doing. (Respondent's Exhibit No. 6.) 20 Their interest in the subject would be in respect to transportation of patrons to the airport. Those with Miami permits would be interested also in transportation of patrons from the airport to the extent that there are any at the upper ramp (the area that is not covered by exclusive franchise). 1444 DECISIONS OF NATIONAL LABOR RELATIONS BOARD drivers, he was interested in its enforcement as well. At the hearing before us, Respondents debated with Kurtz the validity of his interpretation of the court de- cision. My suggestion that perhaps there would be more point in producing a copy of it never bore fruit. However, thanks to the facilities of the National Report- ing Service we can take notice of it, and shall briefly describe its nature. As appears from the reported decision,21 the court had under challenge a certificate of the Florida Railroad & Public Utilities Commission authorizing Red Top Sedan to furnish limousine transportation between the Miami International Airport and "all points" in Dade County. The State commission had granted the certificate "as a matter of right and without a hearing," under a provision of the State statute man- dating it to do so when the commissioners of a county owning a given airport have themselves already granted the carrier the requested authorization. Article I of the subsisting franchise to Red Top Sedan from the port authority (an arm of the Dade County Commission, infra, footnote 23), authorizes it to furnish limousine service between the airport and "all points in Dade County." But the court thought this to be contrary to the applicable provision of the statute, which empowers the county to authorize limousine transportation only to "designated points," instead of "all points" (emphasis the court's), and ordered the State commission's certificate quashed. c. Activities after the court order Kurtz wrote asking about the status of the matter, and on January 30, 1962, the State commission answered that it had quashed the certificate and that "Red Top Sedan Service, Inc., now holds no authority from this Commission to operate [there- under] and they have been so notified." Kurtz then attended a hearing, held before the State commission on February 7, 1962, where the subject was the application of Miami Beach Air Transport Service (Red Top Sedan's affiliate, supra, footnote 5) for renewal of a temporary carrier's certificate on the disputed "all points" basis. Kurtz played no role in it, except "to observe"-the "protestants" of record being the Miami transit supervisor, two Miami transit lines, and certain taxi companies out- side Respondent System.22 The activities of Kurtz in concert with his fellow drivers were directed not to the State commission but to the county authorities, i.e., the metro commissioners (the popular term for the commissioners of Metropolitan Dade County, which embraces Miami and other municipalities), and the port authority, in the person of its di- rector, Allen Stewart.23 As appears from his March 4 petition (Appendix A here- of), Kurtz sent it after he wrote Port Director Stewart and got no reply. Also as there appears, the basic grievance was the action of the starters at the airport, his statement being that "we know that the limousines are necessary and we want them to continue to do business, but in a leagel [sic] way. All we want is our full share of the work." On March 6, Alex S. Gordon, chairman of the metro, sent Kurtz a "cordially yours" acknowledgment, with a copy to Port Director Stewart, stating: I am concerned about the situation as outlined in your letter, and I am asking the Port Director to submit a report to the Commission with respect to the com- plaint concerning the starters and working conditions at the airport involving taxicabs generally. On April 1, Kurtz prepared and distributed among cabdrivers throughout Dade County, both in and outside Respondent System, a letter for mailing to the metro commissioners.24 It states that despite the letter of Chairman Gordon (whose courtesy in answering Kurtz compares invidiously with Stewart's silence), "as of this date [there is] no report." It claims further that Port Director Stewart had sent 2i Phil's Yellow Taxi Co, Inc., of Miami Springs, et at. v. Carter, et al., as members of Florida Railroad & Public Utilities Commission, 134 So. 2d 230 (Fla.). 22 In July 1962, the State commission granted the renewal on the "all points" basis, as requested (Respondent's Exhibit No. 12). We are informed that this too is now in court litigation. 2s The metro is comprised of 13 commissioners, chosen by popular election Under a "home rule" amendment , it has been ceded certain powers over Dade County by the State legislature, including that over transportation at the airport. In connection with this last, it "puts on its other hat" as the port authority, but the actual administration of that function is in the port director, an appointee of the metro (We are indebted for this in- formation, including the "other hat" metaphor, to counsel for Respondents, whose learned' exposition on the subject was accepted without challenge ) 24 He also posted it in the "storage lot" at the airport for cabs. RED TOP CAB & BAGGAGE CO., ETC. 1445 a copy of his March petition to "Mr. Segal, President of Red l op Limousines," and from then on the signers of the petition "have been subject to abuse, humiliation and loss of business," being ticketed by "the Metro Police at the airport" for such items as "sweeping sand out of cab," "cleaning cab on airport property," "putting water in radiator," and "grease leaking out of transmission ." It concludes , "We pray that someone on the Metro Commission will have the respect to listen to us," and that "if the men who run Metro cannot help us, then we will be forced to ask the Hornorable [ sic] Governor Farris Bryant , to help us." Port Director Stewart then arranged with Kurtz for a meeting at his quarters to air the cabdrivers ' grievances concerning the limousine service. The meeting, held about April 17, was attended by 25 to 30 people. Present apart from the port director and certain port officials , were Personnel Manager Nudelman, and "fleet" cabowners , Moishe Zilber and Robert Sweedler. There Kurtz presented a petition with several hundred signatures reading: We, the signers of this petition request that the Metro Commission enforce the Florida Supreme Court Order, that Red Top Limousine , operating in Dade County, will go terminal to terminal as ordered. Kurtz, in addition , voiced the complaint of favoritism on the part of the starters substantially along the lines of his petitions of March 4 and April 1 , and the port director promised to investigate the matter. Kurtz, as he testified , never heard again from the port authority , and a written inquiry from him to Port Director Stewart went unanswered . However, he did not abate his activities . At the April 17 meeting , Nudelman , as the latter testified, chal- lenged Kurtz ' standing to speak for "owner-operators ," since he received no author- ization from "fleet" taxi owners, such as Big Ten Corporation , Moishe Zilber, and Robert Sweedler.25 So Kurtz, on April 24, 1962, procured 217 signatures to the following authorization: We, the signers agree to have John A. Kurtz represent us as workers and owners of the Yellow Cab System. Early in May he got up a petition looking toward the removal of one particular starter, as follows: We, the signers of this petition request that Mr. Bram be removed for the following reasons , will not call cabs till the limousines are loaded . Wants pay for good jobs. He garnered 98 signatures to the above , but before its intended transmittal to William Segal , the starter under attack quit for reasons of health, which mooted that venture 26 The authorizations he procured on April 24 were the nucleus for the formation of the Association , for which he filed the articles of incorporation on June 5, and its purpose is stated in part II, above. Kurtz' termination was effectuated before the incorporation papers of the Association were filed, and in the later -described conversations of Respondents' officials with the owner-drivers concerning Kurtz' activities , the Association was not mentioned . Hence, the specific question of whether it is a labor organization is not here reached. We merely recite Kurtz' activities on behalf of the Association to complete the narrative of events. Beginning the end of May, Kurtz, on the letterhead of the Association , wrote tour- ist agencies and organizations planning conventions in Dade County , wherein he espoused certain desirable features of cab transportation , such as a cheaper rate than limousines on a group basis. One letter states, "We have the concession at the Airport (Yellow Cab ), clean cabs and courtious [ sic] drivers ." Another states that for transportation to the airport from Miami Beach (to which Respondents ' permits do not extend , they being limited to Miami ) there is available an organization called 25 Indeed , Nudelman testified that he attended the meeting solely on behalf of Big Ten and not Red Top Sedan, and that he had only heard of the meeting through a "rumor" Nudelman would normally have been informed of the meeting in his capacity as manager of the airport for Sedan, a function of necessity bringing him in close association with the port director, who arranged the meeting. Since no one else attended on behalf of Sedan on a matter which would naturally call for its having someone there in its own interest , and since Nudelman had direct responsibility over the starters, whose conduct was the matter under inquiry, his denial that he was there at all on behalf of Red Top Sedan defies comprehension. 20 Kurtz' signature-gathering activities were all at the airport and were known to both Nudelman and Catterlin, as they admitted. 1446 DECISIONS OF NATIONAL LABOR RELATIONS BOARD Central Taxi Cab System. (The latter is composed of owners that had bought from the Segals certain corporations, previously referred to, operating in Miami Beach, but which are not part of Respondent System. They do not operate under Miami permits, and are not in competition with the operation conducted by the corporate Respondents herein.) 4. The termination The steps taken by Respondents to eliminate Kurtz from the System have been previously sketched. For their relevance on the issue of motivation, we here recount the statements made to the persons who were successively told to get rid of Kurtz. The testimony they gave was not denied, and it is found that the various officials named in these recitals made the statements thus attributed to them. In late March or early April, Sam Ruban, the lessor of John Shaw for whom Kurtz was then driving, was summoned on the radio to the main office of the System to "see Jerry Nudelman immediately." Nudelman told him "Kurtz has been causing a lot of trouble out here and we don't want him around." Ruban explained that the cab was now Shaw's under the lease and purchase option previously stated. Shaw was then called in, and he saw Norton Segal and Nudelman. Shaw testified: They said that they had had complaints from passengers in the cab, in my cab, that John Kurtz was talking about the situation between the limousines and the Yellow Cabs at the Airport and that they did not want the passengers being bothered by this and therefore he was considered as undesirable and they wanted to let him go and I told them that John and I were very good friends and he was one of the best drivers in the Yellow fleet, and that he was honest and that the man, when I had trouble, helped me and I couldn't see how I could possibly let him go, and they went on to tell me that I was purchasing the cab from Sam Ruban and I said, "Yes, I was," and then they said that I would have to be accepted by the Yellow Cab company and that if I didn't go along with them that they wouldn't go along with me when it became time for them to have the contract put in my name, so I had no further alternative than to let him go. Shaw related this to Kurtz, who stated he would not want to jeopardize Shaw's equity of $1,700 or $1,800. Within 10 minutes, he went to work for Dominic Bruno. It was while he was driving for Bruno, that Kurtz, after a meeting of the board of di- rectors on May 29, was cut off from radio dispatch with the entry on his card in the central dispatch office, "Discharged by Board. No Rehire. Agitator." Before this, Stanley Segal twice told Bruno to get rid of Kurtz. In the first conversation, Segal told Bruno "he should get rid of John Kurtz" because "he was causing a lot of trouble to Yellow Cab with the petitions." Bruno said he could not do so because he was disabled by a back injury and "needed Mr. Kurtz to help crack the nut" (pay his weekly installments and the operational assessment). Two or three weeks later, Stanley Segal approached Bruno at the main office when he was making his pay- ments. Segal again told Bruno to get rid of Kurtz because "with these petitions, he was hurting the Company," and again Bruno protested that he needed Kurtz because of his back injury. Two or three days later, Bruno was summoned over the radio to the "Board of Directors" at the central dispatch office. There he was confronted by Henry Storck, performing as chairman, and Robert Staton, Jr., the radio and dispatch officer, who also maintains the drivers' personnel records. Storck said Bruno had to get rid of Kurtz. Bruno protested. Storck then told him if he did not do so in 48 hours he would have to sell his cab. It was at this point that radio dispatch was cut off for Kurtz with the "discharge" entry previously quoted. Dante Vergilli, another "owner-operator," nevertheless hired Kurtz immediately after Bruno let him go. He was called to the dispatch office. There Director Storck told Vergilli he was to get rid of Kurtz because he "was a troublemaker and he was sending petitions, trying to organize the men," and threatened Vergilli with "severe action" if he did not comply. Vergilli complied, and then Kurtz went to work for Earl Shifflet. Shifiiet too was called in to the board of directors and told he had to get rid of Kurtz, for the same reasons given the others.27 In implementation of this, Nudelman directed Head Starter Catterlin to bar the loading of any cab driven by Kurtz. In execution of this command, a starter, on June 14, refused to load Kurtz, and at Kurtz' request, gave him a card on which he wrote, "Office said not to load John Kurtz." n In lieu of Shifflet's actually so testifying, it was stipulated he would testify to the same effect as the other "owner-operators." RED TOP CAB & BAGGAGE CO ., ETC. 1447 Louis J. Wine, still believing he could do his own hiring , took Kurtz on on June 17. On June 19 , he called Nudelman at his home, and asked the reason for the non- loading order in respect to Kurtz. Nudelman said "it was the decision of the Board of Directors not to let him work . . . for the Yellow Cab System any more," but gave him no reason. Wine nevertheless retained Kurtz. On June 21, he was sent a letter in the name of Yellow Cab Co ., of Miami ( presumably "the Corporation" designated in his particular contract ) that he was "in default" for having "failed to abide by Paragraph 13 of your contract" (the one binding him to the "uni- form rules and regulations ") and giving him 7 days "to correct said default ." At the same time he received the mimeographed notice sent in the names of the three corporations to all persons covered in the "owner -operator" contracts that hereafter "owners will be required to clear prospective drivers of their taxicabs with the radio room" under pain of "severe disciplinary action" for "direct violation of the contract existing between the owner and the corporation." This ended Kurtz' driving of a cab within Respondent Yellow Cab System. Respondents at the hearing claimed that Kurtz' termination was not motivated by his petitioning activities but was the result of misconduct . The testimony on that score was given by Nudelman, Storck , Ted Ungerman , a member of the board of directors (supra, footnote 13), Staton , the central dispatch officer, who made the "discharge" entry, previously quoted, and Head Starter Catterlin . Their testimony was mutually contradictory to the point where they rather canceled each other: 28 crucial here is that the only writing that purports to state the reason for the discharge is the "agitator" entry on his personnel card, and , as previously stated, none of the officials implicated denied the testimony that they specifically based their demands for Kurtz ' dismissal on his activities in filing petitions-Stanley Segal doing so the two times he spoke to Bruno and Director Storck when he spoke to Vergilli. It is found and concluded that it was because of these activities that Respondents eliminated Kurtz from Respondent System and compelled the various owners- operators to dispense with him. E. Conclusion: the liability 1. Introduction As stated, the record establishes and I have found that Kurtz was terminated by Respondents because of his concerted activities in seeking to redress the grievances of himself and fellow cabdrivers in respect to the claimed unfairness of the alloca- 28 Ungerman testified that Kurtz was terminated on May 29 because at a meeting early that month, he complained that some time in March, Kurtz had used vulgar language toward him in the lower ramp for refusing to sign one of his petitions. Ungerman testified that he indeed ran for a place on the board of directors for the specific purpose of squaring accounts with Kurtz because of this incident. Nudelman testified to other delinquencies: that during a county election early on the spring, there was a "political" sticker on the bumper of a cab driven by Kurtz 3 inches by 8 inches in dimension, and that Head Starter Catterlin complained that sometimes while Kurtz was in a lane in the lower ramp, he left it to talk to people, and that this would hold up traffic. Storck, on the other hand, testified that the reports concerning Kurtz' actions were "conflicting," that the Ungerman complaint was but "hearsay" and a "rumor," in which he took no "stock," because "each man should take care of himself," and that the only reason Kurtz was discharged was that he failed three times to appear before the "trial committee" or "court" to answer charges, the nature of which he did not remember. Nudelman and Staten also testified that his nonappearance before the trial committee was a cause of his discharge. Kurtz, both during the General Counsel's case-in-chief and on rebuttal, testified he had been called to the "trial board" only once, and that he attended along with 30 other drivers brought up on charges, and that the charges against all, in- cluding him, were dismissed. As to this Kurtz was corroborated by Ungerman. He testi- fied that in none of the board meetings attended by him-and he attended all since his election in April-was anything said about Kurtz' refusal to answer summonses before the "trial board." Ungerman also testified to a conversation with Kurtz during the time Kurtz' name was being mentioned in board meetings, giving rather telling indication of the mutual understanding of their nature and propose insofar as they concerned Kurtz. He quoted Kurtz as saying that "even if the board fires me from driving a cab I have a source of income from something else that I will still stay and help the men" or "I will fight Segal or the limousines " (Kurtz denied saying he had another source of income or that he in fact had one-unless the reference was to his having then begun to collect dues from drivers who had joined in his petitions ) 1448 DECISIONS OF NATIONAL LABOR RELATIONS BOARD tion of patronage as between cabs and limousines. This takes us to the issue of liability. Respondents claim immunity for their conduct in respect to Kurtz, on two grounds: (a) he was not their employee, and (b) his activity was not protected by Section 7. I conclude that they err on both counts. 2. The employment relation of Kurtz to Respondents On the question of whether Kurtz is an employee of Respondents, there was con- siderable discussion as to whether the driver-owners too are such. This was on the assumption that if they are not neither was Kurtz. For the reasons stated in "4" of this discussion, I conclude that all Respondents' drivers are their employees, whether owners or nonowners. But Kurtz' status as an employee of Respondents does not hinge on whether the persons for whom he drove too are employees. It the owners are not Respondents' employees, then they are a part of or members of that unified operation, termed the "Yellow Cab System," which is the employer. Respondents have in fact laid great stress, as previously described, on the governing powers of the group, called the policy board, which consists of the directors of all the corporate Respondents herein in combination. As I later indicate, since the majority directorship of the three lesser corporate Respondents is in the four sole directors of Red Top Cab, the latter is the true employer in every meaningful sense and the other three its agents. This last, however, concerns only the relationship of the owner-operators to Re- spondent System, but not of Kurtz. Whether the policy board is controlled by the directors of Red Top Cab or its power is diffused among its members on the in- dividual basis Respondent sought to persuade us they are, that body is the mecha- nism for operating the cab service on the centralized and integrated basis: it controls the hire, tenure, and working conditions of all drivers, including the nonowners. If, as Respondents' contend, the fact that the owner-operators have a hand in electing nine of the members of that body renders them partners in that managerial func- tion, that still leaves the nonowners as the employees of the group of employers composed jointly of Respondents and the owner-drivers Every significant aspect of the employing function is in that unified managerial group, whether the owner- drivers can be said to be a part of it or not. The owner-operator arranges with the nonowner the basis for his compensation (supra, footnote 11). All else is in the centralized cab operation in the manner previously described: a driver for an owner, whether of a single cab or a fleet, even if he is already a licensed chauffeur, must pass the examination at the central dispatch office for "eligibility"; if he passes the test, he receives his safe driving and radio dispatch instructions from that office, and a card is entered for him in the centralized personnel file in the dispatch office; he is subject to all the rules and regulations laid down by the policy board in re- spect to geographic areas and the manner of his operation; he is subject to trial by a `court" or committee from the policy board and to such discipline as that body may impose; if the policy board declares him "undesirable," an entry to that effect is made on his personnel card, and he is then placed upon a list of drivers "ineligible" for radio dispatch, with an attendant prohibition on any owner to hire or retain him under pain of being declared in "default" and himself expelled from the System. The elements comprising the employer relationship here far exceed those that the Board found sufficient in Checker Cab Company and its Members, 141 NLRB 583. There the centralized authority was a nonprofit membership corporation (called Checker) composed of members who had considerably more authority over the persons driving for them than the owners here-such as the right to hire and dis- charge and the "exclusive right to direct [their] drivers where to operate " In Checker too, the owners performed additional employer functions unlike the owners here, except in the rather rare instance of fleet owners like Moishe Zilber.29 These included maintenance of "own payroll records"; withholding "social security and Federal tax payment"; purchasing own cabs and insurance thereon (something which •even the fleet owners here do not do); paying unemployment compensation insur- ance; and carrying workmen's compensation insurance. Nevertheless, on the strength of the respects in which the members "surrendered" to Checker "control over the employment conditions of the drivers," the Board held Checker and each of its members "to be joint employers in a common enterprise," and hence to be the joint employers of those who drove for members. The items mentioned are present here but in much stronger forms. They include: (a) central 29 Or Big Ten Taxi, if we are to accept Respondents' claim that it is to be equated with the three corporate Respondents composed of the owner-operators. RED TOP CAB & BAGGAGE CO., ETC. 1449 screening of each prospective driver ("undesirable" applicants being there merely "discourage[d]" instead of absolutely barred, as here; (b) a manual embodying the rules and regulations of the association; (c) a central review board and disciplinary body; (d) power of the association to expel "any member for cause" (it being as- sumed that members would abide by that body's rules and determinations, instead of being explicitly bound to do so, as are the owners here). The Board also pointed to the features which identified Checker as "a single integrated service," such as a central telephone number and radio dispatch service, call stations, and the distinctive color scheme and other identifying characteristics of the cabs. The Board gave due consideration to the fact that the members' purpose was "to assure the continuance of a common public image and an effective operation of an integrated enterprise," and that this stemmed from their "recogniz[ing] both the need for, and the benefit from uniformity of control which Checker alone can exer- cise over all the drivers." But however voluntary the act of the members in form- ing or joining Checker and whatever the benefits they envisioned therefrom, the fact remained that to obtain them they surrendered to it control over their employ- ing function to a degree which made that central body and all the members in it joint employers of all persons driving for them. Can less be said for a central body that controls virtually every aspect of the employing function under a set of restrictions, to which those here claimed to be the sole employers of the nonowners must submit under the heaviest forfeitures for themselves? The conclusion is that Kurtz, as a nonowner driver in Respondent System, was an employee of Respondents, and this is so regardless of whether the owner-operators too are employees of Respondents, or, as in Checker, joint em- ployers along with Respondents. 3. The protected character of Kurtz' activity There being an employment relationship between Respondents and Kurtz, as I have found, then if Kurtz' concerted activities are protected by Section 7, Respond- ents' conduct in terminating him because of them was a violation of the Act. The violation would indeed be complete even assuming Kurtz' employment to be only with the owner-drivers, for the Act "reaches discrimination as to employees of an- other employer" no less than one's own. See N.L.R.B. v. West Texas Utilities Company, 218 F. 2d 824 (C.A. 5), cert. denied 349 U S. 953, enfg. 108 NLRB 407, 412-413. N.L.R.B. v. Gluck Brewing Company and Bach Transfer and Storage Company, 144 F. 2d 847, 855 (C.A. 8); Hurd Corporation, 143 NLRB 306; The May Department Stores Company, et al, 59 NLRB 976, 986-987, enfd. as modified on other grounds 154 F. 2d 533, 538-539 (C.A. 8), cert. denied 329 U.S. 725. On any basis, whether Kurtz and the owner-drivers were coemployees of Respond- ents, or whether Kurtz was an employee of Respondents and the owner-drivers as joint employers, or whether Kurtz was an employee only of the respective owner- drivers, his concerted activities in protest over the situation at the airport were pro- tected by Section 7 of the Act. Insofar as the claimed favoritism in the allotment of the patronage at the airport directly affected the livelihood of himself and his fellow cabdrivers, his activities were for the "mutual aid or protection" of himself and fellow nonowner drivers as employees, even if the contemplated "mutual aid or protection" extended also to the nonowners, whatever the latter's status. Respondents advance a number of grounds in support of their contention that Kurtz' activities were not protected by Section 7. I am unable to find merit in them. (a) The presentation of the grievance to the governmental authorities instead of Respondents directly: It is well established that bringing a grievance to the attention of public authorities falls within the protections of the Act no less than the direct presentation of it to the employer.30 Giving particular pertinence to this principle here are elements in addition to those in the cited precedents. First, the complaint concerned the manner of the discharge of a function having aspects of a public trust; second, the appeal had a background of the demonstrated futility of trying to get Respondents to consider them; and third, the prospect of an objective response to the matter by Respondents were here beclouded by the inherent conflict of interest of the individuals controlling them. The employer here, if not Red Top Cab alone, is Red Top Cab in combination with the three lesser corporate respondents. Con- trolling them all are the persons who own and control the limousine operation, which is in competition with the cab operation at the airport. The grievance was that the 30 Walls Manufacturing Company, Inc, 137 NLRB 1317, enfd 321 F. 2d 753 (C.A D C) ; N.L R B v Moss Planing Mill Co, 206 F 2d 557, 559-561 (C A. 4) ; Salt River Valley Water User's d.ssocation v N L R B , 206 F 2d 325, 328-329 (C A 9). 1450 DECISIONS OF NATIONAL LABOR RELATIONS BOARD starters at the airport so conducted themselves as to enhance the income of the limousines to the detriment of the cabdrivers . The grievance by its very nature was one in which ( and we confine ourselves to the character of the interest , without regard to inwardly entertained motivation ) those who control the conduct com- plained of own and control the corporation that stood to profit by the continuation of the claimed abuse and to forgo that profit if discontinued . The claimed abuse was thus a natural subject for those who felt victimized by it to seek to have acted upon by the public authorities , either directly or through pressure upon the in- dividuals in control of the situation as a counterweight to their own conflict of interest in the matter. (b) Alleged disloyalty to the employer : The foregoing also serves to dispose of the claim (which Respondents advanced at the original hearing but apparently abandoned at the resumed one) that assuming an employment relation of Kurtz to Respondents , his complaint against the limousine operation was an act of "dis- loyalty" to his employer , and hence "indefensible conduct" falling outside the protection of Section 7, under the doctrine of N.L.R B. v. Local Union No. 1229, International Brotherhood of Electrical Workers, A.F.L., 346 U.S. 464 (affg. Jefferson Standard Broadcasting Company, 94 NLRB 1507). The fallacy (which Respondents apparently realized at the resumed hearing ) is that it identifies the interest of the Segals as individuals with that of Respondents as the cab operation. This was Stanley Segals' assumption when he stated to Owner-Driver Bruno that Kurtz' petitions were "hurting the Company ." The ones "hurt"-if that be the term for an effort to abate a claimed inequity-were he and his kin as the owners of the limousine corporation . Kurtz' actions were not "hurting" the taxicab opera- tion, but protecting it, and it is the corporations comprising it that were his employers. Further, even if the two competing operations were to be deemed to be what Respondents have themselves steadfastly insisted they are not, a single integrated enterprise , so as to make a single employer of these two combined operations, Kurtz' activities would still not be "disloyal " or "indefensible" in the sense connoted by the Local Union No. 1229 (Jefferson Broadcasting ) doctrine . The disloyalty there lay in the fact that the discharged employees promulgated leaflets disparaging the quality of their employer 's television entertainment . They did so as ostensible members of the viewing public, without disclosing their relation to the employer or their purpose ; their purpose was to exert economic pressure on the employer to force concessions in bargaining negotiations totally unrelated to the subject in the leaflets. Kurtz, in his petition , could hardly have been more explicit in describing, indeed proclaiming , the nature of his interest ("We the signers of this petition are either owners , leasers, or drivers of the Yellow Cab of Miami" ), or the purpose of the appeal ("We know that the limousines are necessary " but "all we want is our full share of work" ). Activity, otherwise protected , does not lose its protected character because it is embarrassing , financially or otherwise , to the employer. See N.L R.B. V. Washington Aluminum Company , Inc., 370 U.S. 9; N.L.R.B. v. Peter Cailler Kohler Swiss Chocolates Company, Inc., 130 F. 2d 503, 506 (C.A. 2); N.L.R.B . v. Illinois Tool Works, 153 F. 2d 811 , 815-816 (C A. 7). (c) That the activity was directed at "business conditions ," rather than at "work- ing conditions": Respondents contend that since the owner-operators were "inde- pendent businessmen ," the grievance concerning the conduct of the starters at the airport was a "business condition" instead of a "working condition," and hence, that Kurtz' activities were not for "mutual aid or protection," within the meaning of Section 7. There are two answers to the above: First, as indicated at the outset of this aspect of our discussion , since the grievance was over a matter within the control of Respondents and it affected the earning opportunities of Kurtz and the nonowner drivers as employees, the matter concerned their own working conditions , whatever its nomenclature for the owners ; second , concerted activities by employees in en- hancement of nonemployees ' business opportunities on which their own livelihood depends are for their "mutual aid or protection " as employees , even though the protection extends to the nonemployees as well. The argument in both its aspects overlooks the fact that the term "mutual aid or protection" as used in Section 7 has a broader meaning in any event than "work- ing conditions ." Section 7 guarantees "the right to self-organization [etc], to bargain collectively through [chosen ] representatives ; and to engage in other concerted activities for the purpose of collective bargaining or other mutual aid or protection." [Emphasis supplied.] Concerted activities in pursuit of a legitimate employee objective do not lose their protected character because engaged in concertedly with nonemployees who happen to have a legitimate concurrent interest with employees in that objective . This is implicit in the opinion of the Supreme Court in the RED TOP CAB & BAGGAGE CO., ETC. 1451 Los Angeles Meat Drivers case,31 wherein it stressed that valid employee objectives may properly be sought to be attained with independent businessmen if there is a legitimate connection between the interests of both. It did so in passing on the validity of a lower court's order, which, as a condition of a union's purging itself of contempt of an antitrust decree, prescribed that it expel from membership certain independent businessmen ("grease peddlers") who abetted it in the violation. The Court upheld this as a valid condition of purgation because "there was no showing of any actual or potential wage or job competition or of any other economic inter- relationship between the grease peddlers and other members of the Union"; but it explained that its decision: is not remotely to suggest that a labor organization might not often have a legitimate interest in soliciting self-employed entrepreneurs as members (citing Milk Wagon Drivers v. Lake Valley Farm, 311 U.S. 91; Bakery Drivers v. Wohl, 315 U.S. 769; Local 24 v. Oliver, 358 U.S. 283). In amplification, Mr. Justice Goldberg's concurring opinion specifically noted that "the Court is not here called to pass upon and does not pass upon ... whether as an original matter the grease peddlers might properly associate among themselves or affiliate with a sympathetic and genuinely interested union to improve their economic condition," but that "the import of the entire stipulated factual record is that the Union neither had nor pursued any legitimate present interest in organiz- ing the grease peddlers," so that "were it otherwise, that portion of the decree com- pelling expulsion of the peddlers from the Union in my view, could not stand." The fact that Kurtz included the owner-drivers along with the nonowners in his concerted activity thus neither illegitimatized its character nor removed the pro- tection of Section 7 from his activities, even assuming, as Respondents contend, that the "owner-driver," under the facts here presented, were "independent businessmen." Kurtz' activity would still be protected even if the "owner-drivers" were to be deemed the separate employers of the respective nonowners driving for them. In that respect, the activities of both classes of drivers in concert with each other would fall within the category of "labor-management cooperation" in respect to a matter of common interest to both. Insofar as employees engage in that cooperation in advancement of their own interest as employees, they are exercising a right protected under Section 7, as they are when engaging in concerted activities for outright im- provement of working conditions with their own employer. Where the "mutual aid or protection" concerns working conditions as between employees and the par- ticular employer, the right to engage in concerted activities for such a purpose in- cludes the additional right to have the employer bargain collectively in respect to them; that is to say, improvement of working conditions as between employees and the employer is a purpose in respect to which employees have both the right to engage in concerted activities and also the right (buttressed by a mandatory obliga- tion on the employer's part to do so) to bargain collectively with respect to them. On the other hand, where the "mutual aid or protection" sought is not in respect to working conditions with the given employer but with respect to a matter of com- mon concern to both, then insofar as that subject concerns the employees' liveli- hood, they have the protected right to pursue that common objective with the employer for the purpose of "other mutual aid or protection" for them, although not the additional right to demand that he do so, as they would have if the matter concerned a working condition. An illustrative example of the above is the subject of the "industry promotion fund," which has been treated by the Board in a number of cases over recent years. That type of fund represents a joint undertaking by employers and employees in a given industry to enhance the selling prospects of the industry's product for the common benefit of both. The Board has held that such a venture is not a "working condition" as between the employee and the immediate employer, and hence, that there is no right on the part of either side to insist that the other bargain for the purpose of participating in such a fund. Such is the doctrine of the Detroit Resilient case, recently approved by the Sixth Circuit.32 But the Board in that same case reaffirmed its earlier holding in the Detroit Window Cleaners Union, Local 139, Building Service Employees' International Union, AFL-CIO (Daelyte Service Com- pany) case (126 NLRB 63) that the subject is a permissive one concerning which the employer and the employees may bargain and legitimately provide for in their 3' Los Angeles Meat & Provision Drivers Union, et al v. U.S., 371 U.S. 94. 32 Detroit Resilient Floor Decorators Local Union No. 2265 of the United Brotherhood of Carpenters and Joiners of America, AFL-CIO (Mill Floor Covering, Inc ), 136 NLRB 769, enfd. 317 F 2d 269 (C.A. 6). 1452 DECISIONS OF NATIONAL LABOR RELATIONS BOARD contract . Indeed, its most recent holding on the subject is that if the parties, after bargaining , have agreed upon such a provision , then there is the corresponding right to have it included in the written contract.33 What this means, then , is that a cooperative venture for a legitimate object of benefit to employee and employer alike is one that the employees may concertedly propose to employers and in cooperating in it, they are engaging in "concerted activities for the purpose of . . other mutual aid or protection " in their own interest as employees , within the guarantees of Section 7, undiminished by the fact that the protection extends to the employer as well. So here, even if we were to assume that the owners were the employers of the nonowners , like Kurtz , he and his fellow nonowners had the protected right under Section 7 , to act in concert with the owners concerning a matter affecting their common economic interest , though the subject not be a "working condition" con- trolled by the owners. Kurtz ' concerted activities thus enjoyed the protection of Section 7 , and Respondents ' conduct in terminating his employment because of them, interfered with, restrained , and coerced him and the other nonowners in the exercise of their rights under Section 7 , thereby violating Section 8 ( a)(1) of the Act. 4. The employee relationship of the owner-operators to Respondents We have until now assumed , in accordance with Respondent 's contention, that the owner-operators are not employees of Respondents . As already appears, even with that assumption , Respondents are nevertheless liable for their conduct in respect to Kurtz.34 While Respondents ' liability in respect to Kurtz is thus complete without regard whether the owners too are employees of Respondents , the determi- nation of whether they are such is not altogether superfious here , because Respond- ents' liability is even clearer if the major prop of their claim of immunity , however fallaciously it was applied , is shown not to exist in the first place, and ( although this may be anticipating matters ) it is desirable also to know in advance whether a remedial order that Respondents not interfere with the rights of "employees" embraces all drivers alike or is limited to nonowners . For the reasons stated below, I believe it has the broader scope. It is true that with the change to the owner -operator arrangement , an important facet was removed from the former conceded employer-employee relationship. Previously , all the indicia of that relationship were present. Now it is less than all. But whether the relationship itself has vanished or is still there turns on how the scales tip after all the relevant elements are weighed. The applicable criterion was summed up in N.L.R.B. v. Lindsay Newspapers , Inc., 315 F. 2d 709, 713 (C.A. 5), as follows: Section 2 ( 3) of the Act provides that the term "employee" shall not include "any individual having the status of independent contract ." This status of independent contractor is not defined anywhere in the Act. It therefore be- comes necessary to look to common law concepts to determine the true status of persons who claim to be protected as employees . National Labor Relations Board v. Nu-car Carriers, Inc., C.A. 3, 189 F. 2d 756 , cert. denied 342 U.S. 919. This Court has stated in N L.R.B. v. Steinberg & Company 5th Cir. 182 F. 2d 850 at 855 that the distinction between the employee and an independent contractor under Section 2(3) ". . is found in the nature and the amount of control reserved by the person for whom the work is done." [Emphasis supplied.] As appears from the factual discussion , Respondents have reserved a control over all their drivers indistinguishable materially from what had prevailed during the undisputed employee relationship . Its rules and regulations as formulated and ap- plied are in reality working conditions entailing a pervasive supervision over them in respect to such crucial items as the area of operation (restriction of access to airport on alternate days ), manner of operation ( radio coverage , courtesy , advertis- ing, dealing of drivers with each other ), and even the determination of whether to abstain from driving ( if concertedly done so as to amount to what Respondents claim would violate the implied "no strike" obligation in the standard contract). 33 Brotherhood of Painters , Decorators and Paperhangers of America , Glaziers Local Union +,.k1385, AFL-CIO ( Associated Building Contractors of Evansville , Inc ), 143 NLRB 678. 34 The contention that in such case the successive owner - operators who employed Kurtz would be "indispensable parties" to this proceeding is invalid under the doctrine of The Radio Officers' Union of the Commercial Telegraphers Union, AFL (A. H. Bull Steamship Company ) v. N.L.R B., 347 U.S. 17, 53-54. RED TOP CAB & BAGGAGE CO., ETC. 1453 That degree of control, as previously indicated, renders the nonowner drivers em- ployees of Respondents. But on that score the owner-drivers have no more inde- pendent standing than the nonowner. The "uniform rules and regulations'- that they must obey under pain of being declared in "default" have been applied to deprive them of the right to hire any driver without prior clearance with Respondents for "eligibilty" or to retain one who, though originally approved by Respondents, has later been stamped as "undesirable." As earlier indicated, apart from setting with the nonowner the basis of the latter's compensation, the conditions under which the nonowner works are set not by the owner but by Respondents under "uniform rules and regulations" as laid down and applied by them. In his capacity as a driver, the owner is as subject to these restrictions as the nonowner and is equally subject to disciplinary procedures and to ouster from Respondent System-the nonowner summarily, the owner through the "default" provision of the contract. The per- sonnel cards for all drivers, owners and nonowners, are maintained in the central dispatch under the same filing system as before, and the entries deal with their desirability as a driver within the System in the same manner as before (supra footnote 17). During the hearing, various witnesses in Respondents' managerial hierarchy frequently referred to all drivers, owners and nonowners, as "employees of the Company." That may well be a carryover from prior habits of expression. But it would seem to be an apt, though spontaneous, appraisal of the true situation, and the same can be said for the entries of "discharged," "fired," and "do not rehire," which are still made on the personnel cards. In N.L.R.B. v. Morris Steinberg and Julian Leslie Steinberg, d/b/a Steinberg .and Company, 182 F. 2d 850, 855 (C.A. 5), Judge Borah stated that "Congress . intended the word `employee' to mean someone who works for another hire . Where he does so for an outright wage and is subject to the control and supervision of the hirer in respect to the manner and means of doing the job, he meets all the criteria of the employee relationship. Where he does so for a stipulated contract price on a given job, being responsible only for the result and not subject to any orders or instructions of the hirer in respect to the manner and means of doing it, he meets all the criteria of the independent contractor relation. Between these two extremes of black and white simplicity are the gray areas with features of each, that are the grist of controversy furnishing the subject matter of case lore. Where the hiree receives no wage from the hirer and provides and maintains his own tools, he has lost some important characteristics of the indisputable employee relationship. But where he remains responsible to the hirer not only for the result, but also for the manner, means, and occasion for achieving it, he has retained sufficient char- acteristics of that relation, so as, on balance, to be still in the class that works "for hire." The foregoing assumes that the owner's relation with Respondents is entirely free of a wage factor between them, and even on that assumption, the balance, in the light of the control exerted upon him, is such as to place him, under applicable precedent, in the employee category.35 But that assumption is not without qualifica- tion. We have noted the provision in the contract requiring the owner to pay an assessment to defray the expenses of the centralized operation, as fixed by the "majority of the stockholders of the corporation." The majority, in each instance, are the Segals (or Red Top Cab) as the class B stockholders. The present assess- ment of $35 a week, or $1,820 a year, is a rather substantial inroad in the owner- driver's gross annual average revenue of $7,500, and to the extent that he derives his income from his own labors, it determines the amount of what in every realistic sense is his "wage." Cf. Local 24 Teamsters v. Oliver, 358 U.S. 283. The elements that enter into "cost" are frequently subjects of varying interpretation depending on the nature of the interest from which they are viewed. Red Top Cab's power to fix that item in accordance with its own interpretation thus gives it a degree of control over what in essence is the owner-driver's wage, and, by that token, over a "working 35 N.L R B v. Lindsay Newspapers, Inc., 315 F 2d 709, 713-714 (-C A. 5) ; Mound City Yellow Cab Company, 132 NLRB 484; Checker Cab Company and its Members, 141 NLRB 583 (part 4: the lease drivers) ; A. S. Abell Company, 137 NLRB 238; N L R.B. v. Key- stone Floors, Inc., d/b/a Keystone Universal Carpet Co., 306 F 2d 560 (C A. 3) ; Coca- Cola Bottling Company of New York, Inc, 133 NLRB 762; Mohican Trucking Company, 131 NLRB 1174. The recent decision of the Eighth Circuit in Site Oil Company of Missouri, Site Oil Company of Michigan, Inc. v N.L R.B., 319 F. 2d 86, is distinguishable on its facts. It is to be compared with the court's prior holding (reaffirmed by it in Site) in Minnesota Milk Co. v. N L.R B., 314 F. 2d 761 (C A. 8). As the court said in its Site opinion, "the status of workers is much easier to state than to apply, and . . . each case must stand or fall on its own peculiar facts." 1454 DECISIONS OF NATIONAL LABOR RELATIONS BOARD condition" above and beyond those inhering in its power to lay down, interpret, and apply the "rules and regulations" to which all drivers, owners and nonowners alike, are subject. Respondents claim the owner-drivers have a hand in formulating the "rules and regulations" by which they are governed, through their right, as class A stock- holders, to elect three directors in the corporations named in their particular con- tract, who are a part of the composite policy board governing the taxicab operation. But, as appears from the factual recital, that prerogative is illusory, since the Segals or Red Top Cab, as the class B stockholders, elect the majority of the directors in each corporation, and that majority, in turn, comprises the directorship and ownership of Red Top Cab. Since under the contract, the owner is bound by the "uniform rules and regulations" adopted by the directors of the corporation named in his contract, it is the rules and regulations as adopted and interpreted by Red Top Cab that he has to obey. The adoption may be outright or through approval of the action of the group comprising the policy board, but it is the directors of Red Top Cab who control. In terms of where the power lies and is exerted, the true employer of the cab operation is thus Red Top Cab, and the other corporate respondents are its agents. Respondents have asserted that Red Top Cab is but an accommodation to the owner-operators in their gown interest in order to give them the benefit of the exclusive rights to the airport under the franchise and of a centralized operation. Even if that were so, Red Top Cab's control over the owner-drivers adds up to an employer-employee relationship, whatever the motivation, cf. Checker Cab Com- pany, 141 NLRB 583. But to characterize Red Top Cab and the centralized opera- tion controlled by it as a mere accommodation to the owner-drivers in their mutual interest, hardly squares with fact. Red Top Cab has an interest of its own in the con- trol it exerts, such as meeting its obligation under the franchise to provide taxi service at the airport and to prevent the kind of attrition that would destroy the value of the permits. To that extent it has an interest of its own though consistent with the promotion of the cab operation as such. But it also has an interest not consistent with the cab operation and in some respects antagonistic to it. It is owned and con- trolled by the same persons who own and control the limousine operation. Those persons have retained a direct interest in the passenger revenues of the limousine operation at the same time that they no longer retain it in the cab operation. In terms of the hard fact of the profit incentive, Red Top Cab, the corporation in control of the taxi operations, is thus the captive of the limousine interest. Red Top Cab's possession of the taxi franchise puts it in a position to administer the cab operation to the advantage of the limousine interest: one can hardly brush aside, as an incen- tive in advancement of that interest, the exertion of an employer type of control by Red Top Cab over ,the taxi drivers in Respondent System, such as limiting the days on which they may have access to the airport, placing the supervision over, both services at the airport in persons whose positions make them naturally responsive to the interests of the limousine as against the cab operation, and, indeed, determining the extent to which the limousine operation is to be reimbursed for the salaries of those persons as a service to the cab operation. (The testimony is that the larger part of their salaries is paid out of the weekly assessments collected from the owner- drivers-a fact mentioned in Kurtz' petition.) To avoid even remote possibility of misunderstanding, it is again here stressed that nothing in the preceding discussion is intended to impugn or to pass upon anyone's subjectively entertained intentions or to interject any notions on the part of the Trial Examiner regarding the proper conduct of a transportation service or the running of an airport. The relevancy of what has been said to the issue before us is that it serves to underscore the diversity of interest from which the same matters are viewed by those who control Respondent's operations and those who perform the work, and the consequent differences of opinion concerning the propriety or fairness of measures that affect what they derive from their labors. The act is premised upon a recognition of that kind of diversity of viewpoint on the part of those who work and those who manage. It recognizes also that a wholesome purpose is served in permitting the workers concertedly to bring their grievances forward to manage- ment for discussion, consideration, and decision. The process makes possible a reconciliation of opposing views, which, if left to seethe, tend to erupt into stoppages injurious to the Nation's commerce. Its utility as a safety valve was a vital factor in Congress guaranteeing to employees the right concertedly to present their grievances and protecting them from reprisal by employers for doing so. Yet the subject matter of the day-to-day dealings between Respondents and their drivers, whether owners or nonowners, is essentially of the same nature as those to be found in the conceded employer-employee relation. Differences of opinion regarding them too are the stuff out of which grievances arise. Respondents' posi- RED TOP CAB & BAGGAGE CO., ETC. 1455 tion, in effect, is that the Act leaves them free to deny these persons the right to present and demand consideration of their grievances, even though, as Respondents' own experience in 1961 demonstrates, such suppression leads to the kind of eruptions imperiling commerce, that Congress sought to avoid in enacting the protections of Section 7. Every pragmatic consideration, in terms of the underlying policy of the statute ,and the true nature of the relationship, shows the same bases for these per- sons having the protection of the Act as in the case of any conceded employee, and points persuasively to the conclusion that Congress intended that they do. Respond- ents, indeed, take a rather contradictory position in urging that their owner-drivers have contractually bound themselves to an implied no-strike obligation of the kind found in collective-bargaining agreements covering the ordinary employee, and yet are not employees for the purpose of the right to engage in the very concerted ac- tivities whose culmination in the stabilized relationship embodied in a no-strike clause is a prime object envisioned for the rights guaranteed by Section 7. Their pur- pose is to promote the process that furnishes the alternative to the strike weapon and, as importantly, the wholesome sublimation of the impulse to use it. For all of the above reasons, I find and conclude that all who actually drive cabs in Respondents' operation, whether owners or nonowners, are employees within the meaning of the Act. Hence, by discriminating against Kurtz in reprisal for exercising his rights under Section 7, Respondents in violation of Section 8(a)(1) interfered with, restrained, and coerced all such employees in the exercise of those rights.36 IV. THE REMEDY Respondents will be required to cease and desist from the unfair labor practice here found. This will be in the broad language of Section 7, since a discharge for engaging in protected activity goes to the heart of the Act 37 Additionally, Respond- ents will be specifically required to cease and desist from interfering through discriminatory action or otherwise with the peaceful presentation of grievances to them or the public authorities by Kurtz or any of their other drivers regarding working conditions at the airport or elsewhere. Secondly, to redress the injury done, Respondents will be required to restore Kurtz to eligibility as a driver within Respondent System for radio dispatch, for loading at the airport or working for any owner or lessee willing to hire him. Respondents will be required to notify the persons whom they forced to dispense with Kurtz-Shaw, Bruno, Vergilli, Shifflett, and Wine-by radio dispatch, and by letter, with a copy to Kurtz, that Kurtz has been restored to eligibility as driver of a cab within the System, that they withdraw their objection to their hiring or retaining Kurtz as a driver, and that such action will not be deemed in violation of the terms of the contract or, in Shaw's case, a reason for not approving an assignment of any contract to him. Respondents will also be required to reimburse Kurtz for earnings lost by reason of the discrimination against him from the time of his first termination (by John Shaw) to 5 days after they have completed the affirmative measures above 36 Since , as previously indicated, it does not appear that the Association was either in existence or mentioned at the time that Kurtz was terminated, Respondents' action, while discriminatory, cannot be said to have discouraged membership in the Association, within the meaning of Section 8(a)(3). We therefore do not reach the question of sshether the Association is a labor organization On the question of whether there is an alternative basis for finding that the discrimination violated Section 8(a) (3)--such as that the drivers who signed the various petitions with Kurtz thereby constituted themselves a "labor organization" (Factfinders Detective Buican, Inc., 133 NLRB 1332, 1343, and cases cited) or that Kurtz by virtue of the authorization obtained April 24 became a "labor organization" (Bonnaz, Hand Embroiderers, Tuckers, Stitchers, Pleaters Union, Local 66, International Ladies Garment Workers Union, AFL: etc (Gemsco, Inc.), 111 NLRB 82)- the answer would be that in this kind of case, a remedial order based on an 8(a) (1) vio- lation protects employees against an 8(a) (3) violation as well, and thus there is no need to labor over whether Respondents' conduct violated that specific subsection as well. Gullett Gin Company, Inc. v. N.L.R B., 179 F. 2d 499, 502 (C.A. 5) ; N.L P.B. v TVash- sngton Aluminum Company, Inc, 370 U.S. 2 37 The right to "form, loin, or assist labor organizations" will be stated in general terms without specific reference to the Association, since Kurtz' activity on its behalf as such has not been found to have contributed to his termination Whether it is encompassed within the scope of the order will hinge on the criteria applicable to any other organiza- tion not specifically named in it: it will depend on the facts appearing if and when such an issue should arise. 1456 DECISIONS OF NATIONAL LABOR RELATIONS BOARD prescribed , or to the day Kurtz is actually rehired, whichever occurs first.38 For this purpose, there shall be applied the make -whole formula of F. W. Woolworth Company, 90 NLRB 289, and to the sums computed as due, interest shall be added at 6 percent per annum in accordance with Isis Plumbing & Heating Co ., 138 NLRB 716. Notices shall be posted at the main headquarters of Respondents at 1000 Lejuene Road, Miami , the central dispatch office at 44 SW. Third Street , Miami, and at the storage area for taxicabs in the lower ramps of the airport.39 Upon the foregoing findings and the entire record , I hereby state the following: CONCLUSION OF LAW 1. Respondents are employers within the meaning of the Act. 2. John A. Kurtz is an employee of Respondents within the meaning of the Act. 3. By discriminating against John A. Kurtz for engaging in activities protected by the Act, Respondents interfered with, restrained , and coerced their employees in the exercise of their rights under Section 7 of the Act. Thereby Respondents have ,engaged in and are engaging in unfair labor practices within the meaning of Section 8(a)(1) of the Act. 4. Said unfair labor practices affect commerce within the meaning of the Act. 5. Kurtz' activities in forming and sponsoring the Association as such did not contribute to his termination . Accordingly, the matter of whether it is a labor organization has not been reached and has not been passed upon . The same applies to whether Respondents ' conduct also violated Section 8(a)(3) of the Act. RECOMMENDED ORDER Upon the foregoing findings and conclusions , and the entire record, and pursuant to Section 10(c) of the Act, I hereby recommend that the Respondents , Red Top -Cab & Baggage Co., Checker Cab Operators, Inc., Yellow Cab Company of Miami, B & S Taxi Corp ., separated and as Respondent Yellow Cab System, their officers, !agents, successors , and assigns , shall: 1. Cease and desist from : (a) Terminating or causing the termination or otherwise discriminating or caus- ing any discrimination against any employees , including all drivers of taxicabs, whether owners or nonowners , for presenting or voicing any grievance concerning working conditions or matters affecting the earning opportunities of persons driving cabs within Respondent Yellow Cab System, or threatening to do so. (b) In any other manner interfering with, restraining , or coercing said persons in the exercise of their right to self-organization , to form, join or assist labor organizations , to bargain collectively through representatives of their own choosing, and to engage in other concerted activities for the purpose of collective bargaining or other mutual aid or protection. 2. Take the following affirmative action which it is found will effectuate the policies of the Act: (a) Restore John A. Kurtz to eligibility for driving a cab within the Respondent Yellow Cab System, including eligibility for radio dispatch and loading cabs, and his hiring or retention by any owner or lessee who is willing to do so. (b) Notify John A. Shaw, Dominic A. Bruno, Dante Vergilli, Earl E. Shifflet, and Louis J. Wine by radio dispatch, and by letter with a copy to John A. Kurtz, that the above action has been taken and also that Respondents withdraw all objection to their hiring or retaining John A. Kurtz as a driver or operator for them and that their doing so will not be a basis for declaring them to be in default under their contract or a ground for withholding approval of assignment of any such contract to Shaw, or any other reprisal. (c) Make John A. Kurtz whole for any loss in earnings sustained by reason of the discrimination against him in the manner stated in the remedy portion of this report. (d) Post at their main headquarters at 1000 Lejuene Road , Miami , at their central dispatch office at 44 SW. Third Street, Miami, and at the storage area for "While it is rather implicit , It perhaps bears stating in express terms that to be effec- tive in terminating the running of the reimbursement period , the affirmative measures must be taken in good faith , without any overtures , direct or indirect , in opposition to the assurances to be given In the letters or the posted notice. ^ There need be no reference in the notice to the rights of persons in the Armed Forces. Kurtz' age would make that look silly. RED TOP CAB & BAGGAGE CO ., ETC. 1457 taxicabs at the Miami International Airport , copies of attached notice marked "Appendix B." 40 Copies of the said notice, to be furnished by the Regional Director for the Twelfth Region, shall , after being duly signed by Respondents ' representatives, 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 the Respondents to in- sure that such notices are not altered , defaced , or covered by any other material. (e) Notify the Regional Director for the Twelfth Region , in writing , within 20 days from the receipt of this Intermediate Report and Recommended Order, what steps the Respondents have taken to comply herewith 41 It is further recommended that the complaint be dismissed insofar as it alleges that Kurtz' activity on behalf of International Taxi Drivers and Owners Association as such contributed to his termination. 101n the event that this Recommended Order be adopted by the Board, the words "A Decision and Order " shall be substituted for the words " The Recommended Order of a Trial Examiner " in the notice In the further event that the Board ' s Order be enforced by a decree of a United States Circuit Court of Appeals, the words "A Decree of the United States Court of Appeals, Enforcing an Order" shall be substituted for the words "A Decision and Order" 411n the event that this Recommended Order be adopted by the Board , this provision shall be modified to read "Notify the said Regional Director , in writing . within 10 days from the date of this Oider, what steps the Respondents have taken to i,onipli herewith ' APPENDIX A JOHN A. KURTZ, 860 E. FIFTH ST., HIALEAH , FLORIDA, Maich, 4th. 1962. To: Honorable Farris Bryant: Governor , of the State of Florida Mr. McNayer : County Manager All Metro Commissioners Mr. Stewart : Port Authority DEAR SIRS : We the signers of this petition are either owners, leasers or drivers of the Yellow cab of Miami. We work at the airport . We feel that we are not getting our fair share of work, due to the action of the starters . We have complained to the Port Authority ( Mr. Stewart ) but to no availl . Last June 1961 , we had a work stoppage of about three hours. We were promised better conditiond , but we never received them. Last August, we h.id a work stoppage, and the results of this was, some of the owners were barred from the port These men were put back to work, ,only after a just decision of the courts of Dade County. We work twelve to thirteen hours a day , and cannot make a living to support our families and homes. This is due to the action of the starters , who do not ask the people what kind of transportation , they want . They are put into limousines. Many times the cabs are not called under the ramp, till the limousines are loaded . This is not fair, since the owners pay for the right to use the airport We have approximate two hundred and twenty five cabs that pay $11.50 a week to the holder of the port contract . This amounts to $2507.50 per week, or $134,550 per year. How much do the limousines pay? The Port Authority , receives $100,000 of the money the cabs pay . The limousines carry more people than the cabs. We feel since we are paying the starters that they should be hired by the Port Authority . This would eliminate favoritism to either one, cabs or limousines. The Supreme Court of Florida , ordered Red Top Limousine to go terminal to terminal . This order came out in November 1961, but has not been inforced ? ? 9 The States Attorneys Office refused to enforce it ? ? ? Do we not have to respect a order from the Supreme Court of Florida in Dade County 9 Why doss the Railroad & Public Utilities Commissions not enforce this court order ? We know that the limousines are necessary and we want them to continue to do business , but in a leagel way. All we want is our full share of work. We do not want to strike as this would cause a hardship to the public and to our visitors . We have no money to spend on lawyers or court cost . All we want is, our God, given right to make a living and to be able to support our homes and families. We will appoint a deligation of our own choosing three drivers and three •owners to meet with you and disgus this problem. Again we are asking your help. Yours Truly, (S) John A. Kurtz, JOHN A. KURTZ. .See petition attached. 734-0 7 0-64-vol . 14 5-9 3 1458 DECISIONS OF NATIONAL LABOR RELATIONS BOARD APPENDIX B NOTICE To ALL OUR EMPLOYEES Pursuant to the Recommended Order of a Trial Examiner of the National Labor Relations Board, and in order to effectuate the policies of the National Labor Rela- tions Act, we hereby notify you that: WE WILL NOT terminate or cause the termination or otherwise discriminate or cause any discrimination against any employee, including all drivers of taxi- cabs, whether owners or nonowners, for presenting or voicing any grievance concerning working conditions or matters affecting the earning opportunities of persons driving cabs within our System, or threaten to do so. WE WILL NOT in any other manner interfere with, restrain, or coerce any of you in the exercise of your right to self-organization, to form, join, or assist labor organizations, to bargain collectively through representatives of your own choosing, and to engage in other concerted activities for purposes of collective bargaining or other mutual aid or protection. WE WILL restore John A. Kurtz to eligibility as a driver within our System, including eligibility for radio dispatch and loading of cabs, and hiring or reten- tion by any owner or lessee who wants to do so. WE WILL notify John A. Shaw, Dominic A. Bruno, Dante Vergilli, Earl E. Shiffiet, and Louis J. Wine, by radio dispatch and also by letter with a copy to John A. Kurtz that we have taken the above action and also that we withdraw all objection to their hiring or retaining John A. Kurtz as a driver for them, and that their doing so will not be a basis for declaring them in default under their contract or withholding approval of assignment of any such contract to Shaw, or of any other reprisal. WE WILL make John A. Kurtz whole for any losses in earnings he sustained by reason of the discrimination against him, with interest at the rate of 6 percent per year. RED Top CAB AND BAGGAGE CO., CHECKER CAB OPERATORS, INC., YELLOW CAB COMPANY OF MIAMI, B & S TAXI CORP., SEPARATELY AND AS THE YELLOW CAB SYSTEM, Employer. Dated------------------- By------------------------------------------- (Representative) (Title) 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. If you have any question concerning this notice or compliance with its provisions, you may inquire by mail, telephone, or in person at the Board's Twelfth Regional Office at the Ross Building, 112 East Cass Street, Tampa 2, Florida, Telephone No. 223-4623; or its local suboffice at 1200 SW. First Street, Miami 35, Florida, Telephone No. Fr. 7-1114. Whiting Milk Company and District #38, Lodge #264, Inter- national Association of Machinists, AFL-CIO. Case No. 1-CA- 4044. February 3, 1964 DECISION AND ORDER On August 22, 1963, Trial Examiner Leo F. Lightner issued his Intermediate Report in the above-entitled proceeding, finding that the Respondent had not engaged in any unfair labor practices and recommending that the complaint be dismissed in its entirety, as set forth in the attached Intermediate Report. Thereafter, the Gen- eral Counsel filed exceptions to the Intermediate Report and a sup- porting brief. 145 NLRB No. 137. Copy with citationCopy as parenthetical citation