Retail Clerks Int'l Association, Local 57, AFL-CIODownload PDFNational Labor Relations Board - Board DecisionsSep 7, 1962138 N.L.R.B. 498 (N.L.R.B. 1962) Copy Citation 498 DECISIONS OF NATIONAL LABOR RELATIONS BOARD this kind of picketing still remained subject to possible defeasance, in the absence of a timely petition, because of the clear statutory lan- guage itself. But now, after this decision, it would appear that the latter possibility has been almost entirely eliminated, and the pro- viso's protection has been made practically absolute. In short, if we now add our colleagues' decision in this case to their previous decision in Crown, it would appear that to all intents and purposes Section 8(b) (7) (C) has been removed from the Act. For all of the foregoing reasons, and as Respondents concededly picketed for more than 30 days without a petition having been filed, we would find that Respondents violated Section 8(b) (7) (C), and would enter an appropriate Order. Retail Clerks International Association , Local 57, AFL-CIO and Rested Stores Company . Case No. 19-CP-11. September 7, 1962 DECISION AND ORDER On December 28, 1960, Trial Examiner Herman Marx issued his Intermediate Report herein, finding that the Respondent had engaged in and was engaging in certain unfair labor practices and recommend- ing that it cease and desist therefrom and take certain affirmative ac- ±ion as set forth in the attached Intermediate Report. Thereafter, Re- spondent filed exceptions to the Intermediate Report and General Counsel also filed exceptions with a supporting brief. The Board has reviewed the rulings of the Trial Examiner made at the hearing and finds that no prejudicial error was committed. The ~rulings are hereby affirmed. The Board has considered the Inter- mediate Report, the exceptions and brief, and the entire record in the .case, and finds merit in the exceptions of the Respondent. Accord- ingly, the Board adopts the findings of the Trial Examiner to the ex- tent they are consistent with this Decision and Order. The complaint alleges and the Trial Examiner found that the Re- spondent violated Section 8(b) (7) (B) of the Act by picketing the Great Falls, Montana, retail store of the Charging Party (hereinafter referred to as the Company) within a year of the valid election of March 18, 1960, with an object of forcing or requiring the Company to recognize and bargain with the Respondent as the representative .of the Company's employees or with an object of forcing or requiring the Company's employees to accept the Respondent as their collective- bargaining representative. Because of our disagreement with the Trial Examiner's reasoning and conclusions, we briefly summarize the facts. 138 NLRB No. 56. RETAIL CLERKS INT'L ASSOCIATION, LOCAL 57, AFL-CIO 499 The Company operates a chain of retail variety stores. The grand opening of the Great Falls store took place on January 20, 1960. Be- tween the early part of January 1960 and January 27, 1960, Respond- ent's business agent, Meyer, or its attorney, Graybill, contacted the Company's store manager, Pascoe, or its personnel manager, Milius, some eight times in an effort to obtain the Company's agreement to a collective-bargaining contract with the Respondent. On a number of these occasions, Meyer or Graybill directly or impliedly threatened to picket the Company if it did not enter into such a contract. At various times during these same contacts, Meyer or Graybill also requested that the Company circulate Respondent's membership cards among its em- ployees or that the Company furnish Respondent with a list of its employees. During the last of these contacts, in a telephone call from Graybill to Milius, Graybill asked which of several sample col- lective-bargaining agreements (previously left by Respondent with the Company) the Company proposed to execute. Milius declined to give Graybill any commitment, at which juncture Graybill stated, `'Well, we're not going to sit still," and thereupon announced that the Company would be picketed to advise the public that the Company did not have a union contract. On February 9 Respondent commenced picketing, utilizing a single picket carrying placards which read, "THIS HESTED STORE HAS NO CLERKS' UNION CONTRACT AND NON-UNION CLERKS. Patronize Union Clerks." That same day, an electrician declined to cross the picket line and service he was to perform was never performed by his company. On February 10 Graybill told Milius that the Respondent no longer desired a list of employees and that the picketing would continue. On February 20 a refrigerator repairman at first refused to cross the picket line but made the repair later that same day, after the picket left. On February 23 the Company filed a petition for a Board election and on March 1 it filed a charge alleging that the Respondent's picket- ing violated 8(b) (7) (C). On March 2 Graybill notified the Board's Regional Office that Respondent had never demanded recognition and that it intended to resist the Company's petition on these grounds. On March 10 the Regional Director notified both parties that the 8(b) (7) (C) charge had been investigated; that an expedited election would be conducted in accordance with 8(b) (7) (C) and 9(c) and that, accordingly, no 8(b) (7) (C) complaint would issue. Thereafter, Respondent made several attempts to obtain a hearing or delay the election. It also filed with the Board a request for leave to appeal from the direction of election, urging, among other claims, that the 8(b) (7) (C) charge upon which, along with the Company's petition, the expedited election was predicated, was without merit. 662353-63-vol . 138-33 500 DECISIONS OF NATIONAL LABOR RELATIONS BOARD The Board denied the request on March 18, 1960.1 Finally, Respondent filed a statement with the Regional Director that it was withdrawing from participation in the election, which was held as scheduled, on March 18. The Respondent lost the election and ceased this period of picketing that day. On May 3 Respondent resumed picketing, utilizing a single picket at Respondent's main or customer entrance carrying two signs, sand- wich style, with the caption, "HESTED IIAS NO CLERKS' UNION CONTRACT AND NON-UNION CLERKS." The picketing was continuing at the time of the hearing before the Trial Examiner on August 16,1960.1 There has been no contact (other than the picketing itself) be- tween Respondent and the Company or Respondent and the Com- pany's employees since March 18, when Respondent lost the election. At the hearing in the present case, Respondent's business agent, Meyer, admitted on cross-examination that Hested could obtain re- moval of the picket by recognizing Respondent and entering into a contract. Section 8(b) (7) (B) proscribes picketing which has an object of organization or recognition, within a year of a valid election. Hence, in addition to a proscribed object, an essential element of this viola- tion is the conduct of a valid election in the preceding year. Because the election was "expedited" pursuant to Section 8(b) (7) (C), the Respondent was not given a hearing on the petition prior to the election.3 It was, of course, given a hearing on the sufficiency of the petition in the present unfair labor practice proceeding as well as on all other issues pertaining to the alleged violation of Section 8(b) (7) (B). The Trial Examiner found that the election was valid and that the picketing on and after May 3 had an object of recog- nition.4 Accordingly, he concluded that picketing during this period violated Section 8(b) (7) (B). In its argument to the Trial Examiner at the close of the hearing and in its exceptions, the Respondent attacks the validity of the election. We find merit in its contentions. Section 9(c) of the Act requires that a hearing be held prior to any election pursuant to a petition filed thereunder. There are two 1 The dental by the Board of the request for leave to appeal was In the nature of a discretionary ruling which cannot be construed as a ruling on the merits. a On July 7, 1960, the General Counsel filed a petition for a 10 ( 1) Injunction in the U.S. District Court for the District of Montana . On October 25, 1960, the court handed down Its decision In which it concluded that the evidence was insufficient to justify the issuance of an injunction , because the postelection picketing, unlike the earlier picketing, had no object other than to advise the public that the Company had no union contract and employed nonunion clerks. Graham v . Retail Clerks Aeaociation , 188 F. Supp. 847 (D.C. Mont.). 8 See Sections 102 73 ct seq of the Board's Rules and Regulations, Series 8, as amended. The Trial Examiner distinguished the contrary holding by the U.S. district court on, the ground that the record before the court did not include the admission by the Respond- ent's business representative that the picketing had an object of recognition. RETAIL CLERKS INT'L ASSOCIATION, LOCAL 57, AFL-CIO 501 exceptions to this requirement: (1) consent elections under 9(c) (4) ; and (2) elections where the petition is filed in a context of picketing which would have violated 8(b) (7) (C) if the picketing continued beyond a reasonable period of time not to exceed 30 days, without a petition being filed. Hence, in the latter situation, if the picketing would not have violated 8(b) (7) (C), the holding of an "expedited" election would exceed the Board's authority, and such an election could not therefore be valid for purposes of 8(b) (7) (B). Thus, in order to determine the validity of the election herein, we are obliged to examine whether the initial picketing (i.e., from Febru- ary 9 to March 18, 1960), would have violated Section 8(b) (7) (C), had it continued for more than 30 days without the filing of a petition. The Trial Examiner found that the initial picketing had an ob- ject of organization or recognition. We agree with that finding. However, for reasons appearing hereinafter, we disagree with his further conclusion that the expedited election, predicated upon this picketing, was valid. In the recent decision on reconsideration in Crown Cafeteria,5 a majority of the Board concluded that where the purpose of the picketing,is to truthfully advise the public, including consumers , that an employer does not have union employees or a union contract, then even though such picketing is for an object of organization, recognition or bargaining within the meaning of Sec- tion 8(b) (7), it is protected by the express terms of the second pro- viso to Section 8(b) (7) (C). Such protection continues without the need for filing a petition as long as the picketing does not have a statutory "effect" within the meaning of the below-quoted proviso.6 The initial course of picketing, from February 9 to March 18 in the present case, seems to us to be of the type protected by the exemp- tion to 8(b) (7) (C), as was the picketing in Crown Cafeteria, supra. The picketing herein was conducted by a single individual pacing back and forth in front of the Company's customer entrance. The legend on the sign announced to the public, including consumers, using the main entrance, that "This Hested Store Has No Clerks Union Contract and Non-union Clerks. Patronize Union Clerks." The crucial question which remains is whether the initial picketing lost its protected status by having a proscribed effect. As indicated above, the picketing resulted in only one service stop- page on February 9 and a temporary service delay of a few hours on February 20. There is no evidence that these incidents in any way interfered" with, disrupted, or curtailed the Employer's business. 135 NLRB 1183. The last proviso to Section 8(b) (7) (C ) removes the privilege, created by the exemp- tion , where: . . . an effect of such picketing is to induce any individual employed by any other person in the course of his employment , not to pick up, deliver or transport any goods or not to perform any services. 502 DECISIONS OF NATIONAL LABOR RELATIONS BOARD Accordingly, and for the reasons explained more fully in Barker Bros. Corp.,' a companion case issued today, we find that the afore- mentioned incidents were not sufficient to constitute "an effect" within the meaning of the proviso to Section 8(b) (7) (C). Thus, in the absence of a proviso effect, we conclude that the initial phase of the picketing herein would not have violated Section 8(b) (7) (C) even if it had continued for more than 30 days without the filing of a petition and that therefore the expedited election in this case was improperly directed and held." In view of the foregoing, we find that, as an expedited election pursuant to Section 8(b) (7) (C) should not have been conducted, the March 18 election was not valid. Therefore, the picketing following that election was not prohibited by 8(b) (7) (B). Accordingly, we shall dismiss the complaint in its entirety and order that the expedited election in Case No. 19-RM-288 be set aside.' [The Board dismissed the complaint and set aside the election in Case No. 19-RM-288.] MEMBERS RODGERS and LEEDOM, dissenting : Unlike our colleagues, we agree with the Trial Examiner that the Respondent violated Section 8(b) (7) (B) of the Act as alleged in the complaint. That section proscribes picketing, which has an object of organization or recognition, within a year of a valid election. Our colleagues dismiss the complaint on the ground that the expedited election involved here, conducted pursuant to Section 8(b) (7) (C), was not a valid election. The election was properly conducted pursuant to Section 8 (b) (7) (C). That section empowers the Board, where a 9(c) petition is filed, to direct an election in a context of picketing which would have violated 8(b) (7) (C) if the picketing continued beyond a reasonable period of time, in any event not to exceed 30 days, without a petition having been filed. Our colleagues find that the election was not valid because the preelection picketing, although having an object of or- ganization or recognition otherwise proscribed by Section 8(b) (7) (C), was privileged in that it fell within the scope of the publicity proviso and did not have an appreciable effect of stopping deliveries or services to the employer being picketed. We do not agree that the preelection picketing fell within the scope of the publicity proviso. Although the picket sign stated: "THIS HESTED STORE HAS NO CLERKS' UNION CONTRACT and NON-UNION CLERKS. Patronize Union Clerks," during the pre- election period, the Respondent's representatives visited the Com- 7138 NLRB 478 8 Oakland G . R. Kinney Company, Inc., 136 NLRB 335. 8 Ibid. RETAIL CLERKS INT'L ASSOCIATION, LOCAL 57, AFL-CIO 503 pany's store manager or its personnel manager approximately eight times in an effort to obtain the Company's agreement to a collective- bargaining contract with the Respondent. On several of these occa- sions, the Respondent's representatives requested the Company to circulate the Respondent's membership cards among company em- ployees or that the Company furnish the Respondent with a list of company employees, and the Respondent's representatives expressly or irrrpliedly threatened to picket the Company if it did not enter into a collective-bargaining contract. Contrary to our colleagues, we believe this evidence is material and is in itself sufficient to remove the picketing front the protection of the publicity proviso as it shows that the picketing was not solely "for the purpose of truthfully advis- ing the public . . . that an employer does not employ members of, or have a contract with, a labor organization...." Absent such an exclusive purpose, in our view, the picketing did not fall within the scope of the publicity proviso. Moreover, even if the picketing could be viewed as otherwise en- titled to the protection of the publicity proviso, the picketing clearly lost such protection because an effect of the picketing was to induce individuals employed by persons other than the picketed employer not to perform services. Congress has plainly indicated that picket- ing, although falling within the scope of the publicity proviso, loses its immunity if "an effect" of such picketing is to induce any stoppage or delay of delivery or services. It is clear that in this case there is evidence of at least one work stoppage and a delay in performing a service. Thus an electrician employed by a firm that regularly serv- iced the Company declined to cross the picket line and the service he was to perform was not performed by his firm during the duration of the picketing. In addition, the record shows that a refrigerator repairman refused to cross the picket line and perform the work he. had been employed to do, although, at a later time the repairman did make the repairs. In our view, therefore, for the reasons set forth in our dissenting opinion in Barker Bros. Corp., et at., 138 NLRB 478, we would find that a clear "effect" of Respondent's picketing was to cause a stoppage and delay within the meaning of the statute. Furthermore, even applying the interpretation which, as we indi- cated in our dissenting opinion in Barker Bros., our colleagues have erroneously engrafted upon the statute, we would still find that the General Counsel has shown a "disruption" of the Company's business. Certainly, the real meaning of the failure of the electrician to perform the work he set out to do is to make it evident that,.for all intents and purposes, a firm that regularly serviced the Respondent could not do the work so long as the picketing lasted. As for the delay in the rendition of refrigeration services, it seems to us that the nature of 504 DECISIONS OF NATIONAL LABOR RELATIONS BOARD refrigeration being what it is, virtually any delay in effecting a re- frigeration repair would necessarily have a serious impact upon a business which is dependent upon it for its being. For the reasons indicated above, and because, as the Trial Examiner found, the Respondent picketed for recognition within a year of a valid election, we would sustain the complaint. INTERMEDIATE REPORT AND RECOMMENDED ORDER STATEMENT OF THE CASE The complaint in this proceeding, issued by the General Counsel of the National Labor Relations Board, alleges that a labor organization named Retail Clerks Inter- national Association, Local 57, AFL-CIO (referred to herein as the Union or Respondent) has violated Section 8(b)(7)(B) of the National Labor Relations Act, as amended (73 Stat. 519 et seq., 29 U.S.C. 151 et seq.; also called the Act herein), by picketing premises of an employer, Hested Stores Company (referred to herein as Hested) with the object of forcing or requiring Hested to recognize and bargain with the Union, or to force and require employees of Hested to accept and select the Union as their bargaining representative, notwithstanding the fact that within 12 months preceding such picketing a majority of such employees had voted against representation by the Union in "a valid election under Section 9(c)" of the Act., The Respondent has filed an answer which, in material substance, denies the com- mission of the unfair labor practices imputed to it in the complaint. Pursuant to notice duly served by the General Counsel upon the Respondent and Hested, a hearing upon the issues in this proceeding has been held before Trial Examiner Herman Marx, at Great Falls, Montana. The General Counsel and the Respondent appeared through, and were represented by, respective counsel, and participated in the hearing. All parties were afforded full opportunity to be heard, to examine and cross-examine witnesses, to adduce evidence, to file briefs, and to submit oral argument. Since the close of the hearing, upon motion and stipulation of the General Counsel and the Respondent, I have entered an order correcting the transcript of the hearing in various particulars. The transcript contains other errors, but as none of these materially affect the issues, and since the parties have not included them in the motion, I deem it unnecessary to correct such inaccuracies. Upon the entire record, and from my observation of the witnesses, I make the following: FINDINGS OF FACT 1. NATURE OF HESTED'S BUSINESS; JURISDICTION OF THE BOARD Hested is a Nebraska corporation; maintains offices in Omaha and Fairbury, Nebraska, and is engaged in the business of selling merchandise at retail in a chain of variety department stores. The stores include establishments in Nebraska, North Dakota, South Dakota, Minnesota, Wyoming, Colorado, and Montana. The issues in this proceeding center on only one of the stores (known as #98). It is located in Great Falls, Montana. During its "last fiscal year," Hested had a gross income in excess of $17,000,000; and in the course of that period, it has shipped goods valued in excess of $50,000 into the State of Montana from points outside thereof. Thus, as the complaint alleges and the answer admits, Hested is, and has been at all material times, engaged in interstate commerce within the meaning of the Act. Accordingly, the Board has jurisdiction of the subject matter of this proceeding. U. THE LABOR ORGANIZATION INVOLVED The Respondent, as the record establishes without dispute, is , and has been at all material times, a labor organization within the purview of Section 2(5) of the Act. 1 The complaint, which was issued on June 27, 1960, is based upon a charge filed with the Board by Hested on June 8, 1960 Copies of the complaint and charge have been duly served upon the Respondent. RETAIL CLERKS INT'L ASSOCIATION, LOCAL 57, AFL-CIO 505 III. THE ALLEGED UNFAIR LABOR PRACTICES A. Prefatory statement Hested opened its store in Great Falls, Montana, on January 20, 1960, hiring a complement of some 15 employees for the establishment. Most of these are sales personnel; a few appear to be employed at a fountain or luncheonette in the store. The Union does not, and has never, represented a majority of the store's employees in an appropriate bargaining unit, whether by certification of the Board or otherwise. During the early part of January 1960, while the Great Falls store was being prepared for its opening, the Union's business agent, Joe Meyer, called on the establishment's manager, Steward Pascoe, identified himself and his capacity, and asked Pascoe whether he "could sign a contract." Pascoe replied in the negative. The upshot of Meyer's visit was that he gave Pascoe three copies of a contractual form used by the Union, and the manager stated that he would send the copies to Daryl Milius, Hested's personnel manager (whose office is in Omaha), since labor relations were within Milius' jurisdiction. Meyer returned to the store on January 13, and asked Pascoe if he had heard from Milius, and, receiving a negative reply, said, "Well, we're going to have to get on the ball, as the union would like to get this taken care of right away." Pascoe reiterated that the matter was something for Milius to handle. Meyer came back 2 days later and again inquired if Pascoe had heard from Milius. Pascoe replied that he had not, and then Meyer brought up the subject of picketing, stating that the Union had picketed a Great Falls drugstore and had brought it "to its knees in half a day of picketing." Meyer called on Pascoe at the store for a fourth time on January 18; inquired again if the manager had heard from Milius; received a negative reply; and then asked for a list of the store's employees. Pascoe stated that "com- pany regulations" forbade him to supply such information, but that Hested's district manager had authority to do so. Thereupon, Meyer telephoned the district manager, and asked for, and was denied, the information.2 Milius came to Great Falls a day or so before the opening of the store, and, pursuant to arrangements made by Pascoe with Meyer, met with the Union's business agent on January 19. Meyer told Milius that the Union "had to have something in writing and some assurance of (Hested's) intentions," and Milius replied to the effect that he was unable to commit himself, stating either at that point or subse- quently that he could not do so without discussing the matter with Hested's "execu- tive committee." Meyer stated that Hested could either become a party to an agreement in effect in Great Falls between the Union and an association of employers or to a "separate contract." After some reiteration of positions previously taken in the conversation, Meyer requested a list of the store's employees, and Milius replied that it was contrary to "company policy" to supply such a list. Milius also rejected a request that Hested distribute to the employees applications for member- ship in the Union, and that was followed by a statement by Meyer to the effect that the Union was reluctant to picket a new enterprise in Great Falls but would picket the store unless Hested came to an "understanding" with the Union. At one point or another, Meyer produced a form of contract, and said that Hested could enter into such an agreement in lieu of "affiliating" with the employers' association. To this, also, Milius replied that he could make no commitment. The meeting ended with an arrangement to meet again later that day, Meyer stating that he would endeavor to secure the attendance of the Union's attorney, Leo J. Graybill, Jr. Milius and Meyer met at the appointed time, but without the attorney who was unavailable. In material respects, the discussion took much the same course as the conversation held earlier. Meyer reiterated his demand for "assurance of (Hested's) intentions," and his request for a list of the employees, stating, too, that the store would be picketed if the list were not furnished; and Milius repeated his 2 Findings as to the several conversations between Meyer and Pascoe are based on Pascoe's testimony. Meyer denied that he discussed with Pascoe "the possibility of sign- ing a contract" or "the Issue of labor relations " This strikes an implausible note in view of the fact, conceded by Meyer, that he gave Pascoe sample contract data. Moreover, as will appear, Meyer's testimony lacks candor In other particulars. Thus, in the light of the whole record , I am led to conclude that Pascoe's testimony is a better guide to findings than that of Meyer. 506 DECISIONS OF NATIONAL LABOR RELATIONS BOARD position that he was unable to make a commitment regarding Hested's "intentions," and that the company's policy forbade the production of the list.3 On January 27, Graybill telephoned Pascoe and asked the latter if Hested was going to give the Union "bargaining rights," to which Pascoe replied that he "couldn't answer that." Graybill followed this with a question whether Pascoe wanted "the union to take matters into their own hands." Pascoe asked Graybill what he meant by this, but, instead of explaining , Graybill went on to another subject, inquiring whether a list of employees would be furnished. Pascoe reiterated Hested's policy of nondisclosure, and after some colloquy on that subject, Graybill asked, in sub- stance, whether Hested would deal with the Union, and asserted that if the firm did not do so, the Union would "have to picket" the store. Pascoe protested that Hested was "just -a small firm" and had never been "involved in any union problems before," and Graybill replied, "Don't give me that small-firm stuff," and inquired whether "you want us to go ahead and picket you." Pascoe thereupon stated that Graybill knew his business and could do what he wished.4 Shortly thereafter that same day, Graybill telephoned Milius at the latter's office in Omaha, and, after some preliminaries dealing with Hested's failure to com- municate with the Union, asked the personnel manager whether Hested intended to become a party to the Union's agreement with the employers' association or to sign a separate contract. Milius replied that he could give Graybill no "informa- tion" at that point because he had none, and the attorney remarked that "we're not going to sit still." After some reiteration of the respective positions, Graybill stated that the Union was not interested in organizing the employees of the Great Falls store, but was "going to picket to inform the public that [Hested] didn't have a union contract." Following some additional colloquy that need not be detailed, Graybill asked for a list of the Great Falls employees. Reiterating the Company's policy on the subject, Milius asked why the list was desired, and Graybill remarked that Milius knew nothing about "union organization," and suggested that the per- sonnel manager seek advice of "a labor lawyer." (Milius' account of this conversa- tion is undisputed.) The Union began to picket the Great Falls store on February 9, using a single picket who patrolled in front of the premises, wearing two placards in "sandwich" fashion, each carrying the legend "This Hested Store Has No Clerks' Union Con- tract and Non-Union Clerks. Patronize Union Clerks." On February 10, the day after the picketing began, Milius called Graybill from Omaha. The record reflects some conflict regarding details of the conversation, but there is no material dispute that Milius stated that Hested could not understand why the Union wished a list of employees; that Graybill replied, in substance, that the store was being picketed, and that the Union no longer desired the list; and that 3 Findings as to both conversations between Milius and Meyer are based on Milius' testimony . Actually, there is no large difference between them in material respects, for it is evident from Meyer 's testimony that Meyer In effect sought contract negotiations with Milius , intimated that the Union would picket if Hested did not sign a contract, and asked for a list of employees However, in my judgment , Millus' version is a more reliable basis for findings because Meyer 's account appeared tome to lack candor, using indirection to dilute the impact of material facts . For example , It is clear that Meyer sought the list of employees as a predicate to efforts to organize them ; yet the reason he gave at one point was that disclosure of the identity of the employees would enable him to collect dues from any who were members of the Union so that "they could still keep up their death benefits" ; and this claim was followed by the question -begging assertion that he also desired the list because he "would have liked" to know who was employed at the store . It may also be noted , as regards Meyer 's credibility , that a blanket denial by him that he told Millus that Hested would be picketed if it did not sign a contract with the Union does not jibe with other testimony he gave to the effect that in reply to a question by Millus as to what would happen if a contract was not signed, he told Millus that the "only course the union has was [sic] to picket " [Emphasis supplied ] ' Findings as to Graybill 's discussion with Pascoe are based on the latter's testimony. Much of Pascoe's account is undisputed, Graybill giving no details of the discussion in his testimony beyond an observation that "I don't believe anything was said with reference to a direct statement made on picketing, whether picketing would occur or picketing will not occur" I think it likely that Graybill made the statements regarding picketing im- puted to him, but, in any case, it is undisputed that he asked Pascoe whether he wanted "the union to take matters into their own hands" ; and, clearly , that query , In the con- text of circumstances , was a threat , albeit veiled , that the Union would picket the Great Falls store unless Heated gave the organization "bargaining rights." Thus it actually matters not whether Graybill made "a direct statement on picketing." RETAIL CLERKS INT'L ASSOCIATION, LOCAL 57, AFL-CIO 507 during the course of the discussion, Graybill told Hested that the picketing would continue "till the cows come home." 5 On February 23, 1960, Hested filed a petition (Case No. 19-RM-288), under Section 9(c) of the Act, with the Seattle office of the Board's Nineteenth Region, alleging the picketing and the Union's claim for recognition, and, in effect, seeking a determination whether a question of representation existed and a resolution thereof. The petition was subsequently amended in particulars not material here. The Union was notified in due course of the filing of the petition and the amendment thereof. On March 1, 1960, Hested filed a charge (Case No. 19-CP-4-1) with the Seattle regional office, alleging picketing in violation of Section 8(b) (7) (C) of the Act (according to the sense of the allegations of the charge). Graybill wrote to the regional office, on behalf of the Union, on March 2, 1960, denying that the Union had "ever made a demand on the employers for representa- tion," and stating that the petition would be resisted "on this ground." Thereafter, by identical letters dated March 10, 1960, the Regional Director for the Board's Nineteenth Region informed Hested and the Union that it appeared "ap- propriate" to him, "on the basis of the investigation (of the petition) made to date," to hold an election to determine whether employees of Hested's Great Falls store desired to be represented by the Union; and that, "pursuant to Section 8(b)(7)(C) and 9(c) of (the) Act, and Section 102.77 of the (Board's) Rules and Regulations, an election will be conducted as provided in the enclosed Notice of Election among the employees . . . in a unit described as follows, which is hereby found to be appropriate: All employees of Hested Stores Company #98 excluding fountain and luncheonette employees, office clerical employees, guards, professional employees and supervisory employees as defined in the Act." The enclosed Notice of Election specified March 18, 1960 as the date of the election, and the time and place thereof. This direction of election was made without the "appropriate hearing upon due no- tice" specified in Section 9(c) (1) of the Act. In other words, what the Regional Director ordered, under the authority of Section 102.77 of the Board's Rules and Regulations, was, as the applicable regulation puts it, "an expedited election under section 8(b) (7) (C) " of the Act. The Regional Director also wrote to Hested on March 10, 1960, to the effect that he did not deem further proceedings on the charge warranted, and would not issue a complaint thereon, because "a timely valid representation petition" affecting the employees involved had been filed "within a reasonable time from the commence- ment of the picketing," and a determination had been made that "an expedited election should be conducted upon such petition." The Union was notified of the decision not to proceed on the charge. On March 17, 1960, the Union, through counsel, filed with the Regional Director a document entitled "Objections To The Election," which contains , among other things, a denial that the Union has sought recognition by Hested or organization of the employees; and registers "objection to the election." At the same time, the Union also filed with the Regional Director a document requesting a deferral of the election for a period of 5 days "from the mailing of the request" in order to give the Union time "to ascertain the names and addresses of the employees" involved in the election; and a direction to Hested that it make a list of such employees available to the Union. By telegram dated March 17, 1960, addressed to the Union's counsel, the Regional Director denied the requests contained in both documents. 5 The conflict in the evidence regarding the February 10 conversation centers primarily on whether Graybill, as Milius testified (supported by Leonard Gano, a Hosted super- visor, who listened to the conversation, at Milius' request, on an extension in the Omaha office), asked what Rested proposed to do about unionization, and said that the picketing would continue "till the cows come home" if the store were not unionized. According to Milius and Gano, these remarks were made at some point after Millus told Graybill that Gano was listening to the conversation. Conceding that he might have said that the store would be picketed "till the cows come home," Graybill denied that the remark was tied to any comment about unionization, and stated that he told Milius that there was "noth- ing to talk about" ; that the Union was not interested in recognition by Rested or in organization of the employees ; and that "the picket was on and would stay on " I have some doubt that after the discolsure that Gano had been eavesdropping, Graybill who has special knowledge of provisions of the Act, would, within the hearing of two witnesses, make so bald and revealing a statement as one to the effect that picketing would con- tinue until Rested recognized and dealt with the Union . However, the conflict need not be resolved , for even if one assumes that the conversation took the course Graybill de- scribes , I am persuaded , for reasons that will appear , that an object of the picketing was to compel Heated to recognize and deal with the Union. 508 DECISIONS OF NATIONAL LABOR RELATIONS BOARD Shortly before the date scheduled for the election, the Union filed with the Board a request for leave to appeal from the direction of election, urging, among other claims, that the charge, as the request puts it, "used as the basis for the expected election has no basis"; that the Union had had no hearing on the allegations of the charge, and thus had been denied "a formal opportunity" to disprove them; and that for lack of such an opportunity, the Union had been "left with no remedy for avoiding the expedited election even though the basis upon which the election was ordered may in fact be false." The Board denied the request on March 18, 1960.8 That day, also, shortly before the time appointed for the election, the Union notified the agent of the Regional Director handling the electoral arrangements that it would not participate in the election On the same day, too, the Union dis- continued the picketing. k The election was held as scheduled. Of the nine ballots, seven were cast against the Union; one was void; and one was challenged. On March 28, 1960, the Regional Director issued a written certification to the effect that the Union had not received a majority of the votes and was, therefore, not the "exclusive representative" of the employees in the unit affected within the meaning of Section 9(a) of the Act. On March 30, 1960, the Union, through Graybill, wrote a letter to the Cascade County Trade and Labor Assembly, a federation of labor organizations located in the Great Falls area, stating that it intended "to picket Hested's store" in the near future "for informational purposes only," and disclaiming any "intent or desire . to stop deliveries to Hested's store," but expressing the hope of influencing "the public and friends of organized labor not to make purchases" from the establishment. The Union resumed picketing of the Great Falls store on May 3, 1960, and was still engaging in that activity at the time of the hearing in this proceeding. As before the election, no more than one picket has been used at a time, and, as in the previous activity, he has worn two signs "sandwich" fashion. Each sign contains the state- ment: Hested's Has No Clerks' Union Contract and Non-union Clerks." In other words, the composition of the signs is substantially the same as that used in the prior picketing, except that the phrase "Patronize union clerks" has been omitted. The resumption of the picketing was followed by the filing of the charge in this proceeding, and the issuance of the complaint based on the charge, alleging that the picketing since the election has violated Section 8(b) (7) (B) of the Act. The picketing aside, the Union has made no effort since the election to secure recognition by Hested as the representative of any of the latter's employees, nor to deal with Hosted, nor has the Union made any attempt to organize the employees in the unit involved in the election. B. Discussion of the issues and concluding findings It may be useful as a preface to stating and resolving the issues to set down the relevant statutory language that bears upon them. To the extent material here, Section 8 of the Act provides: (b) It shall be an unfair labor practice for a labor organization or its agents- ( * * * * * * (7) to picket or cause to be picketed, or threaten to picket or cause to be picketed, any employer where an object thereof is forcing or requiring an employer to recognize or bargain with a labor organization as the representative of his employees, or forcing or requiring the employees of an employer to accept or select such labor organization as their collective bargaining repre- sentative unless such labor organization is currently certified as the representa- tive of such employees: * * * * * * * (B) where within the preceding twelve months a valid election under sec- tion 9(c) of this Act has been conducted, or (C) where such picketing has been conducted without a petition under section 9(c) being filed within a reasonable period of time not to exceed thirty days from the commencement of such picketing: Provided, That when such a peti- tion has been filed the Board shall forthwith, without regard to the provisions of section 9(c) (1) or the absence of a showing of a substantial interest on the part of the labor organization, direct an election in such unit as the Board finds to be appropriate and shall certify the results thereof: .. . 6 On March 21, 1960, the General Counsel denied a request by the Respondent for re- view of the Regional Director's refusal to issue a complaint on the charge in Case No. 19-CP-4-1. The basis for denial was that "Section 102.81(a) of the Board' s Rules and Regulations , Series 8, permits review of such action only at the instance of the charging party." RETAIL CLERKS INT'L ASSOCIATION, LOCAL 57, AFL-CIO 509 The relevant provisions of Section 9(c) are: (1) Whenever a petition shall have been filed, in accordance with such regulations as may be prescribed by the Board- (B) by an employer, alleging that one or more individuals or labor or- ganizations have presented to him a claim to be recognized as the representative defined in section 9(a); the Board shall investigate such petition and if it has reasonable cause to believe that a question of representation affecting commerce exists shall provide for an appropriate hearing upon due notice. Such hearing may be conducted by an officer or employee of the regional office, who shall not make any recommenda- tions with respect thereto. If the Board finds upon the record of such hearing that such a question of representation exists, it shall direct an election by secret ballot and shall certify the results thereof. From the findings made above, and the statutory provisions affecting them, it is evident that the basic issues to be resolved are (1) whether the balloting held on March 18 was "a valid election under Section 9(c)," within the meaning of Section 8(b)(7)(B); and (2) whether an object of the picketing since May 3, 1960, has been to force or require Hested to recognize or bargain with the Union as the repre- sentative of employees of Hested's Great Falls store, or to force or require such employees to accept or select the Union as their bargaining representative. As regards the first issue, the Respondent reads the phrase "valid election under Section 9(c)" as meaning an election that follows the requirements of that section. Thus, so the argument runs, as the March 18 election was directed and held with- out the "appropriate hearing" specified in Section 9(c), the election was not "valid . under Section 9(c)," and, hence, the picketing in question, irrespective of its object, has not violated Section 8(b)(7)(B). At first blush, a literal reading of Section 8(b)(7)(B) would seem to support this thesis, but that is so, I think, only if one reads that section and'Section 9(c) in isolation from other provisions of the Act and some pertinent legislative history to be noted later. Reading Section 8(b) (7)(B) in conjunction with such other statutory terms, and with the applicable history, I emerge with a conclusion that the election was "valid .. . under Section 9(c)." As an initial step in that direction, it should be borne in mind that Section 8(b) (7) (C) expressly carves out an exception to Section 9(c) and has the effect of mak- ing valid an election in the situations reached by Section 8(b)(7)(C). That being the case, I think it a reasonable construction of Section 8(b)(7)(B) to treat an election that falls within the exception as "valid ... under Section 9(c)." Put an- other way, because of the exception, an election, such as that involved here, does not offend Section 9(c) and hence is "valid" thereunder. This view finds support in Section 9(c)(3) which provides, in part , that "[n]o election shall be directed in any bargaining unit or any subdivision within which, in the preceding twelve-month period, a valid election shall have been held." These provisions do not distinguish between a "valid election" that follows the prescrip- tions of Section 9(c) and one held under the terms of Section 8(b)(7)(C). Both fall within the sweep of the prohibition, an obvious purpose of which is to promote industrial peace and stability at least during a 12-month period following an elec- tion. Significantly enough, as the legislative history of Section 8(b) (7) (B) makes clear, that section has a similar aim, seeking in the process, to protect an employer and employees affected by an election from the coercive impact of the proscribed picketing during the identical period specified in Section 9(c) (3).7 It seems to me that to treat an election held under Section 8(b) (7) (C) as "valid . . . under Section 9(c)" for the purposes of Section 8(b)(7)(B), as well as for those of Section 9(c) (3), gives logical implementation and effect to the common underlying legislative aim of Sections 8(b)(7)(B) and 9(c)(3). Moreover, persuasive support for the view taken here of the interplay of Section 8(b)(7)(B) and 8(b)(7)(C) may be found in remarks made by Senator Kennedy. spokesman for the party majority of the Senate Conference Committee that dealt with the House Conference Committee on the terms embodied in those sections 4 See , for example, comment on Section 8(b) (7) (B). or comparable proposals that pre- ceded it, by Senator Kennedy at 105 Cong Ree 5959-5960 ; Senator Goldwater at 105 Cong. Rec 5968-5969 ; Secretary of Labor Mitchell at 105 Cong Rec. 1568 ; and Senator Morse at 105 Cong. Ree 16399. 510 DECISIONS OF NATIONAL LABOR RELATIONS BOARD Alluding to provisions of Section 8(b)^(7)(B) and 8(b)(7)(C), then under con- sideration by the conferees, he said on the floor of the Senate (105 Cong. Rec. 15900) : . picketing can continue for only 30 days. Under our substitute if the result of the picketing is to deny the entry of goods, ... an early election may be obtained by an employer-a right he does not have today. If the union loses the election , the picketing must cease. If the union lost that election, it could not picket for a year . So I think this would protect the employer from this attack by the unions to put pressure on the employer to force him to coerce his employees to join-the- union, because otherwise he would get deliveries. In other words, we say, in effect: "You can start picketing with anything you have, with any members you have; but if the picketing results in stopping deliveries or service employees from entering the premises, then there must be an immediate election." Then if the union loses the election it may not picket until a year later. [Emphasis supplied.] Senator Kennedy's remarks clearly suggest that in the legislative view Section 8(b) (7) (B) and 8(b) (7) (C) were interlocked and designed, in combination, to have the mutually complementary effect of providing an expedited election in given situa- tions without regard to the hearing requirements of Section 9(c)(1), and then, on the basis of the election, barring recognitional and organizational picketing for the 12-month period specified in Section 8(b)(7)(B). I hold, in short, that the elec- tion of March 18 had the effect of barring picketing proscribed by Section 8(b) (7) (B).8 The remaining question , then, is whether the picketing that began on May 3 had a forbidden object. In assessing the motive for the picketing, it would be a mistake, in my judgment, to follow the course, urged by the Respondent at the hearing, of ignoring the events that preceded it, including the aim of the picketing activity between February 9 and March 18. The correct way to view the record is in full perspective, and such an approach to an evaluation of the motivation for the second picketing entails an evaluation of the Respondent's conduct that preceded the election Taking that course, it is clear that at least one object of the initial picketing was to force Hested to recognize and enter into a contract with the Union As is evident from the findings made above, the Union repeatedly sought contractual arrangements with Hested even before the store was opened, and continued its efforts to secure recognition at least as late as Graybill's request of Pascoe on January 27 for "bargaining rights" for the Union. These efforts were implemented, it is important to remember, by repeated picketing threats, on occasion veiled as when Meyer told Pascoe on January 15 that a Great Falls establishment had been brought "to its knees in half a day of picketing"; sometimes in plainer terms as when Meyer told Milius on January 19 that the Union would picket Hested's Great Falls store unless Hested and the Union reached an "understanding," and when Graybill, on January 27, in effect visualized for Pascoe the possibility that if the Union were not given "bargaining rights," it would "take matters into [ its] own hands," and followed this with a statement that if Hested did not deal with the Union, the organization would "have to picket" the Great Falls store. Against that background. I am unable to attach any weight to the Union's self-serving disclaimers, whether in 8I find no merit in the Respondent's view, advanced at the hearing, that the election was invalid because Section 102 77 of the Board's Rules and Regulations, governing ex- pedited elections , vests discretion in the Regional Director to determine whether to hold a preelection hearing. What the regulation prescribes, and what the Regional Director did, are no more than what Section 8(b) (7) (C) permits I note, too, that under well- established doctrine, there was no constitutional right to a preelection hearing Empire District Council v. Millis, 325 U.S. 697 As the Supreme Court has pointed out* "At times a preliminary decision by an agency is a step in an administrative proceeding. We have repeatedly held that no hearing at the preliminary stage is required by due process so long as the requisite hearing is held before the final administrative order becomes effec- tive." Ewing V. My8tinger & Casselberry, 339 U.S. 594, 598. Without deciding whether the Respondent would have been permitted to present proof in this proceeding that the Regional Director 's determinations ( such as, for example, his unit definition) were wrong, it may be noted that the Respondent was not denied an opportunity to offer or present such evidence at the hearing in this case Finally, it may be noted as regards the election that there is no basis in the record for any claim that the Regional Director acted with caprice or otherwise abused his discretion. RETAIL CLERKS INT'L ASSOCIATION, LOCAL 57, AFL-CIO 511 Meyer's testimony or in its communications sent to or filed with the Regional Director or the Board, that the Union had no purpose, prior to the election, of seeking recognition. As regards the picketing since May 3, Meyer gave testimony to the effect that the Union wants nothing of Hested and has no desire to organize its employees or to seek recognition; and that the picketing is "informational" in nature, undertaken with the aim of informing the Great Falls public that the Hested, store there is "non- union and . . . (has) no clerks' union," thus, according to Meyer, enabling the public to distinguish between "working conditions" in Hested's store and those prevailing in unionized establishments in Great Falls. According to Meyer, also, at one point, the object of the picketing is to put Hested's Great Falls Store out of business.9 The force of this testimony is materially weakened, in my judgment, by the fact that Meyer claims that the preelection picketing, too, was soley "informational" in intent, although it is clear beyond doubt that an aim of that picketing was to compel Hested to recognize the Union and to enter into a contract with the organization. Be that as it may, Meyer's claims regarding the objectives of the second picketing activity impose a large burden on one's credulity for other reasons, notwithstanding the "informational" language of the signs; the fact that since the election, at least, the Union has made no effort, putting the picketing aside, to secure recognition by Hested or to organize the store's employees; and the Union's letter of March 30 to the Cascade County Trade and Labor Assembly (a document, by the way, that, like Meyer's description of the Union's picketing aims, has a self-serving cast). Apart from the fact that "working conditions" at Hested's store are not governed by a contract with the Union, there is no evidence that there is any difference between them and conditions prevailing in any other Great Falls establishments. For all that appears, indeed, it may be that Hested's store has better "working conditions," but, in any case, in the absence of evidence of such a difference, and taking into account the Union's repeated efforts before the election to secure recog- nition and the purpose of the picketing in that period, there is good reason to entertain a large doubt, to say the least, of the plausibility of Meyer's claim that the goal of the picketing is to make the public aware of any difference in "working conditions." But even if one assumes the existence of such a purpose, some aspects of Meyer's own testimony support a conclusion that at least one aim of the second picketing activity is the same as an object of the first. After voicing the claims described above, Meyer was asked "on what terms . Hested [could] be relieved of the picket," and, in reply, he initially stated (evasively in my judgment) that he "would have to talk with counsel first"; and then, pressed about the matter, he testified that the terms upon which the company could be relieved of the picketing "would be up to Hested's, to say what they would want to do." This of itself is an intimation that if Hested acceded to the Union's previous recognition demands, the picketing would be discontinued, but this view of the matter is strongly bolstered by subse- quent testimony by Meyer that Hested "could probably negotiate" and thereby effect removal of the picket. Such negotiation, as Meyer also conceded, would entail recognition of the Union and contractual terms, despite the fact that the Union has no right to represent the employees. Palpably, the admission that Hested "could" achieve discontinuance of the picketing through contract negotiations that the Union has no status to conduct runs counter to Meyer's claim that the goal of the picketing is to drive Hested's Great Falls store out of business, and to his disclaimers that the Union wants anything of Hested or that it has any interest in organizing Hested's employees or in recognition by the Company.io The sum of the matter is that I do not credit these disclaimers, and that upon consideration of the total record, I am persuaded that the Union's attitude is that discontinuance of the picketing is, as Meyer put it, "up to Hested's"; that what has been "up to Hested's" since May 3, as before the election, is a decision whether 9 The General Counsel adduced undisputed evidence that on several occasions the picket- ing induced employees of other employers not to make deliveries to the store or to per- form services there. I deem it unnecessary to enlarge upon this aspect of the record, for the application of Section 8(b) (7) (B) does not turn upon such evidence. In other words, if the aim of the picketing in question fell within the proscriptions of the section, it matters not whether the picekting induced a failure to make deliveries or perform services. 10 In finding, as I do, that an object of the picketing since May 3 has been to force Hested to recognize and bargain with the Union, I do not base the conclusion on testimony by the assistant manager of Hested's Great Falls store to the effect that on one occasion in June 1960 the man picketing the store told him that he would continue to picket "[tlill you guys join up." There is ample support in the record for the conclusion reached without taking the picket's remark into account. 512 DECISIONS OF NATIONAL LABOR RELATIONS BOARD to accede to the Union's demands for recognition and bargaining; that an object of such picketing has been, and is, to force and require Hested to recognize and bargain with the Union; and that by reason of such picketing within a period of 12 months following the election of March 48, 1960, the Union has violated Section S (b) (7) (B) of the Act." N. THE EFFECT OF THE UNFAIR LABOR PRACTICES UPON COMMERCE The activities of the Union, set forth in section III, above, occurring in connection with-the operations of Hested, described in section I, above, have a close, intimate, and substantial relation to trade, traffic, and commerce among the several States and tend to lead to labor disputes burdening and obstructing commerce and the free flow of commerce. V. CONCLUSIONS OF LAW Upon the basis of the foregoing findings of fact, and upon the entire record in this proceeding, I make the following conclusions of law: 1. Hested Stores Company is, and has been at all material times, an employer within the meaning of Section 2(2) of the Act. 2. Retail Clerks International Association, Local 57, AFL-CIO, is, and has been at all material times, a labor organization within the meaning of Section 2(5) of the Act. 3. Retail Clerks International Association, Local 57, AFL-CIO, is not, and has not been at any material times, certified as the representative of a unit of Hested Stores Company's employees appropriate for the purposes of collective bargaining, within the meaning of Section 9 of the Act. 4. The election held among employees of Hested Stores Company in Great Falls, Montana, as found above, was a valid election under Section 9(c) of the Act, within the meaning of Section 8(b) (7) (B) of the Act. 5. By picketing with the object of forcing and requiring Hested Stores Company to recognize and bargain with Retail Clerks International Association, Local 57, AFL-CIO, as the representative of the said employees, within 12 months following the said election, as found above, the said Union has engaged in, and is engaging in, unfair labor practices, within the meaning of Section 8(b) (7) (B) of the Act. 6. The aforesaid unfair labor practices are unfair labor practices affecting com- merce within the meaning of Sections 2(6) and (7) of the Act. [Recommendations omitted from publication.] "I am mindful that the conclusion reached here as to the aim of the picketing since May 3 differs from the holding of the United States District Court for the District of Montana in Graham v . Retail Clerks International Association (Heated Stores Co.), 188 F. Supp. 847 (D.C. Mont ). The cited decision arose from an action brought by the General Counsel under Section 10 (1) of the Act to enjoin the picketing pending final adjudication by the Board in this proceeding . Finding that the preelection picketing had the aim of forcing Rested to recognize the Union, and the employees to accept it, the court , for reasons not necessary to describe here, came to the conclusion, which it termed "not entirely free from doubt," that there was insufficient evidence that the object of the second picketing was the same as the first. That conclusion is not, upon close in- spection , irreconcilable with that reached here, for it does not appear from the court's opinion that it had before it the testimony by Meyer to the effect that the basis upon which the picketing could be discontinued "would be up to Hested's," and that the Com- pany "could probably negotiate" and thereby achieve the removal of the picket. Metropolitan Life Insurance Company and Insurance Workers International Union , AFL-CIO, Petitioner. Case No. 8-RC- 4599. September 7, 1962 DECISION AND DIRECTION OF ELECTION Upon a petition duly filed under Section 9 (c) of the National Labor Relations Act, a hearing was held before Arthur R. Mattson, hearing 138 NLRB No. 64. Copy with citationCopy as parenthetical citation