Robert S. Abbott Publishing Co.Download PDFNational Labor Relations Board - Board DecisionsNov 27, 1962139 N.L.R.B. 1328 (N.L.R.B. 1962) Copy Citation 1328 DECISIONS OF NATIONAL LABOR RELATIONS BOARD General Counsel seeks a broad cease and desist order. The Trial Examiner be- lieves there is merit in his contention that under the circumstances existing here, as a preventive measure such an order is fully warranted. There is no question but that this chain of discount stores is not only an expanding operation but a single, integrated enterprise, with central labor policy and control. It will be recommended that the contract of August 16 between the Respondents be set aside, and that recognition of the Respondent Unions be withdrawn and with- held unless and until the said labor organizations shall have been certified as such representative by the Board. Because of the nature of the unfair labor practices here involved, which occurred even before actual operations of the store began, it will be recommended that the Respondents cease and desist from infringing in any manner upon rights guaranteed employees by Section 7 of the Act. Upon the basis of the foregoing findings of fact and conclusions of law, and upon the entire record, the Trial Examiner makes the following: CONCLUSIONS OF LAW 1. Amalgamated Clothing Workers of America, AFL-CIO; Central States Joint Board, Retail and Department Store Employees, Amalgamated Clothing Workers of America, AFL-CIO; Kentuckiana Joint Board, Amalgamated Clothing Workers of America, AFL-CIO; and Retail Clerks International Association, AFL-CIO, are labor organizations within the meaning of Section 2(5) of the Act. 2. By contributing assistance and support to Amalgamated Clothing Workers of America, AFL-CIO; Central States Joint Board, Retail and Department Store Employees, Amalgamated Clothing Workers of America, AFL-CIO; and Kentuckiana Joint Board, Amalgamated Clothing Workers of America, AFL-CIO, the Respond- ent Employers have engaged in and are engaging in unfair labor practices within the meaning of Section 8 (a) (2) of the Act. 3. By discriminating in regard to the terms and conditions of employment of their Muncie, Indiana, employees, thereby encouraging membership in and support of a labor organization, the Respondent Employers have engaged in and are engaging in unfair labor practices within the meaning of Section 8(a)(3) of the Act. 4. By interfering with, restraining, and coercing employees in the exercise of rights guaranteed by Section 7 of the Act, the Respondent Employers have engaged in and are engaging in unfair labor practices within the meaning of Section 8(a)(1) of the Act. 5. By causing and attempting to cause the Respondent Employers to discriminate against employees within the meaning of Section 8(a) (3) of the Act, the Respondent Unions have engaged in and are engaging in unfair labor practices within the meaning of Section 8(b) (2) of the Act. 6. By restraining and coercing employees in the exercise of rights guaranteed in Section 7 of the Act, the Respondent Unions have engaged in unfair labor prac- tices within the meaning of Section 8(b) (1) (A) of the Act. 7. The aforesaid unfair labor practices are unfair labor practices within the meaning of Section 2(6) and (7) of the Act. [Recommendations omitted from publication.] Robert S. Abbott Publishing Company and Chicago Newspaper Guild , Local 71 , ANG, AFL-CIO Robert S. Abbott Publishing . Company and Chicago Newspaper Guild , Local 71 , ANG, AFL-CIO. Cases Nos. 13-CA-4208,13-CA- 4208-2, 13-CA-4208-3, 13-CA-4208-4, 13-CA-4208-5, 13-CA- 4208-6, 13-CA-4208-7, and 13-CA-4264. November 27, 1962 DECISION AND ORDER On December 8, 1961, Trial Examiner John H. Eadie issued his Intermediate Report herein, finding that the Respondent had engaged 139 NLRB No. 118. ROBERT S. ABBOTT PUBLISHING COMPANY 1329 in certain unfair labor practices and recommending that it cease and desist therefrom and take certain affirmative action, as set forth in the attached Intermediate Report. The Trial Examiner also found that Respondent had not engaged in certain other unfair labor practices and recommended that the allegations of the complaint in respect thereto be dismissed. Thereafter, all parties filed exceptions to the Intermediate Report, together with supporting briefs.' The Board has reviewed the Trial Examiner's rulings and finds no prejudicial error. The rulings are affirmed. The Board has con- sidered the Intermediate Report, the exceptions and briefs, and the entire record in the case, and adopts the findings, conclusions, and recommendations of the Trial Examiner with the additions, excep- tions, and modifications set forth below. 1. We agree with the Trial Examiner that Respondent violated Section 8(a) (5) and (1) of the Act, as detailed in the Intermediate Report. Contrary to the Trial Examiner, however, we find that Respondent further violated Section 8(a) (5) by permanently con- tracting out the work of the mechanical department. During the unfair labor practice strike of its employees, Respond- ent decided to permanently contract out the work of the mechanical department. This decision was arrived at by Respondent without notice thereof to the Union and without affording the Union an op- portunity to bargain about it or about its effect upon the strikers con- cerned. On April 24, the decision was communicated to the Union as a fait accompli. The Board has recently held that an employer who permanently subcontracted its delivery service during an economic strike without notification to, or bargaining with, the union violated Section 8 (a) (5) 2 A fortiori, Respondent's permanently contracting out the mechanical department work while an unfair labor practice strike was in progress also violated Section 8 (a) (5) of the Act.' 2. We find, as did the Trial Examiner, that Respondent violated Section 8(a) (3) and (1) of the Act by its refusal to reinstate the unfair labor practice strikers upon their unconditional offer to return to work on April 24,1961. THE REMEDY Finding that the Respondent has engaged in certain unfair labor practices, we will require that it cease and desist therefrom and take certain affirmative action designed to effectuate the policies of the Act. The Respondent , having refused to bargain with the Union in viola- tion of Section 8 (a) (5) and (1) of the Act, will be ordered to bargain 1 The Charging Party's request for oral argument is denied , as the record, exceptions, and briefs adequately present the issues and positions of the parties. 2 Hawaii Meat Company, Limited, 139 NLRB 966, Member Leedom concurring specially on the ground that, in his view, the subcontracting was for antiunion reasons. 3 Cf. N.L.R.B. v. Benno Katz, 369 U. S. 736. 1330 DECISIONS OF NATIONAL LABOR RELATIONS BOARD with the Union, upon request, as the exclusive representative of its employees in the appropriate units concerning rates of pay, wages, hours and other terms and conditions of employment and, if under- standings are reached, embody such understandings in signed agree- ments. We shall also order that Respondent cease and desist from making unilateral changes in the terms and conditions of employment of its employees without consulting their designated bargaining representative. With respect to the reinstatement rights of the complainants herein, the Trial Examiner has found as follows : ... the strike which commenced on April 16, 1961, was caused by the Respondent's unfair labor practices and hence was an unfair labor practice strike; . . . on April 24, 1961, the Union on behalf of the striking employees made all unconditional offer to return to work; and . . . starting on April 28, 1961, the Re- spondent made offers of reinstatement to a number of employees. I find that such offers on the part of the Respondent were valid offers of reinstatement.4 This treatment by the Trial Examiner appears to assume that an offer to reemploy a selected number of a group of unfair labor prac- tice strikers, while at the same time denying employment to others similarly situated, constitutes, as to those to whom the offer is made, a valid, unqualified tender of reinstatement even though jobs were available for the strikers whose reinstatement requests were rejected. We do not believe that it does. The Act guarantees to employees the right to participate in group activity for their mutual aid and protection. Because of this protec- tion afforded employee concerted activity, employees who find them- selves in the positions of the complainants in this case have the right to strike in protest over their employer's unfair labor practices. This protection of group action logically extends not only to the begin- ning of a strike, but to its ending as well. Thus, when the striking employees desire to terminate the strike, they are entitled to ask for 4 The Trial Examiner accordingly concluded that the strikers who were offered re- instatement have no reinstatement rights and are entitled to backpay only to the date of the reinstatement offer. For reasons stated in Northern Virginia Sun Publishing Company, et al, 134 NLRB 1007 , which Member Fanning regards as contrary to the majority decision here, he dis- sents from the majority finding that the Respondent owes backpay to those strikers who, having been offered reinstatement , chose to continue striking rather than return to their former jobs . While such employees do not lose their reinstatement rights where , as here, their employer has unlawfully refused to reinstate their fellow employees , their election to engage in concerted activity is protected from reprisal, but not financed by their em- ployer . The Act does not protect an employee from loss of wages as the result of a strike even though the strike was caused by an unfair labor practice. An employee who prefers concerted activity to the status of a "strikebreaker " cannot sup at both tables. He cannot be unavailable for work to put economic pressure on his employer to rectify a wrong and at the same time receive full pay for the job from which he has voluntarily absented himself. ROBERT S. ABBOTT PUBLISHING COMPANY 1331 their reinstatement as a group and insist upon such reinstatement with- out being penalized therefor.' Were it otherwise, and could an employer single out a select number of the group of reinstatement and require them to accept reinstatement under penalty of loss of wages or reinstatement rights, and thus even force them to act as strike- breakers against the interests of those who had been acting in concert with them, the very protection which the Act affords to collective action would be denied to every member of the group. And this protection would be lost to them when it was most urgently needed, at the close of a losing strike. The future effect of such infringement upon the security of collective association which is so fundamental to the organizational life of all the employees would be to jeopardize the further exercise by the employees of their right to engage in concerted activity. On the basis of these considerations, we reject the Trial Examiner's finding that Respondent's piecemeal offers of reinstatement were valid unconditional ones. We shall accordingly require that Respondent offer to all those named in the attached Appendix A immediate and full reinstatement to their former or substantially equivalent posi- tions without prejudice to their seniority and other rights and priv- ileges, dismissing if necessary any person hired on or after April 16, 1961, to provide employment for the returning strikers.6 It will also be ordered that Respondent make these employees whole for any loss of pay they may have suffered by reason of Respondent's discrimina- tion against them by payment to each of them of a sum of money equal to that which each normally would have earned as wages from the date of Respondent's refusal to reinstate them to the date of Respond- ent's offer of reinstatement, less his net earnings during such period, in accordance with the formula prescribed in F. TV. Woolworth Com- pany, 90 NLRB 289. Such backpay shall be computed with interest at the rate of 6 percent per annum in the manner set forth in Isis Plumbing d Heating Co., 138 NLRB 716? ORDER Upon the entire record in this proceeding and pursuant to Section 10(c) of the National Labor Relations Act, as amended, the National Labor Relations Board hereby orders that Respondent, Robert S. Abbott Publishing Company, Chicago, Illinois, its officers, agents, successors, and assigns, shall : 5Rapid Roller Co. v. N.L.R.B., 126 F. 2d 452 (C.A. 7), cert. denied 317 U.S. 650; NL.R.B. v. Poultrymen's Service Corporation, 138 F. 2d 204 (C. A. 3). O To completely remedy the unfair labor practices found, Respondent will, of course, be required to abrogate its unilateral arrangement for the performance of work formerly performed in its mechanical department. ?For the reasons set forth in the dissent in the Isis case, Member Leedom would not grant interest on backpay. 672010-63-vol. 13 9-8 5 1332 DECISIONS OF NATIONAL LABOR RELATIONS BOARD 1. Cease and desist from : (a) Discouraging membership in Chicago Newspaper Guild, Local 71, ANG, AFL-CIO , or any other labor organization of its employees, by discriminatorily discharging or refusing to reinstate any of its employees or by discriminating in any other manner in regard to their hire and tenure of employment or any term or condition of employment. (b) Refusing to bargain collectively with Chicago Newspaper Guild, Local 71, ANG, AFL-CIO, as the exclusive representative of its employees in the appropriate units, and from unilaterally chang- ing the wages , hours, and other terms and conditions of employment of such employees without prior consultation with the above-named Union. The appropriate units for bargaining are : (1) All employees of the Respondent in the editorial , commercial, maintenance , and miscellaneous departments , excluding employees in the mechanical departments , the publisher , the executive assistant to the publisher, editor-in -chief, executive editor, city editor, voluntary noncompensated teenage contributors to the teenage or bulletin page, business manager of administrative services , building superintendent, classified ad manager , circulation supervisor , controller , advertising director , circulation manager, the confidential secretaries to the pub- lisher, executive editor, executive assistant to the publisher , and ad- vertising director , and guards and supervisors as defined in the Act. (2) All employees of Respondent in the composing room, press- room, stereotype room, and mailroom , excluding all other employees and supervisors. (c) Refusing to supply pertinent data to Chicago Newspaper Guild, Local 71, ANG, AFL-CIO, the representative of its employees, to substantiate a plea of financial inability to grant a wage increase. (d) In any other manner interfering with, restraining , or coercing its employees in the exercise of their rights of self-organization, to form labor organizations , to join or assist the above -named Union or any other labor organization , to bargain collectively through repre- sentatives of their own choosing , and to engage in other concerted activities for the purpose of collective bargaining or other mutual aid or protection , or to refrain from any and all such activities , except to the extent that such right may be affected by an agreement requiring membership in a labor organization as a condition of employment, as authorized in Section 8 (a) (3) of the Act, as modified by the Labor- Management Reporting and Disclosure Act of 1959. 2. Take the following affirmative action which the Board finds will effectuate the policies of the Act : (a) Upon request, bargain collectively with the above -named labor organization as the exclusive representative of the employees in the above-described appropriate units with respect to rates of pay , wages, ROBERT S. ABBOTT PUBLISHING COMPANY 1333 hours of work, and other terms and conditions of employment, and embody any understandings reached in signed agreements. (b) Offer to each of the employees named in the attached Appendix A immediate and full reinstatement to his former or to a substantially equivalent position without prejudice to his seniority or other rights and privileges, dismissing, if necessary, any persons hired on or after April 16, 1961, and make each of them whole for any loss of pay he may have suffered by reason of the Respondent's refusal to reinstate him, in the manner set forth in the section of this Decision and Order entitled "The Remedy." (c) Preserve and, upon request, make available to the Board or its agents, for examination and copying, all payroll records, social secu- rity payment records, timecards, personnel records and reports, and all other records necessary for the determination of the amount of backpay due and the rights of reinstatement under the terms of this Order. Post at its plant in Chicago, Illinois, copies of the attached notice marked "Appendix B." 8 Copies of said notice, to be furnished by the Regional Director for the Thirteenth Region, shall, after being duly signed by the Respondent's authorized representative, be posted by the Respondent immediately upon receipt thereof, and be main- tained by it for a period of 60 days thereafter in conspicuous places, including all places where notices to employees are customarily posted. Reasonable steps shall be taken to insure that said notices are not altered, defaced, or covered by any other material. (e) Notify the Regional Director for the Thirteenth Region, in writing, within 10 days from the date of this Order, what steps the Respondent has taken to comply herewith. CHAIRMAN MCCULLOCH and MEMBER RODGERS took no part in the consideration of the above Decision and Order. 8 In the event that this Order is enforced by a decree of a United States Court of Appeals, there shall be substituted for the words "Pursuant to a Decision and Oider" the words "Pursuant to a Decree of the United States Court of Appeals , Enforcing an Or der " APPENDIX A Ernest Roberts Donald Webb Ivan Yeargain Donald Hurst F. Henderson F. Watts Albert Rolls J. Rush Meredith Johns Fred Taylor Estee Prather Etta Russell Geraldine Russell Robert Smith Laura Williams Clarence Herring Beverly Penson Theodore Stone Galileo Somerville Robert McDougal Gentle Fields Johnnie Williams Franklin Hickman Lola Fisher George Bailey Isaiah Major Herman Wilson James Wiley William Caldwell Clarice Alston Bruce Reynolds Virginia Lane J. Dear Turner Pettway Lilliam Calhoun Alvan Adams 1334 DECISIONS OF NATIONAL LABOR RELATIONS BOARD Florence Davis John Hayes Shellie McDade James Force Marcus Holness Harold ( James) Jones Lee Jenkins Bernice Loving Donald Casey Eleanor Pino Robert Shaw Robert Williams, Jr. Bettie Sebastian Henry Dear, Jr. Mable Norfleet Barbara Weldon Roy Burford Susan Powe Robert Williams Philip Matthews Barbara Thompson Nate Dickson APPENDIX B NOTICE TO ALL EMPLOYEES Pursuant to a Decision and Order of the National Labor Relations Board, and in order to effectuate the policies of the National Labor Relations Act, as amended, we hereby notify you that : WE WILL NOT discourage membership in Chicago Newspaper Guild, Local 71, ANG, AFL-CIO, or any other labor organiza- tion of our employees, by discriminatorily discharging or refusing to reinstate any of our employees or by discriminating in any other manner in regard to their hire and tenure of employment or any term or condition of employment. WE WILL NOT unilaterally make changes in the wages, hours, and other terms and conditions of employment of the employees in the appropriate units described below without prior consulta- tion with Chicago Newspaper Guild, Local 71, ANG, AFL-CIO. WE WILL, upon request, supply pertinent data to the above- named Union to substantiate our plea of financial inability to grant any wage increases. WE WILL, upon request, bargain collectively with the above- named labor organization. as the exclusive bargaining representa- tive of all employees in the following units with respect to rates of pay, wages, hours of employment, and other conditions of employment and, if understandings are reached, embody such understandings in signed agreements. The bargaining units are : All employees of the Respondent in the editorial, commer- cial, maintenance, and miscellaneous departments, excluding employees in the mechanical department, the publisher, executive assistant to the publisher, editor-in-chief, executive editor, city editor, voluntary noncompensated teenage con- tributors to the teenage or bulletin page, business manager of administrative services, building superintendent, classified ad manager, circulation manager, and the confidential secre- taries to the publisher, executive editor, executive assistant to the publisher, and advertising director, and guards and supervisors as defined in the Act. ROBERT S. ABBOTT PUBLISHING COMPANY 1335 All employees of Respondent in the composing room, press- room, stereotype room, and mailroom, excluding all other employees and supervisors. WE WILL offer to the following employees immediate and full reinstatement to their former or substantially equivalent posi- tions, without prejudice to their seniority or other rights and privileges, and make each of them whole as a result of our refusal to reinstate them : Ernest Roberts Theodore Stone Donald Hurst Gentle Fields Albert Rolls Lola Fisher Fred Taylor Herman Wilson Geraldine Russell Clarice Alston Clarence Herring J. Dear Galileo Somerville Alvan Adams Johnnie Williams Florence Davis George Bailey James Force James Wiley Lee Jenkins Bruce Reynolds Eleanor Pino Turner Pettway Bettie Sebastian Donald Webb Barbara Weldon F. Henderson Robert Williams J. Rush Nate Dickson Estee Prather John Hayes Robert Smith Marcus Holness Beverly Penson Bernice Loving Robert McDougal Robert Shaw Franklin Hickman Henry Dear, Jr. Isaiah Major Roy Burford William Caldwell Philip Matthews Virginia Lane Shellie McDade Lilliam Calhoun Harold (James) Jones Ivan Yeargain Donald Casey F. Watts Robert Williams, Jr. Meredith Johns Mable Norfleet Etta Russell Susan Powe Laura Williams Barbara Thompson All our employees are free to become or remain, or refrain from becoming or remaining, members of any labor organization, except to the extent that this right may be affected by a lawful agreement re- quiring membership in a labor organization as a condition of em- ployment. ROBERT S. ABBOTT PUBLISIIING COMPANY, Employer. Dated---------------- By------------------------------------- (RepreSentative) (Title) NOTE.-We will notify any of the above-named employees presently serving in the Armed Forces of the United States of their right to 1336 DECISIONS OF NATIONAL LABOR RELATIONS BOARD full reinstatement upon application in accordance with the Selective Service Act after discharge from the Armed Forces. This notice must remain posted for 60 days from the date hereof, and must not be altered, defaced, or covered by any other material. Employees may communicate directly with the Board's Regional Office, Midland Building, 176 West Adams Street, Chicago, Illinois, Telephone Number, Central 6-9660, if they have any question con- cerning this notice or compliance with its provisions. INTERMEDIATE REPORT STATEMENT OF THE CASE This proceeding involves allegations that Robert S. Abbott Publishing Company, herein called the Respondent, violated Section 8(a)(1), (3), and (5) of the National Labor Relations Act, as amended. A hearing was held before Trial Examiner John H. Eadie at Chicago, Illinois, on August 7, 8, and 9, 1961. After the conclusion of the hearing, the General Counsel and the Respondent filed briefs with the Trial Examiner. Upon the entire record and from my observation of the witnesses, I make the following: FINDINGS OF FACT I. THE BUSINESS OF THE RESPONDENT The Respondent is an Illinois corporation. It maintains its office and facilities at Chicago, Illniois, where it is engaged in newspaper publication and printing. During the calendar year of 1960, the Respondent's gross receipts were in excess of $800,000, part of which was received for advertising of nationally sold products. During the same period of time, the Respondent purchased outside of and caused to be shipped into the State of Illinois goods and materials valued in excess of $100,000 The complaint alleges, the Respondent's answer admits, and the Trial Examiner finds that the Respondent is engaged in commerce within the meaning of Section 2(6) and (7) of the Act. H. THE LABOR ORGANIZATION INVOLVED Chicago Newspaper Guild , Local 71, ANG, AFL-CIO, herein called the Union, is a labor organization within the meaning of Setcion 2(5) of the Act. III. THE UNFAIR LABOR PRACTICES A. Background; the negotiations The Respondent's employees are divided generally into two groups, the editorial employees, referred to in the record as the "non-mechanical unit," and the composing room employees, referred to in the record as the "mechanical unit." For a number of years the Union represented the employees in the nonmechanical unit. The most recent contract between the parties for this unit expired on November 1, 1960. Prior to February 1961, the employees in the mechanical unit were represented by an independent union. The last contract between the Respondent and the independent union expired on February 15, 1961. On February 23, 1961, the Board certified the Union as the exclusive bargaining representative for the employees in the mechanical unit. By letter dated September 7, 1960, the Union served notice on the Respondent that it wished to modify the existing contract. The Union's proposals for a new con- tract for the nonmechanical unit were sent to the Respondent on September 21, 1960. The first meeting between the parties was held on November 11, 1960. Between this date and April 24, 1961, approximately 14 meetings were held. At a meeting held on December 21, the Respondent submitted a proposal to re- classify certain jobs. It amounted to a wage increase of approximately $100 per week and covered about 20 of the 45 employees in the nonmechanical unit. Kenneth Byrd, executive director of the Union and its "chief spokesman" at most of the bargaining sessions, and Eleanor Pino, a member of the Union's bargaining com- ROBERT S. ABBOTT PUBLISHING COMPANY 1337 mittee,l were present at this meeting. Judge James Parsons, the Respondent's attorney at the time, Bertram Pratt, its personnel director, and John Sengstacke, its president, represented the Respondent. Concerning the meeting, Judge Parsons testified credibly as follows. Mr. Pratt would read the counter proposal. There would be a discussion on the counter proposal. And there would be concessions made by me on behalf of the company. And we went through each of the items of the counter pro- posal, and such concessions were made as requested to the extent to which they appeared agreeable by the employees who were present except for one. That related to salary raises. And in that discussion, the proposal was to equalize certain job placements, by bringing up those who were in the same placement for more salary. And in the course of that discussion that ensued, Mrs. Pmo indicated it would be very unfortunate to try to sell to the other employees a contract without an increase across the table. And there was a discussion in which Mr. Pratt in- dicated that it would not be possible to have an increase across the table. I interceded that I thought we should take that back to Mr. Sengstacke and discuss the possibility of further concession. Mr. Byrd said that he would-that the unit would await our further notification. Meetings were held between the parties on January 13, 25, and 30 and on February 21 and 24. The evidence does not disclose what took place at these meetings. As to the meetings held on and after February 27, 1961, there are a number of issues of fact. In the following account of these meetings, I have endeavored to set forth what I believe and find to be the true and relevant facts in the case. In so finding I have credited portions of the testimony of witnesses called on behalf of both the General Counsel and the Respondent. The testimony of witnesses which is contrary to the facts found has not been credited. At the meeting held on February 27 Pino represented the Union, as Byrd was not present. Pratt represented the Respondent. He asked Pino for the Union's position on the Respondent's wage proposal. She replied that "either everybody got an increase or nobody." Pratt remarked that the Respondent did not have "the money now to give this wage increase." When Pino asked what had "happened to the $93," Pratt answered, "the auditors had found the money was not there, and [the proposed wage increase] should not have been offered in the first place." By letter dated March 16, 1961, the Union requested the Respondent to fix a date to begin negotiations for a contract covering the mechanical unit. The Union enclosed its contract proposals. Another meeting for the nonmechanical unit was scheduled for March 17. Byrd arrived early in order to confer with 'Pino. He was met by Pratt who told him that Sengstacke wanted to see him in his office. Concerning his conversation with Byrd at the time, Sengstacke testified credibly as follows: I told Mr. Byrd that I wanted to discuss two things with him; one was our classification proposal, and the other was money. I told him that our classi- fication proposal was not submitted as a money proposal. It was submitted to correct certain inequities in the organization. That we had a clause in our contract for years calling for certain classifications, and that the guild and the company would get together after the contract was signed, and in the present contract there was one, and change these classifications. I went into the fact that the organization had grown and that at this point it was important that we go into that question before getting into any money, money increases. I also said to him that the company was in a critical position, that we were not in a position to make increases. That I had on my desk weekly statements of profit and loss which is all that I had-that I got from the book- keeping department-and I'll be glad to go over it with him. He says no, I'll prefer not He said I think we had better go to the meeting; we have been here long enough And I said why don't we get one other member of the unit. And he said no, we had better go to the meeting because the people might think I am selling them out. Sengstacke was not present at the beginning of the meeting on March 17. Byrd opened the meeting by telling Pratt that he understood that the Respondent had withdrawn its wage offer Pratt replied that the Respondent's auditor had advised him that the offer should not have been made in the first place, as no money was available for it. Byrd said, "You must realize that there must be some money in 1 Pino. employed by the Respondent as a switchboard operator, became the Union's "unit chairman" on January 7, 1961 1338 DECISIONS OF NATIONAL LABOR RELATIONS BOARD this new contract. . . . If you don't have the money, then certainly if you will prove to us someway that you don't have the money, we will be glad to extend the existing contract." When Sengstacke appeared at the meeting, he stated that the Respondent was faced with a "pretty dire financial situation"; that it was "currently in the process of having a series of executive meetings to try to determine how we could meet this emergency situation"; that he anticipated that it would be necessary to make a reduction in force on or about April 1; and that he was having difficulty in obtaining information from his auditors as to the Respondent's financial condition, as the "entire book- keeping department" was in the process of being revised. Byrd asked Sengstacke if the Respondent would show the Union its books or if it "would be willing to give us proof of this claim of inability to grant wage increase." Sengstacke refused to show the books to the Union, saying, "No, I don't want my books made public, because it is a bad thing if the public knows that a company is not in good financial condition." He also told Byrd that he "would not allow the guild or anybody to go on a fishing exhibition." Byrd then stated, "We must have some proof of your claim. We simply cannot take your word for it." To this Sengstacke replied to the effect that Byrd knew how to get what he wanted if he "would asked for it properly." When Byrd asked him what he meant by this statement, Sengstacke made no explanation and gave the same reply.2 Sengstacke further stated, "I don't have any current information [on the Respondent's financial status] here . . . the only information I have is information I get from my bookkeeping department . . . there are members of the bookkeeping department who are in the guild who are present here, whom I will release from confidence if you wish to ask them. . . . Byrd refused this offer. As stated above, by letter dated March 16, 1961, the Union submitted its contract proposals and requested the Respondent for a meeting date to begin bargaining for the mechanical unit. In a letter dated March 23, 1961, Pratt stated in part, "A careful review of your proposals are now being made, and I will advise you as soon as possible as to a time, date and place to begin bargaining." During the last week in March Byrd telephoned Pratt. He asked Pratt, "How are you coming along on . . . your counterproposal for the mechanical department bargaining?" Pratt replied, "We are in good shape. I have to talk to [Sengstackel, but I have not been able to catch him, because he had been pretty busy." During about the last week of March or the first week of April, Pino, Ivan Yeargain, "vice chairman of the bargaining committee," and Laura Williams, also a member of the committee, had separate conversations with Pratt. They asked him when a date would be set to begin negotiations for the mechanical unit. Pratt replied in sub- stance, that he did not know, as Sengstacke was busy, and that he could not give an answer until he talked to Sengstacke. The Union held a meeting on April 8, 1961, attended by employee members of both the mechanical and nonmechanical units. Pino presided over the meeting. She told the employees that the Respondent had refused to grant a wage increase; that it had refused to offer any proof of its financial inability to grant a wage in- crease, and that the Union was encountering difficulty in getting the Respondent to commit itself to a date to begin negotiations for the mechanical unit. The employ- ees then voted to authorize the calling of a strike. Another meeting between the parties for the nonmechanical unit was held on April 13. Byrd informed Sengstacke of the action taken at the Union's meeting of April 8, and again asked for proof of the Respondent's financial inability to give a wage increase. Byrd asked Sengstacke if he would permit the Union's "auditors" to look at the Respondent's books. When Sengstacke refused, Byrd asked him if the Respondent and the Union could agree on "an impartial CPA" or "someone" to go over the books, stating that the Union and the Respondent each could pay half of the cost. Sengstacke stated that he could not agree to this proposal, because he had just had an audit of the books made and could not afford to pay for another audit. Byrd then asked him if he would provide the Union with "a copy of that audit from your own auditor." Sengstacke again refused. At the end of the meet- ing, Byrd asked Sengstacke if he could tell him when the Respondent would be able to meet with the Union to commence negotiations on a contract for the mechanical unit. Sengstacke replied to the effect that he could not, as the Respondent's counter- proposals were incomplete, and that the Respondent would advise the Union as to a meeting date at a later time. 2 Sengstacke testified that by the above remark he was referring to the weekly profit and loss statements that lie had offered to Byrd at their private meeting, and that he did not take such statements to the bargaining sessions or ever offer them to the Union at a meeting. ROBERT S. ABBOTT PUBLISHING COMPANY 1339 On April 16, 1961, a strike commenced involving both the mechanical and the nonmechanical employees. On this same date the Respondent began contracting out work performed formerly by the employees in the mechanical unit. Meetings between the parties for the nonmechamcal unit were held on April 19, 21, and 24, 1961. The meeting on April 19 was held at the office of the Federal Media- tion and Conciliation Service. Alfred Kamin, the Union's attorney, was present. To the question of Mediator Haney as to what the Union wanted to settle the strike, Byrd replied, "We want proof of Mr. Sengstacke's ability or inability to grant a wage increase for the nonmechamcal department, and we want firm meeting dates for the first contract bargaining in the mechanical department." Concerning the balance of the meeting, Byrd testified credibly as follows: Then Mr. Haney separated the parties. The company committee left the room and went into another room. After . . . about a half hour, I believe, it was Mr. Haney who came back. He told us that he could get us a profit and loss statement for the year ending June, 1960. He could get us a letter from Mr. Sengstacke's auditor saying that the books were in bad shape and could not tell anything about them anyway and he could get us three firm meeting dates for the mechanical department, for the mechanical department bargain- ing-the union said "We accept " Then the Federal Mediator went to get the Company-brought the Com- pany committee back to the general meeting room where the Guild committee was; and he then made the offer to the Guild. He repeated what he had said to us by ourselves. Mr. Sengstacke seemed a little bit upset. He said, "I did not authorize you to show that to anyone. The Mediator said , "I did not show it to anyone, but you did not tell me that anything you said or showed me was in confidence." Mr. Kamin then said, "Well, let's not consider it any- one's offer , except the Guild. The Guild will make an offer-will make that an offer." * * * * * * * Mr. Kamin asked for a reasonable date to return . He informed the com- pany that they would have to give us at least 24 hours to go back to the unit and have the unit ratify any agreement that we reached with the company. Then Mr. Sengstacke said, "Well, I am not represented by counsel and I cannot agree to this until I get my attorney." The meeting on April 21 was held at Kamin's office. Ray Schoonhoven, the Respondent's attorney, was present. The Union stated that it would enter into a strike settlement stipulation if it received "a profit and loss statement for the year ending June 1960," and " firm meeting dates" for the mechanical department. The Respondent agreed to this. When Kamin asked if he should prepare the strike settlement stipulation, Schoonhoven replied that it should not be prepared then be- cause "there will be a few people we won't be able to take back." At the meeting on April 24, the Respondent supplied the Union with "a compara- tive statement of income for six months ended June 30, 1960, and June 30, 1959," and a letter dated April 22, 1961, to Sengstacke from the Respondent's auditor.3 The Union asked the Respondent to identify the "few people" whom the Respondent would not return to work. Schoonhoven then named all of the approximately 58 employees who were on strike. As to his statement at the time concerning the em- ployees in the mechanical unit, Schoonhoven testified credibly as follows: In that meeting with respect to the composing room employees, I told Mr. Kamin and Mr. Byrd that the company had learned in contracting out its composing work during the strike, that it could do it cheaper that way than doing it themselves. And that, therefore, the company was not going to use its linotype machines, it was not going to use its advertising machines which I understand, and said I understood to be similar to linotype machines. And there would be no work for those employees. That there was one employee needed to do emergency work if there were mistakes or rework or anything that came in from the outside contractor. And that we had that one employee who was an employee from that room who had S The letter reads as follows : The attached Comparative Statement of Income for the six month periods ended June 30, 1960 and June 30, 1959 for the Robert S Abbott Publishing Company is an exact copy of the income or "profit and loss" statement furnished to you as a part of our Interim audit report dated September 15, 1960 1340 DECISIONS OF NATIONAL LABOR RELATIONS BOARD not gone out on strike. And that within a few days we would need two addi- tional people as makeup people. And we would let the union know within a few days about that. Following Schoonhoven 's statement, Kamin stated that on behalf of the striking employees the Union made "an unconditional offer to return to work, given a reason- able date." Schoonhoven replied, On behalf of the employer , since this strike is an economic strike and since some employees have been permanently replaced and since other jobs have been eliminated due to a reorganization of operations , at this time there are no jobs to which the Company can presently assign any striker . We anticipate a few openings in the near future for which notice will be given. After April 24 the Union made several unconditional offers on behalf of the em- ployees to return to work. By telegrams sent on April 28 the Respondent informed employees Marcus Holness, Robert Williams , Sr., Nathan Dickson, Philip H. Mat- thews, Florence Davis, Shellie McDade, and Willie Geiger that "work" was "avail- able" for them commencing on April 30 . By telegrams sent on May 1 the Respond- ent informed employees Robert Shaw and Gentle Fields that "work" was "available" for them commencing on May 2. On July 3, 1961 , Schoonhoven sent Kamin the following letter: On behalf of the above -named employer , we hereby offer employment to the twenty persons (who prior to April 16, 1961 were employed by it) whose names were listed to you in the meeting of June 29 , 1961 in the offices of the Federal Mediation and Conciliation Service . Such offer of employment is to the same or substantially equivalent positions (as identified in that meeting of June 29) as those which they held prior to April 16, 1961. Such employment is to commence as soon as reasonably possible after the employer is informed as to the acceptance of this offer by the employees concerned. For your convenience, the twenty names are attached hereto on appendix A. In order that the employer can intelligently plan with respect to this offer, we will expect a reply as to the acceptance or rejection of this offer within a reason- able time, either from you (or the Guild ) as representatives of the employees or from the various employees themselves. We consider one week to be a reasonable time within which to make such reply. If we do not receive an affirmative reply by the end of the normal business day (5:00 P.M.) on Wednesday, July 12, 1961, the employer will consider the offer rejected. The 20 employees referred to in the letter were Bettie Sebastian , Florence Davis, Laura Williams, Etta Russell, Barbara Thompson, Alvin Adams, Nate Dickson, Bernice Loving, Robert Williams, Sr., Florence Watts, Robert Shaw, John Hayes, Marcus Holness, Philip Matthews, Henry Dear, Robert Williams, Jr, Herman Wilson, Donald Casey, Shellie McDade, and W. Geiger. On August 1, 1961, Schoonhoven sent Kamin the following letter: On behalf of the above named employer , we are informing you as attorney for the Chicago Newspaper Guild, that the employer hereby offers employment (to their same or substantially equivalent positions as they held prior to April 16, 1961 ) to the following persons: James Foree Barbara Weldon Harold Jones Lola Fisher Eleanor Pino Roy Burford J. Dear Theodore Stone Susan Powe Lee Jenkins Mable Norfleet Meredith Jones Such employment is to commence August 7, 1961. If the employer has not heard from the Guild or the employees as to their acceptance of this offer by the end of that day, the employer will consider the offer rejected. On July 14, 1961, Kamin sent the following letter to Schoonhoven: This is in answer to your letters of July 3, 1961 and July 10, 1961. The Chicago Newspaper Guild, AFL-CIO by its authorized spokesman has advised me that your letter has been read and explained to all those persons named in Appendix A of the July 3 letter, except one who has already obtained full time employment elsewhere and does not desire to go back to the Defender. These persons, whom you have offered rehire but not reinstatement, were fully advised that the decision as to whether your offer of hire should be accepted is a matter for each individually to make. ROBERT S. ABBOTT PUBLISHING COMPANY 1341 Accordingly the Chicago Newspaper Guild, AFL-CIO neither accepts nor rejects the publisher 's offer as expressed in the July 3 letter you sent me. The matters you have presented are to be answered individually by each person to whom your offer of hire has been made. On August 1, 1961 , Pratt sent employee Clarice Alston the following letter: Through our attorney in contacting the Chicago Newspaper Guild we have offered employment to certain of our employees who went on strike on April 16, 1961. Since at that time you were the head of the Public Service Department and a supervisor of the employee of the library, we do not consider you in the Unit represented by the Guild. Accordingly, we offer to you directly employ- ment to the same or a substantially similar position to which you held prior to April 16, 1961. Such employment is to commence August 7, 1961 . If we have not heard from you by the end of the day (August 7, 1961 ), we will consider the offer rejected. It does not appear that any of the employees mentioned above returned to work. B. Conclusions In my opinion the evidence shows that the Respondent did not bargain in good faith during the negotiations for the nonmechanical unit. The Respondent claimed financial inability to grant a wage increase , but repeatedly refused the Union's requests to offer some proof of such claim. The Respondent refused the Union's requests to make its records available to the Union 's auditor or to an independent auditor upon whom the parties could agree. It also refused to supply the Union with a copy of a recent audit. In sum, the Respondent simply said "no" to all of the Union 's requests or suggestions of acceptable proof of the Respondent 's claim, but made no effort to substantiate its claim or to find some solution agreeable to the Union. In their private meeting on March 17, 1961, Sengstacke did offer Byrd "weekly statements of profit and loss," claiming at the time "which is all that I had." How- ever, the record shows that the Respondent had in its possession from about Sep- tember 15, 1960, the "Comparative Statement of Income " which it finally supplied to the Union on April 24. Further , Sengstacke did not bring the weekly statement's or offer them to the Union 's representatives at the regular meeting on March 17. Aside from the questions of the propriety of the manner in which the offer was made to Byrd or of Byrd 's justification in rejecting the offer,4 under all of the circumstances I believe that more was required of the Respondent than this one off-the-record gesture of Sengstacke before a finding of bargaining in good faith on the Respondent's part could be made. Accordingly , I find that by the above conduct the Respondent violated Section 8(a) (5) and ( 1) of the Act. I also find that the Respondent by failing on and after March 16, 1961 , to set a date to commence negotiations for the mechanical unit violated Section 8 ( a) (5) and (1) of the Act . On the above date Byrd requested the Respondent to name a date "as soon as possible." Thereafter , as found above , the Union's representatives made a number of inquiries of Pratt as to when the Respondent intended to meet with the Union . In each instance Pratt gave a vague and indefinite answer. At the meeting held on April 13, Byrd told Sengstacke of the action taken by the members of the Union at its meeting of April 8, and asked the Respondent when it would start negotiations for the mechanical unit. Again the Union received an indefinite answer. It was not until after the strike had begun and the parties had been called together by Mediator Haney that the Respondent agreed to meet with the Union on a definite date. In my opinion , the Respondent's conduct clearly was dilatory, and , when considered together with its action in the nonmechanical nego- tiations , shows that it was not bargaining in good faith. In view of the above findings , it is clear that the strike was from its very inception an unfair labor practice strike, motivated and prolonged by the Respondent 's failure to bargain in good faith , and I so find . I further find that the Union on April 24, 1961, made an unconditional offer to return to work on behalf of the striking em- ployees. Therefore , the Respondent by failing and refusing to reinstate the strikers on and after April 24, 1961 , violated Section 8(a)(3) and ( 1) of the Act. The General Counsel also contends that the Respondent on and after April 16, 1961, by contracting for the work of the mechanical department without notifying 4 The record does not disclose the contents of the weekly statements or the period of time covered. 1342 DECISIONS OF NATIONAL LABOR RELATIONS BOARD the Union or consulting with it violated Section 8(a)(5) of the Act. I do not agree Insofar as the record discloses, the sole reason for the action taken by the Respondent was the continuation of the operation of its plant during the strike. In so doing it was no more obligated to consult with the Union as to the farming out of work than it would have been if it had hired new replacements. Further, as pointed out in the Respondent's brief, on April 24 the Union did not request and the Respondent did not refuse to discuss this subject after the Union had made its un- conditional offer of return to work Accordingly, it will be recommended that this allegation of the complaint be dismissed. IV. THE EFFECT OF THE UNFAIR LABOR PRACTICES UPON COMMERCE The activities of the Respondent set forth in section III, above, occurring in con- nection with the Respondent's operations described in section 1, above, have a close, intimate, and substantial relationship to trade, traffic, and commerce among the several States and tend to lead to labor disputes burdening and obstructing commerce and the free flow of commerce. V. THE REMEDY Having found that the Respondent has engaged in certain unfair labor practices, I will recommend that it cease and desist therefrom and that it take certain affirma- tive action designed to effectuate the policies of the Act. Having found that the Respondent has refused to bargain with the Union in viola- tion of Section 8(a)(5) and (1) of the Act, I will recommend that Respondent be ordered to bargain with the Union upon request as the exclusive representative of all its employees in the appropriate units concerning rates of pay, wages, hours, and other terms and conditions of employment, and if understandings are reached, embody such understandings in signed agreements. It has been found that the strike which commenced on April 16, 1961, was caused by the Respondent's unfair labor practices and hence was an unfair labor practice strike; that on April 24, 1961, the Union on behalf of the striking employees made an unconditional offer to return to work; and that starting on April 28, 1961, the Respondent made offers of reinstatement to a number of employees. I find that such offers on the part of the Respondent were valid offers of reinstatement. Accord- ingly, it will be recommended that the Respondent be ordered to offer to the striking employees named in the attached Appendix A immediate and full reinstatement to their former or substantially equivalent positions without prejudice to their seniority and other rights and privileges, dismissing if necessary any person hired on and after April 16, 1961, to provide places for the returning strikers. I will also recommend that the Respondent be ordered to make the striking employees whole for any loss of pay they may have suffered by reason of the Respondent's refusal to reinstate them by payment to each of them of a sum of money equal to that which each normally would have earned as wages during the period from April 16, 1961, to the date of the Respondent's offer of reinstatement, less his net earnings during such period, in accordance with the formula prescribed in F. W. Woolworth Company, 90 NLRB 289, 291-294. The names of the strikers to whom the Respondent made offers of reinstatement, together with the dates of the offers listed opposite their names, are shown on the attached Appendix B. In their cases it will be recom- mended that the Respondent make each of them whole for the period from April 16, 1961, to the date of offer of reinstatement. Upon the basis of the foregoing findings of fact and upon the entire record in the case I make the following: CONCLUSIONS OF LAW 1. All employees of the Respondent in the editorial, commercial, maintenance, and miscellaneous departments, excluding employees in the mechanical departments, the publisher, the executive assistant to the publisher, editor-in-chief, executive editor, city editor, voluntary noncompensated teenage contributors to the teenage or bulletin page, business manager of administrative services, building superintendent, classified ad manager, circulation supervisor, controller, advertising director, cir- culation manager, and the confidential secretary to each of the following: Publisher, executive editor, executive assistant to the publisher, and advertising director; and guards and supervisors as defined in the Act, constitute an appropriate unit within the meaning of Section 9(b) of the Act. ROBERT S. ABBOTT PUBLISHING COMPANY 1343 2. All employees of Respondent in the composing room , pressroom , stereotype room, and mailroom, excluding supervisors and all other employees , constitute an appropriate unit within the meaning of Section 9(b) of the Act. 3. Chicago Newspaper Guild, Local 71, ANG, AFL-CIO, a labor organization within the meaning of Section 2 (5) of the Act, has been at all times on and after since about 1950 in the nonmechanical unit and since on or about February 23, 1961, in the mechanical unit the exclusive representative of all the employees in the afore- stated appropriate units for the purposes of collective bargaining within the meaning of Section 9 (a) of the Act. 4. By refusing at all times on and after about March 16, 1961 , to bargain collec- tively with the above -named labor organization as the exclusive representative of its employees in the aforestated appropriate units, the Respondent has engaged in and is engaging in unfair labor practices within the meaning of Section 8(a) (5) of the Act. 5. By discriminating with respect to the hire and tenure of employment of the employees named in Appendixes A and B, attached hereto, thereby discouraging membership in the above -named labor organization , the Respondent has engaged in and is engaging in unfair labor practices within the meaning of Section 8(a)(3) of the Act. 6. The strike which commenced on April 16, 1961, was caused by the Respond- ent's unfair labor practices , and hence was an unfair labor practice strike. 7. By interfering with, restraining , and coercing its employees in the exercise of the rights guaranteed in Section 7 of the Act, the Respondent has engaged in unfair labor practices within the meaning of Section 8 ( a)-(1) of the Act. 8. The aforesaid unfair labor practices are unfair labor practices affecting com- merce within the meaning of Section 2(6) and ( 7) of the Act. 9. The Respondent did not engage in any unfair labor practices on and after April 16, 1961 , by farming out the work formerly performed by the employees in its mechanical unit. [Recommendations omitted from publication.] APPENDIX A Ernest Roberts James Wiley Estee Prather Donald Hurst Isaiah Major Robert Smith Albert Rolls William Caldwell Beverly Penson Fred Taylor Virginia Lane Robert McDougal Geraldine Russell Bruce Reynolds Franklin Hickman Clarence Herring Turner Pettway Lillian Calhoun Galileo Somerville Donald Webb Ivan Yeargain Johnnie Williams F. Henderson George Bailey J. Rush APPENDIX B Marcus Holness--------- April 30, 1961 Robert Williams, Jr.________July 8, 1961 Robert Williams, Sr.______April 30, 1961 Herman Wilson ----------- July 8, 1961 Nathan Dickson --------- April 30, 1961 Donald Casey ------------- July 8, 1961 Philip H. Matthews------April 30, 1961 James Foree------------ August 7, 1961 Florence Davis ---------- April 30, 1961 Lola Fisher____________ August 7, 1961 Shellie McDade --------- April 30, 1961 J. Dear ---------------- August 7, 1961 Robert Shaw ------------- May 2, 1961 Susan Powe------------ August 7, 1961 Gentle Fields ------------- May 2, 1961 Mable Norfleet--------- August 7, 1961 Bettie Sebastian ----------- July 8, 1961 Barbara Weldon --------- August 7, 1961 Laura Williams------------July 8, 1961 Eleanor Pino----------- August 7, 1961 Etta Russell -------------- July 8, 1961 Theodore Stone --------- August 7, 1961 Barbara Thompson -------- July 8, 1961 Lee Jenkins ------------ August 7, 1961 Alvan Adams ------------- July 8, 1961 Meredith Johns --------- August 7, 1961 Bernice Loving ------------ July 8, 1961 Harold (James) Jones ___August 7, 1961 Florence Watts ------------ July 8, 1961 Roy Burford ----------- August 7, 1961 John Hayes --------------- July 8, 1961 Clarice Alston ---------- August 7, 1961 Henry Dear -------------- July 8, 1961 Copy with citationCopy as parenthetical citation