Shell Oil Co.Download PDFNational Labor Relations Board - Board DecisionsMay 29, 1975218 N.L.R.B. 87 (N.L.R.B. 1975) Copy Citation SHELL OIL COMPANY 87 Shell Oil Company and Warren J. `Weitzel . Case 20- CA-5619 May 29, 1975 SUPPLEMENTAL DECISION AND ORDER BY MEMBERS FANNING, KENNEDY, AND PENELLO On November 30, 1970, the National Labor Relations Board issued its Decision and Order in the above-entitled proceeding,' directing Respondent, inter alia, to make whole Warren J. Weitzel for his losses resulting from unfair labor practices commit- ted by Respondent in violation of Section 8(a)(1) of the National Labor Relations Act, as amended. Thereafter, the Board's Order was enforced by the United States Court of Appeals for the Ninth Circuit.2 Pursuant to a backpay specification and appropri- ate notice issued by the Acting Regional Director for Region 20, a hearing was held on October 31, 1974, before Administrative Law Judge David G. Heilbrun for the purpose of determining the amount of backpay due the discriminatee. On January 8, 1975, the Administrative Law Judge issued the attached Supplemental Decision. There- after, the General Counsel filed exceptions and a supporting brief, the Charging Party filed exceptions and supporting letters,3 and Respondent filed a brief in answer to exceptions. Pursuant to the provisions of Section 3(b) of the National Labor Relations Act, as amended, the National Labor Relations Board has delegated its authority in this proceeding to a three-member panel. The Board has considered the record and the attached Supplemental Decision in light of the exceptions and briefs and has decided to affirm the rulings, findings, and conclusions of the Administra- tive Law Judge as herein modified. We are in agreement with the Administrative Law Judge that Weitzel's quitting of his interim employ- ment at Mare Island Naval Shipyard was unjustified under the circumstances and that his projected interim earnings, had he retained that employment, should be considered, along with the early retirement benefits he received from Shell, in computing the amount by which the backpay due him from Respondent was offset. We also believe that, in the absence of a more comprehensive accounting of the funds to which Weitzel might have been entitled from the Provident Fund, the amounts which would have been put into the fund in Weitzel's account in each quarter, had Weitzel not been discharged, should be added to the gross backpay due him for 218 NLRB No. 32 each of those quarters. In computing these amounts, we use the figures shown in the backpay specification and Respondent's Exhibit 5, which the Administra- tive Law Judge accepted as a correct compilation of backpay figures to be considered. We note that in 1969, quarter II; 1971, quarter I; 1972, quarter I; and 1972, quarter II, the gross backpay due plus the amount which should have been contributed to the Provident Fund exceeds the sum of the projected interim earnings and the early retirement benefit received, by the following amounts for the respective quarters: $8.61, $45.01, $65.51, and $9.51. Comput- ing backpay on a quarterly basis4 we find that Weitzel is entitled to these amounts, which total $128.64, plus interest at the rate of 6 percent per annum,5 and shall order that Respondent reimburse Weitzel in that amount. ORDER Pursuant to Section 10(c) of the National Labor Relations Act, as amended, the National Labor Relations Board hereby orders that Respondent, Shell Oil Company, Martinez, California, its officers, agents, successors, and assigns, shall: 1. Pay to the discriminatee, Warren J. Weitzel, as net backpay the amount of $128.64. 2. In addition to the above amount, pay interest at the rate of 6 percent per annum computed on the basis of each quarterly amount of net backpay due, less any tax withholding required by law. 1 186 NLRB 941. 2 461 F.2d 1264 (1972). 3 The request by the Charging Party for oral argument is hereby denied as the record, including the briefs, adequately presents the issues and positions of the parties. 4 F. W. Woolworth Company, 90 NLRB 289 (1950). 5 Isis Plumbing & Heating Co., 138 NLRB 716 (1962). SUPPLEMENTAL DECISION DAVID G. HEILBRUN, Administrative Law Judge: On September 12, 1972, the United States Court of Appeals for the Ninth Circuit entered judgment enforcing the Board's reported Decision and Order' in this matter. Controversy having arisen over the amount of backpay due Warren J. Weitzel under the terms of that Decision and Order, the issues raised in a backpay specification issued October 3, 1974, and answered October 24, 1974, were heard as supplemental proceedings 2 at Martinez, California, on October 31, 1974. Upon the entire record in this case, including my observation of the witnesses, and upon consideration of briefs filed by General Counsel and Respondent, I make the following: 1 Shell Oil Company, 186 NLRB 941 (1970). 2 The transcript is corrected as requested by Respondent in its unopposed motion. 88 DECISIONS OF NATIONAL LABOR -RELATIONS BOARD FINDINGS OF FACT Weitzel's backpay period commences March 17, 1969. On March 19, 1969, he was employed by Mare Island Naval Shipyard as a pipefitter at $4.08 per hour. On June 2, 1969, Weitzel resigned the position, giving "wish employment commensurate to my training [and] education as surveyor" as the reason. Respondent's former Employee Relations Representative Hugh Roberts' testified that on June 3, 1969, Weitzel came into his office incident to the return of equipment and a brief conversation ensued. Several minutes after Weitzel's departure Roberts prepared a memorandum of the conversation which reads in part: [M]r. Weitzel stated that he had resigned from his pipefitter's job at Mare Island; his reason being the excessive pressure towards overtime work (12 hours a day, 7 days a week) due to repairs on the submarine that had recently sunk. He said' his basic desire had been to get into surveyor type work at Mare Island, but felt that it would take him three or four years and he didn't want to wait that long. He also stated that acceptance of this overtime did create problems regarding his income tax.3 R. P. Sheridan, head of personnel operations division at Mare Island, testified that pipefitter positions were continually open for the period June 2, 1969, through July 31, 1972, and the hourly rate increased in stages to $5.43.4 As an "open" position persons responsible for recruitment were "looking for" pipefitters during the stated period. The position of surveyor at Mare Island Naval Shipyard is classified GS-7, the equivalent rate for which was approximately 72 percent of that hourly rate associated with the pipefitter classification there from March 1969 through July 1972. Weitzel did not testify. For 6 or 7 years before being discharged he had been "sole incumbent" of the surveyor position on Respondent's survey team. During the prior 14 years Weitzel had been, successively, a pipefitter helper (4 years) and a pipefitter (10 years) with Respondent. The surveyor position at Respondent's facility carried a higher rate of pay as compared to pipefitter there. General Counsel pleaded the receipt of $28.91 in net interim earnings by Weitzel during 1971. The backpay period ends July 31, 1972, when Weitzel resumed employment with Respondent. Conclusions Mitigation of damages, for which the burden of proof rests on Respondent,5 is the issue of these supplemental proceedings. While the original proceeding established the commission of unfair labor practices for which Respon- 3 Pursuant to a retirement application signed "under protest" by Weitzel, a statement of settlement relative to the Shell Provident Fund dated April 24, ,1969, showed the amount of a settlement check as $34,513.58 with $23,344.32 of this figure subject to Federal income tax. In addition monthly retirement benefits of $216.13 were paid commencing February 1969. 4 The hourly rate progression to $5 43 incorporates two "step" increments at 6-month intervals measured from March 1969. 5 N.L.R.B. v. Brown & Root, Inc., 311 F.2d 447,454 (C.A. 8, 1963). 6 The exclusion of gross backpay for the quarter involved resulted in an dent, as "wrongdoer," must be accountable under the terms of remedial action ordered and enforced, this does not affect classic mitigation principles that have been broadly established and consistently applied by the Board. The most common instance calling for application of such principles is either the situation of a discriminatee obtaining interim employment which is then relinquished during the backpay period or failing to obtain employment (or sufficiently remunerative employment) during the period. The claim of mitigation here is "willful loss of earnings" from and after June 2, 1969. Respondent argues that leaving the Mare Island job was without "sufficient or just cause" and, in the alternative, that Weitzel was obligated to "lower his sights" after a reasonable time following the Mare Island employment and "accept other available work as a pipefitter." An individual's aptitude, education, experience, training, motivation, and personal mobility ordinarily forms a composite tending to affect success, or-lack thereof, in the attainment of interim employment. Prevailing labor market factors also impinge importantly on whether a job is obtained by one so seeking with reasonable diligence. The success attaching to an employment search may be fortuitous; however, once a job is assumed the focus becomes that of the job's content and why, when no longer held, a discontinuance occurred. Chief among the factors to be examined is general suitability, in terms of whether the individual should have retained the employment as a substantial means of earning livelihood while unremedied unfair labor practices continued to exist. In Kartarik, Inc., 111 NLRB 630, (1955), the Board adopted findings that a discriminatorily discharged die- and-tool maker be subjected to an exclusion of gross backpay because of quitting "certain employment" at St. Paul, Minnesota, and leaving for California "to see his mother and to obtain employment' more in accordance with his skills" when, admittedly, "work, closer to his skills was available in the St. Paul area at that time." 6 In East Texas Steel Castings Companyy'Inc., 116 NLRB 1336, (1956), the Board rejected a contention of willful losses where quitting of employment was for "justifiable personal or other reason." The "personal" reason was quitting a 32-hour-week job in preference for a 6-day-week one, while the "other" reason was simply that the discriminatee experienced layoff. Knickerbocker Plastic Co., Inc., 132 NLRB 1209 (1961), examined the action of 10 individuals who assertedly lost earnings willfully.? Circumstances related to'the quitting of jobs by voluntary choice or in the context of transportation problems and distasteful job conditions. The Board held each individual had quit "without compelling or justifying means ." The claimants' status was , summarized with language concluding that none of the jobs quit appeared excess of net interim earnings over gross backpay. 7 Respondent relies extensively on Knickerbocker in support of its primary contention. American Bottling Company, 116 NLRB 1303 (1956), and Ozark Hardwood Company, 119 NLRB 1130 (197), are also cited. The former of these involves a harsh pronouncement that willful loss of earnings was incurred by a discnminatee domiciled in Corpus Christi, Texas, who obtained higher-paying interim employment in Chicago, Illinois, which he quit under circumstances deemed "a choice of ^us own making " for which he should "hear the consequences of his choice." SHELL OIL COMPANY 89 "more burdensome" than those previously held nor "unsuited to persons of the claimants' skill and experi- ence." In no case had a claimant quit employment "for sufficient and justifiable cause" but instead each appeared "motivated more by personal convenience, preference, or accommodation than by necessity or difficulties inherent in the jobs which they quit." It was expressly noted that the jobs had "paid wages at least comparable to the ones they had held with [Kmckerbocker]."8 The Board wrote in further part at 1215: On this record, we cannot mitigate the backpay damages by finding that these jobs were unsuitable ways of earning a living, or that the claimants were justified in quitting them with no prospect of other employment. Once these claimants had obtained jobs, they could not voluntarily relinquish such employment under the circumstances herein involved without incurring what constitutes a willful loss of earnings for the period subsequent to their quitting. In Miami Coca-Cola Bottling Company, 151 NLRB 1701 (1965) the Board held that quitting a driver-salesman job where final earnings were "almost equal to his [former] base pay" was not justified by conditions of the claimant's truck engine running hot and that the employer failed to provide a sufficient quantity of merchandise for his route's needs. In The Madison Courier, Inc., 180 NLRB 781 (1970), the Board adopted language describing the conditional signifi- cance of jobs within the labor market area of discrimina- tees as "[C]omparable to, but not identical with, the jobs held by the claimants at the Madison Courier prior to the strike with respect to wages, hours, and other conditions of employment, as well as the amount of physical effort required to perform them and the degree of personal satisfaction and status in the community they afforded to their holders." 9 It is evident the Board expects discriminatees to prudently retain such interim employment as is secured. Excusable exception keys most frequently to the term "unsuitable"; ordinarily applied to mean unprestigious, 8 Respondent compares the ratio of Weitzel's Mare Island earning rate to gi oss backpay (84 percent based on hourly wage of $4.08 from March 17, 1969, to June 2, 1969, and $842 monthly salary for the same period) with the facts of Knickerbocker, stating that only 2 of the 10 claimants there had a higher interim earnings ratio (Resp. brief p. 8) The reference for such assertion is 6 pages of Appendix in Knickerbocker where substituted backpay schedules are set forth with the "offset" deductions applied to reflect willful losses for the 10 claimants (other than Zamora) named at p 1215. In fact, Respondent's characterization is inaccurate and fails to take into account particularized factors and fluctuation in such schedules. While claimants Granados and Kadi did exceed an 84 percent ratio in certain quarters, so did Muller and Hamilton at 86 percent and 85 percent for quarters 1952/IV and 1953/II, respectively. A more realistic analysis is to select quarters for each of the Knickerbocker claimants nearest to commencement of the backpay period, if such quarter appears free of extraneous factors. Doing this for Granados, Kadi, Blakemord, Granata, Ramirez, Contreras, and Corrao , yields pertinent earnings ratios of 98 percent, 93 percent, 80 percent, 76 percent, 70 percent, 69 percent, and 49 percent for quarters 1952/I,I, 1952/IV, 1952/IV, 1952/IV, 1954/IV, 1952/II, and 1955/I, respectively (plus Muller and Hamilton described separately above). The median of these is 80 percent and the arithmetic mean 78 percent. As so refined the notion of "comparable" earnings at interim employment, expressly noted by the Board in Knickerbocker, displays a preponderance favoring this branch of Respondent's argument here annoying jobs or those certain to create unacceptable disruption to the discriminatee's private life.10 Weitzel's former work as a surveyor "normally [involved] operating the surveying instruments, recording data, and making the necessary calculations." 186 NLRB at 943. An illustrative survey activity was "[S ]ecuring several elevations and fixing several benchmarks requested by the California Bureau of Reclamation in order to plan a proposed 60-inch pipe line across the refinery property to bring water from the Sacramento River to the Martinez reservoir." Id. During Weitzel's unavailability throughout the 1969 strike period, a slight amount of survey work was performed by a junior draftsman. No facts of record are available as to the surveyor position supposedly aspired to at Mare Island or the pipefitter positions formerly held by Weitzel at Respondent and at Mare Island. These,occupations have, however, been descriptively defined as follows: SURVEYOR ... Surveys earth's surface . . . deter- mining exact location and measurements of points, elevations, lines, areas, and contours of earth's surface to secure data used for construction, mapmaking, land valuation, mining, or other purposes: Calculates information . . . . [k]eeps accurate notes . . . . [s]u- rveys earth's surface, using surveying instruments and verifies ... accuracy of survey data secured. [U. S. Department of Labor, Vol. I, "Dictionary of Occupa- tional Titles" (3d ed., 1965) ]. PIPE FITTER, MAINTENANCE (any ind.) ... Determines defects in and maintains piping systems for steam, gas, water, air, acid, and paints in industrial or commercial establishments .... [r]eads blueprint or schematic drawings to determine work aids and procedures .... [m]easures, cuts, threads, and installs pipes, valves, gages, and other fixtures, using handtools [and machines]. [Id.] The occupation of surveyor tends to defy stereotyping. Obviously some physical exertion and manual dexterity is involved; however intellectual requirements are clearly present as well as willing ability to work in close 9 In its Second Supplemental Decision and Order in Madison Courier (202 NLRB 808 (1973)) the Board dealt only with remanded issues not pertaining to a quitting of interim employment. On October 11, 1974, the Circuit Court of Appeals for the District of Columbia Circuit remanded the case a second time in an action relied on by Respondent relative to its alternative contention that Weitzel should have "lower[ed] his sights" and accepted available pipefitter work by no later than October 17, 1969 The Court's opinion treats the "lower sights" doctrine finding it grounded in N.L.RB v, Southern Silk Mills, Inc. 242 F.2d 697 (C.A. 6, 1957), cert. denied 355 U.S. 821 (1957), and N L RB v. Moss Planing Mill Co., 224 F 2d 702 (C.A. 4, 1953), but relevant only insofar as discnminatees would first be accorded a reasonable time within which to search for work in the industry of their primary skills . NLRB. v. The Madison Courier, Inc, 505 F,2d 391 (C.A.D.C, 1974), 10 In Lozano Enterprises, 152 NLRB 258 (1965), a skilled linotype operator was justified in quitting janitorial work paying less than half his former weekly wages. In John S. Barnes Corporation, 205 NLRB 585 (1973), discnminatees permissibly quit jobs where one was'made "nervous" by his foreman and the second experienced "too difficult a, pattern of life for himself and his family" on an unaccustomed shift (each had obtained substitute employment without a break in normal workdays, thus clouding the precise significance of these holdings). See also Winn-Dixie Stores, Inc, 170 NLRB 1734, 1744 (1968); Artim Transportation System Inc, 193 NLRB 179, 183 (1971) 90 DECISIONS OF NATIONAL LABOR RELATIONS BOARD coordination with others of a small group. Functionally it is often an integral phase of civil engineering. Rate of remuneration, the most visible measure of employment skills, showed higher valuation than for pipefitter at Respondent's facility but a lower comparative one at Mare Island.11 Within this general framework the essential issue is whether the pipefitter position at Mare Island was unsuitable or amounted to interim employment which could be quit for justifiable reason. All that is known of Weitzel's specific motivation in submitting' the resignation of June 2, 1969, is contained in Roberts' record of contemporaneous utterance.12 Two reasons were under- stood to exist. The first, "excessive pressure towards overtime work," was clearly job-related yet did not manifest as a burdensome factor or immediately impinging on Weitzel's ability to remain in this employment.13 The second recorded reason dealt with tax consequences from interim earnings , a clearly impermissible influence, under the duty to mitigate . See Phelps Dodge Corp. v. N.L.R.B., 313 U.S. 177, 197-200. There remains the narrower question of whether the pipefitter position was intrinsically unsuitable and a continuing potential, which Weitzel happened to exercise on June 2, 1969, was present for it to be yielded up without disadvantaging this claim. As a recognized trade or craft pipefitting involves manual effort of varying degree and the display of craft skills.14 On a cultural scale no known aspersion exists as to group it with "menial" 15 occupations, nor was it in a labor market area geographically inconven- ient to Weitzel.'6 While Weitzel was 56 years of age at the time, there is no claim that pipefitter duties at Mare Island were unduly arduous or beyond his personal capacity to fulfill. On the contrary the position was pointedly appro- priate to his own occupational background. The total situation fails to reveal that justifiable cause existed for Weitzel to quit this employment. His voluntary cessation of gainful work in the slender hope of securing preferred survey employment, with undenied overtones that leisure rather than labor would afford financial advantage, marks the action as a willful loss of earnings deemed to reduce further backpay by the measure of nonmitigation. Mastro Plastics Corporation, etc., 136 NLRB 1342, 1350 (1962); Gary Aircraft Corporation, 211 NLRB 554 (1974). Consider- I i As a position within Federal service at Mare Island , the earnings of a surveyor position were governed by placement within the general schedule rather than as a "recognized" trade or craft. Allocation to the GS-7 level embodied the formal assessment that a Mare Island surveyor position included performance of "work .. in a professional , scientific or technical field [or] requiring professional , scientific or technical training , and, to a limited extent, the exercise of independent technicaljudgment ." 5 U.S C.A 15102(cx7), ¶5104(7), 15341. 12 The resignation occurred I day before formal filing of the original charge in this proceeding, a fact harmonizing with Roberts' notes of Weitzel saying his "unfair labor practice claim [was ] activated." 18 "Pressure" (to work overtime) is a nebulous term best clarified by the pressuree . The notion involved is that of voluntary versus nonvoluntary overtime. Here Roberts' notes allude to a prospective 84-hour workweek, yet the parties are in agreement that Weitzel worked only a "normal" 40- hour week throughout his Mare Island employment (G.C. Exh.- 1(c) - Appendix; Resp. Exh. 3). 14 Cf. Local No. 612, Teamsters (Brown Mechanical Contractors, Inc.), 202 NLRB 924 (1973). 15 A characterization of the janitor and dishwasher positions involved in ing the credible testimony of Sheridan that pipefitters were both employed and sought continuously during the claimed backpay period, Respondent correctly calculates the willful loss in its Exhibit 5 (column headed "Projected Interim Earnings") based on the arithmetic reconstruction of its Exhibit 3. Thus, for each of the calendar quarters existing in full or part during the claimed backpay period (subsequent to June 2, 1969) the amount of quarterly willful loss plus sums received as "Early Retirement Benefits" exceeds gross backpay. The consequence is a determination that no backpay is due Weitzel relative to the pleaded controversy.17 In so concluding Respondent's subsidiary contention is not reached. The "lower(ing) of sights" rationale relates to sufficiency of the search for employment, encouraging preservation of skill and training when there is risk these might be "prejudice[d]"' by "more readily" available work opportunities of an alternative character.18 Further, the doctrine addresses the dilemma of whether to accept a position of limited remuneration which mitigates so ineffectually that continuing to actively seek jobs is the wiser course. An equivalent suitability exists here between the surveyor and pipefitter occupations. Once the latter was secured the viable issue remaining surrounds motiva- tion for resigning. This obviates consideration of testimony from placement official Brian Listoe that pipefitter jobs were in continual demand at institutional employers of the Martinez-Vallejo labor market area during the claimed backpay period. Finally Respondent argues that Weitzel owes it sums that are cognizable in this supplemental proceeding. The basis of this assertion is the swing from plus to minus net backpay totals, by quarter, resulting from monthly receipt of $216.13 in early retirement benefits. The backpay specification concedes the offsetting effect of these, pay- ments, but no reason is present to accept the unprecedent- ed notion of a discriminatee being held financially liable to a Respondent because of dealings between them or extraneous payments received by the discriminatee. Ad- justments which are narrowly identified in lieu of earnings are properly deductible; beyond that Respondent has no standing -to ask for beneficial relief.19 The scope of this proceeding ends with the question of what amount, if any, Respondent shall now pay out in remedial satisfaction of Lozano, left unmodified by the Board's general adoption of Trial Eitaminer conclusions (152 NLRB at 264). 16 The respective localities of former employment and the Mare Island interim employment are the California cities of Martinez and Vallejo, respectively . An approximate traveling distance between them is 10 miles, crossing the Sacramento River by toll bridge. While interim expenses are scheduled in offset of earnings at Mare Island, no other assertion is raised respective to the differing locale. A majority of Mare Island employees commute to work from distances in excess of 15 miles (Tr: 40). 17 General Counsel argues that a principle exists which cloaks the quitting of employment with presumptive justification. (G.C Br. 3.) No satisfactory authority is advanced for the proposition. It can only be assumed as an attempted restatement of doctrine charging Respondent with meeting a burden of proof without lingering "uncertainties in the record." N L RR v. Miami Coca-Cola Bottling Company, 360 F.2d 569, 575-576 (C A 5, 1966); McCann Steel Company, Inc., 212 NLRB 394 (1974) 18 Maintenance of fullest craft proficiency was emphatically preferred in the context of "a highly complex and constantly changing industry" preseni in Madison Courier, 202 NLRB at 811, 812 is To the extent that workmen's compensation payments reflected "replacement of lost wages" they were included with interim earnings in (Continued) SHELL OIL COMPANY 91 the "loss of earnings" provision contained in paragraph 2(a) of the Board's Order. The backpay specification sought further pecuniary relief in terms of "emoluments" attached to former employment, cash surrender value of the Provident Fund stock portfolio, and indemnification relative to Federal Insurance Contrib- ution Act credits. The first two subjects were obliquely abandoned as a matter of colloquy during hearing, the third 20 evolved to a bare request for protective order relative to conjectural future events (Tr. 78, 79), and none of the points was briefed by General Counsel. Under the circumstances I see no adequate basis to expand on American Mfg Co. of Texas, 167 NLRB 520 (1967) Analogous reasoning was used to credit the amount paid under a settlement and release termed "not I^gally binding" to adjust plaintiffs recovery in a Fair Labor Standards Act case. Baker v. California Shipbuilding Corporation, 73 F.Supp. 322. Early retirement payments would not have been made, or at least not in the configuration or time frame here involved , but for Respondent's unlawful conduct Respondent 's claim is repugnant to basic purposes of this adjudication. 20 A technique superficially similar to this subject was that devised to cause an "attempt" at procuring restoration of pension rights by late tender traditional approaches to the computation of net backpay in formal supplemental proceedings. Disposition Upon the foregoing findings, conclusions, and the entire record and pursuant to Section 10(c) of the Act, I hereby issue the following recommended: ORDER21 Warren J. Weitzel is due no backpay from Respondent. of contributions . Arnim, supra at 185. The typical manner of spreading retroactive F.I.C A. contributions was not developed here and my view of the basic controversy means that no such credit will arse. 21 In the event no exceptions are filed as provided by Sec. 102.46 of the Rules and Regulations of the National Labor Relations Board , the findings, conclusions , and recommended Supplemental Order herein shall, as provided in Sec. 102 48 of the Rules and Regulations , be adopted by the Board and become its findings, conclusions , and Supplemental Order, and all objections thereto shall be deemed waived for all purposes. Copy with citationCopy as parenthetical citation