Shulman's Inc. of NorfolkDownload PDFNational Labor Relations Board - Board DecisionsJan 29, 1974208 N.L.R.B. 772 (N.L.R.B. 1974) Copy Citation 772 DECISIONS OF NATIONAL LABOR RELATIONS BOARD Shulman's Inc. of Norfolk and Retail Store Employees Union, Local 233, Retail Clerks International Association , AFL-CIO. Cases 5-CA-5942, 5-CA-6009, and 5-RC-8365 January 29, 1974 DECISION AND ORDER By CHAIRMAN MILLER AND MEMBERS FANNING AND JENKINS On August 23, 1973, Administrative Law Judge Joseph I. Nachman issued the attached Decision in this proceeding. Thereafter,. Respondent and the General Counsel filed exceptions and supporting briefs, and Respondent filed a brief in, response to the General Counsel's 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 Decision in light of the exceptions and briefs' and finds merit in certain of the General Counsel's exceptions as hereinafter set forth. Accord- ingly,, the Board affirms the Administrative Law Judge's rulings, findings, conclusions, and recom- mendations only to the extent consistent herewith, and adopts his recommended Order as modified herein. Counsel for the General Counsel excepted to the Administrative Law Judge's finding that Respondent did not violate Section 8(a)(1) by interviewing several employees in the hotel room of W. H. ' Meir, president of the Hart, Schaffner & Marx retail division. The record indicates that on February 27, 1973, following Respondent's first campaign meeting for employees, Meir and Respondent's president, Curnutt, extended an invitation to any employees who might wish to speak with them to visit Meir's room on the afternoon of March 1. Meir testified that employees were told that he and Curnutt would be available and willing to discuss "any of the problems" employees might have. This was the first time any such meetings had been arranged.' On March 1, five employees individually visited Meir's room and spoke with Meir and Curnutt. At I Although our dissenting colleague implies that this meeting, as well as later meetings with employees , was prompted by employee complaints about Mayo, the record indicates otherwise. Ia fact it wasMeir who approached Curnutt and suggested the March 1 meeting with individual employees and while at least one employee , Zimmerman, complained about Mayo on March 1 , other employees complained about their fellow workers, department managers, and Shulman's inventory and merchandising policies in general . In any event it is difficult to see why Respondent's invitation to employees to air their "problems" ceases to be an unlawful solicitation of grievances merely because for certain employees Mayo may have himself become such a "problem." least two of these employees, Miller and Zimmer- man, discussed pay raises and promotions that had been promised them by Mayo, who had formerly been in charge of Respondent's Military Circle store. In addition, Miller testified that he had aired his "gripes" with Meir concerning one of the managers of the Military Circle store. Meir testified that he was not specifically aware of Mayo's promises to employees prior to his meeting with these employees on March 1. He further testified that his response to employees on that occasion was that the Company "will do our utmost to trace these problems and to sit down and discuss these with you." He also recalled telling employees that it was the Company's intention "never to make a promise without keeping a promise." Finally, he acknowledged that at a subsequent meeting with employees on March 3 he had discussed the need to communicate and told employees that "they could form their own communication people [sic) and we would be available for discussion at any time and any place." Contrary to the Administrative Law Judge, we find that by the conduct described above Respondent unlawfully solicted employee grievances and implied that such grievances would be rectified in the future. As we stated in Ring Metals Company, 198 NLRB No. 143, "where . . . an employer who has not previously had a practice of soliciting employee complaints, institutes such a practice to coincide with an organizational campaign, the employer has engaged in improper interference with his employees' freedom of choice in violation of Section 8(aXl)." Although the Administrative Law Judge indicated in his Decision that Respondent's conduct in announcing and granting benefits immediately fol- lowing the March 5 election could be relied upon as one of the several grounds for setting aside that election, we do not agree. Consequently, in deciding to affirm the Administrative Law Judge's Decision, we have considered Respondent's unlawful postelec- tion conduct only with respect to whether or not the atmosphere or holding a fair rerun election has been destroyed so as to necessitate a bargaining order. Like the Administrative Law Judge, we find that Respondent's unfair labor practices have been so pervasive as to make "the possibility of erasing the We also disagree with our dissenting colleagues conclusion that Respondent's conduct was not designed unlawfully to interfere with the employees' freedom of choice. In choosing to view Mayo as the villain of the piece and Respondent as (an) innocent bystander, our colleague ignores or dismisses out of hand the ample record evidence of Respondent's unlawful conduct and purpose. Contrary to our dissenting colleague's characterization of Respondent's actions, the repeated solicitation of grievances , the circulation of an artfully worded election day notice insinuating that employee grievances will be rectified , and the preelection grant of benefits to hourly paid employees are hardly indicative of a "very cautious" attempt not to interfere with the employees' freedom of choice. 208 NLRB No. 117 SHULMAN'S INC. OF NORFOLK effects of past practices and of ensuring a fair election . . . by traditional remedies . . . slight." N.L.R.B. v. Gissel Packing Co., Inc., 395 U.S. 575, 614 (1969). We shall, therefore, adopt the Adminis- trative Law Judge's recommended Order and require Respondent to bargain with the majority representa- tive of its employees. ORDER Pursuant to Section 10(c) of the National Labor Relations Act, as amended, the National Labor Relations Board adopts as its Order the recommend- ed Order of the Administrative Law Judge, as modified herein, and hereby orders that Respondent, Shulman's Inc. of Norfolk, Virginia, its officers, agents, successors, and assigns, shall take the action set forth in the said recommended Order, as so modified: 1. Insert the following as paragraph 1(a) and reletter subsequent paragraphs accordingly: "(a) Soliciting employee grievances and implying that such grievances will be rectified in the future to induce employees to cease supporting a union, or not to vote for the Union." 2. Insert the following as paragraph 2(c): "(c) Notify the Regional Director for Region 5, in writing, within 20 days from the date of this Order, what steps the Respondent has taken to comply herewith." 3. Substitute the attached notice for the Adminis- trative Law Judge's notice. CHAIRMAN MILLER. dissenting in part: This, in my view, is an unusual case, and one which we ought to decide with a minimum of legal niceties and a very heavy dose of commonsense. Respondent here was confronted with a member of management who apparently was primarily interest- ed in his own political future and acted out of what he perceived to be his own self-interest, rather than as an authorized management agent. He first did his best to attract employee support for the Union and then, after the Union) failed to support his political efforts with either a $2,500 contribution or with an endorsement of his candidacy, his attitude changed by 180 degrees and he engaged in a series of acts and statements which unlawfully interfered with employ- ees' freedom or' choice, this time in an effort to destroy support for the Union which had, as he saw it, let him down. Throughout all of this, and possibly antedating any of it, he appears to have performed as something less than a fully responsible member of management, in such ways, for example, as making promises to employees which could not be and were not kept. When some employees advised the top manage- 773 ment personnel of the confused and unhealthy state of affairs of the stores here involved, top manage- ment quite naturally attempted to restore some degree of credibility and confidence by employees in the management. Meetings were held with employ- ees, which in another factual context I might well agree might be construed as grievance solicitation of a type and timing designed to interfere with employees' self-organizational rights. But in the factual context here, I do not believe this was the impact or the effect of them. It is also apparent that Respondent attempted to be very cautious not unlawfully to interfere with the employees' right of free choice. It did not make promises of benefit nor did it install or even refer to the increased benefits which, prior to the organizational campaign, it had planned to effectuate. To this there was one exception-a modification of holiday practices which affected only 4 of 69 employees, and which was neither announced nor even referred to during the campaign. I do not believe that this minor adjustment was undertaken for an improper purpose or that it tended to have any meaningful impact on the election. After the election, when Respondent quite properly believed that the implementation of previously decided upon changes could not be charged to have had any effect upon an already held election, it proceeded to implement them. I cannot realistically find that Respondent violated our Act in any of this. It is true, however, that Mayo, who acted, I am confident, solely out of personal considerations unrelated to any authority vested in him by either management or the Union, neverthe- less engaged in statutorily prohibited activity-all for purely personal and political purposes. His vacillat- ing and improper activity sufficiently tainted the atmosphere in which the election was held that I would run a fresh election. But that is all I would do, and it is all that needs doing, so far as I can see, to effectuate the policies of our Act in this most unusual state of affairs. APPENDIX NOTICE To EMPLOYEES POSTED BY ORDER OF THE NATIONAL LABOR RELATIONS BOARD An Agency of the United States Government After a full trial in which all sides had the opportunity to present their evidence, the National Labor Relations Board has found that we, Shulman's of Norfolk, Inc., violated the National Labor Relations Act, and ordered us to post this notice. We will carry out the order of the Board, the judgment of 774 DECISIONS OF NATIONAL LABOR RELATIONS BOARD any court enforcing the same, and comply with the following: The National Labor Relations Act gives all employees these rights: To engage in self-organization To form, join, or help unions To bargain collectively through a repre- sentative of their own choosing To act together for collective bargaining or other mutual aid or protection and To refrain from any or all of these things. WE WILL NOT do anything to interfere with our employees in the exercise of these rights. WE WILL NOT solicit employee grievances and imply that such will be rectified to induce them to withdraw their support from a union. WE WILL NOT coercively interrogate any em- ployee. WE WILL NOT tell employees that other employ- ees will no longer support a union. WE WILL NOT promise benefits to employees to induce them to withdraw their support from a union, or to vote against a union in a Board election. WE WILL NOT grant employees improvements in their wages, hours and terms and conditions of employment to induce them to withdraw their support from a union, or as a reward for having voted against a union in a Board election. WE WILL, upon request, recognize and bargain with Retail Store Employees Union, Local 233, Retail Clerks International Association,AFL-CIO, as the exclusive collective-bargaining repre- sentative of our employees in an appropriate unit of all employees at our stores in the Norfolk, Virginia, area, excluding all store managers, guards and supervisors as defined in the Act, and if an understanding is reached embody the same into a written signed agreement. SHULMAN'S OF NORFOLK, INC. (Employer) DECISION STATEMENT OF THE CASE JOSEPH I. NACHMAN, Administrative Law Judge: The captioned proceedings tried before me at Norfolk, Virgini- a, on May 16-18, and 29-31,1 involved two complaints pursuant to Section 10(b) of the National Labor Relations Act, as amended (herein the Act),2 which were consolidat- ed for trial, and which allege in substance, that Shulman's Inc. of Norfolk3 (herein Respondent or Company), in the course of an organizing campaign by Retail Store Employ- ees Union, Local 233, Retail Clerks International Associa- tion, AFL-CIO (herein Union or Local 233), interfered with, restrained, and coerced its employees in the exercise of their Section 7 rights; discharged Karl Askew because of his concerted and union activity; and refused to bargain with the Union as the designated majority representative of its employees in an appropriate unit, thereby violating Section 8(a)(1), (3), and (5) of the Act. Also consolidated for trial with the unfair labor practice cases, were objections filed by the Union to an election held in the representation case.4 As hereafter more fully detailed, I find and conclude that Respondent engaged in extensive and substantial violations of Section 8(a)(l) of the Act which were of such a pervasive character as to preclude the holding of a fair election, and under N.L.R.B. v. Gissel Packing Company, Inc., 395 U.S. 575 (1969), a bargaining order is necessary and proper; that the representation petition be dismissed and all proceeding pursuant thereto vacated; and that the General Counsel has failed to establish by a preponderance of the evidence that the discharge of Karl Askew was violative of either Section 8(a)(1) or (3) of the Act, and that the allegations of the complaint in that regard should be dismissed. At the trial, full opportunity was afforded all parties to introduce relevant and material evidence, to examine and cross-examine witnesses, to argue orally on the record, and to submit briefs. Oral argument was waived. Briefs submitted by the General Counsel and Respondent, respectively, have been duly considered. Upon the plead- ings, stipulations of counsel, the evidence, including my observation of the demeanor of the witness while testifying, and the entire record in the case, I make the following: Dated By (Representative) (Title) This is an official notice and must not be defaced by anyone. This notice must remain posted for 60 consecutive days from the date of posting and must not be altered, defaced, or covered by any other material. Any questions concerning this notice or compliance with its provisions may be directed to the Board's Office, Charles Center, Federal Building Room 1019, Baltimore, Maryland 21201, Telephone 301-962-2822. I Dates referred to in the months of January through May are 1973, while those in the months of August through December are 1972 , unless otherwise indicated 2 In Case 5-CA-5942, the complaint issued March 14, on a charge filed January 24 and served January 26 In Case 5-CA-6009, the complaint issued April 27, on a charge filed and served March 12, and amended March 28 3 As amended at the trial to reflect the correct name of the Company. a The critical events in the representation case are January 2-Petition filed February 2-Stipulation for consent election approved March 5-Election held, 27 votes for the Union, and 33 against, with 4 challenged ballots March 12-Objections to election filed and served. May 2-Regional Director's Report on Objections and Order Consolidating Representation Case with unfair labor practice case for hearing on the objections SHULMAN 'S INC. OF NORFOLK 775 FINDINGS OF FACT5 A. Background Respondent, a wholly owned subsidiary of Hart, Schaff- ner & Marx, operates two retail clothing stores in the Norfolk, Virginia area; one located in downtown Norfolk, and a branch store located in what is known as Military Circle Shopping Mall. To operate its business Respondent employs sales people, tailoring employees , display person- nel, porters , and the requisite elericals . On or about December 20, 1972, the Union began a campaign to organize the employees . of the Military Circle store,6 and on December 26, wrote the Company that it represented a majority of the employees in that store, and demanding recognition for said employees . The parties stipulated that this letter reached the Company on December 26. Receiving. no reply, the Union filed a representation petition on January 2, describing the unit as all employees in the Military Circle store , with the usual exclusions. Meanwhile , Union Agent Taylor received word that possibly Company President Curnutt was willing to discuss resolving the recognition question by a card check. The parties met for that purpose at Mayo's home on or about January 11, and at this meeting Taylor again claimed majority status in the Military Circle store and requested a card check . Company President Curnutt refused on the ground that the unit was inappropriate, claiming that the proper unit was both stores in the Norfolk area . In view of Cumutt's position, the Union began an organizational campaign among the employees of the main or downtown store. A hearing on the representation petition filed on January 2, was scheduled for February 1. When the parties met, the Union amended its petition by fixing the unit as all employees in both stores , with the usual exclusions. The parties then executed a Stipulation for Certification Upon Consent Electionj with the election to be held on March 5, and a list of the names and addresses of those employees eligible to vote in the election was made available by the Company and the parties agreed upon it as the eligibility list .8 It is the contention of the General Counsel and the Charging Union that following the filing of the representa- tion petition, Respondent engaged in conduct violative of Section 8(a)(1) of the Act, and which affected the results of the election conducted on March 5. The conduct so relied upon will now be detailed. B. Alleged Interference, Restraint, and Coercion 1. The complaint alleges that on or about January 1, S No issue of commerce or labor organization is presented. The complaint alleges and the answer admits facts which establish these jurisdictional elements . I find those facts to be as pleaded. 6 The evidence leaves no room for doubt that Respondent was aware of this campaign from its inception . Thus, the evidence shows that R. L. Mayo, manager of the Military Circle store but who was then on sick leave, telephoned Union Agent Taylor, before the union campaign began, telling Taylor that the employees were dissatisfied and wished to contact a .union, and suggested that Taylor communicate with employee Karl Askew, but that he (Mayo) could take no part in matters of this nature . Also, it appears that Wanda Whited and Robert Howell , both admitted supervisors , signed union authorization on December 23 and December 29, 1972 , respectively. Company President Curnutt instituted a policy of paid holidays for salesmen in order to dissuade employees from selecting union representation . Witnesses called by the General Counsel testified that they were not told when initially employed by Respondent about fringe benefits such as vacation pay, funeral leave , sick leave, etc., nor did they become aware of the existence of such benefits until after the union cinpaign started .9 Based on this testimony the General Counsel contends that Respondent 's state- ments to assembled employees on several occasions in the critical period, that the employees enjoyed the fringe benefits above mentioned , violated Section 8(a)(1) of the Act, because to the employees this was an announcement of new benefits the employees did not theretofore enjoy. In view of the testimony of Mary Fantone that such benefits were paid well in advance of the advent of the Union, and the fact that employees Askew, Harris, Bums, Miller, and Zimmerman executed an employment check list at the time of their hire , which make reference to such fringe benefits, I find and conclude that the General Counsel 's witnesses, above referred to, were mistaken when they testified that they were unaware of the existence of such employee benefits . Accordingly, I find that, prior to the advent of the Union, Respondent's employees were entitled to and when eligible received , inter alia, the following fringe benefits: a. One week of paid vacation after one year of service, and two weeks after two years or more of service. b. After six months of employment, 15 days of paid sick leave to be used for illness during the year, but not cumulative from one year to the next. c. Paid holidays to all employees (except hourly paid selling employees), after one year of employment. d. Paid funeral leave in the event of a death in the immediate family; duration dependent on the circum- stances of the particular case. 2. The paychecks distributed to hourly paid sales people on January 16 (about four in number), for work during the period January 1- 15,10 contained holiday pay for the preceding New Year's Day. As indicated above, such holiday pay was not theretofore available to hourly paid salespeople. A notice distributed with the paychecks to the employees affected by the change stated that the change was effective January 1. This was the first information employees had that the change was contem- plated. Company President Curnutt testified without contradiction that a decision was made by management in August 1972, to extend holiday pay to hourly paid sales See G .C. Exh. 67 and 69. In the case of Howell, Model who had become acting store manager when Mayo became ill in late October, observed the signing of the card and asked for one that he might sign. r Approved by the Regional Director on February 2. 9 The evidence with respect to the demand for recognition made at this meeting will be discussed hereafter in connection with the alleged refusal to bargain. 9 Askew, Miller, Clark, and Zimmerman . Burris testified that he did not recall being told about employee benefits, but that he may have, been. 19 Respondent pays its employees on the 1st and 16th of each month covering work performed during the proceeding half month. 776 DECISIONS OF NATIONAL LABOR RELATIONS BOARD personnel , and that the change should become effective January 1, 1973. 3. Early in February, Mayo, who had then returned to the store on a part-time basis , - asked employee William Miller if the latter was aware that a union campaign was in progress among the employees . Miller replied that he was, and Mayo then asked what he (Miller) thought about the Union. When Miller replied that he thought the Union was a good idea, Mayo stated that employees Bell and Askew were no longer interested in -the Union. Mayo also told Miller that the latter was a bright young man who probably had a future with, the Company; that the Company was opening some . new stores; and that he and employee Burris should have a chance to prove themselves. Mayo concluded by saying, "you can trust me. Believe in what I'm doing and everything will work out.... Have I ever steered you wrong." 11 4. Also early in February Mayo talked with employee Bums. Mayo opened the. conversation by saying that the Military Circle store was in a "terrible mess," and that he thought the Company should have the opportunity of getting things straightened out without bringing in a union. Mayo then stated that if Burris would let the Company work out its own problems, he (Mayo) would see that Burris got the job of assistant manager of the new store Respondent then contemplated opening. Mayo also told Bums that employees Miller, Askew, and another employ- ee whose name Burris could not recall, were no longer interested in the Union, and asked Bums how he felt about the Union, and what other employees were still for it.12 5. Shortly following the aforementioned conversation with Mayo, Burris was summoned to Curnutt's office where the latter stated that he had received information about the various promises Mayo had made to employees, including the promise that Bums would be the assistant manager of the new store Respondent then contemplated opening. Curnutt told Burris that he (Curnutt) was not at liberty to discuss at that time any promises Mayo may have made to employees.13 6. About 2 weeks prior to the March 5 election, Mayo talked with employee Zimmerman. He opened the conver- sation by telling Zimmerman that he understood she trusted him and would do anything he asked. When 11 Based on the credited testimony of employee William Miller. Mayo admitted that he talked with Miller on the occasion referred to, and that on one occasion he told Miller that if he worked hard he could "go places with Shulman's." He denied ever asking Miller how the latter felt about the Union, but claimed that it was Miller who volunteered that he wanted nothing to do with the Union. Neither Mayo , nor his friend Roberts, who allegedly heard the conversation, impressed me as reliable witnesses, and I do not credit their testimony. It Based on the credited testimony of Bums, as indicated, I do not credit the contrary testimony of Mayo. 13 In this regard I credit the testimony of Curnutt that he uninformally told employees he could make no commitment as to what action would be taken with respect to future employee benefits. 14 Based on the credited testimony of Juanita Zimmerman . Although Mayo admitted that be talked with Zimmerman on the same day that he talked with Burris and Miller, he denied that the Union or her voting in the upcoming election , was mentioned in their conversation . As indicated, I do not credit Mayo in that regard. 15 The breakfast meetings of February 27, and the evening meeting on March 3, were held at the downtown Holiday Inn, known as Holiday Inn Scope . The morning meeting of March 2 was held in the downtown store, and the morning meeting of March 3, in the Military Circle store, before Zimmerman expressed agreement, Mayo asked if he requested that she not vote for the Union, would she do as he asked. Zimmerman then inquired "what about Karl" Askew, at whose solicitation she had signed a union card. Mayo replied, "Karl is happy." Zimmerman then asked if Askew, who as hereafter discussed, was discharged on January 16, would be returning to work. Mayo then said, "you take my word for it. Karl's happy." Zimmerman then asked, "Do you mean Kalil doesn't want a union in?" To this Mayo replied, "Just believe what I tell you. Karl is happy the way things are." Mayo then stated, "If I say that I don't want a union in, would you not vote union?" Zimmerman then told Mayo that she would vote against the Union in the upcoming election.14 7. On February 27, the mornings of March 2 and 3, and again during the evening of March 3, Company President Curnutt and William Mier, President of the Retail . Division of Hart, Schaffner & Marx, held meetings,15 with. employ- ees, at which both Mier and Curnutt spoke. The evidence is uncontradicted that Mier spoke basically about the history of Hart, Schaffner & Marx, and the opportunities in the field of retailing for young men willing to apply them- selves. It is likewise undisputed that Curnutt spoke primarily about the then existing benefits enjoyed by employees, and that following Curnutt's remarks, there was a question and answer period .during which some employ- ees asked, in effect , what improvements in benefits employees might expect the Company to institute, as compared to what the Union represented it would obtain by contract. On consideration of the entire record, I find and conclude that Curnutt answered all such questions by saying, in effect, that he could not discuss the subject at that time.16 8. Following the breakfast the morning of February 27, the employees of both stores were notified that Mier would be available in. his hotel room during the afternoon of March 1 to see any employee who might have anything to discuss with management. Five employees went to Mier's hotel room individually and talked with Mier and/or Curnutt. These were Dwight Hams, Sonny Shore, Douglas Bums, William Miller, and Juanita Zimmerman. Neither Harris nor Shore testified. 17 Burris gave no testimony concerning his conversation with Mier and Curnutt on this opening for business. 16 Based on the credited testimony of Miller , Curnutt, and Mier. Bums, a witness called by the General Counsel, testified that he attended the March 3 meeting with employees at the Military Circle store and that Curnutt answered the aforesaid question by saying that he could not tell anyone how much better benefits would be after the election , Zimmerman, also a General Counsel witness , testified that she attended the same meeting and that Curnutt's reply to the question referred to was that employee benefits would change for the better after the election . Miller, also a witness called by the General Counsel, testified that he attended the same meeting and that Curnutt's reply to the question was that he could not discuss the subject at that time . Upon consideration of the entire record including the fact that the General Counsel 's witnesses disagreed among themselves as to just what Curnutt said I am convinced that Bums and Zimmerman either misunderstood, or had an inaccurate recollection regarding what Curnutt in fact said in this regard . Accordingly , I do not credit the contrary testimony of Burris and Zimmerman. 17 The uncontradicted and credited testimony of Curnutt and Mier is that Harris talked about men 's fashions, Respondent's plans for an expansion program , and his desire for and the opportunities available in a career in retailing. Shore spoke only of his vacation trip when he visited Silverstone s. the Hart , Schaffner & Marx operation in Los Angeles. In SHULMAN'S INC. OF NORFOLK 777 occasion, and neither Mier nor Curnutt mentioned the subject during their testimony . Miller testified that he discussed with Mier and Curnutt his difficulty in getting along with Medas, the- then manager of the men's furnishings department , and Kasov, a furnishing salesman, whom he found it difficult to work with. Also in this conversation Curnutt asked Miller if Maya had made any promises to him , and Miller related the conversation, above set forth, when Mayo told him that he was a bright young man and should have a chance to prove himself. According to Miller, neither the Union nor the upcoming election was mentioned in this conversation. Zimmerman's conversation at Mier 's hotel room was much more extensive than that of the other employees who came there. In giving her testimony Zimmerman appeared at times confused , hesitant, incoherent, and most of the time inaudible, it being necessary to continuously, but unsuccessfully, remind her to speak louder. Because her testimony is substantially in accord with that of Curnutt with respect to the conversation on the occasion referred to, I rely upon his testimony in that regard. Zimmerman related to Cumutt and Mier,18 about what she regarded as promises made to her and other employees by Mayo which had not been honored; about Mayo's out- of-store political.activity; 19 that through Askew, Mayo was responsible for the union campaign to organize Respon- dent's employees, and that he had done so because of a promise made to him by the Union to contribute $2,500 to his political campaign; that she had called Mayo for advice as to whether she should sign a union card, and did so only when Mayo told her it could do no harm; that upon Mayo's return to the job after his illness, Mayo's attitude about the Union changed and that he had just "walked away" from Askew and left him "holding the bag" so far as the union movement which Mayo had started and promoted was concerned, and that he did this because the Union had withdrawn its promised financial contribution; that she was certain Curnutt and Mier were not aware of these things , and she wanted them to know it; m that Zimmerman was told that the alleged promises to her and other employees, of which she spoke, were just coming to their attention ; that the matter would be investigated and after the facts were obtained the matter would be discussed with the employees; that none of them were told that such promises would be kept; and that no action in that regard was taken prior to the election. 9. As above indicated, Respondent gave a dinner for its employees on Saturday evening, March 3, at Holiday Inn Scope, a downtown location most convenient to all its employees . About 9 a.m., Saturday, Company Comptroller Wilson went to the Holiday Inn to make final arrange- ments for the dinner, and at the same time he made arrangements for a cocktail party for the employees in Suite 1200 of the Holiday Inn, beginning at 2 p.m., Sunday, March 4, that being the day before the scheduled election. Unknown to Wilson or Curnutt at the time was the fact that on Thursday, March 1, the Union circulated a notice neither the meeting with Harris nor Shore was the Union , or the upcoming election , mentioned. Is Zimmerman had called Curnutt at his home the preceding evening and told him much of the same . When she came to the hotel the next day, Curnutt asked her to repeat it for Mier's benefit. stating that it would hold a meeting in a designated. room on the mezzanine floor of Holiday Inn Scope on Sunday, March 4, at 3 p.m., to discuss the upcoming election, and proposals for inclusion in a contract with the Company. The evidence is uncontradicted that this notice first came to the attention of responsible officials of the Company sometime during the afternoon of March 3. At the dinner in the evening of-March 3, Respondent announced the cocktail party on the following day, that all employees were welcome and were urged to attend and participate, giving assurance that the Union would not be discussed. Mier and Curnutt arrived at the Holiday Inn on March 4, just before 2 p.m. After Curnutt made a teleph6ne call to his wife who was to attend the party, he and Mier waited in the lobby, and at a table in the coffee shop which was visible to anyone passing the door. Between the coffee shop and the lobby of the motel , Mier and Curnutt spent about an hour . In this period several employees observed Mier and Cumutt, but no conversation passed between them, other than the usual "hello." A union representative did approach Curnutt telling him that he' had no right to be there and that he should leave. Curnutt replied that it was a public place and he had every right to be there. After Mrs. Curnutt arrived, Curnutt and Mier retired to their suite, where they remained for the duration of the cocktail party. 10. Apparently . on the day of the election, and admittedly in the critical period, Respondent distributed among the employees, an undated notice signed by Mier and Curnutt, reading: Employees of Shulman's: We are anxious to work more closely with you on a person=to-person basis . We recognize the problems that exist within our organization , we are making every effort to correct them, and with your help we will! We sincerely solicit your vote, and we ask that you cast a "no" ballot today. 11. Following the election on March 5, which as indicated the Union lost by a vote of 27 to 33, with 4 challenged ballots, Respondent admittedly made certain changes in the wages, hours, and working conditions of the unit employees which, the General Counsel.contends not only violated Section 8(axl) of the Act, but constituted ground for setting aside the election. These are: (a) By memorandum , dated and distributed to all employees on March 6, employees. were advised of a change in vacation benefits, to be effective immediately. The notice stated that instead of I week's vacation after I year of service, and 2 weeks thereafter, employees would thereafter receive 2 weeks vacation after 1 year of service, 3 weeks after 5 years of service, and 4 weeks after 15 years of service. (b) By memorandum dated and distributed to all employees on March 7, employees were notified that the is The evidence shows that Mayo was preparing to be a candidate for the officer of treasurer of Norfolk, the election for which , both primary and general , would be held during 1973. 20 The statements made by Zimmerman in this regard are, of course, hearsay and incompetent to establish the truth of her statements. 778 DECISIONS OF NATIONAL LABOR RELATIONS BOARD allowance for supper money was increased from $1 to $1.50, effective immediately.21 (c) Additionally, by a schedule dated March 9, selling employees who theretofore worked either on an hourly rate or on a drawing account against a commission which had been 6 percent in clothing and 7 percent in furnishings, were required to elect whether they wished to work on a $2 hourly rate plus a commission of 2 percent on sales, or a drawing account against commissions which were in- creased from 6 to 6-1/2 percent in clothing and from 7 to 7-1/2 percent on furnishings,22 effective April 1. Curnutt testified without contradiction, that the afore- mentioned changes in working conditions were not discussed with any employee prior to the election; that the decision to make these changes was reached in August 1972, to become effective February 1, 1973, when annual wage and fringe adjustments were customarily made; that he was prevented from making the adjustments at that time by the pendency of the representation petition and the Union's campaign, but that as soon as he felt relieved of that restraint by the defeat of the Union in the election on March 5, the changes were put into effect. Why Respon- dent did not feel the same restraint with respect to the change made effective on January 1, 1973, when the hourly paid selling employees were granted holiday pay, Curnutt did not explain. (d) Also immediately following the election, Respondent changed the work schedule of the tailoring employees in the downtown store from a 40-hour week to be worked in 5-1/2 days, to a 40-hour week to be worked in 5 days. This change affected about 10 employees, all in the downtown store, but did not cause any change in their compensation. According to Curnutt, this change was made simply because some of the employees involved requested it. C. The Discharge of Karl Askew Askew began working for Respondent at its Military Circle store in October 1971, having been hired by Mayo, and from that date until January 16, worked in the clothing department on commission against a drawing account 23 Respondent makes no contention that Askew's work was other than satisfactory. The evidence leaves no room for doubt that Askew was the spearhead of the organizational campaign; he was the first employee to talk with Union Agent Taylor, assisted the latter in setting up and conducting meetings with the employees, distributed union literature, openly discussed the Union in the store with other employees and with supervisors, and personally solicited and obtained signatures on the 29 of the 49 employee authorization cards in evidence (excluding his own and the three signed by supervisors). 21 The qualification for supper money did not change , to qualify the employee had to report before lunch and work through the dinner period 22 Whether it would be to the advantage of an employee to operate under one plan or the other, would depend on the volume of sales enjoyed by the particular employee Curnutt admittedly explained this to the employees about March 12 or 13, although he conceded that he may have shown the schedule to some employees as early as a day or two before the schedule was distributed to employees on March 9 23 Askew was paid a weekly draw of $ 100 His commission on sales was 6 percent, offset against his draw . Employees are paid on the 1st and 16th of There is virtually no material dispute concerning the circumstances culminating in Askew's discharge on Janu- ary 16, and my findings in that regard are based in the main on Askew's testimony. That morning Askew placed a telephone call to Hart, Schaffner & Marx's president, Gore, but was finally connected with Dorf, an assistant to Mier, president of the retail division of that Company. After identifying himself, Askew admittedly told Dorf that it was imperative that the Company immediately send someone to Norfolk to straighten out Shulman's opera- tions, because it had many problems, particularly two. The first problem Askew mentioned was the bad employee relations, but added that this was being taken care of by the employees themselves, because they were organizing a union. The second problem Askew referred to was the gross incompetence and mismanagement of the stores by Curnutt and the other high echelons of local management. Askew referred specifically to bad merchandising and buying policies; overbuying of some items and under buying of others; bad display of merchandise; bad advertising practices, saying that advertisements were run or displays made to create demand for an item, but when customers came and asked for the item there was little or none available to sell; that the store did not have sufficient stockclerks, making it necessary for the salesmen to work stock, thus removing them from the salesfloor; that some employees paid on a commission basis were required to work overtime, but because the overtime pay for this work was deducted from commission, they were in effect not paid for their overtime work; that because of low-employee morale, even if they got a union contract the store could not survive; that the store was being operated like a cheap restaurant, and that while he was once proud to say that he worked for Shulman's, he was now ashamed to admit that fact. Askew concluded his telephone conversation with Dorf, which lasted about 25 minutes,24 by telling the latter that while Curnutt was a fine man so far as "character, morality and personality" was concerned, as chief manag- ing officer of the Company, he was "ignorant, stupid, inexperienced, dumb [and] didn't know how the store out at Military Circle operated," and that either he [Askew] or Curnutt, would have to go. Dorf, finally told Askew that he was unaware of the matters he spoke of, but that he would look into them and if need be, some action would be taken. Askew replied, that this was imperative. Immediately following the call from Askew, Dorf telephoned Cumutt and told the latter the substance of the charges Askew had made. According to the uncontradicted and credited testimony of Dorf, he gave Curnutt no instructions other than that he should make certain that employees were in fact paid for all hours worked at proper rate, because failure to do so would be a violation of the Fair Labor Standards Act 25 During the early afternoon of each month . If commissions exceed the draw , during that period , the excess is then paid. At the end of the month, if the draw exceed the commissions, such excess is forgiven , and the account starts anew the following month. 21 My observation of Askew while testifying convinces me that Dorf was not exaggerating when he said that it was most difficult for him to terminate the conversation without being rude 2' , According to Dorf, the practice of requiring commission salesmen to work stock at overtime rates and deducting such earnings from commissions is standard in the industry. There is no contradictory testimony. SHULMAN'S INC. OF NORFOLK January 16, Curnutt and Company Comptroller Wilson went to the Military Circle store, where they asked Askew to accompany them to a lunch counter for coffee. After passing some pleasantries , Curnutt told Askew that the latter had called the Company's Chicago office that morning without going through established channels, and asked that Askew give him a reason why he should not be fired on the spot. Askew admitted that he had called Chicago, and asked if Curnutt wanted to know why he had done so. Receiving an affirmative reply, Askew admittedly repeated substantially what he had told Dorf earlier that day, and concluded by saying that he could not continue to work for Shulman's unless the Company changed back to the level of integrity it theretofore enjoyed; that either the Company would have to change or he would have to seek other employment. At this point Curnutt asked, "what is keeping you," to which Askew replied, "I prefer to change the company." Curnutt then stated that he would accept Askew's resignation , but the latter refused, saying that he was not ashamed of what he had done, and that while he was ;not criticizing Curnutt, that as the chief executive officer of the Company, he was very poor. At this point Curnutt told Askew that it was then 4:55, and as of 5 p.m., he was fired, and that he should pick up his check with 2 weeks' vacation pay, and leave the premises. Askew did so.26 Askew testified that, prior to calling Chicago the morning of January 16, he had not discussed any of the matters 'he mentioned to Dorf with any employee of Shulman's. In fact, according to Askew, the idea of calling Chicago first occurred to him that morning while he was shaving ; he made the call before going to work ; and his purpose in doing so was to, put Curnutt on the "hot seat" in the eyes of the highest levels of management, and to thereby benefit the Company, by convincing them of the incompetence of local management. Askew admitted that his call to Chicago had nothing to do with the Union, and that his sole purpose in making that call was . to convince the upper management of Hart, Schaffner & Marx that local management was incompetent ! Askew also admitted that in his discussion with Curnutt on January 16, the Union was not mentioned by either of them, and that he understood that the reason for his discharge on that day, was his failure to go through prescribed channels.27 se In this conversation Curnutt accused Askew of, telling Dorf that he (Curnutt) was a stupid S.O.B. or dumb bastard . Askew denied making such a statement. I find it unnecessary to resolve that conflict. sr The evidence shows Askew telephoned Dorf again on January 17, telling the latter that Curnutt had fired him for calling Chicago without going through proper channels . According to Askew, Dorf then stated that Askew 's discharge was not because he failed to go through channels, but because of his union activity. Dorf denied that he made any statement of that nature, and I credit his denial . Although I am convinced that Askew was honestly trying to give the facts as he understood them, I am equally convinced that he was so imbued with the justice of his cause that he experienced difficulty in distinguishing fact from fiction. u Based on the credited testimony of Union Agents Taylor and Dininger. Curnutt admitted that at least Taylor came to his office in late January or early February and stated that he represented a majority at both stores, but that Taylor only asked for a card check, not for recognition. Curnutt admits that he told Taylor that as a hearing had been set for D. Alleged 8(a)(5) Violation 779 1. Demand of recognition As heretofore indicated, the Union made its initial recognition demand on Respondent by its letter of December 26. The General Counsel, however, does not rely on this demand as the predicate for the alleged 8(aX5) violation, because the unit for which ' the Union then demanded recognitif was concededly inappropriate. Rather, the General Counsel relies upon two oral conversa- tions which union agents subsequently had with represent atives of Respondent. On or about January 29, Union Agents Taylor and Dininger called on Company President Curnutt at the latter's office. Taylor reminded Curnutt of their prior meeting at Mayo's home, when Curnutt stated that he regarded both stores as the only appropriate unit ; that the Union now had a majority in both stores; and demanded recognition based on a card check. Curnutt declines the request, saying that he had been advised by his attorney not to do so, and if Taylor had anything further to discuss, he could see company eounsel.28 On February 1, the parties met pursuant to the Board's notice of hearing in the representation case . Present, in addition to representatives of the Board, were Curnutt, Wilson and Attorney Fennell for the Company, Union Agent Taylor, and Askew, who had by that date been discharged, for the Union. At the outset the Union amended its petition by providing that the unit would consist of both stores. A consent election agreement was executed and the parties then agreed on the list of those eligible to vote in the upcoming election, and at this point Taylor put a question to the Company representatives generally, that they grant recognition based on a card check. According to Taylor and Askew, Company Attor- ney Fennell replied, "ok"; that he (Taylor) was so astonished by the response that he put the question again, and this time Fennell replied that he preferred to go to an election, and would not agree to recognize the Union. Although Respondent denied that such a conversation occurred,29 I find it unnecessary to resolve the conflict 30 2. The Union's majority status By its answer in Case 5-CA--6009, Respondent admitted that the multistore unit pleaded in that complaint is appropriate. At the trial the parties stipulated the correct- February 1, anything further should be taken up with company counsel. To the extent of the conflict, I credit Taylor and Dininger. ze Curnutt merely testified that at this meeting he did not decline recognition or a card check ; that Fennell was the spokesman and perhaps he did.' Wilson, though called as a witness by Respondent, was not examined on this subject . Fennell, of course, did not testify. 30 As hereafter set forth, I recommend a bargaining order in the instant case under the standards of N.LR•B. v. Gisset Packing Company. Inc., 395 U.S. 575, 610, 614-615 ( 1969). because of the substantial employer unfair labor practices which preclude the holding of a fair rerun election . In such cases, if a majority in an appropriate unit is once shown , bargaining is ordered to prevent the employer from reaping the benefits of his own misconduct, and is granted even though a technical violation of Section 8(aX5) of the Act has not been established; i.e., a complete lack of any demand for recognition or bargaining . See Adams Book Company, Inc., 203 NLRB No. 120, fn. 38 , and the cases there cited. 790 DECISIONS OF NATIONAL LABOR RELATIONS BOARD ness of the eligibility list which . shows a total of 69 employees in the unit on January. 29. The General Counsel introduced a total of 53 cards, 3 of which must be excluded because they were . ,executed by admitted supervisors, and were offered solely for the purpose of establishing company knowledge 31 Thus the General Counsel's claim of. majority rests on.50 cards. Of these 6 cards must be excluded32 because they were signed after January 29. In addition, I exclude the,card of Karl Askew because, as hereafter found, his discharge on January W. was not violative of either Section 8(axl) or (3) of the Act, and therefore he was not in employee status on the demand date. This reduces the number of viable cards to 43. Aside from its general attack that most , if not all, of the cards were coerced as a matter of law, the factual predicate for which . is hereafter more fully discussed, Respondent specifically challenges the validity of only those cards signed by. Matilda F . Smith, Florence Crossling, Frances Williams, Pauline W. Hunter, Vassiliki Kaltsouni, Alice J. Perros, Nitsa Arghyris, and Lumsden Bennett . It argues that these cards are invalid authorizations to the Union because they were obtained on the representation that they would bee used only - for the purpose of- obtaining an election . The testimony with respect to these cards shows the following: (a) Florence Crossling testified that she signed the card (G.C. Exh. 19), on the date it bears; that she obtained the card from Union Agent Taylor; that she read the card before signing and returning it to Taylor . According to Crossling, Taylor told her that the card was to get enough to have a discussion among the employees , and he made some reference to voting, but that an election was not- mentioned . The card signed by Crossling is unambiguous on its face, as indeed are all the cards received in evidence.33 (b) Frances Williams testified that she was given the card she signed (G.C. Exh. 20), by her sister , who told her to read it carefully before she signed it; there was no discussion about the purpose of the card ; she read the card and signed it on the date it bears; and she did so thinking she would see what the Union had to offer. (c) Matilda F . Smith testified that the card she signed (G.C. Exh . 18), was given to her by fellow employee Hoffenberger who stated that signing the card would be to her benefit, and later the employees would meet to decide whether they wanted the Union in the store ; Hoffenberger did not explain the purpose of the card, nor was there any discussion about an election ; she then read and signed the card on the date it bears , but did not understand what it meant. (d) Pauline W. Hunter testified that Askew gave her the card she signed (G.C. Exh. 21); Askew explained to her the benefits of the Union and "probably" said something about the card , but that she was listening with only "half 31 These are the cards of Wanda M . Whited, Robert E. Howell Jr., and William Medas whose cards are dated December 22, but who became supervisors on January 1. sa The card of Matilda Smith was signed January 31; Patricia Domine signed February 15 ; Clifton Cabarros on February 19; Mary F. Neeves on February 20; Venessa Edwards on February 22 ; and Anna R . Johnson on February 23. an hear" and did not recall what he said , and without reading the card she signed it on the date it bears. (e) Lumsden Bennett testified that the card she signed (G.C, Rxh. 27) was given :her by fellow employee Arghyris who stated that Askew and another man from the Union came to her home and gave her cards to distribute to get an estimate if the number interested in the Union was sufficient to warrant ail election ; she also talked to Askew who stated that signing the card would impose no obligation on her ; she read the card before signing it on the date it bears; and she understood that by signing the card she was authorizing the Union to represent her. (f) Alice Perros testified that she was given the card she signed (G.C. Exh. 25) by fellow employee Arghyris, who made no statement to her concerning the purpose of the card, nor did she discuss it with anyone else before -signing it on the date it bears ; although of Greek extraction, she does read English , and read the card before she signed it and understood that it called for a meeting to be held where the employees could vote whether they wanted a union or not . As heretofore noted , the card says nothing about a meeting or a vote. (g) Vassiliki Kaltsouni testified that she signed the card (G.C. Exh: 24), on the date it bears, after it was given to her by fellow employee Arghyris, who told her the card was for a union , but she said nothing else ; she was unable to read English , but, from a conversation with fellow employee Perros, she understood that the employees would be called to a meeting to find out if they wanted the Union. (h) Nitsa Arghyris testified that she signed the card (G.C. Exh. 26), and thought she did so on the date it bears; the card was given her by a union agent who, along with Askew, called at her home; she reads English to 'some extent, and tried to read the card , but did not understand it; the union agent explained the card to her, but she did not understand that too well ; that her understanding of it was that the card would be used to get an election . Askew, whose testimony in this regard I credit over that ' of Arghyris, to the extent that there is a conflict , testified that when he and the union agent called at her home, he explained to her, in the presence of her husband, that the card would be used to obtain recognition through a card check, but if this was denied . by the employer, it would be used to obtain a secret ballot election ; that in his presence Arghyris read the card, filled it in , signed it, and then returned the card to him. In N.LR.B. v. Gissel Packing Co., 395 U.S. 575, 606-609, the Supreme Court approved the Board's Cumberland Shoe Corp., 144 NLRB 1268, 1269, rule, which it reaffirmed in Levi Strauss & Co., 172 NLRB 732, 732-733, that an unambiguous authorization card signed by an employee should be counted in determining . the Union's majority, even though an election was discussed, unless it appears that the employee was told that the card would be used solely to get an election, and for no other purpose. 33 The printed portion of all cards read as follows: 1, the undersigned employee of [Firm name and address I employed as [job tide, home address and. telephone number] hereby authorize Retail Clerks International Association , AFL-CIO, or its chartered Local Union to represent me, for the purpose of collective bargaining, respecting rates of wages, hours of employment orother conditions of employment in accordance with applicable law. SHULMAN'S INC. OF NORFOLK Applying Cumberland Shoe and Levi Straws rule, I must and do find and, conclude that each of the eight cards discussed above constitute valid designations of the Union as majority representative.. In the case of Crossling, Williams, Smith, and Hunter, the credited evidence shows that the subject of an election was not even mentioned, nor is there any evidence of any kind of misrepresentation to them . On the basis of the credited evidence no misrepre- sentation of -any kind was made to Arghyris . Although Bennet, Perros , and Kaltsouni referred to an election, or to a meeting where employees could decide if they wanted the Union, there is no evidence to establish that they signed cards because of a representation that the sole purpose of the card was to obtain an election. Accordingly, having found all .eight of the cards above discussed to be valid designations of the Union, I find and conclude that on January 29, when the Union made demand on Respondent for recognition, it had valid designations signed by 43 employees in an appropriate unit consisting of 69 employees, aclear majority.34 Respondent's general contention that all the cards relied upon to establish the Union's majority were "tainted,".and in legal contemplation "coerced" because of the conduct of supervisors Mayo, Whited; Medas, and Howell, is predi- cated upon the totality of the following: 3. Alleged coercion of cards 1. That it was Mayo who telephoned Union Agent Taylor to inform the latter that the employees at Military Circle store wished to organize , and that Taylor then communicate with Askew and some other employees, for that purpose . There is no evidence, however, that any employee other than Askew knew of Mayo's call to Taylor. 2. That in managing the Military Circle store, Mayo had instilled into the employees the idea that Curnutt as president of the Company, had no control over them, could not hire or fire them, or improve or diminish their wages, hours, or working conditions ; that only Mayo had.the authority. In this connection , Respondent points to the fact that employee Juanita Zimmerman refused to sign a union card until she first discussed it with Mayo, and did so only after he explained to her that she had no job security, and that while signing a card might not do any good , it would certainly do no harm. 3. During Mayo's period of convalescence, particularly in December 1972 and January 1973 , he kept his hold on the employees by telephoning Zimmerman and Askew at the store, having them telephone him, as well as by their personal visits to his home; in many of these conversations, the Union and its progress in the store was discussed. There is no evidence , however, that other employees participated in such discussion or that they were aware of such discussion by Zimmerman and Askew. 4. For sometime Mayo has aspired to run for treasurer of the city of Norfolk in the election to be held in 1973. Respondent argues that Mayo and the Union entered into a, conspiracy that in return for the Union 's obtaining nominating petitions for Mayo, a public endorsement of , 34 Even were Ito find that the cards of Bennett , Perros, and Kaltsouni were, because of their references to an election , invalid designations of the Union, that result would be academic . The only effect would be to reduce 781 his candidacy, and a campaign contribution of $2,500, Mayo would see that a 'majotity of, the eniplo}Iees signed cards, •1 .find no evidence to support this contention. Although Mayo denied that `he; asked the Union for a money contribution , I credit Askewv's testimony that Mayo asked him to make a request of the Union for petitions, a public endorsement , and a contribution of $2,500; that Askew conveyed skis request to- ,the Union, but the Union declined to comply therewith ; I further find a complete lack of evidence to show that except for Zimmerman and possibly Askew, Mayo discussed) signing a card with any employee, nor is there any . evidence that any other employee was aware that Mayo had arty interest in that regard. Respondent additionally argues that its conclusion that Mayo• influenced and coerced the employees into signing cards is supported by' the inference it draws that when Union Agent Taylor found himself unable to deliver on his part of the bargain with Mayo, to retaliate against the Union Mayo began urging employees not to continue their support of the Union, and not to vote for it in the upcoming election . I find such, inference inappropriate because of the complete absence of evidence that except for Zimmerman , Burris, and , Miller, Mayo urged any employee to cease his support of the Union, or to vote against the Union, nor is there any evidence that other employees were aware of Mayo's conversations with Zimmerman, Burris, or Miller.' 5. That " Wanda Whitted, manager of the women's department at the Militat 'y Circle store, and an admitted supervisor, signed a union card on December 23, 1972. Respondent states in its brief (p. 9) that, "In the next few weeks, all six employees under her (Whitted's) supervision in the Women's Department signed union authorization cards." On the basis of this assertion Respondent argues that Whitted must have coerced the employees under her supervision into signing cards . Not only do I find the inference Respondent draws to be inappropriate under the circumstances , but I find unsupporte&by the evidence the premise upon which it is based . Although an eligibility list was stipulated into evidence, and some cards indicate that the signer worked in the ladies department, there is nothing on the eligibility list, nor is there any other evidence to show the number of employees working in the ladies' department. Moreover , there is not one word of evidence that Whitted ever spoke to any employee about signing or not signing a union card, or that she attended any meeting of employees where that subject was discussed. 6. Respondent makes the same argument with respect to William Medas, manager of the men 's furnishings and sportswear department. Urging the same inference it draws in the case of Whitted, Respondent states in its brief (p. 10), "William Medas signed a union authorization card on December 22, 1972, and, thereafter 11 of the employees of the Furnishing and Sportswear Department , under his supervision, comprising nearly all of his staff , signed union authorization cards." Again there is no evidence from which it may be determined how many employees worked under Medal, who did not become a supervisor until the number of valid cards the Union held from 43 to 40; still a clear majority. 782 DECISIONS OF NATIONAL LABOR RELATIONS BOARD January 1. Moreover, if any employee working under the supervision of Medas signed a card after January 1, there is no evidence to show that such employee was aware that Medas had signed a union card, or that Medas took any part, directly or indirectly, in causing employees to sign cards. 7. The same argument is also made in the case of Robert Howell, a supervisor in the men's clothing department. Respondent's brief states, "On December 29, Robert Howell, signed a union authorization card. Mr. Askew, one of the salesmen in the Clothing Department under Howell's supervision, had signed a union authoriza- tion card on December 23, and Messrs. Grolman and Harris signed authorization cards soon thereafter."35 In this case also, there is a complete absence of evidence that Howell ever discussed the Union, or the signing of a union card, with any, employee other than Askew, or that any employee other than Askew was aware that Howell had signed a card. The foregoing evidence, I find and conclude, is insuffi- cient to establish that any of the 43 cards relied upon to establish the Union's majority, was employer coerced. As the Court of Appeals for the Fifth Circuit said in WRKG- TV, Inc., 470 F.2d 1302, 1313 (1973): Before the Board invalidates a card because of pro- Union supervisory solicitation, there must be some showing that the signing employee was subject to a reasonable apprehension that his failure to sign could have adverse consequences. s s s s • There must be a more substantial exhibition of pressure than a passing remark or a statement of pro- Union conviction. So long as nothing in the words, deeds or atmosphere of the alleged " solicitation" contains the seed of potential reprisal , punishment, or intimidation, the involvement of the supervisors does not rise to the level of supervisory "solicitation" Contentions and Conclusions Upon the credited evidence heretofore detailed, I find and conclude that Respondent violated the Act as alleged in the complaint, in the following particulars: The 8(axl) Violations 1. The grant of holiday pay to the hourly paid salespeople for holidays on and after New Year's Day 1973. If is true Curnutt testified (and there is no contradictory evidence) that the decision to grant this benefit was made the proceding August, before the advent of the Union,. but he also testified that the benefit was not sb The record shows thai Grolman signed on January 23; Harris on December 20. ss Respondent argues (Br. 17-18) that as Mayo initially used the Union's campaign to further his own political ambitions, and turned against the Union when the latter, in his view, breached its promise of political and financial support (assumptions which I find unsupported by the record), Mayo entrapped the Company into a status of having acted illegally, and that for the purpose of imposing liability on Respondent, Mayo should not be deemed to have been Respondent's agent when he engaged in the to be made effective until February 1. Curnutt's decision to accelerate the effective date of this benefit , when contrast- ed with his decision to defer the effectiveness of other benefits also allegedly to become effective on February 1, until after the March 5 election, demonstrates, I find and conclude, that Curnutt granted the holiday pay to hourly paid sales personnel, in an effort to deter them from supporting the Union 's campaign which Curnutt knew was in progress . In that sense it constituted the interference proscribed by Section 8(ax ])of the Act. 2. Mayo's interrogation of employees Miller and Burris as to what they thought of the Union, as well as his statements to Miller and Burris that certain employees were no longer interested in the Union, made for the obvious purpose of trying to convince them to cease supporting the Union. This constituted interference with the Section 7 rights of those employees. 3. Mayo's, statement to Burris that if the latter would permit the Company to work out its problems without a union, he (Mayo) would see that Bums got the job of assistant manager of the new store Respondent then contemplated opening. This was a clear promise of benefit to deter Burris from continuing his support of the Union. 4. Mayo's statement to Miller that the latter was a bright young man who had a future with the Company and that he should have a chance to prove himself was under all the circumstances an implied promise of benefit to induce Miller to withdraw his support from the Union. 5. Mayo's statement to Zimmerman that Askew was happy with the way things were. Under the circumstances here , this was a clear representation that Askew had withdrawn his support of the Union, and an appeal to Zimmerman to do likewise . In this posture Mayo's request that Zimmerman refrain from voting for the Union in the then upcoming election, constituted interference with Zimmerman's Section 7 rights.36 6. The undated notice distributed to unit employees urging them to vote against the Union. Although an employer may lawfully appeal to his employees not to vote for a union in a scheduled election, he must refrain from doing so in a manner which contains threat of reprisal or promise of benefit. The notice here involved tells the employees that Respondent wishes to deal with them "on a person-to-person basis," that it recognizes that "problems" do exist, and that "we are making every effort to correct them," and that with the help of the employees "we will." This was plainly a statement that the employees could reasonably construe as a promise that Respondent would correct the "problems" if the employees would but cast a majority of "no" votes in the upcoming election. As the test is a subjective one, it is sufficient if the notice could reasonably be so construed by the employees, and it is immaterial and unnecessary to consider whether Respon- conduct herein found unlawful . This argument. however, looses sight of the proposition that the Act is not concerned with private rights , nor with technical concepts relating to an employer 's legal responsibility to third parties for the acts of its servants , but with a policy to free the collective bargaining process of all vestage of employer compulsion and influence. Where the employees have just cause to regard a speaker as a spokesman for management, the Board may appropriately require the employer to remedy the unlawful conduct of such speaker . International Association ofMachin- ista Tool and Die Makers Lodge No. 35 v. N.LR.B., 311 U.S. 72 , 86-87. SHULMAN 'S INC. OF NORFOLK 783 dent - intended to make such a promise , or whether the employees in fact so construed it. 7. By the increase in vacation benefits, supper allow- ance, commissions, and improvements in the work sched- ule of the tailor shop employees, all granted by Respondent between March 6 and 9 . As stated by Mr. Justice Harlan, speaking for the Supreme Court in N.LRB. v. Exchange Parts Company, 375 U.S., 405, 409{1964): We have no doubt that [Section 8(aXl) of the Act] prohibits not only intrusive threats and promises but also conduct immediately favorable to employees which is undertaken with the express purpose of infringing upon their freedom of choice for or against unionization and is reasonably calculated to have that effect. . . The danger inherent in well timed increases in benefits is the suggestion of a fist inside the velvet glove. Employees are not likely to miss the inference that the source of benefits now conferred is also the source from which future benefits must flow and which may dry up if it is not obligated. The situation here is no different. It was in effect a reward to the . employees for having rejected the Union . It is true that the election had been held when these improvements were granted, but the 'election procedure had not been completed . As the Board said in Ralph Printing & Lithographing Co., 158 NLRB , 1353, 1354, fn. 3: . An election under Board auspices to deter- mine a majority bargaining representative does not consist solely of the physical balloting of the employees in the appropriate. unit. Necessarily , the vote of the employees and the validity of the election itself must await the Board 's post election investigation of objec- tions properly filed with respect to the conduct of the election . . . . In the instant case the Petitioner filed its objections on January 12, 1965, in compliance with the Board 's Rules and Regulations . At the time , therefore, when the Employer announced that benefits would be distributed to the employees , the election of January 6 was clearly subject to invalidation if the objections were meritorious. We must therefore view the precipi- tous haste of the Employer 's promise of improvements to its employees immediately after a bare majority had cast physical ballots against the Union as an attempt to gain their support and to assure a continued majority against the union representation in the event a second 37 The remaining independent 8(a)(I) allegations of the complaint I shall recommend be dismissed . I have found that at the employee meetings on February 27 and March 2 and 3, Curnutt did not announce new benefits or promise such after the election ; that in the interviews with some employees in Micr's hotel room on March 1 , Respondent did not solicit grievances or interrogate employees concerning their. support of the Union ; and hence did not violate Section 8(a)(I) of the Act in that regard . I am likewise convinced and therefore find that the conduct of Mier and Curnutt at the Holiday Inn Scope on March 4 constituted neither surveillance nor the impression of surveillance . All the evidence shows here is that Respondent scheduled a cocktail party at the Holiday Inn the same afternoon as the Union was holding its "fish fowl" type meeting at that location , and without evidence that Respondent's presence was not., for a legitimate purpose, or that it was for the purpose of observing the union meeting, does not establish such a violation . As the Board said in Atlanta Gas Light Company, 162 NLRB 436, 438, the mere presence of management officials at a public place where the union happens to be meeting- election was directed by the Board . . . . By such conduct, we find, the employer violated Section 8(aXl) of the Act and also thereby interfered: with the Board's election pro edure and made a far election impossible. [Emphasis added.] Accordingly, I find and conclude that in the particulars heretofore stated Respondent violated Section 8(aXl) of the Act 37 The Alleged 8(aX3) and (1) Violations Upon consideration of the entire record , I am convinced and therefore find and conclude that in discharging Askew on January 16, Respondent did not violate Section 8(a)(3) or (1) of the Act. Treating first with the 8(aX3) allegations, an essential element of the General Counsel's case was to establish by a preponderance of the evidence that Respondent terminated Askew to encourage or discourage membership in a labor organization.38 As I have found, based on Curnutt's credited evidence, that his sole reason for discharging Askew on January 16 was that the latter had gone over his head and communicated with the Chicago office directly, I find no evidence to indicate that Curnutt acted for any purpose proscribed by Section 8(a)(3). Hence, this aspect of the complaint must fail for lack of essential proof. The General Counsel 's contention that Askew's dis- charge violated Section 8(a)(l) of the Act because his call to the Chicago office was an exercise of his Section 7 rights to engage in "concerted activities for the purpose of collective bargaining or other mutual aid or protec- tion...," and for the exercise of which he may not lawfully be discharged, I likewise find unsupported by the evidence because , as I have found, in making his call to Chicago, Askew was not engaging in protected concerted activity within the meaning of the Act. Although when talking with Dorf, Askew did mention that the employees had-been required to work the Sunday before Christmas Day, when the store was not open for business, and for which were supposed to be paid at time and one-half, but which in his case resulted in no compensation because his commissions exceeded his draw and the compensation for the Sundaywork ,39 the fair burden of his testimony is that this was simply a passing remark made in the course of a half-hoer conversation , during which Askew did virtually all the talking. That his purpose in making that call was not to coesplaass about wages, hours, and terms and conditions . without more specific evidence that it was not for a legitimate purpose, or that it was for the purpose of observing the meeting, establishes neither surveillance of the meeting ... nor a reasonable basis for an impression of surveillance in the minds of employees attending the meeting. To the same effect see Universal Packaging Corporation, 149 NLRB 262, 263. Moreover, even if I am in error in my conclusion that the conduct here referred to was not a violation , the ultimate effect of the order to be entered herein would be no different from the order I shall recommend, not will the conclusions with respect to the validity of the election be in any way affected. 38 Although such intent may. in an appropriate situation, be inferred from the circumstances surrounding the discrimination (see Radio Officers' Union of the Commercial Telegraphers Union , AFL 347 U.S. 17,41-46), the facts here do not warrant such an inference. ss Dorf testified that this arrangement was customary in retail clothing industry . There is no contradictory testimony. 784 DECISIONS OF NATIONAL LABOR RELATIONS BOARD of employment, is made evident by Askew's testimony that he told Dorf that employee-management problems were being taken care-of by the formation of a union, and that the real problem was the incompetency of management in operating the store. Askew's real and only purpose in making the call was, as Askew testified, to put Curnutt on the "hot. seat" in the eyes of upper management 40 Additionally, when Askew and Curnutt talked later that day, he made no complaint to the latter about wages, hours, and terms and conditions of employment, discussing only Curnutt's alleged incompetence as manager of the stores. Moreover, there is no evidence that before calling Chicago, Askew discussed with any other employee his plan to call the Chicago office, or what complaints they, or any of them, might have regarding their wages, hours, or working conditions. Because Askew's complaint to Chicago management was not concerning wages, hours, and terms and conditions of employment, but related only to matters in the realm of management prerogatives, engaged in by Askew admitted- Jy solely to cause trouble for Curnutt, a result. he regarded not as ,in the interests of the employees, but as in the best interests of the Company, I find and conclude that his conduct was neither concerted nor protected, within. the meaning of Section 8(axl.) of the Act, and hence that his discharge under the circumstances Of this case, was not violative of his Section 7 rights. Cf. Jefferson Standard Broadcasting Company, 94 NLRB 1507, 1511-12.41 Dis- missal of, the allegations of the complaint in that regard will, therefore, be recommended. The 8(aXS) Allegations I have found, as above set forth, that the Union was the duly designated majority representative of Respondent's employees in an admittedly appropriate unit, when on January 29 it made demand for and Respondent refused recognition.. But it does not necessarily follow from such findings that Respondent's refusal to -recognize and bargain with the Union violated Section 8(aX5) of the Act. For an employer enjoys the qualified right to refuse a union's. demand for recognition and bargaining until such time as the latter establishes its majority status in some manner other than its bald assertion to that effect. Such right, however, is not absolute, and will be regarded as forfeited if it is established that the employer acted in a manner which tended to undermine the Union's majority. Accordingly, application of the aforementioned principles make it necessary to determine whether Respondent's refusal to bargain in the instant case took place in a context of lawful, conduct, or in a context of unlawful conduct which tended to undermine and destroy the Union's majority. Tower, Enterprise Inc., 4/b/a Tower Records, 182 NLRB 382, Atlantic Steamers Supply Co., Inc., 189 NLRB 282; Kaiser Agricultural Chemicals, 187 NLRB 661, enfd. 473 F.2d 374 (C.A. 5). If, as the Supreme Court held in N.LRB. v. Gissel Packing Co., 395 U.S. 575, 40 His testimony was: ADt lNIsrRATIVE Lew JuDoE: Well, is it correct to say that what you wanted to do {was 1 to put Mr. Curnutt on the hot seat in the eyes of the management of the Company , is that what you were trying to do? 610-614, Respondent's conduct falls in the latter category, and is of a character that the effect thereof is not`likely to be eradicated so as to insure a fair election , the prior card designations may on balance be regarded as a more reliable 'indicator -of the wishes of the employees than their votes in the election, and a bargaining order may issue as an appropriate remedy. The extensive interference, restraint , and coercion engaged in by Respondent in the preelection period, coupled with the substantial improvements' in wages, hours, and terms and conditions of employment granted immediately following the election , which, as I have found, were nothing short of a reward for rejectin the Union, operated to make a fair rerun election vir tual y impossible. In this posture Respondent must be held to haver efused to bargain in a context of unlawful conduct tending to undermine and destroy the majority which the Union enjoyed when it demanded recognition and bargaining, and hence violated Section 8(a)(5) and (1) of the Act. I so find andconclude. Upon the foregoing findings of fact, and the entire record in the case , I state the following: CONCLUSIONS OF LAW 1. Respondent is an employer within the meaning of Section 2(2) of the Act, and is engaged in commerce within the meaning of Section 2(6) and (7) of the Act. 2. The Union is a labor organization within the meaning of Section 2(5)-of the Act. 3. By the conduct set forth above, Respondent inter- fered with, restrained, and coerced its employees in the exercise of rights guaranteed them by Section 7 of the Act, and thereby engaged in, and is engaging , in, unfair labor practices proscribed by Section 8(axl),of the Act. 4. On January 29, the Union was, and at all times since has been, the duly designated collective-bargaining repre- sentative in a unit of all Respondent's employees employed at its Military Circle. Shopping Center store and its store at 244 Granby Street, Norfolk, Virginia, excluding all store managers, guards and supervisors as defined in the Act, a unit appropriate for the purpose of collective bargaining within the meaning of Section 9(b) of the Act 5. .On or about January 29, the Union demanded, and at all times since has , continued to demand , that Respon- dent recognize and bargain with it as the,duly designated collective-bargaining representative of the employees in the aforesaid appropriate unit. 6. By refusing on January 29, and at all times thereafter, to recognize and bargain with the Union as the collective-bargaining representative of the employees in the aforesaid unit, Respondent engaged in, and is engaging in, unfair labor practices proscribed by Section 8(aX5) and (1) of the Act. 7. The aforesaid unfair labor practices are unfair labor practices affecting commerce within the meaning of Section 2(6) and (7) of the Act. THE WrrNEss: But justifiably so, your Honor. ADMINISTRATIVE L.sw June : Justifiably or not is that what you wanted to do. THE Wrrmass: Yes sir. 4' The Board's order on this point was enforced , 346 U .S. 464. SHULMAN'S INC . OF NORFOLK 785 8. Except to the extent herein specifically found, the General Counsel has failed to establish by a preponder- ance of the evidence that Respondent engaged in any conduct violative of the Act, and all such allegations of the complaint should be dismissed. THE REMEDY Having found that Respondent has engaged in and is engaging in unfair labor practices, it will be recommended that it be required to cease and desist therefrom and to take the affirmative action set forth below , designed and found necessary to effectuate the policies of the Act. Having found that Respondent interfered with , coerced, and restrained its employees in the exercise of their guaranteed Section 7 rights, and refused to bargain with the Union, I conclude from the totality of that unlawful conduct that , a broad order is appropriate , and that Respondent should be required to cease and desist from in any manner interfering with, restraining, or coercing its employees in the exercise of rights guaranteed them by Section 7 of the Act. N.L.R.B. v. Entwistle Mfg. Co., 120 F.2d 532 (C.A. 4, 1941); California Lingerie, Inc., 129 NLRB 912,915. Having also found that Respondent on January 29, and at all times thereafter, failed and refused , in violation of Section 8(a)(5) of the Act, to recognize and bargain with the Union as the duly designated exclusive collective- bargaining agent of its employees in the unit herein found appropriate, and that independently of such violation, a bargaining order is necessary to prevent Respondent from profiting from its own unlawful conduct, it will be recommended that Respondent , upon request , recognize and bargain with the Union concerning the wages , hours, and terms and conditions of employment of the employees in the aforesaid unit , and, if an understanding is reached, embody the same into a written signed agreement. Upon the foregoing findings of fact , conclusions of law and the entire record in the case , and pursuant to Section 10(c) of the Act, I hereby issue the following recommend- ed: them to withdraw their support from the Union, as a reward for rejecting the Union. (d) Telling employees that other employees had with- drawn their support from the Union. (e) Refusing, on request, to bargain collectively with the Union as the exclusive collective-bargaining representation of its employees in an appropriate unit , consisting of all employees in its stores in the Norfolk, Virginia, area, excluding all store managers , guards, and supervisors as defined in the Act. (f) In any other manner interfering with , restraining, or coercing employees in the exercise of their rights to self- organization, to form, join , or assist labor organizations, to bargain collectively through representatives of their own choosing, and to engage in other concerted activities for the purpose of collective bargaining or other mutual aid or protection, or to refrain from any and all such activities. 2. Take the following affirmative action designed and found necessary to effectuate the policies of the Act: (a) Upon request, bargain collectively with Retail Store Employees Union, Local 233, Retail Clerks International Association, AFL-CIO, as the exclusive representative of its employees in the appropriate unit above set forth, and, if an understanding is reached , embody the same into a written signed agreement. (b) Post at each of its Norfolk, Virginia stores , copies of the notice attached hereto marked "Appendix."43 Copies of said notice on forms to be furnished by the Regional Director of Region 5 (Baltimore , Maryland), shall after being signed by an authorized representative, be posted immediately upon receipt thereof and maintained by it for a period of sixty (60) consecutive days thereafter in conspicious 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. IT IS FURTHER ORDERED , that except to the extent herein specifically provided, all allegations of both complaints are hereby dismissed. Report on Objections Affecting the Results of the Election ORDER 42 Respondent , Shulman's , Inc. of Norfolk, Virginia, its officers , agents, successors, and assigns , shall: 1. Cease and desist from: (a) Coercively interrogating employees with respect to their sympathies for or assistance to any labor organiza- tion. (b) Promising benefits to employees to induce them to cease supporting a union , or not to vote for the Union. (c) Granting improvements to employees in their wages, hours, and terms and conditions of employment to induce 42 In the event no exceptions are filed as provided by Sec . 102.46 of the Rules and Regulations of the National Labor Relations Board , the findings conclusions , and recommended Order herein shall, as provided in Sec. 102.48 of the Rules and Regulations , be adopted by the Board and become its findings, conclusions , and Order , and all objections thereto shall be deemed waived for all pruposes. 43 In the event that the Board's Order is enforced by a judgment of a United States Court of Appeals , the words in each notice reading "Posted Having found that by the conduct set forth and embraced in Conclusion of Law 3, most of which occurred in the critical period,44 Respondent violated Section 8(axl) of the Act, it follows that the election herein must be set aside, and I so recommend . Dal-Tex Optical Company, Inc., 137 NLRB 1782; enfd. 418 F.2d I (C.A. 9, 1969), cert. denied 397 U.S. 990 (1970); Kaiser Agricultural Chemicals etc., 187 NLRB 661, enfd . 473 F.2d 374 (C.A. 5, 1973). Under the authority of Ralph Lithographing Company, 158 NLRB 1353-54, In. 3, enfd. as modified 379 F.2d 687 (C.A. 8, 1967), I further find and conclude that by changes in wages , hours, and terms and conditions of employment by Order of the National Labor Relations Board" shall read "Posted Pursuant to a Judgment of the United States Court of Appeals Enforcing an Order of the National Labor Relations Board."" 44 The Board regards as the critical period the time between the filing of the representation petition and the date of the election . Ideal Electric Company, 134 NLRB 1275, 1278. In the instant cast the petition was filed January 2, and the election was conducted on March 5. 786 DECISIONS OF NATIONAL LABOR RELATIONS BOARD announced and made effective by Respondent after the election , Respondent also engaged in conduct requiring that the election be set aside, and Respondent 's conduct in that regard , being of such character as to preclude the holding of a fair rerun election , calls for the imposition of a bargaining order . Having recommended that the Board order Respondent to recognize and bargain with the Union, no purpose would be served by conducting a new election. Accordingly, it is further recommended that the Board dismiss the petition in Case 5-RC-8365, and vacate all prior proceedings had in connection therewith. Copy with citationCopy as parenthetical citation