Signal Delivery ServiceDownload PDFNational Labor Relations Board - Board DecisionsMay 23, 1977229 N.L.R.B. 881 (N.L.R.B. 1977) Copy Citation SIGNAL DELIVERY SERVICE Signal Delivery Service, Inc. and Joseph J. Matera. Case 6-CA-9067 May 23, 1977 DECISION AND ORDER BY CHAIRMAN FANNING AND MEMBERS PENELLO AND MURPHY On February 22, 1977, Administrative Law Judge David S. Davidson issued the attached Decision in this proceeding. Thereafter, the General Counsel filed exceptions and a supporting brief, and the Respondent filed cross-exceptions and a reply brief 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 has decided to affirm the rulings, find- ings,1 and conclusions of the Administrative Law Judge and to adopt his recommended Order. 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 and hereby orders that the complaint be, and it hereby is, dismissed in its entirety. I The General Counsel and the Respondent have excepted to certain credibility findings made by the Administrative Law Judge. It is the Board's established policy not to overrule an Administrative Law Judge's resolutions with respect to credibility unless the clear preponderance of all of the relevant evidence convinces us that the resolutions are incorrect. Standard Dry Wall Products, Inc., 91 NLRB 544 (1950), enfd. 188 F.2d 362 (C.A. 3, 1951). We have carefully examined the record and find no basis for reversing his findings. DECISION STATEMENT OF THE CASE DAVID S. DAVIDSON, Administrative Law Judge: The charge in this case was filed on March 8, 1976, by Joseph J. Matera, an individual. The complaint issued on July 29, 1976, alleging that Respondent discharged Matera on March 4, 1976, because he gave testimony in another proceeding before the Board. The complaint alleges that Matera's discharge violated Section 8(a)(4) and (1) of the Act. In its answer Respondent denies the commission of any unfair labor practices. A hearing was held before me in Pittsburgh, Pennsylva- nia, on October 13 and 15, 1976. At the conclusion of the hearing the parties waived oral argument and were given leave to file posthearing briefs which have been received from the General Counsel and Respondent. 229 NLRB No. 141 Upon the entire record in this case including my observation of the witnesses and their demeanor, I make the following: FINDINGS OF FACT I. THE BUSINESS OF THE RESPONDENT Respondent, an Illinois corporation, has a place of business in Pittsburgh, Pennsylvania, from which it engages in transporting merchandise on behalf of Sears, Roebuck and Company, to customers of Sears. During the 12-month period immediately preceding issuance of the complaint, Respondent performed services valued in excess of $50,000, for Sears which in turn received merchandise valued in excess of $50,000 from points outside Pennsylva- nia. I find that Respondent is an employer engaged in commerce within the meaning of the Act and that it will effectuate the policies of the Act to assert jurisdictidn herein. II. THE ALLEGED UNFAIR LABOR PRACTICES A. The Facts Respondent employs approximately 72 drivers and helpers in its Pittsburgh division. They operate out of two terminals, one at Pittsburgh and one at Cannonsburg, Pennsylvania. The employees are represented by Teamsters Local 294, referred to herein as the Union. The Pittsburgh division is under the overall supervision of Norman McGowan. In addition, Gino Gizzi manages the Pittsburgh terminal, and Richard Watson manages the Cannonsburg terminal. In the spring of 1975 representatives of Sears, Respon- dent's only customer in the Pittsburgh area, spoke to Respondent's officials about the high cost of operations in the Pittsburgh division. Sears was concerned because within Respondent's eastern territory Pittsburgh had the highest cost per stop and the lowest production. Sears' officials informed Respondent that if it did not reduce the cost and improve productivity Sears would cancel the contract and give it to another carrier. As a consequence, in May 1975, Respondent's officials decided to initiate a road surveillance program entailing following trucks, observing employees, and determining what they were or were not doing to contribute to the high cost and low production. Respondent's vice president in charge of retail delivery, Richard Gensler, and local managers, McGowan, Gizzi, and Watson, were made responsible for carrying out the surveillance program. Respondent informed Union Business Agent Peluso that it was going to start the road surveillance program and explained the reasons for it. The road surveillance program continued from then through the time of the events at issue in this case. At the outset of the surveillance program Respondent gave warnings to those employees whom it found loafing or taking excessive breaks or lunchtime on the job. In July 1975, on 2 consecutive days, incidents occurred as a result of which Respondent gave warnings to Charging Party Joseph Matera for theft of time. On July 15, 1975, according to Gensler and McGowan, as a result of a report 881 DECISIONS OF NATIONAL LABOR RELATIONS BOARD relayed through Sears, they and Gizzi were alerted to check on a truck parked at a shopping center to which they went. They testified that they kept the truck under observation for nearly 2 hours while seeking to find the employees assigned to it. According to them, the employees did not return until after 5 p.m. when they had been on overtime for a little more than half an hour.' According to Matera, the three employees had just returned from their afternoon break at or about 5:20 p.m. and were just starting back to the terminal 4 or 5 miles away when McGowan and Gensler appeared next to the truck and accused them of having been at that site for 3 hours. Matera testified that he asked how they could have been there for 3 hours, and Gensler and McGowan said they had a report that they had been there that long. According to Matera, he told them that they had delivered their whole load and asked how they could have been loafing for 3 hours if they had finished and were on their way back to the warehouse. The three employees continued to deny that they had been away from the truck for more than 15 minutes when given warning notices on the following day. On July 16, McGowan and Gensler were returning to the terminal from a meeting when they saw a truck parked near a funeral home. They stopped and waited to observe the truck and, about 15 minutes later at 5:20, the same three employees came out of the funeral home. According to Matera, he and the other two employees were only in the funeral home for 15 minutes on breaktime which was due them. Apparently rejecting this explanation, on the next day McGowan and Gensler gave the three men a second warning notice based on this incident. From May through early August 1975, Respondent issued 16 warning notices and one 5-day suspension to employees for theft of time. On July 24 Union Business Agent Peluso wrote McGowan complaining that the Company had embarked upon a "ridiculous" labor relations procedure by issuing warning notices to employ- ees for what were alleged to be flagrant violations of working practices without taking substantial disciplinary action. The Union asserted that the presumed reason was that the Company could not substantiate the basis for the warnings, and it protested that arbitrating each of the warning notices would bankrupt the Union. The Union advised the Company that it objected to all assertions of facts in the warning notices, mentioning specifically the notices based on the July 16 incident described above. The Union reserved the right to contest the facts relied on by the Company in the event any future disciplinary action was taken based on the warning notices that had been given. On August 4 McGowan wrote Peluso reminding him of the institution of the road study program and the reasons for it, stating why Respondent believed the conduct involved was a violation of the collective-bargaining agreement, and advising the Union that "Any employee, in the future, who is involved in hanging out, loafing on delivery routes, collecting pay for work not performed, will not be given a second opportunity but will be terminated IMMEDIATELY." McGowan stated that he was posting a I Normal quitting time was 4:30. Time worked after 4:30 was overtime. Truck crews were required to be back at the terminal no later than 6 p.m. whether or not they had delivered their full load. copy of the letter on the bulletin board for the advice of employees, and the letter was posted. In a second letter dated August 8, McGowan stated that the warning letters were not required by the contract but had been given in order to give employees a second chance. McGowan objected to any inference that the warning letters were issued to overburden the union finances or interfere with the arbitration process, but stated that Respondent had no objection to the Union reserving the right to challenge the facts in the warning letters in any subsequent disciplinary arbitration instead of arbitrating the justification for the letters at that time. On August 22 Respondent discharged three employees for theft of time. In arbitration the penalties were reduced from discharge to suspension. After receiving the arbitra- tor's decision around January 1, 1976, Respondent adopted a policy of suspending employees for a first theft-of-time offense and discharging them for a second. On February 12, 1976, Gizzi and Watson made a road study of one of the trucks from the Pittsburgh terminal. They chose to follow a truck driven by John McGowan with Matera and Henderson Woodward, Jr., as helpers. According to Watson, they chose to study that truck because it had a "short" load requiring fewer stops than average. According to Watson and Gizzi, they observed the truck that day parked at a drive-in restaurant from about noon until 1:13 p.m. According to Matera and Woodward the truck was there for about half an hour from about 12:45 to 1:15. They testified, as did Sears' customer, Bernetta Porter, that from about noon until 12:30 or later they were at Porter's house delivering a washing machine. On the next day Gizzi called the three employees into his office and notified them that they had been seen at the restaurant on the previous day for approximately I hour and 15 minutes in violation of the contract which provided a half-hour lunch period and that each was suspended for 10 days. Matera protested and told Gizzi that he was "crazy," and Gizzi said he did not want to hear anything further. Matera served his suspension beginning on February 16 and returned to work on March 1. During his suspension Matera was subpenaed to testify as a witness for the General Counsel in Case 6-CA-8530. Matera, who had been a union committeeman at the time of events at issue in that case, appeared at the hearing on February 23 and 24 and testified to statements made by Respondent's officials at several meetings with the Union in support of the allegations of the complaint that Respondent refused to employ Raphael Rizza because of his participation in a grievance meeting and because Respondent considered Rizza a troublemaker who filed grievances. 2 Matera returned to work on March 1, but did not work on March 2. On March 3 he worked as a helper with Joe Lawson on a truck driven by Jack Waldschmidt. On that day Gizzi and Watson again made a road study and chose that truck to follow. According to Gizzi and Watson, on that occasion they observed the truck parked at a drive-in from noon until 1:23. According to Matera and Wald- 2 The Board's decision in that case is reported at 226 NLRB 843 (1976). 882 SIGNAL DELIVERY SERVICE schmidt the truck was at the drive-in for about half an hour starting at 12:30. On the next day, Gizzi and McGowan told the three employees that they had been observed taking a lunch hour of 1 hour and 23 minutes, notified Matera and Lawson that they were discharged because they had been previously warned and suspended, and notified Waldschmidt that he was suspended. Matera again told them that they were "crazy" and that the employees had only taken half an hour because he had made certain that they only took half an hour for lunch in view of his just ended suspension. McGowan rejected his plea and repeated that he was fired. B. Concluding Findings Counsel for the General Counsel contends that Matera and Waldschmidt should be believed as to the length of their lunch hour on March 3, that the grounds asserted by Respondent for Matera's discharge were a pretext, and that the cause of Respondent's road study of Matera on March 3 and subsequent discharge was the testimony given by Matera while suspended in support of the complaint against Respondent concerning Rizza. Respondent con- tends that Gizzi and Watson had no knowledge of Matera's testimony in the Rizza proceeding, that Matera was guilty of the offenses for which he was charged, and that the timing of Matera's road study and discharge in relation to his testimony was mere coincidence. I find that there is evidence to support the inference that on March 3 Gizzi chose to follow the truck on which Matera was riding because Matera had recently given testimony against Respondent and did so in the hope of establishing a basis for disciplining him. However, I further find that Gizzi and Watson are to be credited as to what they found during the March 3 road study and that Matera and the others on the truck were guilty of what Respondent calls "theft of time" in taking approximately an hour and 20 minutes instead of half an hour for lunch. Pittsburgh Terminal Manager Gizzi testified that he attended the Rizza hearing and saw Matera there, but that Matera did not testify for the General Counsel while Gizzi was present. According to Gizzi, before that hearing he had no knowledge that Matera might testify and after the hearing no one told him that Matera had testified. McGowan testified that he also did not see Matera testify, but that he knew that Matera had testified. However, according to McGowan he did not mention it to Gizzi unless possibly they discussed it 2 or 3 months later when Respondent received either the briefs or a transcript of the testimony. McGowan testified that he did not remember discussing the hearing with Gizzi during that time. Watson testified that he learned only shortly before testifying in this proceeding that Matera had testified at the Rizza hearing. McGowan testified that in deciding whom to study on any particular day he and Gizzi considered a number of factors such as the number of curfews, 3 those whose performance they believed was substandard, and those I A "curfew" is a return to the terminal without completing all delivenes because of the 6 p.m. deadline. about whom they had received reports. When asked if they ever chose employees to study upon their return from suspension, McGowan testified, "I really could not answer that," that he probably did, and that he would have to check the records. When asked if it was a policy to follow employees who had just returned from a suspension, McGowan testified that he thought it could be a determin- ing factor but would not say that it happened often. Although pressed to identify anyone other than Matera who was studied a day or two after returning from suspension McGowan was unable to name any other employee, continued to repeat that it possibly happened, and testified that if given time he could probably come up with some names. When McGowan resumed the stand after a I-day recess and was further cross-examined, he was still not able to answer with any more specificity, and ultimately testified that he did not recall conducting a road study of any employee other than Matera so soon after his return from suspension. McGowan was also questioned at some length about the records of road studies kept by Respondent. Initially McGowan testified that Respondent kept a record of road studies showing violations but did not keep any record if there were no violations. He testified that the managers worked from load sheets, making notations on them if they encountered something wrong and making no notations otherwise. After the recess McGowan testified that he did not recall if he kept a record when he followed employees and added that he did not do so all the time but sometimes did and sometimes made tape recordings. McGowan then testified further that on a road study he took notes on most occasions and that Gizzi made written records of most of his road studies. He testified further that it was normal practice to conduct lengthy road studies and to keep a written record of them whether or not a violation was found. Finally, he testified that there were occasions when no records were kept if no violations were found. Watson testified that there were a number of reasons for choosing a particular truck to study, including past production of the crew, the areas to which the truck was going, the type of load, and whether there were a number of large items on the load. Watson testified that he had personally never engaged in a road study of any employee other than Matera upon his return from suspension. According to Watson, on February 12 Gizzi informed him that they would study the truck on which Matera was riding because it was "short" and they ought to be able to make a short day out of it. However, Watson testified that on March 3 Gizzi simply told him which truck they were going to follow and he did not know how the decision to study that truck was made. Gizzi was not questioned about the basis of the selection of the truck to be studied on that date, March 3. McGowan was evasive in his testimony as to Respon- dent's practice in following employees who had recently returned from suspension. Initially he conveyed that Respondent only kept records when violations were found from which it could have been argued that Respondent had 883 DECISIONS OF NATIONAL LABOR RELATIONS BOARD no way of determining whether it had studied others after their return from suspension since no violations were found other than in Matera's case. However, he changed that testimony apparently after realizing that Respondent would introduce records itself which would contradict him both as to the form in which records were kept and the fact that records were kept when no violations were found. He remained unable however to testify as to any other case in which an employee was followed immediately after returning from suspension. While Watson testified to the reason given for following the truck on February 12, he testified that he did not know the reason why Gizzi decided to follow the truck with Matera on March 3, and Gizzi and McGowan gave no explanation for that decision. In view of McGowan's unsubstantiated and suspect testimony as to Respondent's practice and the lack of any testimony as to the reason Matera was studied on March 3, the inference is warranted that a candid explanation would not have helped Respondent. Turning to the denial of Gizzi that he knew of Matera's participation in the Rizza hearing, Gizzi denied ever becoming aware of it while McGowan testified that he possibly told Gizzi about it 2 or 3 months later. Matera's testimony was of a nature that would ordinarily interest management officials attending a hearing in which either their own conduct or conduct which occurred in their presence was at issue. Having read Matera's testimony, I find it impossible to believe the denial of knowledge by Gizzi. In light of McGowan's evasive and contradictory testimony described above, the absence of any explanation for following Matera's truck on March 3, the nature of Matera's testimony in the Rizza proceeding, and the animus established in the prior proceeding, I find the inference warranted that McGowan and Gizzi were aware of Matera's testimony at the Rizza hearing 4 and that Gizzi decided to follow Matera on March 3 because he gave that testimony in the hope that the road study would produce a basis for discharging Matera. I am not persuaded however that Gizzi and Watson fabricated or distorted their findings that Matera and the others on the truck took an excessively long lunch hour. Here the testimony of Matera and Waldschmidt as to the March 3 incident, as well as the testimony presented by the General Counsel's witnesses as to two of the other incidents involving Matera, is less persuasive than that of Gizzi and particularly Watson, and is corroborated by the records kept of the road studies. In his testimony Matera disputed not only the accuracy of the March 3 road study but also the accuracy of the observations that he had taken excessive time on prior occasions. According to Matera on July 15, 1975, he and the others on his truck had just finished a 15-minute break at 5:20 p.m. and were starting to return to the terminal when McGowan and Gensler appeared at the truck and asked what they had been doing there for 3 hours. I find it impossible to credit Matera that he and the others had only taken a 15-minute break and that with no indication of any ulterior motive whatsoever Gensler and McGowan accused 4 In General Iron Corp., 218 NLRB 770, 782 (1975), where the Board declined to infer knowledge. the hearing attended by the dischargee was an them of taking a 3-hour break. I credit Gensler and McGowan as to what they observed at that time. With respect to the second of the two incidents except for the late timing of the break there is no evidence to contradict Matera that they only took the 15 minutes which was due them. In the absence of any testimony to indicate whether or not employees were permitted to delay taking their break until after 4:30 and any evidence that they took more than 15 minutes, I credit Matera and find that on this occasion McGowan and Gensler acted on the basis of assumption rather than observation. However, there is no showing that there was illicit motivation for the warning given Matera at that time. With respect to the February 12 suspension, Mrs. Porter, the only seemingly impartial witness who testified in the proceeding, supported Matera and Woodward in their claim that they were not parked at lunch at 12 o'clock but arrived at her home and made a delivery between 12 and 12:30. According to Mrs. Porter, she and her husband, both unemployed, awakened at noon to an alarm which she regularly set for that hour, and her husband left the home briefly to buy doughnuts returning within about 5 minutes. She testified that Matera and Woodward arrived shortly after her husband's return, delivered the washing machine, and left approximately a half hour later. She testified that around I o'clock, after they left, she attempted to call her mother to tell her that the washer had arrived but there was no answer. According to Mrs. Porter, a couple of days later Woodward and McCowan, the driver of the truck returned to her home and sought a statement from her husband as to the time that they had been at her house to support a protest of their suspension. She testified that she and her husband spoke briefly at that time and agreed that they had arrived sometime between 12 and 12:30 and had left sometime between 12:30 and 1. Although she placed the return of Woodward and McCowan to her house to obtain a statement a couple of days after the delivery, Woodward testified that it was about a week later that they returned to her house and related the timing of the visit to the day on which Matera testified at the Rizza hearing, which was II days after the delivery was made. The reliability of Mrs. Porter's testimony depends entirely upon the accuracy of her recollection that she was awakened by her alarm on that day and that the alarm was set for noon. Her attempt to call her mother adds nothing to corroborate her version of the time the deliverymen left as her mother was not at work that day and there was no answer. Her telescoping of the interval which passed before Woodward and McCowan returned to obtain her hus- band's statement itself demonstrates an inaccurate recol- lection of time, and the fact that she and her husband were not questioned about it for 11 days rather than 2 days makes it less likely that what they remembered at that time was accurate. Bearing in mind that Gizzi and Watson were regularly engaging in road studies at that time and had no apparent motive as of February 12 before the Rizza hearing to falsely accuse Matera, Woodward, and McCow- an or any other employee of the theft of time, I am not ex parte representation hearing at which no employer representative was present. 884 SIGNAL DELIVERY SERVICE satisfied that Mrs. Porter's testimony is sufficiently reliable to warrant discrediting Gizzi and Watson and the record of the road study which they made that day. As for Matera and Henderson, both displayed selective memories of the events of February 12 appearing to remember in great detail the delivery to the Porter home and the circumstanc- es under which they had lunch but very little other detail from that day. Both had clear interest in the outcome of this proceeding. In Matera's case I am struck by the fact that he uniformly disputed the charges of theft of time despite the fact that no motive has been shown for Respondent to have accused him consistently before February 22. With respect to March 3 the only corroboration offered for Matera's testimony was that of Waldschmidt who testified that on that occasion he, Matera, and the other helper on the truck stopped for lunch between 12:30 and I. Apart from that testimony Waldschmidt displayed practi- cally no memory of the events of that day or the days close to it. I have considered the General Counsel's contention that it is Gizzi and Watson who should be discredited rather than Matera and Waldschmidt as to the events of this day. It is true as I have noted above that on this occasion, unlike the occasion of the previous observations of Matera, Respondent apparently had a motive to seek to find cause to discharge or discipline Matera and I have not credited Gizzi as to his lack of knowledge of Matera's testimony. As counsel for the General Counsel points out also the findings of Watson and Gizzi as to the amount of time spent by Waldschmidt, Matera, and Lawson at their first stop after lunch seems incredibly short for the delivery of two pieces of furniture, and there are some conflicts between Watson's testimony and what he and Gizzi recorded on the road study or stated in the tape recording they made simultaneously with the road study. However, I have listened carefully to the tape recording made by Watson and Gizzi and I am persuaded that the tape is genuine, that it was made at various times during the course of the road study, that it sometimes describes concurrent observations and that it sometimes summarizes what had been observed over a short period just preceding the time of recording of passages. It has the roughness and spontaneity that one would expect of a recording made over a period of time in a car sometimes on the move. I credit Watson and Gizzi that they observed the truck driven by Waldschmidt with Matera and Lawson parked at lunch for approximately an hour and 23 minutes on March 3. s Enterprise Products Company, Enterprise Fractionation Company, 196% NLRB 549, 559-560(1972), enfd. 471 F.2d 651 (C.A. 5, 1973). ' 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, The question remains whether Matera was discharged because of what Watson and Gizzi observed or because he testified in the Rizza proceeding. The evidence shows that from August 1975 on Respondent followed a policy of first suspending and then discharging employees found to have engaged in what Respondent refers to as theft of time. While the evidence shows that those discharges which were taken to arbitration were ultimately reduced by arbitrators to lesser discipline, there is nothing to contradict the testimony that at the time of Matera's discharge Respon- dent regularly followed the policy of discharging employ- ees found guilty of theft of time after one suspension, and Respondent discharged other employees both before and after Matera under similar circumstances. The question is not whether the discharge was just but whether it was caused by Matera's testimony or by what Watson and Gizzi observed. Under the policy being followed by Respondent at the time of Matera's discharge, any other employee found to have engaged in similar conduct after having been previously suspended would also have been discharged. Thus, under Respondent's interpretation and application of its rules, the cause Gizzi and Watson discovered which Respondent relied on in discharging Matera was cause for discharge. Under these circumstanc- es, the fact that Respondent looked for grounds to discharge Matera because he testified in the Rizza proceeding is not sufficient to make his discharge unlaw- ful. 5 Accordingly, I find that the General Counsel has failed to establish that Respondent discharged Matera in viola- tion of the Act and will recommend the complaint be dismissed. CONCLUSIONS OF LAW I. Signal Delivery Service, Inc., is an employer engaged in commerce within the meaning of the Act. 2. The General Counsel has failed to establish that Respondent has engaged in unfair labor practices as alleged in the complaint. Upon the basis of the above findings of fact and conclusions of law and the entire record in this case, and pursuant to Section 10(c) of the National Labor Relations Act, as amended, I hereby issue the following recommend- ed: ORDER 6 The complaint is dismissed in its entirety. conclusions, and the 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 purposes. 885 Copy with citationCopy as parenthetical citation