Solo Cup Co.Download PDFNational Labor Relations Board - Board DecisionsFeb 8, 1974208 N.L.R.B. 976 (N.L.R.B. 1974) Copy Citation 976 DECISIONS OF NATIONAL LABOR RELATIONS BOARD Solo Cup Company and International Brotherhood of Teamsters, Chauffeurs, Warehousemen & Helpers of America, Local No. 26. Case 38-CA-1697 February 8, 1974 DECISION AND ORDER BY CHAIRMAN MILLER AND MEMBERS FANNING AND PENELLO On October 15, 1973, Administrative Law Judge Benjamin K. Blackburn issued the attached Decision in this proceeding. Thereafter, Respondent filed exceptions and a supporting brief, and the General Counsel filed a brief in opposition. 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, findings, and conclusions of the Administrative Law Judge and to adopt his recommended Order.' ORDER engage in surveillance of your union activities, we hereby notify you that: 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 aid or protection To refrain from any or all of these things. WE WILL NOT interrogate you about your union activities. WE WILL NOT threaten to close the plant, to discharge you, or to end your benefits if you organize for purposes of collective bargaining. WE WILL NOT attempt to engage in surveillance of your union activities. WE WILL NOT, in any like or related manner, interfere with you or restrain or coerce you in the exercise of the above rights. All our employees are free, if they choose, to join International Brotherhood of Teamsters, Chauffeurs, Warehousemen & Helpers of America, Local No. 26, or any other labor organization, or to refrain from doing so. 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 Solo Cup Company, Urbana, Illinois, its officers, agents, successors, and assigns, shall take the action set forth in the said recommend- ed Order, except that the attached notice is substitut- ed for that of the Administrative Law Judge. I We find merit in the Respondent 's exception to the use by the Administrative Law Judge of the term "spy" for "surveillance" in the notice he attached to his Decision Love Box Co, Inc, v N L R B 422 F 2d 232 (C.A 10,1970); and N L R B Douglas & Lomason Company, 443 F 2d 291 (C.A. 8, 1971) We also find merit m the Respondent's further exception that the notice should state that the employees have the right to refrain from joining a labor organization as well as the right tojom one. Accord- ingly, we substitute the attached notice reflecting these changes for the notice drawn by the Administrative Law Judge In all other respects, how- ever, we find no reason to change the notice APPENDIX NOTICE To EMPLOYEES POSTED BY ORDER OF THE NATIONAL LABOR RELATIONS BOARD An Agency of the United States Government The National Labor Relations Board having found, after a trial, that we violated Federal law by interrogating you, threatening you, and attempting to 208 NLRB No. 146 SOLO CUP COMPANY (Employer) 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 compli- ance with its provisions may be directed to the Board's Office, Savings Center Tower, 10th Floor, 411 Hamilton Boulevard , Peoria, Illinois 61602, Telephone 309-673-9283. DECISION STATEMENT OF THE CASE BENJAMIN K. BLACKBURN, Administrative Law Judge: The charge in this case was filed on March 23, 1973,1 and amended on April 16. The complaint was issued on April 20 and amended at the hearing. The hearing was held on i Dates are 1973 unless otherwise indicated. SOLO CUP COMPANY 977 May 14, 15, 16, and 17 and June 12, 13, and 14 in Champaign-Urbana, Illinois. The principal issue litigated was Respondent's motive for discharging 13 employees on March 21. For the reasons set forth below, I find that, while Respondent committed a number of independent violations of Section 8(a)(1) of the National Labor Relations Act, as amended, its motive for discharging the employees was economic rather than discriminatory and, therefore, Respondent did not violate Section 8(a)(3). Upon the entire record, including my observation of the demeanor of the witnesses, and after due consideration of briefs, I make the following: FINDINGS OF FACT 1. JURISDICTION Respondent, a Delaware corporation, is engaged in Illinois and other States in the business of manufacturing paper cups. During the year just prior to the issuance of the complaint herein, it shipped products sold for more than $50,000 directly to customers outside the State of Illinois from its Illinois plants, including the one in Urbana which is involved in this case. II. THE UNFAIR LABOR PRACTICES A. Facts Respondent purchased a factory building in Urbana, Illinois, from Magnavox Corporation in January 1972. Magnavox had manufactured sophisticated electronic military equipment in the building. Respondent planned to manufacture paper cups. Consequently, Respondent had to renovate the interior to make the space suitable for its purposes. To that end, it began ripping out partitions, raising the ceiling and lights, removing a vinyl tile floor and refinishing the floor underneath it, and undertaking myriad other necessary projects. Some of these projects were contracted out. Others were assigned to persons Respondent began hiring in early 1972 and classified as building maintenance employees. When they were hired all were told about various of Respondent's benefit programs, including an all-expense trip for two anywhere in the world after 25 years' service. None was told that he was being hired only for a temporary job. At its peak, in late summer- early fall 1972, the staff of building maintenance employ- ees numbered more than 20. Respondent plans eventually to have 100 cup forming machines and associated equipment such as waxers and packers in its Urbana plant. The first cup machine went into production the last week in September 1972. By March 1973, the crucial period in this case, there were nine in operation. Respondent initially planned to move its corporate machine shop from Chicago to Urbana. Conse- quently, it also hired machinists in Urbana to man both a plant and a corporate machine shop. (The corporate machine shop, essentially, builds new machines for all of Respondent's plants. Each plant, apparently, has a small plant machine shop whose function is to make repair parts for the machinery in that plant.) However, Respondent changed its mind in the latter half of 1972 so that the corporate machine shop was never actually located in the Urbana plant. Respondent let its staff of machinists dwindle through attrition. As the major projects required to convert the plant to Respondent's needs began to be completed, Respondent also let its staff of building maintenance employees dwindle through attrition. By late February 1973, when union activities began, there were approximately 71 hourly paid employees at Respondent's Urbana plant. Fourteen (including two electricians) were building maintenance employees, three were machinists, and one was a janitor. The rest were production employees. For accounting purposes, building maintenance employ- ees, machinists, and janitors are assigned to Dept. 817 (Machine Shop, Building Maintenance, and Stores). Dept. 817 costs are all considered indirect labor. Production employees are assigned to Dept. 807 (Cold Drink Cups). Dept 807 costs are split between direct and indirect labor costs, depending on the duties of the individual employee. In late 1972 and early 1973 Respondent's top management became concerned about high indirect labor costs at the Urbana plant. The facts with respect to this concern and what Respondent did about it are set forth in detail in section C below. Union activities began on the evening of Friday, February 23, 1973, when Patrick Lamanske, a building maintenance man, met with two organizers for the Charging Party and obtained a supply of authorization cards from them. He carried the cards into the plant on Monday morning, February 26, and began signing up employees. Other employees, principally from the building maintenance ranks, assisted him. Robert Tharp, for instance, a probationary electrician on the third shift, obtained approximately 15 cards. By Thursday, March 1, almost all of the approximately 48 cards which the Charging Party ultimately obtained had been signed. (Of the 12 cards in evidence, only one, that of Orville Williams, bears a date later than February 27. The cards in evidence were all signed by alleged discriminatees, the other 11 being Lamanske, Tharp, Arnold (Spud) Allen, David Bridwell, Mike Demlow, Dennis Elkins, Everett Fagner, Samuel Francis, James Ruhnow, Richard Stahl, and Arthur White. Ronald Frields, the 13th alleged discrimina- tee named in the complaint, did not sign a card and did not engage in any other union activities. He was on sick leave during this period, returning to work in the machine shop on the morning of March 21 only to be discharged, along with the other 12, that afternoon.) None of the solicitations was observed by Respondent's supervisors. On March 1, the Charging Party mailed a letter to Respondent in which it claimed to represent a majority of Respondent's hourly paid employees and demanded recognition. On March 2 it filed a petition in Case 38-RC-1329 for an election in a production and maintenance unit. Hans Schult, Respondent's director of manufacturing and Urbana plant manager, received the Charging Party's demand letter on the morning of Friday, March 2. This was the first Respondent or any of its supervisors learned of union activities in the Urbana plant. Schult relayed the news to Leo Carter, Respondent's director of industrial relations, in Chicago. Carter went to Urbana on the morning of Saturday, March 3. A reply was mailed to the 978 DECISIONS OF NATIONAL LABOR RELATIONS BOARD Charging Party over Schult's signature in which Respon- dent expressed a doubt of the Charging Party's claimed majority and declined recognition. A meeting of Urbana plant supervisors was held at which they were told of the Charging Party's letter and how to conduct themselves with employees during the Charging Party's campaign to organize the plant. Respondent distributed letters presenting its views of the campaign to its employees on March 5 and 6. A series of incidents between supervisors and employees which are alleged as independent violations of Section 8(a)(1) of the Act began on March 5. These are considered in detail in section B below. Lamanske, Tharp, Francis, Bridwell, Fagner, and Spud Allen formed themselves into an ad hoc organizing committee. Respondent was not formally notified of the existence or membership of this committee. It met on Tuesday afternoons, March 6 and 13. Interested employees were invited. A few attended. A general meeting for all employees was held on Saturday, March 10. Approximately 15 attended. Robert Tharp had been transferred from the first to the third shift as a probationary electrician around January 21 by Eugene Goebel, engineer at the Urbana plant. (Tharp had recently acquired a city license as an electrician and was anxious to be promoted from building maintenance man to electrician, a higher payingjob in Dept. 817.) When he returned home from the March 6 committee meeting, he received a telephone call from Goebel. Goebel told him not to report for the third shift that evening because he was being transferred back to the first shift effective the next morning. Shortly after March 6, Samuel Francis, an electrician, was taken off the job of troubleshooting electrical breakdowns in machinery in the production area and assigned to rewire a machine called a padlocker. The padlocker was located in a fenced-in area near the machine shop. Francis' foreman instructed other employees to leave Francis alone while he worked. On Wednesday morning, March 21, the Charging Party began recognition picketing at each of the Urbana plant's two entrances. (The picketing continued until March 30, the second day of the hearing in Case 38-RC-1329.) That afternoon, during the last hour of the first shift, Respon- dent discharged 13 Dept. 817 employees. Ten (including one electrician, Francis) were building maintenance employees. Four (including one electrician, Clifford Allen) building maintenance employees were retained. The four men retained all had greater seniority than any of the 10 discharged. (Phil Snyder, the junior man retained, and Lamanske, the senior man discharged. were hired on the same day, March 13, 1972. However, Snyder had been placed ahead of Lamanske at the time because Snyder had been a building maintenance man for Magnavox while Lamanske had been a forklift driver.) Three of the four retained employees, including Snyder, had signed authori- zation cards. Two machinists were discharged. The one machinist retained, Byron Miller, had greater seniority than either. Miller had not signed an authorization card. (The General Counsel conceded that building maintenance men were selected for discharge by seniority but disputed this point with respect to machinists. He relied on the fact that Ed Elison, who also did not sign an authorization card, was hired after Mike Demlow, an apprentice machinist and card signer who was discharged on March 21. While it is true that Elison did work for a time around this period on the machines in the machine shop , it is clear from Respondent's records that Elison was hired as and classified throughout his employment as a maintenance mechanic, a Dept. 807 job. Maintenance mechanics repair the production machinery when it breaks down mechani- cally. I credit Schult's explanation that, when he selected the employees to be discharged on March 21, he did not select Elison and retain Demlow, as the General Counsel contends he should have done, because Elison's name never came up.) The 13th Dept. 817 employee discharged was Orville Williams, Respondent's lone janitor. (Respon- dent contracted out itsjanitorial work on April 1.) Each of the 13 was engaged on March 21 on a project which was incomplete when he was discharged. Each was interviewed separately. Each was told he was being discharged because the work for which he had been hired had run out. Each was given the pay which he would normally have received on Friday, March 23, for the work he did during the week ending Friday, March 16. Each was given the option of picking up at the plant or receiving in the mail the check for the days he had worked so far that week. Two salaried employees were also discharged on March 21. One was a draftsman whose principal duty had been to prepare plans and other drawings in connection with the renovation of the building. The other was a toolcrib attendant who was on sick leave. Neither is alleged as a discriminatee in the complaint. Goebel, who had been hired at a salary in excess of $20,000 a year principally to oversee the renovation of the building, was terminated in mid-April. B. Section 8(a)(1) 1. The activities of Foreman Walker Willard (Bud) Walker is foreman in charge of building maintenance employees. The General Counsel has attribut- ed more independent violations of Section 8(a)(1) of the Act to him than to any other supervisor, a natural circumstance in view of the closeness of his relationship with the employees discharged. Williams testified at length, denying in each instance the particular aspect of his accusers' testimony that might make his words illegal, thus creating the only serious credibility conflict in the record. Walker's testimony is difficult to pin down. He frankly admitted some of the conversations attributed to him. For instance, he conceded that he had argued with Patrick Lamanske on several occasions about whether the plant would close if the Union came in, then denied he had said that it would. Other conversations like the one with Dennis Elkins he could not remember at all, then conceded that he had talked to someone about losing $6,000 in a strike at one time in his working life. Because Walker , in effect, almost but not quite corroborated the testimony of his accusers , I have resolved these conflicts against him. Therefore, with one exception, the findings of fact about incidents involving Walker which follow are based on the testimony of the other party or parties to the conversations, SOLO CUP COMPANY 979 with one modification. The modification relates to what Walker said to Lamanske and Robert Tharp on the picket line on March 27. Because it does not appear in an affidavit which he gave to a Board investigator on March 28 (Tharp 's affidavit contains no reference to the conversa- tion at all), I have not credited Lamanske's testimony that Walker said all the men had been discharged for union activities but have found that the only specific reference was to Francis, the discharged electrician , as Tharp testified. While Lamanske was guilty, in this instance, of embroidering his testimony to give it greater weight, I have not discredited him generally. On Monday, March 5, Walker said to Lamanske, "Somebody's trying to scare up some trouble by bringing in a union . Do you know anything about it?" Lamanske said, "Before you go any further, I'm pro- union." Walker said he had belonged to five or six trade unions, he had made more money outside the union than with it, the plant would probably close down if a union came in, and he would quit if a union came in there. I find Walker coercively interrogated Lamanske about his union activi- ties and the union activities of other employees in this conversation and Respondent thereby violated Section 8(a)(1) of the Act. I also find that, by these words, Walker, and thus Respondent threatened to close the Urbana plant, another violation of Section 8(a)(1). Also on March 5, Walker asked Elkins what he thought about the company letter Elkins had just received. Elkins said he really did not give it very much thought. Walker said that would probably be best. Elkins asked what Walker meant by that. Walker said it would be best if Elkins did not give this union thing very much thought, it was bad for him. Elkins asked why. Walker said the Union could not sign Elkins' paycheck or give him vacations or raises, only old man (i.e., L. J.) Hulseman (Respondent's president) could do that. Elkins asked why, after being a union man for several years, Walker had suddenly turned against them. Walker said he went out on a strike for 6 months, lost $6,000, and got a 10-cent raise for his effort. I find no violation of Section 8(a)(1) in this conversation. Walker was merely exercising Respondent's 8(c) right of free speech. There is nothing coercive under the circum- stances in Walker's asking Elkins what he thought about Respondent's letter. Neither did Walker make any promis- es to Elkins or threaten him in any way. Around March 5 Walker had a conversation with David Bridwell and James Ruhnow. Walker first asked Bridwell what he thought about the Union. Bridwell replied, "It looks like a pretty good deal to me." Walker said, "Do you know what you are getting into?" When Bridwell said that he did, Walker went on, "Take it from me. I been around unions all my life, and I know what they are." Walker then put the same question to Ruhnow. Ruhnow replied, "Anything to better myself, really." Walker then turned back to Bridwell and said, "Dave, what about the initiation fee?" When Bridwell said there was none, Walker went on, "You better get this in writing because they'll say this but they don't mean it." As Bridwell and Ruhnow started to walk away, Walker said , "The old man could always close the plant down." A couple of days later Walker had another conversation with Bridwell . Walker asked Bridwell if he thought the Union was coming into the plant . Bridwell said , "Yes, we have a strong majority of people who want it." Walker said, "You have to think about your jobs. And what are you going to do if they close the plant down?" Bridwell said , "I'll get another job." I find no coercive interrogation in either of these conversations. However, I do find an implied threat by Walker that Respondent would close its Urbana plant rather than bargain with the Charging Party, a violation by Respondent of Section 8(a)(I) of the Act. Around March 8 Walker had another conversation with Lamanske . Robert Tharp was also present . Walker said none of Respondent 's other plants was union and the old man who owned it had so much money , if they tried to bring a union into the Urbana plant , he would close the doors. Lamanske said it was against the law to close a plant for that reason . He argued that , even if the old man did close the doors, he could only take a certain percentage of his loss as a tax credit ; therefore , he could not make a great amount of money by closing the doors . Once again, I find in this conversation an implied threat by Respondent to close its Urbana plant rather than bargain with the Charging Party. In mid-March Walker had a conversation with Orville Williams. Walker said he would like to know what Williams felt about the Union coming into the plant, he was not supposed to ask but he would like to know what Williams felt about it. Williams said , "We all need more money but, either way, it is all right with me." I find nothing coercive and, therefore , nothing illegal about this conversation. After March 21 the men who had been discharged joined the Charging Party's picket line . Walker had conversations with some of them on two occ -isions thereafter as they were picketing . The conversations were substantially the same. The first occurred on March 23, when Walker spoke to Allen. The second occurred on March 27, when Walker spoke to Lamanske and Tharp . Pleasantries were ex- changed about how hard Walker had to work now that the discharged employees were no longer in the plant and how much the men missed their jobs. In this context, Walker commented that Francis would probably have been making $14 ,000 or $ 15,000 a year in a few years if he had not gotten mixed up with the Union and lost hisjob. This was a reference to a discussion Francis had had with Goebel , the plant engineer, in February in which Goebel had praised Francis' work and suggested Francis might eventually be promoted to salaried status and given managerial responsibilities in his field . (Clifford Allen, the senior electrician who was retained when Francis was discharged , was seriously ill at the time . He was in the hospital during the May phase of the hearing in this case. At that time , Respondent had offered to reemploy Francis as his replacement . Allen died a few days before the hearing resumed in June . By that time Francis had returned to work for Respondent at his old wage rate and with seniority dating from his original hire .) In the March 980 DECISIONS OF NATIONAL LABOR RELATIONS BOARD 23 conversation with Allen, Walker also said Lamanske would not have been discharged if he had not engaged in union activities. I find in each of these conversations an implied threat that Respondent would discharge employees for engaging in union activities. Each, therefore, violates Section 8(a)(1) of the Act. 2. The activities of Plant Engineer Goebel and Personnel Manager McGrath Eugene Goebel was engineer at the Urbana plant until his termination in mid-April. John McGrath is the personnel manager. There are some, although not many, conflicts between their testimony as to the following events and the testimony of the General Counsel's witnesses. Where such conflicts exist, I have not credited Goebel or McGrath. On March 13 Tharp, the building maintenance man who aspired to be an electrician, asked Goebel for a raise. Goebel said he would set up a meeting to talk about it. Later, Tharp met with Goebel, McGrath, and Walker, his immediate supervisor. Tharp said he thought he was being discriminated against because of his age. Walker said he should be happy with the $3.10 an hour he was making, Walker knew union guys who were only making $1.70 an hour. Walker extolled the benefits granted to employees by Respondent, citing the case of an employee in one of Respondent's Chicago plants who had been retired when he came down with some kind of disease. Goebel said the old man had so much money, he could just write off the Urbana plant as a tax loss. Tharp said he had not come to talk about the Union but about his wages. Goebel said Tharp should be satisfied with what he was getting. Goebel said, "We are not getting anywhere, Bob. You'll just have to wait out your time." Tharp left without getting a raise. I find in Goebel's statement about writing off the Urbana plant as a tax loss an implied threat that Respondent would close the plant rather than bargain with the Charging Party, a violation of Section 8(a)(1) of the Act. Around March 16 Goebel had a conversation with Lamanske. Lamanske went to see Goebel in his office. Lamanske said he had not come to ask for a raise but, since he had just finished his first year on the job, he wanted to review his performance and find out what he could do to better it. Goebel said Lamanske's work was all right and suggested that Lamanske, like everyone else in the plant, might become more safety conscious. Goebel asked if Lamanske was aware that a union was trying to come into the plant. Lamanske said he knew. Goebel asked how Lamanske felt about it. Lamanske said he would go along with the majority of the hourly people. Goebel said, since he was a company man, he would have to be against the Union. He said the old man was rather old and he and his boys had already made their money. He said the old man would just flat close the doors of the Urbana plant if a union came in and he would hate to see this happen because he was afraid he would have to relocate if it did. Goebel said he liked the Urbana area, his friends and family were there and he would like to stay there. Lamanske said he would go along with the majority, however the majority of the people felt. Once again, I find a threat-to-close violation of Section 8(a)(1). The day after Walker spoke to him about the Union, Williams, the janitor , had separate conversations with McGrath and Goebel. Each asked him how he felt about the Union coming into the plant. He gave each the same answer he had given Walker, i.e., the employees needed more money but either way it went was all right with him. McGrath said, "Orville, you better give it some thought because it's going to affect all of us." I find nothing illegal in either of these conversations. 3. The activities of Supervisor Cisna Carl Cisna is assistant production control manager at Respondent's Urbana plant. In March he had supervisory responsibilities in the shipping and receiving area . The only credibility conflict with respect to the following incidents relates to whether he told Orville Williams Respondent had or had not closed its Baltimore plant as a result of union activities . Since the record indicates that the Baltimore plant is still in operation and since I have no reason to think that Cessna would misinform Williams, I have credited Cisna rather than Williams. This has not caused me to doubt Williams' testimony generally, however. I assume that , in the heat of the discussion which was apparently taking place at the time, Williams simply misunderstood Cisna. On the day after both Goebel and McGrath spoke to Williams, Williams got into a discussion about the Union with several rank-and-file employees in the plant cafeteria during breaktime. Cessna, the immediate supervisor of the other employees, was at the same table. When the question of whether Respondent could or would close the plant, the employees turned to Cisna and asked his views. He told them there had been an attempt to organize the Baltimore plant which had led to a strike. Respondent, Cisna said, had continued in operation despite the strike and eventual- ly the employees had voted the union out and gone back with the Company. I find nothing illegal in this conversa- tion. On March 22 or 23, Cisna talked about the Union to an employee named Andrew Vaughn who worked under him in receiving . Cisna and Vaughn discussed the fact that Lamanske had just had a fight with one of the employees in the shipping department. Cisna asked Vaughn what he thought of the Union now, i.e., had Vaughn changed his previous favorable opinion in light of Lamanske's resort to violence against an antiunion employee . Cisna said this incident proved that the Charging Party would do anything to get into the plant. He said the Union was not really trying to better the Company, a point Vaughn had tried to make in the prior discussion, and he really did not feel the Union should be in . I find nothing illegal in this conversation. 4. The activities of Foreman Hurst Herman Hurst is production foreman on the first shift. In the following incident , I have credited Donna Quinn over him. Hurst denied that the Union was mentioned. On April 18 Hurst instructed Miss Quinn, one of the employees on his shift, to help fix some cartons that the packing machine was failing to handle properly. Miss SOLO CUP COMPANY 981 Quinn said she had been packing the cartons in larger boxes that way all day. They got into a discussion about the fact that no maintenance mechanic had been available to fix the machine. Hurst said there was only one man and he had not been able to get to that machine. Miss Quinn said the Company should hire somebody if they did not have enough people. Hurst said it could not find anybody who wanted the work. Miss Quinn said, "How about those guys that wanted to work and they fired them?" Hurst said, "That was their fault." Miss Quinn said, "How do you figure it was their fault?" Hurst said, "It was their fault they got fired because they wanted a union and the company didn't." Miss Quinn said, "What kind of a reason is that? This is supposed to be America." Like Walker's comments to employees on the picket line about Respondent's motive for discharging Francis and Lamanske, this conversation contains an implied threat that Respondent would discharge employees for engaging in union activities. It, too, constitutes a violation of Section 8(a)(1). 5. The activities of Supervisor Kursella, Foreman Munoz, Foreman Rewerts, and Supervisor Hollie The following incidents have in common the fact that Respondent adduced no evidence to contradict the testimony of the General Counsel's witnesses. (Sal Munoz had left Respondent's employ, and his whereabouts were unknown at the time of the hearing. The others were still working for Respondent.) My findings of fact are, therefore, based in each instance on the testimony of the other participant in the conversation. Ed Kursella supervises both the machine shop and the mechanics who maintain production machinery. On March 5 he asked Mike Demlow whether he had ever heard anything about the Union. Demlow said he had heard some rumors. Kursella asked what the rumors were. Demlow, who had signed an authorization card on February 26, said he had heard there were some guys trying to get one started but that was about it. Around March 6 Kursella asked Earl Burton, a maintenance mechanic, if he had heard anything about a union and if he had been approached to sign a card. Burton, who had signed an authorization card on February 27, said he had heard rumors but had not been approached directly. Kursella said Respondent had never had a union and he did not think the people in the Urbana plant would benefit from one. He then asked Burton if he knew who was in back of the union activities. Burton said he did not know. I find in these conversations coercive interrogations about the union activities of employees. They are, therefore, violations of Section 8(a)(1). On March 8 Kursella engaged Demlow in a conversation about the Union. Among the disadvantages he listed were the fact that the employees would have to work much harder if the Union came into the plant and the fact that Respondent would end its policies of sharing profits with employees and reimbursing them for school expenses when their educational efforts related to their work. He also told Demlow about Respondent's Baltimore experience when a union had gotten into the plant and the employees ultimately voted it out. This conversation contains an obvious threat that Respondent would take away benefits already enjoyed by employees if the Charging Party got into the plant. I find it violated Section 8(a)(1). Sal Munoz was production foreman on the third shift. Around March 7 he asked Sharon Miller, a third-shift production employee, if she knew anything about the Union. Mrs. Miller replied, "Some." On March 9 he asked her if she knew anything about unions. Mrs. Miller said she did not know very much because she had never worked in a union plant. Munoz said a union was trying to get into the plant but Respondent was not going to let it come in because nobody was going to tell Respondent what it was going to do about employees' wages or anything else. If it came to a union, Munoz said, the plant could close and Respondent could move out. Munoz said, "I'm not saying they will close down, but they could." Munoz also said employees would lose their jobs. Mrs. Miller said she was not afraid of losing her job because she was not the sole support of her family. Munoz said, "Some people here are." Later that night Munoz asked Mrs. Miller if she had heard there was going to be a union meeting the next day. She said she had. Munoz asked if she was going. Mrs. Miller said she did not know because she did not know whether she would have the family car. Still later, Munoz asked if she would go to the meeting if she had a ride. Mrs. Miller said she did not know. He told her to call him next day if she wanted to go to the meeting and needed a ride. He gave her a slip of paper with Respondent's telephone number on it and told her that was where he could be reached. Mrs. Miller did not go to the March 10 meeting. However, when Munoz asked her on March 12 whether she had, she replied yes. He asked her what went on. She told him nothing much. He asked if there was anyone there she knew. She said there could have been. He asked if there was anyone there from the third shift. She said no. He asked if Phyllis Stucker was there. She said she was not sure. He said she knew what Phyllis Stucker looked like. Mrs. Miller said, "Yes, I do, but I'm not saying she was at the meeting." I find the following 8(a)(I) violations in Munoz's conversations with Mrs. Miller: interrogation, threat to close, and attempted surveillance of the union activities of employees. On March 7 Munoz initiated a conversation with Dennis Williamson, another third-shift production employee. He said, "As you probably know, there are some people in this plant trying to get a union into it. There are a lot of things the Union won't tell you. They won't tell you about the dues or they won't tell you about the fees or they won't tell you about the penalties. When you came to Solo Cup, you came to us and we hired you. You didn't go to no union. And we don't think you need a union to represent you. If there is a union and they should go out on strike and the plant is shut down, there is a very good possibility that the plant will stay closed and you'll all be out of a job. What do you think about the Union, Dennis?" Dennis' reply was to hand Munoz a piece of union literature he had received 982 DECISIONS OF NATIONAL LABOR RELATIONS BOARD at the March 6 meeting. I find nothing illegal in this conversation. Gerald Rewerts is production foreman on the second shift. Around March 8 he had a conversation with Jackie Sawyer, a second-shift production employee. Miss Sawyer asked Rewerts about a promotion which was due her. Rewerts replied he could not tell her anything because there were going to be no promotions and no overtime due to union activities. Once again, I find a threat-to-withhold- benefits violation of Section 8(a)(1). On March 12 Rewerts and Donna Quinn got into an argument over whether Rewerts was a Teamster. Finally, Rewerts said all he had to do was pay up his back dues and he would be a Teamster. Miss Quinn said no, he would not. He said, if the employees wanted a union, they should get a union like the Machinists that was better suited for a plant such as theirs. She said she had already had that shoe on and did not like it, she wanted to try a new one. He said the employees must have had a hot meeting on the previous Saturday. She said she had talked the same way before the Union ever came up. He said he could bring in six other Teamsters who were truckdnvers and they would tell her the same thing . She said she did not care, she was not a truckdriver. Rewerts said, "There's two ways. You can either work without a union or not work with one." I find, in the last remark, another violative implied threat to close the plant if the Union came in. The record is unclear as to Jessie Hollie's exact role in the Urbana plant. She apparently trains and supervises the women who pack cups . In any event , in her case as well as the cases of all other persons for whose activities the General Counsel claims Respondent must bear the responsibility, Respondent had admitted that she is a supervisor within the meaning of the Act for purposes of this case. The only allegation of the complaint in which she is involved alleges that she "threatened unspecified reprisals against employees if they voted in a Union." It is based on a conversation she had with Miss Quinn around March 11 . Miss Hollie said she had heard something about the employees trying to get a union in. Miss Quinn said the employees had gotten two letters from the Company about it. Miss Hollie said they would probably get more. When Miss Quinn did not respond, Miss Hollie said, "If the employees of Solo Cup vote to get a union in here, they're the ones that are going to suffer, they're the ones that will be sorry." I find nothing illegal in this ambiguous remark. C. Section 8(a)(3) 1. Facts The facts which follow are, in my opinion, dispositive of the central issue in this case; i.e., Respondent's motive for discharging 13 Dept. 817 employees on March 21. They are based on the credited testimony of Leo Carter, Respon- dent's director of industrial relations, and Hans Schult, manager of the Urbana plant. The General Counsel would have me discredit Carter and Schult on the ground that their story is inherently incredible. However, the General Counsel has offered no evidence to controvert them. There is nothing internally inconsistent in their story. Their demeanor on the witness stand impressed me as that of truthful men. Company records relating to high indirect labor costs at the Urbana plant corroborate them. The unsworn statement of Richard Pincus, Respondent's attorney , about his role in connection with the R case and the advice he gave when picketing began also corroborates them . And, finally, I see nothing inherently incredible in a plant dictatorially run by an absent owner who substitutes taped for written reports and eschews written memoranda of what he is doing and .why. Therefore , I find: L. J. Hulseman , Respondent 's founder , sole owner, and president , runs all of Solo Cup Company's seven plants with an iron hand from his home in Los Angeles. His son, John Hulseman , is Respondent 's vice president-manufac- turing and makes his headquarters at Solo Cup Company's plant in Baltimore . He has immediate high-level supervi- sion over the Urbana plant. As the major projects required to convert the Urbana building from Magnavox 's production needs to Respon- dent's began to be completed in the fall of 1972, L. J. Hulseman began to question the large expenses for employees classified as building maintenance . He raised these concerns with Schult as early as November 1972 and with Carter as early as December . Both Schult and Carter also discussed the problem with John Hulseman during this period . Schult managed to win more time by arguing that there were sufficient odds and ends still to be cleaned up to justify the large staff . At the same time , he tried, with John Hulseman 's approval , to hurry up the process of attrition among the ranks of building maintenance employ- ees by posting available production jobs in the plant. However , since , admittedly , Schult did not tell anyone, even McGrath , the plant personnel director , or Goebel, the plant engineer, that a mass reduction of the building maintenance ranks might be in the offing, no building maintenance employees asked for transfers to production jobs because such transfers would have involved a cut in pay. (Similarly, Schult, admittedly, made no announce- ment to the employees when the plan to transfer the corporate machine shop from Chicago to Urbana was abandoned in the late summer or early fall of 1972.) In the first half of February, L. J. Hulseman told Schult that the high overhead for building maintenance could not go on. John Hulseman visited Urbana on February 14 and 15 and told him the same thing. The matter finally came to a head when, on February 16, January figures on the Urbana plant became available in Chicago. They showed an operating loss of $57,276 for the month and a "controllable variance" of $17,703 attributa- ble to Dept . 817; i.e ., Dept . 817 had cost Respondent $17,703 more in indirect labor costs in January than it should have . This report was forwarded to L. J . Hulseman in Los Angeles in the ordinary course of business. Carter received a telephone call from L . J. Hulseman on Friday, February 23. Hulseman ordered Carter to get together with John Hulseman and do something about Urbana. Carter called John on Monday, February 26, and discussed the situation. John said he would go to Urbana and deal with the problem . Schult also heard again from L. J. Hulseman early that week about John 's impending visit and the reason for it. John Hulseman was in Urbana on February 28 and SOLO CUP COMPANY 983 March 1. On the first day, John told Schutt that he had to reduce Dept. 817 by a mass discharge . Schutt asked for a chance to sleep on it . The next day he agreed. John decided that he could retain four building maintenance employees and one machinist . The discharges were to be carried out at the end of the workweek the following afternoon,. March 2. John returned to Baltimore on March 1. On the morning of March 2, Schutt received the Charging Party's demand letter, as already found in section A above. This was the first moment; also as already found, that Respondent became aware of any union activities in the Urbana plant . Schult telephoned Carter in Chicago. He told Carter about the letter and the decision to discharge 13 employees that afternoon. Carter countermanded. the order to discharge the employees . He immediately tele- phoned Respondent's attorneys in Chicago and told them what had happened. The attorneys advised him not to discharge any employees in light of the receipt of the demand letter . The attorneys gave Carter the wording of a reply to the Charging Party's demand. Carter telephoned John Hulseman in Baltimore and explained what had happened. John concurred in the decision not to discharge anyonethat day. Carter went to Urbana on Saturday, March 3, as already found in section A above. The reply to the Charging Party dictated by Respondent 's attorneys was typed and mailed and the supervisors ' meeting was held . The thrust of the meeting was , first, to ask if any of the lower level supervisors knew anything about the Union 's campaign (all denied knowledge) and, second , to prepare them for the pre-Board election campaign Respondent anticipated. As expected, a copy of the Charging Party's petition in Case 38-RC-1329 arrived at the Urbana plant from the Board's Peoria office on Monday morning, March 5. On March 5, Carter conferred again with Respondent's attorneys and with John Hulseman. It was agreed to hold the discharges in abeyance pending the outcome of the R case. On March 6 , Carter conferred with Richard Pincus, the member of the law firm who handled the matter for Respondent from that point forward. In view of the fact that only 9 of an anticipated 100 cup machines were in operation in the Urbana plant , Pincus suggested a strategy of seeking a quick administrative dismissal from the Board on the ground of expanding unit . It was decided to follow this course of action . Carter informed L. J. Hulseman of the decisions reached. Hulseman reluctantly agreed to hold the discharges in abeyance. John Hulseman and Carter were in Urbana on Wednes- day and Thursday, March 14 and 15. They and Schutt discussed the entire situation , including the decision reached on March 1 to discharge, 13 Dept. 817 employees. They decided to offer production jobs to the men they discharged in order of seniority as long as any production jobs were available. They decided to further reduce indirect labor costs by terminating the draftsman and Goebel. They also decided that the janitorial work would be contracted out. Pincus arrived in Urbana late on March 15. He worked with Schutt in preparing an affidavit to support , a motion to dismiss the petition in Case 38-RC-1329. He handcarried motion and affidavit to Peoria on the afternoon of Friday, March 16, and delivered them to the Subregional Officer-in-Charge. The Subregion- al Officer-in-Charge indicated; there was little likelihood of the motion being granted . Pincus returned to Chicago and telephoned Carter from his home in the late evening of March 16. He told Carter of - his visit to the Peoria Subregional ;Office and the dim prospect for a speedy resolution of the R case. Carter reported to John Hulseman on Monday, March 19, and to L. J. Hulseman on Tuesday, March 20, what he had learned from Pincus on March 16. L. J. Hulseman ordered him to carry out the decision to cut down indirect labor costs by discharging Dept. 817 employees without further delay. Carter telephoned Schutt on March 20 and told Schutt he was ,coming to Urbana the next morning to carry out L. J. Hulseman's orders. Carter went to Urbana on the morning of Wednesday, March 21, as arranged. When he arrived at the plant he discovered the pickets who had appeared that morning for the first time . He talked to Schutt about the' situation. He called Respondent's attorneys in Chicago and John Hulsernan in Baltimore to report what ' had happened. (Later that morning Pincus advised Carter that, in view of the fact a petition for an election had been filed , there was little prospect of resolving Respondent 's problems speedily by resorting to the provisions of Section 8(b)(7) of the Act.) Finally,' he talked to L. J. Hulseman around 9 : 30 a.m. He asked Hulseman to rescind his discharge ,:order and give him more time to resolve the R case situation without generating unfair labor practice charges . Hulseman flatly refused. He ordered Carter to carry out the discharges immediately. Carter relayed L. J. Hulseman 's order to Schutt. Schutt obtained a list of Dept. 817 employees. Following seniority and John Hulseman's March 1 decision that four building maintenance employees and one machinist would be retained, he and Carter selected the 13" discriminatees named in the complaint in -this case for discharge. They decided to let them go near the end of their shift that afternoon. They decided to reverse John Hulseman's and Schutt's March 15 decision to offer available production jobs to them in order of seniority because they were afraid that the Charging Party's picketing might close or cripple the plant. That afternoon, the 13 men were discharged in the manner set forth in section A above. 2. Analysis and conclusions The General Counsel's theory is that Respondent discharged 13 employees on March 21 to counter 'the Charging Party's organizing campaign. He explains the singling out of Dept. 817 by the fact that the organizing campaign started and had its greatest - support among the building maintenance men. He explains the persons selected and the fact that the selections were in order of seniority on the theory that all persons junior to Patrick Lamanske were ,terminated in order to reach Lamanske, the leader of the campaign. He counters Respondent's economic arguments with the fact that the discharges were precipitate and in the middle of the workweek at a time when much of the same type of .work the discharged employees had been doing since they were hired remained to be done. He finds the immediate explanation for the fact 984 DECISIONS OF NATIONAL LABOR RELATIONS BOARD that the discharges occurred on March 21 in the fact that picketing began that morning. There is considerable support in the record for such a theory. The campaign did start and have its greatest support among the building maintenance men. Lamanske was the leader . The' fact that no one in the plant below the level of Hans Schult, the plant manager, knew anything about the discharges until a few hours before they took place-in the middle of a workweek is highly suspicious and, when coupled with the fact that picketing began that day, a strong indicium of discriminatory motivation. There was, in fact, still work to be done . To take the most glaring example out of the numerous items the parties haggled over, a large part of the floor still needed to be refinished. This was one project which the building maintenance men had handled in .its entirety from, the beginning . When the vinyl tiles which Magnavox had on the floor were removed, a black mastic remained. This had to be removed with a strong solvent and the floor resealed. The work was done a section of the plant at ' a time in preparation for machinery as it arrived. Since only a small percentage of the machinery had arrived at the plant by March 21, the building maintenance men had not yet gotten around to refinishing large, areas which were still unoccupied. Other renovation projects on' which the building maintenance men had ' been working, while apparently less extensive than this one, did still have varying amounts of work left to be done. (Still others had been completed.) And, of course, the routine repetitive chores which building maintenance men normally do such as changing burned out light bulbs and servicing such, equipment as the air-conditioning system continued from day to day. (As to routine maintenance, it seems to me, the General Counsel's argument that the amount of this work would, but for rrthe discriminatory motive, have caused Respondent to keep a large staff of building maintenance men is self-defeating. There is no evidence that such routine work has not been done satisfactorily since March 21 by the men retained. Although the point is somewhat unclear in the record, apparently staffs comparable in size to the one retained at the Urbana plant suffice for routine maintenance work at Respondent's other, fully operative plants.) There are other indicia of discriminatory motive. The transfer of Samuel Francis to a job where he would have little contact with other employees and the transfer of Robert Tharp back to the first shift where he could not solicit third-shift employees to support the Union shortly after union activity began fall into this category. (Another such item , relied on by .,the _ General Counsel does not. Respondent does-not dispute that supervisors began taking their coffeebreaks in the cafeteria rather than in the plant office . around the time union activities began . However, there is no evidence of any attempt to spy'on breaktime union activities . And there is no evidence to counter Respondent's explanation that it removed . the coffeepot from the 'plant office at this time because of employee complaints they were being discriminated against in that they had to go all, the way to the mezzanine-level cafeteria for coffee on their breaks while supervisors did not.) So do the incidents as to which I have already found violations of Section 8(axl) of the Act in which Foremen Walker and Hurst told employees that the discharges were for union activities. So does the fact. hat none of the men discharged was told he was being hired for a temporary job. So does the fact no production jobs were offered to them at the time of their discharges even though the production part of the unit was in an. =expanding phase . On the basis of ' all these factors I would have . no hesitation in finding a violation of Section 8(a)(3) if it were not for the testimony of Carter and Schult as to the evolution and, especially, the timing of the decision to discharge. The point on which this case turns is the time at which Respondent learned that union activities had begun in the plant . Knowledge on the part of even the lowest level supervisor would be sufficient to impute knowledge to Respondent . However, there is absolutely no evidence in the record , for example, testimony from an employee that he was observed by a supervisor while signing up another employee or even overheard by a supervisor while talking about the Union, in the period from February 23, when union activities began , to March 2, when, Respondent received the Charging Party's demand letter. Therefore, there is no finding possible but that Respondent, as it claimed, had no knowledge of union activities prior to March 2. Since, on the credited testimony of Carter and Schult I have found final decisions with respect to. the discharges, including the number and job classifications of employees to be discharged, were made on March 1, it follows that Respondent could not have been influenced in any degree by, the : union activities of its employees in reaching the decision to discharge. Since I have also credited Carter and Schulz, as corroborated by company records, as to why Respondent did decide on March 1 to reduce Dept. 817 ' so drastically, it follows that the discharges were for economic reasons and not for reasons discriminatory within the meaning of Section 8(a)(3) of the Act. When the credited testimony of Carter and Schult is thrown into the scales, the evidence which the General Counsel relies on has little weight . As to the renovation work still to be done, Respondent's explanation that it decided to reduce indirect labor costs by discharging Dept. 817 employees reasonably explains why work was left undone. As to the precipitate nature , of the discharges, Carter's and Schult's explanation of how they deferred the discharges from March 2 until March 21 in an effort to avoid trouble only to be preemptorily overruled in the end by L. J. Hulseman reasonably explains the course of events. The nature of Hulseman's control of Respondent reasonably explains the fact that the discharges came as a surprise on March 21 even to persons in the -plant as high as the - personnel director. By the same " token, the statements of Walker and Hurst that the discharged men would still be working if they had not engaged in union activities have no significance . Both were at the lowest supervisory level in the plant . Neither was privy to the decision to discharge.; Respondent's explanation that it changed its mind about offering production jobs to some of the men because . it feared the effect of the Charging Party's picketing is reasonable. I credit its explanation that it took Francis off troubleshooting work and turned it over to Clifford Allen because it wanted to be sure Allen, who SOLO CUP COMPANY 985 had recently returned from sick leave and was under a doctor's restrictions , could do the work satisfactorily and because it wanted to use Francis' admittedly great skills as an electrician on the difficult job of eiring the padlocker. (I find especially significant in Respondent's favor the fact that it followed seniority in selecting employees for discharge even to the point of retaining Clifford Allen and letting Francis go although Allen was, at the time, terminally ill.) I credit Respondent's explanation that Tharp was transferred back to the first shift because he was not performing satisfactorily as an electrician on the third. Finally, as to what was told the men when they were hired, they were treated like persons being hired for permanent jobs at that time because they were, in• fact, being hired.for permanent jobs . Being hired for a permanent job, however, does not carry with it a guarantee of lifetime employment no matter how much ; the situation changes. Therefore, I find the General Counsel has failed to sustain the burden of proving by a preponderance of the evidence that Respondent was motivated by the union activities of its efployees when , on March 21, 1973, it discharged Arnold Allen , David Bridwell , Mike Demlow , Dennis Elkins, Everett Fagner, Samuel Francis , Ronald Frields, Patrick Lamanske, James •Rlihnow, Richard Stahl , Robert Tharp, Orville Williams, and Arthur White . Since Respondent was economically and not discriminatorily motivated, it did not violate Section 8(aX3) and (1) of the Act. Upon the foregoing findings of fact and upon the entire record in this case, I make the following: CONCLUSIONS OF LAW 1. Solo Cup Company is an employer engaged in commerce within the meaning of Section 2(6) and (7) of the Act. 2. International Brotherhood of Teamsters, Chauffeurs, Warehousemen & Helpers of America , Local No. 26, is a labor organization within the meaning of Section 2(5) of the Act. 3. By interrogating employees about their union activi- ties, by threatening to close its plant, to discharge employees, and to end their benefits if employees organize for purposes of collective bargaining, and by attempting to surveil employees engaged in union activities, Respondent has violated Section 8(axl) of the Act. 4. The aforesaid unfair labor practices are unfair' labor practices affecting commerce within the meaning of Section 2(6) and (7) of the Act. 5. The allegations of the complaint that Respondent violated Section 8(a)(3) and ( 1) of the Act on March 21, 2 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 iti findings, conclusions, and Order, and all objections thereto shall be deemed waived for all purposes. 1973, by discharging Arnold Allen , David Bridwell, Mike Demlow, Dennis Elkins , Everett Fagner, Samuel Francis, Ronald Friolds , Patrick Lamanske, James Ruhnow, Rich- ard Stahl, Robert Tharp , Orville.. Williams, and Arthur White have not been sustained 'Upon the basis . of the foregoing findings of fact, conclusions of law, and the entire record in thisproceed- ing, and puisuant 'to` ection 10(c) of the Act, I hereby issue the following recommended: ORDER2 Solo Cup Company, its officers, agents, successors, and assigns, shall: 1. Cease and desist from: (a) Interrogating employees about their union activities. (b) Threatening to close its plant, to discharge employ- ees, and to end their benefits if employees organize for purposes of collective bargaining, (c) Attempting to surveil employees engaged in union activities. (d) In any like or related manner interfering with, restraining, or coercing employees in the exercise of rights guaranteed in Section 7 of the Act. 2. Take the following affirmative action necessary to effectuate the policies of the Act: (a) Post at its plant in Urbana, Illinois, copies of the attached notice marked "Appendix." s Copies of said notice, on forms ,provided by the Officer- in-Charge of Subregion 38, after being duly signed by Respondent's authorized representative, shall be posted by it immediate- ly upon receipt thereof, and be maintained by it for 60 consecutive days thereafter, in conspicuous places , includ- ing all places where notices to employees are customarily posted. Reasonable steps shall be taken by Respondent to insure that said notices are not altered , defaced, or covered by any other material. (b) Notify the Officer-in-Charge of Subregion 38, in writing, within 20 days from the date of this Order, what steps Respondent has taken to comply herewith. IT IS FURTHER ORDERED that the complaint be dismissed insofar as it alleges Respondent violated Section 8(aX3) and (1 ) of Act on March 21, 1973, by discharging Arnold Allen, David Bridwell, Mike Demlow, Dennis Elkins, Everett Fagner, Samuel Francis, Ronald Frields , Patrick Lamanske, James Ruhnow, Richard Stahl, Robert Tharp, Orville Williams, and Arthur White and insofar as it alleges independent violations of Section 8(axl) of the Act not specifically found herein. 3 In the event that the Board's Order is enforced by a Judgment of a United States Court of Appeals, the words in the notice reading "Posted 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." Copy with citationCopy as parenthetical citation