The Press Co., Inc., and The Gannett CompanyDownload PDFNational Labor Relations Board - Board DecisionsJul 18, 193913 N.L.R.B. 630 (N.L.R.B. 1939) Copy Citation In the Matter of THE PRESS Co., INC., AND THE GANNETT COMPANY and TRI-CITY NEWSPAPER GuILn OF ALBANY , TROY AND SCHENEC- TADY, NEW YORK Case No. C-645.-Decided July 18, 1939 Newspaper Publishing Industry-Employer: Parent corporation of employees of subsidiary : upon basis of unified ownership , management , direction and control of labor and business policies-Interference, Restraint , and Coereton:- surveillance of union meetings and activities ; expressed opposition to union ; ordered , to cease surveillance of union meetings and activities-Discrimination: with respect to hire and tenure of employment : discharges of three employees upon curtailment of staff after merger of two papers , for union membership and' activities ; dismissed as to two employees ; with respect to terms, conditions and tenure of employment : professional demotion of one employee inducing resig- nation and amounting to constructive discharge after curtailment of staff upon merger of two papers, because of union membership and activities ; similar allegations dismissed as to one employee-Reinstatement Ordered-Back Pay: awarded : discriminatorily discharged employees. Mr. Lester M. Levin, for the Board. Mr. Elisha Hanson, of Washington, D. C., for the respondent The Press Co., Inc. Hubbell, Taylor, Goodwin, Nixon & Hargrave, by, Mr. T. C. Ninon, of Rochester, N. Y., for the respondent Gannett Co., Inc. - Mr. A. J. Isserman, of New York City, for American Newspaper Guild. Mr. Johan T. DeGraff, of Albany, N. Y., for Tri-City Newspaper Guild. Mr. Vincent A. Burns, of counsel to the Board. DECISION AND ORDER STATEMENT OF THE CASE Charges and amended charges having been filed by Tri-City News- paper Guild of Albany, Troy and Schenectady, New York, herein called the Guild, the National Labor Relations Board, herein called the Board, by Elinore M. Herrick, Regional Director for the Second Region (New York City), issued and duly served its complaint dated August 13, 1937, against The Press Co., Inc., Albany, New York,. 13 N. L. R. B., No. 72. 630 - ' THE PRESS COMPANY, INCORPORATED 631 herein called the respondent Press Co., and against the Gannett Co., Inc.,' Rochester, New York, herein called the respondent Gannett Co., said respondents being herein collectively called the respondents, alleging that the respondents had engaged in and were engaging in unfair labor practices affecting commerce, within the meaning of Section 8 (1) and (3) and Section 2 (6) and (7) of the National Labor Relations Act, 49 Stat. 449, herein called the Act. A copy of the com- plaint and notice of hearing thereon were 'duly served upon the respondents and the Guild. Concerning the unfair labor practices, the complaint alleged, in substance, that the respondent Gannett Co. owns 100 per cent of the stock of the respondent Press Co. and completely dominates and controls all of the activities of the latter including its labor policies; that the respondents, by their officers and agents, discharged on or about June 30, 1937, from their Albany office of the "Knickerbocker Press," Austin J. Scannell, John Wanhope, Henry Christman, Richard Jackson, John Andrews, and Frank Mahan, and refused them employment upon the merger of the "Albany Evening News" and the "Knickerbocker Press" for the reason that they applied for membership in and assisted a labor organization known as the Tri- City Newspaper Guild of Albany, Troy and Schenectady, New York, and engaged in concerted activities with other employees of the re- spondents for the purpose of collective bargaining and other mutual .aid and protection; that the respondents refused and have continued to refuse to reinstate the said individuals ; that the respondents at their said Albany office, from on or about April 1937, down to and including the date of the issuance of the complaint, have urged, per- suaded, and warned their employees at said Albany office to refrain from becoming or remaining members of the Guild and have threat- ened said employees with discharge and other' reprisals if they became or remained members thereof, and have kept under surveil- lance the meetings and meeting place of said Guild members em- ployed at said Albany office of the respondents; that the respondents by such acts, and by threats, promises, and acts of intimidation, have interfered with, restrained, and coerced their employees in the ex- ercise of the rights guaranteed in Section 7 of the Act. On August 24, 1937, the respondents filed separate answers to the complaint. The respondent Press Co. admitted in its answer certain allegations concerning its corporate structure and business but de- nied that it was engaged in interstate commerce within the meaning of the Act, denied the respondent Gannett Co.'s alleged control of the respondent Press Co., denied that it had engaged in or was en- ' This respondent was incorrectly designated as The Gannett Company in certain pleadings . ' The error was corrected by motion at the hearing. 632 DECISIONS OF NATIONAL LABOR RELATIONS BOARD gaging in the unfair labor practices alleged in the complaint, affirma- tively pleaded that the discharges were due only to the necessity of curtailing its employment force by reason of the merger of two of its papers, and alleged that the proceeding instituted by the com- plaint was in violation of the rights guaranteed under the First and Fifth Amendments to the Constitution of the United States. The respondent Gannett Co. in its answer admitted certain parts of the complaint as to the corporate structure of the respondents, but denied that it is engaged in commerce within the meaning of the Act, denied that it is an "employer" within the meaning of the Act with respect to the individuals mentioned or described in the com- plaint or any other member of the Guild, denied that the Guild is a "labor organization" within the meaning of the Act, and averred that the institution of these proceedings was' repugnant to the pro- visions of the First and Fifth Amendments to the Constitution of the United States, and finally asked that the complaint be dismissed. Pursuant to notice, a hearing was held at Albany, New York, on October 25 to 26, and December 13 to 20, 1937, and January 17 to 21, 1938, before George Bokat, the Trial Examiner duly designated by the Board. The Board, the respondents, and the Guild were repre- sented by counsel. Full opportunity to be heard, to examine and cross-examine witnesses, and to introduce evidence bearing upon the issues was afforded all parties. At the opening of the hearing, the attorney for the Board moved to amend the complaint (a) by strik- ing the name of Frank Mahan, (b) by substituting in Paragraph 9 the date "September 1935" in place of "April 1937," (c) by includ- ing two additional paragraphs which alleged "that on or about July 1, 1937, the respondents did order and direct Ray Mowers and Jo Leonard to perform such onerous duties which were so inferior to the work to which they had been accustomed as to compel them on or about October 1937 to resign; that the respondents gave said inferior assignments to said individuals because they joined and assisted the union." These three motions to amend were granted and the Trial Examiner allowed the respondents a reasonable period in which to file amended answers. Each of the respondents filed an amended answer in which it denied the allegations as to Ray Mowers and Jo Leonard. At the opening of the hearing the respondents moved to dismiss for lack of jurisdiction. During the hearing and at the close thereof the motion to dismiss on jurisdictional grounds was again renewed and also the motion to dismiss on constitutional grounds as set forth in the answer of the respondents. The Trial Examiner reserved ruling on these motions. At the outset of the hearing counsel for the respondent Gannett Co. moved to dismiss the complaint on the THE PRESS COMPANY, INCORPORATED 633 ground that the respondent Gannett Co. was not an "employer" within the meaning of the Act of those employees mentioned in the complaint. This motion was denied by the Trial Examiner. His ruling is hereby affirmed for reasons hereinafter stated.2 At the con- clusion of the hearing, the Board's attorney moved to amend the pleadings to conform to the proof, which motion was allowed. The ruling is hereby affirmed. During the course of the hearing the Trial Examiner made a number of rulings on other motions and objections to the admission of evidence. The Board has reviewed these rulings and finds that no prejudicial errors were committed. The rulings are hereby affirmed. On May 12, 1938, the Trial Examiner filed his Intermediate Report, in which he denied the respondents' motions to dismiss and found that the respondents had engaged in and were engaging in unfair labor practices in that they had discriminatorily discharged Austin J. Scannell, John Wanhope, and Henry E. Christman, but dismissed the complaint as to Richard Jackson, John Andrews, Jo Leonard, and Ray H. Mowers. He recommended that the respondents cease and desist from the unfair labor practices and reinstate with back pay the employees found to have been discriminatorily discharged. On May 28, 1938, the Guild, and on June 1, 1938, each of the respond- ents filed separate exceptions to the Intermediate Report and to the various rulings of the Trial Examiner. On July 19, 1938, the Guild and the respondents presented oral arguments thereon before the Board in Washington, D. C. The Board has considered the excep- tions of the respondents and of the Guild to the findings, conclusions, recommendations and rulings of the Trial Examiner, but, save for those exceptions which are consistent with the findings, conclusions, and order set forth below, finds them to be without merit. Upon the entire record in the case, the Board makes the following: FINDINGS OF FACT I. THE BUSINESS OF THE RESPONDENTS The respondent Press Co., a New York corporation with its princi- pal office and place of business at Albany, New York, is a subsidiary of the respondent Gannett Co., engaged in the publication and dis- tribution of an afternoon newspaper in Albany, New York. All the respondent Press Co.'s outstanding common or voting stock and 50 per cent of the outstanding preferred stock are owned by the respond- ent Gannett Co. The latter owns and controls a majority of the capital or voting stock of various corporations which in turn own 2 Section I, infra. 634 DECISIONS OF NATIONAL LABOR RELATIONS BOARD and publish approximately 19 newspapers 8 The respondent Gan- nett Co. also owns stock in a corporation engaged in radio broad- casting. Frank E. Gannett, Frank E. Tripp, and H. W. Cruick- shank, are president, vice president, and secretary, respectively, and directors of each of the respondents. In his Intermediate Report the Trial Examiner found that the respondent Gannett Co. was a proper respondent and that the respondent Press Co. "was not completely autonomous but rather an 8 According to reports and schedules filed with the Securities and Exchange Commis- sion on April 19, 1937, the Gannett Co., Inc., controls the following corporations : (a) Wholly owned Subsidiary Companies-Consolidated: f Elmira Star -Gazette, Inc. Ithaca Journal-News, Inc Northwestern Publishing Company. The Press Co., Inc. The Saratogian, Inc. (b) Controlled Companies-Not Consolidated : The Beacon News Co, Inc. Elmira Star-Gazette, Inc. The Hartford Times, Incorporated. Malone Telegram, Inc. The Newburgh News Printing and Publishing Co. Ogdensburg Publishing Co, Inc. Plainfield Courier-News Co. Utica Observer-Dispatch, Inc. W. H. E. Co., Inc. A portion of a supplement filed on September 3, 1936, to a registration statement filed with Securities and Exchange Commission on June 27, 1936, by Gannett Co., Inc, states : "The Company and its subsidiaries publish 18 newspapers , of which 13 are daily, 1 Sunday , and 4 daily and Sunday, distributed in 13 cities located in the States of New York, New Jersey, Connecticut and Illinois, and operate one broadcasting station and supply practically all the programs for another broadcasting station, both such stations being located in New York State. These are as follows New York State : Albany Knickerbocker-Press (Daily). Albany Knickerbocker-Press (Sunday). Albany Evening News. Beacon News. Newburgh News. Elmira Star-Gazette. Elmira Advertiser. Elmira Telegram ( Sunday). Ithaca Journal Malone Telegram. Ogdensburg Journal. Rochester Democrat and Chronicle (Daily). Rochester Democrat and Chronicle (Sunday). Rochester Times-Union. The Saratogian. Utica Observer-Dispatch (Daily) Utica Observer-Dispatch (Sunday). Utica Daily Press. wHEC, Rochester ( owned and operated by WHEC, Ire ). WESG, studio at Elmira operated by Elmira Star-Gazette, Inc. Connecticut : Hartford Times. Illinois : Danville Commercial-News (Evening-average 5-day week). Danville Commercial-News (Saturday only). Danville Commercial-News ( Sunday). New Jersey : Plainfield Courier-News. THE PRESS COMPANY, INCORPORATED 635 integral part of the parent organization and subject to its control, both as to its labor and business policy." The respondents except to these findings. We have found that the respondent Gannett Co. owns the voting stock of the respondent Press Co. and that the same individuals are president, vice president, and secretary, and directors of each respondent. In addition to the afore-mentioned stock ownership and substantial identity of officers and directors, the record establishes and we find that the respondent Gannett Co. directs and controls the labor and business policies of its operating subsidiary, the respond- ent Press Co., which functions as and is an integral part of the Gan- nett newspaper chain. The respondent Gannett Co.'s direction and control of the major incidents of employment of the employees here involved is manifest from the activities of both respondents, more fully discussed in Section III infra. The extent and character of the direction and control exercised by the parent organization is other- wise evidenced by the proceedings at the 1937 spring conference of editors of the Gannett, Newspapers, held in Rochester, New York.4 At this conference the management outlined for the assembled editors its views on problems relating to labor relations, advertising, pro- duction costs, and other subjects of concern in the operation of its newspapers, and "Clinics" 8 or group discussions participated in by the editors and "Central Office" 6 personnel were held. The respondents contend that each corporate entity is completely Autonomous and direct our attention to the testimony of A. J. Mc- Donald, publisher of the respondent Press Co.'s Albany newspapers and treasurer and director of that corporation, in support of this contention. While McDonald asserted such autonomy in his testi- mony, the record in its entirety does not support the assertion? Section 2 (2) of the Act provides that the term "employer" as used in the Act ". . . includes any person acting in the interest of an employer, directly or indirectly . . ." Section 2 (1) of the Act pro- vides "The term `person' includes . . . corporations . . ." On the 4 These proceedings were reported in the June 10, 1937, issue of a Gannett publication entitled "The Bulletin " published at Rochester , New York, for executives of the Gannett newspapers. So denominated in "The Bulletin." The respondents except to the Trial Examiner ' s use of this term In his Intermediate Report , yet the designation is used in "The Bulletin " I In his negotiations with the Guild with reference to an agreement covering wages, hours, and working conditions , hereinafter discussed , McDonald repeatedly disclaimed authority to take definitive action and reiterated the necessity to take such matters up with "Rochester ." In their exceptions the respondents interpret McDonald 's reference to "Rochester" to mean that McDonald was merely stating the necessity to confer with the executive officers of the respondent Press Co. who had their offices in Rochester, N. Y. We are not persuaded by this explanation because it Ignores the dual capacities of the policy-making executives who were officers of each respondent and the realities of the relationship between the respondents as otherwise evidenced. 636 DECISIONS OF NATIONAL LABOR RELATIONS BOARD basis of the unified ownership, management and control we find that the respondent Gannett Co. acts directly and indirectly for the respondent Press Co. and that the respondent Gannett Co. is an employer of the employees here involved.' The respondent Press Co. owns, prints, publishes, and distributes a newspaper known as the "Knickerbocker News" each weekday afternoon throughout the year. Prior to July 1, 1937, it published a morning newspaper known as the "Knickerbocker Press" seven mornings a week and an afternoon newspaper each weekday after- noon known as the "Albany Evening News." It abandoned the morning and Sunday field on July 1, 1937, and from July 1 to August 1, 1937, it published a weekday afternoon newspaper only, known as the "Knickerbocker and Albany Evening News." On August 1, 1937, the name of the respondent Press Co.'s one newspaper was changed to the "Knickerbocker News." During the month of June 1937 the "Knickerbocker Press" had an average daily circulation of 34,001, of which 2.3 per cent was circu- lated outside the State of New York. During the same month the "Sunday Knickerbocker Press" had an average circulation of 40,333 of which 3.3 per cent was circulated outside the State of New York. In June 1937 the "Albany Evening News" had an average circulation of 41,614, of which 3 per cent was circulated outside the State of New York. During the month of July 1937, the "Knickerbocker Press-Albany Evening News" had an average circulation of 56,789, of which 3 per cent was circulated outside the State of New York. During the month of September 1937, the "Knickerbocker News," which was the one newspaper published by the respondent Press Co. during that month, had an average circulation of 55,875, of which 1 per cent was circulated outside the State of New York. During the year ending September 1936 the "Sunday Knicker- bocker Press" had an average circulation of 48,838, of which 47,464 copies were delivered in the State of New York, 413 copies in the State of Massachusetts, 895 copies in the State of Vermont, and 66 copies in all other States." The daily "Knickerbocker Press," for the year ending September 30, 1936, had an average circulation of 31,584, of which total 31,098 copies were circulated within the State of New York, 165 copies in the State of Massachusetts, 252 copies in the State 8National Labor Relations Board v . Wm. Randolph Hearst, at at. (C. C . A. 9th) decided March 23, 1939 , 102 F. (2d) 658; see also National Labor Relations Board V. Christian A. Lund, doing business as C. A. Lund Co. and Northland Ski Manufacturing Co. (C. C. A. 8th) decided May 10, 1939, 103 F. (2d) 815; National Labor Relations Board v. Pennsylvania Greyhound Lines, Ino., 303 U. S. 261 ; Consolidated Edison Co. V. National Labor Relations Board, 305 U. S. 197. 9 The circulation figures in this paragraph are based upon the Audit Bureau of Circulation Reports. THE PRESS COMPANY, INCORPORATED 637 of Vermont, and 69 copies in all other States. For the same period, "Albany Evening News" had a circulation of 46,759, of which total 44,953 copies were circulated in the State of New York, 122 copies in the State of Massachusetts, 1,647 copies in the State of Vermont, and 37 copies in all other States. The cost of newsprint paper, ink, and type metal represents about 90 per cent of the raw material cost. The cost of newsprint paper and ink alone, depending on the market, will range from 10 per cent to 30 per cent of the cost of production of the newspaper. From January 1 to July 31, 1937, the respondent Press Co. purchased 5,870 000 pounds of newsprint paper of the value of $123,700. More than 90 per cent of this amount, in dollar value, came from mills located in Canada. During the same period 100,000 pounds of ink, valued in excess of $3,000 was shipped to the respondent Press Co. at Albany, New York, from Rutherford, New Jersey. The respondent Press Co. is a member of the Associated Press, a corporation engaged in the collection and interchange of information and intelligence for publication in newspapers, both in the United States and foreign countries. This membership entitles the respond- ent Press Co. to news secured by the Associated Press from sources throughout the United States and from foreign countries. The Asso- ciated Press in turn receives the exclusive use for publication of all local news and of certain types of news dispatches published in the paper of the respondent Press Co. The Associated Press reports are sent to the respondent Press Co.'s editorial room and the Associated Press picks up reports to which it is entitled from the respondent Press Co., daily. The Associated Press' Albany office handles about 180,000 words a day. Prior to July 1, 1937, respondent Press Co. took about half of that report. The Albany office of the Associated Press sends out about 36,000 words a day, about 200 or 300 of which usually are taken from material furnished by the respondent Press Co. In addition to the material interchanged with the Associated Press, a great many of the respondent Press Co.'s daily features, such as syndicated articles and comic strips originated in sources outside of New York State. Between June 1, 1937, and June 30, 1937, J. P. McKinney and Son, New York City, handled 22.05 per cent of the total advertising of the "Knickerbocker Press" and "Albany Evening News," 28.81 per cent of which was paid for by agents and advertisers outside of the State of New York. The remaining advertising not handled by J. P. McKinney and Son was local. The respondent Press Co. employed 514 employees prior to July 1, 1937, and 356 employees subsequent to that date. 638 DECISIONS OF NATIONAL LABOR RELATIONS BOARD II. THE ORGANIZATION INVOLVED Tri-City Newspaper Guild of Albany, Troy and Schenectady, New York, is a labor organization affiliated with the Committee for In- dustrial Organization, admitting to membership all employees of newspapers published in the cities of Albany, Troy, and Schenectady engaged in editorial work, except supervisory employees. III. THE UNFAIR LABOR PRACTICES A. The background of the unfair labor practices The Guild was organized among the respondent Press Co.'s em- ployees either late in 1933 or early 1934. Between the date of the Guild's organization and 1936 there were conferences between the management and the Guild but no collective contract was sought. In March 1936 the Guild presented to the respondent Press Co. a proposed, contract relating to all editorial department employees. Negotiations on the proposed contract continued from March 1936, until February 1937. In these conferences the management was represented by the publisher, first Arthur D. Hecox, and then his successor, A. J. McDonald, by B. J. Lewis, the editorial director, and by M. V. Atwood, known as the associate director of the Gannett newspapers, who came from Rochester for several of the conferences. At each conference in which he participated, McDonald informed the Guild committee that he had no power to reach a final agreement with the Guild, but that if any tentative agreement was reached he would recommend it to "Rochester" for final approval. On Febru- ary 11, 1937, a tentative agreement on certain points concerning wages, hours, and working conditions was reached with McDonald, who stated that he would recommend it to "Rochester." On February 27, 1937, McDonald met with the Guild committee and without any reference to the tentative agreement of February 11, submitted to the Guild a proposed statement of policy to be placed on a bulletin board. There was practically no similarity between the terms of this proposed statement of policy 10 and the tentative agree- ment of February 11. The proposed statement was approximately the same in form and substance as a bulletin-board statement to which the Guild had agreed with the Hearst newspaper in Albany at about the same time. On March 2, 1937, the Guild rejected McDonald's pro- posal and submitted new demands, including a demand for a closed 10 The first paragraph of this statement reads as follows : The following is a statement of the employment policy of the Press Co. for news and feature departments . This is not a contract but it is a policy in operation on these papers , reached in conferences with the negotiating committee of the Tri-City Newspaper Guild It will be continued for one year and as long as economic condi- tions justify thereafter. THE PRESS COMPANY, INCORPORATED 639 shop, together with a written protest which said in part, "the Guild now recognizes that the Press Co. tactic has been to `stall' the Guild until agreement was reached between the Guild and the opposition paper in Albany; and then to concede the Guild only as much as the opposition agreement made necessary," and furthermore, "the Guild has evidence of numerous examples of vicious efforts to destroy the Guild in the Press Co. and to intimidate its members." A copy of the protest was mailed to both Gannett and Atwood in Rochester, New York. At the same time the Guild passed a provisional strike resolu- tion setting the deadline for a favorable reply from the management for March 7, 1937. On March 2, 1937, the Guild sent telegrams to Gannett and Atwood in Rochester, informing them that a crisis had been reached in the negotiations and that a meeting with a qualified representative was necessary. On March 6, 1937, the Guild's repre- sentatives met with Cruickshank, the secretary of each of the respond- ents. The Guild committee informed Cruickshank of the negotia- tions that had taken place over the past year and accused the man- agement of persistent attempts 'at intimidation of its members. The committee also informed Cruickshank that Lewis had recently hired several new employees and accused him of hiring those employees with the understanding that membership in the Guild was frowned upon. Cruickshank replied that Gannett had no knowledge of any such in- timidation and gave his word that the alleged intimidation would stop. He stated that he could not agree to the Guild demand for a closed shop, but that if this demand were waived, a settlement could be reached. As the result of Cruickshank's assurance, the. Guild agreed to waive the closed-shop demand, provided that the respondent would communicate in writing with the three recently employed people, to assure them that they were free to join the Guild as far as the manage- ment was concerned, and that membership in the Guild would not interfere with their future advancement. On March 8, 1937, the Guild committee met with Cruickshank and McDonald, and the latter agreed to send the letters. On March 8, 1937, the respondent posted on a bulletin board a statement of policy signed by McDonald as to wages and working conditions to be effective for a year. This state- ment of policy contained substantially the same substantive provi- sions included in the Guild's tentative agreement with McDonald on February 11. B. Interference, restraint, and coercion The record leaves no doubt of the respondents' hostility and active opposition to the unionization of their editorial employees. This hostility and opposition was manifested openly in the statements and 640 DECISIONS OF NATIONAL LABOR RELATIONS BOARD acts of Byron J. Lewis, the respondent Press Co.'s editorial director, who was the official in direct charge of the editorial department em- ployees. Soon after Lewis became associated with the Albany office of the respondent Press Co., he called individual members of the staff to his desk to inquire as to their background. Wanhope, one of the individuals named in the complaint, was called, and after a short con- versation, the Guild became the topic of discussion. Lewis told Wan- hope he knew of Wanhope's connection with the Guild and asked why they had it (the Guild) and what was the need of it. Lewis stated that newspapermen could get more without the Guild; that Gannett was a fine man; that publishers generally take care of their people very well; that there was no need for newspapermen to organize and form a labor union. He (Lewis) likened the Guild to the hod carriers and bricklayers, and stated that he did not think that professional men should stoop as low as to organize a labor union. During the period of the Guild negotiations for a contract, Lewis continually protested that he could not run an editorial room and have a Guild there.11 On one occasion he stated to Mowers, another individual named in the complaint, that " `Rochester' has cut off my money because of the activi- ties of that God-damned labor union." After consummation of the agreement between the respondent Press Co. and the Guild, he stated to Scannell, another individual named in the 'complaint, "The God- damned labor union is wrecking this newspaper." B. J. Lewis was not produced by the respondents to testify and the foregoing statements attributed to him stand uncontroverted on the record. The respondents except to the Trial Examiner's failure to find the specific circumstances surrounding each of the above-mentioned statements. We have considered the evidence to which our attention is directed by the exceptions and find that it does not alter in any instance the coercive character or effect of Lewis' anti-union state- ments. We find that by those statements the respondents interfered with, restrained, and coerced their employees in the exercise of the rights guaranteed under Section 7 of the Act. The Rochester office was kept currently advised by Lewis of the Guild's activities and plans, and of the actions of individual Guild members. Alice Raymond, who was secretary to Lewis and who typed letters that he sent to Rochester, mostly to Atwood, testified in part as follows : Q. Do you know when the Guild would have its meetings? A. Usually on Sunday. Q. When would you get dictation about the Guild meeting? A. Usually on Monday. 11 Lewis' attitude toward the Guild is further revealed by the fact that in a conversa- tion with Hyde, former managing editor of the respondents ' Albany papers, Lewis alluded to members of the Guild as "Guild rats." THE PRESS COMPANY, INCORPORATED 641 Q. What would be the general nature of the dictation about the Guild meetings?- A. Relating to what went on at the meetings and what the Guild was planning. Q. Were names mentioned of particular members who took part in the meeting? A. As I recall, yes. She further testified that active Guild members, such as Janet Scott, Wanhope, and Scannell, were frequently mentioned in these letters. Information that Robert McCain, a new employee in the editorial department, would not become a member of the Guild, was considered by Lewis as entitled to special comment in a letter to "Rochester." The respondent offered no evidence to rebut Alice Raymond's testi- mony, but objected to its receipt and moved to strike it on the ground that it constituted an improper disclosure of the contents of private papers violative of the guarantees of the Fourth Amendment. The dictation which Lewis gave to his secretary does not fall within any recognized category of privileged communications and there was no infringement of constitutional guarantees in the receipt of this evidence. The record does not disclose the method by which Lewis secured his information concerning the Guild which was the subject of his Monday report to "Rochester." The respondents assert in their ex- ceptions that the Trial Examiner disregarded evidence "which over- whelmingly disproves any surveillance of the Guild by Lewis or anyone else." The evidence referred to establishes that Guild mat- ters were frequently discussed among employees about the office without effort at concealment. We are not persuaded that such evidence has any probative force with respect to the method Lewis used to obtain his information concerning Guild activities. On the contrary, the complete evidence on the point negatives any inference that Lewis' information was obtained through casual office conversa- tions accidently overheard.12 Furthermore, the fact that Lewis' re- 12 For instance , the testimony cited in support of the respondents exceptions on this point included the following : Charles Young , a non-Guild employee, who testified that he had heard conversations in the office about Guild meetings before and after they took place, stated on cross- examination : Q. From the nature of their conversation , could you relate what went on at Guild meetings? A. I could not. H. B. Kraft testified that he frequently talked over Guild meetings with other Guild members but stated that his desk was about 20 feet from Lewis' desk and that there were about 20 typewriters in the room used in relays. White, upon whom the respondents also relied, testified in part : Q. Did you ever speak about what went on at Guild meetings when Mr. Lewis was present? A. When he was in the room , but not in his hearing , to my knowledge. 642 DECISIONS OF NATIONAL LABOR RELATIONS BOARD ports usually were written on Monday morning, following a Sunday meeting of the Guild, and the fact that his reports to "Rochester" were relatively detailed in nature, convince us that his knowledge of Guild activities was obtained by espionage rather than through for- tuitous circumstances. Finally, Lewis, who was in the best position to explain the method by which he obtained this information, did not testify. We find that the respondents have kept under surveillance the meetings of the Guild and the activities of its members and have thereby interfered with, restrained, and coerced their employees in the exercise of the rights guaranteed in Section 7 of the Act. C. The discharges Events leading up to the merger On June 22, 1937, negotiations instituted in May 1937 were re- newed between the respondents and the Hearst Newspapers which resulted in the respondent Press Co. abandoning the morning and Sunday field by the sale of the "Knickerbocker Press" circulation lists to the Hearst Newspapers and in turn the respondent Press Co. purchased from the Hearst interests the evening circulation lists of the "Albany Times Union" which took over the morning and Sun- day field formerly served by the "Knickerbocker Press." On June 25, 1937, McDonald informed the department heads of the re- spondent Press Co.'s papers of the decision reached with Hearst and instructed them "to select an adequate staff from the people best qualified to serve their needs from the combined staffs of the two or three papers." 13 The number of employees to be retained was not limited by McDonald but a list of those retained was to be submitted to him for his approval. It was Byron J. Lewis, editorial director, who made the selection of the employees to be retained in the edi- torial department, although Atwood 14 collaborated with him to some extent. About midnight of June 29, 1937, a notice was posted on the bulle- tin boards of the abandonment of the "Knickerbocker Press" setting forth the names of the employees retained. Of approximately 74 editorial employees, 29 were dismissed and 45 retained. Of the 29 dismissed, 27 were members of the Guild, 6 being officers; of the 45 retained 11 were not members of the Guild. On June 30, 1937, the Guild, as a result of the merger and dismissals, passed a strike resolu- tion conditioned upon action on certain demands including a demand for reinstatement or placement of Guild members with other Gannett ' The Sunday edition was usually referred to as a separate paper. '4 Publisher McDonald stated that Atwood was not employed by the respondent Press Co., but that he "assumed" Atwood was employed by the respondent Gannett Co. THE PRESS COMPANY, INCORPORATED 643 alewspdpers. These demands were submitted to the respondents. McDonald informed the Guild that he,had no authority to, answer its demands in any way, but that he would have to take the matter up with "Rochester." The Guild committee informed McDonald "that the persons discharged were selected in an effort on the part of the -management to destroy the leadership of the Guild." There were, further negotiations between the respondents and the Guild with respect to the latter's demands, but no settlement was reached. The parties agreed upon the intervention of a mediator of the New York State Department of Labor, but the Guild refused to submit the alleged discriminatory discharges to mediation, maintaining that jurisdiction over that matter properly rested with the Board, and the projected arbitration was abandoned. The Guild filed the, charges in, this proceeding with the Board. , There is no dispute that the merger of the respondents' newspapers necessitated a reduction in staff. The one issue to be decided in con- -nection with the alleged discriminatory discharges is whether or not the union membership and activities of the individuals named in the complaint were a factor in their selection for dismissal. Before ex- amining the facts involved in each case , we shall first discuss certain material considerations applicable to all of them. First, the selection of the persons to be discharged was delegated to B. J. Lewis, who was, as we have found, actively opposed to the Guild.15 Moreover, the duty of selection was committed to Lewis despite the respondents' full knowledge of Lewis' Guild animus, which had been the subject of previous complaint by the Guild. Second, by reason of his surveillance of Guild activities, Lewis was thoroughly acquainted, not only with the Guild membership, but also with the degree of par- ticipation of the individual members and their relative importance in the affairs of the organization . Third, in the selection as made, 27 of the 29 employees dismissed were Guild members, including 6 of its 9 officers . All of those named in the complaint were active mem- bers of and office holders in the Guild. Fourth, although the duty of selecting the restricted staff devolved on Lewis alone,- and he alone was in a position to testify as to the basis upon which his selec- 15 The respondents in their exceptions question the failure of the Trial Examiner to report the negative testimony of many witnesses . For example , Flood , Jackson, Mohan, graft, and other Guild members testified that their Guild membership had not resulted in disciimination ; other witnesses testified that they had never heard of anyone being discharged for Guild membership , that Lewis had never attempted to influence any employee , and that he had never discharged anyone because of Guild activities. This negative testimony does not change in any wise our conclusions with respect to Lewis' animus toward the Guild established , as we have found, by uncontroverted evidence of his direct and flagrant interference with the respondents ' employees ' exercise of their rights under Section 7 of the Act 19 Atwood who collaboi ated with Lewis in his selections to an undisclosed extent, did mot testify. 644 DECISIONS OF NATIONAL LABOR RELATIONS BOARD tion was made, he was not offered as a witness and the natural infer- ence to be' drawn from his known bias against the Guild and the exces- sive proportion of Guild members selected for dismissal was allowed to stand without contradiction. The respondents contend that the selections were made on the 'basis of the management's judgment of the fitness and ability of the persons involved. This contention becomes meaningless because the respondents did not elect to specify their asserted basis for judgment of the relative fitness and ability of the individuals involved and thus foreclosed any objective test of the alleged criteria used." The complaint, as amended in the course of the hearing before the Trial Examiner, alleged the discriminatory discharge of Austin J. Scannell, John Wanhope, Henry Christman, Richard Jackson and John Andrews, and discriminatory treatment of two others, to wit, Ray Mowers, and Jo Leonard, resulting in their resignation from the respondents' employ. The Trial Examiner found that charges of unfair labor practice were sustained as to Scannell, Wanhope, and Christman, and recommended dismissal of the complaint as to Jack- son, Andrews, Leonard, and Mowers. No exceptions have been taken to the Trial Examiner's findings as to Jackson and Leonard, which are hereby affirmed without further opinion. We shall now proceed to a consideration of the facts involved in the discharge of the remain- ing individuals named in the complaint. Austin J. Scannell was first hired by the respondent Press Co. in 1923, as a rewrite man at $35 a week. He left Albany after several months' employment, returning as city editor of the "Knickerbocker Press" at $50 a week. After several increases in salary he was trans- ferred to the same position with the "Albany Evening News," a paper of larger circulation, at a further increase in salary. In April or May 1935, he became news editor, his salary again being increased, this time to $75 a week. During 1935, Scannell, who was a charter member of the Guild, was elected president and thereafter continued as one of its most active members. In January 1936, he was again made city editor of the "Albany Evening News." About May 1, 1937, he was transferred to the city-editorship of the "Knickerbocker Press," the less profitable of the respondent Press Co.'s newspapers, then operating on a restricted budget with a limited personnel. The transfer was later explained as an effort to bolster the staff of the "Knickerbocker Press." At the time of the merger Scannell was 14 In its exceptions , the respondent Press Co. states : "This respondent excepts to the inference of the Trial Examiner that it was required to lay before the National Labor Relations Board the basis upon which it selected one man as against the other in the situation which existed on June 30 , 1937, when it had 'to make a number of discharges in its editorial department." The respondent Gannett Co. adopted this exception in its exceptions. THE PRESS COMPANY, INCORPORATED 645 laid off. The city-editorship of the combined remaining newspaper was given to Jerome Walker, a non-member of the Guild, whom Scannell had replaced as city editor of the "Knickerbocker Press" when transferred in May in order to bolster the staff of that paper. We find that Scannell was discharged on June 30, 1937, and there- after refused reinstatement because of his union membership and activity. John Wanhope was hired as a reporter in January 1929, at a salary of $55 to $60 a week. At the time of his discharge he had had 23 years of experience and was getting $70 a week, which was above the average pay of employees in his department. Wanhope was a feature writer whose work had received frequent editorial praise and had been publicly commended by Lewis himself. In May or June 1937 Wanhope was transferred to the "Knickerbocker Press," in order, according to Lewis, to strengthen the staff. At the same time Robert McCain, a recent employee whose refusal to join the Guild had been made the subject of a communication from Lewis to "Rochester," was transferred from the "Knickerbocker Press" to the "Albany Evening News." Wanhope was the first president of the Guild and later continued as an active member. At the time of the merger in June 1937, Wanhope, the seasoned reporter, was dis- charged, while McCain, a recent employee, who had been withdrawn from the "Knickerbocker Press" when the staff of that paper needed strengthening, was retained in the respondents' employ. We find that John Wanhope was discharged on June 30, 1937, and thereafter refused reinstatement because of his union membership and activity. Henry E. Christman was hired as a reporter in 1928, at $25 a week, and in 1936 was receiving $35 a week. As a result of the Guild agreement his salary was raised to $40. Christman was a charter member of the Guild, was active on many committees and had been elected chairman of the "Albany Evening News" unit of the Guild for the year 1937. His wife, Zoe Fales, who worked for the Hearst paper in Albany, was president of the Guild during the same year. Christman was among those laid off at the time of the June merger. His duties were taken over in the main by Julius Heller. Heller had been expelled by the Guild in 1936 for non-payment of dues, and had actively opposed the Guild while in charge of the respondents' Troy office. He was transferred to Albany shortly before the merger and was retained in the respondents' employ thereafter. We find that the Guild activities of Zoe Fales, Christman's wife, were an important factor in his discharge. Fales was an active par- ticipant in representing the Guild both in negotiations with the re- spondents for an agreement and in the presentation of grievances 187930-39-vol. 13-42 646 DECISIONS OF NATIONAL LABOR RELATIONS BOARD At one of the conferences during negotiations for a Guild agree- ment, in discussing the Guild demand for an increase in wages, it was to Fales that Lewis made the statement "that he would have to fire a lot of people if that wage agreement was allowed" giving as an example the men on the copy desk. Christman worked on the copy desk. Considering the proven anti-union bias on the part of Lewis, and his disposition to replace Guild members with non- members as demonstrated in the cases of Scannell and Wanhope just discussed, the replacement of Christman, an employee of 9 years' standing in Albany, by Heller, transferred from Troy almost immediately before the merger, is too equivocal to be accepted as in good faith. We find that Christman was discharged on June 30, 1937, and thereafter refused reinstatement because of his union membership and activity. John T. Andrews was hired in April 1934, as a sports writer, at $30 a week, and received two increases in pay, earning $40 a week at the time of the merger. The sports department consisted of Young, sports editor, Flood, Danforth; and Andrews, all of whom were Guild members, and Davidson, a non-member, who had been employed by the respondent Press Co. in January 1937. At the time of the merger Young, Flood, and Danforth were retained in the sports department, Davidson was assigned to the copy desk, and Andrews was laid off. Andrews' duties were taken over by Flood, a Guild member with greater seniority. The only question as to discrimination arises with reference to the selection of Davidson rather than Andrews for the copy desk. While Andrews had greater seniority in the sports department, Davidson had more copy-desk experience. Andrews was offered a copy-desk position on a Gannett newspaper in Rochester which he declined in favor of a sports- writing job in Syracuse. We find that Andrews was not discharged because of his union membership and activity. Ray A. Mowers was hired by the respondent Press Co. in January 1928, as a rewrite man and reporter, at a salary of $45 a week. He had had 20 years' prior experience. Two subsequent raises brought his salary at the time of the merger to $55 a week. Both as a rewrite man and as a feature-story writer Mowers was considered one of the ablest men in his department. Just prior to the merger he was engaged in handling "features" and "rewrites" together with his duties as music editor with the "Sunday Knickerbocker Press" and music commentator for the "Knickerbocker News." He was retained after the merger but the character of his assignments was changed from handling important news stories to routine work on obituaries, THE PRESS COMPANY, INCORPORATED 647 the school page, and similar material, and to the preparation and delivery of two news broadcasts daily. The work assigned him was of a character commonly entrusted to young, inexperienced reporters and represented a professional demotion. Mowers was a charter member of the Guild and active in its af- fairs. After the merger, on or about October 1, 1937, he was made temporary chairman of the Guild unit. At approximately the same time Walker, the city editor, informed him that Lewis wanted him to take over the school page that year. In view of Mowers' previous experience and satisfactory record, the material alteration in his duties can be assigned only to an intent to demean his services and induce his resignation. The effort was successful and Mowers resigned in disgust at the end of October 1937. We find that Mowers' resignation was induced by the respondents' discriminatory treatment of him because of his union membership and activity and amounted to a constructive discharge.,,, We find that by discharging and refusing to reinstate Austin J. Scannell, John Wanhope and Henry Christman, the respondents dis- criminated with respect to their hire and tenure of employment, and by altering the duties of Ray Mowers to demean his services and by discharging him, the respondents discriminated with respect to his terms, conditions, and tenure of employment, thereby discouraging membership in the Guild, and interfering with, restraining, and coercing their employees in the exercise of the rights guaranteed in Section 7 of the Act. IV. THE EFFECT OF THE UNFAIR LABOR PRACTICES UPON COMMERCE The activities of the respondents set forth in Section III above, occurring in connection with the operations of the respondents described in Section I above, have a close, intimate, and substantial relation to trade, traffic, and commerce among the several States, and tend to lead to labor disputes burdening and obstructing com- merce and the free flow of commerce. THE REMEDY Having found that the respondents have engaged in unfair labor practices, we will order each of them to cease and desist therefrom and to take certain affirmative action designed to effectuate the poli- cies of the Act and to restore as nearly as possible the condition which existed prior to the,commission of the unfair labor practices. is Matter of Clover Fork Coal Company and District 19, United Mine Workers of America, 4 N. L R. B 202 , enforced in Clover Fork Coal Company v. National Labor Relations Board, 97 F. (2d) 331 (C. C. A. 0th, 1938) ; Matter of Waggoner Refining Company, etc. and International Association of Ott Field, Gas Well, and Refinery Workers of America, 6 N. L. R . B. 731. 648 DECISIONS OF NATIONAL LABOR RELATIONS BOARD We have found that Austin J. Scannell, John Wanhope, and Henry E. Christman were discharged on June 30, 1937, and Raymond H. Mowers ceased his employment about the end of October 1937 as a consequence of the respondents' unfair labor practices. We shall, therefore, order the respondents to offer them reinstatement to their former or substantially equivalent positions prior to the discrimina- tion against them with back pay. The offer of reinstatement shall be without prejudice to their seniority and other rights and privileges. The respondents will be required to pay Austin J. Scannell, John Wanhope, and Henry E. Christman, an amount equal to that which each of them would have earned as wages during the period from the date of his discharge to the date of his offer of reinstatement, less his net earnings 19 during that period, and less any severance pay which might have been given to him. Since the Trial Examiner did not find in his Intermediate Report that Raymond H. Mowers was discriminatorily discharged, the respondents could not have been expected to reinstate Mowers after they received the Intermediate Report (dated May 10, 1938) and therefore should not be required to pay back pay from that time to the date of this Decision.20 Accordingly, we will require the respondents to pay Raymond H. Mowers an amount equal to that which he would have earned as wages during the period from the date of his discharge from the respondents' employ to the date of the Intermediate Report, May 10, 1938, and from the date of this Decision to the date of his offer of reinstatement, less his net earnings 21 during those periods and less any severance pay which may have been given to him. Upon the basis of the foregoing findings of fact and upon the entire record in the proceeding, the Board makes the following : CONCLIISIONS OF LAW 1. The respondent, Gannett Co. is an "employer" of the employees here involved within the meaning of Section 2 (2) of the Act. 19 By "net earnings" is meant earnings less expenses , such as for transportation, room, and board , incurred by an employee in connection with obtaining work and working else- where than for the respondent , which would not have been incurred but for his unlawful discharge and the consequent necessity of his seeking employment elsewhere . See Matter of Crossett Lumber Company and United Brotherhood of Carpenters and Joiners of Amer", Lumber and Sawmill Workers Union , Local 2590, 8 N. L. R . B. 440. Monies received for work performed upon Federal, State , county, municipal , or other work-relief projects are not considered as earnings , but, as provided below in the Order, shall be deducted from the sum due the employee , and the amount thereof shall be paid over to the appropriate fiscal agency of the Federal, State, county, municipal , or other govern- ment or governments which supplied the funds for said work -relief projects. 20Matter of E. R. H'affeifinger Company, Inc. and United Wall Paper Crafts of North America, Local No. 6, 1 N. L. R . B. 760; Matter of Mann Edge Tool Company and Federal Labor Union No. 18779, 1 N. L. R . B. 977. 21 See footnote 19, supra. THE PRESS COMPANY, INCORPORATED 649 2. Tri-City Newspaper Guild of Albany, Troy, and Schenectady, New York, affiliated with the Committee for Industrial Organiza- tion, is a labor organization within the meaning of Section 2 (5) of the Act. 3. By interfering with, restraining, and coercing their employees in the exercise of the rights guaranteed in Section 7 of the Act, the respondents have engaged in and are engaging in unfair labor prac- tices within the meaning of Section 8 (1) of the Act. 4. By discriminating against Austin J. Scannell, John Wanhope, and Henry E. Christman in regard to their hire and tenure of employment, and against Raymond H. Mowers in regard to his terms, conditions, and tenure of employment and thereby discouraging membership in the Tri-City Newspaper Guild of Albany, Troy, and Schenectady, New York, the respondents have engaged in and are engaging in unfair labor practices within the meaning of Section 8 (3) of the Act. 5. The aforesaid unfair labor practices are unfair labor practices affecting commerce, within the meaning of Section 2 (6) and (7) of the Act. 6. The respondents have not engaged in an unfair labor practice within the meaning of Section 8 (3) of the Act with respect to Richard Jackson, John Andrews, and Jo Leonard. ORDER Upon the basis of the foregoing findings of fact and conclusions of law, and pursuant to Section 10 (c) of the National Labor Rela- tions Act, the National Labor Relations Board hereby orders that the respondents The Press Co., Inc., and The Gannett Co., Inc., and their officers, agents, successors, and assigns shall: 1. Cease and desist from : (a) Discouraging membership in the Tri-City Newspaper Guild of Albany, Troy, and Schenectady, New York, or any other labor organization of their employees, by discharging or refusing to rein- state any of their employees, or in any other manner discriminating in regard to their hire and tenure of employment or any term or condition of employment; (b) In any manner exercising surveillance over the meetings or meeting places of the Tri-City Newspaper Guild or the union activi- ties of their employees ; (c) In any manner interfering with, restraining, or coercing their employees in the exercise of their rights to self-organization, to form, join, or assist labor organizations, to bargain collectively through representatives of their own choosing, and to engage in concerted 650 DECISIONS OF NATIONAL LABOR RELATIONS BOARD activities for the purpose of collective bargaining or other mutual aid or protection, as guaranteed in Section 7 of the Act. 2. Take the following affirmative action which the Board finds will effectuate the policies of the Act : (a) Offer to Austin J. Scannell, John Wanhope, Henry E. Christ- man, and Raymond H. Mowers immediate and full reinstatement to their former or substantially equivalent positions prior to the re- spondents discrimination against them without prejudice to their seniority and other rights and privileges; (b) Make whole Austin J. Scannell, John Wanhope, and Henry E. Christman, for any loss of pay they may have suffered by reason of their discharge by payment to each of them, respectively, of a sum of money equal to that which he would have earned as wages during the period from the date of his discharge to the date of the offer of reinstatement, less his net earnings 22 and less any severance pay which might have been given to him; deducting, however, from said net earnings, monies received by him during said period for work performed upon Federal, State, county, municipal, or other work- relief projects; and pay over the amount so deducted to the appro- priate fiscal agency of the Federal, State, county, municipal, or other government or governments which supplied the funds for said work- relief projects; (c) Make whole Raymond H. Mowers for any loss of pay he may have suffered by reason of the discrimination against him by payment to him of a sum of money equal to that which he would have earned as wages during the period from the date of his discharge at the end of October 1937 until May 10, 1938, and from the date of this Order to the date of the offer of reinstatement, less his net earnings 22 during those periods, deducting, however, from said net earnings , monies received by him during said period for work performed upon Federal, State, county, municipal, or other work- relief projects ; and pay over the amount so deducted to the appropriate fiscal agency of the Fed- eral , State, county, municipal, or other government or governments which supplied the funds for said work -relief projects; (d) Post immediately in conspicuous places in the editorial depart- ment of the respondents ' Albany plant, a notice stating (1) that the respondents will cease and desist as provided in paragraphs 1 (a), (b), and (c) of this Order; (2) that employees are free to remain or become members of the Tri-City Newspaper Guild of Albany, Troy and Schenectady, New York, and that the respondents will not dis- criminate against any employee because of such membership; and (3) maintain such notices for a period of at least sixty ( 60) days from the date of posting; 0 See footnote 19, 8upra. THE PRESS COMPANY, INCORPORATED 651 (e) Notify the Regional Director for the Second Region in writing within ten (10) days from the date of this Order what steps the re- spondents have taken to comply herewith. AND IT is FURTHER ow m= that the allegations of the complaint that the respondents have engaged in unfair labor practices within the meaning of Section 8 (3) of the Act with respect to Richard Jackson, John Andrews, and Jo Leonard be, and they hereby are, dismissed. MR. WILLIAM M. LEISERSON took no part in the consideration of the above Decision and Order. Copy with citationCopy as parenthetical citation