The Rittling Corp.Download PDFNational Labor Relations Board - Board DecisionsApr 30, 1973203 N.L.R.B. 355 (N.L.R.B. 1973) Copy Citation RITTLING CORPORATION 355 The Rittling Corporation and Local 335, International Union of Electrical , Radio and Machine Workers, AFL-CIO-CLC. Case 3-CA-5016 April 30, 1973 DECISION AND ORDER BY CHAIRMAN MILLER AND MEMBERS FANNING AND PENELLO On December 29, 1972, Administrative Law Judge Almira Stevenson issued the attached Decision in this proceeding. Thereafter, the Respondent filed excep- tions and a supporting brief, and the General Counsel filed limited exceptions and a brief in support thereof. Pursuant to the provisions of Section 3(b) of the National Labor Relations Act, as amended, the Na- tional Labor Relations Board has delegated its au- thority in this proceeding to a three-member panel. The Board has considered the record and the at- tached 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 her recommended Order.' ORDER Pursuant to Section 10(c) of the National Labor Relations Act, as amended, the National Labor Rela- tions Board adopts as its Order the recommended Order of the Administrative Law Judge and hereby orders that the Respondent, The Rittling Corpora- tion, Buffalo , New York, its officers , agents, succes- sors, and assigns, shall take the action set forth in the said recommended Order. 8(a)(5) and (1) of the National Labor Relations Act, as amended , by refusing to abide by its collective -bargaining agreement with the Charging Party at the Respondent's new plant located at Gowanda, New York; by unilaterally changing the terms and conditions of employment at that plant ; and by refusing to recognize the Charging Party as the representative of the employees at the Gowanda plant. For the reasons set forth below , I find that the Respon- dent violated Section 8(a)(5) and (1) of the Act. Upon the entire record,' including my observation of the demeanor of the witnesses , and after due consideration of the briefs filed by the General Counsel and the Respondent, I make the following: FINDINGS OF FACT 2 AND CONCLUSIONS OF LAW 1. JURISDICTION The Respondent, a New York corporation, at all times material herein has maintained its principal office , place of business , and manufacturing facilities at 252 Amherst Street, Buffalo, New York, and, since about the middle of September 1972, has operated and maintained a manufac- turing plant on Commercial Street in Gowanda , New York. The Respondent is engaged at said plants in the manufac- ture, sale, and distribution of baseboard heating, radiators, and related products. During the past year, the Respondent purchased pipes and other metal products and other goods and materials valued in excess of $50,000 , of which goods and materials valued in excess of $50 ,000 were transported to the afore- said plants directly from States other than New York. The Respondent admits , and I conclude , that it is an employer engaged in commerce within the meaning of Section 2(6) and (7) of the Act. It. LABOR ORGANIZATION i The General Counsel excepted to the failure of the Administrative Law Judge to specifically require in her recommended Order that the current collective-bargaining agreement between the Respondent and the Charging Party be retroactively applied to the employees in the Respondent's Gowan- da plant . Since such a requirement is already included in the section of her decision entitled "Remedy" and that section is incorporated by reference into the recommended Order and notice , which we have adopted , we find no ment in the General Counsel 's exception. DECISION STATEMENT OF THE CASE ALMIRA ABBOT STEVENSON, Administrative Law Judge: This case was heard at Buffalo , New York, on November 2, 1972. The charge was filed by the Union August 23, 1972, and served on the Respondent August 24, 1972. The com- plaint was issued September 26, 1972, and amended at the hearing. The issue is whether the Respondent violated Section The Charging Party, herein referred to as the Union, is a labor organization within the meaning of Section 2(5) of the Act. 111. THE UNFAIR LABOR PRACTICES The Respondent has been in business in and around Buf- falo, New York, since at least 1947. As indicated, it manu- factures heating and ventilating equipment such as baseboard heaters and radiators . Charles P. Rittling is the president; Robert M. Hodgson is a factory manager. In 1950, the Respondent moved its manufacturing plant to Hamburg, New York. In April 1962, the Union was certified by the Board as the exclusive representative of the Respondent 's production and maintenance employees. The t The General Counsel's motion for correction of errors in the official report of proceedings is granted , in the absence of objection . Although the stenographic transcript contains additional errors not included in the motion, I do not deem it necessary to correct them as the true meaning is obvious. 2 Except as indicated , the facts are undisputed 203 NLRB No. 59 356 DECISIONS OF NATIONAL LABOR RELATIONS BOARD parties executed their first collective-bargaining agreement on June 20 , 1962, and have been parties to successive agree- ments since that time . Their most recent contract was execu- ted July 7, 1970, effective for a term of 3 years. All of the contracts have contained union-shop and checkoff provi- sions . All have also contained the following provisions:3 Art. XIV, Sec. 15.4 In the event the Company should move its plant or establish plants in other geographical areas , senior employees shall have preference over all other job applicants for any vacant positions. Art. XXX. Functions of Management . Sec. I .. . The Company shall be the exclusive judge of all mat- ters pertaining to . . . the location of plants ... . At the request of the Union, the unit was described in the first collective-bargaining agreement, covering 1962-64, as follows: Art. I, Sec. 2. The term "employee" as used in this Agreement refers to and includes all production and maintenance employees of the Company at its factory at 357 Pleasant Avenue in the Village of Hamburg, Erie County, New York, excluding office clerical employees and all guards , professional employees and supervisors as defined in the Act. In March 1963, union officials learned that Rittling was attempting to acquire land adjacent to its Hamburg plant for purposes of expansion. Although the Union and the employees attempted to aid the Company in this endeavor, by the fall of 1963 it became apparent that adjacent land could not be acquired. The then international representative of the Union , Harry Shaw , therefore asked Charles Rittling about the Company's future plans. Rittling assured Shaw that he would not abandon this area , where his roots were. He said he was looking at possible sites in Buffalo and that the Company would locate somewhere in Erie County. Shaw suggested that the contract be modified by changing the recognition clause accordingly in order to give security to the employees . Rittling agreed , and the parties executed an October 21, 1963, "letter" modifying the 1962-64 con- tract as follows: Art. 1. Sec. 2. The term "employee" as used in this Agreement refers to and includes all Production and Maintenance employees of the company at its factory in Erie County, New York, excluding office clerical employees , and all guards , professional employees and supervisors as defined in the Act. Thereafter, the Respondent leased a plant at 252 Amherst Street, Ene County, Buffalo, New York, and, in early 1964, began operations there , manufacturing the same products with the same machines and practically the same methods. The plant was located 6 to 8 miles from the Niagara County line. Meanwhile , William Gaden succeeded Harry Shaw as international representative of the Union, and negotiations i All collective -bargaining agreements between the parties also contained, in art. XI, sec. 1(d), a provision that the arbitrator had no authority to add to, subtract from , or modify any provision of the agreement . Contrary to the Respondent , I do not consider that provision relevant to the issue in this case It is a common practice to restrict arbitrators ' authority in such a manner. 4 Sec 15 of art XIV was renumbered as sec 17 in the 1964 and subsequent contracts began for a new collective -bargaining agreement . The initial sessions were held at the Hamburg location , and the final sessions at the Amherst Street location. In response to the Union's proposal that art. I be conformed with the October 21, 1963, letter of agreement , the recognition clause of the 1964-66 contract, executed June 19, 1964, provided as fol- lows: Art. 1. Sec . 2. The term "employee" as used in this agreement refers to and includes all production and maintenance employees of the Company in the County of Erie, State of New York , excluding office clerical employees and all guards , professional employees and supervisors as defined in the Act. A 3-year 1966-69 agreement contained the same recogni- tion provision as the prior contract. The next , and current , collective-bargaining agreement was negotiated for the Union by International Representa- tive Russell Freund . As indicated , it is effective for 3 years from the date of execution , July 7, 1970. Art. I, sec . 2, is the same as the similarly numbered clause in the 1964 and 1966 agreements. On May 15, 1972 , a committee of Local 335 officials met with Charles Rittling and discussed rumors that the plant would be moved again . Rittling told them he had no definite news for them , but when the time arrived he would inform the employees of the move to be made. On May 29 , Rittling met with International Representative Freund . Rittling told Freund that he anticipated moving the plant , and was con- sidering several possible locations in Buffalo and Cheekto- waga, as well as Gowanda . He said that Gowanda had strong economic advantages for the Company, but there were insurance problems to be solved. Rittling said he would let Freund know when a decision was made . Rittling stated that he did not wish to hurt any of his old employees, and would give them all an opportunity to move to the new location . Freund said that the collective-bargaining agree- ment would be applicable if the plant moved to Gowanda, but Rittling disagreed ; both said they would consult counsel on this point. On June 1 , 1972, at a time when 14 or 15 production and maintenance employees were employed at the Amherst Street plant , Rittling decided definitely to relocate the plant, for economic reasons , at 170 Commercial Street , Gowanda, Cattaraugus County, New York, just across the Erie County line. He personally asked each employee if he or she wanted to work at Gowanda; all but one answered yes.5 On June 2, Rittling informed Freund of these develop- ments. In response to Freund 's inquiry dated June 9, the Respondent's counsel advised him, by letter dated June 19, that the collective -bargaining agreement would not be ap- plicable to the Gowanda location because the contract was limited by its own terms to Erie County . Rittling discussed the matter with Freund on August 23 and again, apparently, S Based on the credited and undisputed testimony of Charles Riffling A document dated June 1, 1972, which Local 335 President Richard Ball testi- fied he circulated among the employees, appears to indicate that one employ- ee was not given an opportunity to move However, Ball did not testify to that effect, and International Representative Freund testified Ball told him that Charles Riffling had personally asked each employee if he wished to go to Gowanda and all but one answered yes RITTLING CORPORATION on September 22. Freund insisted that the contract would be applicable to the new location, and Rittling insisted it would not because Gowanda was outside Erie County. Rit- tling told Freund that new employees would be hired at a lower rate at Gowanda; he failed to respond to Freund's offer to negotiate such rates. Rittling was also unresponsive to Freund's protest that the pension plan, which had been included, for the first time, in the current collective-bargain- ing agreement, was contingent on the employees' being members and being covered by the contract without which there would be no plan.6 In a letter to Freund dated October 3, 1972, the Respondent's counsel reiterated its dis- agreement with Freund's position that the "contract applied outside of Ene County," and asserted: We therefore suggest that you reconsider your position, and if you then concede that said contract does not apply to the Gowanda location, Rittling will, if legally permitted, bargain with you with respect to rates of pay, hours of employment and other terms and condi- tions of employment at Gowanda. [Emphasis in origi- nal.] On July 27, 1972, truckdriver Charles Stroaner, the first new employee hired for work at the Gowanda plant and a member of the Union, filed a grievance alleging violation of the union-security and checkoff provisions of the contract and failure to pay him the contract wage. The Respondent denied the grievance on the ground that Stroaner "domi- ciles in Gowanda" and the contract was not applicable. The Union's request for a third-step meeting has not been grant- ed. Freund testified, without dispute, that the Respondent is delinquent in its payments into the pension fund, as re- quired by the contract. The Respondent will manufacture the same products with the same machines and by the same methods at the Gowanda plant as it did at the Amherst Street plant. The first employee was transferred from Amherst Street to Gow- anda in late August or early September. At the time of the hearing in this proceeding, the move was not yet complete because there was no steam for the degreaser at Gowanda, without which finishing cannot be done, and no heat for baking and painting. Charles Rittling hoped, however, to complete the move within 2 or 3 weeks. Hodgson, who had been factory manager at Amherst Street, was in charge at Gowanda. Nine production and maintenance employees had been transferred from Amherst' Street to Gowanda, where they were engaged in shearing, punching, forming, and assembling fin radiators and electric baseboard panels. ' Five production and maintenance employees were still at Amherst Street (apparently including the one who does not wish to transfer) They were engaged in finishing , degreas- ing, painting , spot welding, and packing and shipping all products except fin tubes which were being packed and 6 1 do not credit Freund's testimony that Railing told him, in one or more of these conversations, that there would be no union at Gowanda or that he was moving the plant there so he could pay lower wages and hire new employees at lower rates Nor do I credit Ball's testimony that Rittling told him he would like to have a clean break with the Union This testimony did not have the ring of truth, and struck me as an afterthought. The complaint does not allege, and the credible evidence does not show, that the move was unlawfully motivated 357 shipped at Gowanda. In addition to the nine transferees, there were seven new hires at the Gowanda plant consisting of two laborers, a truckdriver, and four maintenance men engaged solely in getting the new plant ready. Charles Rit- thng testified that the maintenance men might be employed after the move was completed, if there was something for them to do and if they wanted to work. The current collective-bargaining agreement with the Union is being applied to the employees still working at Amherst Street, but is not being applied to the production and maintenance employees at the Gowanda plant.? For example, although the contract wage for truckdrivers is $3.77 an hour, the hourly wage of the newly hired truckdri- ver at Gowanda is $3 an hour. The parties stipulated that the distance between the Am- herst Street plant and the Gowanda plant is 43 miles. Pearl Smith, a production employee who has been transferred, testified that it is 25 miles from her home to the Amherst Street plant, and 15 miles from her home to the Gowanda plant. Analysis and Conclusions The General Counsel contends that the words "County of Erie" in the recognition clause of the current agreement, as well as the words "Erie County" in prior agreements, are merely descriptive, not words of geographical limitation, of the unit covered. The Respondent contends that the lan- guage was intended to be, and is, a geographical limitation. I find that the Respondent's operation at Gowanda is a continuation of its Amherst Street operation based on the following considerations: 1. The same products are manufactured with the same equipment, the same methods, and under the same supervi- sion . It will also employ substantially the same employees. Nine of the Amherst Street employees have already been transferred to Gowanda, and of the remaining five at least four will follow, probably within 2 or 3 weeks of the date of the hearing in this proceeding. Most, if not all, of the seven new hires at Gowanda are engaged only in getting the plant ready, and no decision to keep them on the payroll after that has been made. 2. The relocated plant is in the same general vicinity as the old plant. The Amherst Street plant was located some- what north of the city of Buffalo, and Gowanda is south of Buffalo by several more miles. There is no indication that any of the relocated employees will find it necessary to move their homes in order to work at Gowanda. Indeed, for at least one employee, the Gowanda plant is nearer her home than the Amherst Street plant is. 3. The Union has represented the Respondent's produc- tion and maintenance employees under four successive col- lective-bargaining agreements for over 9 years, and its 7 Although Chief Steward Polus testified that Factory Manager Hodgson told him, probably sometime in June , that anybody going to Gowanda would have to take a cut in pay, he conceded that his own pay was not cut when he transferred Moreover, it appears that all transferred employees whose classifications are listed in the current collective- bargaining agreement are being paid as much or more than the contract rate In these circumstances, I do not believe that Hodgson made the statement attributed to him 358 DECISIONS OF NATIONAL LABOR RELATIONS BOARD current contract does not expire until June 6, 1973. The Respondent does not contend that the Union does not rep- resent a majority of the employees at Gowanda. Indeed, it offered, in its letter of October 3, 1972, to recognize and bargain with the Union as the representative of the employ- ees there. Moreover, in view of the union-shop clause in all the contracts, it is clear that all the production and mainte- nance employees who transferred to Gowanda, and who constitute a majority there, are members of the Union. In this context, I find without merit the Respondent's contention that the language of the contract construed as a whole and the parties' performance thereunder establish that the contract is not applicable at Gowanda. Thus, I find no substance to the Respondent's contention that the phras- es "County of Erie" and "Erie County" would not be in the contracts unless they were geographic limitations . Place de- signations frequently are used in unit descriptions in Board certifications and collective -bargaining agreements as an additional factor clarifying the employees covered. No cases have been cited, and none have been found, in which the Board has indicated that such ordinary place designa- tions operate per se as geographical limitations which enable an employer to dissolve its contract obligations merely by moving its plant to an address different from the one in the certified or contract unit description. Nor can I agree with the Respondent that art. XIV, sec. 17, of the current contract would be meaningless if the contract follows the plant, and that the only sensible inter- pretation of this provision and article XXX, read together, is that the Union knew that the contract was geographically limited, and knew that if the Company exercised its right to move the plant outside of the county, the only right retained by the Union was that conceded in art. XIV, sec. 17. With- out indulging in speculation regarding the possible mean- ings of sec. 17, I note that it appears to be applicable not only to a plant relocation such as the one involved in this case but also to a relocation under circumstances where the contract would not follow. Moreover, in my opinion, con- comitant contract provisions giving an employer the right to determine plant location and giving employees preference to job vacancies at new plants do not preclude mutual intent to have the contract follow the operations in circumstances such as those present here. As for the conduct of the parties under these contracts, I find that the evidence regarding the 1963 negotiations of the change in the recognition clause justifies the inference that the designation "Erie County" was proposed by the Union, and agreed to by the Respondent, only because the precise future address of the plant was not known at the time . If it had been known , it seems highly probable that the parties would have substituted the Amherst Street address, instead of the Erie County designation, for the street ad- dress in Hamburg previously in the unit description. The evidence does not, in my opinion, justify the inference that the parties by entering into the October 21, 1963, letter of agreement thereby acknowledged that the contract as writ- ten was applicable only as long as the plant remained at 357 Pleasant Avenue in the village of Hamburg. Upon the entire record, therefore, I find that the current collective-bargaining agreement is applicable to the Respondent's operations in Gowanda, and that it covers the production and maintenance employees at that location. I conclude that the Respondent refused to bargain with the Union as the exclusive representative of the employees in the appropriate unit by unilaterally changing the wage and pension plan provisions, and otherwise refusing to apply the terms of the collective-bargaining agreement at Gowanda, New York, in violation of Section 8(a)(5) and (1) of the Act.8 REMEDY Having found that the Respondent violated Section 8(a)(5) and (1) of the Act, I recommend that it cease and desist therefrom and take certain affirmative action de- signed to effectuate the policies of the Act. I recommend that the Respondent continue to recognize the Union as the bargaining representative of the employees in the appropriate unit, including those at the Gowanda, New York, plant ; and apply retroactively, and maintain in effect, the collective-bargaining agreement with the Union which was in force at the Amherst Street plant, unless the parties mutually agree to do otherwise. Nothing in my rec- ommendation is to be taken as permitting the Respondent to deprive employees of any benefits they may have re- ceived as a result of its refusal to apply the contract terms to the employees at Gowanda. Upon the foregoing findings of fact and conclusions of law and the entire record, and pursuant to Section 10(c) of the Act, I hereby issue the following recommended: ORDERS The Respondent, The Rittling Corporation, Buffalo, New York, its officers, agents , successors , and assigns , shall: 1. Cease and desist from: (a) Refusing to bargain collectively with respect to rates of pay, wages, hours of employment, and other terms and conditions of employment, with Local 335, International Union of Electrical, Radio and Machine Workers, AFL- 8 See Goodyear Tire & Rubber Company, 195 N LRB 767; Frasier & Johnston Company, 189 NLRB 142. Accord, N L R B v. Storack Corporation, 357 F 2d 893 (C.A. 7, 1966), N L R.B v. Royal Oak Tool & Machine Company, et a!, 320 F.2d 77 (C.A. 6, 1963), Oddie et a! v. Ross Gear and Tool Company, Inc, 305 F.2d 143 (C.A. 6, 1962), and Local 1251 International Union of United Automobile, Aircraft and Agricultural Implement Workers of America, UA W v. Robertshaw Controls Co., 405 F 2d 29 (C.A. 2, 1968), relied on by the Respondent, are inapposite In those cases, breach of contract suits were dismissed based on the courts' conclusion that the contracts which on their face covered employees "within the city limits of Detroit ," and "in its Waterbury [Connecticut] Plants," respectively, were not applicable at new plant locations where , unlike here, operations were moved as far as from Michigan and Connecticut to Tennessee , and the conduct of the parties revealed that they had in the past recognized that their contracts applied only at the original locations. 9 In the event no exceptions are filed as provided by Sec 102 46 of the Rules and Regulations of the National Labor Relations Board, the findings, conclusions , and recommended Order herein shall, as provided in Sec 102.48 of the Rules and Regulations be adopted by the Board and become its findings , conclusions , and Order, and all objections thereto shall be deemed waived for all purposes. RITTLING CORPORATION CIO-CLC, as the exclusive representative of its employees in the following appropriate unit: All production and maintenance employees of the Company in the County of Erie, including employees at Gowanda, State of New York, excluding office clen- cal employees and all guards, professional employees, and supervisors as defined in the Act. (b) In any like or related manner interfering with, re- straining, or coercing employees in the exercise of the rights guaranteed in Section 7 of the Act. 2. Take the following affirmative action designed to ef- fectuate the policies of the Act: (a) Continue to recognize and, upon request, bargain col- lectively with Local 335, International Union of Electrical, Radio and Machine Workers, AFL-CIO-CLC, as the ex- clusive bargaining representative of the employees in the appropriate unit, including those at the Gowanda, New York, plant, pursuant to the collective-bargaining agree- ment between the parties which was in force and effect at its Amherst Street plant at the time of the relocation to Gowanda, in the manner described in the section hereof entitled "Remedy." (b) Preserve and, upon request, make available to the Board or its agents, for examination and copying, all payroll records, social security payment records, timecards, person- nel records and reports, and all records necessary to analyze the amount of any backpay and pension payments which may be due under the terms of this Order. (c) Post at its plant in Gowanda, New York, and, if still in operation, at its plant on Amherst Street, copies of the attached notice marked "Appendix." 10 Copies of the notice on forms provided by the Regional Director for Region 3, after being duly signed by an authorized representative of the Respondent, shall be posted by the Respondent immedi- ately upon receipt thereof, and be maintained for 60 consec- utive days thereafter, in conspicuous places, including all places where notices to employees are customarily posted. Reasonable steps shall be taken by the Respondent to insure that the notices are not altered, defaced, or covered by any other material. (d) Notify the Regional Director for Region 3, in writing, within 20 days from the date of this Order, what steps the Respondent has taken to comply herewith. 10 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 " APPENDIX NOTICE TO EMPLOYEES POSTED BY ORDER OF THE NATIONAL LABOR RELATIONS BOARD An Agency of the United States Government 359 WE WILL NOT refuse to bargain collectively with re- spect to rates of pay, wages, hours of employment, and other terms and conditions of employment, with Local 335, International Union of Electrical, Radio and Ma- chine Workers, AFL-CIO-CLC, as the exclusive rep- resentative of our employees in the following appropriate unit: All production and maintenance employees of the Company in the County of Erie, including Gowan- da, New York, excluding office clerical employees and guards, professional employees and supervisors as defined in the Act. WE WILL NOT in any like or related manner interfere with, restrain, or coerce our employees in the exercise of the rights guaranteed in the National Labor Rela- tions Act, as amended. WE WILL continue to recognize and, upon request, bargain collectively with Local 335, International Union of Electrical, Radio and Machine Workers, AFL-CIO-CLC, as the exclusive bargaining represent- ative of our employees in the appropriate unit, includ- ing those at the Gowanda, New York, plant, pursuant to our collective-bargaining agreement with the Union which was in force and effect at our Amherst Street plant at the time of the relocation to Gowanda. THE Rn-FLING CORPORATION (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 compliance with its provisions may be direct- ed to the Board's Office, Ninth Floor, Federal Building, 111 West Huron Street, Buffalo, New York 14202, Telephone 716-842-3106. Copy with citationCopy as parenthetical citation