Typemen Inc.Download PDFNational Labor Relations Board - Board DecisionsMay 24, 1977229 N.L.R.B. 886 (N.L.R.B. 1977) Copy Citation DECISIONS OF NATIONAL LABOR RELATIONS BOARD New York Typographical Union No. 6 (Typemen, Inc.) and Salvatore Wright. Case 2-CB-5819 May 24, 1977 DECISION AND ORDER BY CHAIRMAN FANNING AND MEMBERS PENELLO AND WALTHER On March 1, 1976, Administrative Law Judge John P. von Rohr issued the attached Decision in this proceeding. Thereafter, Respondent filed exceptions and a supporting brief, and the General Counsel refiled a letter memorandum submitted to the Administrative Law Judge. 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 only to the extent consistent herewith and to adopt his recommended Order, as modified herein. We disagree with the Administrative Law Judge's conclusion that Respondent violated Section 8(b)(1)(A) by fining and expelling Charging Party Wright. For purposes of clarity, the facts governing this determination, though fully set forth in the Administrative Law Judge's Decision, shall be briefly restated. On June 3, 1974, the Respondent struck Artintype, a printing concern located on the fourth floor of 228 East 45th Street in New York City. Typemen, another printing operation, occupied the 10th floor of the same building. Up until the time of the strike, Wright had been a working foreman for Artintype and a member of Respondent. On the day following the strike, Wright commenced working, as a statuto- ry employee, for Typemen. He did not relinquish his membership in Respondent. For crossing the picket line set up against Artintype, and for working for Typemen, a nonunion shop, Wright was, on Novem- ber 21, 1974, fined and expelled from Respondent.L The General Counsel's basic premise, in contend- ing Respondent violated Section 8(b)(1)(A) by disciplining Wright, is set out in the Administrative Law Judge's Decision. 2 Dispositive of the case, as the i The initial union charges against Wright were filed on June 24, 1974. by Respondent's business representative. The complaint alleges that Wright was promoted to a supervisory position "in July 1974." There is testimony, on the other hand. that Wright was, in fact, a supervisor as early as June 10 or II. At no point. however. in this proceeding, has the General Counsel relied on Wright's possible supervisory status as of June 24. 1974. as the basis for finding that Respondent violated Sec. 8(b)(1)(B) by disciplining him. Our conclusions with respect to Wright are based, therefore. only on 229 NLRB No. 127 General Counsel concedes in his brief, is the determination whether the Respondent's "conduct here amounted to a secondary boycott," and, in agreeing with the General Counsel that Respondent violated Section 8(b)(1)(A), the Administrative Law Judge found: "the Respondent's conduct in fining and expelling Wright was designed to induce this employee to withhold his services from Typemen for an object of forcing or requiring Typemen to cease doing business with Artintype, the primary employ- er." The finding that Respondent's "conduct here amounted to a secondary boycott" is, we agree, fundamental to finding the disciplining of Wright unlawful under Section 8(b)(1)(A). Both the General Counsel and Administrative Law Judge rely on those Board decisions which hold that a labor organiza- tion's discipline of an employee-member for refusing to engage in unlawful or unprotected labor organiza- tion activity is, itself, unlawful under Section 8(b)(1)(A) as a restraint on the employee-member's exercise of Section 7 rights. In such cases, however, the illegal or unprotected nature of the labor organization's activity is established first and apart from the asserted further illegality of union attempts to compel its members to "go along with" the initial illegal or unprotected union activity. The basic flaw in the General Counsel's attempt to utilize those cases here emanates from the failure to allege, and consequently litigate, the 8(b)(4)(B) aspect of the case, with the result that the General Counsel has not proven, on the state of this record, the underpinning of his case-that Respondent did not have a primary dispute with Typemen. To the contrary, the facts of record demonstrate that, since the inception of Typemen, Respondent has continuously and consis- tently been concerned with the question of Type- men's financial and operational independence from Artintype and has sought evidence from the former's founder of such independence. Unsatisfied with such evidence of that independence as was proffered, the Respondent has refused to sign a contract with Typemen with the result that Typemen operates as a nonunion shop for which its members may work only in violation of Respondent's membership rules.3 The General Counsel contends that the disciplining of Wright "clearly" was designed to force him to cease working for Typemen to pressure the latter to cease doing business with Artintype, "the employer the General Counsel's apparent conviction that at the time charges were initiated against Wright by Respondent he was a statutory employee and that he was disciplined for crossing the picket line and for working for Typemen as an employee. 2 See sec. D of his opinion. 3 The evidence reflects that Respondent has not sought either to force Artintype to utilize Typemen's services or Typemen to cease furnishing services to Artintype. 886 NEW YORK TYPOGRAPHICAL UNION with whom the union has a dispute." But we think it clear on this record that the Respondent also had a legitimate dispute with Typemen which, without regard to the "ally" considerations addressed by the litigants and Administrative Law Judge, did not prohibit the Respondent from enforcing its constitu- tional law on working for a nonunion shop against a continuing member. 4 In short, the General Counsel has not proven, on the facts established here, an unlawful "object" in the Respondent's disciplining of Wright. All the record demonstrates is that the object of that discipline was as it was stated, enforcement of the Respondent's constitutional proscription against members working for a nonunion employer. 5 We conclude, in agreement with the Administrative Law Judge, that the Respondent violated Section 8(b)(l)(B) by disciplining Supervisor Munchesgang, but dismiss so much of the complaint as alleges violation of Section 8(b)(1)(A) in the disciplining of Wright. 6 ORDER Pursuant to Section 10(c) of the National Labor Relations Act, as amended, the National Labor Relations Board adopts as its Order the recommend- ed Order of the Administrative Law Judge as modified below and hereby orders that the Respon- dent, New York Typographical Union No. 6, its officers, agents, and representatives, shall take the action set forth in said recommended Order, as so modified: I. Delete paragraphs l(b) and (c). 2. In paragraphs 2(a) and (b) delete the words "and Salvatore Wright" and substitute the words "fine" and "expulsion" where the words "fines" and "expulsions" appear. 3. Substitute the attached notice for that of the Administrative Law Judge. MEMBER WALTHER, dissenting in part: I agree with the Administrative Law Judge's finding of an 8(b)(1)(B) violation in this proceeding. However, unlike my colleagues, I would also affirm the 8(b)(l)(A) violation the Administrative Law Judge further found. 4 Unlike our dissenting colleague, we are not willing, indeed not able, to find a violation in the possibility that the purpose of the fine was to exert pressure upon Typemen to cease doing business with Artintype. The record does not establish, by a clear preponderance of evidence, that unlawful object. And that the Respondent did not specifically allude to the primary quality of its dispute with Typemen in defense of its discipline does not remove that obstacle. Even more assuredly, that the Respondent and Typemen have been unable to resolve their dispute because of the Respondent's unwillingness to do so is wholly irrelevant. We hold, only, that it was necessary for the General Counsel to prove, by a clear preponderance of the evidence, that the disciplining of Wright was directed to the My review of the record shows the following facts. Because of an impasse in negotiations, the Union struck Artintype. Artintype was located in the same building as another employer in the printing busi- ness, Typemen. Typemen was begun some years ago by a former employee of Artintype. Quite some time before the strike, Artintype had ceased doing photocomposition work. Since this was the primary function of Typemen, Artintype subcontracted most of its photocomposition work to Typemen and had for some time. Artintype had also subcontracted this work to other employees. Years before, when Typemen was incorporated, under separate owner- ship and management, Typemen had requested bargaining with the Union. The Union, unsure of Typemen's independence, declared its suspicion of the relationship between Typemen and Artintype and has continuously refused to bargain with Typemen. Consequently, Typemen, as a result of the Union's actions, has remained a nonunion employer. After the strike began, one supervisor and one employee of Artintype were hired by Typemen and each crossed the picket line to work at Typemen. The supervisor was disciplined by the Union, hence the 8(b)(l)(B) violation. However, the 8(b)(1)(A) issue is the more difficult question here. Employee Salvatore Wright was hired by Typemen and he crossed the Artintype picket line to reach his job with Typemen. He had no choice since both employers were located in the same building. The Union filed charges, expelled him from membership, and imposed a fine on him. The charges alleged that he violated the Union's constitution by (I) crossing the picket line and (2) by workingfor a nonunion shop, i.e., Typemen. The Administrative Law Judge upon close analysis found that Artintype and Typemen were not allied employers. Accordingly, the Adminis- trative Law Judge found, citing Communications Workers of America, AFL-CIO, Local 1127 (New York Telephone Company), 208 NLRB 258, 267 (1974), that by fining Wright for crossing a picket line which did not properly stand as a primary picket line of Typemen, with whom the Union had no dispute, the Union revealed a secondary intent and object, and effectuated it by fining Wright, thereby violating Section 8(b)(l)(A)-i.e., that Wright had Respondent/Artintype relation and not the Respondent/Typemen relation and, in terms of substantiality of evidence, we are not convinced that was the case. 5 We deem it unnecessary to determine whether Typemen has allied itself with Artintype in the latter's dispute with Respondent 6 Chairman Fanning would for the reasons stated in his dissenting opinions in Chicago Typographical Union No. 16 (Hammond Publishers, Inc.). 216 NLRB 903 (1975). and Wisconsin River Vallev Districr Council of the United Brotherhood of Carpenters and Joiners of 4merica, A FL- CIO (Skippi Enterprises. Inc.). 218 NLRB 1063 (1975), dismiss the 8(b) I B) aspect of the complaint also. 887 DECISIONS OF NATIONAL LABOR RELATIONS BOARD been disciplined for refusing to engage in unprotect- ed concerted activity. My colleagues, without explanation, simply state that the Union had a primary dispute with Typemen, also. Since my colleagues offer little explanation for their theory, there is not much to be said about it, except that it has no substance. My colleagues also, however, without citation to authority, hold that the same physical act may not supply the basis for finding the picket line secondary and for finding an 8(b)(l)(A) violation. Logic does not require this result. According to the facts, the picket line was clearly primary as to Artintype; but then the picket line assumed a dual purpose and object when it attempted to restrain employees from working for an employer with whom the Union had no dispute; i.e., Typemen. Furthermore, when we add the evidence of the Union's refusal over the years to acknowledge that Typemen was an independent contractor within the meaning of the Act, I would find sufficient evidence of secondary object and, thus, the Union's fine violated Section 8(b)(1)(A). 7 7 I note that my colleagues find the "ally" doctrine considerations of this case, which were addressed by all the parties, to be irrelevant. Such observation is quite interesting in light of the fact that the Union's only defense in its brief to the alleged illegality of the fine against Wnght was its contention that Typemen and Artintype were allies. This contention the Administrative Law Judge properly rejected and, in doing so, the Administrative Law Judge also established the "underpinning" of the General Counsel's case, which my colleagues find lacking. Specifically, in noting the General Counsel had failed to prove a secondary object toward Wright, my colleagues find the record shows only that the object of the discipline against Wright was to keep him from working for a nonunion employer. While in other situations such discipline rmght be permissible, here, I note Typemen was a nonunion employer solely because the Union itself would not enter a contract with Typemen, and the Union would not do so solely because it doubted Typemen's independence from Artintype. However, by finding the two not to be "allies," the Administrative Law Judge has also effectively found that a fine, premised ultimately on the conclusion the two were allies, is an illegal fine. Thus, since this was one of the grounds for the fine, the fine was illegal. My colleagues' response in fn. 4 of their Decision is no response at all. While again professing that the General Counsel has not established by a preponderance of the evidence an illegal object in the fine, my colleagues continue to ignore the fact that it is they who have created a reason for the Union's fine, i.e., an alleged dispute with Typemen that the Union itself never raised to us as the reason for its action. Moreover, to the extent such a reason should be considered, I again repeat that, by the Administrative Law Judge's finding no ally relationship here, one of the offered reasons for the Union's fine, i.e., Wright's working for a nonunion shop, becomes illegal for those reasons I have noted in the above paragraph of this footnote. APPENDIX NOTICE TO MEMBERS POSTED BY ORDER OF THE NATIONAL LABOR RELATIONS BOARD An Agency of the United States Government WE WILL NOT restrain or coerce Typemen, Inc., in the selection of representatives for the purpose of collective bargaining or the adjustment of grievances by fining, expelling, otherwise discip- lining, or attempting in any manner to collect or enforce fines or discipline heretofore imposed against any such representative, including Charles Munchgesang, who performed substantially only supervisory functions for Typemen, Inc. WE WILL notify Charles Munchgesang that we have canceled the fine imposed upon him and his expulsion from membership. NEW YORK TYPOGRAPHICAL UNION No. 6 DECISION STATEMENT OF THE CASE JOHN P. voN ROHR, Administrative Law Judge: Upon a charge filed on March 17, 1975, the General Counsel of the National Labor Relations Board, by the Regional Director for Region 2 (New York, New York), issued an amended complaint on July 2, 1975, against New York Typographi- cal Union No. 6, herein called the Respondent or the Union, alleging that it had engaged in certain unfair labor practices in violation of Section 8(b)(I)(A) and (B) of the National Labor Relations Act, as amended. The Respon- dent filed an answer denying the allegations of unlawful conduct alleged in the complaint. Pursuant to notice, a hearing was held before me in New York, New York, on October 2, 3, and 21, 1975. Memoranda briefs were received from the General Counsel and the Respondent on November 24, 1975, and they have been carefully considered. Upon the entire record in this case, and from my observation of the witnesses, I hereby make the following: FINDINGS OF FACT 1. THE BUSINESS OF THE COMPANY Typemen, Inc., is a New York corporation maintaining its office and place of business at 228 East 45th Street, New York, New York, where it is engaged in performing photo typography services and related services. During the year prior to the hearing herein, it purchased goods and materials valued in excess of $50,000 from points and places located outside the State of New York. The parties concede, and I find, that Typemen, Inc., is engaged in commerce within the meaning of Section 2(6) and (7) of the Act. II. THE LABOR ORGANIZATION INVOLVED New York Typographical Union No. 6 is a labor organization within the meaning of Section 2(5) of the Act. III. THE UNFAIR LABOR PRACTICES A. The Issue During the period material hereto, Salvatore Wright was engaged as an employee of Typemen, Inc., and Charles Munchgesang was engaged by the same employer as night- shift foreman. Pursuant to union charges filed against 888 NEW YORK TYPOGRAPHICAL UNION Wright and Munchgesang on July 2, 1974, these individu- als were each fined $5,000 by Respondent and expelled from Respondent's membership, allegedly because they had violated article IV, section 16 - Book of Laws of the International Typographical Union, for crossing a picket line and also of article II, section 3, of Respondent's bylaws for working in a nonunion shop. The complaint alleges that, under the circumstances hereinafter described, Re- spondent by the foregoing conduct violated Section 8(b)(1XA) and (B) of the Act. It may be noted here that the cases of Wright and Munchgesang differ in material respect and that the General Counsel has a different theory as to each. The specific theories will be explicated later in this Decision. Respondent defends principally on the ground that at the times material hereto it had a labor dispute with an employer named Artintype and that Typemen was an ally of Artintype. B. The Facts i. Employer history and events prior to a strike against Artintype As above noted, the principal employers involved in this dispute are Typemen, Inc., herein called Typemen, and Artintype-Metro, herein called Artintype. It is first of all relevant to note the background of these employers and the principal individuals involved. Two companies, namely, Metro Typographers and Gould Typographers, merged into a single company known as Metro-Gould in 1975. At the time of this merger Seymour Gould was the principal of Gould-Typographers and Moe Leinoff was the principal of Metro Typographers. In the spring of 1973, Artintype was formed after a merger between it and Metro-Gould. Seymour Gould at that time became the principal officer of Artintype, which at that time started in business on premises located at 27 West 45th Street, New York City, which were formerly occupied by Metro-Gould. At the time of the Metro-Gould merger, Gould Typogra- phers was a so-called hot metal shop, this meaning that all typesetting was done with hot metal on a linotype. Although Metro Typographers was principally also a hot metal shop, it additionally had a small photocomposition unit. Briefly stated, photocomposition is a process whereby type is set from photographs. Artintype continued to engage in the photocomposition work after its formation. Both Metro Typographers and Gould Typographers were parties to collective-bargaining agreements with Respondent Union, with termination dates of October 3, 1973. This contractual relationship continued after the formation of Artintype.l I The testimony in the record is somewhat confusing as to the history of the merger as thus far set forth. However, since these matters do not appear to be in dispute, I have borrowed freely from Respondent's bnef in setting forth these facts. 2 Murray Itkowitz. a Respondent business representative, was present with Cohen. at the meeting, which included participation by Bert Powers, Respondent's president. Itkowitz testified that the second meeting occurred on June I. 1973. which was after Typemen opened, and at this time Cohen produced no further proof of ownership other than a certificate of incorporation. Assuming that a meeting was held as late as this date, I do Sheldon Cohen, the president of Typemen, was em- ployed by Metro-Gould as an alpha-type machine operator in the photocomposition unit from the spring of 1972 to the spring of 1973. Cohen at this time had been a longstanding friend of Seymour Gould, then a principal of Metro-Gould. Cohen testified that in or about the early part of 1973 he became aware, from his own observation as well as from conversations with Gould, that Metro-Gould's photocom- position department was not operating properly. In this regard Cohen testified, "There were many priority prob- lems and technology problems which the company just had not solved, and their ability to produce was greatly hampered." Cohen said that at or about the time of the merger talks between Metro-Gould and Artintype he became interested in going back into business for himself (apparently he had his own business previously) and that he so apprised Gould. According to Cohen, Gould responded, "Fine, you can count on me as a customer." Continuing, Cohen testified as follows: So it was a good arrangement for everybody, I was going into business again and he was going to get a dependable source of supply for the products that he couldn't produce himself. We arranged for a sale of equipment, not Seymour and I necessarily, because I didn't have the money to buy it, but through other parties, through some of the manufacturers and other parties that I wanted other equipment from. I, therefore, managed to get some of the equipment that had been formerly down in his place, not all of it, but some of it, some of the equipment. I bought other additional equipment also to round out this company, Typemen, that I was opening. Prior to the opening of Typemen, Cohen met with Respondent Union's officials to ascertain if he could operate the new company as a union shop. The latter indicated that they were suspicious as to whether he would open the business as an independent contractor or whether he could be under the control of Seymour Gould. Although Cohen subsequently presented the union officials with a certificate of incorporation, they indicated that they wished additional proof as to the ownership and control of the new company. It is undisputed that Respondent would not assent to Typemen becoming a union shop and that at all times subsequent to commencing business Typemen operated as a nonunion shop. 2 not deem this a material factor in deciding this case. However, concerning the reason for not assenting to Cohen's request to open Typemen as a union shop, Itkowitz testified as follows: Well, if we allowed Mr. Cohen to have that contract, Metro-Gould Typographers would lay off seniority people, Mr. Cohen would now hire who he wants, being he has a contract with the union and separate shop and the work went from that plant to Mr. Cohen's plant, that way they would escape the contract obligation of training personnel. 889 DECISIONS OF NATIONAL LABOR RELATIONS BOARD Typemen began operations in March or April 1973, on the 10th floor of a building located at 228 East 45th Street. 3 At this point Typemen, which then employed only two or three employees, began, under subcontract, performing photocomposition work for Artintype which was still located at 27 West 24th Street. However, over Memorial Day weekend 1973, Artintype moved to the fourth floor of the same building (228 E. 45th Street) where Typemen was located. Although the evidence reflects, and I find, that Typemen did perform some photocomposition work for other companies, the record is clear that by far the greatest amount of Typemen's photocomposition work came from Artintype. Before describing the working arrangement between Typemen and Artintype, it is relevant to make further note of the ownership and corporate structure of each of these employers. As previously indicated, Cohen was the owner and president of Typemen, whereas Gould and Leinoff were the principal officers and owners of Artintype. In short, the evidence reveals that Typemen and Artintype are separate New York corporations with separate owners, officers, and stockholders. 4 Cohen testified that the cost of Typemen's equipment was approximately $100,000, of which approximately 50 percent was constituted of equip- ment originally in the possession of Metro-Gould. Accord- ing to Cohen, this equipment was not sent to Typemen directly from the premises of Metro-Gould, but was first redelivered to the hands of the manufacturer. Additionally, Cohen testified that the purchase of this equipment was made principally through notes, which he said was a common procedure in the industry. Although Respondent, in support of its "ally" defense, appears to question the good-faith nature of the entire transaction whereby Typemen acquired this photocomposition equipment from Metro-Gould, I can only observe that Cohen's testimony of paying for this equipment by notes is unrefuted and that there is no evidence that Seymour Gould or Metro-Gould provided this equipment to Typemen underhandedly or without due compensation therefor. The record does not, in my view, provide sufficient basis for drawing any inference to the contrary. Artintype had about two or three employees engaged in photocomposition work at the time it moved to the fourth floor of the East 45th Street location. As indicated previously, although these employees continued to perform this work at Artintype, Artintype at this point had already started to subcontract photocomposition work to Type- men. However, in about December 1973, Artintype reached the decision, which it at the same time implement- ed, to entirely abandon its photocomposition operations. 5 There is no evidence that any employees were laid off from Artintype as a result of this decision. In any event, notwithstanding the cessation of its photocomposition operations, Artintype continued to have this service I These premises at one point were leased to Gould Typographers. However, it appears that Gould relinquished this lease, for the parties stipulated that Typemen, by Cohen, leased these premises from Beckrose Estates. an outside landlord. 4 Cohen testified that he and his wife are the sole officers and directors of Typemen. Gould testified that this decision was made approximately 6 months prior to a strike, which commenced on June 3. 1974. performed for its customers. This was accomplished by subcontracting this work to other companies. While from the record it is apparent that the bulk of this work was contracted to Typemen, Gould testified that Artintype also subcontracted some of this work to other companies. He identified the latter as being MKP Composition Shop and the Head Liners Company. Although Typemen utilized its own employees in the performance of the photocomposition work which it received from Artintype, it is undisputed that some of Artintype's employees who were familiar with this work lent close assistance to Typemen in the performance of these operations. At this time Charles Munchgesang was employed by Artintype as night superintendent. Munch- gesang testified that during the period prior to the strike he would spend about 2 hours a day, sometimes more, going back and forth from Artintype's fourth floor premises to the premises of Typemen on the fifth floor. Concerning the nature of this work, Munchgesang testified, "It was my job to go up there, pick up the work, deliver the work and pick it up." George Loft, an Artintype foreman, testified that from time to time Munchgesang would be on the 10th floor and ask him to come up and do proofreading. Joseph Colletti, also an Artintype employee, testified that prior to the strike he would be called up to Typemen's premises to operate the alpha type, a word-setting machine. Colletti also testified that "on occasion" but "not very often" he would see Gould on the 10th floor. He said that on those occasions Gould "was always directing." Gould testified that he was "up there occasionally" at which times he would speak to Cohen or to the Artintype employees concerning "how I wanted my jobs done." However, Gould also testified, and I find credibly so, that he was there only in reference to jobs that Artintype gave to Typemen and that he never gave instructions or directions to the rank-and-file employees of Typemen as to how they should perform their work.6 Concerning all the foregoing, it is undisputed that the Artintype employees were always paid by Artintype, including whatever time they spent on Typemen's 10th floor premises. A change in the managerial structure of Typemen occurred in January or February 1974, at which time Cohen left Typemen and went with a new company called Typosium, which was located about five or six blocks from Typemen. Cohen testified that he "put the new company together," that he was "part owner" of it, and that he became affiliated with it as general manager. Replacing Cohen at this time, the new president and chief executive officer of Typemen became Ed Malecki. Malecki was a salaried and commission salesman employed by Artintype at the time he was designated president by Cohen. Gould testified that Malecki was taken off salary when he became president of Typemen, but that subsequent thereto he 6 Concerning all the above, it is noteworthy that Joseph Colletti, an Artintype employee, testified that on occasion he would go to other hot metal companies who performed hot metal work for Artintype (under subcontract) and that on such occasions he would operate linotype machines on the premises of these companies. 890 NEW YORK TYPOGRAPHICAL UNION performed free-lance work and on that basis continued to receive commissions from Artintype.7 Further changes in the supervisory structure of Typemen occurred at or about the time Respondent engaged in a strike against Artintype. These and other events are noted in the succeeding section. 2. The strike against Artintype; Typemen hires Munchgesang and Wright Following unsuccessful negotiations on terms of a new contract (the latest contract between the parties expired on October 3, 1973), the Union commenced a strike against Artintype on June 3, 1974. This strike continued as of the time of the hearing herein. Cohen left Typosium and returned to resume an active role as principal of Typemen at the outset of the strike against Artintype. On the day after the strike began, June 4, 1974, Cohen hired Salvatore Wright and Charles Munchgesang to work for Typemen. As previously noted, up until the time of the strike Munchgesang had been employed by Artintype as night foreman for approximately 2 years. Until the time of the strike, Wright had been employed with Artintype as a working foreman since about latter April 1973. 8 Munchgesang and Wright were mem- bers of Respondent Union while employed by Artintype, as they apparently had been for many years prior thereto. They did not relinquish their membership upon becoming employed by Typemen. Cohen returned to Typosium about a week after hiring Wright and Munchgesang. However, in August 1974, he came back to Typemen and again resumed the presidency, a position which he holds at the present time. About the middle of August 1974, Typemen moved from the 10th floor to the 4th floor where it occupies offices and premises adjacent to Artintype. C. Additional Facts,; Conclusions as to Munchgesang Charles Munchgesang commenced his employment with Typemen on June 4, 1974, as the night-shift foreman and remained in that position at all times material hereto. Since the date of his hire, Munchgesang, in order to perform work for Typemen, on numerous occasions crossed a picket line which Respondent had established at 228 East 45th Street in furtherance of its labor dispute with Artintype. On June 24, Murray Itkowitz, Respondent's business representative, filed charges against Munchgesang and Salvatore Wright, alleging that each of them violated article IV, section 16 - Book of Laws of the International Typographical Union, for crossing a picket line, and also of article II, section 3 of Respondent's bylaws for working for Typemen, a nonunion shop. On July 2, 1974, Munchgesang and Wright were notified by Bertram Powers, Respondent's president, that the above-noted charges were being presented to the Union as 7 According to the unrefuted testimony of Cohen. Malecki never held any ownership interest in Typemen. He said the supervision of the shop employees was performed by one Sonny, with Malecki only in charge of the office functions. Malecki had no part in determining such matters as the employees' wage scale or the Company's personnel policies. of September 22, 1974. On October 31, 1974, Respondent notified these individuals that the charges had been found cognizable and that a trial committee had been appointed to hear the charges; and on November 13, 1974, they were notified by Respondent that the trial committee would recommend that each be fined $5,000 and expelled from Respondent's membership. Finally, on November 21, 1974, Munchgesang and Wright were notified that Respondent concurred with the trial committee's recommendation and that each was fined $5,000 and expelled from union membership. The complaint alleges that Respondent, by the foregoing action, with respect to Munchgesang, violated Section 8(b)(IXB) of the Act which prohibits a union from restraining or coercing an employer "in the selection of his representative for the purposes of collective bargaining or the adjustment of grievances." In view of the Board's decision in Chicago Typographical Union No. 16 (Hammond Publishers, Inc.), 216 NLRB 903 (1975), upon which the General Counsel relies, I agree that the Act has been violated, as alleged in the complaint. Thus, in the instant case it was stipulated not only that Munchgesang was a supervisor within the meaning of the Act, but also that he was empowered to adjust grievances on behalf of Type- men, his employer. Munchgesang credibly testified that 90 percent of his time was spent performing supervisory functions, the remaining 10 percent in the performance of production work. Assuming arguendo that Typemen during the relevant period was engaged in the performance of struck work, I find that Munchgesang was engaged in a "minimal amount" of any such alleged rank-and-file struck work. Pertinent to a situation of this type, the Board in the Chicago Typographical case stated as follows: The instant case, in contrast to these extreme situations, presents a factual setting where the disci- plined supervisors performed not only supervisory duties (including grievance adjusting) but also, at least arguably, a minimal amount of rank-and-file struck work during the work stoppage. We believe that the Respondent's acts of discipline in the instant case violated Section 8(bXIXB) notwithstanding the fact that Palmer and Andress may have performed a minimal amount of rank-and-file struck work. This follows, we feel, since under our view of Florida Power it makes no difference whether a supervisor performs a minimal amount of struck work because it is still reasonably likely that an adverse effect may carry over to the supervisor's performance of his 8(b)(1)(B) duties when he is disciplined after having performed substan- tially only supervisory functions and only a minimal amount of what might arguably be called rank-and-file struck work during a work stoppage. [Footnote omit- ted.] Accordingly, and for the reasons further explicated by the Board in the aforesaid case, I find that Respondent, by fining Munchgesang the sum of $5,000 and by expelling Wnright. who said he knew Cohen for about 15 years. was previously employed by Metro-Gould. He was laid off from that company in late March 1973 and began his employment with Artintype 2 or 3 weeks later. 891 DECISIONS OF NATIONAL LABOR RELATIONS BOARD him from its membership, violated Section 8(b)(1)(A) of the Act.9 D. Conclusions as to Wright Unlike Munchgesang who was hired on June 4, 1974, as a supervisor, Salvatore Wright was hired by Typemen on the same date as a rank-and-file production employee. As set forth in detail in the preceding section, Respondent took identical disciplinary action against Wright, and for the same reasons, as it did against Munchgesang. As thus noted, this began with charges filed against him on July 2, 1974, and culminated on November 21, 1974, when Respondent expelled him from membership and imposed a fine against him in the sum of $5,000. Although sometime later in July 1974 Wright was promoted to the rank of foreman with Typemen, it is undisputed that he was engaged by Typemen as an ordinary employee at the time of the filing of the charges against him on July 2, 1974, which led to the disciplinary action as aforenoted. The General Counsel's theory as to Wright, which necessarily must be different from that of Munchgesang, is stated in his brief as follows: With respect to the Union's disciplinary actions against Salvatore Wright, the General Counsel contends that the union violated Section 8(b)(1)(A) of the Act by imposing disciplinary action against an employee-mem- ber for failing to conform to union conduct which itself would be violative of the Act and accordingly, contrary to public policy. That is, the union fined and expelled Wright because he worked at Typemen. It is clear that the union thereby sought to induce Wright, an individual, to withhold his services from a person (Typemen), for an object of forcing or requiring that person to cease doing business with Artintype-Metro, the employer with whom the union has a dispute. In short, it is our view that the union disciplined Wright because Wright refused to be a party to secondary boycott. That a union may not discipline employees for objects which are illegal or contrary to public policy was made clear by the Board in Local 1101 Communica- tion Workers of America, AFL-CIO (New York Tele- phone Company), 208 NLRB 32 (1974). Denying that it engaged in conduct which could be construed as unlawful or secondary action against Type- men, Respondent asserts that Typemen is an ally of Artintype and that it therefore is not within the protection of the secondary provisions of the Act. If this position were to be upheld, it would of course follow that Respondent's disciplinary actions against Wright would not, in light of the General Counsel's theory, be unlawful under the Act. The leading case on the ally doctrine is N.L.R.B. v. Business Machine and Office Appliance Mechanics Confer- ence Board, Local 459, International Union of Electrical, Radio & Machine Workers, CIO (Royal Typewriter Co.), 228 F.2d 553 (C.A. 2, 1955), wherein the court in pertinent part stated as follows: 9 See also International Brotherhood of Electrical Workers, AFL-CIO, Local Union 901 (Ernest P. Breaux Electrical Company, Inc.), 220 NLRB 1236 (1975): The Newspaper Guild, Erie Newspaper Guild, Local 187, AFL- CIO (Times Publishing Company), 222 NLRB 760 (1976). . . . an employer is not within the protection of Section 8(bX4)(A) [now Section 8(bX4XB)] when he knowingly does work which would otherwise be done by the striking employee of the primary employer and where this work is paid for by the primary employer pursuant to an arrangement devised and originated by him to enable him to meet his contractual obligations. Under a literal interpretation of the above doctrine, it is apparent that Typemen cannot be held to be an ally of Artintype, for here it is undisputed that at a time 5 or 6 months prior to the strike Artintype completely closed down the photocomposition work which it largely subcon- tracted to Typemen. Accordingly, inasmuch as Artintype's employees were not engaged in the performance of this work at the time of the strike, it is clear that this is not a case where "but for" the strike the work would have been performed by Artintype's employees and, conversely, would not have been subcontracted to Typemen. The Respondent, however, contends that, long prior to the strike, Gould and Cohen "had collaborated on a scheme that would resolve Artintype's dispute with the Union," and that "Artintype set Typemen up as a dummy corporation which it effectively controlled and whose labor relations policy it dictated." The reason for all this was, according to Respondent, that long prior to the strike (i.e., shortly after the merger with Metro-Gould) Artintype was engaged in a dispute with the Union over problems relating to the training of hot metal employees in the photocompo- sition process, their competency to perform such work, and the priority rights of employees in the merged shop.1 0 Upon consideration of the entire record in this case, I am impelled to conclude that Respondent's "ally" defense is of no merit. In the first place, and while it is true that Artintype undoubtedly did have problems with the Union relative to the above-noted photocomposition work, the record in my opinion fails to establish that as of the time Typemen was organized as a business, this dispute was of such a grave nature that Gould (as principal of Artintype) would deliberately engage in a scheme to set up Typemen as a dummy corporation (as Respondent contends) with a view to avoiding its obligations to the Union. Thus, it will be recalled that Typemen commenced operations in or about March or April 1973; Artintype's contract with Respondent Union did not expire until October 3, 1974; and bargaining negotiations between Artintype and Re- spondent continued to June 3, 1974. Although Artintype undoubtedly engaged in hard bargaining, there is nothing in this record for me to infer that throughout this period Artintype was not bargaining in good faith over the terms of a contract, including any provisions relative to photo- composition work. In short, whatever dispute Artintype had with Respondent over the latter work, this record does not warrant a finding that this led Artintype into setting up Typemen as a "dummy" corporation over a year prior to the expiration of contract negotiations. Secondly, and notwithstanding that the majority of Typemen's work is subcontracted to it by Artintype, the 'o Gould conceded that he and the Union had differences over these matters during contract negotiations. 892 NEW YORK TYPOGRAPHICAL UNION fact remains that each is a separate corporation, with separate owners, officers, and stockholders. Indeed, Gould testified without contradiction that other than subcontract- ing work to Typemen, neither he nor Artintype provided Cohen or Typemen with any machinery, money, capital equipment, or anything of value. Similarly, Cohen testified without contradiction that the financing of Typemen was accomplished all but entirely through notes. Further, there is nothing in the record to support Respondent's conten- tion that the principals of Artintype exercise control over the affairs of Typemen, particularly the latter's labor or personnel relations. Accordingly, I find all the foregoing a further basis for finding that Typemen and Artintype were not allied employers in the performance of the work in question. Finally, I think it appropriate to comment upon a case decided by the Board subsequent to the hearing and the filing of briefs herein, namely, Graphic Arts International Union, A FL-CIO, and Local 277, Graphic Arts International Union, AFL-CIO (S & M Rotogravure Service, Inc.) (Kable Printing Company), 222 NLRB 280 (1976). Briefly, in that case a majority of the Board found an allied relationship to exist between two employers notwithstanding the fact that the primary employer, subsequent to a strike, decided to discontinue certain rotogravure operations and thereafter made arrangements to have this work perfomed by other printing shops. As a basis for invoking the allied doctrine, the Board relied on the fact that, subsequent to the latter decision and arrangement, the employer still retained certain equipment involved in the performance of the discontinued operations; and this, the Board held, was indicative that the decision to discontinue the operations in question was not irrevocable. "In cases such as the instant one," the Board stated, "the more important consideration is not the announcement of an intention to terminate operations, but its accomplishment." I find Graphic Arts, supra, not to be controlling here. Thus, and without dwelling upon the matter further, the instant case is factually distinguishable in that the evidence in this case establishes that Artintype effectively accom- plished the discontinuance of its photocomposition approx- imately 5 months prior to the strike. Unlike Graphic Arts, the testimony is that at that time Artintype disposed of all the equipment and machinery which it utilized in the performance of these operations. There is no evidence to the contrary. In sum, I find that Respondent's conduct in fining and expelling Wright was designed to induce this employee to withhold his services from Typemen for an object of forcing or requiring Typemen to cease doing business with Artintype, the primary employer. In view of this objective, I agree with the General Counsel, and find, that Respon- dent's disciplinary action against Wright, as aforesaid, was taken because Wright refused to be a party to a secondary boycott. By fining Wright, an employee, for not engaging in unprotected activity, I find that Respondent violated Section 8(bX1IXA) of the Act. Local 1101 Communication Workers of America, AFL-CIO (New York Telephone " 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 the recommended Order herein shall. as provided in Sec. Company), 208 NLRB 267 (1974); Local 1104, Communica- tion Workers of America, AFL-CIO (New York Telephone Company), 211 NLRB 114(1974). IV. THE EFFECT OF THE UNFAIR LABOR PRACTICES UPON COMMERCE The activities of the Respondent set forth in section II1, above, occurring in connection with the operations of the employer described in section I, above, have a close, intimate, and substantial relationship to trade, traffic, and commerce among the several States and tend to lead to labor disputes burdening and obstructing commerce and the free flow of commerce. V. THE REMEDY Having found that the Respondent has engaged in unfair labor practices in violation of Section 8(bXl)(A) and (B) of the Act, I shall recommend that it cease and desist therefrom and take certain affirmative action designed to effectuate the policies of the Act. CONCLUSIONS OF LAW 1. Typemen, Inc., is an employer engaged in commerce within the meaning of Section 2(6) and (7) of the Act. 2. The Respondent, New York Typographical Union No. 6, is a labor organization within the meaning of Section 2(5) of the Act. 3. By engaging in the conduct described in section III, above, the Respondent has engaged in and is engaging in unfair labor practices within the meaning of Section 8(bX)(IXA) and (B) 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. On the basis of the above findings of fact, conclusions of law, and the entire record, and pursuant to Section 10(c) of the Act, I issue the following recommended: ORDER I The Respondent, New York Typographical Union No. 6, its officers, agents, and representatives, shall: I. Cease and desist from: (a) Restraining or coercing Typemen, Inc., in the selection of representatives for the purpose of collective bargaining or the adjustment of grievances by fining, expelling, otherwise disciplining, or attempting by any means to collect or enforce any fine or discipline imposed against any such representative, including Charles Munch- gesang, who performed substantially only supervisory functions for Typemen, Inc. (b) Restraining or coercing employees in the exercise of their rights guaranteed in Section 7 of the Act by imposing fines upon employees and expelling them from member- ship because they refused to engage in a strike where the object was to force or require Typemen to cease doing business with Artintype. 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. 893 DECISIONS OF NATIONAL LABOR RELATIONS BOARD (c) In any like or related manner restraining or coercing employees in the exercise of rights guaranteed by Section 7 of the Act. 2. Take the following affirmative action designed to effectuate the policies of the Act: (a) Rescind and expunge all records of the fines and expulsion levied against Charles Munchgesang and Salva- tore Wright on or about November 21, 1974. (b) Advise Charles Munchgesang and Salvatore Wright, in writing, that the said fines and expulsions have been rescinded and that the records of such fines and expulsion have been expunged. (c) Post at its business office and meeting hall copies of the attached notice marked "Appendix." 12 Copies of said notice, on forms provided by the Regional Director for 12 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 Region 2, after being duly signed by Respondent's authorized representative, shall be posted by Respondent immediately upon receipt thereof, and be maintained by it for 60 consecutive days thereafter, in conspicuous places, including all places where notices to members are custom- arily posted. Reasonable steps shall be taken by Respon- dent to insure that said notices are not altered, defaced, or covered by any other material. (d) Furnish the Regional Director for Region 2 with signed copies of said notice for posting by Typemen, Inc., including all places where notices to employees are customarily posted. (e) Notify the Regional Director for Region 2, in writing, within 20 days from the date of this Order, what steps Respondent has taken to comply herewith. to a Judgment of the United States Court of Appeals Enforcing an Order of the National Labor Relations Board." 894 Copy with citationCopy as parenthetical citation