United Hatters, Cap and Millinery Workers UnionDownload PDFNational Labor Relations Board - Board DecisionsAug 20, 1959124 N.L.R.B. 604 (N.L.R.B. 1959) Copy Citation 604 DECISIONS OF NATIONAL LABOR RELATIONS BOARD tives to that labor organization, which the Board in such circum- stances finds to be an appropriate unit for the purposes of collective bargaining. In the event that a majority of the employees in voting group (a) select the Operating Engineers and if a majority of the employees in voting group (b) select either the Teamsters or the Joint Petitioners, the Regional Director is instructed to issue a certifi- cation of representatives to that labor organization for a unit of pro- duction employees, which the Board, in these circumstances, finds to be appropriate for collective bargaining. However, if a majority of the employees in voting group (a) do not vote for the Operating Engineers, the votes of both groups will be pooled,13 and the Regional Director conducting the election is instructed to issue a certification of representatives to the Joint Petitioners, if this organization is selected by a majority of the employees in the pooled production and maintenance group, which the Board, in such circumstances, finds to be appropriate for the purposes of collective bargaining.14 [Text of Direction of Elections omitted from publication.] 18 If the votes are pooled, they are to be tallied in the following manner : The votes for the labor organizations seeking separate units shall be counted as valid votes but neither for nor against the labor organization seeking to represent the more compre- hensive production and maintenance unit; all other votes are to be accorded their face value, whether for representation by the union seeking the more comprehensive group or for no union. 14 See Dierks Paper Company, 120 NLRB 290, 294. United Hatters , Cap and Millinery Workers Union, AFL-CIO and Korber Hats, Inc. Case No. 5-0C-107. August 20, 1959 DECISION AND ORDER On May 20, 1959, Trial Examiner Vincent M. Rotolo issued his Intermediate Report in the above-entitled proceeding, finding that the Respondent had engaged in and was engaging in certain unfair labor practices, and recommending that it cease and desist therefrom and take certain affirmative action, as set forth in the copy of the Intermediate Report attached hereto. Thereafter, the Respondent filed exceptions to the Intermediate report and a supporting brief. Pursuant to the provisions of Section 3(b) of the Act, the Board has delegated its powers in connection with this case to a three- member panel [Chairman Leedom and Members Bean and Jenkins]. The Board has reviewed the rulings made by the Trial Examiner at the hearing and finds that no prejudicial error was committed. The rulings are affirmed. The Board has considered the Intermediate Re- port, the exceptions and brief, and the entire record in the case and 124 NLRB No. 79. UNITED HATTERS, CAP & MILLINERY WORKERS UNION 605 hereby adopts the findings,' conclusions,2 and recommendations I of the Trial Examiner, except as indicated herein. ORDER Upon the entire record in this case, and pursuant to Section 10(c) of the National Labor Relations Act, as amended, the National Labor Relations Board hereby orders that the Respondent, United Hatters, Cap and Millinery Workers Union, AFL-CIO, its officers, representa- tives, agents, successors, and assigns, shall: 1. Cease and desist from engaging in, or inducing or encouraging employees of Theo. Epstein and Sons, or of any employer other than Korber Hats, Inc., by picketing or by any other conduct, to engage in a strike or a concerted refusal in the course of their employment to use, manufacture, process, transport, or otherwise handle or work on any goods, articles, materials, or commodities, or to perform any services, where an object thereof is to force or require Theo. Epstein and Sons or any other employer to cease using, selling, handling, transporting, or otherwise dealing in the products of, or to otherwise cease doing business with, Korber Hats, Inc., or any other producer, processor, or manufacturer. 2. Take the following affirmative action which it is found will effectuate the policies of the Act: (a) Post at its business office and meeting halls in the city of Baltimore, Maryland, copies of the notice attached hereto marked "Appendix."' Copies of said notice, to be furnished by the regional Director for the Fifth Region, shall, after being duly signed by an 1 We do not adopt or rely on the Trial Examiner's findings, In that portion of the Intermediate Report entitled "Analysis and Conclusions; Object of the Picketing," with respect to the events at the Korber Hats plant, beyond the admitted facts that such a strike occurred and that Korber Hats made shipments to Theo. Epstein and Sons despite the strike. Nor do we adopt or rely on the Trial Examiner's characterization of the efforts of Scheinan, Respondent Union's business manager and agent, to secure the Epstein Company's cooperation as "frantic" or his findings concerning Scheinan's subjective think- ing and reasons for engaging in the conduct herein found violative of the Act. 2 We agree with the Trial Examiner that an object of the Respondent Union's picketing was to induce and encourage the employees of Theo. Epstein and Sons and of the trucking companies which made deliveries to and pickups from that company to engage in a strike or a concerted refusal in the course of their employment to perform services for their employers in order to force Theo. Epstein and Sons to cease doing business with and accepting deliveries of shipments from Kerber Hats, Inc. However, the Trial Examiner's conclusion of law to the effect that Respondent Union also sought to induce and en- courage the employees of the other tenants of the building in which the Epstein Company Is located is not supported by his factual findings or by the evidence in the record. Accordingly, we do not adopt this latter finding. 3 No specific exceptions have been filed to the Trial Examiner's recommended order. However, the Trial Examiner recommended, among other things, that the Respondent Union be required to send signed copies of the notice to the Regional Director for posting by other tenants of the building in which Theo. Epstein and Sons is located, if such other tenants be willing. We have found that the Respondent Union's unlawful conduct was not shown to have been directed to -the employees of the other tenants. Accordingly, we shall not include that requirement in our order. 4In the event that this Order is enforced by a decree of a United States Court of Appeals, there shall be substituted for the words "Pursuant to a Decision and Order" the words "Pursuant to a Decree of the United States Court of Appeals, Enforcing an order." 606 DECISIONS OF NATIONAL LABOR RELATIONS BOARD officer or other representative of the Respondent, be posted by it im- mediately upon receipt thereof and maintained by it for a period of 60 consecutive days thereafter in conspicuous places, including all places where notices to its members are customarily posted. Reason- able steps shall be taken by the Respondent to insure that said notices are no altered, defaced, or covered by any other material. (b) Mail a signed copy of said notice to each of its Locals in the city of Baltimore with instructions to post same at the business office and meeting hall of said Local for a period of 60 consecutive days in conspicuous places. It shall also send instructions to said Locals that they should take reasonable steps to insure that the notices are not altered, defaced, or covered by any other material. (c) Mail signed copies of said notice to the Regional Director for the Fifth Region, for posting by Theo. Epstein and Sons and by all trucking companies in the Baltimore city area doing business with Theo. Epstein and Sons, the companies willing, at a place or places where notices to their employees are customarily posted. (d) Notify the Regional Director for the Fifth Region in writing, within 10 days from the date of this Order, what steps it has taken to comply herewith. APPENDIX NOTICE TO ALL MEMBERS OF UNITED HATTERS, CAP AND MILLINERY WORKERS UNION, AFL-CIO, IN THE BALTIMORE, MARYLAND, AREA, AND TO ALL EMPLOYEES Pursuant to a Decision and Order of the National Labor Relations Board, and in order to effectuate the policies of the National Labor Relations Act, as amended, we hereby notify you that : AVE WILL NOT engage in , or induce or encourage the employees of Theo. Epstein and Sons, or of any other employer, by picket- ing or by any other conduct, to engage in a strike or a concerted refusal in the course of their employment to use, manufacture, process, transport, or otherwise handle or work on any goods, articles, materials , or commodities or to perform any services, where an object thereof is to force or require Theo. Epstein and Sons or any other employer to cease using, selling, handling, transporting, or otherwise dealing in the products of, or to other- wise cease doing business with, Korber Hats, Inc., or any other producer , processor , or manufacturer. UNITED MATTERS, CAP AND MILLINERY WORKERS UNION, AFL-CIO, Labor Organization. Dated---------------- By------------------------------------- (Representative ) ( Title) This notice must remain posted for 60 days from the date hereof, and must not be altered, defaced, or covered by any other material. UNITED HATTERS, CAP & MILLINERY WORKERS UNION 607 INTERMEDIATE REPORT STATEMENT OF THE CASE This proceeding, brought under Section 10(b) of the National Labor Relations Act, as amended (hereinafter referred to as the Act), was duly heard at Baltimore, Maryland, on April 7, 1959, pursuant to notice of hearing served on all parties. The complaint, issued on February 5, 1959, is based on a charge filed by Korber Hats, Inc. (hereinafter referred to as the Korber Company), on December 17, 1958, against United Hatters, Cap and Millinery Workers Union, AFL-CIO (hereinafter referred to as the Respondent). The complaint alleges, in substance, that the Respondent, being engaged in a labor dispute with the Korber Company at its plant in Fall River, Massachusetts, where it was conducting picketing activities, established a picket line at the entrance to the building where the Epstein Company is a tenant at 38 Hopkins Place, Baltimore, Maryland. It further alleges that by engaging in picketing activities at the Epstein Company's place of business the Respondent engaged in, and induced and encouraged the employees of the Epstein Company and the employees of other employers to engage in, a strike or concerted refusals in the course of their employment to per- form work for their respective employers and that objects of said picketing activities were (1) to force or require the Epstein Company and the other employers to cease doing business with the Korber Company, and (2) to force or require customers and suppliers of the Epstein Company and any other employer or person to cease doing business with the Epstein Company. It concludes that said conduct on the part of the Respondent constitutes unfair labor practices within the meaning of Section 8(b) (4) (A) of the Act. The Respondent, by its answer to the complaint, admits that it was engaged in strike and picketing activities against the Korber Company at its plant in Fall River, Massachusetts, and that it also picketed the premises of the Epstein Company in Baltimore between December 5, 1958, and January 22, 1959. It denies, however, that by its picketing activities at the Epstein Company it engaged in a strike against the Epstein Company or that it induced or encouraged the employees of the Epstein Company or the employees of any other employers to engage in a strike or a con- certed refusal in the course of their employment to perform work for their respective employers or that it engaged in said picketing activities for the objects set forth in the complaint. At the hearing, all parties, except the Korber Company, entered their appearance, were represented by counsel, and were afforded full opportunity to be heard, to examine and cross-examine witnesses, to introduce evidence bearing on the issues, to argue the issues orally on the record and to file briefs and proposed findings. At the opening of the hearing counsel for the General Counsel, without objection from counsel for the Respondent, submitted the transcript of testimony of witnesses of a 10(1) injunction proceeding brought before the United States District Court for the District of Maryland, by the General Counsel against the Respondent. The General Counsel rested his case upon the submission of such record. Counsel for the Respondent then indicated that the Respondent would not submit any evidence to contradict the evidence contained in the transcript of testimony submitted by the General Counsel and that it adopted said evidence as part of the Respondent's case, making an agreement with the General Counsel, on the record, that said testimony be considered as a stipulation of facts from which the Trial Examiner could make his findings and conclusions. Before the close of the hearing counsel for the Re- spondent made a motion to dismiss the complaint on the ground that the General Counsel had not proved that the Respondent had committed a violation of Section 8(b) (4) (A) of the Act. The Trial Examiner reserved ruling on said motion, which is hereby denied for the reasons set forth hereinafter in this report. Counsel for the General Counsel and counsel for the Respondent submitted briefs to the Trial Examiner which have been considered in the making of this report. Upon the entire record in this case I make the following: FINDINGS OF FACT 1. BUSINESS OF THE KORBER AND EPSTEIN COMPANIES Korber Hats, Inc., the Charging Party in these proceedings, manufactures and sells hats at its plant and place of business located in Fall River, Massachusetts. In con- nection with its business operations it sells and ships substantial quantities of hat materials from its plant in Massachusetts to various wholesale distributors of hats that are located in States other than the State of Massachusetts. 608 DECISIONS OF NATIONAL LABOR RELATIONS BOARD Theo. Epstein and Sons is a copartnership which conducts a business of purchas- ing and selling men's hats and caps at wholesale to various men's retail hat shops and other retail establishments from its place of business located at 38 Hopkins Place, Baltimore, Maryland. During the 12-month period prior to the issuance of the com- plaint, it purchased and received hat materials, valued at in excess of $50,000, from various hat manufacturers that are located in various States other than the State of Maryland. During the same period it sold and shipped finished men's hats and caps, which were valued at in excess of $50,000, to various men's retail hat shops and other retail establishments located in States other than the State of Maryland. I conclude from the above facts that both the Korber and Epstein Companies are, and have been at all times material herein, engaged in commerce within the meaning of Section 2(6) and (7) of the Act. If. THE LABOR ORGANIZATION INVOLVED United Hatters, Cap and Millinery Workers Union, AFL-CIO, the Respondent herein, is , and at all times material herein has been, a labor organization within the meaning of Section 2(5) of the Act. III. THE UNFAIR LABOR PRACTICES No Conflicting Testimony There is no conflict of testimony in this case, the parties having stipulated, on the record, that the testimony of the witnesses submitted by the General Counsel in Section 10(1) proceedings brought in the U.S. District Court be considered the testimony of both parties in this proceeding. I have therefore credited the testimony of those witnesses. The only conflict between the parties results from the divergent inferences and conclusions which each would have the Trial Examiner draw from the established facts. The following is a summary of those facts. Events Which Occurred Prior to December 5, 1958 As indicated above, Korber Company is a manufacturer of hats, with its plant and place of business located in Fall River, Massachusetts. Sometime in September 1958, the Respondent began a labor dispute with the Korber Company and there- after, beginning with on or about October 14, 1958, it engaged in strike and picketing activities against that company at its plant in Massachusetts. Throughout the period in which the events related below occurred, the Respondent's strike and picketing activities against the Korber Company, mentioned above, were in progress. The Epstein Company business is conducted by Irvin Epstein and his father, Theodore Epstein, and brother, Gilbert Epstein. The father and brother spend most of their time on the road soliciting hat and cap orders from the approximately 900 men's retail hat shops and other retail establishments located in various States along the southeastern coast of the United States. Only 25 of these customers of the Epstein Company are located in the State of Maryland and of these only 13 are in the city of Baltimore. Irvin Epstein takes care of the office and plant which are located in the top three floors of a five-story commercial building located at 38 Hopkins Place, Baltimore, Maryand. The Epstein Company does not manufac- ture hats. It orders the hats to be made by various hat manufacturers located in other States, according to its specifications as to size, color, dimensions, materials, and styles. However, it receives the hats in unfinished form without linings or bands. After it receives the unfinished hats it assembles, finishes, and prepares them for ship- ment to its customers by placing them in hatboxes. The hatboxes are then placed in large cartons for transportation by motortruck to the retail shops. All but a few of its shipments are made by independent motortrucking companies. The Epstein Company uses some of the large and well-known truck transportation companies which operate over a wide area along the eastern seaboard, such as McLean Trucking Corp., Bayline Transport Co., Wooleyhan Trucking Co., and Associated Transport, Inc.1 Deliveries of unfinished hats and caps are also made by independent motor- trucking companies that operate in several States. These companies are engaged by the hat manufacturers for that purpose. None of the hats or caps prepared for the retail trade by the Epstein Company have any markings or other lettering which would indicate to its customers what particular manufacturer had made the hats or 11 take judicial notice of the well-known fact that the motortrucking industry in the eastern section of the United States has been generally organized and that the drivers and helpers of the motoetrucking companies mentioned above are, In all probability, represented by locals of the International Brotherhood of Teamsters Union. UNITED HATTERS, CAP & MILLINERY WORKERS UNION 609 caps. The Epstein Company places its own linings in the hats and caps which have its trademarks of "Holbert" or "Tepson" or "Headmaster." The hatboxes and cartons in which they are packed for shipment have the markings of the Epstein Company. As indicated above the Epstein Company's place of business is located in the top three floors of a five-story commercial loft building located at 38 Hopkins Place, Baltimore, Maryland. On the street level or first floor of this building is located a check-cashing firm known as The Citywide Check Cashing Company which shares the first floor space with another concern known as The Linen Art Novelty Company. These two firms have a separate entrance of their own on the north end of the building line. The main entrance to the building is located on the opposite or south end of the building about 8 feet from the other entrance. Access to the upper floors of the building is had through the main entrance located on the south end of the building. Immediately beyond the doorway of the main entrance there is a small vestibule which leads to a freight and passenger elevator facing the main entrance. The elevator is operated by an employee of the landloard of the building. On the second floor of the building there is located the plant of a linen manufacturing con- cern known as Duchess Linen Manufacturing Company. This company manu- factures linen products which it ships out of the building to its customers. The record, however, does not show how many workers it employs at its plant or how it ships its products. The elevator operator and the employees of both the Duchess Linen Manufacturing Company and the employees of the trucking companies which make deliveries of goods and materials to the Epstein and Duchess companies as well as the employees of the trucking companies which make pickups of products from the tenants in the building must pass through the doorway of the main en- trance in order to perform their work inside the building. At the time the events related below occurred, the Epstein Company employed only one employee, named Willard Wagner, who is its shipping clerk and errand boy. Wagner also assists Irvin Epstein in finishing, preparing, and packing the hats and caps in boxes for shipment to the Epstein Company customers. Wagner also, at times, assists the truckmen of the common carriers who bring materials to the Epstein Company premises as well as the truckmen of the common carriers who make the pickups of orders from the Epstein Company premises for shipment to its customers. On occasions Wagner carries small orders to the post office for ship- ment by parcel post. During the times that Wagner assists the truckmen he helps them to unload or load the trucks. When the cartons of hat materials are being brought to the Epstein Company premises he helps the truckmen remove the cartons from the trucks and carries them into the building, and into the freight elevator for transportation to the Epstein Company premises. When he helps the truckmen who make shipments to the Epstein customers, he carries the cartons into the ele- vator. At street level he helps carry the cartons to the trucks stationed in the street in front of the building. Deliveries of hat materials and goods to the Epstein Company premises occur daily and at all hours of the day. The shipments from the Epstein Company are usually made in the afternoon. From two to six separate shipments are made each day throughout the year depending upon the season. Irvin Epstein testified that almost all of the orders it receives from its customers are obtained by his father and brother who spend most of their time traveling to the retail establishments to obtain the orders. On rare and infrequent occasions a local hat shop from the city area of Baltimore may telephone in an order and later send its representative to pick up the order. During the period in question only 10 such local merchants called in their orders and picked up their shipment. Sometime during the latter part of September 1958 Jesse Scheinan, the business manager and agent of the Respondent who has charge of the Respondent's affairs in the Baltimore area, telephoned the Epstein Company to inform Irvin Epstein that the Respondent was then engaged in a labor dispute with the Korber Company. At that time Scheinan informed Epstein that soon there would be "trouble" at the Korber plant in Fall River, Massachusetts, and that he was calling to give the Epstein Company warning to place its orders for straw hats, which the Epstein Company usually purchased each year from the Korber Company, with some other hat manufacturer. Scheinan further explained to Epstein that within a short time no hats would be coming out of the Korber plant and advised him that he should pre- pare himself for such an eventuality. Epstein told Scheinan at that time that he was not concerned because he had already obtained and sold most of his supply of straw hats for that year and that it was too early to place orders for straw hats for the next spring and summer seasons. On or about October 14, 1958, the Re- spondent commenced strike and picketing activities at the Korber plant in Fall River, 525543-60--vol. 124--40 610 DECISIONS OF NATIONAL LABOR RELATIONS BOARD Massachusetts. While the Respondent's strike and picketing activities at the Korber plant were going on and specifically on or about December 3, 1958, Scheinan again called Epstein to inform him that the Korber Company was making a shipment of 44 cartons of straw hats to the Epstein Company and asked Epstein whether he would accept or refuse the shipment. When Epstein replied that he would accept the shipment, Scheinan warned him that if he did so the Respondent would place a picket line in front of the building. Epstein facetiously remarked to him that the pickets would look peculiar patrolling in front of the fourth story of the building but Scheinan again demanded of Epstein whether he would accept or refuse the shipment. When Epstein again told Scheinan that he would accept the shipment Scheinan hung up the receiver of the telephone and abruptly ended the conversation. On the following day, December 4, 1958, the shipment of 44 cartons of straw hats from the Korber Company arrived at the Epstein Company premises and Epstein accepted the shipment. Events Which Occurred On and After December 5, 1958 On December 5, 1958, the Respondent established a picket line at the main en- trance of the building where the Epstein Company is a tenant. The pickets patrolled the whole width of the building covering the main entrance and up to the entrance of the Citywide Check Cashing Company. The pickets carried picket signs which contained the following legend: T. Epstein and Sons sells nonunion hats made by Korber Hat Company. Do not buy Korber Hats. The Respondent's name was on the lower portion of the picket sign. In the beginning the Respondent's pickets patrolled every day and continuously during the work hours of the day. Since deliveries of hat materials from the hat manufacturers were made daily and at all times of the day, the truckdrivers of the independent trucking companies who made deliveries of hats to the Epstein Company premises were required to pass through the picket line in order to carry the cartons of materials to the elevator and up to the Epstein Company premises. Likewise it was necessary for the truckdrivers of the independent trucking companies who made pickups of cartons of hats from the Epstein premises to pass through the picket line to enter the building in order to pick up the cartons of hats being shipped by the Epstein Company to its customers. All other employees, such as the elevator operator and the Epstein Company shipping clerk and the employees of the Duchess Linen Manufacturing Company, were also required to cross the picket line to go to their places of work inside the building. None of these employees, however, re- fused to cross the picket line. There was no actual interruption with the business operations of the tenants in the building and, except for one incident related below, the pickets made no attempt to prevent the employees from entering or leaving the building. The picketing activities became irregular and sporadic toward the latter part of December 1958. It ceased altogether on January 22, 1959. At one time in December 1958 the weather was so cold that the pickets huddled in the doorway of the main entrance to the building to protect themselves from the cold wind. On such occasions they held the picket signs before them facing the street. Willard Wagner, the Epstein Company's shipping clerk, testified that on one occa- sion during the month of December he went down to the street to help a trucker carry cartons of hat materials up to the Epstein Company premises. While he was carrying a large carton of materials on his way into the building toward the freight elevator one of the pickets blocked his passage and would not let him pass. Wagner politely requested him to step aside, but the picket still refused to let him go through. Wagner then pushed the picket aside with the box and proceeded on his way to the freight elevator. When he returned to the street to pick up another carton of hat materials from the truck the same picket shoved him and ridiculed him. With the exception of this incident there is no other evidence in the record to indicate that any of the Respondent's agents or pickets ever talked to the employees that passed through the picket line each day as they entered or left the building. The Issues and Contentions of the Parties The only real issue presented in this case is whether the Respondent's act of estab- lishing and maintaining its picket line at the main entrance to the building where the Epstein Company is a tenant induced and encouraged the employees of neutral employers, who were required to pass through the picket line, not to perform work inside the building. The Respondent does not contest the General Counsel's con- UNITED HATTERS, CAP & MILLINERY WORKERS UNION 611 tention that an object of the picketing was to bring pressure on the Epstein Company to cease buying hats from the Korber Company. In fact it impliedly concedes this to be the fact in its brief. It insists, however, that the only means it used to bring pressure upon the Epstein Company to yield to its request was to make a public announcement through signs carried by pickets patrolling in front of the building telling the whole world that the Epstein Company was selling nonunion hats made by the Korber Company and appealing to all the customers of the Epstein Company not to buy Korber-made hats. It also insists that its picket line cannot and should not be considered as evidence of inducement and encouragement of neutral employees in this case because, it contends, the legend on its picket signs clearly indicated to everyone that it was directed to customers only. It argues that because of this the employees could not have construed the picketing as a signal or invitation to them to stay away from their work or to refuse to cross the picket line. It contends further that the only purpose it had in mind in establishing its picket line was to persuade the Epstein Company customers not to buy Korber hats. It insists that its intention was to use the picket line only as a means of persuading the Epstein Company and not to persuade neutral employees. It finally argues that the neutral employees understood this to be so because they disregarded the picket line and crossed it during the entire period of the picketing activities. The General Counsel contends, on the other hand, that the Respondent had more than mere "customer picketing" in mind when it established and maintained its picket line in front of the building where the Epstein Company is a tenant. He contends that the Respondent knew or was in a position to know that very few of the Epstein Company customers ever came to the building to pick up their orders and that it also knew that the entrance to the building was used constantly and all hours of the day by neutral employees who had to enter the building in the course of their work. It particularly knew, he asserts, that the truckdrivers of independent trucking companies frequently had to enter and leave the building when they carried cartons to or from the Epstein Company premises. Also, he argues, the Respondent knew there were other neutral employers in the building whose em- ployees had to cross the picket line to go to their places of work in the building. The General Counsel contends that because it knew all these things and what effect a picket line generally has upon employees who have to cross it in order to go to their places of work, it should be held to have intended that its picket line would induce and encourage the employees to stay away from their places of work or to engage in a concerted refusal to perform work in the course of their employ- ment. The Respondent answers this by saying that such was not its intent and that the employees understood that the picket line was not directed to them because all of them crossed the picket line during entire course of the picketing activities and that there was no disruption of the business of the tenants in the building because of the picket line. The General Counsel counters this with the argument that the Respondent cannot claim any credit from the fact that the neutral employees crossed the picket line. In the first place, he says, there is no evidence that they did so be- cause of anything the Respondent said to them during the picketing or that it took any other action to indicate that they could cross the picket line freely. On the contrary, he points out, the Wagner incident indicates that the pickets understood it was being directed to the employees. Finally he points out that in this type of case where the Respondent was clearly bringing economic pressure upon an inno- cent secondary employer to force it to cease doing business with another employer, the fact that the neutral employees crossed the picket line only shows that the in- ducement, although intended, proved unsuccessful and that such proof cannot be considered as a defense to the unfair labor practice committed. This is essentially the Board's position as stated in the Associated Wholesale Grocery of Dallas case, 118 NLRB 1251. The General Counsel further points out in his brief that the Board has repeatedly held that where a labor organization establishes a picket line at employee entrances of a neutral secondary employer to bring pressure upon him to cease doing business with another employer the act of picketing, without more, is sufficient evidence of inducement and encouragement of employees and satisfies the requirement of such proof under Section 8(b) (4) of the Act. He concludes finally that since the object of the Respondent here was clearly to force the Epstein Company to cease doing business with the Korber Company, the Respondent cannot avoid the legal consequence of its picketing activities by the simple device of putting some words on its picket signs indicating an appeal to a few customers of the neutral employer not to buy the products of the struck employer. For the reasons indicated below I find merit to the contentions and arguments made by the General Counsel and reject those made by the Respondent's counsel. 612 DECISIONS OF NATIONAL LABOR RELATIONS BOARD Analysis and Conclusions Object of the picketing I have found that prior to the picketing the Respondent's agent, Jesse Scheinan, requested Irvin Epstein that the Epstein Company cease receiving deliveries of hat. materials from the Korber Company. I have also found that 2 days before the picketing activities commenced, Scheinan, in a conversation with Irvin Epstein, threatened to picket the building where the Epstein Company is a tenant if he- accepted the 44 cartons of straw hats which the Korber Company was sending to the Epstein Company. I have also found that on or about December 4, 1958, the day before the picketing commenced, the Epstein Company accepted the shipment of the 44 cartons of straw hats which Scheinan had told Irvin Epstein was being. made by the Korber Company. I have also found that on the following day, December 5, 1958, the Respondent made good its threat and established its picket: line at the main entrance to the building where the Epstein Company is a tenant. Although a request by a striking union, made directly to a neutral employer who does business with the struck employer, that it cease its business relations with the struck employer and even a threat to picket him if he does not do so, are not, in themselves, violations of the Act, the Board and the courts have frequently held that. such statements may be considered in determining whether picketing activities sub- sequently engaged in by the union were designed to bring unlawful boycott pressure upon the neutral employer by inducing his and other neutral employees to engage in. strike action to accomplish the union's objective. See N.L.R.B. v. Associated Musicians, Local 802, AFL, 226 F. 2d 900 (C.A. 2); N.L.R.B. v. Denver Building- and Construction Trades Council, 193 F. 2d 421, 423-424 (C.A. 10). Viewing, therefore, the Respondent's act of establishing its picket line at the Epstein Company's premises in the light of the Respondent's request and its threat. made to Epstein immediately before the act of picketing took place, I have no difficulty in concluding that one of the purposes of the Respondent's picket line was. to cause the Epstein Company to suffer economic loss by disrupting its business. operations and to involve its employees and the employees of other neutral employers who did business with or performed services which were beneficial to the Epstein Company's business, in the labor dispute which it had with the Korber Company.- That it sought to inflict economic loss on the Epstein Company but cutting off its- flow of materials from other hat manufacturers is patently clear to me from a con- sideration of the setting and background against which the picketing activities were initiated and all of the circumstances which accompanied the picketing activities. Because of this setting and background and the surrounding circumstances, I cannot accept the Respondent's explanation that the only purpose it had in mind when it placed a picket line in front of the Epstein premises was to publicize its dispute with- the Korber Company and to appeal to the Epstein Company's customers not to buy Korber-made hats. On the contrary I find and conclude that one of the purposes, if not the only purpose, with which the Respondent established its picket line at the main entrance to the building was to bring economic pressure upon the Epstein Company to stop purchasing hats from the Korber Company and that it sought to accomplish this by attempting to prevent other hat manufacturers from making. deliveries of their products to the Epstein Company. As part of this plan it used the picket line to induce the drivers of trucking companies, engaged by such other manufacturers, not to cross its picket line on their way to make their deliveries to the Epstein Company premises. In order to fully understand how I have reached the above conclusion, a detailed analysis of the circumstances which surrounded the establishment and the mainte- riance of the picket line by the Respondent is appropriate at this time. It should be recalled that when the first request was made by the Respondent Union's agent, Scheinan, to Irvin Epstein in September of 1958, Epstein did not then reject Scheinan's request. He only told Scheinan that he was not placing any orders . with the Korber Company at that time because it was too early in the season to do so. Scheinan apparently was satisfied then that Epstein might be induced to cooperate with the Respondent in the event its dispute with the Korber Company was not settled by the time the Epstein Company was ready to place its orders for straw hats for the next season. About the middle of October 1958 the Respondent was forced to declare a strike against the Korber Company and to establish a picket line at its plant to enforce its demands. However, the Korber Company resisted' the strike and kept its plant in production hiring strike replacements to make its products. The strike and picketing activities at the Korber plant proving un- successful, the Respondent looked around for other means to bring economic pres- sure against the Korber Company. By the early part of December 1958 it was . UNITED HATTERS, CAP & MILLINERY WORKERS UNION 613 clear to Scheinan that unless he took other action the Respondent 's strike was lost. Pressure on the Korber Company customers to stop buying its product was the answer. It is with this background and setting that Scheinan made his telephone call to Epstein on December 3, 1958. It explains the frantic efforts by Scheinan to get Epstein to agree not to accept the shipment of 44 cartons of straw hats which were on their way from the Korber plant . Scheinan knew that the drivers of the trucking companies being used by Korber could not be relied upon to stop making deliveries to its customers because they were disregarding the Respondent 's picket line at the Korber plant. He also knew , after December 3, 1958, that Epstein could not be persuaded directly to stop buying the Korber products . He decided then to bring pressure against the Epstein Company by placing a picket line in front of the building where it is a tenant. It is clear to me that when Scheinan decided to do this he was not thinking of the pressure he could put on the Epstein Company through its customers because only a few orders were ever picked up by customers from the Epstein Company premises . I cannot believe that Scheinan thought that he could convince the Epstein Company by depriving it of these few local orders . I find rather that he was think- ing of the more effective method of bringing pressure on it by depriving it of its flow of hat materials from the other hat manufacturers . To make this plan succeed, however, it was necessary to secure the cooperation of the drivers of the trucking companies that brought these materials to the Epstein Company premises. The "formidable weapon" of the picket line was the answer to his problem and he used it. That the plan was not successful does not prove that he did not want it to succeed. Perhaps the employees did not feel like cooperating with him for reasons of their own wholly unconnected with the picket sign legend . Perhaps also the Teamsters Union, having been expelled from the AFL-CIO, of which the Respondent is a member, had told its locals not to have their members respect picket lines set up by AFL-CIO labor organizations . We can only speculate about this. On the record as it stands we cannot determine why they did not respect the Respondent's picket line. One thing appears clear , however, and it is that there is no proof to indicate that the reason the employees crossed the picket line was because the Respondent 's agents or pickets told them they could do so. Since the Respondent claims, in effect , that it told them they could do so by the language on its picket sign, a look at the picket sign legend is now in order to deter- mine whether its message was so plain that the employees could not fail to under- stand that the picket line was not being directed to them and that they could cross it freely. A close examination of the language on the picket signs used by the Respondent reveals a curious fact. It did not address the picket signs to any per- son or group of persons in particular . It did not state "Notice to Public Only" or "Notice to Epstein Company Customers " or "Notice to Patrons ." Experienced labor representatives know that these are the usual headings on picket sign legends when "customer picketing" is intended . Scheinan , however, chose to omit such a heading from his picket signs. Then he made a general announcement: "Theo Epstein & Sons sells non-union hats made by the Korber Company." It is clear that this was a statement intended for the whole world, including the neutral em- ployees, informing that the Epstein Company was selling articles made by "non- union" labor . Fearing , perhaps, that left alone this statement might involve him too much with the law , Scheinan added the words "Don 't buy hats made by Korber Hats, Inc." He thus cleverly created the issue in this case as to whether the picket sign was an appeal directed only to Epstein Company customers . When he did this, it must have been with tongue in cheek since he surely was aware of the fact that only a handful of Epstein Company customers ever came there and that cutting their business off would not really hurt the Epstein Company. It is clear from this that the picket signs were intended as more than "customer picketing ." The language is far from clear as an appeal directed solely at the Epstein Company customers. Surely there is nothing on the picket signs which told the employees that the picket- ing was not being directed to them and that they could cross the picket line freely. It is therefore reasonable to infer and I find that Scheinan placed the picket line where he did and used the general language on the picket signs that he did because be hoped that some truckdrivers of the trucking companies engaged by the other hat manufacturers that supplied the Epstein Company would be induced not to cross the picket line when they arrived in front of the building with their trucks on their way to delivering cartons of hats to the Epstein Company premises , and he had good hope and expectation that this result might come about . Truckdrivers of large and well-known trucking companies that operate in more than one State have generally been organized and usually do not cross picket lines. The message that Epstein Company was selling articles made by nonunion employees could be expected to have 614 DECISIONS OF NATIONAL LABOR RELATIONS BOARD a definite effect upon them. He would try it, and even if it succeeded only par- tially, it would disrupt Epstein's business and force it to surrender. That the first drivers who saw the signs did not heed the message did not discourage him. He kept his pickets on the job, even during the freezing weather, in the hope and expecta- tion that some drivers who had not come there before would refuse to cross the picket line. Certainly he did not go through the trouble of doing all this to stop only a handful of Epstein Company customers from buying a few orders of hats from the Epstein Company. In view of the above I conclude that the inclusion of the words "Don't buy Korber Company hats" on the picket signs was a sham and a subterfuge to avoid the con- sequences of what the Respondent knew to be an unlawful act and to provide itself with an argument or contention in the event a secondary boycott charge was filed against it by either the Korber or Epstein Company. In any event, irrespective of whether Scheinan deliberately chose to use general language on his picket sign legend or that he did not thereby intend his picket line to induce the neutral employees, I find that under the conditions and in the setting in which the picketing activities took place, the picket line had a good likelihood of bringing influence and persuasion to bear upon the neutral employees not to perform work behind it. For these reasons I find and conclude that the Respondent's picket line constituted a direct appeal to the neutral employees not to perform work beneficial to the Epstein Company. The fact that it may have been intended also as an appeal to the Epstein Company customers is no defense. I also find and conclude that the picket signs did not "make it plain" to the neutral employees that it was directed solely to the customers of the Epstein Com- pany. In this connection also I am impressed by the fact that during the entire course of the picketing, which extended over a period of some 6 or 7 weeks during the months of December 1958 and January 1959, none of the Respondent's agents or pickets made any efforts, either by words spoken to the employees or by any action taken in connection with its picketing, to make it clear to them that the picket line was not being directed to them and that they could cross the line freely. On the contrary I am compelled to conclude that the Respondent did not wish to give such an impression to the employees. It certainly did not give instructions to its pickets to inform the employees that they could cross the picket line freely. I infer this from the incident which occurred during the picketing when one of the pickets attempted to prevent Wagner, the Epstein Company shipping clerk, from helping the trucking company employee make deliveries of hat materials to the Epstein Company premises. The evidence concerning this incident was submitted to the United States District Court by the representative of the General Counsel in connec- tion with the Section 10(1) proceeding. The Respondent did not call the picket in question or any other picket to explain or contradict the testimony of Wagner either at that time or subsequently at the hearing in the instant proceedings. Neither did it call any of its agents to testify that the picket in question had acted contrary to the Respondent's instructions. There is no explanation on the part of the Respondent as to its failure to call these persons to testify concerning these matters. I infer and find from this not only that the Respondent did not give its pickets instructions to inform the employees that they could cross the picket line freely but also that the pickets themselves believed that the purpose of the picket line was to prevent the neutral employees from making deliveries of materials to the Epstein Company premises. I have examined all of the above circumstances accompanying the picketing activities of Respondent in order to determine whether there could be some support in the record for the Respondent's contention that it established its picket line at the entrance to the building where the Epstein Company is a tenant only to influence customers and not employees. I am compelled to conclude that this explanation of the Respondent does not jibe with the surrounding circumstances and the setting in which the picketing activities were established and maintained. I cannot escape the conviction that the Respondent established its picket line where it did, at least in part, to influence and persuade the employees of neutral employers not to enter the building to make deliveries of materials to the Epstein Company premises. Even if one of the Respondent's purposes was to appeal to the few customers who might have had occasion to come to the Epstein premises to pick up an order, I am convinced that the Respondent also desired, by its picketing, to exert influence and persuasion on neutral employees not to make deliveries of materials to or pickups of products from the Epstein Company premises. I therefore conclude that at least one of the purposes of the picket line was to induce and encourage the employees of neutral employers and that the Respondent engaged in such conduct to accomplish its UNITED HATTERS, CAP & MILLINERY WORKERS UNION 615 object of compelling the Epstein Company to cease accepting further deliveries of hat materials from the Korber Company. The Law Applicable to the Case The Supreme Court of the United States has clearly enunciated some proposi- tions of law concerning the nature and purpose of an industrial picket line. It has clearly adopted the legal proposition that industrial picketing is more than a mere communication of ideas to all who come in contact with the picket line. It recog- nizes clearly that the very presence of a picket line may induce persons who come in contact with it to take action of one kind or another quite irrespective of the nature of the message or the appeal contained on the picket signs . It holds that the very purpose of a picket line is "to exert influences" and that it produces consequences different from other modes of communication. It recognizes that it "evokes re- sponses and exacts loyalties" which are unlike those which flow from appeals by the printed word only. See International Brotherhood of Electrical Workers, Local 501, et at. v. N.L.R.B., 341 U.S. 694, 700; and Hughes et al. v. Superior Court of California, 339 U.S. 460, 464-465. The Supreme Court has also held that the words "inducement and encouragement of employees" as used in Section 8(b) (4) of the Act comprehends all forms of exerting influence or persuasion upon employees to engage in strike action. See International Brotherhood of Electrical Workers, Local 501, et al. v. N.L.R.B., supra. But the Supreme Court did not specifically hold that the response or action which a picket line produces upon employees is that they refuse to perform work behind it. It did not spell out the particular form of loyal action which is expected of employees when they were faced with a picket line in the course of their daily labors. This answer was later provided by the Ninth Circuit Court of Appeals in the case of Printing Specialties and Paper Converters Union, Local 388 v. LeBaron, 171 F. 2d 331, 334. In that case the court clearly stated that a picket line is an invitation to all employees to cooperate with the picketing union by not performing work behind the picket line. From the language used by the courts in the above cases the Board has evolved the labor law doctrine or legal proposition that a picket line induces action wholly unrelated to the literal appeal of the signs carried by the pickets and that the use by a union of the traditional industrial picket line before employee entrances has the tendency and effect of exerting influence and persuasion upon employees not to cross the line to perform work behind it. The Board has recently stated its position as follows: (1) The maintenance of the traditional picket line before employee en- trances-wholly apart from the literal appeal of the signs carried by the pickets- constitutes an act of inducement or encouragement of employees who must perform services behind the picket line, to engage in a concerted refusal to perform services for their employer; and (2) such picketing-whether or not it succeeds in bringing about a strike or concerted refusal by employees to perform work-is within the reach of Section 8(b) (4) of the Act, if it is directed to one of the objectives therein pro- hibited. See Industrial Chrome Plating Co., 121 NLRB 1298 and cases cited in footnote 9. The courts in several recent cases, which have a factual situation sub- stantially similar to the instant case, have sustained the Board's general position that labor organizations use a picket line to exert influence upon and persuade employees who come in contact with it not to cross the line to perform work behind it.2 Although the Second Circuit Court of Appeals has on two occasions criticized the Board's application of this legal proposition in special situations which, it believed, required particular findings as to the actual intent with which the picketing union established its picket line 3 in another case in which there were no special circum- stances which required a specific finding of actual intent, it adopted and applied the general proposition, enunciated by the Ninth Circuit Court of Appeals, that the normal purpose of a picket line is to influence and persuade employees not to cross the line to perform work behind it. 2Dallas General Drivers, Warehousemen & Helpers, Local No. 745, AFL-CIO (Asso- cia-ted Wholesale Grocery of Dallas), 118 NLRB 1251, enfd. 264 F. 2d 642 (C.A. 5) ; Laundry, Linen Supply & Dry Cleaning Drivers, Local 928 (Southern Service Co.), 118 NLRB 1435, enfd. 262 F. 2d 617 (C.A. 9) ; Associated Musicians, Local 802, AFL (Gotham Broadcasting Corp.), 110 NLRB 2166, enfd. 226 F. 2d 900 (C.A. 2), cert. denied 351 U.S. 962. a N.L.R.B. v. Business Machine and Office Appliance Mechanics Conference Board, etc. (Royal Typewriter Co.), 228 F. 2d 553; N.L.R.B. v. Local 50, Bakery & Confectionery Workers International Union (Arnold Bakers, Inc.), 245 F. 2d 542. 4 N.L.R.B. v. Associated Musicians, Local 802 , AFL (Gotham Broadcasting Corp ), supra. 616 DECISIONS OF NATIONAL LABOR RELATIONS BOARD As a Trial Examiner of the Board I am bound to follow the Board's precedents and to apply its general theory that a picket line, without more, is an inducement and encouragement of employees not to cross the line to perform work behind it. How- ever, I have carefully examined all of the circumstances which accompanied the picketing to determine whether there are any special considerations which would make the application of the Board's rule inconsistent with the facts or legally doubt- ful. I have found no such special circumstances present in this case. On the con- trary, I have found that the case is one which makes the application of the Board's rule particularly appropriate. The Respondent in its brief has urged that there is a special circumstance present in this case which prevents the application of the Board's rule. It points out that the fact that none of the neutral employees refused to cross the picket line makes the application of the Board's rule inapplicable, both factually and legally. To support its argument it cites the Royal Typewriter and Arnold Bakers cases cited above in which the Second Circuit Court said the Board was not warranted in applying its rule. But a close examination of those cases reveals that in addition to the fact that the employees crossed the picket line and performed their work, there was another special circumstance which, considered in the light of that fact, impelled the court to refuse to apply the Board's rule. In the Royal Typewriter case, the court noted that the picketing union took steps to "make it plain" to the neutral employees that they should cross the picket line and continue to perform their work behind it. This special circumstance coupled with the fact that the employees did cross the line and performed their work behind it, impelled the court not to apply the Board's rule and to require a specific finding as to the intent with which the union estab- lished its picket line. Since the Trial Examiner and the Board had not made such a finding it felt it was not in a position to enforce the Board's order. In the Arnold Bakers case the court again found a special circumstance in addi- tion to the fact that the employees crossed the picket line and performed their usual work behind it. In that case the court found evidence in the record which indicated that the picketing union had made it clear to the employer being picketed and his employees that all it was seeking to do was to convince the employees to join its ranks as members. It noted particularly that the union had given clear instructions to its pickets to tell the employees, if they asked, that they were not being solicited to engage in strike action and that they should cross the picket line and go to work. It also found that the pickets followed these instructions and so informed the em- ployees who were curious to know what the purpose of the picket line was. It is clear, therefore, that in each case there were special circumstances which made the fact of the employees having crossed the picket line and performed their work particularly significant. In the Association Musicians case, supra, decided by the same court, there were no special circumstances in addition to the fact that the employees crossed the picket line and performed their work. There the court attached no significance to that fact and did not hesitate to apply the Board's rule. Since I have found that there are no special circumstances in this case which make the Board's rule inappropriate, I cannot give the fact that the employees crossed the picket line and performed their work any significance. My examination of the set- ting and the circumstances in which the picketing activities took place not only makes it particularly. appropriate to apply the Board's rule but confirms the general in- ference which the Board draws from the fact that the act of picketing takes place where neutral employees must pass in order to perform their daily work. Thus, the fact that the Respondent failed to clearly limit its picket sign legend to the Epstein Company customers; that it failed to inform the employees, by either words or actions taken concomitant with its picketing activities, that they could and should cross the picket line freely to perform their work behind it; and finally that it failed to instruct its pickets that the picket line was not being directed at neutral employees and to so inform them if asked, all make the application of the Board's rule appro- priate and lead to the conclusion that the Respondent intended and desired the neutral employees to engage in strike action. In a recent case 5 the Board made it clear that where the picketing union does not take steps to "make it plain" to the neutral employees that they could, and should cross the picket line to perform their work behind it, the fact that the employees crossed the line and performed their work has no significance and is not a defense to the charge. 6 District Distributors, Incorporated , 122 NLRB 1259. UNITED HATTERS, CAP & MILLINERY WORKERS UNION 617 Respondent advances the further argument that the Board and the courts have recognized the right of a striking union to engage in secondary picketing at the place or places of business of all those who buy the products of the struck employer- whether they be wholesalers or retailers-in order to appeal to the customers of those establishments not to buy the products made by struck employers. I readily con- cede that a striking union has that right but I hold that it must exercise that right in such a manner and under such conditions that neutral employees who must cross the picket line to perform work at the premises being picketed are clearly informed by the striking union that the picket line is not meant for them and that they can and should cross it to perform their work behind it. I find and conclude from a care- ful examination of the record as a whole that the Respondent did not make it clear to the neutral employees who had to cross its picket line to perform work in the building where the Epstein Company premises are located that its picket line was not meant for them and that it took no steps to inform them that they could cross the picket line freely and perform their usual work behind it. On the contrary, I have found that the Respondent conducted its picketing activities in such a manner and under such conditions as to lead employees to believe that the picket line was addressed to them, and that they were expected not to cross it. Ultimate Fact Conclusions 1. Between on or about December 5, 1958, and January 22, 1959, the Respond- ent maintained a picket line at the main entrance to the building located at 38 Hopkins Place, Baltimore, where the Epstein Company and other neutral em- ployers are tenants and conduct their business. 2. The Respondent placed its picket line in front of the building mentioned above and conducted its picketing activities at that place in such a manner and under such conditions as to induce and encourage the employees of neutral employers who had to cross its picket line to perform work in said building, to engage in a strike or a concerted refusal to perform work for their respective employers. 3. An object of the picketing activities of the Respondent mentioned above was to compel the Epstein Company to cease using, selling, handling, transporting, or otherwise dealing in products manufactured by the Korber Company and to cease doing business with it. IV. THE EFFECT OF THE UNFAIR LABOR PRACTICES UPON COMMERCE The activities of the Respondent, described above, occurring in connection with the operations of the Epstein and Korber companies, described above in section I, 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 commerce and the free flow of commerce. V. THE REMEDY Having found that the Respondent has violated Section 8(b) (4) (A) of the Act, it will be recommended that it cease and desist therefrom and take certain affirma- tive action designed to effectuate the policies of the Act. CONCLUSIONS OF LAW 1. The Epstein Company and the Korber Company are employers engaged in commerce within the meaning of Section 2(6) and (7) of the Act. 2. United Hatters, Cap and Millinery Workers Union, AFL-CIO, is a labor organization within the meaning of Section 2(5) of the Act. 3. By inducing and encouraging employees of the Epstein Company and of other neutral employers who are tenants of the building located at 38 Hopkins Place, Baltimore, and the employees of independent trucking companies making deliveries of materials to and pickups of products from the premises of said tenants, to engage in a strike or concerted refusal in the course of their employment to perform services for their respective employers with an object of forcing or requiring the Epstein Company to cease doing business with the Korber Company, the Respondent engaged in conduct which violated the provisions of Section 8(b) (4) (A) of the Act. 4. The activities of the Respondent described above constitute unfair labor prac- tices within the meaning of Section 8(b)(4)(A) of the Act. [Recommendations omitted from publication.] Copy with citationCopy as parenthetical citation