Westwood Import Co., Inc.Download PDFNational Labor Relations Board - Board DecisionsAug 27, 1980251 N.L.R.B. 1213 (N.L.R.B. 1980) Copy Citation WES-T'(()()) IlPORI COMPANY. INC 1213 Westwood Import Company, Inc. and Office and Professional Employees Union, Local 3, Office and Professional Employees International Union, AFL-CIO, CLC Gamut Designs, Inc., d/b/a Westwood Import Com- pany and Office and Professional Employees Union, Local 3, Office and Professional Em- ployees International Union, AFL-CIO, CLC. Cases 32-CA-1813 and 32-CA-1977 August 27, 1980 DECISION AND ORDER BY CHAIRMAN FANNING AND MEMBERS JENKINS AND TRUESDALE On January 25, 1980, Administrative Law Judge Jerrold H. Shapiro issued the attached Decision in this proceeding. Thereafter, Respondents filed ex- ceptions and a supporting brief, and the General Counsel filed a brief in response to Respondents' exceptions. Pursuant to the provisions of Section 3(b) of the National Labor Relations Act, as amended, the Na- tional Labor Relations Board has delegated its au- thority in this proceeding to a three-member panel. The Board has considered the record and the at- tached Decision in light of the exceptions and briefs and has decided to affirm the rulings, find- ings,' and conclusions of the Administrative Law Judge and to adopt his recommended Order, as amplified herein. The amended complaint alleges, inter alia, that Respondent Westwood Import Company, Inc. (Westwood), violated Section 8(a)(5) and (1) of the Act by withdrawing recognition from the Union as the exclusive collective-bargaining representative of the unit employees employed at its Hayward, California, facility; and by refusing to comply with the terms of the collective-bargaining agreement at the Hayward facility. There is no material dispute over the facts. Westwood and the Union negotiated a collective-bargaining agreement effective from December 30, 1976, through December 30, 1979.2 In early February, Westwood notified the Union and its employees of its intention to relocate its business on April 2 to a facility in Hayward, Cali- fornia, located across San Francisco Bay approxi- mately 30-35 miles from the old San Francisco fa- cility. Westwood welcomed employee transfers and indicated that it would assist transferring employ- ees. On February 12, 13, 16, and 20, representatives from Westwood and the Union met and bargained I In ec B.2, of his Decision, in the nexl to last paragraph, he Admin- istratlve Law Judge inadverlently designated April 2, 1979,. as the dale Gamut Designs, Inc. assumed control of the usiness That date should he corrected to read Jul' 20, 1979 a All dates are in 1979 unless otherwise indicated 251 NLRB No. 162 over the effects of the relocation and during the last of these sessions the parties reached an agree- ment. However, during the negotiations West ood proposed that the Union agree to terminate the ex- isting contract after the relocation; the Union re- jected this proposal, insisting that the agreement would continue in effect after the relocation. The normal employee complement in San Francisco numbered 21; however, by March 30, the old facili- ty's final day of operation, the unit employee com- plement totaled 18. Of these 18 employees. 15 transferred to Hayward, including 6 employees who were hired from the Hayward area and who worked in San Francisco for periods of 1 to 6 weeks with the understanding they would transfer to Hayward at the time of the relocation.3 After the relocation, Westwood refused to recognize the Union as the Hayward unit employees' exclusive bargaining representative, and it also refused to comply with the terms of the above-described col- lective-bargaining agreement. The Administrative Law Judge found that the Union remained the unit employees' bargaining representative after the relo- cation and he further found that the agreement continued in effect after the relocation. There is no allegation that the relocation was motivated by an- tiunion or other unlawful reasons, nor does the General Counsel contend that Westwood failed to satisfy its obligation to bargain with the Union over the effects of the relocation. Respondents except, inter alia, to the Administra- tive Law Judge's application of "contract-bar prin- ciples," contending he erred by finding that a con- clusive presumption existed with respect to the Union's continued majority status at the Hayward facility; by failing to consider the defense that Westwood's withdrawal of recognition after the re- location was lawful because the Union did not in fact enjoy the majority support of the unit employ- ees at Hayward, and/or because Westwood held a good-faith doubt about the Union's majority repre- sentative status at Hayward; and by refusing to allow the introduction of evidence in support of Westwood's good-faith doubt contentions. We have carefully considered Respondents' contentions and find them to be without merit. The well-established rule is that an employer may not normally refuse to continue dealing with a union during the period in which their contract is a bar for purposes of our representation proceedings. In Sanson Hosiery Mills, Inc.,4 the Board held that the employer violated Section 8(a)(5) of the Act by withdrawing recognition from the union in the ' One emploxec uho transferred from Sall F'ariicsco as cm nmllo) cd Il a nonunit posl ion at Ha ,sard 42 NILRB 111)2, 103 I195)1. einfd 195 1 : 2d 350) 15lh C'lr 52) 1214 I)EFCISI()NS OF NATIONAL L.ABOR RELATIONS BOARI) "period during which the contract was a bar and no question concerning representation might valid- ly be raised .... " In Hexton Furniture Company,5 the Board discussed the rationale behind conform- ing the application of Section 8(a)(5) of the Act and the contract-bar rule under which the Board refuses to entertain a representation petition during the term of a valid collective-bargaining agreement. The Board noted that, if the employer or another labor organization had filed a petition for election during the term of the contract between the em- ployer and the union, the Board would have dis- missed it as premature. Accordingly, it followed that, during the period in which the contract acted as a bar, the employer was obligated to continue to recognize and bargain with the union pursuant to the requirements of Section 8 of the Act. Other- wise, the employer could unilaterally eliminate or change its employees' bargaining representative at a time when the Board would refuse to allow such a change. 6 The effect of a company relocating on the afore- mentioned rules is not substantial. The Board has held on numerous occasions that an existing and ef- fective collective-bargaining agreement remains in effect following a relocation, provided operations and equipment remain substantially the same at the new location, and a substantial percentage of the employees at the old plant transfer to the new loca- tion. 7 Here, Westwood relocated during the term of an existing collective-bargaining agreement, Westwood operations remained substantially the same after the relocation, and a substantial percent- age of the employees transferred to the Hayward plant." The various cases relied on by Respondents con- cerning relocations are clearly distinguishable from the instant case. In Mass. Machine & Stamping, Inc. III NLRB 342 (1955). s See Pioineer Inn .4socria(. d/bla Pioneer Inn and Pioneer Inn Casino. 228 Nl.RB 1263 (1977), enfd. 578 F2d 835 (9th Cir 1978); Marcus Truck- ing Compan. Inc.. 126 NLRB 1080 (1960). enfd. 286 F.2d 583 (2d Cir 1961). and Shulnrock Dairy. Inc, ei at, 119 NLRB 998 (1957), and 124 NlIRB 494 (1959), enfd 280 F2d 665 (DC Cir. 1960), cert. denied 364 LI S 892 lricor Producis. Inc. and/or C & J Pattern Co., 239 NLRB 65 (1978); Lutheran Ilomrne and Hopirltas, Inc. d/b/a Fairlawn Care Center, 233 NLRH 1025 (1977): W 7' Grant Company, 197 NLRB 955 (1972); and International Paper Company, 150 N.RB 1252, 1258-59 (1965). M We agree with the Administrative Law Judge that those employees who were hired in the Hayward area and trained from I to 6 weeks in San Francisco should be counted as part of the employee complement that transferred from the old facility The Arrow Company, a Division of C/lue,i. Peabody & Co., Inc., 147 NLRB 829 (1964). Moreover, even if those employees were not included as part of the employee complement that transferred, we would find that a sufficiently large number of em- plolees transferred to constitute a substantial percentage. By the end of April 1979, when the Hayward facility was fully operational. 7 of the 18 unit employees employed there were transferees from San Francisco, or approximately 40 percent See W F. Grant Co., supra at 956, where the Board found that 34 transferring employees out of a total employee com- plme:nt of 75 at the new location constituted a substantial percentage (formerly Massachusetts Machine Shop, Inc.),9 the collective-bargaining agreement at the old facility terminated at the time of the move under a specific contract provision. After the relocation, the com- pany refused to recognize the union, claiming that it held a good-faith doubt about the union's contin- ued majority representative status at the new facili- ty. As here, in Mass. Machine the company's oper- ations at the new facility continued substantially unchanged from the old plant's operations and the relocation was accompanied by the transfer of a substantial percentage of employees from the old to the new facility. The Board in that case considered the company's claim of good-faith doubt about the union's majority status at the new facility, and found that the company's claim was not based on legitimate considerations. As a result, the Board concluded that the company violated Section 8(a)(5) by refusing to recognize and bargain with the union at the new facility. Respondents take the position that, at the very minimum, Mass. Machine stands for the proposition that a company may always raise good-faith doubt claims after a relocation.'° But that interpretation fails to recognize that in Mass. Machine, unlike here, the collective-bargaining agreement terminat- ed at the time of the relocation. That distinction is crucial. After the expiration of a valid collective- bargaining agreement a union enjoys a rebuttable presumption that its majority representatives status continues. t1 Such a presumption may be effective- ly rebutted if the employer affirmatively establishes either (I1) that at the time of the refusal to recog- nize the union it in fact no longer enjoyed the ma- jority support of the unit employees; or (2) that the employer's refusal was predicated on a good-faith doubt, based on objective considerations, of the union's majority status. 2 However, the burden of rebutting the presumption rests on the party who would do so.'3 As previously noted, in Mass. Ma- chine there was no agreement in effect after the re- ' 231 NLRB 801 (1977), enforcement denied 578 F2d 15 (1st Cir 1978). ' Actually, Respondents interpret the prior case law as holding that a relocation obviates completely a company's obligation to recognize a union, and to honor the terms of a current collective-bargaining agree- ment, at a new facility To the extent that las Machine is inconsistenlt with that interpretation, Respondents contend that it marks a departure from the established precedent t" errell Machine Company 173 NLRB 1480 (1969). enfd 427 F.2d 1088 (4th Cir. 1970): and Celaneve Corporation of America, 95 NLRB 664 (1951) " Bartenders. Hotel, and Restaurant Employers Bargaining Association of Pocatello, Idaho and its Employer-Members. 213 NLRB 651 (1974): and ierrell Machine Co. supra This same rebuttable presumption applies when there is no agreement in effect upon the expiration of the first year following a union's certification. ':' Barrington Plaza and Tragniew. Inc. 185 NLRB 962 (1970). en- forcement denied on other grounds sub nom N 1. R B v Tragniew, Inc., and Conolidated Hotels of California. 470 F 2d 669 (9th Cir 1972) WESTIW()OD IMPORT COMPANY. INC 1215 location and, consequently, the company could le- gitimately raise good-faith doubt contentions as a defense to the charge that it unlawfully withdrew recognition. From the foregoing discussion, it is readily apparent that Mass. Machine provides no support for Respondents' interpretation of Westwood's bargaining obligation after the reloca- tion to Hayward.' 4 At footnote 19 of his Decision, the Administra- tive Law Judge distinguished some of the cases relied upon by Respondents from the instant case on the ground that those former cases did not in- volve relocations during the term of a collective- bargaining agreement. Respondents contend that the Administrative Law Judge was wrong because two of the cases cited did, in fact, present fact pat- terns involving relocations during the term of an agreement. In Respondents' view, these two cases, Mass. Machine & Stamping, supra, and Fraser & Johnston Company,'5 along with the additional case of Westinghouse Electric Corporation, ' support their contention that the Board has found that an employer may withdraw recognition from a union after a relocation, even if the relocation occurs during the term of an existing collective-bargaining agreement. However, careful examination reveals that Respondents have misconstrued the findings in those cases. While Respondents are correct, in small part, in their assertion that the Administrative Law Judge erred in his attempt to distinguish between the cases on the sole basis of whether the relocation occurred during the term of a collective-bargaining agreement, nonetheless, the cases raised by Re- spondents are clearly inapposite from the instant proceeding and do not impinge upon the overall validity of the Administrative Law Judge's analy- sis, findings, and conclusions. As discussed above, the relocation in Mass. Machine did not occur during the term of an effective agreement and thus Respondents' reliance on that case is misplaced. Similarly, in Westinghouse Electric Corporation, the Board found that the new facility (Bay Bridge) in- volved there did not constitute a relocation, but rather constituted a completely new facility with operations essentially unrelated and distinct from the employer's other facility (Parker Road). Indeed '' As notled above, in Mass. Machine a crucial elemenl a thile fact that employees from the old locatlion comprised a suhstantial percentage Ill of 21) of the employees at the nes location Without this essential fact, the fact pattern in Mass Machine would have closely resembled the pattern presented in The Pierce Governor Company, Inc., 164 NLRB 97 (1967), enfd. sub nom. International Union. United Automobile. Aerospace. and Agricultural Implement Workers of .4merica (UAWI v N L.R.B.. 394 F.2d 757 (D.C. Cir. 1968), where the Board found that the relocating em- ployer had no duty to recognize and bargain with the union at the new facility. 's 189 NLRB 142 (1971), enfd in part 469 F2d 1259 (9th Cir 1972) ' 174 NLRB 636 (1969) the operations at Parker Road continued substan- tially unchanged after the establishment of the Bay Bridge plant. For that reason, the Board found that the company had no obligation to recognize and bargain with the Union at Bay Bridge, unless and until the union established that it had obtained the support of a majority of the unit employees em- ployed at that facility. Finally, although Fraser & Johnston, the other case raised by Respondents, did involve a reloca- tion occurring during the term of a collective-bar- gaining agreement, that case also is clearly distin- guishable from the instant case. In a number of in- stances the Board has considered cases involving relocations accompanied by attendant unfair labor practices. Usually, the unfair labor practices have involved an employer's failure to satisfy its duty to bargain with its employees' representative about the effects of a relocation, including the terms under which employees will be allowed to trans- fer. 17 In other instances, the unfair labor practices have involved an attempt by an employer to use a relocation for valid economic reasons as a method of eliminating the union.'S Another fact present in these cases is the transfer of few, if any, employees from the old facility to the new facility.' 9 The Board's approach in this type of case has remained constant. After finding that an employer has com- mitted this type of unfair labor practice, the Board has then examined the question of whether a ma- jority of the unit employees at the new facility would have been comprised of employees from the old facility had it not been for the employer's un- lawful activity. If the facts show that a majority would not have transferred in any event, then the Board has found that the employer is not obligated to bargain with the union at the new location unless the union newly establishes its majority sup- port among the unit employees. 21 On the other '7 ifrasr d Jhnoion. upra. he (pcr hermnomtlr Cropany, lil NLRB 1902 (1966). enfd in part 376 F2d 684 (2d Cir 1967): Rr'i IrucA and rati-er Manufacruring Compun. In.. tr al. 1() NLRB 994 (1453) M Alhlied Mil., Inc. 218 NLRB 281 (1975) Ilel/rove Binder. Inc. and Gruphics A4rt I;nishing, Inc., 204 NLRB 499 (1973) and Juac Lil and Jo Leviruan d/b/a California Foolwear Company. 114 NL RB 765 (1955), enfd 246 F 2d 88b (9th Cir 1957) FEen in this tpe of case where a re- location is combined with attendant unfair labor practlces. to a consider- able extent contract-bar principles are interwoven into the applicable la" See the Board's discussion in California f-oor ear Co., supra at 7t,q77( "' 'this factor distinguishes cases n this category from cases in s hich a relocation has occurred with attendant unfair labor practices but in which a majority of the employees in the unit at the ness facility trans- ferred from the old facility. In the latter type of case, there is no necessi- ty to examine whether but for the relocating employer's unfair labor practices additional unit employees would have transferred Since the re- location occurred during the term of an agreement and since a majority of the employees in the new facility transferred from the old facility, the employer is obligated to recognize the union, and to honor the terms of the contract, at the new facility 2t' Brmwn Truck and Trailer Manufacturing Company. Inc, vupra - 1216 DECISIONS OF NATIONAL LABOR RELATIONS BOARD hand, if the facts show that but for the company's unfair labor practices a majority or some significant portion of the unit employees at the new location would have been composed of employees from the old location, then the Board has found that the company is required to recognize and bargain with the union at the new facility.2 1 Furthermore, if the relocation occurred during the term of an agree- ment, then the employer is also required to honor the terms of the agreement at the new facility as in Fraser & Johnston.22 Thus, the instant case differs from the type of case exemplified by Fraser & Johnston because of the existence in that latter type of case of unfair labor practices that prevent union- represented employees from an old facility from transferring to a new facility in which they would constitute a majority or some significant portion of the unit employees. Accordingly, for the foregoing reasons we con- clude that the Administrative Law Judge was cor- rect in his application of contract-bar principles in his findings and conclusions pertaining to Respond- ent Westwood's duty to bargain with the Union, and to honor the terms of the collective-bargaining agreement, at the Hayward facility. We have care- fully examined Respondents' additional exceptions and similarly find them to be without merit. ORDER Pursuant to Section 10(c) of the National Labor Relations Act, as amended, the National Labor Re- lations Board adopts as its Order the recommended Order of the Administrative Law Judge and hereby orders that the Respondents, Westwood Import Company, Inc., and Gamut Designs, Inc., d/b/a Westwood Import Company, their respec- tive officers, agents, successors, and assigns, shall take the action set forth in the said recommended Order, except that the attached Appendix A is sub- stituted for that of the Administrative Law Judge. 23 21 Cooper Thermometer Company. supra; and California Footwear Co., supra 2 See also Helrose Bindery, Inc., supra, and CaliJbrnia Footwear Co.. supra. 23 The Administrative Law Judge inadvertently failed to conform the posting notice marked "Appendix A" to his recommended Order We have corrected said notice accordingly. APPENDIX A NOTICE To EMPLOYEES POSTED BY ORDER OF THE NATIONAL LABOR RIELATIONS BOARD An Agency of the United States Government WE WILL NOT, in the event we resume oper- ations, engage in the following conduct: (a) refuse to recognize and bargain with the Office and Professional Employees Union, Local 3, Office and Professional Employees International Union, AFL-CIO, CLC, as the exclusive bargaining representative of all of our employees, excluding guards, managerial, supervisory, sales, warehouse, professional, and confidential employees; (b) refuse to give effect to the terms and conditions of a collec- tive-bargaining agreement with the above-de- scribed Union without the consent of the Union, or repudiate such an agreement; (c) in- terrogate employees about their union mem- bership, sympathies, or activities; (d) refuse to bargain collectively with the above-described Union by refusing to supply it with relevant information upon request; and (e) in any like or related manner interfere with, restrain, or coerce employees in the exercise of the rights guaranteed them in Section 7 of the National Labor Relations Act, as amended. WE WILL jointly and severally with Gamut Designs, Inc., d/b/a Westwood Import Com- pany make whole the employees represented by the above-described Union for any loss of employment benefits for the period on and after April 2, 1979, due to our failure to give effect to our collective-bargaining agreement with the Union, with interest, and continue such payments until such time as Gamut De- signs, Inc., d/b/a Westwood Import Company, at the request of the Union, has restored the employees' terms and conditions of employ- ment to what they were prior to the time we repudiated our agreement with the Union. WESTWOOD IMPORT COMPANY, INC. DECISION STATEMENT OF THE CASE JERROLD H. SHAPIRO, Administrative Law Judge: The hearing in this consolidated proceeding took place Octo- ber 29 and 30, 1979, and is based on unfair labor practice charges filed by Office and Professional Employees Union, Local 3, Office and Professional Employees In- ternational Union, AFL-CIO, CLC, herein called the WESTWOOD IMPORT COMPANY. INC. 1217 Union,' in Case 32-CA-1813 on May 23, 1979, against Westwood Import Company, Inc.,2 herein called Re- spondent Westwood, and in Case 32-CA-1977 on July 27, 1979, against Gamut Designs, Inc., d/b/a Westwood Import Company, herein called Respondent Gamut. On September 19, 1979, the General Counsel of the National Labor Relations Board issued an amended consolidated complaint in these cases alleging that Respondents violat- ed Section 8(a)(1) and (5) of the National Labor Rela- tions Act, herein called the Act.3 Specifically, the con- solidated complaint alleges that Respondent Westwood violated Section 8(a)(1) of the Act by interrogating an employee about the employees' union activities and vio- lated Section 8(a)(5) and (1) of the Act by withdrawing recognition from the Union and refusing to honor its col- lective-bargaining agreement with the Union when, in April 1979, Respondent Westwood relocated its place of business from San Francisco, California, to Hayward, California. The consolidated complaint further alleges that Respondent Gamut, which purchased and took over the operation of Respondent Westwood's business in July 1979, violated Section 8(a)(5) and (1) of the Act when it refused to recognize and bargain with the Union as the collective-bargaining representative of the employees at the Hayward facility and that Respondents violated Sec- tion 8(a)(5) and (1) of the Act by refusing to comply with the Union's request for information about the sale. Respondents filed an answer to the amended consoli- dated complaint, denying the commission of the alleged unfair labor practices. Upon the entire record, including my observation of the witnesses, and on consideration of the briefs, I hereby make the following: FINDINGS OF FACT I. THE ALLEGED UNFAIR LABOR PRACTICES A. Respondent Westwood Relocates its Business and Refuses To Recognize the Union as the Employees' Collective-Bargaining Representative at the New Location 1. The evidence During the time material herein Respondent Westwood imported and sold housewares and gifts to business enterprises. Prior to April 2, 1979, 4 it conducted its business at 290 Division Street, San Francisco, Cali- fornia. In 1976 the Union filed a representation petition with the National Labor Relations Board seeking to rep- resent the Company's employees and, pursuant to an election agreement entered into by the Union and Re- spondent Westwood, approved by the Board's Regional Director, the Board conducted a secret ballot election at the San Francisco facility. A majority of the employees The Union is admittedly a labor organization within the maaning of Section 2(5) of the Act. 2 Name appears as corrected at the hearing. 3 The record establishes that Respondents are employers engaged in commerce within the meaning of Sec. 2(6) and (7) of the Act and meet the National Labor Relations oard's applicable discretionary jurisdic- tional standard 4 Unless otherwise specified all dates herein refer tI, the ear 1979 in an appropriate unit cast their ballots for union repre- sentation. The tally of ballots shows that, of approxi- mately 20 eligible voters, 12 cast their ballots for the Union, 7 against, and there was I challenged ballot. On September 2, 1976, the Board certified the Union as the exclusive collective-bargaining representative of the em- ployees in the following appropriate unit: All employees of Westwood Imports, Inc., at its fa- cility located at 290 Division Street, San Francisco, California, as listed in the attached stipulation; ex- cluding all guards, managerial, supervisory, sales, professional and confidential employees as defined in the Act. Thereafter, in 1976 the Union and Respondent Westwood negotiated a collective-bargaining agreement effective from December 30, 1976, until December 30, 1979. Article 1, section 1, entitled "Union Recognition" reads as follows: The Company recognizes the Union as the sole col- lective bargaining agent . . . pursuant to the certifi- cation of representative by the [Board] dated the 2nd day of September 1976 for all employees of [Respondent Westwood] at its facility located at 290 Division Street, San Francisco, California 94103; ex- cluding all guards, managerial, supervisory, sales, professional and confidential employees, as defined by the Act. The collective-bargaining agreement also contains a valid union-security clause which requires new hires to become and remain members of the Union after complet- ing a 60-day probationary period. However, it permitted employees who were employed prior to the effective date of the contract to have the option of joining or not joining the Union. Also, the agreement contains a dues- checkoff clause which provides for the deduction of the employees' monthly dues by the Employer for those em- ployees who give the Company written authorization. In January 1978, in Case 20-UD-263, an employee pe- titioned the National Labor Relations Board to rescind the Union's authority to enter into the contractual union- security clause. On February 14, 1978, an election was held pursuant to this petition to determine whether the employees desired to withdraw the Union's authority to require membership in the Union pursuant to the con- tractual union-security provision. The employees voted 17 to 4 in favor of retaining the union-security provision. In addition to its managerial and supervisory employ- ees, Respondent Westwood employed clerical employ- ees, salespersons, and utility employees at the San Fran- cisco facility. The clerical employees and utility employ- ees were covered by the collective-bargaining agree- ment. The usual complement of unit employees covered by the collective-bargaining agreement totaled 22: office staff, 8; computer room, 2; foreign order room, 2; ac- counting, 4; customer service, 1; receptionist, 1; secre- tary, 1; and utility employees, 3. The San Francisco fa- cility did not employ any warehouse employees bacause the Company received and shipped its merchandise from a public warehouse in Oakland, California, using employ- 1218 DECISIONS OF NATIONAL LABOR RELATIONS BOARD ees employed by the employer who operated that ware- house. The three utility employees employed by the Company picked up sample merchandise at the public warehouse, which they stocked in the Company's sample storeroom, and packed this merchandise for delivery to sales representatives and trade shows. They also worked on the Company's catalog section and picked up and de- livered the mail. On Friday, March 30, Respondent Westwood closed its San Francisco facility and relocated its business to a facility in Hayward, California, where, on Monday, April 2, it commenced business operations. 5 The distance between the two facilities is between 30 and 35 miles. The two facilities are located within the same "labor area"; they are located within "an economically integrat- ed [area] within which workers may readily change jobs without changing their place of residence." See U.S. De- partment of Labor Employment and Training Adminis- tration, Directory of Important Labor Areas, at pages I and 5 (1978). There is no contention or evidence that the decision to relocate was motivated by anything other than a legiti- mate business purpose or that it was motivated by a desire to escape from the terms of the collective-bargain- ing agreement. The only evidence adduced on the sub- ject of the Company's motive for relocating its business was the testimony of Harry Hovan, the Company's vice president, that management informed the San Francisco employees "that the Company was planning to move to Hayward for various reasons; control [and] efficiency." Early in February representatives of Respondent Westwood notified the Union and the employees of the Company's intent to relocate its business on April 2 to Hayward and indicated to the employees that the em- ployees were welcome to transfer and that management would do all that it could to assist those who wanted to transfer. During February and March representatives of Respondent Westwood escorted groups of employees to the new location in Hayward in order to give them an idea of what the new facility was like and how to get there, so that the employees could intelligently decide whether or not they wanted to transfer. During February, on February 12, 13, 16, and 20, ne- gotiators for the Union and the Company met and bar- gained about the effects upon the employees of the relo- cation of the San Francisco facility to Hayward. The result was that on February 20 the negotiators reached an agreement which on or about February 22 was rati- fied by the Union's membership. The agreement in sub- stance provided that, for the employees who elected not to transfer to Hayward, the Company would not chal- lenge their claims for unemployment insurance benefits and would pay I week severance pay for each year of service up to a maximum of 4 weeks' pay to those em- ployees who remained in the Company's employ until March 31. And, for the employees who elected to trans- fer to Hayward and who had completed 1 year of serv- ice by March 31, the Company agreed to pay a $75-a- 5 As described infra, late in February Respondent ceased using a public warehouse to receive and ship its merchandise and commenced to operate its own warehouse at the Hayward facility. using its own sware- house employees. month travel allowance with certain qualifications. During the negotiations which resulted in this agree- ment, the Company's nsgotiators proposed that, as part of any agreement involving compensation for the em- ployees affected by the relocation, the Union agree to terminate the existing collective-bargaining agreement on the date of the relocation. The Union's negotiators re- jected this proposal and took the position that their con- tract with the Company would continue to be a valid one even after the relocation. And, in its letter of Febru- ary 22 notifying the Company that the Union's member- ship had ratified the agreement concerning the employ- ees affected by the relocation, the Union specifically ad- vised the Company that "the Union is not willing to ter- minate the collective bargaining agreement prior to its normal expiration." On April 2, as indicated supra, Respondent Westwood relocated its business operation from San Francisco, Cali- fornia, to Hayward, California. Thereafter, Respondent Westwood sold substantially the same merchandise and did business with substantially the same customers and suppliers and operated with the same number of depart- ments as it had done prior to the relocation, except, as described infra, a warehouse was added. Also, all super- visory and managerial personnel except for the account- ing manager transferred to Hayward, where they re- tained the same positions and performed the same duties. As previously noted, the usual complement of bargaining unit employees at San Francisco, totaled 22, whereas the usual complement of unit employees at Hayward totaled 17. On March 30, the last day on which the San Francisco facility operated, 18 bargaining unit employees were em- ployed there. Of the 18, 15 elected to transfer to the Hayward facility and on April 2 commenced work there." In addition to the three unit employees who on March 31 elected not to transfer to Hayward, there were 12 other unit employees who voluntarily terminated their employment in February and March after the Company announced that effective April I it intended to relocate its business to Hayward.7 In order to replace these em- ployees, the Company during February and March placed help wanted advertisements in newspapers pub- lished in the vicinity of the Hayward facility and, as a result, during February and March hired six employees who lived in the vicinity of the Hayward facility who began work in the San Francisco facility with the under- standing that they would transfer to Hayward. 8 These six workers were included among the 15 unit employees who transferred on April 2 to Hayward. Thereafter, the Company in April, after the relocation, replaced the e The 18 unit employees at San Franisco on the last day of operation were as follovss: Batt. Bonifacio, Capacillio, Chavez, Cosino, Dent. El- liontl. Gardner, Gillette, t.ostica. Loyola. Roxana Rodriguez. Silvio, Stearns, Swan, Follette, Marcenaro, and Tetreaull. The latter three were the ones who elected not to transfer to Hayward I also note that Cosino, who was employed in San Francisco) as a utilityman, was transferrred to the position of warehouseman when he commenced work at Hayward 7 The 12 were: Bartholomew Bruy. Gallagher, Hockgeiger. Javier, Leach. McNeal, Medina. Voorhoeve. Yuen. L Rodriguez. and Zapata. " The six employees and the dates they commenced work in San Fran- cisco are as follos s Dent, March 5 Elliott,. March 23;: Gardner. Febru- ary 14: Gillette, March I:; Loyola, March 22; and Swan. February 26 WESTWOOD IMPORT COMPANY, INC. 1219 other employees who had terminated their employment by hiring four additional unit employees. 9 The usual complement of unit employees at the Hayward facility totaled 17: office staff, 4; computer room, 2; foreign order room, 2; accounting, 4; customer service, ; recep- tionist, 1; secretary, I; utility, 2. The record reveals that the Company eliminated the position of utility employee through a process of attrition, the warehouse employees apparently taking over the work previously performed by the utility employees. On April 23, Respondent Westwood distributed to the Hayward employees a multipage document which set forth the Company's policies concerning the employees' terms and conditions of employment, i.e., wages, hours, fringe benefits, etc., and notified the employees that "this is an outline and is certainly open for discussion and change" and announced that a meeting to discuss the Company's employment policies would take place April 25.10 On April 24 the Union wrote the Company that its aforesaid conduct violated the Company's collective-bar- gaining agreement with the Union and asked the Compa- ny to stop dealing directly with the employees in viola- tion of the agreement. And by letter dated May 3, the Union wrote the Company complaining about the fact that the Company had not transmitted the employees' April dues deductions which the Union stated was a vio- lation of the dues checkoff provision of the collective- bargaining agreement. Respondent Westwood did not at that time answer these letters. On May 8 the Union wrote Respondent Westwood as follows: This is to advise you unequivocally that [the Union] represents a majority of the employees at the Hayward location. The Union demands that you recognize Local 3 as the collective bargaining representative, and that you acknowledge that the current contract negotiat- ed at your San Francisco location is in full force and effect. Accordingly, we request that you comply with all the terms and conditions of that agreement. In conclusion . . . we request an immediate re- sponse that you will recognize Local 3 as the col- lective bargaining representative of your employees, honor the current contract in all respects, and cease your efforts to set down unilateral terms and condi- tions of employment. 9 The four employees and the dates they commenced work are as fol- lows: Camara. April 2; Dismuke, April 2; Johnson, April 3; and Oliver, April 9 A fifth employee. Labrado. was hired April 23. apparently to replace Silvio. who terminated his employment April 19 ' There is no evidence that when Respondent Westwood relocated from San Francisco to Hayward that it reduced the unit employees' eco- nomic benefils, i e wages. fringe benefits, from those established by the collective-bargaining agreement. The Company's April 23 communication to the employees describing the employees' terms and conditions of em- ployment reveals that, although the Company refused to continue to honor the contract at the Hayward facility. it intended to adhere essen- tially to the economic terms set forth In the contract In reply, the Company on May 16 wrote the Union as follows: As you know, the Company moved from San Francisco to Hayward at the beginning of April. After the Union and company negotiated severance pay for the San Francisco employees, only a small number of San Francisco employees accepted em- ployment at Hayward. Since the Union did not rep- resent a majority of our employees when we com- menced operations in Hayward, the Company had no duty to bargain with the Union regarding terms and conditions of employment at our Hayward fa- cility. Furthermore the collective bargaining agree- ment in San Francisco, which explicitly covers only the San Francisco facility, does not apply to Hayward. In light of the foregoing, we do not recognize your Union as bargaining representative of our Hayward employees, and likewise our San Francis- co collective-bargaining agreement does not apply in Hayward. $ * * . * With regard to your request that we recognize and bargain with your union on behalf of our Hayward employees, we decline to do so since we have a good faith doubt that you in fact represent a majority of our Hayward employees. 2. Conclusionary findings (a) The warehouse employees A question presented for decision connected with Re- spondent Westwood's obligation to recognize and bar- gain with the Union at the Hayward location is whether the warehouse employees at Hayward constitute an ac- cretion to the unit of employees represented by the Union. The Union represented all of the Company's em- ployees at San Francisco except for the salespersons. Following the relocation to Hayward, this unit usually consisted of approximately 15 clerical and 2 utility em- ployees. The salespersons were apparently not represent- ed by a union. The Company at San Francisco did not employ warehouse employees inasmuch as it did not have a warehouse, but instead used a public warehouse whose employees received and shipped its merchandise. The question presented for decision in this section is whether, when Respondent Westwood commenced to operate its warehouse at the Hayward facility, the five warehouse employees became an accretion to the bar- gaining unit represented by the Union. The relevant evi- dence and an evaluation of this evidence follows. The Company did not did not maintain a warehouse at its San Francisco facility but used a public warehouse in Oakland, California. The Hayward facility contains a warehouse having 53,000 square feet of floor space. In the last week of February the Company transferred all of its inventory from the public warehouse to the ware- house located in the Hayward facility and on or about February 28 commenced to operate the Hayward ware- 1220 DECISIONS OF NATIONAL LABOR RELATIONS BOARD house using its own employees. Respondent Westwood hired a warehouse manager, two warehousemen, and a warehouse clerical, all of whom started working at the Hayward facility by March 1. In addition, one of the unit employees employed in San Francisco, utility em- ployee Cosino, upon transferring to the Hayward facility on April 2, was permanently assigned to the job of ware- houseman. Thereafter, on April 19 a fourth warehouse- man was hired. In short, Respondent Westwood normal- ly employed four warehousemen and one warehouse clerical at the Hayward facility. The warehouse is a part of a building which contains all of the other departments operated by the Company which were relocated from San Francisco to Hayward. All employees employed at this facility, including the warehouse employees, use the same parking lot, the same lunchroom, punch the same timeclock, are paid on the same day and are covered by the same company policies, and enjoy the same economic fringe benefits, i.e., health insurance, vacations, holidays, etc., and work the same work shift. However, the warehouse employees are paid by the hour, whereas the other employees are salaried. The other employees have a well defined wage scale ac- cording to their job classification, whereas the ware- house employees do not. But the warehouse clerical's pay scale is the same as the pay scale of the other cleri- cals. The record is silent as to a comparison between the wages of the warehousemen and the wages of the unit employees. The warehouse employees are supervised by a ware- house manager who is subordinate to the Company's op- erations manager. The utility employees are likewise su- pervised by the warehouse manager, but the other unit employees have their own immediate supervisors who are subordinate to the operations manager. The warehousemen receive tne Company's merchan- dise which they stack in the warehouse. They pick up merchandise from the floor of the warehouse which they prepare for shipment to customers. They also pick up and deliver the Company's mail and keep the sample storeroom clean and stacked with sample merchandise and prepare this merchandise to be mailed to sales repre- sentatives and trade shows. Of the aforesaid duties per- formed by the warehousemen, only the part which deals with the mail and the sample storeroom were performed by unit employees at San Francisco. The utility workers performed this work and continued to do it after the re- location to Hayward. Of the three utility workers em- ployed at San Francisco, one, Cosino, was permanently reassigned to the position of warehouseman immediately upon his transfer to Hayward. The other two utility workers, Lostica and Capacillo, continued to work as utility workers at Hayward for about 3 months, at which time, when they terminated their employment, they were not replaced and warehousemen performed their duties. The record establishes that other than the transfer of utility employee Cosino to the position of warehousemen there were no transfers or interchanges between the warehouse employees and other employees employed at Hayward. And, on the average, the work of the ware- housemen brought them into contact with other employ- ees only 5 percent of their worktime. The warehouse clerical who handles the bills of lading connected with the shipment of merchandise spends from 20 to 25 per- cent of her worktime performing duties which bring her into contact with other clerical employees. However, the work station of the warehouse clerical is located in the warehouse and she only works in that area. "An accretion is, by definition merely the addition of new employees to an already existing group." N.L.R.B. v. Food Employers Council, Inc.., and Retail Clerks Union, Local 770, 399 F.2d 501, 502 (9th Cir. 1968). Employees so added to an existing bargaining unit are regarded as a part of that unit. See Westinghouse Electric Corp. v. N.L.R.B., 440 F.2d 7 (2d Cir. 1971). In deciding whether a new group of employees is an accretion to an existing bargaining unit, the Board not only considers such fac- tors as functional integration, level of management con- trol, similarity of working conditions, bargaining history, employee interchange, job skills, and physical separate- ness but also gives special weight to the interests of the unrepresented employees in exercising their own right to self-organization. See Food Employers Council, Inc.., supra at 501, 504. Hence, even though an overall bargaining unit may be appropriate if the issue is raised in the con- text of a petition for a representation election, the Board will not, "under the guise of accretion, compel a group of employees, who may constitute a separate appropriate unit, to be included in an overall unit without allowing those employees the opportunity of expressing their pref- erence in a secret-ballot election or by some other evi- dence that they wish to authorize the union to represent them." Melbet Jewelry Co.. Inc., and I.D.S.-Orchard Park, Inc., 180 NLRB 107, 110 (1969). And, "when the rele- vant considerations are not free from doubt," the Board and courts are in agreement that "it would seem more satisfactory to resolve such close questions through the election process rather than seeking an addition of the new employees by a finding of accretion" because "as a general rule, the accretion doctrine should be applied re- strictively since it deprives the new employees of the op- portunity to express their desires regarding membership in the existing unit." Westinghouse Electric Corp. v. N.L.R.B., 440 F.2d 7, 11 and cases cited therein. Guided by these principles, I have considered the evi- dence which has been set forth in detail previously and conclude that the warehouse employees employed at the Hayward facility do not constitute an accretion to the bargaining unit represented by the Union. In reaching this conclusion, I was influenced by the following con- siderations taken in their totality: 1. The warehouse department is a totally new addition to the Company's operation and not an expansion of a preexisting department whose employees were represent- ed by the Union. 2. Although located in the same building as the depart- ments in which the unit employees work, the warehouse is located separate and apart from the other departments, and the unit employees work in areas which are phys- ically segregated from the warehouse. This is true even for the utility employees who work in the sample store- room. NWESI'OI ) IMPORT C()MPANY, INC. 1221 3. All of the warehouse employees are under the sole immediate and exclusive supervision of the warehouse manager who has no authority over unit employees, other than the utility employees. 4. The warehousemen perform a different kind of work than the unit employees which requires different skills. The warehousemen perform the customary ware- house duties of storing incoming shipments of merchan- dise, filling orders and preparing them for shipment, whereas the unit employees, other than the utility em- ployees, perform clerical work. 5. The two utility employees who were commonly su- pervised with the warehouse employees: did only a limit- ed amount of the type of work performed by the ware- house employees, namely, they picked up and delivered mail and shipped and received sample merchandise stored in the sample room and kept this room clean. They performed no work in the warehouse and, as de- scribed infra, the contract between the utility employees and warehousemen was de minimus. Also, the utility em- ployees were salaried like the other unit employees, whereas the warehouse employees were hourly paid. It is also significant that, when the Company relocated from San Francisco to Hayward and established its warehouse department, it apparently intended to eliminate the posi- tion of utility employees and have their work involving the samples and mail taken over by the warehousemen. In fact, one of the three utility employees employed in San Francisco was transferred to Hayward as a ware- houseman and the remaining two were not replaced when they terminated their employment. 6. There is no interchange of employees either on a temporary or permanent basis between the warehouse and the other departments. And, other than the perma- nent transfer of one utility employee into the warehouse at the time of the relocation, there have been no transfers between the warehouse and the other areas or vice versa. 7. The contact between the warehousemen and the unit employees, including the utility employees, is de minimus. The warehousemen are in contact with unit employees only 5 percent of their working time. 8. There is no evidence of functional integration be- tween the warehousemen and the unit employees. The warehousemen are primarily engaged in the receiving and shipping of merchandise without assistance from the other employees. The work of the warehousemen is functionally separated from the work of the other em- ployees and is performed in a well defined work area and consists of typical warehouse functions. The fact that the warehousemen are only in contact with unit em- ployees 5 percent of their working time conclusively demonstrates the lack of any substantial interrelation be- tween the work functions of the warehousemen and that of the other employees. 9. There is a significant distinction between the ware- housemen and the unit employees with respect to their wages inasmuch as the warehousemen are paid by the hour and do not have a defined pay scale, whereas the unit employees' including the utility employees, are sala- ried with well defined pay scales.'' 10. Although the pay scale of the warehouse clerical is the same as the clerical employees employed in the bar- gaining unit and she has a greater amount of contact with the unit employees than the warehousemen, 2 she is paid by the hour like the warehousemen, is supervised by the warehouse manager, and her work station is in the warehouse where she works in close proximity to the warehousemen and her duties are functionally related to the work performed by the warehousemen. On the basis of the foregoing, I find that the warehou- semen and the warehouse clerical employed at the Hayward facility are not an accretion to the unit of em- ployees represented by the Union. I recognize that the utility employees performed some of the same work as the warehousmen and shared common supervision with the warehouse employees and that the unit employees and the warehouse employees have common ultimate su- pervision and use the same parking lot and lunchroom, punch the same timeclock, are paid on the same day, are covered by the same employment policies and fringe benefits, and work the same shift. Nevertheless, even as- suming these factors tend to establish that an overall bar- gaining unit of employees, including the warehouse em- ployees, would constitute an appropriate unit for the pur- pose of a representation election, I am of the opinion that because "the accretion doctrine should be applied restric- tively,""' the several factors described, supra, militate against my finding that the warehouse employees consti- tute an accretion to the unit of employees represented by the Union. (b) Respondent Weswoods refusal to bargain As described in detail above, the Union and Respond- ent Westwood were parties to a collective-bargaining agreement covering a unit of the Company's employees employed at its facility in San Francisco, California. This agreement was not scheduled to terminate until Decem- ber 30, 1979. During the term of the agreement Westwood relocated its business from San Francisco to Hayward, California. The evidence establishes and, in its answer to the consolidated complaint, Respondent Westwood admits that in April and continuing thereafter it refused to recognize the Union as the collective-bar- gaining representative of the employees at the Hayward facility, withdrew recognition from the Union as the bar- gaining representative of the Hayward employees, and refused the Union's request that Westwood honor the collective-bargaining agreement at the Hayward facility. I In April the Company distributed a multipage pamphlet to the em- plioyees describing the Company's employment policies and benefits Among oither things the pamphlet listed the wage rates and wage pohclc which applied to the unit employees but failed to mention the wage rate, and policy concerning the warehouse employees This indicates that the Company regarded the warehouse employees, like the salespersons who "were also not referred to in this pamphlet, as a different kind of employee than those employed in the bargaining unit " The arehouse clerical spent between 20 and 25 percent of her working time performing duties which brought her into contact with unit clerical employees ': ii inghouse Electric Corp., ipra. 440 F 2d at I 1222 DECISIONS OF NATIONAL LABOR RELATIONS BOARD General Counsel, as alleged in the consolidated com- plaint, contends that, by engaging in this conduct, Re- spondent Westwood refused to bargain within the mean- ing of Section 8(a)(5) of the Act. Respondent Westwood argues that it was not obligated to honor the terms of the collective-bargaining agreement at the Hayward facility because the terms of that agreement limit its application to the San Francisco facility and that it was not other- wise obligated to recognize and bargain with the Union at the Hayward facility because the Union did not repre- sent a majority of the unit employees and Westwood had a good-faith doubt of the Union's majority status. A union's continuing majority status is not generally subject to challenge during the term of an existing col- lective-bargaining agreement, except as provided by the Board's "contract bar" rules. General Cable Corp., 139 NLRB 1123 (1962); Hexton Furniture Co., 111 NLRB 342, 343-344 (1955); Pioneer Inn Associates v. N.L.R.B., 578 F.2d 835, 838-839 (9th Cir. 1978); see also N.L.R.B. v. The William J. Burns International Detective Agency, Inc., 406 U.S. 272, 290 (1972). Under these rules, the Board will not ordinarily entertain a challenge to an in- cumbent union's majority status during the terms of an agreement of 3 years' duration or less, unless the chal- lenge is made during an "open period" of 60 to 90 days prior to the expiration date of the agreement. Leonard Wholesale Meats, Inc., 136 NLRB 1000, 1001 (1962); DeLuxe Metal Furniture Company, 121 NLRB 995, 999- 1002 (1958). The reason for the Board's contract bar rule is to promote the stability of established bargaining rela- tionships, while at the same time permitting employees freedom to choose and change their bargaining repre- sentative. General Cable Corp., supra, 139 NLRB at 1125-26; Leedom v. International Brotherhood of Electrical Workers Local Union No. 108, AFL-CIO [General Cable Corp.], 278 F.2d 237, 242 (D.C. Cir. 1959). While the usual contract bar case involves a represen- tation petition for a new election filed by employees or an employer, the rules are equally applicable to situations where the employer withdraws recognition from an in- cumbent union during the term of an existing collective- bargaining agreement. Hexton Furniture Co.. supra, 111 NLRB at 344. Accord: Pioneer Inn Associates, supra, 578 F.2d at 838; N.L.R.B. v. Markus Trucking Co., 286 F.2d 583, 592-593 (2d Cir. 1968). As the Board explained in Hexton Furniture Co., supra, to hold otherwise would have "the anomalous result of an employer being permit- ted unilaterally to redetermine his employees' bargaining representative at a time when the Board would refuse to make such redetermination because the time is inappro- priate for such action." Since under the Board's contract bar policies, employees and employers would not be per- mitted to petition for a new secret-ballot election, it would ill serve the ends of industrial peace and stability to permit an employer to withdraw recognition and re- pudiate the terms of a collective-bargaining agreement based on a good-faith belief that the Union has lost its support among the employees. As the Supreme Court has stated in a related context, involving the Board's cer- tification year policy, "[to] allow employers to rely on employees' rights in refusing to bargain with the formal- ly designated union is not conducive to that end [of in- dustrial peace and stability], it is inimical to it." Brooks v. N.L.R.B., 348 U.S. 96, 103. Accord: Marcus Trucking Co.. supra, 286 F.2d at 593; N.L.R.B. v. Lee Office Equip- ment, 572 F.2d 704, 707 (9th Cir. 1978). Briefly stated, as explained in detail supra, there is a conclusive presumption of a union's majority status during the term of a collective-bargaining agreement in- asmuch as a question concerning the union's majority status may not be raised under the Board's contract-bar rules and, because of this, an employer violates Section 8(a)(5) and (1) of the Act by withdrawing recognition from a union during the term of a collective-bargaining agreement and refusing to honor the terms of that agree- ment even though the employer may have a good-faith doubt about the union's majority status or even though the union no longer has the support of a majority of the employees it represents. The question posed in the in- stant case is whether the geographical relocation of Re- spondent Westwood's San Francisco facility to Hayward during the term of the collective-bargaining agreement between Westwood and the Union allowed Westwood to question the Union's majority status and to refuse to honor the agreement. In this regard the law is settled that, unless the collective-bargaining agreement by its terms is not applicable to the relocated facility, "a mere relocation of operations accompanied by a transfer of a considerable proportion of the employees to another plant, without any accompanying change in the charac- ter of the jobs and the functions of the employees in the contract unit, does not remove a contract as a bar." (Em- phasis supplied.) General Extrusion Company, Inc., et al., 121 NLRB 1165, 1167-68 (1958). I am of the opinion that the relocation of Respondent Westwood's business from San Francisco to Hayward did not result in a significant change in the character of the jobs and the functions of the employees in the con- tract unit. The relocated operation was virtually identical to its predecessor in every respect relevant to the em- ployees' interest in collective bargaining. There was no change in ownership. The contractual unit's job structure remained intact at Hayward; job skills and requirements for the employees in the contractual unit remained un- changed; 14 supervisory and managerial personnel were retained; and the contractual unit remained appropriate in all other respects, l nor was there a substantial change in the size of the unit. 16 Likewise, I am of the opinion that the relocation was accompanied by the transfer of a considerable proportion of the unit employees from San Francisco to Hayward. The parties stipulated that usually there were 22 unit em- ployees employed at San Francisco and 17 at the Hayward facility. Of the 18 unit employees who were employed at the San Francisco facility on March 31, the '4 The phasing out of the utility employee classification by the process of attrition did not constitute the kind of a change which significantly changed the character of the jobs and the functions of the employees in the unit. 1 I note that the five warehouse employees, as I have found infra, are not an accretion to the contract unit. 16 The parties stipulated that the usual composition of the contract unit in San Francisco totaled 22 employees, whereas ill Hayward it totaled 17 employees. WISTWOOD()() IMPO()RT COMPANY, INC. 1 223 day it closed, 15 transferred to the Hayward facility. of whom 14 were employed by the Company in Hayward in the bargaining unit. In addition to the 14 transferees, the Company in April hired four more employees to work in the unit at Hayward and I of the 14 employees who transferred terminated his employment. Thus, by the end of April, when the Hayward facility was fully operational, of the 18 unit employees employed there, 13 were former San Francisco employees. The number of former San Francisco employees constitutes a consider- able proportion of the employees, whether they be com- pared to the number formerly employed at San Francis- co or the number employed at Hayward. The fact that six of the former San Francisco employees who were employed at Hayward lived in the vicinity of the Hayward facility and had worked at the San Francisco facility only from I to 6 weeks with the expectation that they would work at the Hayward facility when the San Francisco facility closed, does not require a different result, (The Arrow Company. ,4 Division of Cluettr. Peabody & Co., Inc., 147 NLRB 829, 830, 831 (1964)), particularly since the San Francisco and Hayward facilities are in the same "labor area;" the two facilities are located in "an economically integrated [geographic area] within which workers may readily change jobs without changing their place of residence." U.S. Department of Labor Employ- ment and Training Administration, "Directory of Impor- tant Labor Areas," at pages I and 5 (1978). Upon the foregoing, I find that the relocation of Re- spondent Westwood's San Francisco facility to Hayward did not significantly change the character of the jobs or the functions of the employees in the contractual bar- gaining unit and was accompanied by the transfer of a considerable proportion of the unit employees; therefore, I further find that the collective-bargaining agreement between the Union and Respondent Westwood pre- cluded Respondent Westwood from questioning the Union's majority status at the Hayward facility, provided the Union had not agreed that the collective-bargaining agreement was not applicable at the Hayward facility. Respondent Westwood takes the position that it did not impermissibly repudiate its collective-bargaining agreement with the Union at midterm and was privileged to question the Union's majority status because the col- lective-bargaining agreement applies only to the San Francisco location. Respondent Westwood relies on the language in the recognition clause of the collective-bar- gaining agreement which states that "the Company rec- ognizes the Union as the sole collective bargaining agent . . .for all employees of [Respondent Westwood] at its facility located at 290 Division Street, San Francisco, 94103." Westwood argues that this constitutes a clear waiver by the Union and limits the application of the agreement to only the San Francisco facility. I have con- sidered the specific language of the recognition clause, its relation to the agreement as a whole, and the history pertaining to the inclusion of the recognition language in tha contract, and reject Respondent Westwood's conten- tion for the following reasons: I. The language contained in the contractual recogni- tion clause is not a geographical limitation, but merely the parties' descriptive recitation of the physical location at the time of the negotiations. See Los Angeles Marine Hardware Co. v. N.L.R.B., 602 F.2d 1302, 1306 (9th Cir. 1978)(holding that language in the preamble of a con- tract which states that the contract was entered into by the parties "on behalf of [the employers'] operations lo- cated at San Pedro, California and vicinity," does not constitute a geographical limitation, "but merely the par- ties' descriptive recitation of the physical location of the facilities at the time of the negotiations"); see also Oddit, v. Ross Gear and Tool Company, 305 F.2d 143, 148-149 (6th Cir. 1969)(holding that contractual language which provided that "the Company recognizes the union as the exclusive representative of its employees in its plant or plants located in that portion of the greater Detroit area which is located within the city limits of Detroit" consti- tutes a geographical limitation on the application of the contract in question. The court, however, indicated that if, like the instant case, "there was a specific reference to one plant only, the address of which was specifically given," the court would be disposed to conclude that the recognition clause was merely the parties' descriptive recitation of the physical location at the time of the ne- gotiations. Id. at 149.) 2. The agreement's effectiveness is not limited express- ly to the San Francisco facility, nor is there extrinsic evi- dence that the parties intended such a limitation. 3. The wording of the contractual recognition clause was taken in haec verba from the Board's Certification of Representative issued September 2, 1976. The language in the Board's certification was taken from the election agreement entered into by the Union and Respondent Westwood which described the bargaining unit for pur- poses of defining voter eligibility. 7 Inasmuch as the contractual language relied on by Respondent Westwood to establish that there was a clear waiver by the Union. which limited the application of the contract to the San Francisco facility, was initially used by the parties to merely physically describe the bargaining unit for the purpose of defining voter eligibility, I will not conclude that in using this same language in the contractual recog- nition clause, the parties did so for any reason other than to merely describe the physical location of the facility covered by the contract at the time of the negotiations. It is for all of the foregoing reasons that I reject Re- spondent Westwood's contention that the language con- tained in the contractual recognition clause is a clear waiver by the Union and limits the geographical applica- tion of the agreement to the San Francisco facility. Therefore, for the reasons set forth supra, I find that the collective-bargaining agreement between the Union and Westwood precluded Westwood from questioning the Union's majority status at the Hayward facility'8 and for A Board certification issued to a union which has won a Board-con- ducted representation election is not limited to the location where the election was conducted but may he carried over to a new location See Massachuserrts Machine Stamping,. Inc. 231 NLRB 801 (1977). enforce- ment denied on other grounds 578 F2d 15 (st Cir 1978) 1' In siewv of this conclusion I have not considered Respondent Westwood's argument that it was permissible for it to withdraw recogni- tion from the Union and to cease giving effect to the collectie-hargain- ing agreement because the Union did not in fact represent a majorit of Con tin ued 1224 )DECISIONS OF NATIONAL LA13(OR RELATIONS ()ARD this reason find that Respondent Westwood violated Sec- tion 8(a)(5) and (1) of the Act by refusing to recognize the Union as the collective-bargaining representative of the unit employees at the Hayward facility, withdrawing recognition from the Union as the bargaining representa- tive of these employees, and by repudiating its collective- bargaining agreement with the Union.1 9 In concluding that Respondent Westwood has refused to bargain with the Union within the meaning of Section 8(a)(5) of the Act, I have considered the fact that the Union's bargaining demand was ambiguous in that it was worded in terms of the Company's "employees" which include the warehouse employees who are not in the bar- gaining unit. This does not, however, justify Respondent Westwood's refusal to bargain, inasmuch as the Union's request for recognition included at least all of the em- ployees in the certified unit, and the Company did not inform the Union that a basis for its refusal to continue recognizing the Union in the certified unit was because the Union was demanding that the warehouse employees be included in this unit. Thus, it is highly speculative whether the Union, in the face of such a specific refusal by Respondent Westwood, would have insisted on the inclusion of the warehouse employees in the certified unit, rather than accept continued recognition in the cer- tified unit and use the procedures of the Board to deter- mine whether the warehouse employees were an accre- tion to the bargaining unit. Under the circumstances, I am persuaded that "the proper course for [Respondent Westwood] was to refuse to bargain with respect to those employees whose unit status is disputed, not to wholly refuse to bargain." Texaco, Inc. v. N.L.R.B., 436 F.2d 520, 523 (5th Cir. 1970). B. Responent Westwood Sells Its Business to Respondent Gamut Which Refuses To Recognize and Bargain With the Union i. The evidence On July 20, Respondent Westwood ceased operating the Hayward facility. On that date Respondent Gamut purchased the assets, inventory, receivables and office furniture of Responden' Westwood and without any in- the employees and because the Company entertained a good-faith doubt of the Union's majority status. I note, however, that, in connection with Respondent Westwood's argument that the Union did not in fact repre- sent a majority of the unit employees. I excluded certain testimonial and documentary evidence through which the Company sought to establish that employees were not members of the Union and that employees, if called as witnesses, would testify that they did not want to be represent- ed by the Union. I have carefully reconsidered this ruling pursuant to Re- spondent Westwo,)d's request in its post-hearing brief and, after review- ing the applicable authorities, remain convinced that I correctly excluded such evidence See Re/ired Personv Pharmacy v N.L.RB. 519 F2d 486, 490. 491 492 12d Cir. 1974). and cases cited therein. I' The cases relied upon by Respondent Westwood to justify its with- drawal of recognition from the Union: The Pierce Governor Company, Inc.. 164 NLRB 97. enfd sub nom United Aulo Workers v. N.VLR.B., 3q4 F.2d 757 (DC Cir 1968), and its progeny; Fraser & Johnston Co. NL R. B.. 469 F.2d 1259 (9th Cir. 1972), and its progeny; and L R. B Mfassachusetts Machine d Stamping. Inc.. 578 F.2d 15 (Ist Cir 1978). differ significantly from the instant case because in those cases the reloca- lion of the facility did not take place during the term of an existing col- lective-bargaining agreement which precluded the employers in those cases from raising a question about the union's majority status tcrruption took over the operation of the business. 2( Re- spondent Gamut engaged in the same business as Re- spondent Westwood at the same facility, the Hayward facility, and sold substantially the same merchandise which it purchased from substantially the same suppliers as Respondent Westwood, and sold the merchandise to substantially the same customers as Respondent Westwood, and employed all of the supervisory and non- supervisory employees employed by Respondent Westwood at the time of the sale, except for two per- sons. Respondent Gamut, prior to the July 20 sale, inter- viewed the employees of Respondent Westwood and, during these interviews, did not mention whether there would be changes in the employees' wages, hours, or other terms and conditions of employment when Re- spondent Gamut took over the business. Nor does the record establish that a representative of Respondent Gamut at any time ever indicated to the employees that their terms and conditions of employment would be changed when Respondent Gamut took over the busi- ness. However, after taking over the business, Respond- ent Gamut reduced the number of paid holidays previ- ously enjoyed by the employees. Also, the seniority of the employees employed by Respondent Gamut who had worked for Respondent Westwood commenced as of the day Respondent Gamut took over the operation. Like- wise, the employees were not given credit for the number of days of sick leave they had been allowed to accrue while working for Respondent Westwood. Final- ly, the record reveals that after taking over the business Respondent Gamut increased the wages of certain unit employees. The record establishes that, prior to Respondent Gamut taking over the business from Respondent Westwood, the officials of Respondent Westwood in- formed the president of Respondent Gamut about the dispute between Respondent Westwood and the Union concerning Respondent Westwood's obligation to recog- nize the Union as the representative of the employees at the Hayward facility. Likewise, the record reveals that the management of Respondent Gamut, prior to taking over the operation of the business, knew that a complaint had issued in Case 32-CA-1813 contending that Re- spondent Westwood was obligated to recognize and bar- gain with the Union at the Hayward facility. On August 22, Union Representative Olson wrote Harry Hovan, Respondent Gamut's vice president and controller, and asked that Respondent Gamut recognize the Union as the collective-bargaining representative of its Hayward employees and meet with the Union for the purpose of collective bargaining. Olson asked that the Company contact the Union to schedule a negotiation meeting. The letter was not answered. "' Respondent Wesitslod actually sold the assets of the business to GCiorge-Good Corporation, which transferred the assets to Respondent G(amit, which is a wholly owned subsidiary of the George-Good Corpo- ratioi. The record eatablishes that Respondent Gamut and the George- Good Corporation constitute one employer for purposes of the Act. WESTWOOD IMPORT COMPANY, INC. 1225 2. Conclusions The complaint alleges that Respondent Gamut is a suc- cessor employer to Respondent Westwood and violated Section 8(a)(5) and (1) of the Act by refusing to recog- nize and bargain with the Union. It is settled that the purchaser of a business must rec- ognize and bargain with the union which represented its predecessor's employees if a majority of the purchaser's work force is composed of the predecessor's employees and if the essential nature of the business continues fol- lowing the transfer. N.L. R. B. v. Burns International Secu- rity Services, Inc., 406 U.S. 272, 281; N.L.R.B. v. Denham, 469 F.2d 239, 243 (9th Cir. 1972), vacated on other grounds 411 U.S. 945 (1973), reaffirmed 218 NLRB 30 (1975). The bargaining obligation of a "successor em- ployer" derives both from the specific mandate of Sec- tions 8(a)(5) and 9(a) of the Act that an employer must bargain with the "[representatives designated] or selected for the purpose of collective bargaining by the majority of the employees in a unit appropriate for such purposes" and from the general acknowledgment that a mere change in ownership does not destroy the presumption of continuing employee support for a certified or volun- tarily recognized union. See N.L.R.B. v. Burns Interna- tional Security Services, Inc., 406 U.S. at 277-279: N.L.R.B. v. Denham, supra, 469 F.2d at 243-244. In the instant case the complement of employees at the Hayward facility remained virtually the same after Re- spondent Gamut took over the business. And when Gamut commenced to operate the business on July 20, it employed all but two of the unit employees who had worked for the predecessor employer, Respondent Westwood, and retained all of the supervisory and man- agerial personnel except for the operating manager, who was terminated by Westwood several days prior to the sale. Clearly, there was a continuity of bargaining unit employees. Similarly, the record shows that there was a continuity of business operations and organization of job functions, after Gamut took over the business, so that the bargain- ing unit remained a viable one. See William J. Burns In- ternational Detective Agency v. N.L.R.B., 441 F.2d 911, 914-915 (D.C. Cir. 1971), enfd. in pertinent part 406 U.S. 272, 280, fn. 4 (1972). Thus, when Respondent Gamut [took] possession of the business on July 20 it used the identical facilities as its predecessor, continued in the same business, employed the same size work force as had worked for its predecessor, who continued to work in their same job classifications and exercise the same skills as previously. Plainly, there was a continuity of the em- ploying enterprise. Based upon the foregoing and the fact that the prede- cessor employer, Respondent Westwood, was obligated to recognize and bargain with the Union at the time of the transfer of ownership, I find that Respondent Gamut is a successor employer for purposes of Sections 8(a)(5) and 9(a) of the Act and, as such, was obligated to recog- nize and bargain with the Union as the bargaining repre- sentative of the employees in the appropriate bargaining unit. Specifically, I find that Respondent Gamut became a successor to Westwood on and after July 20, when Gamut employed all but two of the unit employees who had worked for Westwood and continued Westwood's operations. I further conclude that as of July 20, Re- spondent Gamut as a successor employer was legally ob- ligated to recognize and bargain with the Union as the unit employees' collective-bargaining representative and violated Section 8(a)(5) and (1) of the Act on or about August 22 when it failed to answer the Union's request for recognition and bargaining. 2 ' I have concluded, supra, that Respondent Gamut suc- ceeded to Respondent Westwood's collective-bargaining obligation on July 20 when it took over the business and selected as its work force all but two of Westwood's unit employees to perform the same tasks at the same place they had worked in the past. Likewise, the record re- veals that the former employees of Westwood who were employed by Gamut constituted the full complement of Gamut's employees and that prior to employing these employees on July 20, Gamut had interviewed them and did not indicate to them that their terms and conditions of employmant would be changed when Gamut assumed control over the business. In addition, the record reveals that when Gamut purchased Westwood's business it knew that the Union and the Board's General Counsel were taking the position that Westwood was obligated to recognize and bargain with the Union as the bargaining representative of the unit employees and that the Board's General Counsel had issued a complaint in Case 32-CA- 1813 alleging that Respondent Westwood's refusal to recognize the Union violated Section 8(a)(5) and (I) of the Act. Nevertheless, Gamut, when it commenced to operate the business on April 2, unilaterally, without bar- gaining with the Union, changed the unit employees' terms and conditions of employment as follows: (1) re- duced the number of paid holidays granted to employees; (2) refused to credit employees with sick leave they had accrued while working for Westwood; (3) refused to credit employees with employment seniority from the date they began working for Westwood; (4) increased the wages of several employees. I conclude that, by en- " A successor employer is obligated to bargain with a union hich is the exclusive bargaining representative of the employees acquired from the predecessor unless the successor demonstrates either that the union in fact no longer represented a majority of the employees on the date of the refusal to bargain or that his refusal to bargain was grounded on a good- faith doubt of the union's majority status. L.R.B. v. Wayne Convalescent Center. Inc.. 465 F.2d 1039, 1043 (6th Cir 1972) Here, Respondent Gamut did not justify its refusal to recognize the Union on a good-faith doubt of the Union's majority status. Thus, Gamut remained silent when the Union requested recognition and no one testified on behalf of Gamut during this proceeding that its reason for refusing to recognize the Union ssas predicated on a good-faith doubt of the Union's majority status. Re- garding the question of whether the Union at the time of the change in ownership represented a majority of the unit employees the record does not rebut the presumption of the Union's majority status Moreover, Gamut may not rely upon such a defense where, as here, the predecessor emploser's unlawful refusal to bargain would tend to produce employee disaffection from the Union and Gamut purchased the business from the predecessor with full knowledge of its unfair labor practices Under these circumstances. Respondent Gamut, separates and apart from violating Section 8(a)( 5 ) and (I) of the Act itself, by its refusal to bargain with the Union, was responsible for remedying its predecessor's unlawful refusal to bargain See Ponn Distributing Inc and Cott Corporation. 232 NLRB 312 1977) 1226 DECISIONS OF NATIONAL LABOR RELATIONS BOARD gaging in the aforesaid unilateral conduct, Respondent Gamut violated Section 8(a)(5) and (1) of the Act.22 I realize that "[a] successor employer is ordinarily free to set initial terms on which it will hire the employees of a predecessor." N.L.R.B v. Burns International Security Services, Inc., 406 U.S. 272, 294 (1972). However, here, the aforesaid unilateral changes did not constitute initial terms of employment, for there is no evidence that Re- spondent Gamut announced these changes to the em- ployees or anyone else prior to the time that the prede- cessor's employees actually became Gamut's employees on April 2. To the contrary, the record reveals that when the employees of the predecessor were interviewed by Gamut, prior to being employed, they were not ad- vised that Gamut intended to change any of their terms and conditions of employment. Thus, where, as here, the record contains "nothing to indicate that the employees were aware of the proposed changes" when they were offered continued employment or when they actually began work for the successor, "these changes cannot be considered as initial terms of rehiring under Burns." Spitzer Akron, Inc. v. N.L.R.B., 540 F.2d 841, 845 (6th Cir. 1976); see also N.L.R.B. v. Bachrodt Chevrolet Co., 468 F.2d 963, 969-970 (7th Cir. 1972); and Charles Star- buck and Diane Starbuck d/b/a Starco Farmers Market, 237 NLRB 373 (1978), wherein the Board stated that a successor may not make unilateral changes without bar- gaining with the union "where the successor failed to clearly announce its intent to alter terms and conditions prior to offering employment to incumbent employees," citing Spruce Up Corporation, 209 NLRB 194, 195 (1974). C. Respondents Refuse To Furnish the Union With Information About the Sale of the Employing Enterprise 1. The evidence As described supra, on July 20, Respondent Westwood ceased operating the Hayward facility and sold the busi- ness to Respondent Gamut which on that date took over the operation of the business. Harry Hovan held the po- sition of vice president and controller for both compa- nies. In July, shortly before the sale, Union Representative Reeva Olson told Hovan that the Union understood the Company was being sold and the employees were being reinterviewed. Olson asked why the employees were being reinterviewed and whether the Company was in fact being sold and, if so, to furnish the Union with "some information about the sale." Hovan replied, he had no duty to provide such information because the sale of the Company was none of the Union's business. On July 25, after the sale and after Respondent Gamut commenced to operate the business, Olson wrote Hovan as follows: 22 In concluding that Respondent Gamut's unilateral conduct violated Section 8(a)(5) I have taken into account the fact that the consolidated complaint in this case contained no allegation of this charge Nonetheless, I have considered this issue because the question is closely related to the allegations against Gamut contained in the complaint and the matter "sas fully and fairly litigated. N.L.R.R. v Olympic Medical Corp., 608 F.2d 762 (9;h Cir 1979) This is to confirm that when I called you prior to July 19, you refused to give me any information whatsoever concerning the purported change of ownership of Westwood or the requirement that all Westwood employees reapply for employment and be interviewed again. As the collective bargaining representative, the Union contends we have an absolute right to this in- formation. We also contend that Westwood has no right to request that employees reapply or be inter- viewed for employment again. We are advised that you have unilaterally can- celled all accrued seniority, sick leave and vacation rights. We are also advised that you have summarily ter- minated Liberato A. Capacillo and Elizier Cosino without just cause. The Union considers all these actions in gross violation of the entire collective bargaining agree- ment and the National Labor Relations Act. We request that all accrued rights be restored to all employees, that the discharged employees be re- instated immediately with full back pay and bene- fits, and that all employees be otherwise made whole. The letter was transmitted by Hovan to the president of Respondent Gamut who did not answer the letter. 2. Conclusions As described above, Respondents refused to furnish the Union with information about the sale of the busi- ness, even though Respondent Westwood was obligated to recognize the Union as the employees' bargaining rep- resentative and Respondent Gamut, after the sale of the business, as a successor employer was likewise obligated to recognize and bargain with the Union. The complaint alleges that Respondents' refusal to furnish the Union with information about the sale of the business violated Respondents' bargaining obligation within the meaning of Section 8(a)(5) of the Act. It is settled that a labor organization, obligated to rep- resent employees in a bargaining unit with respect to their terms and conditions of employment, is entitled to such information from the employer as may be relevant and reasonably necessary to the proper execution of that obligation. Verto Division, Boeing Company, 182 NLRB 421 (1970). The employer's obligation is predicated upon the need of the union for such information in order to provide intelligent representation of the employees. F. W. Woolworth Company, 109 NLRB 196 (1954), enfd. 352 U.S. 938 (1955). In assessing the relevance of requested information, wage data and other information concerning bargaining unit employees is deemed presumptively relevant, while other information not so obviously related to a union's bargaining and contract administration responsibilities must be shown to be "relevant to bargainable issues." N.L.R.B. v. Rockwell Standard Corp., Transmission and Axle Division, Forge Division, 410 F.2d 953, 957 (6th Cir. 1969). The burden of proof is thus different, but "the ul- WESTWOOD IMPORT COMPANY. INC. 1 227 timate standard of relevance is the same in all cases," and in a particular case, nonunit data may have "an even more fundamental relevance than that considered pre- sumptively relevant." Prudential Insurance Co. of ,4merica v. N.L.R.B., 412 F.2d 77, 84 (2d Cir. 1969). In determining whether an employer is obligated under the statute to supply particular requested informa- tion the Board need only find a probability that the de- sired information [is] relevant, and that it [will] be of use to the Union in carrying out its statutory duties and re- sponsibilities." N.L.R.B. v. Rockwell-Standard Corp., 410 F.2d 953, 957, quoting from N.L.R.B. v. Acme Industrial Corp., 385 U.S. at 437. This is a "discovery type stand- ard," thus it allows the Union access to a broad range of potentially useful information for the purpose of effectu- ating the bargaining process. A L.R. .v. 4cme Industrial Corp., 385 U.S. at 437, fn. 6; N.L.R.B. v. Rockwell-Stand- ard, supra, 410 F.2d at 957. I am of the opinion that information pertaining to the sale of the employing enterprise in this case was relevant to the Union's duty to intelligently represent the employ- ees in the certified bargaining unit. The Union had a stat- utory duty to exert its best effort to protect the unit em- ployees' interests by maintaining their existing terms and conditions of employment which were vitally affected by the sale of the business. 2:1 One obvious way of seeking to protect the interests of the employees it represented was for the Union to find out whether the new owner was a new and distinct business entity and, if so, whether it was a successor employer obligated to recognize and bargain with the Union. In other words, the Union needed the requested information to determine whether, after the change of ownership, the employer was still ob- ligated to recognize and bargain with the Union as the representative of the employees in the certified unit. Under the foregoing circumstances, and since the sale of the business vitally affected the employees' terms and conditions of employment, I am persuaded that informa- tion concerning the sale was relevant to the Union's duty to intelligently represent the employees in the certified unit. Respondents were not, however, obligated to furnish the Union with all the information concerning the sale, but only information which shed light on the question of whether the new employer was a different employer than its predecessor and, if so, whether it was a succes- sor employer for purposes of collective bargaining. I rec- ognize that the Union's request for sales information was not limited in this respect, but was worded in terms of "sales information" without a description of the particu- lar information sought and without an explanation justi- fying the request. However, the mere fact that the Union's request for information encompassed information which the Respondents were not legally obligated to provide did not automatically excuse them from comply- ing with the request to the extent that it also encom- 23 The employees employed by Respondent Westuood lost their se- niority accrued sick leave and three paid holidays as the result of the change of ow nership in the employing enterprise and were in danger of losing additional existing employment hbenefits. ithout union represenla- tion, by virtue of further unilateral action of the successor employer. Re- spondent Gamut passed information which they would be required to pro- vide if it were the sole subject of the demand. Fawcett Printing Corp., 201 NLRB 946, 975 (1973). Also, it is set- tled that the adequacy of a request for data must be judged in light of the entire pattern of facts available to the employer. Ohio Power Company., 216 NLRB 987, 990-991, fn. 9 (1975). Here, although the request for information did not spe- cifically advise Respondents of the reasons for the re- quest, the circumstances surrounding the request were reasonably calculated to put Respondents on notice of the relevant purpose. The request for the information was expressed to Respondents in the context of verbal and written communications w'hich placed Respondents on notice that the Union was taking the position that it was the employees' bargaining representative, regardless of any change in the ownership of the employing enter- prise. The Union's request when taken in context should have reasonably alerted Respondents that the Union wanted the information in order to support its position that it was entitled to represent the employees in the cer- tified unit regardless of any change of ownership. In any event, Respondents' failure to accede to the Union's re- quest had nothing to do with the inadequacy of the Union's communication. Thus, in refusing the Union's re- quest for the sales information, Respondent Gamut ig- nored the request and Respondent Westwood merely told the Union it had no duty to furnish such information because the sale of the business was none of the Union's business. This conduct did not afford the Union either a guide to assist it in framing a more limited demand or an incentive to do so in the expectation that a more limited demand would be honored. Moreover, Respondents have never taken the position that the Union's request for in- formation about the sale was not relevant to the Union's duty as the employees' bargaining representative, or that the request was too broad, or give any indication that it was willing to reach some sort of mutually agreeable ac- commodation with the Union if the request was limit- ed. 24 In short, nothing in the record indicates that Re- spondents would have complied with a request limited to information which the Union was entitled under the stat- ute or which explained the basis for the request. It is for the foregoing reasons that I find that Respond- ent Westwood and Respondent Gamut violated Section 8(a)(5) and (1) of the Act by refusing the Union's request for information pertaining to the sale of the employing enterprise. D. The Interrogation of Union Steward Bonifacio by Respondent Westwood's Operations Manager 1. The evidence The Union's steward at the San Francisco facility was employee Patricia Bonifacio, who on April 2 was one of the employees transferred from San Francisco to Hayward when Respondent Westwood relocated its 24 No ne testified for Respondents concerning the reason or reasons for Respondent's refusal to honor the Unlon's request for the sales infor- mation 1228 DECISIONS OF NATIONAL LABOR RELATIONS OARD business operation. Bonifacio continued to act as the Union's steward at Hayward. During the middle of April, Bonifacio during working time left her work station and entered the warehouse where the warehousemen were working and distributed copies of the collective-bargaining agreement and mem- bership applications. 25 She also gave them a copy of the letter which the Union normally distributes to new em- ployees which in substance informs them that the Union has a contract with the Company and that new employ- ees are required to join the Union after their 60-day pro- bationary period and explains the benefits of union repre- sentation and the employees' rights under the contract. Warehouse Manager McClain stopped Bonifacio from distributing these documents, explaining to her that for safety reasons he did not want anyone in the warehouse. Later that day Operations Manager Rodriguez sum- moned Bonifacio into his office and asked her not to pass out any union literature on the Company's premises. Bonifacio replied that it was the Company's responsibili- ty to notify the employees about the Union's contract with the Company and specifically showed him that por- tion of the contract which states, "the Company shall advise the new employees of the terms and provisions of this agreement and their obligation thereunder and, to complete the necessary forms." Rodriguez replied that he would take the responsibility of handing out the "union papers" and changed the topic of conversation. He asked Bonifacio to accept the position of supervisor in the computer room. Bonifacio refused this job offer, at which point Rodriguez asked Bonifacio "why was [she] so much for the Union?" Bonifacio did not answer be- cause, as she testified, "I think he knew how I felt about it, and the way I looked at him, I knew it was sufficient that he did not need my answer." Bonifacio also testified that she thought Rodriguez knew how she felt about the Union based on their previous conversations about that subject. Contemporaneously with Rodriguez' conversation with Bonifacio, the Company distributed a "Memo To All Employees," which informed the employees in sub- stance that due to the Company's relocation to Hayward, the Union no longer represented them and that the em- ployees should give the Company "a chance" and not join the Union because, the memo stated, "the salaries and benefits at Westwood are as good, if not better, than those provided by Westwood when we had a union con- tract in San Francisco." 2. Conclusions As described supra, Operations Manager Rodriguez asked employee Bonifacio why she was such a zealous union adherent. This question was not asked for a per- missible purpose and was not accompanied by an assur- ance against reprisal. It cannot be characterized as a casual remark inasmuch as it was expressed by the Com- pany's operations manager, a person high up in the su- 2s The collective-bargaining contract between the Union and Respond- ent Westwood in the article entitled "Union Representative" provides that "it is generally understood that the steward should attend to Union matters during non-working time. The Company agrees, however, that it will be reasonable in the application of this section." pervisory hierarchy, and took place in the privacy of the office of the operations manager where Bonifacio had been summoned. Nor can the interrogation be considered as an isolated act inasmuch as it took place at a time when the Company had illegally withdrawn recognition from the Union in violation of Section 8(a)(5) of the Act and was in effect telling the employees that they were better off working for the Company without union rep- resentation. It is for these reasons that I conclude that, by interrogating employee Bonifacio about the basis for her zealous support of the Union, Rodriguez engaged in the kind of conduct which reasonably tends to have a coercive effect and thus intruded into the employees' Section 7 rights. " I therefore find that by engaging in this conduct Respondent Westwood violated Section 8(a)(1) of the Act. See Fred Jones Manufacturing Compa- ny, 239 NLRB 54 (1978), citing ITTAutomotive Electrical Products, 231 NLRB 878 (1977); CBS Records Division of CBS, Inc., 223 NLRB 709 (1976). Upon the basis of the foregoing findings of fact, and upon the entire record, I make the following: CONC USIONS OF LAW 1. Respondent Westwood is an employer engaged in commerce within the meaning of Section 2(6) and (7) of the Act. 2. Respondent Gamut is an employer engaged in com- merce within the meaning of Section 2(6) and (7) of the Act. 3. Respondent Gamut is a successor employer to Ra- spondent Westwood for purposes of Sections 8(a)(5) and 9(a) of the Act. 4. The Union is a labor organization within the mean- ing of Section 2(5) of the Act. 5. All employees employed by Respondent Gamut and Respondent Westwood at the Hayward, California, fa- cility, excluding salespersons, warehouse employees, guards, managerial. supervisory, professional, and confi- dential employees constitute an appropriate bargaining unit within the meaning of Section 9(b) of the Act. 6. The Union at all times material has been and is the exclusive bargaining representative of all employees in the aforesaid bargaining unit within the meaning of Sec- tion 9(a) of the Act. 7. By interrogating an employee about her union sym- pathies and activities, Respondent Westwood violated Section 8(a)(1) of the Act. 8. By withdrawing recognition from the Union as the collective-bargaining representative of the employees in the appropriate unit, by repudiating the collective-bar- gaining agreement between itself and the Union, and by refusing to supply the Union with relevant information upon request, Respondent Westwood violated Section 8(a)(5) and (1) of the Act. 9. By failing and refusing to recognize and bargain with the Union as the collective-bargaining representa- tive of the employees in the appropriate unit, by unilater- ally changing previously established terms and conditions 26 The fact that employee Boilifacio had openly declared her prounion sentinments is no defense toi what would otherwise constitute impermissi- ble interrogation. See lir .lubomotive Electrwal Products. 231 NLRB 878. 'WESTWI()OD IMPORT COMPANY, INC 1 229 of employment for employees in the appropriate unit without bargaining with the Uinion, and by refusing to supply the Union with relevant information upon re- quest, Respondent Gamut violated Section 8(a)(5) and (1) of the Act. THE RMEDFI Having found that Respondent Westwood violated its collective-bargaining obligation toward the Union within the meaning of Section 8(a)(5) of the Act and unlawfully interrogated an employee in violation of Section 8(a)(1) of the Act, I shall recommend that if Respondent Westwood should ever resume its business operations at the Hayward, California, facility that it cease and desist from engaging in conduct of this nature. Having found that Respondent Westwood unlawfully repudiated its collective-bargaining contract with the Union, I shall recommend that it make whole the em- ployees in the appropriate bargaining unit for any loss of earnings or employment benefits they may have suffered for the period on and after April 2, 1979, due to Re- spondent Westwood's failure to give effect to the terms of the collective-bargaining agreement, 2 7 with interest as computed in Florida Steel Corporation, 231 NLRB 651 (1977), and to continue such payments until Respondent Gamut, upon the request of the Union, restores the em- ployees' terms and conditions of employment to what they had been prior to April 2, 1979, the date Respond- ent Westwood repudiated its collective-bargaining con- tract. 28 Having found that Respondent Gamut violated Section 8(a)(5) and (1) of the Act by refusing to recognize and bargain with the Union and by unilaterally changing em- ployees' wages and other terms and conditions of em- ployment, I shall recommend that it cease and desist therefrom and, affirmatively, to bargain with the Union upon request. In addition, to remedy the unilateral changes found herein, I shall recommend that Respond- ent Gamut, upon the request of the Union, revoke all the unilateral changes which heretofore in this Decision have been found to have violated the Act, until such time as Respondent Gamut negotiates with the Union in good faith to agreement or impasse thereon, and make the unit employees whole for any financial loss they may 27 I recognize that there are indications in the record that. when Re- spondent Westwood repudiated its contract with the Union, the econom- ic terms of the agreement, including those relating to wages and fringe benefits, were not changed and that, in actuality, the members of the bar- gaining unit may not have sustained any economic loss b virtue of the conduct found unlawful herein. However, this is a matter better left for the compliance stage of this proceeding. The Board's traditional make- whole remedy has been included herein as a safeguard 28 The sale of the business on July 20(1, 1979, did not toll Respondent Westwood's liability because the employing enterprise remained the same after the sale: the new employer, Respondent Gamut, was a successor employer for purposes of Sections 8(a)(5) and 9 (a) of the Act Also, as I have found supra, Respondent Gamut did not establish new terms and conditions of employment in the employing enterprise prior to incurring an obligation to bargain with the Union In other words, the record es- tablishes that, but for Respondent Westwood's unlawful repudiation of its collective-bargaining contract. the employees in the appropriate unit, d- spite the change in ownership. would have continued to receise the terms and conditions of employment contained in the collective bargain- ing contract and that such terms and conditions could not have been law- fully changed by Respondent Gamut absent negotiations with the Union have suffered by reason of the the aforesaid unilateral changes, with interest as prescribed in Florida Steel Cor- poration, 231 NLRB 651 (1977). In addition to recommending the aforesaid legal sanc- tions against Respondent Gamut based on Respondent Gamut's unfair labor practices, the record reveals that Respondent Gamut is responsible for remedying certain of the unfair labor practices engaged in by Respondent Westwood regardless of whether or not Respondent Gamut itself engaged in conduct proscribed by the Act. Thus, Respondent Gamut is a successor employer to Re- spondent Westwood and acquired the employing enter- prise with knowledge that the instant unfair labor prac- tice proceeding was pending against Respondent Westwood, charging that employer with unlawfully re- fusing to recognize the Union as the bargaining repre- sentative of the employees in the enterprise Gamut in- tended to purchase and repudiating a collective-bargain- ing agreement with the Union covering these employees. The law is settled that a successor employer which takes over a going business with knowledge of the existence of unremedied unfair labor practices of its predecessor, and continues to operate the business without any discernible change of existing labor policy, is obligated to remedy such unfair labor practices.2 9 Here, Respondent Gamut took over Respondent Westwood's business with knowl- edge that Westwood was charged in this proceeding with withdrawing recognition from the Union and repu- diating its contract with the Union. Nonetheless, Gamut, consistent with Respondent Westwood's labor policy, re- fused to recognize and bargain with the Union. Under the circumstances, Respondent Gamut is responsible for remedying Respondent Westwood's refusal to recognize and bargain with the Union. Accordingly, for this addi- tional reason, I shall order Gamut to cease and desist therefrom and, affirmatively, to bargain with the Union upon request. SeePonn Distributing, Inc., and Cott Corp., 232 NLRB 312 (1977). I further conclude that Respondent Gamut as the suc- cessor employer to Respondent Westwood was obligat- ed, in accordance with the basic holding in Perma Vinyl. supra, to also remedy Respondent Westwood's repudi- ation of its collective-bargaining contract. I therefore shall recommend that Respondent Gamut jointly and severally with Respondent Westwood make whole the unit employees in the manner described previously.3 0 29 See Perma Vinyl Corp., Dade Plastics Co. and L'nited Slates Pipe and Foundrvl Companyr 164 NLRH 968 (1967), enfd. 398 F.2d 544 (5th Cir 1969) Permua Vinyl itself involved only discriminatory discharge findings, and did not involve (a)(5) bargaining violations. However, in Perma V'inrl the Board expressly fllowed Alexander .Wilburn Co, 78 NLRB 747, 748 749, 753754 (1948). which held a successor liable to remedy the predecessor's violations of its bargaining obligations Also see Ponn Ditributing. Inc. and Cotr Corp.. 232 NLRB 312 (1977). 'o In holding Respondent Gamut liable for remedying this unfair labor practice or Respondent West.:ood for the period after it took over the operation of the employing enterprise, have taken into account the fact that, when (iamut took over the employing enterprise, it was not legally obligated to continue the employees' existing terms and conditions of em- ployment However. the record establishes, as found upra. that Respond- ent Gamut continued the existing terms and conditions of employment and did not establish ners terms and conditions of employment prior to incurring an obligation to bargain with the Union In other words. Re- Continued 1230 DECISIONS OF NATIONAL LABOR RELATIONS BO()ARD Upon the basis of the foregoing findings of fact, con- clusions of law, and the entire record, and pursuant to Section 10(c) of the Act. I hereby issue the following recommended: ORDER3' A. The Respondent, Westwood Import Company, Inc., Hayward, California, its officers, agents, successors, and assigns, shall: I. Cease and desist from the following in the event it resumes operations at the Hayward, California, location: (a) Refusing to recognize and bargain collectively with the Union, Office and Professional Employees Union, Local 3, Office and Professional Employees International Union, AFL-CIO, CLC, as the exclusive bargaining rep- resentative of all of the Company's employees, excluding guards, managerial, supervisory, sales, warehouse, profes- sional, and confidential employees. (b) Refusing to give effect to the terms and conditions of a collective-bargaining contract with the Union, with- out the consent of the Union, or repudiate such a con- tract. (c) Refusing to bargain collectively with the Union by refusing to supply relevant information upon request. (d) Interrogating employees about their union member- ship, sympathies, or activities. (e) In any like or related manner interfering with, re- straining, or coercing its employees in the exercise of the rights guaranteed them in Section 7 of the Act. 2. Take the following affirmative action which is nec- essary to effectuate the policies of the Act: (a) Jointly and severally with Respondent Gamut De- signs, Inc., d/b/a Westwood Import Company, make whole the employees in the aforesaid bargaining unit for any loss of employment benefits for the period on and after April 2, 1979, due to the failure of Respondent Westwood to give effect to its contract with the Union, with interest as computed in Florida Steel Corporation, 231 NLRB 651, and continue such payments until such time as Respondent Gamut, at the request of the Union, has restored the employees' terms and conditions of em- ployment to what they were prior to the time Respond- ent Westwood repudiated the contract. (b) Preserve and, upon request, make available to the Board or its agents, for examination and copying, all payroll records, social security payment records, time- cards, personnel records and reports, and all other re- cords necessary to analyze the amount of backpay due under the terms of this Order. (c) Mail a copy of the attached notice marked "Apen- dix A"3 2 to each of its employees in the appropriate unit spondeni Gamut would have been required to bargain in good faith to al impasse with the Union before unilaterally changing any of the terms and conditions of employment included in the Union's contract with Re- spondent Westwood. ' In the event no exceptions are filed as provided by Sec 102.46 of the Rules and Regulations of the National Labor Relations Board, the findings, conclusions and recommended Order herein shall, as provided in Sec. 102.48 of the Rules and Regulations, be adopted by the tlard and become its findings, conclusions, and Order, and all objections thereto shall be deemed waived for all purposes. 32 In the event that this is enforced by a Judgement of a United States Court of Appeals, the words in the notice reading "Posted by Order of employed at the facility in Hayward, California, between April 2, 1979, and July 20., 1979. Copies of said notice, on forms provided by the Regional Director for Region 32, shall, after being duly signed by a representative of Respondent Westwood, be mailed immcdiately upon re- ceipt thereof. (d) Notify the aforesaid Regional Director for Region 32, in writing, within 20 days from the date of this Order, what steps the Respondent Westwood has taken to comply herewith. B. Respondent Gamut Designs, Inc., d/b/a Westwood Import Company, Hayward, California, its officers, agents, successors, and assigns, shall: 1. Cease and desist from: (a) Refusing to recognize and bargain collectively with the Union, Office and Professional Employees Union, Local 3, Office and Professional Employees International Union, AFL-CIO, CLC, as the exclusive bargaining rep- resentative of the Company's employees, excluding guards, managerial, supervisory, sales, warehouse, profes- sional, and confidential employees. (b) Refusing to bargain collectively with the Union by refusing to supply relevant information upon request. (c) Refusing to bargain collectively with the Union by unilaterally changing wages, hours, or other terms and conditions of employment of the employees in the afore- said bargaining unit. (d) In any like or related manner interfering with, re- straining, or coercing its employees in the exercise of their rights guaranteed in Section 7 of the Act. 2. Take the following affirmative action which is nec- essary to effectuate the policies of the Act: (a) Recognize and, upon request, bargain collectively with the Union, Office and Professional Employees Union, Local 3, Office and Professional Employees In- ternational Union, AFL-CIO, CLC, as the exclusive rep- resentative of all its employees in the unit described above, with respect to rates of pay, wages, hours of em- ployment, and other terms and conditions of employment and, if an understanding ia reached, embody such under- standing in a signed agreement. (b) Jointly and severally with Respondent Westwood Import Company, Inc., make whole the employees in the aforesaid unit for any loss of employment benefits for the period on and after April 2, 1979, due to the failure of Respondent Westwood Import Company, Inc., to give effect to the terms or its contract with the Union, with interest as computed in Florida Steel Corporation, 231 NLRB 651, and continue such payments until such time as Respondent Gamut, at the request of the Union, has restored the employees' terms and conditions of employ- ment to what they were prior to the time Respondent Westwood repudiated the contract. (c) Upon the request of the Union, revoke the unilater- al changes in the rates of pay, wages, and other terms and conditions of employment described in this Decision, which were placed into effect by Respondent Gamut in the aforesaid unit, until such time as Respondent Gamut the National Labor Relations Board" shall read "Posted Pursuant to a Judgment (if the United States Court of' Appeals Enforcing an Order of the National Labor Relations Board" WESTWOOl) IMPORT COMPANY. INC 1231 negotiates with the Union in good faith to agreement or impasse thereon. (d) Make whole the employees in the aforesaid unit for any loss of pay or other benefits they may have suffered as a result of Respondent Gamut's unilateral conduct which has been described in this Decision, with interest as computed in Florida Steel Corporation, 231 NLRB 651, and continue such payments until such time as Respond- ent Gamut negotiates in good faith with the Union to agreement or to impasse thereon. (e) Preserve and, upon request, make available to the Board or its agents, for examination and copying, all payroll records, social security payment records, time- cards, personnel records and reports, and all other re- cords necessary to analyze the amount of backpay due under the terms of this Order. (f) Post at its place of business in Hayward, California, copies of the attached notice marked "Appendix B." 33 Copies of said notice, on forms provided by the Regional Director for Region 32, after being duly signed by Re- spondent Gamut's representatives, shall be posted by Re- spondent Gamut immediately upon receipt thereof, and be maintained by it for 60 consecutive days thereafter, in conspicuous places, including all places where notices to employees are customarily posted. Reasonable steps shall be taken by Respondent Gamut to insure that said no- tices are not altered, defaced, or covered by any other material. (g) Notify the Regional Director for Region 32, within 20 days from the date of this Order what steps Respond- ent Gamut has taken to comply herewith. 33 See fn 32. APPENDIX B NOTICE To EMPLOYEES POSTED BY ORDER OF THE NATIONAL LABOR RELATIONS BOARD An Agency of the United States Government WE WILL NOT refuse to recognize and bargain collectively with the above-named Union as the ex- clusive representative of our employees in the ap- propriate unit. WE WILL NOT refuse to bargain collectively with the above-named Union by refusing to supply rele- vant information to the Union upon request. WE WlLt. NOT unilaterally change the rates of pay, wages, hours, and/or other terms and condi- tions of employment of the employees in the appro- priate unit in derogation of our bargaining obliga- tions to the above-named Union. Wr Will1 NOT in any like or related manner in- terfere with, restrain, or coerce employees in the exercise of their rights guaranteed in Section 7 of the Act. Wl Vwit.I. recognize and, upon request, bargain collectively with the Office and Professional Em- ployees Union, Local 3, Office and Professional Employees International Union, AFL-CIO. CLC. as the exclusive representative of all our employees excluding guards, managerial, supervisory, sales, warehouse, professional, and confidential employees and, if an understanding is reached, embody such understanding in a signed agreement. WE WILI. jointly and severally with Westwood Import Company, Inc., make whole the employees in the above-described bargaining unit for any loss of employment benefits for the period on and after April 2, 1979, due to the failure of Westwood Import Company, Inc., to give effect to the terms and conditions of its contract with the Union, with interest, and continue such payments of its contract with the Union, with interest, and continue such payments until such time as we, at the request of the Union, have restored the employees' terms and conditions of employment to what they were prior to the time Westwood Import Company, Inc., repu- diated its contract with the Union. WE Wl.. upon request of the Union, revoke the unilateral changes in the rates of pay, wages, and other terms and conditions of employment which we have instituted in the aforesaid bargaining unit, until such time as we negotiate with the Union in good faith to agreement or an impasse in negotia- tions is reached. WE WIt.L make whole the employees in the aforesaid unit for any loss of pay or other benefits they may have suffered as a result of the aforesaid unilateral changes, with interest, and continue such payments until such time as we negotiate in good faith with the Union to agreement or impasse. GAMUT DESIGNS, INC., D/B/A WESTWOOD IMPORT COMPANY Copy with citationCopy as parenthetical citation