American Commercial BankDownload PDFNational Labor Relations Board - Board DecisionsNov 23, 1976226 N.L.R.B. 1130 (N.L.R.B. 1976) Copy Citation 1130 DECISIONS OF NATIONAL LABOR RELATIONS BOARD American Commercial Bank and Retail Clerks Union Local 1439 , Retail Clerks International Association, AFL-CIO. Cases 19-CA-8018 and 19-RC-7640 November 23, 1976 DECISION, ORDER, AND DIRECTION OF SECOND ELECTION BY CHAIRMAN MURPHY AND MEMBERS FANNING AND PENELLO On March 19, 1976, Administrative Law Judge Bernard J. Seff issued the attached Decision in this proceeding. Thereafter, the General Counsel filed ex- ceptions and a supporting brief. The Respondent filed a brief in support of the Administrative Law Judge's Decision and in reply to the General Counsel's 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, findings, and conclusions of the Administrative Law Judge but only to the extent consistent with the following. I. BACKGROUND The Respondent is a commercial bank with its main office and various branches in the Spokane, Washington, area. The Union began organizing its employees in early July 1975 t and demanded recog- nition on July 11. On July 16 its demand was denied and 2 days later it filed its representation petition. An election was held on September 10 which the Union lost 18 to 32. Thereafter, the Union filed time- ly objections to the election and a charge alleging violations of Section 8(a)(1) of the Act. On Novem- ber 11, the Regional Director simultaneously issued a complaint in Case 19-CA-8018, alleging that Re- spondent violated Section 8(a)(1) by various acts of interrogation, surveillance, and threats of reprisal and other coercive conduct, and Section 8(a)(3) and (1) by promulgating a rule for the purpose of pro- hibiting its employees from discussing the subject of union representation among themselves; a report on objections in Case 19-RC-7640 in which he de- termined that a hearing was necessary to resolve the issues raised by the objections which in many in- stances paralleled the complaint allegations in the re- 1 All dates are in 1975 lated unfair labor practice proceeding herein; and an order consolidating these cases for purposes of hear- ing and decision. In the decision that followed the consolidated hearing herein, the Administrative Law Judge, while acknowledging that there were "isolated" and "triv- ial" instances of interrogation by Respondent, never- theless concluded that Respondent had not violated the Act nor engaged in objectionable conduct "suffi- ciently serious to warrant setting the election aside." We disagree with both of these conclusions. II. THE UNFAIR LABOR PRACTICES A. Interrogation On or about July 13, the Union sent a letter to unit employees concerning organization of Respondent's banks. A day or so later, Robert Simmons, assistant manager at the Fifth and Washington branch, asked employee Swagman for a copy of the letter, which she never produced; inquired about its contents; and then, in a loud voice, asked the branch employees in general if they had received a copy of the letter. A couple of days later, while sharing a ride home after work with employee Strain, Simmons asked her about her union activities and sympathies. Strain passed off the questions though Simmons persisted in his inquiries for a moment or so. Also in mid or late July, Glenn Humphrey, manag- er of the Fifth and Washington branch, asked em- ployee Strain if she had attended any union meetings and how other employees felt about the Union.2 At roughly the same time in a conversation initiated by employee Nova concerning the Union, Humphrey asked Nova if a union meeting had been held at em- ployee "Wanda's" house.' 2 Strain testified that Humphrey asked her if she had attended union meetings and how she and other employees felt about the Union The Ad- ministrative Law Judge states that Humphrey categorically denied asking Strain these questions The Administrative Law Judge then added that "Strain impressed [ him] that she was testifying truthfully" and that he was "favorably impressed with the testimonial demeanor of Humphrey" The Administrative Law Judge did not resolve this apparent credibility conflict because he concluded that in any event Humphrey's alleged questioning did not in the circumstances violate the Act, even if it did occur However, as the General Counsel points out, Humphrey did not, as the Administrative Law Judge states, categorically deny asking Strain the foregoing questions Rather he only denied asking her about her union sympathies , but testified that he did not recall if he asked her about her attendance at union meetings and about the union sympathies of other employees Consequently, as the Administrative Law Judge found Strain to be a truthful witness and as Humphrey did not deny certain of her testimony as indicated, we credit Strain's testimony that Humphrey questioned her about her union meeting attendance and the union sympathies of other employees In view of these findings, we deem it unnecessary to resolve the conflict in their testimony concerning whether Humphrey also questioned Strain about her own union sympathies, as any finding based thereon would be cumulative 3 The Administrative Law Judge, apparently in treating Nova 's testimony as truthful , quoted Nova as stating Humphrey "said it [ the meeting] was at Wanda's" The Administrative Law Judge had, as to this incident , misread 226 NLRB No. 182 AMERICAN COMMERCIAL BANK 1131 Somewhere about the middle of August, Joseph F. Atkins, a vice president and manager of Respon- dent's main office, asked employee Jena Shaw how she planned to vote in the upcoming Board election. She replied she really did not know. Atkins then ex- pressed disapproval of the Union, told Shaw she should stay out of the whole mess, and indicated fur- ther disapproval by turning his thumbs down. At- kins' conduct occurred in association with two con- versations with Shaw concerning her request for special consideration for part-time work as she wished to return to school. The Administrative Law Judge found that none of the foregoing interrogations violated the Act as each was isolated and none contained an explicit threat or promise of benefit. We are of the opinion he mis- judged the matter. The questioning was done by company officers or managers. No proper reason was ever suggested for the inquiries and, at least in the case of Atkins, the interrogation was accompa- nied by management's expression of opposition to the Union. In view of these considerations and man- agement's developing antiunion campaign, involving, as found below, certain other unlawful conduct, we find that the above questioning of employees did tend to interfere with, restrain, and coerce employees with respect to their free exercise of Section 7 rights and that Respondent thereby violated Section 8(a)(l) of the Act through (a) Simmons' asking employees if they had received the Union's letter, and questioning employee Strain about her union sympathies; (b) Humphrey's asking Strain if she had attended a union meeting and how other employees felt about the Union and his questioning Nova about whether a union meeting had been held at "Wanda's" house; and (c) Atkins' asking Shaw how she intended to vote in the Board election. B. The "No Union Talk" Rule In an August 4 memorandum to employees, Presi- dent Kelly notified them through the use of a ques- tion-and-answer format that they could express per- sonal disapproval of the Union in the same manner and degree as prounion employees could express their approval, including trying to persuade their fel- low employees to vote against the Union. He cau- tioned them, however, that "your activities must be limited to non-working areas (such as the lunch- room) and to your own free time (such as coffee breaks and lunch hour)." Prior to the issuance of this memorandum there were, insofar as the record the record , for Nova's testimony is that Humphrey "said was it [ the meeting] at Wanda'sT' shows, no restrictions on employee conversations of any kind at any time and place in the banks,4 and there is no evidence-or for that matter no claim- that prounion or antiunion conversation had caused any job or business disruptions requiring, on that date or at any other time relevant, restrictions on such conversation. In view of the foregoing, we find, contrary to the Administrative Law Judge, that Re- spondent established and maintained its "no union talk (and solicitation)" rule for the purpose of inter- fering with and restraining employees in the exercise of their Section 7 rights, and thereby violated Section 8(a)(1) of the Act.5 Medley Distilling Company, Inc., 187 NLRB 84, 87 (1970); The Wm. H. Block Compa- ny, 150 NLRB 341 (1964).6 C. Threats 1. On or about July 31 employee Chance asked Clausen, manager of Respondent's Town and Coun- try branch, about a wage raise . According to Chance's testimony, Clausen replied that " the raises are cancelled right now because of the Union activi- ties under [sic] the employees." Clausen's version of the incident was that he told her no special increase could be given "because it was between quarters, be- cause of the Union situation and the review .. - would have been in two months." Clausen did not, however, specifically deny that he had told Chance wage raises were canceled because of employee union activities and his relating no special increases to "the union situation" is, on the contrary, some support for Chance's version. The Administrative Law Judge made no credibility findings concerning possible or partial inconsisten- cies between Chance's and Clausen's testimony be- 4 Respondent attempted to show that the rule was nothing more than the continuation of a long-established no-solicitation rule However, such rule, which seems to have been more a practice than a rule, applied only to outside solicitations As for the employees themselves , they had always been free to solicit among themselves for such things as football pools, gifts for each other , and the like , and there had never been any restriction on their conversation Thus, the restrictions placed on union conversation and solici- tations unquestionably constituted a new policy. S The Respondent contends in defense of the rule that it did not apply to prounion but only to antiunion conversation Ostensibly that is the case, but in stating that antiunion conversation was limited to free time and in non- working areas in the same manner as prounion conversation, Respondent was in fact announcing and imposing new restrictions on prounion conver- sation Of course , unwarranted restrictions on antiunion conversation along would be just as unlawful as such restrictions on prounion or all union conversation 6 In finding no violation with respect to the "no union talk" rule, the Administrative Law Judge relied on the Board's decision in Star -Brae In- dustries, inc. 127 NLRB 1008. 1010-11 ( 1960) We note that in The Wm H. Block Company, supra . 343, In 6, the Board overruled Star - Brite to the extent it conflicted with the former case "as to the nature of evidence re- quired to establish discriminatory motive in adopting and/or enforcing a no-solicitation rule " The Board also stated there that "[c]ontrary to the view expressed in Star - Brite, we are of the opinion that such evidence [as was shown in that case] indicates that such a rule may be unlawful " 1132 DECISIONS OF NATIONAL LABOR RELATIONS BOARD cause, in his view, Respondent's conduct was not un- lawful as Clausen was simply adhering to Respon- dent's announced policy concerning wage increases, with the consequence, he concluded, that there was no unlawful withholding of any increase. The Ad- ministrative Law Judge, however, misconceived the situation. The question is not whether the Respon- dent was justified in failing to give Chance a raise or even in refusing to consider a special raise for her. We assume there was no violation in this regard, and no such violation was alleged. Rather the question is whether, in turning Chance's request down, Respon- dent, through Clausen, attempted, whatever may have been its real reasons, to place the cause of the refusal on the Union and on the employees' union activities. In short, the issue concerns alleged coer- cion destructive of employees' Section 7 rights, not an alleged unlawful refusal to consider or grant wage increases. In any event, as Chance's testimony was neither contradicted nor discredited, we find that Clausen did tell her that raises were canceled because of the employees' union activities. The Respondent thus placed primarily on the Union and employee union activities the onus for Respondent's failure to grant or even consider a raise irrespective of the mer- its of the matter. We find such a statement, whether considered as a clear threat that union activities could result in economic loss or as interference with employee rights guaranteed under Section 7, was vio- lative of Section 8(a)(1) of the Act.7 2. Employee Robertson, who had worked only on Mondays and Fridays, made arrangements with Clausen to go on a regular 5-day schedule. At the time, according to Robertson, Clausen promised her a raise when she started the full workweek; Clausen denied he made any such promise but conceded he told Robertson a raise was a possibility. Then, ac- cording to Robertson, on August 25, the day she started her new job schedule, Clausen told her she would not get her pay raise because "raises are can- celled right now because of union activities" or be- cause "there is a freeze on all wages due to union activities." Clausen did not specifically deny making these statements. Rather he claimed he had no con- versation, at least concerning wages, with her at the time she started on her 5-day workweek. The Admin- istrative Law Judge did not expressly resolve this conflict between Robertson's and Clausen's version of what occurred. However, in his Decision the Ad- ministrative Law Judge stated that Clausen told Robertson that the Respondent's action concerning wages was taken "as the Bank did not wish to show any favoritism during the union campaign." He also 7 Aircraft Hydro- Forming, Inc, 221 NLRB 581 (1975) notes in his Decision that "Robertson asked Clausen about a raise" even though she knew that under the Respondent's established practice she was not then entitled to a raise. Both of these statements necessar- ily accept as true Robertson's testimony that there was a conversation between Clausen and her con- cerning a wage increase at the time she started her 5-day week; those statements are also clearly incon- sistent with Clausen's denial. Accordingly, we ex- pressly credit Robertson's version of the events and find that in August 8 when she started her 5-day week Clausen told her she would not get a pay raise or that wages were frozen because of union activity.' As pointed out above, such a statement placing the onus of a wage freeze on union activity is unlawful. Ac- cordingly, we find that Respondent, through Clausen's above statement to Robertson concerning a wage freeze, violated Section 8(a)(1) of the Act. 3. On August 19, President Kelly sent a memoran- dum to the employees which contained the following paragraph: Are you working to become an officer someday: We hope so, because it is usually those employ- ees with the extra something in the way of ener- gy, drive, capacity and willingness that make it . . . . They are also usually the same employees that have confidence in themselves to get ahead in the bank and don't feel they need a labor organization to protect them in what otherwise could be looked upon as a career. . The General Counsel contends essentially, and we s As stated, Robertson testified that Clausen made these comments to her the day she started her 5-day week on August 25 Clausen first testified that Robertson commenced the full work week in early July or sooner which would be before union activity commenced, but he then conceded that the change to a full week may have come later He stated the date could be verified by recourse to company records , but no effort was made on the record to clear up his confusion The Administrative Law Judge , in stating that Clausen made comments concerning union activity at the time he spoke to Robertson when she began her 5-day week, necessarily was implicitly holding that the change occurred after the union activity commenced, that is, sometime after July I 1 Such being the situation , there is no reason for not accepting Robertson 's testimony that the long workweek commenced on August 25 9 The Administrative Law Judge also implicitly credited Robertson in stating in his Decision that Clausen said "the Bank did not wish to show any special favoritism during the union campaign ," for it was Robertson, and not Clausen, who so testified However, the Administrative Law Judge mis- read the record in stating that Clausen made that comment at the time of his remarks that no raises would be given because of the Union Rather, Rob- ertson testified that the statement was made concerning the holding of a company picnic but could not remember whether or not it had been repeat- ed in the conversation in which Clausen stated she would not receive a raise Furthermore , assuming as the Administrative Law Judge states , that Clau- sen did say Respondent would not grant any increases in order not to show any special favoritism during the union campaign , such qualification would not render this threat innocuous and thus not violative of the Act , for, even if so qualified, his comments still place the onus for the wage freeze squarely on the employees' union activity See Aircraft Hydro-Forming, supra, where the Board found unlawful a statement to the effect an employee could not be given a raise because with union activities in the plant it might appear management was trying to buy her vote AMERICAN COMMERCIAL BANK agree, that the foregoing is an explicit threat to em- ployees that if they support a union and management becomes aware of the fact, they will not be consid- ered to have that self-confidence necessary for pro- motion to officer status. The Respondent contends, nevertheless, that the statement is not improper be- cause Respondent does not in fact rely upon an em- ployee's union sympathies in considering him or her for promotion to officer level.10 This contention would seem to be clearly at variance with the lan- guage quoted above and with certain testimony of President Kelly. However, even if the Respondent does not consider union sympathies in evaluating an employee for promotion, the quoted language is nonetheless an unambiguous threat that it does and thus would necessarily tend to restrain and coerce employees from freely and openly engaging in pro- union conduct. Consequently, we find that the quot- ed language is a clear threat of economic discrimina- tion against employees for engaging in union activities, and thus is unlawful under Section 8(a)(1) of the Act. Iii THE REMEDY Having found that the Respondent has engaged in certain unfair labor practices in violation of Section 8(a)(1) of the Act, we shall order that it cease and desist therefrom and take certain affirmative action designed to effectuate the policies of the Act. CONCLUSIONS OF LAW 1. American Commercial Bank is an employer en- gaged in commerce within the meaning of Section 2(6) and (7) of the Act. 2. Retail Clerks Union Local 1439, Retail Clerks International Association , AFL-CIO, is a labor orga- nization within the meaning of Section 2(5) of the Act. 3. By engaging in the following conduct , the Re- spondent has violated Section 8 (a)(1) of the Act: (a) Interrogating employees concerning their own or other employees union activities or about how they intend to vote in a Board representation elec- tion. (b) Promulgating, announcing , and/or maintain- ing a rule prohibiting employees from engaging in union-related conversations or solicitations on work- ing time or in working areas while permitting all other employee conversations or solicitations at such times or places , or otherwise establishing a no-solici- 10 The Administrative Law Judge in finding nothing illegal here seems to adopt the Respondent 's argument However , his position is not wholly clear 1133 tation rule for the purpose of interfering with self- organizational activities. (c) Threatening employees that if employees en- gage in union activities wages will be frozen and/or requests for special wage increases will not be consid- ered on their merits. (d) Threatening employees that if they support a union they will be considered as not possessing those qualities necessary for promotion to officer rank. 4. The above - listed violations are unfair labor practices affecting commerce within the meaning of Section 2 (6) and (7) of the Act. THE OBJECTIONS IN CASE 19-RC-7640 The conduct which is the subject of the Union's objections to the September 10 election is, for the most part, the same as that encompassed by the 8(a)(1) allegations of the complaint. In view of our various findings above that during the critical period Respondent violated Section 8(a)(1) of the Act, we find that there is substantial evidence to support the Union's objections." Consequently, we shall set aside the election and remand Case 19-RC-7640 to the Regional Director for purposes of holding a second election pursuant to the Direction of Second Election set forth below. ORDER Pursuant to Section 10(c) of the National Labor Relations Act, as amended, the National Labor Re- lations Board hereby orders that the Respondent, American Commercial Bank, Spokane, Washington, its officers, agents, successors, and assigns, shall: 1. Cease and desist from: (a) Unlawfully interrogating employees about the union activities and sympathies of themselves or of other employees or about how they propose to vote in a representation election. (b) Promulgating, announcing, and/or maintain- ing a rule prohibiting employees from engaging in Union-related conversations or solicitations on working time and/or working areas while permitting all other employee conversations or solicitations at such times and/or places, or otherwise establishing a no-solicitation rule for the purpose of interfering with the employees' self-organizational activities. (c) Threatening employees that pay raises will not be considered because of union activity or that if they support a union, they will not be considered as 11 In this regard , we do not rely on the unlawful interrogations engaged in by Simmons and Humphrey for it is not clear in the record that such inter- rogations occurred during the critical preelection period-that is, after July 18, the date the Union filed its petition 1134 DECISIONS OF NATIONAL LABOR RELATIONS BOARD possessing those qualities necessary for promotion to the level of company officer. (d) In any like or related manner interfering with, restraining, or coercing employees in the exercise of their rights protected by Section 7 of the Act. 2. Take the following affirmative action which the Board finds will effectuate the policies of the Act: (a) Post at its main office and branch banks in and about Spokane, Washington, copies of the at- tached notice marked "Appendix." 12 Copies of said notice, on forms provided by the Regional Director for Region 19, after being duly signed by the Re- spondent's representative, shall be posted by the Re- spondent immediately upon receipt thereof, and be maintained by it for 60 consecutive days thereafter, in conspicuous places, including all places where no- tices to employees are customarily posted. Reason- able steps shall be taken by the Respondent to insure that said notices are not altered, defaced, or covered by any other material. (b) Notify the Regional Director for Region 19, in writing, within 20 days from the date of this Order, what steps the Respondent has taken to comply here- with. IT IS FURTHER ORDERED that the election held among the Respondent's employees on September 10, 1975, be, and it hereby is, set aside and that Case 19-RC-7640 be, and it hereby is, remanded to the Regional Director for purposes of holding a second election pursuant to the following: [Direction of Second Election and Excelsior foot- note omitted from publication.] ii In the event that this Order is enforced by a Judgment of a United States Court of Appeals, the words in the notice reading "Posted by Order of the National Labor Relations Board" shall read "Posted Pursuant to a Judgment of the United States Court of Appeals Enforcing an Order of the National Labor Relations Board " APPENDIX NOTICE To EMPLOYEES POSTED BY ORDER OF THE NATIONAL LABOR RELATIONS BOARD An Agency of the United States Government WE WILL NOT unlawfully question our em- ployees about their union activities or sympa- thies or about the union activities or sympathies of other employees. WE WILL NOT ask our employees how they in- tend to vote in elections concerning union repre- sentation. WE WILL NOT prohibit our employees from en- gaging in union conversations or solicitations on working time and/or in working areas while per- mitting all other conversations by them at such times and/or places, or otherwise establish a no- solicitation rule for the purpose of interfering with self-organizational activities. WE WILL NOT threaten our employees that they will not be considered for pay raises because of union activities in our main or branch banks. WE WILL NOT threaten our employees that if they support a union they will not be considered as possessing those qualities necessary for pro- motion to the level of bank officer. WE WILL NOT in any like or related manner intefere with, restrain, or coerce our employees in the exercise of their rights protected by Sec- tion 7 of the Act. AMERICAN COMMERCIAL BANK DECISION STATEMENT OF THE CASE BERNARD J. SEFF, Administrative Law Judge: This is a consolidated proceeding putting in issue unfair labor prac- tice allegations contained in both the complaint and cer- tain objections to the election issued against American Commercial Bank, Respondent herein. The unfair labor practice allegations relate to numerous instances of assert- ed interference by Respondent with organizational rights of its employees in violation of Section 8(a)(1) of the Na- tional Labor Relations Act, as amended, by way of alleged interrogation of its employees. It is conceded by the Gener- al Counsel that the substance of the complaint reiterates the subject matter of the objections to the election in Case 19-RC-7640. These matters were consolidated for the hearing in the instant case. Hearing in the above-entitled matters, with all parties represented, was conducted before me in Spokane, Wash- ington, on January 21 and 22, 1976. Following the conclu- sion of the hearing, General Counsel and Respondent filed comprehensive briefs. Upon the entire record in this proceeding, and upon my observation of the demeanor of the witnesses, and after careful consideration of the briefs, I make the following: FINDINGS AND CONCLUSIONS 1. JURISDICTION Respondent admits, and I find, that Respondent is a Washington State corporation with offices and places of business located in and around Spokane, Washington, where it is engaged in the business of commercial banking through various branch outlets in the Spokane, Washing- ton, area. During the past year said Respondent performed services valued in excess of $50,000 directly to customers across state lines and also realized gross business volume in excess of $500,000. It is engaged in commerce within the AMERICAN COMMERCIAL BANK 1135 meaning of Section 2(6) and (7) of the Act. Respondent further admits and I find that the Union is a labor organi- zation within the meaning of Section 2(5) of the Act. The consolidated complaint was issued on November 11, 1975. The assertion of jurisdiction in this proceeding is proper. 11. THE ALLEGED UNFAIR LABOR PRACTICES A. Background Pursuant to a charge filed in Case 19-CA-8018 by the Union on September 26, 1975, the Regional Director for Region 19 issued a complaint on November 11, alleging in substance that the Respondent had engaged in various acts of interference, restraint, and coercion of employee rights in violation of Section 8(a)(1) of the Act because of certain interrogations allegedly engaged in by the Respondent. The Union made a request on July 11 for recognition of Respondent's nonsupervisory employees employed in Re- spondent's main office and its branch banks. The Union's request was denied on July 16 and the Union thereafter filed its election petition on July 18. The election was held on September 10, 1975. The Union began its organizing campaign among Re- spondent's employees in July 1975 and an ensuing election campaign following the filing of the Union's election peti- tion in Case 19-RC-7640 on July 18. The election was held on September 10 with the result that the Union lost the election. There were 18 votes cast for the Union and 32 against. B. Interrogation The complaint alleges in allegation 6(a) that on July I 1 Robert Simmons, assistant manager of the Fifth and Washington branch of Respondent's bank, questioned em- ployees concerning whether they had received letters from the Union. Employee Theresa Brereton testified that, about 8 a.m. around July 14, Simmons, in the presence of Kathy Swagman, Marge Nava, and Brereton, all of whom are tellers in the bank, was heard to say, "Oh, did everyone get a letter" or "did you get a letter." This remark was addressed to the group in general. In answer to this ques- tion, Brereton stated that "everyone, just more or less yes or somebody said no." Simmons did not pursue the matter any further. In addition, Swagman testified that Simmons asked her to bring him a copy of the letter. She did not comply with this request. In this connection, the General Counsel concluded that Simmons interrogated these em- ployees about the Union and thus violated Section 8(a)(1). It should be noted that this was the only conversation Sim- mons had with any employee on the subject of the union letter. This casual exchange is innocuous and does not add up to a violation of Section 8(a)(1). I recommend that this allegation be dismissed. Simmons and Strain live near each other and Simmons gave her a lift to and from work every day. Around July 16, while they were riding home, Simmons asked Strain what she thought of the Union. She told him she didn't know that much about unions and "that was it." Simmons also asked her if her father ever belonged to a union and what the other girls thought about it. She replied that she had no idea. "He then told me not to say anything to anybody else because he could get in trouble for it and that ended the conversation " These remarks concerning the Union took about I minute; I credit Strain but regard the conversation as an isolated incident. Respondent's brief cites the case of Bonnie Bourne, d/b/a Bourne Co. v N L R.B., 332 F.2d 47 (C.A. 2, 1964), where the court has the following statements to make con- cerning interrogation: Under our decisions interrogation, not itself threat- ening, is not held to be an unfair labor practice unless it meets certain fairly severe standards. These include: (1) The background, i e. is there a history of employer hostility and discrimination? (2) The nature of the information sought, e.g. did the interrogator appear to be seeking information on which to base taking action against individual employ- ees? (3) The identity of the questioner, i.e. how high was he in the company hierarchy? (4) Place and method of interrogation, e.g. was em- ployee called from work to the boss's office? Was there an atmosphere of "unnatural formality?" (5) Truthfulness of the reply. Respondent in its brief has the following to say concern- ing the Simmons' matter: The allegations against Simmons do not present the usual case of interrogation. Simmons is young, friend- ly, and curious, but he was not bent on a devious cam- paign of interrogation. The statement and the conver- sation were not reported to higher management, there were no threats, no prolonged or sustained periods of questioning and no discrimination. On both occasions Simmons simply dropped the matter. His remarks had no effect on the tellers or Jean Strain. Glenn Humphrey is alleged to have interrogated em- ployee Strain concerning her union activities and those of other employees. Further, it is alleged that Humphrey told an employee that he knew the union sympathies of other employees. Humphrey, age 66, was the manager of the Fifth and Washington branch of the Respondent' s organization for 6 years. He is now retired and has been in retirement since the end of August 1975. The complaint alleges that Humphrey had a conversa- tion with employee Strain in the course of which it is al- leged that he asked her about the extent of her involvement with the Union, whether she had attended any meetings and also what other employees thought about the Union. Humphrey categorically denied that he asked Strain about her involvement with the Union and that he asked her if she had attended any union meetings and what other em- ployees thought about the Union. The record thus raises a clear conflict of testimony on these points. Strain im- pressed me that she was testifying truthfully but I was also 1136 DECISIONS OF NATIONAL LABOR RELATIONS BOARD favorably impressed with the testimonial demeanor of Humphrey. He was equivocal in some of his answers but he seemed to be trying to recollect what he had said in a conversation with Strain which took place more than 6 months ago. Even if I were to credit the version of the incident as described by Strain, at worst this was an isolat- ed incident. According to the record, employee Nava intiated a con- versation with Humphrey during which she discussed with him a union meeting she had recently attended. Despite the contention of the General Counsel, I do not believe that Humphrey's answers indicate that he was en- gaging in surveillance of other employees by telling Strain that he knew how other employees felt about the Union. The record is clear that Nava told him she was opposed to unions and Strain's response was that each girl has a right to her own opinion. An examination of Nava's testimony concerning this question shows the following: Q. Well, did he make any reference to or inquire as to the location of the union meeting9 A. I think he possibly asked me if it was at Wanda's, I think he did. Q. How did he put it? A. When I was talking about the Union he said it was at Wanda's. Whatever else may be said about this incident, it is clear that in the context in which it occurred, there was no coer- cion, no threats, and no interference. The complete ab- sence of these factors in the conversation that Humphrey had with Nava indicates rather clearly that Humphrey was not attempting in a devious way to secure information con- cerning at whose homes union meetings were held. This information seems to have been volunteered to Humphrey by Nava. Allegation 6(g) states that: "Glenn Humphrey told an employee at the Fifth and Washington branch that he knew the union sympathies of another employee." In the context of his conversation with Nava, she volunteered the information that she was opposed to unions and was not sympathetic to their objectives. Despite the contention of the General Counsel, I do not believe that Humphrey's remarks indicate that he was en- gaging in surveillance of other employees by telling Strain that he knew how other employees felt about the Union. The record is clear that Nava told him she was opposed to unions and Strain's response was that each girl has a right to her own opinion The record does not indicate that Humphrey was at- tempting to find out the sympathies of other employees because he asked no questions concerning them. I will therefore recommend that allegation 6(g) be dismissed. It also came out in the testimony concerning Humphrey that he had given notice to the bank officials of his inten- tion to retire before the union election. He testified that he told Strain that while he thought well of labor unions, he did not think one was necessary in Respondent' s small bank. He also remarked that he would not be personally involved with union problems because he would no longer be employed at the Bank after his retirement took effect. Joseph Akins-Jena Shaw Incident Akins was approached by Shaw, whom he had known since infancy, and asked if she could speak to him about a personal problem . Akins agreed and a meeting took place between them, after working hours, at Strobel' s Restau- rant, located close to the Bank. Shaw told Akins she was considering completing her col- lege education. Akins encouraged her in this regard. She asked him if she could continue to work for the Bank on a part-time basis. He said he thought this could be worked out-that she could go to school in the morning and work for the Bank on a part-time basis in the afternoon. While it is not clear in the record when this incident occurred, it appears that in the course of the conversation Shaw asked Akins what he thought about the Union. He admittedly told her he was opposed to the Union. Appar- ently on the next day their conversation was resumed in the Bank. On this occasion Shaw testified Akins asked her how she intended to vote in the upcoming NLRB election. Akins did not deny that he asked Shaw this question. This type of interrogation is violative of Section 8(a)(1) of the Act. The improper question came up during the period that Akins was giving Shaw advice about continuing her educa- tion. However, it should be noted that nowhere in the rec- ord is there any evidence that the question was accompa- nied by a promise of benefit or a threat of reprisal. On a previous occasion Shaw had worked for the Bank on a part-time basis and therefore this problem had been met before. In the context of what occurred, I find that this improper question was an isolated incident. The Promulgation and Announcement of the "No-Union Talk" The General Counsel argues that prior to the advent of the Union employees had been free to talk among them- selves "even while at their work stations and during work- ing hours. They are also free to solicit during working time for baseball and football pools, United Crusade Charity Drives and for contributions for gifts to employees who were getting married "and other such occasions ." He also pointed out that even after promulgation of the no-union rule, "employees remained free to talk about nonunion re- lated subjects, except that they were not permitted to dis- cuss the Union during work time." Under these circumstances, the General Counsel con- tends that Respondent discnminatonly promulgated a set of rules "designed to discourage employee conversation among themselves about union representation." It is fur- ther argued that the fact that the rules were promulgated for the first time during the union campaign "supports an inference that the rules were discriminatorily promulgat- ed." The nub of the question presented is to determine if the rule was adopted for discriminatory purposes . Respondent, for its part, calls attention to Star-Brite Industries, Inc., 127 NLRB 1008, 1010 (1954). The Board stated in this case as follows 1. The no-solicitation rule: As recently stated by the Board in Walton Manufacturing Company, 126 NLRB AMERICAN COMMERCIAL BANK 697, employer rules prohibiting union solicitation by employees during working time are presumptively val- id as to their promulgation and their enforcement. However, as also stated in Walton, these presumptions may be overcome by evidence establishing a "discrim- inatory purpose" in the adoption of the rule, or by evidence establishing an "unfair" application of the rule. Such evidence, we find, is not present in this case. In finding the adoption of the rule bad, the Trial Examiner stressed the fact that the rule prohibited only union solicitation and was announced during the union campaign to an employee actively working for the Union, and that no showing was made by the Re- spondent that the rule was necessary "to maintain plant production and efficiency." In our view, these factors do not warrant a finding of a "discriminatory purpose." Since the criterion as stated in Walton gives presumptive validity to no-solicitation rules like that at issue here , it is not controlling that the prohibition of the Respondent's rule may have been limited to union solicitation and not have embraced other types of solicitation as well. With respect to the timing of and the circumstances under which the rule was an- nounced, we are unable to conclude that because the Respondent may not have formulated the rule prior to, but did so at the time of, the advent of the Union, that this alone necessarily evidences a "discriminatory purpose." It would be an anomaly to recognize that an employer may lawfully adopt such a rule, yet to hold that he may not do so when the occasion for its use arises. As to the absence of proof of the Respondent's actual need for its rule, we think it clear that as the law views such rules presumptively valid, it was not in- cumbent upon the Respondent to justify the rule by independent evidence. Obviously, the imposition of the requirement of justification would render the pre- sumption meaningless . Finally, regarding the lawful- ness of the actual enforcement of the rule, there is no evidence in the record tending to establish that the rule was "unfairly" applied. Thus, for example there was no showing that the enforcement of the rule was an "unreasonable impediment" to the Union's organi- zational efforts. For the foregoing reasons, we hold that the Respon- dent did not violate the Act in promulgating and en- forcing a no-solicitation rule. I find that the promulgation and enforcement of the no- solicitation and conversation rule was not adopted by the Company or enforced by it for a discriminatory purpose. Clausen's Statements Regarding Cancellation or Freezing of Wage Increases Due to Union Activities Allegation 6(h) of the complaint alleges that Clausen told employees at the Town and Country branch bank that wage increases were frozen or would not be granted by Respondent due to the Union. The record shows that an employee of the Town and Country branch, Martha Chance, was reviewed for a raise effective July 1, 1975, but 1137 the bank personnel committee decided that she was not entitled to a raise. Another employee of the Town and Country branch, Mary Robertson, had received a raise on April 1, 1975, and was reviewed for a raise on July 1, 1975, but again the personnel committee determined that she was not entitled to a raise. Chance stated that Clausen told her that raises were can- celed. Clausen testified that he told Chance that she could not get a "special" raise because the appropriate time for her salary review was not at hand. He told her that her next salary review would be as of October 1, 1975, in accor- dance with the procedures in the employee handbook. Robertson asked Clausen about a raise. In contrast to what Chance testified, Robertson said that Clausen had told her that raises were "frozen." Moreover, Clausen told Rob- ertson that he could not talk to her about the Union. Clausen told Robertson that the action with respect to raises had been taken as the Bank did not wish to show any special favoritism during the union campaign. Respondent's brief states that in a recent case, Encinitas Floral Co. (United Farm Workers of America, AFL-CIO), 221 NLRB 1118 (1976), the Board, when faced with a ques- tion almost identical to the one concerned here , stated as follows: It is concluded that the Employer did not interfere with the union representation election by deferring all pay raises until after the union representation election. There was no attempt by the Employer to influence the votes of employees in the upcoming election by deferring the wage increases. The Employer informed affected employees that he was deferring their wage increases in order to avoid the appearance of attempt- ing to influence their votes in the election, especially since the amounts of the individual increases could vary. None of the employees were deprived of a wage increase, since after the election the increases were awarded retroactively to the respective anniversary dates. Bank President Kelly testified that each employee, upon being hired, had been given a copy of the personnel policy of the American Commerical Bank which provides that, with respect to wage increases , periodic reviews are made of all employees on a quarterly basis. According to Kelly's testimony employees received raises on July 1, 1975, in- cluding three Town and Country branch employees. These raises appeared on the July 15 paychecks. Respondent pointed out that Mr. Kelly could have canceled the July 1 raises after he was contacted by the Union on July 11, 1975 However, the Bank continued its regularly estab- lished policy with respect to wage reviews, since this had been their practice over a long period of time. Clausen was told that he should be careful to do nothing special that might create an impression that the Bank was trying to show favoritism to employees and influence them to be favorable to the Bank's way of thinking regarding the Union. 'This citation and quoted material were taken from the Respondent's brief, however, we have not been able to ascertain the right citation for the quoted material 1138 DECISIONS OF NATIONAL LABOR RELATIONS BOARD Martha Chance, an employee of the Town and Country branch, was reviewed for a raise effective July 1, but the bank personnel committee decided that she was not enti- tled to a raise . Another employee of the Town and Country branch, Mary Robertson, had received a wage increase on April 1, 1975, was reviewed for a raise on July 1, but again the personnel committee determined that she was not enti- tled to a raise. Chance testified that she was aware that the procedures set forth in the Bank's personnel handbook with respect to the time when raise increases were consid- ered. She testified that Clausen told her that raises were canceled because of the union situation. Clausen testified that he told Chance that she could not get a "special" raise because the appropriate time for her salary review was not at hand. He also told her that her next salary review would be as of October 1, 1975, in accordance with the proce- dures in the handbook. Robertson testified that she also was aware of the salary review procedures and knew that other employees at the Bank had received raises on July 1. Despite this fact, Robertson asked Clausen about a raise. According to her testimony, Chance testified that raises were frozen. It is not contradicted that both Chance and Robertson received their quarterly wage review under the Bank's es- tablished procedure. According to Respondent's position with respect to salary increases , it was stated that to grant either Chance or Robertson an increase would be in the nature of a "special" wage increase and that this was not appropriate. The General Counsel argues in his brief that Clausen's statement to Chance must be treated as a coercive remark in violation of Section 8(a)(1) of the Act, and he cites in support of this conclusion National Utility Products Compa- ny, 220 NLRB 220 64 (1975). The National Utility Products Company states in footnote 3 that the respondent, through its vice president, James E. Jefferies, violated Section 8(a)(1) of the Act by promising benefits to individual em- ployees in order to dissuade them from engaging in union activities. It is further stated in this footnote that the re- marks of Jefferies clearly convey to the employees the im- pression that certain fringe benefits were being considered, and that, but for the employees' union activities, such plans for additional benefits would have been further developed, and perhaps even finalized. The withholding or condition- ing of benefits because of the employees' protected con- certed activities, or implications that this was being done is clearly destructive of their Section 7 right to engage in such activities. The General Counsel's reliance on National Utility Prod- ucts Company is misplaced because the facts are substan- tially different from the facts of the case at bar. In the instant case the procedure followed with respect to wage increases was in accord with Respondent's practices as stated in the booklet on personnel practices given to all new employees. In the instant case Respondent did not withhold wage increases in an attempt to persuade employ- ees that but for the Union they would have received such wage increases . It is clear that by continuing to follow the wage review policies it has always followed, there was no withholding of increases that came within the time sched- ules of such increases. Whatever else may be said about the argument of the General Counsel, it is certainly clear that his conclusion is not borne out by a preponderance of the credible evidence in the record. I find nothing violative of the total statement given in the context in which it was made and I therefore recommend the dismissal of this allegation in the com- plaint. The Ken Anderson-Pam Miller Exchange The record shows that considerable time was spent in arguing whether or not Anderson was a managerial or su- pervisory employee. In this connection it should be noted that when Anderson was hired in January, he was hired with the anticipation of his becoming a manager of a new branch bank which was then in process of completion; during the period of the preelection campaign, he had spent a full month as acting branch manager of two branches while the regular managers were on vacation. During this time he approved loans and sat at the manager's desk; he was responsible for doing the prepara- tory work in getting the new branch put together, including drafting applications for the appropriate Government agencies , locating equipment and supplies to be used in the new branch and working with the architect on the layout of the new branch bank; he was paid more than nonmanager- ial employees; he was called on the carpet on August 29 by Kelly and interrogated by Respondent's attorney about the Iverson incident. Unless Respondent considered Anderson part of management, there would have been no reason to interrogate him; he attended monthly meetings concerning business development, one of which he along with others present received instructions from Kelly regarding the "do's and don'ts" of management behavior during a union campaign; he analyzed and made effective recommenda- tions concerning loan applications that were considered by top bank management He was made a vice president of the Bank and it should be noted that the title of vice presi- dent has been conferred on only four of the Bank's top management personnel and on only two of the six branch managers From all of the above , it seems clear and I find that Anderson was a managerial employee and had the attributes of a supervisor in accordance with the definition of a supervisor as found in Section 2(11) of the Act. While not entirely clear from the record, it appears that Miller and Anderson were working next to one another and talking about the subject of funeral homes and auto- mobile accidents An employee, Wanda Iverson, working nearby became upset and so informed Anderson and Miller. Iverson was upset because she had lost a son in an automobile accident a few years earlier. That same day Union Representative Zachary called Respondent' s Presi- dent Kelly to complain about the incident. Thereafter, An- derson was called "on the carpet" by Kelly and asked to take a telephone call from Respondent's legal representa- tive who inquired about the earlier incident involving Iver- son. Anderson explained he had not intended to embarrass anyone by the earlier incident. Thereafter, Anderson and Miller were talking about this episode. Miller commented that she thought the Union was being "a little bit picky" about complaining to management about the incident AMERICAN COMMERCIAL BANK 1139 which relates to Anderson's account on this point. Ander- son then asked Miller if it was really true that Wanda was "really behind it." Miller added that she thought Anderson was referring to the Union and replied that she didn't know and wouldn't tell him if she did. Despite some differ- ences between the version given by Anderson and the one given by Miller, the General Counsel takes the position that Anderson's asking an employee who had been behind the report to the Union is in and of itself a form of union activity regarding which management has no right to in- quire . From all of this, the General Counsel concludes that Miller properly understood the question and the context to mean "is Iverson really behind the union activity." Whatever can be said about the position taken by the General Counsel with respect to this incident, it is certainly clear that it was not established that the General Counsel succeeded in carrying his burden of proof on substantial testimony based on credible evidence in the record. Kelly's Speech at Airway Heights and Main Branches: Creation of Impression of Surveillance of Union Activities At the close of the Company's campaign urging its em- ployees to reject the Union, Kelly made speeches to his employees in the course of which he allegedly departed from the script that he had in his hand and made a com- ment to the effect that employees should not be influenced despite what may have occurred at two meetings held in two employees' homes concerning the Union. The employ- ees were not obligated to vote for the Union. The main bone of contention between the Respondent and the Gen- eral Counsel was whether or not Kelly had devoted his comments contained in a speech solely based on the tran- script he had before him or whether he departed from the script to make the observation recorded above. Respon- dent presented convincing witnesses who testified that Kel- ly never departed from the script of the speech that he was making but that he did raise his eyes occasionally from the pages he was reading to establish "eye contact" with his listeners . On the other hand, the General Counsel's version of the incident consists of the testimony of Wanda Iverson and Bonnie Demianew and one employee at the Airway Heights branch, Doris Morton. These employees firmly and unequivocally stated that Kelly made a reference, dur- ing his speech, of having knowledge that employees had held union meetings at two employees' homes. It is the contention of the General Counsel, based on the testimony of Iverson and Demianew, that Kelly looked directly at Iverson when he made the extemporaneous reference to meetings at two employees' homes in the speech at the main branch. It was also urged that Morton, who had held one of the meetings in her house, and would under- standably be particularly sensitive to and likely to recall such a remark, said Kelly stared directly at her when he made a similar extemporaneous reference to Airway Heights. Despite vigorous cross-examination, these three employees stuck to their story. Kelly was equally firm in his denial that he deviated in any way at any time from the text of the script. Respon- dent called a number of witnesses to corroborate his con- tention that he did not deviate from the script in any way whatsoever . In the conclusion of the General Counsel's re- cital of the events concerning this incident , it is stated: In sum , it is more probable than not, that Kelly let slip on two occasions that he knew that at least two em- ployees had held union meetings in their homes and, assuming he did so, he thereby created in employees' minds. the reasonable apprehension that their union activities had been under management surveillance The trouble with this statement is that it is based entirely on a supposition and a statement as indicated in the com- ments of the General Counsel . Assuming Kelly did so, he created the impression of surveillance . This hardly consti- tutes proof by a preponderance of credible evidence that the incident took place as asserted by the General Counsel. Similarly, it can be said that an equal conclusion could be reached that , leaving out the assumptions , Kelly did not deviate from the script and did not look at the two employ- ees at whose homes certain union meetings had taken place . At best this is a weak allegation and I find that it was not supported by the evidence of the record . I there- fore recommend that this allegation be dismissed. OBJECTIONS TO THE ELECTION It was conceded by the General Counsel that the objec- tions encompass the material set forth in the 8 (a)(1) allega- tions of the complaint. The General Counsel takes particular exception to the last sentence in the memorandum . He interprets this sen- tence to be an announcement from the president of the Bank that if an employee joined the Union, he would have to give up his chances for advancement. In my opinion the General Counsel's interpretation is without foundation . In this connection the record also con- tains a statement by Kelly that he knew of certain banks in Washington where the employees were unionized and, de- spite this fact, did receive promotions . Thus, even if Kelly's statement was capable of the interpretation given it by the General Counsel , such a conclusion was negated on the record by Kelly. I recommend that the allegation concern- ing this matter be dismissed. Analysis and Conclusion While admittedly there were a number of interrogations which might be considered to be violations of the Act, as I view them they were both isolated and trivial. In the holding in J. P Stevens & Co., Inc, 217 NLRB 513, 514 (1975), the Administrative Law Judge stated as follows: The election results . . . show that the Petitioner received 119 votes, with 176 votes against it. In the light of the substantial margin of the Union's loss, I do not regard the unfair labor practice I have found, con- sisting of a single interrogation and a single threat by one supervisor to one employee, as a sufficient basis for setting aside the election, and shall recommend that this objection be overruled. 1140 DECISIONS OF NATIONAL LABOR RELATIONS BOARD The threat directed against an employee is much more serious than the innocuous bits of interrogation on which the General Counsel bases his conclusion that the election should be set aside. In the J. P Stevens case the Board short-formed the decision of the Administrative Law Judge. In the instant case the Union lost the election by almost 2 to 1 (18 for and 32 against the Union). In the case of Groendyke Transport, Inc., 211 NLRB 921 (1974), enfd. 530 F.2d 137, 144 (1976), the United States Court of Appeals, Tenth Circuit, had this to say about in- terrogations: It is true that a record showing only isolated, innoc- uous incidents of interrogation, and unrelated conver- sations lacking the indicia of coercion, has been held insufficient to sustain findings of unfair labor prac- tices under §8 (a)(1). N.L R.B v. Orleans Manufactur- ing Co., supra, 412 F.2d at 96.... The issue is wheth- er the proof demonstrates interference, restraint or coercion of employees in violation of § 8(a)(1). The core of the unfair labor practice Ices in the element of coercion and does not extend to a total restriction against argumentative discussion of the effect of unionization, argumentative discussion itself being protected by § 8(c) of the Act. N.L.R.B v. Thompson Transport Co., 406 F.2d 698, 702 (10th Cir.); N. L. R. B. v. Automotive Controls Corp., 406 F.2d 221, 223-34 (10th Cir.). [Emphasis supplied.] I am fully aware of the fact that interrogation is narrow- ly construed in a situation involving objections to an elec- tion. Nevertheless it is significant to remark at this juncture that the ambience in the Bank and its branches is remark- ably free of any suggestion of coercion. I find that Respondent, American Commercial Bank, did not violate any provisions of the Act and I therefore recommend that the complaint be dismissed in its entirety. CONCLUSIONS OF LAW It has not been established on this record that Respon- dent committed any of the unfair labor practices alleged in the complaint except for certain isolated instances which do not seem sufficiently serious to warrant setting the elec- tion aside [Recommended Order for dismissal omitted from publi- cation.] Copy with citationCopy as parenthetical citation