Arrow Industries, Inc.Download PDFNational Labor Relations Board - Board DecisionsSep 28, 1979245 N.L.R.B. 1376 (N.L.R.B. 1979) Copy Citation DECISIONS OF NATIONAL LABOR RELATIONS BOARD Arrow Industries, Inc. and Lee R. Crowley and Arrow Industries Transportation Union. Cases 16 CA- 7321, 16-CA-7421, 16 CA-7431, and 16-RC 7448 September 28, 1979 DECISION AND ORDER BY CHAIRMAN FANNING AND MEMBERS JENKINS AND PENELLO On May 10, 1979, Administrative Law Judge Abraham Frank issued the attached Decision in this proceeding. Thereafter, Respondent filed exceptions and a supporting brief, and the General Counsel filed cross-exceptions and a supporting brief. 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,t' and conclusions2 of the Administrative Law Judge and to adopt his recommended Order, only to the extent consistent herewith.3 1. The Administrative Law Judge concluded that striker Bobby D. Richie engaged in strike misconduct that was sufficiently serious to justify Respondent's failure to reinstate Richie. We do not agree. As more fully described in the Administrative Law Judge's Decision, during the strike, strikers Richie and Will Ray observed one of Respondent's trucks driven by mechanic Walt Henry leave Respondent's plant. They followed the truck which Henry drove to his wife's place of employment. At that point, the strikers approached and spoke with Mr. and Mrs. Henry, apparently with Richie and Mrs. Henry doing all the talking. Richie asked Mrs. Henry to convince her husband not to drive Respondent's truck during the strike. Mrs. Henry replied that her husband was not on strike. According to the Administrative Law Judge's factual findings, the brief conversation concluded I Respondent has excepted to certain credibility findings made by the Ad- ministrative Law Judge. It is the Board's established policy not to overrule an administrative law judge's resolutions with respect to credibility unless the clear preponderance of all of the relevant evidence convinces us that the resolutions are incorrect. Standard Dry Wall Products. Inc., 91 NLRB 544 (1950), enfd. 188 F.2d 362 (3d Cir. 1951). We have carefully examined the record and find no basis for reversing his findings. 2 In affirming the Administrative Law Judge's conclusions as to Respon- dent's disparate treatment of Lee Crowley, we note that, regardless of senior- ity being a recognized fact of industrial life, Respondent's past practice had been, in regard to truck assignments, to rely on seniority. Pursuant to Hickmort Foods, Inc., 242 NLRB 1357 (1979), we find that a narrow cease-and-desist order, rather than a broad order, is appropriate to remedy the violations found herein. with Richie angrily describing the strike as an "all out war" and telling Mrs. Henry that "if Walt goes on the run there will be trouble for you." In concluding that Richie's remarks constituted se- rious strike misconduct, the Administrative Law Judge, in effect, concluded that the vice in Richie's statements was that they were directed to Mrs. Henry rather than Mr. Henry. The Administrative Law Judge recognized that the term "trouble" is ambigu- ous and that Richie's remarks were unaccompanied by any threat of physical violence or assault.4 The Board has long held that "not every impropri- ety committed in the course of a strike deprives an employee of the protective mantle of the Act." In past cases, the Board has found that a single isolated threat, unaccompanied by any physical violence, is not of a sufficiently serious character as to remove an employee from the protection of the Act.6 Here, Richie's remarks were unaccompanied by any threat of physical assault or violence. The conver- sation with Mrs. Henry was brief and was not marked with vulgar invective. Richie's statements, at worst, constituted an isolated threat not followed by any ac- tions meant to implement that threat. Further, we cannot agree with the Administrative Law Judge's conclusion that Richie's remarks rose to a level of serious misconduct because they were di- rected to Mrs. Henry. Admittedly, Mrs. Henry's en- counter with Richie made her distraught. However, it is quite significant that Mr. Henry was present for the entire conversation and was standing only a few feet from his wife. We do not condone Richie's having directed his remarks to Mrs. Henry-or, indeed, that he found it necessary to make any remarks at all- but strikes frequently cause hard and bitter feelings and are not normally accompanied by chivalry on the part of strikers.7 Mrs. Henry was not so isolated that Richie's "trouble for you" remark, without more, can be found, under all the circumstances present, to con- stitute serious strike misconduct. 8 4 Mrs. Henry testified that Richie made no gestures during the conversa- tion, but, rather, kept his hands in his pockets. Coronet Casuals, Inc., 207 NLRB 304 (1973). 6 See MP Industries, Inc., and its Subsidiaries, Micro Alloy of Missouri, Inc. and Midwest Precision Castings Company, 227 NLRB 1710 (1977); Hartmann Luggage Company, 183 NLRB 1246 (1970). enfd. in part 453 F.2d 178 (1971). See Terry Coach Industries, Inc., 166 NLRB 560, 564 (1967). Some courts of appeal have disagreed with the Board's reliance-in de- termining the seriousness of strike misconduct-on the absence or presence of physical threats. See, e.g.. N.LR.B. v. W C. McQuaide, Inc., 552 F.2d 519 (3d Cir. 1977), and Associated Grocers of New England Inc. v. N.LR.B., 562 F.2d 1333 (st Cir. 1977). In McQuaide, the Third Circuit applied the follow- ing test for determining whether misconduct loses the protection of Sec. 7: ·. .whether the misconduct is such that, under the circustances existing, it may reasonably tend to coerce or intimidate employees in the exercise of rights protected under the Act. [552 F.2d at 528, quoting Operating Engineers Local 542 v. N.L.R.B., 328 F.2d 850, 852-853 (3d Cir. 1964)] 245 NLRB No. 179 1376 ARROW INDUSTRIES, INC. Accordingly, as we agree with the Administrative Law Judge's rejection of Respondent's other reasons for denying reinstatement to Richie, we find that Richie did not engage in serious strike misconduct so as to forfeit the Section 7 protection accorded em- ployees who participate in lawful strikes. We shall therefore order that Respondent reinstate Richie.9 2. The Administrative Law Judge found that Re- spondent violated Section 8(a)(3) of the Act by em- ploying lease drivers rather than recalling the eco- nomic strikers. '° He also found that the strikers were available for recall on and after April 29, 1977, and that Respondent did not show legitimate and sub- stantial business justification for denying the strikers preferential treatment in filling job openings. We fully agree. In his cross-exceptions, the General Counsel asks the Board to find specifically that Respondent's fail- ure to reinstate the economic strikers upon the depar- ture of the permanent replacements violated Section 8(a)(3) and (1) of the Act. Though such a finding is implicit in the Administrative Law Judge's Decision, we shall, lest there be any confusion, make the finding sought by the General Counsel. It is well settled that economic strikers who have made unconditional offers to return to work are enti- tled to full reinstatement unless their jobs have been filled by permanent replacements, and that even after such replacement the strikers are entitled to reinstate- ment when the replacements leave unless the em- ployer can show a legitimate and substantial business justification for not reinstating them. N.L.R.B. v. Great Dane Trailers, Inc., 388 U.S. 26 (1967); N.L.R.B. v. Fleetwood Trailer Co., Inc., 389 U.S. 375 (1967); The Laidlaw Corporation, 171 NLRB 1366 (1968), enfd. 414 F.2d 99 (7th Cir. 1969). It is clear that after April 29, 1977-when the strikers applied unconditionally for reinstatement-many of Respon- dent's strike replacements, found to be permanent re- placements by the Administrative Law Judge, left Re- spondent's employ, but their jobs were not offered to strikers. Accordingly, absent legitimate and substan- In this case, were we to apply the court's test to Richie's remarks, the result would be the same. Richie's isolated and ambiguous "trouble for you" state- ment-made in the presence of Mrs. Henry's husband and unaccompanied by any physical threats or vulgar invective-was not such as would reason- ably tend to coerce or intimidate. The court's test is an objective one, and thus the fact that Mrs. Henry became distraught is not determinative Rather, under all the circumstances existing, Richie's conduct, under the court's test, did not remove from him the protection of the Act. I Consistent with this finding, we shall direct that the challenge to Rlchie's ballot be overruled. 10 Respondent excepted to the Administrative Law Judge's finding that it did not utilize lease drivers after December 1977. Respondent contends that the record shows only that the use of leave drivers continued at least through December. However, we need not resolve the issue raised by Respondent's exception because, assuming arguendo, that Respondent used leave dnvers after December 1977. we would nonetheless reach the same results In this case. tial business justifications for its actions, Respon- dent's failure to offer strikers reinstatement upon the permanent replacements leaving its employ violated Section 8(a)(3) and (1) of the Act. 3. Respondent excepts to the Administrative Law Judge's failure to rule on the challenge to the ballot of Charles Schwemmer. The record reflects-as con- tended by Respondent-that "Charles Clack" and "Charles Schwemmer" are the same person and that "Clark-Schwemmer" was hired as a permanent re- placement by Respondent. Accordingly, we shall overrule the challenge to Charles Schwemmer's bal- lot. ORDER Pursuant to Section 10(c) of the National Labor Relations Act, as amended, the National Labor Rela- tions Board hereby orders that the Respondent, Ar- row Industries, Inc., Carollton, Texas, its officers, agents, successors, and assigns, shall: 1. Cease and desist from: (a) Discouraging membership in a labor organiza- tion by discriminating against employees with respect to terms and conditions of employment because they had engaged in a strike and other protected concerted activities. (b) Discouraging membership in a labor organiza- tion by employing lease drivers rather than recalling economic strikers, who had terminated the strike against Respondent and on whose behalf an uncondi- tional application to return to work had been made and by denying reinstatement to those economic strikers upon the departure of their permanent re- placements. (c) Interfering with, restraining, and coercing em- ployees by threatening to treat them as insubordinate employees because they have filed charges with the Board. (d) Failing and refusing to reinstate Bobby D. Richie, who unconditionally offered to return to his job, for having engaged in a lawful strike or other concerted activity protected under the provisions of Section 7 of the National Labor Relations Act, as amended. (e) In any like or related manner interfering with, restraining, or coercing employees in the exercise of their rights guaranteed in Section 7 of the Act. 2. Take the following affirmative action necessary to effectuate the policies of the Act: (a) Offer to Lee R. Crowley the use of a new rather than an old tractor: permit him to "have say" in the selection of his runs; apply the 24-hour layover rule in a lenient rather than a strict manner; schedule physical examinations for Lee R. Crowley at intervals normally required unless Respondent has reasonable 1377 DECISIONS OF NATIONAL LABOR RELATIONS BOARD grounds for believing that such an examination is necessary prior thereto; pay Lee R. Crowley the bo- nus denied him in 1977; and make him whole for all losses suffered by him as a result of the discrimination against him, with interest, in accordance with the for- mulas set forth in F. W. Woolworth Company, 90 NLRB 289 (1950), and Florida Steel Corporation, 231 NLRB 651 (1977). (See, generally, Isis Plumbing & Heating Co., 138 NLRB 716 (1962).) (b) Make whole Wheeler Atkins, Kyle Brammer, Charlie Bryant, Earl Butler, Edward Cordero, Lee R. Crowley, O. E. Kirkland, William Lebo, Jesse Penn, Lonnie Rand, Will Ray, Sam Rutledge, and Don Worley for all losses in wages suffered by them as a result of Respondent's discriminatory conduct in de- laying reinstating them to their jobs by employing lease drivers on and after April 29, 1977, when an unconditional offer to return to work was made on behalf of the above-named strikers, and by not rein- stating them upon the departure of their permanent replacements, with interest in accordance with the formulas in the cases cited in 2(a) above. (c) Offer Bobby D. Richie immediate and full rein- statement to his former job or, if that job no longer exists, to a substantially equivalent position, without prejudice to his seniority or other rights and privileges previously enjoyed and make him whole for any losses caused by the failure to reinstate him in a timely fashion, with interest in accordance with the formulas set forth in the cases cited in 2(a) above. (d) Post at its place of business in Carollton, Texas, copies of the attached notice marked "Appendix."" Copies of said notice, on forms provided by the Re- gional Director for Region 16, after being duly signed by an authorized representative of Respondent, shall be posted by Respondent immediately upon receipt thereof, and be maintained by it for 60 consecutive days thereafter, in conspicuous places, including all places where notices to employees are customarily posted. Reasonable steps shall be taken by Respon- dent to insure that said notices are not altered, de- faced, or covered by any other material. (e) Preserve and, upon request, make available to the Board or its agents, for examination and copying, all payroll records, social security payment records, timecards, personnel records and reports, and all other records necessary to analyze the amount of backpay due under the terms of this Order. (f) Notify the Regional Director for Region 16, in writing, within 20 days from the date of this Order, " In the event that this Order is enforced by a Judgment of the 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 Judg- ment of the United States Court of Appeals Enforcing an Order of the Na- tional Labor Relations Board." what steps the Respondent has taken to comply here- with. IT IS FURTHER ORDERED that the complaint be dis- missed with respect to the allegation that Respondent violated Section 8(a)(3) and (1) of the Act by failing to reinstate Joe Waldrop. IT IS FURTHER ORDERED that Case 16-RC-7448 be, and it hereby is, severed from this consolidated com- plaint and remanded to the Regional Director; that the ballots of the employees found herein 2 to be valid be opened and counted by the Regional Director in accordance with the Board's Rules and Regulations and a revised tally of ballots issued and served on the parties. In the event the Petitioner has received a ma- jority of the valid ballots cast, the Regional Director shall issue the appropriate certification of representa- tive. In the event the Petitioner has not received a majority of the valid ballots cast, IT IS HEREBY OR- DERED that the election conducted on August 20, 1977, be, and it hereby is, set aside. The Regional Director shall conduct a new election when, in his discretion, a fair and free election can be held. " In accordance with our Decision, the Regional Director shall open and count, in addition to those challenged ballots overruled by the Administra- tive Law Judge, the ballots of Bobby D. Richie and Charles Schwemmer. APPENDIX NOTICE To EMPLOYEES POSTED BY ORDER OF THE NATIONAL LABOR RELATIONS BOARD An Agency of the United States Government WE WILL NOT discourage membership in Ar- row Industries Transportation Union, or any other labor organization, by discriminating against our employees with respect to terms or conditions or employment because they have en- gaged in a strike or other protected concerted activities. WE WILL NOT discourage membership in the above-named labor organization or any other la- bor organization by employing lease drivers rather than recalling economic strikers who have terminated a strike against us and on whose be- half an unconditional offer to return to work has been made, and by denying reinstatement to those economic strikers upon the departure of their permanent replacements. WE WILL NOT interfere with, restrain, and co- erce our employees by threatening to treat them as insubordinate employees because they have filed charges with the National Labor Relations Board. WE WILL NOT fail or refuse to reinstate any employee, upon his unconditional offer to return, because he engaged in a strike. 1378 ARROW INDUSTRIES, INC. WE WILL NOT in any like or related manner interfere with, restrain, or coerce our employees in the rights guaranteed them in Section 7 of the Act. WE WILL offer Lee R. Crowley the use of a new tractor rather than an old tractor; permit him to "have a say" in the selection of runs; ap- ply the 24-hour layover rule in a lenient rather than a strict manner; schedule physical examina- tions for Lee R. Crowley at intervals normally required unless we have reasonable grounds for believing that such an examination is necessary prior thereto; pay Lee R. Crowley the bonus de- nied him in 1977; and make him whole for all losses suffered by him as a result of our discrimi- nation against him with interest. WE WILL make whole Wheeler Atkins, Kyle Brammer, Charlie Bryant, Earl Butler, Edward Cordero, Lee R. Crowley, O. E. Kirkland, Wil- liam Lebo, Jesse Penn, Lonnie Rand, Will Ray, Sam Rutledge, and Don Worley, for all losses in wages suffered by them as a result of our dis- criminatory conduct in delaying reinstating them to their jobs by employing lease drivers on and after April 29, 1977, when an unconditional offer to return was made on behalf of the above- named strikers, and in not reinstating them upon departure of their permanent replacements, with interest. WE WILL offer to Bobby D. Richie immediate and full reinstatement to his formerjob or, if that job no longer exists, to a substantially equivalent position, without prejudice to his seniority or other rights and privileges previously enjoyed, and WE WILL make him whole for any losses caused by our unlawful conduct against him, plus interest. ARROW INDUSTRIES. INC. DECISION ABRAHAM FRANK, Administrative Law Judge: The origi- nal charges in this consolidated case were filed on July 12, 1977,' August 17 and 22. The original complaint issued on August 24 and the consolidated complaint, alleging viola- tions of Sections 8(a)(3) and (I) of the Act, issud on October 11. The hearing was held from May 22-24, 1978, in Dallas. Texas. All briefs filed have been duly considered. The litigated issues in this case relate to the Respondent's alleged disparate treatment of a returning striker, its delay in reinstating certain strikers upon their unconditional offer to return to work, the status of strike replacements, Respon- dent's refusal to reinstate one striker because of alleged mis- conduct, alleged objectionable conduct of Respondent's agent prior to a Board election, and the validity of chal- All dates are in 1977 unless otherwise indicated. lenges to the ballots of certain strikers and strke replace- ments in the election of August 20. I. FINDINGS OF FA(I AND (CONCLUSIONS OF LAW A. Preliminary Findings and Conclusions The Respondent, a Texas corporation with its plant lo- cated in Carollton, Texas, is engaged in the business of pro- cessing and packaging food and food related products. Re- spondent admits and I find that it is engaged in commerce within the meaning of Sections 2(2), (6), and (7) of the Act. The Petitioner, hereinafter called the Union, is a labor organization within the meaning of Section 2(5) of the Act. B. The Strike of March 20 On February 27 officials of the Respondent including its president, Marcus Rosenberg, and its general manager, Tarland Beauchamp, met with the over-the-road drivers for a "brunch" at the Columbian Country Club. At this meet- ing Respondent was presented with a document listing a number of demands of its drivers for improved working conditions and an increase in pay. Respondent was notified that the employees had come together to form a union that would be known as Arrow Industries Transportation Union. The president of the Union, Bobby D. Richie. was the spokesman for the group of employees at this meeting. The various demands of the Union were discussed at that time. Rosenberg agreed to some of the items. As to other items, Rosenberg indicated that he would need a couple of weeks to think about them. The meeting ended on that note. On Sunday, March 20, the over-the-road drivers struck and established a picket line at Respondent's plant. The strike lasted until April 29 when the strikers uncondition- ally requested reinstatement. C. The Respondent's Operations At its Dallas plant Respondent packages and processes various food and food related items. Food, such as dried beans, rice, and popcorn are bought in bulk in hopper cars ranging in size from 180,000 to 190.000 pounds per car. The food is packaged in plastic bags and delivered by Respon- dent to food chains and customers throughout the United States, generally by truck and trailer. Respondent also re- winds aluminum foil to various lengths of rolls. It produces charcoal lighter fluid and plastic film for various types of produce bags. These items too may be shipped by truck to Respondent's customers. Respondent employs several categories of over-the-road truck drivers. Historically, it has preferred to employ its own perma- nent drivers to drive equipment owned or leased by Re- spondent. At the time of the strike these employees, when driving singly, were paid at the rate of 11-1/4 cents per mile plus an unloading fee. Driving in teams of two, they were paid 18 cents per mile, divided between the lead driver and his codriver, with the former receiving a fraction more than the latter. These employees also received a benefit package, 1379 DECISIONS OF NATIONAL LABOR RELATIONS BOARD which includes insurance, profit-sharing, and medical bene- fits, the total comprising from 20-25 percent of an employ- ee's total cost. Respondent also utilizes owner-operators or "broker" drivers, who haul loads for Respondent one-way with their own equipment. These drivers are hired either individually or through "brokers." In the latter event Respondent pays the broker rather than the individual operator. Generally, such drivers haul only products that are exempt from ICC regulated freight rates. Products of this type are those that have not been processed such as dried beans, rice, and pop- corn. ICC regulations apply if the load comprises more than 5 percent of nonexempt items. Nonexempt items are those that have been processed such as sugar, pepper, foil, and plastic film. The exemption of certain products from ICC regulations permits Respondent to negotiate the cost of transportation more freely. Broker drivers and owner- operators are paid on the basis of hundred weight measure- ments rather than mileage. In addition to the economic ad- vantage of using such drivers for exempt commodities, Re- spondent finds it necessary to use short term temporary drivers because of the peaks and valleys in its business op- erations. However, with respect to nonexempt products, un- der ICC cost structures Respondent can operate its own equipment more economically with its own drivers than outside drivers. The Respondent has also utilized a category of driver known as a "lease" driver. These drivers, employees of a leasing company, provide driving services only. They are hired and processed by the leasing company in compliance with all Department of Transportation (DOT) regulations and report to the Respondent without the necessity for fur- ther processing or examinations. Respondent pays the leas- ing company for the services of the lease drivers on a mile- age basis. Nationwide Driver Service is the leasing company from which Respondent has secured at least 90 percent of its lease drivers. Respondent pays Nationwide 16 cents per mile for a lease driver driving singly. The driver is paid from 10 cents to 12 cents per mile by Nationwide. Lease drivers, driving in teams of two, are paid 15 cents per mile by Nationwide. Nationwide pays for the original phys- ical examination of its lease drivers, social security taxes, workmen's compensation insurance, hospitalization insur- ance and, for some drivers, vacation benefits. As distinguished from owner-operators and broker driv- ers, lease drivers use Respondent's equipment and make backhauls for Respondent with that equipment. They carry the same products and perform the same service for Re- spondent as that performed by Respondent's own perma- nent employees. Outside drivers are used by Respondent on an ad hoc basis. A driver might be utilized for a single load or a num- ber of loads over a period of several months. Such drivers form a labor pool which can be utilized by Respondent to take care of week-to-week problems. A temporary surge in business might result in an increase in loads to be hauled from 50 one week to 70 the next week. There is some sea- sonal fluctuation in Respondent's business. The charcoal season starts in May and runs through August. Demand for beans and rice starts in September and continues through February. The number of multidrops may vary from week to week and results in the use of additional equipment. During the strike Respondent had a problem in obtaining railroad cars, resulting in a greater than usual number of loads of charcoal. The need for additional drivers might result from the increased use of team drivers. Driving dou- ble, these drivers cover more miles with the same piece of equipment. Prior to the strike Respondent owned 23 tractors. Re- spondent also leased four tractors, two of them on a 6- month lease ending in October. Two tractors were leased on a week-to-week basis. In addition. Respondent purchased five more tractors, delivered in October or November. Normally, Respondent does not utilize lease drivers. However, for a time beginning several weeks before the strike of March 20 and continuing until sometime in De- cember, Respondent leased a number of such drivers. Respondent also permits customers to pick up merchan- dise at the plant with their own drivers and equipment. D. The Disparate Treatment of Lee R. Crowley Crowley, an employee of Respondent for I I years, par- ticipated in the March 20 strike and was active in subse- quent picketing activities at Respondent's plant. He and Richie were observed stepping on the running boards of trucks to persuade the drivers not to enter Respondent's plant. Following the April 29 offer of the Union to return the strikers to work Crowley was offered reinstatement and be- gan driving the week ending May 18. Prior to the strike it had been the practice of Respondent to assign tractors on the basis of seniority with the under- standing that the driver would use his tractor for at least two years. However, the newer tractors were licensed for long distances and it is the policy of the Respondent to use new tractors for long distances, such as the East and West Coasts. Crowley preferred shorter runs, such as St. Louis and Denver, Colorado. Seniority was also the basis upon which the drivers were assigned their runs. The senior driv- ers, such as Crowley, were permitted to participate in the selection of runs. Before he became an active striker Crowley had been assigned a new tractor, No. 119. When he returned to work in May he was assigned an older piece of equipment, No. 87. This tractor was badly in need of repairs and on one occasion caught fire. Moreover, Crowley no longer had a say in the selection of his runs. Crowley also noted that his stop appointments were later after the strike than they had been before the strike. The ideal stop appointment is 7. After the strike his stop appointments were 10 o'clock or II o'clock and sometimes as late as 12 o'clock. Crowley com- plained to management through channels. At one point Ro- senberg said the appointments would be run by seniority, but this did not happen at that time. Crowley also believed that he was receiving multiple stops for his loads, which resulted in loss of driving time. Before the strike Crowley believed his stops per load were two or less. However. with respect to this issue, the record shows that for the month of June (rowley had nine runs, of which seven were two stop loads, one was a three stop load, and one was a five stop load. These stops compare favorably to stops assigned to Barnett, an employee senior to Crowley. 1380 ARROW INDUSTRIES, INC. Respondent also had a policy of paying drivers a $15 layover fee if they were delayed for a 24 hour period through no fault of their own. Crowley testified that before the strike he was always paid for his layovers even if he lacked 3 or 4 hours; that there was a special or friendlier atmosphere. After the strike he was paid on some occasions and not paid on others. Beauchamp testified that Crowley was not paid for certain layovers because they did not ex- tend to the 24 hour period. On Friday, July I., Crowley returned from a run and found a note to the effect that his medical card had expired and he was to take a physical examination. Medical cards are normally good for 2 years. Crowley called Joe Thomas, the traffic manager, and told him that something was wrong, that Crowley's medical card was dated December 6, 1976, and was only 6 months old. Thomas told Crowley to call Beauchamp. Beauchamp told Crowley that Beau- champ thought Crowley's card had expired. Crowley pointed out that his card was only 6 months old and Beau- champ said, "Well, you'll have to come in Tuesday and we'll straighten it out." Beauchamp's decision to require Crowley to take a phys- ical examination was made after Beauchamp had discussed with an insurance agent the number of accidents and Re- spondent's liability. On Tuesday, July 5, Crowley met with Beauchamp in the dispatch office. Crowley asked why he had to take another physical examination. Beauchamp said, "You have a haz- ardous condition." Crowley asked what it was, and Beau champ replied, "You, wear a hearing aid." Crowley agreed, but pointed out that Respondent's doctor had prescribed the hearing aid some years ago. However, Beauchamp said, "Well, you're going to have to take a physical before you get back out. I'll set the appointment up." Crowley pro- tested that there had to be a reason for it, that he had never had a ticket or bodily injury driving a truck for the Respon- dent. Nevertheless, Beauchamp insisted the Crowley would have to see Dr. Sikora, Respondent's doctor. Later that afternoon Crowley had a second meeting with Beauchamp in the presence of Rosenberg. At this meeting Crowley informed Beauchamp and Rosenberg that Crow- ley had been instructed by an attorney and the U.S. De- partment of Labor to inform Respondent that Crowley had filed charges with respect to Beauchamp's order that Crow- ley take a physical examination. At the conclusion of the meeting Rosenberg told Crowley that "if they can't do you any good, I'll take this as insubordination and you know what that means." Crowley's formal charges were, in fact, filed with the Board on July 12. On November 25 Beauchamp wrote to Crowley that Re- spondent would again assign him to runs if Crowley could produce written evidence of physical fitness. On November 29 Crowley took a physical examination with Dr. James R. Jeter and was pronounced physically fit. The original ex- amination did not indicate that Crowley wore a hearing aid and Crowley testified that he took it without a hearing aid. However, after a call from Beauchamp, Dr. Jeter corrected his physical certification of Crowley to add the use of a hearing aid. Crowley provided Beauchamp with a copy of the results of the examination and was dispatched several weeks later. Under DOT regulations a motor carrier is not restricted to the Department's minimum requirements for medical ex- aminations of drivers. If it is believed necessary, a motor carrier may impose more stringent or additional require- ments. Beauchamp testified that he became suspicious of Crowley's hearing ability because Crowley required the use of a hearing aid. Beauchamp's suspicions were heightened when Crowley resisted the idea of taking a physical exami- nation. Crowley's medical card prior to the card dated December 6, 1976, is dated April 15, 1974. The medical card of Will Ray, a driver employed by Respondent in 1974 and em- ployed at the time of the March 20 strike, is dated Septem- ber 3, 1974. The medical record of driver Edward Cordero, employed by Respondent from 1970, shows physical exami- nations on January 1, 1977, January 19, 1972, December 22, 1974, and November 13, 1970. Crowley testified that he refused to take a physical ex- amination to be given by Dr. Sikora for two reasons. First, he disliked going to doctors and, second, he had been told by the then dispatcher, Bob Wilson, that Crowley was being set up to be fired. For the first time during his employment with Respon- dent Crowley did not receive a Christmas bonus in 1977. Beauchamp testified that there is no standard policy with respect to Christmas bonuses: that such bonuses are deter- mined by Mark and David Rosenberg. Employees em- ployed for a year are considered. There have been occasions when employees other than Crowley did not receive a Christmas bonus. E. The Refusal To Reinstate Bobby D. Richie As indicated above, Richie was the president of the Union and the chief spokesman for the drivers in negotiat- ing terms and conditions of employment. He began his employment with Respondent on March 5, 1976. Prior to the alleged misconduct in the instant case there is no evidence that Richie engaged in any acts of violence or other misconduct. During the summer of 1976 he was awarded a bonus by Respondent as a result of his good record with respect to shortages and equipment. After the termination of the strike Richie asked officials of Respondent on 4 or 5 occasions about being recalled. On each occasion he was told there were no openings for him. During the summer of 1977 Beauchamp told Richie in a telephone conversation that Richie was no longer needed at Arrow: that there had been some misconduct on his part in the form of mischief or threats. Richie was never officially terminated. Richie's "Employee's Status Change" record shows, as of May 18, that he was "subject to reemployment based on a preferential recall list established by seniority of L. D. Driv- ers." The document, signed by a member of Respondent's personnel department, was approved by Beauchamp. Beau- champ was instructed by Respondent's cocounsel in this case, William R. Keller, to put this notation in the files of all the strikers after the Union's unconditional offer to re- turn to work. Beauchamp specificall3 discussed Richie's case with Keller. Beauchamp told Keller that Respondent was not interested in returning Richie to work and asked Keller's opinion. At that time charges were pending with 1381 DECISIONS OF NATIONAL LABOR RELATIONS BOARD the Board with respect to alleged unlawful conduct of the Union involving Richie. Respondent was also investigating Richie's conduct shortly before the strike in leaving a truck and returning to Dallas, a dischargeable offense. Keller ad- vised Beauchamp that Richie was the president of the Union and Beauchamp should be somewhat careful as to what he did in Richie's case. Keller testified in corrobora- tion of Beauchamp.2 Keller also testified that in the course of his discussions with Board agents he advised them that Richie would not be returned to work. Respondent relies essentially upon three incidents with respect to Richie's alleged misconduct. As to one incident, the evidence adduced by Respondent is hearsay. Three witnesses for Respondent testified to con- versations about a week after the beginning of the strike with strike replacements Darvin Baker or his brother, Arllen. Thomas testified that he was called by one of the Baker brothers and informed that they had been pulled over on Beltline Road by two, three, or four individuals: that these individuals pulled the Baker brothers out of their car and beat them up; that there was a weapon involved; and that one of the individuals otherwise unidentified wore a "Lincoln-like" beard. Beauchamp testified that he was told by Darvin Baker that the Baker brothers had been pulled over by two individuals, one of whom had a "Lin- coln-like" beard; that there was a fight; that one of the individuals threatened the Baker brothers with a gun. Bill R. Cannon, a security official, testified that he was told by one of the Baker brothers that they were stopped by several people maybe three, on Beltline Road, including a man with a "Lincoln-like" beard; that a fight ensued during the course of which one of their interceptors produced a gun; that, to the best of his recollection he was not told that the individual with the "Lincoln-like" beard produced the gun. The record shows that Respondent made a serious effort to obtain the testimony of Darvin and Arllen Baker. How- ever, neither of the Baker brothers testified. Richie wears a "Lincoln-like" beard. Richie denied participating in such an incident and de- nied threatening to shoot a strike replacement. Beauchamp never questioned Richie with regard to this incident. A second incident, alleged by the Respondent as ground for refusing to reinstate Richie, occurred during the week prior to the March 20 strike. Richie and his codriver Earl Butler were dispatched on Sunday, March 13, to Detroit. A Board hearing in relation to the Union's pending petition for an election was scheduled for March 16. Richie did not complete the trip, but left the truck somewhere outside of St. Louis and returned to Dallas early on Tuesday. Butler completed the run to Detroit and returned alone to Dallas. Neither Richie nor Butler reported to Beauchamp that Richie had left the truck en route to Detroit. Richie was paid for the run to Detroit and half of the unloading fee. Some time during that week Beauchamp had a discussion with Richie about the incident. Richie informed Beau- 2 At the close of the heanng Keller offered to testify and did, in fact, testify as to matters relating to Richie's alleged misconduct. Much of this testimony is hearsay and some of it of questionable relevance. I reserved judgment on the receipt of Keller's testimony. Upon further consideration I have decided to, and do, accept his testimony to permit full consideration by me and perhaps others of every possible aspect of Respondent's defense. champ that Richie had returned to Dallas without complet- ing his run so that he could attend the Board hearing. Beau- champ told Richie that the situation was under investigation. Butler was not disciplined for his participa- tion in the incident and was offered reinstatement along with other strikers on October 28. Butler did not inform Beauchamp that Richie had left the truck in St. Louis until a few days before the hearing in this case. A third incident relates to Richie's alleged threat to Verna Henry, the wife of Walt Henry, a strike replacement. Shortly after the commencement of the strike Richie and Will Ray, another striker, observed a Wilco truck, driven by Henry, pulling out of Respondent's plant. Henry drove to his wife's place of employment. Richie and Ray followed. Mrs. Henry had gathered clothes and funds for Ray's trip. The testimony is sharply in conflict as to what ensued. Mrs. Henry was standing by Henry's truck when Richie and Ray arrived. Richie testified that he told Mrs. Henry, "Mrs. Henry, do you know that we're on strike?" And she said, "Yes, I do, but Walt is not a truck driver." And Richie said, "Yes, ma'am, but we are, we're trying to better our- selves. Please don't let Walt leave town." Richie testified that the conversation was friendly, but that Mrs. Henry was distraught at the close of it and crying. Mrs. Henry testified that Richie approached her and said, "Ask your husband not to take this trip." She said, "What are you talking about?" Richie replied, "Tell him he better not take this trip." She said, "Well, why?" Richie said, "Well, because we are on strike." Mrs. Henry re- sponded, "Walt's not on strike, he works in the garage." Richie then said, "This is not just a strike. It's all-out war." Mrs. Henry said, "Well, you know he's not a driver and if he wants to take it he can take it." Richie replied, "Well. I'm telling you to ask him not to take this trip because if you do, it might cause some trouble for you and your chil- dren." Mrs. Henry became frightened because the drivers knew her husband and had some idea where the Henrys lived and knew that they had three children. Henry testified that Richie told Mrs. Henry to tell her husband not to go out of town, that it would mean trouble for her and the family if Henry took the trip. Mrs. Henry filed a charge with the Board with respect to this incident and gave an affidavit to a Board agent (G.C. Exh. 25). The affidavit states, in part, that Richie said, "Well if Walt goes on the run there will be trouble fbr you," but does not mention a threat to her children. Richie is also alleged to have engaged in misconduct dur- ing the picketing activities at Respondent's plant. During the first day of picketing there was considerable excitement at the picket line. The strikers' families were present and there was screaming at trucks and officials. Richie at times called drivers scabs. There is evidence that Richie told a driver that it would be a long, dark trip back home. F. The Failure To Reinstate the Strikers Upon Their Unconditional Offer To Return to Work On April 29 the Union made an unconditional offer to return all strikers to work. The following 16 drivers participated in the strike: 1382 ARROW INDUSTRIES. INC. Wheeler Atkins Dale Kidd Kyle Brammer William Lebo Charlie Bryant Jesse Penn Earl Butler Lonnie Rand Edward Cordero Will Ray Bobby C. Richie Sam Rutledge Lee R. Crowley Joe Waldrop O. E. Kirkland Don Worley Kidd returned to work the week ending April 6, before the end of the strike.3 Crowley returned initially in the week ending May 18. Kirkland returned the week ending May 25 and Lebo the week ending June 6. Ray returned the week ending October 12. On October 18 Respondent offered rein- statement to Rand and Adkins. On October 28 Respondent offered reinstatement to Waldrop, Butler, Penn, Rutledge, Bryant, Cordero, Worley, and Brammer. With respect to Cordero, he had indicated to Respondent previously that he did not wish to return to work until the entire dispute was resolved. Respondent refuses to offer reinstatement to Richie on the ground that he had engaged in misconduct before and during the strike. When the strike commenced on March 20 the Respon- dent's initial need was to get drivers wherever it could so that the trucks could be dispatched. Lease drivers were the quickest and surest source of supply at that time. Although it was possibly cheaper to operate Respondent's equipment during the strike with lease drivers, after a few days Re- spondent's officials determined that they needed a labor force of permanent drivers at least equal to the number they had had before the strike. To secure replacements for the strikers Respondent ad- vertised and contacted several leasing companies, including Nationwide. The latter company was not in the business of providing permanent drivers for other companies. How- ever, Rosenberg called Ben Madill, President of Nation- wide, and the two entered into a verbal agreement whereby Nationwide would act as an employment agency for Re- spondent to recruit, receive applications from drivers, and process them on behalf of Respondent. Respondent agreed to compensate Nationwide with a fee amounting to 5 per- cent of the first year's gross pay of each permanent driver sent by Nationwide to Respondent. Nationwide advertised for drivers through newspaper ads and word of mouth without indicating that the drivers were being hired for Respondent. In addition to hiring new driv- ers Nationwide permitted its own lease drivers to transfer to Respondent, if they so desired. Drivers hired for Respon- dent by Nationwide filled out application forms to which Respondent's name was appended.' Nationwide processed the applicants in accordance with DOT requirements. When the applicants reported to Respondent their medical cards were in order and they had passed written and driving tests and were qualified to drive Respondent's trucks. Gen- erally, these new drivers were interviewed by Beauchamp )G.C. Exh. 5 lists Williams, Barnett, Howe, McKenzie, and Patrick as strikers who returned to work on or before the week ending Apnl 21. How- ever, the complaint does not allege that these employees participated in the strike. 'The parties stipulated that strike replacements, other than those hired through Nationwide, used Respondent's normal application form. or another company official before being dispatched. They were informed that their jobs were permanent jobs and were advised that they would receive the benefits offered by Respondent to all permanent employees. These benefits in- cluded insurance, hospitalization, holidays, and profit shar- ing after the first 90 days of employment. They filled out forms normally filled out by new employees.' They were not given polygraph tests, which Respondent gave all new em- ployees, in view of Nationwide's screening procedures and verification of the driver's character. In December Madill received a check from Respondent for $4,659.69. This check represented the 5 percent fee due Nationwide for its employment service in providing perma- nent drivers to Respondent for the period March 26 through November 19 minus one-half the shortages of lease drivers provided by Nationwide for the months of August, September. and October. The record is somewhat confused with respect to the identification of permanent drivers supplied by Nationwide and lease drivers over the same period. For example, Charles Schwemmer, not listed as a permanent replacement on General Counsel Exhibit, 5, became a permanent re- placement at the same time as Mary Ann Schwemmer on March 24, according to Madill. Don Hurd is listed by Madill as a lease driver for the period from March 28 to October 28. One-half of D. Hurd's shortages were charged by Respondent to Nationwide for the period noted above. But Donald Hurd is listed on General Counsel Exhibit 5 as a permanent replacement beginning on March 26. A driver named "Hurd" is listed as a new hire loss for the week ending April 6. At the time of the strike Respondent had 24 permanent drivers. During the period from March 21 to April I I Re- spondent hired at least 29 and possibly 31 permanent re- placements. Of these all but 6 were supplied Nationwide. During the period from the week ending March 23 to the week ending October 26 Respondent employed from 22 to 32 permanent employees. During this period Respondent offered reinstatement to 4 strikers. Of these, for reasons stated below. Crowley was refused employment from July 5 to about the middle of December. During the period from January 6 to March 17 outside drivers were used by the Respondent to carry 340 loads, an average of 30.90 loads per week. During the same period Respondent used its own permanent employees to carry 375 loads, an average of 34.09 loads per week. With respect to the outside drivers during this period, the record does not show a break-down between owner-operator, broker driv- ers, and lease drivers. During the period from March 24 to December 31 Respondent used outside drivers for 1069 loads, an average of 26.07 loads per week, and its own per- manent employees for 1248 loads, an average of 30.44 loads per week. The record shows that for the period from the week end- ing February 28 to the week ending December 10 Respon- dent utilized 90 lease drivers, some of them for single runs 5 Forms used for the sinking employees when they were first employed by Respondent, such as employee status change, employee withholding exemp- tion certificate, and termination notice were the same forms used by Respon- dent to process employees hired as stnke replacements from March 24 through April II. 1383 DECISIONS OF NATIONAL LABOR RELATIONS BOARD and others for multiple runs. Between the dates of February 28 and December 13 Nationwide billed Respondent for 58 lease drivers, some of them for single runs and others for multiple runs. For the period after April 29, the date the strikers unconditionally offered to return to work, begin- ning with the week ending May 9 to the week ending Octo- ber 28, when all remaining strikers, except Richie, were of- fered reinstatement, Respondent utilized 48 lease drivers, some of them for one or two loads and others to carry loads from week to week over a period of months. At the time of the hearing Respondent employed no lease drivers. Respondent utilized all of its equipment from the time of the strike to the end of the year. G. The Remarks of Joe Berman Berman, a labor relations consultant, met with Rosen- berg and Beauchamp on August 2 and was asked by them to explain to the drivers the procedures involved in the Board election, scheduled for August 20. Berman met with the employees the following Sunday at the Holiday Inn. The meeting lasted less than an hour. Berman showed them a sample ballot and explained how to vote for or against the Union. He then asked for questions. One of his listeners asked if the new drivers would lose their jobs to the old drivers if the Union were voted in. Berman testified that he responded, that he just didn't know, that he had not been involved in a case as complex as Respondent's. Peggy Shaver, a strike replacement, testified that she had asked Berman something to the effect, if the Union is voted in, we'll lose our jobs, won't we? Berman responded, "Well, I really can't say." O. E. Kirkland, a striker, testified that Berman told Shaver, in response to her question, that she would prob- ably lose her job if the Union won the election. However, Kirkland conceded that his memory was not good and. in- consistently, that Berman did not talk about the election; that Berman's remarks were made during the strike be- tween the middle of March and the middle of April. II. ANALYSIS AND FINAL CONCLUSIONS OF LAW A. The Disparate Treatment of Lee B. Crowleiy I find that Respondent engaged in the following disparate treatment of Crowley to discourage union activity following his return to work on May 18, thereby violating Sections 8(aX3) and (I) of the Act. (I) Depriving Crowley of the use of tractor No. 119 to which he had been assigned before the strike on the basis of seniority and requiring him to use an older piece of equip- ment, tractor No. 87. Although the newer tractors were li- censed for long distances and Crowley preferred shorter runs, this situation had existed before as well as after the strike. Before the strike Respondent's policy of seniority took precedence, at least with respect to Crowley, a senior driver with an excellent driving record for more than II years. He was entitled to reinstatement in the same job un- der the same conditions of employment. Obviously, the use of a new tractor rather than a tractor in need of repairs is an important and substantial condition of employment. Nor is the fact that Crowley's tractor had been assigned during the strike to a strike replacement a defense to such disparate treatment. Seniority is a recognized fact of indus- trial life. The junior employee yields to his senior, all other factors being equal, until the former, in turn, earns a fa- vored status. (2) Depriving Crowley of his right. as a senior employee, to "have a say" in the selection of runs, a right he had enjoyed prior to the strike. I make no finding with respect to discrimination as to runs with multiple stops. The record does not show actual discrimination against Crowley in this respect. (3) Applying a strict construction to Respondent's 24- hour layover policy. Prior to the strike this policy had been applied by Respondent in a lenient fashion so that the $15.00 layover fee was paid a driver even if he lacked a few hours to comply with the 24-hour rule. (4) Requiring Crowley to take a new physical examina- tion solely on the ground that Crowley wore a hearing aid, which he had worn for several years. Beauchamp's suspi- cion of Crowley's physical fitness for this reason has a hol- low ring. In the context of Respondent's discriminatory conduct toward Crowley and Crowley's impeccable record as a safe and careful driver it is not believable. Never before had Crowley been required to take physical examinations on a 6-month basis. There is no evidence that any other driver had been subjected to such a requirement and, in- deed, at least one other driver had been permitted to con- tinue driving without complying with the normal 2-year in- tervals between physical examinations. Crowley's own suspicion that he was the object of Respondent's discrimi- nation was enforced by the dispatcher's comment to him that Crowley was being set up for discharge and the implied threat of Rosenberg on the afternoon of July 5 that Crowley would be discharged if his charges against Respondent were not sustainable. I conclude that Respondent's purpose in requiring Crowley to take a new physical examination on July 5 was to harass and intimidate him because of his union and protected concerted activities. (5) Denying Crowley a bonus in 1977 which he had regularly and customarily received prior to the strike. The complaint does not allege this conduct to be an unfair labor practice. Respondent claimed surprise when Crowley testi- fied to this effect on May 23. The General Counsel indi- cated that he would not amend the complaint to include this conduct as a violation of Section 8(a)(3). I would make no finding as to this issue if the matter rested there. How- ever, on May 24 Respondent, with time to investigate and prepare its defense, adduced the testimony of Beauchamp, set forth above. It is Board law that an issue, fully litigated, related to, but not included in the complaint, is before me for resolution. I conclude that the matter was fully litigated and Respondent's defense is without merit. Crowley is an excellent employee with no blemish on his record. Never before had he been denied a bonus. I find that he would have received a bonus in 1977 but for his activity on behalf of the Union and this conduct, like the conduct set forth above. constitutes unlawful discrimination against Crowley. 1384 ARROW INDUSTRIES. INC. B. The Refusal To Reinstate Bohhlv D. Richie It is the position of the General Counsel that Richie did not engage in such serious misconduct as to warrant a de- nial of reinstatement and that, in any event, Respondent's records show that Richie was considered eligible for rein- statement on May 18, well beyond the period of the alleged misconduct. Addressing first the issue of condonation, I find, despite the comment on Richie's May 18 status change form, that Respondent at no time intended to forgive and forget Richie's conduct during this strike. Beauchamp told Keller that Respondent did not want to return Richie to work, but was advised by Keller that the safest legal course was to hold in abeyance disciplinary action against the president of the Union. Keller also advised agents of the Board that Respondent did not intend to reinstate Richie. In these cir- cumstances the mere statement on Richie's status change form that he was subject to reemployment on a seniority basis is insufficient to establish that Respondent, in fact. condoned charges against him of serious misconduct then in the process of investigation. I turn now to the alleged serious misconduct. As to the incident involving the Baker brothers, the evi- dence in the record implicating Richie is hearsay, some of it double hearsay. Even as to such testimony, there are incon- sistencies. The witnesses were told that there were two, three, or four agressors and that one or another of these individuals produced a gun or a weapon of some kind. While they agreed that they were told that a man with a "Lincoln-like" beard was inolved, Beauchamp never ques- tioned Richie as to his involvement. Richie denied engaging in such conduct. Neither he nor any other striker was iden- tified as a participant. I conclude that the evidence is insuf- ficient to find that he did, in fact, engage in the Baker brothers incident or that Respondent had reasonable grounds for so believing. Respondent also relies upon Richie's violation of Com- pany rules in leaving his truck with his codriver enroute to Detroit during the week preceding the strike. Although Richie was scheduled to appear at a Board hearing on March 16, it was error on his part to believe he could make the trip to Detroit and return in time for the hearing. He also engaged in improper conduct by claiming mileage pay for the entire trip to Detroit and half the unloading fee. It was, however, equally improper conduct for his codriver, Butler, to conceal from the dispatcher or Beauchamp that he had driven alone from St. Louis to Detroit. Butler failed to inform Beauchamp of this critical bit of information un- til a few days before the hearing. Yet, so far as the record shows, Butler was not disciplined or even warned with re- spect to his conduct. There is no evidence in this record that Richie had previously engaged in misconduct with respect to his duties as a driver. As indicated above, he received a bonus for his good driving and shortage record. The inci- dent cited above thus appears to be a first offense for Richie. Taking into consideration the above factors, Richie's status as the president of the Union and its most outspoken champion, Respondent's hostility to the Union. as evidenced by its discrimination toward Crowley and other conduct cited below, and the absence of evidence that any other driver was discharged for a similar offense. I find that Respondent would not have refused to reinstate Richie on the basis of the above conduct but for his union and concerted activities. With respect to Richie's conduct on the picket line, cred- iting Respondent's witnesses that Richie told at least one driver it would be a long, dark trip back home, I conclude that his misconduct was not so serious as to justify Respon- dent's denial of reinstatement on this ground. The use by strikers of imprecations, ambiguous threats, shouting, and fist waving is part of the "animal exuberance" that accom- panies a strike. Such misconduct is not so flagrant or egre- gious to require subordination of an employee's right to reinstatement following the termination of a strike. The incident involving the Henrys requires. initially, a resolution of credibility. I do not believe Richie's testimony that he politely and genteely asked Mrs. Henry to tell her husband not to take a run during the strike. Richie's "Lin- coln-like" beard gives him an air of distinction. but not one of saintliness. Mrs. Henry would not have been distraught and crying at the conclusion of their conversation if it had been friendly and without and conceivable threat. On the other hand. I do not credit Mrs. Henry that Richie explic- itly threatened trouble for her children if her husband took the trip. Her affidavit to the Board does not mention a spe- cific threat to her children and surely she would have in- cluded that allegation at that time if such a threat had been made. I find that Richie angrily told Mrs. Henr, during the course of their conversation that the strike was "all-out war" and that he also said, "Well if Walt goes on the run there will be trouble for you." With respect to the statement of Richie that the strike was "all-out war," I conclude that it did not constitute seri- ous misconduct to justify a denial to him of the protection of the Act. In my opinion, however, the threat to Mrs. Henry that there would be trouble for her if her husband took the trip falls into another category. I have considered the threat to Mrs. Henry at some length. In so doing I have considered the personalities in- volved, the fact that the threat was made to Mrs. Henry, not Henry, the fact that the strikers followed Henry to his wife's place of employment, the fact that Mrs. Henry was a nonemployee, that she had children and Richie knew it, that she was a female, and that Richie is a big, forceful male. My impression of Mrs. Henry is that of a highly emo- tional and fearful woman. I recognize that the term "trou- ble" is ambigous, that it was, at most, an isolated threat unaccompanied by an assault other than that which may be implied from Richie's angry tone. Nevertheless. I am per- suaded in the context of this case that it was a threat of a serious nature, which Mrs. Henry could reasonably believe extended not only to her. but to her children. An entirely different inference would be warranted if the threat had been made to Henr, but Richie saw fit to use the added impact of a threat to Henry's wife. Without impugning the equality of the sexes, there are obvious biologic differences between men and women which all must concede and some applaud. A mother of children, confronted b a big, stern- visaged. angry striker, and told that there would be "trouble for her" if her husband took the striker's job, could reason- 1385 DECISIONS OF NATIONAL LABOR RELATIONS BOARD ably suffer extreme concern and fear. The record shows that Mrs. Henry did, in fact, react in that manner. I am cognizant of the Board's and the courts' concern that strikers are entitled to the full protection of the Statute even when their conduct during a strike may be character- ized as minor misconduct which in and if itself cannot be condoned. It may well be that Richie acted impulsively in the heat of economic combat without intending the full consequences of his conduct. The line is sometimes difficult to draw between minor and major strike misconduct. I con- clude however, that Richie's threat to Mrs. Henry falls into the latter category. I therefore find that Respondent did not violate Sections 8(a)(3) and (1) of the Act by failing to reinstate Bobby D. Richie. C. The Refusal To Reinstate the Strikers Upon Their Unconditional Offer To Return to Work As of April 29 only one striker, Kidd, had returned to work. Fourteen other strikers were eligible and available for employment as over-the-road drivers. After April 29 up to October 28 Respondent offered reinstatement to six strikers on various dates. Of these, Crowley's reinstatement was abruptly terminated on July 5 by an unlawful demand that he take a new physical examination. Under long established law the status of a striker as an employee continues until he has obtained "other regular and substantially equivalent employment." He is entitled to full reinstatement when a job for which he is qualified be- comes available. This right can only be defeated if the em- ployer can show "legitimate and substantial business justifi- cation." The Laidlaw Corporation, 171 NLRB 1366 (1968); enfd. 414 F.2d 99 (7th Cir. 1969); N.L.R.B. v. Fleetwood Trailer Company, Inc., 389 U.S. 375 (1967); Brooks Re- search & Manufacturing, Inc., 202 NLRB 634 (1973). Respondent began hiring permanent replacements for the strikers within a few days after the strike began and continued to hire such replacement until April II, the day before the end of the eligibility period for the August 20 Board election. Respondent hired such replacements, as in- dicated above, primarily through Nationwide, a leasing company not normally engaged in the business of providing permanent drivers for other carriers. The General Counsel argues that these replacements were not, in fact, permanent replacements, although he concedes that six replacements, hired through other sources, including leasing companies, were permanent re- placements. The issue has given me some concern. The facts are fully set forth above and will not be repeated here. The law is clear that an employer has a right to perma- nently replace economic strikers. This rule is bottomed on the proposition that an employer has a right to continue his business and may find it difficult, if not impossible, to hire competent temporary employees during the course of a strike. In the instant case, however, it was at the Respon- dent's insistence, not that of the employees, that they be- came permanent. They were not hired from Respondent's normal source of employees; nor were they processed by Respondent in the normal manner. Nevertheless, all of the employees so hired were told that their jobs were perma- nent and they were given all of the benefits normally given to permanent employees. I see no substantial distinction between the drivers hired through Nationwide as perma- nent employees and those hired through other leasing com- panies. Another question would be presented if the evi- dence were sufficient to warrant the conclusion that Respondent, rather than using lease drivers on a temporary basis, hired permanent replacements for the purpose of punishing the strikers and defeating the Union in the forth- coming election. While the evidence in this case is some- what suspicious, it is not enough to warrant such a conclu- sion. Respondent is entitled to the exercise of its own business judgment that permanent drivers, subject to its own direct control, are preferable to lease drivers in piloting and caring for Respondent's expensive equipment and car- go. Accordingly, I find, contrary to the General Counsel, that drivers hired as permanent replacements through Na- tionwide and other sources were, in fact, permanent re- placements for the strikers. I nevertheless conclude that jobs for which the strikers were qualified were available on and after April 29 and that Respondent has not shown legitimate and substantial busi- ness justification in denying the strikers preferential treat- ment in filling such jobs. Respondent has thereby violated Sections 8(a)(3) and (1) of the Act. Defending its failure to recall the strikers in a timely fash- ion, Respondent argues that it did not need additional per- manent employees at times when the strikers were not, in fact, recalled to work. Respondent points to statistics show- ing a decline in loads of 13 percent for the period March 24 to December 31 as compared to the pre-strike period of January 6 to March 17. During this period Respondent maintained the same relative balance between "Outside Drivers" and Arrow drivers. This defense has no merit. His- torically, outside drivers were owner-operators or broker drivers, who used their own equipment rather than Respon- dent's and were paid on a hundred-weight basis rather than mileage. The record shows that lease drivers, who drove Respondent's equipment and were paid on a mileage basis, as were the permanent employees, were not used by Re- spondent until several weeks prior to the strike, during the strike, and during the critical period of election eligibility after the strike. No lease drivers were employed by Respon- dent at the time of the hearing. Nor is there merit to Respondent's defense that lease drivers were preferable to the strikers after April 29 because of the peaks and valleys in Respondent's business and the comparable cost. Lease drivers and permanent employees carry the same cargo, use the same equipment, perform the same duties, and are paid on a mileage basis. Permanent employees receive about 11 to 12 cents per mile with a benefit package of 20 percent to 25 percent more. The cost to Respondent of a lease driver is 16 cents per mile, a rough equivalence. Dispositive of the issue, however, is the Re- spondent's time-tested business judgment that permanent employees are preferable to lease drivers in driving Respon- dent's equipment and handling its cargo. I have, above, given preponderant weight to this judgment in rejecting the General Counsel's contention that the strike replacements hastily hired by the Respondent after the strike were not bona fide permanent replacements. The Respondent cannot have it both ways. If Respondent preferred to replace the 1386 ARROW INDUSTRIES, INC. strikers with permanent replacements when lease drivers were easily available it cannot argue with persuasive logic that lease drivers were preferable to its own permanent em- ployees when the latter unconditionally applied for rein- statement on April 29. The record shows that lease drivers made 15 trips in May and 15 in June. In July they made 35 trips. In August they made 41 trips. In September they made 43 trips. In October they made 58 trips. For the month of June the average number of trips made by Respondent's permanent drivers. driving singly or in teams of two, was 5.32. Thus, for the month of June there were two or three available jobs which the strikers were qualified to perform. Jobs were available in May and in the months after June up to and including October. Under the cases cited above the strikers were enti- tled to be recalled to these jobs and no legitimate and sub- stantial business justification has been shown by the Re- spondent in failing to do so. D. The Alleged 8(a)(1) Conduct I find that Respondent violated Section 8(a)(1) of the Act by Marcus Rosenberg's comment to Crowley on the after- noon of July 5, referring to Crowley's statement that he had filed charges against the Respondent, that "if they can't do you any good, I'll take this as insubordination and you know what that means." Crowley could reasonably inter- pret Rosenberg's statement as a threat of discharge in the event the Board failed to issue a complaint on his charges. I find that the Respondent did not violate Section 8(a)(1) with respect to the comments made by Berman to Respon- dent's employees prior to the election of August 20. Kirk- land, the only witness to testify that Berman said a strike replacement would lose her job if the Union won the elec- tion, appeared to be confused and conceded that his mem- ory was not good. I credit Berman and Silver, both of whom testified that Berman responded to a question of this nature by saying that he did not know. E. Ancillary Findings The unfair labor practices found above are unfair labor practices within the meaning of Sections 2(6) and (7) of the Act. I make no finding with respect to Joe Waldrop as no evidence was presented that he was unlawfully denied rein- statement, as alleged in the amended complaint. F. Objections to the Election and Challenged Ballots The objections allege the Respondent interfered with the election of August 20 by Berman's comments to the em- ployees prior to the election; Respondent's discriminatory treatment of Crowley: Respondent's method in recalling strikers following their unconditional offer to return to work. In view of my conclusion with respect to Berman's comments, I find that objection without merit. In view of my conclusions with respect to the latter objections, they are sustained. The appropriate unit is: All over-the-road truck drivers employed at Arrow In- dustries. Inc.. Carollton, Texas, plant; excluding all other employees, office clerical employees, dispatchers, shop personnel, local delivery drivers, guards, watch- men, and supervisors as defined in the Act. Respondent challenged the ballots of Wheeler Atkins, Kyle Brammer, Charles Bryant, Edward Cordero. Lee Crowley, William Lebo. Lonnie Rand. Will Ray. Bobbie Richie, and Donnie Worley. In view of my conclusions with respect to Lee Crowley, the challenge to his ballot is overruled In view of my conclusions with respect to Bobbie D. Richie. the challenge to his ballot is sustained, but only on the ground that his misconduct disqualifies him for rein- statement. With respect to the challenges to the ballots of the re- maining eight above-named employees, these challenges are overruled. Respondent's reliance upon the decisions in The Martin Bros. Container & Timber Products Corp., 127 NLRB 1086 (1960) and Wagner Electric Corp., 127 NLRB 1082 (1960) is misplaced. Those decisions have been overruled implicitly. L.E.M., Inc.. d/b/a Southwest Engraving Co. and Towell Printing Co., 198 NLRB 694, 696, 704-705 (1972). See. also, C. H. Guenther & Son, Inc., d/b/a Pioneer Flour Mills, 174 NLRB 1202 (1969), enfd. 427 F.2d 983 (5th Cir. 1970). De- spite the termination of a strike, strikers who have uncondi- tionally requested reinstatement remain members of the unit until they have obtained other regular and substan- tially equivalent employment and under Section 9(c)(3) are entitled to vote in a Board election within the 12-month period from the beginning of the strike. Ibid. The Petitioner challenged the ballots of Hubert Allen, Charles R. Anderson, David Beard, Gene Croker, Nancy Doephe, Jimmie Hill, Gerald Hopper, Tommie Light, Wayne Roth, Wendolyn Roth, Charles Schwemmer, Mary Ann Schwemmer. Milford Shaver, Peggy Shaver, Lucille Varner, Russell Varner, and Richard Zafavaro. I make no finding with respect to the challenges to the ballot of Charles Schwemmer since the record is unclear with respect to his status as a permanent replacement. With respect to the challenges to the ballots of the re- maining above-named employees, those challenges are over- ruled in view of my conclusion that they were permanent replacements for the strikers. [Recommended Order omitted from publication.] 1387 Copy with citationCopy as parenthetical citation