Avondale MillsDownload PDFNational Labor Relations Board - Board DecisionsMar 20, 1956115 N.L.R.B. 840 (N.L.R.B. 1956) Copy Citation 840 DECISIONS OF NATIONAL LABOR RELATIONS BOARD For the foregoing reasons, we find that the General Electric X-Ray rule should not be applied to this case, and therefore that the contract is a bar. Accordingly, we shall dismiss the petition. [The Board dismissed the petition.] Avondale Mills and Textile Workers Union of America , AFL- CIO.' Cases Nos. 10-CA-f200 and 10-CA-;2274. March 20,1956 DECISION AND ORDER On October 28, 1955, Trial Examiner John C. Fischer issued his Intermediate Report in the above-entitled proceeding, finding that the Respondent had engaged in and was engaging in certain unfair labor practices and recommending that it cease and desist therefrom and take certain affirmative action, as set forth in the copy of the Inter- mediate Report attached hereto. The Trial Examiner also found that the Respondent had not engaged in certain other unfair =labor practices and recommended that the complaint be dismissed with re- spect to such allegations. Thereafter, the General Counsel filed exceptions to the Intermediate Report and a supporting brief. The Respondent filed a brief in support of the Intermediate Report. The Board has reviewed the rulings of the Trial Examiner ,made at the hearing and finds that no prejudicial error was committed. The rulings are hereby affirmed. The Board has considered the Inter- mediate Report, the exceptions and briefs, and the entire record in the case, and hereby adopts his findings, conclusions, and 'recom- mendations only to the extent consistent with our Decision and `Order herein. 1. The Trial Examiner found that the Respondent violated Sec- tion 8 (a) (1) of the Act by interrogating employees concerning their union membership, views, and activities; threatening them with loss of benefits, loss of employment, and a plant shutdown, if the Union organized its mills; and soliciting employees to withdraw from the. Union. No exceptions to these findings have been filed and we adopt these findings. 2. The Trial Examiner also found that the General Counsel f ailed to prove that the Respondent, in violation of Section 8 (a) (1) of the Act, promulgated and enforced a no-union-solicitation rule for discriminatory reasons . He therefore concluded that the discharge of employees Jones, Rich, and Parker for violating this-rule was pro- tected. We do not agree with these findings. 1 As the AFL and CIO merged after the hearing in this case, we are taking notice of the merger and amending the designation of the Charging Party accordingly. 115 NLRB No. 130. AVONDALE MILLS 841 As indicated in the Intermediate Report, the so-called rule in ques- tion was actually a warning that the Respondent read to a number of individual employees who the Trial Examiner found were suspected of soliciting union membership in the mills during working hours. The warning stated that: "It has come to our attention that you are attempting to solicit union membership in this plant during working hours, while the employees that you are attempting to solicit are at work. This is a violation of plant rules and any further instances of this sort will result in prompt dismissal." Although the Respondent contends that the warning reiterated a long-standing rule,l every em- ployee witness who testified on the subject, with one possible excep- tion, denied knowledge of such a rule. The only exception was an employee (McCain) called by the Respondent as a witness who testi- fied generally that he heard it was against company rules to solicit on the job.' But whether these warnings served to revive an unwrit- ten, dormant plant rule or amoiintecl to a promulgation of a new rule is not particularly important for, in either event, we find persuasive evidence in the record that the Respondent promulgated or invoked the rule for the purpose of interfering with and coercing- employees in the exercise of their legitimate self-organizational rights. It is settled law that a rule prohibiting union solicitation during working hours is valid provided it is not promulgated or utilized in order to prevent or impede the organization of its employees.' In the present case, such a discriminatory purpose is revealed in the Trial Examiner's factual findings and the evidence in the record. Thus, instead of generally publicizing its newly adopted or revived rule to employees, as one would expect of an employer solely con- cerned with plant production and efficiency, the Respondent at the very inception of the Union's membership drive singled out a number of employees ostensibly suspected of engaging in union solicitation during working hours to be warned against a repetition of the re- ported offense. Apparently, antiunion solicitation was not made an offense. It is significant that most of the employees given the warning denied engaging in the alleged prohibited conduct and no testimony contradicting these denials was offered. Further reflecting on the Respondent's iuotives is the fact that at the time the individual employees were warned against union solicita- 2Although reveal supeivisors simply indicated in then testimony that the waining reflected company policy, only one of them, Fomeninn Gunter, testified that lie knew of the rule since lie began working for the Respondent ahout 14 years ago However, Gunton also testified that he had never seen "a witten rule. but it is an nnfenied rule" ,'When asked on cross-examination. "You understood that the mill was against the Union 9" this witness also replied , "Absolutely ' 4 Peyton Pack ing Compan:l, Inc, 49 NLRL' 828. 843, entd 142 F. 2d 1009, 1010 (C A 5) ; Standard-Coosa-Thatcher Companaj, 85 NLRB 1358, 1364-5; Cullman Slechic Cooperatw -wc, 99 NLRB 753, 754, Delta Punishing Company ( Dt ismmn of J P . Steve ns cE Co...Fnd ); 111 NLRB 659, 661-662; See also Republic Aaiation Corp v N L P 13, 324 U S 793, 803 -805, citing with approval the pi inciple of the Peyton case 842 DECISIONS OF NATIONAL LABOR RELATIONS BOARD tion, one employee, Fitzsimmons, was also warned by Superintendent Pasley that the plant would shut down if the Union succeeded in organizing it; another employee, Epperson, was advised by Pasley about other plants closing down ; and a third employee, Rich, one of the dischargees, was requested by Foreman Gunter not to distribute cards outside the plant. In addition, a few days after Foreman Phurrough read the no-solicitation warning to Jones, another dis- charges, Phurrough sent Cleghorn, a personnel clerk, to persuade Jones to quit his union activities 5 and, as will be shown below, thereafter laid off Jones allegedly for ignoring the warning.under circumstances indicating discriminatory motivation. That the Respondent was prompted to invoke the no- solicitation rule by a desire to prevent unionization of its employees rather than by consideration of plant production and efficiency, as the Respondent urges , is also indicated by the fact that talking on a variety of subjects was permitted in the plant.' This included union discussions in which both employees and supervisors participated.' Indeed, supervisors utilized these and other occasions during working hours to make threats of reprisals and to interrogate employees concerning their union membership and sympathies, which conduct the Trial Examiner -found violated Section 8 (a) (1) of the Act.' Finally, there is no concrete evidence in the record showing the extent, if any, that pro- duction was impaired by union solicitation. - Viewing the foregoing evidence in the light of the Respondent's other unfair labor practices, we are convinced that the Respondent in- voked its so-called no-solicitation rule as a device to defeat its em- ployees' self-organizational efforts. Accordingly, we find, contrary to the Trial Examiner, that the Respondent thereby violated Section G The Trial Examiner is in error in concluding that the purpose of Cleghorn's mission was "to get Jones , although an ardent union exponent , to desist from his union activity within the plant and thus save his job" [Emphasis added.] Neither the testimony of Jones , a credited witness, nor of Cleghorn , which substantially corroborates Jones' testi- mony. indicates that Cleghorn asked Jones to stop his union activity in the plant, much less, dui sag working hours Moreover, although not mentioned in the Intermediate Report, Jones quoted Cleghorn as telling him that mills in a number of cities had shut down because of the Union . that people were going hungry and barefooted , that "If this mill goes union, we certainly will shut it down as we will not operate under a union contract" , that lie could do whatever lie pleased but Phurrough liked Jones' wife and "he wants you to stop working for the union " Cleghorn, a witness for the Respondent, testified that the foreman had told him to "try to keep [Jones] out of this union, try to get hum straightened out there on the union, how- ever Avondale Mills felt about it"; that he spoke to Jones and asked him how he liked the Union and when Jones replied that lie did, asked hiin whether he knew how Avondale Mills felt about it; and that lie told Jones about other mills shutting down 6The Respondent has no scheduled lunch or lest periods and employees customarily talk, have lunch, and go to the restrooms when their work permits 7 Oddly enough, the line between union solicitation which the Respondent prohibited and union discussion which prevailed in the plant was not otherwise clarified by the Respondent 8 The Board's decision in Nutone, Incorporated, 112 NLRB 1153, does not preclude ieliance on the antiunion conduct of the Respondent 's supervisors as evidence of discriui- inatory motivation underlying the adoption of ievival of the no-union-solicitation rule. AVONDALE MILLS 843 8 (a) (1) of the Act.' As Jones, Rich, and Parker were laid off and ultimately discharged for violating this rule, we find that the Re- spondent discriminated against them within the meaning of Section 8 (a) (3) and (1) of the Act. Even assuming the existence of a valid rule, we nevertheless find that at least Jones' discharge was discriminatory. As discussed in the Intermediate Report, Jones joined the Union and began soliciting employees during working hours, among other times. Thereupon, Foreman Phurrough summoned Jones to the office. After informing 'him that he was reported "working for the Union," Phurrough read the warning against solicitation during working hours. Jones, like the other employees, was unaware of any rule prohibiting this con- duct. A few days later Cleghorn, a personnel clerk and relative of Jones, advised Jones at his job that Foreman Phurrough had requested him to speak to Jones about the latter's union activity and to tell him that Phurrough wanted him to stop working for the Union. During the same shift, employee Nicholson came to Jones' job and asked him for a union card to sign. Jones told Nicholson that he had been warned about giving out cards on the job but that he would get him one and give it to him outside the plant gate the following morning. As it happened, employee Dupree got a card out of Jones' car and gave it to Nicholson outside the mill.10 Thereafter, Nicholson gave the card to Foreman Phurrough who testified at the hearing that Nichol- son told him that he had gotten the card from Dupree outside the mill.il Phurrough then called Jones into the office and laid him off for soliciting in disregard of his earlier warning. Jones denied solicit- ing on the job and asked Phurrough whom could he see to prove that he did not solicit on the job since he was warned. Phurrough replied that he did not know. Later at his machine, Jones asked Phurrough a similar question and Phurrough replied that he did not know but added that he could see the union organizer. After his layoff, Jones saw Superintendent Callaway for his ac- crued pay. Callaway asked him what did the Union promise him, whether it had shown him a contract of any kind, whether he had heard about mills shutting down and people going hungry and bare- 9 Delta Fuushvig Company (Division of J P Stevens it Co, Inc ), 111 NLRB 659. 661- 662,Cullman Electiic Cooperative , 99 NLRB 753 , 754, Standard- Coosa-Thatcher Company, 85 NLRB 1358, 1364-5. Nutone, Incwporated, 112 NLRB 1153; Deena Products Com- pany, 93 NLRB 549, and other cases relied upon by the Respondent are not applicable Nothing in those cases precludes finding that a plant rule which is discriminatorily adopted or invoked violates the Act 11 There is testimony in the record by Dupree, a credited witness, which is not alluded to in the Intermediate Report, that Nicholson also asked him for a card in the mill 11 Phurrough also testified that Nicholson told him that Jones and Dupree were "worry- ing" him on the job and that "he was disgusted with the thing and he was going to give it [the card] to me and get rid of it " Phurrough also testified that Nicholson (lid not give him any other details nor did he ask for any. 844 DECISIONS OF NATIONAL LABOR RELATIONS BOARD footed.12 Thereafter, Jones appealed his layoff, in the course of which he was interviewed by ranking officials. General Superintendent Turner asked him what made him work for the Union, and told him about people in another city who got "involved in the same type, of business and the families were separated from each other" and that "he just couldn't see what would make a boy come from a good family like [he] did want to work for such a mess as the Union." Similar statements were attributed to the Respondent's President Smith. We are convinced-by the foregoing evidence, more particularly, the Respondent's efforts to persuade Jones to cease his union activities, the summary nature of his layoff and discharge without giving him an opportunity to prove that he did not violate the rule, the fact that he did not engage in the prohibited solicitation,13 the statements made to Jones by ranking company officials, the Respondent's hostility to the Union as well- as its other unfair labor practices, that it was Jones' adherence to the Union rather than his asserted disregard of a prior warning that motivated the Respondent in laying off and then dis- charging Jones. Accordingly, we find, contrary to the Trial Examiner, that, apart from the question of the validity of the no-solicitation rule, the Respondent discriminated against Jones in violation of Section 8 (a) (3) and (1) of the Act. THE REMEDY Having found that the Respondent has engaged in and is engaging in unfair labor practices in violation of Section 8 (a) (1) and (3) of the Act, we shall order it to cease and desist from its unlawful conduct and take affirmative action necessary to effectuate the policies of the Act. We have found that the Respondent discriminatorily discharged James M. Jones, John Rich, and Calvin W. Parker. Accordingly, we shall order the Respondent to offer these employees full and immediate reinstatement to their former or substantially equivalent positions,14 without prejudice to their seniority or other rights and privileges, and to make them whole for any loss of pay they may have suffered by reason of their discharge by payment to each of them a sum of money equivalent to the amount each normally would have earned as wages from the date of his respective layoff to the date of the Intermediate Report and front the date of this Decision and Order to the date of the 2Although not mentioned in the Intermediate Report, Jones, a credited witness, gave the rest of the conversation to the effect that, after arguing with Callaway that the em- ployees were overloaded with woik, although he himself was satisfied with the job, Calla- way replied, "well, why don't you let other people do what they want to do and you do what you want to do, don't go around trying to get them to sign the union cards." 19 The Tnal Examiner's conclusion that Jones "violated the spirit and the letter of the rule by soliciting after being warned" is contrary to the Trial Examiner' s other findings and the evidence in the record ?*Chase--National Bank of the City of Ne-u Yoib, San Juan, Puerto Rico, Branch, 65 i LR1# 827,' $29 AVONDALE MILLS 84-5 offer of reinstatement , less his net earnings 15 during these periods. Loss of pay shall be computed in accordance with the formula pre- scribed in F. W. Woolworth Company, 90 NLRB 289, 291-294. We shall further order the Respondent to cease and desist from in any other manner infringing upon its employees ' rights guaranteed in Section 7 of the Act. We find that such an order is necessary to satisfy the remedial objectives of the Act because the Respondent's unf ,ir'labor practices -reveal an attitude of opposition to the purposes of the Act.1° ORDER Upon the entire record in the case, and pursuant to Section 10 (c) of the National Labor Relations Act, as amended, the National Labor Relations Board hereby orders that the Respondent, Avondale Mills, Sylacauga, Alabama, its officers, agents, successors, and assigns, shall : 1. Cease and desist from : (a) Discouraging membership in Textile Workers Union of Amer- ica, AFL-CIO, or in any other labor organization of its employees, by discharging its employees or in any other manner discriminating against them in regard to their hire or tenure of employment or, any term or condition of employment, except to the extent permitted by Section 8 (a) (3) of the Act. (b) Interrogating its employees concerning their union member- ship, views, or activities in a manner constituting interference, re- straint, or coercion in violation of Section 8 (a) (1) of the Act; threat- ening employees with loss of employment, loss of benefits, or a plant shutdown, if Textile Workers Union of America, AFL-CIO, organ- ized its plant; soliciting employees to withdraw, their membership from the said-Union; and discriminatorily promulgating, reviving, or enforcing a plant rule against union solicitation during working time for the purpose of impeding the self-organizational efforts of its employees. (c) In any other manner interfering with, restraining, or coercing its employees in the exercise of their right to self-organization, to form labor organizations, to join or assist Textile Workers Union of America, AFL-CIO, or any other labor organization, to bargain col- lectively through representatives of their own choosing, and to engage in concerted activities for the purpose of collective bargaining or other mutual aid or protection, or to refrain from any or all such activities, except to the extent that such right may be affected by an agreement requiring membership in a labor organization as a condition of em- ployment, as authorized in Section 8 (a) (3) of the Act. 2. Take the following affirmative action which the Board finds will effectuate the policies of the Act : ' fa 36 Crossett Lippn ber Coi4anr, 8 NLRB 440. w N. L. R . B. v. Entwistle Mfg. Co., 120 F : 2d 532 , 536 (C. A. 4). 846 DECISIONS OF NATIONAL LABOR RELATIONS BOARD (a) Offer James M. Jones, John Rich, and Calvin W. Parker full and immediate reinstatement to their former or substantially equiva-. lent positions, without prejudice to their seniority or other rights and privileges, and make them whole for any loss of pay they may have suffered as a result of the discrimination, in the manner set forth in, the section of this Decision and Order entitled "The Remedy." (b) Preserve and make available to the Board or its agents upon, request, for, examination and copying, all payroll records, social security payment records, timecards, personnel records and reports, and all other records necessary to analyze the amounts of back pay due and the rights of employment under the terms of this Order. (c) Post at its plants and offices at Sylacauga, Alabama, copies of- the notice attached hereto marked "Appendix." 17 Copies of said no- tice, to be furnished by the'Regional Director for the Tenth Region,- shall, after being duly signed by the Respondent's representative, be posted by it immediately upon receipt thereof, and maintained by it for sixty (60) consecutive days thereafter in conspicuous places, in- cluding ,all places where notices to employees are customarily posted. Reasonable steps shall be taken by the Respondent to insure that such notices are not altered, defaced, or covered by any other material. (d) Notify the Regional Director for the Tenth Region in writing, within ten (10) days from the date of this Order, as to what steps it has taken to comply herewith. MEMBER RODGERS took no part in the consideration of the above De- cision and Order. 14 In the event this 01 del is enfoicod by a decree of the United States Court of Appeals, there shall be substituted for the voids "1'uisuant to a Decision and Order" the words "Pursuant to a Decree of the United States Court of Appeals, Enforcing an Older ' APPENDIX NOTICE To ALL E^iIi'i .oy iti:s Pursuant to a Decision and Order of the National Labor Relations Board, and in order to effectuate the policies of the National Labor Relations Act, as amended, notice is hereby given that: IVr WILL NOT discourage membership in Textile Workers Union of America, AFL-CIO, or in any other labor organization of our employees, by discharging any employees or in any other manner discriminating against then in regard to their hire or tenure of employment or any term or condition of employment, except to the extent permitted by Section 8 (a) (3) of the Act. WE WILL NOT interrogate our employees concerning their union membership, views, or activities in a manner constituting inter- ference, restraint, or coercion in violation of Section 8 (a) (1) of the Act; threaten our employees with loss of employment, loss. AVONDALE MILLS 847 of benefits, or with a plant shutdown, if Textile Workers Union of America, AFL-CIO, organized our plant; solicit employees to withdraw their membership from the said Union; and discrimina- torily promulgate, revive, or enforce a plant rule against solicita- tion during working time for the purpose of impeding the self- organizational efforts of our employees. WE WILL NOT in any other manner interfere with, restrain, or coerce employees in the exercise of their right to self-organization, to form labor organizations, to join or assist the above-named labor organization, or any other labor organization, to bargain collectively through representatives of their own choosing, or to engage in concerted activities for the purpose of collective bar- gaining or other mutual aid or protection, or to refrain from any or all of such activities, except to the extent that such right may be affected by an agreement requiring membership in a labor or- ganization as a condition of employment, as authorized in Section 8 (a) (3) of the Act. WE WILL offer James M. Jones, John Rich, and Calvin W. Parker full and immediate reinstatement to their former or sub- stantially equivalent positions, without prejudice to any seniority or other rights and privileges previously enjoyed, and make them whole for any loss of pay suffered as a result of the discrimination against them, in the manner set forth in "The Remedy" section of the Board 's Decision. All our employees are free to become, remain, or to refrain from becoming or remaining, members of Textile Workers Union of Amer- ica, AFL-CIO, or any other labor organization, except to the extent that this right may be affected by an agreement authorized by Section 8 (a) (3) of the Act. AVONDALE MILLS, Employer. Dated--------------- By------------------------------------- (Representative ) ( Title) This notice must remain posted for 60 days from the date hereof, and must not be altered, defaced, or covered by any other material. INTERMEDIATE REPORT STATEMENT OF THE CASE These proceedings , brought under Section 10 (b) of the National Labor Relations Act, as amended ( 61 Stat. 136 ), herein called the Act, and consolidated by order of the General Counsel of the National Labor Relations Board , i were heard in Sylacauga, Alabama, on June 8 and 9, 1955, pursuant to due notice. Upon charges filed by the Union the General Counsel issued complaints alleging that the Respondent had en- 'The General Counsel and his representative at the hearing are referred to herein as the General Counsel and the National Labor Relations Board as the Board Avondale Mills is refcu od to hel«,m as Company of Avondale and Textile Workeis'Union of America, CIO, as the Union 848 DECISIONS OF NATIONAL LABOR RELATIONS BOARD gaged in unfair labor practices within the meaning of Section 8 ( a) (1) and (3) and Section 2 (6) and (7) of the Act. More specifically, the complaints alleged that the Company violated Section 8 (a) (1) and (3) by discharging four employees, and additionally violated Section 8 (a) (1) by interrogating employees concerning their union membership and activities, and announced and invoked a rule which pro- hibited solicitation on behalf of the Union during working hours on the Respondent's property for the purpose of discouraging its employees from becoming or remaining members of or engaging in activity on behalf of the Union. The Respondent in its duly filed answers denied generally the commission of unfair labor practices, and affirmatively pleaded that Respondent has had in effect in its plant for many.years a rule which prohibits solicitation of union membership by employees who are at-work, or of employees who are at work during working hours, and that the persons suspended and subsequently discharged were so discharged for violation of company rules. At the hearing, before the duly designated Trial Examiner, General Counsel and Respondent were represented at the hearing by counsel. Full opportunity was afforded all parties to examine and cross -examine witnesses , to represent oral argument at the close of the hearing, and thereafter to file briefs as well as proposed findings of fact and conclusions of law. At the conclusion of the hearing, decision was reserved on Respondent's motion to dismiss the allegations of the complaint for insufficiency of proof. That motion is now disposed of in accordance with the findings of fact and conclusions of law made below. Motion to amend the formal pleadings so as to con- form to the proof as to spelling of names and dates where not of substance was granted. Other motions upon which rulings were reserved are disposed of hereafter. Upon the entire record in the case, and from my observation of the witnesses, I make the following: FINDINGS OF FACT 1. THE BUSINESS OF THE RESPONDENT The Respondent is, and has been at all times material herein, a corporation duly organized under and existing by virtue of the laws of the State of Alabama, maintain- ing its principal office and place of business at Sylacauga, Alabama, with offices, places of business, and manufacturing plants at Pell City, Sylacauga, Birmingham, Sycamore, Alexander City, Stevenson, and Lafayette, Alabama, where it is now and has been continuously engaged in the manufacture, sale, and distribution of cotton and rayon cloth, yarn, and related products. The plants of the Respondent involved in this pro- ceeding are located at Sylacauga, Alabama. The Respondent, in course and conduct of its business operations, during the past 12 months, which period is representative of all times material herein, sold and shipped from its Sylacauga, Alabama, plants to customers located outside the State of Alabama, finished products valued at more than $1,000,000. II. THE LABOR ORGANIZATION INVOLVED Textile Workers Union of America, affiliated with the Congress of Industrial Organizations , is a labor organization within the meaning of Section 2 (5) of the National Labor Relations Act. III. THE ALLEGED UNFAIR LABOR PRACTICES A. Allegations of complaint detailed In further explication of the consolidated complaints, the complaint in Case No. 10-CA-2200 which was issued April 26, 1955, by John C. Getreu, Regional Director of the Tenth Region' at Atlanta, Georgia, charged that the Company, during the month of November 1954, announced to some of its employees at the Sylacauga plant a rule which prohibited solicitation on behalf of the Union during working hours on Re- spondent's property and applied said rule in order to prohibit solicitation on behalf of the Union during rest or other nonwork periods and in nonworking areas, and that the Respondent, by and through its officers, agents, and supervisors reprimanded em- ployees for alleged violation of the rule. Supervisors charged with unfair labor prac- tices and dates are as follows: F. M. Pickren, November 16 and 17; French Gunter, November 12 and 18; James Phurrough, November 11, 16, and 19; and J. H. Pasley, November 15 and 16. The complaint also alleged that the Company announced the rule and reprimanded employees for the purpose of discouraging its employees from becoming or remaining members of or engaging in activity on behalf of the Union; and suspended and subsequently discharged for alleged violations of the rule - the fol- lowing employees: Calvin W. Parker, November 17; John T. Rich, Novembers 17; James M. Jones, November 19. The complaint alleged that the Company suspended and discharged the aforesaid Parker, Rich, and Jones because of their membership in AVONDALE MILLS 849 and activity on behalf of the Union, and in order to discourage its employees from becoming or remaining members of or from engaging in activities on behalf of the Union. The complaint further alleged that the Company, by and through its officers, agents, and supervisors , whose names are set forth below, on or about the dates shown opposite their respective names, interrogated its employees concerning their union membership, sympathies, and activities: George P. Callaway, November 18 and 19, 1954; Nathan Forbus, November 11, 15, 16, and 22, 1954; Vernon Brooks, November 16, 19, and 22, and December 1; Homer Cabiness, November 15 and 19 and December 2 and 10. The complaint further alleged that the Company, by and through its offi- cers, agents, and supervisors whose names are shown below, and on or about the date or dates shown opposite their respective names, threatened its employees with loss of various employee benefits if a majority of its employees authorized the Union to repre- sent them: Vernon Brooks, November 16, 22, 29, and 30; J. H. Pasley, November 15; Nathan Forbus, November 22. The complaint further alleged that the Company, by and through its officers, agents, and supervisors whose names are shown below, and on or about the date or dates shown opposite their respective names, threatened its employees with loss of employment, that the Company would close its Sylacauga, Alabama, mill, and threatened other economic reprisals, if a majority of its employees authorized the Union to represent them: F. M. Pickren, November 17; Huel Cleghorn, November 17; George P. Callaway, November 18 and 19; Nathan Forbus, November 10, 12, 16, and 22, and May 1, 1955; J. H. Pasley, November 12 and 15; Vernon Brooks, November 19, 22, 26, and 27; Homer Cabiness, November 15 and 19 and December 10. This complaint finally charged that the Company, by and through its supervisor, Homer Cabiness, on or about December 2 and 10, solicited its employees to withdraw or revoke collective-bargaining authorizations previously granted by the Union, and by the acts and conduct above described has engaged in and is engaging in unfair labor practices affecting commerce within the meaning of Section 8 (a) (1) and (3) and Section 2 (6) and (7) of the Act. In the complaint in Case No. 10-CA-2274 dated May 3, 1955, the Company is charged, by and through Supervisor Vernon Brooks, on November 15 and 24 of hav- ing interrogated its employees concerning their union membership and sympathies; and the Company by and through its officers, agents, and supervisors, whose names are shown below, on or about the date or dates shown opposite their respective names, threatened its employees with loss of various employee benefits if a majority of its employees authorized the Union to represent them- J. H. Pasley, November 15; Overseer Ira Veasley, November 15 and January 31, 1955; Vernon Brooks, No- vember 15 and 24; and finally by and through Superintendent J. H. Pasley, on or about November 15, made threats to its employees that they would lose their em- ployment, that the Company would close its Sylacauga mills, and that employees could suffer other economic reprisals if a majority of its employees authorized the Union to represent them; and that the Company, by its action and conduct described above, has engaged in and is engaging in unfair labor practices affecting commerce within the meaning of Section 8 (a) (1) of the Act. There was also an allegation that the Company, on or about February 7, 1955, suspended and subsequently dis- charged its employee, Vernon L. Stevens, in violation of Section 8 (a) (1) and (3) of the Act. However, this allegation was stricken on motion by the General Counsel from the complaint. As previously noted, the Respondent Company denied the allegations of unfair labor practices, and affirmatively pleaded that the discharges were for cause-i. e., violation of the Company's no-solicitation rule. B. Background As germane to the facts to be developed in this case and for purposes of necessary orientation , immediately after offer and reception in evidence of the formal docu- ments, by agreement of General Counsel Hamilton and Respondent Counsel Con- stangy, two official exhibits entitled: "An Introduction to Avondale" and "Procedure for Handling Employee Problems or Complaints" were admitted. The "Introduc- tion" is a brochure which describes Avondale history, wages, cash and deferred profit-sharing program , vacations , insurance , promotions, employee problems and complaints, bulletin board, recreation, educational program, community activities, and other topics. The "Procedure" brochure is a manual setting up an authorized procedure for handling of problems or misunderstandings which may arise between employees and management, and it details five steps an employee may take in bringing a problem or complaint from- his assistant foreman up to and including the president of the Company. Avondale Mills began business in the year 1897, when the late Governor B. B. Comer and a group of associates formed a company in Birmingham and built the 390609-56-vol. 115-55 - 850 DECISIONS OF NATIONAL LABOR RELATIONS BOARD mill which is now known as "Avondale ." In 1906 , the' organization purchased the Central mill in Sylacauga and in 1913 built the Eva Jane mill. Subsequently, the Sally B No . 1, Sally B No. 2 , and Catherine mills were built in Sylacauga . Mills in Alexander City , Birmingham , Lafayette , Pell City, Stevenson , and Sycamore, Ala- bama, are parts of this long-established and integrated chain of textile mills in Ala- bama communities . From the beginning in 1897, when the Company had 1 mill and employed 400 persons and consumed 100 bales of cotton per week , the Company has grown to an organization of 9 mills operating 266,000 spindles and 4,700 looms, which consumes 3,500 bales of cotton per week . There are at present about 6 ,000 employees. The brochure states that the Company 's endeavor to keep pace with the Nation's steadily advancing standard of living has found expression in a constantly broader appreciation of recreational , social , health , cultural , and security programs-all of which have been developed in cooperation with employee groups . In this connec- tion , it states that until 1949 many Avondale people lived in approximately 1,200 houses owned by the Company and as a major step in Avondale 's program of en- couraging home ownership , most of these houses were sold to the occupants in late 1949 . Avondale offered to finance 90 percent of each purchase over a 12-year period with interest at 4 percent . Many other employees also have acquired homes or small farms with financial assistance of Avondale credit unions , the Sylacauga Federal Saving and Loan Association , and other local institutions . Today about 85 percent of Avondale employees are homeowners or members of homeowning families. The brochure recites that Avondale considers the relationship with its employees to be a partnership in which benefits and adversities are shared as all strive together to make the organization a better and more successful one. As is true in all partner- ships, each individual should make his maximum contribution to the program. Avondale states that its wage policy is to pay wages equal to the going wage in the textile industry in its locality, stating that this is a basic part of its profit-shar- ing program . The profit-sharing program of Avondale has been in continuous effect since 1942 and is characterized as a cash and deferred profit -sharing program. All employees of the Company are eligible to participate in the profit -sharing program after they have completed 1 full business year in continuous service of the Com= pany. It states that the profit -sharing program will divide any profits of the Company half and half between the Company and its eligible employees , after reserving 5 percent after income taxes on the stockholder's investment ( net worth of the Com- pany ). The formula applied is that the amount to be shared will be divided accord- ing to units , with each individual having 1 unit for each year of service and 1 unit for each $100 of earnings during the year . Half of any profits to be shared will be paid to the eligible employees in cash as soon as practicable after the end of the business year, and an equal amount will be paid into the retirement trust. There is a vacation -pay program on the basis of a "Vacation Year ," depending on the employee 's years of continuous service with the Company figured on a percent- age of earnings during the vacation year to be paid as vacation pay ranging from 2 percent to 6 percent . Insurance is provided for employees who participated in group -insurance program providing life insurance , hospital , and surgical benefits. Avondale states that it endeavors to promote or lay off employees in accordance with their length of service , providing that other conditions such as ability, production, and quality of work performed are equal but mere length of service does not justify pro- motion nor protect from layoffs. It is specifically provided that no separation, in- voluntary on part of the employee , will be made permanent by the Company until the employee has had full opportunity to submit his problem or complaint. An ex- tensive recreation program is outlined as a major part of Avondale's employee program. In its educational program, Avondale provides opportunities for self-help called "Partnership with People ." Avondale kindergartens are attended by about 500 children of employees , and to further self-improvement , high school and college level courses are offered to employees to prepare them for more responsible positions with the Company . In cooperation with recognized colleges , Avondale endeavors to make work available to deserving high school graduates whereby they can secure a college education under the "Co-op Plan" by working and attending school alter- nately. It is possible under this plan for these students to cam enough themselves to pay their way through college and receive their degrees in 51/2 years . This pro- gram is not limited to students taking any particular courses of study. Avondale also has set up an educational and charitable foundation which offers scholarship plans to encourage and assist worthy young men and women who strive to obtain an education to prepare themselves for positions of leadership and service in textile industry. The brochure states that in each Avondale community there is a Federal credit union with a twofold purpose to enable its members to save systematically , no matter I -AVONDALE MILLS 851 what the amount, and to enable its members to borrow money at a reasonable rate of interest. Further, Avondale has a Cotton-Craft Cooperative Association in order to provide retired people with additional income. Finally, the brochure states that Avondale expects from employees regular attend- ance, compliance with rules, 'maximum of efficiency, alertness, personal interest in Avondale, and protection of the good name of Avondale. (The procedural program will be more particularly adverted to.) The Union, Textile Workers Union of America, CIO, with general offices in New York City and southern office in Charlotte, North Carolina, started an organizing campaign in the fall of 1954 at the Sylacauga mills of the Respondent and on or about November 10 delivered union membership cards to some 60 of Respondent's employees for distribution and solicitation of signatures. Union Representative Halstead testified that there has been a continuous organizing campaign conducted by the Union at the Respondent's plants in Sylacauga and at Respondent's plants at Pell City and Alexander City, Alabama. After November 10 when the employees were given these membership cards for distribution and solicitation of signatures there was extensive solicitation and union activity carried on in the two mills, the Eva Jane and Catherine Central. The Company contends that this campaign was interfering with production and was causing complaints by employees, and consequently it invoked a long-standing rule against solicitation. The invoking of this rule against union solicitation and the subsequent discharge of employees alleged to have violated the rule constitutes the most important feature of this case. C. The solicitation rule This rule reads as follows: "It has come to our attention that you are attempting to solicit union membership in this plant during working hours, while the employees that you are attempting to solicit are at work. This is a violation of plant rules and any further instances of this sort will result in prompt dismissal." This rule was individually read to the dischargees in this case by supervisors, as well as to other employees who were suspected of soliciting memberships on company time. The General Counsel contended that this rule was unlawful in that: (1) It was limited to union solicitation; (2) it was adopted without any regard to business necessity for the sole and discriminatory purpose of impeding its employees' self- organizational efforts; (3) it was used as a device to threaten, coerce, and interfere with employees in their organizational activities; and (4) it was enforced against employees while supervisors openly campaigned against the Union. D. Key to this case The key to this case is to be found on the last page of the brochure or employees' manual-page 14--entitled "Avondale Expects From You." Listed there are six fundamental employment requirements: (1) Regular attendance; (2) Compliance with rules; (3) Maximum efficiency; (4) Alertness; (5) Personal interest in Avon- dale; and (6) Protection of the good name of Avondale. To utilize two classic examples of comparison as being applicable-"the greatest of these" is maximum efficiency-because "High production and quality enable Avondale to complete successfully with other mills in the industry and are the sources of profits to be shared." The other-"a man cannot serve two masters"-because "Personal Interest in Avondale" required absolute loyalty to its time-honored partnership concept or principle of sharing in the benefits and adversities. From the evidence, testimonies, conduct of witnesses, appearances, and impressions gained by the Trial Examiner at, during, and from the hearing, and from the entire record, maximum efficiency with its attendant high production was the sumniune bonum. (Cf. Avondale Manual p. 5, "As is true in all partnerships, each individuall should make his maximum contribution to the program.") In reference to com- pliance to rules, the manual states: "It is necessary to have plant rules regarding conduct, safety, and housekeeping." (Apparently the plant rules, being unwritten, were matters of custom, some possibly dating back nearly 60 years.) Immediately after becoming aware of the union organizing campaign together with reports of various employees attempting to solicit union memberships in the plant during working hours from employees who were working, management in- voked its so-called "no-solicitation" rule and made suspension and discharge the penalty for violation, after warning. Other than for the annual Community Red. Cross Drive, no solicitation of any kind was permitted in Avondale, as is evidenced by the warning previously given an elderly employee, G. C. Cook, who was circulating 852 DECISIONS OF NATIONAL LABOR RELATIONS BOARD a petition seeking a pardon for his son who was in the penitentiary . He was ad- monished by Supervisor Gunter: "Well you'll have to see Mr . Haines before you go any further with the soliciting on the job. You know the Company won't allow you soliciting on- the job." Cook denied knowledge of this rule. Cook was again "called on the carpet" when he was suspected of soliciting membership for the Union, but he denied union solicitation . The rule that working time is for work, early enunciated by the Board in Peyton Packing Company, Inc., 49 NLRB 828, certainly obtained in Avondale. In that case the Board stated : "It is therefore within the province of an employer to promulgate and enforce a rule prohibiting union solicita- tion during working hours. Such a rule must be presumed to be valid in absence of evidence that it was adopted for a discriminatory purpose." Thus the main question to be resolved is whether the rule was applied for the purpose of discriminating against the Union or to maintain discipline in the plant. E. Alleged interference, restraint, and coercion Fred E. Halstead, a representative of the Textile Workers Union of America, tes- tified that he had engaged in organizational activity of the Avondale Mills, in Syla- cauga, Alabama, which organizing campaign began as a survey on October 26, 1954, and has continued to date. As a result of this survey about 50 employees were con- tacted, and cards were given out to some 60 individuals, the number of cards given each individual varying from 10 to 60, during the entire campaign. Cards were first given out on November 10, 1954, but not all of the cards on that date. Halstead testified that they also had a campaign on in Pell City at another plant of the Avon- dale Mills, about 42 miles from Sylacauga, which began prior to October 1954, ap- proximately September. Also prior to November 1954 they had made surveys at the Alexander City plant of Avondale Mills, which is about 30 miles from Sylacauga. The complaints' allegations of interference, restraint, and coercion involve nine of Respondent's supervisors and a personnel officer, Huel Cleghorn. General Counsel Hamilton, in his comprehensive and detailed brief to the Trial Examiner, contending that the "rule" was used as a device to threaten, coerce, and interfere with employees in their organizational activities, shows that employees Baxley, Connell, Cook, Johns, Martin, Price, Reeves, Fitzsimmons, Epperson, and others, having been reported as soliciting , were called into the office and read the rule. Each of them denied having engaged in solicitation. General Counsel also contends that the Respondent utilized the reading of the "rule" as a "springboard" to make direct or thinly veiled threats about what would happen if the Union came in or if employees favored the Union. In this connection, employee Cook testified that when Foreman Forbus called him into the office to discuss the report that he had been soliciting for the Union, Forbus "told me that probably they would shut it down, the Company never had stood for a union. And he didn't want that to happen for he wasn't ready to have a shutdown." Asked by Counsel Constangy: Q. "Did he say who would shut it down?" A. "He said Mr. Comer [Avondale Board Chairman] probably would." The complaint was amended to allege that this conversation took place approximately May 1, 1955. Forbus' version, which I accept, is as follows: "I was in the control room which I have authority to go in the control room. I have some work to do in there at night, and Mr. Cook was in there. We was talking and so forth and what was going to happen. I said, `Now, listen, Mr. Cook,' I said, `what I'm interested in is this job running while I'm here and that is all.' I said, `I got nothing for the union and noth- ing for the company, only I'm interested in my payday.' I said, `you all are going to keep flunking around here and messing around here until it will be like that mess in Talladega was a few years ago.' I said, 'I happen to be there when one was killed and one broke his neck and black-eyed and bunged up pretty bad, and you all are going to mess around here and shut it down, and I'm not able to stand it and I wish you would quit this punching up and talking and stay on your job.' That is all I was interested in " From my observation of the demeanors of both witnesses, I credit this explanation; and find no threat violative of the Act. Crit Connell testified that sometime in November he was working in the "picking room" of the Eva Jane mill on the third shift when Forbus engaged him in a con- versation, stating: "We just started the pickers up and he [Forbus] came out and asked me had I signed the union card and I told him `yes.' He asked me what I think I would gain about it So by that time the pickers stopped and we had to doff and we doffed and came back up to the No. 1 picker and James Bates and R. D. Dennis was there. He asked these fellows if they signed the cards and they told him `yes.' So he asked them what they thought they would gain and we told him better work- ing conditions. . He said the mill would probably shut down if it went union .down there. So about that time the pickers had knocked off again and we went on AVONDALE MILLS 853 to work and him and R. D. [Dennis ] set up there and talked 15 to 20 minutes and what they said I wouldn't know." Interrogated in this connection Forbus' version was: "Well , my job is to see that each person operates his job and runs it, and I was in the office and I discovered there was some jobs that needed attention with nobody on it. I begin to find out where they was at and what it was all about. When I found them they left their job, two or three left their jobs and all had bunched up in the big alley out of this room in to another room. I walked up to where they was at and said, `What all does this mean?' I said, `you all are going to keep on here discussing this thing and the next thing you know this thing is liable to shut down.' I said, `in fact, you about got it shut down now.' I said, `There's jobs out there that need attention and so long as I stay here you are going to run them'; and I said, `Get on your jobs and run them.' And they did." Forbus denied that he asked Connell if he signed a union card or what he thought he would gain from union conditions. I believe and find Forbus' version to be correct except that after delivering his reprimand, he did engage in a further discussion of the unionizing campaign as re- lated by Connell and asked them if they had all signed cards and inquired what they expected to gain. Interrogating employees as to whether they had signed union cards under circumstances similar to this instance has been held to be violative per se of the Act by the Board -in cases too numerous to mention and I so find. However, I do not find the simple question as to what he, or they, thought would be gained from union conditions-obviously over and above what Avondale already offered-to be illegal interrogation. Forbus got his curiosity satisfied, whether he agreed or not in their answer-"better working conditions." Howard Epperson, a "fixer" in the Catherine spinning mill, testified that sometime in February, Superintendent James J. Pasley called him into the office and, in the presence of Supervisors Veasley and Winsley, read him the rule. Epperson stated that this was his first intimation either of the rule against solicitation and even of his knowledge of the Union. His cogent testimony in this connection was. "Well, we just talked, me and him and Mr. Veasley and Mr. Winsley, first one thing then an- other. Something was said about going up to Uniontown [Alabama], I believe it was, where that mill shut down and see how they done it up there, and this one would probably do the same thing." Asked whether he mentioned anything about Union- town, Pasley answered: "I'm sure I did. I just been down and bought some machin- ery out of it and the people were all around wanting jobs and everything. . . I told him the story about two people that came in my office looking for a job from Uniontown. . . . Two people who worked there for 13 years, built them a home and they had everything invested in it, and the mill shut down and they went through the Valley up the line to Tennessee and back and nobody would give them a job. They said they couldn't sell their home for practically anything." Pasley stated that if he did not tell Epperson about this story, he certainly told others. I find this to be an exercise of his right to free speech and protected under Section 8 (c) of the Act. Valid plant rules against solicitation and other forms of union activity do not control an employer's actions. Nutone, Incorporated, 112 NLRB 1153. Carter E. Fitzsimmons testified that in November he had a conversation with Pasley in the presence of Supervisors Veasley and Winsley at which time he was read the "rules" and asked if he understood it. In amplification of this conversation, Fitzsimmons stated: "Well, I told him at one time, rather I was a member of three different branches of the union. I told him what they were that I had been in. He said he wasn't talking about that, he was talking about the CIO that was trying to organize the Avondale Mills." His testimony concerning a discussion as to whether or not the Union might come in, in my opinion, was indefinite: "Well, I don't remember just what was said about that . It seems like some little something or other was said, something like the Company wouldn't stand for the Union to come in and they could shut down the mill if they come in." His testimony was but little more definite on cross-examination by Respondent's counsel: "Well, he said, the best I remember, he said, the Company might not stand for a union to come in . He said, they could shut down, that he didn't know. That is something similar to what he said. I don *t remember the exact words." His only recollection as to the date of this conversation was that it occurred in the fall of last year. Pasley denied saying anything to the effect that Avondale Mills would not stand for a union or would close down the mill, stating: "I asked him if there were any questions , and he told me that he belonged to the railroad union and several other unions. He asked if there were any other questions and I told him no, and he got up and left." The testimony of both of these witnesses as to this meeting seemed quite forthright . My conclusion was that Pasley, in explaining the warning for violation of the current "rule" as distinguished from Fitzsimmons' prior union 854 DECISIONS OF NATIONAL LABOR RELATIONS BOARD activity, advised him that the Company might not stand for a union to come in, and could shut down-that , he did not know. I believe that Pasley did not mean it as a threat , but I find , however, that this statement could operate as a threat to Fitzsimmons , and therefore contravenes the Act. Mrs. Keil Baxley testified that Pasley sent for her and, in the presence of Super- visors Veasley and Brooks, read her the rule because she had been reported as soliciting for the Union. She admitted , under cross-examination on the stand, that she undertook to sign up one woman, Jerald McQuinn . She quoted Pasley: "He said did I know what that meant, said it would mean all my benefits would be taken away from me ." On cross-examination , she admitted that the only thing Pasley did was to read the warning "rule." Pasley denied that he mentioned benefits. This warning constitutes no violation. William Louie Reeves testified that he was called in to the office of Supervisor Veasley on November 15 and there read the "rule" because he had been reported as soliciting for the Union. Denying any solicitation , he quoted Pasley as saying: "He told me if I wasn't involved , why, it was OKeh . I told him I wasn't ." There the matter was dropped . This is found to be no violation of the Act. Charlie T. Price, a doffer on the third shift, testified that he was read the warning in Supervisor Phurrough 's office late in November and told that "any further [union] action to that effect would result in my immediate dismissal . . Anything I did would be at my own risk ." These examples constitute the basis of General Counsel's contention that the "rule" was illegally used as a device to threaten , coerce, and interfere with employees in their organizational activities . All of these employees received the same treatment viz they were called in and told that it had been reported that they were soliciting union memberships on company time and were warned that if true and if the offense were repeated , the penalty would be discharge. The General Counsel did not affirmatively establish that the "rule ," presumptively valid, was used as a pretext to threaten , coerce, and interfere with these employees in their union organizational activities. Documenting and in connection with General Counsel's contention that the "rule" was enforced against employees while supervisors openly campaigned against the Union , Counsel Hamilton , in his brief to the Trial Examiner , prepared an elaborate chart listing separate instances of alleged illegal and proscribed conduct charged to Respondent 's supervisors . These instances are considered as paginated in the official transcript: Employee John Rich testified that on November 10 Supervisor Forbus came to his machine and said: "'John , what do you think about the Union?' and I said, `I think it is a good union.' He said , `It it goes union this plant will shut down and we won 't have any job.' " Forbus denied making this remark , but it appears that an altercation occurred between them and in concluding it, Forbus made this state- ment . I find it to be a threat tending to interfere with , restrain , and coerce an em- ployee in violation of the Act. Rich also testified concerning a conversation on November 16 with Supervisor Gunter: "And he asked me `Would I not give out cards outside the mill?' And I said , `When I get outside the gate I'm on my own and I won't make any promises .' " There is an unchallenged statement attributed to Forbus concerning Rich : "No, he [Rich ] won't lie," and I find that Gunter made the request . I find it to be an illegal interference calculated to restrain Rich in his lawful union activities. Rich further testified that on November 16 or the morning of the 17th, Forbus called him into the office and asked him to sign a "kind of a confession that I had been active since I have been told not to go for the union on the job." Stating that he refused to sign , Rich quoted Forbus as saying: "John , you are too old a man for this.. . You're going to be left out in the cold . . . . You'll be left in a ditch.... This mill is not going union and you won't have any job." Rich was a senior employee with 20 years' experience in Avondale and truthful . I credit him in this instance and find this statement to constitute an illegal threat . which con- travenes the Act. James M. Jones testified that on November 19 Supervisor Phurrough called him into his office and told him that he was laid off for 30 days and gave him his time in full . Jones had previously denied that he had solicited after being warned by Phurrough and said : "Well, Mr. Phurrough , who am I going to have to see to prove that I hadn 't solicited the Union on the job since I was warned ? There ain 't nothing to that ." Phurrough 's answer was: "You can carry this to Mr . Callaway at 8:00 o'clock - if you want and get your time, get your money." Jones returned to his machine and just before quitting time as he passed , Jones said he asked Phurrough again whom he would have to see to prove that he had not solicited and Phurrough answered : "I don't know, but you can go see Mr. Fred Halstead " ( the union or- AVONDALE MILLS 855 ganizer). I find that Phurrough made this answer, but find it to be no violation of the Act. After Jones was laid off, he reported to Halstead, the union representative, and then returned to the plant and talked with Superintendent Callaway. Jones quoted Callaway as saying: "Well, Jones, what have these guys promised you? Have they shown you a contract of any kind?" According to Jones a discussion ensued in which Callaway told of mills shutting down and Jones argued about Avon- dale's spinners being overworked. I find that Callaway made the remarks, but attach little significance to them because he had already concurred in Jones' layoff on the facts as he then had them. Jones testified that he finally was interviewed by ranking officials, Haines, Turner, and President Smith, all of whom eventually affirmed and concurred in his discharge. He attributed to Turner, and it is un- denied: "he asked me what made me want to work for the Union . and he said he just couldn't see what would make a boy come from a good family like I did want to work for such a mess as the Union . . . then he told me that way back yonder some people in Alex City got involved in the same type of business and the families was separated from each other . and then he asked me if I was satisfied on the job. I told him `Yes, sir.' I told him I was well satisfied." Jones attributed similar statements to President Smith. The Trial Examiner finds that these interrogations of an employee, made at the time of discharge, interfere with, restrain, and coerce an employee exercising his right to engage in protected union activities. Charlie T. Price, a doffer in the Eva Jane mill, testified that late in November Supervisor Homer Cabiness started a conversation with him in the toolroom by asking him if he knew who was soliciting by giving out union cards in the mill. Price quoted Cabiness: "He said that the Union, if it came to Avondale Mills the mill would shut down." He further testified that about the first or second week in December: "Mr. Cabiness asked me about writing a letter requesting my union card back. . He asked me if I had a chance would I get my union card back." Price further stated in connection with this suggestion: "I don't remember exactly what he said at that time. He said he had written letters requesting their cards for people, requesting their cards back and he would write me one if I wanted him to." Cabiness cate- gorically denied any of these statements attributed to him, and answered Counsel Constangy when asked whether he had any conversation of that sort with Price: "Not of that type." Based on the demeanors of Price and Cabiness, I credited Price. Accordingly, I find these conversations violative of the Act. Jimmy Dupree, a doffer, testified that on the night of November 17 or the morning of the 18th he had a conversation with Cabiness in the little spinning room: "Well, he asked me did I have a union card. I told him I didn't." He then quoted Cabiness as advising that if he got one to hand it back and tell the donor to use it for toilet paper. He also quoted Cabiness as saying: "Avondale Mills would never recognize the Union. . . They would cut those frames up and sell them for junk before they would let the Union come in." Although Cabiness denied making these statements' I credit Dupree and find them calculated to interfere with, coerce, and restrain employees in the exercise of their protected union rights and activities. Calvin W. Parker, a "beamer tender" working on the third shift in the Eva Jane mill and one of the alleged discriminatorily discharged employees , attributed state- ments to Supervisors Pickrem, Cleghorn, Callaway, and Turner which if accepted as true constitute instances of illegal interrogation and threats within the purview of the Act. Parker testified that in an interview with Supervisor Pickren, who was in the act of suspending him for 30 days: "Well , he [Pickren ] said the Union wasn't any good . and I was still talking to Mr. Pickren trying to get the things straightened out where I could go ahead and work and he said the Union wasn't any good, said it broke up places. in textile, said it just wouldn't work, so I saw I couldn 't straighten it out with him so I went on out." Q. During this discussion , was any mention of the Union getting in at all? A. He said they wouldn't run with the Union down there. Q. Who wouldn't run? A. The mill wouldn't run with the Union down there, they wouldn't stand for it, they'd close it down and he didn't want to lose his job. Parker quoted Personnel Officer Cleghorn as saying: "Well, he stated that the Union wouldn't work in textile, stated he wanted to work, didn't want to lose his job, didn't want the mill to shut down ." In his interview with Superintendent Calla- way, Parker stated: "I asked him if he could straighten the matter out and he said he couldn 't. He said the Union wouldn 't do anything but just tear up things. He didn 't want any part of it himself. . . . He said , he didn 't see why I let myself be talked into joining the Union , messing myself up like that." Parker next testified 856 DECISIONS OF NATIONAL LABOR RELATIONS BOARD as to a general meeting in which he quoted Superintendent Turner as telling him that "the Union wouldn't work down there. We wasn't going to have people going around soliciting the Union , undermining working people." The Trial Examiner found Parker to be an unreliable witness, and his evidence in these instances is not credited , therefore his alleged quotations constitute no violation of the Act. Catherine Sneed , an employee of Avondale for 22 years, testified that Assistant Foreman Vernon P. Brooks came to her about 3 weeks after the union cards were given out quoting: "And he asked me was I for the Union and I told him no. He said `Well, you know what you would lose if you were for the Union, your hospital insurance and everything . . . . On Wednesday ' he gave me my statement and he asked me, he said 'I thought you wasn 't for the Union .' I said, 'I am not .' He said, 'I heard you done signed a card .' I said , `Well, you can hear most anything in the spinning room .' " Ola Bass, an employee of more than 10 years , testified that Fore- man Brooks came up to her machine and asked her what she thought of the Union, quoting Brooks: "And asked me what did I think about it and I told him I didn't know and he said, `Well, all your people belong to it, don't they,' and I said `yeah.' He said, `Well, do they talk to you about it,' and I said 'No."' Autrey McCoy, an em- ployee of around 15 years, testified that Foreman Brooks came to her while she was working and started a conversation : "He just stated that if it went union , the age benefits, the hospital, and the profit sharing would be eliminated, of course." Vernon Stevens testified that in a discussion with Brooks , Brooks said certain benefits would be lost by the employees if the Union got in Avondale. The Trial Examiner found Brooks to be such an unreliable witness on the stand that his "firm " denials are to be disregarded , and the testimony of the witnesses against him accorded complete cre- dence. Accordingly , it is held that the above statements of Brooks are illegal in that they tend to interfere with , coerce, and restrain employees in the exercise of their right to engage in protected union activities. F. The alleged discriminatory discharges of employees Rich, Jones, and Parker Earlier herein allusion was made to a "Procedure for Handling Employee Prob. lems or Complaints" set up by the Company. Five separate steps or stages were ar- ranged for handling employee complaints in this formal reporting service: first step, discussion with assistant foreman; No. 2 presenting matter to the foreman, who, if the employee's complaint was not settled satisfactorily, gave him an employee prob- lem or complaint report to be filled out by the employee and then was processed up- ward by the personnel assistant to step No. 3 reaching the superintendent, thence through step No. 4 to the vice president and general superintendent, and finally to the president of the Company in step No. 5. The same reporting system perhaps ob- tained in complaints against an employee. (This system of "thru channels" is fol- lowed in the armed services, and generally, in the Government.) The cases of the alleged discriminatees Rich, Jones, and Parker followed this formula. With reference to the discharge of Rich, the facts as found are that Rich had worked for the Company off and on since June 1933 with several interruptions, but his most recent unbroken service began on May 15, 1950, and ended with his dis- charge on November 17, 1954. He was a "frame hand" in the carding room at the Eva Jane mill working the third shift from 10 o'clock at night until 6 in the morn- ing. His immediate superiors were Assistant Foreman Nathan Forbus and Fore- man French T. Gunter. It appears that the "no-solicitation" for union memberships was invoked initially on the next work shift following a conversation between Rich and Foreman Forbus on November 10. At this meeting, Rich testified, Forbus came to his machine while he was "creeling" and asked him what he thought about the Union, to which Rich re- plied that he thought it was a good union. Forbus indicated that he had heard about the union men being in town and when informed by Rich that he had already talked with them, Forbus seemed surprised. Rich quoted Forbus as saying: "If it goes union, this plant will shut down and we won't have any jobs" and walked off. Forbus denied making this remark , and gave as his version that he had gone to Rich's job to ask why he was not running the job and was told by Rich that he had too much to do and could not run it . Forbus answered : "Well, you can top it off and do what you can. Nobody is pushing you whatsoever." Forbus quoted Rich as replying that "some of these days it's going to be where you can't come to me and say nothing about it." Forbus replied: "Well, there might be. I won't say about that . But as long as I stay here , union or no union , anyway, you are going to run your job." My conclusion is that this altercation occurred , and that Forbus did answer Rich saying: "If it goes union, this plant will shut down and we won't have AVONDALE MILLS 857 any jobs." My view is that Forbus was astonished that a senior employee'of over 20 years could be so disloyal and ungrateful. The denouement came next day. Rich was called into the office at 10:30 the night of November 11 by Foreman Gunter, and in the presence of Forbus was read the warning against solicitation, and was told that no union activity would be permitted on the job. Rich admitted that he had given out a few cards but promised not to give out any more cards in the plant. This meeting ended with Rich asking: "What does this mean, am I fired? And he said, no, you forget it and I'll forget it. He said, I don't want any more on the job." However, Rich continued his advocacy of the Union with employees in other departments during working time and on Novem- ber 17, a week after he was warned, he was again reported to Gunter for soliciting on the job. Gunter had Forbus bring him into the office, again read the warning and stated: "You lied to me. I am going to have to lay you off for 30 days." In reply to Rich's query why he was not fired outright Gunter said "that is out of my power. The personnel man will have to fire you." According to Gunter, the reason for the suspension and subsequent termination of Rich was his solicitation of the elevator operator, Glidden Holt, on the November 17 shift .2 Rich, on cross-exami- nation, also admitted "soliciting" one of the female employees for union membership while she was at work. Both worked in departments other than his own. Subse- quently Rich appeared before and appealed his suspension and discharge to Superin- tendent Callaway, Personnel Officer Cleghorn, B. H. Haines, and finally the presi- dent of Avondale, J. Craig Smith-all of whom affirmed Rich's discharge for vio- lating the rule, after warning against soliciting union memberships, while on com- pany time from persons who were working. The Company's definition was the literal application of the one set forth in the Peyton Packing Company case (supra), and Rich's discharge came within its purview. Accordingly, I shall recommend to -the Board that the complaint be dismissed as to Rich. James Melvin Jones was a "doffer" employed in the spinning room of the Eva Jane mill. (A doffer is one who replaces the spinning bobbins which are full of yarn with empty bobbins upon which the thread is to be wound.) Jones came to work for Avon- dale first in February of 1943, quit and was rehired in July 1944, again in July 1946, again in June 1947, and finally as of April 1954 worked until discharged November 18, 1954. Jones was one of the very few employees involved in this case who had previously been a member of a union, or who had worked in a unionized plant. He testified that he signed a union card on November 11-1 day after the organizing campaign started at Sylacauga. He was I of the 60 Avondale employees given union cards for distribution. Jones himself testified that on November 12 during working hours he solicited spinners in the spinning room to sign cards, among whom was a female employee, a Miss Tucker. As Avondale Counsel Constangy points out, this activity was observed and on the next morning, November 13, in the presence of Assistant Foreman Cabiness, Foreman Phurrough read to Jones the so-called rule against solicitation and warned him that any further violation of the rule would result in summary discharge, prefacing: "Jones, you have been reported working for the Union." The testimony concerning Jones' activities, after being warned by Foreman Phurrough on November 13, presents Jones' interpretation of and defense against the charge of solicitation for which he was suspended for 30 days and subsequently discharged. Jones' plea was that after being warned he did not bring any more cards into the plant for distribution nor attempt to distribute cards, but kept them in his car outside the plant. Benny Nicholson, who "doffed" adjacent to Jones, testified, however, that "about a couple of days before he was suspended he gave me the cards." (Jones was suspended on November 18, thus this would have occurred on the 16th.) Nicholson also stated that Jones was worrying him on the job by soliciting him in connection with the Union-"dogged me all the time." Nicholson's testimony of the three occasions on which he was solicited and the actual date he was given a card or cards by Jones rendered his testimony unreliable-what with putting the dates of solicitation as a General Counsel Hamilton makes the argument in his comprehensive brief that although Rich had a conveisation substantially as reported by Holt Gunter at 3 o'clock in the morning of the shift on which he was terminated, earlier in the shift Forbus came to Rich and said , "Well, John, I can talk about the union and you can and everybody can talk about the Union " [Emphasis supplied ] General Counsel characterizes this as "a clearer case of deliberate entrapment would be most difficult to imagine " The term "entrap- ment" is usually applied to criminal, rather than civil actions . The Trial Examiner feels, however , that the exception to the rule provided in criminal situations exists herein, I. e., there was an intent to continue his union activities and advocacy without the mechanical act of distributing cards, of which intent Forbus was aware or at least suspected. 858 DECISIONS OF NATIONAL LABOR RELATIONS BOARD November 11, 12, and possibly on the morning of the 13th; all of which would have occurred before Jones was warned . He began by giving the impression that Jones himself gave him the card on Wednesday , the 16th , but was led into admitting that Jimmy Dupree , another "doffer," gave him the card outside the mill and after quitting time. Dupree corroborated Jones' version . Nicholson turned over this card the next day (Friday) to Foreman Phurrough, who then made these activities the basis for Jones' suspension and ultimate discharge . Jones' version , which I accept, was that Nicholson asked for the card, and that he told Nicholson that he had been warned about giving out cards but would give him a card outside the gate the next (Thursday) morning. Instead, Dupree got the card out of Jones' car and gave it to Nicholson, who then took his first opportunity to give it to Phurrough . Jones , in every step of the proceedings , has steadfastly contended that he was not guilty of violating the rule against soliciting after the warning and during working hours . My opinion, based upon Jones ' demeanor under oath on the stand , is that Jones is sincere in his belief. My conclusion is, however, that Jones violated both the spirit and the letter of the rule by soliciting after being warned by Supervisor Phurrough. His definition was that he "hadn 't solicited the union and hindered the help ." Rejecting Nicholson's version of the card incident does not, however, mean that I do not believe that Jones and all others interested , pro and con , did not discuss the union organizing program. The record is replete with evidence that employees freely talked about subjects of per- sonal interest. Indeed, there were 60 adherents of the Union interested in organizing the plant all equipped with cards and who were more or less active-of which and of whom management doubtless was well informed-witness the calling in for question- ing of those suspected of engaging in union activity together with the allegations of interference, restraint , and coercion charged against supervisors. Jones not only occupied the position of being the exceptional employee who-had held union status, but he was the cousin of Personnel Officer Huel Cleghorn, who, incidentally, was responsible for Jones' hire and transfer to the Eva Jane mill. Signifi- cantly, to me, it appears that on November 17 Cleghorn came to Jones' job and told his cousin, Jones, that Phurrough had requested him to speak to Jones about his activ- ity for the Union and Jones quoted Cleghorn: "Now, you can do whatever you please, but Mr. Phurrough likes your Nodale (that's my wife) and he wants you to stop work- ing for the union." The Trial Examiner concludes that the purpose of Cleghorn's mission, instigated by Phurrough, was to get Jones, although an ardent union expo- nent, to desist from his union activity within the plant and thus save his job. Jones was a forthright and personable witness when he appeared upon the stand. Manage- ment had no alternative but to suspend and later discharge Jones, the outstanding union adherent in the plant, if it intended to enforce its "rule" uniformly. This I find not to be a discriminatory discharge, and I shall recommend that the complaint be dismissed as to Jones. Calvin W. Parker, the remaining dischargee to be considered in this case, was a beamer tender working on the third shift in the slashing-beaming or spooling- slashing department of the Eva Jane mill. He contends that he was never warned. The records indicate that Parker was first employed in May 1942, again in September 1946, again in November 1947, again in June 1949, and on the last occasion in July 1954 until suspended on November 16, 1954. Parker's version was that when he came in to go to work the shift of the 17th, Foreman Arnold Taylor was waiting for him to arrive and "he told me not to clock in, come with him." He testified he was taken to Supervisor Felbert Pickren's office where Pickren read from a slip of paper which stated that he had been reported to that office as soliciting union memberships on the job while at work, and that he was suspended for 30 days. Parker stated that he told Pickren that he did not know it was against company rules to solicit for the Union on the job, and denied that he had been previously warned or talked with any supervisor about the Union. He said further that he asked Pickren to help him straighten the thing out to where he could go ahead and work, if it was at all possible, but that Pickren said there was not anything he could do: "so far as he was concerned, I was suspended for 30 days and he had my check and had a slip of paper which he signed and I was to take it to Mr. Callaway's office to get paid for two shifts on the nearest estimate." Parker admitted that he had been soliciting on November 12, but con- tended that he did not ask anybody to sign a card in the plant, and only at "clean-up hours" or in the bathroom. During these times he had gotten Joe Baker, J. T. Downs, James Patterson, and Billy Craddock to sign up. Asked if he had solicited anyone to sign a card in the beaming room , Parker answered : "I had them in the beaming room if they wanted to sign they could have." The Trial Examiner found Parker's extensive testimony diffused , and his demeanor and deportment on the stand rendered his recitals suspect. Pickren's version was that he talked to Parker on two occasions , the first on Tuesday night, November 16, "right at ten o'clock" and again Wednesday morning, AVONDALE MILLS - - 859 November 17. He testified that he said to Parker: "'We have already told you one time about soliciting on the job and it has been brought to my attention again.' He said that he knew about it and said he didn't think he was going to get into trouble. I told him I was suspending him for 30 days. He asked me couldn't I help him get his job back. I told him no. He asked me who could he see, could he see Mr. Callaway. I told him he could if he wanted to but I didn't think Mr. Callaway could help him." Pickren explained the circumstances of suspending Parker after the first warning, stating: "I was in the beamer room with Arthur Elrod . I talked with him all the time about fishing and he told me, said, 'Nick,' said 'Calvin Parker asked me this morning in the bathroom about signing the card,' and said, 'I went and punched in and come back to my job,' and said, 'he came out on my job and stood there and asked me to sign one.' " Personnel Officer Cleghorn testified that Pickren sent for Parker on Tuesday night, November 16, at the beginning of the shift and "read him this company policy." (It was the only time that Cleghorn was present when an employee was read the warning.) Pickren filed an official personnel report stating that Parker was warned on November 16. Thomas I. Craddock, a beamer tender ordinarily employed on the second shift, but who had asked for the third shift on November 12 in order to attend a high school football game,, was working on the fifth frame near Parker who was on the ninth frame. Craddock testified as to a conversation with Parker, stating: "At first he came in there when he first came to work, after the ball game when we first came to work, before we clocked in, he wanted me to sign a union card. I told him I didn't want to sign one." But he stated that Parker came twice again to his frame during work, with the result that Craddock signed the card. Craddock subsequently reported the facts to Pickren. Arthur D. Elrod, a tender on the first shift which follows the third shift on which Parker worked, testified that he came in at 5:30 on Wednesday, November 17, and shortly thereafter Parker came into the bathroom "where I was and asked me would I sign a card." Unsuccessful at this time, Parker returned around 6 after he had gone on the job and requested him to sign a card, and also asked him to go to a union meeting. Elrod, likewise, reported the facts to Supervisor Pickren. In view of the corroboration of Pickren's testimony and the equivocal and diffusive testimony of Parker himself, the conflict is resolved in favor of Pickren's version. Accordingly, the Trial Examiner finds that Parker solicited union memberships of employees on the job after having been warned that such solicitation was in violation of a company rule, and his resultant discharge was not in violation of the Act as being discriminatory. Accordingly, it will be recommended to the, Board that the allegation be dismissed. G. Conclusion Since Rich, Jones, and Parker were discharged because of alleged violation of a company rule prohibiting solicitation, it is necessary to find out whether there was such a "rule." The, so-called rule in this case is not in fact a "rule." Rather, it was a warning against solicitation of union memberships in the plant during working hours, while the employees solicited were at work. Admittedly, this warning came about as a result of the Union's organizing program. The General Counsel con- tended that this "purported rule" was unlawful because: (1) It was limited to union solicitation; (2) it was adopted without any regard to business necessity for the sole and discriminatory purpose of impeding its employees' self-organizational ef- forts; (3) it was used as a device to threaten, coerce, and interfere with employees in their organizational activities; and (4) it was enforced against employees while supervisors openly campaigned against the Union. - Respondent contends that the basis of its warning was a recognized rule in industry generally, and in Avondale certainly as a plant rule, that "working time is for work," and that no solicitation of any kind was countenanced without disciplinary action after warning; and that this restatement of its existing rule was necessary when it became apparent that there was extensive union solicitation being carried on which was interfering with production and efficiency and was causing complaints -by em- ployees who were being interfered with at their jobs. On the basis of the entire record, the Trial Examiner finds that there was a valid but unwritten rule against solicitation of any kind on working time-excepting only the annual Red Cross charity drive, and that the warning was predicated thereon. Therefore, unless in- herently bad solely because the warning was limited to union solicitation , and if not discriminatorily applied and used as a pretext , the rule was sound . Cf. Peyton Packing Co., supra. Also to argue that the rule was invalid because not formulated and enforced until the union adherents began soliciting is a philosophic non sequitur--otherwise the occasion would never have arisen. The testimony of Plant 860 DECISIONS OF NATIONAL LABOR RELATIONS BOARD Superintendents Callaway and Pasley together with those of Foremen Gunter, Pick- ren, and Forbus indicate that the solicitation activity was interfering with production and plant efficiency . Therefore , it cannot be held that it was adopted and enforced without any regard to business necessity for the purpose of impeding employees' self- organization efforts by interfering with , restraining , and coercing them when em- ployees were leaving their jobs to solicit union membership of working employees. This is precisely what happened . Again the test is whether a presumptively valid rule was discriminatorily applied , and the burden of proof was on the General Counsel to prove otherwise . He did not sustain that burden . It is elementary law that where two or more possible inferences may be equally drawn , one of legality and the other illegal , the legal inference must be drawn as the motivation of the Act. With reference to the contention that the rule was enforced against employees while super- visors openly campaigned against the Union , the Board recently held in Nutone, Incorporated (supra ), that : "Valid plant rules against solicitation and other forms of union activity do not control an employer 's actions . Management prerogative certainly extends far enough so as to permit an employer to make rules that do not bind himself." Upon the basis of the foregoing findings of fact , and upon the entire record in the case , I make the following: CONCLUSIONS OF LAW 1. Respondent , Avondale Mills, is engaged in commerce within the meaning of Section 2 ( 6) and (7) of the Act. 2. Textile Workers Union of America , CIO, is a labor organization within the meaning of Section 2 (5) of the Act. 3. By interrogating its employees concerning their union sentiments and activities, soliciting employees to withdraw their membership cards from the Union , threaten- ing to close down the plant if the Union came in, and threatening to take out certain benefits, the Respondent interfered with, restrained , and coerced its employees in the exercise of the rights guaranteed in Section 7 of the Act, and thereby engaged in unfair labor practices within the meaning of Section 8 (a) (1) of the Act. 4. The Respondent has not engaged in unfair labor practices within the meaning of Section 8 (a) (3) of the Act. 5. The aforesaid unfair labor practices are unfair labor practices affecting com- merce within the meaning of Section 2 (6) and (7) of the Act. [Recommendations omitted from publication.] Trade Winds Company, Inc. and American Federation of Labor- Congress of Industrial Organizations ,' Petitioner . Case No. 10-RC-3320. March 20,1956 DECISION AND DIRECTION OF ELECTION Upon a petition duly filed under Section 9 ( c) of the National Labor Relations Act, a hearing was held before Philip B. Cordes, hearing officer . The hearing officer's rulings made at the hearing are free from prejudicial error and are hereby affirmed? 1 The AFL and CIO having merged subsequent to the filing of the petition in this case, we are amending the identification of the Petitioner accordingly. 2 The hearing officer referred to the Board the Employer 's motion to dismiss the peti- tion The motion alleges , In substance , that (1) the Petitioner is not a labor organiza- tion for the purposes of "collective bargaining ," and (2 ) if the Petitioner wins the elec- tion, there may be a local established at the time of certification , which may not be in compliance Contrary to the Employer 's contention , it is well established that the Peti- tioner is a labor organization within the meaning of the Act. .Sherold Crystals, Inc., 104 NLRB 1072-1073; Glass Fiber Moulding Company, 104 NLRB 383 , 385. As there is presently no local of the Petitioner admitting the employees Involved in this proceeding to 115 NLRB No. 126. 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