Bell Bakeries, Inc.Download PDFNational Labor Relations Board - Board DecisionsFeb 8, 1960126 N.L.R.B. 522 (N.L.R.B. 1960) Copy Citation 522 DECISIONS OF NATIONAL LABOR RELATIONS BOARD APPENDIX C -38 37 -36 -35 -34 30 05 3318 -33 -32 -31 -30 -29 -28 -27 -26 -25 24 -23 -22 25.26 2178 -21 -26 Bell Bakeries, Inc. and Local Union No. 361, The American Bakery and Confectionery Workers' International Union, AFL-CIO. Case No 12-CA-844 February 8, 1960 DECISION AND ORDER On September 10, 1959, Trial Examiner Owsley Vose 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 126 NLRB No 63 BELL BAKERIES, INC. 523 take certain affirmative action, as set forth in the copy of the Inter- mediate Report attached hereto. Thereafter, the Respondent and the General Counsel filed exceptions and supporting briefs to the Inter- mediate Report. Pursuant to the provisions of Section 3(b) of the Act, the Board has delegated its powers in connections with this case to a three- member panel [Members Rodgers, Bean, and Fanning]. The Board has reviewed the rulings of the Trial Examiner at the hearing and finds that no prejudical error was committed. The rul- ings are hereby affirmed. The Board has considered the Intermediate Report, the exceptions and briefs,' and the entire record in the case, and hereby adopts the findings, conclusions, and recommendations of the Trial Examiner, with the following modifications? 1. We agree with the Trial Examiner that the Respondent violated Section 8(a) (3) of the Act by discharging employee Trotter and re- fusing to reinstate him because Trotter was engaged in organizational activity on behalf of the Union. Trotter took a very active part in the organizational campaign of the Union which began on February 17, 1959. He disseminated in- formation about a union meeting to other employees, and was observed by company officials while talking with the union organizers. Fur- thermore Trotter frankly admitted his activities to Superintendent Aulgur in his interview on February 20, 1959, when he informed Aulgur that he had spoken with the union organizers and had been shown the union contract. This interview took place in Aulgur's office in the morning of February 20, 1959, at which time Aulgur in- formed Trotter that "He was doing a good job." That same after- noon, however, Aulgur called Trotter into his office and told him he was being laid off immediately because of "economic necessity." Aulgur's contention that this layoff was not a result of Trotter's union activities, but was due to the request of Respondent President Connolly directed to all plant superintendents to reduce labor costs, is not supported by Aulgur's conduct or statements. He stated that upon receipt of Connolly's letter on February 18, 1959, he reviewed his operations and "Found out I was overstaffed in my shipping-room. I reduced my force by two people and Trotter was one of them." The other employee referred to (Peters) was transferred to the transport department. Yet, a third employee, Baudendistiel, who did work during the last week Trotter was employed, remained out sick for the following 2 weeks. At this point Aulgur had his force reduced by three employees and should have recalled Trotter, as he had promised I The Respondent 's request for oral argument is denied as the record and the exceptions and briefs , adequately set forth the positions of the parties. 2 As no exceptions were filed to the Trial Examiner's finding that the Respondent did not violate Section 8 (a) (1) of the Act in sponsoring and circulating the antiunion peti- tion, we adopt the finding pro forma. 524 DECISIONS OF NATIONAL LABOR RELATIONS BOARD him when he was laid off. Instead, Aulgur transferred two other em- ployees into the department, one of whom had less seniority than Trotter. Aulgur admitted that this employee was "extra help hired in." Considering this conduct of Aulgur along with his antiunion sentiments as shown by his remarks directed to various employees in- terviewed in his office, it is clear that Aulgur merely used President Connolly's request to reduce labor costs as a pretext to discharge the spearhead of the union campaign.' 2. We further agree with the Trial Examiner that Respondent violated Section 8(a) (1) of the Act in conducting employee inter- views and questioning employees about the Union. While the Trial Examiner made a general finding, and did not specifically mention what interviews constituted a violation, he did appear to hold only three of such interviews to be a violation when he referred to three such interviews as `being supported by credible testimony." An examina- tion of the Intermediate Report, however, reveals that the Trial Examiner credited the testimony of employees Jordan, Green, Trotter, Foxx, and McGuire as they testified to seven separate interviews. All of these interviews were very similar in nature and purpose, and involved Aulgur's and Connolly's attempts to ascertain the respective employee's feeling toward the Union, as well as an effort to convey to them Aulgur's and Connolly's antiunion position. They were merely met by a general denial on behalf of the Respondent, and there is no reason to treat them any differently. All of these interviews were in violation of Section 8 (a) (1) of the Act, and we so find. 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, Bell Bakeries, Inc., Fort Pierce, Florida, its officers, agents, successors, and assigns, shall : 1. Cease and desist from : (a) Discouraging membership in Local Union No. 361, The Amer- ican Bakery and Confectionery Workers' International Union, AFL- CIO, or in any other labor organization of their employees, by laying them off 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 as authorized by Section 8(a) (3) of the Act, as modified by the Labor-Management Reporting and Disclosure Act of 1959. 8In the section , 2. The Respondent's violation of Section 8(a) (3), of the Intermediate Report, the Trial Examiner states, "The fact that the Respondent was able to achieve greater operating efficiency, which is what the figures relied on by the Respondent show, does not necessarily establish the economic necessity for a layoff, but merely that there was room for improvement in its operating efficiency." We find it unnecessary to adopt this statement. BELL BAKERIES, INC. 525 (b) Threatening their employees with reprisal if they engage in union activities or questioning their employees as to their union activities in a manner constituting interference, restraint, or coercion in violation of Section 8 (a) (1) of the Act. (c) In any other manner interfering with, restraining, or coercing their employees in the exercise of the right of self-organization, to form labor organizations, to join or assist Local Union No. 361, The American Bakery and Confectionery Workers' International Union, AFL-CIO, or any other labor organization, to bargain collectively through representatives of their own choosing, and to engage in other concerted activities for the purpose of collective bargaining or other mutual aid or protection as guaranteed in Section 7 of the Act, or to refrain from any and all such activities, except as authorized in Section 8(a) (3) of the Act, as modified by the Labor-Management Reporting and Disclosure Act of 1959. 2. Take the following affirmative action which the Board finds will effectuate the policies of the Act : (a) Offer to Tommy Trotter immediate and full reinstatement to his former or substantially equivalent position, without prejudice to his seniority or other rights and privileges, and make him whole for any loss of pay suffered as a result of his layoff in the manner set forth in the section of the Intermediate Report entitled "The Remedy." (b) Post at its Fort Pierce, Florida, plant, copies of the notice attached hereto marked "Appendix." 4 Copies of said notice, to be furnished by the Regional Director for the Twelfth Region, shall, after being duly signed by an authorized representative of the Re- spondent, be posted by the Respondent immediately upon receipt thereof, and maintained by it for a period of 60 consecutive days thereafter, in conspicuous places, including all places where notices to employees are customarily posted. Reasonable steps shall be taken by the Respondent to insure that said notices are not altered, defaced, or covered by any other material. (c) Preserve and, upon request, make available to the Board or its agents, for examination and copying, all payroll records, social se- curity payment records, timecards, personnel records and reports, and all other records necessary to analyze the amounts of backpay due and the rights of employment under the terms of this Order. (d) Notify the Regional Director for the Twelfth Region, in writ- ing, within 10 days from the date of this Order, what steps have been taken to comply herewith. IT Is FURTHER ORDERED that the complaint be and it is hereby dis- missed insofar as it alleges that the Respondent violated Section 8 (a) (1) of the Act by sponsoring and circulating an antiunion petition. 4In the event that this Order is enforced by a decree of a United States Court of Appeals, there shall be substituted for the words "Pursuant to a Decision and Order" the words "Pursuant to a Decree of a United States Court of Appeals , Enforcing an Order." 526 DECISIONS OF NATIONAL LABOR RELATIONS BOARD APPENDIX NOTICE To ALL EMPLOYEES Pursuant to a Decision and Order of the National Labor Relations Board, and in order to effectuate the policies of the National Labor Relations Act, we hereby notify our employees that : WE WILL NOT discourage membership in Local Union No. 361, The American Bakery and Confectionery Workers' International Union, AFL-CIO, or in any other labor organization, of our employees by laying them off or in any other manner discrimi- nating against them in regard to their hire or tenure of employ- ment, or any term or condition of employment, except as authorized by Section 8 (a) (1) of the Act, as modified by the Labor-Management Reporting and Disclosure Act of 1959. AVE WILL NOT threaten our employees with reprisals if they engage in union activities or question our employees as to their union activities in a manner constituting interference, restraint, or coercion in violation of Section 8(a) (1) of the Act. WE WILL NOT in any other manner interfere with, restrain, or coerce our employees in the exercise of the right of self- organization, to form labor organizations, to join or assist Local Union No. 361, The American Bakery and Confectionery Work- ers' International Union, AFL-CIO, or any other labor organi- zation, to bargain collectively through representatives of their own choosing and to engage in other concerted activities for the purpose of collective bargaining or other mutual aid or protection as guaranteed in Section 7 of the Act, or to refrain from any and all such activities, except as authorized in Section 8(a) (3) of the Act, as modified by the Labor-Management Reporting and Dis- closure Act of 1959. WE WILL offer to Tommy Trotter immediate and full reinstate- ment to his former or substantially equivalent position, without prejudice to his seniority or other rights and privileges, and we will make him whole for any loss of pay suffered as a result of his layoff. All our employees are free to become or remain or to refrain from becoming or remaining members of Local Union No. 361, The Ameri- can Bakery and Confectionery Workers' International Union, AFL- CIO, or any other labor organization. BELL BAKERIES, INC.. 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. BELL BAKERIES, INC. INTERMEDIATE REPORT 527 STATEMENT OF THE CASE This proceeding, with all parties represented, was heard before the duly designated Trial Examiner in Fort Pierce, Florida, on July 1-10, 1959, on complaint of the General Counsel and answer of Bell Bakeries , Inc., herein called Respondent. At the conclusion of the testimony of the General Counsel, the Respondent moved for dismissal of the complaint upon the grounds that the General Counsel had failed to prove the violations alleged . Decision was reserved on this motion and it is dis- posed of in accordance with the findings and conclusions herein. Counsel for the General Counsel presented oral argument and counsel for Respondent and the Union filed briefs. The issues litigated in the proceeding were whether the Respondent 's layoff of Tommy Trotter violated Section 8(a) (3) of the Act, and whether certain other acts and conduct of the Respondent constituted interference , restraint, and coercion in violation of Section 8 (a)( 1 ) of the Act. Upon the entire record, and from my observation of the witnesses, I hereby make the following: FINDINGS AND CONCLUSIONS I. THE BUSINESS OF THE RESPONDENT The Respondent, a Delaware corporation , is a wholly owned subsidiary of Liberty Baking Company , of New York City.' The Respondent operates , among others, a plant at Fort Pierce, Florida , where it is engaged in the production and sale of bread and bakery products . In the course of its operations during the calendar year 1958 , the Respondent purchased and received directly from points outside the State of Florida , goods valued at more than $50 ,000. I find that the Respondent is engaged in commerce within the meaning of the Act and that the assertion of jurisdic- tion is warranted. II. THE LABOR ORGANIZATION INVOLVED Local Union No. 361, The American Bakery and Confectionery Workers' Inter- national Union, AFL-CIO, herein called the Union, is a labor organization within the meaning of Section 2(5) of the Act. III. THE ALLEGED UNFAIR LABOR PRACTICES A. The sequence of events 1. The commencement of the Union 's organizing drive The Union represents certain production employees at the Respondent 's St. Peters- burg, Florida , plant. The headquarters of the Union are at nearby Tampa. James Driscoll, an employee of the Respondent 's St. Petersburg plant, was the vice presi- dent of the Union. In response to a request from several Fort Pierce employees that he help them form a union , Driscoll obtained a leave of absence from the St . Petersburg plant and came to Fort Pierce. Accompanied by Joseph DiSalvo, Driscoll looked up Robert Aulgur, the superintendent of the Fort Pierce plant, on the day of their arrival, Tuesday, February 17, 1959. They explained to Aulgur in his office that day that they had been asked by Employees for help in organizing a union and that that was their purpose in coming to Fort Pierce. That same day Aulgur held a meeting of the supervisors at which he asked them, as he testified , "to let this be an open minded campaign " and instructed them that the employees were to be free to take whatever action they desired with respect to the Union. During the lunch hour on February 18, Driscoll had a discussion with Tommy Trotter, one of the Fort Pierce employees, at Mom's Kitchen , a restaurant next door to the plant. After inquiring about working conditions at the plant, Driscoll showed Trotter the contract with the Union covering the Company 's St. Petersburg plant, and mentioned the benefits to be derived from organizing . During the conversation Trotter agreed to show Driscoll where the employees lived and to do everything he could to help. 1 Liberty Baking Company is, and for some months past has been , undergoing reorgani- zation under Section 10 of the Bankruptcy Act. However , the Respondent Itself Is not In bankruptcy , and the bankruptcy proceedings involving its parent company do not appear to present any issues for disposition in this case. 528 DECISIONS OF NATIONAL LABOR RELATIONS BOARD Upon his return to the Bakery after this conversation on February 18, Trotter talked to several employees about the advisability of having a union at the plant, men- tioning the added benefits which he thought a union could obtain for them. That night , February 18, Trotter met with Driscoll at his hotel room and planned a meeting of the employees for Saturday morning, February 21. About this same time Trotter gave Driscoll the names of the employees and showed him where they lived. In the following days, Trotter spoke with various employees in the plant about the meeting scheduled for Saturday morning. Among those present when Trotter discussed the coming union meeting where James Morris, Tommy Mann, and Richard Butz, who, as stated below, subsequently were active in circulating an anti- union petition in the plant. 2. Superintendent Aulgur's talks with the employees Commencing on Wednesday morning, February 18, Superintendent Aulgur sum- moned the employees, individually and in groups, into his office. To each of the groups he made substantially the same talk. Aulgur first said that organizers for the Union would probably be around to talk to them and then remarked that "we were one big happy family, we would like to keep it that way." After reminding them that the Company paid higher wages than any bakery in the South, Aulgur advised that they should discuss the matter thoroughly among themselves and think the problem out. The foregoing is the testimony of Delbert McGuire, whose testi- mony is relied on by the Respondent in its brief to the Trial Examiner. According to Aulgur, the following occurred at the group meetings: When the group would come in I would tell them what was taking place; that there were a couple of organizers that would be out to organize our plant. I named them. Jimmy Driscoll that I knew and were [sic] friendly with him. That they would approach-he would approach them, to feel free to talk about it, discuss it [with] him and to come in and ask questions in this office. "Feel free to talk to one another. Don't make any quick decisions , or don't be swayed either way until you've looked at the whole question." While Aulgur denied mentioning any benefits at any of the group meetings, I find, upon the basis of the testimony of Delbert McGuire which I credit, that Super- intendent Aulgur made the additional comments set forth in the preceding paragraph. Aulgur called a few employees into his office individually. To these employees Aulgur made additional remarks. Among the first so summoned to Aulgur's office was Raymond Foxx, who was called in on Wednesday morning, February 18. Ac- cording to Foxx's testimony, which is undenied in this respect, Aulgur said to him on this occasion, "I personally can't see where the union would help you very much because the first thing, they charge you an initiation fee of approximately 20, 25 dollars, and they always have an assessment maybe five dollars here and ten dollars there, which would add up into the money." Aulgur then mentioned the fact that he had given individual employees raises in the past without causing any hard feelings. However, if the Union got it it "would ruin the relationship between no-between management and the employees. They have always enjoyed a good relationship; and if the union came in, then they couldn't converse or correspond between each other. They'd be directed through the union." 2 Willy Jordan was called into Superintendent Aulgur's office several days after the union drive started. Aulgur asked him, so Jordan testified, which side he was on, "the union side or the company side." Jordan told him that he was not on either side. Aulgur also inquired which side John Horn, another employee, was on. Jordan replied that he did not know. After further discussion, during which Aulgur commented that he was a good worker and asked him to help him out, Aulgur told him that he was completely free to do whatever he wanted about joining a union. About the same time Don Green and Otis Peters were summoned to Superin- tendent Aulgur's office. Green testified that Aulgur asked both men if they were in favor of the Union. Both men said "No." Aulgur then asked "why we should 2 The Respondent urges that Foxx's testimony should be disregarded in Its entirety in view of his misleading testimony With regard to not having received money from the Union. Because of Foxx's lack of candor in this regard I have considered the question of Foxx's credibility very carefully. On the whole, Foxx 'impressed me as generally attempting to be precise in his testimony and to be careful not to overstate matters. He gave sufficient factual detail to lend conviction to his testimony. His account of Aulgur's conversation is consistent with the entire course of events in this case. Under the cir- cumstances, I credit Foxx's testimony. BELL BAKERIES, INC. 529 let labor come in and have those Cadillacs, stuff like that." At the same time Aulgui told Green that the men should discuss the union question freely in the plant, that they were free to make up their minds what to do.3 On February 20, Tommy Trotter and Bill Lundy were called into Superintendent Aulgur's office. Trotter testified in detail concerning their conversation with Aulgur on this occasion. Aulgur opened by saying that they "probably know there is a couple of men trying to organize the plant ." Trotter replied , "I know it, because I seen him the other day. The guy showed me the contract." Aulgur then went on to review the Company 's progress in the 5 years he had been at Fort Pierce. He mentioned how the Company had raised wages in the past 5 years, asserted that the Company's vacation plan was better than any employer 's in the area , and reminded them of the Respondent's policy of sharing the work during the slack summer sea- son to avoid layoffs. Aulgur told Lundy that he wastraining to be an operator on the wrapping ma- chine and that he would start as an operator the following Sunday. To Trotter, Aulgur said that he was doing a good job and that he wanted him to learn how to set up the machine he was helping on so .that later on he could qualify as an operator. Although Aulgur stated that they were free to join the Union and that they should make up their minds after looking at all the facts and discussing it among themselves, he also said, according to Trotter's testimony which I credit, that he had worked in union shops himself and that if they had ever belonged to a union they would not want it any more, that "if we'd get any raise at all if the Union got in, that it would take quite a bit more than that to pay for our monthly union dues." Aulgur added that- we'd just be throwing our money away. We'd have to pay in the dues and men like Jimmy Hoffa would steal our money . We'd just be paying our money so that the bigshots could sit in the air conditioned offices, wall-to-wall carpeting, drive big Cadillacs. Aulgur also warned that if the Union came in the Company would abandon its policy of sharing the work in the summer slack season , which would result in lay- offs, and that overtime would be curtailed.4 3. The layoff of Tommy Trotter a. The circumstances of the layoff Shortly before Trotter finished his shift on Friday, February 20, Richard Butz, one of the shipping clerks, informed him that that day was his last day at the plant. When Trotter asked why, Butz stated that "they had to lay off a couple . .. they had to cut expenses," and added that if he wanted to know anything further, to talk to Superintendent Aulgur. Trotter went to Aulgur, explained that Butz had said he was laid off, and inquired why. Aulgur said, "Just like he told you. We had to cut expenses ." Trotter asked whether he would be called back. Aulgur answered "Yes." Whereupon Trotter said, "Is my work okay?" Aulgur replied, "Yes, the work is fine, and they'd call us back as soon as possible." As indicated above, Trotter was laid off without notice, and was not permitted to complete the workweek which ended on Saturday. Delbert McGuire, who was laid off on March 15, 1959, in the course of "seasonal layoffs," was given a week's notice. 3 Aulgur denied generally questioning any employees about the Union. Both Jordan and Green , although called by the General Counsel , appeared reluctant to testify adversely to the Respondent , although Jordan , who was still in the Respondent 's employ, exhibited the greater reluctance. They impressed me as attempting to tell the truth. Undenied testimony as to Aulgur 's comments to the men shows that he was opposed to the Union. Questioning of Jordan and Green concerning union matters would be consistent with such an attitude . I credit Jordan ' s and Green 's testimony related above. 4 Superintendent Aulgur specifically denied threatening that overtime would be curtailed if the Union came in . He also generally denied making any threats of reprisals on account of the Union However, Augur was not questioned about the remainder of Trotter's testimony above set forth Trotter impressed me as attempting to relate in as great detail as he could remember , and without exaggeration , Aulgur's own words in this lengthy conversation Under all the circumstances , and in view of Aulgur's hostility to ,the Union which is revealed in the undenied portions of Trotter 's testimony , I credit Trotter 's testimony concerning Aulgur's threats of layoffs and curtailment of overtime if the Union came in. 554461-60-vol. 126-35 530 DECISIONS OF NATIONAL LABOR RELATIONS BOARD Within 3 days after Trotter's layoff, Mary Hall, who was hired after Trotter, was transferred from the roll packing department to the bread wrapping department in which Trotter had been employed.5 Hall worked in this department at least 2 weeks. At the same time, Florence McGee was permanently transferred from roll packing to breading wrapping 6 As the Respondent experiences considerable turnover of employees at its plant,7 transfers of employees from one department to another were common. General Counsel's Exhibit No. 4-A shows that during the period beginning January 1 and ending with February 22, 1959, seven employees (not including Mary Hall, above referred to) were transferred from one department to another, an average of about one transfer a week. General Counsel's Exhibit No. 4-D shows two other tempo- rary transfers within the next 2 weeks, for 2 days and 4 days, respectively. After Trotter's layoff, the Respondent retained in its employ in other departments seven employees of less seniority than Trottor. This figure does not include Joe White, who was hired for a night shift job, or Paul Weilbacker, who was lured for a split shift 8 In the weeks immediately following Trotter's layoff, due to the amount of over- time required to handle the work to be done, a larger percentage of the Respondent's bread wrapping work had to be paid for at the premium rates paid for overtime 9 than would have been the case had the Respondent kept a nine-man complement of workers in the wrapping department.is Consequently, the Respondent's payroll in the wrapping department was actually higher after the layoff of Trotter than it would have been had the Respondent retained a nine-man force in the wrapping department. Thus, General Counsel's Exhibit No. 4-C, which was prepared by the Respondent, shows the following: Hours Worked Bread Wrapping Department Week ending Total hours Overtime No. of employees 2-14-59 450 96 9 2-21-59 451 113 9 2-28-59 448 128 8 3- 7-59 11 427 107 12 8 The Respondent's wage rates for the wrapping department range from $1.20 per hour to $1.65 per hour. Under this schedule, taking the lowest figure, $1.20 per hour, as the average hourly wage rate in the wrapping department, the Respondent's wrapping department payroll for the week ending February 28, 1959, with eight employees working 448 hours, including 128 hours overtime at time and a half, amounted to at least $614.40 With nine employees, 40 hours more straight time, and 40 hours less overtime, the Respondent's payroll would have come to $590 40. In the following week, it similarly would have been more economical for the Respond- ent to operate the wrapping department with nine employees than eight because of s This is shown in General Counsel's Exhibit No. 4-C, which was prepared by the Respondent e DicGee had considerably more seniority, on a plantwide basis, than Trotter 7 There being no reservoir of experienced bakery help in Fort Pierce, the Respondent of necessity was forced to hire inexperienced workers and attempt to train them If it was unsuccessful in this it had to let them go. From January 1 through February 22, 1959, Respondent hired nine new employees. During this same period seven employees were separated for one reason or another, including Trotter and Curren 8 About' 3 weeks after he had been hired, Trotter was transferred, to the day shift in the wrapping department from the night shift in the bread makeup department at his own request. The grounds for his request were that his doctor had advised him to avoid night work because of stomach ulcers and a heart murmur condition from which he suffered 9 The Respondent paid time and a half for overtime 10 The net result of Trotter's layoff and all the transfers that took place at the same time was a reduction-in-force in the staff of the wrapping department of from nine to eight 11 This figure reflects a deduction of 28 hours for "breakdown" which is otherwise unexplained in the record The houis actually worked by employees 'assigned to this department during this week totalled 455 19 This includes J. \Tickers, Jr, who worked 4 days 04 hours) in the wrapping depart- ment during this week (see General Counsel's Exhibit No. 4-D) BELL BAKERIES, INC. 531 the elimination of 40 hours of the higher-paid overtime. Thus for the week ending March 7, using the same average hourly figure , eight employees putting in 427 hours, including 107 hours of overtime , were paid at least $576 . 60. Nine employees putting 427 hours would have received only $552.60. b. The Respondent 's contentions and the supporting evidence The Respondent contends that Trotter was laid off for economic reasons and that he was selected on a seniority basis. In support of its claim of economic necessity the Respondent points to memorandums sent by President Conolly to all plant managers on February 16 requesting a reduction in expenses at each plant. The memorandum for the Fort Pierce plant , which was received by Superintendent Robert Aulgur on February 18, contains the following longhand pencilled notation in the margin: "Bob , Pis get into this fast. Al ." The pertinent part of the text is as follows: I would ask that each of you get into the act with your Production Manager and cut expenses . 3 do not mean by this that we should jeopardize our preven- tive maintenance programs because sound operations are based on it. I do mean that you must renew every requisition for supplies or parts with an eye toward economy and hold up that which is feasible. I am confident that with effort each of you can reduce labor costs by sever,.1 men. I realize vacations are coming up but we have no choice and I need your help. Schedule your schedules and let's save 1% variable costs overall- it can be done with effort from each of you. Superintendent Aulgur, who was responsible for Trotter 's discharge , testified that after receiving the memorandum from President Conolly, he investigated and found out that he was overstaffed in the shipping room and so he reduced his force by two employees . Tommy Trotter was one, and the other was George Curren, whose termination is not here involved. According to Aulgur, "Tommy Trotter had been moved from the roll department into the shipping room just recently ; so we just placed him with the party that was back on the machine , and Tommy was let go." 13 Later Aulgur explained, I made my first move of the two men in the shipping room, the two newest men in the shipping room that was on a trial period I picked up the slack with other help in the shipping room to take over their positions. The Company 's policy in a reduction -in-force, so Aulgur testified , is to select the man having the lowest seniority if his ability is believed to be such that there is little hope of training him in another capacity . In a written statement of policy issued by the Company on January 12, 1959, the following is stated with respect to "SENIORITY": "Prevails in cases of lay off, vacation choice and promotions. (Management determines qualifications for promotion)." Aulgur testified that seniority by departments , although not specifically mentioned in the statement, was "understood ." Trotter, as Aulgur further testified, had the least seniority in the wrapping department of any employee on the day shift . Aulgur supported his testimony by referring to a document prepared by the Respondent which was intro- duced into evidence by the General Counsel as General Counsel 's Exhibit No. 4-A. This document shows that only Joe White had less seniority than Trotter in the wrapping department at the time of his termination and that White was employed on the night shift.14 The Respondent adduced additional evidence relating to its claim that the layoff was motivated by economic considerations . Exhibits prepared by the Respondent show that , comparing the week ending February 14, which was before the union drive commenced , with the week ending March 7, which was 2 weeks after the layoffs, in the wrapping department the gross sales for the former period were $78,294 and the production hours were 498 (on straight -time basis , i.e., taking into account overtime paid, but making an adjustment in the number of hours worked to reflect the time and a half premium paid for overtime ), whereas in the latter period the gross sales of the entire plant were $80,226 and total production hours in the wrapping department were 481. In the shipping department the adjusted 13 Trotter was listed under "Wrapping" and Ourren under "Shipping" in a list prepared by the Respondent and introduced into evidence as General Counsel's Exhibit No 4-A. Apparently for reduction -in-force purposes Superintendent Aulgur regarded the wrapping department as part of the shipping room 14 For the reasons stated above , Trotter was not available for night work. 532 DECISIONS OF NATIONAL LABOR RELATIONS BOARD hourly figure for the former period was 597, and 539 for the latter period , although the gross sales figure during the latter period was the higher figure stated above. Respondent 's Exhibit No. 2 shows that for the week ending February 21, 1959, the week in which Trotter was laid off, the Company's total sales amounted to $78,294 and that breaking these sales down for production man-hours , the sales worked out at $18.30 worth of sales for each man -hour of work for the plant as a whole. In the following weeks , as Respondent 's Exhibit No. 2 disclosed , after a further curtailment of production staff , the sales figure per man -hours of work in all departments increased to $19.10 for the week ending March 7 , $ 19.20 for the week ending March 28, and $19.70 for the week ending April 4. 4. President Conolly's conversations with employees President Al Conolly of the Respondent was in New York most of the week the organizing activities commenced . He returned Friday evening , and the next morning, February 21, Superintendent Aulgur brought him up to date on recent events. The next day Conolly called Raymond Foxx into his office.15 Conolly, according to Foxx's undenied testimony , told him that he was very sorry that he was so late in giving him his birthday present (his birthday was on November 27), said he had been busy on the road . Conolly then brought up the subject of the Union, said that "he didn't see where the union could help us very much." Conolly pointed out that our pay rates were equal to or above those in the area. He added that the Union could not get the employees a raise, as they had just received one, and that the Union could not get any more out of the Company than it could afford. Conolly then stated that "the union was draining St. Petersburg and that he was trying to break that union up over there." When Foxx questioned whether it was "possible," Conolly explained that "he would do it the same way they try to or- ganize; that he'd get 51 percent of the people to sign that they didn 't want the union and he'd take it before the National Labor Board."16 During this conversation Conolly mentioned various improvements which the Company was planning , an automatic oven , another divider , new proof box, and an automatic flour bin. He explained that the Company was doing these things in an effort to get the employees away from the heat.17 About the same time , Conolly summoned Delbert McGuire to his office. As in the case of Foxx, Conolly apologized for the Respondent 's delay in giving him a birthday present , and explained that he had been pretty busy. Conolly then said, according to McGuire 's testimony , "You know they're trying to get a union in here" and asked McGuire as to his "viewpoints" on the subject . Conolly, after remarking that "they were a plenty happy family and would like to keep it in that category," announced that they were going to get another hopper and a proofer, and that they were planning on pay increases and better vacations.18 5. The Respondent 's letters to the employees of February 25 and March 1 On February 25 Conolly, the Respondent's president , had mailed to its production employees a mimeographed letter bearing his signature which discussed the "union business ." In it Conolly, after referring to the employees ' right "to join or not to join the union ," stated, among other things, I will not discriminate against you nor anyone else because of union activities. Nothing is going to change our idea of fair play and honest dealings with our men which we have had at this plant for over 25 years and which you know from me for the past 6 years. 1 At the invitation of Foxx, Superintendent Aulgur and Office Manager Chaney had attended a meeting of the men on Foxx's shift 'at Foxx's house on Thursday, February 19. Foss apparently hoped that Aulgur would make some offer as to employee terms and conditions of employment at this meeting , but he did not do so. The incident, however, made it evident to the Respondent that Foxx was active in the union movement. 10 This testimony is not denied by Conolly. 19 This testimony is not specifically denied. Conolly denied ever having promised employees "benefits directly or indirectly , if they would not support the union." 1s I do not credit Conolly 's general denial that he questioned employees about union matters I note that counsel for the Respondent apparently regarded McGuire as an unbiased witness , for he commented in his brief to the Trial Examiner that McGuire "bore no ill will towards the company." BELL BAKERIES, INC. 533 Then , after a discussion of the right to refrain from union membership and the close, neighborly relationship which had previously existed in the plant , President Conolly continued as follows: Local 361 is dominated and controlled by Latin workers in Tampa. I can't believe that they really have your personal well-being at heart . You would have no active voice in that organization and you would be controlled and dominated by it. I don 't see how that would help either you or me. I also want to point out one fact which is sometimes overlooked. If you bakers select a Tampa dominated union to represent you, then that union represents all of you bakers, whether you are a member of the union or not. In other words , the union becomes the agent and bargaining representative for you and would stand between you and the company in bargaining with the company and with me. The relationship between you bakers and the com- pany has always been fair and I appreciate the fact that you have cooperated with us. We have always been able to discuss and work out our difficulties together . It is my personal opinion that the welfare of all of us will be best saved by the continuation of our present relationship. Union representation of you bakers will not benefit the business and if it cannot benefit the business it cannot benefit the employees because you bakers can only receive out of the business what the business can make. This matter is a matter of personal choice by each of you individually in exercising your individual choice. I hope you will look at both sides of the question and determine what is for your own best interest. You presently receive the same or higher rates of pay and have the same or better working conditions and other benefits as bakers operating with com- panies that have union contracts . At the same time, you are not having to pay union dues and assessments which are $4 .00 a month . In other words, from your own viewpoint and the viewpoint of the good of the company, I don't see where you are going to get anything for the money you pay in dues. On March 1 President Conolly sent another letter to the employees . After stating that two employees had threatened employees with violence and had to be discharged, Conolly continued as follows: I want you to know that all of you have certain rights as I wrote you last week. Those are real rights and you will be protected . I know you share my belief that we all work for Dandee-and all of us that work for Dandee enjoy a fine reputation for being outstanding citizens in our town . There is no other group from any company in our town that enjoys a better reputation than our group. We can destroy that reputation if we let a bunch of cubans from Ybor City lead us into violence and threats against one another . They may do that in Ybor City-but we are better folks and better citizens than those Ybor City radicals. I don't want us to be associated , much less dictated to or led by a bunch of people from a place like Ybor City. A place that has a reputation for being the home of gangsters , racketeers , unsolved gangster killings and the Maffia . Lets go about our business as good citizens and act and make our decisions as good citizens. I want to write you again in a few days to show you that your rates of pay and benefits are higher than they are under the bakers union contracts. So you are actually a great deal better off than the bakers in the big cities where it costs so much more to live-and you don't have to pay union dues and be dominated by an Ybor City union to have and enjoy all those advantages. 6. The antiunion petition A document headed "Petition to retain a non-union shop" was circulated in the plant prior to March 1, 1959. It bore the text "We the following undersigned employees of the Bell Bakery of 325 ave. C, Fort Pierce, Fla. hereby petition to keep our shop non-union." After being signed by 64 employees it was left on the desk of President Conolly in his office at the plant. He found it there when he returned to his office on March 1 after a trip to New York. The petition was decided upon and circulated in the plant during the preceding week by Richard Butz, Thomas Mann, Edward Black, Malcolm Baker, James Morris, and possibly others. These employees, so they testified, conceived the idea of the petition in an effort to "bring to a head" a decision regarding the Union. No officials of the Respondent, so far as the record shows, had any part either in the preparation or circulation of the petition. 534 DECISIONS OF NATIONAL LABOR RELATIONS BOARD The General Counsel's contention that the Respondent is responsible for the circulation of the petition rests on the claim that Richard Butz, one of the circulators of the petition and its first signer, was a supervisor in the shipping department. Butz at the time of the circulation of the petition was an hourly paid shipping clerk in the shipping room. At that time there were two other regular shipping clerks on his shift and a new employee who was used part time in shipping and trucking. Herman Aldridge was the salaried supervisor of the shipping room at this time. As a shipping clerk, Butz' principal duty was the making up of orders, i.e., the assembling of the bread and rolls required in the various orders. He also checked the orders put up by the other shipping clerks on his shift. Butz also told the loaders the order in which to load the trucks, and assigned out the trucks. At the time of the events here involved Butz had no authority to hire or fire. As noted above, Butz was the employee who notified Trotter that he was being laid off. Butz recommended the hiring of three employees, two of whom were hired. It was the policy of the Company to encourage employees to suggest good prospects for employment as there was no pool of experienced bakery help in the Fort Pierce area and the plant experienced considerable turnover. On April 5, 1959, Butz was pro- moted to the position of supervisor of the shipping, assuming Herman Aldridge's position. On these facts I am not persuaded that Richard Butz was a supervisor within the meaning of the Act at the time of the events in question B. Analysis and conclusions 1. The violations of Section 8(a)(1) The complaint alleges that the Respondent interfered with, restrained, and coerced its employees in violation of Section 8(a)(1) of the Act by, among other things, sponsoring and circulating an antiunion petition among its employees, and by its president and superintendent interrogating employees concerning the union mem- bership and sympathies of themselves and other employees. According to the testimony of Tommy Trotter, which I have credited, Superin- tendent Aulgur said that if the Union came in overtime would be curtailed and that the Company would abandon its share-the-work policy during the summer slack season, which would result in layoffs. Such threats of reprisals because of the Union constitutes interference, restraint, and coercion in violation of Section 8 (a) (1) of the Act and I so find.19 In my opinion, it is not of controlling significance that Aulgur in his talk with Trotter also said that he was free to join the Union and that he should make up his own mind. The Respondent's conduct as a whole in this case makes it reasonable to infer that it was not sincere in its purported "assur- ances" of a free choice with respect to the Union and that the employees upon hear- ing of Superintendent Aulgur's threats might nevertheless reasonably conclude that they could maintain their support of the Union only at their peril. Cf. Happ Brothers Company, Inc., 90 NLRB 1513, 1574, reversed on other grounds, 196 F. 2d 195; Magnolia Petroleum Company v. N.L.R.B., 200 F. 2d 148, 150 (C.A. 5). Regarding the allegations of unlawful interrogation by President Conolly and Superintendent Aulgur, as noted above, credible testimony establishes that the former questioned one employee concerning his "viewpoint" towards the Union, and the latter interrogated two employees concerning the union sympathies of themselves and other employees. This questioning cannot be viewed apart from the background in which it occurred-the threats of reprisals make to Trotter, one of the most active union supporters, and his subsequent unlawful discharge (infra). In this context I find that the interrogation in which the Respondent's highest officials engaged was violative of Section 8(a)(1) of the Act.20 19 Although the complaint did not specifically allege any threats of reprisals on the part of Superintendent Aulgur as violations of Section 8(a)(1), I find such threats within the scope of the general 8 (a)(1) allegations to the effect that the Respondent "interfered with, restrained and coerced its employees in the exercise of the rights guaranteed by Section 7 of the Act." In any event the issue of Superintendent Aulgur's threats was fully litigated in the proceedings before me. N L R.B. v. Albert Armate, et al., 199 F. 2d '800, 804 (C.A. 7) ; N.L.R.B. v. Roure-DuPont Manufacturing, Inc., 199 F. 2d 631, 633 (CA 2) 20 The Respondent contends that the interrogation here was lawful under the Blue Flash doctrine (Blue Flash Express, Inc., 109 NLRB 591). However, the questioning involved in that case, unlike this case, took place in a background devoid of any unlawful interference with the Union. BELL BAKERIES, INC. 535 As to the allegations of company sponsorship and circulation of an antiunion petition, I conclude that the General Counsel has not sustained his burden of proving that the Respondent was responsible for the activities of the group of employees who conceived and circulated the petition. The General Counsel relies on Richard Butz as the link to the Respondent. It is true that Butz was close to management, as is evidenced by the fact that he was the individual who first notified Trotter of his discharge, and the further fact that he was made a supervisor less than 2 months later. However, I am not persuaded that Butz' activities in connection with the petition were instigated by the Respondent or that his actions in this regard were anything other than those of a rank-and-file employee exercising his rights under the Act. Accordingly, I recommend the dismissal of this allegation of the complaint. 2. The Respondent's violation of Section 8(a)(3) The essential facts relating to Trotter's layoff may be summarized as follows: The union organizers came to town Tuesday, February 17, and the same day in- formed Superintendent Aulgur of their plans to conduct a membership drive. The next day, the 18th, Aulgur commenced his talks with the employees which, as shown above, were weighted against the Union. That same day Aulgur received the memorandum from President Conolly urging all plant managers to try to "cut expenses" land exhorting them to "reduce labor costs by several men." On Friday morning, February 20, Superintendent Aulgur called in Trotter and Lundy for his talk with them. In his talk he sought to sell the men on the advantages of working for the Respondent. He pointed out the wage raises the Respondent had given, the freedom from layoffs enjoyed by its employees, and called their attention to the Company's superior vacation plan. Aulgur told Trotter that he was doing good work and that he wanted to groom him to become an operator on the machine on which he was then acting as a helper. Although Trotter for the past 2 days had been actively supporting the Union, talking with employees about it, meeting with the union organizer, and helping him locate the employees' homes, I find, from the nature of Aulgur's remarks on this occasion, that Aulgur was not then aware of these activities and did not at that time contemplate laying off Trotter that same day. Nevertheless, Aulgur suddenly laid Trotter off at the end of his shift that day, without notice, and without permitting him to finish his workweek. He was told that his work was satisfactory and that he would be called back as soon as possible, but that the Respondent had to cut expenses. Although under the Respondent's own policy seniority was to be observed in making layoffs,21 and transfers from one department were a common practice, this policy was not followed in Trotter's case. The following Monday, only 3 days after Trotter's layoff, an employee of less sen- iority was transferred to his department. At least seven employees in other depart- ments of less seniority than Trotter were retained when Trotter was laid off. Various factors account for Aulgur's abrupt change of attitude towards Trotter. For one ,thing, during his conversation with Trotter and Lundy, Aulgur had become aware of Trotter's interest in the Union, for Trotter admitted to Aulgur on this occasion that he had been talking to the union organizer and had been shown the Union's contract covering the St. Petersburg plant.22 This, I find, was the first time Aulgur acquired knowledge that Trotter was supporting the Union. Another factor which I find contributed to Aulgur's sudden change of heart towards Trotter, was information which Aulgur received during the day concerning Trotter's spreading information in the plant about a union meeting scheduled for the following morning, February 21. Among those to whom he communicated such information were Tommy Mann, Richard Butz, and James Morris, all of whom were opposed to the Union. The latter two were the first two signers of the anti- union petition. Thereafter Butz talked with Aulgur, as is evident from the fact that it was Butz who first informed Trotter of his layoff. In these circumstances, and in view of the whole sequence of events, I infer and find that Butz or one of the others discussed Trotter's activities on behalf of the Union with Aulgur during that afternoon. =The Respondent contends that its seniority policy contemplated seniority by depart- ments. In view of the frequency with which employees were transferred from one department to another and the amount of turnover which the Respondent experienced at its plant, it is scarcely practicable to adhere rigidly to a system of seniority by depart- ments. The Respondent's statement of policy with regard to seniority makes no mention of seniority by departments. In these circumstances I do not credit Superintendent Aulgur's testimony that seniority by departments was "understood." as I do not credit Aulgur's denial of knowledge of Trotter's union activities. 536 DECISIONS OF NATIONAL LABOR RELATIONS BOARD The record does not bear out the Respondent's claim that the wrapping depart- ment was overstaffed. By using one less employee in the wrapping department, the remaining employees in the weeks immediately after Trotter's layoff had to work a greater percentage of overtime hours, which were paid at time and one half. The result was, upon the basis of data furnished by the Respondent, that the Respondent's wrapping department payroll in this period was actually higher using eight employees and more overtime than it would have been using nine employees and less overtime. This circumstance, I find, refutes the Respondent's contention that Trotter's layoff was caused by the need to cut expenses. I have considered the production figures adduced by the Respondent indicating that after the layoff it effected a larger dollar volume of sales with fewer hours of production work in the wrapping department, and that for the plant as a whole the dollar value of sales per man-hours of production time during this period increased from $18.30 worth of sales for the week ending February 21, to $19.70 for the week ending April 4. These figures, however, do not show what the cir- cumstances were which caused President Conolly to decide that economies were imperative. Normally an employer justifies an economic layoff by showing a reduced demand for his products or decreasing profits on his sales. No effort was made in this case to make any such showing. The fact that the Respondent was able to achieve greater operating efficiency, which is what the figures relied on by the Respondent show, does not necessarily establish the economic necessity for a layoff, but merely that there was room for improvement in its operating efficiency. Presumably there is always room for some such improvement. Furthermore, the figures discussed above relating to the payroll in the wrapping department with both eight-men and nine-men staffs establish that it would have been more economical to operate with a nine-man staff than with a smaller staff and more overtime. In view of all the facts of the case, I must reject the Respondent's contention that economic considerations led to the selection of Trotter for layoff. This leaves the question of what were the Respondent's real motives for laying off Trotter. The Respondent's antipathy to the Union is established in the record. President Conolly frankly admitted on the witness stand that his "position has been that a union would be of no benefit to the workers" but that was a matter for the workers to decide. President Conolly's two letters to the employees dated February 25 and March 1 charging the Union with being "dominated and controlled by Latin workers in Tampa" who do not have "your personal well being at heart" clearly indicate that he was opposed to the Union. The credited testimony as to Superin- tendent Aulgur's talks with the employees reveals even greater hostility to the Union. This animosity towards the Union of the Respondent's two highest officials at the Fort Pierce plant is relevant in assessing the Respondent's motives in laying off Trotter. Under all the circumstances, I conclude that Superintendent Aulgur, upon being apprised of Trotter's activities on behalf of the Union, utilized Conolly's memoran- dum regarding a reduction-in-force as a pretext for getting rid of the spearhead of the union movement in the plant, and that Trotter, although purportedly only laid off temporarily, was in effect permanently terminated in violation of Section 8(a) (3) of the Act. N. THE REMEDY Having found that the Respondent has engaged in unfair labor practices I will recommend that it cease and desist therefrom and take certain affirmative action designed to effectuate the policies of the Act. It will be recommended that the Respondent offer Trotter immediate and full reinstatement to his former or substantially equivalent position, without loss of seniority or other rights and privileges 23 and make him whole for any loss of pay he may have suffered by payment to him of a sum of money equal to that which he would normally have earned as wages from the date of the discrimination to the date of the Respondent's offer of reinstatement, less his net earnings during said period, and in a manner consistent with Board policy set out in F. W. Woolworth Company, as At the hearing Trotter testified that as a result of a pinched nerve at the back of his neck, he is subject to convulsions ; that these convulsions occur only in his sleep ; and that by taking two kinds of medicine under a doctor's orders the convulsions were kept under control. Trotter further testified that prior to one instance about a month before the hearing, in which he had forgotten to take the principal medicine, he had not had a convulsion in over a year. 'Under these circumstances, I do not believe that Trotter's susceptibility to convulsions warrants withholding the normal reinstatement remedy in his case. UNITED BRASS WORKS, INC. 537 90 NLRB 289. 1 shall recommend also that the Respondent 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 backpay due under the terms of these recommendations. Since the violations of the Act which the Respondent committed are related to other unfair labor practices proscribed by the Act, and the danger of their commis- sion in the future is reasonably to be anticipated from its past conduct , the preven- tive purposes of the Act may be thwarted unless the recommendations are coexten- sive with the threat. To effectuate the policies of the Act, therefore, it will be recommended that the Respondent cease and desist from infringing in any manner upon the rights guaranteed employees by the Act. 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. Local Union No. 361, the American Bakery and Confectionery Workers' In- ternational Union, AFL-CIO, is a labor organization within the meaning of Section 2(5) of the Act. 2. By discriminating in regard to the hire and tenure of employment of employee Tommy Trotter, thereby discouraging membership in the above-named labor organ- ization , the Respondent has engaged in and is engaging in unfair labor practices within the meaning of Section 8(a) (3) of the Act. 3. By interfering with, restraining , and coercing employees in the exercise of rights guaranteed in Section 7 of the Act, the Respondent has engaged in and is engaging in unfair labor practices within the meaning of Section 8 (a)( I) of the Act. 4. 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.] United Brass Works, Inc. and Sheet Metal Workers Local No. 159, Sheet Metal Workers International Association , AFL-CIO and Harry Baldwin , Robert E. York , Keneth T. Farabee, Tommy Meyers, Buddy F. Robbins . Cases Nos. 11-CA-1430, 11-CA-1354, 11-CA-1355, 11-CA-1393, 11-CA-1393, and 11-CA- 1394. February 9, 1960 DECISION AND ORDER On September 2, 1959 , Trial Examiner David London 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 respect to them. Thereafter, the Respondent filed exceptions to the Intermediate Report. Pursuant to the provisions of Section 3 (b) of the Act, the Board has delegated its powers in connection with this case to a three- member panel [Chairman Leedom and Members Rodgers and Jenkins]. 126 NLRB No. 59. 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