Blumesfeid Theatres CircuitDownload PDFNational Labor Relations Board - Board DecisionsJan 25, 1979240 N.L.R.B. 206 (N.L.R.B. 1979) Copy Citation 206 DECISIONS OF NATIONAL LABOR RELATIONS BOARD Blumenfeld Theatres Circuit, a partnership; Blumen- feld Enterprises, a Division of Cinerama, Inc.; Rox- ie Oakland Theatre, a partnership and Theatrical Janitors Union, Local 121, Service Employees In- ternational Union; International Alliance of Theat- rical Stage Employees, Local 169. Case 32 CA-593 (formerly 20-CA 13540) January 25, 1979 DECISION AND ORDER BY CHAIRMAN FANNING AND MEMBERS JENKINS AND PENELLO On September 20, 1978, Administrative Law Judge Richard D. Taplitz issued the attached Decision in this proceeding. Thereafter, Respondents filed excep- tions and a supporting brief, the Charging Party filed a response, and the General Counsel filed an answer and a brief in support of the Administrative Law Judge's Decision.' Pursuant to the provisions of Section 3(b) of the National Labor Relations Act, as amended, the Na- tional Labor Relations Board has delegated its au- thority in this proceeding to a three-member panel. The Board has considered the record and the at- tached Decision in light of the exceptions and briefs and has decided to affirm the rulings, findings,2 and conclusions of the Administrative Law Judge and to adopt his recommended Order. I Respondents moved that General Counsel's answering brief not be re- ceived. filed, or considered because it allegedly did not comply with the Board's Rules and Regulations. Sec. 102,46(d). Attached to General Coun- sel's answering brief was a copy of his bnef to the Administrative Law Judge which specified the pages of the record and authorities on which he relied. Therefore, we hereby deny Respondent's motion. 2 Respondents have excepted to certain credibility findings made by the Administrative Law Judge. It is the Board's established policy not to over- rule an Administrative Law Judge's resolutions with respect to credibility unless the clear preponderance of all of the relevant evidence convinces us that the resolutions are incorrect. Standard Dry Wall Products. Inc.. 91 NLRB 544 (1950), enfd. 188 F.2d 362 (3d Cir. 1951). We have carefully examined the record and find no basis for reversing his findings. In affirming the finding that BTC and Roxie Partnership are a single employer, we additionally rely on the facts that (I) when Nathan Blumen- feld received Local 169's October 4. 1978. letter regarding the reopened Roxie Theatre, he did not consult his nephew Allan Blumenfeld but instead sent the letter to Respondents' common attorney because, according to Na- than, "I handle all the labor relations for Cinerama Theatres. Allan is not familiar with the labor relations. So I left it up to my self-judgment. Any- thing in regard to labor . .. I didn't think it was necessary [to discuss it with Allan]": Nathan's response to a letter from Local 121 was similar: (2) ac- cording to Nathan. when he and controlling partner Joseph Blumenfeld are absent. Allan runs the office from which the various Blumenfeld businesses are operated: (3) the sixth partnership amendment for BTC reveals that Allan will own a controlling insterest in BTC if he survives the other part- ners: (4) the "hiring" of a new staff for the reopened Roxic consisted of moving the employees and management from the just-closed Blumenfeld Enterprises' T & D Theatre: and (5) even prior to the closing. Nathan. rather than Joseph's son Robert Blumenfeld. handled all personnel matters regarding employees represented b a union 240 NLRB No. 31 ORDER Pursuant to Section 10(c) of the National Labor Relations Act, as amended, the National Labor Re- lations Board adopts as its Order the recommended Order of the Administrative Law Judge and hereby orders that the Respondents, Blumenfeld Theatres Circuit, a partnership, and Roxie Oakland Theatre, a partnership, Oakland, California, their officers, agents, successors, and assigns, shall take the action set forth in the said recommended Order, except that the attached notice is substituted for that of the Ad- ministrative Law Judge. APPENDIX NOTICE TO EMPLOYEES POSTED BY ORDER OF THE, NATIONAL LABOR RELATIONS BOARD An Agency of the United States Government WE WILL NOT refuse to recognize and bargain with International Alliance of Theatrical Stage Employees, Local 169, as the exclusive collec- tive-bargaining representative of our employees employed at the Roxie Oakland Theatre in the following unit: All projectionists employed by the employer- members of San Francisco Theatre Employers Association, excluding all other employees in- cluding guards and supervisors as defined in the Act. WE WILL NOT refuse to recognize and bargain with Theatrical Janitors Union, Local 121, Ser- vice Employees International Union, as the ex- clusive collective-bargaining representative of our employees employed at the Roxie Oakland Theatre in the following unit: All janitorial employees employed by the em- ployer-members of East Bay Theatre Associa- tion, excluding all other employees including guards and supervisors as defined in the Act. WE WILL NOT repudiate our outstanding col- lective-bargaining contracts with those Unions, refuse to honor the terms and conditions of those contracts, withdraw recognition from said Unions, unilaterally modify the terms and con- ditions of employment of employees in said bar- gaining units during the term of those contracts. fail to notify said Unions concerning the tempo- rary closing and the reopening of said theater, or refuse to bargain with said Unions concerning the effects of such closing and the subsequent reopening on bargaining unit employees. BLUMENFELD TH EATRES CI RCUIT 207 WE WILL NOT discharge or otherwise discrimi- nate against any employee in order to avoid our bargaining or contractual obligations with said Unions, or because of the union membership of that employee. WE WILL NOT in any other manner interfere with, restrain, or coerce employees in the exer- cise of rights guaranteed them in Section 7 of the Act. WE WILL. upon request, recognize and bargain collectively with International Alliance of The- atrical Stage Employees, Local 169, and Theatri- cal Janitors Union, Local 121, Service Employ- ees International Union, as the exclusive bargaining representatives of our employees em- ployed at the Roxie Oakland Theatre in the re- spective bargaining units set forth above. WE WILL honor and abide by our outstanding collective-bargaining contracts with said Unions. WE WILL offer the employees in those bargain- ing units who were discharged when the Roxie Oakland Theatre closed on September 6, 1977, immediate and full reinstatement to their former jobs, or, if those jobs no longer exist, to substan- tially equivalent positions, without prejudice to their seniority or any other rights or privileges previously enjoyed. WE WILt. make whole, with interest, the em- ployees in those bargaining units who were dis- charged when the Roxie Oakland Theatre closed on September 6, 1977, for any loss of earnings and other benefits they' may have suffered be- cause of the discrimination we inflicted upon them. WE WILL make whole, with interest, those em- ployees who were hired in said bargaining units after the Roxie Oakland Theatre reopened on September 28. 1977, for any losses that they may have suffered by reason of our failure and refus- al to honor the collective-bargaining agree- ments, including all contributions the Unions would have received in accordance with those agreements. BLUMENFELD THEAt RES CIR(IUII,. A PARTNERSHIP RoxIE OAKLAND THEATRE. A PARTNERSHIP DECISION STATEMENT OF THE CASE RICHARD D TAPLITZ. Administrative Law Judge: This case was heard at Oakland, California, on April 26, 27. and 28. 1978. The charge and first amended charge were filed respectively, on December 5, 1977. and January 9, 1978, by Theatrical Janitors Union, Local 121, Service Employees International Union herein called Janitors Local 121). and International Alliance of Theatrical Stage Employees, Lo- cal 169 (herein called Projectionists Local 169 and herein jointly called the Unions). The complaint, which issued on February 23, 1978, alleges that Blumenfeld Theatres Cir- cuit, a partnership (herein called BTC). Blumenfeld En- terprises, a Division of Cinerama, Inc.2 (herein called BE). and Roxie Oakland Theatre, a partnership (herein called the Roxie Partnership), violated Section 8(a)( 1). (3), and (5) of the National Labor Relations Act. as amended. Issues The primary issues are: I. Whether BTC, BE, and the Roxie Partnership (herein sometimes referred to jointly as Respondents) are a single employer. 2. Whether the Respondents violated the Act by refus- ing to recognize and bargain with the Unions, by closing down the Roxie Oakland Theatre (herein called the Roxie Theatre) and by discharging the employees of that theatre, by refusing to honor their collective-bargaining contracts with the Unions, and by reopening the theatre without re- calling its former employees. All parties were given full opportunity to participate, to produce relevant evidence, to examine and cross-examine witnesses, to argue orally, and to file briefs. Briefs, which have been carefully considered, were timely filed on behalf of the General Counsel and the Respondent. A late-filed brief submitted by the Charging Party has been rejected and will not be considered. Upon the entire record of the case 3 and from my obser- vation of the witnesses and their demeanor, I make the following: FINDINGS OF FACT I THE BUSINESS OF RESPONDENTS BTC is a partnership existing by virtue of the laws of California, with an office and principal place of business in San Francisco, California, where it is engaged in the man- agement of various movie theaters in northern California. During the past year BTC performed services valued in excess of $50,000 for customers within the State of Califor- nia, which customers themselves met one of the Board's jurisdictional standards other than the indirect flow or in- direct outflow standard. The complaint alleges, the answer as amended admits, and I find that BTC is an employer engaged in commerce within the meaning of Section 2(6) and (7) of the Act. I he legal name of that entll 5 is Blumenfeld Iheatres It des business under the name of Blumenfeld heaires Circuit. ' The legal name of that entity is Rlumenfeld Enterprises. It has at times used Blumenfeld Enterprises. a Division of Clnerama. Inc.. as a logo of idennflcatlion Errors in the transcript have been noted and corrected BL UM E NFELD THEATRES CIRC UIT 207~~~~~~~~~~~~~~~~~~~~~~~~~ 208 DECISIONS OF NATIONAL LABOR RELATIONS BOARD The Roxie Partnership is a limited partnership existing by virtue of the laws of California. It owns and operates the Roxie Theatre at 519-17th Street. Oakland, California. The complaint does not allege, nor has the General Coun- sel offered evidence to prove that the Roxie Partnership individually meets the Board's jurisdictional standards. The complaint does allege that the Roxie Partnership is a single employer with BTC and BE. Though BE is named in the complaint as part of the single employer, the General Counsel states in his brief that he seeks no remedy against BE. II. I I.ABOR ORGANIZAIIONS INVOLVED The complaint alleges, the answer as amended admits, and I find that the Unions are labor organizations within the meaning of Section 2(5) of the Act. 111 liit ALLEGED NFAIR LABOR PRACTIC(ES A. Introduction For many years, the projectionists employed at the Rox- ie Theatre were represented by Projectionists Local 169 and were covered by a collective-bargaining agreement. The janitors were represented by Janitors Union Local 121 and also were covered by a collective-bargaining agree- ment. On September 6, 1977, the Roxie Theatre was closed and all of the employees employed there were discharged. The closing took place without any bargaining with the Unions. On September 28, 1977, the theater reopened with all new employees, none of whom belonged to either union. The collective-bargaining contracts are no longer honored. and the Unions are not recognized as the collective-bar- gaining agent of the employees. Much of the testimony in this case went to questions relating to the ownership, leasehold interests, and manage- ment of the Roxie Theatre. For purposes of introduction. the general outline is as follows: The Roxie Partnership owns the building in which the Roxie Theatre is located. The Roxie Partnership leased the building to Cinerama of Northern California, Inc. (herein called Cinerama). a pub- licly held corporation that is national in scope. The lease agreement contained provisions referring to a basic agree- ment between Cinerama and Joseph Blumenfeld, under which Joseph Blumenfeld or his designate was to operate theatres for Cinerama. That operation included all labor relations matters. Joseph Blumenfeld's designate was BTC. Cinerama ordered the closing of the Roxie Theatre and on September 6, 1977, BTC discontinued its operation of the theatre. On October 28, 1977, the Roxie Partnership, which owned the building, reopened the theatre. As is detailed below, there were a great number of interconnections be- tween the Roxie Partnership, Cinerama, and BTC. Allan Blumenfeld is the only general partner in the Roxie Part- nership and, as such, he has sole managerial responsibility. Allan Blumenfeld is also a partner in BTC. He is a son of Joseph Blumenfeld, the principal partner in BTC. Nathan Blumenfeld, who is a partner in BTC, and the brother of Joseph Blumenfeld. is in charge of all labor relations mat- ters for BTC. He was responsible for the collective-bar- gaining contracts covering the projectionists and janitors at the Roxie Theatre. Robert Blumenfeld is the brother of Allan and the son of Joseph Blumenfeld. Hie has his office at the BTC headquarters but until sometime after Septem- ber 6, 1977, he was, according to his testimony, employed by Cinerama to watch over the management of the Roxie Theatre. He reported both to Cinerama and to BTC. De- tails of these and other interconnections are set forth be- low. B. The Entities Involved I. BTC In 1945, four brothers, Joseph, Abe, Nathan, and Jack Blumenfeld, entered into a partnership agreement under which the partnership was to be conducted under the name Blumenfeld Theatres.4 The partners generally refer to the partnership as the Blumenfeld Theatres Circuit and some- times as the Blumenfeld Theatre Company. The partner- ship is referred to herein as BTC to avoid confusion be- tween the Blumenfeld Theatres partnership and theaters t:lat members of the Blumenfeld family operate. Under the original partnership agreement, Joseph Blu- menfeld held a 70-percent interest in the share of profits. Abe Blumenfeld a 20-percent interest, and Nathan and Jack Blumenfeld each a 5-percent interest. The agreement provided that Joe Blumenfeld would be the general manag- er of the partnership and that the remaining partners would discharge the duties and responsibilities assigned to them by him. In the years following the advent of the part- nership, Abe and Jack Blumenfeld died and there were a number of amendments to the partnership agreement. At the times material herein, there were three partners. Jo- seph, Nathan, and Allan Blumenfeld. Allan is the son of Joseph Blumenfeld. Joseph's interest in the share of profits of the partnership is 52-1./2 percent, Nathan's 23-3/4 per- cent, and Allan's 23-3/4 percent. The seventh amendment to the articles of copartnership provides in part that, on the death of Joseph, two-fifths of his interest is to go to his son Xllan and that, on the death of Nathan, one-fourth of his interest will go to his nephew, Allan. Nathan credibly testi- fied that Joseph Blumenfeld is the real boss and oversees everything. BTC administers and manages a large number of theat- ers and other properties. Its offices are at 1521 Sutter Street, San Francisco, (herein called the Blumenfeld Build- ing), a building that it owns. That building is identified by a sign saying "Blumenfeld Enterprises." Nathan Blumen- feld testified that the sign was merely a logo of identifica- tion. 5 Joseph, Nathan, and Allan Blumenfeld maintain their offices at the Blumenfeld Building. Joseph is the managing partner and overall head of BTC. Nathan has a number of the pai Itnership agleem enl pro, ides that the partners v il mutuall co-operate. one with the other. in the management and adminlstrallon of such nlion picture theat;res and other places of allusement as thes ma, pro,,ure the right to 3admnister and manage fromn time to time t)etails concerning he Blumenfeld Enterprises partnership are discussed below BLUMENFELD THEATRES CIRCUIT 209 duties, including those relating to labor relations for the theaters that BTC manages. Allan is responsible for build- ing repairs and insurance coverage. He is also the office manager and supervises the bookkeeping and accounting work for BTC. 2. The Roxie Partnership Before 1965, Alameda County Properties, Inc., owned the Roxie Theatre. In 1965 the stockholders in that corpo- ration formed a limited partnership to take over the owner- ship of the theater. The shares in the partnership are as follows: Allan Blumenfeld (who is also a partner in BTC and the eldest son of Joseph), 5-2/3 percent; Joan Blumen- feld Werner (Allan's sister), 5-1/2 percent: A. Blumenfeld and Edward M. Donner, Jr., as trustees for Carol Blumen- feld Baer (Allan's sister),6 5-1/2 percent; Gordon Blumen- feld (Abe Blumenfeld's son and Allan's cousin), 8-1/3 per- cent; Ann Corin (Abe Blumenfeld's daughter and Allan's cousin), 8-1/3 percent; and 16-2/3 percent each to William Laws, Linda McCulloch, Michael John McNerny, and Calista Lacey (none of whom are members of the Blumen- feld family). All the partners except for Allan Blumenfeld are limited partners. Allan Blumenfeld is the general part- ner and, pursuant to the limited partnership agreement, he is in charge of all activities and operations of the partner- ship. The partnership agreement provides that the partner- ship was formed "for the purpose of engaging in the joint venture of owning, operating, and leasing" the Roxie The- atre. The certificate of limited partnership doing business un- der the fictitious name of Roxie Oakland Theatre filed by the Roxie Partnership states that the location of the princi- pal place of business of the partnership is to be at 1521 Sutter Street, San Francisco, which is the Blumenfeld Building. The general partner, Allan Blumenfeld, main- tains his office there but the Roxie Partnership does not pay any money to BTC to house him there. Until September 28, 1977, when the Roxie Partnership began operating the Roxie Theatre, the partnership derived all its income from leasing the theatre to other entities. 3. Cinerama Cinerama is one of the entities that leased the Roxie Theatre from the Roxie Partnership. Business relations be- tween Cinerama and the various Blumenfeld interests are discussed below. Cinerama is a publicly held, nationally listed corporation with extensive theater interests. None of the Blumenfeld family are officers of Cinerama and none hold an owner- ship interest in it. However, two Blumenfelds at one time worked for Cinerama. Max Blumenfeld (the son of Nathan Blumenfeld and the cousin of Allan) handled advertising for Cinerama. His services were terminated by Cinerama. Robert Blumenfeld (the son of Joseph Blumenfeld and the younger brother of Allan) was employed by Cinerama prior to the close of the Roxie Theatre as a field supervisor. 6 This name appears as Carol B. Feher in parts lof the record. Robert was in charge of hiring managers and checking their operations. Though he was an employee of Cinerama, he reported both to Cinerama and his father, Joseph Blu- menfeld, at BTC. He has maintained an office at BTC headquarters in the Blumenfeld Building since 1972 or 1973. Robert Blumenfeld credibly testified that he was un- der Joseph Blumenfeld and representatives of Cinerama with regard to the management of the Roxie Theatre. When he had any problems involving a union, he called his uncle. Nathan Blumenfeld, who is a partner in BTC. Na- than was responsible for all labor relations for the Roxie Theatre as well as the other theaters managed by BTC. BTC maintained a checking account on behalf of Cinera- ma, and Allan Blumenfeld as well as others were author- ized to sign checks on that account. Robert Blumenfeld was discharged by Cinerama after the theater closed on September 6, 1977. He is presently an employee of BTC. where he oversees the operations of BTC's San Francisco theaters. 4. BE BE is a partnership consisting of the following interests: Joseph Blumenfeld, 27.68 percent: the estate of Marjorie Blumenfeld, 27.68 percent; a trust under the will of Mary Plumenfeld, 8.93 percent; the estate of A. Blumenfeld, 8.93 percent; and K. Laws, 26.73 percent. 7 BE is managed by Joseph Blumenfeld. At one time BE was a corporation. The corporation was dissolved and a partnership was formed. At the present time, BE owns certain bowling al- leys but does not own any theaters. BE had owned the T & D Theatre in Oakland. In September 1977, that theater was sold to the Oakland Redevelopment Agency. Prior to 1975, the theater was managed by BTC, and Nathan Blumenfeld handled all labor problems. T & D had a collective-bar- gaining agreement with Projectionists Local 169. In 1975 the theater was leased to Michael Weldon. Weldon went bankrupt and abandoned the theater. Thereafter, the the- ater was managed by Allan and Robert Blumenfeld for BE. The employees of T & D were not covered at that time ty any collective-bargaining agreement. Earl Gibbs was the resident manager of the T & D for BE. While Allan and Robert Blumenfeld were managing the T & D Theatre, there was an interchange of equipment between the T & D Theatre and the Roxie Theatre. At that time. Allan Blumenfeld was the general partner in charge of the Roxie Theatre. In February 1976, two projector heads worth about $2,000 each were taken from the T & D Theatre and moved to the Roxie Theatre. Two projector heads of much less value were taken from the Roxie The- atre and put into the T & D Theatre. The RCA sound technician who did the work was paid by two checks. One of them was on a Roxie Theatre-I account and had the notation "share Blumenfeld Enterprises number 1663, for T & D." The other was on a Blumenfeld Enterprises ac- count and had the notation "Share Roxie no. 1260." The equipment was removed from the T & D upon the instruc- tions of Robert Blumenfeld. K I iah I, the mother f 'W R I :su,. ush h: i lntcres{ in th Ric pa rnershlp BLUMENFELD THEATRES CIRCUIT 9 210 DECISIONS OF NATIONAL LABOR RELATIONS BOARD The complaint alleges one of tile Respondents to be Blu- menfeld Enterprises, a Division of Cinerama Inc. Nathan Blumenfeld, allegedly on behalf of BTC, has corresponded with Janitors Local 121 on stationery that carried the head- ing "Blumenfeld Enterprises, a Division of Cinerama The- atres, Inc., of California." Robert Blumenfeld, allegedly on behalf of Cinerama, posted a notice dated April 22, 1977, at the Roxie Theatre notifying the employees of the pro- spective close of the theater. That notice was on the same letterhead. Those letterheads listed the address as the Blu- menfeld Building. In addition, various contracts and other documents had been signed by Blumenfeld Enterprises as a division of Cinerama, Inc., of California. Nathan Blumen- feld credibly testified that no such entity in fact exists and that the name was in effect used as a logo for other entities. General Counsel stated in its brief: It is the General Counsel's position that Cinerama, as such, is not a necessary party to this proceeding, as it had no employing presence with respect to the Roxie Theatre apart from BTC, ROT or Blumenfeld Enter- prises. Accordingly, the designation "A Division of Cinerama, Inc." is unnecessary for remedial purposes, nor is a remedial order sought against Blumenfeld En- terprises, the partnership. C. Transactions Between the Roxie Partnership, BTC, and Cinerama Concerning the Roxie Theatre I. The leasehold arrangements Leasehold arrangements concerning members of the Blumenfeld family and the Roxie Theatre go back at least to 1941. On July 1, 1941, Alameda County Realty Compa- ny (which consisted of Joseph and Abe Blumenfeld as trus- tees, Elwood and Clarence Laws as trustees, Calista Mc- Nerney Lacey and Michael McNerney) leased the Roxie Theatre to Alameda County Theatres (which consisted of Dennis McNerney, Clarence Laws, and Joseph and Abe Blumenfeld). On June 7, 1945, Alameda County Realty Company assigned its interest to Alameda County Proper- ties, Inc. On June 23, 1965, Alameda County Properties, Inc., was dissolved and on the same date the Roxie Part- nership was formed and succeeded to the interest of Alameda County Properties, Inc., as lessor. On August , 1945, Alameda County Theatres assigned its interest as les- see to Blumenfeld Enterprises, Inc. The original term of the lease was for 15 years beginning July I, 1941. The lease was extended on May 16, 1956, for an additional 5 years begin- ning July 1, 1956, with an option to Blumenfeld Enterpris- es, Inc., to extend the term for an additional 10 years from and after June 30, 1961. Blumenfeld Enterprises, Inc., exer- cised the option and the lease was extended until June 30, 1971, with lessee having the option to renew the lease for 9 successive 5-year periods. Effective September 1, 1968, Blumenfeld Enterprises. Inc., assigned its interest in the lease to Jupiter Productions, Inc. Jupiter Productions, Inc., is a subsidiary of Cinerama and Cinerama was substituted for Jupiter on the lease in 1970. Also effective September I. 1968, the Roxie Partnership as lessor and Jupiter Produc- tions, Inc., as lessee entered into an amended lease for the Roxie Theatre. Allan Blumenfeld executed that amend- ment as general partner for the Roxie Partnership. The term of the amended lease was from September 1, 1968, through August 31, 1978, with a rental of $2,000 per month. It provided that rent was payable at the office of Blumenfeld Enterprises, Inc., in San Francisco. The lease provided: "As to the contracts and agreements listed on Exhibit 'B' Lessee agrees to perform all obligations which would otherwise be performed by Lessor under the terms thereof on or after September 1. 1968 .... " Exhibit B on the lease lists the August 15, 1968, to August 14, 1972, contract with Projectionists Local 169 as well as the Octo- ber 20, 1968, to February 14, 1973, contract with Janitors Local 121. The lease provided: Lessor does hereby irrevocably designate and ap- point JOSEPH BLUMENFELD and ABE BLU- MENFELD, or either of them, as their true and lawful attorney in fact to modify, amend or alter this agree- ment or any provisions hereof in any respect whatso- ever except as to the rental to be paid by Lessee here- under and to receive on behalf of Lessor any and all notices, receipts or other documents required to be sent by Lessee or which may be sent pursuant to the terms hereof. Concurrently herewith Lessor shall exe- cute any and all necessary written powers of attorney so as to carry out the intent and purpose hereof. The powers granted hereunder are powers coupled with an interest. In entering into this lease, Lessee is relying upon this provision as part of the material consider- ation hereof. The lease also referred to a certain Basic Agreement exe- cuted concurrently herewith by and between Lessee, on the one hand, and certain other Parties including Lessor, on the other hand," and provided that the "booking compa- ny" mentioned in that basic agreement may pay the rent from the gross receipts of the theater. 2. The basic agreement Though the lease of September 1, 1968, stated that the basic agreement was entered into simultaneously with that lease, and that basic agreement is effective by its terms on that date, it purports on its face to be entered into on March 31, 1969.8 The basic agreement is between Cinera- ma (as well as Jupiter Productions, Inc., its wholly owned subsidiary), Joseph and Abe Blumenfeld and Blumenfeld Enterprises, Inc., and other persons. It is a wide-ranging agreement covering relationships between Cinerama and members of the Blumenfeld family as well as others with regard to the sale, leasing, and management of various properties. Allan Blumenfeld is one of the many signato- ries. He signed on behalf of Blumenfeld Enterprises, Inc., Sacramento Realty Co., and the Roxie Partnership. The agreement specifically lists the Roxie Theatre as one of the enterprises involved and has language paralleling that set forth in the September , 1968, lease. It also lists the out- It .appears that a prior agreement had been entered Into on September 2. 1968. and the basic agreement is a more detailed contract. BLUMENFELD THEATRES CIRCUIT 211 standing contracts with Projectionists Local 169 and Jani- tors Local 121. Under a cluase entitled "operation." the contract provides as follows: JUPITER agrees to employ (as of the effective date) a company ("Booking Company"), controlled by JO- SEPH BLUMENFELD. to buy and book motion pic- tures for the Theatres and to employ all personnel nec- essary to manage and operate all of the Theatres, as theatres only. The Booking Company shall employ, at its sole cost and expense, all home office supervisory personnel necessary for the operation of the Theatres, including but not limited to a general manager, film buyer, bookers, accounting personnel and all other necessary home office personnel.... The Booking Company shall be responsible for its own home office expense (i.e., rent, utilities, insurance and other expen- ses), but shall employ, at the expense of JUPITER all zone or district managers, theatre managers and other theatre operating personnel. The operations of the Booking Company shall be under the personal super- vision of JOSEPH BLUMENFELD, whose services are agreed by all of the parties hereto to be unique and of special nature and intellectual character. The term of the management agreement was for 10 years. The contract provided that the "booking company" was to receive 6 percent of the gross box office receipts after de- ducting admission taxes from all of the theaters maintained and operated by the "booking company" for the benefit of Cinerama or Jupiter. The "booking company" controlled by Joseph Blumen- feld under the basic agreement was and is BTC. 3. The operation of the Roxie Theatre Pursuant to the basic agreement, BTC operated the Rox- ie Theatre. Robert Blumenfeld. though he considered him- self an employee of Cinerama, was responsible to both Cinerama and BTC. In addition to reporting to Cinerama, he reported to his father, Joseph Blumenfeld. His office was at the Blumenfeld Building. He testified that he was Cinerama's fieldman and that he had been hired to make sure the theatres were well run. He did not handle any labor relations matters, as those functions were performed by Nathan Blumenfeld of BTC. Robert Blumenfeld testi- fied that, in his opinion, the projectionists and janitors at the Roxie Theatre were employees of Cinerama. However, Respondents admit in their answer, and I find, that the Roxie Theatre was operated prior to its closing by certain employees of BTC pursuant to a management contract with Cinerama. BTC performed all the administrative functions for the Roxie Theatre, including the processing of payroll checks from a "Cinerama account." Booking functions were per- formed by an employee who worked in the BTC office and was paid by BTC through the Cinerama account. Though the status of that employee as well as that of Robert Blu- menfeld is, at best, ambiguous. the basic agreement is quite specific and provides that the booking company will "em- ploy all personnel necessary to manage and operate" the theater. It also provides "the Booking Company shall em- ploy, at its sole cost and expense, all home office superviso- ry personnel necessary for the operation of the Theatres, including but not limited to a general manager, film buyer, bookers, accounting personnel and all other necessary home office personnel." The basic agreement states that the booking company "shall employ, at the expense of Ju- piter all zone or district managers, theatre managers and other theatre operating personnel." Onsite managers hired and fired employees and handled day-to-day supervision. Robert Blumenfeld hired the managers. 4. The collective-bargaining agreements BTC is a member of the San Francisco Theatre Em- ployers Association, a group that engages in collective bar- gaining with Projectionists Local 169 and a number of other projectionist locals. Cinerama is a member of the East Bay Theatre Association, a group that bargains with Janitors Local 121. For many years Nathan Blumenfeld has actively engaged in bargaining with the Unions and a number of successive collective-bargaining agreements have been signed covering employees of the Roxie Theatre. a. Projectionists Local 169 By letter dated May 12, 1972, Nathan Blumenfeld au- tlorized the San Francisco Theatre Employers Association to represent the Roxie in bargaining with the Northern California State Association of IATSE Locals (which in- cluded Projectionists Local 169). That letter indicated that Nathan Blumenfeld was to be one of the bargaining repre- sentatives of the Theatre Employers Association. He signed the letter "Blumenfeld Ent. and Cinerama of No. Cal. Inc." Nathan Blumenfeld also participated in the bar- gaining that led to a collective-bargaining agreement nego- tiated between San Francisco Theatre Employers Associa- tion and Northern California State Association of IATSE Locals effective from August 15, 1972, to August 14, 1976. The contract showed the employer to be "Blumenfeld The- atres, Division of Cinerama Inc. of California." Nathan Blumenfeld signed one part of the agreement as "agent" ;or "Cinerama Inc. of Cal," another part as "Cinerama Inc. of Cal. Blumenfeld Theatres, and Blumenfeld agent" and yet another part as "Cinerama Inc. of Cal." A separate contract with the same effective dates between the Roxie Theatre and Projectionists Local 169 was signed by Na- than Blumenfeld on March 7, 1973. He signed that agree- ment under the caption "For the employer." The contract names the employer as the Roxie Theatre. Nathan Blu- menfeld also participated in the negotiation of the 1976 contract which is effective from August 15. 1976, to No- vember 15, 1980. The contract is between the San Francis- co Theatre Employers Association and the Northern Cali- fornia State Association of IATSE Locals. At the commencement of negotiations the Employer's Associa- tion gave the Union Association a list of members. The Roxie was listed under the heading "Cinerama." The cur- rent contract was executed on December 15, 1976, by the San Francisco Theatre Employers Association on behalf of its members. An appendix to the contract lists the Roxie as a Cinerama theatre covered by the agreement. BLUMENFELD THEATRES CIRCUIT 1 212 DECISIONS OF NATIONAL LABOR RELATIONS BOARD The agreement by its terms covers "all employees of op- erating or projection rooms and operators of apparatus and connections appertaining thereto" within the jurisdic- tion of the Projectionists Union.9 The payroll records for the Roxie Theatre show that for the week preceding the theatre's close on September 6, 1977, three projectionists were employed. They were How- ard Bunting, William P. Evarts, and Michael Swanson. None of those employees were reemployed after the theatre reopened. b. Janitors Local 121 Janitors Local 121 has represented the janitorial employ- ees at the Roxie Theatre for at least 33 years. On a number of occasions Nathan Blumenfeld wrote to Janitors Local 121 on the letterhead of "Blumenfeld Enterprises, A Divi- sion of Cinerama Theatres of California" on matters re- lated to union relations. The current collective-bargaining agreement is effective from August 15, 1976, until August 14, 1979. It is between the East Bay Theatre Association of which Cinerama is a member and Janitors Local 121. Among the covered theatres listed in an appendix, the Roxie Theatre is shown under the title "Blumenfeld." The recognition clause of the contract provides that the Union is recognized as the sole collective-bargaining agent for all janitors employed in the theatres listed in the appendix which are within the geographical jurisdiction of Janitors Local 121.'0 The records of the Roxie Theatre show that during the week preceding the close of September 6, 1977, one person was employed as a janitor. He was Alfred Freitas. " Freitas was discharged on September 6, 1977, and was not thereaf- ter rehired. 5. The close of the Roxie Theatre Shortly before August 22, 1977, Fred Minsky, an official of Cinerama, called Robert Blumenfeld on the telephone and told him to take whatever steps were necessary to close the Roxie Theatre, because Cinerama no longer desired to operate it. As is set forth above, Robert Blumenfeld was responsible both to Cinerama and BTC. Robert Blumen- feld, while he was at his office at the Blumenfeld Building, dictated a letter to his secretary that read: As alleged in the complaint. I find that the following unit is appropriate for the purpose of collective bargaining within the meaning of Sec. 9(b) of the Act: All projectionists employed by the employer-members of San Francis- co Theatre Employers Association. excluding all other employees in- cluding guards and supervisors as defined in the Act. 10 As alleged in the complaint. I find that the following unit is appropriate for the purpose of collective bargaining within the meaning of Sec. 9(b) of the Act: All janitorial employees employed by the employer-members of Fast Bay Theatre Association, excluding all other employees including guards and supervisors as defined in the Act. 1 Though only one Janitor was employed by Roxie Theatre, he waS not employed in a one-person unit. The bargaining unit consisted of all janitlrl- al employees employed by the employer-members of East Ba'y Theatre As- socialion. Blumenfeld Enterprises EXECUTIVE OFFICES FIFTEEN TWENTY-ONE SUTTER STREET SAN FRANCISCO, CALIFORNIA 94109 (415) 563-6200 A DIVISION OF CINERAMA THEATRES INC. OF CALIFORNIA August 22, 1977 TO WHOM IT MAY CONCERN: This is to notify you that the Roxie Theatre will close after the night of September 6, 1977. It has become more economical to close the theatre than to continue to operate it. Sincerely, /s/ R. Blumenfeld ROBERT BLUMENFELD RB/mg Robert Blumenfeld took a copy of the letter to the Roxie Theatre and posted it on the bulletin board. He gave other copies to the theatre manager and asked him to hand them to employees. Robert Blumenfeld testified that he also told his secretary to send conformed copies of the letter to the Unions. Though the posted notice and the notices given to employees did not show that any conformed copies were sent, Respondent did produce its file copy which indicated that copies were sent to a number of people, including Wayne Hoffman of Projectionists Local 169. There was no indication that a copy was sent to Janitors Local 121. Rob- ert Grosso, president of Janitors Local 121 and Wayne Hoffman, business representative for Projectionists Local 169, both testified that their unions did not receive any notice from Robert Blumenfeld and that they first found out about the close when employees told them that a notice had been posted. Robert Blumenfeld admittedly did not take care of union matters for the Roxie Theatre. That was the function of Nathan Blumenfeld. Grosso and Hoffman, both of whom appeared to be credible witnesses, testified that they did not hear from Robert Blumenfeld concerning tae close. In view of that testimony and Robert Blumenfeld's past practices with regard to leaving union matters to Nathan Blumenfeld, I do not credit his testi- mony that he sent copies of the notice to the Unions. The Roxie Theatre was closed on September 6, 1977. All the employees were discharged." 6. The reopening of the Roxie Theatre The Roxie Theatre was closed for about 3 weeks. On September 28, 1977, Allan Blumenfeld, the general partner in the Roxie Partnership, reopened the theater with all new employees and, according to Respondent, no union con- tracts. The new employees received less pay and benefits than had the employees before the close. Allan Blumenfeld hired Earl Gibbs as the theatre manager. Gibbs had been l The Roxie Theatre payroll records show 13 names at that time, includ- ing a manager and assistant. BLUMENFELD THEATRES CIRCUIT 213 manager of the T & D Theatre. Gibbs hired a number of employees who had worked with him at the T & D Theatre and also hired new employees. None were members of the Unions. The three new projectionists were Odile Bolls, Donald Herren, and Gewn Hing. The new janitor was Pe- ter Sun. All the moveable equipment such as projectors and pop- corn machines in the Roxie Theatre belonged to Cinerama. Allan Blumenfeld used that equipment because in his words "nobody said I can't use it." The Roxie Partnership did not pay Cinerama for the use of that equipment. Ciner- ama continued to pay rent on the premises as its lease was still outstanding but the Roxie Partnership did not com- pensate Cinerama or offset the rent by revenues earned from the use of the theater. BTC continued to pay the Roxie Partnership rent on behalf of Cinerama from the BTC Cinerama account. Allan Blumenfeld is authorized to sign those checks. BTC performs a number of services for the Roxie Part- nership. BTC performs all the bookkeeping and accounting services for the Roxie Theatre. Gibbs sends in data to the BTC payroll department which issues checks. BTC pur- chases all supplies for the Roxie Theatre. Items such as popcorn cups are purchased in bulk and the Roxie Theatre uses them even though they have the name "Blumenfeld Theatres" printed on them. BTC books movies for the Roxie Theatre through a BTC employee. Some of the booking contracts identify the "exhibitor" as "Blumenfeld Enterprise" or "Blumenfeld Theatres as an agent for Ciner- ama Theatres of California Inc." Between September 28 and December 31, 1977, the Roxie Partnership paid BTC $510 for administrative services. From January I through March 31, 1978, the sum paid for administrative services was $1,072. When Allan Blumenfeld reopened the theatre he purchased from Cinerama certain supplies such as con- fectionaries that were on hand. 7. The efforts of the Unions to deal with the reopened theatre On August 22, 1977, Robert Blumenfeld posted the no- tice saying that the theatre would be closed after the night of September 6, 1977. Shortly thereafter employees of the Roxie Theatre told the Unions of the notice. Both Wayne Hoffman, the business representative of Projectionists Lo- cal 169, and Robert Grosso, the president of Janitors Local 121, placed telephone calls to Nathan Blumenfeld but were unable to contact him. Hoffman placed several phone calls to Nathan Blumenfeld but Blumenfeld never returned the calls. On September 25, 1978, 3 days before the theater re- opened, Hoffman, Grosso, and Projectionists Local 169 President Howard Scheurer went to the Roxie Theatre and spoke to the new manager, Gibbs. They asked Gibbs what his intentions were toward the theater and Gibbs replied that he was leasing the theater and was cleaning the place up. Gibbs was asked about negotiating a contract and he replied that he had no authority to sign a contract. During the course of the discussion Gibbs said that he had backers but he refused to answer questions concerning who they were. When he was asked about manpower requirements, Gibbs said that he had brought some people from the T & D Theatre and that he would be hiring additional people. The union representatives again asked about the possibility of a contract, and Gibbs said that he would talk to his backers and get back to them. Hoffman asked if Gibbs would put the union people back to work and Gibbs re- plied that he did not have the power to decide, would con- sult his superiors.'3 The day before the theater reopened Grosso went back to the Roxie Theatre and again spoke to Gibbs. Grosso asked whether Gibbs had found out if his backers wanted union personnel. Gibbs replied that he had spoken to his backers and that they did not want union help in the Roxie Theatre. Grosso said that they would picket and Gibbs answered that perhaps that would bring his backers out. Hoffman also spoke to Gibbs. In a telephone conversa- tion Gibbs told Hoffman that he had spoken to his superi- ors and there was no way that he could use the Union's people. On October 4, 1977, Hoffman wrote a letter to Nathan Blumenfeld, Robert Blumenfeld, the Roxie Theatre. Blu- menfeld Theatres d/b/a Roxie Theatre and Cinerama Blumenfeld d/b/a Roxie Theatre, all at the Blumenfeld Bilding. The letter stated that the reopening of the Roxie Tneatre without personnel covered by the collective-bar- gaining agreement was a violation of the contract. On Oc- tuber I 1, 1977, Grosso wrote a letter to the manager of the Roxie Theatre at that theater's address stating that the theater had abrogated the provisions of the contract in vio- lation of Section 8(a)(1), (3), and (5) of the Act. Grosso demanded that the janitor who had formerly cleaned and serviced the theater be immediately rehired with backpay. In a further exchange of correspondence the attorney for Respondents in substance contended that Respondents had no contractual obligations toward the Unions and that there was no basis for arbitration. The original charge in the instant case was filed on December 5, 1977. D. Analysis and Conclusions I. Introduction There was much testimony in this case concerning BTC, the Roxie Partnership, BE, and Cinerama. It appears that both Cinerama and BE are in the picture primarily for background purposes. BE neither owns nor operates any theatres. The General Counsel stated in his brief that he does not seek a remedial order against BE. One of the Respondents named in the complaint is Blumenfeld Enter- prises, Division of Cinerama. Inc. There is no such entity and Blumenfeld Enterprises, is not a division of Cinerama. Cinerama, as a separate entity, is not named in the com- plaint. The General Counsel stated in his brief that Cinera- ma is not a necessary party to the proceeding as it had no employing presence with respect to the Roxie Theatre apart from BTC. the Roxie Partnership or BE. The out- come of this case depends on findings with regard to the status and conduct of BTC and the Roxie Partnership. i II hce findlr are hbased oin i cmlrnp lte f he Itirmnon, f thl fm.n (;r,~', weld Schcurer ( ibh, h l no t Intlti' B L U M E N F.L T H A T E C I C I.1 214 DECISIONS OF NATIONAL LABOR RELATIONS BOARD The Roxie Partnership is the owner and lessor of the Roxie Theatre. BTC operated the Roxie Theatre before its close on September 6, 1977. The Roxie Partnership operat- ed the theatre when it reopened on September 28, 1977. BTC contends in substance that it managed the Roxie The- atre solely as an agent of Cinerama and that it (BTC) never had a bargaining relation of its own with the Unions con- cerning that theater. One threshold question is, therefore, whether BTC, independent of Cinerama, had a bargaining obligation toward the Unions. There is no allegation or proof that the Roxie Partner- ship individually meets the Board's jurisdictional stan- dards. Jurisdiction can be asserted over the Roxie Partner- ship in this case only if the Roxie Partnership is found to be a single employer with BTC. If it is such a single em- ployer then BTC's obligation to bargain with the Unions extends to the Roxie Partnership.' 4 The second threshold question is, therefore, whether BTC and the Roxie Partner- ship constitute a single employer. 2. The obligation of BTC to bargain with the Unions Nathan Blumenfeld was responsible for all the Roxie Theatre's labor relations until the theater closed on Sep- tember 6, 1977. He is a partner in BTC. He actively partici- pated in the negotiation of the successive contracts with Projectionists Local 169. He actively dealt with Janitors Local 121 with regard to contract enforcement matters. There was no attempt to hide the contractual relationships. They were listed as outstanding obligations on the Roxie Theatre lease as well as the basic agreement. Nathan Blumenfeld was the one who authorized the San Francisco Theatre Employers Association to represent the Roxie. He signed various documents in such a way as to bind Blumenfeld entities as well as Cinerama. The May 12, 1972, authorization for the San Francisco Theatre Em- ployers Association to represent the Roxie Theatre was signed by Nathan Blumenfeld on behalf of Blumenfeld En- terprises and Cinerama. The 1972 76 contract showed the employer to be "Blumenfeld Theatres, Division of Cinera- ma, Inc. of California." There was no such entity and Blu- menfeld Theatres was not a division of Cinerama. The sep- arate contract with Projectionists Local 169, which was signed on March 7, 1973, was executed by Nathan Blu- menfeld for the Roxie Theatre. Nathan Blumenfeld also actively participated in the ne- gotiation of the current contract with Projectionists Local 169, which was effective from August 15, 1976, to Novem- ber 15, 1980. Nathan Blumenfeld handled all labor relations for the Roxie Theatre and that included matters relating to Jani- 14 In certain cases different components of a single emploier In i he bargaining obligations that go t different and separate approprlate hbar- gaining units (Cf 4Appalahitan ( nttlrutrion. Inc.. l al, 235 NI RB 685 (1978) Bran Infanit Wear (onipani. 235 NRB 1305 (1977): A 1 It/ c Protection, Inc., 233 N.RB 3 (1977) In the instant case the onls units wc are concerned with are projectionlists ad janitors at the Rosle I hea.tie When BTC handled labor relations at the Rxie Theatre. those were the bargaining units. When the Roic Parinership assumed the nlanaigeCntint function, the bargaining units remained he same even though the emplo\- ees were different. tors Local 121. The current contract is effective from Au- gust 15, 1976, until August 14, 1979. and in that contract the Roxie Theatre is listed under the title "Blumenfeld." Cinerama's basic agreement with the Blumenfelds pro- vided that the booking company (BTC) was to employ all personnel necessary to manage and operate the theaters. That agreement was honored and, as Respondent admits, the Roxie Theatre was operated prior to its closing by cer- tain employees of BTC pursuant to the management con- tract with Cinerama. Until the close of the Roxie Theatre on September 6, 1977, the projectionists and janitors were employees of BTC. Those employees were covered by collective-bargain- ing agreements which are still in full force and effect. Na- than Blumenfeld actively participated in the negotiations of some of those contracts. Until the close of the Roxie on September 6, 1977, he dealt with those Unions and accept- ed and honored the validity of those contracts. His actions were such as to lead the Unions to believe that they were dealing with BTC.'5 Cinerama never had any collective- bargaining relationship with the Unions. Cinerama's inter- est was basically financial. The Roxie Partnership owned the theater and BTC managed it. Cinerama had an interest a, lessee which in effect gave it the right to collect certain moneys. It had little further role. Though Robert Blumen- feld reported to Cinerama, he was housed at the Blumen- f-ld Building and he was required to report as well to BTC. Under all these circumstances I find that BTC had a bar- gaining relationship and an outstanding collective-bargain- ing contract with the Unions at the time the theater closed on September 6, 1977. I further find that BTC had an obli- gation under Section 8(a)(5) of the Act to bargain in good faith with the Unions. 3. BTC and the Roxie Partnership as a single employer a. The applicable law In Radio & Television Broadcast Technicians Local Union 1264, IBEW v. Broadcast Service of Mobile, Inc., 380 U.S. 255, 256 (1965), the Supreme Court held that in determin- ing whether enterprises constitute a single employer: "The controlling criteria, set out and elaborated in Board deci- sions, are interrelation of operations, common manage- ment, centralized control of labor relations and common ownership." 6 Though the Board and the courts have not always agreed on how to apply the standards enunciated by the Supreme Court, the decision of the Court of Ap- peals for the District of Columbia in Local No. 627, Inter- national Union of Operating Engineers, A FL CIO South Prairie Construction Company and Peter Kiewit Sons' Co.] v. N.L.R.B., 518 F.2d 1040 (1967), appears to be controlling. In that case the court of appeals reversed the Decision of the Board in Peter Kiewit Sons' Co. and South Prairie Con- i Nalhan Blumenfeld testified: .. n all the sears we have been deal- ing with negotilatios and eertihing. Blumenfeld, Blumenfeld Theatre and Blunlfeld EInterprises has all been kind of one thing. We've known the people we deal with across the table ,n a friendls basis. Ithink the\ under- slotd I was negligent n the a I signed some of these contracts" See also SaA rcle 0o ,,rlhern (ahlortia. In, . 1411 N.RB 765 (1963). enfd 332 .2d 9(02 (9th (r. 1964), cert denied 379 t S. 961 (1965). BLUMENFE~LD THEATRES CIRCUIT 215 struction Co.. 206 NLRB 562 (1973). Part of the circuit court's decision was affirmed by the United States Su- preme Court in South Prairie Construction Co. v. Local No. 627, International Union of Operating Engineers, A FL CIO, 425 U.S. 800 (1976). The Board had made two separate findings. The first was that two entities did not constitute a single employer and the second was that each entity had a separate appropriate bargaining unit for collective-bargain- ing purposes. The court of appeals disagreed and found both a single employer and a single unit. On appeal the Supreme Court affirmed that part of the court of appeals' decision which found that the two entities were a single employer and reversed and remanded to the court of ap- peals that part of the decision which related to the unit question. 17 As the Supreme Court has affirmed the circuit Court's decision with regard to the single employer. the language of the circuit court is of particular importance. That circuit court held 518 F.2d at 1045-46]: Guidelines for "Single Employver" Status In Radio Union v. Broadcast Service of Mobile, Inc., 380 U.S. 255 . . . (1965). the Supreme Court, in a per curiam opinion affirming a "single employer" holding below, said: The controlling criteria, set out and elaborated in Board decisions, are interrelation of operations, common management, centralized control of labor relations and common ownership. The court cited several NLRB decisions including one affirmed in Sakrete of Northern California, Inc. v. NLRB, 332 F.2d 902 (9th Cir. 1964), cert. denied, 379 U.S. 961 . . . (1965). In Sakrete, the Ninth Circuit stated, at 907: even if the substantial evidence shows interrelation- ship of operations, centralized control of labor rela- tions, or common management only at the executive or top level, we do not agree that this precludes ap- plication of the "single employer" concept. It pointed out that these three criteria "deal not with power and authority, as such, but with its exercise," and that such criteria, "on any level, are considera- tions in addition to the factor of common ownership or financial control." Although the Supreme Court in Radio Union, supra, commented that the record in that case was more than adequate to show that all of the four "controlling criteria" were present, it does not appear that all four criteria must be present. In one of the NLRB cases cited. Canton, Carp's, Inc., 125 N.L.R.B. 483 (1959). the Board observed that it had on several occasions made a finding of a single employer status in the ab- sence of a common labor relations policy. and even " On remand the Board Issued a Supplemenal Declsion reported .at 231 NLRB 76 (1977) In which it noted thai he Supreme Court had affirmed the circuit court's finding thai the two entitles were a single enmplo)er I hc Board reconsidered the single-uimt questil and cncluded that. een though the entitles were a single emploser. seplrate units were appropriate when it had been affirmatively shown that each of two corporations held to be a single employer established its own labor relations policy. In another of the NLRB cases cited, .I.P. Radio. Inc.. 128 N.L.R.B. 113 (1960), the Board found that there was little or no employee interchange: but 90 percent stock ownership of the second corporation, the same officers and direc- tors, and centralized control of "general labor policy" and operations resulted in a "single employer" hold- ing. In still another cited NLRB case, Overton Mar- kets, Inc., 142 N.L.R.B. 615 (1963). the Board noted, at 619. that the circumstances were not "characteristic of the arm's length relationship found among uninte- grated companies.", Its conclusion that there was a "single employer" for purposes of the Act rested on consideration of "all the circumstances" of the case. From the foregoing. we conclude that "single em- ployer" status, for purposes of the National Labor Re- lations Act. depends upon all the circumstances of the case, that not all of the "controlling criteria" specified by the Cupreme Court need be present; that, in addi- tion to the criterion of common ownership or financial control. the other criteria, whether or not they are present at the top level of management, are "control- ling" indicia of the actual exercise of the power of common ownership or financial control: and that the standard for evaluating such exercise of power is whether, as a matter of substance, there is the "arm's length relationship found among unintegrated compa- nies." In a later decision. L R B . 14 e/ itlc -4 .A l niertin thrlih:etr ( '. 443 F.2d 19. 21 (9th ('r. 1971). the Ninth Circuit. citing SAret . , said thai no) one of the four criteria is controlling t I he arm's length" test makes meaningful the Board's reference in (ito,. ( urp's. Inc., supra at 484. to "realities of commercial organiza- tion." It was applied hb thil court In .4-rIicr!an fed /, Tei.ssn i & Rad,, r s. .1. R ., 149 liS.App D.('. 272. 42 F d 8S7 (1972) "Petitioner relied hesiIs n % I R B Ral ,}a 7i, & IStch . 1320 F 2d 77 6th (ir. 193) n which the ourt .id. at 81 It requires a greater degree f credulit than is possessed h this ('ouri tio accept the slew that lIhe subsidi.ars' operating officers could inaugurate or establih a lahor policN thai did not meet lith the absolute appro al f he hoard of directors jof the parent compan? I So Iui. we are persuaded that South Prairie's president. hasing decided or. .l least. recommended that South Prairie he actvlaled in Oklahoma. was not free agent to .alter South Pralrie's nnunimn polic In most cases the question of single employer arises where two entities each have their own work force but are nonetheless interrelated. In the instant case, the Roxie Partnership had no work force until it reopened the Roxie Theatre on September 28. 1977. BTC claims that b that time it had no employees at the Roxie Theatre. Thus. in- stead of dealing with parallel businesses, we are concerned here with the continuation of a single business (the Roxie Theatre) involving identical bargaining units. If the situa- tion involved an arm's-length transaction between unrelat- ed entities, the principles of law relating to successorship would govern. However, where there is a close relation be- tween the entities it is appropriate to apply the law relating to single employers. BLUMENFELD TH ATRES CIRCUIT 216 DECISIONS OF NATIONAL LABOR RELATIONS BOARD b. The interrelation of operations The Roxie Partnership owns the building in which the Roxie Theatre is located. After the theatre reopened on September 28, 1977, the Roxie Partnership managed the Roxie Theatre. Before the close on September 6, 1977, BTC managed the theatre. Both before and after the close the Roxie Partnership and BTC had many interrelations. BTC houses and supplies an office for Allan Blumenfeld, who is the managing partner of the Roxie Partnership as well as a partner in BTC. BTC both before and after the close performed all the administrative functions for the Roxie Theatre, including the processing of payroll checks. All bookkeeping and accounting functions were and are performed at the BTC office. All purchasing was and is done through BTC. BTC did and does the booking of mov- ies for the theatre. In this case the interrelations between the Blumenfeld family cannot be separated from the inter- relation of operations. Allan Blumenfeld is the managing partner of the Roxie Partnership, and in addition is a gen- eral partner in BTC. BTC managed the theatre until the close and conducted all labor relations through its general partner, Nathan Blumenfeld, who is Allan's uncle. Joseph Blumenfeld, who is Allan's father, makes the key decisions within BTC and is in overall charge of a number of Blu- menfeld holdings. Robert Blumenfeld, who allegedly was an employee of Cinerama, was housed at the Blumenfeld Building and was required to report to BTC. Cinerama was the lessor of the theatre, but its role appears to be limited to the financial one of collecting money on its investment. By agreement with the Blumenfelds, Cinerama had neither an ownership nor a management function in the operation of the theater. Cinerama never assumed any role with regard to labor relations. After Cinerama dropped out of the pic- ture and the Roxie Partnership reopened the theatre, BTC continued to pay rent to the Roxie Partnership from a Cin- erama account. The rent was paid without any offset for the use of the leased property or the use of Cinerama equipment by the Roxie Partnership. c. Common management Allan Blumenfeld is the only general partner in the Rox- ie Partnership. As such, he has the sole right to manage partnership affairs. Allan is also one of three general part- ners in BTC with a 23-3/4 percent interest. The other two partners are Allan's father, Joseph, and his uncle, Nathan. Thus the management of both the Roxie Partnership and BTC is fully controlled by a closely knit family group. BTC is controlled and managed by managing partner Joseph Blumenfeld, his brother, Nathan, and his son, Allan. The Roxie Theatre is managed solely by Allan Blumenfeld, who sometimes functions as general partner of the Roxie Partnership and sometimes as a general partner in BTC. All of them maintain their offices at the Blumenfeld Build- ing. d. Centralized control of labor relations Before the close of the Roxie on September 6, 1977, Na- than Blumenfeld, a partner in BTC, handled all labor rela- tions matters for the Roxie Theatre and dealt with the Unions. After the reopening of the theatre on September 28, 1977, Allan Blumenfeld, a general partner in both the Roxie Partnership and BTC, assumed that labor relations role. Allan Blumenfeld chose for that purpose to appear as the general partner of the Roxie Partnership. However, at the same time he was a partner in BTC. I am unconvinced that Allan Blumenfeld can so easily shed his role as partner in BTC and assume a completely independent role for the Roxie Partnership. As the managing partner of BTC, Jo- seph Blumenfeld makes decisions for the partnership that are binding on his son, Allan. It is unrealistic to assume that Joseph Blumenfeld and BTC have no input with re- gard to the labor relations and other actions of Allan Blu- menfeld when Allan assumes the role of general partner of the Roxie Partnership as distinguished from a partner in BTC. Under these circumstances, I find that there is cen- tralized control of labor relations. e. Ownership Members of the Blumenfeld family own all of BTC. Al- lan has a 23-3/4 percent interest in the share of profits, Nathan has a 23-3/4 percent interest and Joseph has a 52-1/2 percent interest. The Blumenfeld family only has a minority interest in the Roxie Partnership. Allan Blumen- fld has a 5-2/3 percent interest and other close members of his family have an additional 27-2/3 percent. The partnership's 66-2/3 percent is owned by four other indi- viduals who are not members of the Blumenfeld family. f. Other factors BTC and the Roxie Partnership do not maintain an arm's-length relationship such as is found among uninte- grated companies. The Roxie Partnership did pay some of the costs of administration to BTC after the theater was reopened but most of their relationship showed very close dealings. BTC furnished an office for Allan Blumenfeld without compensation, even though Allan Blumenfeld per- formed duties for the Roxie Partnership from that office. !ITC continued to pay rent to the Roxie Partnership from its Cinerama account even though Cinerama could have claimed an offset against the rent for the use of its equip- ment and for the use of the theater building by the Roxie Partnership while Cinerama still had a leasehold interest in it. BTC performed many services for the Roxie Partner- ship. In general the relationship appeared to be one of a close family rather than one between independent compa- nies. Giving due weight to the interrelation of operations, the common management, the centralized control of labor re- lations, the partially common ownership, the lack of arm's- length relationship commonly found among unintegrated companies, and the close family connection, I find that BTC and the Roxie Partnership were and are a single em- ployer for the purpose of collective bargaining. As found above, when the Roxie Theatre closed on September 6, 1977. BTC had a duty to bargain in good faith with the Unions and was bound by the collective-bargaining con- tracts then in effect. The Roxie Partnership did not deal BLUMENFELD TEATRES CIRCUIT 217 with any different bargaining units. When it reopened the theatre on September 28. 1977. the identical bargaining units were present even though the employees were differ- ent. As a single employer with BTC. the Roxie Partnership had the same bargaining obligations as BTC. Like BTC. the Roxie Partnership had the obligation to bargain in good faith with the Unions and to honor the outstanding contracts. Cf. Appalachian Con.struction, Inc., 235 NLRB 685. 4. The 8(a)(5) and (3) allegations As found above, BTC and the Roxie Partnership consti- tuted a single employer and were bound by the current contracts with the Unions. Neither BTC nor the Roxie Partnership made the decision to close the theater. That was done by Cinerama. There is insufficient evidence in the record to establish that BTC or the Roxie Partnership influenced that decision, even though Cinerama's role with regard to the theatre was extremely limited. Cinerama had invested money, had a leasehold interest, and was entitled to collect money from the operation of the theatre. Though it could not walk away from its leasehold obligations (which were limited to the payment of rent), it could and did decide to discontinue its interest in the operation of the theater. That decision resulted in the temporary closing of the theater. BTC and the Roxie Partnership, as a single employer, decided to reopen the theater. Thus the single employer which constituted both the ownership of the building and the prior management of the theatre reopened the theater on September 28, with that part of the single employer which owned the theater assuming the manage- ment function. The hiatus in the theater's operation, which lasted less than 4 weeks, was not sufficient to terminate the bargaining obligation that BTC and the Roxie Partnership had with the Unions, or to terminate the contracts. BTC and the Roxie Partnership took advantage of Cinerama's decision to walk away from the Roxie Theatre by repudiat- ing the collective-bargaining contracts in midterm, by re- fusing to honor the terms and conditions of the contracts, by withdrawing recognition from the Unions, and by mod- ifying the terms and conditions of employment of bargain- ing unit employees. By engaging in such conduct during the term of the contracts, BTC and the Roxie Partnership violated Section 8(a)(5) and () of the Act. Allied Chemical & Alkali Workers of North America, Local Union No. I v. Pittsburgh Plate Glass Co.. 404 U.S. 157, 185-186 (1971); J. D. Lunsford Plumbing, Healing and Air Conditioning, Inc., 237 NLRB 128 (1978); Appalachian Conrtruction, Inc.. 235 NLRB 685: Los Angeles Marine Hardware Co., a Divi- sion of Mission Marine Associates. Inc., et al., 235 NLRB 720 (1978). Cinerama made the decision which resulted in the tem- porary closing of the theater. However, BTC and the Roxie Partnership had the obligation to notify the Unions about the closing and to bargain concerning the effects of that closing on bargaining unit employees. Cf. Joseph Macaluso, Inc., d/b/a Lemon Tree, 231 NLRB 1168 (1977). Though the employees were notified in advance of the closing, the Unions were not. When the employees informed the Unions of the situation, union representatives called Na- than Blumenfeld, who handled labor relations for BTC, but were unable to reach him. After the closing but before the reopening, union representatives spoke to Gibbs, the new manager who had been hired by the Roxie Partner- ship. Gibbs told them that he had no authority and he consistently refused to name the people who did have au- thority in the theater. The union representatives were not permitted to open a meaningful dialog with regard to the temporary close or the reemployment of the former em- ployees. The lack of bargaining cannot be attributed to the Unions' failure to insist on their rights. They attempted to contact Nathan Blumenfeld. who did not make himself available, and they did contact Gibbs, who engaged in nothing but obfuscation. BTC and the Roxie Partnership violated Section 8(a)(5) and (I) of the Act by failing to notify the Unions concerning the temporary close in opera- tions of the Roxie Theatre, and by refusing to bargain with the Unions concerning the effects of that close and the subsequent reopening on bargaining unit employees. Cf. Brockway Motor Trucks, Division of Mack Trucks, Inc., 230 NLRB 1002 (1977). As found above, Cinerama and not BTC or the Roxie Partnership made the decision that resulted in the tempo- rary close of the theater. The discharge of the employees in the two bargaining units flowed in part from that decision. However, as indicated above, BTC and the Roxie Partner- snip used that decision as a lever to separate themselves from the Unions. They violated Section 8(a)(5) and (I) of the Act by repudiating their outstanding contracts and withdrawing recognition from the Unions. The discharge of all bargaining unit employees and their replacement with nonunion employees can only be viewed as part of its overall strategy to dislodge the Unions from the theater. By discharging the bargaining unit employees on September 6. 1977, when the theater temporarily closed and by refusing to reinstate them on September 28. when the theater re- opened, BTC and the Roxie Partnership violated Section 8(a)(3) and (1) of the Act. Cf. Los Angeles Marine Hard- ware Co., supra,; Helrose Bindery, Inc., 240 NLRB 499 (1973); Rushton & Mercier Woodworking Co.. Inc., 203 NLRB 123 (1973), unpublished opinion. 86 LRRM 2151, '5 LC 10.384 (st Cir. 1974). I1 THF EFFECT OF THE UNFAIR I.ABOR PRACTICES UPON COMMERCE The activities of BTC and the Roxie Partnership set forth in section II, above. occurring in connection with their operations described in section I. above, have a close. intimate, and substantial relationship to trade. traffic, and commerce among the several States and tend to lead to labor disputes burdening and obstructing commerce and the free flow of commerce. ' HE REMED Having found that BTC and the Roxie Partnership have engaged in certain unfair labor practices, I recommend that they be ordered to cease and desist therefrom and take certain affirmative action designed to effectuate the poli- cies of the Act. BLUMENFELD THEATRES IRCUIT 2? 218 DECISIONS OF NATIONAL LABOR RELATIONS BOARD Having found that on September 6, 1977, BTC and the Roxie Partnership discharged the projectionists and jani- tors then employed at the Roxie Theatre, in violation of Section 8(a)(3) and (1) of the Act, I recommend that BTC and the Roxie Partnership be ordered to offer those em- ployees reinstatement and to make them whole for any loss of wages and other benefits resulting from their discharge by payment to each of them of a sum of money equal to the amount each normally would have earned as wages and other benefits from the date of the discharges to the date on which reinstatement is offered, less net earnings during that period. Having found that BTC and the Roxie Partnership re- fused to honor the terms and conditions of the outstanding contracts with the Unions and that said Employers em- ployed projectionists and janitors after the theatres re- opened on September 28, 1977 at less than the contract rates, I recommend that BTC and the Roxie Partnership make those individuals whole for any losses they may have suffered by reason of said Employers' failure and refusal to honor the collective-bargaining agreements, including all contributions the Unions would have received in accor- dance with the agreements.'1 All backpay and other moneys due shall be computed in the manner set forth in F. W. Woolworth Company, 90 NLRB 289 (1950), with interest thereon to be computed in the manner prescribed in Florida Steel Corporation, 231 NLRB 651 (1977).'9 In his closing argument, counsel for the Charging Party argued that the Unions should be awarded attorneys' fees. I find that the defenses raised by Respondents in this case are debatable rather than frivolous and that such a special remedy is not warranted.2 0 In view of the seriousness of the violations, I recommend that BTC and the Roxie Partnership be ordered to cease and desist from in any manner interfering with, restraining or coercing employees in the exercise of rights guaranteed to them in Section 7 of the Act. 21 It is recommended that BTC and the Roxie Partnership be ordered to preserve and, upon request, make available to the Board or its agents, for examination and copying, all payroll records, social security payment records, timecards, personnel records and reports, and all other records neces- sary to analyze the amount of backpay due. It is further recommended that BTC and the Roxie Part- nership be ordered to recognize and bargain with the Unions as the exclusive collective-bargaining representa- tive of the employees in the appropriate bargaining units. CONCLUSIONS OF LAW I. BTC and the Roxie Partnership are a single employer within the meaning of Section 2(2) of the Act, engaged in commerce and in a business affecting commerce within the meaning of Section 2(6) and (7) of the Act. See Appalachian (onstructlion, Inc.. upra See, generally. Isis Plumhing & Heating (Co, 138 NLRB 716 (1962) 2( C. Tiidee Produiirs, Inc.. 194 NLRB 1234 1972). enfd as modified 502 F.2d 349 (D.C . ('r. 1974). 2 IN.L.R B. v. Entoistle Mfg Co(. 120(1 2d 52. 536 (4th ir. 1941): B1-, Ion Pet SupplI. Inc.. 227 NlRB 1891 (1977) 2. Projectionists Local 169 and Janitors Local 121 are, and each is, a labor organization within the meaning of Section 2(5) of the Act. 3. The following units are appropriate for the purposes of collective bargaining: (a) All projectionists employed by the employer-mem- bers of San Francisco Theatre Employers Association, ex- cluding all other employees including guards and supervis- ors as defined in the Act. (b) All janitorial employees employed by employer- members of East Bay Theatre Association, excluding all other employees including guards and supervisors as de- fined in the Act. 4. (a) Projectionists Local 169 is the exclusive collec- tive-bargaining representative of the employees of BTC and the Roxie Partnership employed at the Roxie Theatre in the bargaining unit set forth in 3(a), above. (b) Janitors Local 121 is the exclusive collective-bar- gaining representative of the employees of BTC and the Roxie Partnership employed at the Roxie Theatre in the bargaining unit set forth in 3(b), above. 5. At all times material herein BTC and the Roxie Part- nership have been and are now bound by collective-bar- gaining agreements with said Unions in the respective bar- gaining units set forth above. 6. By repudiating said contracts in midterm, by refusing to honor the terms and conditions of said contracts, by withdrawing recognition from said Unions, by unilaterally modifying the terms and conditions of employment of bar- gaining unit employees during the term of those contracts, by failing to notify said Unions concerning the temporary closing and the reopening of the Roxie Theatre, and by refusing to bargain with said Unions concerning the effects of that closing and the subsequent reopening on bargaining unit employees, BTC and the Roxie Partnership violated Section 8(a)(5) and (1) of the Act. 7. By discharging the employees employed in the above- described bargaining units on September 6, 1977, when the Roxie Theatre temporarily closed and by refusing to rein- state said employees on September 28 when the Roxie The- atre reopened, BTC and the Roxie Partnership violated section 8(a)(3) and () of the Act. 8. The aforesaid unfair labor practices are unfair labor practices affecting commerce within the meaning of Sec- tion 2(6) and (7) of the Act. Upon the foregoing findings of fact, conclusions of law, and upon the entire record, and pursuant to Section 10(c) of the Act, I hereby issue the following recommended: ORDER 22 The Respondents, Blumenfeld Theatres Circuit, a part- nership (also known as Blumenfeld Theatres, a partner- ship), and Roxie Oakland Theatre, a partnership, Oakland, -2 In the event nil exceptions are filed as provided by Sec. 102.46 of the Rules and Regulations of the National Labor Relations Board. the findings. conclusions, and recommended Order herein shall, as provided in Sec 102.48 of the Rules and Regulations. be adopted b the Board and become its indigs. conclusions and Order, and all obhjectrlns thereto shall he deemed waived or all purposes. BLUMENFELD THEATRES CIRCUIT 219 Calfornia, their officers, agents. successors. and assigns. shall: I. Cease and desist from: (a) Refusing to recognize and bargain with International Alliance of Theatrical Stage Employees. Local 169. as the exclusive collective-bargaining representative of their em- ployees employed at the Roxie Oakland Theatre in the fol- lowing unit: All projectionists employed by the employer-members of San Francisco Theatre Employers Association. ex- cluding all other employees including guards and sup- ervisors as defined in the Act. (b) Refusing to recognize and bargain with Theatrical Janitors Union, Local 121, Service Employees Internation- al Union, as the exclusive collective-bargaining representa- tive of their employees employed at the Roxie Oakland Theatre in the following unit: All janitorial employees employed by employer-mem- bers of East Bay Theatre Association, excluding all other employees including guards and supervisors as defined in the Act. (c) Repudiating their outstanding collective-bargaining contracts with those Unions, refusing to honor the terms and conditions of those contracts, withdrawing recognition from said Unions, unilaterally modifying the terms and conditions of employment of employees in said bargaining units during the term of those contracts. failing to notif\ said Unions concerning the temporary closing and the re- opening of said theater, and refusing to bargain with said Unions concerning the effects of such closing and the sub- sequent reopening on bargaining unit employees. (d) Discharging or otherwise discriminating against anN employee in order to avoid their bargaining or contractual obligations with said Unions, or because of the union membership of that employee. (e) In any other manner interfering with, restraining, or coercing employees in the exercise of rights guaranteed them in Section 7 of the Act. 2. Take the following affirmative action to effectuate the policies of the Act: (a) Upon request. recognize and bargain collectively with International Alliance of Theatrical Stage Employees. Local 169, and Theatrical Janitors Union, Local 121. Ser- vice Employees International Union. as the exclusive bar- gaining representative of their employees employed at the Roxie Oakland Theatre in the respective bargaining units set forth above. (h) Honor and abide by their outstanding collective-bar- gaining contracts with said Ulnions. (c) Offer the employees in those bargaining units who were discharged when the Roxie Oakland 'Theatre closed on September 6, 1977. immediate and full reinstatement of their former jobs or, if those jobs no longer exist. to sub- stantiall? equivalent positions. without prejudice to their seniority or other rights and privileges, and make those employees whole for their loss of earnings and other hene- fits in the manner set forth in the section of this Decision entitled "The Remedy'." (d) Make the individuals who were hired in those bar- gaining units after the Roxie Oakland Theatre reopened on September 28, 1977. whole for any losses they max have suffered by reason of the failure and refusal hb said Em- ployers to honor the collective-bargaining agreements de- scribed above. including all contributions said Unions would have received in accordance with those agreements. in the manner set forth in the section of this Decision enti- tled "The Remedy." (e) Preserve and. upon request. make available to the Board or its agents. for examination and copying. all pa'- roll records. social security payment records, timecards. personnel records and reports, and all other records neces- sar? to analyze the amount of backpa' due. (f) Post at the Roxie Oakland Theatre copies of the at- tached notice marked "Appendix." 21 Copies of said notice. on forms provided bh the Regional Director for Region 32. after being duly signed by said Emploers. shall be posted by them immediately upon receipt thereof, and be main- tained by them for 60 consecutive days thereafter. in con- spicuous places. including all places where notices to em- plovees are customarily posted. Reasonable steps shall be taken by said Employers to insure that said notices are not altered, defaced, or covered by an, other material. (g) Notify the Regional Director for Region 32, in srit- ing. within 20 days from the date of this Order, what steps theN have taken to comply herewith. I1i tlh ei, il llhat Ilhis ()ricr C enforcd h .a jud Leni of a. t llied Stale ( urt f ppeals, the .lds n the lollhe re.ldll~ "Polcd h O)dcr of the Ntablth [ abor Relations Board" shall mvd "Psted Purxuanl io Julid lelt iof the Illcd States ( urt If Appeals Linforcini in ()rder f Ihc N .t,,njl. I .lh r Rlaion. , Blrd'" BLUMENEELD TH ATRES CIRCIT Copy with citationCopy as parenthetical citation