C-F Air Freight, Inc.,Download PDFNational Labor Relations Board - Board DecisionsJan 18, 1980247 N.L.R.B. 403 (N.L.R.B. 1980) Copy Citation C-F AIR FREIGHT, INC. C-F Air Freight, Inc. and Local Union 851, Interna- tional Brotherhood of Teamsters, Chauffeurs, Warehousemen and Helpers of America. Case 29- CA-5860 January 18, 1980 DECISION AND ORDER BY CHAIRMAN FANNING AND MEMBERS PENELLO AND TRUESDALE On August 14, 1979, Administrative Law Judge Ivar H. Peterson issued the attached Decision in this proceeding. Thereafter, the General Counsel filed exceptions and a supporting brief, and Respondent filed exceptions, a supporting brief and a supplement thereto. Pursuant to the provisions of Section 3(b) of the National Labor Relations Act, as amended, the National Labor Relations Board has delegated its authority in this proceeding to a three-member panel. The Board has considered the record and the attached Decision in light of the exceptions and briefs and has decided to affirm the rulings,' findings, and conclusions,2 of the Administrative Law Judge and to adopt his recommended Order.3 ORDER Pursuant to Section 10(c) of the National Labor Relations Act, as amended, the National Labor Relations Board adopts as its Order the recommended Order of the Administrative Law Judge, and hereby orders that the Respondent, C-F Air Freight, Inc., Brooklyn, New York, its 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 Administrative Law Judge. ' Respondent has excepted to certain credibility findings made by the Administrative Law Judge. It is the Board's established policy not to overrule an administrative law judge's resolutions with respect to credibility unless the clear preponderance of all of the relevant evidence convinces us that the resolutions are incorrect. Standard Dry Wall Products. Inc., 91 NLRB 544 (1950), enfd. 188 F.2d 362 (3d Cir. 1951). We have carefully examined the record and find no basis for reversing his findings. In finding that Respondent's decision to cease its JFK facility and subcontract the work was not made prior to the advent of union activity, the Administrative Law Judge relied, in part, on statements showing animosity toward the Union herein made by Respondent's counsel at a settlement conference. In adopting the Administrative Law Judge's finding, we do not rely on these statements, but we base our decision herein on his other stated reasons which are fully set forth in his Decision. ' The Administrative Law Judge found that on March 15, 1977, Respon- dent made an unlawful implied promise of benefit in violation of Sec. 8(aXI) of the Act. He ordered that Respondent cease and desist from engaging in such conduct; however, he inadvertently failed to include such specific prohibition in the notice. Accordingly, we hereby modify the attached notice to conform to his recommended Order. 247 NLRB No. 60 APPENDIX NOTICE To EMPLOYEES POSTED BY ORDER OF THE NATIONAL LABOR RELATIONS BOARD An Agency of the United States Government After a hearing at which all parties had the opportuni- ty to present their evidence, it has been decided that we violated the National Labor Relations Act, as amended. We have been ordered to post this notice. We intend to carry out the Order of the Board and abide by the following: The Act gives employees the following rights: To engage in self-organization To form, join, or assist any union To bargain collectively through representa- tives whom they themselves select To engage in activities together for purposes of collective bargaining or to act together in order to seek improvement in their wages, hours, working, conditions, and other terms and conditions of employment To refrain from any and all such activities. WE WILL NOT threaten our employees with the closing of any of our facilities because the employees engage in union activities. WE WILL NOT discriminate against any of our employees because they engage in union activi- ties. WE WILL NOT promise our employees econom- ic benefits in order to dissuade them from engaging in union activities. WE WILL offer Michael O. Lynch, Gene Reichardt, Mildred Sipolino, and Marguerite Sommese immediate and full reinstatement to his or her former job with us, without loss of seniority or other rights benefits, or, if that job no longer exists, then we will offer him or her employment to a substantially equivalent posi- tion; and WE WILL make each of them whole, for all loss of earnings and other benefits suffered as a result of our discrimination against them by having failed to reinstate them after the strike in 1977 at our John F. Kennedy airport terminal, plus interest. WE WILL immediately resume the clerical operations formerly performed at our John F. Kennedy airport terminal. This work will be performed either at our former location of the John F. Kennedy terminal or at some other reasonable location within the metropolitan New York area. The clerical services which will be performed will be done by our own clerical employees. Preference for those clerical positions 403 DECISIONS OF NATIONAL LABOR RELATIONS BOARD will be given to Michael O. Lynch, Gene Rei- chardt, Mildred Sipolino, and Marguerite Sommese. WE WILL NOT in any like or related manner interfere with, restrain, or coerce any of our employees because they engage in any of the protected activities described in Section 7 of the Act. C-F AIR FREIGHT, INC. DECISION STATEMENT OF THE CASE IVAR H. PETERSON, Administrative Law Judge: The hearing in this case was held in Brooklyn, New York, beginning July 17, 1978, and continued for 2 consecutive days thereafter, based on the complaint issued by the Regional Director for Region 29 on December 7, 1977,' which in turn was based on a charge filed on August 29 by Local Union 851, International Brotherhood of Teamsters, Chauffeurs, Warehousemen and Helpers of America, herein called the Union. Briefly stated, the complaint alleges that Respondent, by its eastern division manager, David Condon, in March threatened to close Respondent's John F. Kennedy airport terminal if the employees persisted in their union activity and also made sundry threats and promises in order to dissuade the employees from engaging in union activity. In addition, the complaint alleged that Respondent discrimi- nated against employees by failing to recall certain employ- ees to work after they unconditionally applied for it at the end of a strike, and further discriminated against its employees by closing down one of its facilities and unlawful- ly subcontracting its clerical work. By these acts the complaint alleged that Respondent engaged in unfair labor practices violative of Section 8(a)(1) and (3) and Section 2(6) and (7) of the National Labor Relations Act, as amended. In its answer dated December 8 Respondent admitted certain jurisdictional allegations but denied that it had engaged in any conduct violative of the Act. Upon the entire record in the case, including my observa- tion of the witnesses as they testified, and consideration of the briefs filed with me on or about September 25, 1978, by counsel for both parties, I make the following: FINDINGS OF FACT 1. JURISDICTION Respondent, a Delaware corporation, at all times material maintained its principal office and place of business in San Mateo, California, where it was and is engaged in the business of interstate air freight forwarding and performing related services. All dates hereinafter are 1977 unless otherwise stated. Substantially all material facts are not in dispute. Thus, the facts recited in this section are a composite of the credited testimony of witnesses of the General Counsel and Respondent where they agreed or which otherwise appears uncontradicted. Where variations exist which are deemed material they are discussed and resolved. Although only the facts considered relevant During the calendar year immediately preceding issuance of the complaint, a representative period, Respondent performed services valued in excess of $50,000, of which services valued in excess of $50,000 were performed in and for various enterprises located in States other than Califor- nia. The activities involved herein relate to its terminal maintained by Respondent in Queens, New York. This location will be hereinafter called the JFK facility. Respondent admits, the record reflects, and I find that it is an employer engaged in commerce within the meaning of Section 2(2), (6), and (7) of the Act. The parties agree, the record reflects, and I find that the Union is a labor organization within the meaning of Section 2(5) of the Act. 11. THE ALLEGED UNFAIR LABOR PRACTICES A. The Facts' Among the employee complement at the JFK facility were alleged discriminatees M. Sommese, M. O. Lynch, M. Sipolino, and G. Reichardt. These individuals, together with T. Vessell and P. Jiminez-Alicea,' comprised Respondent's clerical staff at the JFK facility. In addition, Respondent maintained a sales and manage- ment force at this facility, the functions of which were to consolidate customer air shipments destined for transit from the airport, and act as an agent for receipt, forwarding, and distribution by truck of shipments which had arrived by air at the airport. The actual trucking service was provided to Respondent by an independent contractor, Air-Surface Coordinators, Inc. (hereinafter called Air-Surface). The president and chief executive officer of Air-Surface was Todd Breen. Edward Ryby was terminal manager of Respondent's JFK facility. It is undisputed that Ryby was a statutory supervisor at all relevant times. It is conceded that the JFK facility had been consistently losing money for approximately 7-y: years before the events surrounding the instant case. Thus, Respondent's operations at the JFK facility never succeeded in turning a profit for more than 2 consecutive months during the entire 7-y-year period it was open. In that timespan Respondent's overall financial picture, nationwide, improved from one of a loss of S700,000 in 1970 to a profit at the end of 1977 in excess of $1.8 million. During this time the JFK facility continued to fail to produce any profit. Apparently in an attempt to make the JFK facility a profitable operation, Condon was appointed division manag- er for Respondent's eastern division. This appointment was made on approximately February 7. Condon's first assign- ment was to reverse the chronic operating losses of the JFK facility. Condon's appointment was made by Respondent's eastern area manager, Donald G. Berger. Without contradiction, Berger testified that he visited the JFK facility during the to the issues are recited, I have considered all matters litigated and arguments of counsel thereon. Omitted matter is deemed not credible, irrelevant, or superfluous. Vessell and Jiminez-Alicea are not alleged as discriminatees. Their status will be more particularized, infra. 404 C-F AIR FREIGHT, INC. second or third week of September 1976. At that time Berger spoke to Ryby about the "uneconomical standing of that facility." Berger asked Ryby for suggestions for improve- ment. Ryby told Berger that he had heard rumors the JFK facility would be closed and its work transferred to another of Respondent's locations situated at the neighboring Ne- wark, New Jersey, airport. When Condon was appointed division manager in Febru- ary, Berger introduced Condon to Ryby and told Ryby that Ryby was to continue as terminal manager responsible for operations, subject to the overall direction of Condon, who was to concentrate his efforts on increasing sales. Berger also told Ryby that he wanted the JFK facility to continue operating, commenting that this would depend upon the facility becoming financially profitable. In February Condon hired some new sales people and a sales manager. Condon also made certain other personnel changes at the JFK facility. Among those changes was the acquisition of a new personal secretary. As a result, alleged discriminatee Sipolino, who could not take dictation, was moved from being a personal secretary to more general secretarial work. On February 23 Respondent's president, Roger Curry, wrote a memorandum to Berger. The full text of Curry's memorandum appears as follows: DON BERGER-IND cc: Rich Bryner-EXO' SUBJECT: JFK Operation Don, at the February 23, 1977 Meeting of the Board of Directors, of C. F, Air Freight, Inc., it was agreed that we will track on the operation of the JFK facility based on the operating plan submitted in late 1976. I have attached a copy of the schedule which was submitted to the Board with an agreement that it will be up-dated monthly to reflect the actual operating results. I know that you and Dave [Condon] are already working on the rates from JFK, however, feel that we must consider charging a premium rate to ever make JFK profitable. I think that most customers that are cogni- zant of service requirements in the New York City area will tolerate the high rate. The customers that are completely rate conscious probably will never contrib- ute to profitability [sic] and should not be solicited anyway. Additionally, it is imperative that Dave and his sales organization follow the marketing plan precisely so that we are soliciting profitable freight. I am confident that Dave and the new organization in the Metropolitan New York area will be able to achieve and surpass this plan. W. Roger Curry W.R.C.:js Rich, I really took more heat about this than is indicated in Don's letter. We did buy some time however, and will continue to report to the Board on ' Rich Bryner is not otherwise identified. The text of the memorandum reveals that he is a managerial official of Respondent. I do not consider that the apparent inaccuracy of recall of dates impedes the veracity of any witness. Rather, my credibility resolutions are based upon the demonstrated ability of a witness to recall events my observation of the demeanor of each witness, the weight of the respective evidence provided by the attached schedule. However, I think we need to start formulating a study approach to determine how we can wind down in JFK in the event we are forced to. Also, I want to look at the Dean Whitter account pretty carefully. I think all of the specials that we are eating probably results in this account being pretty marginal. If the service is required we should be talking to the customer about it. If on the other hand, if they want something for nothing we should do without the account. In early March clerical employee Sipolino asked Ryby to investigate rumors that she had heard that she would be discharged or laid off. Ryby met with Condon privately to inform him that Sipolino was upset. Condon told Ryby he intended to lay off Sipolino for 2 weeks and then recall her. At Ryby's suggestion Condon agreed to speak with Sipolino. That same day he met with Sipolino, Ryby, and clerical employee T. Vessell in his office. Ryby and Vessell testified to what occurred at this meeting. Each of their versions is in substantial accord with the other. Sipolino, who appeared as a General Counsel witness, was not asked to relate what occurred at this meeting. Condon testified that he did not recall having the meeting with Sipolino, Ryby, and Vessell. I credit Ryby and Vessell in their descriptions of this conference.' I consider Ryby and Vessell to have been forthright in their narrations of what occurred at this meeting. Moreover, each of them demonstrated a positive recall of this event. In contrast, Condon simply had no recollection of this incident, although he did not explicitly deny that it took place. I place little significance in Sipolino's failure to testify about this conver- sation. In general, Sipolino exhibited only faint memory of events. In this and other aspects of the complaint allegations Sipolino cast very little light upon factual occurrences. Thus, her overall testimony was relatively brief and of limited probative value. In accordance with my findings contained in the para- graph preceding above, I find that a meeting among Condon, Ryby, Vessell, and Sipolino did occur between March I and 15. At this meeting the following occurred. Condon told Sipolino that he would lay her off for 2 weeks but then would recall her. Vessel remarked that if Condon could do that to Sipolino no one had any security, and "we needed a union there to be secure." Condon responded that the JFK facility would be closed if a union were brought in to represent the employees. At approximately the same time as the meeting described above, Condon was informed by Breen that Respondent's employees were engaged in union organizing. After speaking with Breen, Condon decided to hold a general staff meeting. He advised Berger of his intention. Berger supported the idea and said that he wanted to attend that meeting. On March 15 the general staff meeting was held. It was attended by the clerical, sales, and managerial personnel of the JFK facility. Berger did not attend because of inclement the witnesses, established or admitted facts, inherent probabilities, and reasonable inferences which may be drawn from the record as a whole. Northridge Knitting Mills, Inc.. 223 NLRB 230 (1976): Warren L Rose Castings. Inc.. d/b/a V & W Castings. 231 NLRB 912, 913 (1977); Gold Standard Enterprises Inc. e al., 234 NLRB 618 (1978). 405 DECISIONS OF NATIONAL LABOR RELATIONS BOARD weather. Berger testified that he told Condon to assure all employees there would be no loss of jobs to discover what their complaints were, and to report to him what occurred. Condon, Ryby, and Operations Manager R. Madison testified as to this general meeting. Also, clerical employees Reichardt, Vessell, and Sipolino recounted what occurred on March 15. In addition, sales representatives C. Pohlig and T. Thomas were presented by Respondent to describe the events of that date. My factual findings, infra, of what happened at the March 15 meeting are derived from a composite of the testimony of each witness who testified on the subject, except Pholig and Thomas. I find no substantial variation of testimony in the relevant and critical areas among the witnesses on whom I rely. Pholig's version is vague and generalized. Pholig explicitly was unable to recall what Condon may have said about a union. Similarly, Thomas testified that he could only remember that Condon apologized for a communications gap between "operations and sales." Thomas could recall absolutely nothing else Condon might have said at the meeting. In fact, Thomas was not sure that the meeting had been attended by clerical employees. A fair examination of the probative testimony depicts the March 15 meeting as follows. Condon said that he hoped to reestablish communications with the employees. He noted the poor financial situation of the JFK facility. He discussed his plans for improvement. Condon also said that he knew the employees were considering unionizing. I find that he told the employees if they unionized the JFK facility would close. Condon denied he made the threat to close. I do not credit this denial. I conclude that it is plausible that the threat to close was made. Respondent's concern over the financial plight of the JFK facility was a recurring theme for discussions among Respondent's managerial personnel be- fore March 15. Indeed, that fiscal problem pervades Respon- dent's defense. It is reasonable to presume unionization of employees at the JFK facility was viewed by Respondent's management as an impediment to their efforts to reverse the financial losses. The record reflects that Respondent dealt with unions at others of its terminals. Thus, Respondent had experienced the additional cost potential of unionization. In these circumstances, together with my finding that Condon uttered the same threat to Vessell a few days before the March 15 meeting, it is likely that Condon made the threat (on March 15) attributed to him by Reichardt and Sipolino. Further, at the March 15 meeting Condon pleaded for more time in which to implement his plans to make the JFK facility more profitable. Condon testified that he said "in the event that I am successful [in ameliorating the financial situation], that they [the employees] would be successful because . . . increased sales . . . means the jobs would grow, there would be additional jobs, there would be promotions within the terminal." Condon also told the employees that he would personally drive them to the union hall if they still were not satisfied. ' To the extent that this action is contrary to the use of Condon's testimony in developing the composite view of the March 15 meeting, it is permissible. "[Nlothing is more common than to believe some and not all of what a witness says." Edwards Transportation Company. 187 NLRB 3 (1970), enfd. per curiam 437 F.2d 502 (5th Cir. 1971). ' Ryby testified that the conversation occurred in the street. Berger claimed Finally, Condon apologized for the manner in which he had treated Sipolino and told the employees that he rescinded Sipolino's layoff order. After Condon concluded his remarks he turned the meeting over to Scott Holbrook (not otherwise identified). Holbrook elaborated on the plans for increasing sales. This was followed by a question and answer period, after which the meeting ended. Two days after the meeting held by Condon, Berger spoke with Ryby privately.' Ryby testified that Berger spoke to him about the Union. Berger testified that he could not recall whether Ryby mentioned a union to him. Also, Berger testified that he did not recall whether he mentioned "anything about a union to him [Ryby]." I credit Ryby because he was specific and certain in his recollection of this conversation while, in contrast, Berger was vague on this issue. Moreover, Ryby's account is inherently consistent with other incidents in the scenario of events. Thus, it is undisputed that at a June meeting of employees where they were discussing unionization Ryby apprised other employees of Berger's earlier references to a union. Finally, it is reasonable to believe that erger addressed the union issue as asserted by Ryby. Such a conversation is probable, given Berger's earlier comment to Condon that he approved of Condon's meeting and intended to attend it. Accordingly, I find that within days of Condon's March 15 staff meeting Berger asked Ryby for a report on the union activity. Ryby told Berger that most of the employees were not satisfied. He said that the employees were afraid of losing their jobs and were considering a union. Berger replied, "Well, you know, if they join a union, tell them I'm going to padlock the door."' Ryby told Berger that he thought the employees were willing to take that chance, but Berger asked him to talk to them to see what he could do. There is no evidence of the extent either the employees or Respondent's management officials considered or discussed an organizational effort between the Berger-Ryby conversa- tion and early June. In early June, at the request of some of Respondent's clerical employees, Ryby contacted Union President Mi- chael Hunt. Ryby told Hunt that the employees were considering joining a union. Hunt gave Ryby copies of the local contract and pension and welfare booklets. Hunt also explained the Union's benefits to Ryby. Ryby then signed a union authorization card. On June 10 Respondent's six clerical employees, together with Ryby, met at the home of a clerical employee, alleged discriminatee M. Lynch. There they discussed what benefits they hoped to obtain if they joined the Union. It is at this meeting that the threats of plant closure earlier made by Condon and Berger were discussed and considered. Ryby participated in those discussions. He told those present that Berger and Condon had earlier threatened to close the JFK facility if the employees unionized. On June 12 Ryby and the six clerical employees met with Hunt at the Union's office. They discussed the benefits that that it occurred indoors on a stairwell. This conflict needs no resolution. What is relevant is that Ryby and Berger agree that they had an impromptu discussion shortly after the March 15 staff meeting. ' Apparently because Ryby was a supervisor, the quoted statement is not alleged to be a violation of the Act. 406 C-F AIR FREIGHT, INC. the Untlion hoped to obtain for them. The employees signed authorization cards. Hunt told them he would request Resporldent to recognize the Union. In addition, the employees agreed to strike against Respondent the next day. Shortly after the June 12 meeting ended Hunt telegraphed Respondent demanding recognition. The telegram was received by Respondent on June 12. The following day the clerical employees began their strike and picketed the JFK facility. About 10 a.m. Hunt, together with Ryby and Vessell, met with Condon, who asked how the strike could be terminated. Hunt told Condon the picketing would end if he signed a contract or a letter of recognition. Condon said that he did not have the authority to sign a contract or issue a recognition letter. Condon said that he would contact Respondent's headquarters in this connection. On July 10 the Union, by telegram, unconditionally offered to return the striking employees to work the following day. On July 11 the employees and Ryby appeared with Hunt at the JFK facility at approximately 8 a.m. They were denied entrance by a security guard. Hunt immediately took the employees to the Board's Office. Also on July 1II Condon responded to the Union's offer to return the strikers to work. He telegraphed that it would take time to reinstate normal operations at the JFK facility. Condon wrote "as soon as operations are reinstated, [Re- spondent] will communicate with each of the employees and offer employment to the extent that jobs become available." On July 14 Respondent offered reinstatement to Vessell and Jiminez-Alicea. Those two employees returned to work on July 18. They remained in Respondent's employ for approximately 2 weeks when, on advice of the Union, they left their employment and once again joined the picket line.9 None of the other four striking clerical employees has been offered reinstatement to his or her former or substan- tially equivalent position of employment. Representatives of the parties met at the union office on or about August 13. Their counsel appeared with them. Thus, Attorneys Burstein and Simon were present for Respondent and the Union, respectively. During this meeting the parties discussed how they might resolve their differences. Burstein said that Respondent desired to continue to operate in New York City and indicated that it could do so at a location other than at JFK and with a unionized trucker. Hunt asked Burstein who would comprise Respondent's clerical comple- ment and to which labor organization would they belong if Respondent opened a facility away from JFK. Burstein responded that it would be any union but his [Hunt's]; that there was nothing personal involved, but it would not be Local 851 that would represent Respondent's clericals at any facility Respondent opened away from the existing JFK facility. The strike and picketing at the JFK facility which began on June 13 continued on a 24-hour-a-day basis to approxi- mately Labor Day. During this 2-y-month period the Union also picketed Respondent's Newark, New Jersey, facility, as well as facilities in Chicago and San Francisco. The picketing at Respondent's Newark airport facility ended sometime before Labor Day. The Newark facility resumed normal operations after the picketing terminated and contin- ued to operate at least until the instant hearing. There is no evidence that the Union sought to represent any of Respon- dent's employees at the Newark facility. During the first week of September, Respondent consum- mated a subcontracting arrangement with Chimento Truck- men, Inc. Respondent leased space in Chimento's building at 11 West Street, Brooklyn, New York. Respondent contract- ed out all its clerical and trucking work to Chimento. Chimento assigned three full-time and at least two part-time clerical employees to perform the clerical functions of Respondent's operation. Respondent continues to employ its own supervisory personnel as well as salesmen. These individuals operate out of I I West Street. Some of these personnel are identical to those who were at work for Respondent when it was physically located at the JFK facility. B. Analysis and Conclusions I. The threat Complaint paragraph 8(a) alleges that in March Condon threatened employees with "discharge, plant closure and other reprisals" for engaging in union activity. This allegation emanates from two incidents, one during Condon's discussion with Sipolino, Vessell, and Ryby a few days before the March 15 staff meeting, and one during the March 15 staff meeting. No extensive discourse is required to resolve this allega- tion. The credited testimony demonstrates that a violation occurred, as alleged. Thus, the facts reveal that Condon told Vessell, Sipolino, and Ryby the JFK facility would be closed if a union became the employees' bargaining representative. This statement was made during Condon's meeting with those individuals. Also, at the March 15 general staff meeting Condon told the employees that if they unionized the JFK facility would close. The question of the propriety of Condon's statements to the employees about plant closure must be decided in light of the principles stated in N.LR.B. v. Gissel Packing Co., Inc., 395 U.S. 575 (1969). There the Court established certain standards for determining whether an employer's statements about the effects of unionization are permissible. The Court indicated that any evaluation of such employer's statements "must take into account the economic dependence of the employees on their employers, and the necessary tendency of the former, because of that relationship, to pick up intended implications of the latter that might be more readily dismissed by a more disinterested ear" (395 U.S. at 617). Accordingly, the Court continued: . . . an employer is free to communicate to his employees any of his general views about unionism or any of his specific views about a particular union, so long as the communications do not contain a "threat of reprisal or promise of benefit." He many even make a predicion as to the precise effect he believes unioniza- tion will have on his company. In such a case, however, ' Neither Vessell nor Jiminez-Alicea is alleged as a discriminatee. 407 DECISIONS OF NATIONAL LABOR RELATIONS BOARD the prediction must be carefully phrased on the basis of objective fact to convey an employer's belief as to demonstrably probable consequences beyond his con- trol or to convey a management decision already arrived at to close the plant in case of unionization. If there is any implication that an employer may or may not take action solely on his own initiative for reasons unrelated to economic necessities and known only to him, the statement is no longer a reasonable prediction based on available facts but a threat of retaliation based on misrepresentation and coercion.... [395 U.S. at 618.] Judged by these standards, I find Condon's plant closing remarks unlawful. First, the statements did not convey a management decision already arrived at to close the plant in the event of unionization. Clearly, Condon's remarks convey the impression such a decision would be made after the employees exercised their right to select the Union as their bargaining representative. Second, I shall find hereinbelow that the economic ground advanced by Respondent as the basis of a lawful prediction relative to the plant closing remarks is spurious. Thus, I perceive the unquestioned poor financial situation of Respondent to have been no serious factor in the decision to close the JFK facility and subcontract its work until there was overt union activity among Respondent's clerical employees. When Condon made the plant closing statements the employees had not even approached the Union. Respondent was not yet confronted with contract demands. In light of the continua- tion of the JFK facility for over 7 years of losing financial standing, there is no predicate on which to base a claim that Condon's comments merely were predictions. Upon the foregoing, I find that Respondent issued the threats to close the plants in violation of Section 8(a)(1) of the Act, as alleged in paragraph 8(a) of the complaint. 2. The promises It is alleged in complaint paragraph 8(b) that in March Condon offered and promised promotions, job security, and other unspecified benefits to its employees to dissuade them from engaging in union activity. This allegation is derived from certain of Condon's March 15 remarks. As stated above, at the March 15 staff meeting Condon asked the employees' indulgence to give him a chance to make the JFK facility more financially secure. In this connection Condon opined that his success would innure to the employees' benefit "because . . . increased sales . . . means the jobs would grow, there would be additional jobs, there would be promotions .... " Arguably, there is merit to Respondent's contention that the above-quoted statements are privileged. Obstensibly the words are lawful predictions within the Gissel rationale. Moreover, Condon's words are ambiguous when viewed in isolation. However, examination of the total circumstances herein persuades me that the General Counsel's position should prevail. The test of legality is whether Respondent engaged in conduct which it may reasonably be said tends to interfere with the free exercise of employee rights under the Act. Electrical Fittings Corporation, A Subsidiary of I- T-E Imperi- al Corporation, 216 NLRB 1076 (1975). The key to resolution of the instant issue is based upon a conclusion as to whether the conduct has coercive or interfering effect upon the free exercise of the employees' statutory rights. Impact Die Casting Corp., 199 NLRB 268, 271 (1972). Condon's alleged promises were made in the context of a discussion undeniably designed to improve communication between Respondent and its employees, to advise them that their interest in unionization was known, and to ponder the effect of that activity relative to Respondent's untenable financial condition. After establishing these items as his purposes in meeting with the employees, Condon clearly asked them to forebear in their organizing efforts. Standing alone, such a request is not necessarily unlawful. However, it is in this setting that Condon spoke the alleged unlawful phrases. There is convincing evidence that he meant his words to contain the implication that the forebearance he requested would result in improved working conditions such as promotions. Thus, Condon's offer to drive the employees to the union hall if they were not satisfied sheds light upon the meaning of his message. From such a challenge, the employees reasonably could have expected that promotions would be forthcoming if they were to delay their organiza- tional efforts. In my view, though this issue is not free from doubt, the totality of circumstances present in the case at bar warrants the conclusion that Condon's March 15 reference to promo- tions constitutes an unlawful implied promise of benefit in violation of Section 8(a)(1) of the Act. I so find. 3. The discrimination Complaint paragraphs 10(a) and (b) allege that Respon- dent discriminatorily failed to recall the four strikers identified in the complaint. It is alleged, in complaint paragargaph 12, that the subcontracting to Chimento also was discriminatory. In effect the General Counsel contends that both the failure to recall all the strikers to work after having unconditionally applied to return from the strike and thereafter closing the JFK facility and the subcontracting of its clerical work were part of a studied scheme to prevent unionization among clericals at the JFK facility. Respondent agrees that it has not offered reinstatement to the four alleged discriminatees. Also, Respondent acknowl- edges that its clerical functions had been subcontracted to Chimento. It claims that both circumstances were based solely on economic conditions. Specifically, Respondent contends the decision to close the JFK facility had been made in February, clearly before any hint of union activity among the employees. Moreover, Respondent asserts that the only cause for that decision was the concededly unprofitable position of the JFK facility. An employer has a right to abandon all or part of his business rather than deal with a union. Textile Workers Union ofAmerica v. Darlington Manufacturing Co., 380 U.S. 263 (1965). However, if he chooses to avoid dealing with the union by staying in business and subcontracting the work that would have been done by the employees who favor the union, thereby effectively discharging such employees, the 408 C-F AIR FREIGHT, INC. employer violates Section 8(a)3) and (1) of the Act. Walker Company, 183 NLRB 1322 (1970), and cases cited therein. The facts in this case persuade me that Respondent subcontracted its JFK facility work and failed to reinstate the four alleged discriminatees after the strike because of their union activities. Respondent has not gone out of business. It simply subcontracted the work of one of its many facilities. The subcontracted work would have been performed by the clerical employees whose interest in the Union was obvious. As earlier noted, the JFK facility consistently lost money for 7-Y years before the alleged unlawful conduct. It is clear that Respondent considered the JFK facility a strategically important operation. Thus, the consistent financial losses were countenanced for the protracted time involved because the facility was located at an eminent east coast international airport. As a prudent employer, Respondent tried to correct the poor financial operation of the JFK facility. Thus, when Berger visited that facility in September 1976 he asked Ryby for suggestions to improve the operations; Respondent appointed Condon in February to provide a fresh managerial outlook to that operation; at Condon's appointment, Berger told Ryby that he wanted the facility to continue operating; Condon's personnel changes included enlarging the sales staff; and Curry's memorandum of February 23 discussed procedures for monitoring the JFK facility's operations according to a plan conceived in late 1976. This plan admittedly projected those operations through 1977. The foregoing factors warrant the conclusion, which I make, that at least into February, Respondent's highest management officials had not definitely decided to terminate the opera- tions of the JFK facility. Instead, the enumerated activities point to strenuous efforts to continue the existence of the JFK facility. Why then did the Respondent precipitously subcontract the work performed at the JFK facility and fail to recall the four alleged discriminatees? The answer is found in Respon- dent's motivation. It is the General Counsel's burden to establish a particular motivation on the part of an employer-a discriminatory motivation-in order to prove the instant allegations. Sup- port for a finding of unlawful motivation "is augmented [when] the explanation of the [employer's conduct] offered by the Respondent [does] not stand up under scrutiny." N.LR.B. v. Bird Machine Company. 161 F.2d 589, 592 (Ist Cir. 1947). A fair assessment of all the record evidence persuades me that Respondent's defense does not withstand scrutiny. While I have considered all the relevant evidence and arguments thereon, I perceive the following factors vitiate Respondent's defense and provide the basis for finding that Respondent harbored a discriminatory motive: (a) Condon's response to Vessell's suggestion that the employees possibly needed a union and to Breen's advice that organizational efforts began was immediate and strong. Thus, Condon unlawfully threatened to close the plant and promised economic benefits. (b) Respondent's contention that the decision to close was made in February, before the advent of the union activity, is a patent contrivance. Curry testified that he and Respon- dent's board of directors made the decision to close in February. However, a careful reading of his February 23 memorandum reflects only that such a decision was in contemplation. Similarly, on this subject Berger was inconsistent. He claimed that the decision to close was made in February. Nonetheless, when he introduced Condon to Ryby, Berger told Ryby that the JFK facility would remain open. Clearly, this remark does not reflect the purported decision to close the operation. Additionally, Berger later instructed Condon to assure the employees at the March 15 meeting that they would suffer no loss of jobs. This directive, too, belies the existence of the February decision to close. As previously noted, but not to belabor the point, Curry's February 23 memorandum is phrased in positive language, contrary to an intention to close the JFK facility. Specifical- ly, the February 23 memorandum refers to the operating plan developed "in late 1976." Further, the text shows that Respondent's board of directors apparently approved that plan. Thus, the February 23 memorandum indicates that there would be monthly updates of the JFK facility operations. That memorandum cautions adherence to the plan by Condon. Moreover, the memorandum contains a hopeful note that Condon "and the new organization . . . will be able to achieve and surpass" the plan. Also, the memorandum strongly suggests the continued and uninterrupted operation of the JFK facility for an indeterminate period when Curry used the words "we did buy some time." Finally, there is language in the memorandum which virtually destroys the contention that a formal decision to close had already been made. Thus, Curry wrote to Bryner "we need to startformulating a study approach to determine how we can wind down in JFK in the event we areforced to. " (Emphasis supplied.) The italicized words reflect the antici- patory nature of management activity regarding a possible closing of the JFK facility. It is straining to conclude that the closing of the JFK facility was a fait accompli in February. Viewed against the backdrop of this documentary evi- dence, I consider the oral testimony of Curry and Berger that the decision to close and subcontract was made in February is incredible and illusory. (c) Shortly after the March 15 staff meeting Berger revealed, in direct terms, Respondent's true motivation. Thus, he told Ryby that if the employees unionized he would "padlock the door." Ryby was a supervisor at the time. It is entirely appropriate to use a conversation between two supervisors as evidence to uncover motivation. I find Berger's "padlock" remark a persuasive and valuable tool in evaluating Respondent's motive. (d) There is some evidence that Respondent engaged in disparate treatment against the JFK facility employees. As indicated above, the Union picketed Respondent also at the nearby Newark, New Jersey, facility. There is no evidence that any Newark employee was adversely affected or that Respondent made any move to terminate the Newark operation. I acknowledge that the record does not show Newark was operating at a financial loss. Nonetheless, for all the reasons set forth herein (particularly the extended length 409 DECISIONS OF NATIONAL LABOR RELATIONS BOARD of time which JFK lost money), I do not consider the financial situation of Newark as significant an element as the simple fact that there was no union activity among the Newark employees. (e) Respondent's underlying motivation was finally dem- onstrated at the August 13 "settlement" conference. There, Respondent's counsel expressed antagonism specifically against the instant Union. Expressions of attitude toward unions made subsequent to the alleged unfair labor practices are appropriately considered as evidence of animus. Jeffrey P. Jenks d/b/a Jenks Cartage Company, 219 NLRB 368, 369 (1975). The above-stated factors provide the basis for finding a discriminatory motive based on both direct and circumstan- tial evidence. Respondent has argued that circumstantial evidence is not appropriately used to determine unlawful motives or intent. This argument is erroneous. In Shattuck Denn Mining Corporation (Iron King Branch) v. N.L.R.B., 362 F.2d 466, 470 (9th Cir. 1966), the Ninth Circuit Court of Appeals observed: Actual motive, a state of mind, being the question, it is seldom that direct evidence will be available that is not also self-serving. In such cases, the self-serving declaration is not conclusive; the trier of fact may infer motive from the total circumstances proved. Otherwise no person accused of unlawful motive who took the stand and testified to a lawful motive could be brought to book. If he finds that the stated motive . . . is false, he certainly can infer that there is another motive. More than that, he can infer that the motive is one that the employer desires to conceal-an unlawful motive-at least where . . . the surrounding facts tend to reinforce that inference. The Shattuck Denn principle was expressly adopted by the Board in Atlantic Metal Products, Inc., 161 NLRB 919, 922 (1966). The test for appraisal of Respondent's defense is aptly stated by the Eighth Circuit Court of Appeals in McGraw- Edison Co. v. N.L.R.B., 419 F.2d 67, 75 (1969) as follows: Intent and motive are subjective and often may be proved only by circumstantial evidence.... Illegal motive has been held supported by a combination of factors, such as "coincidence in union activity and discharge.... general bias or hostility toward the Union" . . . variance from the employer's "normal employment routine" . . . and an implausible explana- tion by the employer for its action ... Applying the above teachings I conclude that the record as a whole supports the General Counsel's contentions that the subcontracting and the failure to reinstate the alleged discriminatees was motivated by antiunion considerations. In evaluating Respondent's motivation and its principal defense, I have accorded due consideration to the unrefuted economic analyses in evidence and to the testimony of each of Respondent's witnesses who testified as to the poor financial situation of the JFK facility. Even assuming the validity of the economic defense, I would find it pretextual. so At the hearing, I reserved ruling on Respondent's motion to dismiss the complaint. Based on the conclusions herein. Respondent's motion to dismiss is hereby denied. Accordingly, the subcontracting and failure to offer rein- statement nonetheless would violate Section 8(a)(3) and (1) of the Act. The applicable legal authority results from the case of Townhouse T. V. & Appliances, 213 NLRB 716 (1974), as explicated in N.LR.B. v. Townhouse T. V & Appliances, Inc., 531 F.2d 826, 828 (7th Cir. 1976), which stated "it is well settled that an employer violates Section 8(a)(3) and (1) of the Act by subcontracting part of an integrated business and dismissing the persons employed therein if the action is motivated at least in part by antiunion considerations." Upon the assumption that the dire economic strait of the JFK facility presented a justifiable ground to terminate its operations I would find, based on the evidence of unlawful motivation, that the closing was accelerated by the overt union activity among Respondent's employees. Finally, although Respondent's financial evidence of the JFK facility's losses is impressive, I find that reliance on those statistics is misplaced and illogical. It is fallacious to say on the one hand that the JFK facility proves such an economic disaster as to warrant its closing, yet on the other hand to subcontract its work in the circumstances herein. It is undisputed that the subcontracting arrangement with Chimento has not prevented Respondent from suffering financial loss attributable to the subcontracted work. More- over, the record shows no substantial diminution of work after Chimento began performing it. Thus, the managerial and sales force is substantially the same, except that the personnel are on Chimento's payroll. Similarly, the clerical force is approximately identical, Chimento using three full- time and three part-time clericals for Respondent's work. The entire arrangement looms as a charade. Upon all the foregoing I conclude that the record proves by a preponderance of credible evidence that the failure to offer reinstatement to the alleged discriminatees and the closing of the JFK facility were discriminatorily motivated and in violation of Section 8(a)(3) and (I) of 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 LAW10 1. Respondent is an employer engaged in commerce within the meaning of Section 2(2), (6), and (7) of the Act. 2. The Union is a labor organization within the meaning of Section 2(5) of the Act. 3. Respondent interfered with, restrained, and coerced employees in violation of Section 8(a)(1) of the Act in March 1977 by threatening to close its JFK facility because its employees engaged in union activities. 4. Respondent interfered with, restrained, and coerced its employees in violation of Section 8(a)(l) of the Act on March 15, 1977, by promising its employees benefits if they would refrain from engaging in union activities. 5. Respondent discriminated against employees in viola- tion of Section 8(a)(3) and (1) of the Act in and after July 1977 by failing to offer reinstatement to its employees Michael O. Lynch, Gene Reichardt, Mildred Sipolino, and Marguerite Sommese after they made an unconditional 410 C-F AIR FREIGHT, INC. application to return to work and by thereafter closing its JFK facility and subcontracting the clerical work formerly performed at that location. 6. The aforesaid unfair labor practices affect commerce within the meaning of Section 2(6) and (7) of the Act. THE REMEDY Having found that by the above-described conduct Re- spondent violated Section 8(a)(1) and (3) of the Act, I shall recommend that it cease and desist from engaging in such conduct in the future and affirmatively take such action as will dissipate the effects of its unfair labor practices. To remedy the violations of Section 8(a)(1) of the Act, the Order will require Respondent to refrain from engaging in such conduct in the future and advise its employees of that intention in writing. With respect to the discriminatory conduct in violation of Section 8(a)(3), the General Counsel urges that Respondent be required to resume its clerical operations with its own employees and that Lynch, Reichardt, Sipolino, and Sommese be offered reinstatement and be awarded backpay. The General Counsel avers that the discrimination would be adequately remedied if Respondent were required to offer reinstatement to the discriminatees anywhere within the metropolitan New York City area, as an alternative to reopening the JFK facility. Respondent, naturally, advancing the righteousness of its conduct urges that none of the requested remedies should be awarded, and that in any event, resumption of clerical work, reinstatement, and backpay is "unfair" and "unjustified." Additionally, relying on pleadings and the settlement agree- ments from three unfair labor practice cases brought against the Union which derive from the strike herein, it" argues that reinstatement and backpay should not be awarded because the alleged discriminatees had not disclaimed responsibility for or knowledge of the acts which were the subject of the settlement agreements. Respondent asserts that the participation of the discriminatees in the strike is tantamount to their ratification of the Union's alleged misconduct." It is clear that the Board's remedy for discriminatory subcontracting includes a requirement that the offending employer reinstate its former operation together with the discriminatees who had performed such operations. R & H Masonry Supply, Inc., 238 NLRB 1044, fn. 3 (1978); Bashore Meat Products, Inc., 218 NLRB 528, 530 (1975); Florida- Texas Freight, Inc., 203 NLRB 509, 511 (1973). As indicated, Respondent contends that such a remedy herein would be "unfair" and "unjustified." No evidence was adduced to prove these contentions of Respondent. Indeed, the fact that Respondent formulated an operating plan for the JFK facility for the entire year 1977 shows that " Those cases are two secondary boycott cases docketed as Cases 29-CC- 572 and 29-CC-573 and one picket line misconduct case docketed as Case 29- CB-2939. 2 No evidence of specific misconduct engaged in by any of the alleged discriminatees was adduced in the instant hearing. Inasmuch as it is Respondent's burden to prove its contention that any discriminatee is disqualified from reinstatement by virtue of strike misconduct, I do not consider the pleadings and settlements received in evidence sufficiently probative to disqualify any of the discriminatees from reinstatement and backpay. Respondent had intended to persist in operating that facility with its own employees. Accordingly, I conclude that the record does not sufficiently establish that Respondent would suffer undue hardship by application of the Board's usual remedies. Townhouse T. V. & Appliances, supra, particularly the Board's Decision. Therefore, the Order will require that Respondent resume the clerical operations formerly per- formed at the JFK facility and that such resumption could be either at its former location or some other reasonable location within the metropolitan New York City area. Additionally, Respondent will be required to use its own employees to perform those clerical services. Preference for those clerical positions will be accorded to the discriminatees herein. Because I have found that Respondent discriminatorily failed to reinstate Michael O. Lynch, Gene Reichardt, Mildred Sipolino, and Marguerite Sommese, the Order shall require Respondent to offer each of them immediate and full reinstatement to his or her former position and make each whole for any loss of earnings each may have suffered as a result of the discrimination by payment of a sum equal to that which would have been earned absent the discrimina- tion. Those earnings and interest thereon shall be computed in accordance with the Board's established standards con- tained in F. W. Woolworth Company, 90 NLRB 289 (1950), and Florida Steel Corporation, 231 NLRB 651 (1977)." Finally, in order to insure that the Board's customary notice is brought to the attention of all interested employees, the Order will require Respondent to mail a copy of the notice to each employee on Respondent's payroll at the JFK facility during the payroll period immediately prior to the date the strike began. Respondent will also be ordered to refrain from engaging in unfair labor practices by conduct of a like or related manner to the activites found unlawful herein." Upon the above findings of fact, conclusions of law, the entire record, and pursuant to Section 10(c) of the Act, I hereby issue the following recommended: ORDER" 'The Respondent, C-F Air Freight, Inc., Brooklyn, New York, its officers, agents, successors, and assigns, shall: I. Cease and desist from: (a) Threatening to close any of its facilities because its employees engage in union activities. (b) Promising its employees economic benefits in order to dissuade them from engaging in union activities. (c) Discriminating against its employees in regard to tenure of employment or other terms and conditions of employment because they engage in union activities. (d) In any like or related manner interfering with, restraining, or coercing employees in the exercise of their " See, generally, Isis Plumbing d Hearing Co., 138 NLRB 716 (1962). " Hickmot Foods, Inc.. 242 NLRB 1357 (1979). " In the event no 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 by the Board and become its findings, conclusions, and Order, and all objections thereto shall be deemed waived for all purposes. 411 DECISIONS OF NATIONAL LABOR RELATIONS BOARD rights guaranteed in Section 7 of the Act, except to the extent that such rights might be affected by a lawful union- security agreement in accord with Section 8(a)(3) of the Act. 2. Take the following affirmative action which it is found will effectuate the policies of the Act: (a) Offer Michael O. Lynch, Gene Reichardt, Mildred Sipolino, and Marguerite Sommese immediate and full reinstatement to his or her former job or, if that position no longer exists, to a substantially equivalent position of employment without prejudice to his or her seniority or other rights and privileges, and make each whole in the manner described above in the section entitled "The Reme- dy" for any loss of earnings or other benefits suffered by reason of Respondent's discrimination against them which has been found unlawful. (b) Forthwith resume the clerical operations formerly performed at its JFK facility either at the former location or some other reasonable location within the metropolitan New York City area. Those clerical services will be performed by clerical employees of Respondent. Preference for those clerical positions will be given to the four discriminatees ordered to receive offers of reinstatement herein. (c) Preserve and, upon request, make available to the Board or its agents, for examination and copying, all payroll records, social security payment records, timecards, person- nel records and reports, and all other records necessary to '' In the event that this Order is enforced by a Judgment of a United States Court of Appeals, the words in the notice reading "Posted by Order of the National Labor Relations Board" shall read "Posted Pursuant to a Judgment analyze the amounts of backpay and interest due under the terms of this Order. (d) Mail, postage prepaid, copies of the attached notice marked "Appendix"'" to each employee on Respondent's JFK facility payroll during the payroll week ending immedi- ately before the beginning of the June 13, 1977, strike. The Regional Director for Region 29, after the notice has been duly signed by an authorized representative of Respondent, shall forward sufficient copies of that notice to Respondent for mailing in accordance with this Order. Respondent shall mail copies of the notice provided by the Regional Director immediately upon their receipt, and shall notify the Regional Director, in writing, within 2 days of said mailing to the employees, that the mailing has been accomplished and the date on which the notices were mailed. In the event that Respondent resumes its operations under this Order within 60 days of the date of this Order, additional copies of the notice shall be posted by Respondent and shall be maintained for 60 consecutive days thereafter, in conspicuous places, including all places where notices to employees are customarily posted. Reasonable steps shall be taken by Respondent to insure that said notices are not altered, defaced, or covered by any other material. (e) Notify the Regional Director for Region 29, in writing, within 20 days from the date of this Order, what steps Respondent has taken to comply herewith. of the United States Court of Appeals Enforcing an Order of the National Labor Relations Board." 412 Copy with citationCopy as parenthetical citation