C & P Shopping Center, Inc.Download PDFNational Labor Relations Board - Board DecisionsMar 30, 1967163 N.L.R.B. 686 (N.L.R.B. 1967) Copy Citation 686 DECISIONS OF NATIONAL LABOR RELATIONS BOARD WE WILL upon request , recognize and bargain with Teamsters Local 822, as the exclusive collective- bargaining representative of our employees in a unit composed of all new- and used-car salesmen at our Norfolk , Virginia , location, excluding office clerical employees , professional employees , guards, and all other employees and supervisors , as defined in the Act, with respect to all matters of wages, hours, and working conditions , and, if an understanding is reached , embody the same into a signed contract. WE WILL NOT change the wages, hours, or working conditions of our employees in the aforesaid unit without first bargaining with Teamsters Local 822, regarding such changes. WE WILL NOT change the wages, hours, or working conditions of our employees for the purpose of inducing them to abandon their support of Teamsters Local 822, or any other union. WE WILL NOT in any other manner interfere with, restrain , or coerce our employees in the exercise of their right to self-organization , to form any labor organization, to join or assist Teamsters Local 822, or any other union, to bargain through representatives of their own choice, and to engage in other concerted activities for the purpose of collective bargaining or other mutual aid or protection , or to refrain from any and all such activities. All our employees are free to become or remain, or refrain from becoming or remaining , members of Teamsters Local 822, or any other union. BRATTEN PONTIAC CORP. (Employer) Dated By (Representative ) (Title) This notice must remain posted for 60 consecutive days from the date of posting, and must not be altered , defaced, or covered by any other material. If employees have any question concerning this notice or compliance with its provisions , they may communicate directly with the Board's Regional Office, Sixth Floor, 707 North Calvert Street, Baltimore , Maryland 21202, Telephone 752-8460, Extension 2159. C & P Plaza Department Store , Division of C & P Shopping Center , Inc. and Local 1401 , Retail Clerks International Associa- tion (AFL-CIO). Case 30-CA-261. March 30, 1967 DECISION AND ORDER BY MEMBERS FANNING, BROWN, AND JENKINS On April 22, 1966, Trial Examiner Lee J. Best issued his Decision in the above-entitled proceeding, ' Before this change , a food and variety store had been operated at the Shopping Center location . After removal of the variety store , the Food Store Division continued operations at the original location. Y The terminal date of the Plaza agreement was established to coincide with the expiration date of the original contract which covered the combined food and variety store operation . The Union had maintained collective - bargaining relations with the Shopping" 163 NLRB No. 97 finding that the Respondent had engaged in and was engaging in certain unfair labor practices, and recommending that it cease and desist therefrom and take certain affirmative action, as set forth in the attached Trial Examiner's Decision. Thereafter, the Respondent filed exceptions to the Trial Examiner's Decision and a supporting brief. The General Counsel and the Charging Party filed answering briefs. Pursuant to the provisions of Section 3(b) of the National Labor Relations Act, as amended, the National Labor Relations Board has delegated its powers in connection with this case to a three- member panel. The Board has reviewed the rulings of the Trial Examiner made at the hearing and finds that no prejudicial error was committed. The rulings are hereby affirmed. The Board has considered the Trial Examiner's Decision, the exceptions and briefs, and the entire record in the case, and hereby adopts the findings, conclusions, and recommendations of the Trial Examiner as amplified below. As more fully set forth in the Trial Examiner's Decision, the record shows that, in early 1960, Respondent was organized as a separate division of C & P Shopping Center, Inc., to operate the Shopping Center's variety store, hereafter called the "Plaza," which was removed from the Shopping Center location and independently established at a new location.' The Union was recognized, in separate appropriate units, as the collective- bargaining representative of employees at both locations and executed an initial agreement with Respondent to remain in effect from April 11, 1960, through June 4, 1960.2 In February or March 1961, a second Plaza contract was executed to be in effect retroactively from January 1, 1961, through December 31, 1962. On May 17, 1963, the Union and Respondent executed the third Plaza contract which was effective retroactively from January 1, 1963, through December 31, 1964.3 On October 26, 1964, the Union served timely notice on Respondent of its desire to modify the agreement. However, as the parties had done in the past, no attempt was made to commence negotiations until after the expiration date of the current agreement. On January 14, 1965,' by request of the Union, the parties met and Union Representative Peter Voeller indicated that the Union wished to commence negotiations. At the outset, General Manager Russell J. Weber, also Respondent's labor relations representative, took the position that since the contract had expired, the Respondent was no longer obligated to deal with the Union. He also complained Center and its predecessor , C & P Drive-in, since 1948. ' This agreement contained a valid union -security clause without checkoff, and also provided for automatic annual renewal after December 31, 1964, with the customary 60 days' notice of a desire to terminate or amend the agreement. 4 Unless otherwise indicated, all events hereafter set forth occurred in 1965. C & P PLAZA DEPARTMENT STORE that the "[Union] had not organized what they thought was a sufficient amount of their competi- tion ." Respondent's president, Carl L. Payne, who had entered the meeting after the foregoing discussion, disclosed that Respondent had lost $40,000 during 1964 and would have to change its operations to more of a self-service type in order to compete with the discount stores. He further stated that these operational changes would necessitate changes in the help and perhaps some reclas- sifications. Voeller suggested„ and Respondent agreed, that the old contract be extended for 6 months, the period required for the needed changeover in operations according to Respondent's estimation .5 However, Weber again stated that the contract had expired in December 1964, and therefore he saw no reason for the oral extension of the contract, but Weber was overruled by Payne. After the meeting, Voeller complained to Payne about Weber's attitude. Payne thereafter assured Voeller, "We're not going to try to throw you out of here. I don't like the fact that you haven't organized Kubley's, you haven't organized Sears, but I give you my word that in six months we'll get this thing straightened out. Don't worry about it." On April 27, Respondent sent written notice of its desire to terminate the contract on July 1.6 In the first week of July, Voeller called Weber to arrange a meeting for discussion of a pending grievance at the Food Store Division and also indicated that he wished to discuss the Plaza contract. Weber and Voeller met at Respondent's office on July 8, and, after disposing of matters relating to the grievance, Voeller suggested that they talk about the Plaza contract. According to Weber's testimony, he stated, "as far as I am concerned that's a dead issue ." Weber further testified, "I told him [Voeller] I had sent him a letter, we had had no acknowledgement from him within the 60 day period that he intended to do anything about it.... I told him that I assumed on this basis he was going to let the contract expire." Weber again took the position that since the contract had expired, Respondent had no obligation to bargain.' Weber also claimed that Respondent had a serious doubt about the Union's majority. Voeller then asked Weber if he was aware of Payne's commitment to him 6 months ago that this would be worked out and thereafter he asked to While Respondent disputes the Trial Examiner's finding that the Union agreed to postpone further negotiations during this period upon condition that the old contract continue in full force and effect, we find it immaterial whether negotiations were suspended or the prior contract was renewed for a fixed period of 6 months The record shows, and we find, that the purpose was to enable the parties to take any changes made in the operation of the Plaza into consideration in their later negotiations 6 The claimed purpose of this notice, as testified on the record by Respondent but not communicated in the notice to the Union, was to terminate the contract because of employee dissatisfaction which had been reported to Respondent While Weber testified that he sent this notice upon advice of counsel, he admitted on 687 talk to Payne. When Weber reached Payne on the intercom and advised him of Voeller's presence, Payne said in a loud voice, "tell him I don't want to have anything to do with it, I'm not coming up there." On July 14, Voeller directed a letter to Payne in which he called attention to the verbal agreement of January 14 whereby both parties agreed to "suspend" further negotiations for a period of 6 months in order to enable Respondent to revise its operations and make other necessary changes. Voeller also called attention to Payne's assurances at that time and to the events of July 8 which appeared to be contrary to his word. Voeller requested that Payne or his representative meet for the purpose of negotiating a new agreement. On July 16, Weber wrote Voeller pursuant to Payne's request and advised Voeller that the latter erroneously stated in his letter of July 14 that negotiations were suspended. Weber stated that the contract was extended by verbal agreement on July 1, but "there were no assurances other than a good faith effort" on Respondent's part. Weber again referred to the Union's failure to contact Respondent until after the contract had expired and to Respondent's doubt of the Union's majority. He suggested an informal election by an impartial third party, but agreed to negotiate provided Respondent did not waive its right to pursue the representation question. Weber then proposed a meeting for July 26. On July 26, Voeller and another union representative, William A. Moreth, met with Weber at Respondent's office. Voeller presented to Weber 30 recently signed authorization cards.8 Weber took the cards and leafed through them briefly and handed them back to Voeller, saying, "these cards don't mean anything to us on the basis of the reports that I have received about how you got them signed." Weber stated further that an employee had come to him and warned him not to pay any attention to the cards. Voeller asked Weber if he wanted to verify the signatures on the cards, but Weber said that would not be necessary. Voeller stated that he wished to begin negotiations. Weber agreed, but stated, "I don't know what good it would do." cross-examination that he had only received one report of employee dissatisfaction when he first sought advice of counsel ' At this meeting Weber also disclosed to the Union for the first time that Respondent had a doubt about the Union's majority " The record shows that 46 employees were in the appropriate unit represented by the Union As detailed in the Trial Examiner's Decision , 13 cards were signed at a union meeting on July 14, and the remainder were obtained by Moreth who contacted the latter card signers at their homes It appears from the record that Respondent was aware of these efforts by the Union to prove its majority when Weber wrote to the Union on July 16 suggesting an alternative means for establishing the Union 's majority 688 DECISIONS OF NATIONAL LABOR RELATIONS BOARD Meanwhile, pursuant to a notice posted on the bulletin board by Respondent on or about July 27,9 Respondent held a meeting of employees at the close of business on July 30. Payne, Weber, and other management personnel were present. Weber testified he told the employees that in January the contract had been extended orally for a 6-month period; that on April 27 he had notified the Union of Respondent's desire to terminate that agreement, and that the Union did not respond to this letter in any way; that, after receiving reports (of employee dissatisfaction), Respondent had notified the Union of Respondent's doubt of its majority status and suggested an informal election held by an impartial third party. After Payne assured the employees that they were free to express their feelings pro or con about the Union without fear of reprisals, Weber asked for discussion of the questions which some of the employees had raised with various members of management.10 Afterwards, Weber, according to his testimony, called for a vote as to how many employees wanted the Union to be their bargaining representative.11 However, Weber testified that before the vote he told the employees that they were free to vote as they pleased or that they did not have to vote if they did not wish. Three employees raised their hands in response to the question. Weber then stated, "I guess this answers the question for us." Thereafter, on August 6, Respondent filed a representation petition with the Board in Case 30-RM-32. The -Union, in the meantime, submitted written contract proposals to Respondent after the meeting of July 26. Having expressed objections at that meeting to further sessions with Voeller, Weber met with Moreth on July 30 and on August 10 and 20. Another meeting was scheduled for August 27 but was canceled by Respondent, who refused to negotiate further until a representation election was held. Thereafter, the Union filed an 8(a)(5) charge, and the instant complaint alleges that Respondent's conduct on and after July 8 constituted an unlawful refusal to bargain. From a careful consideration of the foregoing facts, and the record as a whole, we are persuaded that Respondent's asserted doubt of the Union's majority status was a pretext used by Respondent to " As detailed more fully in the Trial Examiner 's Decision, on or about July 23, employees Susan Peerenboom and Charlotte Wickeren asked Store Manager Gerald Whitcomb if it would be possible to have an election to determine whether most of the employees wanted the Union to remain in the store Whitcomb said he was not sure most of the employees wanted this, but suggested that the two employees should post on the bulletin board a notice calling for a meeting of all employees Peerenboom and Wickeren decided not to post such a notice and so advised Whitcomb 10 Weber testified that the purpose of calling the meeting was to clear up the doubts and confusion and questions previously asked regarding the union situation He further testified that management had been asked if the Union still represented the employees , if the employees had to continue to belong to the mask an unlawful design to eliminate the Union as the exclusive representative of its employees in the appropriate unit. The Respondent's opposition to the Union, and desire to eliminate it as the employees' representative, is abundantly clear. Respondent left no doubt of its aim in its statements that the contract had expired on December 31 and therefore it saw no reason to continue having such a contract; its complaints that the Union had not sufficiently organized competing stores; and Payne's undenied statements to McKitrick, quoted by the Trial Examiner in his "Concluding Findings," that "I will fight [this Union] with every penny I have and every drop of blood in my body. If Pete [Voeller] was on the sidewalk, I would kill him right now. I like some unions, but I hate this one because they are a bunch of Communists."12 This conduct, even standing alone, undermines the Respondent's assertion of a question as to the union majority status.13 But it does not stand alone. Other circumstances support, and, in fact, render inescapable, the conclusion that the Respondent did not act from any good-faith doubt of its obligation to continue bargaining with the Union. Thus, at about the same time Respondent was claiming that it was no longer obligated to deal with the Union because the agreement had expired on December 31, Payne was reassuring Voeller and giving his word that in 6 months the matter would be straightened out. Yet, when Voeller sought to raise the matter with Payne in July, after the 6 months had expired, Payne flatly refused to see him or discuss the matter, and Weber similtaneously attempted to nullify Payne's earlier promises by saying that "there were no assurances other than a good faith effort" on Respondent's part. We note also that Weber sought to rely on the Union's failure to contact Respondent until after the contract had actually expired on July 1, although this had been the practice of the parties in the past. Not only does the Respondent's otherwise inexplicable conduct reveal its unlawful purpose, but the very nature of its statement of legal position beginning in January bears the stigma of bad faith. For, the Respondent asserts, in effect, that whenever a collective-bargaining contract expires, the representative status of the incumbent union Union, and if Respondent wanted to negotiate with the Union He also testified that management had been told that some of the people who signed the authorization cards didn't sign them with the idea of having the Union represent them When asked if the reports about the cards were one reason for calling the meeting, Weber responded that the cards were not discussed at the meeting i i Whitcomb recalled the question as being, "anyone in favor of C & P continuing negotiations with the Union raise their hands " Employee Irene Kamperschroer testified that Weber asked, "those in favor or not holding a secret ballot raise your hands " 12 The Trial Examiner found that Payne's reference to Voeller as a Communist occurred in May 1965 The record shows that this remark was made in March or April 13 Palmer Asbestos & Rubber Corporation, 160 NLRB 723 C & P PLAZA DEPARTMENT STORE ceases and an employer is relieved of the obligation to bargain. No such proposition can be validly maintained. On the contrary, it is well settled that absent a good-faith doubt of majority status of an incumbent, an employer must continue to bargain in good faith with that union as the designated agent of its employees, and the employer must demonstrate by objective considerations that it had reason to believe the union had lost its majority status.14 This the Respondent has not done here, since it does not appear that at any relevant time the Respondent had cause to doubt its employees' continuing adherence to the Union. The record does not support Respondent's asserted reason for its contract termination notice of April 27-reports of employee dissatisfaction. And, the later conversations on which Respondent relies virtually all occurred after the Respondent refused to meet or deal with the Union in early July or were comments by a few newly hired employees to the effect that they had not been asked and/or did not wish to join the Union. But even apart from the above, the Respondent's strongest reliance appears to be on the so-called expression of wishes concerning continued union representation in the poll taken at the employee meeting on July 30. This reliance is misplaced. We note first that the Respondent interrogated and polled its employees in a coercive manner, and that we could therefore place no credence in any antiunion views expressed there by the employees. Secondly, we are unable to discern how the Respondent can draw any reasonable conclusions from the failure of a majority to respond to the question posed. For the Respondent unequivocally states that its poll was preceded by the statement that the employees need not vote if they did not wish to do so. In the face of such an assurance, it cannot be said that those who did not express an affirmative vote were necessarily indicating a negative view. It may well be that the nonvoters were merely exercising their option to remain silent and refrain from airing their preferences. Finally, it is patent that Respondent's summary rejection of the 30 signed authorization cards proffered by the Union on July 26 was in furtherance of its unlawful attempt to eliminate the Union. Respondent was fully informed of the Union's solicitation of the new cards at the July 14 meeting and apparently was also aware of the Union's comments to the employees at that time concerning the need to reestablish its majority standing. In addition, the general tenor of the remarks by most of the employees who assertedly spoke to management concerning their signing of the new cards was generally to the effect that they had signed voluntarily, but had mental reservations or had subsequently changed their minds.15 One or two others who expressed dissatisfaction were part-time employees who felt that the Union was favoring regular full-time employees at the expense of part- timers. Of great significance is the fact that Weber 689 himself testified that in fact only one employee had spoken to him at the time he rejected the cards on the asserted ground that the Respondent had received disturbing reports concerning the way in which the cards had been secured, and even this employee is claimed to have told him only that he should "not pay any attention to the cards." Further, when Weber agreed on or about July 23 to hold the July 30 employee meeting concerning a possible election, the Respondent expressed doubt that most of the employees would want such a vote.16 In sum, the General Counsel has affirmatively established that the Respondent acted in bad faith, and the Respondent has failed to come forward with sufficiently objective facts or considerations which could furnish a reasonable basis for its asserted good-faith belief that the Union had lost its majority representative status at any time relevant herein. Accordingly, we agree with the Trial Examiner's finding that the Respondent unlawfully refused to bargain with the Union in violation of Section 8(a)(5). 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 Trial Examiner and hereby orders that the Respondent, C & P Plaza Department Store, Division of C & P Shopping Center, Inc., Madison, Wisconsin, its officers, agents, successors, and assigns, shall take the action set forth in the Trial Examiner's Recommended Order. l7 " Palmer Asbestos & Rubber Corporation, supra, 730. The Respondent relies heavily upon N.L.R.B. v Laystrom Manufacturing Co , 359 F 2d 799 (C A. 7), enforcement denied 151 NLRB 1482 However, that case is clearly distinguishable from the instant situation in a number of respects . Thus, we note that here, inter alia, the Union reestablished its majority support by securing new cards from a majority of the unit employees, and the General Counsel has affirmatively established facts showing that the Respondent was strongly opposed to the Union and could have had no real doubt about its majority status. 15 It is well settled that an otherwise valid card is not rendered invalid by the mental reservation of the employee (Southbridge Sheet Metal Works, Inc., 158 NLRB 819, TXD discussion of cards of Alfred Hevey, Guiseppe Risclutelli , and Eugene Blanchette; River Togs, Inc, 160 NLRB 58, 76-77) or because the employee changed his mind without notice to the Union (Southbridge Sheet Metal Works, Inc., supra, TXD discussion of cards of Charles Champagne, William Julian, Richard Liberty, Eugene Blanchette, and Peter Bilinski, Indiana Rayon Corpora- tion, 151 NLRB 130 at 136, discussion/of card of Irene Carlton) "See fn 9, supra 14 For purposes of clarity, the notice attached to the Board's Decision herein is substituted for the notice attached to the Trial Examiner's Decision. APPENDIX NOTICE TO ALL EMPLOYEES Pursuant to a Decision and Order of the National Labor Relations Board, and in order to effectuate 690 DECISIONS OF NATIONAL LABOR RELATIONS BOARD the policies of the National Labor Relations Act, as TRIAL EXAMINER'S DECISION amended, we hereby notify you that: WE WILL NOT interrogate and poll employees concerning their organizational activities or affiliations with Local 1401, Retail Clerks International Association (AFL-CIO), in a manner constituting interference, restraint, or coercion within the meaning of Section 8(a)(1) of the Act. WE WILL bargain in good faith, upon request, with the above Union as the exclusive representative of all our employees in the bargaining unit described below with respect to rates of pay, wages, hours of employment, and other conditions of employment, and, if an understanding is reached, embody such understanding in a signed agreement. The bargaining unit is: All regular full-time and regular part-time employees of the Respondent, working in its department store at 209 Cottage Grove Road, Madison, Wisconsin, excluding janitors, temporary and intermittent employees, store manager, store coman- agers, full-time salaried manager trainees, confidential employees, watchmen, and guards, and supervisors as defined in the Act. WE WILL NOT in any other manner interfere with, restrain , or coerce our employees in the exercise of their right to self-organization, to form, join, or assist the above-named Union, or any other labor organization, to bargain collectively through representatives of their own choosing, and to engage in concerted activities for the purpose of collective bargaining or other mutual aid or protection, and to refrain from any or all such activities, except to the extent that such right may be affected by an agreement requiring membership in ajalior- organization as a condition of-em-ployment, as authorized in Section 8(a)(3) of the Act, as modified by the Labor-Management Reporting and Disclosure Act of 1959. C & P PLAZA DEPARTMENT STORE (Employer) Dated By (Representative ) (Title) This notice must remain posted for 60 consecutive days from the date of posting, and must not be altered, defaced, or covered by any other material. If employees have any question concerning this notice or compliance with its provisions, they may communicate directly with the Board's Regional Office, 2nd Floor, Commerce Building, 744 North 4th Street, Milwaukee, Wisconsin 53203, Telephone 272-3866. STATEMENT OF THE CASE LEE J. BEST, Trial Examiner: This proceeding brought under Section 10(b) of the National Labor Relations Act, as amended, 29 U.S.C. Sec. 151, et seq. (herein called the Act), was heard pursuant to notice at Madison, Wisconsin, on January 10, 11, 12, 13, 14, and 17, 1966, with all parties present and represented by counsel. Based upon an original charge filed on August 13, 1965, by Local 1401, Retail Clerks International Association, (AFL-CIO) (herein called the Union or Charging Party), the General Counsel of the National Labor Relations Board on November 17, 1965, issued a complaint against C & P Plaza Department Store, Division of C & P Shopping Center, Inc. (herein called the Respondent), alleging in substance that said Respondent has since on or about July 8, 1965, engaged in and is engaging in unfair labor practices affecting commerce within the meaning of Section 8(a)(1) and (5) and Section 2(6) and (7) of the Act. More specifically the complaint alleges that Respondent in bad faith questioned the Union's longstanding majority status as exclusive bargaining representative of its employees in an appropriate unit at C & P Plaza Department Store without any reasonable basis for doubting the appropriateness of the unit or the majority representation thereof by the Union; and continued to do so even though the Union procured and presented to the Respondent newly signed authorization cards from a substantial majority of the employees in said unit; and thereafter, without a reasonable doubt of the Union's majority status, filed a representation petition on August 6, 1965, seeking a Board-directed election when no question of representation existed. In due course, the Respondent filed an answer admit- ting jurisdiction of the Board, but denying all allegations of unfair labor practices. All parties were present at the hearing, represented by counsel, were afforded full opportunity to be heard, to examine and cross-examine witnesses, to present evidence pertinent to the issues involved, and to file written briefs with the Trial Examiner. Oral argument was waived by all parties. Written briefs filed by all parties have been given due consideration. Upon the entire recoid' in the case, and from observation of the witnesses, I make the following: FINDINGS OF FACT I BUSINESS OF RESPONDENT C & P Shopping Center, Inc., is a Wisconsin corporation having its principal office and several stores at Madison, Wisconsin, and vicinity. C & P Plaza Department Store is a subsidiary division of C & P Shopping Center, Inc., operating a department store at 209 Cottage Grove Road in Madison, Wisconsin, where it is engaged in the retail sale of general merchandise. During the past calendar year (1964), which is a representative period herein, the Respondent sold goods, wares, and merchandise valued in excess of $500,000; and during the same period purchased and caused such materials valued in excess of $50,000 to be transported in interstate commerce directly from points ' The Respondent's unopposed motion dated March 11, 1966, and duly filed on March 14, 1966, seeking 14 specified corrections in the official transcript of testimony iQ h-rehv eranted C & P PLAZA DEPARTMENT STORE outside the State of Wisconsin . I find , therefore, that Respondent is and has been at all times material herein, engaged in commerce within the meaning of Section 2(6) and (7 ) of the Act. Supervisors of the Respondent within the meaning of Section 2 ( 11) of the Act include Carl L. Payne ( president), Russell J . Weber (vice president and general manager), Gerald (Jerry) Whitcomb ( store manager), Robert Miekle (assistant store manager), and Tom Hannon (hardware department manager). It. LABOR ORGANIZATION INVOLVED Local 1401, Retail Clerks International Association (AFL-CIO), is a labor organization within the meaning of Section 2(5) of the Act existing in whole or part for the purpose of representing employees in dealing with employers concerning grievances , labor disputes , wages, rates of pay , hours of employment , and conditions of work. Representatives of this organization include Peter P. Voeller (secretary -treasurer and business representative) and William A. Moreth (business representative). III. THE APPROPRIATE UNIT All regular full-time and regular part - time employees of the Respondent , working in its department store at 209 Cottage Grove Road , Madison , Wisconsin , excluding janitors , temporary and intermittent employees, store manager , store comanagers, full-time salaried manager trainees , confidential employees , watchmen , and guards, and supervisors as defined in the Act, constitute a unit appropriate for the purposes of collective bargaining within the meaning of Section 9 (b) of the Act. IV. THE UNFAIR LABOR PRACTICES A. Historical Background Labor relations between the Respondent and the Union date back to a certification of referendum issued by the Wisconsin Employment Relations Board on January 10, 1948 , authorizing C & P Drive-In (a predecessor of Respondent) to enter into an "All-Union Agreement" with Retail Clerks International Association , Local#1401, AFL, as the designated representative of its employees in an appropriate unit, as provided in Section 111.06, Wisconsin Statutes . The partnership organization doing business as C & P Drive-In was incorporated under the laws of Wisconsin in November 1948, and approximately 2 years later its corporate name was changed to C & P Shopping Center, Inc., under the same management throughout . At all times from original recognition of the Union to April 1960, C & P Shopping Center, Inc., operated a combination store for the sale of food and a variety of other merchandise under a single collective- bargaining agreement with the Union as bargaining representative for an all-inclusive unit . In the early part of 1960, however , the variety store operation was separated from the food store and independently established at a new location under the name of C & P Plaza Department Store. Thereafter, the Union was recognized as representative for an all-inclusive unit . In the early part of separate collective-bargaining agreements for an appropriate unit at each division location . Respondent and the Union executed their initial contract with respect to the C & P Plaza Department Store to remain in effect from April 11, 1960 , through June 4, 1960 , to coincide with 691 the expiration date of the contract negotiated at the Food Store Division. Thereafter , the parties negotiated and executed a collective -bargaining agreement on behalf of the unit at C & P Plaza Department Store that continued in effect from January 1, 1961 , through December 31, 1962. At the expiration of that contract, the parties negotiated and signed a new 2-year agreement effective from January 1, 1963, through December 31, 1964, containing a valid union - security clause without checkoff, and also provided for automatic annual renewal of that contract after December 31, 1964 , unless notice of a desire to terminate or of changes in this agreement be served in writing on the other party at least 60 days prior to the termination date. Following expiration of this ultimate contract , the Union requested negotiations for a new agreement , but Respondent objected to renewing such negotiations until certain changes in the department store operations were completed . Thereupon , the Union agreed to postpone further negotiations for a period of 6 months upon a verbal agreement with the Respondent to continue the current contract in full force and effect until July 1, 1965. Having entered into such a verbal agreement with the Union , the Respondent , thereafter , on April 27, 1965, addressed a letter to the Union , as follows: Mr. Peter Voeller Retail Clerks Union 301 E . Johnson St. Madison , Wisconsin Re; C & P Plaza Department Store Contract Dear Mr . Voeller: By verbal agreement we extended the above contract to the 1st of July 1965. We write this letter to notify you of our desire to terminate that agreement on July 1, 1965. Sincerely Russell J. Weber Vice Pres. & Gen. Mgr. C & P Shopping Center, Inc. B. Refusal to Bargain Following expiration of the aforesaid verbal extension of the contract , Business Representative Peter P . Voeller (secretary - treasurer of Local 1401) called General Manager Russell J. Weber (vice president of C & P Shopping Center , Inc.) during the first week of July 1965 , and requested that a date be fixed for a meeting to resume negotiations both concerning a pending grievance at the Food Store Division and a new contract for the unit at C & P Plaza Department Store. Pursuant to agreement Voeller and Weber met together at the latter's office on July 8 , 1965 . After first discussing payroll data pertaining to the pending food store grievance, Business Representative Peter P . Voeller requested negotiations with respect to a new contract for the employees at the C & P Plaza Department Store; but General Manager Russell J . Weber expressed doubt that the Union now represented a majority of employees in the unit , and took the position that since the contract had expired Respondent would not extend or continue any form of contract with the Union at the department store division. 295-269 0-69-45 692 DECISIONS OF NATIONAL LABOR RELATIONS BOARD Thereupon, Voeller requested a conference with President Carl L. Payne. Weber called Payne by telephone, but he refused to confer with the union representative. Thereafter, the Union on July 14, 1965, posted a letter to the Respondent, as follows: Mr. Carl L. Payne, President C & P Shopping Center, Inc. 108 Cottage Grove Road Madison, Wisconsin 53716 Re: C & P Plaza Department Store Agreement Dear Mr. Payne: On October 26, 1964, proper notice was served on your company of our desire to change this Agreement. At a subsequent meeting held on January 14, 1965, an agreement was reached whereby both parties would suspend further negotiations for a period of six months. This was to enable you to revise your operations and make other changes which you felt were necessary in that store. You assured me at that time that, six months hence, "everything would be worked out." Last Thursday, July 8th, I met with your Mr. Weber and he informed me that he did not care to discuss any further the matter of a new Agreement for this store. I attempted to have this confirmed to me personally by you. Instead you informed Mr. Weber that you cared not to even discuss the matter with me. Isn't this contrary to your word, given to me six months ago? As the collective bargaining representative for these employees, I am requesting that you or your representative meet with me for the purpose of negotiating a new Agreement. I would propose meeting in your offices on Wednesday, July 21, 1965, at 10:00 a.m. If this is not agreeable or should you choose to refuse my request for further negotiations, please inform me. Very truly yours, Peter P. Voeller Secretary-Treasurer PPV: dj Reg. Mail Ret. Rcpt. Req. In reply to the foregoing , Respondent posted a letter to the Union dated July 16, 1965, demanding proof of majority representation and proposing to meet with the union representative in Weber 's office on Monday, July 26 , 1965, as follows: Mr. Peter Voeller Retail Clerks Union 301 East Johnson Street Madison, Wisconsin Dear Mr. Voeller: Mr. Payne has referred your letter of July 14 to me for reply. First , I want to correct your statement that negotiations were suspended . They were not. As stated in my letter to you of April 27, 1965, the contract was extended by verbal agreement to July 1, 1965. There were no assurances other than a good faith effort on our part. It was for this reason we gave you notice of termination in April. Your failure to contact us until July 8 and indications from our employees, among other things, leads us to doubt that you are the bargaining representatives of the employees. I raised this question with you on July 8 because it concerns us. Under the circumstances, we would like to have you prove to us that a majority of our employees still want your union to act as their bargaining representative. Perhaps this problem could be resolved by an immediate informal election conducted by an impartial third party, rather than the formal NLRB procedures. In any event, this matter should be resolved as soon as possible. We are open minded as to the method to be used, and will welcome a discussion of this problem. We do not refuse to negotiate with you, provided we do not waive our right to pursue the representation question; however, we do not think negotiations would be as meaningful if the representative question were hanging over our respective heads. We cannot meet on Wednesday as you suggest, but propose that we meet at my office on Monday, July 26, at 9:00 a.m. Sincerely Russell J. Weber General Manager C & P Shopping Center, Inc. RJW: rep Pursuant to Respondent's letter of July 16, 1965, Peter P. Voeller and William A. Moreth (business representatives of the Union) met General Manager Russell J. Weber in his office at 9 a.m. on July 26, 1965, and at that time presented to him 30 authorization cards recently signed by a majority of the 46 employees contained in the appropriate unit . Without further examination or investigation, the Respondent promptly rejected all of the authorization cards as evidence of majority representation, because of alleged reports concerning the manner in which the signatures thereon had been obtained and by reason of objections to their acceptance by certain disgruntled employees. The authenticity of signatures was not questioned. Reserving the right to hold an election by secret ballot before signing any contract, General Manager Weber requested the Union to submit a written contract proposal and meet again with Respondent on July 30, 1965. At the same time, Weber suggested that he negotiate alone with Business Agent Moreth because of ill feelings between Peter P. Voeller and himself. To this suggestion the Union readily agreed. Thereafter, on July 28, 1965, the Union forwarded its written contract proposals to the Respondent for consideration prior to its proposed meeting with Business Representative Moreth on July 30, 1965. For approximately 1 hour from 9 to 10 a.m. at this meeting on July 30, 1965, Moreth and Weber reviewed and discussed the various paragraphs of these written proposals, and at the request of Weber adjourned to meet again on C & P PLAZA DEPARTMENT STORE 693 August 10 , 1965 . Without any notice whatever to the Union the Respondent at the close of business on July 30, 1965, held a meeting of employees in the basement of the department store, and interrogated them concerning their union representation by calling for a raising of hands as to how many of those present wanted the Union to represent them or would favor an election to determine whether the Union should represent them . From the testimony of Russell J . Weber it appears that only two or three of the assembled employees raised their hands; and that by reason thereof the Respondent assumed that all who did not raise their hands were opposed to the Union. Consequently , the Respondent on August 6, 1965 , filed a representation petition with the National Labor Relations Board in Case 30-RM-32. Thereafter , General Manager Weber held meetings with Moreth in his office on August 10 and 20 , 1965, to discuss and review the various provisions set forth in the written contract proposals submitted by the Union , but on each occasion made it clear that any final agreements or the signing of any contract would be contingent upon the outcome of its position for an election before the National Labor Relations Board . A final meeting of the negotiating parties scheduled for August 27, 1965 , was canceled by notice from the Respondent refusing to negotiate further until a representation election was held. In the meantime the original charge in the instant case was filed on August 13 , 1965 , and pursuant to Board policy the Regional Director for Region 30 thereupon dismissed the representation petition pending determination of any alleged unfair labor practices. C. Proof and Doubt of Union Majority Respondent contends that its refusal to recognize and bargain with the Union after July 1, 1965 , was no violation of Section 8(a)(5) of the Act, because at some time during the verbal extension of the contract in the period from January 1 to July 1, 1965 , a majority of employees in the unit became disgruntled and objected to further representation by that labor organization . It is agreed and stipulated that during this critical period the appropriate unit consisted of 46 employees , all of whom were presumed to be members of the Union by reason of the union- security clause in the current collective - bargaining agreement . At a union meeting with 22 employees present on the night of January 14, 1965 , Secretary-Treasurer Peter P . Voeller explained to the membership that by reason of changes to be made by the Respondent in operations at the C & P Plaza Department Store, the Company and the Union had verbally agreed to extend the current collective -bargaining agreement to July 1, 1965; and such agreement was ratified at this meeting. Apparently no further union meetings were held until July 14 , 1965 , when pursuant to written notice 16 employees met at Mac 's Cafe to hear and engage in further contract discussions . Official minutes of that meeting show that Secretary -Treasurer Peter P. Voeller reported that on July 8, 1965, he had requested Respondent to negotiate a new contract but had been rebuffed by General Manager Russell J . Weber ; and that it might be necessary to prove that a majority of the employees still belonged to the Union and wanted a new contract . Thereupon , Voeller requested that new authorization cards be signed. Thirteen of the employees present signed authorization cards and delivered them to Voeller . A strike vote by secret ballot was also taken , resulting in 12 ballots for and 4 ballots against strike action . Following this meeting Business Representative William A. Moreth visited other employees in their houses to solicit additional authorization cards. Seventeen additional authorization cards were signed and delivered prior to July 26, 1965, indicating that 30 out of 46 members of the bargaining unit favored continued representation by the Union. New authorization cards were signed and delivered to the union representatives by (1) Margaret Baxter, (2) Florence B. Carey, (3) Victor Chaplin, (4) Ida C. DuBois, (5) Robert G. Endres, (6) Jennie A. Fenske, (7) Darlene J. Hustad, (8) Helen Knudsen , (9) Irene Kamperschroer, (10) Ann Larson, (11) Wayne A. Pickarts, (12) George Scott, (13) Jo Ann Slinger, (14) Wiladean Addams. (15) Paulette Baxter, (16) Milly Boyer, (17) Clara Brown , (18) Velma F. Buffa, (19) R. W. Bultman , (20) Hazel Dobson, (21) Rosie Huber , (22) Ruth Johnson, (23) Carol Lewis, (24) Florence Marty, (25) Richard A. Martinson, (26) Janet Osterhaus, (27) Roland M. Stanek, (29) Patricia Zeller, and (30) Madelyn Zeller. The Respondent seeks to establish a reasonable doubt of the Union' s`,majority by reports from dissatisfied employees in the bargaining unit. Irene Kamperschroer (full-time employee) credibly testified in substance that she had been employed by Respondent for approximately 5 years, and since May 1965 has been working as a cashier-checker at the C & P Plaza Department Store; that she attended the union meeting at Mac's Cafe on July 14, 1965, where Business Representative Peter P. Voeller told them that the Respondent was not willing to sign another contract, and had been very rough with him about it; that new authorization cards were passed out at that meeting, and she signed one at the request of Voeller, and had since the meeting regretted that she did so, but did not have the nerve to request the Union to give it back to her; that her idea in signing the card was to help the Union get its membership files up to date . Pursuant to a notice posted on the bulletin board , President Carl'L. Payne before worktime on July 23, 1965, met around a coffee table in the department store with a group of full-time employees including Margaret Baxter , Jennie Fenske, Ann Larson, Irene Kamperschroer , and Store Manager Jerry Whitcomb to answer questions about their relationship with the Union. Among other questions , Jennie Fenske inquired whether wages would be reduced if the Union was dropped, and President Payne replied to the effect "that he had never cut wages since he had the C & P, and didn't think he would intend to ever." Thereafter, she attended another meeting of employees on July 30, 1965, in the basement of the store at night after worktime , which was opened with a statement from President Payne and General Manager Weber to the effect that they were there to answer questions , but could not put words in their mouths. Weber said that the Union had refused to agree to an imformal election before a minister or a priest or other impartial referee , and that he wanted them to indicate in some way their desires about having the Union or not. Thereupon , Linda Peerenboom (employee ) suggested a show of hands to ascertain whether the employees were in favor of a secret ballot for or against the Union. Nellie Miller (employee ) asked President Carl L. Payne what he wanted them to do, and Payne replied in substance "that is a question I can ' t answer for you. You must make up your own mind whether you want the Union." Thereupon, a vote was taken by asking "all those not in favor of having a secret ballot" to raise their hands . About three or four 694 DECISIONS OF NATIONAL LABOR RELATIONS BOARD employees raised their hands, and it was announced that no alternative vote was necessary because so few indicated they were against it; she was in favor of management, and did not raise her hand. Susan Peerenboom, as a witness for the Respondent, testified that she is a student at the University of Wisconsin, and works part-time as a saleslady for the C & P Plaza Department Store at night and on weekends; that she joined the Union but quit paying dues in March 1965 because the Union did not help her get a raise in pay, and she felt that they were discriminating against students by limiting their wages to $1.30 per hour. She attended the union meeting at Mac's Cafe on the night of July 14, 1965, when Peter Voeller related a history of his negotiations with the C & P Plaza Department Store, and passed out authorization cards for them to sign; but no cards were signed that night by Charlotte Wickeren, Madelyn Zeller, and herself. A vote was also taken concerning a boycott or strike against the store. After the meeting she rode home in a car with Charlotte Wickeren, Madelyn Zeller, and Irene Kamperschroer; and discussed the Union with them and other employees. Thereafter, in the presence of Charlotte Wickeren, she related her dissatisfaction with the Union to Store Manager Jerry Whitcomb and inquired whether it would be possible to hold an election to determine whether the Union represented a majority of the employees in the unit. Whitcomb suggested that they take the matter up with the National Labor Relations Board and that they post a notice on the bulletin board calling a meeting of all employees to consider the situation; but Charlotte Wickeren and she decided that they did not want to be the instigators in signing such a notice, because it would arouse antagonism between prounion and antiunion employees. Thereafter, she and Charlotte Wickeren also related their dissatisfaction with the Union to Tom Hannon (manager of the hardware department); and also inquired of General Manager Russell J. Weber whether it would be possible to have an election at the store because of their dissatisfaction with the Union; but they were not willing to sign their names to a poster on the bulletin board. Thereafter, pursuant to a notice on the bulletin board signed by either Store Manager Whitcomb or General Manager Weber, she attended a meeting of employees in the basement of the store after closing time on Friday night, July 30, 1965. That meeting was conducted primarily by General Manager Weber and President Carl Payne, but also present were Store Manager Jerry Whitcomb, Assistant Store Manager Robert Miekle, and Hardware Department Manager Tom Hannon. Russ Weber presided, and said that some of them might be dissatisfied and that he wanted to find out whether there was a reasonable doubt as to their feelings toward the Union. President Carl Payne announced that they should feel free to say whatever they wanted to say, and that it would have no bearing on their fobs, wages, or hours of work. Thereupon, a discussion ensued, and some of the employees asked questions about the way the paint department was being run, etc. Linda Peerenboom (her sister) expressed the opinion that there was a reasonable doubt whether the employees wanted a union, and inquired whether it would be possible to have an election. Then she left the meeting before any vote was submitted. Madelyn Zeller, as a witness for the Respondent, testified that prior to October, 1965, she was employed as part-time saleslady at night and on weekends at the C & P Plaza Department Store, and was at that time a member of the Union; that she attended a union meeting at Mac's Cafe on the night of July 14, 1965, when Peter Voeller passed out authorization cards for them to sign, and explained that these cards were pretty much the same as cards they signed when they joined the Union, and were for the union files so they would have a current up-to-date roster of union members; that she did not sign the card that night, because they were talking about strikes and pickets, etc., and "that was one of the reasons I didn't want to sign the card, because I want no part in any of that sort of thing." Thereafter, William A. Moreth came to her home, and in the presence of her daughter (Patricia Zeller) again asked her to sign the card. She told Moreth that she did not wish to sign the card when they were talking about strikes and pickets and that sort of thing, and that she wanted nothing to do with it. Then Moreth explained again that the card was purely for office use, and that they would have to hold a strike vote before going on strike. Thereupon, she filled out the authorization card in her own handwriting, told Moreth that she would not sign if it was for the purpose of getting permission for the Union to call a strike, but agreed to sign the card to be used only "if and when it was decided to negotiate for a new contract, and I would have to belong to the Union, then he would be authorized to be my bargaining agent, and that was the only use." During her next work period at the store, she had a discussion with Sue Peerenboom, Charlotte Wickeren, Irene Kamperschroer, Margaret Baxter, and Tom Hannon (manager of hardware department) around the coffee table, told them about Moreth coming to her home to get her to sign the card, and that she was sorry that she signed it. I don't recall any other discussions with members of management about it. Thereafter, pursuant to a notice on the bulletin board she attended a meeting along with other employees in the toy department basement of the store in the presence of President Payne, General Manager Weber, Store Manager Jerry Whitcomb, and Tom Hannon (manager of hardware department). Russell J. Weber was presiding, and the others were sitting or standing around. President Payne announced very clearly that they were to feel free to ask questions and not be afraid to say anything that they wished to say, and that it would have no bearing on their jobs or be any reflection on them whatever. General Manager Weber told them what had been going on; said that the Company was wondering whether the employees wished to retain the Union as their bargaining agent; that they should feel perfectly free to express themselves; that the Company wanted to know what the employees wanted, and whether they wanted the Company to ask for an election; that the employees should indicate in some way what they wanted the Company to do. Nellie Miller asked President Carl Payne: "what do you want us to do"; and Payne replied: "Nellie, it's up to you people to -decide. This is your decision, and whatever you want is what we want, and I cannot decide for you." Then Russell Weber said: "How many here would be in favor of just keeping the Union?" Three people raised their hands, so they decided they would petition for an election. Weber told them that the vote was conducted to see if they should file a petition for an election-to find out whether the employees wanted an election or not. Patricia Zeller, a witness for the Respondent, testified in substance that she was first hired at the C & P Plaza Department Store on June 14, 1965, and since that date has worked as a part-time checker. Thereafter, Business Representative William A. Moreth came to her home about the middle of July 1965, informed her that she was C & P PLAZA DEPARTMENT STORE 695 required to join the Union by reason of the contract with her employer , and persuaded her to sign a union membership application card , but she has never paid any union dues or attended any meetings ; that Moreth also left with her an authorization card to be signed after talking the matter over with her mother (Madelyn Zeller). At a later date both she and her mother signed authorization cards and gave them to Business Representative Moreth, but made it very clear that they were signing the cards under the condition that the Union could represent them if the store wished to negotiate a new contract with the Union, but if management did not wish to negotiate the cards would be worthless . About 2 days later she discussed the matter with Tom Hannon , and told him that she was sorry that she signed the card . She talked to Tom Hannon on three different occasions . Thereafter , she saw a notice on the bulletin board calling for a meeting of employees on July 30 , 1965, but did not attend that meeting. Hazel Dobson , a witness for the Respondent , testified in substance that she is a full-time employee of Carnes Corporation at Verona , Wisconsin , and since March 1965, has also worked one night per week and on weekends as a checker for C & P Plaza Department Store. She did not join the Union until July 1965, when Business Representative William A . Moreth came to her home, and persuaded her to sign an application for membership and also an authorization card . She filled out in her own handwriting the information called for in each of these cards, so that the Union could put her name on its mailing list. Next day she discussed the Union with Charlotte Wickeren , Sue Peerenboom , and Store Manager Jerry Whitcomb , and found out that some other employees had also signed cards for the Union . She was somewhat embarrassed about signing the card , and told Store Manager Whitcomb that she signed it thinking that it was for mailing list purposes . Some of the group suggested calling a meeting of all employees to find out what was going to happen , and Charlotte Wickeren asked Store Manager Whitcomb to post a notice of such meeting, because none of the gins wanted to assume responsibility for doing so. Whitcomb at first objected to posting such a notice because he was a part of management , but finally agreed to sign and post notice of a meeting of employees to find out whether they wanted the Union to represent them or not . Pursuant to such a notice, she attended a meeting of employees with management in the basement of the store on Friday night , July 30 , 1965. At this meeting General Manager Russell J . Weber stated that they wanted to know whether the employees wanted or did not want the Union . A discussion ensued and an oral vote of some kind was taken , but she does not remember what was said or how the question was proposed to the meeting. She does remember that Sue Peerenboom spoke out in opposition to the Union , but does not recall what she said. Department Manager Tom Hannon, a witness for the Respondent , testified in substance that he has been employed at C & P Plaza Department Store since August 13 , 1962 , and on October 1, 1964 , was promoted to the position of manager of the hardware department. As supervisor , he had frequent conversations about the Union with employees under his supervision, including Nancy Boyd, Margaret Baxter, George Bernhagen, Hazel Dobson, Irene Kamperschroer, Wayne Pickarts, Sue Peerenboom, Linda Peerenboom, Jack Southerland, Jr.,2 Charlotte Wickeren, Madelyn Zeller, Patricia Zeller, and others (all of which he reported to Store Manager Whitcomb); that in January 1965, Charlotte Wickeren told him that she had not paid union dues for the months of November and December (1964), and sought advice from him as to whether she should do so; that in March 1965, Hazel Dobson told him that she had never been requested to Join the Union, and did not want to be a member, but after the July 14, 1965, union meeting at Mac's Cafe told him that she had signed a card, thinking it was an address card, but did not understand what it was all about; and that she did not intend for this card to be used against the C & P Plaza Department Store; that in March 1965, George Bernhagen told him that (after 3 months' employment) he had not been approached to join the Union, and did not care to belong to the Union, because it was the most mismanaged organization that he had ever seen; that in June 1965, both Elanore Drager and Jack Southerland, Jr., told him (after employment for more than a year) that they had not joined the Union, did not care to do so, and inquired whether they could be required to join that organization; that in June 1965, Madelyn Zeller talked to him on several occasions, expressed her opinion that Carl Payne was the greatest man alive, that she had no fear of Payne or Weber, and that she would like to have a meeting with them and hold an election as soon as possible to see what could be done about getting the Union out. After the union meeting at Mac's Cafe on July 14, 1965, Madelyn Zeller told him that cards had been passed out, that people signed them without knowing what they were going to be used for, and that she did not sign at that time, but later during that week she and her daughter (Patricia) signed cards when the union representative came out to her house; but that she did not want it used against the C & P Plaza Department Store; that Irene Kamperschroer was on one occasion present with Madelyn Zeller, and said that Carl Payne would never be unfair to any of his employees, and that she would like to get the Union out. After the union meeting on July 14, 1965, Irene told him about the cards being signed, and said that some of the signers thought they were either address cards or some type of card to show they were registered with the Union, but did not know they were to be used against C & P and did not intend for them to be used that way; that in June 1965, Margaret Baxter expressed her dislike for Peter Voeller, and said that she did not want a drunken bum leading her arQund;3 that management of the Union was not doing a good job, and had never approached some employees in the store after employment for a long time; that the people who signed cards did not realize what they were signing, and that she did not want the Union to represent her; that Nancy Boyd told him that she was not in favor of the Union, and wanted to do something to eliminate it. Tom Hannon testified further concerning his conversation in June 1965 with a group of employees consisting of Nancy Boyd, Wayne Pickarts, Sue Peerenboom, Charlotte Wickeren, and Patricia Zeller, who inquired about having a meeting with President Payne and General Manager Weber to start group action 2 Jack Southerland, Jr , credibly testified that his father was manager of the paint department, and that he has never joined the Union or mentioned it to Tom Hannon or any other member of management ' When called by the General Counsel as a witness in rebuttal, Margaret Baxter denied such conversation with Tom Hannon or any other member of management 696 DECISIONS OF NATIONAL LABOR RELATIONS BOARD to get the Union out of the store. Wayne Pickarts told him that many of the employees had not been approached by the Union, but as freeloaders were receiving the same benefits; that he was dissatisfied with the way the Union was being run, and did not believe it represented a majority of the employees. Pickarts also inquired whether he would get a raise in pay or would there be a cut in wages if the Union was put out; that he told Pickarts that it would depend on the individual effort put out in his work. After the union meeting on July 14, 1965, Pickarts told him that when the cards were passed around and signed that some of the employees did not know what they were signing, and that some thought they were address cards; and that he would like to have a meeting with Payne and Weber to hear their side of the story, because it would be very lopsided to hear one side without being able to hear the other side. Sue Peerenboom asked for a meeting with Payne and Weber, and said: "Why can't you tell us?" She inquired whether they could start a petition to get the Union out, because the Union did not represent her; that she was not in favor of the Union, and believed that many other people had the same feelings about it. Patricia Zeller in June 1965 told him that she did not want to join the Union, and inquired whether she would be required to do so. He said: "No." Then she asked what could be done about it, and he said that he did not know, and could not answer questions concerning her membership and relations with the Union. After the union meeting on July 14, 1965, she told him that people who signed the cards did not understand what they were signing, and did not want them to be used against the C & P Plaza Department Store; that he told her that he could not give her any advice about the cards.' Store Manager Gerald Whttcomb testified in substance that on several occasions he discussed the Union with a group of employees consisting of Sue Peerenboom, Hazel Dobson, Charlotte Wickeren, Wayne Pickarts, and others; that Wayne Pickarts told him that the Union was not offering him any wage protection, and he did not think it was going to do any good, and since there was no union contract in force he was well satisfied with things as they were; that about July 7-8, 1965, a group composed of Sue Peerenboom, Hazel Dobson, Charlotte- Wickeren, and Wayne Pickarts came to him and inquired whether it would be possible for the employees to hold a meeting; that Hazel Dobson told him about the circumstances under which she signed an authorization card, and was making a kind of joke out of it; that on July 23, 1965, Sue Peerenboom and Charlotte Wickeren told him they wanted to have an election, and since some of the full-time employees had already met with President Carl Payne,5 they would like to have another meeting at night when more people could attend; that he assured them that management would meet with them at anytime, and suggested that they post a notice on the store bulletin board; but they objected to putting their names on a notice because they did not want everybody in the store mad with them; so it was agreed that a notice would be signed and posted by the store manager after ascertaining the best time for President Payne to be present. Thereafter he discussed the matter with General Manager Russell J. Weber, who conferred with President Payne, and agreed to attend such a meeting on Friday night, J Nancy Boyd, Wayne Pickarts, and Charlotte Wickeren did not appear as witnesses in the case 5 A prior meeting had been held in the early morning of July 23, July 30, 1965. Thereupon, he prepared, signed, and posted a notice inviting employees to attend the meeting to discuss and ask questions about the Union. Pursuant to that notice, 27 employees assembled in the basement of the store after worktime on the night of July 30, 1965, in the presence of President Carl L. Payne, General Manager Russell J. Weber, Store Manager Gerald Whitcomb and other supervisors. Russell Weber opened the meeting with a summary of information as to what had happened between the Union and the Company since January 1, 1965, and assured the employees that they should feel free to express their views at this meeting without fear or worry about their jobs, because the Company would like to know how they felt, and what they wanted the Company to do. Robert G. Endres (employee) remarked that the paint department was the only one in the store making any money, and ought to be increased in size. Richard A. Martinson (employee) inquired why the "carry-out" boys in the grocery store were making more money than he was making. Thereupon, General Manager Russell J. Weber explained that economic conditions in each industry were different; that wage scales were set up based upon the demand made throughout the particular industry; but in their type of operations this was not possible because the volume and turnover was not comparable with a grocery store operation. Several other employees made comments, and then Nellie Miller (employee) asked President Payne to tell them what to do, but Payne said they would have to make their own decision; that he would go along with whatever they decided. Linda Peerenboom then suggested that a vote be taken. Thereupon, General Manager Weber proposed that all in favor of continuing negotiations with the Union raise their hands. After that, Weber announced: "I think that we know your desires. We'll ask for an election so that you may express yourself"; and thereupon the meeting adjourned. This witness testified further that during the period January-July 1965, Tom Hannon made frequent reports to him as to what was going on in the store; and that he in turn reported these things to General Manager Russell J. Weber. Among other things he told Weber that Margaret Baxter had expressed antagonism to the Union; related the circumstances under which Margaret Baxter and Hazel Dobson had signed cards, and reported his conversations with several employees concerning their failure to pay union dues, etc. General Manager Russell J. Weber testified in substance that in February 1965, Assistant Store Manager Robert Miekle reported a discussion with Carol Lewis (employee) in which she expressed dissatisfaction with the union contract because wage increases were based on seniority alone rather than merit , and cited an example of its application to herself as a full-time employee in the toy department; that in March 1965, Store Manager Gerald Whitcomb reported that George Bernhagen (employee), after working several months, had inquired whether there was a union in the store, said that nobody had approached him about it, and that he definitely did not want to belong to a union; that during the spring of 1965, Jack Southerland, Jr. (employee), had inquired whether he would be required to join the Union, and said that he had no desire to join the Union; that in March 1965. Elanore !965, around a coffee table in the store, when only full-time employees were present I C & P PLAZA DEPARTMENT STORE 697 Drager (employee) had expressed dissatisfaction among the employees about the Union , and inquired whether she would be required to join it . 6 Weber testified also concerning reports made to him by Store Manager Gerald Whitcomb ; that Hazel Dobson (employee ) in March 1965 said she was definitely not interested in joining the Union; that in July 1965 , Hazel Dobson had signed a card for the Union to bring their files up to date , but after discussion with other employees was very much disturbed to learn that she had signed an authorization card designating the Union as her bargaining representative ; that at the union meeting on July 14 , 1965 , Irene Kamperschroer had signed an authorization card , but thereafter expressed regrets that she had done so; that in April and June 1965, Wayne Pickarts (employee ) expressed resentment because some of the employees were freeloaders (not paying their dues); and that a group consisting of Wayne Pickarts , Charlotte Wickeren , and Sue Peerenboom had expressed dissatisfaction with the Union and suggested that management arrange for a meeting with employees and tell their side of the story; that in June 1965 , Madelyn Zeller had expressed high regard for President Carl L . Payne, felt that employees would not be treated unfairly without a union, and inquired about methods of getting rid of the Union ; that later in July 1965 , Madelyn Zeller became very much disturbed because she had attended a union meeting and thereafter signed a union authorization card on condition that it would be used only in the event President Payne desired to negotiate with the Union ; that in June 1965 , Patricia Zeller indicated that she had no desire to join the Union ; that back in January 1965, Charlotte Wickeren received notice from the Union that action would be taken against her unless she paid her dues. Weber testified further that during the period July 29-26, 1965 , Sue Peerenboom came to him saying that she had been talking to Charlotte Wickeren and Madelyn Zeller , and warned him that cards were being signed by some employees that did not know what they were doing. At that time Sue Peerenboom requested him to hold a meeting of employees to discuss the situation; and he agreed to find out whether he could properly do so. Concluding Findings Contrary to the contentions of the Respondent, the records of the Union show that a substantial majority of employees in the appropriate unit paid their union dues fot the entire period beginning January 1 and ending July 1, 1965 . Furthermore , the nonpayment of dues does not necessarily imply loss of majority representation . Most of the complaints or dissatisfaction expressed by employees to management came from newly hired people who had never joined the Union or from those who became disgruntled during the period when Respondent was making changes in its operations at the department store due to which the Union had more or less been relegated to a standby basis under a verbal continuation of the old contract until the operating changes were completed. The verbal extension of the contract implied that the Union should be notified when changes were completed, so that negotiations already demanded by the Union for a new contract could be resumed . Failure of the Respondent to notify new employees and other inquirers during the 6- month period from January 1 to July 1, 1965 , that the old contract including the union -security provisions were in full force and effect by verbal agreement , indicated bad faith by the Respondent during this critical period . Having failed to furnish information to its employees during this period concerning the status of the collective -bargaining agreement , thereby encouraging the impression that they were being neglected or abandoned by the Union, the Respondent cannot now claim the benefit of such complaint to it by employees as the basis for a reasonable doubt of the Union ' s majority status at the expiration of the verbal extension of the contract . President Carl L. Payne revealed his animosity towards Business Representative Peter Voeller in May 1965 by addressing him as a Communist ; and later in October 1965 , told May McKitrick (former employee at the food store division) that he would assist her in getting unemployment compensation if she would drop the Union ; and said "they 're a bunch of Communists . I will fight them with every penny I have and every drop of blood in my body. If Pete (Voeller) was on the sidewalk , I would kill him right now. I like some unions, but I hate this one because they are a bunch of Communists ."7 After the first year of certification or in the absence of certification , where an incumbent union has a long and continuous history of recognition as a collective-bargaining representative, there is a rebuttable presumption of continuing majority status, and the burden is upon the employer to overcome that presumption by strong and convincing evidence before there can be a valid basis for the assertion of a reasonable doubt of the union 's majority status.8 The Respondent first asserted its alleged reasonable doubt of the Union's majority status on July 8, 1965 , followed by its letter of July 16 , 1965, demanding proof of a continuing majority. Business representatives of the Union tried in good faith to satisfy Respondent 's demand by obtaining new authorization cards from its members in an open meeting and by also visiting them in their homes. Evidence of fraud or misrepresentation in obtaining these cards , which is relied upon by the Respondent to justify its summary refusal to consider or investigate their validity, is weak, vacillating , and unworthy of consideration . The Union submitted newly signed authorization cards from 30 out of 46 employees in the appropriate unit . The validity of only four cards, signed by Hazel Dobson , Irene Kamperschroer, Madelyn Zeller , and Patricia Zeller , was attacked by testimony of the signers thereof. In my opinion this testimony does not invalidate either of these cards; but if all 4 be eliminated , there remains a majority of 26 out of 46 whose cards remain unchallenged , and from which I find majority representation by the Union of all employees in the appropriate unit . In most cases these cards were filled out completely in the handwriting of the signers, all of whom were intelligent, educated people; and it would be preposterous under the circumstances here to find that any fraud or misrepresentation was practiced upon them by the Union of which they were already dues-paying members, and by whom this particular unit had been represented for approximately 5 years since separation from the food store unit. From a preponderance of all the evidence in the case , I am constrained to find that no basis 9 Neither Assistant Store Manager Robert Miekle, Carol Lewis, George Berghagen , or Elanore Drager testified as a witness, and Jack Southerland , Jr, denied any such conversations with management. ' President Payne did not testify as a witness to deny the testimony of Peter Voeller or May McKitrick 8 See: Laystrom Manufacturing Co , 151 NLRB 1482 698 DECISIONS OF NATIONAL LABOR RELATIONS BOARD for a reasonable doubt as to exclusive representation by the Union of all employees in the appropriate unit existed on July 8, 1965, or at any time thereafter pertinent to this case. I find, therefore , that Respondent has at all times on and since July 8, 1965, refused to negotiate and bargain in good faith with Local 1401, Retail Clerks International Association (AFL-CIO), as the exclusive bargaining representative of all employees in the unit herein found appropriate for the purposes of collective bargaining. In the absence of a good-faith doubt of such representation, I further find that by holding a meeting of its employees in the presence of management on July 30, 1965, whereat attending employees were interrogated and polled with respect to their affiliation with the Union, the Respondent interfered with, restrained, and coerced employees in the exercise of the rights guaranteed by Section 7 of the Act. V. THE EFFECT OF THE UNFAIR LABOR PRACTICES UPON COMMERCE The activities of the Respondent set forth in section IV, above, occurring in connection with the Respondent's 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. VI. THE REMEDY Having found that the Respondent has engaged in unfair labor practices in violation of Section 8(a)(1) and (5) of the Act, I shall recommend that it cease and desist therefrom, and also take certain affirmative action designed to effectuate the policies of the National Labor Relations Act. It will also be recommended that the Respondent, upon request , bargain collectively with Local 1401, Retail Clerks International Association (AFL-CIO), as the exclusive bargaining representative of its employees at C & P Plaza Department Store, Division of C & P Shopping Center, Inc., in the unit herein found to be appropriate ; and if an understanding is reached, incorporate such understanding in a signed agreement. Further finding from hostility expressed by the Respondent towards representatives of the Union and the principles of collective bargaining that further unfair labor practices may be expected unless effectively restrained, I shall further recommend that Respondent cease and desist from in any manner infringing upon the rights guaranteed to employees in Section 7 of the Act to form, join, or assist labor organizations , to bargain collectively through representatives of their own choosing, and to engage in other concerted activities for the purpose of collective bargaining or other mutual aid or protection. Upon the basis of the foregoipg findings of fact, and upon the entire record in the case, I make the following: Conclusions of Law 1. C & P Plaza Department Store, Division of C & P Shopping Center, Inc., is an employer engaged in commerce within the meaning of Section 2(2) of the Act. 2. Local 1401, Retail Clerks International Association (AFL-CIO), is a labor organization within the meaning of Section 2(5) of the Act. 3. By virtue of Section 9(a) of the Act, Local 1401, Retail Clerks International Association (AFL-CIO), was on July 8, 1965, at all other times pertinent herein, and now is the exclusive bargaining representative of employees in the unit herein found to be appropriate, consisting of "All regular and full -time and regular part- time employees of the Respondent , working in its department store at 209 Cottage Grove Road, Madison, Wisconsin , excluding janitors, temporary and intermittent employees, store manager , store comanagers , full-time salaried manager trainees, confidential employees, watchmen and guards, and supervisors as defined in the Act." 4. By interrogating and polling its employees concerning their organizational activities on or about July 30, 1965, the Respondent has engaged in unfair labor practices within the meaning of Section 8(a)(1) of the Act. 5. By failing and refusing at all times on and since July 8, 1965, to bargain in good faith with Local 1401, Retail Clerks International Association (AFL-CIO), as the exclusive bargaining representative of its employees in the appropriate unit , the Respondent has engaged in and is engaging in unfair labor practices within the meaning of Section 8(a)(5) of the Act. 6. The aforesaid unfair labor practices are unfair labor practices affecting commerce within the meaning of Section 2(6) and (7) of the Act. Upon the basis of the foregoing findings of fact, conclusions of law, and the entire record in the case, I issue the following: RECOMMENDED ORDER C & P Plaza Department Store, Division of C & P Shopping Center, Inc., its agents, supervisors, successors, and assigns , shall: 1. Cease and desist from: (a) Interrogating or polling its employees concerning their organizational activities or affiliations , thereby interfering with , restraining , or coercing them in the exercise of the right to form, join, or assist labor organizations , to bargain collectively through representatives of their own choosing , and to engage in other concerted activities for the purpose of collective bargaining or other mutual aid or protection ; or to refrain from engaging in any or all such activities. (b) Refusing to bargain with Local 1401, Retail Clerks International Association (AFL-CIO), as the exclusive bargaining representative of its employees in the unit herein found to be appropriate for the purpose of collective bargaining. (c) In any other manner interfering with, restraining, or coercing its employees , or infringing upon the rights guaranteed to such employees in Section 7 of the Act. 2. Take the following affirmative action designed to effectuate the policies of the Act: (a) Upon request, bargain collectively in good faith with Local 1401, Retail Clerks International Association (AFL-CIO), as the exclusive representative of all employees in the aforesaid appropriate unit , with respect to wages, hours , grievances , and other terms and conditions of employment, and, if an understanding is reached, embody such understanding in a signed agreement. (b) Post at its department store at 209 Cottage Grove Road, Madison, Wisconsin, copies of the attached notice YOUNG METAL PRODUCTS CO. marked "Appendix." Copies of said notice, to be furnished by the Regional Director for Region 30, after being duly signed by the Respondent's authorized representative, shall be posted by the Respondent immediately upon receipt thereof, and be maintained by it for 60 consecutive days thereafter, in conspicuous places, including all places where notices to employees are customarily posted. Reasonable steps shall be taken by the Respondent to insure that said notices are not altered, defaced, or covered by any other material. (c) Notify the Regional Director for Region 30, 744 North Street, Milwaukee, Wisconsin, in writing, within 20 days from the date of this Recommended Order, what steps the Respondent has taken to comply therewith. 10 " In the event that this Recommended Order is adopted by the Board, the words "a Decision and Order" shall be substituted for the words "the Recommended Order of a Tnal Examiner" in the notice In the further event that the Board's Order is enforced by a decree of a United States Court of Appeals, the words "a Decree of the United States Court of Appeals Enforcing an Order" shall be substituted for the words "a Decision and Order " 10 In the event that this Recommended Order is adopted by the Board, this provision shall be modified to read. "Notify said Regional Director, in writing, within 10 days from the date of this Order, what steps Respondent has taken to comply herewith " Young Metal Products Company, and International Brotherhood of Boilmakers, Iron Shipbuilders , Blacksmiths , Forgers and Helpers , Lodge 1012 , AFL-CIO. Case 14-CA-3985. March 30,1967 DECISION AND ORDER BY CHAIRMAN MCCULLOCH AND MEMBERS BROWN AND JENKINS On December 22, 1966, Trial Examiner Owsley Vose issued his Decision in the above-entitled proceeding, finding that the Respondent had engaged in and was engaging in certain unfair labor practices, and recommending that it cease and desist therefrom and take certain affirmative action, as set forth in the attached Trial Examiner's Decision. Thereafter, the Respondent filed exceptions to the Trial Examiner's Decision, and a supporting brief. Pursuant to the provisions of Section 3(b) of the National Labor Relations Act, as amended, the National Labor Relations Board has delegated its powers in connection with this case to a three- member panel. The Board has reviewed the rulings of the Trial Examiner made at the hearing and finds that no prejudicial error was committed. The rulings are hereby affirmed. The Board has considered the Trial Examiner's Decision, the exceptions and brief, and the entire record in the case, and hereby adopts the findings, conclusions, and recommendations of the Trial Examiner. ORDER 699 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 Trial Examiner and hereby orders that the Respondent, Young Metal Products Company , Granite City, Illinois, its officers , agents, successors , and assigns , shall take the action set forth in the Trial Examiner's Recommended Order. TRIAL EXAMINER'S DECISION STATEMENT OF THE CASE OWSLEY VOSE, Trial Examiner: This proceeding was heard in St. Louis, Missouri, on August 23, 1966, pursuant to a charge filed on June 2, 1966, by the Charging Party, hereinafter called the Boilermakers, and a complaint issued on July 12, 1966, and amended on July 18, 1966. The case involves the question whether the Respondent, hereinafter called the Company, engaged in interference, restraint, and coercion in violation of Section 8(a)(1) of the Act by posting a notice prohibiting all "union talk" in the plant. Upon the entire record, and after due consideration of the briefs filed by Respondent and the General Counsel, I make the following: FINDINGS AND CONCLUSIONS I. THE BUSINESS OF THE COMPANY The Company, which has its principal office and place of business in East Chicago, Indiana, operates, among others, a plant at Granite City, Illinois, where it is engaged in the manufacture of nestable corrugated metal pipe for the United States Department of Defense. Eighty-five percent of its finished products'are shipped directly to Vietnam, by air, if possible. The rest is sent to army depots to be sent to Vietnam later on. During the year ending June 30, 1965, a representative period, the Company had shipped to its Granite City plant from out-of-State sources more than $50,000 worth of raw materials. Upon these facts, I find, as the Company admits, that it is engaged in commerce within the meaning of Section 2(6) and (7) of the Act, and that it will effectuate the policies of the Act to assert jurisdiction herein. II. THE LABOR ORGANIZATION INVOLVED International Brotherhood of Boilermakers, Iron Shipbuilders, Blacksmiths, Forgers and Helpers, Lodge 1012, AFL-CIO, hereinafter called the Boilermakers, is a labor organization within the meaning of Section 2(5) of the Act. III. THE UNFAIR LABOR PRACTICES A. Background In a prior decision involving the Company's Granite City plant , the Board found , in summary, as follows (157 NLRB 408): The Company hired its first employees on July 23, 1964 , and the four employees hired that day were assigned to cleaning up the plant in preparation for the installation 163 NLRB No. 117 Copy with citationCopy as parenthetical citation