Cement Transport, Inc.Download PDFNational Labor Relations Board - Board DecisionsDec 11, 1972200 N.L.R.B. 841 (N.L.R.B. 1972) Copy Citation CEMENT TRANSPORT, INC 841 Cement Transport, Inc and Edgar Ray Thompson Case 9-CA-6569 December 11, 1972 DECISION AND ORDER BY CHAIRMAN MILLER AND MEMBERS FANNING AND JENKINS On June 15, 1972, Administrative Law Judge 1 Thomas F Maher issued the attached Decision in this proceeding Thereafter, Respondent filed excep- tions 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 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 brief and has decided to affirm the rulings, findings, and conclusions 2 of the Administrative Law Judge and to adopt his recommended Order ORDER Pursuant to Section 10(c) of the National Labor Relations Act, as amended, the National Labor Relations Board adopts as its Order the recommend- ed Order of the Administrative Law Judge and hereby orders that Cement Transport, Inc, Kosmos- dale, Kentucky, its officers, agents, successors, and assigns, shall take the action set forth in the Administrative Law Judge's recommended Order CHAIRMAN MILLER, dissenting Is an employee who, among his other misdeeds, deliberately instigates and circulates a totally base- less rumor that his employer has been bribing a union official at the rate of $20,000 a year entitled to remain in the employ of the Company? My colleagues apparently think so, and herein order such an employee reinstated with full backpay I think otherwise, and would dismiss the complaint i The title of Trial Examiner was changed to Administrative Law Judge effective August 19 1972 2 The Respondent essentially seeks to have the Board reverse the Administrative Law Judge s credibility resolutions particularly his crediting of Thompson s testimony that Respondent s president told him immediately after his discharge that he was being let go because of the union poison he was spreading around Absent a showing by a clear preponderance of all of the relevant evidence that these credibility resolutions are incorrect the Board will not overrule an Administrative Law Judge s credibility findings Standard Dry Wall Products Inc 91 NLRB 544 enfd 188 F 2d 362 (C A 3) Having carefully examined the record we find no basis for reversing his findings We would note that Thompson was a capable driver and that he was agressive in his union activity to achieve benefits he thought he and his fellow employees were entitled to receive Respondents unequivocal discharge of him for these activities cannot now be Justified on the ground that Thompson s activities may have provided Respondent with another basis for his discharge The Board s problem in such cases is to determine not whether a good reason existed for the discharge but whether that was the real reason and if not whether the real reason concerned the employee's union activity (or lack thereof) Our dissenting colleague seems to have stopped his inquiry at the point where he found a cause other than union activity existed which would have justified the discharge As a secondary consideration however we note that our dissenting colleague's characterization of the rumor allegedly instigated and circulated by Thompson as totally baseless is contrary to both the record and the Administrative Law Judges findings In discussing the Respondents contention that it had been slandered by Thompson s accusation that it bribed a union official the Administrative Law Judge found Whatever language was used to describe the arrangement, if any between Respondent and Business Agent Fisher of Local 89, the fact stands unrefuted by the evidence that the last time Local 89 officials provided blank authorization cards to the organizers General Manager Epps knew of it and of the number of cards involved before the drivers did I can attach no other interpretation of Epps failure to deny this incident attributed to him but to accept it as a fact Again we have no basis for reversing this finding particularly when the credited evidence was not denied on the other hand, however we are unable to discern, in view of this finding how our dissenting colleague can characterize Thompson s alleged accusations as a "totally baseless rumor TRIAL EXAMINER'S DECISION STATEMENT OF THE CASE THOMAS F MAHER, Trial Examiner Upon a charge filed by Edgar Ray Thompson on November 2, 1971, against Cement Transport, Inc, Respondent herein, the Regional Director for Region 9 of the National Labor Relations Board, herein called the Board, issued a complaint on behalf of the General Counsel of the Board on December 23, 1971, wherein it was alleged that Respondent had violated Section 8(a)(1) and (3) of the National Labor Relations Act, as amended (29 U S C, Sec 151 et seq), herein called the Act In its duly filed answer Respondent, while admitting certain allegations of the complaint, denied the commission of any unfair labor practice Pursuant to notice a trial was held before me in Louisville, Kentucky, where all parties were present, represented by counsel, and afforded a full opportunity to present evidence, examine and cross-examine witnesses, present oral argument, and file briefs with me Briefs were filed on April 29, 1972 Subsequent to the issuance of the complaint in this matter a petition was filed with the Regional Director on January 3, 1972, in Case 9-RC-9380 for an election among Respondent's truckdnvers to determine the representative status of Local Union No 89, International Brotherhood of Teamsters, Chauffeurs, Warehousemen and Helpers of America Upon representations of Respondent that the substance of the instant proceedings, the alleged independ- ent contractor's status of the members of the bargaining unit, had a direct relation to the employee status of the alleged discnminatee herein, Edgar Ray Thompson, I granted Respondent's motion to incorporate into the instant proceeding the entire record in the pending representation case , Case 9-RC-9380, including the tran- script and all exhibits On March 22, 1972, the Regional Director issued his Decision and Direction of Election in Case 9-RC-9380 and I likewise incorporate this document 200 NLRB No 122 842 DECISIONS OF NATIONAL LABOR RELATIONS BOARD into the instant proceeding and have attached the copy of it as Appendix A to this Decision 1 Upon consideration of the entire record, including the record and decision in Case 9-RC-9380, and the briefs filed with me, and specifically upon my observation of each witness appearing before me,2 I make the following FINDINGS OF FACT AND CONCLUSIONS OF LAW I THE BUSINESS OF THE RESPONDENT Cement Transport, Inc, Respondent herein, is a Kentuc- ky corporation with its terminal in Kosmosdale, Kentucky, where it is engaged in the transportation of cement pursuant to a hauling agreement with the Kosmos Portland Cement Company On January 27, 1967, the Board found, upon facts presented to it, that Respondent was an employer engaged in commerce within the meaning of the Act 3 As nothing has been brought to the instant record that would suggest facts or circumstances relating to Respondent's business inconsistent with the Board's findings, I accordingly conclude and find that Respondent continues to be an employer engaged in commerce within the meaning of Section 2(6) and (7) of the Act II THE LABOR ORGANIZATION INVOLVED Local Union No 89, International Brotherhood of Teamsters, Chauffeurs, Warehousemen and Helpers of America, referred to herein as the Union or the Teamsters, is admitted to be and I accordingly conclude and find it to be a labor organization within the meaning of Section 2(5) of the Act III THE UNFAIR LABOR PRACTICES A Sequence of Events For over 17 years, since May 1954, Edgar Ray Thomp- son has been a driver for Respondent under the terms of a lease agreement whereby Thompson and his truck trailer are engaged exclusively in the transportation of cement products under the direction of Respondent's officials The precise status of Thompson, as either employee or independent contractor, will be considered hereinafter and is not directly relevant to the chain of events which culminated in Respondent's termination of Thompson's lease agreement on October 25, 1971 Since at least 1966, Thompson has actively sought the organization of Respondent's driver-owners, soliciting union memberships, discussing union matters frequently with his fellow drivers, and, at a Board-conducted election, serving as an official observer for the Union There is no question that all of this was known to Respondent's i Cf The Herald Co 181 NLRB 421 424 fn 7 enfd 444 F 2d 430 (C A 2) cert denied 404 US 990 2 Bishop and Malco Inc 159 NLRB 1159 1161 3 162 NLRB 1261 4 Employee Bobby Melson included himself and employees Sales and Burgess in this group 5 Epps did not deny this conduct attributed to him 6 I do not accept Thompson s confused explanation that he considered Davis the better union official to work with 7 Unless stated otherwise all dates refer to events in 1971 officials, and particularly to President T W Cummins, Jr, and General Manager William M Epps, both of whom readily admitted to their knowledge of Thompson's activities Thompson's most recent efforts to unionize the drivers commenced in June 1971 when, in the company of four or five other dnvers,4 he drove to Greenwood, Indiana, and met with International Representative Donald Davis, assigned to Local 299 of the Teamsters, located in Detroit, Michigan Davis gave Thompson a supply of blank authorization cards bearing the inscription of Local 299, instructed him to hold them, when signed, until the fall These cards, when signed, were eventually returned to Davis who in turn gave them to International Representa- tive Leon Carrier of Local 89, in Louisville Because the use of cards supplied by Davis bore the inscription of the Detroit Local an issue has been raised as to Thompson's selection of a so-called "tough" union to represent the drivers and deal with Respondent Thompson testified without contradiction that when blank authorization cards were obtained from a representative of Local 89 in 1969 in preparation for an organizing campaign and "before we got our cards signed Mr Epps told us how many cards we done picked up "5 As a consequence no effort was made at that time to continue with the organizing campaign It was to avoid a recurrence of this, I conclude, that prompted Thompson and his associates to travel to Greenwood, Indiana, to obtain blank cards in June 1971 rather than to get them from the Louisville local 6 That the cards were, in fact, turned over to Union Representative Carrier of Local 89 by Davis after they had been signed and given to him by Thompson satisfies me that going outside the Louisville area to obtain a "suitable" labor organization was not intended Nor am I aware of any vice in doing so, had the employees so preferred During the remainder of June and into July Thompson solicited each driver for membership in the Union and testified that by July 157 he had obtained 38 signed authorization cards,8 which appear to constitute substan- tially all of the drivers eligible to vote 9 Consequently, from that date organizing activity necessarily subsided, Thomp- son being under instructions from Union Representative Davis to hold on to the cards until the fall The cards were not, in fact, used until they were presented to the Regional Director on January 3, 1972, as the supporting evidence of employee interest required upon the filing of the petition in Case 9-RC-9380 Meanwhile, as Thompson's campaign gained momen- tum, Respondent developed an interest in it Thus on June 17 General Manager Epps engaged Employee Leonard Kilgore in a conversation asking if Thompson had asked him to sign a union card, stating that he had heard Thompson had some and was passing them out Several 8 Employee Randolph Wood credibly collaborates this figure as having been told hun by Thompson 9 Twenty-four drivers voted in the 1967 election , the petition in Case 9-RC-9380 now pending stated that there are approximately 37 employees in the unit in which an election is being sought Because the Regional Directors decision (Appendix A) differentiates as to eligibility between driver owners and multiple driver owners and because the 38 card signers were not identified in the record the precise number of drivers eligible to vote cannot be stated at this point nor is it significant to any issue herein CEMENT TRANSPORT, INC days after Kilgore had signed his union card, Epps again asked him if he had signed a card A week or two later, after Kilgore had been seen leaving Thompson's company, Epps asked him if they had talked about the Union and if Thompson had asked him yet to sign a union card to Similarly, at some unrecalled dates prior to Thompson's departure and while he was still soliciting union authoriza- tion cards, Thompson solicited Employee Lyndell Small, giving him a card to sign ii While the card was still in Small's possession, Epps approached him and asked him if he had signed a card Small answered equivocally and Epps agreed that he had a right to do as he pleased In the course of the conversation, Epps said it had been reported to him that Thompson was passing out cards and asking for help Employee Earl McMahan also had a conversation with Epps relating to union cards and to Thompson Thus in September Epps asked him if there were any cards being passed out, referring to Thompson by name McMahan "kind of smudged it off," saying that he did not know too much about it Actually, however, Thompson had solicited and obtained McMahan's membership into the Union and McMahan, when asked at the hearing what reason Thompson had given him forjoining the Union, stated that "it would benefit us all if we did"-"generally, it was money wise " Meanwhile, after learning of Thompson's progress in organizing the drivers, Epps reported the situation to President Cummins who immediately sent a letter, under date of July 1, to each driver He called attention of the men to the organizing campaign then in progress and gave his reasons why it was "the worse possible thing that could happen to Cement Transport and the men who drive for us 1112 Strongly urging the drivers not to sign authorization cards being circulated among them, Cummins suggested a personal motive on the part of "those getting you to sign up," and pointed out the financial benefits and friendly relationship with the management which they already enjoyed He then outlined the generous character of the rates being paid the men and the disadvantages suffered by drivers working elsewhere under union contracts Ending with his assurance of possible rate improvement, Cummins again urged the men to refuse to sign an authorization card By July 15, according to Thompson, practically all the drivers had signed cards After that date union activity naturally tapered off, and everyone so testified Thompson, under instructions not to turn in the cards until fall, did maintain a modicum of union interest, frequently discuss- ing with the drivers their inadequate compensation and telling everyone who would listen to him of the arrange- ment he had worked under when he began driving for Respondent 17 years ago-namely, the provision in his first contract allocating to him 65 percent of the revenue derived from each run driven It was on this issue that Respondent based one of its several charges of deliberate misrepresentation by Thomp- 10 The credited testimony of Employee Kilgore Epps while admitting to the conversations with Kilgore denies that he asked him if he had signed a card or if Thompson was passing them out stating that he had no reason to ask the questions because he already knew Upon my observation of Epps as a witness I do not credit his testimony except as it relates to facts within 843 son, hence a study of the background would be in order Respondent denied Thompson's contention that an appen- dix to the 1954 lease agreement with him contained such a provision and it introduced into evidence the purported document Thompson identified the contract portions of the document but insisted that the appendix upon which the alleged 65 percent was specified had been removed It was his testimony that an entirely different appendix, one containing a zone system of rating which is presently in use, had been substituted Respondent's general bookkeep- er and accountant, employed at the time, testified in contradiction to this, stating that there had been no substitution of pages in the original document and that in fact 65 percent of gross revenue was never paid to drivers I can only deduce from this inconclusive evidence that Thompson did, in fact, labor under the impression that his first lease called for 65 percent of gross revenue and that he has consistently been agitating among the men to return to what he believed was the original rate Under all the circumstances present here, irrespective of whether or not the original lease was as Thompson described it to the men and to me on the witness stand, I am persuaded that he did believe the original lease to be as he states it and that he had acted and spoken in accordance with his belief, mistaken though he may have been In further support of his efforts to generate opposition to the existing pay rates among the drivers, Thompson in early October went to the offices of the State Motor Transport Division in Frankfort, Kentucky, and obtained copies of the rates and tariffs under which Respondent operated in the transportation of cement Thompson had these rates duplicated and gave copies to all the drivers Meanwhile, he maintained a constant barrage of propa- ganda directed to the existing pay scale and his determina- tion to improve it After a period of continuing activity among the men by Thompson, Respondent's President Cummins, on October 25, wrote him a letter terminating his lease In a telephone conversation on the following day Cummins, by his own testimony, stated, as follows He identified himself and wanted to know if I was the one that signed the letter terminating his agreement and I said I was and he said, why and I said because we simply could not tolerate the turmoil you were creating out there and the poison you were spreading out among our people It just got to the point where-I was sorry that I had to release him because he had been there quite a long while It didn't make me feel very good to have to do that and I was sorry but really I had no alternative He was destroying the authority of my superintendent and I could not continue to let him do those things In his testimony before me, Thompson had stated that Cummins had accused him of "spreading that Union poison around," whereas Cummins testified that in his accusation he had referred to the activity as "the poison you were spreading out among our people " Thus he did his peculiar knowledge or constitutes statements contrary to his or Respondent s interest 11 Small s card was signed on July 1 12 It is not alleged that this communication violated the Act 844 DECISIONS OF NATIONAL LABOR RELATIONS BOARD not include the word "Union" in his account, and he specifically contradicted Thompson's testimony that he did I accept Thompson's testimony as to the use of the term "Union poison" and reject Cummins' denial as being contradicted by the remainder of his account of the conversation wherein the word "Union" was used at several points Thus when asked if he did "ever allude to the Union in the conversation," Cummins replied I don't recall that I did I told him that I was certainly aware of his activities out there in June I knew that I said, I hope I thought it was all over, I knew that you weren't able to get a Union organized out there and I wondered why he did it and he said he was trying to make things better for himself and the men and I said, well, why didn't you come and talk to me if you had some problems You never did approach me about any of these things He said, well why didn't you come and talk to me Well, I wasn't the instigator in the case If he had a problem and he was going to get somebody else to solve his problems, I might have solved them for him pretty quickly but I never even knew what they were So that was his answer and then we went into a lot of other things, just merely repetitious , you might say And by way of seeking to mollify the effects of his action, Cummins then provided to Thompson (and the record) his final explanation thus I've known this man for a long time He has been a good operator There is no question about that There is no fault to find there but he really never has worked for anybody else for any length of time I just feel like as far as the companies that are in this area are concerned, we are probably as good a company to work for as any company in the country but I don't think he felt that way and so I suggested to him that he go somewhere else and work awhile Maybe he would see that things aren't quite so bad at home as he thought they were and I knew people in the trucking industry around here and if he wanted me to say a word for him, I would tell anybody he was a good operator Then, maybe some day if he felt differently about it, if he didn't feel that we were such a bunch of thieves and liars, we might talk again Thompson has not since driven for Respondent B The Disputed Employee Status of the Drivers It is Respondent's contention that its drivers, including Thompson, are independent contractors and not employ- ees protected by the Act Upon this premise, it is contended, the termination of Thompson 's lease agreement did not constitute a discrimination remediable by the Act against him, as an employee This issue is not 3 new one It was raised by Respondent in the context of an employee representation proceeding in 1966 There the Board decided, on January 27, 1967, in Cement Transport Inc, 162 NLRB 1261, that the identical class of employees involved here were employees within the meaning of the Act, and designated the following as a 13 The Herald Company 181 NLRB 421 enfd 444 F 2d 430 (C A 2) cert denied 404 U S 990 Pittsburgh Plate Glass Co v NL R B 333 U S unit of employees appropriate for the purposes of collec- tive bargaining All single owner-driver and nonowner-drivers em- ployed by the Employer at its plant located in Kosmosdale, Kentucky, but excluding all office clerical employees, guards, professional employees and super- visors as defined in the Act Subsequently, on March 22, 1972, while this proceeding was before me, the Regional Director , in Case 9-RC-9380, issued his Decision and Direction of Election in which, in accordance with the earlier Board Decision, he found single owner-drivers and nonowner-drivers to be employ- ees, and directed an election in the same bargaining unit designated by the Board in its January 1967 Decision Upon the authority of these determinations as they relate directly to the Respondent's denial of Edgar Ray Thomp- son's employee status, which status has been fully litigated, and in the absence of any evidence not previously considered or available that would alter the final determi- nation of this employee status, I consider myself precluded from rehtigating this issue in a directly related complaint case, and accordingly conclude and find upon these respective Board and Regional Director determinations that Edgar Ray Thompson, a conceded single owner-driver under lease agreement with the Respondent, is an employee within the meaning of the Act 13 C Respondent's Defense Quite apart from its basic contention that Thompson is an independent contractor and not an employee subject to the Act, an issue resolved above, it is Respondent 's further contention that Thompson's lease was terminated for cause and for engaging in concerted activity not protected by Section 7 of the Act Thus throughout the hearing it was claimed and it is supported by evidence that Thompson had on numerous occasions transported unauthorized individuals in his cab, and that he had incurred accidents in which he was found by the Company to have been at least partially responsible, and that these contributed to Respondent's decision to terminate Thompson 's lease In its brief to me, however , Respondent appears to have abandoned these factors as being contributory to the termination Thus in commenting upon the pretexts it could have used on earlier occasions to terminate Thomp- son, Respondent refers to the unauthorized driver incidents and Thompson's two accidents and states that these "certainly would have provided ample opportunity and excuse for cutting him off on a number of occasions after the 1967 election " Having thus disavowed these past and recent peculations as the motive, or partial motive, for the lease termination Respondent 's brief proceeds to cite other and more recent activity for what it contends to be "Reasons for Thompson's Termination " Accordingly, therefore , in contemplation of Respondent 's own assess- ment of the basis for Thompson 's termination , I reject as not relevant to any issue here such facts as deal with Thompson's travelling companions or his several minor accidents in the recent past, albeit his overall truckdnvmg 146 162, NLRB v Sagamore Shirt Co 365 F 2d 898 (C A D C) N LRB v Union Brothers Inc 403 F 2d 883 887 (C A 4) CEMENT TRANSPORT, INC record with Respondent has been favorably recognized by it, and others, through numerous safe driver awards and the winning of the State Championship in the National Truck Rodeo There remains to be stated then the reasons advanced by Thompson for the lease termination Here it is claimed that Thompson, in reprisal for being charged in June 1971 for the loss of two batteries by Respondent, determined that he would organize the drivers, that he had obtained signed authorization cards from other drivers through threats of loss of jobs and seniority if they did not sign up forthwith, that he conducted a personal campaign of abuse, vilifica- tion, and slander of the Company by stating to other drivers that he had been cheated out of his pay and that the Company had bribed an official of Local 89, Dick Fisher, that he had stated on numerous occasions he had helped build up the Company and that he was going to help tear it down, referring to President Cummins as a "son-of-a- bitch", that in the course of all of the foregoing he had created such a disturbance as to get the drivers upset and reduce their morale, and finally that by going to the State Motor Transport Division and obtaining a copy of the Company's tariff rates on file there Thompson, stating that he could not obtain them from the Company, misrepre- sented the Respondent to the State officials, and sought to "defame and discredit" it by conducting a one man campaign among the drivers showing them how they were being cheated out of money, using his first lease agreement as he recollected it (supra) as the basis of comparison For all of the foregoing, Respondent claims that Thompson's activity was not protected by Section 7 of the Act and it was accordingly provided with a complete defense of its termination of his lease agreement, if he were found to be an employee and not an independent contractor, as basically claimed D Discussion, Analysis, and Conclusions Respondent's characterization of Thompson's activity misreads, in many instances, the evidence in the record, and in other instances it manifests a lack of understanding of the representation processes guaranteed by the Act For example, it is suggested throughout the record that something devious was being perpetrated by Thompson and a group of drivers who sought a particular labor organization to represent them-the "tough" Detroit Teamsters Local Quite apart from the fact that the International Representative of that so-called "tough" local actually turned the signed authorization cards over to the Louisville Local 89, there is nothing in the administra- tion of the Act that requires employees to choose only certain labor organizations, and then on a geographic basis The very purpose of the Act is otherwise Indeed the unrefuted statement of Thompson that a supply of authorization cards from some source other than Local 89 was sought out to insure that a premature "leak" of their plans would not again occur would provide in itself ample justification for looking elsewhere for cards, as the men did And it also puts to rest Respondent's accusations 14 See Ben Pepin Corp 181 NLRB 1025 15 Sec 7 provides in relevant part that Employees shall engage in 845 concerning the so-called "bribe" of the Union official Whatever language was used to describe the arrangement, if any, between Respondent and Business Agent Fisher of Local 89, the fact stands unrefuted by the evidence that the last time Local 89 officials provided blank authorization cards to the organizers General Manager Epps knew of it and of the number of cards involved before the drivers did I can attach no other interpretation to Epps' failure to deny this incident attributed to him but to accept it as a fact 14 So much then for Thompson 's supposedly singlehanded selection of a union and the so-called slander respecting the "bribing" of a union official The remainder of Respondent 's accusations directed at Thompson are equally without significance Thus, the fact that the campaign had quieted down by mid-July only to be rejuvenated thereafter by Thompson is claimed by Respon- dent to have some hidden malevolence The campaign did quiet down , to use Respondent's terminology, when Thompson obtained the signed card of practically of every eligible driver Nothing remained to be accomplished but the winning of the election , and Thompson credibly testified that he was under instructions from the Union's international representative , Davis, to wait until fall-at which time, it must be remembered , the cards would then serve the purpose of establishing a basis for a petition for an election This actually occurred in January 1972 Meanwhile, Thompson's only campaign chores were to maintain an interest in the Union pending the coming election And it is precisely this which the Respondent misconceives as defamation, accusation of cheating (a word credibly rejected by Thompson as never having been used), abuse , vilification , and threats to tear down the Company Indeed Respondent objects not only to the campaigning which Thompson carried on in behalf of the Union but to the effect of it as well, the disturbance, the fears being engendered among the drivers , and their general state of unrest Essentially it is Respondent's contention that unless an employee engages in union or concerted activity with a degree of finesse and gentility then he has divested himself of the protections of Section 7 of the Act 15 Thus it seeks to convert protected concerted activity into conduct which would warrant termination by characterizing it as a disturbance Thompson did frequently criticize the Re- spondent, referring to the 65 percent of gross revenue which he believed he had received in his first lease agreement, and he did circulate among the drivers copies of the Company's tariff rates filed with the State as a means of comparing the Company 's income on a trip by trip basis with the amount paid to each driver for such trip And on occasion he did threaten to report the Company's alleged permissiveness in certain operating areas to State Motor Vehicle Division and the Interstate Commerce Commis- sion This activity may well have engendered a degree of unrest and general dissatisfaction But such unrest or dissatisfaction often proceeds or accompanies certain concerted activity for mutual aid or protection, indeed concerted activity often springs from the employees' dissatisfaction with their working conditions If an employ- concerted activities for the purpose of mutual aid and protection ' 846 DECISIONS OF NATIONAL LABOR RELATIONS BOARD er were free to discharge an employee who, in the exercise of the statutory rights, sought to induce concerted activity (here the eventual selection of the Umon to represent them) simply by characterizing that exercise as "disturb- ance" or the other invective used by the Respondent, the guarantees which the act extends to concerted activity for mutual aid and protection would be largely nullified A strike, for example, is a classic example of unrest and dissatisfaction among employees, and the language of the pickets and the picket signs are no less the variety of accusations used by Thompson throughout this campaign But it cannot be accepted that employees who seek to persuade fellow employees to engage in such concerted activity (here acceptance of the Umon in the coming election) are engaged in a disturbance, and are therefore beyond statutory protection 16 Nor is it material that Respondent may have, in good faith, regarded Thompson's conduct as falling outside the scope of protected activity Whatever Respondent's motive for terminating Thomp- son's lease it did so as he was engaged in the exercise of his right "to form, join or assist labor organizations " Because antiunion bias is not necessary for an employer to infringe upon such rights, Respondent's good faith reliance upon the righteousness of his action is no concern 17 In sum, the totality of Thompson's activities to which Respondent objects constitutes nothing more than a vigorous, continuing organization campaign which, even as this decision is written, awaits an election among the drivers 18 Thompson has at all times focused the attention of the drivers on what he believed to have been his initial pay rate and upon the disparities between that rate, the rates they were presently being paid, and the income which the Respondent receives This matter goes to the very heart of working conditions Similarly, assuming that he did criticize Respondent for its private dealings with an official of the Union, this matter, not denied anywhere in the record, concerned advance knowledge of employee activi- ty If ever employees are subject to unlawful interference it would be at the outset of a campaign Respondent can hardly be heard to complain that its undemed interference was beyond reproach Finding, therefore, that Thompson's activities were protected in nature I am not disposed to conclude that they have lost this protection simply because he failed to comport with Respondent's standards of behavior The Board does not impose such a heavy hand upon the conduct of employee organization and representation 19 Elsewhere I have found and concluded upon established authority, supra, that Respondent's single owner-drivers, of which Edgar Ray Thompson was one, are employees within the meaning of the Act In such circumstances, therefore, upon the facts set forth above, I conclude and find that by the termination of the lease agreement of Thompson for the reasons stated Respondent thereby discriminated against him as an employee for engaging in 16 Salt River Valley Water Users Association v N L R B 209 F 2d 335 (C A 9) 17 NLRB v Burnup and Sims Inc 379 U S 21 18 Case 9-CA-6569 19 M S Plastics of Ohio 181 NLRB 705, 707-708 New York Trap Rock Corp 148 NLRB 374 380 20 F W Woolworth Co 90 NLRB 289 concerted and union activities protected by Section 7 of the Act, and thereby violated Section 8(a)(3) By the same conduct and by Epps' interrogation of Employees Kilgore, Small, and McMahan concerning Thompson's union activities and their own sentiments and membership, supra, I further conclude and find that Respondent thereby interfered with, restrained, and coerced Thompson and its other employees in the exercise of their statutory right in violation of Section 8(a)(1) of the Act IV THE EFFECT OF THE UNFAIR LABOR PRACTICES UPON COMMERCE The activities of Respondent set forth in section III, 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 threatening and obstructing commerce and the free flow of commerce V THE REMEDY I have found that Respondent has interfered with, restrained, and coerced its employees in certain respects and that it has discnminatonly terminated the lease of Edgar Ray Thompson I shall recommend that Respondent cease and desist from this conduct, and because the nature of the unfair labor practices committed here are of such gravity as to present a threat of future violations of the Act, I shall recommend that Respondent cease and desist from any other manner interfering with, restraining, or coercing its employees in the exercise of their statutory rights Affirmatively I shall recommend that Respondent reinstate the most recent agreement between itself and Edgar Ray Thompson with backpay to be computed in the customary manner,20 with interest at the rate of 6 percent per annum,21 that it preserve and upon request make available to the Board or its agents for examination and copying all of its payroll records, timecards, personnel records and reports, and all other records necessary to determine the amount of backpay due, and that it post an appropriate notice of compliance with such order as the Board issues Upon the foregoing findings of fact, conclusions of law, and the entire record, pursuant to Section 10(c) of the Act, I hereby issue the following recommended ORDER 22 Respondent, Cement Transport, Inc, its officers, agents, successors, and assigns, shall I Cease and desist from (a) Unlawfully interrogating its employees concerning their membership in and activity in behalf of Local Union No 89, International Brotherhood of Teamsters, Chauf- 21 Isis Plumbing & Heating Co 138 NLRB 716 22 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 CEMENT TRANSPORT, INC fears, Warehousemen and Helpers of America, or any other labor organization (b) By terminating their lease agreements, discharging, or otherwise denying employment to any employee or in any other manner disc riminatmg against any employee with respect to hire, tenure of employment, or any term or condition of employment (c) In any other manner interfering with, restraining, or coercing its employees in the exercise of rights guaranteed them by Section 7 of the Act 2 Take the following affirmative action which it is deemed will effectuate the policies of the Act (a) Offer to Edgar Ray Thompson the reinstatement of his most recent lease agreement (b) Make whole Edgar Ray Thompson for any loss of income suffered as a result of the discrimination against him in the manner set forth in "The Remedy " (c) Post at its Kosmodale, Kentucky, plant a notice attached hereto as "Appendix B "23 Copies of the notice, on forms provided by the Regional Director for Region 9, shall, after being duly signed by the Respondent, be posted immediately upon receipt thereof in conspicuous places, and be maintained for a period of 60 consecutive days Reasonable steps shall be taken to insure that said notices are not altered, defaced, or covered by any other material (d) Notify the said Regional Director in writing within 20 days from the receipt of the Trial Examiner's Decision what steps it has taken to comply herewith 24 23 In the event that the Board s 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 be changed to read Posted pursuant to a Judgment of the United States Court of Appeals enforcing an Order of the National Labor Relations Board 24 In the event that this recommended Order is adopted by the Board after exceptions have been filed this provision shall be modified to read Notify the Regional Director for Region 9 in writing, within 20 days from the date of this Order what steps the Respondent has taken to comply herewith APPENDIX A DECISION AND DIRECTION OF ELECTION Upon a petition duly filed under Section 9(c) of the National Labor Relations Act, a hearing was held before a hearing officer of the National Labor Relations Board The hearing officer's rulings made at the hearing are free from prejudicial error, and are hereby affirmed Pursuant to the provisions of Section 3(b) of the Act, the Board has delegated its powers in connection with this case to the undersigned Regional Director Upon the entire record in this case, the Regional Director finds 1 The Employer is engaged in commerce within the meaning of the Act and it will effectuate the purposes of the Act to assert jurisdiction herein 2 The labor organization involved claims to represent certain employees of the Employer 3 A question affecting commerce exists concerning the representation of certain employees of the Employer within the meaning of Section 9(c) (1) and Section 2(6) and (7) of the Act 4 The following employees of the Employer constitute 847 a unit appropriate for the purposes of collective bargaining within the meaning of Section 9(b) of the Act 1 All single owner-drivers and all nonowner-drivers operating equipment under lease to the Employer at its Kosmosdale, Kentucky plant, but excluding all office clerical employees, guards, multiple owner-drivers and all other supervisors as defined in the Act, and all other employees 1 The Employer a Kentucky corporation is a common carrier engaged in the business of hauling bulk and sack cement and other material from its terminal located at Kosmosdale, Kentucky The Petitioner seeks to represent a unit consisting of all single owner- drivers and nonowner drivers operating equipment under lease to the Employer There is no history of collective bargaining for these drivers The Employer contends that the unit petitioned for is inappropriate on the basis that all such drivers are either independent contractors or employees of independent contractors and accordingly urges that the petition herein be dismissed The record reflects that the Petitioner was unsuccessful in a representation election in Case 9-RC-6856 held on March 9 1967 among a unit of all single owner drivers and nonowner drivers employed by the Employer at its plant located at Kosmosdale, Kentucky, following a Board determination as to the appropriateness of such a unit Cement Transport Inc 162 NLRB 1262 The record reflects that the cement transported by the Employer is done pursuant to a contract with Kosmos Portland Cement Company, which has a plant at Kosmosdale Kentucky In addition the record shows that the Employer has a contract with Diamond Crystal Salt Company to transport salt from said company s Louisville Kentucky terminal The Employer utilizes but one driver to fulfill its contract with Diamond Crystal The record shows that the Employer does not own any of the tractors used in any of its over-the-road hauling operations The tractors used by the Employer in the operation of its business are leased A separate lease agreement is executed with respect to each tractor used regardless of the number of tractors an individual may have leased to the Employer The record shows however, that the Employer provides all the trailers used in its over-the road operations and further maintains a shop at its Kosmosdale Kentucky location for the purpose of servicing its trailers To operate its shop the Employer employs mechanics tire changers and yardmen None of the shop employees wo' k on the leased tractors used in the Employer's operations The record reflects that these shop employees are represented by Local Union No 370 United Cement, Line and Gypsum Workers International Union The Petitioner does not seek to represent any of these employees The following are the various categories of owners and drivers of equipment utilized by the Employer in its operations Owner nondrivers These individuals lease equipment to the Employer but do no driving themselves The parties are in agreement and the record supports the conclusion that these individuals should be excluded from any unit found appropriate Single owner-drivers These drivers own and drive a single tractor unit which they lease to the Employer Multiple owner-drivers These drivers own more than one tractor which they lease to the Employer A multiple owner driver drives one of his own units and employs other nonowner-drivers to drive the remainder of the tractors he has leased to the Employer Nonowner drivers These drivers drive leased tractors for the tractor owners The record shows that the Employer operates as an interstate motor vehicle common carrier pursuant to certificates of public convenience and necessity granted by the Interstate Commerce Commission herein called the ICC It also operates under the authority of the Kentucky Department of Motor Transportation The Employers operations are subject to the Interstate Commerce Act and to the regulations promulgated thereunder by the ICC The record discloses that under these regulations a carrier is permitted to augment its equipment by way of lease However these regulations require the carrier to have full direction and control of such vehicles and to be fully responsible for the operations thereof in accordance with applicable law and regulations as if the carrier were the owner of such vehicles All of the drivers involved herein haul under the authority of the Employer The record shows that each tractor leased to the Employer must bear the name of the Employer as well as the Employer s ICC certificate numbers The relationship between the Employer and the owner-nondrivers single owner-drivers, and multiple owner drivers is based on the terms of a lease 848 DECISIONS OF NATIONAL LABOR RELATIONS BOARD agreement . Each lease runs for one year and is subject to termination by either party to the lease upon 30 days written notice , or, immediately, if either party violates the agreement . The lease provides that the tractors "shall be devoted exclusively to the carrier's business of transportation as much and as often as may be reasonably required by such business ... . The lease also requires the tractors to meet the requirements of the ICC rules and regulations as well as State and Federal laws . The lease further provides that the tractors are to be operated by the owner or owners' employees "under the direct supervision and control of the carrier for any useful purpose in connection with the transportation performed for the Employer for the duration of the contract." In addition , the tractor owners are obligated under the lease to furnish "a full complement of competent drivers. . .," to "pay all the compensation of every character of said drivers ...," and to "pay all taxes, charges, benefits, claims and liabilities of every kind which may arise by virtue of their employment." The tractor owners, in return for the use of their equipment and services of themselves or their drivers,' receive payments from the Employer based on the amount of freight carried and the mileage covered according to certain geographical zones. An owner desiring to lease a tractor to the Employer makes out a written application to the Employer at its Kosmosdale, Kentucky, terminal. Although the record discloses that the Employer has no requirement as to the make or model of the tractors leased to it, the Employer's safety director initiates a safety check on all tractors prior to the Employer's executing a lease agreement with the owner. The Employer also requires that 30-day periodic inspections be conducted by its safety director on all leased tractors. Each driver must submit to a physical examination before he is allowed to drive for the Employer and for periodic physical examinations thereafter. In this regard, the Employer designates the examining physician and pays the entire cost of all such examinations. While the record shows that the owner of a tractor has the right to hire his own drivers, every driver of leased equipment must submit an application for employment to the Employer. Thereafter, the Employer checks on the qualifications of the proposed driver and if he meets the requirements of the Employer, the Employer informs the owner that he may hire the driver. The expenses of operating the tractors are borne by the tractor owners. In addition, all vehicle maintenance is paid for by the owner as is the purchase of fuel, oil, tires, and safety equipment required by State and Federal laws. The Employer does, however, provide fueling facilities at its Kosmosdale, Kentucky, terminal for the convenience of the drivers, and, in addition, furnishes fuel on a credit basis, deducting the cost of such fuel from the owner's weekly reimbursement. The Employer also pays for all cargo and liability insurance, with the exception The Employer also pays for all cargo and liability insurance, with the exception of "bobtailing" insurance, which is paid for by the tractor owners. Each driver is reimbursed on a daily basis for any amount expended on tolls. The record also shows that the Employer provides a Blue Cross-Blue Shield Health and Accident Insurance plan for the drivers. Under this plan, the Employer pays one-half of the premium and the drivers pay the balance. The Employer has also instituted an investment savings program for its drivers whereby the Employer will match the amount saved by the driver up to a maximum of $25.00 per month. This fund is administered by a separate agency and the participants have a say with respect to the investments that are made with their money. Participation by the drivers in both the Health and Accident Insurance plan and the savings program is optional. The record shows that all drivers are assigned hauls by the Employer's dispatcher on a first-in, first-out basis. In order to be eligible for a haul, the drivers must sign in on a list mantained by the Employer. Although the owners and drivers of the leased equipment frequently interchange trips, there is a rule in effect that if a driver refuses to take a load, he will not be permitted to drive for the Employer for a period of 3 days. In addition, the record shows that at the time the drivers pick up a load they are provided with a bill of lading by the Employer which contains instructions as to date, time, and place of delivery. While the record contains some testimony to the effect that the Employer does not exercise any control over the route to be used by the driver, the lease agreement hereinabove referred to provides that "notice and information with respect to the pick-up, routing and delivery of the trailer to be pulled by the driver shall be given by the carrier to the driver in advance of each trip ..... (Emphasis supplied.) While the record reflects that tractor owners are not required to haul exclusively for the Employer and have, in fact, hauled for other employers while under a leasing agreement with the Employer, the lease agreement requires that all tractors be devoted exclusively to the Employer's business when necessary to meet his transportation demands. The record also shows that all drivers are required to prepare and submit logsheets which must show all operations for each day, as required by State and ICC regulations. The record further shows that the Employer's dispatcher has the authority to prohibit a driver from making a trip if the load he is expected to take will cause him to exceed the 10-hour daily limit in driving time. In making a determination as to whether an individual is an independent contractor or an employee, the Board applies the common law "right of control" test . Under this test, the employer-employee relationship exists when the employer reserves the right to control not only the ends to be achieved , but also the means to be used in reaching such ends. The application of this test demands a balancing of all the evidence relevant to the relationship . National Freight, Inc., 153 NLRB 1536; Indiana Refrigera- tor Lines, Inc., 157 NLRB 539; Cement Transport, Inc., 162 NLRB 1261. In applying this test to the instant case, there are concededly some factors that indicate that the owner-drivers are independent contractors and that the nonowner-drivers are employees of independent contractors. Thus, as heretofore noted, the lease agreement provides that the tractor owner shall pay the wages or other fringe benefits of the nonowner-drivers of their leased equipment; the owners must bear the cost of operating, repairing, and maintaining their tractors ; the owners are responsible for making payroll deductions on behalf of the nonowner-drivers of leased equipment for Social Security, income taxes , and unemployment compensation; and the owners apparently are given some freedom in the selection of their routes. In addition, the owners have some opportunity to increase their profits by saving money on purchases of parts and repair costs, and by hauling for other customers when the Employer's business is slow. These factors, however, are in my judgment outweighed by others which establish extensive employer control over the owner -drivers and/or in their drivers; accordingly, I am constrained to conclude, on the balance of the evidence and the record as a whole, the owner -drivers and/or their drivers are employees of the Employer within the meaning of the Act. In reaching this conclusion , I rely on the following heretofore noted factors : the overall effect of the ICC regulations , requiring, as they do, comprehensive employer control over the operations of the tractor owners, the drivers and the leased equipment ; the lease providing for the Employer's use and control of the leased equipment ; the fact that the rental payments made to tractor owners for hauling the Employer's freight are unilaterally set by the Employer; the fact that either party may terminate the lease without cause on 30-days written notice, or immediately if one party violates the agreement; the fact that the tractor owners are required to submit their equipment to a safety check by the Employer; the fact that if a driver " signs in" but refuses to take a load , he is, in effect, disciplined by not being allowed to drive for the Employer for a period of 3 days; the fact that once a driver "signs in" he is bound by the bill of lading furnished him by the Employer as to the date, time, and place of delivery; the fact that the drivers are required to submit a driver's log to the Employer; the fact that all owner-drivers and drivers are required to file an application for employment with the Employer; the fact that each driver must undergo a physical examination at the expense of the Employer; the fact that the Employer has instituted a health and accident insurance plan and savings investment program for the owners and drivers; and, finally, the fact that each tractor is required to exhibit the Employer's name and ICC certificate number. In view of the foregoing, and on the basis of the record as a whole, I find that the single owner-drivers and the nonowner-drivers operating equipment under lease to the Employer are employees of the Employer within the meaning of the Act and constitute a unit appropriate for the purposes of collective bargaining. Indiana Refrigerator Lines, Inc., supra; Cement Transport, Inc., supra; Aetna Freight Lines, 194 NLRB No. 120. The majority of the cases cited by the Employer in its brief in support of its position that the drivers are independent contractors or employees of independent contractors were decided prior to the decision in Indiana Refrigerator Lines, Inc., supra. Accordingly, in light of the Board's decision in Indiana Refrigerator, those cases would not be controlling. Other cases relied on by the Employer are distinguishable from the instant case. Thus, in L C. Sinor, 168 NLRB 467, the owner-drivers, contrary to the tractor owners in the instant case , obtained their own hauling permit from the Oklahoma Corporation Commission and displayed their own names on their trucks. The case of Local 236, affiliated with International Brotherhood of Teamsters, Chauffeurs, Warehousemen and Helpers of America (Maxon Construction Company), 194 NLRB No. 104, also relied on by the Employer, is likewise inapposite. This case involved a jurisdictional dispute. The Teamsters contended that they should be awarded the job of hauling ice and water to a construction that they should be awarded the job of hauling ice and water to a construction site. The Board found the individual, who was hauling the ice and water, to be an independent contractor. The Employer on this job site, however, did not operate as a common carrier and was not subject to ICC regulations. The Employer's reliance on Deaton, Inc., 187 NLRB No. 102, and Aetna Freight Lines, Incorporated, supra, for the proposition that the Board is retreating from its holding in Indiana Refrigerator Lines, Inc., supra, appears CEMENT TRANSPORT, INC 849 misplaced The Board in both Deaton and Aetna Freight Lines found the drivers who operated leased equipment for the Employer to be employees rather than independent contractors Further in arriving at this decision, the Board emphasized the control over the drivers vested in the Employer by virtue of the lease agreements therein between the parties and ICC regulations both of which are factors clearly present in the instant case The record discloses that the multiple owner-drivers have and exercise the power to hire and discharge the drivers of their leased equipment It also appears that the multiple owner-drivers assign transfer , and responsibly direct nonowner drivers of their equipment I am satisfied that the foregoing supervisory authority is exercised not only for the purpose of protecting the leased equipment involved , but also as an integral part of the Employers business operations In these circumstances , and especially as the multiple owner drivers have effective authority with respect to the tenure of nonowner drivers of their leased equipment whom I have found to be employees of the Employer I find the multiple owner drivers are supervisors within the meaning of Section 2( 11) of the Act Accordingly I shall exclude them from the unit herein found appropriate Cement Transport Inc supra National Freight Inc supra Chemcial Leaman Tank Lines Inc 146 NLRB 148 While not specifically raised by either party the record raises a possible issue with respect to the status of those single owner drivers who, while they normally drive their own leased equipment may occasionally hire second or substitute drivers Single owner drivers have the right to hire second or substitute drivers and some of them have done so in the past However the record discloses that this occurs only in rare or emergency situations In these circumstances, and since they exercise such supervisory authority only sporadically I find that such single owner drivers are not supervisors within the meaning of Section 2(11) of the Act Huntley Industrial Minerals Inc 131 NLRB 1227, Indiana Refrigerator Lines Inc supra APPENDIX B NOTICE TO EMPLOYEES POSTED BY ORDER OF THE NATIONAL LABOR RELATIONS BOARD An Agency of the United States Government WE WILL NOT unlawfully interrogate our employees concerning their membership in or activities in behalf of Local Union No 89, International Brotherhood of Teamsters, Chauffeurs, Warehousemen and Helpers of America, or any other labor organization WE WILL offer to Edgar Ray Thompson the reinstatement of his most recent lease agreement WE WILL make whole Edgar Ray Thompson for any loss of pay incurred by him as a result of our discrimination against him WE WILL NOT in any other manner interfere with, restrain , or coerce any of you in the exercise of rights guaranteed in Section 7 of the Act All of you, our employees, are free to remain , withdraw, become , or refrain from becoming , members of Local Union No 89, International Brotherhood of Teamsters, Chauffeurs, Warehousemen and Helpers of America, or any other labor organization Dated By CEMENT TRANSPORT, INC (Employer) (Representative) (Title) WE WILL notify immediately the above-named individual, if presently serving in the Armed Forces of the United States, of his right to full reinstatement upon application after discharge from the Armed Forces in accordance with the Selective Service Act and the Universal Military Training and Service Act This is an official notice and must not be defaced by anyone 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 Any questions concern- ing this notice or compliance with its provisions may be directed to the Board 's Office , Room 2407, Federal Office Building, 550 Main Street , Cincinnati , Ohio 45202, Telephone Number 513-684-3686 Copy with citationCopy as parenthetical citation