Cleghorn Folding Box Co., Inc.Download PDFNational Labor Relations Board - Board DecisionsOct 2, 1967167 N.L.R.B. 656 (N.L.R.B. 1967) Copy Citation 656 DECISIONS OF NATIONAL LABOR RELATIONS BOARD Cleghorn Folding Box Company , Inc. and United Papermakers and Paperworkers , AFL-CIO and Cleghorn Independent Employees ' Union , Party to the Contract . Case I-CA-5329 October 2, 1967 DECISION AND ORDER By CHAIRMAN MCCULLOCH AND MEMBERS FANNING AND BROWN On July 12, 1967, Trial Examiner C.W. Whit- temore issued his Decision in the above-entitled proceeding, finding that the Respondent had en- gaged in and was engaging in certain unfair labor practices within the meaning of the National Labor Relations Act, ass amended, and recommending that it cease and desist therefrom and take certain affirmative action, as set forth in the attached Trial Examiner's Decision. Thereafter, Respondent filed exceptions to the Trial Examiner's Decision and a supporting brief, and the General Counsel filed an answering brief. Pursuant to the provisions of Section 3(b) of the Act, 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, the briefs, and the entire record in the case, and hereby adopts the findings, conclusions, and recommenda- tions of the Trial Examiner, with the following modification. The Trial Examiner found that Respondent un- lawfully assisted and supported the Independent Union in violation of Section 8(a)(2). We agree. However, in so finding, we do not rely upon his finding that Respondent permitted the Independent Union to solicit dues-checkoff authorizations on company premises during working hours or to prepare ballots and conduct an election on company time , as there is no evidence that Respondent or its agents were aware of or should have known of such activities. Without passing on whether each of the other acts relied upon by the Trial Examiner would constitute, standing alone, an independent viola- tion, we are satisfied that when considered in their totality, they support the conclusion the Trial Ex- aminer reached. mended Order of the Trial Examiner and hereby or- ders that the Respondent, Cleghorn Folding Box Company, Inc., Lowell, Massachusetts, its officers, agents, successors, and assigns, shall take the ac- tion set forth in the Trial Examiner's Recom- mended Order.' Delete from par 2(b) that part which reads "to be furnished" and substitute "on forms provided " TRIAL EXAMINER'S DECISION STATEMENT OF THE CASE C.W. WHI rTEMORE, Trial Examiner - This proceeding was heard in Boston Massachusetts , on April 12 , 19, and 20, 1967, pursuant to charges filed on February 10, 1966, and February 13, 1967, by the United Papermakers and Paperworkers , AFL-CIO, herein called UPP, and a complaint issued against the Respondent on February 24, 1967. The chief questions presented are whether the Respondent . ( 1) violated Section 8(a)(2) of the Act by assisting and supporting the above -named Independent, and (2 ) violated Section 8(a)(1) by signing a contract with the Independent to discourage membership in the UPP and by interrogating and threatening employees. Upon the entire record , my observation of the witnesses, and consideration of the briefs filed by all parties represented as above noted , I make the following: FINDINGS OF FACT 1. THE BUSINESS OF THE RESPONDENT Cleghorn Folding Box Company, Inc., is a Mas- sachusetts corporation, with its principal office and place of business in Lowell, Massachusetts, where it is engaged in the manufacture, sale, and distribution of cardboard cartons. It annually receives at its Lowell plant directly from points outside the Commonwealth goods and materials valued at more than $50,000, and annually ships directly to points outside the Commonwealth goods and materials valued at more than $50,000. The complaint alleges, the answer admits, and it is here found that the Respondent is engaged in commerce within the meaning of the Act. II. THE LABOR ORGANIZATIONS INVOLVED The answer admits the complaint 's allegations, and it is here found , that the UPP and the Independent are labor organizations within the meaning of Section 2(5) of the Act. III. THE UNFAIR LABOR PRACTICES ORDER Pursuant to Section 10(c) of the National Labor Relations Act, as amended, the National Labor Relations Board adopts as its Order the Recom- A. Background Since the nub of this case is the Respondent's alleged unlawful assistance to the Independent, it would be well at the outset to provide some relevant details as to the his- tory of this "labor organization," as the parties have al- leged or admitted it to be. 167 NLRB No. 93 CLEGHORN FOLDING BOX COMPANY 657 Competent and credible evidence establishes that in name only, and the fact that the Respondent signed a con- tract with it shortly after the UPP began genuine or- ganization of the some 200 employees, is there any material difference between the Independent and a "Committee" of departmental representatives, ap- parently set up by the Company sometime in the late 1950's. Neither documentary nor oral evidence indicates precisely when or how this "committee" came into being, but in 1959 the Respondent issued to employees a pamphlet entitled "Benefits Received by Employees of the Cleghorn Folding Box Company, Inc.," which in- cluded a brief section directing that the committee should be composed of one representative from each of five de- partments, limiting "meetings" to three a year, and stating that committee members would be paid for time at such meetings. It appears reasonable to infer that the committee was actually a creature of management, since it was claimed as one of the "benefits" bestowed, and in the absence of any credible evidence of self-organization on the part of the employees themselves. There is in the record a dearth of credible evidence as to how, if at all, the committee functioned from 1959 to about June 1964, when new management, but not new ownership and control, of the Company was effected. The Company continued to be a wholly owned subsidiary of Prince Macaroni Manufac- turing Company, one Joseph Pellegrino being the chief of- ficer of each. Since 1964 the new manager has been Phil- lipe Charat. There is conflict in testimony as to a certain speech made by Pellegrino in June 1964, when he announced to assembled employees that Charat was taking over as the new manager. A former employee, Miller, on direct ex- amination claimed that Pellegrino in effect asked the em- ployees "to form a committee." On cross-examination, however, he admitted that he would not deny that Pel- legrino merely said that he understood there was a "com- mittee" in existence. Charat's testimony is supported by that of others that the company head in fact referred to the existence of the committee, not the formation of one. Under the circumstance of Miller's uncertainty, and the probabilities inherent in the situation as above described, I do not believe that the company head on this occasion asked employees to set up a committee. There is no evidence that the committee as a company "benefit," as described in the 1959 pamphlet, was ever rescinded or disavowed, and it seems reasonable to suppose that Pel- legrino , as head of the concern, was aware of its ex- istence , even if dormant. In October 1964, the department representatives began to hold meetings with Charat and at least another member of management about once a month, and minutes were kept-not by the committee, but by the personnel director of the Company. No documentary evidence' shows that there had been any such meetings before Oc- tober 1964. Without encumbering this Decision with a review of all details appearing in the series of minutes, introduced into evidence either by General Counsel or the Respondent, it seems enough to say that a wide variety of subjects were covered at the meetings from October 1964 through December 1965 from a departmental request for adjust- ment of the "inequality of wages" (to which management agreed "in steps" over a period of time), to one represen- tative's request for a vent and a mirror for the "men's room," which the Company said would be "ordered." Throughout this period, and until the latter part of December 1965, the committee never held general meetings with employees or, so far as the record shows, any meetings of the representatives except with manage- ment present. It never collected dues, had no officers, bylaws, treasury, or even a name. And no membership, unless the one employee from each department serving as its representative at meetings with management may be considered to have been a "member." It was this informal group of departmental representa- tives which, late in December 1965, suddenly assumed a name, chose officers from among themselves in the presence of management, and within a few days was given a written contract, granting it exclusive bargaining rights, by Charat, already signed by him. It was this con- tract which the Regional Director, in February 1966, found to be a bar to an election sought by the UPP, which had begun organization of the Respondent's employees shortly before the hasty signing of the contract with the Independent. B. Unlawful Assistance to the Independent The complaint alleges six separate and specific ways by which the Respondent unlawfully assisted and supported the Independent. It does not, however, claim company domination, although the historical facts, related above, might well sustain such contention. Summarized, these six factors of alleged assistance by the Respondent are, in order of time: (a) from August through December 1965, preparing the minutes of the meetings ; (b) on January 11, 1966, executing a col- lective-bargaining agreement with the Independent, and since then maintaining it, which recognizes the Inde- pendent as the exclusive bargaining representative of all employees in a unit of production and maintenance workers, although the said Independent had never been selected, orally or in writing, by a majority of such em- ployees, as their bargaining representative; (c) in Janua- ry, through its own attorney, drafting and preparing dues- checkoff authorizations for the Indpendent; (d) also in January permitting solicitation among employees of their signatures upon such authorizations, on its premises and during working hours; (e) permitting -Independent representatives to hold meetings on company time and property; and (f) in March 1966, permitting the said representatives to prepare ballots and conduct an election on its premises during working hours. Allegation (a) is fully sustained by documentary evidence and the testimony of Katherine Monson, per- sonnel director. Monson entitled such documents as "Minutes of Cleghorn Meeting," plainly an indication that these meetings with departmental representatives with company officials were considered as company busi- ness. A quick review of the minutes fails to reveal a single mention of the "committee" as a whole, but only "requests" made by an individual from some department and management's reply. Allegation (b) is admitted, in part, by the answer: the facts of a contract and exclusive recognition. The answer specifically denies that such recognition was granted at a I According to Charat he "believed" there may have been an "infor- mal" meeting between June and October, but he admitted that the "prac- tice of acquainting" themselves "with the facts," presumably by having the personnel manager prepare minutes , did not begin until October 658 DECISIONS OF NATIONAL LABOR RELATIONS BOARD time when the Independent did not represent a majority of the employees. At the hearing, however, the Respond- ent neither made any claim that the Independent did represent a majority nor offered any testimony or other evidence to rebut testimony from the Independent's own president, adduced by General Counsel, establishing that: (1) the Independent had no authorizations from any employees designating it as their bargaining agent, and (2) the Company never asked for proof of such authoriza- tions. In his brief counsel for the Respondent states: It is submitted that on the basis of the evidence the employer recognized and entered into a collective bargaining relationship with the representative of a majority of employees in an appropriate unit in 1959 and that the relationship continued without challenge by any other union until January 17, 1966. There has been no evidence submitted by General Counsel to support his allegation to the contrary. It is apparent, then, that the Respondent would have it found that the Independeht, a name adopted late in December 1965, was and is a mere continuation of the group of departmental representatives permitted by management to come to it occasionally, down through the years, with requests and that this group represented "a majority of employees" simply because over that long period of time no outside labor organization had sought to represent the employees. An error in computation remains an error, whether or not challenged for a day or a century. And I am not aware that the Board or the courts have held that majority status is attained by mere declaration of management. General Counsel amply established that the so-called committee never was a labor organization in the generally accepted sense of the term, although within the legal definition, and that it never had any "members," dues, or meetings of employees. No records were ever kept, ex- cept by management itself of its meetings with depart- mental representatives. While it was obviously impossi- ble for General Counsel to call as witnesses all present and former employees, from 1959 on down to January 11, 1966, to ascertain if any or a majority of them had ever authorized the "committee" to represent them, orally or in writing, the historical facts adduced by him plainly warrant the inference, here drawn, that at no time before signing the contract did the "independent" or the "Committee" represent an uncoerced majority of the Respondent 's employees, in any unit.2 General Manager Charat's claim that there existed a "collective bargaining agreement" with the Independent before the one executed in January 1966, is without the slightest support of documents or other credible evidence. "It was not in writing," he admitted, "but there was one." There is no doubt that there had been, and after 1964 continued to be, a unilateral agreement by the Com- pany to permit departmental representatives to meet oc- casionally with management, but such agreement plainly is no "collective bargaining" contract. As to allegation (c) there is no dispute that after the sig- ning of the contract, counsel for the Respondent prepared and drafted a dues-deduction authorization text for the "Independent." Employee Carrier, who testified that he was chosen to be "president" by other department representatives at the time they decided to adopt the name "Independent," also testified that the "company at- torney" prepared the dues-authorization text, and the only change he and others made in it was to alter the dues of 25 cents from "weekly," as in counsel's text, to "quar- terly." It appears that even the representatives objected to paying more than a dollar a year for their privilege. This authorization slip, its text in evidence, for the first time in any document for signature by an employee, refers to "membership" in the Independent. The Re- spondent offered no evidence as to how many employees, if any, ever signed this slip. The number would be im- material , in any event, as proof of majority status on January 11, 1966, since the form itself was not prepared until after the contract was signed. As to allegation (d) Carrier's testimony contains sustaining proof. He admitted that he distributed these deduction forms and picked them up in his department during working hours. As to allegation (e) competent proof that management permitted use of its premises for meetings of Independent representatives is found in the testimony of Recording Secretary Newton, who admitted that the representatives were allowed by management to use its conference room for meetings. Finally, as to allegation (f), Newton admitted that early in March 1966, the Company's office manager gave her permission to post election notices near the timeclocks. Carrier admitted that he prepared ballots for his depart- ment on paper obtained from the Company and mimeog- raphed with its permission in the company office, and that the election was conducted during working hours. This al- legation is clearly sustained by testimony of the Inde- pendent's own officers. In summary, I conclude and find that each of the specific allegations of the complaint as to the Respond- ent's unlawful assistance to and support of the Independ- ent is sustained by the preponderance of credible evidence, much of it documentary or uncontradicted. C Signing of the Contract as Unlawful Interference, Restraint , and Coercion The complaint alleges that the Respondent's execution of the January 1966 contract was not only in violation of Section 8(a)(2), but also in specific and independent viola- tion of Section 8(a)(1) of the Act. General Counsel con- tends that it was entered into "to discourage membership in or activity on behalf of the UPP, the Charging Union, thereby depriving employees of their Section 7 rights to select their own bargaining agent. The principal factor required to reach the conclusion sought by General Counsel, of course, is company knowledge of the existence of an organizing campaign by UPP before it so precipitately signed a contract with the Independent. That the UPP in fact began openly to cam- paign among the employees in mid-December 1965, is established by credible and undisputed evidence. Carrier, above identified as Tiead of the Independent when that name was adopted on December 28, 1965, admitted that he knew of the campaign and the distribution of leaflets at the plant . General Manager Charat , a most vacillating and unimpressive witness, at first flatly denied that at any time had he "become aware" of "organizational activity" by any other "union" than the "Independent." Later he admitted that he knew of "material" being "distributed" L In passing, I cannot avoid noting the obvious inconsistency in testimony elicited by the Respondent's counsel from Charat to the effect that the "practice" set up by the Company in 1959 was not followed in 1964 and thereafter, and the same counsel's argument in his brief that the recognition and dealing with the committee has been continuous, and therefore valid, since 1959 CLEGHORN FOLDING BOX COMPANY in December 1965, and that he knew "Mr. Moore," UPP representative, was distributing leaflets. Almost im- mediately thereafter, however, he changed his testimony again, and claimed that it was not until "the latter part of January" when he "was made aware" of such distribu- tion. A former foreman, Dragoli, a witness called by the Respondent shortly after Charat had testified, bluntly declared, when asked if he knew that the UPP "was try- ing to organize the plant late in December, early Janua- ry," that "If anybody didn't know it, I think they were a little on the stupid side." I do not adopt the foreman's characterization as applied to Charat, but prefer the more reasonable and accurate conclusion that the general manager knowingly gave false testimony when he denied knowledge of UPP activity in December 1965. It is concluded and found that management was well aware of the fact that UPP was organizing before signing its agreement with the Independent. While there is, of course, no direct evidence that the sudden adopting of the name Independent, the selection of officers by the committee representatives from among themselves, and the submission of proposals for a written contract were prompted by management suggestion or urging, in order to set up a barrier to the UPP organiza- tional drive, several undisputed facts warrant that in- ference. Such facts include: (1) none of the minutes in evidence show that either the "committee" or the "Inde- pendent" ever asked for a contract; (2) Secretary New- ton admitted that the "committee" members selected of- ficers for the Independent in the presence of company of- ficials; (3) Charat admitted that the "skeleton" of the contract was drafted by counsel for the Respondent, and the "final contract" was drafted by Mrs. Monson, the per- sonnel director; (4) Carrier, head of the Independent, said that the contract "in final form" was handed to him for his signature by Charat, after the general manager had already signed it; and (5) management never asked for proof of majority status. And since there was no "mem- bership" meeting at least until April 1966, it is plain that the contract, drafted and signed by management, was never submitted to employees generally for their ap- proval. I adopt the succinct summary of counsel for the UPP in his brief: Obviously the Independent is an empty shell, a con- tinuation of the Employees' Committee under another name designed for the sole (and thus far suc- cessful) purpose of enabling the Employer to defeat UPP's representation petition by claiming a contract. The preponderance of credible evidence sustains that allegation of the complaint noted at the beginning of this subsection. D. Other Interference, Restraint, and Coercion Despite that foreman's denial, I credit the testimony of employee Garcia to the effect that Foreman Dragoli in early January 1966 asked him if he "was working for the outside union" and warned him that if the UPP came in the employees would "have to work harder." That Dragoli knew of the organizational efforts has been established heretofore by his own testimony. It is concluded and found that such interrogation and threat constituted independent interference, restraint, and coercion when considered in the light of other unfair labor practices found. 659 IV. THE EFFECT OF THE UNFAIR LABOR PRACTICES UPON COMMERCE The activities of Respondent set forth in section III, above, occurring in connection with its 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 thereof. Upon the basis of the foregoing findings of fact and upon the entire record in the case, I make the following: CONCLUSIONS OF LAW 1. UPP and Independent are labor organizations within the meaning of Section 2(5) of the Act. 2. By assisting , contributing support to , and interfering with the administration of the Independent , the Respond- ent has engaged in and is engaging in unfair labor prac- tices within the meaning of Section 8(a)(2) and ( 1) of the Act. 3. By interfering with, restraining , and coercing em- ployees in their exercise of rights guaranteed by Section 7 the Respondent has engaged in and is engaging in unfair labor practices within the meaning of Section 8(a)(1) of the Act. 4. The aforesaid unfair labor practices affect com- merce within the meaning of Section 2(6) and (7) of the Act. THE REMEDY Having found that the Respondent has engaged in un- fair labor practices I shall issue a Recommended Order requiring the Respondent to cease and desist therefrom and take certain affirmative action designed to effectuate the policies of the Act. RECOMMENDED ORDER Upon the basis of the above findings of fact and conclu- sions of law, and upon the entire record in the case, and pursuant to Section 10(c) of the Act, it is recommended that the Respondent , Cleghorn Folding Box Company, Inc., its officers , agents, successors , and assigns, shall: 1. Cease and desist from. (a) Assisting , contributing support to, or interfering with the administration of Cleghorn Independent Em- ployees' Union or any other labor organization of its em- ployees. (b) Recognizing the Cleghorn Independent Em- ployees' Union or any successor thereto as the represen- tative of any of its employees for the purpose of dealing with the Respondent concerning grievances, labor disputes, wages , rates of pay, hours of employment, or other conditions of employment , unless and until said or- ganization has been duly certified by the Board as the ex- clusive representative of such employees. (c) Giving effect to any and all contracts or agree- ments, supplements thereto or modifications thereof, or any superceding contracts with the Cleghorn Indepen- dent Employees ' Union , or any successor thereto, unless and until said organization has been duly certified by the Board as the exclusive representative of such employees. (d) Interrogating its employees with respect to their membership in, or activities and desires on behalf of, United Papermakers and Paperworkers , AFL-CIO, or 310-541 0 - 70 - 43 660 DECISIONS OF NATIONAL LABOR RELATIONS BOARD any other labor organization or threatening them with reprisals therefor. (e) In any other manner interfering with, restraining, or coercing its employees in the exercise of their right to self-organization, to form labor organizations, to join or assist United Papermakers and Paperworkers, AFL-CIO, or any other labor organization, to bargain collectively through representatives of their own choos- ing and to engage in other concerted activities for the pur- pose of collective bargaining or other mutual aid or pro- tection as guaranteed by Section 7 of the Act, or to refrain from any or all such activities except to the extent that such right may be affected by an agreement authorized by Section 8(a)(3) of the Act, as modified by the Labor- Management Reporting and Disclosure Act of 1959. 2. Take the following affirmative action which will ef- fectuate the policies of the Act: (a) Withdraw and withhold all recognition from the Cleghorn Independent Employees' Union or any succes- sor thereto as the representative of any of its employees for the purpose of dealing with the Respondent concern- ing grievances, labor disputes, wages, rates of pay, hours of employment, or other conditions of employment, un- less and until the said organization has been duly certified by the Board as the exclusive representative of such em- ployees. (b) Post at its Lowell, Massachusetts, plant copies of the attached notice marked "Appendix."3 Copies of said notice, to be furnished by the Regional Director for Re- gion 1 , after being duly signed by the Respondent's representative, shall be posted by Respondent im- mediately 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 Respondent to insure that said notices are not altered, defaced, or covered by any other material. (c) Notify the Regional Director for Region 1, in writ- ing, within 20 days from the receipt of this Decision, what steps have been taken to comply herewith.4 APPENDIX NOTICE TO ALL EMPLOYEES Pursuant to the Recommended Order of a Trial Ex- aminer of the National Labor Relations Board and in order to effectuate the policies of the National Labor Relations Act, as amended, we hereby notify our em- ployees that: WE WILL NOT assist, contribute support to, or in- terfere with the administration of the Cleghorn Inde- pendent Employees' Union or any other labor or- ganization of our employees. WE WILL NOT recognize the Cleghorn Indepen- dent Employees' Union, or any successor thereto, as the representative of any of our employees for the purpose of dealing with us concerning grievances, labor disputes, wages, rates of pay, hours of employ- ment, or other conditions of employment, unless or until the said organization has been duly certified by the Board as the exclusive representative of such em- ployees. WE WILL NOT give effect to any and all contracts and agreements, supplements thereto or modifica- tions thereof, or any superseding contracts with the Cleghorn Independent Employees' Union or any successor thereto, unless and until the said organiza- tion has been duly certified by the Board as the ex- clusive representative of our employees. WE WILL withdraw and withhold all recognition from the Cleghorn Independent Employees' Union, or any successor thereto, as the representative of any of our employees for the purpose of dealing with us concerning grievances, labor disputes, wages, rates of pay, hours of employment, or other conditions of employment, unless and until said organization has been duly certified by the Board as the exclusive representative of such employees. WE WILL NOT interrogate our employees with respect to their membership in, or activities and desires on behalf of, United Papermakers and Paper- workers, AFL-CIO, or any other labor organization, or threaten them with reprisals because of such mem- bership, activities, and desires. WE WILL NOT in any manner interfere with, restrain, or coerce our employees in the exercise of their right to self-organization, to form labor or- ganizations, to join or assist United Papermakers and Paperworkers, AFL-CIO, or any other labor or- ganization, to bargain collectively through represen- tatives of their own choosing and to engage in other concerted activities for the purpose of collective bar- gaining or other mutual aid or protection as guaran- teed by Section 7 of the Act, or to refrain from any such activities except to the extent that such right may be affected by an agreement authorized by Sec- tion 8(a)(3) of the Act, as modified by the Labor- Management Reporting and Disclosure Act of 1959. Dated By CLEGHORN FOLDING Box COMPANY, INC (Employer) (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, 20th Floor, John F. Kennedy Federal Building, Cambridge and New Sudbury Streets, Boston, Massachusetts 02203, Telephone 223-3300. 9 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 Trial 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 Ap- peals Enforcing an Order" shall be substituted for the words "a Decision and Order " 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 Re- spondent has taken to comply herewith " Copy with citationCopy as parenthetical citation