Consolidated Supply of Madison, Inc.Download PDFNational Labor Relations Board - Board DecisionsAug 24, 1971192 N.L.R.B. 982 (N.L.R.B. 1971) Copy Citation 982 DECISIONS OF NATIONAL' LABOR RELATIONS BOARD Consolidated Supply Co., Inc. and its successor Consol- idated Supply of Madison , Inc. andDrivers, Sales- men, Warehousemen, Milk Processors , Cannery, Dairy Employees and Helpers Union Local No. 695, affiliated with the International Brotherhood of Teamsters, Chauffeurs, Warehousemen and Help- ers of America. Case 30-CA-1428 August 24, 1971 DECISION AND ORDER BY- CHAIRMAN MILLER AND MEMBERS FANNING, AND KENNEDY On April 7, 1971 , Trial Examiner Milton Janus issued his Decision in theabove-entitled proceeding, finding that the Respondent , had engaged in , and was engaging in certain unfair labor practices and recommending, that it cease and desist therefrom, and take certain affirmative action , as set .forth in the attached Trial Examiner's Decision . He' further found that Respondent had not engaged in certain other unfair labor practices alleged in the complaint and recommended", that such allegations be dis- ri issed, Thereafter, the Respondent ; and 0eneral Counsel filed exceptions to the Decision and sup- porting briefs. Pursuant to the provisions of Section 3(b) of the National Labor Relations Act, as amended, the National Labor Relations Board has delegated its powers in connection with this case to a three- member panel. The Board has reviewed the rulings of the Trial Examiner made at the hearing and finds that no prejudicial error was committed . The rulings are hereby affirmed . The Board has considered the Trial Examiner's Decision, the exceptions and briefs, and the entire record in the case, and hereby adopts the findings , conclusions , and recommendations of the Trial Examiner.' 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 Trial Examiner and hereby orders that the Respondent, Consolidated Supply Co., Inc. and its successor Consolidated Supply of Madison, Inc., Madison, Wisconsin, their officers, agents, successors, and assigns, shall take the action set forth in the Trial Examiner's recommended Order. i We agree with the Trial Examiner that Respondent's discharging employee Kirk shortly after the Union made its demand for recognition was for purposes of "chilling" the umon activities of its employees and, therefore, unlawful. In reaching our result, we conclude, at some variance from the position of the Trial Examiner, that Wood, who discharged Kirk, had reasonable grounds for believing that Kirk was an active supporter of the Union. We predicate our result here on the conversation between employee Schneider and Wood shortly before Kirk 's discharge. At, that time, in answer to Wood's accusation , Schneider`denied being the instigator of the Union, stated all the employees were in the unit, and stated that he too had signed a card . At that point wood, asked where he could find Kirk and on being told proceeded to seek him out and discharge him. TRIAL EXAMINER'S DECISION , STATEMENT OF THE CASE MILTON JANUS , Trial Examiner : This - case was heard at Madison , Wisconsin, on February -9-11, , 1971, upon a complaint ,, issued December 29, 1970, pursuant to. the original charge filed on November,6, ,1970, and amended charges- filed on November 16, and December ' 16, 070. The complaint alleges violations of Section 8 (a)(1), (3), and (5) of the National Labor 'Relations Act, as amended. Upon the entire record,' including my observation of the demean or of the witnesses , and after due consideration of the briefs filed by the General Counsel and the Respon- dents, I make the following: ` FiNDINGs of FACT L THE BUSINESS OF THE RESPONDENT' Consolidated Supply'Co., Inc.,-a Wisconsin•corporation, the predecessor Respondent here , wai,^engaged in the`sale and distribution in Madison, Wisconsin, of paper products, glassware , other supplies and equipment to taverns, restaurants, and other institutional users in and around that city. In its last fiscal year its gross sales exceeded $1 million and it purchased and received goods and material from points outside the State of Wisconsin, valued in excess of $50,000. Its stockholders and officers were Del Wood, Matt Rideout, and Mel Anderson. On November 19, 1970, they agreed to sell all the corporation's assets to Joseph Beck, Jr., and Joseph Ogden who then became stockholders in a newly formed corporation, Consolidated Supply of Madi- son, Inc., the successor Respondent here. The sale became effective January 1, 1971, at which time the successor took control of the going business previously operated by the predecessor at the same location, in the same manner, and with most of the same employees. The premises at which the business is conducted is owned individually by Del Wood, and has been leased to Beck and Ogden for a specified term.. Wood is no longer associated with the operations of the successor corporation, but Rideout and Anderson, formerly officers and minority stockholders of the predecessor, continue to be employed in supervisory capacities, by the successor, but are neither officers nor stockholders therein. At the hearing I granted the motion of the General Counsel to amend the complaint to strike the names of Beck and Ogden as individual Respondents, since they are now officers and agents of the successor corporation. I find that both Respondents, Consolidated Supply Co., Inc., and Consolidated Supply of Madison, Inc., are 2 I hereby grant the unopposed motion of the Respondent to correct the transcript in certain respects. 192 NLRB No. 134 CONSOLIDATED SUPPLY CO., INC. employers engaged in commerce within the meaning of the Act I also find that the latter corporation is the successor to the former corporation. II. THE LABOR ORGANIZATION INVOLVED The Charging Union is a labor organization within the meaning of the Act. III. THE UNFAIR LABOR PRACTICES A. Sequence of Events The Union began an organizing campaign among the Company's warehousemen and drivers which resulted in six of them signing authorization cards-four on Novem- ber 3 (Kirk, Sornson, Thompson, and Canon), one on November 4 (Schneider), and one on November 9 (Meyer). On Thursday, November. 5, the Union requested recogni- tion of the Company, first orally and then in writing, which the Company refused to grant .2 The unit requested was one of all regular full-time, truckdrivers and warehouse- men. Within an hour of the. Union's oral request for recognition, made by two union representatives of Del Wood, president of, the predecessor Company and its majority stockholder, Wood discharged Robert Kirk, one of the drivers who had signed an authorization card. On the following Monday, November 9, the six employees who had signed cards went on strike. The strike lasted until January 6, 191 when the Union requested the successor Company to reinstate the six strikers to their former jobs. The Company immediately, offered reinstatement to all the strikers but Kirk, advising him that it was its understand- ing he had been discharged by the predecessor, and that he had engaged in serious misconduct during the strike. Sornson had found other employment during the strike, and did not choose to return. The other four, Thompson, Canon, Meyer, and Schneider, did return and were still employed by the Company at the time of the hearing. On January 11, the Union obtained new authorization cards from Kirk, Meyer, Canon, Thompson, and Schneid- er, and again- requested the Company to recognize it as the bargaining representative for a unit of warehousemen and drivers. On January 13, the Company's attorney advised the Union that the Company ,doubted that it represented an uncoerced majority of its employees in an appropriate unit, and suggested that it file another petition with the Board for an election. E. The Issues The issues presented by the complaint, answer, and testimony are: 1. Whether the Company unlawfully interrogated certain employees, promised them, benefits, and threatened them, in violation of Section 8(a)(1). 2. Whether it discriminatorily discharged Robert Kirk. 3. Whether the unit requested by the Union is appro- priate, and who should be included in it. 2 On November 6, the Union filed a petition for an election in' the requested unit. The Regional Director dismissed the petition on December 29, the date the complaint in this proceeding was issued. 3 The parties agree that these salesmen, as well as the office clerical 983 4. Whether a bargaining order is warranted under the circumstances. 5. Whether Kirk engaged in misconduct during the strike, such as to deny him reinstatement, and whether there was such misconduct by strikers during the strike as to forfeit whatever right the Union might have to a bargaining order. - C. The Company's Operations The Company supplies, bars, restaurants, and similar users with a wide variety of equipment and supplies, ranging from furniture and food preparation equipment to disposable products such as paper and janitorial items. All its operations are conducted from a single building, most of which is devoted to the storage of its inventory. Goods are received at,its truck docks and are stacked in the warehouse area. In the same building is an office area and a store fronting on a public street with direct access to the warehouse. The store caters both to the general public and to the barn or restaurants which- may prefer to make their own pickups rather than have-them delivered. Warehouse sales derive either from telephone orders or from orders taken, by outside salesmen who work on a commission basis 3 The orders are transferred to forms which indicate what part of the warehouse the specific items are to be found. The warehousemen use these forms to pick their orders in the warehouse. They then load their trucks and make daily deliveries, either on city routes in Madison, or on country routes in the surrounding area. None of the routes requires a driver, to, -stay away from home overnight. As of, November 5,_ the Company employed six individu- als as warehousemen-drivers, whose duties were primarily to pick orders in the warehouse and to deliver them on their route. These were James Canon, Erwin Thompson, Harry Meyer, Tommy Anderson, Robert Kirk, and Jerry Wood, who had been hired just the day before. The first day ^ of the strike, Jim Wood was hired, and in December Tommy Anderson was inducted into the Armed porces.4 Jerry Wood was retained after the end of the strike but Jim Wood was let go at that time.- Three individuals were employed primarily in the warehouse, Joe Schneider, whom Respondent claims to be a foreman, Willard Sornson, who also did maintenance and repair work on the Company's trucks, and Floyd Russell, who also did janitorial work. Three individuals were employed exclusively in the store, 'Wanda Sammons, Albert Helmstetter, who also installed and repaired equipment sold to the Company's customers, and Ben Yamano. The goods .in the store are obtained from the warehouse, and .the store clerks go into the warehouse with some frequency in order to stock their shelves, or to pick up special items which are not stocked in the store. employees, are to be excluded from any unit found to be appropriate. Jerry and Jim Wood are nephews of Del wood, the president of the predecessor company, and Tommy Anderson is the son of Mel Anderson, an officer and stockholder in the predecessor company. 984 DECISIONS OF NATIONAL LABOR RELATIONS BOARD D. The 8(a)(1) Allegations if made it was nevertheless coercive. Neither Anderson's nor Schneider's testimony is wholly satisfactory, and there is little to go on in choosing between their respective versions. Under all the circumstances, what disposes me to find Schneider's story more credible is that given Ander- son's intoxication it would be more likely that he would say more about the troubling advent of the Union than he was willing to testify to at the hearing, if indeed he could remember the entire conversation. I therefore find that Anderson told Schneider that the plant would be closed before the Union could get in. I also find that Anderson's asking Schneider why he had done this to them (going to the Union) was more plaintive than coercive, since Schneider had already disclosed to Wood that he had signed a card. 3. On November 7, there was a conversation between Anderson and Harry Meyer, a driver. Anderson admitted that he asked Meyer if he had signed a 'union card, and that Meyer had told him he had not. Anderson then asked him who had signed and Meyer said he didn't,know. Such queries by a supervisor of an employee, even' if asked in a friendly manner are nevertheless coercive; since they tread into an area which is no concern of the"employer 6 4. Meyer testified that on November ' 7, Del Wood came up to him and said that anyone who didn't go out on strike would get a raise, and that Kirk was causing him some trouble and he wanted Meyer to be a witness. Meyer said he walked away without saying anything. ' Wood testified, however, that his conversation with Meyer consisted of Meyer telling him that he wasn't part of any union movement. Wood flatly denied that he had said to Meyer either that anyone who didn't go out on strike would get a raise, or that Kirk was causing him trouble and he wanted Meyer to b 6a witness. ' There, are some' difficulties with Meyer's story. First, there is' no 'evidence that Wood knew on Saturday, November 7, that his warehousemen were planning a strike. Although a strike vote had been taken the evening before, the employees had all come to work Saturday morning and no one testified that Wood had been told of their decision. Second, there is also no evidence that Wood knew that Saturday morning that he would ,be having trouble with Kirk. The charge alleging that Kirk had been discriminatorily discharged had been filed on the 6th and was not served on the Company until the following Monday, November 9, the first day of the strike. On the other hand, even assuming that Wood had not learned from one of his employees that a strike and a Board proceeding were pending, he could have suspected that something was coming up-because of the Union's request for recognition on November 5, and his discharge of Kirk which had followed immediately thereafter. Taking all these considerations into account and credit- ing Wood's testimony that Meyer had told him on Saturday morning that he wasn't part of the union movement, I believe, and so find, that Wood, suspecting that something was brewing, attempted to ensure that at least some of his warehousemen would disregard the strike s Butler Aviation Company, 183 NLRB No. 43, and J. J. Newberry, 183 NLRB No. 69, fn. 2. - The complaint ; alleged a number of incidents of interrogation, threats, , and promises, made to the ware- housemen or drivers. These occurred between November 5, the date of the Union's request for recognition, and November 9, the first day of the strike, inclusive . In some of these incidents, Schneider, one of the warehousemen, was the recipient of the alleged threat or interrogation, and Respondent , admitting at least some interrogation , defends on the ground that Schneider was himself a supervisor. My reasons for finding to the contrary will be given later, so that the following discussion is based on the assumption that Schneider's nonsupervisory status has been estab- lished. 1. Schneider testified that the morning of November 5, Del Wood approached him in the warehouse , asked him if he was trying to get the Union in, and accused him of being the instigator . Schneider denied that he was the one who, had brought the Union in, claiming that all the employees were acting as a unit. Wood then asked Schneider where Kirk was, and a few minutes later Kirk was discharged. Wood readily admitted that, shortly after the union representatives had asked him to recognize the Union, he had asked Schneider if, he was trying to start another union and that Schneider told him he had signed a card.5 Whether or not Wood specifically asked Schneider if he was the instigator of the Union's campaign, the effect of his confronting Schneider as to whether he was trying to start another union campaign in the warehouse is tanta- mount to an accusation that he was again active in trying to bring the Union in. I find that such an accusation, even though it was posed as a question, is an intrusion into an employee's union sentiments which he is entitled not to reveal , and is of the type which can reasonably be said to be coercive, of the employees' Section 7 rights. 2. Schneider testified that Anderson approached him the afternoon of November 5, somewhat intoxicated, and said that he (Schneider) was his hero, that he would never get the Union in, and that they would close the doors before they would have the Union in. Anderson denied that he had said to Schneider that he would never get the Union in, or that they would close the doors before that happened. According to Anderson, he had asked Schneider in their only conversation (which I find occurred on November 5), why Schneider had done this to them , and that Schneider answered that this was the only way to straighten the men out, that he was tired of doing all the work himself. If Anderson was intoxicated when he spoke to Schneider (Anderson was not asked about his condition), he probably had no clear recollection of everything he had said to him. That Anderson was only a minority shareholder and' that the business was on the verge of being sold , as Respondent points out , does not necessarily establish that Anderson could not or would not have said that they would close, the doors before the Union got in. The threat may have been an empty one, and Schneider may have known it was, but 5 In 1964, a Board election had been held in a unit of the Company's warehousemen-drivers, which the Union lost by'a tie vote. CONSOLIDATED SUPPLY CO., INC. 985 call by promising Meyer, who had not yet revealed his prounion sympathies, a raise if he continued to work. 5. The first day of the strike, as Schneider and Canon were picketing, one of the company trucks drove out to make some deliveries . In the truck were Jerry Wood, Del Wood's nephew, and Tommy Anderson, Mel Anderson's son, both , of them about 18 years of age. As the truck left, a car with two union agents proceeded to follow . Del Wood was concerned over the safety of the two young men, and when he saw that the truck was being followed, he left the warehouse and spoke to Schneider and Canon. According to Wood, he said to them that they would be sorry in later years if any harm came to those boys , and then he said to Canon that he was lucky to have a job because his eyesight was bad . Schneider testified that Wood had said to Canon only that he was blind, could never see and that he was fired. He also said that Wood 's remark about being sorry if anything happened to the occupants of the truck occurred in another conversation later that day. Wood denied that he had told Canon he was fired, and Mel Anderson corroborated his story. Canon, at whom the crucial remark about being fired was directed , was called as a witness by the General Counsel but was immediately released by him without being questioned . I infer therefrom that the General Counsel was unwilling to vouch for Canon's testimony, even though there is no indication that Canon was in any way obligated to Wood or to the Company so as to suggest that his testimony would be other than truthful. I credit Wood on this matter and find that he did not tell Canon he was fired. I find not to be coercive or intimidating the remarks admitted by Wood, that Schneid- er and Canon would later be sorry if any harm was done to the young men, or that Canon was lucky to have a job because of his poor eyesight. E. The 8(a)(3) Allegation Kirk was employed in mid-August as a warehouseman- driver and was discharged less than 3 months later, on November 5, 1970. He had been hired at $100 per week, had been told then that he would get a $10 increase after 60 days, and had received it shortly before his termination. Discharges were rare-there had been only- two in the past 10 years or so, both for stealing . The testimony of company witnesses Anderson and Rideout, with reference to Kirk, was intended ) to show that Kirk was not a wholly satisfactory employee that he had had some problems with customers over eliveries, and that he had not been progressing satisfacto y in learning his job. Some of Kirk's deficiencies had been brought to the attention of Del Wood, by Ridedut and Anderson. Rideout in fact testified that he had made up his mind to discharge Kirk late in October and had checked with both Anderson and Wood who had both told him to go ahead. Wood also testified that based on Rideout's decision he had hired his nephew, Jerry Wood, to start work as a driver the following week . Rideout, however, had felt sorry for Kirk who had just returned from his' wedding trip a week or so earlier, and had not discharged him on October 30, as he said he had intended to. According to Rideout , Wood had asked him the following week if he had discharged Kirk yet, and Rideout had said he wanted to_ give him another week. In any event, the decision , supposedly initiated by Rideout and agreed to by Wood and Anderson , to discharge Kirk at the end of October was never made known to Kirk. He was never warned that his job was in jeopardy , nor were his shortcomings ever discussed with him. As noted earlier, he had been given a $10 weekly increase just about the time that Rideout said he had decided to discharge him. Rideout sought to vitiate the effect-of the raise by claiming that it was automatic, having been promised to Kirk when he was hired. It seems to me, however, that an employer who considers an employee so unsatisfactory as to be close to discharge would not give him a raise the same week without at least calling his deficiencies to his attention and extracting a commitment for improvement . Rideout had not done so. It is true that Kirk had made mistakes and may on occasion have ruffled the feelings of customers, but other drivers with much more experience also made mistakes, which the Company took in its stride. None of these had ever before been considered to be grounds for discharge. Despite the Company's efforts, through the testimony of its officers , to emphasize Kirk's shortcomings as a warehouseman and a driver, the immediate and final cause for discharging Kirk, according to Wood , was an incident occurring the morning of November 5, involving Kirk and Meyer. What in fact occurred , the reaction of the participants to the incident and how, if at all, Wood was informed about it, are all matters of some uncertainty. Wood testified that Meyer told him - that morning that he had just had an altercation with Kirk in the warehouse because he (Meyer) had earlier told Wood that Kirk had made a mistake in delivering too many "play pokers" to the Wings Inn, a personal customer of Wood. It is clear that the altercation did not result in any blows being struck. At most, it was a threat that Kirk would beat Meyer up for informing on him . ,Meyer and Kirk both testified about this incident and, in evaluating Meyer's version, I have considered that he would be somewhat interested in playing down the incident, since he had joined the strike over Kirk's discharge , had signed a union card , and was thus allied with Kirk in supporting , the Union's and the General Counsel's case. Meyer testified that Kirk and he had an argument over how many cases of candles Kirk should have delivered to a customer, and that Kirk had told him to mind his own business and keep his mouth shut. Meyer was somewhat uncertain whether Kirk had said that he would hit him in the head, but seemed to consider Kirk's admonition to mind his own business as being in some way a - threat. Kirk's testimony as to the confrontation with Meyer on November 5 is that they had had an argument - over the candles , and that he had told Meyer to mind his own business . He denied that he had threatened to beat Meyer up. It is clear that no blow was, struck and no- hand was raised in anger . At most, there were some angry words uttered by Kirk. Meyer is older, taller, and heavier than 986 DECISIONS OF NATIONAL LABOR RELATIONS BOARD Kirk, and his appearance leads me to believe that-he would not be intimidated by rough talk.? Even more crucial than the nature of the altercation to Respondent's claim that Wood discharged Kirk because of it is 'the. question whether Wood had even heard about the matter , when he decided on the,discharge. Just about the time of the encounter between Kirk and Meyer in the warehouse, Wood was confronted with, a, demand for recognition from two union representatives in the store area. -After they left, ` Wood told Rideout about the demands He then went into the warehouse where he asked Schneider if he was trying to get the Union-in, and in effect accused him of being the instigator. According to Schneid- er, Wood then asked 'him where Kirk was. Sometime during these crowded moments, Wood testified that Meyer had come' to ^ tell him about his confrontation with Kirk, and Wood immediately decided that he did not want that kind of problem in the warehouse and sought -out Kirk to discharge him. Meyer testified that he told Mel Anderson about the Kirk incident,the morning it happened, but it is undisputed that Anderson did not tell Wood about it Wood says that it,was Meyer who told him, but Meyer said that he had not. Meyer gave a ,statement to Respondent's attorney during his investigation of- -this case '(Resp. Exh. 11) in which he said he had told Mel Anderson about the Kirk incident; and believed that he had also told Del Wood' about it. His testimony under oath, however; is that he did not tell Wood. Meyer's recollection was poor in some instances, 'he seemed somewhat confused about matters he testified to, but it did not appear to me that he was being deliberately, evasive in his testimony.' He may have felt some identification of interest with Kirk because of their mutual support. of the Union during the strike, but his interest in ' the - outcome of the proceeding is certainly exceeded by that of Wood's, whose testimony may also therefore be colored by self-interest. I believe under all the circumstances that Meyer's testimony that he did not tell Wood about his argument with Kirk ' is to , bC credited. Wood- had more important matters on his mind that morning than a flareup between two drivers. He had been suddenly and unexpectely confronted with a demand for recognition,, had talked to Rideout about it, had then sought out Schneider to interrogate him, and had asked him where Kirk was. When he found Kirk he told him to go get his check from hideout without giving him any reason for discharging him. Add to all this the fact that Rideout never mentioned to Kirk the very reason which Wood insists prompted him to discharge Kirk, and it is evident to me that Wood learned of the argument between Kirk, and Meyer only- after Kirk' had been let go. = What then -induced Wood to fire Kirk? Wood did not, it is true, know that. Kirk was involved with the Union, but he knew than some of the' warehousemen were. In his surprise at this wholly unexpected turn of events (he was then in serious negotiations for the sale of the business and ? Cf. Star-News Newspapers, Inc., 183 NLRB No.-98,;andJohn,F. Cuneo Co., 160 NLRB 670, where the Board took into account, in finding certain discharges to have been for cause, that they were occasioned by threats made by male against female employees. 8 If he also told Rideout then that he was going to fire Kirk, he did not the Union's demands - could have complicated those negotiations) he would expect, that- the quick discharge of any employee just after the Union's appearance on the scene would have a chilling effect on the others.-Ifind, on the basis of the foregoing, that Wood -selected -Kirk for discharge, not because he knew of the Meyer incident or even because- of Kirk's past performance as an employee, but only to show the other employees that they also were vulnerable, and that the appearance of the Union` might have unexpected consequences. I find that the Company's discharge of Kirk violated Section 8(a)(3). _ ' - E. The 8(a)(S)" Allegations The complaint alleged that the Company has refused` to recognize and bargain with the Union, on and' after November 5, 1970, even though the Union has been designated by a majority of the employees in anappropri- ate ,unit of truckdrivers and warehousemen, as 'their exclusive collective-bargaining representative. The Compa- ny's answer to the complaint denies that the designated unit is appropriate, and the Company's testimony and brief seek to establish that the three store, clerks should, be included with- the drivers and warehousemen because such a combined unit is homogeneous in terms of'functions and interests. Before deciding between these "opposed views of what constitues an appropriate unit atthe Company's'--establish- ment, it is necessary to settle other disputes -between 'the parties as to whether certain individuals are to be included in a unit consisting only of warehousemen-drivers. The placement of the ' following individuals is in dispute: 1. Floyd Russell: Although the General Counsel- stipu lated at the hearing that Russell was properly included in'a warehouseman-driver unit , he argues in his brief that Russell should nevertheless be' excluded as a sporadic or casual employee. Russell is 68 years old, and an annuitant from his previous full-time employment ., He earns ' $140' per month for his work as a warehouseman and' jsniior. He works part-time on a regular basis, apparently limited in hours and pay so as not to decrease his annuity. I find that his work is neither sporadic nor casual but that of a regular part-time employee. The'fact'that he limits his working time and earnings to protect his annuity is no longer a ground for excluding him from the units 2. Tommy Anderson: He is`ihe son of Mel Anderson, an officer' in the ' predecessor company and" the owner of ;10 percent of its stock. Mel Anderson is still employed by the successor company but is no longer , an officer or stockholder in it. His son Tommy, age 18, was employed as of November 5 as a full-time warehouseman driver., He worked the , regular ,schedule of the other drivers, was paid a wage comparable to theirs,' and was given no special privileges. The General Counsel contends that lie should nevertheless be excluded-as the relative of, a principal owner. Since the General Counsel does not, however, seek to exclude Jerry Wood, the nephew of Del Wood, and thus tell him it was because of the argument with Meyer. When Kirk went to see Rideout in his office to be discharged, Rideout first went out of the room and, after returning, told Kirk that he was being discharged because he had not been learning his job satisfactorily. 9 Holiday Inns of America. Inc., 176 NLRB No. 1aa. CONSOLIDATED SUPPLY CO., INC. 987 also a relative of a principal owner, the General Counsel's contention must be-based on Section 2(3), of the Act. This provides that the term "employee" shall not include any individual employed by his parent. The legal principle applicable to employment by a corporation of .a child of one of its stockholders is that children of individuals who have substantial stock interests in closely held corporations are to be excluded from -the bargaining unit.ic The question thus remaining is whether Mel 'Anderson's 10- "percent stockholding in the predecessor company (a closely held corporation) is a substantial interest-so that his son should be excluded. I do not need to decide here how much less than 50 percent of a stockholding Would be substantial, since I am-satisfied that with the two other stockholders in the predecessor company owning 90 percent of the stock, Mel Anderson's interests in the company were not substantial. I therefore include Tommy Anderson in the appropriate unit. The supervisory status of Schneider, the employee with the 'longest service in the warehouse, is in dispute. The General Counsel argues that `he should be included in the unit while the-Company would exclude him. Kirk, Canon, Thompson, Meyer,, and Jerry Wood, Who had just started on November 4, were primarily drivers spending from 60 to 80 percent of their time making deliveries by truck; The rest of their time was spent in,the warehouse, packing the orders for deliveries on their routes, and settling up for their collections after their return at the end of the day. Russell, Sornson, and Schneider worked primarily in the warehouse, receiving and unloading goods, storing them in designated areas of the warehouse and also helping the drivers in preparing their orders for delivery. Schneider did most of the receiving of the goods since, as noted above, Russell was not a full-time employee and also did janitorial work while Sornson was also engaged in repair and maintenance work on the Company's vehicles. If a driver was absent, Schneider would take over his delivery route. -Mel Anderson was in charge of all receiving, storing, and shipping functions. Schneider assisted him by relaying instructions and by advising and aiding the warehousemen and drivers in their- work. Most of Schneider's time was spent in manual work, no different in its routine nature than that of the other warehouse employees. Anderson had an office in the office area, which was itself located in'the warehouse, and was thus immediately available whenever there was need to, consult him. Schneider testified that Anderson usually contacted the warehousemen personally to give - them directions but would sometimes relay them through him. Schneider cannot hire or fire employees, authorize them to take time off, or direct them to- Work overtime. He is paid $10 more per week than the next highest warehouse employee. He testified that Wood had told him a year or two ago that he was the warehouse foreman, but his duties were not changed then' nor was any announcement of any change in status made to the other employees. One of the warehouse- 10 Foam Rubber City #2,of Florida, Inc., d/b/a Scandia 167 NLRB 623. n Benson Wholesale Company, Inc., 164 NLRB 536, 548. men, Thompson, testified-that he had never been told to consider Schneider as his foreman or supervisor. I find that Schneider does not direct any employees other than in- a routine manner, not, requiring the use of independent judgment. He possesses no other indicia of supervisory authority, and I -find that before and after November; 5, he was a nonsupervisory employee, properly included in,any appropriate bargaining unit." ,As -of November 5, the date of its demand for recognition, the Union had five valid authorization cards, signed by, Canon, Kirk, Thompson, Sornson, and Schneid- er. The next day, it obtained a card from Meyer. The total complement of a warehousemen-driver's unit as of either November ' 5 or' 6 was nine, (the six named above, plus Russell, Jerry Wood, and Tommy Anderson) so that the Union had a clear majority in such a unit. The Company, however, contends that the unit requested is inappropriate because the three store clerks are excluded, and that the Union's request for recognition^must fail because it did not have a majority in the larger unit. The Company's business is conducted from a single large building, divided into a store area fronting on the street, and two warehouse areas, one at the side of the store and the other to its rear, separated from it by the office area. There is a direct connection with the side, or old, warehouse and routes through or at the side of the office area which lead directly into the back warehouse. The store is stocked' with goods obtained from the warehouse areas, and any item handled by the Company can be ordered either through the store or through the warehouse. Presumably, the customer's decision whether to come directly to the store, to phone in an order, or to order through a commission salesman will depend on whether he wants his purchase immediately and whether it is too large to carry away with him. There was testimony that a store clerk will on occasion use his 'personal auto to make a delivery of goods ordered through the store, on his lunch hour or after work on his way- home, but this seems to be done as a matter of courtesy by the clerk`for the customer rather than as a required part of his job. - The three store clerks are Ben Yamano, Albert Helmstet- ter, and Wanda Sammons. They are paid a weekly wage, as are all but one of the warehousemen who is paid a comparable hourly rate. The female clerk is paid-$95 per week, one of the male clerks gets $440 and the other $150 per week. The warehousemen-drivers start at $100 per week and after 60 days are given a $10 -raise . Those with longer service are paid $115, while Schneider receives $125 per week. Fringe benefits such as sick leave;vacations and group insurance are the same for both groups of employ- ees. The warehousemen wear work clothes suitable to their jobs and the male store clerks wear slacks and sport shirts. Helmstetter handles the installation , adjustment, -and servicing of all kinds of equipment ranging from refrigera- tors and ovens to fryers , grills, etc. which the Company sells. There is an area within the warehouse where some of this work is done, while the installation and the servicing of nomnovable equipment is performed on the customer's 988 DECISIONS OF NATIONAL LABOR RELATIONS BOARD premises . On jobs requiring more than one man, Hehnstet- ter is assisted by one of the drivers. Because the three owners ' of the predecessor were all active in the business, and because less than 25 people were employed all told, lines of supervision over particular job classifications were not sharply drawn. 'Responsibilities were, as much on the basis of function as on employee classification. Receipts from store sales and drivers' deliveries were all accounted for to Rideout. (I infer. the business is operated mainly on ' a cash rather than credit basis, since drivers receipts were accounted for daily). The inventory of goods in both store and warehouse -was Anderson's responsibility, and sales efforts, by clerks or commission salesmen , were directed by Wood. However, since employees were engaged in specific functions, it followed that Anderson had more direct contact with the warehousemen than he did with the store clerks, but it is significant, for example, that it was Wood and Rideout who discharged Kirk, rather than Anderson, with whom he worked most closely. I am not certain whether it was Wood or Rideout who handled the routine operations of the store, but, in any event, direct supervision seems to have been quite minimal. In retail department stores, a warehouse unit will be found appropriate only if it is geographically separated from the retail store operations, is under separate supervi- sion, and is not substantially integrated with other store functions.12 In retail, department stores, the warehouse services the store's operations and its employee comple- ment is less than the sales personnel . In this case, it is the warehouse which is most important, in terms of number of employees and the amount of business done. Here, it is the store which , is an , - extension of the warehouse. Also relevant here are cases of a warehouse or wholesale operation which deals directly with customers. There, office clerical employees whose direct contact with warehousemen is limited are normally excluded.13 Even closer to the situation here are cases which involve the relationship -"of warehousemen to salesclerks who sell in an area of the warehouse, where such sales are a minor part of the entire business. The sales area is included in the warehouse or plant, the products sold are obtained from the warehouse, and the salesclerks usually have some functions in the warehouse itself . In these cases , the Board has included store clerks in warehouse, production, or route drivers units.14 In this case, the three sales, clerks have many interests in common with the warehousemen and drivers. Their wage structure is comparable to that of the warehousemen, their hours of work are the same, and although, they do much less physical work, they are not clerical employees. They stock merchandise in the store obtained from the ware- house, they deal with the same : customers to whom the drivers deliver, so that the traits which are desired in 12 A. Harris & Co., 116 NLRB 1628 , and Sears Roebuck and Co., 180 -NLRB-No. 132. 13 Arts & Crafts Distributors 132 NLRB 166; , Garrett Supply Company, 165 NLRB 561; and Pacific Abrarive Supply Co., 1,82 NLRB No. 48. i4' Teamsters ' Local 327 (American Bread Company), 170 NLRB No. 19; Capital Bakers, Inc., 168 NLRB 908, 909 ; and Gunzenhauser Bakery, Inc., 137 NLRB 1613 , 1617 (returned goods employees). 15 See Westinghouse Electric Supply Company, 83 NLRB 174, 176, where department store selling personnel are less im rtant here. The store is an extension of the warehouse, d closely bound _to it. It is more comparable to taking o ders at a counter in , a wholesale operation, than it is to cl g in a department store or specialty shop.15 , The corollary of the rule enunciated , in A., Ilarri 'I Co., 116 NLRB 1628, is that warehouse- employ and salesclerks must be joined in a,single unit when the work in the same building, are not under separate sup 'ion, and are substantially integrated in their functions The same rule, it seems,to me, should be applied where sales part of the business is an, adjunct to the warehou , as where the warehouse is an adjunct of the lugger, ales operation. All the employees here are based in one building, there is a significant overlapping of supervision in both the store and the warehouse, and the respective functions of both groups are interrelated since they deal generally with the same type of customer. I'therefore hold that only a unit composed of the warehousemen-drivers and the salesclerks is appropriate, here. Since the' Union did not have a majority in such a unit, I, find that it was not the collective-bargaining representative of the employees in an appropraite unit, on the basis of its demand alone. I shall therefore recommend that the_ allegations of the complaint relating to the Company's refusal to Bargain be dismissed. In view of that recommendation I need not decide whether the violations of Section 8(a)(1) and (3) which I have found would have necessitated a' bargaining order here under the principles of Gissel Packing Company, 395 U.S. 575. Nor do I need to decide whether the Union's conduct during the strike was so reprehensible'as to justify denying it a bargaining order, in accord with such cases as Laura Modes Company, 144 NLRB'1592,'or Artcraft Mantel & Fireplace Co., 174 NLRB No. 110, on which the Respondent relies.16 G. Kirk's Right To Reinstatement However, since Kirk was a participant in all the alleged misconduct during the strike , there remains the related question whether he should be denied, reinstatement because of his individual acts. ,In the ,,main, the strike, was peaceful. There was .no blocking of ingress or egress at the warehouse, no extravagant name-calling, and no violence against non- strikers. There were some incidents in which Kirk is claimed % to have damaged company trucks, to have threatened the nonstrikers who continued to make deliver- ies,,and to have threatened, their safety by following the trucks in a dangerous manner. The strike lasted about 2 months, from November 9, 1970, to January 6, 1971. The incidents in which Kirk was involved occurred in a 2-week period, from about November 16 through December 2. Events before December 1: (a), On or about November 16, Kirk and Schneider followed Jerry Wood to the Ramada a counter salesman was included in a warehouse unit , despite the agreement of the parties to exclude him 1s The General , Counsel's contrary positionis based on World Carpets of New York Inc, 163 ,NLRB 597, and a Supplemental Decision in the same case, 188 NLRB No . 110, pursuant to a remand of the Court of Appeals, 403 F .2d 408 (C.A. 2), and United Mineral & Chemical Corporation, 155 NLRB 1390, reversed in pertinent part in 391' F.2d 829 , 838-841 , (CA. 2). CONSOLIDATED SUPPLY CO., INC. Inn where he was to make a delivery. Wood phoned Mel Anderson from there to tell him he had been followed, and Anderson then drove over to the inn in his car. As Wood was leaving in the truck, Anderson proceeded to follow him. Kirk followed them and, at one point on the inn's private road, attempted to get between the truck and Anderson's car. Anderson either squeezed Kirk's car onto the shoulder, or Kirk did the same to Anderson's car, depending on'whose testimony is to be believed. Eventual- ly, Kirk got ahead of the truck and slowed down, forcing Wood also to drive slowly, until Kirk pulled over to the side of the road. Neither'the squeezing onto the shoulder of the road, even if committed by Kirk, nor his slowing down, endangered anyone.'7 (b) About 10 days later, Jerry and Jim Wood each drove a company truck to Emery Transport, a freight hauler, to pick up some goods which Emery had refused to deliver. Two union business agents, together with Kirk and Schneider, were already there. The Woods were not able to make their pickup and, as they returned to their trucks, an unknown party threw a rock at one of the trucks, shattering its windshield. Jim Wood got in and started to drive away when he discovered, that one of the tires was flat. Jerry Wood testified that he saw the tire later, and that it had been slashed. Despite the denials of Kirk and the other union men who were at Emery that they had anything to do with the slashing or the rock throwing, I consider it extremely likely that one or more of them had, done,the damage, since no one else was near the trucks. However, I feel I would not be justified in denying reinstatement to Kirk over this incident simply because-he was one of the four men on the scene, in the absence of evidence that he had actually participated in the rock throwing or the tire slashing. Events on -December 1 and 2: (a) On December 1, some of the nonstriking employees used company trucks to block the 'car of Meyer, a striker, which was parked near but not on company property. Business Agent Marketti called the police to complain. While waiting for them to appear, Marketti took two or three baseball bats out of-his car, held one himself, and gave another to Kirk. Some of the nonstrikers were watching from inside the warehouse, and Marketti- called out to them from the street to come out, that he would take them on.18 A short time later, the police arrived, told Marketti to put the bats away, and had the trucks moved away from Meyer's car. Although neither the blocking of the car nor the brandishing of the bats can be excused, there was no close physical confrontation which could have escalated into violence, since the nonstrikers were all inside the warehouse,'and the union men were all across the street. (b) Later the same day, Kirk first blocked Jim Wood for a few moments as he was attempting'to park in a freight loading zone at the Madison Telephone Company, and then followed Tommy Anderson on Northport Road, cutting in once or twice. After a half mile of this 17 The facts in Titan Metal Manufacturing Co., 135 NLRB 196, which the Company cited in its brief , reveal a much more serious and dangerous kind of reckless following and driving. 18 This is based on the testimony of Jerry Wood. Marketti denied that he 989 maneuvering , Kirk turned around and let Anderson proceed. (c) The next day, Marketti and Kirk followed Jerry Wood and Tommy Anderson on their route. Wood and Anderson testified that at one of their stops, the Simon Douse, Marketti and Kirk got out of their car and swung their picket signs in their direction. Wood then phoned -Mel Anderson who said he would call the police. When Wood' got back' to his truck, Kirk pointed at -him, and said he would die. - Just then the police arrived. Wood and Anderson then drove on to -their next stop, the Hideaway Lounge, with Kirk and Marketti in -pursuit. At this stop, when they all got out, Kirk said to Wood, "You're going to die hard." Kirk denied that he or Marketti had swung picket signs at Wood or Anderson, that he had had any` conversation with them, and specifically denied that, he had said anything to Wood about dying. (d)' Kirk and Marketti- continued, to follow the truck, getting out to picket it whenever it stopped to make a delivery. Again the Company called the police, who came and spoke to Kirk and Marketti. At some point, according to Anderson, Kirk yelled out to him that he was going to break the Company and all of them. I do not believe that either the General-Counsel's or the Respondent's witnesses were wholly truthful in their respective testimony as to the incidents related above. However, only the baseball bat incident and Kirk's alleged threat against Jerry Wood that he would die, seem to me to be of sufficient weight even to consider in determining Kirk's reinstatement . The other incidents,' of following the truck or blocking it momentarily, are the sort of trivial, rough incidents which are to be expected during a long, contested strike where an employer attempts-to continue operating with nonstrikers. On the whole, I have less faith in the truthfulness of Kirk's and Marketti's versions than I have in that of the other witnesses . I have also taken into account, however, the provocation by blocking Meyer's car which led to the display of the bats. Even assuming that Kirk's gestures and words actually happened just, as Respondent's witnesses attested to, I do not believe that they were of so aggravated a nature as to justify denying reinstatement to Kirk. The cases, cited by Respondent where the Board refused reinstatement to a discriminatee involve conduct, such as unprovoked assaults and other violence, threats which seemed to be liable to being carried out, and dangerous , reckless following , of nonstrikers. The, incidents in which Kirk was involved were less likely to put' anyone in fear, and no physical assaults ever resulted. I find that Kirk's misconduct during the strike was not of such a serious character as to render him unfit for further service with the Company, and I will recommend that he be reinstated.'9 CONCLUSIONS OF LAW 1. Consolidated Supply Co.; Inc. and Consolidated Supply of Madison, Inc., are employers engaged in had said he would take them on, clainung only that he had shown them his Mickey Mantle batting stance, and that he had said two can play that game.19 Terry Coach Industries, Inc., 166 NLRB 560. 990 DECISIONS OF NATIONAL LABOR RELATIONS BOARD commerce within the meaning of Section 2(6) and (7) of, the Act. 2. The, Union - is a labor organization within the meaning of Section 2(5) of the Act. 3. Consolidated Supply of Madison, Inc., is a successor employer to Consolidated Supply Co., Inc., and is re' pansible for remedying, the latter's unfair labor prac- tices. 4. By discriminatorily discharging Robert Kirk on November 5, 1970, thereby discouraging membership in the Union, the predecessor, Respondent has engaged in unfair labor practices within the meaning of Section 8(a)(3) and (1) of the Act. 5. By refusing to reinstate Robert Kirk the Respon- dents have engaged in and are engaging in unfair labor practices within the meaning of Section 8(a)(3) and (1) of the Act. 6. By interrogating employees in a coercive manner, by threatening them that it would close the plant if the Union got, in, and by promising raises to employees who would refuse to strike, predecessor Respondent has engaged in unfair labor practices within the meaning of Section 8(a)(1) of the Act. 7. The aforesaid unfair labor practices affect commerce within the meaning of Section 2(6) and (7) of the Act:. 8. The Union was not the authorized representative of a majority of the employees in an appropriate unit on November 5, 1970, or thereafter, and the Respondents are not in violation of Section 8(a)(5) of theAct in refusing to recognize and bargain with it. THE REMEDY In order to effectuate the policies of the Act, I find it necessary that the Respondents be ordered to cease and desist from the unfair labor practices found and from other invasions of the employees' Section 7 rights; to take certain affirmative action, including the offer of reinstatement to Robert Kirk, with backpay computed on a quarterly basis, from the date of his discharge to the date on which the` Company offers him reinstatement, plus interest at 6 percent per annum, as 'prescribed in F. W. Woolworth Company, 90 NLRB 289, and Isis Plumbing & Heating Co.; 138 NLRB 716; and to post appropriate notices. Upon the foregoing findings of fact, conclusions of law, and the entire record, and pursuant to Section 10(c) of the Act, I hereby issue the following recommended: 20 ORDER Respondents Consolidated Supply Co., Inc., and Consol- idated Supply of Madison, Inc., their officers,, agents, successors , and assigns, shall: 1. Cease and desist from: (a) Discouraging, membership in Drivers, Salesmen, Warehousemen, Milk Processors, Cannery, Dairy Employ- ees and Helpers Union Local No. 695, affiliated with 20 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 International Brotherhood , of Teamsters, Chauffeurs, Warehousemen and,Helpers of America , or, in any other labor organization - of ,its employees , by discriminatorily discharging, or in any other manner discriminating against any employee in regard to hire , tenure, or any other term or condition of employment. (b) Interrogating employees in, a coercive manner, threatening them that, it would close the plant if the Union got in, and promising themraises if they would refuse to strike. - (c) 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 the above-named labor organization , or any other labor organization, to bargain collectively through representa= tives of their own choosing , to engage in ,other concerted activities for the purpose of mutual . aid or protection as guaranteed in Section 7 of the Act, or to refrain from any or all such activities. 2. Take the following affirmative action necessary- to effectuate the policies of the Act: (a) Offer to Robert Kirk, immediate and full reinstate- ment to his former,,or substantially equivalent position, without prejudice to his seniority or other rights and privileges, and make him whole- for any loss of earnings suffered by reason of the discrimination-practiced against him, in the manner ' setforth in the section entitled ` "The Remedy." (b) 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. , (c) Preserve and,, upon, request, make available to the Board or its agents, for examination and copying, all payroll records, social security payment records, timecards, personnel records, and reports, , and all, other reports necessary to analyze the amount,of backpay due, and the right to reinstatement. (d) Post at its warehouse, and office in Madison, Wisconsin, , copies of the attached notice marked "Appendix" 21 Copies of the notice, on forms provided by the Regional Director for Region 30, after being duly signed by authorized representatives of the Respondents, shall be posted immediately upon,receipt:thereof, and be maintained for,60,consecutive days thereafter, in conspicu- ous places, including all places where notices to employees are customarily posted. Reasonable steps shall be taken by successor Respondent to insure, that said notices'are not altered, defaced, or, covered by any other, material. (e) Notify the Regional Director for Region '30, in writing, within 20 days from the date of the receipt of this Decision, what steps Respondents have taken to comply herewith :2 IT IS FURTHER RECOMMENDED that the complaint be 21' 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 torn Judgment -of the United States Court of Appeals Enforcing an Order of the National Labor Relations Board." 22 In "the event that this recommended Order is adopted by the Board CONSOLIDATED SUPPLY CO., INC. dismissed insofar as it alleges unfair labor practices not found herein. ` after exceptions have been filed, this provision shall be modified to read: "Notify the Regional Director for Region 30, m writing, within 20 days from the date of this Order, what steps the- Respondent has taken to comply herewith." APPENDIX NOTICE TO EMPLOYEES POSTED BY ORDER OF THE NATIONAL LABOR RELATIONS BOARD An Agency of the United States Government WE WILL offer Robert Kirk full reinstatement, and pay him for the earnings he lost as a result of his discharge on November 5, 1970, plus 6-percent interest. WE WILL NOT discharge or discriminate against any employee for supporting Drivers, Salesmen, Ware- housemen, Milk Processors, Cannery, Dairy Employees and Helpers Union Local No. 695, affiliated with Inteernational Brotherhood of-Teamsters, Chauffeurs, Warehousemen and.Helpers of America, or any other Union. WE WILL NOT promise raises to employees for not going on strike. WE WILL NOT threaten to close the warehouse if the Union becomes the bargaining representative of our employees.' 991 WE WILL NOT question employees about the Union in a coercive manner. Dated By CONSOLIDATED SUPPLY Co., INC. AND ITS SUCCESSOR, CONSOLIDATED SUPPLY OF MADISON, INC. (Employer) (Representative} (Title) WE WILL NOTIFY immediately the above -named individual, if presently serving in the Armed Forces of the United States,, of the 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 concerning this notice or compliance with its provisions may be directed to the Board's- Office, Second Floor, Commerce Building, 744 North Fourth Street, Milwaukee, Wisconsin 53203, Telephone 414-224- 3861. Copy with citationCopy as parenthetical citation