Dino's LoungeDownload PDFNational Labor Relations Board - Board DecisionsJul 20, 1978237 N.L.R.B. 30 (N.L.R.B. 1978) Copy Citation DECISIONS OF NATIONAL LABOR RELATIONS BOARD Ringside Liquors, Inc. d/b/a Dino's Lounge and Cas- sell & Freidman, Inc. d/b/a King of Clubs and Lo- cal Joint Executive Board of Las Vegas, Culinary Workers Union Local 226, and Bartenders Union Local 165, Hotel & Restaurant Employees and Bar- tenders International Union, AFL-CIO and Las Vegas Tavern Owners Association, Party to the Contract. Case 31-CA-6689 July 20, 1978 DECISION AND ORDER BY MEMBERS PENELLO. MURPHY. AND TRUESDALE On January 11, 1978, Administrative Law Judge William J. Pannier I11 issued the attached Decision in this proceeding. Thereafter, Respondents filed ex- ceptions and a supporting brief, and the Charging Party filed an answer to Respondents' exceptions. Pursuant to the provisions of Section 3(b) of the National Labor Relations Act, as amended, the Na- tional Labor Relations Board has delegated its au- thority in this proceeding to a three-member panel. The Board has considered the record and the at- tached Decision in light of the exceptions and brief and has decided to affirm the rulings, findings,' and conclusions of the Administrative Law Judge and to adopt his recommended Order as modified herein.2 ORDER Pursuant to Section 10(c) of the National Labor Relations Act, as amended, the National Labor Re- lations Board adopts as its Order the recommended Order of the Administrative Law Judge, as modified below; and hereby orders that the Respondents, Ringside Liquors, Inc. d/b/a Dino's Lounge and Cassell & Freidman, Inc., d/b/a King of Clubs, Las Vegas, Nevada, their officers, agents, successors, and assigns, shall take the action set forth in the said rec- ommended Order, as so modified: 1. Delete paragraph l(a) and reletter the subse- quent paragraphs accordingly. 2. Substitute the following for paragraph 2(a): "(a) Honor and abide by the collective-bargaining agreement negotiated on August 11, 1976, on behalf of the multiemployer bargaining group designated as the Las Vegas Tavern Owners Association." 3. Delete footnote 17. 4. Substitute the attached notices for those of the Administrative Law Judge. Respondents have excepted to certain credibility fIndings made hs the Administrative Las Judge. It is the Board's established polics not to ,iser- rule an Administrative I aw Judge's resolutions with respect toi iredibility unless the clear preponderance of all of the relevant evidence convinces us that the resolutions are incorrect. Standard Dr) Wall Products. Inr. 91 NLRB 544 (1950), enfd. 188 F.2d 362 (C.A. 3. 1951). We have carefully examined the record and find no basis for reversing his findings. We have further considered the Respondents' contention that the Administrative Lasw Judge has demonstrated bias, or at least an appearance of bias. in this proceeding. We have carefull) reviewed the record and attached Decision and reject this contention as unsupported. 2 In adopting the Decision of the Administrative Law Judge. we do not rely on his Conclusion of Law 6 insofar as it finds that Respondents vio- lated Sec. 8(a)(5) and ( I ) "[bly unilaterally attempting to withdraw from the multiemployer bargaining group designated as Las Vegas Tavern Owners Association" and find such violation only b) Respondents' refusal to honor and abide by the terms of the collective-bargaining agreement negotiated between that Association and the Union Although the Administrative Law Judge correctly noted that the withdrawal was untimely, that would not. in and of itself, be a violation of Sec. 8(aX5). Rather, the Respondents' refusal to adhere to the negotiated contract following the untimely withdrawal constitutes the 8(a)(5) refusal to bargain. Accordingly. we shall amend the recommended Order by deleting par. I(a), and that portion of par. 2(a) requiring that Respondents remain members of the multiemploser bargain- ing group, and we shall conform our notices to the revised Order Additionalls we find it unnecessary toi pass on In. 17 to the Ndministra- tive Law Judge's recommended Order inasmuch as that issue is not before us in this proceeding. Accordingl., we shall delete In 17 to the rccom- mended Order. APPENDIX A NolicE To EMPLOYEES POSTED BY ORDER OF THE NAtIIONAL LABOR RELATIONS BOARD An Agency of the United States Government The National Labor Relations Act, as amended, gives all employees the following rights: To organize themselves; To form, join, or support unions; To bargain as a group through a representa- tive they choose; To act together for collective bargaining or other mutual aid or protection; To refrain from any or all such activities. WE WII. NOT refuse to honor and abide by the terms and conditions of the collective-bargain- ing agreement negotiated on August 11, 1976, on behalf of the multiemployer group known as the Las Vegas Tavern Owners Association. WE WILl. NOT in any like or related manner interfere with any of your rights set forth above which are guaranteed by the National Labor Relations Act. WtE WILL NOT honor and abide by the collec- tive-bargaining agreement negotiated on behalf of the group known as the Las Vegas Tavern Owners Association on August 11, 1976, with Local Joint Executive Board of Las Vegas, Culi- nary Workers Union Local 226, and Bartenders Union Local 165, Hotel & Restaurant Employ- ees and Bartenders International Union, AFL- CIO. as the collective-bargaining representative of: 30 DINO'S LOUNGE AND CASSELL & FREIDMAN. INC All captains, hostesses. waiters, waitresses. porters, bartenders, and barboys employed by Las Vegas, Nevada, taverns included in the multiemployer bargaining group, designated as the Las Vegas Tavern Owners Association; excluding professional employees, guards, and supervisors as defined in the Act. WE WILL bargain with Local Joint Board of Las Vegas, Culinary Workers Union Local 226, and Bartenders Union Local 165, Hotel & Res- taurant Employees and Bartenders International Union, AFL-CIO, as the collective-bargaining representative of the employees in the above-de- scribed appropriate unit respecting rates of pas. wages, hours or other terms and conditions of employment; and, should any understanding he reached, WE WILL embody such understandings in a signed agreement. WE WILL make you whole for any loss of pay or benefits which would have accrued to you under the collective-bargaining agreement with Local Joint Executive Board of las Vegas, Culi- nary Workers Union Local 226. and Bartenders Union Local 165, Hotel & Restaurant Employ- ees and Bartenders International Union. AFL CIO, described above. which we have refused to honor. RINGSIDE LIQUORS, IN(-. d/b a DIo) s LOUNGE APPENDIX B NOTICE To EMPLOYFES POSTED BY ORDER OF THE NATIONAL LABOR RELATIONS BOARD An Agency of the United States Government The National Labor Relations Act. as amended, gives all employees the following rights: To organize themselves To form, join, or support unions To bargain as a group through a representa- tive they choose To act together for collective bargaining or other mutual aid or protection To refrain from any or all such activities. WE WILt. NOT refuse to honor and abide bv the terms and conditions of the collective-bargain- ing agreement negotiated on August 11. 1976, on behalf of the multiemployer group known as the Las Vegas Tavern Owners Association. WE WIi L NOT in any like or related manner interfere with any of your rights set forth above which are guaranteed by the National Labor Relations Act. Wt wlllI N0o honor and abide by the collec- tive-bargaining negotiated on behalf of the group known as the Las Vegas Tavern Owners Association on August 11, 1976, with Local Joint Execuitise Board of Las Vegas, Culinary Workers Union Local 226, and Bartenders Union Local 165. Hotel & Restaurant Employ- ees and Bartenders International Union, AFL CIO, as the collective-bargaining representative of: All captains. hostesses. waiters, waitresses, porters, bartenders, and barboys employed by Las Vegas, Nevada, taverns included in the multiemployer bargaining group, designated as the Las Vegas Tavern Owners Association: excluding professional employees, guards, and supervisors as defined in the Act. Wi ms.i. bargain with Local Joint Board of Las Vegas, Culinary Workers Union Local 226, and Bartenders Union Local 165, Hotel & Res- taurant Employees and Bartenders International Union, AFL-CIO, as the collective-bargaining representative of the employees in the above-de- scribed appropriate unit respecting rates of pay., wages, hours or other terms and conditions of employment: and, should any understanding be reached, wL wll I. embody such understandings in a signed agreement. WE: wll. make you whole for any loss of pay or benefits which would have accrued to you under the collective-bargaining agreement with Local Joint Executive Board of Las Vegas, Culi- nary Workers Union Local 226, and Bartenders Union Local 165. Hotel & Restaurant Employ- ees and Bartenders International Union, AFL- CIO. described above, which we have refused to honor. CAssFi I & FRFII)MAN, INC d/b/a KING OF Clit BS DECISION STATEMFNT 01 IHF CASE WII.llAM J PANNIER Ill, Administrative Law Judge: This matter was heard by me in Las Vegas, Nevada, on Septem- ber 29 and 30, 1977. On Mav 17, 1977, the Regional Direc- tor for Region 31 of the National Labor Relations Board issued a complaint and notice of hearing, based upon an unfair labor practice charge filed on December 20, 19 76 ,1 niles, oherut.e 'tated, all dates occurred in 1976 31 DECISIONS OF NATIONAL LABOR RELATIONS BOARD alleging violations of Section 8(a)( ) and (5) of the Na- tional Labor Relations Act, as amended, 29 U.S.C., Sec. 151, eI seq., herein called the Act. All parties have been afforded full opportunity to ap- pear, to introduce evidence, to examine and cross-examine witnesses, and to file briefs. Based upon the entire record.2 upon the briefs filed on behalf of the parties, and upon my observation of the demeanor of the witnesses. I make the following: FINDINGS OF FACT As the principal allegations of the complaint have been denied, most of the issues in this matter jurisdiction, ap- propriateness of the bargaining unit, existence of the obli- gation to honor the contract executed on August 24----turn on a single question: Had a multiemployer bargaining group been formed during the 1976 negotiations between Local Joint Executive Board of Las Vegas, Culinary Work- ers Union Local 226, and Bartenders Union Local 165, Hotel & Restaurant Employees and Bartenders Interna- tional Union, AFL-CIO, herein called the Union,3 and a number of Las Vegas, Nevada, area taverns, including Ringside Liquors, Inc., d/b/a Dino's Lounge, herein called Respondent Dino's, and Cassell & Freidman, Inc., d/b/a King of Clubs, herein called Respondent King of Clubs, and herein collectively referred to as Respondents? At all times material, Respondent Dino's has been a Ne- vada corporation, with a tavern in Las Vegas, operated by coproprietors Dean Bartolo, Clyde House, and Albert Spi- no. During the last calendar year, Respondent Dino's, in the course and conduct of its business operations, derived gross revenue in excess of $125,000. At all times material, Respondent King of Clubs has been a Nevada corporation, with a tavern in Las Vegas, operated by coproprietors Wil- liam Renek and Richard F. Ferrara. During the last fiscal year, Respondent King of Clubs, in the course and conduct of its business operations, derived gross revenue in excess of $100,000; additionally, Respondent King of Clubs an- nually purchases and receives goods valued in excess of $15,000 from sellers or suppliers located within the State of Nevada, which sellers or suppliers received such goods in substantially the same form directly from outside the State of Nevada.4 The background facts in this matter are relatively straightforward and undisputed. Thus, for a number of years prior to 1976, the Union had negotiated individual collective-bargaining contracts with a number of Las Vegas 2 Errors in the transcript have been noted and corrected 3 Respondents denied that the Union is a labor organization within the meaning of Sec. 2(5) of the Act. The record discloses that the Union is composed of delegates from its constituent local unions which it represents in negotiations for collective-bargaining agreements with employers. Re- spondents, as well as other tavern owners involved in this proceeding, have been parties to past contracts with the Union and the Utnion is also signato- ry to the August 24 contract involved in the instant proceeding. Conse- quently. I find that the Union is a labor organization within the meaning of Sec. 2(5) of the Act. See Los Angeles Typographical Union No 174. ei al (White Front Store. Inc.), 181 NLRB 384, 385 11970), and cases cited therein. 4The following gross revenue figures were provsided for other taverns involved in the alleged multiemployer group: $150,(X)0 for the Rice Paddy: $225.000 for the Moby Grape: and, $300.00) for t)anny's Bar. area taverns. The most recent contract expired in mid- 1976. Both the Union and the individual tavern owners, including Respondents, mailed reopening letters in April.5 However, a number of the tavern owners felt that they should be represented by an experienced negotiator. To achieve that goal, they contacted Federated Employers of Nevada, Inc., herein called Federated, by whom consultant Jacqueline Glasby has been employed. Each of the tavern owners who elected to be represented by Federated execu- ted a power of attorney, delegating "full authority to repre- sent the undersigned in all collective bargaining negotia- tions," and full authority to negotiate such terms of agreement as our said attorney(s) in fact, and in its (theirs) sole dis- cretion shall deem proper. in our names, places and steads to make and enter into and to execute a collec- tive bargaining agreement . . . which shall be fully as binding upon us as though executed by the under- signed in their proper persons. Both Respondents executed such a document. 6 Between June 24 and 30, Glasby sent three letters to the Union, advising that the tavern owners named therein had signed powers of attorney authorizing Federated to repre- sent them. Respondents' names were included in the list transmitted on June 24. Neither in these letters nor, so far as the record discloses, at any other time did Glasby state to the Union that there was any restriction on her authority to consummate a contract on behalf of the taverns which she represented. There is no evidence that either she or the tavern owners ever advised the Union that the tavern own- ers were reserving the right to accept or reject any agree- ments reached before those agreements became binding. Once negotiations commenced, Glasby sought to have the taverns recognized as a multiemployer bargaining group.7 However, the Union declined to do so until such In his letter of April 29 to the Union, Bartolo asserted a "good faith belief that ai majority of our employees no longer wish to be represented by [the L.nionl in collective-bargaining negotiations." However. so far as the record discloses. this subject was never again raised by Respondent Dino's Moreover. it has not been asserted as a defense to the General Counsel's refusal to bargain allegation. Consequently, it will not be considered any further 6 Although Rice Paddy owner Dave Rice testified that Bartolo had execu- ted the power of attorney only upon the assurance that Glasby needed it to establish her right to negotiate on behalf of Respondent Dino's, and that it v.ould only pertain to the negotiations, having 'nothing to do with the sign- ing of the contract . . "Bartolo was never called to corroborate Rice in this respect. Moreover. there has been no showing that this purported reser- valtion had ever been communicated to the Union prior to August 25 and. accordingly, this asserted reservation cannot be accorded controlling weight in light of Respondent Dino's outward manifestations of intent. "An em- ployer who, through a course of conduct or otherwise, signifies that it has authorized the group to act in its behalf will be bound by that apparent creation of authority" Jorsiph Mc Daniel, an Individual Proprietorship d/hba (itiiom ( olors ( ontractors. 226 NLRB 851. 853 (1976). In any event, even had such a reservation been voiced by Bartolo. reservation of the right to execute a separate contract is not inconsistent with multiemployer bargain- in. Id, at 854. Mouse Trap owner Clark Schmutz testified that Glasby had ceased re- questing group bargaining after the Union's rejection of her request and, at oine point. Glasby testified that after the Union's initial rejection of this request, recognition on a group basis "was no longer a bargaining demand." ilHowever. (Glasby's testimony at this point appeared to be an effort to frus- tra;te cross-examination. rather than to testify accurately regarding the prog- ress of negotiations. On direct examination, she testified as to numerous 32 DINO'S LOUNGE AN[) CASSELI. & FREIDMAN. INC time as agreement was reached upon the terms of a con- tract.8 Consequently, Glasby continued to represent the tavern owners on an individual basis. Howeer, as the ne- gotiations proceeded. she conferred with all of the tavern owners, directly or through the steering committee, regard- ing the union's proposals, and her counterproposals and agreements were voiced only after she had secured the con- sensus of all whom she was representing. By August 11. only economic matters remained for ne- gotiations. Prior to that meeting. the Union had presented Glasby with a new wage proposal which formed the basis for discussion on that date. The meeting resulted in changes in the Union's wage proposal. These changes were written on that document and Glasbv then initialed the changes and signed the proposal at the bottom. However. she testified that she had told the Union's representatives that her agreement on wage rates was only tentative and that she would have to confer with the tavern owners be- fore agreement could become final. Conversely, nion Representative Jack Stafford testified that the meeting had terminated with the agreement "on the wage proposal, the health and welfare, the pension and all the other matters pertaining to the contract, including recognition and ,a partnership clause." 9 Glasby did not deny that agreement had been reached on health and welfare, pension, group recognition and the partnership clause. Moreover, Stafford's account that agreement was reached at this meeting is supported by the undisputed testimony that following the meeting, the par- ties had met with a television crew, announcing their 'com- plete agreement in principle on all parts of the contract and that we would sign the contract possibly that afternoon, if we could retype those pages." Indeed. Bramlet's adminis- trative assistant, Jeff McColl, had then undertaken respon- sibility for final preparation and typing of the contract, which then had been transmitted to Glashb. She did not rejections of her requests for recognition on a group basis. "cihi tinme I.lat we met." Consequently. there must have been renewal itf Ihcse requclss \s Rice testified, recognition on such a basis "was one of the things v.c ,ere fighting for." Indeed. at another point in his testimony. Schmultz conceded that Glasby had renewed this demand subsequently Accordingls. I find that the tavern owners' demand for group recognilion remained viahle throughout the negotiations. 8Glasby testified that then Secretar)-Treasurer Al Bramlet had told her that he would give her recognition on a group basis only "when youl sign the contract." However, when she testified. (ilasby appeared Io be attempting to take advantage of the fact that Bramlet's death presenrted his appea.ralce to controvert statements attributed to him. Thus, she appeared to he malking a deliberate effort to attribute statements to him that were damaging to the union's position. Moreover, as discussed infra. (Glasbh drew no distinction between the act of reaching agreement and the act of executing aI cintracl incorporating an agreement. In view of her lack of apprecilation oft hal distinction, there can be no reliance upon the accuracy of her tesiimton, as it pertains to discussions where actions. such as group recognition. were conditioned upon one or the other. Accordingly. I do not credit her ltetl mony as to what she assertedly had been told by Bramlet regalrding the point at which group recognition would be accrorded 9A separate memorandum of understanding had been agreed upon whereby husbands and wives listed on liquor licenses would be exempted from coverage by the agreement when performing unit vwork Although Re- spondents argue that such "special treatment for certain employers" is in consistent with multiemployer bargaining, "'sleparate agreement between union and individual employers as to limited matters is not inconslsienl with multiemployer bargaining." Cusrom Colors (onnracirtrr. rulprar. 226 NLRB at 854. fn. 16. and cases cited therein dispute McColl's testimonv that he had twice spoken with her after the August II meeting. explaining the format of the contract; and that while he had referred specifically to the memorandum of understanding reciting group recogni- tion, to which was appended a list of tavern owners cov- ered by the agreement, at no point had she voiced any reservations concerning those to be included in the group. f° Scheduling conflicts prevented a meeting to execute the contract and It was not until August 24 that the meeting was conducted. In the interim, GlasbN had encountered op- position from the tavern owners to one of the wage figures agreed upon on August II. Thus, the August 24 meeting opened with a proposal to revise the agreement on that figure. Both Stafford and McColl testified that they had left the conference room, where the meeting was in prog- ress, to confer with Bramlet about the change:" and that Bramlet. in an effort to achieve execution, had consented.'2 McColl had then taken the contract to his secretary, Louise Vassallo, for retyping of the page listing the wage rates. after which the contract had been reassembled and re- turned to the conference room. Both Stafford and McColl testified that Glasby had exe- cuted the contract and memoranda upon their return to the conference room. 3 Although Stafford testified that Glasby '(;ilssh testified ti.hat .I thc ALsUisl I I meeting. she had adsised Bramnlei th.,t srire of "thesc people" did IiOl iilrned Iii he Included In the agreement. anid th:t BrillCt hald merelN asked ho r mans such "peoiple" there were .ntd sithoiult s1 mucii.h as inquilrilg ;s to their idenitites had said onls that [he ui uld "gi after them IndiidualI .s' and "take them on one on one." In sle, iof lie directI cointrars action shich the t nmon has since taken to file rand spUplJ-1 st the Ltilrge iI tire inslanlt case. the absence tof ans evidence that the I riuon exer .pproached Respondents indisidualls after August 24 Io obhlln a. conlract. the inherent unrealitsv of a scenario which portra)s Bramn let a. disll.ls\ itg n L) oncern oxer the identities of the tavern owners iho did noil intend lo be b, uound bx an agreement just negotiated on their behalf. and (.lash\ ' general lick of candor w he she testified (discussed infral. I do not credit her decriplionit of this aserted cin'sersation w ith Bramlet (la.isbs testificd that Staffotrd had respuonded it the prloposed change hs sasing "Oh. hell. I don't esen ha.e IOt see Al about this I can sign this : In theni brief. Respontidents conlenid Ith.l the ta',ern ouners had agreed to pas he.llh Land ielfare relroactixleN it this meeting; and. based upion this contention. argue tha.t on August 24. the t'nlon "in fact negotiated a new agreement wheretl it realped the additional benefit of retroactive welfare pasments." Schniuz did testifl that at this meeting. Rice "had made the montion tiii gie us that extra sOc loff and. in lieu of that. we ss ouldn'lt fihii any retroactivit '" tloweser. this tesiimon\ appears tio reflect no mtire th.iii Schmutz' limited comprehension of the bargaining process. for Glasbh made no mentioin "of ans agreement to make benefits retroactive at this meeting nor. ahile she described the negotiations pertaining to the 50-cent reduction. did she tesnlfs that agreement on retroactislt) had been the qudl proi qruo for the wage rate change Further. although Rice described his coimments regatrding the 50-cent reduction. he made no mention of having adanced atgreement ,tn retroactivits, as the price for the Unilon's conces sion. While Srnafford testified that the tavern owners who had been present at this meeting did agree to rceroacts itw. such a proislon had alreads been included I1n the contrlact and Schmulz. himself. did not list this as an Item open for negotHiatilon oi August 24 In these circumstances, there is no basls for finding th.ai on August 24. there were negotlations regarding retroactlsl- tvs hich resulted in "the .dditional benefits of retroactive welfare pay- ments." Rather. the mosst that the record will support Is a finding that the matter was dlscUussed but not nlegotiated and that the tavern owners whio were present concurred in the agreement already reached concerning re- troLaclil It 1 o find toL the conltrary on the basis of the record in this instant case. would set a precedent thai agreements can be abrogated and reopened merels because the parties subsequently review and discuss the terms tof those agreements. esen thiough no change in those terms was intended or effected during those disiussi.lons ihe Iclerli.orandutil f Itunderstinding recited that "''l.s egal lIavern (( 'rnitlnurel 33 DECISIONS OF NATIONAL LABOR RELATIONS BOARD had mentioned that she had been unable to contact some of the tavern owners, both he and McColl denied that she had said anything about any of the taverns, whose names were listed on the attachment appended to the memoran- dum of understanding reciting group recognition, not agreeing to the terms of the contract or not being included by its coverage. Both also denied having seen Glasby strike any names from the list appended to the memorandum. Glasby, however, testified that at the meeting, she had announced that three of the tavern owners had not agreed to the terms of the agreement, naming them in response to the Union's request for their identities; but had added that she would prefer to contact them to confirm her under- standing in this regard. At McColl's invitation, testified Glasby, she had done so, using the telephone in McColl's office. She testified that her phone calls had confirmed her earlier announcement and that she then had returned to the conference room; had announced that Night Gallery and Respondents would not be parties to the agreement: and had stricken their names from the list, writing the leg- end "Will not sign" (with the added word "verified" after the legend opposite Respondent King of Clubs). Then, ac- cording to Glasby, she had executed the contract. The record discloses two objective factors which tend to corroborate Glasby's account of the statements which ac- companied execution of the contract. First, she had, in fact, made telephone calls from McColl's office that day and these calls had pertained to taverns listed in the attach- ment to the memorandum of understanding. Second, the names of Night Gallery and Respondents have been strick- en from the list which accompanied the contract executed on August 24 and there is no contention that this occurred on any other date. Nevertheless, there are a number of other factors which warrant a contrary conclusion. Most prominent is the confusion and contradiction aris- ing from comparison of the testimonies of Respondents' witnesses Glasby, Schmutz, and Rice. While Glasby claimed that she had stricken the names immediately prior to executing the contract, Rice and Schmutz both of whom had testified prior to Glasby and, thus, neither of whom had had the benefit of hearing the account which she was to give of the sequence of events on August 24- testified that they had not seen her strike the three names. Consequently, there is no corroboration for Glasby's reci- tation of this purported event. Further, asked what the Union's response had been to her asserted announcement that the three taverns would not be parties to the contract, Glasby waffled, avoiding a direct answer by testifying: "My testimony today is that I don't recall exactly any con- versation except that I do recall there was no negative re- Owners Association" has been recognized as the tavern owners' representa- tive. Due to confusion regarding this entity, it should be noted that prior to commencement of negotiations in the instant case, there had been a trade association, consisting of a much larger number of employers than (Glashb came to represent, with that name. However, after the April reopening let- ters had been mailed, this larger group had been authorized to change its name to Las Vegas Restaurant and Tavern Owners Association. Glasbs testified that, in effect, she had adopted the then abandoned name as a designation for the smaller group of tavern owners for whom she ",as bar- gaining. sponse, because I didn't have to deal with it." Yet, she conceded that in her pretrial affidavit, she had stated flatly that neither Stafford nor McColl had "made any comment whatsoever either to agree or disagree." Since the latter statement tends to support Respondent's argument that the Union's failure to object demonstrated acquiescence in the withdrawals, Glasby's answer when testifying seems most strange. The solution to the puzzle created by Glasby's vagueness when testifying on this point appears to lie in the earlier testimony given by Rice and Schmutz concerning this same subject. Asked if the Union's agents had responded to Glasby, Schmutz had testified: "I didn't hear anything but concurrence that they agreed, you know, we all going to sign the contract." In answer to a similar question, Rice had answered: "To my knowledge, Mr. Staffor [sic] and Mr. McColl both said--i don't know what they said ex- actly but the)' didn't indicate that they were against it, as far as I know, and they indicated that was fine, because at the time they really wanted to get a contract signed." Con- sequently, by the time that Glasby took the stand, there was testimony by these two witnesses on behalf of Respon- dents that contradicted the account in her pretrial affida- vit. Thus, her equivocation when questioned concerning the matter. Before departing from the subject of the testimonies of Respondent's witnesses, one final point should be noted with respect to Rice. On cross-examination, an effort was made to pin down what purportedly had been said to Glas- by in response to her asserted preexecution announcement. Not only did he make no apparent effort to try to recall and recount what had been said, but he appeared to be making an effort to avoid committing himself to an ac- count. Moreover, he conceded ultimately that he could not swear that he had even seen Glasby sign the contract. This concession was not pursued on redirect examination and, accordingly, the record was left with testimony by a wit- ness about an event which had assertedly preceded execu- tion of a contract that he could not swear having seen. A second factor tending to refute Glasby's account of the manner in which these names came to be stricken stems from secretary Vassallo's description of Glasby's conduct after having made telephone calls from McColl's office. As set forth above, Vassallo had retyped the wage rate page and that page was inserted into the contract, with the reas- sembled contract then being returned to the conference room for execution. Accordingly, during the retyping pro- cess, the contract had been on Vassallo's desk. It was ap- parently during this hiatus-when no activity was in prog- ress in the conference room while the parties awaited return of the retyped contract-that Glasby had made her calls. Vassallo testified that following two of these calls, Glasby had stricken and initialed a total of three names from a list of taverns on her desk.l4 Glasby denied having stricken the names in Vassallo's presence. Yet, she was un- able to recall whether she had asked Vassallo for the list; 14 Vassallo made no reference to Glasby having written "Will not sign" bh the names. However. she testified that since she had been busy typing. she "really didn't pa, any attention to what IGlasbyl was doing." Conse- quently, it is quite possible that Glasby's insertion of the legends would hase escaped Vassallo's attention, 34 DINO'S LOUNGE AND CASSEI.L & FREIDMAN. INC. and as she advanced no other reason for having requested the list, her uncertainty as to whether she had requested it from Vassallo is significant. Vassallo appeared to be a sin- cere witness and, accordingly. I credit her description of this incident. As there were several copies of the list on her desk, Vas- sallo was unable to testify whether the copy on which Glas- by had stricken the names had been the one that had been included in the reassembled contract. However, it is unlike- ly that Glasby would have used any other copy. Certainly, she gained nothing by striking names from just any list. There had to be a purpose for her action and there is no evidence that any other purpose would be served by strik- ing names from a copy of the list. Moreover, there would be no purpose for Glasby to initial the deletions if the list were not the one to be included in the contract. In these circumstances, the inference is warranted that the list used by Glasby, in Vassallo's presence, was the one that was included in the reassembled contract. Accordingly. there is a plausible alternative explanation to Glasby's testimony as to how these names came to be stricken. That this change would not have been noticed by the Union's agents at the time of execution is explained by the testimony that due to their familiarity with the contract, it had not been reviewed, page by page, at the time of execution. A third factor tending to indicate that the names were not stricken in the manner described by Glasby arises from her conception of when a binding agreement is formed. She testified that in her view, no agreement existed until the contract had been executed. L Given this conception, it is likely that she would not have felt it necessary to an- nounce the deletion specifically, but rather would have be- lieved it sufficient to accomplish her purpose if she simply struck the names from the contract prior to its execution. In other words, since there had been no execution, she would not feel it significant that the names were stricken and would likely have handled it as a mere detail, without feeling any need for fanfare. Finally, in contrast to Stafford and McColl, Glasby was not a credible witness. She was argumentative and haughty when testifying. Her answers to questions in areas poten- tially adverse to Respondents' interests tended to be eva- sive and nonresponsive. She appeared to be attempting to tailor her testimony in a manner that would extricate Re- spondents from any obligation under the contract. In so doing, she contradicted her own pretrial affidavit and gave testimony at odds with that of the tavern owners whom she had been representing. I do not credit Glasby. Therefore, I find that on August 24, Glasby struck Re- spondents' names from the list appended to the memoran- dum of understanding regarding recognition, but that this was done without the knowledge and consent of the Union. ' This. of course, is clearlv at odds v ith Sec. 8id) of the Act, vhhch differentiates between reaching agreement and "the execution of a written contract incorporating any agreement reached . "A contract i, formed "[olnce final agreement on the substantive terms swas reached. and regard- less of the status of any w'ritten instrument Incorporating that agreement . . orth Bros,. Ford Inc. 220 Nl RB 1021 1022 1975). and caes cited theretin see also -he .4naconda (onparn. 224 NlRB 1041 1051 (1976): Estate of Edward Brian Mlorit d h ia B Mo,rot: bfundrL 22() NI RB 1247. 1248 (1976) In its brief. Respondents make two factual arguments best treated at this point. First, Glasby testified that in July. she had returned the powers of attorney to Respon- dents. However. this was never documented and in view of my finding concerning Glasby's credibility. I do not credit her testimony on this point. In any event, no evidence was adduced to show that the Union had been notified of re- turn of the powers of attorney executed by Respondents. Rather, Glasby continued to exercise the apparent authori- tN to represent them. Furthermore, while Respondents' wit- nesses disputed Stafford's testimony that Bartolo of Re- spondent [)ino's and Renek of Respondent King of Clubs had attended the negotiating sessions throughout the sum- mer. neither of these officials of Respondents was ever called to personally dispute Stafford's testimony. Nor was the failure to call them explained. For that matter, Respon- dents never produced the roster of attendance, showing the identities of the tavern owners who had attended, although its evidentiary significance was underscored during argu- ment at the trial. In these circumstances, I find that the failure to produce these witnesses and evidence warrants the inference that, if produced, they would not have sup- ported the testimony of the witnesses that Respondents chose to produce. Colorflo Decorator Products, Inc., 228 NLRB 408 (1977): Packer Industries, Inc., 228 NLRB 182 (1977). Accordingly, I find that Bartolo and Renek did attend these meetings: and that their continued presence belies any assertion that they had withdrawn Glasby's authority to negotiate on their behalf. Indeed, had they done so, one wonders wh, Glasby would have been telephoning them on August 24 to discuss the acceptability of the agreement. The second factual argument pertains to Respondent's contention that by allowing another tavern owner to with- draw from the group. the Union opened the door for Re- spondents to do likewise. While Glasby testified that in July, Stafford had indicated knowledge that some tavern owners would not go along with the group's contract, her testimony on this point is quite sketchy. It is not at all clear that this comment, if made, referred to those in the group that Glasby represented. as opposed to tavern owners who were members of Las Vegas Restaurant and Tavern Own- ers Association. but who had chosen not to grant Glasby authority to negotiate for them. Beyond this, there is testi- mony by Stafford that Night Gallery signed a contract, although he was unable to recall when it had done so. Again, the evidence regarding this matter is indefinite-for example. it is not clear whether by "signing" a contract, Stafford meant that Night Gallery had agreed simply to honor the contract negotiated by Glasby or had actually signed the same contract as that negotiated by Glasby. Nor was it shown that in doing so. Night Gallery had been acting independently of the multiemployer group. Indeed, Respondents chose not to call any officials of Night Gal- lery to clarify the vagueness of the evidence that was ad- duced. Yet, since this was an issue raised as a defense, it was Respondents' burden to go forward with supporting evidence. Quite clearly it failed to do so. In any event, even had Night Gallery been permitted to withdraw from the group. there is no showing that it did so after August I . when the Union agreed to recognize the 35 DECISIONS OF NATIONAL LABOR RELATIONS BOARD tavern owners on a multiemployer basis; or that its with- drawal was instigated by the Union, or that it changed the essential character of the group. In short, it has not been shown that Night Gallery's situation constituted any more than a mere fluctuation in membership that does not serve to affect multiemployer status. Quality Limestone Products, Inc., 143 NLRB 589, 591 (1963), and cases cited therein. Rather, what is significant is that the Union steadfastly has insisted that Respondents honor the agreement. I ANALYSIS Once bargaining is commenced on a multiemployer ba- sis, withdrawal is permitted only where there is mutual consent or if unusual circumstances are presented. The Carvel Company and C and D Plumbing and Heating Com- pany, 226 NLRB 111, 112 (1976); Retail Associates, Inc., 120 NLRB 388 (1958). However, a multiemployer bargain- ing group cannot be formed simply because the affected employers decide upon such a basis for bargaining. Rather, "multiemployer bargaining is a voluntary arrangement, de- pendent upon the real consent of the participants to bind themselves to each other for bargaining purposes." Van Eerden Company, 154 NLRB 496, 499 (1965). In the instant case, the Union rejected bargaining on a multiemployer basis until such time as an agreement was reached. Accord- ingly, prior to agreement, the tavern owners bargained on an individual basis, albeit through a common agent and in common bargaining sessions. The Union's actions during negotiations showed that it understood this to be the basis upon which bargaining was proceeding. However, it is clear that agreement had been reached on August 11; and I do not credit Glasby's testimony to the contrary. The powers of attorney by which Federated- and, therefore, Glasby-had been designated the tavern owners' representative are phrased in the broadest and most absolute terms. At no point in the negotiations had Glasby or the tavern owners made any mention of having to secure the latter's approval for bargains which she struck on their behalf. See Anaconda Company, 224 NLRB at 1051, and cases cited therein. She did not dispute the testi- mony concerning the meeting with the television crew at which the parties had announced having reached agree- ment. Moreover, it hardly seems likely that the Union would have chosen this particular point in time to have prepared the contract unless it were clear that final agree- ment had been reached. Accordingly, the circumstances corroborate the credible testimony of Stafford and McColl that final agreement had been reached at the August 11 negotiating meeting. This being so, the hiatus before exe- cution of the written document incorporating that agree- ment is irrelevant. North Bros. Ford, supra; Utility Tree Ser- vice, Inc., 215 NLRB 806 (1974), 218 NLRB 784 (1975). Throughout the negotiations, the Union had conditioned extending multiemployer recognition upon reaching an agreement. As found above, this condition had been satis- fied on August 11. Stafford's testimony that this matter had been one of the items specifically mentioned on that date as being a point of agreement was not controverted. Further, at the time that the contract had been prepared, so also had a memorandum of understanding been prepared regarding recognition on a multiemployer basis. That memorandum clearly makes such recognition effective as of the current agreement. Consequently, I find that the agreement reached on August II included immediate rec- ognition of the taverns on a multiemployer basis. It is, of course, accurate that on August 24, the Union did agree to the proposed change in one of the previously negotiated wage rates. However, there is no evidence that the proposed change had been intended to abrogate the entire prior agreement nor is there evidence that the Union so considered that proposal. So far as the record discloses, the proposed change "did not signify the absence of an existing agreement, but rather was an . . . effort to achieve its modification .... " E. B. Moritz, supra. It had no logi- cal relationship to the other terms of the agreement. There has been no showing that it had been proposed with intent to reopen all other items for negotiation. Indeed, there has been no showing that the tavern owners had taken the firm position that no agreement existed without the modifica- tion-that is, that the tavern owners had felt that no overall agreement existed and that the contract would not have been executed but for the Union's agreement to modify this single item. In short, so far as the record discloses, the proposed change was no more than an effort by the tavern owners to improve upon a prior agreement. That proposed change of one item had no greater effect upon the overall agreement than do wage reopeners which not infrequently appear in collective-bargaining contracts. Consequently, I find that the August 24 agreement to change one of the wage rates has not been shown to be more than a modifica- tion of an existing agreement. It did not serve to abrogate that existing agreement and did not affect the Union's prior agreement to recognize the tavern owners of a mul- tiemployer basis. Had the Union rejected the proposal, the tavern owners would have been obliged to execute the con- tract prepared by the Union on the basis of the August 11 agreement. That obligation, and the agreement upon which it was based, were not altered by the Union's consent to modify one wage rate 13 days later. One final point should be noted. Respondents argue that the Union made no objection to the deletion of Respon- dents' names from the contract prior to execution. As found above, I have not credited the testimony upon which this argument is based. However, even had this occurred and had the Union been silent in the face of these dele- tions, this would not have been sufficient, of itself, to show consent to withdrawals from multiemployer bargaining. "The Union's failure to immediately object to the with- drawal, standing alone, is insufficient to establish acquies- cence." Carvel Company, 226 NLRB at 112, footnote 8. Had there been conduct, beyond mere silence, such a con- clusion might have followed. See Fairmont Foods Company v. N.L.R.B., 471 F.2d 1170, 1173-74 (C.A. 8, 1972). How- ever, Respondents have failed to show the existence of any such added conduct. To the contrary, the Union has pro- tested vigorously Respondents' unwillingness to honor the terms of the agreement and has made no effort to deal with them separately, on an individual basis. Consequently, Re- spondents' argument in this respect lacks both factual and legal support. Therefore, I find that on August 11, the parties reached 36 DINO'S LOUNGE AND CASSELL & FREIDMAN. IN(3 final binding agreement on the terms of a collective-bar- gaining contract. One term of that agreement was recogni- tion of the taverns on a multiemployer basis. From that date, a final and binding contract existed, which included that recognition as one of its terms. Regardless of what had transpired prior to that date, none of the taverns were free to withdraw from the multiemployer group after August 11, when all of them became bound to the terms of the agreement negotiated on their behalf. As Respondents had not previously withdrawn from the bargaining-in which their own agent had sought recognition on this basis-- they were a part of that group and were obliged to honor the terms of the agreement negotiated on their behalf. Their failure to do so violates Section 8(a)(5) and ( I ) of the Act. The finding that there was agreement to contractual multiemployer bargaining disposes of several other allega- tions which Respondents have denied. "By virtue of the existence of the contract, the Union was entitled to exclu- sive recognition for at least the term of the contract." Shamrock Dairy, Inc., 124 NLRB 494. 496 (1959). enfd. sub nom. 280 F.2d 665 (C.A.D.C. 1960). cert. denied 364 U.S. 892 (1960). Consequently. appropriateness of the contrac- tual bargaining unit and the majority representative status of the Union have been established. Moreover, jurisdiction will be asserted over the members of multiemployer bar- gaining groups on the basis of the combined operations of all members of the group. Marble Polishers, Machine Oper- alors and Helpers, Local No. 121. AFL-CIO (Mianmi Marble & Tile Company), 132 NLRB 844, 845, fn. 1 (1961). Inas- much as the gross revenues from the combined operations of Respondents, Rice Paddy, Moby Grape, and Danny's Bar exceed $500,000 and as Respondent King of Clubs purchases more than a de minimis amount of goods which originate outside the State of Nevada, I find that Respon- dents are an employer engaged in commerce and in opera- tions affecting commerce within the meaning of Section 2(6) and (7) of the Act. Consequently, the fact that they are engaged in "purely local business," as is argued in their brief, hardly serves to exempt them from the reach of the Board's jurisdiction. N. L.R.B. v. Inglewood Park Cemeteri Association (First Congregational Church of Los ,4ngeles). 355 F.2d 448, 450 (C.A. 9, 1966). 1I. THE EFFECT OF THE UNFAIR LABOR PRACTICES U PON COMMERCE The activities of Respondents, set forth above, occurring in connection with the operations of the tavern owners in the multiemployer group described above, have a close. intimate, and substantial relation to trade, traffic, and commerce among the several States and tend to lead, and have led, to labor disputes burdening and obstructing com- merce and the free flow of commerce. CONCI. USIONS OF LAW I. Ringside Liquors, Inc. d/b/a Dino's Lounge is an em- ployer within the meaning of Section 2(2) of the Act, en- gaged in commerce and in a business affecting commerce within the meaning of Section 2(6) and (7) of the Act. 2. Cassell & Freidman. Inc. d b a King of Clubs is an emploer within the meaning of Section 2(2) of the Act, engaged in commerce and in a business affecting com- merce within the meaning of Section 2(6) and (7) of the Act, 3. L1ocal Joint Executive Board of Las Vegas, Culinary Workers Union Local 226, and Bartenders Union Local 165, Hotel & Restaurant Employees and Bartenders Inter- national Union, AFL-CIO, is a labor organization within the meaning of Section 2(5) of the Act. 4. A unit appropriate for collective bargaining is: All captains. hostesses. waiters. waitresses, porters, bartenders. and barboys employed by Las Vegas, Ne- vada, taverns included in the multiemployer bargain- ing group, designated as Las Vegas Tavern Owners Association: excluding professional employees. guards, and supervisors as defined in the Act. 5. At all times material since August II11. 1976, Local Joint Executive Board of Las Vegas, Culinary Workers Union Local 226. and Bartenders Union Local 165, Hotel & Restaurant Enploxees and Bartenders International Union. AFL CIO. has been the exclusive collective-bar- gaining representative of the employees in the above-de- scribed unit within the meaning of Section 9(a) of the Act. 6. BN unilaterally attempting to withdraw from the mul- tiemplover bargaining group designated as Las Vegas Tav- ern Owners Association: and by refusing to honor and abide by the terms of the collective-bargaining agreement negotiated on August 11. 1976. Ringside Liquors, Inc. d, b a Dino's Lounge. and Cassell & Freidman. Inc.. d, ba King of Clubs, violated Section 8(a)(5) and ( I) of the Act. IHE REMEDY Having found that Ringside Liquors. Inc., d/b/a Dino's Lounge, and Cassell & Freidman, Inc., d/b/a King of Clubs, engaged in certain unfair labor practices, I shall recommend that theN be ordered to cease and desist there- from and that they take certain affirmative action to effec- tuate the policies of the Act. Having found that Ringside Liquors, Inc., d.b/a Dino's Lounge. and Cassell & Freidman, Inc., d/b/a King of Clubs, have failed to honor and abide by terms of a collec- tive-bargaining agreement, I shall recommend that they reimburse employees in the above-described appropriate bargaining unit for any losses of pay or benefits which would have accrued to them under that agreement. with interest to be paid on the amounts owing and to be com- puted in the manner prescribed in F. W. Woolworth Com- pan,'. 90 NLRB 289 (1950). and Florida Steel Corporation, 231 NLRB 651 (1977). See, generally, Isis Plumbing & Heating Co., 138 NLRB 716 (1962). enforcement denied on different grounds 322 F.2d 913 (C.A. 9, 1963). Upon the foregoing findings of fact and conclusions of law, and upon the entire record, and pursuant to Section 10(c) of the Act, I hereby issue the following recom- mended: 37 DECISIONS OF NATIONAL LABOR RELATIONS BOARD ORDER 16 Respondents Ringside Liquors, Inc., d/b/a Dino's Lounge, and Cassell & Freidman, Inc., d/b/a King of Clubs, their officers, agents, successors, and assigns, shall: 1. Cease and desist from: (a) Refusing to remain members of the multiemployer bargaining group designated as Las Vegas Tavern Owners Association, until such time as they can legally withdraw from that group. (b) Refusing to honor and abide by the terms and con- ditions of the collective-bargaining agreement negotiated on their behalf on August 11, 1976. (c) In any like or related manner interfering with, re- straining, or coercing employees in the exercise of any right guaranteed them by Section 7 of the Act. 2. Take the following affirmative action which is neces- sary to effectuate the purposes of the Act: (a) Remain a member of the multiemployer bargaining group designated as the Las Vegas Tavern Owners Associ- ation and honor and abide by the collective-bargaining agreement negotiated on behalf of the group on August I1, 1976. (b) Bargain with Local Joint Executive Board of Las Ve- gas, Culinary Workers Union Local 226, and Bartenders Union Local 165, Hotel & Restaurant Employees and Bar- tenders International Union, AFL-CIO, as the collective- bargaining representative of the employees in the above- described appropriate unit respecting rates of pay, wages, hours, or other terms and conditions of employment; and, should any understandings be reached, embody such un- derstandings in a signed agreement. 16 In the event no exceptions are filed as provided bh 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, he adopted h) the Board and become its findings. conclusions, and Order, and all objections thereto shall be deemed waived for all purposes. 17 Thus, Respondents are obliged to bargain on a multiemployer basis until at least such time as they are free under the Act to withdraw legally from group bargaining. Should either or both of them then do so. a continu- (c) Make whole all employees in the above-described appropriate bargaining unit for any loss of pay or benefits which would have accrued to them under the collective- bargaining agreement which Ringside Liquors, Inc., d/b/a Dino's Lounge, and Cassell & Freidman, Inc., d/b/a King of Clubs, have refused to honor, with interest to be paid thereon, in the manner prescribed in The Remedy section of this Decision. (d) Preserve and, upon request, make available to the Board or its agents all payroll and other records necessary to compute the backpay rights set forth in The Remedy section of this Decision. (e) Post at their Las Vegas, Nevada, taverns, appropriate copies of the attached notice marked "Appendix." 18 Cop- ies of the notice, on forms provided by the Regional Direc- tor for Region 31, after being duly signed by Ringside Li- quors, Inc., d/b/a Dino's Lounge, and Cassell & Freidman, Inc.. d/b/a King of Clubs, authorized represen- tatives, shall be posted by Ringside Liquors, Inc., d/b/a Dino's Lounge, and Cassell & Freidman, Inc., d/b/a King of Clubs, immediately upon receipt thereof and be main- tained by them for 60 consecutive days thereafter in con- spicuous places, including all places where notices to em- ployees are customarily posted. Reasonable steps shall be taken by Ringside Liquors, Inc., d/b/a Dino's Lounge, and Cassell & Freidman, Inc., d/b/a King of Clubs, to ensure that said notices are not altered, defaced, or covered by any other material. (f) Notify the Regional Director for Region 31, in writ- ing, within 20 days from the date of this Order, what steps Ringside Liquors, Inc., d/b/a Dino's Lounge, and Cassell & Freidman, Inc., d/b/a King of Clubs, have taken to comply herewith. ing obligation to recognize and bargain with the Union on a single employer basis remains See Tahoe Nuggett, Inc. dh a'a Jim Kellet's Tahoe Nuggett. 227 NLRB 357 (1976). is In the event that this Order is enforced by a Judgment of a United States Court of Appeals. the words in the notice reading "Posted by Order of the National Labor Relations Board" shall read "Posted Pursuant to a Judgment of the United States Court of Appeals Enforcing an Order of the National Labor Relations Board." 38 Copy with citationCopy as parenthetical citation