Erlich's 814 Inc.Download PDFNational Labor Relations Board - Board DecisionsSep 8, 1977231 N.L.R.B. 1237 (N.L.R.B. 1977) Copy Citation ERLICH'S 814, INC. Erlich's 814, Inc.; Erlich's Northwest, Inc.; Capri Launderers & Dry Cleaners, Inc. and Laundry, Dry Cleaning and Dye House Workers' Interna- tional Union, Local No. 108, affiliated with International Brotherhood of Teamsters, Chauf- feurs, Warehousemen and Helpers of America Erlich's 814, Inc.; Erlich's Northwest, Inc.; Capri Launderers & Dry Cleaners, Inc.; Erlich Cleaning Company and Laundry, Dry Cleaning and Dye House Workers' International Union, Local No. 161, affiliated with International Brotherhood of Teamsters, Chauffeurs, Warehousemen and Help- ers of America. Cases 14-CA-9244 and 14-CA- 9298 September 8, 1977 DECISION AND ORDER BY CHAIRMAN FANNING AND MEMBERS JENKINS AND MURPHY On December 9, 1976, Administrative Law Judge Bernard Ries issued the attached Decision in this proceeding. Thereafter, the Respondents filed excep- tions and a supporting brief. The General Counsel also filed exceptions.' Pursuant to the provisions of Section 3(b) of the National Labor Relations Act, as amended, the National Labor Relations Board has delegated its authority in this proceeding to a three-member panel. The Board has considered the record and the attached Decision in light of the exceptions and brief and has decided to affirm the rulings, findings,2 and conclusions of the Administrative Law Judge to the ' The General Counsel additionally filed. on behalf of all the parties, a motion and stipulation to reopen the record for receipt of additional evidence and stipulation of fact. stating that Respondent, at its location at 6200 Natural Bridge Road, St. Louis, Missouri, employs one counter person or counter girl whose terms and conditions of employment were covered by the collective-bargaining agreement between Respondents and Laundry, Dry Cleaning and Dye House Workers' International Union, Local No. 161, affiliated with International Brotherhood of Teamsters, Chauffeurs, Ware- housemen and Helpers of America (hereinafter called Local 161). The motion is hereby granted and the stipulation received. Based on this additional evidence, we find that Local 161 is the exclusive bargaining representative of all store persons, counter persons, and cleaning production employees at Respondents' facilities at 814 Washington Avenue, 1400 Washington Avenue, 6200 Natural Bridge Road, and 8351 Olive Road, and we will modify the recommended Order and notice accordingly. 2 The Respondents have excepted to certain credibility findings made by the Administrative Law Judge. It is the Board's established policy not to overrule an Administrative Law Judge's resolutions with respect to credibility unless the clear preponderance of all of the relevant evidence convinces us that the resolutions are incorrect. Standard Drr Wall Products, Inc.. 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. :' It is clear from the Administrative Law Judge's Conclusion of Law 8 and provisions in his recommended Order and notice that he intended but inadvertently failed to specifically find that the employees who went out on strike on March 18. 1976, or thereafter, were engaged in an unfair labor practice strike precipitated and prolonged by Respondents' violations of the Act and were therefore unfair labor practice strikers entitled to reinstate- 231 NLRB No. 127 extent consistent herewith, 3 to modify his remedy, 4 and to adopt his recommended Order, as modified herein. 5 Although agreeing with the Administrative Law Judge as to those violations of the Act found by him and affirmed herein, the General Counsel excepts to the failure to find three other separate violations of Section 8(a)(l) of the Act. We find merit in these exceptions. According to the credited testimony of employee Jessie Estes, Respondents' president-owner, Max Erlich, clearly indicated to her during a March 20, 1976, conversation that her March 20-27 workweek schedule would be reduced to only 8 working hours as a result of her union activities. Since Erlich never actually implemented any reduction in Estes' hours for that week, the Administrative Law Judge found no illegality with reference to this specific aspect of the March 20 discussion. We find and conclude, however, that the Respondents violated Section 8(a)(1) of the Act when Erlich threatened Estes with an abbreviated workweek because of her continued union adherence, whether or not the threat was subsequently realized. We further find that Erlich's statement to Estes during the aforementioned conversation that, "Maybe I will have something for you," constituted an unlawful promise of benefit in violation of Section 8(a)(1) as alleged in the complaint, inasmuch as Erlich made the statement immediately after threat- ening to discharge Estes if she refused to withdraw from the Union and in response to her inquiry about what would happen if she did withdraw. We find it ment to their former or equivalent positions upon their unconditional request for such reinstatement. It is clear from the record as a whole that the strike began immediately after the secretary-treasurer for Laundry. Dry Cleaning and Dye House Workers' International Union. Local No. 108. affiliated with International Brotherhood of Teamsters, Chauffeurs, Ware- housemen and Helpers of America (hereinafter called Local 108) ascer- tained that Respondents' president-owner. Max Erlich. had not, as earlier promised, signed a contract with Local 108 because of an alleged but unsupported doubt of the majority status of Local 108. It can, therefore. reasonably be concluded that the strike was caused and prolonged by Respondents' unlawful refusal to recognize Local 108. General Drivers and Helpers Union, Local 622, International Brotherhood of Teamsters. Chauffeurs, Warehousemen and Helpers of America /Rice Lake Creamer), Co.] v. N.LR.B., 302 F.2d 908 (C.A.D.C., 1962). See also Moore Business Forms. Inc., 224 NLRB 393. 408 (1976). 4 In accordance with our decision in Florida Steel Corporation. 231 NLRB 651 (1977), we shall apply the current 7-perccnt rate for periods prior to August 25. 1977, in which the "adjusted prime interest rate" as used by the Internal Revenue Service in calculating interest on tax payments 'was at least 7 percent. -5 The Administrative Law Judge failed to include provisions in his recommended Order and notice which refer to his conclusion that Respondents violated Sec. 8(a)(1) when their owner-president. Max Erlich. informed employee Jessie Estes on March 29, 1976. that she had lost herjob because of her refusal to withdraw from the Union. The General Counsel excepted to this omission. and we will modify the recommended Order and notice to include the appropriate remedial language 1237 DECISIONS OF NATIONAL LABOR RELATIONS BOARD irrelevant that the benefit promised was keeping a job rather than some extra benefit not then enjoyed.6 Estes also testified that on March 27, 1976, Erlich asked her whether she had secured a union with- drawal card. Although the Administrative Law Judge found that the sum of Erlich's statements during this confrontation constituted an illegal threat to dis- charge Estes, he made no specific finding with respect to the withdrawal card inquiry. We find and conclude that Respondents violated Section 8(a)(1) when Erlich coercively interrogated Estes concerning her continuing union membership. ORDER Pursuant to Section 10(c) of the National Labor Relations Act, as amended, the National Labor Relations Board adopts as its Order the recommend- ed Order of the Administrative Law Judge, as modified below, and hereby orders that the Respon- dents, Erlich's 814, Inc.; Erlich's Northwest, Inc.; Capri Launderers & Dry Cleaners, Inc.; Erlich Cleaning Company, St. Louis, Missouri, their offi- cers, agents, successors, and assigns, shall take the action set forth in the said recommended Order, as herein modified: 1. Substitute the following for paragraph l(c): "(c) Threatening employees with discharge or reduced working hours or promising them benefits in order to restrain them from freely exercising their rights to join and assist unions, coercively interrogat- ing employees with respect to their continuing union membership and sympathies, or telling employees that they have lost their jobs because they refused to withdraw from the union." 2. Insert "6200 Natural Bridge Road," between "1400 Washington Avenue," and "and 8351 Olive Street Road." in paragraphs l(e) and 2(e). 3. Substitute the attached notice for that of the Administrative Law Judge. i Chairman Fanning agrees with the Administrative Law Judge that the statement "Maybe I will have something for you" was not an unlawful promise of benefit, but was merely another way of threatening Estes with loss of employment if she did not withdraw from the Union. Erlich originally stated "if you want to work for me, you have to get a withdrawal card from the Union." Clearly, that statement implied that Estes could continue to work for Erlich's only if she did, in fact, withdraw. Accordingly. Chairman Fanning considers Erlich's subsequent statement to Estes to be merely a reiteration of his earlier threat, in the same conversation, that Estes could save herjob only by her withdrawal. APPENDIX NOTICE To EMPLOYEES POSTED BY ORDER OF THE NATIONAL LABOR RELATIONS BOARD An Agency of the United States Government WE WILL NOT discriminate against employees for supporting a union. WE WILL NOT engage in direct bargaining with employees who are represented by a union. WE WILL NOT threaten employees with dis- charge or reduced working hours for supporting a union, and WE WILL NOT promise them benefits to weaken their support for a union. WE WILL NOT question any of our employees about their union membership or sympathies and WE WILL NOT tell employees that they have lost their jobs because they refused to withdraw from a union. WE WILL NOT in any other manner interfere with, restrain, or coerce our employees in the exercise of their right to form, join, or assist unions, to bargain collectively through represen- tatives of their own choosing, or to refrain from such activities. WE WILL, if we have not already done so, offer to reinstate Jessie Estes to a job substantially the same as her former job, without any loss of salary or other rights, and WE WILL make Jessie Estes whole for any loss of earnings she may have suffered, together with interest, because we discharged her. WE WILL, upon request, bargain collectively with Laundry, Dry Cleaning and Dye House Workers' International Union, Local No. 108, affiliated with International Brotherhood of Teamsters, Chauffeurs, Warehousemen and Help- ers of America, with respect to the wages, hours and other terms and conditions of employment of the employees in the following appropriate bargaining unit: All laundry production employees, exclud- ing office and clerical employees, watchmen who perform no production work, store managers or store clerks who do no produc- tion work, and supervisory employees who do not perform production work regularly and consistently in one single operation and who have authority to hire and discharge or effectively recommend such action, working at our stores at 814 Washington Avenue, 1400 Washington Avenue, and 8351 Olive Street Road. 1238 ERLICH'S 814, INC. WE WILL, upon request, bargain collectively with Laundry, Dry Cleaning and Dye House Workers' International Union, Local No. 161, affiliated with International Brotherhood of Teamsters, Chauffeurs, Warehousemen and Help- ers of America, with respect to the wages, hours, and other terms and conditions of employment of the employees in the following appropriate bargaining unit: All store persons, counter persons, and cleaning production employees, excluding office and clerical employees, watchmen who perform no production work, and supervisory employees who do not perform production work regularly and consistently in one single operation and who have authority to hire and discharge or effectively recommend such action, working at our stores at 814 Washington Avenue, 1400 Washington Avenue, 6200 National Bridge Road. and 8351 Olive Street Road. WE WILL, upon unconditional application, offer all employees who went on strike on March 18, 1976, or thereafter, immediate and full reinstate- ment to their former positions or, if such positions are no longer available, to substantially equiva- lent positions, without prejudice to their seniority or other rights and privileges, and WE WILL make such employees whole, plus interest, for any loss of pay they may suffer for our unjustified refusal to reinstate them within 5 days after we receive such unconditional offer. Further, in order to reinstate them to their former or equivalent position, WE WILL, if necessary, discharge any individuals who have replaced said strikers. ERLICH'S 814, INC.; ERLICH'S NORTHWEST, INC.; CAPRI LAUNDERERS & DRY CLEANERS, INC.; ERLICH CLEANING COMPANY DECISION STATEMENT OF THE CASE BERNARD RIES, Administrative Law Judge: A hearing was held in these cases on August 10 and 11, 1976, at St. Louis, Missouri, pursuant to an order consolidating cases, complaint and notice of hearing issued by the Regional Director for Region 14 on June 8, 1976. The complaint I Certain errors in the transcnpt herein have been noted and corrected. 2 Carolina Supplies and Cement Co.. 122 NLRB 88. 89(1958). :' The transcript is somewhat unclear on this, however, Respondent's briel'acknowledges that 1975 gross sales by Erlich's West, Inc.. was $86,180 and b) Erlich's Service Centers, Inc., $258.922 There is a third shoe repair alleges that the named Respondents have violated Section 8(a)(5) of the National Labor Relations Act, as amended, by refusing to sign a written agreement with Local 108 and by negotiating in bad faith with Local 161; and they have further violated the Act by engaging in direct bargaining with an employee, by promising employees benefits if they would withdraw from union membership, by threatening to discharge employees unless the employees abandoned union membership, by reducing an employee's working hours in reprisal for the employee's refusal to withdraw from union membership, by interrogating an employee coercively, by telling an employee that the employee was being discharged for refusal to withdraw from union membership, and by discharging employee Jessie Estes on or about March 29, 1976. The complaint further alleges that a strike which began on March 18, 1976, was an unfair labor practice strike. Briefs have been received from counsel for the General Counsel, Respondents, and Local 161, and have been carefully considered. Upon the entire record' and my observation of the witnesses, I make the following: FINDINGS OF FACT I. JURISDICTION OF RESPONDENTS Much time at the hearing was consumed with litigating the question whether the Board should assert jurisdiction in this matter. The parties have renewed that struggle in their briefs. Max Erlich is the principal shareholder and guiding light of several corporations in the St. Louis area which are engaged in the laundry and drycleaning business. It is out of these operations that the charged unfair labor practices arise. However, the Erlich laundry and drycleaning enterprises do not yield sufficient gross revenues to meet the Board's discretionary standard of $500,000 for retail enterprises.2 Gross sales by the laundry entities involved here amounted in 1975 to about $314,000. General Counsel contends, however, that certain shoe repair operations conducted by corporations controlled by Erlich should be considered as constituting a "single employer" with the laundry and drycleaning operations. The gross revenues from the shoe repair operations amounted to some $399,000 3 in 1975 and, accordingly, melding the gross sales of the two enterprises would amply satisfy the Board's retail standard. Respondent insists, with vigor, that the two sets of operations may not be so combined for jurisdiction- al purposes. The relevant facts are summarized below. Max Erlich has been in the laundry and drycleaning business for some 20 years, operating under the name of various corporations, which had been created and dis- solved occasionally, at various locations in the St. Louis area. While the record indicates that Erlich had an interest in other laundry enterprises in addition to those hereafter discussed, the record centers only on those which relate to the alleged unfair labor practices. Capri Launderers & Dry corporation, Erlich's, Inc., operating in the Stix. Baer & Fuller department store in downtown St. Louis which, as I read the transcnpt, had gross sales of $54,000 in 1975. Since the General Counsel stated, without contradiction. that the total gross sales from the seven entities amounted to $713,000. the gross shoe repair operations indicated in the text must be the correct figure. 1239 DECISIONS OF NATIONAL LABOR RELATIONS BOARD Cleaners, Inc., where Erlich's office is located, operates one laundry and drycleaning establishment at 8351 Olive Street Road. Erlich's 814, Inc., operates one such establishment at 814 Washington Avenue. Erlich's Northwest, Inc., is a two- location corporation, operating establishments at 1400 Washington Avenue and 6200 Natural Bridge. Erlich Cleaning Company is a partnership which, at material times, operated a drycleaning pickup establishment at 916 North Whittier Street. Max Erlich is the majority stockholder of the three named corporations; he and his father are partners in Erlich Cleaning Company. Erlich is president of the three corporations, an individual named Joseph Chused is the vice president of all three corporations, and Erlich's father, Ben, is the secretary-treasurer of all the corporations. Max and Ben Erlich and Chused constitute the board of directors of the corporations. None of the locations discussed above employ a large number of employees; perhaps the greatest number is eight employees at a single location. Erlich Cleaning Company, the partnership, had, for some time before it was virtually closed in March 1976, only a single regular employee. Depending on the size of the employee complement, Erlich has a "full" manager in the location or something close to a manager. While Erlich attempted to convey the impression that the operations were virtually autonomous, he reluc- tantly conceded that the managers consulted with him on "major" decisions and problems. Despite the fact that he had entered into collective-bargaining agreements on behalf of the laundry establishments, he took the position that he does not set labor policy for the stores "in its entirety."4 Erlich also testified that he visited the stores regularly. For some years, as a member of an employer association, Erlich signed several successive collective-bargaining agreements with the Charging Unions on behalf of the employees in all of the locations covered by the agree- ments. Erlich finally conceded 5 that recommendations for merit increases for the employees at the various stores have been made to him by the managers, both orally and by written memorandum. Pat Charles, manager of the 814 Washington Avenue location, testified that Erlich tells her how she is "supposed to operate." While she said that she has the authority to discharge employees and discipline them without consulting anyone, she may have discharged an employee on one occasion only after consulting with "the other managers and Mr. Erlich." Erlich also operates shoe repair enterprises through three corporations. Erlich's Service Centers, Inc., operates six such establishments in six stores of the Famous-Barr department store chain in the St. Louis area, under a lease Erlich was as evasive and untrustworthy a witness as I have seen in some time. He plainly understood the "single employer" issue involved in this case and at every point attempted to deny any operational authority over the managers of these small shops, to the point of stating that, if he instructed a manager to fire an employee and the manager refused to do so, he would do nothing about it: "they probably had a good reason, you have to listen to the manager." Another example of Erlich's dishonesty follows: JUDGc RliS: You mentioned that the managers recommended merit increases for employees and have done so over the years. Those recommendations are made to whom? TitHE wrIINtS: To the bookkeeper. agreement. Erlich's, Inc., operates a shoe repair department under lease with Stix, Baer & Fuller, a local department store, at its downtown location, also under a lease agreement. Finally, there is Erlich's West, Inc., about which the record does not give a clear account. The record shows only that the corporation operates one location at "the West Roads shopping center," but the briefs of both General Counsel and Respondents state that this operation is also located within a Stix, Baer & Fuller store (in "Richmond Heights, Missouri," according to Respondents' brief). Max Erlich is the majority stockholder of these corpora- tions and he, Joseph Chused, and Ben Erlich are again the principal officers of the corporations. As with the laundry corporations, they are also the members of the boards of directors of the three corporations, with the exception of Erlich's West, Inc., in which Erlich's wife owns "almost half the stock" and may be a member of the board. The license agreement between Erlich's Service Centers, Inc. (signed by Max Erlich as president), and the Famous- Barr Company has been in effect at least since October 1970, the date of the agreement which is in evidence. The agreement authorizes Erlich to operate departments "for the sale of shoe repair services, leather repair services, and where space permits, the operation of a dry cleaning 'pick- up' station and all business incidental thereto but for no other purpose or business whatsoever." The lease agreement and the testimony show that Famous-Barr maintains a substantial amount of control over Erlich's operations in its stores. Within the stores, the shoe repair departments do not give any impression of being independently operated. Erlich uses receipts for goods which are marked "Famous-Barr Co. Shoe Service Centers." Famous-Barr retains much authority over the appearance and performance of Erlich's shoe repair departments, and the license agreement states that Erlich shall conduct his business in the departments, "insofar as the public is concerned, under the trade name 'Famous- Barr' and as an integral part of the business of Famous- Barr." Several clauses of the license agreement deal with the matter of employees. While the agreement states expressly that the employees are "to be at all times employees" of Erlich's Service Centers, Inc., it also contains provisions relevant to their tenure and working conditions. Thus, Erlich's may not engage any employee to whom Famous- Barr objects and must "immediately remove from service in the departments, when requested to do so by Licensor, any person to whom Licensor shall object." The agreement further states that "whenever and as requested by Licen- sor," Erlich's will obtain from its employees and prospec- JUDGE RtES: To the bookkeeper? THE WITNESS: Yes. JUDGE RIES: Who is the bookkeeper? THE WITNESS: Me or the bookkeeper. JUDGE RIES: What is meant by me or the bookkeeper? This is a federal proceeding. Mr. Erlich. it is subject to federal laws covering perjury. material misstatements of fact, therefore you should be very careful in the answers that you give. Now, do you want to answer that question again? THE WITNESS: To me. 5 See the preceding footnote. 1240 ERLICH'S 814, INC. tive employees, and submit to Famous-Barr, such informa- tion about those employees as Famous-Barr may reason- ably require from time to time for the purpose of passing on their character and suitability.6 A provision of the agreement stressed by Respondents reads, in relevant part: Licensee agrees to provide in respect of its employees in the departments working hours, vacations, sick leave (it being understood that as respects sick leave, all employees of the departments shall be considered as "new hires" as of the date hereof), bonuses and salaries (including sales commissions if any are paid by Licensee) substantially equivalent to those earned from time to time by comparable employees of Licensor in its own selling departments in Famous-Barr with comparable lengths of service. Licensee shall not be required, however, to provide retirement plan benefits or a group insurance program for the said employees. Employees of Licensee in the departments shall be entitled to the benefits of any and all employee cafeterias in Famous-Barr and to receive services from employee hospitals or clinics, if any, in said stores upon the same basis as such benefits and services are from time to time received by comparable employees of Licensor in its own selling departments in Famous- Barr. All persons employed by Licensee in the conduct and operation of the departments shall at all times be subject to and abide by the same rules and regulations as those promulgated from time to time by Licensor for its own employees and/or employees of other licensed departments. Admitted into evidence is an employee handbook which is issued to employees of Famous-Barr and, according to Erlich, also issued to his employees in the stores. It contains the "rules and regulations" to which the license agreement refers. 8 Erlich testified that, in fact, all hiring was done by the Famous-Barr personnel department. This seems rather dubious in view of the foregoing provision, which appears to contemplate that Erlich will do the hiring subject to such possible investigation as Famous-Barr "ma) reasonably require from time to time." As noted, it is most difficult to believe Erlich in many respects, and I am dubious about Erlich's testimony in this regard. even though it was uncontradicted. Erlich also testified that Famous-Barr had fired two employees in his department before he was even notified of such action. This was not contradicted. Given Erlich's evasiveness and lack of candor, and, in view of the license provision that the licensee shall "immediately remove from service in the departments, when requested to do so by Licensor, any person to whom Licensor shall object," it seems more likely that if there were such discharges, they were done in accordance with the quoted provision. I For jurisdictional purposes, it should be noted, the Stix, Baer & Fuller revenues received by Erlich are not necessary to reach the $500.000 standard: the laundry operations and the Famous-Barr revenues would together surpass that amount. M The record shows the following colloqu): Q. Don't you visit all these places every day? A. Not every day. Q. Is there any of them you don't visit at least a couple times a week? The license agreement between Erlich's, Inc., and Stix, Baer & Fuller is in evidence and is not unlike the one discussed above. The Stix agreement, however, specifically provides that "if any new employees are to be engaged, they shall first be submitted to and passed upon by the employment department of the STORE." That agreement further states that Erlich's "personnel policies, recognition of agents, if any, for the purpose of collective bargaining, and any collective-bargaining agreement, or agreements, shall, so far as may be lawful, in all respects be coordinated with the similar policies, recognition, and agreements of the STORE and shall be subject to approval of the STORE." Erlich testified that he has a "supervisor who goes to all the shoe repair departments." His name is Arnold Lierman and his office is at 1015 South Brentwood, which is a different location from Erlich's own headquarters. The record is less than adequate as to Lierman's functions. Aside from "going to" the shoe operations, the record also shows that Lierman purchases supplies for the shoe businesses. These supplies are paid for by the separate corporations for which they are purchased. Thus, while Lierman, according to Erlich, "works for Erlich's Service Centers," and presumably is paid by that corporation, he also purchases for Erlich's, Inc., and Erlich's West, Inc. The record indicates that Erlich himself visits the shoe establishments as well as the laundry operations.8 Again, Erlich testimonially contended that he exercised virtually no control over the managers of the shoe repair depart- ments in the department stores, a protestation which I find incredible. There is evidence demonstrating a functional and administrative relationship between the laundries and the shoe repair departments. Jessie Estes, a longtime employee of Erlich's, who was employed at the 916 North Whittier drycleaning pickup store until March 1976, when she was terminated, testified that she had worked at the downtown Stix location at the instance of Erlich. Erlich denied that Estes or any of the other laundry and drycleaning employees had ever been sent to work at the shoe repair locations, but I found Estes to be a totally credible witness and I accept her testimony.9 A. Not always. Q. What places don't you visit a couple times a week? A. About half of them. Q. Do you visit all of them at least on a weekly basis? A. Not always. While the immediately preceding testimony had included references to the shoe repair operations as well as the laundry operations, and Erlich had, moments before, been asked if he was "responsible for the day to day operation of all those corporations," I am not entirely sure that Erlich understood the questions about visiting "all these places" and "all of them" to refer to the shoe repair operations as well as the laundry operations, in view of subsequent testimony which seems to indicate that he may have been focusing only on the laundry establishments. However, the record clearly lends itself to the construction that he was refemng to both shoe repair and laundry enterprises. Furthermore, having observed Erlich. a rather vital man, I cannot believe that he restricted his visits to only the handful of laundry and dry cleaning outlets, and did not personally oversee his more lucrative investments, the shoe operations. 9 How often Estes worked at the Stix store is debatable. General Counsel uses the term "frequently" in his bnef. I am not sure that Estes' testimony admits of such a construction but that testimony. set out below, suggests (Continued) 1241 DECISIONS OF NATIONAL LABOR RELATIONS BOARD The record also shows that at the Erlich's West shoe repair location (as indicated above, described in Respon- dents' brief as "located at Stix, Baer & Fuller store in Richmond Heights, Missouri"), there is a laundry and drycleaning pickup station operated in connection with the shoe repair business. The laundry and drycleaning left at the Erlich's West location is processed by Erlich's Capri Launderers. Erlich testified that there is no written contract underlying this relationship; reimbursement is based on "a fair percentage of the sales." 10 Erlich also testified that, at the 6200 Natural Bridge laundry location, he operates a shoe repair establishment which he has leased from another company. Finally, paychecks for employees at all loca- tions, both in the shoe repair business and in laundry and drycleaning, are prepared by a bank, pursuant to a contract between the bank and Erlich. In Radio & Television Broadcast Technicians Local Union 1264, etc. et al. v. Broadcast Service of MoJile, Inc., 380 U.S. 255, 256 (1965), the Court described the factors relevant to a determination of"single employer" as follows: The controlling criteria, set out and elaborated in Board decisions, are interrelation of operations, com- mon management, centralized control of labor relations and common ownership. No one of the four criteria is dispositive, N.L.R.B. v. Welcome-American Fertilizer Company, 443 F.2d 19, 21 (C.A. 9, 1971). Nor do all of the criteria have to be present. For example, even though common control of labor relations policy has often been emphasized, e.g., Gerace Construction, Inc., 193 NLRB 645 (1971), the Board has held that ". . . the presence or absence of a common labor relations policy is not conclusive in determining whether separate legal entities constitute a 'single employer' for jurisdictional purposes. The fact that the record does not show that Carp or any official of Carp's, Inc., personally intervenes in labor relations matters of the 25 corporations is relevant, but not decisive. The Board has on several occasions made a finding of a single employer status in the absence of evidence of a common labor relations policy, and has found two corporations to be single employer even though it was affirmatively shown that each corporation established its own labor relations policy." Canton, Carp's, Inc., 125 NLRB 483, 484 (1959). Similarly, the Board has found two corporations to constitute a single employer despite a demonstrable lack of operational (i.e., horizontal) integration between the actual business enterprises being that she did it more than once: Q. (By Mr. O'Shea) Ms. Estes, did Mr. Erlich ever have occasion to send you personally to work down at Famous-Barr? A. No, I worked at Stix. Q. You went to Stix from downtown? A. Yes. Q. What did you do at downtown Stix? A. Taking shoes. You know, the customers come in, I wnte up their order on whatever they want done to the shoes. I take it to the shoemakers. Sometimes it was a wait on and sometimes it was a pick up later. Q. How long ago was that? A. They stopped working there in December a year ago, it was. Ever since he had had it, I was floating around to all the Targets and the Gem Stores and everything. When I got through up on Whittier I conducted. Cockatoo, Inc., 145 NLRB 611 (1963); D. H. Overmyer Co., Inc., 190 NLRB 341 (1971); The Catholic Bishop of Chicago, A Corporation Sole, 220 NLRB 359 (1975). Given the generality of the foregoing guidelines-that there are four controlling criteria, none of which is conclusive, and not all of which need be present-it must be said that the determinations in this area have been, in the past, somewhat impressionistic. This, I hasten to add, is not to fault the Board, for the subject is a complicated one, but it is difficult to find in the decisions a unifying policy objective which would illuminate the manner in which the criteria should be weighed, or indicating whether, as might be argued, the factors should be weighed differently depending on the purpose for which the determination of "single employer" is being made." The impact of a labor dispute at one of the corporate employers upon the operations of the other might seem to be a useful standard, but the Board appears to have mentioned this only in passing in occasional cases, see Piedmont Wood Products Co., Inc., 156 NLRB 151, 152 (1965), Kennecott Copper Corporation, 99 NLRB 748, 751 (1952). And there are many cases in which it is obvious that the existence of a labor dispute at one of the operations would have had no direct effect on the other but in which the Board nonetheless found a single employer relation- ship. In addition to those earlier cited, see, e.g., V.I.P. Radio, Inc., 128 NLRB 113 (1960); G. E. Tyner and A. Petrus, Partners, d/b/a/ Tyner-Peters Co., 81 NLRB 380 (1949); American Theatre Corporation, d/1/a Pussycat Theatre, etc., 220 NLRB 295 (1975). Indeed, in Central New Mexico Chapter, National Electrical Contractors Association, Inc., 152 NLRB 1604, 1608 (1965), where the Board found "ample evidence" to support the conclusion that two separate corporate entities constituted a single employer under the Act, it nonetheless refused to find an employerwide bargaining unit appropri- ate, "particularly in view of the separate supervision of employees of the two firms, their separate location, the lack of employee interchange, the absence of evidence showing functional integration, and the fact that the labor policies of NMECO, a residential contractor, are based on its own needs and are not dependent on those of Gamblin, a commercial and industrial contractor .... " Respondent argues that the lack of interrelationship of operations between the laundry enterprise and the shoe repair enterprise should be decisive in this case. As discussed above, however, the record discloses that the two would get on the truck and go to another store, or I would catch the bus and go downtown. Q. Were there other people that you worked with that did the same thing? A. Marlene. Q. Wasshea memberof 161? A. Yes, she was. i0 It should be noted that the license agreement between Erlich and Famous-Barr provides for "where space permits. the operation of a dry cleaning 'pick-up' station and all business incidental thereto .... " Thus, express provision has been made for an integration of Erlich's drycleaning operations into his shoe repair operations at Famous-Barr. " See, e.g., Royal Typewriter Company, etc., et al. v. N. LR.B., 533 F.2d 1030, 1043 (C.A. 8, 1976). 1242 ERLICH'S 814, INC. enterprises are functionally and operationally related. Erlich has sent employee Estes, and perhaps another employee, from a laundry operation to work at a shoe repair establishment. The Erlich's West shoe operation (of which Max Erlich is president and majority stockholder) has an unwritten agreement with Capri Launderers (of which Max Erlich is president and majority stockholder) under which Erlich's West performs a pickup service on behalf of Capri and reimbursement is based on "a fair percentage of the sales." As the Board noted in Overton Markets, Inc.; et al., 142 NLRB 615, 619 (1963), this is a circumstance "not . . . characteristic of the arm's length relationship found among unintegrated companies." In addition, in contrast to some of the cases earlier noted in which the Board has found a single employer despite the lack of potential impact on one entity of a labor dispute at another, here such a dispute at Erlich's West could have a direct adverse affect on the business of Capri, and vice versa. As also set out above, the wages of employees of all the corporations are paid under a banking arrangement entered into by Erlich on behalf of all the corporations. The fact that the two enterprises do not operate hand in glove has been held to be a matter of little moment, as in Central New Mexico Chapter, supra, where the Board found a single employer relationship despite the "absence of evidence of functional integration." This same holds true in a number of cases, some cited above, and another good example of which is The Family Laundry, Inc., etc., 121 NLRB 1619 (1958). In Family Laundry, members of the Maslow family owned a majority of the stock in, and were the officers and directors of, a group of 15 corporations engaged in .8 States in the laundry and linen supply business. A union sought to represent the employees of two of the corporations in Maine, which themselves did not meet the jurisdictional standard. There was no evidence of horizontal integration of operation of the laundries, each of which "operated independently of the other local corpora- tions." However, the Board, tracing back the centralized authority vested in one of the members of the Maslow family, who traveled to Maine "several times yearly" to supervise the two laundry businesses there, and relying on other indicia of central control from the New York office, held that the laundry units in the State of Maine were, together with the other corporations, a single employer, and that jurisdiction should be asserted over the Maine corporations.12 Common ownership is undisputed here; Max Erlich owns the majority of the stock in all the laundry and shoe repair corporations. With one possible exception, the officers and the board of directors for each of the corporations are identical. I think it is also clear that the active management of all the enterprises is centralized and resides in the person of Max Erlich. There can be no doubt that Erlich is in direct charge of the laundry and drycleaning establishments; his office is located at the address of the Capri Launderers & Dry Cleaners, and he 12 In an advisory opinion, Swift Cleaners, Inc.. etc., 191 NLRB 597 11971). the Board thought it "reasonable to assume." citing Family Laundr)y that three corporations, operating laundry and drycleaning establishments and a men's clothing store, could constitute a single employer for jurisdictional purposes. i:' The record indicates that Erlich also operates cleaning and shoe repair goes to these stores with some frequency. I think it is also free from doubt that Erlich personally exercises active supervisory authority over the shoe repair enterprises. Although he seemed to imply that the supervision of these establishments was left to Arnold Lierman, who "goes to" the shoe repair locations, Erlich also, as I have found, visits these places. As noted above, it appears that, in 1975, Erlich's, Inc., had gross sales of about $54,000, Erlich's West, Inc., had gross sales of some $86,000, and Erlich's Service Centers, Inc., had sales of some $259,000, for a total of $399,000. Thus, the gross revenues of the shoe repair operations exceeded those of the laundry and drycleaning enterprises involved here by some $85,000 in 1975.13 After studying this record and having observed Erlich at the hearing, as well as having given proper regard to the indisputable human instincts implicated here, I cannot believe that Erlich would not pay the closest personal attention to the aspect of his enterprises which produces the greatest amount of income, and I refuse to believe that Arnold Lierman, who did not testify at the hearing and whose duties are only vaguely described, has been delegated any kind of close supervisory authority over the shoe repair operations to the exclusion of Erlich. I believe the same inference may be drawn regarding the factor of the centralized control of labor relations. Before he withdrew recognition from the two Charging Parties here in 1975, Erlich, as a member of an employer association, had participated in collective-bargaining nego- tiations 14 and had signed agreements on behalf of the laundry enterprises. The record shows, as Erlich finally admitted, that managers of the laundry stores make recommendations for merit increases directly to him, both orally and in writing. It further shows, as discussed, that he personally transferred an employee from one store to others. In addition, striking employee Ella Sykes testified, without contradiction, that in December 1975, Erlich came to her place of employment and personally told the employees that he was giving them a 10-cent raise. To the extent that any major policy decisions with respect to labor relations and personnel policies are necessary at the shoe repair operations, I am quite confident that they are made by Erlich. Respondent argues, however, that "Max Erlich has little, if any, power to control labor relations" at the Stix, Baer & Fuller and Famous-Barr locations. It is true that the license agreement between Erlich and Famous-Barr reserves considerable control over the behavior standards to be applied to Erlich's employees in Famous-Barr. However, it appears to me that Erlich's agreement to provide wages and benefits to his employees which are "substantially equivalent" to those earned by employees of Famous-Barr is nothing more than an attempt to maintain "area standards" in the stores. There is certainly no reason to believe that Erlich could not provide greater benefits than those being received by Famous-Barr employees.'5 It is clear that there is room within the license agreement for businesses at other stores in the area. but no details were adduced as to these operations. 14 Horton, of Local 161. testifed that Erlich had served as a member of the employer association bargaining committee. is The license agreement, sec. 10.2. states that Erlich "shall not be required, however, to provide retirement plan benefits or a group insurance (Continued) 1243 DECISIONS OF NATIONAL LABOR RELATIONS BOARD exercising discretion in the treatment of employees, and I think it unquestionable that Erlich is the one who exercises that discretion.' 6 Had Erlich created just one corporation to perform the laundry and shoe repair services he is now providing, instead of setting up the "mere shells" (American Theatre Corporation, 220 NLRB 295, 297 (1975)) which he has erected and dissolved over the years, we are told by Acme Paper Box Company, 201 NLRB 240, 241 (1973), that there would be no question that a single employer entity existed ("However, for the purposes of determining jurisdiction where there is only a single corporate entity involved, as here, conducting different operations, even though such operations are not integrated and or of a different nature, the totality of the employer's operations are considered for jurisdictional purposes."). Accord, Emil Denemark, Inc., 120 NLRB 1059 (1958). The fact that Erlich has created these "mere shells" 17 should not preclude a determination that what we deal with here is essentially a single enterprise, guided and controlled by a single personality, with a single labor relations mind-set. Together with the evidence of intimate intercorporate dealings, such as the informal agreement between Erlich's West and Capri Launderers, there is ample basis for the Board to conclude that its discretionary standard, for what Respondents refer to as the "limited purpose" of asserting jurisdiction, has been met in this case. 18 II. THE LABOR ORGANIZATIONS INVOLVED I find, despite Respondents' challenges thereto, hereafter discussed, that Laundry, Dry Cleaning and Dye House Workers' International Union, Local No. 108 and Local No. 161, affiliated with International Brotherhood of Teamsters, Chauffeurs, Warehousemen and Helpers of America, are labor organizations within the meaning of Section 2(5) of the Act. III. THE ALLEGED UNFAIR LABOR PRACTICES A. The Alleged Violation of Section 8(a)(5) With Respect to Local 108 Local 108 represents laundry production employees. For some 20 years, Erlich's corporations have executed collec- tive-bargaining agreements on behalf of the laundry production employees with Local 108 through the St. Louis program for the said employees." Thus, while Erlich is not required to provide such benefits, it is clear that he is free to do so. This is undoubtedly true of many other benefits which could be conferred upon employees. In Duane's Miami Corporation, 119 NLRB 1331 (1958), the Board found the employees to be employees of the licensee, despite a provision requiring the licensee to conform to "minimum standards established by the licensor with respect to earnings, hours, and other basic conditions of employment." And in HerJerl Harvey, Inc., 171 NLRB 238 (1968), the test of assertion of jurisdiction was whether the contractor retained sufficient control over employment conditions to permit effective bargaining with a union. i' That Erlich regards himself as the direct employer of his shoe repair employees at the Famous-Barr stores is suggested by his testimony that the employee manual in evidence is given by Famous-Barr to "any new employee they send to me." " The sheerness of these particular corporate veils is indicated by a letter written by Erlich to Jessie Estes on the letterhead of"Erlich's West Laundry & Cleaning Co.," listing the address of that entity as "8351 Olive." The record indicates that "Erlich's West" is only in the shoe repair business, and Dry Cleaners Exchange, an employer association. The last such agreement bore an expiration date of November 30, 1975. Prior to September 1975, Local 108 gave notice to the Exchange that it intended to terminate the existing agreement. On September 25, 1975, Erlich sent a letter to Local 108 stating that he also desired to terminate the agreement and that he intended to negotiate with Local 108 on an individual basis. He asked the Union to contact him "so that we may arrange for a mutually acceptable date for the purpose of negotiating a new agreement." According to Thomas W. Smith, secretary-treasurer of Local 108, after negotiations with the Exchange had begun, Smith, around December 10, 1975, called Erlich to inquire about negotiating separately with him. Erlich replied that "he wanted to wait and see what they done downtown." A few days after negotiations with the Exchange were concluded on January 9, Smith called Erlich and told him about the contractual changes which had been effected by the Exchange agreement.' 9 He asked if Erlich was ready to sign the contract. Erlich told him to put a copy in the mail "and let him read it over." Smith testified that "Mr. Erlich wanted to, for us to get the rest of the members signed and he said as soon as they signed that he would sign the contract." He also asked, however, that a copy be sent to him to "read it over first." Shortly before March 15, the Exchange contract was signed by the employers who had not dropped out of the Exchange.2 0 On March 15, Smith, together with Roy Suaraz, the president of Local 108, and Emeilo Horton, the secretary-treasurer of Local 161, went to the Capri location and talked with Erlich. Erlich arranged to have lunch with Smith and Suaraz the next day. At that lunch meeting, Erlich said that he could not afford the increase in the pension and welfare benefits negotiated by Local 108 with the Exchange. He also told Smith that he was thinking about closing one of the stores; asked Smith "how much it would take for [Smith] to forget to sign a contract";21 and "mentioned that the members at his plant did not want to belong to the union." Erlich "said he would be in touch with me." Smith said that if he did not hear from Erlich that evening he was going to call a strike. That afternoon, Smith received some erroneous informa- tion that Erlich was going to sign the agreement. This misapprehension was corrected on March 18, when Smith ascertained that Erlich had not signed the contract. On that the address given is that of Capri Launderers. In addition. Eleanor Hoffman, manager of the Capri operation on Olive Street Road, identified herself as an employee of "Erlich's West Laundry." Similarly, Pat Charles, manager at 814 Washington, nominally owned by Erlich's 814, Inc., described herself as an employee of "Erlich's Cleaning Company," which, according to the record, operates only the 914 North Whittier location. Erlich himself was quite unsure of the names of the corporations and their holdings at the hearing. is The record adequately establishes legal jurisdiction. based on indirect inflow. '9 That agreement was reached in January, but was not formalized until March. 20 Most apparently had decided to negotiate individually. 21 Erlich's testimonially weak denial of this remark and his admitted failure to have been incensed at what he testified was a misconstruction by Smith of his remark lead me to believe that he did in fact attempt to bribe Smith. 1244 ERLICH'S 814, INC. day, he went to the 1400 Washington Avenue location, where Erlich was present, and told Erlich that the Union intended to strike. Picketing, by both Local 108 and Local 161, then began at 1400 Washington Avenue and eventual- ly moved to Erlich's locations at 814 Washington Avenue and Olive Street Road. The picketing ended about 6 weeks later. The complaint alleges that Respondents violated Section 8(a)(5) by refusing, since on or about March 16, 1976, "to sign a written agreement . . . agreed upon between said Respondent Laundry and Local 108." The General Counsel thus relies on the testimony of Smith that Erlich had promised that "as soon as [the other members of the Exchange] signed that he would sign the contract." Erlich, in effect, denied ever promising to sign the Exchange agreement. He testified that when Smith called him, sometime in January or February, described the Exchange agreement, and asked if Erlich would go along with it, he told Smith "I want to think about it." He again said this to Smith when he met with him on March 16. Although Smith appeared to be an honest witness and Erlich precisely the opposite, I am inclined to believe that Erlich's version more accurately captures the January conversation between the two men. Since Erlich had gone to the trouble, on September 25, 1975, of withdrawing from the association and expressing his desire to engage in individual bargaining, it seems unlikely to me that he would have told Smith in January that he would sign the association contract as soon as the other members of the association signed. In my judgment, Erlich, a devious and untrustworthy person, probably couched his reply in such a manner that Smith may have misconstrued its intent, but I doubt that Erlich simply committed himself without reservation to sign the Exchange agreement. There is more to the case, however. At the hearing, counsel for Respondents announced that "there was withdrawal of recognition at the meeting with Mr. Smith on [sic] March . . ." The same contention was impliedly made at the hearing and is reasserted in Respondents' brief, with respect to Local 161. The contentions thus necessarily concede a refusal to bargain with the two Unions.22 The bases for the withdrawal of recognition were described at the hearing as multiple: that "this union is not a union"; that the Union "does not and never has represented a majority of the employees"; and that there were "objective considerations which gave rise to reason- able basis for good faith doubt of majority status." 22 Respondents' position is a melange of contentions, described by counsel at the hearing as "a little bit of a mixed bag." 2.: The record indicates that Erlich shamelessly lied about the origin of this petition. The petition, captioned "We do not wont to be lone to loicol 108 [sic ] any more," and signed by three employees of the Olive Street Road location, where Erlich's office is located, and three employees of the 814 Washington Avenue location, was said by Erlich to have appeared on his desk one morning when he arrived at work and was, in its present form, "definitely" the way he found the document. He testified that he had no knowledge as to how the petition traveled from one facility to another. However. Eleanor Hoffman, Erlich's manager at Olive Street Road, subsequently testified that she found the petition lying on her desk in January and that she gave it to Erlich. She said she was "positive" that at the time she gave it to Erlich there were only three signatures on it. It is thus obvious that Erlich was instrumental in moving the petition from Olive Street Road to 814 Washington, contrary to his testimony. In making the argument that Respondents had a good-faith basis for a doubt of union The contention that "this union has never, during the course of the recent contract, represented the employees within the meaning of the Act" is grounded on some vague and imprecise testimony by Erlich and two of his managers that they had heard grumbling among the employees about the representation given to them by the Unions and that union representatives had seldom, if ever, visited the stores or processed any grievances. The same sort of evidence is relied upon to argue that Erlich had a good-faith doubt of majority support as of March 1976; in addition, a petition purportedly signed by six employees represented by Local 108 was introduced into evidence by Respondent. 2 3 There is no basis in the record for concluding that Local 108 abandoned the employees it represented during the term of the last contract. There is equally little basis for concluding that Erlich had a good-faith doubt based on objective considerations that Local 108 represented a majority of the employees in the unit. Putting aside the suspect petition, discussed above, the unspecific testimony of the two managers, to the effect that they had been regularly, and for several years, communicating to Erlich the fact that employees were disenchanted with the Unions, obviously had given rise to no doubt of majority status in Erlich's mind as of September 25, 1975, when he wrote to both Unions asking them to contact him so that arrangements could be made "for a mutually acceptable date for the purpose of negotiating a new agreement." 24 Although, as indicated, Respondents' counsel stated that Respondents withdrew recognition at the meeting with Smith, Erlich testified that he told Smith "I want some more time to think about it." However, I feel that I must accept counsel's representation that Respondents have withdrawn recognition from the Union. Given that statement of position, I conclude that there was no basis for taking such action. Accordingly, while I cannot find that Respondents, as charged, violated the Act by refusing to honor an agreement to sign the collective- bargaining contract, I do find that by withdrawing recognition from Local 108 on or about March 16, 1976, Respondents violated Section 8(a)(5) of the Act. B. The Alleged Violation of Section 8(a)(5) With Respect to Local 161 Local 161 has represented a unit of "all store girls, counter girls and cleaning production employees" of Respondents' drycleaning operations. On September 25, majority, Respondents' brief, demonstrating a certain sense of grace. makes only passing reference, in a footnote, to the petition, although an argument could be made that the six signatures constituted a majority of the employees represented at the various stores by Local 108 (this, however, is unclear; while Erlich testified that he had a total of only nine Local 108 employees, three at each of three locations, Manager Pat Charles testified that she had four employees performing Local 108 work at her store, as did Manager Eleanor Hoffman). 24 Erlich testified that he sent these letters to the Unions because "I realized that most of my people were unhappy with the situation, with belonging to the Union." This non sequitur is characteristic of Erlich. who exhibited unfettered willingness to conform his testimony to the needs of the litigation. It is obvious that, if an employer truly believed that "most of my people were unhappy with the situation," he would not have sent letters inviting the negotiation of new agreements: his letters would have, at that point, withdrawn recognition. 1245 DECISIONS OF NATIONAL LABOR RELATIONS BOARD 1975, Erlich sent Local 161 a letter identical to that sent to Local 108, requesting individual bargaining. Emeilo Horton, the secretary-treasurer of Local 161, testified that, after receiving Erlich's letter, he called him and finally made contact with him "after two, three, four calls," between October and January. When he finally spoke to Erlich in January, Erlich told Horton that he had to leave town and would be gone for some 10 days and "maybe we could get together when he came back." "Somewhere between January and February," Horton happened to run into Erlich on the street. He asked Erlich when they were going to confer about the contract. Erlich said, "Well, I don't know when we are going to get together." Erlich exhibited indecision about whether he would sign the Exchange contract which had been negotiated with Local 161 and Horton told him that the only alternative contract he had available was the indepen- dent contract: "If you are independent the contract goes up more." Erlich told him that he had seen the independent contract and he was not going to sign it. Horton testified that thereafter he tried to call Erlich "about five or six times," leaving his name each time, but Erlich never called back. On March 18, Horton was contacted by Smith of Local 108 with the news that Erlich was not going to sign a contract. He joined Smith and went to several of Erlich's establishments to call his members out on strike. He saw Erlich at 814 Washington, at which time he asked Erlich why he had not signed the agreement. Erlich said, "I'm not going to let somebody push me into something I don't want to go into." Erlich denied having received any messages that Smith had called him. I credit the testimony of Horton, a most impressive witness, and I infer that Erlich deliberately made himself unavailable to Local 161 in its efforts to negotiate a new bargaining agreement. The complaint alleges that since on or about March 16, 1976, Respondents have been negotiating with Local 161 "in bad faith and with no intention of entering into any final or binding collective-bargaining agreement." It is apparent, from statements made by counsel for Respon- dents at the hearing and in their brief, that Respondents are taking the same position with regard to Local 161 as they have with respect to Local 108: viz, that Local 161 "is not a union" and that Respondents have withdrawn recognition from Local 161 because of a good-faith doubt based on objective considerations which caused them to believe that Local 161 did not represent a majority of the employees in its bargaining unit. There is no more warrant in the record for these contentions with respect to Local 161 than there is with respect to Local 108. And since it is clear that any claim of a perceived loss of majority was asserted after Respondents engaged in bad-faith stalling tactics, the claim, not being asserted in a context "free of unfair labor practices," may not be properly advanced here. Bartenders, Hotel, Motel and Restaurant Employers Bargaining Association of Pocatello, Idaho, 213 NLRB 651 ', Contrary to the complaint allegation that Respondents' bad-faith bargaining commenced "on or about March 16, 1976," the record indicates that Erlich's avoidance of his bargaining obligation began sometime in January. when he first failed to return Horton's telephone calls. However. the General Counsel has not sought to amend the complaint to reflect an earlier date, and I shall consider the evidence only as indicative of Erlich's overall bad faith. (1974). I reject the attacks made on the majority status of Local 161 and on its status as a labor organization. I conclude, accordingly, that Respondents have violated Section 8(a)(5) of the Act by their refusal to bargain with Local 161.25 C. Violations With Respect to Melvin Jones As of March 1976, Melvin Jones had worked for Erlich for about 25 years. In March, Jones was employed at the Capri Launderers location at Olive Street Road. He lived in some accommodations at 916 North Whittier Street, where Erlich operated a drycleaning pickup store. Accord- ing to Jones, on March 18, after the strike started, Erlich called Jones and asked him if he knew about the strike. When Jones said that he did, Erlich asked him what his plans were. Jones, a member of Local 161, replied that he would have to go along with the Union. Jones was customarily picked up by an Erlich driver at the Whittier Street location and taken to the Olive Street Road store. On March 19, the driver did not show up. Jones called Erlich and asked what had happened to the driver.26 Erlich told him there was no use picking him up since Jones was not going to work. Erlich further "told me that if I would get a withdrawal card he would put me on a Blue Cross, Blue Shield work plan and I could come back to work and I would have a job." Erlich also proposed that Jones take over the 916 North Whittier store at "a 20 percent on the dollar basis." Jones refused. Erlich denied making any statements to Jones about getting a withdrawal card from the Union or furnishing Jones with Blue Cross, Blue Shield benefits. He testified that, maybe "6 or 9 months" before the strike, he offered to let Jones to take over the Whittier location on a "whole- sale" basis. I credit the testimony of Jones, who appeared to be a most trustworthy witness. I think General Counsel is correct in contending that the offer to provide Jones with insurance benefits and a job if he would withdraw from the Union constituted both direct bargaining in violation of Section 8(a)(5) and an unlawful promise of benefits in violation of Section 8(a)( ), and I so find. D. Allegations Relating to Jessie Estes Jessie Estes worked for Erlich at various locations operated by him from 1952 to March 27, 1976, when her employment came to an end. Her last place of employment was Erlich's store at 916 North Whittier Street; she worked there and also "floated around." It appears that she was the only regular employee at the Whittier Street location, although evidently another employee occasionally worked there. According to Estes, on March 20, 2 days after the strike had begun, Erlich and his son Bruce came into the North Whittier Street store. Erlich said, "Well, this is it. Next Saturday for sure I am closing this store and if you want to 26 Jones explained at the hearing that, while he intended to go on strike, he would not do so before the Union told him that he should strike. Accordingly, his intention was to enter the Olive Street Road premises and work "until somebody pulled me out." 1246 ERLICH'S 814, INC. work for me you have got to have a withdrawal card from the Union. I am not going to have anybody working for me in the Union." Estes asked where she would work if she got a withdrawal card. Erlich said, "Maybe I will have something for you." Erlich's son had with him two signs, one of which read, "From 9 to I on Wednesday," and the other, "From I to 5 on Saturday." Erlich indicated that the store would be open only those hours. Estes pointed out that the schedule amounted to only 8 hours a week. Erlich said, "Well, that is all I am offering." Estes told him that she could not accept the offer. Up to that time, Estes had been working a schedule of 7 a.m.-5 p.m. on Monday, Wednesday, and Friday, and 7 a.m.-2 p.m. on Tuesdays and Saturdays, the store being closed on Thursday. Before leaving, Erlich told Estes that "the next Saturday, which was the 27th, would be my last day if I didn't get a withdrawal card." On the following Saturday, March 27, Erlich came into the store. He asked Estes, "Did you get it?" Estes replied that she had not. Erlich said, "I figured that. You are sympathizing with the Union." Estes replied, "I am not sympathizing with anybody. You are only offering me 8 hours a week." Erlich said, "That is more than what the Union is going to give you. They are offering you nothing." Estes reiterated that she was not going to work 8 hours "when I have been with you all these many years." Erlich then suggested that Estes take over the location "on a commission" of 20 cents on the dollar, which Estes refused. He then proposed that she take over the store "as a wholesale customer." Estes "told him that he was pulling something, that he would have me out of business like he did Lois, in less than a month's time." Subsequently, Estes told Erlich that she would "think about" his proposition. However, on Monday, March 29, she called him and said that she did not want the place. She also told him that she had given the keys to another employee. Erlich said, "You know you don't have a job." Estes replied, "That is o.k. You said that the 27th was my last day and that is what I am holding you to. The cash register is cleaned out and [the truck driver] has the keys and all the receipts." On June 28, 1976, after the complaint had been issued in this case, Erlich sent Estes a certified letter offering her employment at his Olive Street Road store and stating in part: We have received notification from the National Labor Relations Board that you apparently believe your employment was involuntarily terminated at the 916 North Whittier store location. This is contrary to my understanding and knowledge of the facts relating to your termination, which was that you voluntarily quit since you did not wish to operate the store under a lease arrangement. At that time, in March of this year, you advised me that you preferred to discontinue your employment rather than transfer to another location. Erlich testified that he had been trying to sell or lease the Whittier Street location for several years because it was not doing much business, testimony which was confirmed by Estes. Erlich also testified that he had on "several 27 Erlich testified that he knew Estes had been a member of Local 161 because he deducted dues from her salary. occasions" made an offer to Estes, as he had to Jones, to take over the Whittier Street store. Estes' testimony suggests that Erlich had indeed made such a proposition to her prior to the strike. However, Erlich further testified that the last time that he made such a proposal to Estes was perhaps 10 days prior to the strike, at which time Estes said that she would accept the proposal. He testified that he had no conversation with Estes subsequent to the prestrike conversation about her taking over the store. According to Erlich, Estes worked after the strike began and then he received the keys from her through an intermediary. He assumed that the receipt of the keys meant that she had decided against operating the store under a lease arrange- ment. He had no "further conversation with her about this wholesale takeover of the property," the reason being that "it was evident that she didn't want it, she sent the keys back." Erlich denied ever asking Estes to get a withdrawal card from the Union and denied ever discussing the Union with her. The demeanor of Jessie Estes was enormously impressive and I credit her testimony in full. Although, as indicated, Erlich testified that he had "no further conversation" with Estes subsequent to the conversation allegedly occurring 10 days before the strike started in which Estes agreed to take over the store, his letter of June 28, 1976, refers to a conversation "in March of this year, [when] you advised me that you preferred to discontinue your employment rather than transfer to another location." Based on the foregoing findings of fact, I conclude that Erlich's statement to Estes on March 20, 1976, that he was going to close the store on the following Saturday "and if you want to work for me, you have got to have a withdrawal card from the Union. I am not going to have anybody working for me in the Union," constituted a threat to discharge Estes unless she withdrew from membership in Local 161.27 General Counsel contends that a separate violation should be found, based on that same conversation, with regard to Erlich's answer to Estes' question as to where she would be working if she did get a withdrawal card-"maybe I will have something for you." I do not think that this is an unlawful promise of benefit, as asserted by the General Counsel; it seems, rather, simply another way of threatening Estes with loss of employment if she did not withdraw from the Union. The complaint further alleges that Erlich reduced Estes' working hours "in retaliation for [Estes'] refusal to withdraw from member- ship in Local 161." The record does not support a finding that there was an actual reduction of working hours as of, and after, March 20. It does not appear from the testimony that the signs which were brought in on March 20 to indicate that the store hours would be cut to 8 hours a week were posted at that time or that Estes' working hours for the week of March 20-27 were reduced. I would therefore recommend dismissal of the latter two allegations of the complaint. As to the March 27 conversation, I conclude that when Erlich asked Estes if she had secured the withdrawal card and then accused her of sympathizing with the Union, coupling these statements with an offer to Estes to take 1247 DECISIONS OF NATIONAL LABOR RELATIONS BOARD over the store, he made it clear that her continued adherence to the Union would result in the closing of the store which afforded her present employment, in violation of Section 8(a)(1) of the Act. As to the March 29 conversation, I find that, when Erlich told Estes, "You know that you don't have a job," he was reiterating, as both fully understood from the context of their previous conversations, that her refusal to withdraw from membership in Local 161 was the basis for her failure to retain employment with the Erlich enterprises. This constituted a violation of Section 8(a)(l). It is obvious from the foregoing that the termination of Estes on March 27, 1976, resulted directly from her refusal to abandon the Union. The fact that Erlich had been attempting to get rid of the North Whittier Street location for several years, but only took drastic action in conjunc- tion with the strike, at which time he suddenly decided to reduce the number of hours the store was open, clearly indicates a relationship between the virtual closing of the .store and the union activities of the employees. Had there not been a strike, it seems clear that the store would have continued operating even under the adverse financial conditions which had been facing Erlich for years, if Estes had agreed to withdraw from the Union.25 Furthermore, Estes' refusal to withdraw from the Union and Erlich's antagonism toward her for "sympathizing with the Union" were, as Erlich indicated to her, the obstacles to her being placed in other employment. As noted, once the complaint issued in this case, Erlich offered Estes a job in his Olive Street Road store. It is clear that in normal circumstances, such an offer would have been routinely made to an extremely valuable employee such as Estes, with some 24 years seniority, even assuming the legitimacy of the reduction of hours at the Whittier Street location.2 9 Erlich's failure in March to make such an offer, particularly when some of the employees at the other stores had gone out on strike and vacancies had occurred, strongly implies that Erlich's refusal to attempt to place Estes elsewhere was a product of her adamance about resigning from the Union. I conclude, therefore, that the termination of Estes on March 27, 1976, was violative of Section 8(a)(3) of the Act. CONCLUSIONS OF LAW 1. Respondents Erlich's 814, Inc.; Erlich's Northwest, Inc.; Capri Launderers & Dry Cleaners, Inc., and Erlich Cleaning Company are employers engaged in commerce within the meaning of Section 2(2), (6), and (7) of the Act. 2. Laundry, Dry Cleaning and Dye House Workers' International Union, Local No. 108 and Local No. 161, affiliated with International Brotherhood of Teamsters, Chauffeurs, Warehousemen and Helpers of America, are labor organizations within the meaning of Section 2(5) of the Act. 3. By withdrawing recognition from and refusing to bargain with Local No. 108 on and after March 16, 1976, Respondents have violated Section 8(a)(5) of the Act. 4. By refusing to bargain in good faith with Local 161 and by withdrawing recognition from Local 161 in and 2i Erlich testified that he still owns the store, but leased it out around May 10, 1976. ', Erlich's June 28 letter to Estes indicates that such a transfer would after March 1976, Respondents have violated Section 8(a)(5) of the Act. 5. By terminating the employment of Jessie Estes on or about March 27, 1976, Respondents have violated Section 8(a)(3) of the Act. 6. By engaging in direct bargaining with employee Melvin Jones and by promising him benefits if he would withdraw from membership in Local 161 on March 18, 1976, Respondents have violated Section 8(a)(5) and (1) of the Act. 7. By threatening to discharge employee Jessie Estes on March 20, 1976; by threatening Estes on March 27, 1976; and by informing Estes on March 29, 1976, that she had lost her job because of her refusal to withdraw from the Union, Respondents have violated Section 8(aX)(1) of the Act. 8. The strike which began on or about March 18, 1976, was caused and prolonged by the unfair labor practices of the Respondents. 9. The aforesaid unfair labor practices are unfair labor practices affecting commerce within the meaning of Section 2(6) and (7) of the Act. REMEDY Having found that Respondents have committed certain unfair labor practices, I shall recommend that they be ordered to cease and desist from such conduct and take such affirmative action as I find necessary to remedy the effects of the unfair labor practices and to effectuate the policies of the Act. The record is less than precise as to the scope of the units in which bargaining should be ordered. As noted, Local 108 represents laundry production employees. The com- plaint alleges, in effect, that Local 108 is the bargaining representative of laundry production employees at Erlich's 814, Inc. (which has one location at 814 Washington Avenue), Erlich's Northwest, Inc. (which has two locations, one at 1400 Washington Avenue and another at 6200 Natural Bridge), and Capri Launderers & Dry Cleaners, Inc. (which has one location at 8351 Olive Street Road). The last contract negotiated between Local 108 and the Exchange was signed by Erlich on behalf of "Erlich Laundry." So far as the record shows, there is no such corporate or other legal entity in existence. Erlich testified that, prior to 1976, he had recognized the two Unions as representing the appropriate employees at all "dry cleaning and laundry operations that [he] owned or controlled in the St. Louis area." However, he also testified that he has only three locations which perform laundry production work and that only three of the stores have been represented in the past. Local 108 President Suaraz testified that his Union represented only the employees at 1400 Washington, 814 Washington, and 8351 Olive Street Road. Local 108 Secretary-Treasurer Smith also indicated that the Union only represented employees at those three locations. Accordingly, although there is some indication in the record that the 6200 Natural Bridge establishment has a laundry production function, I do not think it have occurred as a matter of course: "At that time, in March of this year, you advised me that you preferred to discontinue your employment rather than transfer to another location." 1248 ERLICH'S 814, INC. appropriate to find on this record that Local 108 represents any employees at that location, and I shall limit the bargaining unit to the three locations designated by the union officials. As to Local 161, the complaint, in essence, alleges that Local 161 represents the store girls, counter girls, and drycleaning production employees at 814 Washington, 1400 Washington, 6200 Natural Bridge, 8351 Olive Street Road, and 914 North Whittier. The Erlich signature block on the 1970-75 multiemployer agreement with Local 161 appears as follows: ERLICH CLEANERS Erlich's 4-Hr 814 Washington 916 Whittier Erlich's GEM By Max Erlich In the prior contract, 1967-72, Erlich had merely signed on behalf of "Erlich Cleaners." There apparently is no organization formally known as "Erlich Cleaners." The reference in the 1970-75 contract to "Erlich's 4-Hr" is to one of Erlich's corporations about which there is little information in the record, and there is no indication in the record of a separate corporation called "Erlich's GEM." Despite the apparent limitation on the corporations on behalf of which Erlich signed the 1970-75 Local 161 contract, it is clear that he recognized the Union at other locations. For example, Eleanor Hoffman, the manager of the Olive Street Road establishment, which is nominally operated by Capri Launderers & Dry Cleaners, Inc.,30 understood that Local 161 represented at least one of her employees. Erlich testified that he thought that at the beginning of 1976 he had a total of some "seven or eight" employees represented by Local 161. It is very unlikely that this many employees would be represented by Local 161 at only the 814 Washington and the 916 North Whittier locations (at 916 North Whittier, as discussed above, essentially the only person employed at that time was Jessie Estes). In view of Erlich's testimony (qualified as to Local 108) that he recognized the two Unions at all "dry cleaning and laundry operations that [he] owned or controlled in the St. Louis area," the testimony by Local 161 Secretary- Treasurer Horton that the Union represented employees "at some stores, and we had out at 8351, who is out at the main office on Olive Street Road, we had anywhere from one to two working there. And then down here, we had some at 814 and some at 1400, pressers and baggers and so forth," I conclude that the parties intended that recognition be extended at the 8351 Olive Street Road establishment and at the locations at 814 Washington Avenue and 1400 Washington Avenue. Accordingly, I shall order bargaining in that unit.31 I feel constrained, however, to amend the unit designation so as to remove any reference to the gender of the employees. :"' But see fn. 17. supra. :" Since the 916 North Whittier location has been leased out, I shall exclude that location from the unit. :2 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, I shall further recommend that Respondents be required to offer to Jessie Estes full and immediate reinstatement to a position substantially equivalent to her former one without prejudice to her seniority and other rights and privileges. I shall not recommend reinstatement to her former position since the record shows without contradic- tion that Respondents have leased the 916 North Whittier location. I shall defer to the compliance stage a determina- tion of the question whether the June 28 letter to Estes constituted an adequate offer of reinstatement; the issue was not litigated in this proceeding and there is no clear indication that she even received the letter. I shall also recommend that Respondents be required to make Estes whole for any loss of earnings she may have suffered by reason of the discrimination against her, by payment to her of a sum of money equal to that which she normally would have earned from the date of the discrimination against her to the date that Respondents have offered, or shall offer, valid reinstatement, less earnings, if any, during such period, to be computed in the manner prescribed in F W. Woolworth Company, 90 NLRB 289 (1950), and Isis Plumbing & Heating Co., 138 NLRB 716 (1962). I shall also recommend that Respondents be required to post the usual notices to employees. Upon the basis of the foregoing findings of fact, conclusions of law, and the entire record in this case, I hereby issue the following recommended: ORDER 32 The Respondents, Erlich's 814, Inc.; Erlich's Northwest, Inc.; Capri Launderers & Dry Cleaners, Inc.; and Erlich Cleaning Company, their officers, agents, successors, and assigns, shall: 1. Cease and desist from: (a) Discouraging membership in, support for, or activi- ties on behalf of Laundry, Dry Cleaning and Dye House Workers' International Union, Local No. 161, affiliated with International Brotherhood of Teamsters, Chauffeurs, Warehousemen and Helpers of America, or any other labor organization, by discriminating against their employ- ees in regard to their hire, tenure, or terms and conditions of employment, because of their union membership, sympathies, or activities. (b) Engaging in direct bargaining with employees represented by a union. (c) Threatening employees or promising them benefits in order to restrain them from freely exercising their rights to join and assist unions. (d) Refusing to bargain collectively with Laundry, Dry Cleaning and Dye House Workers' International Union, Local No. 108, affiliated with International Brotherhood of Teamsters, Chauffeurs, Warehousemen and Helpers of America, as the exclusive bargaining representative of the employees in the following unit: 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. 1249 DECISIONS OF NATIONAL LABOR RELATIONS BOARD All laundry production employees, excluding office and clerical employees, watchmen who perform no produc- tion work, store managers or store clerks who do no production work, and supervisory employees who do not perform production work regularly and consistently in one single operation and who have authority to hire and discharge or effectively recommend such action, at Respondents' facilities at 814 Washington Avenue, 1400 Washington Avenue, and 8351 Olive Street Road. (e) Refusing to bargain collectively with Laundry, Dry Cleaning and Dye House Workers' International Union, Local No. 161, affiliated with International Brotherhood of Teamsters, Chauffeurs, Warehousemen and Helpers of America, as the exclusive bargaining representative of the employees in the following unit: All store persons, counter persons, and cleaning production employees, excluding office and clerical employees, watchmen who perform no production work, and supervisory employees who do not perform production work regularly and consistently in one single operation and who have authority to hire and discharge or effectively recommend such action, at Respondents' facilities at 814 Washington Avenue, 1400 Washington Avenue, and 8351 Olive Street Road. (f) In any other manner interfering with, restraining, or coercing employees in their right to self-organization, to bargain collectively through representatives of their own choosing, and to engage in concerted activities for the purpose of mutual aid and protection as guaranteed by Section 7 of the Act, or to refrain from any or all such activities. 2. Take the following affirmative action designed to effectuate the policies of the Act: (a) If Respondents have not already done so, offer Jessie Estes immediate and full reinstatement to a position substantially equivalent to her former position and make her whole for any loss of earnings, in the manner set forth in the section of this Decision entitled "The Remedy." ':' 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 read "Posted Pursuant (b) Upon request, recognize and bargain with Local No. 108 and Local No. 161, Laundry, Dry Cleaning and Dye House Workers' International Union, affiliated with International Brotherhood of Teamsters, Chauffeurs, Warehousemen and Helpers of America, as the exclusive collective-bargaining representatives of the employees in the bargaining units described above, with respect to wages, hours, and other terms and conditions of employ- ment, and, if an understanding is reached, embody such understanding in a signed agreement. (c) Upon unconditional application, offer immediate and full reinstatement to their former or substantially equiva- lent positions, without prejudice to their seniority or other rights and privileges, to all those employees who went on strike on March 18, 1976, or thereafter, dismissing, if necessary, any persons hired on or after March 18, 1976. (d) 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 records necessary to analyze the amount of backpay due under the terms of this recommended Order. (e) Post at their places of business at 814 Washington Avenue, 1400 Washington Avenue, and 8351 Olive Street Road, St. Louis, Missouri, copies of the attached notice marked "Appendix."33 Copies of said notice, on forms provided by the Regional Director for Region 14, after being duly signed by Respondents' representative, shall be posted by Respondents immediately upon receipt thereof, and be maintained by them for 60 consecutive days thereafter, in conspicuous places, including all places where notices to employees are customarily posted. Reasonable steps shall be taken by Respondents to insure that said notices are not altered, defaced, or covered by any other material. (f) Notify the Regional Director for Region 14, in writing, within 20 days from the date of this Order, what steps have been taken to comply herewith. IT IS FURTHER ORDERED that the allegations of the complaint not found in the foregoing Decision to constitute violations of the Act be, and they hereby are, dismissed. to a Judgment of the United States Court of Appeals Enforcing an Order of the National Labor Relations Board." 1250 Copy with citationCopy as parenthetical citation