Farmers Insurance GroupDownload PDFNational Labor Relations Board - Board DecisionsFeb 28, 1969174 N.L.R.B. 1294 (N.L.R.B. 1969) Copy Citation 1294 DECISIONS OF NATIONAL LABOR RELATIONS BOARD Farmers Insurance Group and Thomas S. Nunes. Case 36-CA-1732-2 February 28, 1969 DECISION AND ORDER BY MEMBERS BROWN, JENKINS, AND ZAGORIA On November 1, 1968, Trial Examiner Allen Sinsheimer, Jr. issued his Decision in the above-entitled proceeding, finding that Respondent had not engaged in the unfair labor practices alleged in the complaint and recommending dismissal of the complaint in its entirety, as set forth in the attached Trial Examiner's Decision. Thereafter, the General Counsel filed exceptions to the Trial Examiner's Decision together with a supporting brief, and Respondent filed cross-exceptions to the Trial Examiner's Decision and a supporting brief. Pursuant to the provisions of Section 3(b) of the National Labor Relations Act, as amended, the National Labor Relations Board has delegated its powers in connection with this case to a three-member panel The Board has reviewed the rulings of the Trial Examiner made at the hearing and finds that no prejudicial error was committed. The rulings are hereby affirmed. The Board has considered the Trial Examiner's Decision, the exceptions and briefs, and the entire record in this case, and hereby adopts the Trial Examiner's findings, conclusions, and recommendations. ORDER Pursuant to the provisions of Section 10(c) of the National Labor Relations Act, as amended, the National Labor Relations Board hereby adopts as its Order the Recommended Order of the Trial Examiner, and orders that the complaint herein be, and it hereby is, dismissed in its entirety. TRIAL EXAMINER'S DECISION STATEMENT OF THE CASE ALLEN SINSHEIMER , JR., Trial Examiner. This proceeding was heard before me in Portland, Oregon, on July 2 and 3, 1968, upon a complaint of the General Counsel and answer of Farmers Insurance Group, herein called Respondent' The issues litigated were whether Respondent violated Section 8(a)(1) and (3) of the National Labor Relations Act, as amended (herein called the Act), by terminating the employment of Thomas S Nunes on November 3, 1967. Upon the entire record, including consideration of briefs filed by the General Counsel and Respondent, and upon my observation of the witnesses, I hereby make the following The complaint issued May 23, 1968 , and is based on a charge filed April I , 1968, which was duly served on Respondent FINDINGS OF FACT 1. THE BUSINESS OF RESPONDENT Respondent is a corporation whose home office is located in Los Angeles, California It is engaged in soliciting, issuing, and servicing automotive, fire, and other insurance and is licensed to do business in 25 States of the United States The instant proceeding involves only its Portland, Oregon, regional office where during the past fiscal year more than $50,000 in premiums were received directly from places outside the State of Oregon Respondent admits and I find it to be an employer within the meaning of Section 2(2) of the Act, whose business effects commerce within the meaning of Section 2(6) and (7) of the Act. II. THE LABOR ORGANIZATION INVOLVED Insurance Workers International Union, AFL-CIO (herein called the Union ), is and has been at all times material a labor organization within the meaning of Section 2(5) of the Act III THE UNFAIR LABOR PRACTICES A. Introduction This case involves only the discharge of employee Thomas Nunes on November 3, 1967. Nunes, as will be set forth,, engaged in certain activities on behalf of the Union which included serving as the Union observer at an election conducted by the Board on May 17, 1967 The election ultimately resulted in the Union losing by a vote of 15 to 13 There is no evidence of threats of reprisal because of Nunes' union activities nor is there any evidence of independent violation of Section 8(a)(1) The case then presented is one involving the nature and extent of Nunes' union activities including any indication of Respondent's attitude with respect thereto, and the circumstances relative to his termination both as to procedural and substantive aspects Necessarily involved is the ultimate question of what inferences as to illegal motivation if any can be properly drawn therefrom. B The Facts 1 Introduction First, as indicated, the General Counsel is compelled to seek to establish his case primarily by showing that the Respondent had no valid basis for termination of Nunes and that therefore there must have been some other purpose than the one set forth. The General Counsel, of course, has also to show in this case union activity by Nunes and knowledge thereof by Respondent Also pertinent is the timing of the discharge in relation to the union activity As Respondent properly points out the resolution of this matter is not necessarily governed by what an arbitrator might or might not find although certain evidence that may be applicable in such case may also be pertinent in this proceeding Nunes was employed as an underwriter about March 1965 at a salary of $550 a month. He became, a senior underwriter January 1, 1966, and his salary was raised to $615 per month effective March 1, 1966. He received another salary raise to $655 a month effective June 1, 1967. This increase (which will be discussed hereafter) 174 NLRB No. 137 FARMERS INSURANCE GROUP 1295 would normally have been effective March 1, and would normally have been more During 1967, Nunes' immediate supervisor was Robert Russell 2. Union organization and Nunes union activity In the summer of 1966, according to the uncontradicted testimony of Nunes, while at lunch with Underwriters Al Martin and Paul Sundquist, all were critical of Respondent and Martin remarked that they needed a union Nunes asked why someone didn't do something about it Martin said he had a card from a Mr. Sawyer of the Office Workers Union and suggested that Nunes call Sawyer Nunes objected to his making the call since he was a new employee but agreed to toss coins to see who should make the call. The result was that Nunes lost and made the call to Sawyer He arranged for a meeting with Sawyer and Respondent's underwriters at Sawyer's office The latter was corroborated by employee Paul Sundquist. After talking with Sawyer, the employees decided they did not want Sawyer or his union to represent them. Subsequently, there was a consideration of the Teamsters Union but finally a meeting was arranged by employees Gerry Rothenfluch and Gerry Roth with the Insurance Workers Union Nunes was not involved in the arrangements but at the initial employee meeting with Union Representative Engelking, Nunes signed a union card and paid initiation fees and dues Thereafter, Nunes was subpoenaed by the Union to appear at the representation hearing held on December 13, 1967, and testified that he so notified one of his superiors, either Robert Russell or Don Vredenburgh S Nunes appeared at the hearing and sat in the back of the room but was not called upon to testify Thereafter, Nunes served as the Union's only observer at the election conducted by the Board on May 17, 1967 Respondent had opposed a unit limited to the underwriters employed in Respondent's Portland office but the Board found the unit appropriate The election conducted therein on May 17 originally showed 13 votes for the Union and 13 against with two challenges. James Goetz, regional underwriting manager of Respondent, testified he assumed the challenges were made by Nunes. These challenges were overruled and the final tally showed 13 votes for the Union with 15 against Employee Curtis Torland who worked for Respondent from January to July 1967 stated on cross-examination, "It was more or less recognized that Tom (Nunes) was behind the union push at Farmers " Al Martin, who originally suggested that Nunes call Sawyer of the Office Workers Union to initiate union activities, became a supervisor for Respondent sometime in the middle of December 1966 Nunes' immediate supervisor, Russell, admitted that before being promoted to a supervisory position, he had attended a union meeting at which Nunes was present The Respondent's answer admits knowledge that Nunes served as an observer for the Union at the election conducted by the Board on May 17 However, Respondent Supervisors Russell, Vredenburgh, and Goetz testified that they did not know precisely the function of an observer or that it necessarily implied union support at the time they first saw or heard Nunes was an observer Vredenburgh, although denying knowledge that Nunes was subpenaed to the representation hearing, admitted seeing him in the back at the hearing Nunes testified without contradiction that Al Martin after he became a supervisor called Nunes to his desk, and 'They denied he so informed them told him what Martin's promotion was going to mean to the department, that Martin had been given authority to improve the lot of the underwriters and he had been so authorized by Pretzinger who was Respondent's Regional Manager. Nunes also testified he observed Martin calling other underwriters to his desk in succession on company time and later discovered that Martin had apparently followed the same pattern of conversation with them However, this conversation is not related to any specific incident involving promises or grant of benefit or the like and it could well represent a normal action on the part of a new supervisor. Furthermore, there is no allegation of any unfair labor practice on the part of Respondent through such conduct by Martin. Employee Torland testified, without contradiction, that one time before the election Underwriters Hill, Gerlitz, himself and Supervisor Al Martin had a discussion about the Union at the Sandy Hut where they had beer or drinks During this discussion Nunes' name was mentioned Torland said he could not recall who intitiated the discussion except he thought probably the men did. Torland said that Nunes was mentioned as a troublemaker by Martin who told him that if he wanted to know any more about Nunes and his background to call a certain number In response to questioning about what Martin said about Nunes, Torland replied, "At the table, I believe I defended the Union to a certain extent and said I believed it had benefits, and at this point I believe Al did get - he was a little disturbed with my involvement or talking about the Union in this light, and he brought up, he says `If you want to know more about Tom Nunes, here's a telephone number; call it.' " Torland added he couldn't state the precise words but the general light cast on Nunes was not favorable. Torland remained with Respondent until sometime after the election when he was terminated apparently for tardiness Underwriter Ahrens testified that about March 1967 Martin told him that Nunes had a bad reputation in the insurance industry and if he wanted to check, he could call Bob Bagley at Mission Insurance and also Martin told him that Nunes' wife was suing him for a divorce and this was an indication of his character. In order to evaluate the case, an analysis will be made not only as to the union activity of Nunes, but also as to the activity of other employees and what occurred with respect to them Evidence that other employees who were openly active for or supporters of the Union, were not discriminated against or were favorably treated does not necessarily establish that Nunes was not discriminatorily treated, but such evidence is relevant and should be considered The record indicates that at least five other employees had been in favor of the Union or a union initially, Martin, Carl Davis, Torland, Sundquist, and Roth. Martin, one of the original instigators, was promoted to supervisor which sometimes is one method of eliminating union activists, but also can be viewed as indicative of nondiscriminatory treatment. Roth and Davis sat at the counsel table with the union attorney during the representation hearing Roth was recently promoted to supervisor. Davis requested and was granted a leave of absence for the purpose of entering the practice of law. The leave granted was about five months, beyond the normal 90-day leave time so that he could vest out his retirement period with the Company at the same time he commenced to practice law. Arguably this could be either an indication that the Company was not discriminating or possibly a contention that the individual had been granted such to keep him from voting However, the latter would 1296 DECISIONS OF NATIONAL LABOR RELATIONS BOARD not necessarily follow,' if he were still an employee although Davis, in fact, did not vote Sundquist, who was one of those involved in the decision to first contact a union representative and whom James Goetz, regional underwriting manager, testified he had heard from hearsay was in favor of the Union and active on behalf of it, is still employed by the Company Sundquist was the leader in the submission of suggestions of which 50 percent of his were accepted and for which he received financial awards Only Torland, as set forth, has been terminated and that apparently for tardiness with no evidence of improper causation Although the Company claims to have little knowledge of Nunes' union activity, it is evident that Martin knew of his original interest, Russell was at a meeting with him and Martin had spoken about him in a derogatory sense whether directly related to the Union or not At least in one conversation involving Torland, Martin's reference appears to have been in the course of a discussion involving the Union and it may be a reasonable inference that it had some relation to his union activities. Nunes was the union observer' and company officials knew this and although Russell and Vredenburgh denied knowing about his being subpoenaed, Nunes said that he had told one of them There is no question also that the Company knew he was in the back of the room at the hearing Whether or not he should be viewed as the most active union protagonist as he claimed, there is no question that he was active Further the record does not appear to reflect anyone more active than Nunes From all of the foregoing and the entire record I find and conclude that Respondent not only had knowledge of but was well aware of Nunes activity on behalf of the Union 3. Evidence relative to Nunes termination The election was held on May 17 and, except for the resolution of the challenges, there appears to have been no union activity thereafter pertinent to this proceeding Nunes' employment was terminated on November 3, reputedly for reasons hereafter considered Although Nunes had received a wage increase on March 1, 1966, he was not given the 10 percent increase on March 1, 1967 that would normally be granted then The reason advanced for not giving this increase was that prior to the annual increase period supervisor Russell conducted audits of the work of the employees, including Nunes whose audit was unsatisfactory An audit of Nunes' work on a sampling of his files' reflected on February 2 a 33-percent error ratio.6 A repeat audit of February 16 taken, according to Russell, to be sure of the sampling and findings on the previous audit showed a 31.5 error ratio. These errors consisted of a combination which, according to Russell, were either errors of procedure or errors of judgment.' Russell testified that any error ratio in excess of 10 percent would be high for a man of Nunes' experience He also said that procedural errors and judgment errors were considered of equal weight because they both could cost the Respondent money 'While the facts are not identical the following cases indicate that Davis may have retained eligibility to vote See Whiting Corp 99 NLRB 117, General Tube 141 NLRB 441, enfd 331 F 2d 751 (C A 6) 'The Board both directly and by necessary implication has found Company knowledge of union activity on the basis of a person acting as a union observer See Federal Envelope, 147 NLRB 1030 'According to Russell a sampling would normally involve 25 or more files 'The actual figures shown in appendix A hereto ( taken from Respondent Nunes complained about the nature of the errors which Russell had found - contending that many of them were trivial According to the testimony of Russell and Vredenburgh, Russell showed his work sheets in connection with these errors to Vredenburgh, who went through each of the files and concurred in Russell's judgment Russell was a new supervisor and could be expected to consult his supervisor, Vredenburgh Following the second audit of February 16, Nunes also complained about the results and a conference was held between Nunes, Goetz, and Vredenburgh Nunes testified they went through the files and that Goetz said it appeared to be a case of sloppy underwriting According to Nunes, Vredenburgh, and Goetz conceded some of the criticism was unjust and that they were minor errors According to Vredenburgh, Nunes originally expressed disagreement with the conclusion that his actions were erroneous but after discussion he believed Nunes accepted the comments of Goetz and himself However, Vredenburgh said he wasn't too hopeful they had gotten the message across, in view of Nunes statement that they were "nit-picking " According to Goetz, they went over the files in detail and that during the "interview" Nunes offered quite a few excuses as to why there were errors in the files Goetz testified that at the end Nunes "confessed that we were not being picayunish; that these were bona fide errors, and I told Tom at the time he left that his work would have to improve." Goetz testified further that all of Russell's criticisms of specific files were correct I conclude from both the foregoing records, testimony and action taken thereafter with respect to future audits and denial of a raise at the time that Nunes was informed by Vredenburgh and Goetz of substantial errors which had in fact occurred in his work At this time the question of whether or not Nunes would receive a salary increase was undecided and Nunes was told that he would again be audited at approximately 30-day intervals Nunes was again audited at approximately monthly intervals throughout the remainder of his employment in 1967. His March 16 and April 16 audits showed some improvement, reflecting 20-percent error for March and 16 percent for April This was still above the error ratio which the Company expected from someone with Nunes' experience His May audit indicated a slight slippage to 20 percent of error. In late May or early June, Goetz, Vredenburgh, and Russell met to consider whether or not to retain Nunes and what action, if any to take with respect to the matter of a raise Nunes had been told at the time of the March meeting following the February audits that his raise would subsequently be given further consideration The conferences among Goetz, Vredenburgh, and Russell raised questions as to Nunes' performance but it was decided to give him a partial raise amounting to 6 percent instead of the normal 10 percent Goetz testified that in spite of Nunes work record, because good and experienced underwriters are hard to come by, he and Vredenburgh decided to give Nunes an increase - "to use this approach to see if we couldn't stimulate better effort on his part " exhibits l through 9) show 8 judgment and 5 procedural errors set forth out of 33 files or 13 of 33, actually a 39-percent error ratio rather than 33 percent Russell conceded some difficulty with such computations 'Russell defined judgment and procedure errors as follows a iudgment error is where the underwriter would have exercised poor judgment in his handling of the file A procedural error would be an error that was contrary to written procedure that the company puts out' FARMERS INSURANCE GROUP 1297 Following the raise, Nunes' work showed a marked improvement with an error ratio of 8 67 percent in June, 5 percent in July, and 4 percent in September Russell apparently did not make audits in August because of vacation In October, Nunes again slipped into an error ratio above that expected Audits of October 11 and October 12 showed error ratios of 17 and 14 percent, respectively In addition, Russell had been preparing performance appraisal ratings on the various employees, including Nunes with the result that Nunes was the lowest in the group Nunes rating was "fair" One employee was rated "very good" and all others were rated "good " These ratings will be analyzed subsequently, although it may be noted that Nunes' rating was substantially lower in its total impact and points than that of other employees It should also be noted that performance ratings involve subjective evaluation by the grader with differences in a small number of items capable of causing a substantial difference in ultimate grade Further, as will be more specifically pointed out, Russell was unable in certain instances to specify in detail the basis of his ultimate judgments On the other hand, some of this inability is explainable by lapse of time which involved about a year and by the fact that many judgments rest on small items which are not always quickly recalled. This performance appraisal accordingly is at best a tenuous matter involving difficulty in determining whether the appraisal was grossly unfair and also whether if so what the motivation therefore would be As will appear, there may be some question about the appraisal of certain items However, this is not to say that there was no warrant for Russell's opinions concerning these items. Further, in my judgment it cannot be said that the appraisal or the ultimate discharge allegedly pursuant to appraisal, audit and other items that will be considered, was clearly motivated by union activity rather than by work performance Russell also testified that Nunes' response to work suggestions and following of Company procedures was not what it should be He indicated that Nunes had difficulty getting along with people and specified instances involving Ken Micheau, an agent, Glenn Mills, a fellow employee, and Dolores Johnson, who was in charge of the stenographic pool, and himself He also referred to Don Palmer, a fellow employee Russell's information as to an incident involving Nunes and Micheau was obtained from Supervisor Al Martin. One involving Nunes and Johnson was related to him by Supervisor Vredenburgh. In another incident involving Nunes and Johnson, Russell apparently was directly aware of Nunes' version in his own case the matter involved the playing of a radio by Nunes Russell said that he generally got along with Nunes While perhaps literally true, that it does not appear to have been a very friendly relationship is manifested in part by Russell's testimony as to Nunes' reluctance to accept work suggestions, by Nunes not seeking assistance or endeavoring to work more closely with Russell after the first adverse audits and in at least one instance the dispute about Nunes' playing a radio at the time of the world series. A number of Nunes' fellow employees testified that he got along well with them and other employees It is quite possible that the testimony respecting both those employees with whom Nunes had harmonious relations and the persons with whom Nunes allegedly had some disharmony, is true since there is no inherent inconsistency in an employee getting along with fellow employees and at the same time having some complaints in connection with others including agents. In the latter connection, Russell also testified that he had audited some of Nunes' correspondence and that he was sometimes abrupt in dealing with customers Before evaluating the records and performance of other employees with regard to audits and work appraisal a few matters should be noted (1) Nunes had indicated in the course of the hearing that he was the most active union protagonist, at another point that he averaged between 120 and 150 files a day with a minimum of 100 and a maximum of 300, at another point that he was outstandingly capable in marine auditing, at another that he was a very active participant in the employees' suggestion program, and finally that at the meeting when he was terminated in November he had been told he had an error record of 53 percent The matter of his activity has been discussed There is no question he was quite active but whether or not he was the most active is not clear The record establishes, as will be shown hereafter,8 that Nunes averaged 94 files per day and not either a 120 to 150 average or 100 minimum As for suggestions Nunes was active but another employee was much more active Nunes submitted seven suggestions and had two adopted, while Sundquist submitted 40 or 50 and had half of these accepted As to the 53-percent error ratio allegedly referred to at the termination meeting, Russell and Vradenburgh testified that they could recall no such statement being made or any such error recording being involved at any time and there is no evidence that there was any such record I accordingly credit their testimony in this respect. In addition, Nunes at one point indicated that certain matters, in essence, were what the industry said about policy and what should be done and repeated several times that was "what the industry said" with the clear implication and attitude that he felt he knew better. This testimony suggests that such attitude may have been involved in his relations with some of his supervisors 9 There is also testimony from witnesses for the General Counsel that company policy called for certain warning notices to employees prior to termination. Underwriter Donald Palmer, who prior to becoming an underwriter supervised about 35 women in the accounts department, testified that if an employee's work was bad enough to consider discharge, the employee was so notified and there would be a period of probation after which Palmer did not know what would happen Former Senior Underwriter Gerald Rothenfluch, who was at various times accounts receivable manager, assistant unit manager, central files supervisor, claims issue supervisor, policy writing supervisor and claims service division manager, supervised from 6 to 60 or 70 employees in those positions He testified as follows as to Farmers' policy in dealing with substandard or unsatisfactory employees "If his work or her work was unsatisfactory, if it was within the first six months of their employment they could be terminated immediately with no further ado If it was after that period of time the supervisor would call the employee to the side, give him a verbal - he or she a verbal appraisal. " Rothenfluch said the practice was uniform but "there was [sic] some things that was [sic] cause for immediate dismissal and those would be morals, dishonesty, excessive absenteeism -of course they would be previously warned of this " 'See Appendix "C" 'There is no question that this is an area in which a difference of opinion may well occur and in many situations be desirable The question is the degree and extent of its manifestation in connection with work and its impact on work relations 1298 DECISIONS OF NATIONAL LABOR RELATIONS BOARD Former mulitple line operator employee and at one time, for a year and a half, a commercial line underwriting supervisor, Carl Davis testified "In my 17 years' observation it was a general course of conduct that the employee, who was deficient, was given a written notice in certain areas and that these areas would have to be corrected within a 30 to 60 day period or appropriate action or discharge would be considered, something to that effect A copy of that went into the employees personal file record " Davis added the employee got a copy of the letter or memo pointing out the deficiencies Davis testified that the only exceptions he knew of were one or two instances of serious moral misconduct such as theft However, on cross-examination Davis said during the time he was a supervisor he had no occasion to give a written notice to anyone and give them 30 to 60 days to correct their deficiency or be terminated. Davis also said he knew of no such requirement in the personnel manual. The procedure testified to by Palmer and Rothenfluch appears to have application to the clerical and accounting departments rather than to the underwriters Rothenfluch also referred to a case involving one Dan Varnes, an underwriter whom he worked with In that instance, Varnes apparently was subjected to review every 30 days in connection with tardiness Witness Torland, an underwriter who testified, was not warned before his termination in July 1967 for tardiness. Regional Underwriting Manager James O. Goetz testified that during the 14 years he was a supervisor he had put only one employee on probation and that was Carl Davis in 1966. He was subsequently informed that such was improper personnel practice The foregoing does not indicate that the Respondent had an established policy of warning employees prior to termination and certainly not in cases of underwriters While it may be that industrial practice under union contracts normally requires notice or warning prior to termination in cases of unsatisfactory work, this is not an arbitration proceeding Such practice may possibly, however, have some evidentiary bearing on motivation. More pertinent and decisive in my judgment is that although not specifically warned, Nunes knew from his February audits and the implicit warning from the meeting thereafter with Goetz, Russell and Vredenburgh and from the holdup of his wage increase that his work was not considered satisfactory Nunes must have known from the fact that he only received a partial increase, that the Respondent was still not completely satisfied with his performance To such extent, it may be inferred that Nunes had "warning" of impending consequences from a failure to improve his work record Nunes was terminated at a meeting on November 3, at which Russell and Vredenburgh were present This followed the October audit ratings at which he had 17 percent and 14 percent of errors and the performance appraisal rating which resulted in a "fair" rating Attached hereto are. appendixes (A) a copy from the exhibits of the results of audits taken of various employees in the unit, (B) a copy from the performance appraisals of (1) the items appraised, (2) grades given to each item and a definition of each of the grades. and (3), (4), & (5) comments, summations or pertinent observations with respect to elements in the appraisal ratings as applied to various employees, (C) a copy of an exhibit relating to production totals and averages for the period indicated As set forth, Nunes had 4 or 5 years' experience as an underwriter prior to coming to Farmers In the audits taken February 2 and 16, according to figures on appendix A, he had percentages of error of 3310 and 31.5 percent which were inordinately high. The foregoing figures, which were taken as set forth on successive audits to be sure of the sampling and which were discussed with Nunes by Russell and subsequently at the meeting involving Nunes, Russell, Vredenburgh, and Goetz, were so high as to cause Respondent to delay giving him a wage increase, and to further evaluate him Respondent argues that these audits would also have been sufficient grounds for discharge in February or March if it were so motivated Assuming the latter were so on a work performance basis, it would have had to be so predicated without affording him an opportunity to improve. The latter the Company did afford Nunes as set forth Nunes' audits in sequence as contained in appendix A were as follows On 2/2/67 out of 33 files Nunes had 8 judgment and 5 procedural errors which was marked as a percentage error of 32 9 although as set forth, supra, this actually figures about 39 percent and following this was a comment, "poor overall", February 16, 1967, of 19 files, there were 4 judgment and 2 procedural errors for a percentage of error of 31 5; an audit on March 16, 1967, reflected that of 20 files there was I judgment and 3 procedural errors for a percentage error of 20 percent with the comment "improved", an audit of April 16, 1967, reflected of 25 files, 2 judgment and 2 procedural errors for an error percentage of 16 percent with the comment "improvement", on May 23, 1967, of 10 files there were 2 judgment errors for a percentage of error of 20 percent." An audit of 6/23/67 shows of 23 files there was 1 judgment and I procedural error for a percentage of error of 8 67, on 7/11/67 an audit of 20 files reflected I judgment error for a percentage of error of 5 percent; 9/8/67 an audit of 25 files showed 1 judgment error for a percentage of error of 4 percent 7 z In final audits of 10/11/67 of 28 files there were 3 judgment and 2 procedural errors for a percentage of error of 17 percent and on 10/ 12/67 of 21 files there were 3 procedural errors for a percentage of error of 14 percent Respondent's view was that Nunes' work improved somewhat in March, April and May Although it was not as much as Respondent wanted, it felt that giving Nunes a raise would be an incentive for him to improve further Respondent's position is that thereafter the audits of June 23, July 11, and September 8 indicated that this improvement had occurred but that the audits of October 11 and 12 reflected that Nunes had regressed and was performing poor work again The record of Nunes was compared by the General Counsel with that of William Pankratz Pankratz' audit, as set forth in Appendix A, shows that on February 10, 1967, of 24 files there were 6 judgment and 4 procedural errors for a percentage of error of 41.6 percent The comment following the audit was "will work closely with Bill volume of errors too high " Then on 3/14/67, of 20 files there was 1 judgment error and l procedural error for a percentage of error of 10 percent On 4/ 10/67 of 28 files there were 2 judgment errors and 1 procedural error for a percentage of error of 10 7 with the comment, "much improvement, quality much better and volume holding up," (the latter referring to the number of files that Pankratz examined) The form indicated a standard "As set forth previously in fn 6, it appears this percentage should be 39 "This would appear to be a sampling of less than was normally considered acceptable "No record for August appears because of Russell's absence FARMERS INSURANCE GROUP of 90 files while Pankratz daily average appeared to be somewhat above 100 files at this time An audit of 6/29/67 reflected that of 28 files there were 3 judgment errors and 2 procedural errors for a percentage of error of 18 percent. Then on 7/19/67, of 30 files there were 2 judgment errors and I procedural error for a percentage of error of 10 percent with the comment, "good " The Respondent's explanation of the different approach to Pankratz was essentially that he was a newer employee with less than a year of experience (in February 1967) having first commenced work as an underwriter May 16, 1966, that Pankratz' audit performance record improved markedly until his last audit in July reflected an error ratio of 10 percent (lust within acceptable limits), that his performance appraisal resulted in a grade of "good" showing a higher rating than Nunes on four items (including two stated by Russell to be of major importance)" and a lower grade on one item "open-mindedness", and that Pankratz was more cooperative than Nunes as manifested by Pankratz' acceptance of Russell's comments on the first page of his performance appraisal However, I also note therein Russell's comments about Pankratz not being receptive to ideas of others unless in accord with his and arguing with others after asking their opinion The General Counsel also refers to the record of Howard Kober by way of comparison (which is set forth in appendix "A"). Kober's audit of 3/2/67 shows that of 22 files there were 2 judgment errors and 2 procedural errors for an error percentage of 18 percent and a comment "fair quality", on 4/3/67 of 28 files, there were 3 judgment errors and l procedural error for a percentage of error of 14 2 with a comment "fair quality." The next audit for Kober (not shown on appendix "A") was 12/6/67 which showed of 40 files there were 2 judgment errors and 2 procedural errors for a percentage of 10 percent with a comment "fair quality should work on - improving - good attitude - more open minded " In Kober's case the Respondent distinguished him from Nunes on the basis that he was a transfer from Los Angeles where the system and method were different and that he had to become accustomed to the work in the Portland office; that his volume increased so that by October 1967 he was averaging 10 to 15 files a day more than Nunes, further that Kober's performance appraisal was better with a grade of "good" and with higher grades than Nunes on five items (including two Russell testified were of major importance )1 4 and a lower grade on only one item "open-mindedness", that Russell was working with him at his desk as distinguished from Nunes with whom Russell did not because, according to Russell, Nunes never asked him, and that Kober's wife was a highly regarded supervisor in another department which was "an extenuating circumstance." There was also a brief examination with respect to the error ratio of Mills which reflected that on 2/ 14/67 out of 24 files there were 2 judgment and 2 procedural errors for an error percentage of 16.6 with a subsequent audit on July 11 of 16 files with I judgment error for an error percentage of 6 with the comment "very good quality " Russell testified that Mills had less total underwriting experience." than Nunes Russell also said that the February audit was high. In explaining on cross-examination why no further audits were made until July, Russell testified that he worked closely with Mills at ""Job Knowledge" and "Expressions" discussed more fully post "See further discussion post 1299 his desk because Mills had so requested. In addition to the foregoing with respect to comparison of the employees as set forth in the performance appraisals, appendix B, Nunes' rating was "fair" while that of all other employees except Prickett was "good" with Prickett being rated "very good." The rating was based on grades on items ranging from one for "excellent" to five for "unsatisfactory". This meant that the person with the lowest point total could reflect the highest rating although not necessarily in all instances because greater significance was given according to Russell to four items- Item I Job knowledge; Item 4. Decision making, Item 5 Taking action; and Item 7. Expressions (oral and written) However, taking the latter into account it should be noted that Prickett with 30 points had the lowest point total and the highest rating in the group with "very good " The point totals ranged from 30 to 44 which latter was Nunes' rating. The next lowest ones compared to Nunes were Pankratz with 39 and Kober with 38 According to the analysis as set forth also in appendix B, Nunes received ratings of (4) "fair" on "job knowledge", "decision making," and "expressions," three of the four major items, and a (4) "fair" on two lesser items and a rating of (5) "unsatisfactory" on item 11 entitled "Personal Acceptance by Others." This latter was the only (5) "unsatisfactory" rating given to anyone. Whether or not the latter rating was justified may be questionable Set forth, supra, is testimony by Russell relative to complaints involving Nunes and Dolores Johnson, Ken Micheau, Glenn Mills, Donald Palmer, and himself. However several present employees and one former employee, namely Don Palmer, Thomas Ahrens, Gerald Rothenfluch (formerly employed), and Paul Sundquist testified that Nunes did get along with his fellow employees Whether or not an independent evaluation would change this "unsatisfactory" rating is not decisive although it should be considered In the case of Kober, he received one rating of (4) "fair" on a major item, "decision making," and on one lesser item number 12, "open mindedness." Pankratz received a rating of (2) "very good" on a lesser item and a rating of (4) "fair" on one major item, "decision making," and ratings of (4) "fair" on lesser items 10, 11, and 12. Kober had higher grades than Nunes on "job knowledge," "expressions," "keeping supervisor informed," "achieving results through others," "personal acceptance by others" and had a lower grade only as to "open mindedness" (acceptance of new procedures). Pankratz had a higher rating than Nunes on "job knowledge," "expressions" (oral and written), "keeping supervisor informed," "personal acceptance by others" and lower only on "open mindedness" (acceptance of new procedures) and in addition his appraisal indicated a cooperative response to it. The record accordingly reflects audits of Nunes work over a substantial period which showed errors that should not have been made by a person of experience, then reflected improvement and finally reflected regression His performance appraisal which, as previously set forth, inevitably involved subjective evaluations and which may not in all instances accurately reflect his work or his attitudes was nevertheless in its total impact substantially worse than that of anyone else. As I have previously stated with reference to the item, "Acceptance by others," I have considerable doubt whether the "unsatisfactory" on "Mills total underwriting experience was about 3 years 1300 DECISIONS OF NATIONAL LABOR RELATIONS BOARD the performance appraisal is warranted. It may rather reflect Russell's personal attitude toward Nunes Although Russell said that he and Nunes got along, there were as set forth contrary comments and implications from items and testimony including the radio incident, the fact that Nunes did not ask Russell to work with him at the desk, the testimony that Nunes felt that Russell's comments about his work were picayune and testimony concerning a conversation about "talking" between Russell and Nunes at a time when people were stopping to talk at Nunes' desk,16 credited testimony by Russell that Nunes did not readily accept suggestions and was reluctant to follow company procedures," all of which indicate that Nunes and Russell were not particularly compatible in their relationship The latter may result in judgments without any other causes or motivations There was, in addition, the fact that Russell had become a supervisor What impact this had is difficult to say except that relationships again change when former fellow employees become supervisors Further Nunes is a person who has his own ideas, appears to be aggressive and it could well be that friction developed between him and Russell 4 Summary and conclusions In determining whether or not the General Counsel has met his burden of proof, there should be considered in addition to the audits and the appraisals whether the record reflects disparate treatment of Nunes in terms of other persons including whether or not he was given a notice of warning Also to be considered in the extent of his union activities as compared with others who were retained, and the question of attitude insofar as he was concerned in his relations with Russell discussed supra Finally the General Counsel raises a question as to allegedly conflicting testimony with respect to the basis of termination of Nunes on November 3 which will be considered First as to the extent of warning, I have previously concluded Respondent had no general rule of policy of warning in the case of underwriters and in fact had terminated some without warning In any event I have found that Nunes certainly had at least an implied warning of serious consequences from the audits, discussion thereof, delayed pay raise and finally the partial raise. His union activities as compared with others has been discussed and conclusion reached that he was quite active. I have also found no evidence of improper treatment of other persons who were active for the Union As for the audits these have been set forth and discussed at length. In my judgment, they indicate unsatisfactory performance by Nunes during substantial periods and at pertinent times Comparison with other employees does not rebut this conclusion For reasons set forth, I consider Respondent has reasonably distinguished its treatment of other employees including Pankratz, Kober and Mills The same is true of the performance appraisals although admittedly they include subjective aspects I have indicated I would not necessarily concur in all of the judgments set forth therein in the appraisal of Nunes" but "This was during the time the union was organizing "This is indirectly corroborated by Nunes testimony, supra , where in discussing policy he repeated that was "what the industry said," but indicated disagreement can not conclude from the evidence that the appraisal as a whole is unwarranted with its result that Nunes was rated "fair", below all other employees I have also noted various incidents including differences between Nunes and Russell which may have been a factor in Russell's evaluation of Nunes I have referred to Nunes exaggeration of certain items. I have not previously mentioned that during the months of February, March, and April when Nunes work according to the audits was very poor, Respondent understood and apparently took into consideration that he had both illness and domestic problems In this connection it would appear that it union acitivity were a motive and a pretext were sought, Respondent at that time during the preelection period might well have taken action to terminate Nunes since it then appeared to have a valid cause in poor work Actually it did not until long after the election This latter interval to a time when another election could not be conducted has been held to weaken the "basis for .. . attributing an antiunion motive to the discharge "" This leads to the expressed basis of termination by Russell The General Counsel contends that Respondent was vague and vacillating in the reason that it gave for Nunes' discharge To better evaluate this, certain testimony of Russell is hereafter set forth. Q (on direct examination by Respondent) Now in view of the fact that he had done so well in both July and August or July and September, I should say, why did you audit him again in October l lth9 A Because of the previous performance, I wanted to it would only be fair to the company in making sure our audits were good samplings Q. When you audited him on the eleventh of October and found seventeen percent, why did you audit him again the next day? A Well, again, I wanted to be sure that this was a good sampling of the work because of the high error ratio. Q And when you found that he was back up to seventeen and fourteen percent those two days, did you reach any conclusions about him9 A To answer this question, I believe I'll have to expound a little bit Q All right. A At the same time, I was - or previous to this, I had been working on his performance appraisal, and the culmination of the performance appraisal and the audits brought me to a conclusion, yes Q And what was your conclusion9 A I felt that we could no longer work with Tom Q. Well, can you tell us basically, why you reached that conclusion9 What were the factors9 What brought about that decision9 A Well, the performance appraisal came out fair, and the audits were again at a level, untolerable [sic] level, and it looked like the raise may have stimulated "I have also noted and considered Russell ' s repeated reference (in connection with Nunes performance appraisal) both in the appraisal and in Russell ' s testimony to the apparent need for Nunes to have, "continued education" outside his work Although , it appears that Nunes had in the past participated in certain courses and there may be some apparent vagueness in what Russell specifically desired it does not follow that Russell ' s appraisal as to the item involved, namely job knowledge, was erroneous Admittedly here again this may be affected by Nunes' testimony and indicated attitude referred to, supra , in relation to policy, where he responded that was , "what the industry said" "N L R B v Newman-Green Inc, 401 F 2d I (C A 7) FARMERS INSURANCE GROUP him to do good work for a short period of time, but he lapsed back to the same area that he was in before Q Were there other factors besides Mr Nunes' error ratio which contributed to your decision? A Yes, there were Q Can you tell us what some of them were9 A. Well, I had had complaints about his attitude from agency force, and from workers in the office, that I felt were more than normal * * * * * Q • What was his general attitude as an employee, with reference to following procedure and changes in procedure? A I always felt that Tom resisted change in company procedures He didn't agree with a lot of the company's philosophies and was reluctant a lot of times to follow the company's practices. Q. Were the October audits, then well, I gather that you testified a moment ago that they were not the only factors Were they the sole major factors in your decision9 A. No Q. What other what were the other major factors9 A. The performance appraisal, combined with the overall performance of the man in the last year Russell testified that after concluding in the latter part of October to terminate Nunes he had a conference with Goetz in which he told him he reached that conclusion "because of the performance appraisal" and that they then went over it with Russell outlining in detail the same reasons set forth in earlier testimony Goetz agreed with Russell and instructed him to talk to Vredenburgh on his return. Russell testified that he told Vredenburgh "I felt we could no longer continue Tom as an employee in view of the appraisal and the audits " According to Russell they then went over the appraisal and Vredenburgh agreed with him Russell's version of his discussion with Goetz and Vredenburgh was either uncontradicted by or essentially corroborated by them and I accordingly credit it. Goetz, who had to approve the termination, testified Respondent let Nunes go because they could not afford to keep him He said the various audits were weighed including those of June, July, and September reflecting improvement but the other audits showed "he slipped back to his old habits." Goetz testified he and Russell discussed every detail of the appraisals According to Goetz, the appraisal was an important factor in his final discussion with the audits being of equal importance Vredenburgh testified Russell came to his desk on a Monday after he returned from a trip and- A It was on a Monday morning, if I remember correctly, in the morning, and we discussed the files that he had, along with the appraisal that he prepared, and explained the reasons why that he felt Mr Nunes could not be salvaged Q What reasons did he give you9 A The fact of the error ratio, poor attitude, and Tom not being receptive to suggestions he made to him from time to time Q And did you express agreement or disagreement or any opinion whatsoever with reference to that recommendation9 1301 A. I agreed with him Russell testified he was quite nervous at the termination meeting since it was the first time he had been involved in terminating anyone and didn't find it to his liking He did not recall a great deal thereof except that a message was conveyed that they couldn't continue Nunes as an employee. He could not recall any 53 percent error ratio being used or where it could have come from if it were According to Nunes, Russell appeared ill as Nunes accompanied him on what Nunes incorrectly thought was to be an annual review on the afternoon of November 3 to Goetz's office where Vredenburgh but not Goetz was present. According to Nunes, Russell said something to the effect, "Tom we're very concerned about the quality of your work. We've observed a great many errors in it " Nunes testified he then interrupted to say, "Wait a minute, what we're down here for is not to give me my annual review. We're down here to terminate me. Is not that correct)" According to Nunes, Russell replied, "Yes it is" and Russell had available a check made out for his wages Nunes said Vredenburgh commented that it was too bad that it had to happen, that apparently he had lapsed into his sloppy underwriting ways going back to March 1967, and that they just couldn't tolerate poor underwriting, that he was going to have to go and that Vredenburgh thought he had a great deal of talent as regards underwriting of boats etc, and suggested he seek employment in that line Nunes said he got up and left He said no files were shown and that he threw a question at Russell and received an error figure in excess of 50 percent - he believed it was 53 percent Vredenburgh testified that Nunes and he were in front of a desk and Russell behind it at the termination meeting; that Russell discussed past, present, and future - that it would be beneficial to Nunes to look for employment elsewhere Vredenburgh directly corroborating Nunes said he commented to Nunes that he would probably be happy in the marine field He said Nunes cut off Russell, "by advising him that he knew the purpose for which the . ." and that Nunes went back upstairs at that time. According to Vredenburgh the meeting lasted 15 or 20 minutes. He could recall nothing about a 53 percent ratio being mentioned. The conflict concerning the 53 percent figure which I have found supra, was not made as stated by Nunes appears to be the only basic conflict in testimony concerning the termination meeting The General Counsel makes a point that Nunes performance appraisal says on it that it was reviewed in detail with the employee on 11/3/67 and that Russell on cross-examination admitted it had not been Russell's testimony is not entirely clear but I conclude from it that he did not show the evaluation to Nunes or discuss it with him and that the date of November 3 was put in to reflect the date of the execution of the termination evaluation rather than anything else In any event, I do not- consider this of decisive importance in connection with the ultimate issue As to that namely the discharge of Nunes, I conclude that, although there are questionable aspects thereto, the evidence adduced by the General Counsel does not establish by a preponderance that Nunes was discharged because of union activity in violation of Section 8(a)(3) and (1) of the Act I shall therefore recommend that the complaint be dismissed. 1302 DECISIONS OF NATIONAL LABOR RELATIONS BOARD RECOMMENDED ORDER Upon the basis of the foregoing findings and conclusions, it is hereby recommended that the complaint in the above matter be dismissed in its entirety APPENDIX A Audits DATE FILES ERRORS JDGMT PROC. PERCENT COMMENTS TBS. Nunes 2-2-67 33 8 5 32 9 Poor Overall 2-16-67 19 4 2 31.5 3-16-67 20 3 20.0 Improved 4-16-67 25 2 2 16.0 Improvement 5-23-67 10 2 0 20 0 6-23-67 23 3 67 7-14-67 20 50 9-8-67 25 40 10-11-67 28 3 2 17.0 10-12-67 21 William Pankratz. 3 140 2-10-67 24 6 4 41.6 Will work closely with Bill Volume & errors too high 3-14-67 20 100 4-10-67 28 2 10.9 Much Improvement. Quality much better & volume holding up 6-29-67 28 3 2 180 9 7-19-67 30 Howard Kober 2 10.0 Good 3-2-67 22 2 2 18 0 Fair quality 4-3-67 28 Donald Palmer 3 142 Fair quality 2-17-67 26 70 Quality good 3-29-67 20 Glenn Mills 0 0 0.0 Quality good 2-14-67 24 2 2 16.6 7-11-67 16 Paul Sundquist 0 6.0 Very good quality 3-2-67 25 John Sandvig- 2 0 8.0 Very good quality 3-7-67 18 2 0 11.1 Need re on old P.U 3640 72 90 verify rule class 3640 88 74 8-11-67 25 0 Very good quality Promoted and Super 11-16-67 FARMERS INSURANCE GROUP 1303 Richard Hill 1-19 20 4 0 20.0 2-29 24 4 2 25 0 Dick is doing a good job 3-21 30 3 130 Improving 7-7 Joan Prickett 25 1 80 Good 2-14-67 12 0 0 00 3-20-67 38 2 1 30 3-28-67 21 0 0 0.0 3-29-67 15 0 0 00 APPENDIX B satisfaction 3. Each performance appraisal also contains comments where the item is marked 4 or 5, (below good), and may contain comments in other instances 4. The persons graded are listed below by name with final grade and also point totals although the latter are not deemed decisive since more weight is given to certain The Performance Appraisals I Performance appraisal forms listed their items as follows- A. PERSONAL 1. Job Knowledge 2 Planning and Organizing to Meet Objectives 3. Creativity (Development and Application of New Ideas) 4. Decision Making (Quality, Timeliness, Willingness to Make) 5 Taking Action (Initiating and Following Through) 6 Personal Characteristics (Health, Appearance, Character, Habits, Manner) B WORKING WITH PEOPLE 7. Expressions (Oral and Written) 8 Contribution in Meetings 9. Keeping Supervisor Informed 10. Achieving Results Through Others 11. Personal Acceptance by Others 12. Open-Mindedness (Acceptance of New Procedures) 2 Numbers from I to 5 were attached to each item on the following basis: I EXCEPTIONAL - Superior performance, out of the ordinary, one that surpasses others in quality, merit or excellence Consistently exceeds very good 2 VERY GOOD - High degree of performance to a considerable extent Extremely and exceedingly satisfactory 3 GOOD - Performance is competent and adequate. satisfactory in all aspects of major duties and responsibilities 4. FAIR - Quality or degree of performance is reasonably good; middling, pretty good but limited 5 UNSATISFACTORY - Deficient performance, not meeting minimum requirements, failing to give items than to others Prickett 30 Points - Very Good Hill 32 Points - Good Sundquist 33 Points - Good Sandvig 35 Points - Good Palmer 35 Points - Good Mills 36 Points - Good Kober 38 Points - Good Pankratz 39 Points - Good Nunes 44 Points - Fair 5. The following are also noted According to Russell, the.most important items were items 1. Job Knowledge, 4 Decision Making; 5. Taking Action and 7. Expressions (Oral and Written). The only item graded "1" was Sundquist for creativity. (He submitted and had approved the most suggestions). Sundquist also received one rating of 4 on an item considered of lesser importance Sandvig received a rating of 4 on a lesser item Kober received ratings of 4 on Decision Making and one lesser item 12 - Open-Mindedness. Pankratz received a rating of 2 on a lesser item, a rating of 4 on Decision Making and ratings of 4 on lesser items 10, 11, 12. Nunes received ratings of 4 on Job Knowledge, Decision Making, Expressions and two lesser items 9 and 10 and a 5 on item l l This was the only 5 rating given to anyone The above represent the only item ratings below 3 (or above 2) that were given Appendix C Week Ending Patterson Duee Roth Su ahiro Puckett Mills 10 4 2 1 5 7 9 4-14 108/539 480 587 451 510 519 352 4-7 93/467 557 656 520 504 401 409 3-31 75/373 486 605 738 488 482 360 1304 DECISIONS OF NATIONAL LABOR RELATIONS BOARD 3-24 82/412 466 424 557 418 384 374 3-10 86/430 511 530 590 502 1 day 491 absent 2-17 92/461 488 541 I day absent 2-10 74/369 551 536 532 499 429 464 1-29 85/425 539 624 505 592 403 487 1-20 82/410 557 497 2 days 478 397 534 absent Total 3886 4617 4981 4519 4479 3556 3471 Weekly Avg 86/432 103/513 111/553 113/565 100/498 89 /445 87/434 Sundquist Pankratz Sandvig Ahrens Nunes Kober 10 3 12 8 6 13 4-14 445 612 371 389 482 371 4-7 367 544 378 472 455 399 3-31 379 599 394 Vacation 539 354 3-24 364 475 407 447 563 379 3-10 469 518 434 469 1 day 374 absent 2-17 370 477 350 465 440 395 2-10 474 551 367 414 336 295 1-29 521 541 391 435 473 390 1-20 Vacation 547 388 415 2 days 263 absence Total 3389 4864 3480 35b6 3288 3220 Weekly Avg 85/424 108/540 77/387 88/438 94/470 72/358 * U S GOVERNMENT PRINTING OFFICE 1971 0-380-675 Copy with citationCopy as parenthetical citation