Federal Mogul Corp.Download PDFNational Labor Relations Board - Board DecisionsAug 21, 1974212 N.L.R.B. 950 (N.L.R.B. 1974) Copy Citation 950 DECISIONS OF NATIONAL LABOR RELATIONS BOARD Federal Mogul Corporation and Office and Profession- al Employees International Union , Local 42, AFL- CIO. Case 7-CA-10404 August 21, 1974 DECISION AND ORDER BY CHAIRMAN MILLER AND MEMBERS JENKINS AND KENNEDY On February 21, 1974, Administrative Law Judge Herzel H. E. Plame issued the attached Decision in this proceeding. Thereafter, the Respondent filed ex- ceptions and a supporting brief, and the Charging Party filed an answering brief. Pursuant to the provisions of Section 3(b) of the National Labor Relations Act, as amended, the Na- tional Labor Relations Board has delegated its au- thority in this proceeding to a three-member panel. The Board has considered the record and the at- tached Decision in light of the exceptions and briefs and has decided to affirm the rulings, findings,' and conclusions of the'Administrative Law Judge and to adopt his recommended Order. We agree with the Administrative Law Judge's finding that Respondent's "refusal to submit or dis- cuss, or to permit any discussion of, economic propos- als in the contract negotiations, and [Respondent's requirement] as a condition for any such discussion that the Union agree to accept Respondent's terms on certain noneconomic matters, was a refusal to bargain in good faith in violation of Section 8(a)(5) and (1) of the Act," and that the Union's strike which com- menced on May 30, 1973, was in protest of Respondent's unlawful conduct and was, therefore, an unfair labor practice strike. On the basis of credibility resolutions, which are amply supported by the record, the Administrative Law Judge found that at the first negotiating meeting in August 1972 the Union submitted its entire con- tract proposal, except for its wage proposal, which was to be submitted after Respondent complied with the Union's request for certain data respecting job descriptions and rates of pay for unit employees. At the second meeting on September 30, 1972, Re- spondent "firmly established" 2 ground rules for ne- i The Respondent has 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 Dry 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. 2 Our dissenting colleague states that Respondent only "suggested" these ground rules . We regard the Administrative Law Judge 's characterization as gotiations, namely: (1)- that all noneconomic issues would be discussed and negotiated first and economic issues would be held until the end of the negotiations; and (2) that items agreed to and initialed by the par- ties would not be discussed further. Furthermore, Re- spondent was not concerned with whether the Union negotiators consented to, and it did not know if they agreed with, the ground rules, but this was the way Respondent normally proceeded in contract negotia- tions and it insisted on holding all economic matters until the end of the negotiations. Indeed, Respondent's personnel manager and its principal negotiator, Michael Willard, credibly testified that the union negotiators "were unhappy whenever [he] stat- ed what [Respondent's] position was with regard to rejection of the economic demand" before the end of negotiations.' As negotiations progressed, agreement was reached only on a few noneconomic items of substance. There was sharp disagreement on four items: management rights, union security, grievance procedure, and the number of hours in the regular workweek. (The Union finally abandoned its proposal to reduce the number of hours in the workweek on May 29, 1973, and agreed to Respondent's position on that point.) Al- though the Union's entire proposal had been on the table since August 1972, including vacations, insur- ance, profit sharing, sick leave, longevity, shift pay, and cost-of-living increases, Respondent refused to discuss these items until the end of negotiations, and Respondent did not submit any counterproposals concerning these items. Nevertheless, in early April 1973, the Union sub- mitted its wage proposal, which was reviewed by Re- spondent but later taken back by the Union to make some corrections. The wage proposal was resubmitted on May 10, 1973. At another meeting on May 24, 1973, Respondent rejected the proposal on wages without giving any reason, and again did not offer any counterproposal. At this point, the Union advised Re- spondent of the strike vote and that employees would go on strike on May 30, 1973, in order to get a coun- terproposal from Respondent. The parties met again on May 29, 1973, in the presence of a state mediator, at which time the Union asked for Respondent's eco- nomic proposal. Each time the Union made this re- quest Respondent insisted that negotiations continue on the remaining noneconomic issues. The employees did strike on May 30, 1973, in protest against Respondent's refusal to make any proposal on eco- nomic issues. At a subsequent meeting in June 1973, called by the fully supported by the record. s Again, contrary to our dissenting colleague, we can hardly agree, on the basis of the Administrative Law Judge's credibility findings , that the ground rules were a "mutually accepted procedure." 212 NLRB No. 141 FEDERAL MOGUL CORPORATION 951 state mediator, the Union's offer: (1) to recede from a partial union shop to a full agency shop was rejected by the Respondent on the ground that requiring the payment of dues was a compulsion; (2) to separate out areas for strike in its proposal for grievance proce- dure was rejected because Respondent was unwilling to use an arbitrator; and (3) to make further conces- sion on management rights was not accepted because Respondent wanted flexibility in dealing with office workers as they are a support group. On July 11, 1973, the parties met again and went over their respective positions on the "big three" without "noticeable" movement on either side, and the meeting recessed. After resuming, Respondent tendered its contract proposal, including a wage offer of 3 percent annually for 3 years, which would automatically terminate if not accepted by the Union by 12 noon on Monday, July 16, 1973. The parties discussed the scheduling of another meeting, which became a problem because of the au- tomatic deadline and the fact that negotiators from both sides had prior commitments-the Union's neg- otiators on days prior to July 16 and the Respondent's negotiators on days following July 16. Because of these business commitments, including July 16, which were communicated to Respondent on July 11, the union negotiator asked Respondent to extend the deadline in view of its short time, but the request was refused .4 The union negotiators agreed to meet on July 16, 1973, provided they could cancel other com- mitments between then and July 16 which would give them needed time to get together to review the eco- nomic proposal. Since the negotiators were unable to cancel their commitments they were unable to review the proposal, and so informed the state mediator, who in turn advised Respondent that the meeting was can- celed, and the offer lapsed.' On August 28, 1973, the parties met for the last time and the Union tried to negotiate a return to work of the striking employees and the terms of a contract. As Respondent had hired replacements during the strike, it would not agree to the return-to-work offer, but did offer preferential hiring as jobs opened to those strik- ers who signed unconditional requests to return. The Union agreed and the strike was terminated. Eleven A This is the answer to our dissenting colleague's not knowing why appar- ently no union inquiry was made to extend the deadline Also, with respect to the statement in the dissent that Respondent "had clearly flown a signal on the 11th that the deadline was open to later discussion," the record shows that Respondent would consider extending the deadline if it appeared that there was ment or value in extending it at the July 16 meeting, but Respon- dent would "not give [the Union] an open and blanket commitment" 5 Contrary, to our dissenting colleague, we believe that the Administrative Law Judge adequately reviewed and properly resolved, on the basis of cred- ited evidence which has record support, the fact that the July 16 meeting was firm provided the Union's negotiators could cancel their prior business com- mitments, and that Respondent certainly knew of these prior commitments. of the strikers sought to return. The Administrative Law Judge found that Respon- dent not only refused to make any economic offer but also blocked any discussion of economic proposals until the Union agreed to Respondent's "big four" proposals, and this conduct was antithetical to good- faith bargaining and exhibited a cast of mind against reaching agreement. Further evidence of this attitude is the fact that before discussing economic matters the Union had to concede exclusive control to' Respon- dent over matters that parties are obligated by law to bargain about and which are commonly contained in bargaining agreements. We also agree with the Administrative Law Judge's rejection of Respondent's argument that its submis- sion of a contract proposal, including an economic offer, on July 11, 1973, cured or halted its unfair labor practices. As the Administrative Law Judge noted, this offer automatically lapsed at noon of the one day that Respondent was available to negotiate with the Union over the 20 subjects listed in the offer, subjects which the Union had not seen and was not familiar with because Respondent refused to make a proposal until July 11, 1973. As a practical matter, Respondent was making a take-it-or-leave-it offer during a period when the union negotiators did not have the time nor the opportunity to meet for a needed review and anal- ysis of the proposal so that they could bargain intelli- gently about its contents. This sort of practice at a crucial stage of negotiations denied the Union an op- portunity to bargain collectively and is further evi- dence of the Respondent's attempt to block meaningful discussion of the terms of the sought-after collective-bargaining agreement. As noted, supra, we agree with the Administrative Law Judge's credibility resolutions, findings of fact, and conclusions of law. Accordingly, we shall adopt his recommended Order. ORDER Pursuant to Section 10(c) of the National Labor Relations Act, as amended, the National Labor Rela- tions Board adopts as its Order the recommended Order of the Administrative Law Judge and hereby orders that Respondent, Federal Mogul Corporation, Greenville, Michigan, its officers, agents, successors, and assigns, shall take the action set forth in the said recommended Order. CHAIRMAN MILLER, dissenting: The facts here present a picture of a troubled nego- tiation which failed to produce agreement between the parties and resulted in what has obviously been an unsuccessful strike. The failure of the parties to have 952 DECISIONS OF NATIONAL LABOR RELATIONS BOARD a successful negotiation was caused by a number of factors, some of which are not, as I shall later point out, fully explicated on this record. But none of the factors which are explained by the evidence, in my view, constitute bad-faith bargaining on the part of either the Employer or the Union. Negotiations between Respondent and the Union began in August 1972, some weeks after the Union had been certified in late June 1972. Eight meetings were held in 1972 and 16 more in the first 5 months of 1973. A number of negotiating meetings were can- celed and a substantial number of others were started tardily or suddenly postponed because of difficulties encountered by the International Union in servicing this Local. Although the Company had suggested that the Union's problems in this regard evidenced bad faith, the facts do not bear out this charge. Instead it seems reasonably clear from the evidence that the Union's difficulties were administrative in nature. Be- cause of internal difficulties, budgetary and other- wise, it was not able to provide the kind of continuity in negotiators and the kind of regular, reliable meet- ing dates which might have made the negotiations more productive. Despite these problems negotiators progressed, al- beit perhaps more slowly than would be deemed real- ly desirable by those practiced in the art of collective bargaining. There is no serious claim here, however, nor could one be sustained, on the record before us, that during these early stages of the negotiations there was only "surface bargaining" or any other indicia of bad faith. Near the outset of the -negotiating meetings Re- spondent Personnnel Manager Willard suggested ground rules for negotiations which included the cus- tomary ground rule that noneconomic issues would come first and be disposed of before the parties tack- led the economic items. This ground rule was adhered to without objection from the Union until the meet- ings late in May. The decision of the Administrative Law Judge seems to suggest that this rule was forced on the Union by the Respondent, and the Administra- tive Law Judge also seems somehow shocked by this procedure. Neither his suggestion nor his seeming shock can be justified by the record or by customary standards of negotiating practice. As to the record-and also as to customary practic- es-the testimony of the Union's vice president is enlightening. He testified: I was informed at the beginning of the meeting by Mr. Willard that he was accustomed to negoti- ating language first which is certainly a common enough custom and that was fine with the Union. Similarly, Union Bargaining Committeeman Bur- gess, both in direct testimony and in an affidavit given to the Board in the course of the investigation of this case, verified that the Union did not object, until sometime in May 1973, to the practice of confining the discussion to noneconomic issues and not pro- ceeding with economic items until the noneconomic ones had been resolved. Respondent Personnel Manager Willard testified, without contradiction, that each of the different union representatives, who were sent in as spokesmen over the course of the bargaining, agreed that this was the "normal bargaining procedure that they were used to following." Such a procedure is in accord with bargaining prac- tices generally, a fact which the Administrative Law Judge seems not to have recognized or understood. Volume I of Law and Practice of the Labor Con- tract, a treatise authored by Benjamin Werne, has this to say on this subject at page 223: Management is best advised not to talk wages or money benefits until desired changes have been worked out on other aspects of the agreement . ... The agreement should be combed from top to bottom before there is a concession on money matters. Company negotiators must keep the cost of inefficient operation in mind as clearly as the dollar-and-cents value of an added holiday or extra week's vacation allowance. A seniority provision which compels the layoff of the only men who can handle a certain kind of assignment can be as damaging to the future of the business as the cash paid out to employees on sick leave. Concentration on economic issues to the exclu- sion of all other factors is a common pitfall of the inexperienced negotiator. In the instant case, in conformity with this custom- ary and, here, mutually accepted procedure, the par- ties did deal first solely with the noneconomic issues and reached agreement on a substantial number- some 25 or 26 items. The Administrative Law Judge, without justification in my view, characterized these as "peripheral noneconomic subjects." But when ex- amined, it appears to me that they represented, in toto, a very considerable area of agreement on considera- bly more important than "peripheral" issues. They included such subjects as seniority, layoff and recall procedures, the manner of representation of employ- ees by union stewards and other representatives, and other items important to any collective agreement which I doubt that anyone truly experienced in collec- tive negotiations would regard as "peripheral." FEDERAL MOGUL CORPORATION 953 There remained, however, difficulty with certain items. Eventually both parties agreed that the key to the success or failure of the attempt to resolve noneco- nomic matters lay in four principal areas in which the negotiators had failed to come to an agreement, but on which an agreement would have to be reached if the contract were to be acceptable to both parties: (1) management rights, (2) union security, (3) grievance procedure, and (4) hours of work. On these clauses, by May 10, there had been virtually no movement by either party. Respondent had proposed a broad man- agement rights clause whereas the Union had not agreed to include any kind of management rights clause whatever. The Union had proposed the maximum union se- curity permitted under law, and the Respondent had insisted on a complete open shop. As to grievance procedure, the parties had reached substantial agree- ments about most of the procedure, but had parted company with respect to pay for grievance time and as to what disputes under the agreement should be arbitrable-the Union insisting that all disputes should be arbitrable and up to this point the Compa- ny insisting that none should be. Finally, there were substantial differences with respect to the hours of work clause, where, again, it would appear that each party had refused to budge from its initial proposal. On May 10 the Union for the first time submitted a complete economic package which contained the Union's initial proposal on the obviously crucial item of wages. The proposal was quickly rejected by Re- spondent and no counterproposal was made. Rather, Respondent's representatives urged that the parties return to the process of attempting to reach agreement on the noneconomic items. Neither party engaged in any extensive discussion of the merits or demerits of the particulars of the union economical proposal. The Union protested that it now wanted to talk economics even without settling the noneconomic items, but the Company insisted that the parties should follow the procedures which they had been following for the many months of negotiations and attempt to resolve the noneconomic items before proceeding to econom- ics. In the last days of negotiation before the beginning of the strike which commenced May 30, 1973, some little progress was made with respect to the noneco- nomic items in dispute, but not enough to enable the parties to reach agreement. Respondent modified its position with respect to arbitration by agreeing that disciplinary cases would be arbitrable and that certain other cases could be sent to arbitration on a case-by- case basis' The Union continued to insist on arbitra- tion of all disputes and indicated that if the manage- ment would agree to this it would agree to a firm no-strike clause. On union security Respondent had offered a check- off clause but would not agree to a union shop. The Union, on its part, made no concessions from its full union-shop demands until May 29, when it proposed a union shop for new employees combined with an agency shop for present employees who had not yet joined the Union. This proved unacceptable to Re- spondent. On the remaining item-hours of work-the Union dropped its demands and agreed to the company pro- posal of a 40-hour week, which was a continuation of the hours under which the office unit had historically been operated. As to management rights, the Union indicated its first willingness to consider such a clause on May 24 6 Respondent then made some modifications in its pro- posed management rights clause, but the differences between the clause proposed by Respondent and the clause proposed by the Union were not resolved. Something should perhaps be said about the Respondent's management rights proposal, which the Administrative Law Judge appears to have viewed as unduly and perhaps unlawfully broad. The original management proposal in this regard reads as follows: Unless expressly and specifically provided to the contrary in this Agreement, the management of the Company's business at Greenville, Michi- gan, and the direction of the working forces in- cluding the planning, direction, and control of operations, the scheduling of work and the as- signment of employees to such work, the crea- tion, change, or abolition of jobs or job classifications, the retirement of employees, the control and regulation of all equipment and other property of the Company, the determina- tion of work standards and of the quality and quantity of work to be produced, the determina- tion of the source of materials and supplies, the selection of customers, the transfer or cessation of operations in whole or in part, the work to be contracted out, the transfer of work out of the plant, the methods, processes and means of per- forming the work, the determination and estab- lishment of any new or emproved work methods or facilities, the establishment and enforcement of reasonable rules of conduct, are all vested sole- ly and exclusively in the Company. It is further 6 Such was the testimony of Union Bargaining Committeeman Burgess. Union witness Solenberger testified that the Union had submitted a draft management rights clause earlier The Administrative Law Judge does not appear to have resolved the question of which witness' recollection was most nearly accurate. 954 DECISIONS OF NATIONAL LABOR RELATIONS BOARD agreed that the Company retains the right to ex- ercise any other right, function, or prerogative of management which is not abridged by an express and specific provision of this Agreement. date jobs and operations (subject to giving the union notice of such change); and the right to enact company policies, plant rules, and regula- tions which are not in conflict with this agree- ment, are vested exclusively in the employer. The Company retains the right to hire, sus- pend, discipline, and discharge for proper cause, to transfer and to relieve employees from duty because of lack of work or other legitimate rea- sons, except as expressly and specifically provid- ed to the contrary on the Agreement. The Company's not exercising any right here- by reserved to it, or its exercising any right in a particular way, shall not be deemed a waiver of any such right or preclude the Company from exercising the same in some other way not in conflict with the express terms of this Agreement. There is no substantial difference between this clause and others which have been incorporated in many collective agreements. Bulletin No. 1245-5, is- sued by the Bureau of Labor Statistics of the Depart- ment of Labor, is a study of management rights clauses in collective agreements. The study points out (p. 7) that some contracts contain short and simple statements of management rights, while others are "lengthy, with particular rights illustrated in detail." Typical clauses of the latter variety are then set forth in the study. Note the following clause therein set forth (p. 7) which differs only in minor detail from the one proposed in the instant case: The management of each employer and its oper- ations, the direction of the work force, including the right to hire, retire, assign, suspend, transfer, promote, discharge, or discipline for just cause, and to maintain discipline and efficiency of its employees and the right to relieve employees from duty because of lack of work or for other legitimate reasons; the right to determine the ex- tent to which the plant shall be operated; the right to introduce new or improved production methods, processes or equipment; the right to decide the number and location of plants, the nature of equipment or machinery, the products to be manufactured, the methods and processes of manufacturing, the scheduling of production, the method of training employees, the designing and engineering of products, and the control of raw materials; the right to assign work to outside contractors and to eliminate, change or consoli- To the extent, therefore, that the Administrative Law Judge relies on the language of Respondent's proposed management clause as establishing an 8(a)(5) violation, I believe he has erred. In this area, as in some other portions of his rationale, he seems to have been less than fully familiar with the practical realities of collective negotiations. Returning now to the chronology of the negotia- tions-immediately preceding the strike the Union once again demanded that the Respondent make an economic offer. Respondent continued to insist the parties should follow their original ground rules and resolve noneconomic items before reaching the eco- nomic issues. Although General Counsel sought to show that Respondent issued an ultimatum that the Union had to surrender and actually sign Respondent's proposals on these items before pro- ceeding to the economic discussions, the record does not bear out this contention, and the Administrative Law Judge properly made no such finding. Thus, Union Representative Solenberger testified with re- spect to such an alleged ultimatum: A. There was nothing like-well that was 'not said on either occasion. The closest thing that I can remember to it was something Mr. Eastman said on the 13th which was not said on the 29th, that it would be pointless to-to make an eco- nomic offer with the other things unresolved. JUDGE PLAINS Unresolved? THE WITNESS Yes. Solenberger also testified, when asked whether the failure to reach agreement on May 29 was as much the result of the Company's refusal to accept the Union's point of view on the items remaining in dispute as it was the Union's refusal to accept the Company's point of view, by saying "I think that would be a matter of opinion." Thus on May 29 both parties had moved somewhat from their initial positions with respect to manage- ment rights and grievance procedures, but that move- ment was too little, on both sides, to bring about agreement on either of these two issues. On union security the Company had moved a little by granting checkoff and the Union had moved somewhat from its demand for the maximum union security permitted FEDERAL MOGUL CORPORATION 955 by law but no agreement was reached on this issue. On hours of work, the Union's recession from its ini- tial demand had brought agreement. There thus re- mained three key noneconomic items on which many months of serious negotiations had failed to produce agreement and the Company was unwilling to pro- ceed to serious economic discussions until, in accor- dance with initially agreed-upon procedures, these key noneconomic issues were settled. The resulting impasse produced a strike. It is apparent from the testimony that in the union meetings preceding the strike it was the hope and desire and plan of the Union that by striking it would be able to put sufficient pressure on the Company to force it to make an economical proposal. The Union, however, at no time indicated to the Company that if it made an economic proposal the Union would be willing to move further than it had on the crucial noneconomic items. The Company's strategy in refus- ing to make an economic offer until these basic non- economic items were settled was consitent with the practice of the parties throughout most of the negotia- tions. Furthermore, contrary to the seeming assump- tion by the Administrative Law Judge, Respondent was following the conventional wisdom in so doing. As Werne says in the opus previously cited, (p. 223): If the Union has won economic gains, it is not likely to be much interested in management's suggestions for revising such items as the trans- fer, layoff, grievance or leave procedure. And the reader will recall Werne's warning elsewhere, quoted supra, that Concentration on economic issues to the exclu- sion of all of all other factors is a common pitfall of the inexperienced negotiator. Respondent's experienced negotiators were plainly trying valiantly to avoid that pitfall. The facts show that Respondent's negotiators here were, indeed, experienced. Respondent has agrre- ments with unions elsewhere in the country and is a party to two collective-bargaining agreements cover- ing other units at this location. There is no suggestion in the record anywhere of union animus on the part of the Company or of any motivation for its actions other than an earnest desire to follow those bargain- ing stratagems most likely to secure provisions in the agreement it deemed favorable to the management. That, of course, is not violative of any provision of the Act. On the other hand, the Union's strategy of engaging in strike at this juncture-i.e., May 30-was, from its point of view, equally well advised. It had been unable to persuade Respondent to agree to its proposals on noneconomic issues and Respndent was standing firm and refusing to proceed with economic matters until the noneconomic issues could be resolved. Quite un- derstandably, the Union's negotiators deemed their best move to be one of bringing economic pressure to bear on the Employer in an attempt to get the negotia- tions off dead center and to pressure the Employer into a more flexible position on the noneconomic is- sues as well as "smoking out" a definitive employer offer on economic items. It had, on May 11, foreseen the probable need to employ that stratagem and had carefully secured advance strike authorization from the membership, even before knowing definitely what the Employer might offer at the latter May meetings. Picket signs had been prepared during the last week in May. The Union's negotiators were, obviously, also well seasoned and knowledgeable about bargaining tactics. So it was that on May 30 the already prepared picket signs were put to use and the strike began. It is interesting to note that although the Union regarded the Respondent's position in the bargaining as requiring a resort to economic pressure, its experi- enced negotiators quite obviously did not, at the time, regard Respondent's attitude as evidencing any bad faith in negotiations. For the Union, again demons- trating its expertise, immediately attempted'to secure the benefit of having this Board declare the strike to be an "unfair labor practice strike" by filing an unfair labor practice charge almost simultaneously with its strike call. It charged only, however, that certain claimed unilateral action not relevant to any of the issues discussed was unlawful. That charge was found by the General Counsel to be without merit, and only later was any charge, filed with respect to Respondent's bargaining conduct here in issue. The objectives of the strike pressure were, in part at least, fulfilled. At the first meeting following the strike, although neither party made any significant movement with respect to the noneconomic items, Respondent, under pressure of the strike, was "per- suaded" to abandon its insistence that discussions continue to be confined to noneconomic items. In- stead, it was "persuaded" to submit a complete "pack- age" on all economic items, including wages. In an effort to stimulate prompt and serious negoti- ations Respondent put a time limit on its offer-a not uncommon practice at crucial stages of collective bar- gaining. Although the Administrative Law Judge re- garded this time limit as having "ultimatum" characteristics, the evidence on the record suggests instead that it was essentially a typical negotiating gambit. Thus, according to Personnel Manager Wil lard, industrial Relations Manager Eastman, in re- 956 DECISIONS OF NATIONAL LABOR RELATIONS BOARD sponse to a union inquiry as to whether the time limit be extended, made clear both that the time limit was not an irrevocable ultimatum and also that the terms offered did not constitute a "take-it-or-leave-it" offer. Instead he stated in answer to Union Representative Spotwood's inquiry about an extension on the time limit in the offer "that it would depend on the tone of the negotiations:... If we are making progress I am sure we can discuss it and we can . . . things are going along well at that time we will talk about extending the offer." After the Union reviewed the Respondent's eco- nomic offer for clarity, the parties agreed to meet on the morning of July 16 for further negotiations. There is some difference in the testimony about the firmness of the parties' agreement to this schedule, which, in my view, was not adequately reviewed or properly resolved by the Administrative Law Judge. While General Counsel's witnesses indicated that Union Negotiator Spotwood was less than certain about her ability to agree firmly to that schedule, Respondent's witnesses testified that the agreement to that date was firm, and that they were not made aware of any prob- lems which the union negotiator might have in meet- ing what they regarded as a firm commitment to meet on July 16. In reviewing the record, the evidence seems to me to compel a finding that Union Negotia- tor Spotwood may have subjectively anticipated some difficulties about the July 16 date, but that she did not communicate them to the management representa- tives on July 11. Only after the management represen- tative had left the July I1 meeting did Spotwood make certain telephone calls, which appear not to have re- solved her difficulties, but she did not, even then, tell any of Respondent's representatives that there would be a problem about the feasibility of this agreed-upon date. Spotwood or some union official, at a later date, advised the mediator that the meeting for the 16th could not take place because of Spotwood's unavaila- bility. And on July 13 the mediator so advised Respondent's representatives. Employee Negotiator Dickenson also testified that he did not learn of the cancellation until the weekend preceding July 16. Subsequently, a further meeting was scheduled for July 25. Respondent's industrial relations manager traveled a considerable distance by automobile in or- der to attend this meeting, only to find when he ar- rived that once again the Union had inexplicably canceled it on that very morning. There is no evidence that the Union ever inquired of either the mediator or the Company as to whether, in view of the union inspired cancellations of the July 16 and 25 meetings, Respondent would consider its economic offer still available for discussion or whether it had any new or different economic offer to make. So far as the record shows, there was no further union request for a meet- ing until sometime in August, when a meeting for August 28 was arranged by the mediator. Although the Union initially indicated that it wished to contin- ue negotiating the terms of a contract at that time, it made no serious attempt to do so at this meeting. Instead, after a brief exchange of comments, the Union advised Respondent that the strike was over and discussions then focused solely on the issue of the reinstatement or rehiring arrangements for striking employees, most of whom by the time had been re- placed. That issue went unresolved. The Union asked for a reinstatement of all the strikers, whereas Re- spondent took the position that most strikers had been replaced and that therefore all it could offer, essentially, was preferential hiring as jobs opened up, with the promise that any reinstated striker retain his full seniority, but without credit for the time involved in the strike. The Union then volunteered that if the Company would agree to take back all the striking employees, the Union would not only drop its unfair labor prac- tice charge but would also relieve Respondent of all obligation to bargain further. It is of particular inter- est, in assessing Respondent's bonafides here, to note that it chose not to take advantage of this offer to rid itself of the Union and to relieve itself of all bargain- ing obligations by accepting this rather remarkable union proposal.' It is upon this evidence that the Administrative Law Judge and my colleagues would find that "the evi- dence demonstrates that Respondent was not bar- gaining with any sincere intentions of reaching an agreement with the Union." I do not see how that conclusion can possibly withstand judicious scrutiny of this record. As I view the facts, they establish only that both parties had firm positions on certain key noneconom- ic issues which, because of their importance to both sides, were characterized by the parties as "the big four." On these issues-union security, arbitration, management rights, and hours of work-neither par- ty, throughout several months of negotiations, retreat- ed in any substantial degree from its respective original ground. The Union insisted upon the maxi- mum union security permissible under law, and the Respondent resisted firmly. The Respondent insisted on a relatively strong management rights clause, and 7 Also of interest in assessing Respondent's motivations throughout this series of events is the fact that Respondent, in hiring permanent replacements for the stokers , advised the replacements that they were being hired as "permanent replacements" but frankly volunteered also to advise each such new hire that because of a pending unfair labor practice charge there was a chance of a future legal determination that the strikers might later be in a position to reclaim their jobs FEDERAL MOGUL CORPORATION 957 the Union resisted firmly. The Union insisted upon arbitration of all disputes, while the Respondent wished arbitration on none. The Union wished to re- duce the workweek; the Employer insisted on main- taining it at its 40-hour level. Only as a self-imposed deadline of the end of May approached did either party make any moves whatever in these areas. As the facts developed, when they did move, they moved too little to accomplish anything more than a narrowing of the "big four" issues to a "big three." On the big three, both parties moved a little. Respondent made some modifications of its management rights clause. The Union offered some modification of its full union-security demand. Both parties abandoned their extreme positions on arbitration and there began to be some exploration, although ultimately an unfruitful one, of whether there could be an agreement to arbi- trate some, but not all, issues. Dissatisfied with the amount of company move- ment on these issues and eager to talk money, the Union brought pressure on the Company by calling a strike. The events following the strike, particularly the Union's conduct with respect thereto, are difficult to understand or assess , although , admittedly, a review tribunal such as this Board-is not in the best position to understand the subtleties and nuances of a situa- tion from which it is distant in both fact and time, upon a cold and never truly complete record. We do not know, for example, why, when the Union had finally successfully pressured the Compa- ny into making an economic offer, it seems to have been so unconcerned about canceling the crucial July 16 meeting. Almost any experienced negotiator, view- ing, this record, would view that meeting as having been the optimum time for the achieving of a settle- ment . Nor do we know why apparently no union in- quiries were made as to whether the Respondent's assertion of a July 16 deadline for its economic offer could be extended in view of the necessity of cancel- ing or postponing the July 16 meeting , even though Respondent's negotiator had clearly flown a signal on the 11th that the "deadline" was open to later discus- sion. Had the Union already determined that its strike could no longer be supported? Had the employees already shown a willingness to accept something very close to the Company's last offer? Was a settlement on those terms too embarrassingly low to conform to what the Union may have determined to be satisfacto- ry wage and fringe benefit standards? Had the main- tenance of this "strike at a location which had apparently proved very difficult for the Union ade- quately to service become too burdensome for it? One cannot help but be curious about these questions, but we have answers to none of them. All we know is that the record facts appear, inexpli- cably, to show a remarkable lack of concern by the Union's International representative about a rapidly deteriorating situation from the Union's point of view. Even the next scheduled meeting, some 9 days later, was abruptly, and without notice or explanation either to Respondent or to the employee -negotiators, cancelled, apparently without any request for an early rescheduling. The Union's position at the August 28 meeting strongly suggests that at some point the International representatives of the Union became convinced that they could not obtain what they regarded as a satis-, factory agreement. For at that meeting, the Union abandoned not only the strike, but also freely offered to abandon its representative status. Thus the Union never again, so far as we know, even requested anoth- er meeting or attempted to engage in any further ef- forts on behalf of the employees in this unit, other than to seek to have General Counsel of this Agency pursue the unfair labor practice route. And it will be remembered that it had voluntarily offered to forego even that at the August 28 meeting. Whatever the explanation for these events, there is not a shred of evidence anywhere to suggest that Re- spondent was doing anything, in this entire sequence of events, other than to obtain contract terms which it deemed satisfactory to it. There is not only a com- plete lack of evidence to suggest that Respondent was attempting to undermine the bargaining or to seek to rid itself of the Union, but indeed all of the evidence suggests quite the contrary. At the plant in question, Respondent has agreements with two other unions and there is nothing in this record to suggest that its relationships with those unions is other than satisfac- tory. Indeed, the fact that the toolroom unit acted responsibly in honoring the no-strike clause' in its agreement with Respondent during 'the strike of the office personnel suggests that Respondent and that union-the UAW-have a mature relationship. When Respondent was offered an opportunity to buy its way out of the bargaining relationship by reinstat- ing all strikers and accepting a voluntary, waiver of bargaining rights by the Union, it rejected it. When Respondent hired permanent replacements, it demon- strated its respect for the law which this Agency ad- ministers by fairly putting all such replacements' on notice that a proceeding, was pending before this Board which might have an adverse effect on the per- manence of the replacements' employment. If, upon this kind of record, I were to sign my name to a decision and opinion concluding that "Respon- dent was not bargaining with any sincere intention of reaching an agreement with the Union" it would seem to me that I would be speculating in unsupported 958 DECISIONS OF NATIONAL LABOR RELATIONS BOARD assumptions in a most injudicious way. Equally sig- nificant, it is my view that by signing such an opinion I would be demonstrating a complete lack of expertise about this practicalities of collective bargaining. For to hold that Respondent was guilty of anything by proposing a management clause which so closely parallels clauses repeatedly included in collective agreements would evidence a total lack of under- standing of what goes on in bargaining rooms around this country. To suggest that an employer who insists upon noneconomic issues being resolved before the bargaining proceeds to a full consideration of eco- nomic issues would show an equally embarassing na- ivete about the practical aspects of labor-management negotiations. To find that the frequently used bar- gaining ploy, of putting a time limit on an economic offer at the time of the "crunch" in collective bargain- ing demonstrates anything other than a serious at- tempt to force prompt and serious negotiations and thus to end a strike would be a similar admission of an unrealistic, ivory-tower approach to the facts about the conduct of labor negotiations. In sum, it is my view that the finding of a violation of Section 8(a)(5) upon this record is both contrary to law and unsupported by the evidence. And it belies the expertise in the art and practice of collective bar- gaining which I would like to think resides in this Board. For these reasons, I respectfully dissent, and would dismiss the complaint in its entirety. DECISION HERZEL H. E. PLAINE, Administrative Law Judge: The issue in this case is whether Respondent refused to bargain in good faith with the Charging Party (Union), the certified representative of the unit of Respondent's office employees at the Greenville, Michigan, plant, in the negotiations for an initial collective-bargaining contract that took place over the span of a year from August 1972 to August 1973 without agreement reached. The claim is that Respondent prevented meaningful collective bargaining from taking place by re- fusing to discuss, or itself submit, economic proposals in- cluding wage proposals, unless and until the Union would agree to three noneconomic proposals relating to (1) man- agement rights, (2) an open shop, and (3) a grievance proce- dure that, except in employee dismissal cases, excluded binding arbitration as the ultimate step and, where the Union would not accept the employer's decision, could be settled only by strike that would terminate the contract if the strike endured longer than 5 days. The Union, viewing the alleged conduct and bargaining posture of Respondent as a violation of Section 8(a)(5) and (1) of the National Labor Relations Act (the Act), called a strike of the unit employees on May 30, 1973, and filed an unfair labor practice charge with the Board.' The strike i The original charge was filed May 30, 1973 A first amended charge was filed June 4, 1973, and a second amended charge was filed August 27, 1973. ended on August 28, 1973, without a collective-bargaining agreement being reached. The complaint,2 in addition to alleging the 8(a)(5) and (1) failure to bargain in good faith, alleged- derivative 8(a)(3) violations by Respondent, in failing to accord the rights due unfair labor practice strikers to the striking employees who sought to return to work and were denied reinstatement in some cases or tardily reinstated in other cases. Respondent's answer and position at the trial was that it engaged in lawful hard bargaining prior to the strike, that during the strike it made a complete economic and contract offer which the Union ignored, that the strike was an eco- nomic strike and not an unfair labor practice strike, and that the returning strikers were entitled only to the reinstatement rights of economic strikers. The case was tried in Greenville, Michigan, on November 7-8, 1973. The Union and Respondent have filed briefs. Upon the entire record in the case, including my observa- tion of the witnesses and consideration of the briefs, I make the following: 3 FINDINGS OF FACT I JURISDICTION Respondent is a Michigan corporation operating several plants in the State of Michigan. The plant at Greenville, Michigan, the only facility involved in this case, is engaged in the manufacture, sale, and distribution of precision bear- ings for automotive, farm implement, and highway equip- ment. In calendar 1972, a representative year of its operations, Respondent manufactured at, and sold And distributed from, the Greenville plant products valued in excess of $500,000, of which products valued in excess of $50,000 were shipped directly to points outside Michigan. Respondent is, as the parties admit, an employer engaged in commerce within the meaning of Section 2(2), (6), and (7) of the Act. The Union is, as the parties also admit, a labor organiza- tion within the meaning of Section 2(5) of the Act. 11 THE UNFAIR LABOR PRACTICES A. Union Representation at the Plant At Respondent's Greenville plant which produces preci- sion bearings for automotive and other equipment, the bulk of the workers, some 400-500, comprise a production and maintenance unit, represented by the Federal Mogul Work- ers Association (Workers Association), an independent 2 Original complaint filed July 16, 1973, amended complaint filed Septem- ber 28, 1973. 3 The transcript of the record requires correction in two places in order to avoid misunderstanding. The transcript as a whole is replete with garbled words and sentences, largely reflecting poor reporting and transcription. Fortunately, the meanings at these places come through notwithstanding the garbles. Since none of the three parties has requested correction of the record, I have refrained from attempting any larger task of correction than the two changes set out herein. Accordingly, it is ordered, that the transcript of the proceedings is corrected in certain particulars FEDERAL MOGUL CORPORATION 959 union unaffiliated with an international union. Respondent's toolroom employees at the plant, between 25-50 persons, is a separate unit, represented by the Auto Workers Union (UAW). The office workers unit, the third unit at the plant, com- prising about 30 office clerical employees and laboratory technicians, is represented by a third union, Local 42 OPEIU, the Union directly involved in this case. Workers Association and UAW each have collective-bar- gaining contracts with Respondent for their respective units. The Union, Local 42, achieved the status of representa- tive of the office clerical workers unit by election June 16 and Board certification June 26, 1972, but neither the ensu- ing negotiations for an initial contract nor the strike that commenced on May 30, 1973, has produced an agreement. B. The Negotiations for a Contract The negotiations between Respondent and the Union began in a first meeting, August 23, 1972. All told, eight meetings were held in 1972. Sixteen further meetings were held in the first 5 months of 1973, through May 29, and the Union called a strike of the unit employees commencing May 30, 1973. There were two additional negotiating meet- ings while the strike was in progress, held in June and July 1973, arranged by State Mediator Mason, who became in- volved starting with the May 10, meeting, and a final meeting (the 27th) held August 28, 1973, for the purpose of the Union terminating the strike and attempting to arrange for the return to work of the strikers. Respondent's principal. negotiator in the first 24 meetings August 1972-May 1973, until the strike of May 30, 1973, was its Greenville plant personnel manager, Michael Wil- lard. In the three final meetings during the strike, James Eastman, the company industrial relations manager for its component parts group (covering five of Respondent's plants including Greenville) to whom Willard was responsi- ble, took charge of the negotiations, with Willard continu- ing to participate as part of the employer's committee. The Union had an employee bargaining committee, of which employee Edwin Dickenson, chairman of the em- ployee unit and bargaining committee, and employee Rob- ert Burgess, were the principal members. However, the Union's professional employees from Detroit (and one from Kalamazoo) were the spokesmen and chief, negotiators for the Union. In the first meeting August 23, 1972, where the Union brought m its contract proposals, and in the last meeting, August 28, 1973, where the Union sought to nego- tiate return of the strikers to work, the union spokesman was its president and business representative, Mabel Holleran, of Detroit. Starting with the second meeting, September 30, 1972, because Personnel Manager Willard apparently want- ed weekend meetings to avoid pulling both employees Dick- enson and Burgess off jobs, the Union sent as spokesman its business representative, Norma Tackett, from Kalama- zoo (which was closer, than Detroit). Then came a shift in preference for night meetings, and still later afternoon meet- ings, during the week. Tackett couldn't handle night meet- ings, according, to Union President Holleran, and Union Business Agent Ruth Spotwood of Detroit was assigned to be union spokesman. Before she was free to step in, Union Vice President Peter Solenberger of Detroit acted as spokes- man at the sixth and seventh meetings, November 28 and December 2, 1972, and thereafter Union Agent Spotwood took over as union spokesman and handled most of the negotiating meetings for the Union. Because of concern for Spotwood's failing health in mid-1973 Union Vice President Solenberger came with her and acted as cospokesman at the 24th and 25th meetings, May 29 and June 13, 1973, but not the 26th meeting, July 11, 1973, when she was again sole chief spokesman for the Union. This was Spotwood's last meeting, she took medical leave at the end of July, was hospitalized sometime thereafter, and remained so at the time of the trial. Union Vice President Solenberger testified that he was chairman of the Union's board of review, which kept track of what the business representatives were doing, so that Union Agent Spotwood was reporting to him through the whole period of her participation in the negotia- tions, he said.4 C. The Impediment At the first negotiating meeting between Respondent and the Union, August 23, 1972, the Union submitted its pro- posal for a contract (G.C. Exh. 2), complete except for a wage proposal. The Union indicated that its wage proposal would come later after Respondent had supplied the current job descriptions and rates of pay, which the Union request- ed and later received. Beginning with the second meeting, September 30, 1972, Personnel Manager Willard set the ground rules for the negotiations, namely, (1) that all noneconomic issues would be discussed and negotiated first and economic issues would be held until the end, and (2) that items agreed to and initialled by the parties would not be discussed further. Willard testified that he firmly established these ground rules successively with Union Negotiators Tackett, Solen- berger, and Spotwood. He was not concerned with whether they consented; indeed, he said, he didn't know if they agreed, but this was the way he normally proceeded in contract negotiations and this was the way the negotiations were held. Union Vice President Solenberger conceded that in his first negotiating meeting as union spokesman, November 28, 1972, he went along with Personnel Manager Willard's ground rule of putting noneconomic matters ahead of eco- nomic matters, sometimes described by the parties as nego- tiating language first or negotiating the words first. Employee Burgess testified that at the January 17, 1973, meeting, with Spotwood then the new union spokesman, Willard insisted on holding all economic matters till the end of the negotiations "to get the words out of the way," as he put it, and Spotwood did not question this. However, as Personnel Manager Willard testifed, the union negotiators were always unhappy with his repeated statements rejecting economic demands until noneconomic were accepted, and in the last three or four negotiating Except for Union Agents Spotwood and Tackett, all of the persons named and described above testified and supplied the pertinent information concerning the negotiations 960 DECISIONS OF NATIONAL LABOR RELATIONS BOARD meetings before the strike of May 30, 1973, said Willard, the Union started to talk about getting economic proposals from Respondent. Going back to the beginning and over a period of time as the negotiations proceeded, the parties were able to dispose of and agree upon the language of a group of clauses on peripheral noneconomic subjects, such as union recogni- tion, military leave, nondiscrimination, use of bulletin boards, union representation by stewards, leaves of ab- sence, personal leave, layoff and recall procedure, and some few others. It became clear however, that there was a sharp cleavage and inability to reach agreement on a number of noneconomic items. Most prominent were four issues, la- beled by the parties "the big four" (later "the big three" when the Union accepted the Respondent's position on one of the items). These were, (1) a management rights clause (G.C. Exh. 3), which Respondent proposed early in the negotiations; (2) union security; (3) the grievance proce- dure; and (4) number of hours of the regular workweek.5 On item (1), management rights, Respondent claimed en- tire control of all operations, including creation and change of jobs and job classifications, without negotiation with the Union. The Union's position, according to Union Vice Pres- ident Solenberger, who provided counterproposals, was a willingness to concede the employer's sole control and dis- cretion over planning, operations, equipment, and material, but that creation and change of jobs and job classifications should be matters of negotiation with the Union. At the time of the commencement of the strike, the most that Re- spondent would move in this direction was a willingness to drop sole control over retirement of employees. Respondent rejected the union suggestion to use the management rights clause that was in Respondent's contract with the UAW governing the employees of the toolroom. On item (2), union security, the Union wanted compulso- ry union membership as a condition of employment of all employees. Respondent would agree only to voluntary union membership, for those current and new employees who wanted it. As negotiations progressed, the Union of- fered to drop the requirement of union membership for current nonunion employees and limit the requirement to incoming employees. This was not acceptable to Respon- dent, but it did offer to provide a checkoff of union dues from voluntary union member employees. After the strike began May 30, 1973, in the first meeting thereafter, June 13, 1973 (called by State Mediator Mason), the Union offered a further modification of its position to a "full agency shop," which under Michigan law gave both incoming and current employees a right to choose not to join the Union but required each nonjoiner to pay to the Union, as bargain- ing representative, a service fee equivalent to union dues for members.6 This was not acceptable to Respondent. On item (3), the grievance procedure, Respondent's initial position was that the final step of the procedure should be management's determination, coupled with a no-strike 5 It was evident at trial , as at the negotiations , that there was an overlap of economic effect in many of the so-called noneconomic matters, neverthe- less item (4) above was treated as a noneconomic item in the negotiations. 6 See Warczak v. Board of Education, School District of City of Detroit, 84 LRRM 3008, 61 LC ยง 52, 225 (Mich. Cir. Ct., 1973) pledge by the Union. This was not acceptable to the Union, said Union Vice President Solenberger, because it gave Re- spondent the complete right to interpret the contract. The Union wanted arbitration as the final step of the procedure and was ready to concede a no-strike pledge under that condition. The Union also wanted the stewards' investigat- ing time to be paid time. By the time of the strike, May 30, 1973, Respondent had moved to a willingness to agree to arbitration as the final step in dismissal of employee cases only; as a'final step for all other grievances, where the Union would not accept management's determination, the Union would have to strike, and if the strike endured more than 5 days the con- tract between the parties would terminate. This proposal was not acceptable to the Union (The Union cut down its demands regarding stewards, and Respondent appeared willing to pay for steward's investigating time in one step of the grievance procedure.) At the meeting May 29, 1973, on the eve of the strike, Personnel Manager Willard suggested a willingness by Re- spondent to agree to arbitration on a case by case agreement to arbitrate, but conceded that this meant no arbitration unless agreed to each time a dispute arose. The union felt this still left the Respondent in control of interpreting the contract. On the Union's part, Union Vice President Solen- berger offered at the June 13, 1973, meeting (after the strike began) to separate out areas or subjects of disputes that would be arbitrated and areas of disputes that would be settled by strike, but Respondent declined to explore this. On item (4), hours of workweek, the Union wanted a 35-hour week, 7-hour day, Respondent wanted a 40-hour week, 8-hour day. On the eve of the strike, at the meeting of May 29, 1973, Respondent rejected a union compromise offer of a 37 1/2-hour week, and the Union gave in and agreed to the 40-hour week. At this point the "big four" became the "big three" non- economic items that were stalled in the postures of dis- agreement described above. As the parties went through the various articles of a pro- posed contract from meeting to meeting, evolving agree- ment on some items and disagreement on others, Respondent adamantly held to its refusal to discuss eco- nomics until the rest of the contract was agreed upon. The Union's entire proposal, including all of its economic pro- posals (other than wages) such as vacations, insurance, prof- it sharing, sick days, longevity pay, shift pay, and cost of living increases had been before Respondent since the early meetings of 1972 (a few had come in as amendments to the original proposal, G.C. Exh. 2, submitted at the first meet- ing). Respondent submitted no counterproposal in the pres- trike meetings of 1972 and 1973 other than occasional drafts of articles, such as its management rights article (G.C. Exh. 3). According to employee committee members Dickenson and Burgess (Personnel Manager Willard corroborated this), in several of the early 1973 meetings, Union Negotia- tor Spotwood sought to have Respondent "lay the words aside," get to the economic issues, and come back to the words; but each time Willard refused and insisted they would deal with the words first and then the economic part. Thus, said Dickenson, each time the negotiating parties FEDERAL MOGUL CORPORATION 961 reached an economic matter in the union proposal, they wrote an E (for economic) on it and put it in the back of their folders. At the meeting of either April 10 or April 11, 1973, said Personnel Manager Willard , Union Negotiator Spotwood submitted the union wage proposal related to job descrip- tions and classifications , but then took the proposal back temporarily to make some corrections and resubmitted it in final form at the meeting of May 10, 1973 . Willard took the proposal saying, according to employee Burgess, that he needed time to study it. At the next meeting, May 24, 1973, when asked about the Union's economic proposal Personnel Manager Willard said, according to his own testimony as well as the testimo- ny of the employee witnesses , that the proposal was reject- ed, gave no reasons for rejecting it, refused to discuss it, and offered no counterproposals . Furthermore , as employees Burgess and Dickenson testified , Willard said the Respon- dent would not give the Union an economic proposal until it signed Respondent's four clauses ("the big four") on man- agement rights , union security , grievance procedure, and hours of work. At about this point, following a caucus of employees Dickenson and Burgess and Union Negotiator Spotwood, Spotwood advised Willard of a prior strike vote taken by the employees and set a strike deadline of May 30. Accord- mg to Burgess and Dickenson about 25 employees had met on the previous May 11 in the local bank building to receive a report on the progress of negotiations and to consider strike action. Dickenson chaired the meeting. He explained the course of the negotiations and Respondent 's insistence on getting agreement on the "big four" items before it would talk about economics . He asked for a strike vote in order to get a counterproposal from Respondent . Burgess told his fellow employees the strike vote was needed to get their power behind the union negotiators to obtain an economic proposal, but that a strike vote didn 't mean that they would necessarily have to strike . Burgess said the vote was 21-4 for a strike. Personnel Manger Willard testified that he was aware of the strike vote taken , before the May 24 meeting. At the conclusion of the May 24 meeting the parties set the next meeting for May 29 , with everyone involved fully aware that a strike had been set for May 30 if there was no negotiating movement toward agreement. The May 29 meeting was a long one , from 5 p.m. till after midnight. The state mediator participated, as he had in the earlier May meetings , and noted his understanding that unless an agreement was reached there would be a strike the next day. Union Vice President Solenberger described the meeting in some detail and Personnel Manager Willard agreed that Solenberger's description was essentially accu- rate. In summary , the parties went through three successive rounds of considering the unresolved noneconomic items, in particular the "big four," with some suggested modifica- tions by each side not acceptable to the other. On each round -either Union Negotiator Spotwood or Solenberger or both would ask Respondent for its economic proposals and each time, said Solenberger , Willard made the same replies, namely, the Union's economic proposals were rejected, Re- spondent was willing to negotiate a complete contract that night , but would not be making economic counterproposals until the Union agreed to Respondent 's terms on the big four noneconomic issues. (Willard indicated , in his testimo- ny that he didn't lump these issues as a group in his replies; rather, when asked for Respondent 's economic offer, he would reply to the Union , we reject your economic propos- als, but are you ready to sign our management rights clause? repeating this formula with the various big four clauses.) On one of these rounds, the Union gave up on one of the big four items, namely, its contention for a 35-hour week and accepted Respondent's 40-hour week , reducing the big four noneconomic issues to the big three . Nevertheless there was no change in Respondent's refusal to make any offers or negotiate regarding the Union 's economic proposals. D. The Strike and Subsequent Negotiations As a result, the unit employees went on strike May 30, 1973. Their picket signs stated that the Company refused to bargain fairly and was engaging in an unfair labor practice; and their advance and contemporaneous advice to the lead- ership and members of the other unions in the plant was that the office employees were not going on, or on, an economic strike but had to strike in order to get an econom- ic proposal from Respondent because Respondent would not give any such proposal unless the Union signed up on Respondent 's four major noneconomic demands (testimony of Vice President Peterson of Federal Mogul Workers Asso- ciation , the shop employees' union; and union circulars, G.C. Exhs. 4 and 5). With the strike in progress , the negotiating committees met next on June 13, 1973, at the call of the state mediator. Respondent's Industrial Relations Manager Eastman took over as spokesman for Respondent. (In his testimony East- man agreed that Union Vice President Solenberger's de- scription of the meeting was accurate .) According to Solenberger, Union Negotiator Spotwood noted at the start that the Union having conceded at the May 29 meeting on the hours of work issue, the three other major noneconomic issues remained as the stumbling block under Respondent's ultimatum that the Union would get no economic proposal until it agreed to Respondent's positions on the three issues. The parties then moved through a discussion of these items. On the union shop issue, Solenberger offered to recede from a partial union shop to a full agency shop, which would give every employee, newcomers as well as existing employees, the choice of joining the Union but nonjoiners would pay agency fees equivalent to union dues (see text at fn. 6, supra). Eastman said that requiring new employees to join the Union or even pay agency "dues " was a compulsion that would not attract the kind of employees Respondent wanted. On the grievance procedure, and the Union 's contention for arbitration as the final step in settling grievances rather than strike, Solenberger offered on the part of the Union to separate out areas for arbitration and areas for strike. East- man replied that Respondent was unwilling to turn manage- ment over to a third person, named an arbitrator; Respondent wanted grievances settled between the parties. On the management rights article , Solenberger suggested that the Union was willing to make further concessions if 962 DECISIONS OF NATIONAL LABOR RELATIONS BOARD Respondent would show some willingness to compromise its position of total control. Eastman answered that because the office workers of the Greenville plant were a support group for the rest of the plant, Respondent wanted flexibili- ty in dealing with them and hence wanted a very complete management rights clause. As a result of this discussion, said Solenberger, the parties had come the circle of noneconomics to economics. Union Negotiator Spotwood asked if the Respondent would give an economic counterproposal. With elaboration, said Solenberger, Industrial Relations Manager Eastman refused. Eastman explained that making a contract was like building a building-one had to have a sound foundation and these noneconomics were the sound foundation, until completed there would be no building. Eastman said it would be pointless for Respondent to make an economic offer with those matter unresolved. The union negotiators commented that Eastman's posi- tion was the same as Personnnel Manager Willard's position previously expounded, that Respondent had not altered its stance of requiring the Union to accept the Respondent's positions on the big three items before it would make an economic proposal, and that the parties were at the same 'Place they had been at the conclusion of the May 29 meet- ing. The mediator adjourned the meeting without setting a new date. On July 11, 1973, at the call of the state mediator, the negotiators met again at the bank building in Greenville, with Eastman as spokesman for Respondent and Spotwood as spokesman for the Union. According to employee negoti- ators Dickenson and Burgess, the, parties went over the controversial big three items without noticeable movement on either side. Spotwood then said the Union could not accept Respondent's grievance procedure, management rights, and union security positions in order to get an eco- nomic proposal. Following a lunchbreak in the meeting, Respondent came back to the negotiating table with a handwritten offer of a proposed contract (plus two typed sheets on a management clause and loss of seniority, G.C. Exh. 6). The offer included Respondent's economic proposals, including a wage offer of an annual 3 percent wage increase for 3 years, commencing in August 1973. Item 23 of the offer made clear that the proposal only identified the items of the proposed contract, leaving the express language to be drafted. Item 23 concluded with the following condition: This offer is in effect until 12:00 noon July 16, 1973. Unless it has produced a settlement it is withdrawn and no longer exists. Industrial Relations Manager Eastman read through the offer, and the union negotiators said they would review it. The parties then (it was Wednesday, July 11) discussed a next meeting, which became a problem, as employee Dick- enson noted, because Respondent was insisting that its offer was good only until 12 noon, Monday, July 16, and Indus- trial Relations Manager Eastman said he could not meet anytime before 10 a.m. July 16, nor anytime thereafter in the following week, because of other business commitments. Union Negotiator Spotwood also had conflicting date prob- lems (according to Dickenson, Burgess, and Eastman), in- cluding commitments for July 16. Eastman thought her problems related to the intervening days. She asked, accord- ing to Dickenson if extension of the July 16 time limit was possible in view of the short time it allowed, and Eastman replied no, adding if the parties met in the morning of the 16th and time was needed to help come to an agreement, he might think about it. Eastman corroborated Dickenson's testimony, but also made clear that it was the intention that Respondent's proposal for a contract would lapse if not accepted by July 16. Union Negotiator Spotwood then agreed to a meeting at the same location, 10 a.m., July 16, provided, according to employee negotiators Dickenson and Burgess, that she was able to cancel other scheduled meetings for July 16. It was their testimony that when the meeting of July 11 broke up, Spotwood had left the impression that there would be a meeting at 10 a.m., July 16, which she would attend unless she called the state mediator to the contrary. Managers Eastman and Willard testified that she left the impression the date was firm without any proviso. In any event, according to Personnel Manager Willard the state mediator telephoned him on July 13 saying the Union could not make the meeting on Monday, July 16, and the mediator, without provision for a new date, cancelled the meeting. Employee negotiator Dickenson testified he learned of the cancellation of the meeting on the weekend preceding July 16 7 No meeting of the negotiators was held on July 16, and the Union did not communicate with Respondent either concerning the merits of its offer of July 11 or requesting its extension beyond the July 16 time of lapse. Correspond- ingly, Respondent gave no indication to the Union directly or indirectly that the expiration time of the offer had been extended beyond noon July 16, 1973. Commenting in his testimony on the absence of any union communication concerning the Respondent's offer of July 11, employee negotiator Burgess said the negotiating committee felt that the brief life of the offer, July 11-16, with Manager Eastman specifying he could negotiate re- garding it only on July 16 and Union Negotiator Spotwood unable to break her previously made appointments that day, was unreasonable; and the proposal having lapsed, there was nothing to respond to. Employee negotiator Dickenson stated, on cross-examination by Respondent, that the com- mittee regarded the Respondent's economic offer of July 1 I terminated by its own terms on July 16. Industrial Relations Manager Eastman, on his cross-examination by the General Counsel, conceded that Respondent's offer of July 11 had lapsed on July 16 by the Union's failure to accept the offer. On Respondent's cross-examination of Union Vice Presi- dent Solenberger, concerning the absence of a union re- sponse to the Respondent's offer of July 11 and continuation of the strike, Solenberger testified that he be- came aware of Respondent's offer within the next day or 7 Personnel Manager Willard claimed that the state mediator called him later and scheduled another meeting for July 25 which the mediator thereaf- ter cancelled allegedly because the Union cancelled. However, there was no indication in the testimony of the employee and union witnesses of any awareness by the union negotiators of these alleged conversations of a sched- uled meeting for July 25, or cancellation thereof, and I do not credit Willard's claim. FEDERAL MOGUL CORPORATION 963 days after it was made. However no thought was given to ending the strike at this point , he said , because the employ- ees were on strike on account of Respondent's ultimatum that they must accept Respondent 's bargaining positions on noneconomic matters before they would be given an eco- nomic proposal . Now, continued Solenberger , on July 11, Respondent was offering a total contract , including an eco- nomic offer, but again in the form of an ultimatum that the offer had to be accepted by July 16 or it would disappear. The strike continued , he said, because of the ultimatum character of the offer and because the offer expired on the day the union representative could not attend the meeting because of other duties. E. Termination of the Strike On August 28, 1973, approximately 3 months after the strike began, a last meeting of the negotiating committees was arranged by the state mediator. The Union had a com- mittee of six, headed by President Holleran and Vice Presi- dent Solenberger; Respondent had a committee of four headed by Industrial Relations Manager Eastman and Per- sonnel Manager Willard. (Solenberger and employee nego- tiator Burgess provided the description of the meeting accepted by Respondent's witnesses.) Union President Holleran stated that the Union had come to negotiate a return to work of the striking employees and to continue negotiating the terms of a contract. East- man responded, saying Respondent would not agree to a return to work of the strikers but would offer them only a preferential hiring as jobs opened to those striking employ- ees who signed unconditional requests to return to work. Eastman indicated that the strikers had been replaced and that only two jobs were open, but if job opportunities devel- oped Respondent would consider all who requested rein- statement; and those reinstated would retain their seniority, but without credit for the time involved in the strike. In reply, Union President Holleran proposed that if Re- spondent would take back all of the striking employees, the Union would drop its unfair labor practice charge and Re- spondent would be relieved of further bargaining for a con- tract. Respondent refused the offer. The union committee then caucused and, on return to the meeting, announced that the strike was over and that the employees would be asked to sign reinstatement requests. Union President Holleran gave Industrial Relations Man- ager Eastman a handwritten letter stating that the strike was terminated. The meeting ended with no further arrange- ment for contract negotiating sessions , and with the under- standing that the state mediator would call a meeting at the request of either side. At the time of trial there had been no further meetings or requests for meetings. While the strike had been in progress, Respondent began hiring replacements for the striking employees, according to Personnel Manager Willard, starting with a few temporary employees in the first week and, in the latter part of June 1973, hiring permanent replacements. The replacements were told, in writing, that they were being hired as perma- nent replacements of strikers, but that because of a pending unfair labor practice charge there was a chance of a future legal determination that the strikers might be in a position to reclaim the jobs (Resp. Exh. 1, dated June 20, 1973). At the same time, Respondent notified the strikers, in writing, that it was hiring replacements to fill their jobs (G.C. Exh. 9, dated June 18, 1973). Willard testified that some of the employees came back to work before the strike ended, that others resigned and took employment elsewhere, some before and some after the strike ended, that no jobs were eliminated, and that at the time of trial all jobs that existed at the time of the strike but one were filled either with new hires or with those for- mer strikers who had been returned to the job. The General Counsel contends, because of the alleged unfair labor practice strike that there has been Section 8(a)(3) discrimination in the case of eleven employees who were on strike and sought return to work. Based upon the stipulations of the parties the facts concerning the eleven employees are as follows: Robert Barnes-apphed for reinstatement at the end of strike, and has not resigned, but has not been offered rein- statement. Deanna Jones-applied for reinstatement at end of strike, and has not resigned, but has not been offered reinstate- ment. Richard Russell-applied for reinstatement at end of strike, was offered, on October 23, 1973, a job starting Octo- ber 29, 1973, as a blueprint operator at $124 per week in lieu of his previous job as detailer I at $153 per week. There was no stipulation or evidence that the substitute job was the equivalent of the previous job. Ronald Porter-applied for reinstatement at end of strike, gave 2 weeks' notice of resignation effective September 18, 1973,8 but was never offered reinstatement. Jerry Barber-apphed for reinstatement at end of strike, gave 2 weeks' notice of resignation effective September 24, 1973, but was never offered reinstatement. Cliff Larned-applied for reinstatement at end of strike, gave 2 weeks' notice of resignation effective September 24, 1973, but was never offered reinstatement. Robert Burgess-applied for reinstatement at end of strike, gave 2 weeks' notice of resignation (sent September 28) effective October 12, 1973, was offered on September 27, 1973, reinstatement at work in a different classification than his previous job at the same $147 per week with a maximum of $168 (as against his former maximum of $186) per week. There was not stipulation or evidence that the substitute job was an equivalent job. Marie Linder-applied for reinstatement at the end of strike, reinstated to former job effective November 5, 1973 Jackie Lake-apphed for reinstatement at end of strike, reinstated to former job effective September 24, 1973. Doris Peterson-applied for reinstatement on or about August 16, 1973 (which was prior to end of strike), and was reinstated to former job effective October 8, 1973. Dennis Burdick-applied for reinstatement on or about August 16, 1973 (which was prior to end of strike), and was reinstated to former job prior to the end of strike on a date 8 It was stipulated that resignation with 2 weeks' notice was required for an employee to obtain accrued vacation pay In each of the resignation notices listed here, it was further stipulated that the accrued vacation money was paid 964 DECISIONS OF NATIONAL LABOR RELATIONS BOARD unspecified by the parties. In connection with each of the eleven named employees, Personnel Manager Willard testified that each had been permanently replaced before the end of the strike and none of their jobs had been eliminated. F. Concluding Findings Looking at the course of negotiations over the 9 months and 24 meetings that culminated in the employees' strike, the evidence demonstrates that Respondent was not bar- gaining with any sincere intention of reaching an agreement with the Union. As stated by the Supreme Court in N.L.R.B. v. Insurance Agents' International Union, AFL-CIO [Prudential Insur- ance Co.], 361 U.S. 447, 488 (1960), the Act imposes "a mutual duty upon the parties to confer in good faith with a desire to reach agreement"; and, as further said by the Court in N.LR.B. v. Katz, 369 U.S. 736, 747 (1962), the bargaining obligation requires that the negotiating parties refrain from behavior "which directly obstructs or inhibits the actual process of discussion, or which reflects a cast of mind against reaching agreement." In this regard, the Board can examine the contents of proposals put forth or positions taken, for "if the Board is not to be blinded by empty talk and by the mere surface motions of collective bargaining, it must take some cognizance of the reasonableness of the positions taken by an employer in the course of bargaining negotiations. . . [W]hile the Board cannot force an em- ployer to make a `concession' on any specific issue or adopt any particular position, the employer is obliged to make some reasonable effort in some direction to compose his differences with the union, if Section 8(a)(5) is to be read as imposing any substantial obligation at all." Kayser-Roth Hosiery Company, Inc. v. N.L.R.B., 430 F.2d 701, 702-703 (C.A. 6, 1970), citing and quoting N.LR.B. v. Reed & Prince Manufacturing Company, 205 F.2d 131, 134-135 (C.A. 1, 1953), cert. denied 346 U.S. 887 (1953). Here, Respondent was not only refusing to make any economic offer but also blocked any discussion, over the 9-month prestrike period, of any of the Union's economic proposals, and then insisted on maintaining this state of the negotiations unless and until the Union would agree to Respondent's major noneconomic proposals. Respondent's refusal to discuss the half of the contract of most signifi- cance to the employees, and its requirement that the Union had to agree to part of the other half of the contract before the Union could obtain discussion of all parts of a whole contract, was antithetical to good-faith bargaining. The re- fusal and the requirement obstructed the process of mean- ingful contract discussion and exhibited on Respondent's side a cast of mind against reaching agreement, because, as Union Negotiator Solenberger pointed out from negotiating experience (and Respondent's experienced negotiators were equally aware), a sufficient economic offer can help a union in giving up more in terms of union security, management rights, and other noneconomic matters. The inference against Respondent's sincerity and good faith in bargaining was heightened by the fact that the prior condition for permitting discussion of economic matters obliged the Union to concede that Respondent would have exclusive control over creation and change of jobs and job classifications, job assignments, transfers, suspensions, and like matters, which were conditions of employment as to which the parties were obligated by law to bargain collec- tively, and which matters are commonly covered in collec- tive-bargaming contracts and made subject to grievance and arbitration procedures, ITT Henze Valve Service, 166 NLRB 592, 597, 598 (1967). Not only was there no arbitra- tion contemplated in the Respondent's required condition (except for dismissals), but wherever the Union might dis- agree with Respondent's decision or interpretation its only recourse would be strike which would terminate the con- templated collective-bargaining contract after 5 days of strike. Obviously, such a condition would defeat the object of achieving labor peace and stability by collective agree- ment. Respondent's requirement that the Union agree to such condition in advance of discussing a whole contract created the appearance that Respondent was denigrating the Union and the collective-bargaining process in the eyes of the bargaining unit employees. That the union negotiators complied with Respondent's insistence on dealing first with noneconomic matters and initially waived insistence on their part of full contract dis- cussion, provides no basis for Respondent now faulting the Union, as Respondent appears to do in its brief. The rec- ord discloses that the Union engaged in good-faith bar- gaining on the noneconomic matters, including providing proposals for compromise and giving in to Respondent completely on one of the big four items. The alleged delays and lateness affecting some of the meetings, and the change in union negotiators (noted supra), were matters unrelated to Respondent's conversion of its ground rule on negotiating noneconomics first into an unyielding condi- tion that Respondent's position on the important noneco- nomics matters had to be accepted by the Union before there could be any discussion and negotation of any eco- nomic matters. Thus the simple answer to Respondent's contention that the bona fides of its ' collective bargaining cannot be tested because the Union did hot bargain in good faith, is that the Union did bargain in good faith, Imperial Machine Corp., 121 NLRB 621 (1958)? In this connection, the Union's threat of strike while ne- gotiations were in progress, was not inconsistent with its good-faith bargaining, N.L.R.B. v. E. L. Dell, Jr., Trading as Waycross Machine Shop, 283 F.2d 733,739 (C.A. 5, 1960). I find that Respondent's refusal to submit or discuss, or to permit any discussion of, economic proposals in the con- tract negotiations, and requiring as a condition for any such discussion that the Union agree to accept Respondent's terms on certain noneconomic matters, was a refusal to bargain in good faith in violation of Section 8(a)(5) and (1) of the Act. The Union's strike, that commenced on May 30, 1973, was in protest of Respondent's unlawful conduct and 9 I did not, and do not, accept the General Counsel's view that the Union's bargaining conduct was so much separable from Respondent 's bargaining conduct that the latter could be tested independently, without examining the Union's bargaining conduct, as the special facts warranted in Chicago Typo- graphical Union No 16, (Chicago Newspaper Publishers Association), 86 NLRB 1041, 1063 (1949). It appeared to me that Times Publishing Co., 72 NLRB 676, 683 (1947), using mutual testing as the criterion for the usual case, was more apt for the case at bar. FEDERAL MOGUL CORPORATION 965 was an unfair labor practice strike. Respondent argues that even though its bargaining con- duct, prior to May 30, 1973, may have sparked the strike, its submission on July 11, 1973, 6 weeks after the strike began, of a contract proposal including an economic offer, cured or at least halted its unfair labor practice, and that it was the Union's failure to meet with Respondent, or other- wise reply to Respondent's offer, that prolonged the strike another 6 weeks before,it ended in defeat for the Union. The contention might have had merit if Respondent had submitted its midstrike economic offer in good faith. How- ever, the nature of `the offer and the manner in which it was made available suggests that Respondent was not desirous of reaching an agreement with the Union, but rather was seeking to acquire a defense to the unfair labor practice charge filed with the Board by the Union. Thus, the offer was open only until noon of the one day following the making of the offer on which Respondent would engage in negotiation concerning it, July 16, and the offer had to be accepted in that time or it lapsed, as it did. The offer con- tained over 20 items or articles that the parties had never discussed -and that the Union had not seen , because of Respondent's intransigence in the preceding 11 months of negotiation, on such important matters as wages, merit, and cost-of-living increases, holidays, vacations, insurance and hospital benefits, employee investment plan, pension plan, and others. Moreover the language of those proposed arti- cles was not provided with the offer but was to be drafted later, although the language of a new noneconomic propos- al by Respondent on loss of seniority was included in the offer. For all practical pruposes, Respondent was making the Union a take-it-or-leave-it offer, which negates the desire to reach ultimate agreement that collective bargaining presup- poses, N.L.RB. v. Insurance Agents International Assn, su- pra, 361 U.S. at 485, and see General Electric Company, 150 NLRB 192, 193, fn. 3, 267 (1964); and, in effect, snatched back the offer before there was time and opportunity to consider and bargain about it. Respondent's conduct was still another piece of the pre-strike pattern that denied the Union any meaningful discussion or opportunity for discus- sion of the economic terms of a contract, and was a further attempt to discredit the Union and the collective bargaining process, in the eyes of the unit employees. Compare, Quality Motels of Colorado, Inc., 189 NLRB 332,'335, 337 (1971), holding that employer's take-it-or-leave-it proposal and abrupt withdrawal of offer was to discredit the union; and Thompson Brothers Coal Company, Inc., 192 NLRB 24, 25 (1971), holding that an employer' s eventual offer of wage increase , after 15 months of sterile negotiating meetings and 10 weeks of strike, was not indicative of a sincere de- sire to compose differences and reach agreement with the union if possible. Respondent's total bargaining conduct, both after as well as before the strike began, did not comport with its obliga- tion to bargain in good faith, and violated Section 8(a)(5) and (1) of the Act. The strike remained an unfair labor practice strike for its duration. Since the strike was an unfair labor practice strike, the striking employees did not lose their status as employees and were entitled to full reinstatement to their former or substantially equivalent positions immediately upon their unconditional offer to return to work, even though perma- nent replacements had been hired, Mastro Plastics Corp. v. N.L.R.B., 350 U.S. 270, 278 (1956); N.L.R.B. v. Fitzgerald Mills Corp.; 313 F.2d 260, 269 (C.A. 2, 1963), cert. denied 375 U.S. 834 (1963). Respondent's written terminations of the unfair labor practice strikers and purported permanent replacement of them in late June 1973 was a violation of Section 8(a)(3) and (1) of the Act, ITT Henze Valve Service, supra, 166 NLRB 592, 599; and Respondent's refusal to immediately reinstate the eleven strikers (named in sec. II, E, above), upon their respective unconditional requests for reinstatement, also violated Section 8(aX3) and (1) of the Act, Mastro Plastics Corp. v. N.L.R.B., supra, 350 U.S. at 278. Seven of these eleven strikers have not been reinstated to their former or substantially equivalent jobs, and are enti- tled to an order for reinstatement, including those of the seven who "resigned" to obtain their accrued vacation pay after they had requested reinstatement. Among the seven are employees Richard Russell and Robert Burgess who were offered lesser jobs than they formerly held. All I 1 of the strikers are entitled to be made whole for loss of earn- ings as a result of refusal to reinstate, or failure to promptly reinstate, them to their respective former or substantially equivalent jobsl CONCLUSIONS OF LAW 1. By refusing, since August 23, 1972, to bargain in good faith with the Union as the certified representative of the bargaining unit of Respondent's office workers at the Greenville plant, including refusal to discuss or submit eco- nomic proposals, conditioning discussion of economic mat- ters on prior acceptance of Respondent's terms on noneconomic matters, and otherwise preventing full and meaningful contract negotiations, Respondent has engaged in unfair labor practices in violation of Section 8(a)(5) and (1) of the Act. 2. These unfair labor practices caused an unfair labor practice strike by Respondent's bargaining unit employees, which strike was prolonged by Respondent's continued re- fusal to bargain in good faith. 3. During the unfair labor practice strike Respondent unlawfully terminated the employment of the striking em- ployees and purported to replace them permanently, there- by engaging in unfair labor practices in violation of Section 8(a)(3) and (1) of the Act. 4. Notwithstanding unconditional requests for reinstate- ment by 11 of the former striking employees, Respondent failed to promptly reinstate them, or to offer them prompt reinstatement, to their former or substantially equivalent jobs, and has yet to reinstate or offer to reinstate seven of them, thereby engaging in unfair labor practices in violation of Section 8(a)(3) and (1) of the Act. 5. The described unfair labor practices affect commerce within the meaning of Section 2(6) and (7) of the Act. THE REMEDY In connection with an order that Respondent bargain in 966 DECISIONS OF NATIONAL LABOR RELATIONS BOARD good faith, the Union is entitled to application of the reme- dy developed by the Board in Mar-jac Poultry Company, Inc., 136 NLRB 785, 786-787 (1962),1 so that the employees of the bargaining unit would enjoy a year of good-faith bargaining and not be deprived of the services of the Union as their selected bargaining agent by technical expiration of the initial year of certification which, unless altered, began June 26, 1972. It will be recommended, that Respondent: (1) Cease and desist from its, unfair labor practices; (2) upon request, re- sume bargaining and bargain with the Union in good faith, recognizing that the initial year of certification of the Union as representative of the bargaining unit shall be deemed to begin on the date Respondent commences to bargain with the Union in good faith; (3) offer immediate and full rein- statement to his former or substantially equivalent, job to each of the unfair labor practice strikers who applied or applies, dismissing if necessary persons hired on and after May 30, 1973. In this regard Respondent shall make whole for any resulting loss of earnings any applying striker who was or is refused reinstatement within 5 days after his appli- cation, the loss of earnings to be computed on a quarterly basis as set forth in F. W. Woolworth Company, 90 NLRB 289 (1950), approved in N.L.R.B. v. Seven Up Bottling Com- pany, 344 U.S. 344 (1953), with interest at 6 percent per annum as provided in Isis Plumbing & Heating Co., 138 NLRB 716 (1962), approved in Philip Carey Manufacturing Company v. N.L.R.B., 331 F.2d 720 (C.A. 6, 1964), cert. denied 379 U.S. 888 (1964); and (4) post the notices provid- ed for herein. Upon the foregoing findings of fact, conclusions of law, and the entire record, and pursuant to Section 10(c) of the Act, there is hereby issued the following recommended: 11 ORDER A. For the purpose of determining the duration of the certification of the Union as the recognized bargaining rep- resentative of the appropriate unit, the initial year of certifi- cation shall be deemed to begin on the date the Respondent commences to bargain in good faith with the Union. B. Respondent, its officers, agents, successors and as- signs, shall: 1. Cease and desist from: (a) Failing and refusing to bargain collectively in good faith with the Union as the collective-bargaining representa- tive of the office workers unit, found appropriate by the Board, comprising Respondent's general office employees, office clerical employees, and laboratory technicians, at the Greenville, Michigan, plant, but excluding all professional 10 And see, Commerce Company dlbla Lamar Hotel, 140 NLRB 226, 229 (1962), enfd 328 F2d 600 (C A. 5, 1964), cert. dented 379 U.S 817 (1964); Burnett Construction Company, 149 NLRB 1419, 1421 (1964), enfd . 350 F.2d 57 (CA 10, 1965); Capitan Drilling Company, 167 NLRB 144, 146 (1967), enfd . 408 F.2d 676 (C A. 5, 1969). 11 In the event no exceptions are filed as provided by Sec. 102 46 of the Rules and Regulations of the National Labor Relations Board, the findings, conclusions , recommendations, and 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. employees, confidential employees, custodians, guards, and supervisors as defined in the Act, and all employees repre- sented by other labor organizations. (b) Failing and refusing to promptly offer to reinstate, and to reinstate, to their former or substantially equivalent jobs former striking employees who have applied uncondi- tionally for reinstatement. (c) In any like manner interfering with, restraining, or coercing employees in the exercise of their rights guaranteed under Section 7 of the Act. 2. Take the following affirmative action which is neces- sary to effectuate the policies of the Act: (a) Upon request, bargain collectively in good faith with the Union as the bargaining representative of all employees in the office workers unit, described in paragraph 1(a) above, with respect to wages, hours, and other terms and conditions of employment, and if an understanding is reached embody it in a signed agreement. (b) Offer to employees Robert Barnes, Deanna Jones, Richard Russell, Ronald Porter, Jerry Barber, Cliff Larned, Robert Burgess, and to all other employees who partici- pated in the strike which began on May 30, 1973, who unconditionally applied or apply for reinstatement, and who have not already been reinstated, immediate and full reinstatement to their former positions, without prejudice to their seniority or other rights and privileges, dismissing if necessary persons hired by Respondent on and after May 30, 1973. Make whole each of the aforenamed seven em- ployees, and employees Marie Linder, Jackie Lake, Doris Petersen, and Dennis Burdick, who were reinstated but not promptly as required by law, and any other such applying employee, for any loss of earnings suffered if Respondent delayed or delays in reinstating him or refused or refuses to reinstate him, for so long as the delay or refusal continued or continues beginning 5 days after the employee applied for reinstatement, and computing the loss of earnings in the manner set forth, in the section of this Decision entitled, "The Remedy." (c) Preserve and, upon request, make available to the Board and its agents, for examination and copying, all pay- roll records, social security payment records, timecards, per- sonnel records and reports, and all other records necessary to ascertain loss of earnings under the terms of this order. (d) Post in its plant at Greenville, Michigan, copies of the attached notice marked "Appendix." 12 Immediately upon receipt of copies of said notice, on forms to be provided by the, Regional Director for Region 7 (Detroit, Michigan), the Respondent shall cause the copies to be signed by one of its authorized representatives and posted, the posted copies to be maintained for a period of 60 consecutive days thereafter in conspicuous places, including all places where notices to employees are customarily posted. Reasonable steps shall be taken by the Respondent to insure that said notices are not altered, defaced, or covered by any other material. (e) Notify the Regional Director for Region 7, in writing, within 20 days from the date of the receipt of this order, 12 In the event that the Board 's order is enforced by ajudgment of a United States Court of Appeals, the words in the notice reading "Posted by Order of the National Labor Relations Board" shall be changed to read "Posted Pursuant to a Judgment of the United States Court of Appldals Enforcing an Order of the National Labor Relations Board " FEDERAL MOGUL CORPORATION 967 what steps the Respondent has taken to comply herewith. APPENDIX NOTICE To EMPLOYEES POSTED BY ORDER OF THE NATIONAL LABOR RELATIONS BOARD An Agency of the United States Government The National Labor Relations Board having found, after a trial , that we violated the National Labor Relations Act, we hereby notify you that: WE WILL NOT fail or refuse to bargain collectively in good faith with Office and Professional Employees In- ternational Union , Local 42, AFL-CIO (the Union). WE WILL upon request bargain collectively in good faith with the Union as the bargaining representative of all employees in the bargaining unit described below with respect to wages, hours, and other terms and con- ditions of employment , and, if an understanding is reached, embody it in a signed agreement . The bargain- ing unit is: WE WILL NOT in any like manner interfere with your right to join, assist, or be represented by, a labor union, or interfere with any of your rights of self-organization and mutual aid guaranteed under Section 7 of the Act. Because the Board has found that the employees on strike since May 30, 1973, were unfair labor practice strikers, WE WILL offer back to employees Robert Barnes, Deanna Jones, Richard Russell, Ronald Porter, Jerry Barber, Cliff Larned, Robert Burgess, and to each other former striker who applies unconditionally for reinstatement, his old job (if he has not already been reinstated), and will dismiss, if necessary, persons hired since May 30, 1973. To these seven named employees, and to employees' Marie Linder, Jackie Lake, Doris Petersen, and Dennis Burdick, who were reinstated but not promptly as required by law, and to any other applying former striker whose reinstatement was or is delayed or refused, WE WILL pay each for any resulting loss of earnings suffered as a result of our failure or refusal to have reinstated him or to reinstate him within 5 days after his application for reinstatement. All general office employees, office clerical em- ployees, and laboratory technicians, at our Green- ville, Michigan, plant; but excluding all professional employees, confidential employees, custodians, guards, and supervisors as defined in the National Labor Relations Act (the Act), and all employees represented by other labor organizations. WE WILL NOT fail or refuse to promptly offer to reinstate, and to reinstate, to their former or substantially equiva- lent jobs former striking employees who have applied unconditionally for reinstatement. Dated By FEDERAL MOGUL CORPORATION (Employer) (Representative) (Title) This is an official notice and must not be defaced by anyone. This notice must remain posted for 60 consecutive days from the date of posting and must not be altered, defaced, or covered by any other material. Any questions concerning this notice or compliance with its provisions may be direct- ed to the Board's Office, 500 Book Building, 1249 Washing- ton Boulevard, Detroit, Michigan 48226, Telephone 313-226-3200. Copy with citationCopy as parenthetical citation