Fitzgerald Mills Corp.Download PDFNational Labor Relations Board - Board DecisionsOct 11, 1961133 N.L.R.B. 877 (N.L.R.B. 1961) Copy Citation FITZGERALD MILLS CORPORATION 877 record is totally deficient in terms of providing any answers to the numerous questions which bear on this matter of discretion 3i In sum, because the record in this proceeding does not contain suffi- cient facts upon which to determine the legal issues involved, I would remand these cases to the Regional Director for further proceedings before a duly designated hearing officer in order to permit the orderly development of the facts. However, since my colleagues are not simi- larly disposed, I would dismiss the petitions without prejudice to the parties involved. render the party immune or disabled from the provisions of the National Labor Relations Act. However , we are not here dealing with the question of the primacy of Federal over State law . Rather, we are concerned with the question whether our Act applies at all to an organization incorporated in a foreign country. ii For example, it might be questioned whether Petitioner is considered to be a labor organization by the Department of Labor's standards . In this regard , is it subject to the reporting provisions of the Landrum-Griffin amendments (Titles I-VI) ? Is there any conflict, real or potential , between the requirements of the Landrum -Griffin amendments and the labor code of the Republic of Honduras , e.g., as to the holding of conventions, requirements for membership , conditions of holding office, inspections of union membership lists , nominations of candidates for office , equal rights to participate at meetings and in elections, etc. Moreover , suppose the Petitioner wins the election directed herein and is subsequently certified by the Board , will the Board be able to provide real protection to the employees and its own processes 9 The testimony shows that Sindimar holds its meetings in Puerto Cortes , Republic of Honduras . Are the American members of that organization going to be required to go to Honduras to attend meetings , inquire as to matters relating to bargain- ing, and vote on general issues ? How will the American ( and other ) members express their dissent in the event Petitioner uses the dues and fees collected to foster or promote political parties or persons ( see International A8sociation of Machinists v. Street, 367 U.S 740 ( 1961 )) ? Further , suppose the Petitioner , during its incumbency as certified representative , is charged with having committed unfair labor practices ; how will the Regional Office be able to conduct an adequate investigation and gather evidence? Must it send the Board ' s agents to Honduras ? And what will the Republic of Honduras have to say about this? How is the Board ( or a court , for that matter ) to accomplish service of its legal documents9 In what manner is the Board to insure that compliance with its orders will obtain? etc. When the Board certifies a labor organization , in addition to effectively creating a franchise in favor of that organization as against all others , it is also recognizing the employees ' choice by placing the Government 's imprimatur on the organization 's status-a status which carries with it a host of legally enforceable duties. The Board will have no excuse if , in its attempt to provide an election for the employees involved herein, it is later unable to enforce those duties against the Petitioner . And if enforcement is not feasible , these very same employees will be prejudiced and bear the brunt of the Board's failure to provide safeguards for their statutory rights. Fitzgerald Mills Corporation and Local 1252, Textile Workers Union of America, AFL-CIO, and Textile Workers Union of America, AFL-CIO.' Case No. 10-CA-4176. October 11, 1961 DECISION AND ORDER On June 29, 1960, Trial Examiner Lee J. Best issued his Inter- mediate Report in this proceeding, finding that the Respondent had i The name of the Charging Party is hereby amended to reflect the amendment , granted at the hearing without objection , naming the International and Local 1252 as the joint Charging Party The International and Local 1252 are hereinafter referred to jointly as the Union. 133 NLRB No. 98. 878 DECISIONS OF NATIONAL LABOR RELATIONS BOARD not engaged in the unfair labor practices alleged in the complaint and recommending that the complaint be dismissed in its entirety, as set forth in the Intermediate Report and Recommended Order attached hereto. Thereafter, the Union and the General Counsel filed timely exceptions thereto and supporting briefs. The Board has reviewed the rulings of the Trial Examiner made at the hearing and finds that no prejudicial error was committed. The rulings are hereby affirmed. The Board has considered the Intermedi- ate Report, the exceptions and briefs, and the entire record in the case, and finds merit in the exceptions as set forth below. According- ly, the Board adopts the findings of the Trial Examiner only to the extent they are consistent herewith. 1. The complaint, as amended at the hearing, alleges that the Re- spondent refused to bargain collectively with the Union beginning- on or about January 20, 1959. The Trial Examiner concluded that the Respondent conferred in good faith at all times. We accept all credibility resolutions made by the Trial Examiner, except as set forth in paragraph numbered 2, below, and the facts as found in the Intermediate Report. Based thereon and on other undenied testi- mony in the record as recited below, we find, contrary to the Trial Examiner, that the Respondent's whole course of dealing with the- Union clearly demonstrates that it engaged in mere "surface bargain- ing." 2 In so finding, we rely particularly on the following evidence of the Respondent's bad faith : (a) The Respondent's dilatory tactics: Beginning in the fall of- 1958,3 the Respondent clearly displayed a dilatory attitude and re- luctance to supply information requested by the Union which was es- sential to the administration of the then existing contract and the negotiation of a new contract. Thus, the Union made its request for- wage information near the end of September 1958; received incom- plete information on January 19, 1959; and did not receive a satis- factory incentive pay schedule until March 6, 1959, long after the demand and the Union's notice to the Respondent on January 20, 1959,. that it desired to negotiate a new contract. The Respondent's attitude in November 1958, with respect to supplying wage information, is apparent from the fact that Clark, the Respondent's general man- ager, replied to the Union's request for social security earnings of employees by saying that they were busy trying to run a plant and could not furnish the information 4 Job descriptions requested at the 2 N.L R.B. v. Herman Hau8age Company , Inc., 275 F 2d 229 (CA. 5 ), enfg 122 NLRB 168, rehearing denied 277 F 2d 793 8 To the extent any of the incidents occurred prior to the 6-month limitation period of- Section 10 ( b), which runs from December 29, 1958, they are relied on solely as back- ground information to "shed light" on events within the period covered by the charge Herbert D Young, d/ b/a Murfreesboro Pure Milk Co , 127 NLRB 1101, 1102 4 This finding is based on the uncontradicted testimony of Botelho , the Union's regionalL director. FITZGERALD MILLS CORPORATION 879 same time were not forthcoming until January 19, 1959, at which time the Respondent supplied those that were available, but no additional job descriptions have ever been transmitted. Moreover, in September 1958, the Union objected to the Respondent's previously having revised its insurance benefits plan by unilateral action and requested a copy of plan. In response thereto and to at least,one subsequent request 5 by the Union, Clark took the position that a copy had been supplied to the previously assigned representative of the Union and the Union was therefore in possession of the information. Clark said that he would nevertheless furnish a copy to Botelho. However, this copy was not forthcoming until June 4, 1961, during the course of the strike. And at the hearing, Clark admitted that the former union representative had not received a copy. It is also clear that a seniority roster, re- quested in September 1958, was never furnished. We find that the dilatory tactics of the Respondent' are clearly established in the record. Such tactics are inconsistent with its obligation to supply the Union with proper information without undue delay.6 (b) The nature of Respondent's counterproposal and its adamant refusal to enter a contract with the Union except on its own terms: The Union's proposal sought a considerable number of changes in the prior contract, including substantial increases in economic benefits. The Respondent's counterproposal was essentially the expiring con- tract, with certain changes desired by the Respondent' and the de- letion of a substantial number of provisions which contained benefits previously enjoyed by the employees." As a result, the counter- proposal constituted such a radical departure from the previous con- tract as to be predictably unacceptable to the Union.' It is abun- dantly clear, both from the Intermediate Report and from the record, that the Union, in effect, put aside its own proposal and that gall dis- cussion at the negotiation meetings was based upon the Respondent's 8 The testimony is in dispute as to whether any additional requests were made for this information prior to June 1, 1959, and the Trial Examiner made no finding as to this. However, in view of the undenied fact that the Union 's request for increased insurance benefits was discussed during the course of negotiations in April, it seems to us unlikely that the need for the information was not raised again during this period. O Butcher Boy Refrigerator Door Company , 127 NLRB 1360, 1362 7 E g, at arbitration hearings , the parties could present "evidence and argument" rather than "evidence , argument , and other pertinent material" as formerly ; the time within which the Company must act at various steps in the grievance procedure was lengthened ; and workload disputes were removed from the regular arbitration procedure 8 For example , the checkoff clause was omitted ; the no -strike clause omitted the provi- sion saving the Union , if it promptly disavowed any unauthorized work interruption and tried by all reasonable means to prevent or terminate it, from civil action under Section 301 of the Act; the Union 's right to reopen wages for reexamination by comparison with area rates was deleted ; determination of competence and qualification for retention or layoff purposes was left solely to the Company 's judgment and apparently was removed from the grievance and arbitration procedure , jobs would remain temporary until desig- nated as permanent by the Company ; and the necessity for prior notice to the Union of contemplated changes in workload was eliminated. See N.L .R B v. Herman Sausage Company, Inc, supra ; N L.R B . v. Reed & Prance Manufacturing Company , 205 F. 2d 131 , at 139 ( C.A. 1), cert . denied 346 U . S. 887. 880 DECISIONS OF NATIONAL LABOR RELATIONS BOARD counterproposal, with the Union stating its position with respect to each provision. It is equally clear that the Union receded from its original position and made a great many progressively lesser re- quests but that the Respondent at all times maintained an uncompro- mising attitude, rejecting the Union's requests without explanation or discussion. Agreement ,reached on any provision was solely by reason of the Union's acceptance of the Respondent's proposal as it stood. The Respondent's representatives made no concessions prior to the strike, which began on May 11, except to state that they would recommmnd that a union representative be permitted to enter the plant to investigate grievances and that the parties might be able to resolve two pending grievances .10 And although there were appar- ently some concessions made during the negotiations on June 1 and July 1, it is clear that there was no real intent on the Respondent's part to reach agreement. This is evidenced by Clark's statements to the nonstriking employees in the plant in May and June and the Re- spondent's insistence that the Union waive the strikers' right to re- instatement as a condition of entering a contract. While an employer is not obligated to make any concession, it is required to make a reasonable effort to reach an agreement.ll Failure to do little more than reject proposals is indicative of a failure to comply with the statutory requirement of good-faith bargaining.12 It is apparent from the above facts, considered in the context of the entire course of bargaining, that the Respondent in fact did virtually nothing more than reject the Union's proposals. At no time did it make a genuine effort to reconcile the differences between it and the Union, contrary to its obligation to approach the bargaining table with an open mind and, through the give and take of negotiations, to attempt to reach an agreement.13 10 Except for this statement as to the possible resolution of the two grievances, the Respondent consistently demanded a clause stating that the Union agreed that there were no grievances pending and that all grievances had been or were thereby dismissed, and deleting from the old contract the provision that any grievances arising during the con- tract term which had reached step two and had been put in writing should be completed even after the expiration of the contract term It is well settled that the expiration of a bargaining agreement does not relieve it party of its obligation to process a pending griev- ance under the terms of the expired agreement . See Textile Worker8 Union of America, AFL-CIO v Lincoln Mills of Alabama, 353 U.S. 448; NLRB v Knight Morley Corp., 251 F. 2d 753, 759-760 (CA. 6), enfg. 116 NLRB 140, cert. denied 357 US. 927, re- hearing denied 35'8 U. S. 858 . Accordingly, we find that the Respondent's insistence upon the Union's waiver of the pending grievances is also contrary to the duty to bargain and is evidence of the Respondent's bad faith throughout the negotiations. " Bonham Cotton Mills , Inc., 121 NLRB 1235, enfd 289 F 2d 903 (CA 5). 12 McLean-Arkansas Lumber Company, Inc, 109 NLRB 1082, 1034, and cases cited therein 13 Fetzer Television, Inc., 131 NLRB 821; American Aggregate Company, Inc and Featherlite Corporation, 125 NLRB 909, enfd 285 F. 2d 529 (CA. 5) , NLRB v Herman Sausage Company, Inc., Supra, L L 11fajau a Transport Company v NLRB, 198 F 2d 735 (CA 5), enfg 95 NLRB 311 Cf N L R B v. American National Insurance Co , 343 U.S. 395 FITZGERALD MILLS CORPORATION 881 (c) The limited authority of Respondent's negotiators to accept only the Respondent's proposed contract: Respondent's attorney, Prowell, testified that he was authorized to depart from the Respond- ent's counterproposal except with respect to "money items." How- ever, it is clear from the Intermediate Report and the record that he and other agents of Respondent were, in fact, never authorized to reach any agreement different, from the original counterproposal without prior clearance with Horblit, an official of Respondent with his office in Boston, Massachusetts. Thus, Clark, Respondent's gen- eral manager, testified that he talked with Horblit after each meeting. And, as found by the Trial Examiner, the Union was told after each meeting that the matters discussed would have to be or were in fact taken up with higher management. Moreover, the only meetings at which substantial discussion took place prior to the strike on May 11, were those of April 10 and 24. But, as the Trial Examiner found, on April 10 Attorney Constangy, during the informal morning con- ference, advised Botelho that decisions with respect to wages, arbi- tration, and checkoff had been made by higher management and could not be changed locally, and Attorney Prowell, during the formal afternoon meeting, made it clear that questions raised by the Union must be submitted for consideration to Constangy and higher officials of the Respondent. In fact, Prowell testified that he was present at that meeting only for the purpose of having Botelho explain the Union's position on the Respondent's proposal. And it is clear that at the April 24 meeting, Prowell in fact refused to deviate from the Respondent's counterproposal and merely stated he would recommend that a union representative be permitted access to the plant to investi- gate grievances. While the absence of competent authority of a bar- gaining representative to enter into a binding agreement is not nec- essarily indicative of bad faith'14 the character of the agent's powers is a factor to be given consideration. 15 We find that the limitations imposed by the Respondent in the instant case, including its prede- termined position concerning union security and "money items," 16 particularly when considered in the entire context of events before and during the strike, reveal that the Respondent did not bargain in good faith." (d) The unilateral acts by the Respondent: As set forth in the Intermediate Report, the Respondent 'informed the Union at the 14 See, e g, Capital Transit Company, 106 NLRB 169 ; McLean-Arkansas Lumber Com- pany, Inc, supra, at 1038; Lloyd A. Fry Roofing ,Company v . N.L.R.B ., 216 F. 2d 273 (C.A. 9). 15 Great Southern Trucking Co. v. N.L.R.B., 127 F. 2d 180 at 185 ( C.A. 4), cert denied 317 U.S. 652 . See also Lloyd A Fry Roofing Co. v. N.L.R B., supra, at 275 and 276. 16Duro Fittings Company, 121 NLRB 377. 17 Herman Sausage Co , Inc., 122 NLRB 168, 170 ; Great Southern Trucking Co. v. N L R B., supra; N.L .R.B., v. 'Martin Brothers Box Company, 130 F. 2d _202 at 207-208 (C.A. 7), cert. denied 317 U.S. 660. 624067-62-vol. 133-57 882 DECISIONS OF NATIONAL LABOR RELATIONS BOARD negotiation meeting of April 10, 1959, that within the preceding 60 days it had changed the duties and wages of the forklift driver. Botelho also testified without contradiction that in June 1959, while the strike was in progress and during the course of bargaining, the Respondent changed the wage rate and workload of loomfixers with- out consulting the Union. It is clear that both incidents occurred at times when the parties were in the course of negotiations, that the Union protested the Respondent's actions and was willing to continue negotiations, and that there was no impasse.'8 In addition, we find that no genuine impasse was reached on May 7, 1959, in view of the Respondent's bad-faith bargaining as revealed by its entire course of conduct during the negotiations. Therefore, the Respondent's unilateral institution of its wage increase effective May 11, 1959, was not privileged and is further evidence of the Respondent's bad faith.19 (e) The Respondent's notices to its employees on April 6, 13, cued • 24: Contrary to the Trial Examiner, we find that the Respond- ent's notices to its employees were designed to undermine the Union and, hence, are additional evidence of its failure to bargain in good faith. While an employer may report to its employees the history of the negotiations with their representative, the cases so holding are clearly distinguishable from the situation here in that none of them involved reports which in their context and in the context of events were shown to be unlawfully motivated 20 In contrast, here the form Is Herman Sausage Co., Inc., 122 NLRB 168 , 170-171 , enfd . 279 F. 2d 229 (CA 5) ; Amer,can ' National Insurance Co. v. NL.R.B., 187 F. 2d 307, at 309 ( CA. 5), enfg. 89 NLRB 185, affd . 343 U.S. 895. And see Dalton Brick & Tile Corporation, 126 NLRB 473 at 486-487. 19 See N L R B V Andrew Jergens Co , 175 F. 2d 130, at 136 (C .A. 9), enfg 76 NLRB 363, cert denied 338 U.S 827 , rehearing denied 338 U.S. 882. 20 Continental Bus System, Inc., 128 NLRB 384 (respondent bargained in good faith throughout , and letters were sent during a subsequent strike which were complete copies of all material simultaneously mailed to the union ) ; Blackstone Mills, Inc., 109 NLRB 772, 781 ( during a negotiation meeting at which the respondent 's proposal was made, respondent began distribution of a written statement of its proposal and the reasons for its position in which it also recited that the members should attend the next union meet- ing to "advise their committee as to their feelings toward these adjustments") ; The Stanley Works, 108 NLRB 734 , 741-742 ( notice that a year -end bonus would not be paid, followed by a substantial number of negotiation meetings during which the bonus was discussed in the course of good-faith bargaining ) ; Joseph E. Cote, d/b/a J. B Cote, et al., 101 NLRB 1486 , 1489 ( respondent 's letters to employees set forth the.bargaining impasse which existed , reported the offers made by respondent , the union 's demands , and the re- spondent 's inability to meet those demands ) ; The Jacobs Manufactursng Company, 94 NLRB 1214 , 1225 ( two letters to employees reported the positions taken by the respondent during the bargaining and explained that it could not then afford to increase wages be- cause of its business position and "there is nothing to indicate that there were attempts to undermine the prestige of the union")'; United Welding Company, 72 NLRB 954, 955 (the respondent bargained in good faith throughout , and the sole allegation involved letters sent to the employees , after many bargaining sessions , which explained the re- spondent 's position on the union 's wage demands and why it could not meet them, and repeatedly urged the employees to continue bargaining through the union as their repre- sentative ). Cf. Texas Foundries, Inc., 101 NLRB 1642 , 1670, where the contention was rejected that speeches to employees announcing unilaterally determined wage increases FITZGERALD MILLS CORPORATION 883 and timing of the notices were clearly calculated to impress the em- ployees not only that the Respondent alone was entitled to credit for the increase but that the Respondent intended to offer the Union no more than the Respondent had already unilaterally determined to grant, without reference to the collective-bargaining process. Thus, the notices appear to emphasize the need for the Union's agreement to the proposed effective date rather than the amount. In addition, the proposed wage schedule posted on April 13 was clearly misleading in that it appeared to be an across-the-board increase and would be so interpreted by the employees. But the rates were, in fact, expected earnings under the incentive system and individual employees might or might not receive an increase under the proposed plan. Moreover, the Respondent's conduct in announcing April 27, 1959, to its employees, in its April 13 notice,,as the proposed effective date for the wage increase further evidences the Respondent's objective. As found by the Trial Examiner, at the negotiation meeting of March 23, 1959, Botelho requested that any wage increase be retro- active to the expiration date of the old contract, and Respondent's attorney, Constangy,•proposed that this matter be left open for fur- ther negotiation. Nevertheless, Respondent, without consultation with the Union, fixed April 27 as its proposed effective date, an- nounced that proposed date to its employees, and thereafter refused to discuss any other possible effective date. The impression that Re- spondent deserved sole credit for the increase and the fact that this was intended is emphasized by Foreman McDowell's statement to employee Woodard shortly after the posting of the April 13 notice to the effect that the Union could not get a larger pay raise than the Company was offering. The Respondent's objective is also clearly revealed by the circum- stances surrounding the posting of the April 24 notice. The Trial Examiner found that at the meeting on that date the Union protested the posting of the April 13 notice, and it is undisputed that because of the protest the parties agreed upon the language of a notice which was to clarify the status of negotiations. Notwithstanding this, the Respondent's general manager, immediately upon the conclusion of the meeting, telephoned his office and had the April 24 notice posted in essentially the language to which the Union had objected. But the agreed-upon notice was not posted until April 27. It seems clear that if Respondent's motive were merely to inform the employees of the status of negotiations, the general manager would have communi- which would be given if the union agreed and other speeches stating the respondent's position on issues before the bargaining conference amounted to individual bargaining with the employees, but where there was apparently no contention that these-speeches were attempts to undermine the union and evidenced respondent 's bads-faith bargaining and therefore no finding was made thereon. 884 DECISIONS OF NATIONAL LABOR RELATIONS BOARD cated the agreed text to his office in his telephone call in order to have it posted as soon as possible. In these circumstances, we find no difficulty in concluding that the Respondent's object in posting its notices was not merely to keep its employees informed but, rather, to subvert the Union. (f) Clark's statements in May sand June 1959: As set forth in the Intermediate Report, Clark, during the course of the strike, made speeches to the nonstriking employees in the plant, during which he said, inter alia, that he would not sign a contract with the Union un- less it agreed to his terms. These statements clearly reveal that the Respondent was not meeting with the Union with an open mind and an intention to reach agreement. (g) The Respondent's proposal of July 10, 1959, concerning the rights of the strikers: It is clear, as the Trial Examiner found, that at the meeting on July 10 Respondent's attorney, Prowell, insisted that before any contract could then be negotiated, the Union would have to agree to the Respondent's proposal with respect to strikers, and that as a result negotiations ceased. The provision demanded by the Respondent would have required that the Union waive the reinstatement rights of the strikers and was tantamount to insistence that the Union abandon its unfair labor practice charges in order to finalize a bargaining agreement. As we find, infra, that the strike was caused by the Respondent's refusal to bargain in good faith and was hence an unfair labor practice strike from its inception, all strikers were entitled to full reinstatement upon application. It is well settled that a union cannot waive the reinstatement rights of strikers," and the demand for such a waiver constitutes bad-faith bargaining in vio- lation of Section 8(a) (5). The conditioning of further bargaining upon the acceptance of this provision was an unlawful condition precedent at variance with the Respondent's obligation to bargain with the Union in good faith and is also violative of Section 8(a) (5)•22 The Respondent's raising this demand after the termina- tion of the strike further demonstrates its intention to avoid reaching agreement. It is clear from all the facts that the Respondent did not approach the bargaining table with an open mind and sincere desire to reach agreement, but, rather, had a predetermined intention not to do so. Accordingly, we find that the Respondent failed to bargain in good faith with the Union and thereby violated Section 8 (a) (5) and (1) of the Act. 2. We further find, contrary to the Trial Examiner, that Foreman McDowell's statements to employee Mildred Woodard shortly after - 1 21 Heider Manufacturing tCompany, 91 NLRB 1185, 1190. See Erie Resistor Corporation, 132 NLRB 621, footnote 31. 22 Erie Resistor Corporation, Supra. FITZGERALD MILLS CORPORATION 885 April 13 11 and in November 1959,14 were coercive and constituted in- dependent violations of Section 8(a) (1) of the Act. In view of the Respondent's other violations, as set forth herein, these statements were neither isolated nor minor. The Trial Examiner credited Clark's version of what he said to the pickets on May 22, 1959, "because it is more consistent with past and subsequent. negotiations between the parties." This conclusion was reached in the context of the Trial Examiner's findings that the Respondent bargained in good faith at all times. It is the Board's established policy not to overrule a Trial Examiner's credibility reso- lutions unless the clear preponderance of all the relevant evidence con- vinces us that the resolutions were incorrect .25 In the instant case we have rejected the Trial Examiner's findings as to the Respondent's good faith in its bargaining with the Union and have found, instead, that the record clearly establishes its bad faith throughout the nego- tiations. As the Trial Examiner's reason for crediting Clark's testi- mony as to the May 22 events thus falls, his credibility finding on this matter must also fall26 The Trial Examiner has given no other rea- son for discrediting the General Counsel's witnesses, each of whom has corroborated the others as to these events, and we are convinced that the clear preponderance of all the relevant evidence establishes that Clark's version cannot be credited. We therefore accept the corroborated testimony of the General Counsel's witnesses." Accordingly, we find that during the late afternoon of May 22, 1959, Clark, in a conversation with certain pickets on the picket line, solicited the strikers to abandon the Union and go back to work, sug- gested that the employees get a union of their own and if it did not go well they could reaffiliate with the Charging Union, and told the strikers that he would "die and go to hell" before he would sign a con- tract with the Union. We further find that by these statements the Respondent interfered with, restrained, and coerced its employees in the exercise of their rights under Section 7 of the Act and that it thereby violated Section 8 (a) (1) of the Act. All of the conduct which we have found violated Section 8 (a) (1) further reveals the Respondent's bad faith and is additional evidence supporting our finding that the Respondent violated Section 8(a) (5). "At this time McDowell said that he did not think the Union could get a larger pay raise than the Company was offering and if the employees wanted to keep their jobs they had better just leave the Union alone. 24 When Woodard requested additional work, McDowell said that if she had not walked out she would have a regular job on the first or second shift ; that he could have told her that, and in fact tried to do so, after she became a member of the Union. 22 Standard Dry Wall Products , Inc., 91 NLRB 544, enfd . 188 F. 2d 362 ( C.A. 3). 20 Cf. Combined Metal Mfg . Corp., 123 NLRB 895, 879, footnote 5 27 See Erie Dry Goods Company, 117 NLRB 815, 817-818. However , we hereby affirm the other credibility resolutions by the Trial Examiner as we are not convinced that they are erroneous on the clear preponderance of the evidence. 886 DECISIONS OF NATIONAL LABOR RELATIONS BOARD 3. The Trial Examiner concluded that the strike was called by the Union to bring economic pressure in order to force "further conces- sions" with respect to its demands and therefore was economic at its inception. We do not agree. Rather, we find that the strike was the result of the Respondent's failure to bargain in good faith and was an unfair labor practice strike at all times. There is clear evidence which reveals that the cessation of work was the result of the Respondent's conduct. Thus, the Union's telegram to Horblit on May 7 informed him that a strike would be recommended because of the position taken by the Respondent's negotiators, and the Union's notice to the employees calling the meeting at which the strike vote was taken refers to the Respondent's adamant position throughout the negotiations. Also it is undisputed that at that union meeting Botelho reported in some detail on the events of each negotiating meeting, told the em- ployees that "it was becoming increasingly apparent to [him] that the Company did not want to bargain with this Union in good faith," and recommended strike action for this reason. Further, the Union's May 12 letter to the employees explaining its position points to the Respondent's unreasonable contract, proposals,, adamant position, and bad-faith bargaining attitude. Moreover, the Union could hardly have been seeking "further concessions" in view of the absence of any concessions by the Respondent up to that time. 4. The Trial Examiner found that the Respondent did not violate Section 8 (a) (3) and (1) of the Act by denying reinstatement to strikers when they offered to return to work or by reinstating some of the strikers without their full seniority, because he found that they were economic strikers who were permanently replaced. We find merit in the exceptions to this conclusion. The record establishes, and we have found, that the employees went out on strike in protest to the Respondent's bad-faith bargaining. For this reason they became unfair labor practice strikers who, under established law, were entitled to reinstatement to their jobs upon un- conditional application, regardless of whether or not they had been replaced.211 It is undisputed that on or about July 7 and 8, 1959, most of the strikers made such an unconditional application. Moreover, we find that Union Attorney Goldthwaite's letter of July 15, 1959, was an unconditional offer to return to work made on behalf of all the strikers. In addition, it is admitted that, as the Trial Examiner states, all strikers were required to make application as new employees. Such a requirement is clearly improper as to employees entitled to reinstate- ment and itself constitutes discrimination in violation of Section 8(a)(3) of the Act2a 28 N.L R B. v. National Shirt Shops of Florida, 'Inc., 212 F. 2d 491 ,494 (C.A. 5). 2DSee, e g , Jack C. Robinson, doing business as Robinson Freight Lines, 114 NLRB 1093, 1096, enfd. 251 F. 2d 639 (C.A. 6). FITZGERALD MILLS CORPORATION 887 Accordingly, we find that the Respondent discriminated against those strikers who were denied reinstatement on their unconditional application and those who were reinstated without their full seniority or other rights and privileges, in violation of Section 8(a) (3) and (1) of the Act. THE REMEDY Having found that the Respondent has engaged in certain unfair labor practices, we shall order it to cease and desist therefrom, and to take certain affirmative action designed to effectuate the policies of the Act. It has been found that the Respondent refused to bargain in good faith with the Union that represented a majority of the employees in an appropriate unit. Accordingly, we shall order the Respondent, upon request, to bargain with the Union as the exclusive representative of the employees in the appropriate unit. We have also found that the Respondent discriminatorily denied reinstatement to certain unfair labor practice strikers. The record reveals that some, of those strikers have returned to work for the Respondent, but it is not clear whether they were reinstated to the same or substantially equivalent employment. It also appears, that certain of the returned strikers have not been credited with their former seniority and may have been denied other rights and privileges. Accordingly, we shall order the Respondent to offer the employees named in Appendix A, attached hereto,3° immediate and full rein- statement to their former or substantially equivalent positions, with- out prejudice to their seniority or other rights and privileges, dis- charging, if necessary, any replacements in order to provide work for such strikers. We shall also direct the Respondent to reimburse the foregoing employees for any loss of pay they may have suffered by reason of the Respondent's discrimination against them, by paying to each of these employees a sum of money equal to the amount that he normally would have earned as wages from the date of his uncon- ditional application for reinstatement to the date of the Respondent's offer of reinstatement, less his net earnings during said period, leaving for the compliance stage of the proceeding the determination of the adequacy of the reinstatement of those already returned to work. The amount of backpay due shall be computed according to Board policy set forth in F. W. Woolworth Company, 90 NLRB 289. Pay- roll and other records in possession of the Respondent are to be made available to the Board, or its agents, to assist in such computation and in determining the right to reinstatement. Because the Trial Ex- aminer recommended dismissal of the complaint, and in accordance ° The charge and complaint allege discriminatory treatment of 159 strikers Accord- ingly, we shall limit our remedial order to those so named. 888 DECISIONS OF NATIONAL LABOR RELATIONS BOARD with Board practice, we exclude from the above period the time from the date of the Intermediate Report to the date of the Order herein in computing the amount of backpay to which each employee is entitled. In view of our findings concerning the Respondent's refusal to bargain, its discrimination against the strikers, and its coercive state- ments, a potential threat of future violations exists which requires the inclusion of a broad cease-and-desist provision in our Order. CONCLUSIONS OF LAW 1. The Respondent, Fitzgerald Mills Corporation, is engaged in commerce within the meaning of the Act. 2. Local 1252, Textile Workers Union of America, AFL-CIO, and Textile Workers Union of America, AFL-CIO, are labor organiza- tions within the meaning of Section 2(5) of the Act. 3. All production and maintenance employees at Respondent's plant at Fitzgerald, Georgia, excluding office clericals, professional and technical employees, guards, and supervisors as defined in the Act, constitute a unit appropriate for the purposes of collective bargaining within the meaning of Section 9 (b) of the Act. 4. Textile Workers Union of America, AFL-CIO, at all times material hereto, has been and still is the exclusive representative of all the employees in the aforesaid unit for the purposes of collective bargaining within the meaning of Section 9(a) of the Act. 5. By refusing to bargain collectively in good faith with the afore- said labor organization as the exclusive representative of its employees in an appropriate unit, and by insisting as a condition of entering a contract that the Union agree to waive the reinstatement rights of the strikers, the Respondent has engaged in and is engaging in unfair labor practices within the meaning of Section 8 (a) (5) and (1) of the Act. 6. The strike beginning on May 11, 1959, was at all times an unfair labor practice strike. 7. By denying reinstatement to the strikers upon their uncondi- tional application and by returning some strikers to work without their former seniority or other rights and privileges, the Respondent has discriminated in regard to the hire and tenure of employment of its employees, thereby discouraging membership in the Union, and has violated Section 8 (a) (3) and (1) of the Act. 8. By making coercive statements and soliciting strikers to aban- don the Union, the Respondent interfered with, restrained, and co- erced its employees in the exercise of rights guaranteed in Section 7 of the Act, and has engaged in and is engaging in unfair labor prac- tices within the meaning of Section 8(a) (1) of the Act. FITZGERALD MILLS CORPORATION 889 ORDER Upon the entire record in the case, and pursuant to Section 10(c) of the National Labor Relations Act, as amended, the National Labor Relations Board hereby orders that the Respondent, Fitzgerald Mills Corporation, Fitzgerald, Georgia, its officers, agents, successors, and assigns, shall : 1. Cease and desist from : (a) Refusing to bargain in good faith concerning rates of pay, wages, hours of employment, or other conditions of employment with Local 1252, Textile Workers Union of America, AFL-CIO, as the exclusive representative of all production and maintenance employees at its Fitzgerald, Georgia, plant, excluding office clericals, profes- sional and technical employees, guards, and supervisors as defined in the Act. (b) Discouraging membership in Textile Workers Union of America, AFL-CIO, or in any other labor organization, by dis- charging, refusing to reinstate, or otherwise discriminating against employees in regard to their hire or tenure of employment or any term or condition of employment. (c) Threatening employees with economic reprisals if they support the Union, soliciting employees to abandon the Union, and indicating that it will not sign a contract with the Union. (d) In any other manner interfering with, restraining, or coercing its employees in the exercise of their right to self-organization, to form, join, or assist the above-named Union, or any other labor or- ganization, to bargain collectively through representatives of their own choosing, and to engage in other concerted activities for the purpose of collective bargaining or other mutual aid or protection, or to refrain from any or all such activities. 2. Take the following affirmative action which the Board finds will effectuate the policies of the Act : (a) Upon request, bargain collectively in good faith with Local 1252, Textile Workers Union of America, AFL-CIO, as the exclusive representative of all production and maintenance employees of the Respondent at its Fitzgerald, Georgia, plant, excluding office clericals, professional and technical employees, guards, and super- visors as defined in the Act, with respect to rates of pay, wages, hours of employment, or other conditions of employment, and, if an under- standing is reached, embody such understanding in a signed written agreement. (b) Offer to the employees named in Appendix A, attached hereto, immediate and full reinstatement to their former or substantially equivalent positions, without prejudice to their seniority or other rights and privileges. 890 DECISIONS OF NATIONAL LABOR RELATIONS BOARD (c) Make whole the said employees, in the manner set forth in the section entitled "The Remedy," for any loss of pay each may have suffered by reason of the Respondent's discrimination against him. (d) . Preserve and, upon request, make available to the Board, or its agents, for examination and copying, all payroll records, social secu- rity payment records, timecards, personnel records and reports, and all other records necessary to analyze the amounts of backpay due under the terms of this Order. . (e) Post at its plant in Fitzgerald, Georgia, copies of the notice attached hereto marked "Appendix B." 31 Copies of said notice, to be furnished by the Regional Director for the Tenth Region, shall, after being duly signed by the Respondent's representative, be posted by the Respondent immediately upon receipt thereof, and be maintained by it for a period of 60 consecutive days thereafter, in conspicuous places, including all places where notices to employees are custo- marily posted. Reasonable steps shall be taken by the Respondent to insure that such notices are not altered, defaced, or covered by any other material. (f) Notify the Regional Director for the Tenth Region, in writing, within 10 days from the date of this Order, what steps the Respond- ent has taken to comply herewith. MEMBERS RODGERS and FANNING took no part in the consideration of the above Decision and Order. In the event that this Order is enforced by a decree of a United States Court of Appeals, there shall be substituted for the words "Pursuant to a Decision and Order" the words "Pursuant to a Decree of the United States Court of Appeals , Enforcing an Order." APPENDIX A Ball, Cathalee Clark, L. H. Giddens, Emma Joyce Ball, Clark Clemons, Giddens, Inez Ball, Julius Irving James Giddens, James A. Baughn, L. E. Clemons, W. Alfred Giddens, J. W. Baughn, Louise Carelock, Eston Giddens, Melvin Berryhill, J. W. Carelock, Lawson V. Glisson, Shafter Bishop, Evelyn L. Cross, Daisey B. Gordon, Elvin Bishop, John Henry Dent, Russell Gordon, Louise Bond, Charlie Eaton, Bartow Gordon, Peggy Brown, Jeff Fender, Virve S. Gordon, Richard Brown, Lottie W. Fish, Frances Gordon, Thelma Brown, W. Edison Fitzgerald, Evola Goss, Frank Brickle, Alene Fountain, Oscar L. Graham, Aline R. Brickle, James E. Fowler, Agnes Gresham, Dewey Lee Bryant, Ernest Fowler, Truitt Grimsley, Bernard Chambers, Annie L. Freeman, W. J. Grimsley, Delma F. Chaney, Water R. Gaines, Lola M. Gunter, Nathaniel Clark, Bessie Geiger, Willie Gunter, Ruby Clark, Haywood, Jr. Giddens, Alvin Gunter, Sewell E. Clark, Herlie Giddens, Clint Hadden, W. R. FITZGERALD MILLS CORPORATION 891 Haddock, F. J. McDonald, James F. Rogers, Ola H. Hair, Lizzie Mae McDowell, Jessie H. Rodgers, Wilbur Hall, George A. McDowell, Julian D. Rutherford, Bertha Hancock, McDuffie, George Seagroves, C. M. James T., Jr. Mendell, Jeanette Shealey, H. G. Harper, Bailey M. Mendell, Millard Shealey, Homer J. Herring, Fannie Merritt, Eva Sheperd, Joe Hester, George W. Merritt, Rudine Smith, Alice Hogg, Elton Monk, Charlie Smith, James W. Horton, Carolyn C. Mullis, Wilbur Smith, J. C. Irvin, T. J. Musselwhite, Rufus Smith, Myra Jowers, Harold Musselwhite, Lovelle Smith, Samuel M. Justice, A. J. New, J. W., Jr. Stanfill, Ellis Justice, Lucille Newsome, Carl Sutherland, Mardell Keene, Calvin B. Newsome, Horace Swailes, R. B. Keene, Julian W. Newsome, Ruth Swearinger, Vivian Kilgore, George Nicholson, Ralph Taylor, Lucile King, Murray Padgett, Bobby Thomas, King, Ward Peacock, Mattie Mary Hannah Lewis, C. C. Peacock, Myrna Thomas, Quincey Lewis, Lillie Mae Peacock, Ola F. Thompson, Bethel Lewis, Quincy Peacock, Tessie Treadwell, Luke, James Q. Peacock, Virtue Annie Belle Luke, Will Phillips, Aubrey R. Treadwell, Edmond Lush, Johnny Phillips, Homer Turner, Harry Mahoney, Edward Phillips, Thelma Walsh, Abraham Marton, Carl L. Pope, Wilson T. Walsh, Earline Mathis, Irene Portivent, Bernice Walsh, Lula Mathis, Sam Reaves, Shellie Walsh, Shelley B. Matthews, James P. Reeves, Hamilton J. White, Charles Matthews, Thelma Revels, Winnie Woodard, Mildred McCall, James W. Rinor, Lucille Wright, Lucille McCall, Ruby Rogers, James H. Yancey, Carven McCollum, Alice R. Rogers, Morgan Zaloznik, Etherie McDonald, Esther APPENDIX B NOTICE TO ALL EMPLOYEES Pursuant to a Decision and Order of the National Labor Relations Board, and in order to effectuate the policies of the National Labor Relations Act, as amended, we hereby notify our employees that : WE WILL bargain, upon request, with Local 1252, Textile Work- ers Union of America, AFL-CIO, as the exclusive representative of all employees in the bargaining unit described below with respect to rates of pay, wages, hours of employment, or other con- ditions of employment, and, if an understanding is reached, em- body it in a signed agreement. The bargaining unit is : All production and maintenance employees at our plant at Fitzgerald, Georgia, excluding office clericals, professional and technical employees, guards, and supervisors as defined in the Act. 892 DECISIONS OF NATIONAL LABOR RELATIONS BOARD WE WILL NOT threaten our employees with economic reprisals if they support Local 1252 , Textile Workers Union of America, AFL-CIO, solicit our employees to abandon the said Union, or indicate that we will not sign a contract with the Union. WE WILL NOT in any other manner interfere with, restrain, or coerce our employees in the exercise of their right to self- organization to form, join, or assist Local 1252, Textile Workers Union of America , AFL-CIO, or any other labor organization, to bargain collectively through representatives of their own choos- ing, and to engage in other concerted activities for the purpose of collective bargaining or other mutual aid or protection , or to re- frain from any or all such activities. WE WILL offer the employees named below immediate and full reinstatement to their former or substantially equivalent posi- tions , discharging , if necessary, any replacements hired on or since May 11 , 1959, and make them whole for any loss of pay suffered by reason of the discrimination against them. Ball, Cathalee Fowler, Agnes Herring, Fannie Ball, Clark Fowler, Truitt Hester, George W. Ball, Julius Freeman, W. J. Hogg, Elton Baughn, L. E. Gaines, Lola M. Horton, Carolyn C. Baughn, Louise Geiger, Willie Irvin, T. J. Berryhill, J. W. Giddens, Alvin Jowers, Harold Bishop, Evelyn L. Giddens, Clint Justice, A. J. Bishop, John Henry Giddens, Emma Joyce Justice, Lucille Bond, Charlie Giddens, Inez Keene, Calvin D. Brown, Jeff Giddens, James A. Keene, Julian W. Brown, Lottie W. Giddens, J. W. Kilgore, George Brown, W. Edison Giddens, Melvin King, Murray Brickle, Alene Glisson, Shafter King, Ward Brickle, James E. Gordon, Elvin Lewis, C. C. Bryant, Ernest Gordon, Louise Lewis, Lillie Mae Chambers, Annie L. Gordon, Peggy Lewis, Quincy Chaney, Water R. Gordon, Richard Luke, James Q. Clark, Bessie Gordon, Thelma Luke, Will Clark, Haywood, Jr. Goss, Frank Lush, Johnny Clark, Herlie Graham, Aline R. Mahoney, Edward Clark, L. H. Gresham, Dewey Lee Martin, Carl L. Clemons, Grimsley, Bernard Mathis, Irene Irving James Grimsley, Delma F. Mathis, Sam Clemons, W. Alfred Gunter, Nathaniel Matthews, James P. Carelock, Eston Gunter, Ruby Matthews, Thelma Carelock, Lawson V. Gunter, Sewell E. McCall, James W. Cross, Daisey B. Hadden, W. R. McCall, Ruby Dent, Russell Haddock, F. J. McCollum, Alice R. Eaton, Bartow Hair, Lizzie Mae McDonald, Esther Fender, Virve S. Hall, George A. McDonald, James F. Fish, Frances Hancock, McDowell, Jessie H. Fitzgerald, Evola James T., Jr. McDowell, Julian D. Fountain, Oscar L. Harper, Bailey M. McDuffie, George FITZGERALD MILLS CORPORATION 893 Mendell, Jeanette Pope, Wilson T. Sutherland, Mardell Mendell, Millard Portivent, Bernice Swailes, R. B. Merritt, Eva Reaves, Shellie Searinger, Vivian Merritt, Rudine Reeves, Hamilton J. Taylor, Lucile Monk, Charlie Revels, Winnie Thomas, Mullis, Wilbur Rinor, Lucille Mary Hannah Musselwhite, Rufus Rogers, James H. Thomas, Quincey Musselwhite, Lovelle Rogers, Morgan Thompson, Bethel New, J. W., Jr. Rogers, Ola H. Treadwell, Newsome, Carl Rogers, Wilbur Annie Belle Newsome, Horace Rutherford, Bertha Treadwell, Edmond Newsome, Ruth Seagroves, C. M. Turner, Harry Nicholson, Ralph Shealey, H. G. Walsh, Abraham Padgett, Bobby Shealey, Homer J. Walsh, Earline Peacock , Mattle Sheperd, Joe Walsh, Lula Peacock, Myrna Smith, Alice Walsh, Shelley B. Peacock, Ola F. Smith, James W. White, Charles Peacock , Tessie Smith, J. C. Woodard, Mildred Peacock, Virtue Smith, Myra Wright, Lucille Phillips, Aubrey R. Smith, Samuel M. Yancey, Carven Phillips, Homer Stanfill, Ellis Zaloznik, Etherie Phillips, Thelma All of our employees are free to become, remain, or refrain from becoming or remaining, members of Local 1252, Textile Workers Union of America, AFL-CIO, or any other labor organization. FITZGERALD MILLS CORPORATION, Employer. Dated---------------- By------------------------------------- (Representative ) (Title) This notice must remain posted for 60 days from the date hereof, and must not be altered, defaced, or covered by any other material. INTERMEDIATE REPORT AND RECOMMENDED ORDER STATEMENT OF THE CASE This proceeding , brought under Section 10 (b) of the National Labor Relations Act, as amended , 61 Stat. 136 (herein called the Act), was heard before the duly designated Trial Examiner in Fitzgerald, Georgia, on January 19, 20 , 21, and 22 and February 9, 10, 11, and 12 , 1960 , pursuant to due notice to all parties . Based upon charges filed by Textile Workers Union of America, AFL-CIO, and its affiliated Local 1252, Textile Workers Union of America , AFL-CIO (herein called the Charg- ing Union ), a complaint was issued by the General Counsel of the National Labor Relations Board alleging that Fitzgerald Mills Corporation (herein called the Re- spondent ) has engaged in and is engaging in unfair labor practices proscribed by Section 8 (a)(1), (3), and (5) of the Act. In its answer to the complaint the Re- spondent conceded certain facts with respect to commerce within the meaning of Section 2 ( 6) and (7) of the Act, but denied all allegations of unfair labor practices. The principal issues litigated at the hearing were whether the Respondent ( 1) inter- fered with , restrained , or coerced its employees in their exercise of the rights guar- anteed in Section 7 of the Act; (2) discriminated in regard to hire or tenure of employment to discourage membership in a labor organization by refusing to rein- state striking employees at the termination of a strike allegedly caused and prolonged by unfair labor practices of the Respondent; and (3 ) refusing to bargain with the Union as the certified representative of its employees in an appropriate unit for the purposes of collective bargaining. 894 DECISIONS OF NATIONAL LABOR RELATIONS BOARD All parties were represented at the hearing and were afforded full opportunity to be heard, to examine and cross-examine witnesses, to introduce evidence pertinent to the issues involved, and to present oral argument on the record. At the close of the hearing oral argument was presented by counsel for the General Counsel, but waived by counsel for the Respondent. In due course thereafter, written briefs were filed by counsel for the General Counsel and the Respondent, all of which have been given due consideration. Upon the entire record in the case, and from my observation of the witnesses, I make the following: FINDING OF FACT 1. BUSINESS OF THE RESPONDENT Fitzgerald Mills Corporation is a Georgia corporation maintaining its principal office and place of business at Fitzgerald, Georgia, where it is engaged in the opera- tion of a cotton mill for the manufacture and sale of textiles. Respondent annually ships products valued in excess of $25'0,000 directly to customers outside the State of Georgia. Floyd W. Jefferson, Jr., of New York City is president of the corpora- tion, and Mark M. Horblit of Boston , Massachusetts, is secretary-treasurer. Resi- dent supervisors within the meaning of Section 2(11) of the Act include General Manager Ernest O. Clark, Plant Superintendent Joe Cooper, D. R. Alligood, office manager, Foreman Frank Mullis, overseer of cardroom, Foreman J. D. McDowell, overseer of spinning room, and Foreman Bill New. I find therefore and Respondent concedes that it is engaged in commerce within the meaning of Section 2(6) and (7) of the Act. H. THE LABOR ORGANIZATION INVOLVED Textile Workers Union of America, AFL-CIO, and its affiliated Local 1252, herein called the Union, is a labor organization within the meaning of Section 2(5) of the Act. In. THE UNFAIR LABOR PRACTICES A. Factual background Prior to 1952 the Respondent operated under a collective-bargaining agreement with the United Textile Workers Union of America, AFL-CIO, until, as the result of a representation election in Case No. 10-RC-1339, the Charging Union was on March 10, 1952, certified by the National Labor Relations Board as the exclusive bargaining representative of Respondent's employees in an appropriate unit con- sisting of all production and maintenance employees at the Fitzgerald, Georgia, .plant, excluding office clericals, professional and technical employees, guards, and supervisors as defined in the Act. For several years, thereafter, Respondent en- tered into a series of written contracts with this Board-certified organization, the latest of which was dated March 25, 1957, to remain in full force and effect until March 25, 1959, and to be automatically renewed for an additional period of 2 years unless written notice be given by either party to the other by January 25, 1959, of its desire to terminate, amend, or change the terms of this agreement. This agree- ment was negotiated and signed by James F. O'Shea as representative of Textile Workers Union of America, AFL-CIO, and E. O. Clark as general manager of Fitz- gerald Mills Corporation with the ratification and approval of a committee from Local 1252, TWUA, AFL-CIO. In the administration of the foregoing contract on September 23, 1958, Michael Botelho, as regional director for the Union, submitted in writing to the Respondent a series of grievances alleging certain failures of the Respondent to comply with the existing collective-bargaining agreement by not furnishing wage rate information, job descriptions, a seniority roster, introducing new insurance benefits without ne- gotiation with the Union, not complying with an arbitrator's award as to doffer twisters, not advising the Union as to what jobs are temporary and permanent, and effectuating work load changes throughout the plant without negotiation with the Union. Following conferences and additional correspondence on the subject, Re- spondent on January 19, 1959, submitted a portion of the information demanded by the Union with accompanying letter to Mr. Botelho, as follows: In keeping with my letter to you of November 11, 1957, and our telephone conversation within the last two weeks, I am herewith enclosing a copy of the wage information which you requested in your letter of September 23, the compilation of which has now been completed by the Company. In the same letter, you requested certain information as to,job descriptions. I pointed out to you at that time, and have pointed it' out to you since then, FITZGERALD MILLS CORPORATION 895 that the Company has not until recently begun to made job descriptions. This is a time consuming and slow job. They have completed a number of job de- scriptions to date and rather than cause you to wait until all are completed, I am herewith transmitting a copy of those which have been completed. When the others are completed (and I cannot give you any real estimate as to how long it will be), I will forward you additional job descriptions. It was my understanding in our conversation that you told me that as soon as you received the attached information , it was your intention to withdraw the so-called unfair labor practice charge. I would appreciate your advising me when this is done. With respect to grievances submitted under the aforesaid 1957 contract, it ap- pears that the Union filed with the Board and later withdrew a charge alleging that Respondent was refusing to bargain in good faith . In the meantime , however, Botelho on January 20, 1957, notified Respondent that the Union desired to termi- nate the existing collective -bargaining agreement and negotiate a new contract; and continued his demands on the Respondent for more complete information as to job descriptions, wage rates, etc., including social security earnings paid to incentive workers for the last two quarters of 1958. Following additional correspondence and inquiry as to the nature of the information desired by the Union, the Respondent through its attorney and public relations officer on March 6, 1959, submitted to Botelho a pay schedule of incentive workers for the last two quarters of 1958 with transmittal letter, as follows: I am enclosing you herewith the incentive workers pay schedule for the last two quarters of 1958. While our bookkeeper has not figured out the hourly earnings of each worker, this would be a matter of calculation and it would be a simple matter of division. This is a straight time pay schedule and does not include any overtime pay for those who are marked by an asterisk. We trust this is the information desired. In the meantime, Botelho notified the Respondent that it desired to begin collec- tive-bargaining negotiations for a new contract at the earliest possible moment, and submitted a list of his demands, proposals, and changes by registered mail on Feb- ruary 16, 1959, as follows: This letter will serve to officially advise you that Textile Workers Union of America, AFL-CIO, desires to begin collective bargaining contract talks with Fitzgerald Mills, Inc. at the earliest possible moment. In going over the present collective bargaining agreement between your company and our union, we have a number of changes that must be requested by the union as a means of lifting the contract from the status that it is presently in, to the type of a contract that will give the Fitzgerald workers of our union the type of a collective bargaining agreement consistent with good union.practices that they are justifiably entitled to. - Therefore, I am taking the liberty at this point to advise you that the union is requesting the following: 1. A minimum wage of no less than one dollar and twenty-five ($1.25) cents per hour. 2. A wage increase on all skilled jobs that will bring the highest wage rate for comparable work assignments to those rates being paid for similar type work in other upholstery, drapery and fabric novelty plants. 3. An incentive system that guarantees workers on average incentive pay- ment of no less than 12% above the bona fide base rate of the job. 4. A paid holiday program consistent with paid holiday programs in Mills doing similar work. 5. A second week's vacation pay after three years of employment at Fitz- gerald Mills, Inc. 6. A social security quarterly clause on all incentive jobs at Fitzgerald Mills. 7. A new no-strike , no lock-out clause. - 8. A two year contract with a wage and fringe benefit re-opening clause upon notice of one party to the other. 9. A new work- load assignment clause that will completely do away with misunderstanding in reference to work-load changes. 10. A new seniority clause to clear up misunderstanding between the company and the union as to workers rights in accordance with their seniority status. The above proposed changes,in the agreement encompasses practically all of the items that the union wishes to discuss with 'j our company- during our 896 DECISIONS OF NATIONAL LABOR RELATIONS BOARD contract conference. In addendum to the list of these proposals, changes other than those listed above will be given to you at our initial contract conference. The language covering the above will also be submitted to you during our conference negotiating session . The union can avail itself for contract talks at any time following the week ending Feb. 21, 1959. Do be kind enough to advise this writer as to when you and your company will be available to discuss the terms covering a new contract on behalf of Fitzgerald Mills and Textile Workers Union of America, AFL-CIO. At the suggestion of Respondent to provide a basis for negotiations, the Union on March 2, 1959, submitted for consideration and study six copies of a new pro- posed contract, and requested that a conference date be agreed upon to begin negotiations . From this document, which was introduced in evidence as General Counsel's Exhibit No. 13, the Respondent has pointed out in its brief and contends that in comparison with the terminated contract the Union made extreme and unreasonable demands concerning modification of each section that put in issue for negotiations every section of the proposed new contract; and that this proposal not only expanded the demands of Botelho set forth in his letter of February 16, 1959, supra, but constituted major departures in almost every particular from the terminated contract, including drastic and in some instances illegal proposals for changes in the former agreement with respect to wages, holiday pay, vacation pay, methods of computing pay rates and workloads, leaves of absence for union busi- ness, wage reopening, pyramiding of overtime payments , and an irrevocable checkoff of membership dues and initiation fees with no escape clause except during a period of 10 days immediately following the termination date of the agreement. Respond- ent contends that aforesaid checkoff proposal was in direct contravention of a Georgia law prohibiting an irrevocable checkoff and limiting the validity of such authorization to such time as there is an unrevoked written authorization from the individual employee concerned. Submission of the union proposal (General Counsel's Exhibit No. 13) was fol- lowed by a series of meetings between the negotiating parties in Atlanta, Georgia, at which the Union was represented by Michael Botelho (regional director) as chief negotiator, accompanied by Frank Barker (international representative) and various members of a committee from Local 1252, TWUA, AFL-CIO. The Respondent was represented by Ernest O. Clark (general manager ) and the law firm of Constangy & Prowell, with Attorney Frank A. Constangy as chief negotiator but in the absence of Constangy, the Respondent was represented by Attorney Marion A. Prowell. Some meetings were 'also attended by Attorney J. C. McDonald as public relations officer of the Respondent. B. Bargaining conferences The first meeting convened at 10 a.m. on March 23, 1959, but lasted only 15 or 20 minutes. Attorney Constangy requested more time in which to make a study of the union proposal, and agreed to submit a counterproposal for the Respondent at a later date. Thereupon, all parties signed an agreement extending the old contract for a period of 30 days to April 25, 1959. Botelho proposed that any wage increases subsequently agreed upon be made retroactive to the expiration date of the old contract, but Attorney Constangy proposed that this matter be left open for further negotiation. Botelho mentioned the fact that within the textile industry a general wage movement was in progress, and inquired as to the Respond- ent's position on wages. Constangy was noncommittal, but agreed to later submit in detail a wage proposal to accompany the Respondent's counterproposal for a new contract. Thereupon, the meeting adjourned. Thereafter, in collaboration with Mark M. Horblit (member of Respondent's executive committee) the company negotiators prepared the company counterpro- posal, which has been introduced in evidence as General Counsel's Exhibit No. 18, and three copies thereof were forwarded to the Union with transmittal letter dated April 4, 1959, as follows: In keeping with the commitment made to you at the time of our meeting on March 23, in connection with Fitzgerald Mills, I am enclosing herewith three copies of the Company's counterproposals in connection with the Contract. I also wish to advise you, in keeping with our commitment, that the Company proposes, effective April 27th, that it will adjust the wage scale of the various classifications in the mill to reflect the new prevailing wage scales in the textile mills in South Georgia and to correct certain inequities as between jobs. It is the Company's estimate that its proposals will yield in excess of a 5% increase overall, but it does not propose that the increase be across-the-board. The FITZGERALD MILLS CORPORATION 897 Company is preparing a schedule of individual jobs and- the increases it pro- poses to make in them, and this should be ready for presentation as of the date of our meeting. I will call you next week, as I agreed by telephone today, and advise you if I have been able to set up a meeting for next Friday. Having mailed copies of the company counterproposal to the Union, the Respond- ent immediately posted on bulletin boards in the plant a notice to employees, as follows: APRIL 6, 1959 NOTICE THE COMPANY IN ITS COUNTERPROPOSALS WHICH IT HAS MADE TO THE UNION TODAY HAS INDICATED TO THE UNION THAT IT PROPOSES TO PUT INTO EFFECT ON APRIL 27, 1959 A WAGE INCREASE WHICH WILL REFLECT THE NEW WAGE SCALES WHICH ARE BEING INTRODUCED IN THIS AREA AND TO STRAIGHTEN OUT CERTAIN INEQUITIES WHICH NOW EXIST. WE ARE HOPEFUL THAT THE UNION WILL SEE FIT-TO AGREE THAT WE CAN MAKE THE INCREASE THAT IS BEING PROPOSED EFFECTIVE ON THE DATE SHOWN AND WILL NOT CAUSE US TO HAVE TO DELAY THE INCREASE BEYOND THAT DATE. In the interim pending further negotiations , General Manager Ernest O. Clark visited a competing plant in Alabama to obtain information from which to prepare a wage proposal based upon wages , paid in that area. From, information obtained the Respondent with the approval of Horblit prepared its wage proposal. for sub- mission at the next bargaining session to the Union. The next bargaining conference convened in Atlanta, Georgia, on April 10, 1959. This meeting is significant in that both the union proposal and the company counter- proposal for the first time circumscribed the maximum and minimum limits of the area within which the parties must reach complete agreement . At this meeting the Respondent presented to the Union in writing the schedule of individual jobs and proposed wage increases therein, which had been promised in its letter of April 4, 1959, supra . This document was introduced in evidence as General Counsel's Exhibit No. 23, and will be hereinafter called - company wage proposal. With respect to negotiations on April 10, 1959, I find the testimony of witnesses for the General Counsel uncertain , incomplete , and confusing ; and am therefore constrained to rely on witnesses offered by the Respondent for an intelligent summary as to what occurred on that date . Witnesses for the General Counsel either had no,accurate recollection of this meeting or tended to confuse and merge it with a subsequent meeting held on April 24, 1959. A formal bargaining session was scheduled to convene at the law offices of Constangy & Prowell in Atlanta , Georgia , at 2 p .m. on. April 10 , 1959 . Having in the meantime received the company counterproposal , Botelho and Barker in the absence of the local committee sought and obtained a preliminary informal con- ference with Attorney Constangy at 10 a .m. to discuss some aspects of the company counterproposal . At that time Constangy proposed to postpone the afternoon session because of other business matters , but Botelho insisted that the afternoon session proceed , because the local committee was en route from Fitzgerald , Georgia, to hear a full discussion of both the union and company proposals . Attorney Prowell was called in for orientation, so that he could represent Respondent during the absence of Constangy. At this informal morning session Botelho raised objec- tions to predicating wages at the Fitzgerald plant on wages prevailing in other cotton textile mills in that area. He also discussed arbitration and other clauses contained in the union proposal , and pointed out that the company counterproposal had entirely overlooked and omitted any checkoff clause . Attorney Constangy thereupon advised Botelho that decisions with respect thereto . had been made by company officials superior to General Manager Clark , and suggested that Botelho discuss the whole matter with Mark M. Horblit of Boston , Massachusetts, if he desired to do so . This informal morning session lasted about . -1 hour. The more formal afternoon session convened at 2 p .m. with Botelho, Barker, and several members of the local committee present as representatives of the Union. Constangy, Prowell , and Clark were present representing the Respondent . Attorney Constangy opened the meeting by presenting to the Union the company wage pro- posal . With this as a basis , the subject of wages was discussed pro and con for approximately 1 hour until Attorney Constangy left the meeting at approximately 624067--62-vol . 13358 - 898 DECISIONS OF NATIONAL LABOR RELATIONS BOARD 3 p.m. Before leaving, Constangy explained to the union negotiators that the com- pany proposals contemplated an overall wage increase of approximately 5 percent for all employees except the fork-lift driver, who had already received a raise in pay within the preceding 60 days. Botelho protested that the Union had not been consulted concerning a pay raise for the fork-lift driver. The discussion included base rates, expected earnings, minimum wage, average earnings of weavers for the preceding 6 weeks, change in assignment of loom fixers, rate differentials for two machinists, and the union proposal to change the method of making wage adjust- ments in the future by abandoning the use of wages paid by other cotton mills in the area as a basis therefor. Upon the departure of Constangy, the subject of wages was passed for further discussion at a later meeting. For the remainder of this session Attorney Prowell acted as chief spokesman for the Respondent, and made complete minutes and notes while Botelho reviewed and discussed, article by article, both the union proposal and the company counterproposal, and outlined the union position and requirements with respect thereto. Attorney Prowell made it quite clear that he would not make further commitments on questions raised by the union spokesmen until submitted for consideration to Constangy and higher officials of the Respondent. This he agreed to do, and promised further discussion at the next meeting . Thereupon, the meeting adjourned at approximately 5 p.m. Thereafter, on April 13, 1959, the Respondent posted on bulletin boards in the plant a notice to employees, as follows: April 13, 1959 NOTICE THE COMPANY MET WITH THE UNION FRIDAY, APRIL 10TH, AND PRESENTED TO THEM THE FOLLOWING WAGE RATES THAT IT PROPOSES TO PUT INTO EFFECT ON APRIL 27TH. THESE RATES WILL REFLECT THE NEW WAGE SCALES WHICH ARE BEING INTRO- DUCED IN THE AREA. WE ARE HOPEFUL THAT THE UNION WILL SEE FIT TO AGREE THAT WE CAN MAKE THESE INCREASES ON THE DATE SHOWN AND WILL NOT CAUSE US TO DELAY THIS INCREASE. On or about April 20, 1959, Botelho made a trip to Boston Massachusetts, and in conference there with Mark M. Horblit discussed the entire situation and status of negotiations for a new contract. Botelho related to Horblit the problems of the Union in reaching an agreement with General Manager Clark and his attorneys, and requested his intervention to bring about an amicable settlement of the issues in dispute. Mr. Horblit told Botelho in substance that reports from General Manager Clark did not quite coincide with the union interpretation, but assured Botelho that he would go to New York and discuss these matters with President Floyd W. Jefferson, Jr., and thereafter transmit an answer thereto either directly or through Attorney Constangy to the Union. Upon returning to Atlanta, Botelho reported the Horblit conference by telephone to Attorney Frank A. Constangy, and by mutual consent a further meeting for negotiations was scheduled for Friday, April 24, 1959. Constangy told Botelho that he could not attend this meeting, but that Attorney Prowell would be present as spokesman for the Respondent. They discussed a further extension of the old contract, and Constangy thereafter prepared an agreement continuing the contract in effect to a date to be agreed upon and inserted at time of signing. Consequently, the next bargaining conference convened in the absence of Attorney Constangy at 10:30 a.m. on April 24, 1959, with General Manager Clark, Attorney J. C. McDonald, and Attorney Marion A. Prowell representing the Respondent. The Union was represented by Botelho, Barker, and several members of the local committee. Detailed notes and minutes of the meeting were kept by attorneys for the Respondent, but not by representatives of the Union. With respect to the events of April 24, 1959, the testimony,of Botelho and other witnesses for the Union is so vague, indefinite, garbled, and confused with the prior meeting on April 10, 1959, and the posting of aforesaid notice in the plant by Respondent on April 13, 1959, that I find the union version thereof unrealistic and inaccurate as compared with the version of the Respondent, and am constrained, therefore, to credit the testimony of Attorney Marion A. Prowell as to what occurred. Marion A. Prowell credibly testified in substance that the meeting convened at 10:30 a.m. and remained in continuous session to. adjournment at 1:20 p.m. on the same date-that initially Botelho protested,the'posting.by Respondent of the notice concerning wage rates on April 13, 1959, and accused' the Respondent of -trying thereby to discredit the Union; whereupon, the Respondent agreed to;prepare and FITZGERALD MILLS CORPORATION 899 post a more acceptable notice in lieu thereof. Botelho then proposed to review the company counterproposal and point out revisions thereof demanded by the Union along with argument as to why the Respondent should accept the proposed changes therein. Thereupon, discussion of the company counterproposal proceeded. It was agreed that article I (Recognition) and article II (Hours of Service) were satis- factory. As to article III (Discrimination), Botelho proposed that the discrimination clause from the old contract be retained,,but Respondent would not agree to that. As to article IV (Grievances), Botelho proposed to retain the corresponding clause from the old contract with certain changes in the arbitration clause, but the Respond- ent would not agree to that. As to article V (Reporting Time), Botelho proposed in lieu thereof to insert article III, section G, of the union proposal increasing the pay for reporting time to 4 hours instead of 3 hours, but the Respondent would not agree to that. As to article VI (Production Interference), Botelho proposed that article VII of the old contract be retained in lieu thereof. There was also discussion in which General Manager Clark also participated with respect to allowing repre- sentatives of the Union to enter the plant to investigate working conditions. Prow- ell stated that he would recommend that International Representative Barker be permitted access to the plant for the purpose of investigating grievances. As to article VII (Wages), Botelho objected to section (a) and (b) limiting and conform- ing wage rates in the Fitzgerald plant to those prevailing in cotton mills located in the area of southern Georgia. He agreed to section (c) as written, but as to section (d) proposed to increase the pay differential of employees working on the third shift from 5 cents per hour to 7 cents per hour in addition to their regular pay. The Respondent would not agree to any change in article VII as proposed by it. As to article VIII (Seniority), Botelho would not agree , and proposed that the seniority clause of the old contract be retained in lieu thereof. As to article IX (Management ), all parties reached agreement . As to article X (Workload), Botelho rejected Respondent's proposals , insisted that article IV of the union proposal be adopted in lieu thereof, but stated that he would consider retention of article XI (Workload) contained in the old contract. Respondent would not agree to that. As to article XI (Vacations), Botelho proposed to withdraw his original proposals on vacation pay, and submitted a new proposal that was not accepted by the Re- spondent. As to article XII (Bulletin Boards ), all parties reached agreement. As to article XIII (Cooperation), all parties reached agreement . As to article XIV (Safety and Health), all parties were in agreement. As to article XV (Acknowl- edgment that no grievances are now outstanding), Botelho insisted that pending grievances be settled before including such a clause in the new contract. As to leaves of absence (omitted), Botelho insisted that article XVI of the old contract be included in a new contract. As to article XVI (Terms of Agreement), Botelho insisted that article XVIII (Amendments to Agreement) as contained in the old contract be also included in a new contract. Botelho said he would agree to. a contract for more than 1 year provided it contained a reopening clause at each anniversary date upon notice of 60 days. Following review of the formal contract proposals there was a discussion on wage rates based upon the company wage proposal. Botelho insisted upon a minimum wage rate of $1.25 per hour and a wage increase of 7 cents per hour for all em- ployees instead of the 5 cents per hour increase proposed by Respondent. He also insisted upon a minimum base rate of $1.33 for weavers, $1.60 for loom fixers, and $1.70 for fixers , and proposed that all wage rates in the plant be tied in with wages paid by textile plants in South Carolina rather than the southern Georgia area, but the Respondent would not agree to that. General Manager Clark suggested that the wage rates be based upon those paid by competing plants in Alabama, but Botelho would not agree to that. Botelho demanded that a checkoff clause be in- cluded in the contract, and Prowell told him that the Respondent had decided as a matter of policy not to enter into another agreement containing a checkoff clause in the form proposed by Botelho. At the conclusion of the meeting all parties signed the extension agreement previously prepared by Attorney Constangy, and thereby the old contract was continued in full force and effect to May 9, 1959. Another meeting was scheduled for May 7, 1959, and Attorney Prowell with approval of the union representatives dictated a notice to be posted on bulletin boards in the plant, as follows: COMPANY NOTICE TO ALL FITZGERALD EMPLOYEES Your management met with the Union negotiators on Friday, April 24, 1959. At this conference the Union made a counterproposal to the Company pro- posal on wages that, was posted throughout the plant in relation to the Com- pany's wage_ increase proposal. - , 900 DECISIONS OF NATIONAL LABOR RELATIONS BOARD No agreement was reached on wages and the parties will meet again within two weeks to negotiate further on the wage proposals. Both the Union and the Company have agreed to extend the Union contract for a period of two weeks from the expired date of April 25, 1959 to midnight, Saturday, May 9, 1959. Dated this 27th day of April, 1959. Upon adjournment of the meeting at 1:30 p.m. on April 24, 1959, General Man- ager Clark called his office at the Fitzgerald plant, dictated another notice to his secretary by telephone, and gave instructions that it be posted prior to the shift change at 2 p.m. on that date. This is the notice that, in my opinion, the Union has mistakenly and unsuccessfully contended was posted prior to 6 a.m. on that date, several hours before the above bargaining session was convened in Atlanta, Georgia. From a preponderance of the evidence I find that this notice was in fact prepared and posted between 1:30 and 2 p.m. as contended by the Respondent, as follows: April 24, 1959 NOTICE - TO EMPLOYEES: THE COMPANY AND UNION REPRESENTATIVES MET IN CON- TRACT NEGOTIATIONS TODAY AND THE UNION REFUSED TO AGREE TO THE COMPANY'S WAGE PROPOSAL. THE UNION IN- SISTED THAT NEGOTIATIONS ON WAGES BE CONTINUED AND THEREFORE, THE WAGE INCREASE WILL NOT BE PUT INTO EFFECT AS OF MONDAY, APRIL 27, 1959. On or about May 5, 1959, Botelho had a telephone conversation with Attorney Frank A. Constangy in which he inquired whether Constangy had received any reply from higher officials of the Respondent with respect to union counterproposals sub- mitted to Attorney Prowell at the meeting on April 24, 1959. Constangy stated in reply that he had discussed the entire situation with Horblit by telephone, and that the Respondent was not inclined to recede from its position as outlined in the original company counterproposal and its wage proposal; but that Horblit was going to New York for a conference with other members of Respondent's executive committee, and would thereafter call him again concerning the matter. Thereupon, Botelho unsuccessuflly tried to contact Horblit by telephone, and on May 6, 1959, sent him a telegram requesting that Horblit call him by telephone prior to the meet- ing scheduled for the next day. No reply thereto from Horblit was received. In the meantime Attorney Constangy ascertained that Horblit would be in New York on May 7, 1959, and the scheduled bargaining conference on that date was post- poned until 1 p.m. to facilitate conversation between Horblit and Constangy prior to the meeting. The Respondent was there represented by General Manager Clark and Attorneys Constangy and McDonald. The Union was represented by Botelho, Barker, and several members of the local committee. Botelho requested an answer from the Respondent on his counterproposals made at the former meeting. Attorney Constangy stated that the Respondent would adhere to its original proposals. There- upon, Botelho announced that he was withdrawing any concessions offered by him- that he would stand on the original union proposal of March 2, 1959, and that he would hold a meeting with the employees at Fitzgerald and recommend that they go on strike. Thereupon, Constangy proposed that the Respondent, without prejudice to further negotiations, make effective as of Monday, May 11, 1959, its wage pro- posal, but Botelho would not agree to that. Botelho then dispatched a telegram to Mark M. Horblit, as follows: POSITION TAKEN BY YOUR COMPANY NEGOTIATORS DURING CONTRACT TALK THIS THURSDAY, MAY 7, 1959 COMPELS THE LOCAL UNION COMMITTEE AND I TO RECOMMEND THAT THE FITZGERALD MILL EMPLOYEES STRIKE' YOUR COMPANY BEGIN- NING ONE MINUTE AFTER MIDNIGHT SATURDAY MAY 9, 1959. THE UNION NEGOTIATING COMMITTEE AND I WILL CONTINUE TO AVAIL OURSELVES FOR FURTHER CONTRACT DISCUSSIONS WITH YOUR COMPANY NEGOTIATORS FROM THIS DATE FOR- WARD. Under dateline of May 7, 1959, the Respondent mailed a notice to each of its employees, as follows: NOTICE TO OUR EMPLOYEES: We met with the Union committee, Mr. Botelho, and other Union officials in Atlanta today in an effort to reach an agreement on a contract. We were not able to reach agreement , the Union contending that unless they could get cer- FITZGERALD MILLS CORPORATION 901 tain demands that they were making that they would not extend the present contract. The contract expires on Saturday. The Union officially advised us they were calling a strike as of next Monday morning. Under the laws of Georgia and in keeping with the policy of this mill, this mill will be open for business on Monday on all shifts. Those employees who want to work will be free to work and their jobs will be available for them. No employee and no other person has any right to interfere with any person who desires to work. Those of you who want to strike have a right to do so. Those of you who do not want to strike and who want to work, have an equal right to do so. The decision is up to you. In the negotiations today we made clear to the Union even though they re- jected our proposal, that we thought it only fair that we make effective imme- diately the wage increases we proposed to the Union early last Monday and a copy of which was posted on the bulletin board without prejudice to the Union's demands. On the same date, the Union mailed to each employee a notice, as follows: TO ALL FITZGERALD EMPLOYEES CONTRACT NEGOTIATIONS ARE OVER The Union Negotiating Committee , and your International Union Negotia- tors could not accept Mr. Clark's final offer on wages, and other contract benefits. BECAUSE what Mr. Clark has offered the Union by way of a wage increase, and new contract benefits, is an insult to all the Fitzgerald Workers. IN THE FIRST PLACE there is not one organized plant in the North or South , making the same cloth that is made in Fitzgerald Mills that pays its skilled workers and machine tenders such low sub-standard wages like you are getting in your plant. WE PRESENTED MR. CLARK with what we knew was a fair wage scale, and our contract demands, in rela- tion to all of your other conditions of work were reasonable, and in all honesty we believed was the least benefits, that you are entitled to. MR. CLARK REJECTED our proposals , and he insisted that we write a new contract on his terms. THIS THE UNION COMMITTEE could not agree to do. For to sign such a sub-standard contract, would betray your trust in your Union and, once again deny you what you are entitled to by way of good hourly wages, good fringe benefits, and a good Union contract. THE CHALLENGE TO THE UNION by Mr . Clark , must be met by you. AND FOR THIS REASON we are asking you to attend the Union meeting Saturday, May 9, 1959, at the Cotton Mill School House, at 2:00 P.M. For at this meeting you will be asked to decide your course of action from that day on. COME COME COME to the meeting Saturday, for the very existence of your Union is threatened. For after Mid-night Saturday, your Union contract expires, and there will be no Union contract to protect you on wages, grievances, seniority , and work- loads from Monday, May 9, 1959 on. (Signed) M. MICHAEL BOTELHO, (Signed) J. F. MCDONALD, Regional Director, President, TWUA, AFL-CIO. Local Union No. 1252. (Signed) EDMOND TREADWILL, (Signed) W. F. BARKER, Vice-President, International Representative , Local Union No. 1252. TWUA, AFL-CIO. (Signed) BERNARD GRIMSLEY, Financial-Secretary, ( Signed ) WALTER WOLFE, Local Union No. 1252. Internattonal Representative , (Signed) WILSON T. POPE, TWUA, AFL-CIO . Committeeman. 902 DECISIONS OF NATIONAL LABOR RELATIONS BOARD C. Incidents of the strike At 2 p.m. on May 9, 1959, the Union held a meeting at the Cotton Mill School House in Fitzgerald , Georgia, when and where Michael Botelho reviewed the bargaining situation and explained his position with respect thereto to approximately 130 employees . Pursuant thereto a strike was called for midnight on that date, but in fact became effective at work starting time on Monday, May 11, 1959, when a picket line was established along the road in front of the plant gate . The plant continued in operation with a reduced complement of workers , and from time to time obtained replacements for strikers by transfers within the plant, recalling laid- off employees , and hiring new applicants for employment . On May 12, 1959, the Union explained by letter to all Fitzgerald workers the issues involved, as follows: TO ALL FITZGERALD WORKERS: Greetings, Many questions are asked by you in relation to the strike at Fitzgerald Mills, in Fitzgerald , Georgia. This letter, in my belief would be six pages long if I was to spell out for you in detail all of the issues that the Company and the Union could not agree upon during our contract negotiations. So that you may understand the most compelling reasons why the Union representatives could not agree to the last Company proposals , I have taken the-liberty of pointing out for you certain sections of the Company's proposal for a contract that would hurt you, and not help you as a worker at Fitzgerald. I have copied some of the Company's proposals to the Union that I feel are most objectionable . I have taken the liberty to underline these proposals so that you can understand more fully just what the issues are. Under article I of the Company's proposal , you will find that overtime is paid only in excess of forty hours per week and not after eight hours in any one day. Under article IV you will find underlined the amount of days that it would take to dispose of a simple grievance , under the Company's proposed contract. In other words in order to settle a simple grievance , provided however that we could get the Company to meet on this grievance in the specified time, it could take forty days to settle a simple grievance . But, you will note on each of these steps there is no time limit to require the Company to meet with the Union. What does this all mean ? This means that as in the past the Company could , if they wanted to , take as much as six months to a year to settle a grievance because in no section of this article does it say that the Company must meet with the Union in any specified time limit. While speaking on grievance procedure, it is very important to note, that section V does not even give the Arbitrators the right to add to, or subtract from the grievance . This could be a hopeless situation for you. Under article VII, on- wages, the Company again proposed to the Union, that we tie your wages with the wages being paid in the cotton Mills of South Georgia. The Union negotiators take the position that this is unfair to you because the cloth that you weave is sold on the market by the Company at a much higher price per yard than the cloth woven in any of the cotton Mills in South Georgia. The Union suggested in relation to wages, a very sensible wage plan, a copy of which you received along with the other Union proposals a short time ago. The Company rejected our wage plan, and substituted one of their own. When one averages out the amount of money per hour the wage increase would cost the Company, the increase is only 50 per hour. While this low wage increase offer was bad enough by itself, the Company then disclosed its wage proposal to the Union . In essence , the wage rates offered by them were not base rates, but expected earnings for all workers on piece work. NOW WHAT DOES THIS MEAN? For the loomfixers , the Company proposed a rate of pay of $1.70 per hour for loomfixers provided however that the Union would agree on behalf of the loomfixers , that they would take 18 additional looms. Thereby increasing their assignments to 53 looms per sections. While this is in itself was bad enough , the Company was not willing to stop there . They also told us that the loomfixers in order to make $1.70 per hour must maintain 86% efficiency on their sections. FITZGERALD MILLS CORPORATION 903 This question should be asked the loomfixers , "Do you loomfixers believe that you can maintain your efficiency average at 86 %?" While .I am not a loomfixer , I know enough about a weaving .Mill to know that a t would be impossible for you to keep up this efficiency and you would not be getting your proper pay and meanwhile be increasing your work assignments by over 50%. If the strike should fail , the loomfixers are going to find themselves in a position that would almost be impossible to work under. Higher work -loads and pay far below the $1.70 per hour. Mr. Clark told me that there were many piece work jobs in the Mill that he felt needed to be changed , by increasing their job loads . Spinners, Twisters, Daffers, Card Tenders , Battery hands, Quill Winders , and Winders, Warptenders, practically every job in the plant , in the very near -future would be involved in increased work load changes. The Union told Mr. Clark, that they . could not sign a contract with him that did not protect the wages of the piece workers. The Union also told Mr . Clark , that under his -formula , people could be doing more work , and getting less money than before the contract proposal was submitted. On this issue alone , every worker in Fitzgerald Mill should be outraged, because if you felt that you were being exploited before , just imagine what would happen if the Union should agree to Mr . Clark's wage proposal. Article VIII Seniority made it impossible for the Union, even if it wanted to, to agree to this Company proposal, because of section A of this article. You will see underlined in the judgment of the Company who should be laid oft and who should not be. Who should be called back , no matter how many years of faithful service you have given to the Company at Fitzgerald. The older people who have worked there for many years could be laid off sooner than a'younger person and the Union could do nothing about it. Again we say that all of the long time employees of this Company should strike the Company an this issue alone , because they would have no seniority rights guaranteed them if the Union was to sign the proposed contract that it received from Mr . Clark. The second paragraph in relation to 'promotions , again specifies the same ground rules as illustrated in Section A above in relation to transfers from one job to another. Again under this article the Company could continue a temporary job for five years and the Union could do nothing about it. In section 6, the Company could discharge anyone if he or she failed to perform their work as the contract specifies. Article X Work-loads, under the Company's proposal for workload changes, here again , the Union found itself in a very impossible position. As you read section B of the work-load section , you will see outlined the method by which the Company would increase your jobs. The next paragraph underlined , again would stop the Union from challenging a work-load change made by the Company on the basis of ,the more efficient performers , and not the average worker. If the Union should agree to such a work -load clause . you could understand that Mr. Clark and the Company could establish higher work -loads in the plant by changing your job and establishing a new job load for you on the basis of the proficiency of the fastest workers in the department. How many of the older workers and yes even the average workers would remain as employees of this Company should the Union agree to such a work- load clause. The answer is, that any time, the slower worker could be fired from their jobs for inefficiency , and the Union would be unable to help them. Under article XI, the Company again proposed one weeks vacation with pay. The Union wanted two weeks vacation pay for all employees working for the the Company for 5 years or more. The Company would not give the Union paid holidays . The Union asked for 6 paid holidays and here in the South, many textile workers are getting from one to seven paid holidays per year. The Company would not agree to a new Union proposed Insurance-benefits clause in the contract. We feel that you deserve and need changes in your insurance benefits that would be consistant with the raise in price of hospitalization , medicine, etc. The Company said the employees must accept what they already are paving for in the way of insurance and they refused to make any improvements what- soever on insurance. 904 DECISIONS OF NATIONAL LABOR RELATIONS BOARD The Company would not agree to the check -off of Union dues, even though it has been doing this for over ten years. The Company did not agree to a new no -strike , no lock-out clause submitted by the Union . In other words , the Company consistant with its bad faith bargaining attitude for many years , handed the Union negotiators a 61/2 page document that they insultingly called a Union contract. The Union has a better name for such a contract , and unless these contract clauses are changed, the Union , if we were to sign such a contract , would in essence be breaking faith with you. For the contract Mr. Clark offers would not help you. We, in the Textile Workers Union of America pride ourselves as being a decent and honest Union , and not a Company dominated , sellout institution. So the strike is on, and while there is a break in the ranks, 'I am happy to report to you that there are more people outside on strike , fighting the good fight to preserve their jobs, than there are going into the Mill. To those of you who are now working , and not on strike with our courageous Brothers and Sisters , let me issue this warning to you. Mr. Clark has done a good job of twisting the facts around . If you continue to cross our picket lines , you will in the end be helping Mr . Clark, and the Com- pany to destroy you and your job. What is your answer? Will you join us on the picket line? Will you fight to protect your seniority ? Or will you keep on working when you know already what Mr. Clark holds for you in the future. We sincerely hope you will join with us outside the Mill until such time as Mr. Clark agrees to negotiate an honorable and decent contract that will protect you rather than hurt you. Sincerely yours, MB/f oeiu #21 M. MICHAEL BOTELHO, Regional Director. The next meeting of the negotiating parties was held at the instance of the Federal Mediation and Conciliation Service in Atlanta, Georgia, at 14 a.m . on June 1, 1959. Present for the Respondent were General Manager Clark , Attorney Constangy, and Attorney Fred Elarbee of the Constangy & Prowell law firm. The Union was repre- sented by Botelho, Barker, several members of the local committee , and others. After separate private conferences with the parties, D. K. Jones (commissioner) convened the meeting . Botelho announced that the issues in dispute consisted of (1) wages, (2) grievance procedure , ( 3) workloads , (4) seniority , ( 5) checkoff, (6) insurance , (7) holidays, ( 8) vacations , and (9) an incentive program. Dis- cussion of the various articles and sections contained in both the union proposal and the company counterproposal and Respondent's wage proposal ensued. With respect to grievances , Botelho complained that under company counterproposal the time required to reach arbitration was excessive . Thereupon , Attorney Cons- tangy proposed to amend article IV , section ( 3), thereof by adding an additional sentence , as follows: If no meeting at Step 3 is held within 20 days of the request for such meeting, the matter may then be taken to arbitration under paragraph ( b) hereof. .With respect to layoffs and reinstatements after layoffs, Botelho expressed op- position to making physical fitness in the judgment of the Company a condition thereof ; and Attorney Constangy proposed to insert in article VIII ( Seniority) of company counterproposal the following language: In layoffs and recalls involving the same classifications and in the same jobs with the same physical requirements , physical fitness will not be controlling as against seniority unless there are increased or different physical requirements on the jobs remaining or the jobs to be filled. Botelho again raised a question under the third paragraph in section (a) of article VIII to clarify whether jobs were permanent or temporary; and Attorney Constangy proposed to eliminate this paragraph and insert in lieu thereof the language which appears in his confirming letter of June 4, 1959 , infra. Botelho reviewed at length his proposed insurance benefits, and agreed to make certain changes and modifications in the demands set forth in the union proposal. When it was pointed out to him that Respondent already had insurance for the benefit of employees pursuant 'to an agreement negotiated with International Repre- sentative James F. O'Shea , Botelho requested that he be furnished with a copy of FITZGERALD MILLS CORPORATION 905 that policy. Respondent agreed to do so, and thereafter sent him the policy with letter of transmittal dated June 4, 1959, as follows: DEAR MR. BOTELHO: In keeping with our discussion at the meeting on last Monday, June 1, 1959, I am enclosing a copy of a sample insurance certificate with the Southern Life Insurance Company which is a policy in force on the employees at the above mill. The premiums on this insurance are 58¢ per week for an employee; $1.28 per week for an employee and one dependent; and $1.78 for an employee with more than one dependent. I also agreed that I would review and submit to you specific language on our proposal to eliminate the fourth paragraph- of Article VIII of the Company's proposal dealing with so-called temporary and permanent jobs. The Company proposes to eliminate that paragraph and substitute the following in lieu thereof: The fact that a job runs only part of the time and not full time or the fact that the nature of the Company's production is such that it necessary to run any job on a part time basis will not be regarded as constituting a lay off on the part of the person whose job is partially curtailed or a vacancy on such job which would enable the employees on the curtailed job to bump another junior employee whose job happens to be running full. An em- ployee will exercise bumping rights only when his job is completely dis- continued and not when partially curtailed to the point that it operates less than a full shift or week. With respect to workloads, Botelho complained that the clause proposed by Re- spondent did not furnish sufficient data to the Union in connection with changes made in the jobs of individual employees. Thereupon, Attorney Constangy proposed to amend article X (Workload) of company counterproposal by inserting the second paragraph from article XI of the old contract providing for specific prior notice of changes in workloads to the president or vice president of the Local Union in advance of any change. Botelho would not agree to that, and insisted on having an workload clause that would provide for trial periods based upon the practices of the average rather than most efficient producers. As to holidays, he demanded that Thanksgiving Day, Christmas Day, and New Year's Day be paid holidays. With respect to va- cations he withdrew a previous proposal, and requested that a second week of vacation with pay be added for all employees after 5 years' service. In conclusion Botelho again discussed wage rates, and demanded additional wage increases and the checkoff clause desired by him with respect to the company wage proposal. In that regard, Attorney Constangy advised Botelho that neither he nor General Manager Clark had authority to increase the money items or cost items theretofore proposed by Respondent or to agree to a checkoff clause without prior approval of higher officials of the Respondent. Constangy agreed, however, to again submit his demands to higher authority, but expressed doubt that Respondent would make any further concessions with respect to wages. Thereupon, the meeting adjourned. Michael Botelho credibly testified without contradiction that Attorney Constanigy went to New York shortly after June 5, 1959, discussed the situation with President Floyd Jefferson, Jr.; and thereafter advised him that the Respondent would not recede from its prior position. Thereupon, Botelho requested the Federal Mediation and Conciliation Service to reconvene the parties for further negotiations. The next bargaining session was held on July 1, 1959, in Atlanta, Georgia, before Commissioner D K. Jones of the Federal Mediation and Conciliation Service. Present for the Respondent were General Manager Clark and Attorney Prowell. Constangy was ill in a hospital and did not attend. The Union was represented by Botelho, Barker, and members of the local committee. After separate conferences with both parties, the commissioner suggested that they again review and discuss the outstanding proposals of Respondent and the Union. In going through the company counterproposal, Botelho agreed to accept article I (Recognition), article IT (Hours of Service), article IV (Grievances), article V (Reporting Time), article VTT (Seniority), article IX (Management), article XII (Bulletin Boards), article XTTT (Cooperation), article XIV (Safety and Health), and article XV (Acknowl- edgment that no grievances are now outstanding, provided pending grievances were settled). He did not agree to accept article ITT (Discrimination), article VT (Pro- duction Interference), article VII (Wages), article X (Workload), and article XI (Vacations). As to article III (Discrimination) and article VI (Production Inter- ference), Botelho proposed to substitute and renew both of these articles as they appear in the old contract. As to article VII (Wages), Botelho agreed to accept the wage increases already put into effect by the Respondent, provided Respondent would grant another additional 5 percent or 5 cents per hour wage increase at the 906 DECISIONS OF NATIONAL LABOR RELATIONS BOARD end of 6 months . As to article X (Workload ) Botelho proposed a clause like that in the old contract with changes which he would later submit in writing. As to article XI ( Vacations ), Botelho proposed to add an extra week's vacation with pay after 5 years ' service. With respect to demands of the Union not covered by the company counter- proposal, Botelho agreed to accept the insurance program already in effect , offered to reduce his demands of paid holidays from six to two, and indicated that he would waive demands for a checkoff if agreement could be reached on all other provisions of a complete contract . With respect to leaves of absence for illness, union business, service in the Armed Forces, etc., Botelho requested that article XVI of the old contract be inserted in a new contract. By reason of his limited authority in reaching an agreement with respect to money matters and the checkoff , Attorney Prowell kept detailed notes concerning the new concessions and proposals being made by the Union , and agreed to submit them to Attorney Constangy and higher officials of the Respondent for a final answer thereon. He further agreed to furnish Botelho with a complete answer to his proposals on or before Monday, July 6, 1959 . Thereupon , the meeting adjourned.. On Monday , July 6, 1959 , Attorney Prowell notified Botelho that the Respondent's officials were unwilling to accede to or agree to the new proposals made at the meet- ing of July 1, 1959 . Botelho then proposed to forthwith terminate the strike and send the strikers back to work in the plant . Attorney Prowell 's reply was that only 21 jobs were available in the plant , and that strikers who applied for jobs would be hired to fill these vacancies on a first -come first-served basis . Thereupon, the strike was terminated , and all strikers applied for immediate reinstatement. The Respondent refused to recognize any right to reinstatement , but required all strikers to sign applications for work as new employees , and it was further required that such applications be currently renewed from week to week thereafter , or otherwise they would not be considered . for vacancies that might arise in the plant. At the time of the hearing it was asserted that 49 former strikers had been rehired. The next and final meeting of the negotiating parties was held before the Federal Mediation and Conciliation Service in Atlanta, Georgia, with Commissioner D. K. Jones presiding , at 10 : 30 a.m . on July 10 , 1959. The Respondent was represented by General Manager Clark and Attorney Marion A. Prowell, the Union by Botelho, Grossett , Attorney J. R. Goldthwaite , Jr., and several members of the local com- mittee. Botelho stated that the strike had been terminated ,' thereby removing all pressure from the parties, but that differences between the Company and the Union were still in effect ; and requested that negotiations be resumed from the point at which the last meeting had been concluded . Thereupon, Attorney Prowell explained in substance that the Respondent had during the strike hired permanent replacements for the strikers by assuring them that they would not lose their jobs by reason of the seniority of strikers coming back to work and that this position of the Company must be protected and clarified by signing a written document to that effect before any contract could now be negotiated with the Union . Prowell presented for agree- ment by the Union and inclusion in any contract signed between the parties a pro- posal , as follows- COMPANY PROPOSAL 1. Those strikers who have been permanently replaced have no rights under this Contract. 2. Those strikers who were permanently replaced and have been placed on other available openings shall have their seniority rights under this Contract for future vacancies. Botelho, thereupon , refused to enter into such agreement or negotiate on any basis whatsoever that would foreclose the right of strikers to return to their old jobs in the plant. The meeting ended at 11:30 a in , marking the end of all negotiations between the parties. On July 13. 1959, Attorney J. R Goldthwaite, Jr., on behalf of strikers and the Union , posted a letter to the Respondent as follows: This will confirm Mr. Botelho's conversation with*Mr . Marion Prowell on July 6th in which he advised Mr . Prowell that the strike at Fitzgerald Mills was being terminated and that as of the following morning, Tuesday, July 7th, all striking employees unconditionally offered to return to their former jobs or to any available work. Each of the striking employees did then and does now un- conditionally offer to return to work at Fitzgerald Mills Corporation at his former job or at any other available employment This offer is made without waiving any rights which the employees may have tinder the National Labor FITZGERALD MILLS CORPORATION 907 Relations Act, as amended , in proceedings now pending or which may be here- after instigated. In reply thereto, Attorney M. A. Prowell , on behalf of the Respondent , posted a letter to Attorney Goldthwaite on July 16 , 1959, as follows: This will acknowledge receipt of a copy of your letter of July 15 , 1959 to Fitzgerald Mills Corporation. We must advise you that your letter does not represent the events that transpired between the writer and Mr. Botelho of the Textile Workers Union, nor does it accurately reflect the subsequent events that took place. We can only interpret your letter as a statement of the events as you would like for them to have occurred . Mr. Botelho , in his letter to the Georgia State Department of Labor under date of July 8th , accurately recorded his statement to me on July 6th that he intended to call off the strike and to direct the strikers to report to the Company commencing July 7th and apply for a job. Mr. Botelho also ac- curately notes in his letter that there were less than thirty vacancies that had not been previously filled and that the Company would consider those strikers who applied for any vacancies that existed. As you know , a number of the employees who went on strike have not applied for a job with the Company. D. Alleged violations of Section 8(a) (1); and indicia of bad-faith bargaining Counsel for the General Counsel contends that certain conduct engaged in by supervisors of the Respondent is indicia of bad -faith bargaining and also interfered with , restrained , and coerced employees in their exercise of the rights guaranteed in Section 7 of the Act. It was not denied that in April 1959 , after Respondent had posted its notice of April 13 , 1959, proposing certain wage increases , Mildred Woodard (employee in the spinning room ) jold her supervisor (Foreman J. D. McDowell ) that the Company was offering less ,pay increases than expected, and that the Union would get them a larger pay raise ; whereupon , McDowell said he did not think so, he did not think the Union could do anything about it, and if they wanted to keep their jobs they had better just leave the Union alone. At a later date in November , after the strike , this employee (while employed part time) re- quested additional work; whereupon , Foreman McDowell said that if she had not walked out she would have a regular job on the first or . second shift-that he could have, and, in fact tried to tell her that after she had , become a member of the Union . (In the opinion of the Trial Examiner the foregoing remarks of a sub- ordinate supervisor in isolation do, not constitute a violation of Section 8(a)(1) of the Act.) Irving James Clemon ( twister doffer) incredibly testified that about the middle of April 1959 he had a casual conversation with General Manager Ernest 0. Clark on the railroad tract at the plant in which Clark said that there was not going to be any union down there, that the Company would not stand for it, (This con- versation was credibly denied by Mr. Clark .) Clemons credibly testified further that later in April he went into the office to see Clark , because he needed his pay- check to support his family and was afraid there was going to be a strike-that he volunteered to withdraw his authorization for a checkoff in - favor of the Union, and thereupon signed a withdrawal slip tendered to him at that time. He told Clark that the boys were talking about a strike, and Clark said, "Yeah, that is all right. You people have chosen Michael Botelho to lead you, now let Michael Botelho lead you,"-that he believed they were nothing but Communists , and could not picket a fence in the State of Georgia and get away with it. He told Clark that someone was trying to run him away from the- plant , and Clark said, "As long as I am Gen- eral Manager nobody ain 't gonna run you off." Clark said that the Union was in- terested only in dues, and that he would not agree to a checkoff clause that would require employees to belong to a union. - Clark's credible version of the foregoing conversation was that Clemons came to his office prior to the strike, said there were rumors of a strike , that he had a big family to take care of and was forced to have work ; that he told , Clemons the gate would be open for him to work, and it would ,be entirely up to him whether or not to work if a strike was called . Consequently, I- find therein no violation of Section 8(a)(1) Mrs. Tessie Peacock (spinner ) credibly testified that - General -. Manager Clark called her into his office about 1 week prior to- the strike and talked to her as a friend . Clark related to her that he had heard there , would be a strike and was afraid there would be serious trouble-that he did not want anybody to get hurt. He recalled that his father and her husband had been killed over something like this, 908 DECISIONS OF NATIONAL LABOR RELATIONS BOARD and he did not want anything like that to happen again . Clark explained to her that in the event of a strike the employees would not draw unemployment pay and could not get jobs elsewhere until the labor dispute was settled. Clark said that he did not like the contract that the Union wanted him to sign by reason of two clauses in it, one of which was the checkoff-that if they wanted a union they would just have to collect their own fees-that the other clause would require employees to stay in the Union for a year, and he did not think it was-right to have to belong to something they did not want or got dissatisfied with. He further stated that the Union only wanted a fee, did not care anything about the people, and would sign any kind of contract if the Company would agree to a checkoff. (In the foregoing statements of General Manager Clark, I find no violation of Section 8(a) (1) of the Act.) J. T. Hancock, Jr., incredibly testified that Foreman Mullis at the water cooler in the cardroom on May 16, 1959, told him that the Company was definitely not going to sign a contract. Foreman Mullis credibly denied making any such state- ment, and, further testified that on May 16, 1959, he was not at work in the plant, and engaged in no such conversation. During the strike, about dusk in the late afternoon of May 22, 1959, General Manager Ernest 0. Clark drove out to the plant in his automobile, and stopped in front of the gate near his office. At that point he engaged in conversation with two strikers, John Henry Bishop and Rudine Merritt, who were sitting together in a parked car. The conversation began on friendly terms, but soon degenerated into a heated discussion as other strikers assembled about the 2 cars until approximately 20 people had joined the group. Counsel for the General Counsel offered the testi- mony of approximately a dozen witnesses tending to show that Clark degraded the union leaders as agitators , solicited these employees to abandon the Union and go back to work, and also made, a statement to the effect that he would not sign a con- tract. John Henry Bishop (striker) testified in substance that Clark drove up and inquired whether he was ready to go back to work; then said, "I hear them agitating s - o - b's told you all not to speak to me. Why don't you all get together and get a union of your very own, and if it don't go well then you can call them back. Well, I am not going to sign a contract . I will die and go to hell before I will sign a contract." Rudine Merritt (striker) corroborated the foregoing testimony of John Henry Bishop, and testified further that she asked Clark if he would sign the old contract without a checkoff clause, and that he said that he would do so. She then inquired whether he planned to double up the workloads in the plant, and Clark said, "Yes- that he planned to take 3 jobs and make 2 out of them." She again asked Clark if he would sign the old contract without the checkoff clause, and he said, "I wouldn't say that I would." Wilbur C. Rogers (striker) testified in substance that he heard Clark say that he would "die and go to hell" before he would sign a contract, and told them to get the "Union agitating s - o - b's" out of Fitzgerald. He then told Clark that he went out on strike because Botelho• had reported over the loudspeaker that he (Clark) had made the statement that "they were ignorant and did not have no better sense than to work for $1.075 an hour." Thereupon, Clark said it was "a damn lie." Louise L. Baughan testified in substance that she heard Clark say that he could not sign a contract if he wanted to; and that the union people had "lied to us." J. T. Hancock, Jr. (striker), testified in substance that Clark told the strikers to "get rid of those union agitators and get a union of our own later on"-that he had no authority to sign a contract, and would "die and go to hell" before he would give in to the union agitators-that Botelho "lied about his calling us stupid"-that "all of us could go back on our jobs, and get rid of the union agitators." General Manager Ernest 0. Clark testified in substance that in reply to the ques- tion of his signing a contract , he said , "No, John , I can't sign the Union 's contract. I have no authority to sign the Union's contract." He never made any statement that the employees were ignorant, and told Wilbur Rogers that whoever told him that "was a damn lie." He did not say he would "die and go to hell " before he would sign a contract, but might have said so with respect to signing the Union 's contract. He did not say anything about the people getting rid of the Union, trying it without a union , or getting a union of their own . He did not say anything about workloads such as having two people do the job of three people, or anything like that. (I credit the version of Clark because it is more consistent with past and subsequent ne- gotiations between the parties.) During the strike , General Manager Clark made speeches to employees not on strike or hired as replacements for strikers . Nell Gresham (weaver ) credibly testi- fied in substance that she was not a member of the Union , and did not go out on strike-that she remained in the plant and worked at various jobs-that she heard FITZGERALD MILLS CORPORATION 909 two speeches made by Clark to employees at work during the strike. Clark said that he did not want any violence, and "told us not to have anything to say to strikers, and pay no attention to anything we heard"-that "he appreciated our coming to work, and the plant would operate as long as anybody was there to work"-that after the strike some of the strikers would not come back, and the replacements would not be taken off their jobs-that he would resign rather than have some of the strikers come back-and that the signing of a contract was out of his hands, and he had no authority to do so. (In these remarks made by General Manager Clark, I find no violation of Section 8(a) (1).) Howard (Alvin) E. Dillard (yarn man) credibly testified in substance that he applied for a job during the strike and was hired by Respondent on May 25, 1959. About 2 weeks later General Manager Clark made two speeches to employees working in the plant. Clark "told us to keep our car windows rolled up when we crossed the picket line, make no reply to anything said by the strikers, and cause no trouble"-that "we had a right to protect our property, to call him if any trouble occurred, and he would send the patrols to where we lived"-that "most of the strikers had lost their jobs and been replaced by us, and that he would resign rather than have some of them come back to work"-that he would not sign a contract with the Union unless they came to his agreements. (In these remarks of General Manager Clark, I find no violation of Section 8 (a)( 1 )(1).) Sewell E. Gunter (striker) credibly testified in substance that on one occasion after May 22, 1959, General Manager Clark spoke to him on the picket line, in- quired what he was striking for, and said that if he signed a contract it would not do him (Gunter) any good . (In this incident, I find no violation of Section 8(a)(1).) Concluding Findings It is not disputed that the Charging Union is the duly elected representative of Respondent's employees in an appropriate unit by reason of certification by the Board in Case No. 10-RC-1339 on March 10, 1952. After 7 years of harmonious contractual relations with the Respondent , the Union terminated the current collective-bargaining agreement expiring on March 25, 1959, and attempted to ne- gotiate a new contract to provide wage increases of approximately 12 to 15 percent and other terms more favorable to the Union. The instant case arose in the course of such negotiations by reason of Respondent's failure to meet the increased de- mands of the Union. It is not a function of the Trial Examiner to determine griev- ances filed by the Union under the old contract or to suggest fair and equitable terms for a new contract. The negotiating parties must reach agreement in accord- ance with the principles of collective bargaining , -and in the manner promoted and provided by the National Labor Relations Act. Section 8 of the Act defining and proscribing unfair labor practices provides, inter alia, as follows: (d) For the purposes of this section , to bargain collectively is the perform- ance of the mutual obligation of the employer and the representative of the em- ployees to meet at reasonable times and confer in good faith with respect to wages , hours, and other terms and conditions of employment, or the negoti- ation of an agreement , or any question arising thereunder, and the execution of a written contract incorporating any agreement reached if requested by either party, but such obligation does not compel either party to agree to a proposal, or require the making of a concession: In my opinion the record supports a finding herein that both parties in their ne- gotiations prior to the strike on May 9, 1959, met at reasonable times and con- ferred in good faith with respect to terms and conditions of employment with the expectation of reaching agreement and executing a written contract incorporating any agreement reached. Proposals and counterproposals were made in writing by both the Union and the Respondent, and were accompanied by numerous confer- ences, conversations over telephone, and correspondence by mail. Respondent pro- posed to put into effect on April 27, 1959, wage increases of approximately 5 per- cent to reflect new wage scales being introduced in the area and correct existing inequities. I find nothing in the notices posted by the Respondent on bulletin boards in its plant on April 6, 13, 24, and 27, 1959, which was calculated or in- tended to discredit the bargaining position of the Union. At the bargaining con- ference on May 7, 1959, when the Union announced its intention to strike, attorneys for Respondent again proposed to put into effect its proposed wage increases with- out prejudice to the continuance of negotiations with the Union. It is clear, there- fore, that the strike was called by the Union to bring economic pressure upon Re- spondent in an effort-to-force further-,concessions with respect to union demands. 910 DECISIONS OF NATIONAL LABOR RELATIONS BOARD I find, therefore, that the strike of May 9, 1959, was economic at its inception, and was not caused by unfair labor practices of the Respondent. Notices mailed to employees on or about May 7, and 12, 1959, indicate that an impasse in negotiations had been reached, and the Respondent did not engage in an unfair labor practice by making its proposed wage increases effective at the time of the strike without preju- dice to further negotiations with the Union. The plant continued in operation throughout the strike, and Respondent hired permanent replacements for most of the strikers, but at no time withdrew any proposals made to the Union or refused to confer in good faith with respect to wages, hours, and other terms and conditions of employment with the objective of reaching an agreement on the issues involved; although it refused to make concessions of a material nature beyond those con- tained in its original proposals. Meetings were held under auspices of the Federal Mediation and Conciliation Service on June 1, 1959, and on July 1, 6, and 10, 1959, but agreement on a complete contract was not reached. At the meeting on July 1, 1959, it appears that the parties were near agreement on all contract terms except wages, and as to that issue the Union agreed to, accept wage increases already put into effect by Respondent, provided Respondent' would grant an additional overall wage increase of 5 percent at the end of 6 months. When at the next meeting on July 6, 1959, Respondent refused .to grant this concession, the strike was forthwith terminated by the Union with a demand that all strikers be returned to work in the plant. Respondent thereafter rehired strikers on- a first come basis to fill current and future job vacancies; but refused to displace persons 'hired as replacements during the strike. Having found that the strike was economic in character, it follows that Respondent did not engage in an unfair labor practice by refusing to reinstate economic strikers whose jobs had been filled by permanent replacements prior to any offer to return to work, unless it be further found that such strike was prolonged or converted into an unfair labor practice strike by subsequent illegal conduct' of the Respondent. In the opinion of the Trial Examiner the only incident worthy of consideration as a factor in prolonging, the strike or converting it into an unfair labor practice strike occurred at or near the picket line in front of the plant gate on May 22, 1959, when General Manager Ernest 0. Clark encountered a group of strikers and made intemperate remarks concerning the union -leadership and his intentions about signing a contract. The gravamen of his offense on that occasion was that in replying to the goading questions of the strikers, Clark lost his temper and said that he would "die and go to hell" before he' would sign a contract such as the Union was demanding. At the same time Clark indicated in reply to Rudine Merritt that Respondent would sign' an agreement in terms of the old contract without a checkoff clause. My conclusion is that, the' aforesaid conduct and statements of General Manager Clark were not violations of Section 8(a)'(1); and did not have the effect of prolonging or converting the' strike into `an unfair labor practice, strike, because at the ensuing conference with union representatives on June 1, 1959, 'Respondent by-and through its attorneys and General Manager Clark reaffirmed its proposals to the Union and continued to negotiate -in good faith to reach an agreement, albeit on terms less than the union demands. , . Conclusions Having carefully reviewed all evidence and the entire record, in the case, I am thereupon constrained-to find and conclude that bargaining negotiations between the Union and the Respondent have been hard and long with respect to the terms and conditions of a new contract. The Union submitted contract proposals demanding wage increase of approximately 12 percent and other terms and conditions more favorable by far towards the employee organization than those existing under the old contract. The Respondent made written proposals offering wage increases of approximately 5 percent and union-security provisions considerably less than those contained in the old contract, omitting entirely the checkoff of union dues from the wages of its employees. Thereupon, it became the strategy of the Union to force further concessions from the Respondent. When the impasse was reached on May 7, 1959, the Union called a strike to exercise economic pressure on Respondent, but failed to close down the plant. Respondent continued to meet at reasonable times with representatives of the Union, and confer in good faith with respect to wages, hours, and other terms and conditions of employment in an effort to negotiate a new agreement. The Respondent was no more adamant in standing on its original proposals than the Union was in trying to enforce its increased demands for still' higher wages and additional union-security provisions in the contract. Few concessions were granted by 'either party. The Act does not require Respondent to agree'to proposals made by the-Union or to make concessions GREAT EASTERN COLOR LITHOGRAPHIC CORP. 911 with respect thereto so long as it bargains in good faith , as required by the Act. In finality, the Union terminated its strike and demanded full reinstatement for all strikers . Respondent rehired strikers without discrimination to fill existing job vacancies in the plant , but refused to displace permanent replacements hired during the strike. Except in that respect Respondent has not refused to continue negotia- tions with the Union in an effort to reach agreement on a new contract. [Recommendations omitted from publication.] Great Eastern Color Lithographic Corp . and Local 52, Amalgam- ated Lithographers of America . Case No. 3-CA-1503. Octo- ber 11, 1961 DECISION AND ORDER On March 28, 1961, Trial Examiner Thomas A. Ricci issued his Intermediate Report in the above-entitled proceeding, finding that the Respondent had engaged in and was engaging in certain unfair labor practices and recommending that it cease and desist therefrom and take certain affirmative action, as set forth in the Intermediate Report attached hereto. The Trial Examiner further found that the Respondent had not engaged in certain other unfair labor practices alleged in the complaint and recommended dismissal of those allega- tions. Thereafter, the Respondent and the Charging Party filed exceptions to the Intermediate Report and supporting briefs, and the Respondent also filed a request for oral argument.' Pursuant to the provisions of Section 3(b) of the National Labor Relations Act, the Board has delegated its powers in connection with this case to a three-member panel [Chairman McCulloch and Mem- bers Leedom and Brown]. The Board has reviewed the rulings made by the Trial Examiner at the hearing and finds that no prejudicial error was committed. The rulings are hereby affirmed. The Board has considered the Inter- mediate Report, the exceptions and briefs, and the entire record in this proceeding, and hereby adopts the findings, conclusions, and rec- ommendations of the Trial Examiner, with the following additions and modifications? We do not agree with the Trial Examiner's finding that the dis- charge of employee Pace by Frank Perretta violated Section 8( a) (3). Pace had a had record of absences during his approximately 6 months of employment and was discharged almost immediately upon his As the record , including the exceptions and briefs , adequately sets forth the issues and positions of the parties , the request is hereby denied. 2 In his Intermediate Report the Trial Examiner , in referring to a statement by Louis Perretta , the Respondent 's president, to an employee that he could find work elsewhere because he had joined the Union , inadvertently stated that such statement was made to employee Case, when he obviously meant employee Cross. However , this error does not affect the correctness of the Trial Examiner 's conclusion that such statement constituted a violation of Section 8(a)'(1) of the Act. 133 NLRB No. 89. Copy with citationCopy as parenthetical citation