Graphic Arts International

National Labor Relations Board - Board Decisions

Dec 28, 1973

208 N.L.R.B. 37 (N.L.R.B. 1973)

GRAPHIC ARTS INTERNATIONAL
Graphic Arts International Union Local 262, AFL-
CIO and London Press, Inc. Case 31-CC-397
December 28, 1973
DECISION AND ORDER
By CHAIRMAN MILLER AND MEMBERS JENKINS
AND KENNEDY
On August 29, 1973, Administrative Law Judge
James S. Jenson issued the attached Decision in this
proceeding. Thereafter, the General Counsel filed
exceptions and a supporting brief, and Respondent
filed an answering brief.
Pursuant to the provisions of Section 3(b) of the
National Labor Relations Act, as amended, the
National Labor Relations Board has delegated its
authority in this proceeding to a three-member panel.
The Board has considered the record and the
attached Decision in light of the exceptions and
briefs and has decided to affirm the rulings, findings,
and conclusions of the Administrative Law Judge
and to adopt his recommended Order.
ORDER
Pursuant to Section 10(c) of the National Labor
Relations Act, as amended, the National Labor
Relations Board adopts as its Order the recommend-
ed Order of the Administrative Law Judge and
hereby orders that the complaint be, and it hereby is,
dismissed in its entirety.
MEMBER KENNEDY, concurring:
I concur in the conclusion of my colleagues that
the complaint herein should be dismissed. I do so
without reaching the merits of the case. In my view,
Section 102.48 of the Rules and Regulations of the
National Labor Relations Board requires us to adopt
the Decision of the Administrative Law Judge
because the General Counsel's exceptions and brief
in support thereof were untimely filed.
It is undisputed that General Counsel did not send
to Respondent or its counsel a copy of his request for
an extension of time to file exceptions and brief to
the Decision of the Administrative Law Judge.
Section 102.46(a) of our Rules requires that such
requests be served promptly upon the other parties.
Telephone advice to opposing counsel of an inten-
tion to request an extension does not constitute
substantial compliance with the rule, in my opinion. I
am unwilling to ignore the fact that the extension
here was obtained through an ex paste communica-
tion to the Board in breach of our Rules. I do not
believe the ex paste communications with the Board
should be encouraged.
I would grant Respondent's motion to strike the
37
exceptions and brief as untimely filed and adopt pro
forma the Decision of the Administrative Law Judge.
DECISION
STATEMENT OF THE CASE
JAMES S. JENSON, Administrative Law Judge: This case
was tried before me in Los Angeles, California, on May 29
and 30, 1973. The complaint, which issued on April 30,
1973, pursuant to a charge filed on April 3, 1973, alleges
violations of Section 8(b)(4)(i) and (ii)(B) of the ' Act.
Respondent's answer admits a number of the factual
allegations in the complaint but denies the jurisdictional
allegations and that the object of its picketing was illegal
on the ground the primary and alleged secondary employ-
ers are not unrelated business enterprises, but are in fact
economic allies in an integrated "straight-line" business
operation. Thus, the principal issue is whether London
Press, Inc., Parliament News, Inc., American Art Enter-'
prises, Inc., and World News, Inc., d/b/a Pacific News are
separate and unrelated employers, or economic allies in an
integrated "straight-line" business operation. All parties
were afforded full opportunity to appear, to introduce
evidence, to examine and cross-examine witnesses, to argue
orally on the record, and to file briefs. Briefs were filed by
both Respondent and the General Counsel.
Upon the entire record in the case, and from my
observation of the witnesses and their demeanor, I make
the following:
FINDINGS OF FACT
1. JURISDICTION
The London Press, Inc., herein called London, is
engaged in printing adult materials in North Hollywood,
California. London annually sells printed publications
valued in excess of $50,000 directly to customers located
outside the State of California.
American Art Enterprises, Inc., herein called American,
is engaged in the production and publication of adult
materials. Parliament News, Inc., herein called Parliament,
is engaged in the distribution of printed materials on a
nationwide basis. World News, Inc., d/b/a Pacific News,
herein called World, is engaged in the distribution of
printed materials in the Los Angeles County, California,
area. American, Parliament, and World are engaged in
their respective business ventures in a single building
located in Chatsworth, California. Parliament annually
ships printed materials directly outside the State of
California in an amount in excess of $50,000. Upon the
entire record, I find that London, American, Parliament,
and World are employers and/or persons engaged in
commerce or in operations affecting commerce within the
meaning of the Act.
II. THE LABOR ORGANIZATION INVOLVED
Graphic Arts International Union Local 262, AFL-CIO,
is a labor organization within the meaning of Section 2(5)
of the Act.
208 NLRB No. 28
38 DECISIONS OF NATIONAL LABOR RELATIONS BOARD
III. THE UNFAIR LABOR PRACTICES B. Relationship Among the Companies
As stated above, American is engaged in producing and
publishing adult materials at the Chatsworth location
which it shares with Parliament and World. London is
engaged in printing adult materials at its plant located in
North Hollywood which is approximately 15 miles from
Chatsworth. London is the exclusive printer of American's
publications and Parliament is American's exclusive
distributor on a nationwide basis. World is a local
distributor to newstands and bookstores within the Los
Angeles County area.4 London also does printing and
bindery work for other publishers of adult materials. Last
year London billed American for approximately 1-1/2
million dollars and the other publishers for a little over 4
million dollars. Thirteen publishers, other than American,
were identified on the record by name as customers of
London. All but one distribute their London printed
publications through Parliment. All materials distributed
by Parliament are printed by London.5 Oxford Bindery, a
d/b/a [sic] of London,6 performs all of London's bindery
operations at 7315 Fulton Street. Its office is located across
the street at 7310 Fulton, which is also London's office
address.
The following are the officers of the respective compa-
nies:
A. The Labor Dispute
The pleadings establish that at all material times
Respondent has been engaged in a labor dispute with
London' concerning wages, hours, and working condi-
tions, and in support thereof picketed the premises of
Parliament, American, and World from on or about March
1, 1973,2 to on or about April 26, 1973.3
The General Counsel contends that Parliament, Ameri-
can, and World are neutrals to the dispute and that an
object of the picketing was to force or require them, and
other persons, to cease doing business with London, in
violation of Section 8(b)(4)(i) and (ii)(B) of the Act.
Respondent admits its responsibility for the picketing and
the legend on the picket signs, but contends Parliament,
American, and World are not neutrals, but are allies of
London, and with London comprise a single, integrated,
straight-line operation engaged in producing, printing, and
distributing adult-oriented materials. The evidence estab-
lished that the picketing had the effect of stopping all
deliveries made by independent trucking concerns to, and
pickups from, the Chatsworth premises occupied by
American, Parliament, and World.
President Vice President Secretary-'treasurer
London Robert Accetta Michael Mahr Beatrice Luros
Parliament Paul Wisner Howard Green Rita Grossman
American Wilbur Hulsey Howard Green Rita Grossman
World Howard Green (Open) Rita Grossman
Five percent of the stock of each company is held by its
respective president, and the remaining 95 percent is held
in trust with the City National Bank as trustees and Milton
and Beatrice Luros as the beneficiaries. Milton Luros is
also London's manager, for which he receives a salary. No
dividends have been paid on the stock held by the
presidents of the various companies. While each of the
companies maintains separate books and records, Parlia-
ment, which has a system three IBM machine, performs
the accounting functions for all of the companies on a
daily basis, including billing customers, seeing that bills are
paid, and processing the payrolls for each of the compa-
nies. London rents space for, and employes a bookkeeper
at, the Parliament offices. Rita Grossman, Parliament's
office manager, assists London's bookkeeper. All of the
employers involved herein share the cost of Harold Ross, a
certified public accountant, and have the same corporate
1 Respondent and London were parties to a recently expired collective-
bargaining agreement covering London's lithographic production employ-
ees
2 All dates herein are 1973 unless otherwise stated.
3 The legend on the signs read:
This plant does not meet prevailing wage standards, fringe benefits and
working conditions established in So California for lithographic
production employees. Graphic Arts International Union Local 262
protests these sub-standard conditions of employment at this plant
From about April 16 to 26, the wording or. one of the picket signs was
counsel. There is no eivdence of interchange or transfer of
employees among the companies, and the president of each
company is in charge of the labor relations matters
covering his respective entity. Until the expiration of its
collective-bargaining agreement with the Respondent,
London's lithographic production employees were covered
by employee benefit plans negotiated with Respondent. Its
nonbargaining unit employees were included in the benefit
plans which covered the employees of American, Parlia-
ment, and World. Since the expiration of the contract, all
of London's employees have been included within the
fringe benefit plans covering the employees of the other
companies involved herein.
For a number of years, London's office has been located
at 7310 Fulton Street, and its printing plant has been
across the street at 7311 Fulton. Prior to January 1972,
when Parliament, American, and World moved to the
changed by substituting the words "Parliament News" in place of "This
Plant."
4 The record does not disclose whether World's distribution is limited to
American's publications or London printed materials.
5 Based upon the credited testimony of Rita Grossman , who, as
Parliament 's office manager, the secretary-treasurer of Parliament , Ameri-
can, and World , performs accounting functions for all of the companies
involved herein , including London.
6 Parliament Press is another d/b/a [sic ] of London Detaii •egardmg its
operations were not elicited during the trial
GRAPHIC ARTS INTERNATIONAL
Chatsworth location, American occupied the front of the
building at 7311 Fulton and London occupied the rear
portion. While there was a wall between the two opera-
tions, there were several connecting doors and it was
common practice to keep at least one of the doors open
during the day for traffic between the two. There was daily
contact between personnel of both companies for the
purpose of checking work.? At one time Parliament used
one of the rooms at the rear of the building for storage
purposes. For about 2 or 3 years prior to moving to the
Chatsworth location, Parliament occupied premises on
Wyandotte Street in North Hollywood, approximately four
to six blocks from London's operations. Before that,
Parliament occupied the building now occupied by Oxford
Bindery at 7315 Fulton, next door to the London and
American operations, and before that it shared the
premises at 7311 Fulton. While each of the companies had
its own phone number, there was a single telephone
switchboard located at 7311 Fulton which served all three
companies. The door to the premises at 7311 listed the
names of London, Parliament, and American. After
Parliament and American moved to Chatsworth in January
1972, a handmade sign was placed in the door beneath the
three names, informing the public that American and
Parliament had moved. The names of American and
Parliament have more recently been deleted from the glass
door.
Accetta testified that Ross, the CPA for all four
companies, attends meetings of London's corporate offi-
cers, and that Milton Luros attended the last meeting.8
Hulsey testified' that the last meeting of the officers of
American occurred in 1972 and dealt with production and
sales. Wisner, president of Parliament, was present since he
is involved in sales. The meeting was held in the Oxford
Bindery offices at 7310 Fulton and Milton Luros was
present. Hulsey further testified that he had known and
worked for Mr. Luros in New York and that he moved to
California in 1957 and joined Luros who had gone there
earlier. American was founded by Luros, and Hulsey was
employed as an artist with the company when it was first
formed. Hulsey testified that late in the summer of 1971, he
told Luros that ". . . I'd like to move up in the
organization," and that Luros responded ". . . something
to the effect, `It's about time.' " Hulsey further testified
.. From there, things developed," and shortly thereafter
he was informed by letter that he was the president. He did
not own stock in the company at that time, but later
received 5 percent of the stock as a gift from an unknown
source. He sometimes discusses American's problems with
Luros who gives him advice which he does not necessarily
follow.
Analysis and Conclusions
The basic question in this case is whether in fact
American, Parliament, and World are neutral third parties
in the dispute between Respondent and London. "Allies"
of a struck employer are not neutrals and are therefore not
entitled to the protections of the secondary boycott
7 London now provides a delivery service between its Fulton Street plant
and American's Chatsworth location.
8 As noted earlier, Milton and Beatrice Luros are the beneficiaries of the
trusts which hold 95 percent of the stock of each of the corporations. Mr.
39
provisions of the Act. The "ally" principle has been applied
where one employer is performing "struck work" for the
primary employer, and,, where, as here, the relationship
derives from a combination of circumstances indicating
that the employers are engaged in an integrated, straight-
line operation. Factors considered most persuasive by the
Board and the courts in determining whether two or more
corporations are engaged in an integrated, straight-line
operation are the degree of common ownership of the
employers involved, the common control of the day-to-day
operations including labor relations, the extent of integra-
tion of the business operations, and the dependence of one
employer on the other for a substantial portion of the
business .9
While it is not shown definitively that the labor relations
or actual day-to-day operations of the respective employers
is commonly controlled, a realistic evaluation of all the
factors convinces me that London, American, Parliament,
and World are engaged in an integrated, straight-line
operation, and that American, Parliament, and World are
not, therefore, neutrals within the secondary boycott
provisions of the Act
There is a high degree of common ownership in all of the
four companies as shown by the fact that 95 percent of the
stock of each is held in trust for the benefit of Beatrice and
Milton Luros. The evidence convinces me that Milton
Luros is not a passive beneficiary , but is in fact an active
participant in the day-to-day operations of the employers
involved herein. The evidence established that he is
London's manager, for which he receives a salary, and
although not an officer, that he attended the last meeting
of London's officers. Although not an officer of American,
he also attended the last meeting of the officers of that
corporation, which also included Wisner, Parliament's
president. Hulsey testified that Wisner attended because
"the meeting had to do with production and sales and he
was involved in sales." No explanation was given why the
meeting was held in the Oxford Bindery office at 7310
Fulton Street, which is the location of Luros' office, instead
of the Chatsworth premises where all of the officers of
American and Parliament are located, nor why Luros
attended.10 Additional evidence which convinces me Luros
is active in the day-to-day operations and control of the
companies is Hulsey's testimony regarding his elevation to
the office of president of American shortly after informing
Luros that he would ". . . like to move up in the
organization," and Luros' response that "It's about time."
Furthermore, Hulsey depends upon Luros for advice.
The evidence established that until January 1972, when
American, Parliament, and World moved the approximate
15 miles to the Chatsworth location, London, American,
Parliament, and World occupied the same or adjacent
buildings for approximately I1 years. During that time
there was a common telephone switchboard and the names
of London, American, and Parliament were listed on the
door to the premises at 7311 Fulton. Although the
companies maintain separate -books and records, the
Luros is also London's manager.
9 N L.R B v. Local810, IBT (Sid Harvey, Inc), 460 F .2d I (C.A. 2, 1972).
i0 The evidence does not disclose a representative of the trustee attends
meetings of officers of any of the corporations.
40 DECISIONS OF NATIONAL LABOR RELATIONS BOARD
accounting functions for each is handled by Parliament.
There is a common certified public accountant and
corporate counsel. Prior to the labor dispute between
London and the Respondent Union, the nonbargaining
unit employees of London and the employees of American,
Parliament, and World participated in the same employees
benefit plans. London's bargaining unit employees were
added to the same plan following the expiration of the
collective-bargaining agreement with the Respondent
Union. London's exclusive punting, and Parliament's
exclusive distribution of all of American's publications,
and Parliament's exclusive distribution of virtually all
other material printed by London, further convinces me
that American, London, and Parliament are a part of a
unified and economically integrated production, printing
and sales effort which may be characterized as a "straight-
line operation." In this vein, it is noted that American is
entirely dependent upon London's printing and upon
Parliament's distribution of its publications, while Parlia-
ment is entirely dependent upon London's printed materi-
als for distribution, and American's publications account
for a substantial amount of London's printing.11
On the basis of these facts, I find that American,
Parliament, and World are not neutrals or wholly uncon-
11 Accetta testified that approximately 60 to 80 percent of London's
work was for American Rita Grossman testified that last year London
billed American for approximately 1-1/2 million dollars and others for a
little over 4 million dollars
12 Local No 235, Lithographers and Photoengravers International Union
(Henry Wurst, Inc), 187 NLRB 490 See the Board's distinction of the
newspaper and other cases at p 491, fn. 4 Cf Local 810, IBT (Sid Harvey,
cerned persons to the labor dispute between the Respon-
dent Union and London, within the meaning of Section
8(b)(4)(B) of the Act. I therefore conclude that by picketing
the premises occupied by American, Parliament, and
World, the Respondent Union did not violate Section
8(b)(4)(B) of the Act.12
Upon the basis of the foregoing findings of fact, and
upon the entire record in this case, I make the following:
CONCLUSIONS OF LAW
1. London, American, Parliament, and World are
employers and/or persons engaged in commerce or in
operations affecting commerce within the meaning of
Section 2(6) and (7) of the Act.
2. The Respondent is a labor organization within the
meaning of Section 2(5) of the Act.
3. Respondent has not engaged in any unfair labor
practices.
Upon the foregoing findings of fact and conclusions of
law, and the entire record, and pursuant to Section 10(c) of
the Act, I hereby issue the following recommended: 13
ORDER
The complaint is dismissed in its entirety.
Inc), 189 NLRB 612; enfd denied 460 F 2d I (C.A. 2, 1972).
13 In the event no exceptions are filed as provided by Sec 102 .46 of the
Rules and Regulations of the National Labor Relations Board , the findings,
conclusions , and recommended Order herein shall, as provided in Sec
102 48 of the Rules and Regulations , be adopted by the Board and become
its findings , conclusions, and Order, and all objections thereto shall be
deemed waived for all purposes.