Graphic Arts Local No. 277Download PDFNational Labor Relations Board - Board DecisionsAug 12, 1975219 N.L.R.B. 1053 (N.L.R.B. 1975) Copy Citation GRAPHIC ARTS LOCAL NO. 277 Graphic Arts International Union (G.A.I.U.) Local No. 277; and Graphic Arts International Union, AFL-CIO and S & M Rotogravure Service, Inc. Case 30-CC-231 August 12, 1975 DECISION AND ORDER BY CHAIRMAN MURPHY AND MEMBERS JENKINS AND PENELLO On November 4, 1974, Administrative Law Judge Alvin Lieberman issued the attached decision in this proceeding. Thereafter, the General Counsel and the Respondent Unions filed exceptions and supporting briefs, and the Intervenor herein, Kable Printing Company, filed a brief in answer to the Respondent's exceptions. Pursuant to the provisions of Section 3(b) of the National Labor Relations Act, as amended, the Na- tional Labor Relations Board has delegated its au- thority in this proceeding to a three-member panel. The Board has considered the record and the at- tached decision in light of the exceptions and briefs, and has decided to affirm the rulings, findings, and conclusions of the Administrative Law Judge, only to the extent consistent herewith.' The Administrative Law Judge concluded, inter alia, that the Respondent Unions violated Section 8(b)(4)(i) and (ii)(B) of the Act by engaging in certain conduct which was directed against S & M Rotogra- vure Service, Inc. In reaching this conclusion, the Administrative Law Judge rejected the Unions' de- fense that such conduct was permissible under the Act because S & M had allied itself with Kable Print- ing Company, thus shedding its neutrality in a labor dispute between Kable and an affiliate of the Re- spondent International. We find merit in the Unions' contention, on the facts and for reasons set forth be- low. Kable Printing Company is a large printing house with facilities at Mount Morris, Illinois, where it prints magazines, catalogs, and related items for pub- lishers, large merchandisers, and other businesses lo- cated throughout the country. Insofar as it is relevant to these proceedings, Kable's customers include Ok- lahoma Tire and Supply Company (OTASCO), a re- tailer of automobile parts and supplies, for whom Kable had agreed, in 1972, to produce sales catalogs, at least four times a year, until January 31, 1975. Kable's operations encompass rotogravure prepa- ' In view of our decision herein , we find it unnecessary to pass upon the Respondents ' motion to reopen the record in this proceeding. 1053 ratory work, printing, and binding. Employees en- gaged in these operations are represented by several unions, including Mount Morris Graphic Arts Inter- national Union Local No. 91-P (G.A.I.U.), an affil- iate of the Respondent International, which repre- sents those employed in the rotogravure preparatory process. The most recent agreement between Kable and Local 91-P expired on March 31, 1974. The failure of the parties thereafter to reach a new agree- ment , and the ensuing strike by employees in the aforementioned unit, on May 10, 1974, brought about the series of events which are here in issue. Anticipating that the strike at Kable would inter- fere with its ability to make the engraving for OTASCO's September 1974 catalog, Kable's sales- man, Max Buell, and OTASCO's catalog coordina- tor, John Redding, discussed alternative means of having the engraving work done. Buell suggested that the work be done by S & M Rotogravure Service, Inc., a rotogravure front-end shop, that is, an enter- prise which performs preparatory work but does no printing. S & M's employees are represented by Lo- cal # 277, one of the Respondents herein. S & M had not theretofore performed any work for OTASCO. On June 19, 1974, following negotiations directly between representatives of OTASCO and S & M, OTASCO sent S & M a purchase order calling for the performance of certain rotogravure preparatory work, up to and including the engraving of cylinders to be furnished by OTASCO, at a price to be negoti- ated, for use in the printing of the September sale catalog. At the same time, OTASCO reached an under- standing with Kable that the latter would deduct from its bill for producing the September catalog the amount which OTASCO would have to pay S & M for the rotogravure preparatory work. According to Redding, however, OTASCO did not decide to have Kable, as opposed to some other printer, complete the necessary work on the September catalog until after the Respondents' alleged unlawful conduct in July. Notwithstanding, on June 21, 1974, Redding wrote Buell at Kable advising him that he, Redding, had made arrangements with S & M "to furnish us rotopositives and rotogravure cylinders, press ready .." and requesting that the necessary blank cylin- ders be forwarded by Kable to S & M for the latter's use in connection with the engraving process. Meanwhile, Mario Mueller, vice president of S & M, having knowledge of the business relationship be- tween Kable and OTASCO, sought to determine from a representative of the Respondents whether or not his portion of the OTASCO job would be consid- ered struck work. Having received a negative answer, S & M placed the OTASCO order into production. 219 NLRB No. 171 1054 DECISIONS OF NATIONAL LABOR RELATIONS BOARD Thereafter, on July 8, Ed Doran , vice president of the Respondent Local , advised Mueller that he could not let S & M continue on the OTASCO job because he considered it struck work . Later that same morn- ing, the Local 's position was confirmed by Bernard MacDonald , the Local's steward on the job, who also advised Mueller that S & M employees were not al- lowed to perform the disputed work , adding that continuation of - such work might lead to estab- lishment of a picket line by Local 91-P. Acceding to this threat, Mueller allowed MacDonald to inform key people to stop working on the OTASCO job. Two days later , on July 10, officials of S & M met with representatives of Local 277 and the Interna- tional . At this meeting, Rudolph Stumpf, president of S & M, expressed the view that the work in question was not struck work because S & M had received the order directly from OTASCO , not Kable . John Gab- bard, the Respondent International's vice president, stated that he did not want members of the Union who are employed by S & M to be aiding and assist- ing Kable which employs other members who are on strike . After this meeting the union officials spoke with S & M employees . On that occasion , Gabbard warned employees against working on the OTASCO job if they wished to avoid picketing by Local 91-P. In fact , no further work was performed at S & M on the OTASCO job. On the above facts, the Administrative Law Judge found that the Respondent Unions engaged in con- duct falling within the ambit of Section 8(b)(4)(B) of the Act . Further , the Administrative Law Judge re- jected the Unions' contention that such conduct was permissible because S & M had allied itself with Ka- ble by performing struck work , as he found that OTASCO, not Kable , chose S & M , negotiated the agreement , and contracted to pay for the work. In his view, the Unions' defense was predicated on nothing beyond the facts that the arrangement pursuant to which S & M performed the disputed work would benefit Kable by enabling it to meet its contractual obligations to OTASCO , and that an understanding existed between OTASCO and Kable to the effect that the latter would credit OTASCO for the amount it paid to S & M. We disagree with that assessment of the record herein and , by applying those principles which have come to be known as the "ally doctrine," reach a different result. This doctrine rests upon the assumption that where an employer attempts to avoid the economic impact of a strike by securing the services of others to do his struck work , that is, work which would otherwise have been done by his striking employees, the striking union has a legitimate interest in prevent- ing those services from being rendered . Thus, in Roy- a! Typewriter,2 a case involving the performance of `,`farmed-out" machine repair work on customer equipment , the court stated: We therefore hold that an employer is not with- in the protection of [Sec . 8(b)(4)(B)] when he knowingly does work which would otherwise be done by the striking employees of the primary employer and where this work is paid for by the primary employer pursuant to an arrangement devised and originated by him to enable him to meet his contractual obligations . The result must be the same whether or not the primary employ- er makes any direct arrangement with the em- ployers providing the services.3 The last sentence of the above-quoted material makes it abundantly clear that , for there to be an alliance , an agreement pursuant to which struck work is performed need not necessarily be negotiated between the struck primary and the secondary whose substitute services are used . Indeed, the arrangement need only have been originated by the primary. Otherwise , alliances could be insulated against legiti- mate union reaction by the simple device of having the primary employer act in the name of his custom- er. Any doubt concerning this construction was aptly resolved by the Trial Examiner in the Picton case.4 Therein he stated: In the absence of a direct or indirect arrange- ment by the struck employer with the customer or secondary employer . . . to have the work per- formed for its account, the secondary employers do not lose the protection afforded a "neutral" under the Act. [Citation omitted , emphasis sup- plied.] 5 Likewise , an alliance may be found notwithstand- ing the fact that the agreed-upon consideration for the performance of substitute services is paid by a party other than the struck employer . It may indeed be tendered by a customer of the struck primary. The touchstone in such cases is whether or not, as stated in Picton, the work was performed pursuant to an arrangement by the struck primary and for his ac- count. Although it is sometimes difficult to determine, in a given case, whether an arrangement is undertaken principally to assist a strike-bound employer or the latter's customer , we must make that assessment 2 N. L. R. B. v. Business Machine and Office Appliance Mechanics Conference Board, Local 459, International Union of Electrical, Radio & Machine Work- ers CIO (Royal Typewriter Co.), 228 F .2d 553 (C.A. 2. 1955). 3Ibid. at 559. 4 United Marine Division of the National Maritime Union , AFL-CIO, Local No 333 (D. M. Picton & Co, Inc.), 131 NLRB 693 (1961) Ibid. at 699. GRAPHIC ARTS LOCAL NO. 277 based on all the relevant evidence, while fully appre- ciating the separate (and sometimes similar) business interests of the enterprises providing substitute serv- ices and the struck employer's customers. In making that assessment in this case, we con- clude that an alliance existed between Kable and S & M and therefore that the Respondent Unions did not violate Section 8(b)(4) of the Act by engaging in the conduct herein alleged as unlawful. At all relevant times Kable was bound by an agreement with OTASCO which called for the production of sales catalogs. This agreement encompassed all phases of the work entailed in the production of these catalogs, including rotogravure preparatory work, printing, binding, and distribution. The strike at Kable affected only those employees involved in the rotogravure process, leaving Kable free to perform the remainder of the work. However, Kable's ability to produce the required catalogs was obviously imperiled by its inability to perform a vital step in the production process. It is equally obvious that by arranging for the performance of the rotogra- vure preparatory work elsewhere and for its integra- tion into the rest of the production process Kable could achieve substantial contract performance. At this juncture, Kable indicated to OTASCO that it would do everything possible to produce the catalog and suggested to OTASCO that S & M perform the work in controversy, although, concededly, there is no evidence that Kable itself dealt directly with S & M. It is noteworthy, in this respect, that although S & M had not theretofore performed any work for OTASCO, evidence is lacking that OTASCO sought assurances concerning the quality of its work. More- over, the purchase order itself, which S & M received from OTASCO and which memorializes the entire agreement between them, is not convincing as evi- dence of an arm's-length transaction, as distin- guished from the production agreement between Ka- ble and OTASCO, which sets forth detailed specifications and overall prices for certain kinds of work as well as specific prices for cylinder changes. The purchase order executed by OTASCO directs S & M: Using publishers furnished roto art, make fin- ished rotogravure cylinders ready for production press for 28 page 2-on sale flyer catalog. Pub- lisher will supply blank cylinders. Detailed in- structions to follow... . pursuant to terms which are "negotiable." Similarly, Kable 's agreement , in these circumstances , to credit OTASCO for any amount paid to S & M for the work it performed underscores the fact that Kable, not OTASCO, is the concerned party with respect to 1055 the performance of the substitute services. In this posture, we are not persuaded that the ar- rangement, ostensibly between S & M and OTASCO, was entered into without regard to the interests of the strike-bound primary. Indeed, we find other- wise, namely, that S & M knowingly performed roto- gravure preparatory work pursuant to an arrange- ment devised and originated by Kable to enable it to meet its contractual obligations to OTASCO. S & M has thus allied itself with Kable in the latter's labor dispute with its employees. Accordingly, we find that the Respondent Unions did not engage in unlawful conduct by taking action against S & M and we shall dismiss the complaint herein in its entirety. ORDER Pursuant to Section 10(c) of the National Labor Relations Act, as amended, the National Labor Re- lations Board hereby orders that the complaint here- in be, and it hereby is, dismissed in its entirety. DECISION STATEMENT OF THE CASE ALVIN LIEBERMAN , Administrative Law Judge: The hear- ing in this proceeding, with all parties represented, was held before me in Milwaukee, Wisconsin, on August 19, 20, and 21, 1974, upon General Counsel's complaint I dated July 19, 1974,2 and Respondent's answer .3 In general the issue litigated was whether Respondents violated Section 8(b)(4)(B) of the National Labor Relations Act, as amend- ed (Act).4 Particularly, the principal questions for decision are as follows: 1. Was the work undertaken by S&M Rotogravure Ser- vice, Inc. (S&M), pursuant to a purchase order from Okla- 1 During the hearing the last sentence of par. 8(a) and the last sentence of par. 8(b) of the complaint were stricken. 2 The complaint was issued pursuant to a charge filed on July 11, 1974, by S&M Rotogravure Service, Inc 3 During the hearing the answer was amended in several respects. Thus, par. 18 was amended to read as follows : "Admit, with regard to par. 9(b), upon information and belief, that Local 91-P and 65-B, G.A.I.U., have been engaged in a labor dispute with Kable Printing Company since May 10, 1974; but deny each and all other allegations of paragraph 9(b) of the complaint." Par. I of the first affirmative defense was amended to read as follows : "Graphic Arts International Union 91 -P is the exclusive bargaining representative of certain engraver employees of Kahle Printing Company, Mount Moms, Illinois; and that Local 65-B, G.A.I.U. is the exclusive bar- gaining representative of certain book binding employees of Kahle Printing Company, Mount Morris, Illinois ." Par. 2 of the first affirmative defense was amended to read as follows: "On or about May 10, 1974, Local 91-P and 65-B, G.A.I.U. commenced a strike against Kahle Printing Company." Finally, during the hearing the answer was amended to admit the allega- tions of pars. 2(b), 3(a), 3(b), and 4(b) of the complaint. Insofar as pertinent Sec. 8(bx4)(B), commonly referred to as the second- Continued 1056 DECISIONS OF NATIONAL LABOR RELATIONS BOARD homa Tire & Supply Co. (OTASCO) struck work? S 2. Assuming a negative answer to the foregoing ques- tion, did Respondents engage in conduct described in Sec- tion 8(bX4Xi) and (ii) of the Act for an object proscribed by subdivision (B) of Section 8(bX4) of the Act? 3. In view of the arbitration provision of the collective- bargaining agreement between S&M and Respondent Graphic Art International Union (G.A.I.U.) Local # 277 (Local), should the process of the National Labor Rela- tions Board (Board) be withheld in the manner set forth in Collyer Insulated Wire, A Gulf and Western Systems Co., 192 NLRB 837 (1971), pending determination by an arbi- trator as to the nature of the work referred to in question 1, above? Upon the entire record,6 upon my observation of the witnesses and their demeanor while testifying , and having taken into account the arguments made and the briefs sub- mitted,7 I make the following: FINDINGS OF FACT 1. JURISDICTION Kable Printing Company (Kable),8 an Illinois corpora- tion, is engaged in Mount Morris , Illinois , in providing en- graving and printing services . During 1973 , a representa- tive period, Kable purchased goods valued at more than $50,000 from vendors located outside the State of Illinois. S&M, a Wisconsin corporation, is engaged at New Ber- lin, Wisconsin, in providing engraving services to employ- ers in the graphic arts and other industries. During 1973, a ary boycott provision of the Act, is as follows: SEC. 8 (b) It shall be an unfair labor practice for a labor organization or its agents- -0 (4Xi) to engage in, or to induce or encourage any individual em- ployed by any person engaged in commerce or in an industry affecting commerce to engage in, a strike or a refusal in the course of his employ- ment to use , manufacture, process, transport , or otherwise handle or work on any goods , articles, materials, or commodities or to perform any services ; or (ii) to threaten , coerce , or restrain any person engaged in commerce or in an industry affecting commerce , where in either case an object thereof is: (B) forcing or requiring any person to cease using , selling , handling, transporting, or otherwise dealing in the products of any other produc- er, processor, or manufacturer, or to cease doing business with any other person . . . Provided That nothing contained in this clause (B) shall be construed to make unlawful, where not otherwise unlawful, any primary strike or primary picketing, S Except when quoting or summarizing testimony , the term "struck work" will be used in this Decision to refer to work of the nature described in Truck Drivers Union Local No. 413, Teamsters (Patton Warehouse, Inc.), 140 NLRB 1474, 1483 ( 1963), text accompanying In. 12 enfd . in this respect 334 F.2d 539 (C.A.D.C., 1964), cert . denied 379 U.S. 916 (1964). 6 Certain errors in the transcript are hereby noted and corrected r Although all the arguments of the parties and the authorities cited by them, whether appearing in their briefs or made orally at the hearing, may not be discussed in this Decision , each has been carefully weighed and considered. s Kahle Printing Company was permitted to intervene in this proceeding to the extent of its interest. representative period, S&M sold goods valued at more than $50,000 to customers located outside the State of Wis- consin. OTASCO, a Delaware corporation, is engaged at Tulsa, Oklahoma, in the retail sale of automobile parts and sup- plies. During 1973, a representative period, OTASCO's gross sales exceeded $500,000 and it purchased merchan- dise exceeding $50,000 in value from vendors located out- side the State of Oklahoma. Accordingly, I find that Kable, S&M, and OTASCO are employers and persons engaged in commerce within the meaning of Sections 2(6) and 8(b)(4) of the Act. Sheet Met- al Workers International Association, Local Union No. 299, AFL-CIO. (S. M. Kisner), 131 NLRB 1196, '1198-99 (1961); International Longshoremen & Warehouseman's Union, and Local No. 13, (Catalina Island Sightseeing Lines), 124 NLRB 813, 815 (1959); Carolina Supplies and Cement Co., 122 NLRB 88, 89 (1958); Siemons Mailing Ser- vice, 122 NLRB 81, 85 (1958); International Brotherhood of Teamsters, Chauffeurs, Warehousemen and Helpers of Amer- ica, General Drivers and Helpers Local No. 554 and Chauf- feurs, Teamsters and Helpers Local No. 608, AFL (McAllis- ter Transfer, Inc.), 110 NLRB 1769, 1771-72 (1954). It. THE LABOR ORGANIZATIONS INVOLVED Respondent Graphic Arts International Union (Interna- tional) and Respondent Local, an affiliate of Respondent International , are labor organizations within the meaning of Section 2(5) of the Act. Also affiliated with Respondent International are Graphic Arts International Union, Local 91-P (Local 91-P), and Graphic Arts International Union, Local 65-B (Local 65-B). III. INTRODUCTION Briefly, this case is concerned with Respondents' efforts to prevent S&M from performing engraving work for OTASCO. The complaint alleges, and the answer denies, that to achieve this end Respondents violated Section 8(bX4)(B) of the Act. As will be seen, the central issue in this case is the nature of the work involved. Respondents argue that it was struck work. The General Counsel, S&M, and Kable contend that it was not.9 The significance of these conflicting positions is that if the work in question was struck work, the measures taken by Respondents to prevent S&M from doing it were privileged. If it was not struck work, the course of action followed by Respondents contravened the Act. Respondents further assert that inasmuch as the collec- tive-bargaining contract between Respondent Local and S&M deals with the subject of struck work and also pro- vides for the arbitration of disagreements as to the inter- pretation of contract provisions, the Board should not issue a decision in this matter but should defer to the arbitral process. 9 The contentions of the General Counsel , S&M, and Kable are generally similar . Accordingly , unless otherwise noted , they will be referred to herein- after as the General Counsel 's contentions. GRAPHIC ARTS LOCAL NO. 277 IV. PRELIMINARY FINDINGS AND CONCLUSIONS 10 A. The Strike at Kable Kable, as already noted , is engaged in the engraving and printing business . On May 10, 1974 ,11 Local 91 -P, which represents the engravers employed by Kable , and Local 65-B, which represents Kable's bookbinders , struck Ka- ble.12 Local 91 -P's strike against Kable was still in progress at the time of the trial. As will be set forth in greater detail below , at the strike's outbreak Kable was under contract to produce sale cata- logs for OTASCO. Because of Kable's inability by reason of the strike to make the engravings required in manufac- turing the catalogs S&M was engaged to do, and began doing, this work.13 B. The Collective -Bargaining Contract Between S&M and Respondent Local S&M and Respondent Local , which represents S&M's employees , are parties to a collective-bargaining contract.14 The provisions of their contract , material to this proceed- ing, follow. SECTION 24 - STRUCK WORK 24.1 The employer agrees that it will not render pro- duction assistance to any employer, any of whose plants is struck by any local of the GAIU or by the International , or where members of any such local or the International are locked out, such strike or lockout having been in continuous existence for five(5) work- ing days, by requiring the employees covered by this agreement to handle any work farmed out directly or indirectly by such employer, other than work where the employer herein customarily has performed for the employer involved in such strike or lockout. 24.2 The Union reserves the right to require the em- ployer not to render production assistance to any em- ployer, any of whose plants is on strike or if any of its employees are locked out, by requiring the employees covered by this agreement to handle any work nor- mally performed by such employees on strike or locked out, farmed out directly or indirectly by such employer other than work which the employer herein customarily has performed for the employer involved in such strike or lockout. 10 The purpose of these findings is to furnish a frame of reference within which to consider the facts relating to Respondents ' alleged unfair labor practices and to the conclusions to which they may give rise . To the extent that the contentions of the parties relate specifically to the findings made here they will be treated here , although they, as well as the findings, may again be considered in other contexts. 11 All dates hereinafter mentioned without stating a year fall within 1974. 12 It will be recalled that Local 91-P and Local 65-B, like Respondent Local, are affiliates of Respondent International. 13 The engravings to be made by S&M pursuant to this arrangement is claimed by Respondents to have been struck work. 14 G.C. Exh. 2. SECTION 25 - CHAIN SHOP 1057 25.1 The employer agrees that his employees shall not be required to handle any work in the plant covered by this agreement if, in any part of the United States or Canada, any local of the Graphic Arts Internation- al Union or the International is on strike of the mem- bers of such local or International are locked out in any other plant which is wholly owned and controlled by the employer or otherwise so owned, controlled or operated so as to constitute the employer, and any other entity that may be involved, a single employer within the meaning of the National Labor Relations Act, as amended. Such strike or lockout must have been in continuous existence for five (5) working days. SECTION 26 - RIGHT TO TERMINATE 26.1 In the event the employer requests any employee to handle any work described in the struck work and chain shop clauses, the Union, in addition to the other rights and remedies the employees and the Union have under this agreement or the law, shall have the right in its discretion to terminate the agreement forth- with by giving written notice to the employer. SECTION 27 - INDIVIDUAL RIGHT OF EMPLOYEE 27.1 The employer agrees that it will not discharge, discipline or discriminate against any employee be- cause such employee refuses to handle any rotogra- vure production work of the type described in the struck work and chain shop clauses. s s s D 34.5 In the event of disagreement as to the interpreta- tion or application of any provisions of this agreement or any charge by either party of any violation of the terms or provisions of this agreement, the matter shall be taken up in the following manner: (a) The shop delegate and the management of the Company will seek an amicable adjustment of the disagreement. (b) In the event of failure to adjust the matter, the issue shall be taken up by the representative of the local Union and the management of the Company. (c) Should no settlement result within a reasonable time as provided in (b) above, then either party may submit such controversy in writing to a joint com- mittee consisting of three (3) representatives from the Union and three (3) representatives from the employer. Any person involved in the question at issue shall be heard. (d) If the joint committee is not able to arrive at a satisfactory settlement of such dispute within a rea- sonable time, either party may request the matter be submitted to an impartial arbitrator, to be selected by the joint committe.... the decision of the arbi- trator shall be final and binding on all parties and the expense of the arbitrator shall be borne equally 1058 DECISIONS OF NATIONAL LABOR RELATIONS BOARD by the Union on the one hand and the employer on the other hand. s 34.6 The Union's right to strike or the employee's re- fusal to work under the recognition , jurisdiction, struck work and chain shop clauses hereof , are not subject to arbitration. C. Deferral to Arbitration On July 18, 1974, following the filing of the charge in this case by S&M , Respondent Local notified S&M by letter that by undertaking to make , and by requesting employees to work upon, engravings required for the OTASCO sale catalogs , S&M was , in its opinion , violating those sections of its contract with S&M dealing with struck work , including section 24.1. In the same letter Respondent Local requested an immediate meeting with S&M or, in the alternative, that the matter be submitted for resolution to a joint committee pursuant to the contract's arbitration pro- visions. Having received no answer from S&M , Respondent Lo- cal, on July 26, again wrote to S&M. In this letter Respon- dent Local reiterated its view that S&M was violating sec- tion 24.1 of the contract and informed S&M that it was proceeding to arbitration in the manner set forth in the contract. On July 30 S&M responded to the foregoing letter. In its response S&M took the position that the question of whether its work on the OTASCO sale catalogs was struck work , which S&M steadfastly denies , was not arbitrable under the contract . 15 S&M further stated that the General Counsel having issued the instant complaint , 16 it intended to pursue its rights before the Board. Respondents contend that the dispute between Respon- dent Local and S&M concerning the nature of the work involved constitutes a disagreement as to the interpretation or application of section 24.1, the struck work section of the contract between Respondent Local and S&M, resolva- ble under the contract's arbitration provisions. According- ly, Respondents assert in their third affirmative defense to the complaint that the "unfair labor practice issues [raised by the charge] and the arbitration issue both turn on the meaning or application of the disputed contract provisions of Section 24.1 and pursuant to the policy announced in Collyer Insulated Wire, 192 NLRB 837 (1971), said charge should be deferred to the grievance and arbitration proce- dure of the existing agreement." The Board's policy of staying its hand pending arbitra- tion may be invoked when the contract between the con- tending parties requires that the dispute in question be sub- mitted to binding arbitration. Exemplifying the first above-mentioned proposition is Collyer, itself, 17 where the Board , in withholding its proc- 15 In this connection S&M made reference to sect. 34.6 of the contract, which, in pertinent part, states : "The Union's right to stoke ... under the . Struck Work and Chain Shop clause hereof, are not subject to arbitra- tion." 16 As noted, the complaint issued on July 19 esses, noted that "the contract [there under consideration] unquestionably obligates each party to submit to arbitra- tion any dispute arising under the contract and binds both parties to the result thereof." Illustrating the second is the Board's statement in Joseph T. Ryerson & Sons, Inc., 199 NLRB 461, (1972), that in the "series of decisions adum- brating the Board's policy to defer to a contractual forum where a dispute might properly be resolved either by us or under contract procedures, we have required as a condition of such abstention that the dispute presented in our pro- ceeding be cognizable in the contractual forum." As set forth, Respondents urge that a decision on S&M's "charge . . . be deferred" pending arbitration of the dis- pute between respondent Local and S&M as to the "mean- ing or application of the disputed . . . provisions of Sec- tion 24.1," the struck work section of the contract between Respondent Local and S&M. But, as S&M pointed out in its July 30 letter to Respondent Local, and as is the case, section 34.6 of the contract expressly provides that disputes bearing upon the struck work section are "not subject to arbitration." This being the situation, there is absent from the contract between Respondent Local and S&M the un- derlying basis for deferral to arbitration; namely, as Col- lyer makes clear, an unquestionable obligation upon the parties to submit struck work disputes to arbitration.18 Accordingly, I conclude that deferral to arbitration in this case is not warranted. D. The Nature of the Work Involved 19 In 1972 Kable and OTASCO entered into a contract pursuant to which Kahle was to manufacture sale catalogs for OTASCO at least four times a year until January 31, 1975. The contract further provided that OTASCO was to pay a fixed price to Kable covering all work to be done by Kable, including engraving work. The catalogs with which this case is concerned were to have been distributed in September 1974. Kable and Local 91-P, which represents Kable's engrav- ers, were parties to a collective agreement whose termina- tion date was March 31, 1974. Anticipating that Local 91-P would strike Kable upon the expiration of their contract 20 and that this strike would substantially reduce Kable's ability to make the engravings required for the OTASCO 17 192 NLRB 837, 842 (1971). 18 In view of the contract 's express exemption from its arbitration provi- sions of disputes arising under its struck work section, it cannot be said that such disputes are even arguably arbitrable, a factor which in Southwestern Bell Telephone Company, 198 NLRB 569, (1972), moved the Board to defer arbitration. 19 Respondents argue that the engraving work S&M undertook to do, and did, for OTASCO was struck work. The other parties to this proceeding take a contrary view . As noted in the introductory portion of this Decision, this is the central issue in this case If the work involved was struck work, as Respondents contend , the steps they took to prevent S&M from doing it, to be described below , were privileged, and not , as the complaint alleges, viola- tive of Section 8(b)(4XB ) of the Act. Truck Drivers Union Local No 413, Teamsters (Patton Warehouse, Inc.), 140 NLRB 1474, 1483 ( 1963), enfd. in this respect , 334 F.2d 539 (C.A.D.C., 1964), cert . denied 379 U.S. 916 (1964); Shopmen's Local Union No. 501 of the International Association of Bridge, Structural and Ornamental Iron Workers, AFL-CIO (Oliver Whyte Company, Inc.), 120 NLRB 856, 862 (1958). 20 As found above , the strike actually occurred on May 10 and was still in progress at the time of the trial. GRAPHIC ARTS LOCAL NO. 277 1059 September 1974 catalogs, John Redding, OTASCO's cata- log coordinator , and Max Buell, Kable 's salesman, dis- cussed alternate means of having the engraving work done. During their discussions , which took place early in 1974, Buell suggested that the work be done by S&M. On June 19 , following negotiations between OTASCO and S&M concerning the latter's doing the work, OTASCO sent S&M a purchase order for the engravings needed for OTASCO's September 1974 catalogs. S&M knew when it received and accepted this order that the work it called for would have been done by Kable had not Kable's engravers been on strike. When OTASCO issued the purchase order to S&M it expected to be billed by, and to pay, S&M for the work done by it. In this connection , OTASCO had "an under- standing ," as Redding , OTASCO's catalog coordinator, testified, "that [OTASCO] would be credited on the Kable bill with the amount [it] paid S&M." As it happened , because of conduct engaged in by Re- spondents, to be set forth in detail below, S&M stopped working on the OTASCO order after doing only about a quarter of the work. Not having completed the job, S&M sent no bill to OTASCO, nor did it charge OTASCO for the portion which had been done. Respondents make two arguments in support of their position that the work involved was struck work. The first is that it would have benefited Kable, the struck employer, by, as Respondents state on brief, "enabling Kable to meet its contractual obligations" to OTASCO. Respondents' second argument is based on the "understanding " between Kable and OTASCO that Kable would credit OTASCO for the money it would have paid S&M for doing the work. However, more must be shown before it can be said that S&M did struck work. When a business enterprise whose supplier of goods or services has been struck arranges to obtain such goods or services from another supplier the substitute supplier, in agreeing to such an arrangement, does not perform struck work or ally itself to the struck supplier. United Marine Division, Local 333, International Longshoremen 's Associa- tion (New York Shipping Association), 107 NLRB 686, 687, 708 (1954). Nor, in such a case, is the substitute supplier deprived of the protection afforded neutral employers by Section 8(b)(4)(B) of the Act, notwithstanding that it knows that it is doing, what, but for the strike, would have been done by the struck supplier. D. M. Picton & Co., Inc., 131 NLRB 693, 694, 699 (1961). The situation is different, however, and the substitute supplier is performing struck work, for which reason the substitute supplier "is not within the protection of Section 8(b)(4)(A) [now 8(b)(4)(B)] when [it] knowingly does work which would otherwise be done by the striking employees of the primary [struck] employer and where this work is paid for by the primary employer pursuant to an arrange- ment devised and originated by him to meet his contractu- al obligations ." N.L.R.B. v. Business Machine and Office Appliance Mechanics Conference Board, Local 459, IBEW (Royal Typewriter Company), 228 F.2d 553, 559 (C.A.2), cert. denied 351 U.S. 962. In Truck Drivers Union Local No. 413, Teamsters (Patton Warehouse, Inc.), 140 NLRB 1474 1483 (1963), enfd. in this respect 334 F.2d 539 (C.A.D.C., 1964), cert. denied 379 U.S. 916, the Board stressed the necessity for the presence of an "arrangement" between the struck employer and its substitute as a prerequisite for holding that the substitute was doing struck work, thereby becoming an ally of the struck employer. Thus, the Board stated: [A]n essential requirement of the ally doctrine [is] that the work must be transferred to a secondary employer through an arrangement with the primary employer .. [In] the absence of any arrangement between the struck and the secondary employers, the work pre- viously performed by the struck employer may not be interfered with even though the secondary employees are performing a service which, but for the dispute, would customarily be performed by the employees of the struck employer. The cases cited in Respondent's brief 21 in which the Board held that struck work was involved and, for this reason, exonerated the unions which hindered its perfor- mance are not to the contrary. In each the struck employer arranged with another employer for the latter to do work which the struck employer could not do because of a strike by its employees. Accordingly, in determining whether the engraving S&M agreed to make for OTASCO was, as Respondents con- tend, struck work the circumstances pursuant to which S&M undertook to do the work must be examined. Consid- eration must also be given to the question of who was to pay for the work. The first item to be taken into account, in this regard, is that Kable, OTASCO's supplier of engravings, was struck. This being the case, OTASCO sought another supplier to furnish the needed engravings; and it, not Kable, chose S&M. Having selected S&M, OTASCO negotiated with it for the production of the engravings, following which it ordered them from S&M. Although S&M knew that but for the strike by Kable's engravers Kable would have done the work, the arrange- ment whereby S&M was to produce the engravings was made with S&M by OTASCO and not, even indirectly, by Kable.22 Finally, OTASCO, not Kable, intended to pay for the engravings upon receiving a bill from S&M. Accordingly, applying the teaching of Royal Typewriter and Patton Warehouse, I conclude that the engraving work undertaken, and that portion which was done, by S&M was not struck work and further conclude that S&M did not, by reason of the foregoing, ally itself with Kable in its dispute with Local 91-P, nor did S&M forfeit its status as a 21 Shopmen's Local Union # 501 (Oliver Whyte Company, Inc.). 120 NLRB 856 (1958); International Die Sinkers Lodge No. 410 (General Metals Corpo- ration), 120 NLRB 1227 (1958); General Teamsters Local No. 324 Truck Operators League of Oregon, 122 NLRB 25 (1958); General Drivers and Dairy Employees Local Union 563 (Fox Valley Material Suppliers Association, Inc.), 176 NLRB 386 ( 1969); Local 28, International Organization of Masters. Mates and Pilots, AFL-CIO (Ingram Barge Company) 136 NLRB 1175 (1962). enfd . 321 F.2d 376 (C.A.D.C) 221 do not construe the mere suggestion by Kahle 's salesman to OTASCO's catalog coordinator that the work be done by S&M to be the type of "arrangement" spoken of in Royal Typewriter and Patton Warehouse. See, in this connection , D M. Picton & Co, Inc, 131 NLRB 693, 694, 697 (1961). 1060 DECISIONS OF NATIONAL LABOR RELATIONS BOARD neutral in that dispute. I am not persuaded to the contrary by Respondents' ar- gument that the work involved was struck work because OTASCO and Kable were parties to an "understanding" whereby OTASCO would be "credit[ed]" by Kable for the money OTASCO would have paid S&M for making the engravings for OTASCO's September 1974 catalogs? A similar situation was present in Laborers International Union of North America, Local 859 ( Thomas S. Byrne, Inc.), 180 NLRB 502, 503-505 (1969). Nevertheless, the Board concluded that the work involved was not struck work 24 I also reject, as proving too much, Respondents' argu- ment that the work done by S&M was struck work be- cause, had it been completed , it would have benefited Ka- ble by enabling it to fulfill its contract with OTASCO. As a general proposition, I suppose that any work done by a substitute which, but for a strike, would have been done by the struck employer , directly or indirectly , benefits the struck employer. Notwithstanding this, as has been shown, such work is not struck work unless it is done pursuant to an arrangement with the struck employer. I have found that this is not the case here. V. THE ALLEGED UNFAIR LABOR PRACTICES A. Facts Concerning Respondents' Alleged Violations of Section 8(b)(4)(i) and (ii)(B) of the Act On July 1, 1974, before S&M began work on the engrav- ings ordered by OTASCO, Mario Mueller, S&M's vice president, asked Bernard MacDonald, Respondent Local's steward at S&M, whether the OTASCO "job is considered struck work." As Mueller explained , he put this question to MacDonald because, knowing that Kable had produced sale catalogs for OTASCO in the past and that Kable's engravers , represented by Local 91-P were on strike, he "didn't want [the] complication ... of having a picket line on S&M." MacDonald, after checking with Respondent Local, in- formed Mueller that "its okay to go ahead . . . with this job." Accordingly, S&M placed the OTASCO order into production. Work on the OTASCO engravings proceeded without incident until July 8. At about 10 a.m. on that day, follow- ing an apparent change of position by Respondent Local concerning the nature of the work, Ed Doran, vice presi- dent of Respondent Local, notified Mueller that he "could not let [S&M] continue on [the OTASCO] account [be- cause] he considered this OTASCO [job] struck work." An hour or so later, MacDonald, Respondent Local's steward , told Mueller that "the union considered [the OTASCO engravings to be] struck work and we [, S&M's 23 It will be remembered , in this connection , that the contract between Kahle and OTASCO provided that OTASCO was to pay Kahle a fixed puce for its work, including engraving work , in producing the catalogs. u The Board's conclusion was rejected by the Court of Appeals for the District of Columbia Circuit in Laborers International Union of North Ameri- ca Local 859, AFL-CIO v. N.L.R.B., 446 F.2d 1319 ( 1971). With due defer- ence to the court of appeals , however, I am bound by the Board's decision. Prudential Insurance Company of America, 119 NLRB 768, 773 (1957), re- versed in other respects 361 U.S. 477 (1960). employees ,] are not allowed to work on this job." Continu- ing his conversation with Mueller , MacDonald stated that "if we were to work on this [OTASCO] account . . . it is very well possible that [Local 91-P] would set up a picket line at S&M." Capitulating to this threat , Mueller "authorized Mac- Donald to inform the key people to stop work on OTASCO." Although work on the OTASCO engravings was discontinued at Mueller's direction because he feared that otherwise S&M would be picketed, that portion of the job which had been done was still in S&M 's shop at the time of the hearing and OTASCO's entire order could have been completed whenever S&M considered it feasible to do so25 On July 10 officials of Respondent Local and Respon- dent International , including Jack Jaeger , president of Re- spondent Local, and John Gabbard, Respondent International's vice president , met with Mueller and Ru- dolph Stumpf, president of S&M , Stumpf protested the designation of the OTASCO work as struck work. Stumpf pointed out in this connection that he did not think it was struck work because S&M had received the order for the engravings from OTASCO, not Kable. To this Gabbard replied , as he testified, that "we [do] not want our members [employed by S&M] to be aiding and assisting [Kable] where we have other members that are on strike." After this meeting with Mueller and Stumpf, Respondent 's officials met with S&M's employees. Gab- bard and Jaeger urged the employees to do no further work on the OTASCO order . As an employee in attendance at this meeting testified in this regard , Gabbard informed the employees that "if [they] were to go ahead and do the work, [they] would undermine the strike action [at Kable];" and Jaeger told them that "if [they] would go ahead and work [on the OTASCO engravings they] would naturally have a picket line from [Local 91-P] coming and standing at [S&M's] door." B. Contentions and Concluding Findings Concerning Respondents' Alleged Violations of Section 8(b)(4)(i) and (ii)(B) of the Act. As noted earlier, if the OTASCO work undertaken by S&M had been struck work, Respondents would have been privileged in availing themselves of secondary measures to prevent its being done. However, as I have found that it was not struck work, it must now be determined whether Respondents' conduct was violative of Section 8(b)(4)(B) of the Act, as the General Counsel contends. A violation of Section 8(b)(4XB), the Act's secondary boycott provision, consists of two elements. These are a purpose commonly known as a "cease doing business" ob- ject and proscribed conduct. There can be no doubt that it was Respondents' aim to cause S&M and OTASCO to cease doing business with each other in support of Local 91-P's dispute with Kable, to which both S&M and OTASCO were neutral? Nor do 25 The foregoing findings are based upon, and the quotations appearing in the text are taken from , credited and uncontroverted testimony given by Mueller. m "The gravamen of a secondary boycott is that its sanctions bear, not upon the employer [,here Kahle,] who alone is party to the dispute, but upon GRAPHIC ARTS LOCAL NO. 277 Respondents argue to the contrary . Accordingly, I find that the "object" requirement of Section 8(b)(4)(B) of the Act has been satisfied. The conduct proscribed by Section 8(b)(4) of the Act, insofar as pertinent, is "to induce or encourage any indi- vidual employed by any person . . . to engage in . . . a refusal in the course of his employment . . . to perform any services ; 27 or . . . to threaten , coerce , or restrain any person ...." 28 These requirements , too, I find , have been satisfied. Concerning the conduct proscribed by Section 8(b)(4)(i) of the Act, the evidence clearly shows that on July 10, 1974, John Gabbard , vice president of Respondent Inter- national , informed S&M's employees that if they were to work on the OTASCO order they "would undermine" Lo- cal 91-P's strike against Kable . In like vein Jack Jaeger, president of Respondent Local , told the employees that their working on the OTASCO engravings would result in the establishment of a "picket line . . . at [S&M's] door" by Local 91-P. These statements , I find , constitute induce- ment and encouragement , within the meaning of Section 8(b)(4)(i), to individuals employed by S&M to refrain, in the course of their employment, from performing services for S&M in connection with the OTASCO engravings 29 I further find that the coercion spoken of in Section 8(b)(4)(ii) of the Act is also present . It appears in the state- ments made by Ed Doran and Bernard MacDonald, re- spectively Respondent Local's vice president and steward, and by Gabbard. Thus, on July 8 Doran told Mario Mueller , S&M's vice president , that he "could not let [S&M ] continue on [the OTASCO] account." This was quickly followed by Mac- Donald 's notification to Mueller that S&M's employees ,.are not allowed to work on [the OTASCO] job." Finally, on July 10, Gabbard said to Rudolph Stumpf, S&M's pres- ident, that "we do not want our members [in S&M's em- ploy] to be aiding and assisting" Kable in its dispute with Local 91-P. Statements such as these , whose effect is to inform an employer that its employees would not be permitted by a union to perform work disfavored by the union have a coercive effect within the contemplation of Section 8(b)(4)(ii) of the Act . See, in this connection, Newspaper and Mail Deliverers Union of New York and Vicinity (Bergen Evening Record Corporation), 175 NLRB 386, 388 (1969), and Highway Truckdrivers and Helpers , Local No. 107 (Riss & Company, Inc.), 130 NLRB 943, 947 ( 1961), enfd. 300 F.2d 317 (C.A.3). Respondents argue that the foregoing declarations were persuasive, rather than coercive .30 However, even if, ar- ... third part[ies] [, here S&M and OTASCO ,] who [have) no concern in it." International Brotherhood of Electrical Workers, Local 501 (Samuel Lan- ge v. N. L. R. B ., 181 F.2d 34 , 37, (C.A.2 1950), affd . 341 U.S. 694 (1951). Sec. 8 (b)(4)(i). 28 Sec . 8(b)(4)(ii). 29 "The words 'induce or encourage ' are broad enough to include in them every form of influence and persuasion ." International Brotherhood of Elec- trical Workers, Local 501 (Samuel Langer) v. N.L R. B., 341 U .S. 694, 701- 702 (1951). 70 On brief Respondents state , regarding this, that "unions may persuade ... an employer to stop handling a product or processing goods as opposed to threatening , coercing or restraining the employer." 1061 guendo, the statements standing alone are deemed to lack coercive tendencies, one, that made by MacDonald, re- spondent Local's steward, was coupled with a warning concerning the possibility of picketing, itself a threat within the meaning of Section 8(b)(4)(ii) of the Act," thereby im- parting a coercive effect to his other remark, if not also to those of like import made by Doran and Gabbard, vice presidents respectively of Respondent Local and Respon- dent International. Cf. Luby Leasing, Inc., 198 NLRB 951, enfd. 486 F.2d 1395 (C.A.2, 1973); and Federal Stainless Sink, Div. of Unarco Industries, Inc., 197 NLRB 489, 495 (1972). Adverting to the absence of evidence of refusals by S&M's employees to work on the OTASCO engravings as a consequence of Respondents inducement and pointing to the fact that S&M, itself, stopped the work, Respondents further argue that there has been no violation by them of Section 8(b)(4)(B) of the Act. Concerning this, Respon- dents state in their brief that they "cannot be found to have induced . . . employees to action if no action is taken." That proof is lacking to show that S&M's employees re- fused to work on the OTASCO engravings, is, indeed, true. However, the evidence clearly shows that Respondents, in fact, induced them to refrain from working on the OTASCO order. This inducement could have been effec- tive if S&M, despite its earlier capitulation to the unlawful picketing threat, ordered a resumption of work on the OTASCO goods, as it had a right to do and could have done. The immediate ineffectiveness of Respondents' in- ducement is, therefore, immaterial. Furthermore, the con- cept that inducement must be effective to fall within the ambit of Section 8(b)(4) of the Act was long ago rejected by the Board. Associated Musicians of Greater New York, Local 802 (Gotham Broadcasting Corporation), 110 NLRB 2166 2168 (1954), enfd. 226 F.2d 900 (C.A.2), cert. denied 351 U.S. 962. Accordingly, I conclude that each Respondent, indepen- dently, violated Section 8(b)(4)(i) and (ii)(B) of the Act by inducing individuals employed by S&M to refrain from working on engravings ordered from S&M by OTASCO and by threatening and coercing S&M in order, in both cases, to cause S&M and OTASCO to cease doing business with each other.32 VI. THE EFFECT OF RESPONDENTS ' UNFAIR LABOR PRACTICES UPON COMMERCE Respondents' unfair labor practices occurring in connec- tion with the operations of Kable, S&M and OTASCO set forth in section I, above , have a close, intimate, and sub- stantial relationship to trade , traffic , and commerce among the several States and tend to lead to labor disputes bur- 31 Untied Brotherhood of Carpenters and Joiners of America, AFL-CIO (American Modulars Corporation), 203 NLRB 1112 (1973). 32 The complaint alleges that Respondents were parties to "a common and joint venture in furtherance of the labor dispute" between Local 91-P and Kable . As I have concluded that each Respondent has independently violated Sec 8(b)(4)(B), to remedy which an applopria(e order will be is- sued, the joint venture allegations of the complaint need not be passed upon . General Teamster, Warehouse and Dairy Employees Local 126 (Ready Mixed Concrete, Inc), 200 NLRB 253 (1972). 1062 DECISIONS OF NATIONAL LABOR RELATIONS BOARD dening and obstructing commerce and the free flow of commerce. VII. THE REMEDY Having found that Respondents have engaged in unfair labor practices within the meaning of Section 8(b)(4Xi) and (iiXB) of the Act, my Order will require them to cease and desist therefrom and to take such affirmative action as will effectuate the purpose of the Act. Upon the basis of the foregoing findings of fact and upon the entire record , I make the following: CONCLUSIONS OF LAW 1. Kable is engaged in commerce within the meaning of Section 2(6) of the Act. 2. S&M and OTASCO are persons engaged in com- merce within the meaning of Section 8(bX4) of the Act. 3. Respondents are labor organizations within the meaning of Section 2(5) of the Act. 4. The work S&M undertook to do , and did, pursuant to the purchase order issued to it by OTASCO was not struck work. 5. By inducing and encouraging individuals employed by S&M to refuse in the course of their employment to perform services , an object thereof being to force or require S&M and OTASCO to cease doing business with each other, Respondents have engaged , and are engaging, in un- fair labor practices within the meaning of Section 8(b)(4Xi)(B) of the Act. 6. By threatening and coercing S&M, an object thereof being to force or require S&M and OTASCO to cease doing business with each other , Respondents have en- gaged , and are engaging , in unfair labor practices within the meaning of Section 8(b)(4)(ii )(B) of the Act. 7. The unfair labor practices engaged in by Respon- dents, as set forth in Conclusions of Law 5 and 6, above, affect commerce within the meaning of Section 2(6) and (7) of the Act. [Recommended Order omitted from publication.] Copy with citationCopy as parenthetical citation