H & H Manufacturing Co., Inc.Download PDFNational Labor Relations Board - Board DecisionsDec 30, 194987 N.L.R.B. 1373 (N.L.R.B. 1949) Copy Citation In the Matter of H & H MANUFACTURING COMPANY, INC. and AMALGAMATED CLOTHING WORKERS OF AMERICA, CIO Case No. 10-C-2259.-Decided December 30, 1949 DECISION AND ORDER On June 20, 1949, Trial Examiner Sidney Lindner issued his Inter- mediate Report in the above-entitled proceeding, finding that the Respondent had engaged in and was engaging in certain unfair labor practices 1 and recommending that it cease and desist therefrom and take certain affirmative action, as set forth in the copy of the Inter- mediate Report, attached hereto. The Trial Examiner also found that the Respondent had not engaged in certain other unfair labor prac- tices, and recommended dismissal of those allegations of the complaint. Thereafter, both the Resopndent and the Union filed exceptions to the Intermediate Report and supporting briefs. The Respondent's request for oral argument is hereby denied, inasmuch as the record and briefs, in our opinion, adequately present the issues and the posi- tions of the parties. Pursuant to the provisions of Section 3 (b) of the National Labor Relations Act, the National Labor Relations Board has delegated its powers in connection with this proceeding to a three-member panel [Members Houston, Reynolds, and Murdock]. The Board has reviewed the rulings of the Trial Examiner at the hearing and finds no prejudicial error was committed. The rulings are hereby affirmed 2 The Board has considered the Intermediate 'The provisions of Section 8 (1) and ( 3) of the National Labor Relations Act, which the Trial Examiner herein found were violated , are continued in Section 8 (a) (1) and & ( a) (3) of the Act, as amended by the Labor Management Relations Act, 1947. 2 The 'Respondent contends that the complaint should be dismissed because the Union was not in compliance with Section 9 (f), (g), and ( h) of the Act at the time the original and amended charges were filed . We find no merit in the Respondent's con- tention as this section of the Act requires compliance when the complaint is issued and) we are administratively advised that the Union was in compliance at that time. See Southern Fruit Distributors, Inc., 80 NLRB 1283. The Respondent apparently further contends that the complaint should be dismissed on the ground that it was based upon alleged unfair labor practices which occurred more than 6 months prior to the date upon 87 NLRB No. 148. 1373; 1374 DECISIONS OF NATIONAL LABOR RELATIONS BOARD Report, the exceptions and briefs, and the entire record in this case, and hereby adopts the findings, conclusions ,3 and recommendations of the Trial Examiner, insofar as they are consistent with this Decision and Order 4 1. In its exceptions, the Respondent contends that the Trial Ex- aminer was biased and prejudiced in his conduct of the proceeding. It asserts that he made arbitrary rulings unfavorable to the Respond- ent, acted as a prosecutor instead of as a presiding judicial officer, and prevented the Respondent from making a full record. We have care- fully scrutinized the record and find that it does not sustain these charges. In our opinion the Trial Examiner conducted the hearing in this case with fairness and impartiality and there is no basis for any finding of bias or prejudice on his part against the Respondent. 2. We agree with the Trial Examiner that the Respondent inter- fered with, restrained, and coerced its employees in the exercise of .the rights guaranteed in Section 7 of the Act and thus violated Section 8 (1) of the National Labor Relations Act and Section 8 (a) (1) of the Act,5 as amended, by the following acts and conduct : which the charges ('ere filed. The Board has heretofore ruled that Section 10 (b) of the amended Act imposes no limitation upon the issuance of complaints in any case in which the charges were filed and served within 6 months after August 22, 1947, the .effective date of the amendments to the Act . Itasca Cotton Manufacturing Company, , 79 NLRB 1442 . The charges in the instant case were timely filed and served. 3 The Intermediate Report contains certain misstatements of fact and inadvertences, ;pone of which affects the Trial Examiner's ultimate conclusions , or our concurrence therein. Accordingly, we note the following corrections: (1) The Trial Examiner states that of 34 employees originally laid off , 11 were nonunion . The record and exhibits reveal that 36 employees were laid off and 13 were nonunion ; ( 2) After indicating that 4 of 11 nonunion employees returned to work for Patat, the Trial Examiner states that of 7 remaining nonunion employees 6 were reinstated . However, in setting forth the names of the 6. reinstated employees , he lists 7 people. The name of Lillian Davis was inad- vertently included by the Trial Examiner , as she did not return to work for the Respondent after May-21 . Moreover , the records and exhibits disclose that . there were 9 remaining nonunion employees , when 4 returned to Patat , and 7 of these 9 were reinstated. In addition to the 6 correctly listed by the Trial Examiner the seventh was Mrs. B. F . McGee ; (3) The Trial Examiner states that Respondent 's counsel admitted during oral argument .that Respondent's activities in connection with the petition and letters to withdraw from ,the Union were violative of Section 8 (1) and 8 ( a) (1) of the Act . An examination of the record , however, reveals that in his argument Respondent ' s counsel merely admitted a' technical violation by Respondent of this section with regard to th. letters and he (lid not refer to the petition. 4 The Respondent alleges that a present Board employee , one William V. George, who is on the staff of the Regional Director for the Region in which this case was heard and who was on leave of absence without pay at the time , appeared at the hearing as representative of the Union . No objection was made at the hearing by the Respondent's attorney to George 's appearance on the Union 's behalf, or to the fact that he was permitted to question the Respondent ' s president . George did not examine any other witnesses during the course of the hearing .' The record does not indicate that the Respondent was prejudiced in any manner by George's appearance in this case or that the testimony elicited by George affects in any way a determination of the issues involved . While we disapprove of George 's conduct , we believe that it is a matter for administrative remedy , because the Respondent has not been prejudiced in any way by this breach of the Board ' s Regu- lations concerning practice by its employees. - S References hereinafter made to sections of the amended Act refer also, where appro- priate, to equivalent sections of the Act prior to amendment , unless the context clearly indicates otherwise. H & H MANUFACTURING COMPANY, INC. - 1375 (a) Surveillance of two union meetings by Assistant Superintendent Roberts ; 6 (b) Superintendent Waitsman's attempt about June 29, 1947, as employees were reporting to work at the plant, to prevent Union Or- ganizer Zubal from distributing union leaflets in front of the plant; 7 (c) Superintendent Waitsman's statements in June 1947 to pros- pective employee Meeler in the presence of employees Watson and Ruth Gordon "that there was not going to be any union in the plant" and "before they would have one the plant would not run"; (d) The drafting in the Respondent's office by the office manager 8 of a petition signed by 38 of Respondent's employees stating they did not want -a union in the plant, which petition was circulated openly in the plant during working hours in the presence and with the knowledge of Respondent's supervisors and was received in the Regional Office on June 30, 1947; (e) The dictation and preparation of a form letter dated June 23, 1947, by Respondent's president stating that the particular employee wished to withdraw from the Union, carbon copies of which Respond- ent's president kept in his desk, and which letters as they were signed in his office by employees were left with him for forwarding to the Regional Office. 3. We find, as did the Trial Examiner, that the Respondent did not discriminatorily lay off the employees involved herein in violation of Section 8 (a) (3) of the Act, but that the lay-offs during the period from May 2 to June 11, 1947, were due to the economic reasons asserted by the Respondent.' 9 With respect to this conduct , we rely on the Trial Examiner ' s finding of intentional surveillance by the Respondent ' s Assistant Superintendent Roberts and not on his opinion as to what effect Roberts ' acts of driving past the house where union meetings were being held may have had on the employees who were present at the time. 7 Member Reynolds would not find this incident to be violative of Section 8 (a) (1) of the Act . While the employees were entering the plant , Waitsman told Zubal to get away because he was causing trouble. Member Reynolds believes that this statement does not constitute interference or discouragement of union activity within the meaning of the Act, because it was not coupled with any threat of reprisal or promise of benefit. 8 While Margaret Kreider denied that she was the office manager, in view of the fact that the production records are kept under her supervision and control and she is in charge of Respondent 's general invoices and purchases and the keeping of its books, in our opinion she is in effect an office manager, although she may not have that specific title. The Union contends that, , despite the Respondent 's economic difficulties , its lay-off of nine union members was discriminatory as the Respondent failed to show any basis for selecting them . The Union cites Chicago Steel Foundry Company , 49 NLRB 100, 142 F. 2d 306, and Press Co., Inc. v. N. L. R. B ., 118 F. 2d 937. These cases are clearly dis- tinguishable because the lay-offs in the instant case were made on the basis of the superin- tendent's study of the plant's operations and he selected employees on those operations which he considered surplus. Furthermore as the Respondent did not maintain any seniority standards , efficiency or production records of its employees and there was no evidence that the line which was laid off contained any more union members than the line which was retained , the criterion utilized by the Respondent was a fair one. 1376 DECISIONS OF NATIONAL LABOR RELATIONS BOARD 4. We agree with the Trial Examiner that the Respondent' s failure to reemploy Warren, Wages, Little, and Nickelson was for just cause; that the failure to reemploy Camp was because Respondent did not have available work in Camp's field; and that the reason these former employees were not reemployed were not discriminatory. 5. The Trial Examiner initially considered Minnie Lou Jones in the same category as the employees with respect to whom he subse- quently found discrimination, but recommended that the allegation in the complaint as to her be dismissed because she admittedly never applied for reemployment. While it is true that Jones failed to apply for reemployment, such application was unnecessary because she had been assured by the Respondent's superintendent that she would be sent for when she was needed.- In view of the superintendent's promise to Jones, the fact that the Respondent hired new employees commencing in June 1947 and failed to show that Jones could not perform the duties of any of these new people, and for the reasons set forth in paragraph 6 below which are equally applicable to Jones," we find that the Respondent's failure to recall Jones as promised con- stitutes a violation of Section 8 (a) (3) of the Act. We further find that such discrimination occurred when the Respondent began its new hirings in June 1947. 6. The Trial Examiner finds, and we agree, that the Respondent discriminatorily refused to reemploy Harvil, Seagraves, Sims, and Elizabeth Jones because of their union activities. We rely upon the following considerations : (a) the hostility of the Respondent to union organization displayed in its coercive conduct which continued after the lay-offs and which violated Section 8 (a) (1) of the Act, as indi- cated in paragraph 2, above; (b) the Respondent's knowledge of its employees' union membership and activities which was found as a fact by the Trial Examiner, and which finding we adopt; (c) the fact that Harvil, Seagraves, Sims, and Elizabeth Jones were among the most active in the Union; (d) that they all had previous experience in the same industry and, with the exception of Harvil,12 had worked at the Respondent's plant practically from the day it started opera- tions; (e) that their work was never criticized; (f) that each of them applied for reemployment on several occasions ; (g) that the Re- spondent failed and refused to rehire them and gave no valid reason for its failure so to do; (h) that the Respondent reemployed almost all the nonunion employees it had laid off; and (i) that there is 10 Capital City Candy Company, 71 NLRB 447; American Linen Service Company, 45 NLRB 902. 11 The only exception to this is clause ( f) of paragraph 0. 12 Harvil commenced working for the Respondent about a month after it began operations. H & H MANUFACTURING COMPANY, INC. 137T nothing in the record to show that Harvil, Seagraves, Sims, and. Elizabeth Jones were unable to perform the work of any of the 26, new employees whom the Respondent added to its staff from June to November 1947. In view of all these circumstances, and upon the entire record in the case, we conclude that the Respondent knew of the union ac- tivity of Harvil, Seagraves, Sims,' and Elizabeth Jones and denied. reemployment to them because of such activity, in violation of Sec- tion 8 (a) (3) of the Act 13 We further find that such discrimination. occurred when the Respondent began its new hirings in June 194714 THE REMEDY Unlike the Trial Examiner, we have found that the Respondent discriminatorily refused to reemploy Minnie Lou Jones. We shall order the Respondent, therefore, to offer Minnie Lou Jones immediate and full reinstatement to her former or a substantially equivalent posi tion, without prejudice to her seniority or other rights and privileges,, and make her whole for any loss of pay she may have suffered by- reason of the Respondent's discrimination, by payment to her of a. sum of money equal to the amount which she would normally have, earned as wages during the period from the date of the discrimination against her, to June 20, 1949, the date of the Intermediate Report herein, and during the period from the date of this Decision and Order to the date of the Respondent's offer of reinstatement, 15 less her net earnings during said periods. 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, H & H Manu- facturing Company, Inc., its officers, agents, successors, and assigns,, shall : 1. Cease and desist from : (a) Discouraging membership in Amalgamated Clothing Workers of America, CIO, or in any other labor organization of its employees,. by discriminatorily refusing to reemploy any of its employees, or by m N. L. R. B. v. Abbott Worsted Mills, 127 F. 2d 438; Quest-Shon Mark Brassiere Co.,. Inc., 80 NLRB 1149; The Firestone Tire and Rubber Company, 62 NLRB 1316. 14 In this connection, we do not adopt any of the content of the last paragraph of Section 3 E of the Intermediate Report. "This abatement of back pay for the period between the issuance of the Intermediate. Report and our Decision and Order follows our practice where, as here, the Trial Examiner did not recommend the reinstatement of this employee or the award of back pay to her. 877359-50---vol. 87-89 1378 DECISIONS. OF NATIONAL LABOR RELATIONS BOARD discriminating in any other manner with regard to their hire and tenure of employment , or any term or condition of their employment; (b) In any other manner interfering with, restraining , or coercing its employees in the exercise of the right to self-organization, to form labor organizations , to join or assist Amalgamated Clothing Workers of America, CIO , or any other labor organization , to bar-. gain collectively through representatives of their own choosing, to engage in concerted activities for the purpose of collective bargaining or other mutual aid or protection , or to refrain from any or all of such activities , except to the extent that such right may be affected by an agreement requiring membership in a labor organization as a condition of employment as authorized in Section 8 (a) (3) of the Act. 2. Take the following affirmative action which the Board finds will effectuate the policies of the Act : (a) Offer to Emma Harvil , Sallie Seagraves , Eunice Bell Sims, Minnie Lou Jones , and Elizabeth Jones immediate and full rein- statement to their former or substantially equivalent positions, with- out prejudice to their seniority and other rights , and privileges ; (b) Make whole Emma Harvil, Sallie Seagraves , Eunice Bell Sims, Minnie Lou Jones , and Elizabeth Jones for any loss of pay they may have suffered by reason of Respondent 's discrimination against them, in the manner set forth in the section of the Intermediate Report entitled "The remedy ," as modified herein; . (c) Post at its plant in Statham , Georgia, copies of the notice attached hereto and marked Appendix A.1° Copies of said notice, to be furnished by the Regional Director for the Tenth Region, after being duly signed by the Respondent 's representative , shall be posted by the Respondent immediately upon receipt thereof , and maintained by it for sixty ( 60) consecutive days thereafter in conspicuous places, including all places where notices to employees are customarily posted. Reasonable steps shall be taken by the Respondent to insure that said notices are not altered , defaced, or covered by any other material; (d) Notify the Regional Director for the Tenth Region in writing, within ten ( 10) days from the receipt of this Order, what steps the Respondent has taken to comply herewith. IT IS FURTHER ORDERED that the complaint , insofar as it alleges that the Respondent discriminated with regard to the hire and tenure of employment of. Hillman . Camp, J . D. Warren, Elizabeth Wages, Vaughn Little, and Ida Nickelson , be, and it hereby is, dismissed. 11 In the event that this Order is enforced by decree of a United States Court of Appeals , there shall be inserted in the notice before the words : "A DECISION AND ORDER," the words : "A DECREE OF THE UNITED STATES COURT OF APPEALS ENFORCING." H & H MANUFACTURING COMPANY, INC. 1379 APPENDIX A 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, we hereby notify our employees that : WE WILL NOT discourage membership in AMALGAMATED CLOTH- ING WORKERS OF AMERICA, CIO, or any other labor organization of our employees by refusing to reemploy them or by discrimi- nating in any other manner with regard to their hire and tenure of employment, or any term or condition of employment. WE WILL NOT in any other manner interfere with, restrain, or coerce our employees in the exercise of their right to self -organiza- tion, to form labor organizations, to join or assist AMALGAMATED CLOTHING WORKERS OF AMERICA, CIO, or any other labor organi- zation, to bargain collectively through representatives of their own choosing, to engage in concerted activities for the purpose of collective bargaining or other mutual aid or protection, or to refrain from any or all such activities, except to the extent that such right may be affected by an agreement requiring membership in a labor organization as a condition of employment, as authorized in Section 8 (a) (3) of the Act. WE WILL OFFER to the employees named below immediate and full reinstatement to their former or substantially equivalent posi- tions without prejudice to any seniority' or other rights and privi-. leges previously enjoyed, and make them- whole for any loss of pay suffered as the result of the discrimination : Emma Harvil Eunice Bell Sims Sallie Seagraves Elizabeth Jones Minnie Lou Jones All our employees are free to become, remain, or refrain from becoming members of the above-named union or any other labor organization except to the extent that this right may be affected by an agreement.in conformity with Section 8 (a) (3) of the amended Act. WE WILL NOT discriminate in regard to hire or tenure of employ- ment or any term or condition of employment against any employee because of membership in or activity on behalf of any such labor organization. H & H MANUFACTURING COMPANY, INC., Employer. By ------------------------------------------- (Representative ) ( Title) Dated -------------------- 1380 DECISIONS OF NATIONAL LABOR RELATIONS BOARD 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 Mr. Milton 0. Talent, for the General Counsel. Mr. Mortimer H. Freeman, of Atlanta, Ga., and Mr. Earl Hirsh, of Statham, Ga., for the Respondent. Mr. William V. George and Mr. Peter Zubal, for the Union. STATEMENT OF THE CASE Upon an amended charge duly filed on November 13, 1947, by Amalgamated Clothing Workers of America, CIO (herein called the Union), the General Counsel of the National Labor Relations Board,' by the Regional Director for the Tenth Region (Atlanta, Georgia), issued a complaint dated June 29, 1948, and an amended complaint dated August 20, 1948, against H & H Manufacturing Company, Inc. (herein called the Respondent), alleging that the Respondent had engaged in and was engaging in unfair labor practices within the meaning of Section 8 (1) and (3) and Section 2 (6) and (7) of the National Labor Relations Act and as reenacted Section 8 ( a) (1) and ( 3) and Section 2 (6) and (7) of the National Labor Relations Act as amended, Public Law 101,.80th Congress, 1st Session (hereinafter called the Act). Copies of the complaint, the amended complaint, the amended charge, and notice of hearing were duly served upon the Respondent and the Union. With respect to the unfair labor practices, the amended complaint alleged in substance, that : (1) on different dates in May and June 1947, the Respondent laid off and discharged 11 named employees and thereafter failed and refused to recall, reinstate, and employ the said employees because of their membership in and activities on behalf of the Union ; (2) from about April 22, 1847, to date, the Respondent by its officers, agents, and employees, more particularly by President and General Manager Earl Hirsch, Superintendent Waitsman, Assistant Superintendent Carroll Roberts, Head Shipping Clerk Charles Huff, employees Ruth and Watt Gordon, and Edna Jackson, and Carl Patat, and Arthur Cofer:2 (a) made intimidatory and coercive statements to discourage union membership and activity and to discourage on the part of its employees activity for the purposes of collective bargaining and other mutual aid and protection; (b) interrogated, inquired of, and questioned its employees about their union membership, affiliation, and sympathies; (c) urged, advised, and requested its employees to surrender their union membership and withdraw from union activities and activities for the purpose of collective bargaining and other mutual aid and protection ; (d) caused in the presence of its employees, union organizers , and officials to be subjected to harassment and embarrassment; (e) threatened to close its plant if the union activities of its employees were successful; (f) spied upon and kept under surveillance union members, officials, meetings, meeting places, and union activities ; ( g) and made derisive , disparag- ing, and derogatory remarks and statements concerning the Union , its leaders, I The General Counsel and his representative at the hearing are herein called the General Counsel , and the National Labor Relations Board is called the Board. 2 Edna Jackson, Carl Patat, and Arthur Cofer were added to the amended complaint by motion of the General Counsel , which was allowed over the objection of counsel for the Respondent. H & H MANUFACTURING COMPANY, INC. 1381 and its affiliations; (3) by the aforesaid acts the Respondent interfered with, restrained, and coerced its employees in the exercise of rights guaranteed in Section 7 of the Act. The Respondent's answer duly filed admitted the jurisdictional allegations of the complaint but denied the alleged unfair labor practices. Further the answer prayed.for the dismissal of the complaint for the reasons that it was filed without probable cause, that it was being used for the purpose of assisting the Union in organizing the persons employed by Respondent after the Union was repudiated in an election by an overwhelming majority despite statements made by union organizers that they would force the plant to be closed, that employees would be barred from drawing unemployment compensation, old-age pensions, and social security, and that when the Union came into the plant every person that did not vote for it would be fired, together with other state- ments that were disparaging and untrue about the Respondent. Pursuant to notice, a hearing was held at Statham, Georgia, on various dates between September 20 and October 17, 1948, before the undersigned Trial Examiner duly designated by the Chief Trial Examiner. The General Counsel and the Respondent were represented by counsel and the Union by its repre- sentatives. All parties participated in the hearing and were afforded full opportunity to be heard, to examine, and cross-examine witnesses, and to intro- duce evidence bearing upon the issuses. At the opening of the hearing in addition to the motion to amend the complaint noted above, the General Counsel moved to strike that part of the Respondent's answer contained in the prayer alleging misconduct on the part of the Union. Over vigorous objection by Re- spondent's counsel the motion was granted. Counsel for the Respondent made a motion for a bill of particulars requesting that he be furnished with the dates, places, activities, and statements of the Respondent, its supervisory employees, its other named employees, and agents, alleged to be violative of Section 8 (1) and Section 8 (a) (1) of the Act. The motion was granted in part and denied in part. During the course of the hearing, a petition by counsel for the Respondent to revoke a subpoena daces tecum was denied. At the close of the General Counsel's case, counsel for the Respondent made motions to dismiss certain allegations of the complaint as well as a general motion to dismiss the com- plaint in its entirety. The latter motion was denied. The motion to dismiss that part of the complaint alleging that Edna Jackson committed violations of Section 8 (1) as well as Section 8 (a) (1) of the Act was granted withouitj objection. The motion to dismiss the allegation of the complaint in which it was set forth that Allen C. Bray was discriminatorily discharged was granted. All other motions made by counsel for the Respondent were denied. At the close of the hearing a motion was made to correct the record in several respects and was granted without objection. The General Counsel moved to conform the pleadings to the proof with respect to formal matters. The motion was allowed without objection. Counsel for the Respondent renewed his motions to dismiss from the complaint the allegation that Charles Huff, Ruth and Watt Gordon, Carl Patat, and Arthur Cofer were acting for the Respondent. Such motions were denied. Ruling was reserved on the further motion to dismiss the com- plaint in its entirety and is disposed of as hereafter appears. Oral arguments were made at the end of the hearing by both counsel. The parties were advised of their right to file proposed findings of fact, conclusions of law, and briefs. A memorandum has been received from the General Counsel and has been carefully considered. 1382 DECISIONS OF NATIONAL LABOR RELATIONS BOARD Upon the entire record in the case and from his observation of the witnesses, the undersigned makes the following: FINDINGS OF FACT 1. BUSINESS OF THE RESPONDENT It was stipulated at the hearing that the Respondent, H & H Manufacturing Company, Inc., is a corporation duly organized under and existing'by virtue of the laws of the State of Georgia. It is a contractor for other manufacturers and acts on a cut-make-and-trim basis only. It is thus engaged in the man- ufacturing, processing, and distribution of men's woolen and flannel pants" and has maintained at all times its principal office and place of business at Statham, Georgia. The Respondent in the course and conduct of its business- operations during the year ending December 31, 1947, which period is repre- sentative of all times material, has received at its plant in Statham, Georgia, raw materials consisting mainly of wool and flannel which materials are furnished and shipped to the Respondent by manufacturers from points outside the State of Georgia. The value of such raw materials is in excess of $10,000. The Respondent purchases findings such as zippers, thread, buttons, and pocket material valued in excess of $50,000, approximately 50 percent of which value, was received from and purchased outside the State of Georgia and shipped in interstate commerce to its place of business at Statham, Georgia. During the same period the Respondent manufactured, processed, and shipped finished products consisting principally of men's woolen and flannel pants valued in excess" of $150,000, of which value approximately 90 percent was shipped to manufac- turers outside the State of Georgia. It is found that Respondent is engaged in commerce within the meaning of the Act. H. THE ORGANIZATION INVOLVED Amalgamated Clothing Workers of America, CIO , is a labor organization and admits employees of the Respondent to membership. .III. THE UNFAIR LABOR PRACTICES A. Background The respondent corporation started operating its plant in Statham, Georgia, on January 2, 1947. For several weeks prior thereto it used a number of employees to move machinery and set up the plant before starting 'actual opera- tion. Joe Handelsman and Earl Hirsh were each 50 percent stockholders in the respondent corporation. Hirsh was the secretary and general manager" of the corporation from January to November 1947 and thereafter became presi- dent. Hirsh maintained his headquarters at the plant in Statham and was in charge. of the over-all operation of the plant including the hiring and firing of all employees. Hirsh traveled occasionally to solicit business. Handelsman maintained his headquarters in New York City where he contacted manufac- turers for the purpose of obtaining business for the factory. From the incep- tion of the Respondent's operation until sometime late in March 1947," it retained a group of efficiency engineers, to set up the plant and assist it in obtaining the best production possible. Not satisfied with the results of the efficiency engineers, allegedly because it was losing money, the Respondent dispensed with their services and on or about April 4, 1947, hired Paul Waitsman, who had 34 years' H & H MANUFACTURING COMPANY, INC. 1383 experience in the clothing industry, as its plant superintendent. In addition to his duties of the actual supervision of the plant's operations, Waitsman immediately started a study of the operations with a view to increasing efficiency and effecting economies. The rate of pay of the sewing machine operators with few exceptions was 521/z cents per hour. Shortly after Waitsman took over the superintendency of the plant he addressed the employees, advised them that it was necessary to reduce wages and on or about May 6 their hourly rate was cut from 521/2 cents to 45 cents .8 B. The inception of organizational activities; alleged interference, restraint, and coercion prior to lag-offs in May and June 19117 Peter Zubal, Georgia State Director for the Union, came to Statham during the first week in April 1.947. He remained for 2 weeks contacting the Respond- ent's employees at their homes or outside of the plant to determine their interest in organization. He signed up a number of employees to union membership. The first union meeting was held. on April 29, 1947, at the home of Sallie Sea- graves, an employee of the Respondent, whose termination will be discussed hereinafter. Three meetings were held during May 1947, 1 week apart, at the home of employee Elizabeth Jones, also terminated. Organizational activity thereafter continued with meetings at the American Legion Hall throughout 1947 and until the Board election in March 1948. In addition to the regular union meetings, most of the employees participated in discussions for and against the Union. Such discussions took place in the plant and during lunch periods in an alleyway at the rear of the plant.4 During the period or organizational activity 69 employees signed applications for membership in the Union. On or about May 6, 1947, Hirsh called on Carl Patat, owner of the Statham Pants Company, whose plant is also located in Statham, Georgia, and Arthur Cofer, superintendent of the Oconee Garment Company, Bogart, Georgia,5 at their respective plants to talk to them about his production problems. Patat and Cofer testified that Hirsh asked them if they would be willing to speak to his employees regarding production, stating that a talk by them "might do some good" and the employees "might go to work." Later that day Patat and Cofer_ appeared at the Respondent's plant. Super- intendent Waitsman shut off the plant's power and instructed the employees to gather around the cutting table to listen to speeches by Patat and Cofer. Patat could not remember too well the contents of his speech. He did testify, however, that he did not say anything against unions. Cofer testified that he did not make a speech to the employees. He stated that he was in the plant for about 5 or 10 minutes, that after Patat addressed the employees'he talked to a num- ber of them who were gathered in a group around the cutting table, and confined his remarks to production in the Respondent's plant. Emma Harvil, a former employee of the Respondent, testified that Patat spoke to them about closed plants in the Statham area ; that he was not telling them to join' or not to join the Union but that they should go home and think the matter over. Patat also said that the Union would not hurt his plant or Respondent's plant, but would hurt the town. Arthur Cofer, according to Harvil, also spoke ' This date was after the Union ' s organizational activities began as detailed - hereinafter. The alleyway was located between the rear of the plant and Hammond 's Store where the employees purchased. food and ate their lunches. Neither of these plants have any connection with the Respondent. 1384 DECISIONS OF NATIONAL LABOR RELATIONS BOARD to the employees, stating that the Union coming in would not bother him because his plant was closing down. The undersigned credits Harvil's testimony regard- ing the speeches of Patat and Cofer. The Respondent in its amended answer denied that Carl Patat or Arthur Cofer committed any unfair labor practices as alleged in the amended com- plaint as agents in behalf of the Respondent, further, that neither Patat nor Cofer was authorized to act for the Respondent. That Respondent is respon- sible for the speeches of Patat and Cofer is too clear to warrant much dis- cussion. The speeches were made to Respondent's employees at the request of Hirsh. They were made on Respondent's premises during working hours in the presence of Respondent's supervisory employees. As a matter of fact, the employees were directed by Waitsman to listen to the speeches, and were paid for the time thus spent. Thus it is seen that Patat and Cofer were acting in the interest of the Respondent and upon its explicit instructions to address the employees. The undersigned finds that Patat and Cofer were agents of the Respondent within the language of Section 2 (13).' Having found that Patat and Cofer were, the agents of the Respondent, the further question arises: Were the speeches protected by Section 8 (c) or were they in violation of Section 8 (a) (1) of the Act? The General Counsel con- tends in his brief that the speeches of Patat and Cofer in their implications suggested that the Respondent would close its plant if the union organization was successful and that therefore the speeches contained a veiled threat of reprisal. According to the credited testimony of Harvil, Patat said that suc- •cessful union organization would not hurt either his plant or Respondent's plant. He did state that it would hurt the town. Can it be said that by this remark .a veiled threat of reprisal was contained in the speech? The undersigned thinks not and finds the contention of the General Counsel with regard to Patat's speech to be without merit. Cofer, according to the credited testimony of Har- vil, mentioned nothing with respect to the Respondent's plant but did state that his (Cofer's) plant was shutting down irrespective of the outcome of union organization. The undersigned finds that Cofer's speech did not con- tain any threats of reprisal or promises of benefit and is protected within the meaning of Section 8 (c) of the Act. The following day, May 7, at about 3 p. m., Hirsh gathered the employees together and addressed them. Hirsh had prepared a written speech. Hirsh testified that he did not read the speech but referred to the written document from time to time only to refresh his recollection. The following is the written speech of Hirsh : I want to say a few words to you people merely to discuss something important to both of us. First of all, I want you to know that I have the welfare of you people at heart. I know that in the long run you will find this to be true. I want to say here and now that I am not taking any part in what is going on inside and outside of this plant. Naturally rumors have come to my attention. They are strictly rumors, as far as I am concerned. I am not interested in going into the parts played by any of you. Whatever you do is your decision. I merely want to bring a few facts to your at- tention. (If you people feel you want to join a union, that is up to you. 6 See Perry Norvell Co. (United Shoe Workers, C. I. 0.), 80 NLRB 225. See also N. L. R. B. v. Mylan-Sparta Co., 166 F. 2d 485 (C. A. 6). H & H MANUFACTURING COMPANY, INC. 1385 If you feel there are advantages you can gain, you can feel free to do what you want. I feel that in the long run, we can all be happy working together discussing our problems as we have in the past.) Let me tell you about the economic conditions today in the garment in- dustry. You people are smart enough to understand this without any- thing from me as you can see for yourselves that almost every plant in this section is closed. The one remaining is closing in a week and has already reduced its operators to one-half. These owners are not mean-they are not trying to hurt the employees. Business conditions have forced them to close. You all know some of these owners personally. Ask them for the truth. These conditions are the worse this country has ever known. Now, why aren't we closed? Simply because the owners are not sleeping. We are working day and night to keep the plant operating. As you see, we are only working hand to mouth, but at least you people eat at the end of the week. No, not as much as you would like or as much as I would like you to, but at least, you are among the fortunate to be working. You people must know that we are turning out about 200 dozen pants per week. We must double this amount in order to meet our pay roll and ex- penses in operating this factory. This is not your fault entirely today. At one time there were sufficient piece goods to turn out this amount. To- day, however, we are only running from hand to mouth because of the piece goods situation. This is not my fault either. It is the present economic condition of the country. I am trying to keep this factory going instead of closing down so you people will at least have something at the end of the week. Under present conditions, I am losing about $2,000 per week. Let's assume we ran out of cloth and I was forced to close. Are there any factories operating where you could obtain a job? This way, I'm losing financially. How long can anyone keep this up? I ask any of you how can I do more. Would any of you do as much if you were in my place? I think not. I ask you folks, think twice before you judge me. This picture could change any day. It could last awhile. Your guess is as good as mine. If we get sufficient cloth, at least, you can make production and have a nice check at the end of the week. Bear with me folks. I am doing my best. I may have to lay off people from time to time or will close down for awhile. I'm trying not to. I am not superhuman. I can only do my best. No plant can operate without a profit. We must turn out no less than 4500 units weekly to come out. No one on God's Green earth, no one can operate this plant without piece goods. No matter what happens on the outside, we can only operate success- fully if the owners are able to get piece goods. No one can stop the flow of goods if we are able to obtain it. Without goods we must close. Please give us your wholehearted support to -help in the most trying times. . Hirsh testified that as he was making the speech to the employees he remembered that he had been asked whether the Respondent had three other plants up north. He thereupon supplemented his prepared speech and stated that the Respondent did not own any plant in the north nor did he or his associate, together or individ- ually. He stated that he was willing to go out and borrow $5,000 to donate to any local church providing the other side [the Union] would also put, up $5,000 1386 DECISIONS OF NATIONAL LABOR RELATIONS BOARD if they could prove any of the statements they were making. Hirsh's testimony -regarding the speech was corroborated in some respects by Harvil as well as by other General Counsel and respondent witnesses. The undersigned finds that Hirsh's speech to the employees on May 7 was substantially as contained in the written speech set forth above and as he testified regarding his supplementary remarks. The undersigned further finds that the speech did not contain any threats of reprisal or promises of benefit and is protected by Section 8 (c) of the Act. As heretofore noted during the height. of the organizational campaign at the Respondent's plant the employees participated in discussions both for and against the Union. The amended complaint alleges that Head Shipping Clerk Charles Huff and employees Ruth and Watt Gordon, from about April 22,1947, by intimida- tory and coercive statements, interrogation, urging, advising, and requesting Respondent's employees to surrender their union membership, violated Section 8 (1) and 8 (a) (1) of the Act. In his bill of particulars the General Counsel set forth that the said named employees participated in this action during May and June 1947. It would be well at this point to determine the responsibility of the Respondent for the acts of Charles Huff, Ruth and Watt Gordon. . It is the contention of the General Counsel that the Respondent is responsible for the conduct of Charles Huff in that it accepted and acted upon information given to it by Huff and approved and ratified Huff's conduct ; further, that Huff was in charge of shipping and received a higher rate of pay than the "helper" who worked under him. The Respondent's shipping department has only two employees, Huff and a helper, James Akins. Huff testified without contradic- tion that he does not supervise Akins but merely advises him what they are to do and they usually work together. Huff is an hourly paid employee whose rate of pay is 70 cents per hour. While it is true that Huff received a higher rate of pay than the "helper" and was in charge of shipping nevertheless it appears that the "helper" worked with Huff and not under him. He punches a clock as do all other production and maintenance employees. Huff does not hire or fire em- ployees nor does he have power to recommend such actions. The undersigned finds that Huff was not a supervisory employee within the definition of the Act. Further, with respect to this contention, there is no evidence that the Respondent accepted and acted upon information given to it by Huff. As previously noted, the discussions regarding the Union took place in the plant with most employees participating. It is clear from the record that Huff, who was not a union mem- ber, was outspoken in his opposition to the Union. The record does not reveal, however, that the Respondent encouraged, authorized, or ratified Huff's conduct in the course of his discussions with his fellow employees or that it acted in such manner as to lead the employees to believe that Huff was acting for it. Under such circumstances the antiunion conduct of a nonsupervisory employee is not attributable to the Respondent. See Mylan-Sparta Company, Inc., 78 NLRB 1144. The undersigned finds this contention of the General Counsel to be without merit. It is clear from the record that Watson and Ruth Gordon,? husband and wife, were production and maintenance employees in the plant. The General Counsel contends that the coincidence of the alleged acts of hostility by the Respondent with an increase in pay to Ruth Gordon ; the failure of the Respondent to reduce the pay of Watt Gordon during a general reduction ; the advance knowledge by Ruth Gordon about lay-offs ; and the admission that the Gordons had transmitted 4 Watson Gordon is referred to in the record and herein as Watt Gordon. H & H MANUFACTURING COMPANY, INC. 1387 information about union membership creates an inference that the Respondent instigated or approved and ratified the conduct of the Gordons or that it implies agency. Ruth and Watt Gordon were both active in the Union at the inception of its organization in the Respondent 's plant. For some reasons , unexplained in the record , both broke with the Union and took on a very definite hostile attitude toward the Union thereafter . They, as a matter of fact, voiced their hostility to the Union in discussions with fellow employees both inside and outside the plant. The raise of pay given Ruth Gordon was explained by Waitsman as follows ; about May 16 , the Respondent changed its method of paying employees from an hourly rate to a piecework rate where the employee met certain stand- ards of production . Ruth Gordon was a spare hand in the plant and was shifted around to different operations as the necessity arose. Therefore since she did not remain at one operation for any period of time which would enable her to "make production" she was given an increase in her hourly rate of pay. Waits- man's explanation for the increase in pay given to Ruth Gordon is credited. The pay-roll records in evidence reveal that when the hourly pay was reduced from 521/2 cents to 45 cents, referred to hereinabove , a number of employees re- tained their old scale of pay. Watt Gordon , a bundle boy who did not work on production , received the rate of 60 cents per hour during his entire period of employment . He was in the group whose pay rate was not cut. In the opinion of the undersigned no special significance can be attached to this. ,While it appears that Ruth Gordon during a discussion with another employee, Kathleen Greeson, mentioned that Greeson should get out of the Union or she -would be fired ,'. the undersigned does not believe that such a remark by one employee to another is proof of the fact that Ruth .Gordon had advance knowledge of the lay-offs, and he so finds. There is no evidence that Respondent admitted that Ruth or Watt Gordon transmitted any information to it regarding employees in the Union other than themselves . Watt Gordon admitted that during a conversation with Hirsh, he told the latter that he had joined the Union, that he was not satisfied , and asked how he could get out. Hirsh told him there would be a secret ballot held at some future date at which time he could then decide about the Union. Although it is clear that Ruth and Watt Gordon participated in antiunion conduct, since both were nonsupervisory employees and the record does not con- tain any evidence to show that the Respondent encouraged , authorized , or ratified :such antiunion conduct or acted in such manner as to lead their other employees to believe that Ruth and Watt Gordon acted for it, their conduct is not attributable to the Respondent . See Mylan-Sparta Company, Inc., supra . In view of these findings it is considered unnecessary to summarize the evidence of acts and state- ments attributed to Fluff and Ruth and Watt Gordon , and the undersigned will recommend hereinafter that the allegations of the complaint to the effect that Charles Huff , Ruth and Watt Gordon from about April 22, 1947 , to date, engaged in unfair labor practices within the meaning of Section 8 (1) and Section 8 (a) (1) of the Act be dismissed. The amended complaint alleges that the Respondent conducted acts of sur- veillance by its supervisory employees , Hirsh, Wai.tsman , and Roberts. The Respondent 's plant is a one-story building approximately 150 feet by 100 feet. It does not contain any partitions except for the office located at the front of the plant which houses Hirsh and the office staff. It is a well -lighted plant with 8 Kathleen Greeson , a anion member , was not affected by any of the lay-offs and has been steadily employed. 1388 DECISIONS OF NATIONAL LABOR RELATIONS BOARD windows on all sides. There is an alleyway approximately 15 feet wide at the rear of the plant. As heretofore noted, during the organizational campaign, the union organizers and employees, particularly during lunch periods, discussed the pros and cons of the Union in this alleyway and in Hammond's Store which was located on the other side of the alleyway directly opposite the plant's rear window. Peter Zubal testified that on several occasion he saw Roberts and Waitsman looking out of the corner window at the rear of the plant observing him while he was talking to Respondent's employees either at Hammond's Store or in the alley in his efforts to enlist them into union membership. Zubal's testi- mony in this regard was corroborated by several other witnesses ° and is credited. Waitsman admitted that he looked out the rear window of the plant and saw employees in the alleyway gathered there to eat lunch. He never noticed any employee meetings. Waitsman testified also that it was his habit to order things from Hammond's Store and he accomplished this by yelling out of the rear window and his order would be brought to him. The record also indicates that certain materials were kept near the cutting table where the rear windows are located and that it was necessary for Waitsman to obtain these materials from time to time and in doing so he would of necessity pass the rear window. Furthermore, his duties kept him in and about the machines and in going from machine to machine or to the cutting table he was bound to pass the rear window and perhaps look out. Roberts categorically denied that he spied on any union meetings. No testimony was offered. by the Respondent regarding his looking out of the rear window of the plant. Zubal also testified credibly that on two occasions while the-Union was hold- ing meetings at employee Elizabeth Jones' home on Broad Street in Statham, he observed Roberts drive past in his car at a very slow rate of speed and look in the direction of Elizabeth Jones' house. On the first occasion a number of em- ployees were gathered outside the house before going into to meeting and upon seeing Roberts' car drive by slowly, called out his name. Roberts did not stop the car but drove up beyond the house a short distance, made a U-turn, and again went by at the same slow rate of speed. Roberts was not seen again at any time during the course of the evening. On the second occasion which also took place before a union meeting scheduled at Elizabeth Jones' home, the em- ployees were assembled outdoors preparatory to having a group picture taken. Zubal testified that Roberts and his wife, Dorothy, an employee in the plant,10 were in the car which again drove past the Jones' house at a very slow rate of speed. Zubal called to Roberts inviting him to come into the house. Roberts drove up the street beyond the house, made a U-turn, came back and drove away. Roberts admitted driving his car past Elizabeth Jones' house on the second occasion testified to by Zubal. He stated, however, that he and his family were on their way to the movies that evening, that it was early and they were driving around town before going into the movies. That there were only two or three streets in Statham that they could drive on and Broad Street is one of such streets. Roberts neither admitted nor denied driving past Jones' house on the first occasion testified to by Zubal. With respect to the acts of surveillance by Waitsman and Roberts looking out the rear window of the plant the Union chose to meet Respondent's employees ° These witnesses were former employees Martha Rowden Hayes , Hillman Camp, and Emma Harvil. 11 Dorothy Roberts was included in the lay -off of May 19 which will be detailed herein- after but was recalled at a later date. H & H MANUFACTURING COMPANY, INC. 1389 in the alley which place was clearly visible from the rear window of the plant. Although Waitsman's explanation for being there is suspect yet his duties re- quired him to move about the plant, particularly in, the vicinity of the cutting table and such explanation is not wholly unreasonable.. Even accepting the fact that Roberts and Waitsman looked out of the window and saw what was going on when the union organizers were talking to employees, such evidence in the opinion of the undersigned is insufficient to warrant a finding of intentional surveillance. See Boreva Sportswear, Inc., 73 NLRB 1048. With respect to the acts of surveillance of Roberts in driving past Elizabeth Jones' home on the two occasions when union meetings were being held there, it is most significant that Roberts, who testified he teas out for a ride should choose Board Street, a dirt road, and make a U-turn in order to drive past the, Jones house twice. It is also noted that the route taken by Roberts to get to the movie house was a rather circuitous one. The undersigned does not credit Roberts' explanation for driving on Broad Street and finds that he intentionally drove past the Jones' home on the two occasions when union meetings were being held there in order to spy on the meetings.11 Certainly Roberts' acts of driving past the Jones home when union meetings were being held there must have served to foster the impression on the employees who were there and saw him, that he was doing this to spy on the union meetings. This act thus constituted interference in violation of the Act. See Harold W. Baker Company, 71 NLRB 44. C. The lay-offs in May and June 1947 Over the period from May 2 to June 11, 1947 , the Respondent , according to the pay-roll records in evidence , laid off 34 employees . Included in this group are the 10 named employees alleged in the amended complaint to have been discrimi- natorily discharged . Since their timing and the Respondent 's purported reasons therefor lend themselves to such treatment they will be considered as a group. The Respondent in the cases of several of the terminated employees denies knowl- edge of their union membership and activities . Hirsh admitted however, as did Waitsman and Roberts , that they heard rumors about the Union and about employees who had become members , practically from the inception of the organizing campaign .. Furthermore , in a plant as small as the Respondent's, the majority of whose employees and management officials live in a city , the popu- lation of which is only 600, rumblings among the employees are certain to reach the management and become generally known. It is found from all of the surrounding circumstances that Respondent had knowledge of its employees' union membership and activities . N. L. R. B. v. Abbott Worsted Hills, 127 F. 2d 438, 440 ( C. A. 1) ; Quest-Shon Mark Brassiere Co., Inc., 80 NLRB 1149; The Firestone Tire and Rubber Company, 62 NLRB 1316. Hillman Camp entered Respondent 's employ when the plant started operating in January, 1947, as a mechanic 's helper under the GI training program spon - sored by the Veterans Administration . On Thursday , May 1, Canip told Waits- man that he would like to be off until Monday. When Waitsman asked why he did not take off, Camp said that because he was on the GI training program, he could not without an excuse to the Veterans Administration . Upon reporting 11 See Public Service Corporation of New Jersey, 77 NLRB 153, where the Board held that eavesdropping by a supervisor upon organizational activity was violative of the Act notwithstanding the fact that the employees were unaware of the eavesdropping and the further fact that no discrimination resulted therefrom. 1390 DECISIONS OF NATIONAL LABOR RELATIONS BOARD for work the next day, Camp was asked by Waitsman why he had not stayed out. Camp repeated that he could not without an excuse. Later that day o Hirsh asked Camp if he could obtain -a 30-day leave from his training because he was to be laid off due to the lack of mechanical work. Hirsh told Camp that if there was any work for him in the interim he would be called back. He was never reemployed by the Respondent. Camp signed a union membership application on April 29, attended several meetings and talked union to some of the employees. Otherwise he was not particularly active. There is no evidence of any complaints concerning his work. J. D. Warren was employed by the Respondent in December 1946 to help move machinery and set up the plant prior to actual operation. In January 1947 when the plant started operating Warren was assigned to the cutting table to spread cloth and remove bundles. Warren joined the Union on April 29, 1947, and attended several meetings. Zubal testified that Warren gave him a number of contacts and assisted Zubal in locating employees' homes. On or about May 6, Warren was transferred to a pressing job. Warren testified that he was never told by anyone in management that his work was not satisfactory. Hirsh, on the other hand, testified that on three.or four occasions it was necessary to talk to Warren about complaints that he had received because the cloth on being removed from the cutting table and placed into bundles was not being taken off properly, with the result that the finished pants were shaded. Hirsh testified also that he talked to Warren about "fooling around." Ralph Dunahoo, a cutter in the Respondent's plant, testified that he had to complain to Hirsh about Warren's slowness at the cutting table. Warren did not impress the undersigned as a reliable witness. The undersigned credits the testimony of Hirsh and Dunahoo regarding him. Warren was in the group of 22 employees laid off by Waitsman on May 19, because of the shortage of material and lack of work. He worked again on May 21 and 23, and was finally terminated on May 26. He has never been reemployed. Minnie Lou Jones worked for the Respondent as a sewing machine operator welting back pockets, from the time the plant opened in January 1947 until May 19. She was in the group called into the office by Waitsman and told that there was not sufficient work, that they were to be laid off for a period and would be called back. Jones worked again on May 27 and 28, and has not been reemployed since. Jones joined the Union on May 8, attended several meetings, and talked to employees in and outside of the plant regarding the Union. Jones had 3 years' experience in practically every phase of the pants manufacturing industry before entering Respondent's employ. There is no evi- dence of any complaints concerning her work. Sallie Seagraves entered the Respondent's employ in January 1947, when the plant started operating. She worked as a watch pocket setter and also helped out on pleating and putting in other types of pockets until May 19, when she was laid off. She has not been reemployed. Seagraves joined the Union at the first meeting which was held at her home the night of April 29. She also told a number of employees in the plant that there would be a meeting at her home that night. Seagraves testified that during the period of her employ- ment her work was never criticized and that Hirsh had in fact praised it. Waitsman testified that her work was "all right," but slow. Hirsh -denied praising Seagraves' work and also ,'claimed she was slow. When questioned H & H MANUFACTURING COMPANY, INC. 1391 whether she was a faster operator than Hattie Mae Atkins." Seagraves answered that she only knew that she did lots of work that came from Akins' line and that another employee helped Akins do her pleating. Seagraves had 10 years' previous experience in the industry in various operations. Inasmuch as there was no shortage of help, but on the contrary, as will be detailed hereinafter, the plant was overstaffed, it is significant that the Respondent never criticized Seagraves for slowness while she was employed. The undersigned does not credit the testimony of Hirsh and Waitsman herein. Eunice Bell Sims worked for the Respondent from January 1947 until she was laid off by Waitsman on May 19, with the group of employees as described supra. For the first 2 months of her employment Sims worked as a pocket sewer, thereafter she did side-face stitching. Sims had 2 years' previous experience in the clothing industry. Sims signed a membership application card in the Union at the first meeting on April 29, and regularly attended other meetings. Although Hirsh testified that when Sims applied for reemployment in August, he told her that she was a slow worker, there is no evidence that she was ever criticized during the period of her employment and the undersigned- does not credit Hirsh's testimony in this regard. She was never reemployed. Elizabeth Wages was employed by the Respondent from January 1947 until her lay-off on May 1.9. She worked as a back pocket corder and had 7 years' previous experience in the clothing industry. Wages joined the Union on April 29, attended all meetings, and was a member of the organizing committee. She was very active in talking union to the employees inside and outside the plant. Wages testified that her work was never criticized. Waitsman testified that Wages was not a satisfactory employee stating as a reason that on one occasion in May he gave her some additional work to do, but that she refused to do it. Wages, according to Waitsman, stated that the efficiency engineers told her she did not have to do it.13 Wages testified that she saw Hirsh in the latter part of June regarding her unemployment benefits and the subject of her refusal to do special work for Waitsman came up. According to Wages, she asked that Hirsh call Waitsman into the office to face her and that Waitsman at that time denied that she had refused to do special work and also denied that he told Hirsh about it. Wages did not impress the undersigned as a reliable witness. The under- signed credits Waitsman's testimony regarding Wages' refusal to do special work. She was not reemployed. Emma Harvil began work for the Respondent in late February 1947, as a loop tacker. She had 4 years' experience in the clothing industry in various operations such as serging, inspecting, trimming, and tacking. Harvil joined the Union at the first meeting on April 29, became a member of the organizing committee, and in addition to proselytizing for the Union at the plant, talked with employees at their homes after working hours in efforts to get them to join the Union. It is undisputed that Harvil's work was never criticized, but on the contrary Waitsman had complimented her on her work. Harvil testified that on Friday, May 23, Waitsman told her not to report for work on Monday and Tuesday. However, she received a message on Monday night to come in Tuesday. 11 Akins performed the same operation as Seagraves on the opposite line. The Re- spondent ' s plant was set up with two lines of operators facing each other ; the operators on one line performed the same operation as their counterparts on the opposite line. 13 The efficiency engineers were no longer in the employ of the Respondent when this incident occurred. 1392 DECISIONS ,OF NATIONAL LABOR RELATIONS BOARD Reporting as per instructions on Tuesday, she found her machine being repaired and did not do. any work until about 4 p. in. On Wednesday, Harvil did not work because of repairs on her machine. Upon reporting Thursday morning, Waitsman told her that her machine was still down, and to come back Friday. Early Thursday evening, Harvil in the company of two other employees, went to the plant to inquire if they would work the next day, Decoration Day. Harvil saw another employee working at her machine, which was supposed to be under repair, and brought this to Waitsman's attention. On Friday, Harvil was told there was no work for her and to pick up her pay check at 3 p. in. That after- noon Hirsh told Harvil that he had to lay her off because of the lack of material, but hoped to call her back soon. According to Harvil, he emphasized the fact that she was a faithful and loyal worker and that he wanted her back. Harvil's testimony herein is credited. She has not been reemployed. It was the Respondent's contention at the hearing, that Harvil was a temporary employee. Harvil immediately prior to coming to work for the Respondent, was employed by Carl Patat." Hirsh testified that it was his practice to hire Patat's employees for temporary periods and only after he cleared the hiring with Patat and no objection was made. According to Hirsh, he told this to Harvil when she came to work for the Respondent and because she was deemed to be a temporary employee she was not permitted to participate in the employees' insurance plan which was then in effect 15 Hirsh admitted, however, that he did not talk to Harvil about the Respondent's insurance plan at the time she was employed. Harvil denied that she came to work for the Respondent on a temporary basis. She testified that she did not Participate in the insurance plan because she had plenty. Harvil's denial and her further testimony is credited and the under- signed finds that she was not a temporary employee. Elizabeth Jones began work for the Respondent at the request of Assistant Superintendent Roberts in January 1947, putting in back pockets. She had more than 10 years' experience. On May 19, Jones was told by Waitsman that there would be no work for her the remainder of the week. She worked again on May 26, 27, and 28 when she was laid off and has not been reemployed. Jones became a member of the Union on April 29. She was on the organizing com- mittee. Three union meetings during May 1947 were held at her home, and as heretofore found, two of the said meetings were spied on by Roberts. It is undenied and the undersigned finds that Jones' work was praised by Handels- man and Roberts. Jones testified that about a clay after her lay-off she met Waitsman outside the plant and told him she knew she was laid off because she was a member of the Union. Waitsman did not reply directly to this statement, but according to Jones, said the Union was no good. Waitsman, testifying regarding his version of the conversation, stated that he told Jones she was laid off because the plant did not have sufficient woolens ; that as a member of the Amalgamated who always car- ried a card, he would not speak against the Union. Waitsman's testimony in this regard is not credited. Jones impressed the undersigned as a reliable witness and the undersigned finds the conversation between Waitsman and Jones took place substantially as testified to by Jones. Waitsman's remark herein was an 14 Patat's plant was closed down from about January to June 1947, except for short periods of a day or two. 15 The Respondent had a hospitalization insurance policy whereby an employee was covered if he paid part of the premium which was matched by the Respondent. Employees were eligible for the insurance after 30 or 60 days in the Respondent's employ, Hirsh was not certain of the period, and it was voluntary on their part to participate. H & H MANUFACTURING COMPANY, INC. 1393 expression of opinion regarding the'Union and is found by the undersigned to be protected by Section 8 (c). Vaughn Little began work for the Respondent in December 1946, when the' plant was being rearranged prior to actual operation. In January 1947, Little was assigned to the cutting table to spread cloth and remove bundles. Little joined the Union on April 29, attended meetings, and called on employees at their homes with Myrtice Adams, a union organizer. Little was laid off on or about May 23, and was not reemployed. Waitsman testified that he had to talk to Little on several occasions and admonish him to "cut the foolishness." On one of these occasions Little called Waitsman a profane name. Hirsh also testified that lie observed Little fooling around and spoke to him about it several times. Dunahoo, the cutter, testified that he found it necessary to complain to Hirsh about Little's slowness at the cutting table. Although Little testified that his work was never criticized, the undersigned does not credit this testimony and finds that he was admonished for "fooling around" and that his work was criticized. Ida Nickelson worked for the Respondent from January 1947 to June 11, 1947, when she was terminated. She was a trimmer and inspector. Other than join- ing the Union and attending a few meetings, Nickelson was not active. Nickelson testified that she was never told that she was slow or that her work was criticized. Hirsh on the other hand testified that on or about May 22, shortly after the first group of employees was laid off by Waitsman, he talked with Nickelson about her slowness and the fact that he was going to let her off. Nickelson, according to Hirsh, pleaded that she needed the job and asked to be kept on. Hirsh then gave her several more weeks' work. Roberts testified that the quality of Nickelson's inspection work was inferior to employees' who had been laid off and talked with Waitsman about this. Roberts recommended that Nickelson's place be given to Mrs. K. McGee, a laid-off employee who in the opinion of Roberts was a better inspector. Waitsman also testified that Nickelson passed trousers through inspection which were unacceptable. The undersigned credits the testimony of Hirsh, Roberts, and Waitsman herein. It is the Respondent's contention that the lay-offs of the employees above de- scribed were justified by legitimate business reasons. Hirsh testified that in the latter part of April he was advised by the banking firm which was assisting in the financing of the business and in factoring the Respondent's accounts, that the business was in a critical condition financially.16 Hirsh talked with Waitsman about cutting the plant's overhead and running expenses.'' Hirsh went to New York on May 10, to see if additional work could be obtained to keep the plant running and to discuss with Handelsman the continued operation of the plant. When it was found after several days that sufficient work could not be obtained to maintain the plant as it was then operating and because of the financial con- dition, they decided to lay off a number of employees. Thus on May 19, Hirsh spoke to Margaret Kreider, his secretary, and instructed her to tell Waitsman 16 That Respondent was losing money in its operation of the plant was corroborated by a certified public accountant ' s report received in evidence , which showed that for the period from January 1947 to March 31, 1947 , Respondent suffered a net total loss of over $15,000. An oral report of these facts was made by the accountant to Hirsh on or about May 1. 17 It was about this time, as heretofore noted, that Waitsman made a speech to the employees about the Respondent ' s financial situation and reduced most salaries from 521 cents to 45 cents per hour. 877359-50-vol. 87-S9 1394 DECISIONS OF NATIONAL LABOR RELATIONS BOARD to lay off a line of employees 18 Waitsman testified that shortly after the receipt of Hirsh's message, he pulled the time cards of about 22 employees whom he con- sidered surplus as a result of his study of the plant's operations, called them into the office, told them of Hirsh's message and the fact that there was a material shortage in the plant, and that they were being laid off. It is noted that the Re- spondent did not have any seniority standards, nor did it keep any efficiency or production records of its employees. Hirsh returned to the plant from New York en May 22, and after a further talk with Waitsman regarding the number of people laid off, it was decided to lay off another group. During the period from May 22 to June 11, the Respondent laid off 11 employees. A total of 34 employees were laid off from May 2 to June 11. The General Counsel contends that the lay-offs of the above-described employees were discriminatory for the following reasons: (1) timing, the lay-offs took place at the peak of the organizational campaign and shortly after the first union meeting; (2) included in the group of employees laid off were Seagraves and Elizabeth Jones, at whose homes union meetings were held, as well as several members of the organizing committee; (3) a disproportionate number of union people were laid off; (4) there was need for the services of the laid-off employees as evidenced by the fact that the plant worked overtime and new hirings were made; and (5) the nonunion employees laid off were rehired. As found hereinabove, the timing of the lay-offs and inclusions of employees who were members of the organizing committee and at whose homes union meet- ings were held is as contended by the General Counsel. Prior to the lay-offs approximately 66 percent of the employees had signified their intentions to become union members by signing application cards. Of 34 employees laid off, 23 or 67 percent were union, so that it cannot be said that a disproportionate number of union over nonunion employees were included. The pay-roll records in evidence reveal that the amount of overtime worked prior and subsequent to the lay-offs was about the same. Hirsh testified that it was necessary for some of the employees to work overtime after the lay-offs because the plant was operating with a reduced crew and the Respondent found it more economical to work an employee overtime for several hours and pay him the time and one-half rate rather than hire another employee for the entire week and not keep him busy. Hirsh also explained that inevitably some em- ployees are out during a workweek either sick or farming and the other operators get behind in their work and of necessity work overtime to catch up. There are also times when a bundle is not cut or sewed properly and is taken out of the line, put aside and the catching up on these various operations is done either in the evening or on Saturday. Hirsh's testimony herein is credited and the under- signed finds no merit to this contention of the General Counsel. While it is clear that a number of new hirings were made over a period of time subsequent to the lay-offs, the undersigned does not consider this sufficient proof of the fact that there was need for the services of the laid-off employees at that time. It is also true that most of the nonunion employees laid off during the period from May 2 to June 11 were rehired at later dates. In the opinion of the undersigned, the evidence offered by the Respondent proved that it was losing money in its operation of the plant and that for continued existence it was economically necessary to cut its production staff. The testimony of several General Counsel's witnesses also tends to support the contention of 18 The record is not clear as to the number of employees in a line. H & H MANUFACTURING COMPANY, IN C. 1395 the Respondent that there were periods prior to the lay-offs when employees. sat at their machines with no work to do. The undersigned is not unmindful of the evidence that the lay-offs followed closely on the heels of the organizational drive of the Union and its first meet- ing; that included in the lay-offs were the two employees at whose homes union meetings were held, as well as some members of the organizing committee ; that Respondent kept two union meetings under surveillance; and as hereinafter found, several union employees were subsequently denied reemployment for dis- criminatory reasons, whereas most of the laid-off nonunion employees were re- hired. However suggestive of discriminatory motivation these circumstances may be, the undersigned finds, nevertheless, that they are insufficient to overcome the affirmative evidence that the lay-offs were due to the economic reasons asserted by. the Respondent'" Accordingly, the undersigned will recommend that the allegation of the amended complaint that the Resopndent in violation of Section 8 (3) and S (a) (3) of the Act discriminatorily laid off and discharged the 10 employees heretofore described, be dismissed. D. Other interference, restraint, and coercion The organizational campaign of the Union continued after the lay-offs here- inabove described. Zubal testified that about 7: 30 a. in. on May 29, in the presence of Myrtice Adams, another'union organizer, Paul Jones, a resident of Statham, and Harvil who was not working that day, he was in front of the plant distributing leaflets 20 to employees reporting for work. As Waitsman ap- proached the entrance, Zubal gave him a leaflet. Waitsman, according to Zubal, asked, "Who are you?" Zubal identified himself as a representative of the Union, whereupon Waitsman said he was an Amalgamated member for over 30 years, that he was acquainted with a number of the Union's officers, that he knew more about the Amalgamated than did Zubal, and that after a 30-year membership "he found out it was no good." Zubal then asked Waitsman why the Respondent sewed union labels in its garments, if the Union was no good. Waitsman denied that the Respondent did, whereupon Zubal showed Waitsman a union label that he had obtained from one of the employees. After some further argument about the union label, Waitsman entered the plant. About a month later, Zubal was again distributing leaflets in front of the plant to the employees as they reported for work and handed one to Waitsman. Zubal testified that as Waitsman entered the plant, he turned around to Zubal and told him to get away from there, that he was causing trouble. Waitsman, testifying regarding the above-noted incidents with Zubal, stated that Zubal gave him a leaflet in front of the building and there was no discus- sion about the Union. Upon further questioning, Waitsman admitted that they talked about his union membership and nothing else. Waitsman denied that union labels were mentioned. Waitsman also testified that he politely told Zubal to get off the steps of the building and let the employees go into the build- ing. Waitsman's testimony on these matters was evasive and contradictory and is not credited. The undersigned credits the testimony of Zubal and finds that the incidents described above took place substantially as testified to by Zubal. 19 See Capital Candy Company, 71 NLRB 447; Hays Corporation, 64 NLRB 406; Goldblatt Bros ., Inc., 77 NLRB 1262; Loudonville Milling Co., 79 NLRB 304. 1° The leaflet contained an announcement of a union meeting scheduled for that night at the American Legion Hall and also the fact that the Union had filed with the Board a petition for an election among the Respondent 's employees. 1396 DECISIONS OF NATIONAL LABOR RELATIONS BOARD With regard to Waitsman's statement that the Union was no good, the under- signed finds that such statement was an expression of opinion protected by Sec- tion 8 (c) of the Act. The undersigned further finds that Waitsman's action when Zubal was distributing leaflets on the second occasion in front of Respondent's plant was designed to interfere with and discourage union activity and not for any legitimate purpose. See General Chemical Company, 53 NLRB 1457. Velma Stapp, a former employee laid off on May 23, whose job was tacking union-made tickets on garments, testified that 2 to 3 weeks after her lay-off she met Waitsman on a street in Statham and inquired if the Respondent was hiring any help. Waitsman, according to Stapp, said, "We are not hiring any more that is in favor of the Union." Stapp further testified that she did not remember all of Hirsh's speech to the employees, but did recall that he said he did not have to run the plant, that he could go home the rest of the year, and that he would shut the plant down if the Union was successful. Waitsman denied that he ever had any conversation with Stapp and further denied that she asked him for a job. His denial is not credited. The under- signed is of the opinion that Stapp misconstrued Hirsh's remarks about closed plants made in his speech to the employees. Despite this, the undersigned finds that Stapp's credibility has been unimpaired and further finds that Waits- man made the statement attributed to him by Stapp, particularly, since statements of a similar nature were made by Waitsman to others. Belle Meeler testified that in June 1947, Waitsman in the company of Ruth and Watt Gordon called at her home in an effort to get her to work as a side reamer for the Respondent. Meeler stated that she did not care to work in any plant where there was a disturbance going on and "would rather not get mixed up in it." Waitsman told Meeler "that there was not going to be any union at the plant." When Meeler remarked that "a lot was going on" and that she pre- ferred to wait, Waitsman said that "before they would have one [Union] the plant would not run." Although Waitsman made several more calls on Meeler, she did not take a job with the Respondent. . Waitsman admitted that he called at Meeler's home several times. He testi- fied however that he saw her only once and that was either in August or Septem- ber when he was accompanied by Ruth and Watt Gordon. He denied that there was any mention made of the Union in their conversation. Watt Gordon testified that he talked to Waitsman about Meeler after Ernestine Daily, a side seamer in the Respondent's employ, had quit. He, his wife, and Waitsman drove clown to Meeler's house in his car in the "late summer" of 1947 to get Meeler to come to work for the Respondent. The Respondent's pay-roll records in evidence reveal that Daily was employed until the week ending Sep- tember 27, 1947. Gordon also testified that he heard Waitsman's conversation with Meeler, that Waitsman merely talked about the side-seaming job and no mention was made of the Union. Ruth Gordon testified that the visit to Meeler was made after Daily quit the Respondent's employ. The testimony of Ruth and Watt Gordon and Waitsman herein was not con- vincing. Ruth and Watt Gordon in their testimony contradicted Waitsman as to the date when they visited Meeler. Meeler was a straight-forward, reliable witness and her testimony is accepted. The undersigned finds that the conver- sation between Waitsman and Meeler took place substantially as testified to by Meeler. It is further found that Waitsman's remarks to Meeler violated Sec- tion 8 (1) and 8 (a) (1) of the act. H & H MANUFACTURING COMPANY, INC. 1397 Elizabeth Wages, a former employee whose lay-off was related hereinabove, testified that she saw Hirsh in his office in the latter part of June about the fact that she was not yet receiving unemployment compensation. After talking about this as well as several other matters, Hirsh, according to Wages, said that be had been advised that Wages had been working against him and for the Union, that the Union consisted of Communists, and was not going to have his plant. Hirsh, testifying regarding his version of the conversation, stated that Wages and her husband came into the plant on July 24. Hirsh's attorney, Mortimer Freeman, was present. Wages asked Hirsh to change a statement he had given the Georgia State Employment Service that Wages had refused to do some special work in the plant, in order to make her eligible to draw unemployment benefits. Hirsh refused, but did advise Wages to have the Employment Service write to him directly and he would reconsider. Immediately after this conversa- tion the Wages left the plant. Hirsh testified he saw Wages only once there- after, on December 3, 1947, when she came into the plant seeking a job and was told there were no openings. Wages did not remember calling at the plant with her husband when Freeman was present. She admitted, however, that she was in to see Hirsh about un- employment compensation and that Freeman was there. The undersigned here- tofore has not credited Wages' testimony, and does not credit her testimony herein. Early in June 1947, Harvil, who was no longer employed by the Respondent but was still active in the Union, visited her sister at the Statham Pants Company and was asked by Patat how the Union was progressing. Harvil answered "better every day." Patat told Harvil that if the Union was successful at Hirsh's plant it would be closed and none of the girls holding union cards would get a job in any of the shops in Winder 21 Patat also said that he would close his shop if the Union came in and that Hirsh told him that since he had gotten rid of some of the union people he was getting better production. It is the contention of the General Counsel that when Patat talked to the employees in the Respondent's plant on a previous occasion, he was made the Respondent's agent for the purpose of talking to employees. Further, that in view of Respondent's original request, Patat became and apparently remained Respondent's agent when he talked with Respondent's employees. There is no reason shown by the evidence for anyone to have assumed, nor for the undersigned to find that Patat's agency was continuous and still existed when he made his remarks in a casual conversation with Harvil at his own plant, more than a month after his only talk with Respondent's employees. The undersigned finds that Patat's agency did not continue and his remarks to Harvil herein are not attributable to the Respondent. In August 1947, Nancy Patton, referred to on the Respondent's pay roll as Willie Patton,.was referred to the Respondent for a job by the Georgia State Employment Service. Patton testified without contradiction that she was in- terviewed by Hirsh and told that ". . . there is a union trying to come in here and we are not in favor of it." Before Patton started working for the Respond- ent she signed a statement whereby she agreed that if her services were satis- factory she would be retained, otherwise her employment was only temporary. Patton worked cording back pockets from about August 5 to September 12, "Winder is several miles from Statham and a few pants manufacturing plants are located there. 1398 DECISIONS OF NATIONAL LABOR RELATIONS BOARD when she quit of her own volition. The undersigned finds that Hirsh' s remark to Patton is an expression of opinion protected by Section 8 (c) of the Act. On June 30, 1947, there was received at the Tenth Regional Office of the Board a petition bearing the signatures of 38 Respondent employees under the following heading : We the undersigned employees of the H & H Manufacturing Co., Inc. Statham, Georgia, wish to express our desire to the National Labor Rela- tions Board. We do not want a union in our plant. Although, many of us may have signed with the union, we did so, under such pressure that we really had no chance to consider what we were doing. Our plant has been upset during these last two months because of mis- representation by the union. This petition is voluntarily signed by the undersigned employees. Grace Coker, an employee of the Respondent, testified that she and two other employees talked with Margaret Kreider in the Respondent's office about the contents of the petition and Kreider typed it using her own language. Coker testified further that the petition was passed around the plant during working hours and that Waitsman and Roberts were moving about the plant when it was circulated. Several other Respondent's witnesses testified that the petition was passed up and down the line and signed by them at their machines. There is no evidence that its circulation was kept secret. Hirsh testified that the petition could have been drafted in his office, but he was not certain of it. He testified further that he did not remember having seen it before receiving a copy in the mail on or about June 27, 1947. Hirsh's testimony in this regard was evasive and is not crediteFl. The undersigned finds that the petition was drafted in the Respondent's office by the office manager, and circulated in the plant during working hours in the presence of and with the knowledge of Respondent' s supervisors in violation of Section 8 (I) and 8 (a) (1) of the Act. In addition to the above-noted petition, the Tenth Regional Office of the Board received several individually signed letters dated June 23, 1947, from Respondent's employees as follows : At one time I signed a union card thinking I would like to join up with the C. I. O. I have reconsidered and want to withdraw my name from this list. I prefer to go along with the H & H Manufacturing Co., under its present management and the way it is operated. Hirsh testified that employee Nettie Coker came into his office, told him she wanted to get out of the Union and asked him to write something for her which would accomplish this. Hirsh dictated the above letter to Kreider and had a number of carbon copies made which he kept in his desk. Coker signed it in the office and returned it to Hirsh. As other employees came in and made requests similar to Coker's, they were handed the letter, which they signed and left in Hirsh's office. Respondent's counsel admitted during oral argument that Respondent's activi- ties in connection with the above-noted petition and letters to withdraw from the Union were violative of Section 8 (1) and 8 (a) (1) of the Act. The, undersigned so finds. H & H MANUFACTURING COMPANY, INC . 1399 E. The refusals to reemploy The amended complaint alleges that the Respondent failed and refused to recall, reinstate, and employ the 10 employees hereinabove described, because of their membership in and activities on behalf of the Union, and because they engaged in concerted activities with other employees for the purposes of collec- tive bargaining and other mutual aid and protection. It is the contention of the Respondent that because of the consolidation and elimination of certain operations after the lay-offs, as testified to by Waitsman,9 it did not have jobs for some of the people allegedly discriminatorily refused reemployment, and as to the others, it did not rehire them because of criticism of their work, refusal to do work, and profane name calling of Waitsman. It has been found (1) Warren's work was criticized on a number of occasions, and because of. complaints regarding his work at the cutting table he was trans- ferred to pressing: (2) Wages refused to do special work assigned to her by Waitsman; (3) Little was admonished to "cut the foolishness," his work at the cutting table was criticized, and he called Waitsman a profane name; and (4) Nickelson was slow and passed trousers through inspection which were unaccept- able ; furthermore, she was replaced by a more competent employee who had previously been laid off. In view of these findings, it appears and the under- signed finds that Respondent's failure to reemploy Warren, Wages, Little, and Nickelson was for just cause and not discriminatory. Camp was laid off because of the lack of mechanical work in the plant. Camp admitted in a written statement dated July 22, 1947, given voluntarily to the Respondent that there was not sufficient work in the plant for two machinists. Although at one stage in his testimony Camp stated that in a conversation with Waitsman when he applied for reemployment, he asked for any type job, it appears clear that on a different occasion he said that he did not care to "mess up" his GI mechanical training and would like to finish it. The record reveals that subsequent to the lay-offs of the full-fledged machinist and Camp, who was only a helper and trainee, the Respondent did not have a machinist in its employ until the week of July 26, and at no time thereafter did it hire a machinist's helper. In view of the above the undersigned finds that Respondent's failure to reem- ploy Camp was for the reason that it did not have available work in Camp's held and not for discriminatory reasons. The situation with respect to the refusal to reemploy Minnie Lou Jones, Sea- graves, Sims, Harvil, and Elizabeth Jones is much different than that set forth above. Here we are confronted with employees whose work was never criticized, who had learned and become accustomed to the methods and systems in use at the Respondent's plant, all of whom with the exception of Harvil having worked there practically from the day the Respondent started operating and having had previous experience in the same industry ; in addition they were some of the most active in the Union.` ® Waitsman testified that 56 pressing and sewing operations were consolidated to 31 after the lay-offs, with a proportionate decrease in the personnel required for such operations. 23 As found hereinabove Harvil was a member of the organizing committee and was one of the most active union adherents in the plant . In addition the record reveals and the undersigned finds that after her lay-off she assisted Zubal in the distribution of union leaflets outside of the plant . Union meetings were held at the homes of Seagraves and Elizabeth Jones. Although Minnie Lou Jones and Sims were not as outstanding in union activities as the others , the record nevertheless reveals that they became members early in the campaign and proselytized in its behalf. 1400 DECISIONS OF NATIONAL LABOR RELATIONS BOARD Ostensibly these experienced employees were not rehired because there were ,no jobs for them. But what does the record reveal in this regard? Of 34 em- ployees originally laid off, 11 were nonunion . Four of these nonunion employees, namely Reba Owens, Claudia Dial, Belle Davis, and Mary L. Wright, were former employees of Patat, who when laid off on June 2, returned to work there. Of the 7 remaining nonunion employees, 6 were reinstated as follows: Alma Perry, who incidentally signed the withdrawal petition from the Union, worked the 'week of June 14 through June 21, and returned to steady work again on July 12; William Dooley was given steady employment from July 12 on; Laurene Hall .who was in the May 19 lay-off, worked on May 21 and 22 and again from July 12 regularly thereafter ; Lillian Davis, included in the lay-off of May 19, worked on May 20 and 21, was out from the latter date until the week of August 30, and worked steadily thereafter ; Lunnie Hunter, who also signed the withdrawal petition from the Union, although included in the May 19 lay-off, worked on May 20 and 21, was out May 22, worked May 23, out May 26, worked May 27, 28, and 29, out May 30 and worked regularly from June 2; Daphine Parker, laid off on May 19, was reinstated to regular employment on May 23 ; Dorothy Rob- erts, wife of Assistant Superintendent Roberts, laid off May 19, returned to the plant the week of August 23, and worked steadily thereafter. Only 4 of the 23 union employees were reinstated to permanent employment after the lay-offs 2' It is significant that 3 of these employees signed letters withdrawing from the Union. In addition to the reinstatement of old employees as above noted, Respondent's pay-roll records reveal that 26 new hirings for both steady and temporary em- ployment' were made beginning shortly after the lay-offs as follows: during the month of June, 5 were hired; 5 in July ; 8 in August ; 3 in September ; 3 in October ; and 2 in November. Only 1 of the 26 new employees was a union member. Although there is testimony that several of the new employees were taken on to perform operations which had not existed prior to the lay-offs and which required special experience,'6 it is clear from Hirsh's testimony that if a sewing machine operator has "common sense" and is given the proper training, he can attain the skill to enable him to do a good job at any operation. Moreover, Hirsh testified that the Respondent did not have a defined policy regarding the hiring of ony experienced operators. He stated that "the company policy is that if we think we can use a particular operator, whether she is green or moderately experienced or experienced, if we can use the operator then we will try to fit her into the organization." Thus, Willie Patton, who began her employment with the Respondent in August, was hired by Hirsh, not because she had any special ability or skill, but merely on her statement that she was a good operator. It was also the Respondent's practice to transfer employees from one operation to another depending upon where their services were most needed. The Respondent used various methods to augment its staff. Hirsh and Roberts testified that sometimes word is sent by an employee working in the. plant who lives near the person sought, or else a post card might be sent. Waits- man testified that in July he sent employee Lucille Boyd to Minnie Lou Jones' 24 Ethelene Long returned to work May 27, Byrd Hammond on June 3, Nettie Coker on June 6 , and Grace Coker on June 6. 2s Sixteen worked steadily , and 10 for periods from 1 week to 3 months. 26 The record is not clear as to these new operations but it does not appear that there were more than three . Nor does the record indicate the degree of experience of the new employees hired to fill such jobs. H & H MANUFACTURING COMPANY, INC. 1401 home to tell her to come back to work. Boyd corroborated Waitsman's testi- mony in this regard. Boyd stated that because of the bad condition of the roads she never delivered the message to Jones. Minnie Lou Jones never applied for reemployment subsequent to her lay-off. Elizabeth Jones, Harvil, Seagraves, and Sims were never sent for and were told on each of the occasions when they applied for reemployment n that there was no work for them. Under all the circumstances, and in view of the Respondent's antiunion state- ments subsequent to the lay-offs, the union activities of Harvil, Seagraves, Sims, and Elizabeth Jones, the fact as hereinabove found that the work of the afore- said employees was never criticized, and finally, the addition to the staff of new employees and the reemployment of old nonunion employees, the undersigned is persuaded and finds that Respondent has discriminatorily refused to reemploy Harvil, Seagraves, Sims, and Elizabeth Jones because of their union activities, thereby discriminating with regard to- their hire and tenure of employment, and thereby interfering with, restraining, and coercing its employees in the exercise of the rights guaranteed by Section 7 of the Act. Since Minnie Lou Jones ad- mittedly never applied for reemployment the allegation in the complaint with respect to her will be dismissed. The question arises as to the dates of the discrimination against Harvil, Sea- graves, Sims, and Elizabeth Jones. Since in the present state of the record the undersigned cannot precisely determine which of the employees, in the absence of discrimination, would have been reemployed when the Respondent began its reinstatements and new hirings, this matter may be ascertained at the com- pliance stage. IV. THE EFFECT OF THE UNFAIR LABOR PRACTICES UPON COMMERCE The activities of the Respondent set forth in Section III, above, occurring in connection with its operations described in Section I, above, have a close, inti- mate, and substantial relation to trade, traffic, and commerce among the several States and tend to lead to labor disputes burdening and obstructing commerce and the free flow of commerce. V. THE REMEDY Having found that Respondent has engaged in unfair labor practices affecting commerce, it will be recommended that it cease and desist therefrom and take certain affirmative action designed to effectuate the policies of the Act. Having found that Respondent has discriminatorily refused to reemploy Emma Harvil, Sallie Seagraves, Eunice Bell Sims, and Elizabeth Jones because of their union and concerted activities, the undersigned will recommend that Respondent offer each of the said employees immediate and full reinstatement to her former or substantially equivalent position 28 without prejudice to her seniority or other rights and privileges. It is further recommended that all found to be discrim- inated against be made whole for any loss of pay by reason of Respondent's discrimination, by payment to each of a sum of money equal to that which she zr Elizabeth Jones applied for reemployment 2 weeks after her lay-off, and again in July and August. Harvil applied in June and December, Sims applied in May and August. Seagraves applied twice after her lay-off, the last time in July. 21 In accordance with the Board 's consistent interpretation of the term , the expression "former or substantially equivalent position " is intended to mean "former position wherever possible , but if such position is no longer in existence , then to a substantially equivalent position ." See The Chase National Bank of the City of New York, San Juan, Puerto Rico, Branch, 65 NLRB 827. 1402 DECISIONS OF NATIONAL LABOR RELATIONS BOARD would have earned from the date of the discrimination against her to the date of the offer of reinstatement less their respective net earnings 2B during that period. Respondent, in its refusal to reemploy those named above resorted to the most effective means at its disposal to defeat self-organization. As the Supreme Court said in the Phelps Dodge case,'0 such "Discrimination against union labor in the hiring of men is a dam to self-organization at the source of supply." Concur- rently with such discriminatory treatment Respondent made threats that it would not run the plant if the Union was successful. Prior thereto it spied upon union meetings. The undersigned is convinced that the unfair labor practices found herein reflect on the part of Respondent "an attitude of opposition to the purposes of the Act to protect the rights of employees generally," n and the consequent likelihood of Respondent resorting to other acts of interference, restraint, and coercion, in violation of the Act. The undersigned will therefore recommend that Respondent be ordered to cease and desist from in any manner infringing upon the rights of employees as guaranteed by Section 7 of the Act. Upon the basis of the foregoing findings of fact and of the entire record in this proceeding, the undersigned makes the following : CONCLUSIONS OF LAw 1. Amalgamated Clothing Workers of America, affiliated with the Congress of Industrial Organizations , is a.labor organization within the meaning of Section 2 (5) of the Act. 2. By discriminating in regard to the hire and tenure of employment of Emma Harvil, Sallie Seagraves , Eunice Bell Sims, and Elizabeth Jones, thereby dis- couraging membership in a labor organization , Respondent has engaged in and is engaging in unfair labor practices within the meaning of Section 8 (3) and 8 (a) (3) of the Act. 3. By interfering with, restraining , and coercing its employees in the exercise of the rights guaranteed in Section 7 of the Act , to the extent herein found to be violative of the Act , Respondent has'engaged in and is engaging in unfair labor practices within the meaning of Section 8 ( 1) and 8 ( a) (1) of the Act. 4. The aforesaid unfair labor practices are unfair labor practices affecting commerce within the meaning of Section 2 (6) and ( 7) of the Act. 5. The Respondent has not engaged in the unfair labor practices alleged in the amended complaint of ( 1) discriminating in regard to the hire and tenure of employment of Hillman Camp, J. D: Warren, Elizabeth Wages, Vaughn Little, Ida Nickelson , and Minnie Lou Jones ; ( 2) interfering with, restraining, or co- ercing its employees , in the exercise of the rights guaranteed in the Act , except by the acts and conduct herein found to have been violative. RECOMMENDATIONS Upon the basis of the.above findings of fact and conclusions of law, and of the entire record of this proceeding, the undersigned recommends that H & H Manu-. facturing Company, Inc., its officers, agents, successors, and assigns, shall : 1. Cease and desist from: (a) Discouraging membership in Amalgamated Clothing Workers of America, CIO, or any other labor organization of its employees, by discriminatorily refus- ¢9 Crossett Lumber Co ., 8 NLRB 440 , 497-498. 20 Phelps Dodge Corp. v. N. L. R. B., 313 U. S. 177, 185. 91 May Department Stores v. N . L. R. B., 326 U. S. 376. H & H MANUFACTURING COMPANY, INC . 1403 ing to reemploy any of its employees, or by discriminating in any other manner, with regard to their hire and tenure of employment or any term or condition of employment ; (b) In any other manner interfering with, restraining, or coercing its em- ployees in the exercise of the right to self-organization, to join or assist Amal- gamated Clothing Workers of America, CIO, or any other labor organization, to bargain collectively through representatives of their own choosing, and to engage. in concerted activities for the purpose of collective bargaining or other mutual. aid or protection as guaranteed in Section 7 of the Act. 2. Take the following affirmative action which the undersigned finds will effectuate the policies of the Act : (a) Offer to Emma Harvil, Sallie Seagraves, Eunice Bell Sims, and Elizabeth Jones immediate and full reinstatement to their former or substantially equiva- lent positions, without prejudice to their seniority and other rights and privi- leges and make them whole for any loss of pay suffered by reason of Respond- ent's discrimination against them in the manner set forth in the section entitled "The remedy" above; (b) Post at its plant in Statham, Georgia, copies of the notice attached hereto and marked Appendix A. Copies of said notice, to be furnished by the Regional Director for the Tenth Region, after being duly signed by representatives of the Respondent shall be posted by Respondent immediately upon receipt thereof and maintained by it for a period of sixty (60) consecutive days thereafter in con- spicuous places, including all places where notices to employees customarily are posted. Reasonable steps shall be taken by Respondent to insure that said notices are not altered, defaced, or covered by other material ; and (c) Notify the Regional Director for the Tenth Region (Atlanta, Georgia), in writing within twenty (20) days from the receipt of this Intermediate Report what steps Respondent has taken to comply herewith. It is further recommended that the amended complaint be dismissed insofar as it alleges that Respondent discriminated in regard to the hire and tenure of employment of Hillman Camp, J. D. Warren, Elizabeth Wages, Vaughn Little, Ida Nickelson, and Minnie Lou Jones, and interfered with, restrained, and coerced its employees by any acts or conduct other than those found herein to have been committed in violation of the Act. As provided in Section 203.46 of the Rules and Regulations of the National Labor Relations Board-Series 5, as amended August 18, 1948, any party may, within twenty (20) days from the date of service of the order transferring the case to the Board, pursuant to Section 203.45 of said Rules and Regulations, file with the Board, Washington 25, D. C., an original and six copies of a statement in writing setting forth such exceptions to the Intermediate Report or to any other part of the record or proceeding (including rulings upon all motions or objections) as he relies upon, together with the original and six copies of a, brief in support thereof ; and any party may, within the same period, file an original and six copies of a brief in support of the Intermediate Report. Im- mediately upon the filing of such statement of exceptions and/or briefs, the party filing the same shall serve a copy upon each of the other parties. Statements of exceptions and briefs shall designate by precise citation the portions of the record relied upon and shall be legibly printed or mimeographed, and if mimeographed shall be double spaced. Proof of service on the other parties of all papers filed with the Board shall be promptly made as required by Section 203.85. As fur- ther provided in said Section 203.46, should any party desire permission to argue 1404 DECISIONS OF NATIONAL LABOR RELATIONS BOARD orally before the Board , request therefor must be made in writing to the Board within. ten (10 ) days from the date of service of the order transferring the case to the Board. In the event no Statement of Exceptions is filed as provided by the aforesaid Rules and Regulations , the findings , conclusions, recommendations , and recom- mended order herein contained shall, as provided in Section 203.48 of said 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. Dated at Washington , D. C., this 20th day of June 1949. SIDNEY LINDNER, Trial Examiner. APPENDIX A NOTICE TO ALL EMPLOYEES Pursuant to the recommendations of a Trial Examiner of the National Labor Relations Board, and in order to effectuate the policies of the National Labor Relations Act, we hereby notify our employees that : WE WILL NOT discourage membership in AMALGAMATED CLOTHING WORKERS .OF AMERICA , CIO, or any other labor organization of our employees by refusing to reemploy them or in any other manner discriminating against them in regard to their tenure or any term or condition of employment. WE WILL NOT in any like or similar manner interfere with, restrain, or coerce our employees in the exercise of their right to self -organization, to form labor organizations , to bargain collectively through representatives of their own choosing and to engage in concerted activities for the purpose of collective bargaining or other mutual aid and protection as guaranteed in Section 7 of the National Labor Relations Act. WE WILL OFFER to the employees named below immediate and full reinstate- ment to their former or substantially equivalent positions without prejudice to any seniority or other rights and privileges previously enjoyed, and make them whole for any loss of pay suffered as a result of the discrimination. Emma Harvil Eunice Bell Sims Sallie Seagraves Elizabeth Jones H & H MANUFACTURING COMPANY, INC., Employer. By ------------------------------------------- (Representative ) (Title) Dated-------------------- This notice must remain posted for 60 days from the date hereof , and must not be altered , defaced, or covered by any other material. Copy with citationCopy as parenthetical citation