Hawaii Teamsters and Allied Workers UnionDownload PDFNational Labor Relations Board - Board DecisionsMar 30, 1955111 N.L.R.B. 1220 (N.L.R.B. 1955) Copy Citation 1220 DECISIONS OF NATIONAL LABOR RELATIONS BOARD Tennessee , and other points within that State. The employer there had 22 employees, used 15 buses, and had a gross annual revenue exceeding $ 100,000 . His direct interstate imports totalled $37,500 in 1 year . In asserting jurisdiction , the Board said: Our experience has shown that public utilities , including public transit systems of the type here involved , have such an important impact on commerce as to warrant our taking jurisdiction over all cases involving such enterprises, where they are engaged in commerce or in operations affecting commerce, subject only to the rule of de minimis.lo The principle enunciated in the Local Transit case was followed in several later cases involving local transit systems.ll This was the posture of the law at the time of the hearing in the instant matter . Under this test, the present action might be entertained . However , since the close of the hearing in the instant case, the Board refused to take jurisdiction over a public bus transportation system in San Jose City Lines, Inc., 106 NLRB 1167 . The Board 's decision in that case discloses no under- lying facts pertaining to the jurisdictional question . The Board there stated: The Employer operates a public bus transportation system in San Jose, Califor- nia, and the immediate surrounding area. However, the record fails to estab- lish to our satisfaction that these operations , as such , affect commerce within the meaning of the Act . Furthermore , although there is some evidence that the Employer is a subsidiary of an enterprise incorporated and operating in another State , we do not believe that the record establishes that the Employer is part of a multistate transit system . Upon the entire record herein, we find that the Employer is not engaged in commerce , or in activities affecting com- merce, within the meaning of the Act. The San Jose case, being the most recent pronouncement of the Board on the sub- ject , is controlling here. Accordingly , I find that the Respondent herein is not en- gaged in commerce , or in activities affecting commerce, within the meaning of the Act. One other point remains to be disposed of. The General Counsel urges that the Respondent 's purchases from out of State "approaches the $500,000 figure required for the assertion of jurisdiction on this basis alone." But, as the tables set forth above clearly indicate , in no year has the total of out-of-State and in-State purchases reached the $500,000 minimum set up by the Board for direct out-of-State purchases.12 Thus, jurisdiction cannot be bottomed upon the Respondent's purchases.13 [Recommendations omitted from publication.] IU Local Transit Lines, 91 NLRB 623, 624. u Gastonia Transit Company, 91 NLRB 894; Louisville Transit Co., 94 NLRB 20; Columbus - Celina Coach Lines, at al ., 97 NLRB 777; and Texas Electric Bus Lines, 100 NLRB 67. 12 I deem it unnecessary to decide whether, as the General Counsel contends , the in-State purchase of gasoline , fuel, and lubricants should be considered as sndirect out-of-State purchases. Is Federal Dairy Co., Inc., 91 NLRB 638 ; and Florida Mattress Factory, Inc ., of Tampa 91 NLRB 772. HAWAII TEAMSTERS AND ALLIED WORKERS UNION, LOCAL 996 and OAKLEY A. DAHLBERG AND RUTH N. DAHLBERG, CO-PARTNERS D/B/A WAIALUA DAIRY. Case No. 37-CC-3. March 30, 1955 Decision and Order On December 22, 1954 , Trial Examiner David F. Doyle issued his Intermediate Report in the above-entitled proceeding finding that the Respondent had engaged in certain unfair labor practices and recom- mending that it cease and desist therefrom and take certain affirmative action, as set forth in the copy of the Intermediate Report attached 111 NLRB No. 196. HAWAII TEAMSTERS AND ALLIED WORKERS UNION 1221 hereto. Thereafter, the Respondent filed exceptions to the Interme- diate Report and a supporting brief. The Board has reviewed the rulings of the Trial Examiner made at the hearing and finds that no prejudicial error was committed. The rulings are hereby affirmed. The Board has considered the Interme- diate Report, the exceptions and brief, and the entire record in the case and hereby adopts the findings, conclusions, and recommendations of the Trial Examiner.' Order Upon the entire record in this case, and pursuant to Section 10 (c) of the National Labor Relations Act, the National Labor Relations Board hereby orders that the Respondent, Hawaii Teamsters and Al- lied Workers Union, Local 996, and its officers, representatives, and agents, shall: 1. Cease and desist from inducing and encouraging the employees of any employer to engage in a strike or a concerted refusal in the course of their employment to perform services for their employer, where an object thereof is to force or require any employer or other person to cease using, selling, handling, transporting, or otherwise dealing in the products of Waialua Dairy, or to cease doing business with Waialua Dairy. 2. Take the following affirmative action, which the Board finds will effectuate the policies of the Act. (a) Post at its business offices on the Island of Oahu, Territory of Hawaii, copies of the notice attached to the Intermediate Report marked "Appendix A." 2 Copies of said notice, to be furnished by the Regional Director for the Twentieth Region, shall, after being duly signed by official representatives of the Union, be posted by them im- mediately upon receipt thereof, and maintained by them for sixty (60) consecutive days thereafter in conspicuous places, including all places where notices to members are customarily posted. Reasonable steps shall be taken by the Union to insure that said notices are not altered, defaced, or covered by any other material. (b) Notify the said Regional Director, in writing, within ten (10) days from the date of this Order, what steps it has taken to comply herewith. 1 In asserting jurisdiction herein, we rely upon the fact that , as the record shows, Dairy- men's Association , Ltd, annually receives at its milk plant in Honolulu shipments from points outside Hawaii valued at more than $ 500,000 Jonesboro Grain Drying Coopera- tive, 110 NLRB 481 ; Cantera Providencia, 111 NLRB 848. Member Murdock finds it unnecessary to adopt the Trial Examiner 's finding that, as- suming arguendo , the admissibility of parol evidence to vary the terms of the contract be- tween the distributors and the Union , a Conway's type clause did not afford the distribu- tors' employees the right to refrain from handling goods of a struck employer. 2 This notice shall be amended by substituting for the words "The Recommendations of a Trial Examiner" in the caption thereof, the words "A Decision and Order." In the event that this Order is enforced by decree of a United States Court of Appeals , there shall be substituted for the words "Pursuant to a Decision and Order " the words "Pursuant to a Decree of the United States Court of Appeals , Enforcing an Order." 1222 DECISIONS OF NATIONAL LABOR RELATIONS BOARD Intermediate Report and Recommended Order STATEMENT OF THE CASE This proceeding brought under Section 10 (b) of the National Labor Relations Act, as amended, herein called the Act, was heard at Honolulu, Territory of Hawaii, on August 10-12, 1954, pursuant to due notice to all parties. The complaint, dated July 7, 1954, issued by the General Counsel of the National Labor Relations Board and duly served on the Respondent, was based on charges duly filed by the above- named Charging Parties. It alleged in substance that the above-named Union, on or about March 9, 1954, by its representatives, had engaged in a course of conduct, designed to induce and encourage, and actually inducing and encouraging, the em- ployees of Dairymen's Association, Ltd.,' to engage in a strike or concerted refusal in the course of their employment to handle, process, or work on certain materials or commodities, with an object of forcing or requiring the aforesaid Association to cease using, selling , handling, transporting, or otherwise dealing in the products of, or to cease doing business with, the Waialua Dairy, and thereby had engaged in unfair labor practices within the meaning of Section 8 (b) (4) (A) and Section 2 (6) and (7) of the Act. The Union, in its duly filed answer admitted that it was a labor organization, as defined by the Act, and that on March 9, 1954, a picket of the Union appeared in the immediate vicinity of a truck owned by the Waialua Dairy, and that the picket carried a sign which indicated that a labor dispute existed between Waialua Dairy and the Union, and that at that time the truck was in the vicinity of the plant of the Association in the city of Honolulu, Hawaii. The answer denied all other allega- tions of the complaint and that the Union had committed any unfair labor practices. All parties were represented at the hearing, were afforded a full opportunity to be heard, to examine and cross-examine witnesses, to introduce evidence bearing on the issues, to argue the issues orally upon the record and to file briefs and proposed findings. Oral argument was presented by the General Counsel, and counsel for the Union filed a brief. Upon the entire record in the case, and from my observation of the witnesses, I make the following: FINDINGS OF FACT 1. THE BUSINESS OPERATIONS OF THE COMPANIES A. Waialua Dairy ' It is undisputed that Oakley A. Dahlberg and Ruth N. Dahlberg, who are husband and wife, as copartners conduct a business in the Territory of Hawaii under the as- sumed name of Waialua Dairy. The enterprise is devoted to the production and sale of milk. The husband described the operations of the partnership, stating that it owned a ranch at Hana, which is not involved in this proceeding, and a dairy farm near the town of Waialua, which is located in an agricultural area approxi- mately 30 miles from Honolulu on the island of Oahu, Territory of Hawaii. The dairy farm is comprised of 18 acres on which the partners have approximately 200 dairy cows, which produce approximately 2,200-2,400 quarts of milk per day. The acreage of the dairy farm does not afford pasturage for the animals; they are- pen-fed from grass which is cut by employees of the dairy. On March 9, 1954, the Dahlbergs had approximately 14 employees. Of this number, two men were engaged in fixing fences and doing odd jobs; the other employees were grass cutters, engaged' in cutting feed for the animals, or cow milkers. It was likewise undisputed that prior to August 21, 1953, Waialua Dairy had equipment and employees engaged in the processing of milk and the delivery of milk to its customers. On August 21, 1953, Waialua Dairy and Dairymen's Associa- tion, Ltd , executed a contract entitled, Dairymen's Association Milk Pool Producer's Contract. By this contract, Waialua agreed to sell and deliver to Dairymen's at agreed prices, all milk produced, and Dairymen's agreed to pay specified prices for the milk, to pool the milk with that of other producers, and to process and dispose of the whole, either by retail sale to its customers, or by consumption of the milk in its manufacturing processes. Incidental to the execution of this contract, Dairy- men's purchased from Waialua all equipment previously used in the processing and distribution of milk, and absorbed into its employment those employees of Waialua 1 This corporation is hereafter referred to as Dairymen's or the Association ; the partner- ship of the Dahlbergs d/b/a Waialua Dairy, is hereafter referred to as Waialua ; and the partners are referred to as the Dahlbergs. HAWAII TEAMSTERS AND ALLIED WORKERS UNION 1223 previously engaged in processing and distributing milk. Thereafter, Waialua had employees engaged in only three capacities, in grass cutting, milking, and odd jobs. B. Dairymen's Association, Ltd. It is likewise undisputed that Dairymen's Association, Ltd., is a corporation or- ganized under the laws of the Territory of Hawaii, which is engaged in the business of processing and distributing milk and milk products. George Cannon, vice presi- dent and manager of the milk division of Dairymen's, testified as to the operations of that corporation. He said that Dairymen's operates a milk plant at Sheridan and Elm Streets, Honolulu, which is composed of a group of approximately eight build- ings, all of which are used by various departments in the milk division of the Asso- ciation. The number of employees in the department varies. The milk plant proper, the main building, has 232 employees. Three buildings devoted to warehousing are staffed by six employees. A fifth building houses the building maintenance shop and the automotive shops, where 38 persons are employed. In the shop offices there are 3 employees, and in the automobile service station there are 2 employees. Another building houses the advertising department with 9 employees, and the engineering department with 18 employees. This property also has parking area for the com- pany's trucks. Another building houses the feed department of the company with 17 employees, and the industrial relations office of the company with 4 employees. The feed department sells cattle and poultry feed directly to customers of the corporation. In addition to this milk plant at Sheridan and Elm Streets, the company operates an ice cream plant in the city of Honolulu, where 70 people are employed. A branch of the Association at the Schofield Barracks, United States Army, employs approxi- mately 17 persons in the distribution of ice cream and milk on the north side of the island of Oahu. The Association also operates the Waialua Ranch, which produces milk, in the vicinity of Diamond Head, with about 69-70 employees. A third branch, which is located at the town of Kailua, on the island of Oahu, employs approximately nine persons in the distribution of its products. The corporation also owns and operates an ice cream manufacturing and distribu- tion plant in the city of Hilo, on the island of Hawaii, in which it employs approxi- mately 24 persons. Dairymen's has contractual relations with approximately 35 milk producers on the island of Oahu, all of whom are bound by contracts similar to that with Waialua, to supply milk exclusively to Dairymen's.2 Examination of the Milk Pool Producer's Contract between Waialua and Dairymen's, discloses that Waialua agrees (1) to de- liver certain quantities of milk daily; (2) not to dispose of more than 10 percent of its cows during the term of the agreement ; and {3) to accept payment in accordance with a pricing formula set forth in the contract. Dairymen's agrees (1) to receive the milk delivered; (2) to check it for butterfat content and other qualities; (3) to pool it with other milk of similar grade, to sell it, and to pay Waialua for it in accordance with the pricing formula. According to the pricing formula, Dairymen's will accept all milk produced by a producer, but only an amount up to a certain quota will be accepted and paid for as class 1 milk. Class I milk is defined as that which is sold by Dairymen's to the public through its retail outlets. Milk above the quota amount (which is estimated as sufficient to satisfy public demand), is deemed surplus milk, and is used in Dairy- men's manufacture of ice cream, cheese, and other milk products. The price paid to producers by Dairymen's for class I milk is the net, of an average price per quart, less certain commissions due Dairymen's. The price paid for surplus milk is the San Francisco wholesale price per pound for butter and milk solids, plus freight, San Francisco to Honolulu, for the particular month involved. The contract has other provisions, but their exposition at this point would serve no useful purpose. In general , the milk producers pool contracts form a practical, orderly system whereby the milk of the producers has an immediate sale, regardless of fluctuation in either supply or demand within certain limits, at a price previously agreed upon. Other provisions of the contract appear designed to effectuate this general purpose. if. THE LABOR ORGANIZATION Upon the pleadings, and the evidence as a whole, I find that Hawaii Teamsters and Allied Workers Union, Local 996, is a labor organization within the meaning of Section 2 (5) of the Act. 2 General Counsel's Exhibit No. 10 is the contract of August 21, 1953 , between Waialua and Dairymen's 1224 DECISIONS OF NATIONAL LABOR RELATIONS BOARD At the hearing it was established that for many years past the Union has been the bargaining representative of Dairymen's employees on the island of Oahu. Dairy- men's and the Union apparently negotiated labor agreements on a yearly basis. The General Counsel introduced into evidence a contract between the parties dated October 7, 1953, which by its terms was to become effective as of October 1, 1953, and be in force until September 30, 1954 , and from year to year thereafter , unless modified by agreement of the parties. Section III of this document states that the employees covered by the agreement , "are all employees of the company , including office and clerical employees , but excluding guards, professional employees , salesmen and supervisors , as defined in the National Labor Relations Act as amended, em- ployed on the Island of Oahu, Territory of Hawaii, pursuant to N. L. R. B. certifica- tion Case Numbers 37-RC-131 and 37-RC-132." Other provisions of the contract cover the usual subjects relating to wages, hours, and working conditions of the employees. III. THE UNFAIR LABOR PRACTICES A. Background of present controversy At the hearing certain statements of counsel and undisputed testimony established the following facts as the background of the present controversy . The first meeting of the Dahlbergs and union representatives occurred on or about July 30 , 1953. On that date Rutledge and Collier , representatives of the Union , called at the Dahlberg home and informed the Dahlbergs that the Union represented the employees of Waialua Dairy, and requested recognition as representatives of the employees. There is a conflict of testimony between Collier on one side , and the Dahlbergs on the other, as to the temper with which the Dahlbergs rejected the Union 's claim of representa- tive status , and refused recognition to the Union , but it is undisputed that the Dahl- bergs rejected the Union 's claim , and refused recognition on this occasion. At the time of this first meeting , Waialua Dairy was engaged in the production and the processing and distribution of its milk to its customers , but the change in Waialua's operations , incident to its contract with Dairymen 's, was at that time in contempla- tion . Dahlberg told the union representatives that he was about to sign a contract with Dairymen 's, and give up the processing and distribution of milk. Upon being refused recognition by the Dahlbergs , the Union in turn petitioned the National Labor Relations Board and the Territorial Labor Board for certification as the representative of Waialua 's employees . However, these efforts were unsuccessful, because each Board refused to entertain the petition on the ground that the employees of Waialua were agricultural workers. Whether these decisions were affected by the imminent change in Waialua 's methods of operation , which fact was made known to all concerned , is not disclosed by the statements of counsel or the evidence. On August 21, 1953, the Dahlbergs and Dairymen 's executed the contract mentioned above . Incidental to the execution of the contract , Dairymen 's purchased Waialua's processing and distribution equipment , and accepted on its payroll , all employees of Waialua engaged in processing and distribution , except two employees who found jobs elsewhere. The transfer of these employees from the Waialua to the Dairy- men's payroll was accomplished after consultation of representatives of Dairymen's, Waialua, and the Union . By the terms of the union -shop provision of the contract between the Union and Dairymen's, the transferred men were required to become and remain members of the Union within 30 days of their date of employment by Dairymen 's. Thereafter , Waialua had no employees except those engaged in grass cutting, milking, and odd jobs. Since Waialua, after September 1, 1953 , had no employees except those in the classifications above, and all processing and distribution employees had been trans- ferred to Dairymen 's, the efforts of the Union to obtain recognition as the representa- tive of Waialua 's employees subsided . Apparently, Waialua operated from September 1, 1953, until March 8, 1954, on a nonunion basis without interference by the Union . However , it is undisputed that this peaceful phase came to an end on March 8, 1954, when the Union embarked on the course of conduct which is the subject of this proceeding. B. The events of March 8 and 9, 1954 There is no substantial dispute between either the parties, or the witnesses, as to the events of March 8 and 9, 1954, which constitute the factual basis of this proceed- ing. The Dahlbergs , the representatives of the Union , and an officer and various em- ployees of Dairymen 's, all testified to the events of those dates , and the testimony of these witnesses is singularly free of diagreements or conflicts . To all appearances, all the witnesses , whose testimony is hereafter related , testified with a commendable HAWAII TEAMSTERS AND ALLIED WORKERS UNION 1225 candor , and a minimum of bias, or self-interest . In general , I have credited the testimony of all witnesses on the main points of their testimony, for on those points they were in agreement. As to the few minor differences in their testimony, 1 have accepted that testimony which is most consistent with all other evidence in the case. The undisputed testimony of the witnesses established the following facts. On March 8, Walter Whitcomb, a representative of the Union, phoned the Dahl- berg home. His first call was received by Mrs. Dahlberg at approximately 6 o'clock. Whitcomb asked to speak to Mr. Dahlberg, but he was not at home. At 9 o'clock he called again, but Mrs. Dahlberg told him that Dahlberg had not yet arrived home. Whitcomb then identified himself as a representative of the Union and said that he wanted to talk to the Dahlbergs about a union contract. Mrs. Dahlberg said that she had never seen a union contract and asked what it was about. Whitcomb said that the Union wanted to talk about the producers' contract. Mrs. Dahlberg asked what it contained. Whitcomb said that if she would like to hear the producers' contract he would read it to her over the phone. He proceeded to read a contract to her. She explained to Whitcomb that they had recently executed a 5-year con- tract with Dairymen's and she asked if the Union could break that contract. Mrs. Dahlberg also asked the purpose of the contract. Whitcomb replied that the Union desired the contract to be signed, "because some of the producers were receiving less than 16 cents a quart," and were dissatisfied with their arrangements with Dairymen's. She asked Whitcomb what the Union intended to get for the producers-what price. Whitcomb said that the Union was going to get 20 cents a quart , the same as pro- ducers were getting on the mainland . Mrs. Dahlberg again asked Whitcomb about the effectiveness of their 5-year contract with Dairymen's, but Whitcomb made no answer . Finally, Mrs. Dahlberg said that they were not interested in signing any contract , whereupon Whitcomb said that the Union had a way of taking care of people who did not cooperate with it. That ended the conversation. On the morning of March 9, following his usual routine, Dahlberg loaded his milk on his truck and drove to the plant of Dairymen's at Honolulu. When he arrived at the unloading platform of the milk plant, he saw Whitcomb, the union representa- tive, seated in his car, which was parked in front of the unloading platform. Whit- comb left his car and said to Dahlberg, "You will have to sign a union contract or you won't be able to unload your milk this morning." Dahlberg said that there were some men across the street and that he wanted Whitcomb to tell him the same thing in the presence of witnesses. Dahlberg and Whitcomb crossed the street to the service station where several men were standing. Dahlberg told one of the group, Orlando, a milk inspector, that Whitcomb had told him that he wouldn't be able to unload his milk unless he signed a union contract. Whitcomb corrected Dahlberg. Whitcomb said that he had told Dahlberg he was going to "have some trouble" un- loading his milk, unless he signed a union contract. Dahlberg then asked Whitcomb, directly, if he was going to have some trouble; Whitcomb replied in the affirmative. With that, Whitcomb turned to Collier, another union representative who was present, and said, "Show it to him, Collier." Collier then displayed to Dahlberg a picket sign which read, "Waialua Dairy Unfair," and at the bottom the name of the Union, Teamsters and Allied Workers, AFL, 996. 3 Dahlberg then went into the plant and told Cannon, vice president and manager of Dairymen 's milk division , that the Union was not going to let him unload his truck. Cannon and Dahlberg went to the unloading platform. Whitcomb had moved his car a few feet, so Dahlberg moved his truck up to the platform. At that point, Collier, the second union representative, clambered upon the platform and stood at the conveyor belt which carried the milk from the platform into the plant. Collier displayed the picket sign, previously described. Cannon told Dahlberg to unload his cans onto the conveyor and that he would have the men start the con- veyor. Dahlberg put three cans on the conveyor while Cannon, accompanied by Kauai, the plant manager, and Whitcomb, went inside the plant. Dahlberg could see Cannon and the others inside the plant, and he heard Cannon tell the receiving clerk to operate the conveyor and to unload Dahlberg's truck, but the receiving clerk did not start the conveyor. In about 10 minutes, Cannon and Kauai came out of the plant and Cannon conferred with some men across the street. When Cannon came back to the truck about 15 minutes later, he asked Dahlberg to move his truck forward, to allow another producer to unload, but he told Dahlberg not to move his truck so far that he would leave the platform. Dahlberg moved his truck forward a few feet and the other producer unloaded. During this unloading, Collier did not display the picket sign , the conveyor belt was operated by the receiving clerk, and this producer's cans moved into the plant. As soon as the other producer had 8 It was stipulated by counsel that the picket sign read as stated above. 1226 DECISIONS OF NATIONAL LABOR RELATIONS BOARD unloaded, Dahlberg backed up his truck and put his three cans back on the conveyor belt and Collier resumed his former position displaying the picket sign. Dahlberg waited about 15 minutes, but nothing happened. He observed, during this time, that the man who operated the conveyor belt and his assistant just waited at their station. After about 15 minutes Cannon came to Dahlberg and said, "You'll have to take your milk home and dump it. I've asked them to start the conveyor and they are not going to start it." Dahlberg said that he would take the milk home and dump it, but that somebody was going to count the cans and see that they were full, and that someone was going to pay him. Cannon and Anderson of the Dairymen's staff counted and inspected the cans and then Dahlberg went home. George Cannon testified that about 6 o'clock on the evening of March 8 he received a telephone call from Rutledge, the president of the Union. Rutledge said that he had called Cannon to tell him that there was probably going to be some trouble with some of the producers on the following morning. Cannon said that if there was going to be trouble, he would like Rutledge to let him know, so he could be ready for whatever might arise. Rutledge agreed to notify Cannon. About 9 o'clock that evening Cannon received a telephone call from Whitcomb who said that the Union was attempting to organize the producers, and that if the producers didn't get in line there was going to be some trouble. The Union was going to put up a picket line at Dairymen's plant on the following morning. Whitcomb said that he had tried to get hold of the Dahlbergs of Waialua Dairy, and he thought it would be a good idea if Cannon would talk to them on the phone, and tell them that they had better recognize the Union because there would be trouble the following morn- ing. Cannon told Rutledge that Dairymen's was not interested in whether the pro- ducers signed contracts with the Union or not, and that Dairymen's would not advise anybody to sign any contract. About 2 a. in. on March 9, Whitcomb phoned Cannon again . He told Cannon that there would be trouble at the plant in the morning, definitely. Cannon talked to Whitcomb for a few minutes, and then Whit- comb called Rutledge to the phone. Rutledge said that he had promised Cannon to notify him if there was going to be trouble at the plant, and Rutledge said that there was, definitely, going to be trouble with Dahlberg in the morning. Cannon arrived at the milk plant at approximately 7:15 a. in. on March 9. About 8 a. in. Dahlberg came to his office, saying that he couldn't pull up to the unloading platform because Whitcomb's car was blocking it. Cannon and Kauai, the plant manager, went down to the unloading platform. Collier, a representative of the Union, was standing on the platform with a picket sign. Whitcomb was also near the platform. When Cannon saw the sign he went into the plant, accompanied by Whitcomb and Kauai. He spoke to the receiving clerk, Wayne Nakamura. Cannon testified that he said to Nakamura, "If I order you to receive this milk will you receive it?" Nakamura replied, "No." Cannon asked, "Why?" Nakamura said that he had been told not to receive it. Cannon asked, "Who told you not to receive it?" Nakamura answered, "Whitcomb." Cannon then asked Whitcomb to tell Nakamura to receive the milk, but Whitcomb refused. Cannon then went into the office and made a telephone call to Rutledge, the president of the Union, but was unable to reach him. He again requested Whitcomb to order the men to receive the milk, but again Whitcomb refused. He then asked Whitcomb if there wasn't some way they could work the situation out but Whitcomb replied in the negative. Cannon then asked Dahlberg to remove his truck. Dahlberg asked if he was going to be paid for his milk. Cannon replied that he had tried to deliver it, so he had done his part. Dahlberg asked Cannon to count and inspect the cans of milk, which Cannon did. Dahlberg then drove his truck , containing the milk, from Dairymen's premises. Wayne S. Nakamura testified that for approximately 8 years he had been employed as milk receiving clerk at Dairymen's milk plant in Honolulu. In his duties he is assisted by another employe named Sabagala. Both Nakamura and Sabagala are members of the Union. Their duties include the operation of the conveyor belt on which cans of milk unloaded at the unloading platform are moved into the plant, the taking of samples of butterfat from each can unloaded, and the keeping of an account of the amount of milk received. When Nakamura came to work on the morning of March 9 he saw Collier, the union representative at the plant. About 7:45 a. in., Nakamura, accompanied by Sabagala, went to Collier's car, where the men sat down with Collier. Nakamura asked Collier what was up. Collier said, "Waialua Dairy." Nakamura said, "That's nonunion milk, then. We are going to have trouble with him." Collier then told Nakamura not to take Dahlberg's milk when it came in, to which Nakamura said, "0. K." When Collier told him this, Sabagala was also seated in Collier's car, but Sabagala does not understand English very well. HAWAII TEAMSTERS AND ALLIED WORKERS UNION 1227 A short time after this conversation , Dahlberg drove his truck up to the receiving platform and unloaded some milk. Nakamura told Sabagala , "Don't run the con- veyor because it's nonunion milk. If you ever run the conveyor , you are going to get into trouble ." Neither Nakamura nor Sabagala operated the conveyor . Kauai, the superintendent of the milk plant, came on the unloading platform and signaled Nakamura to operate the conveyor and take away the milk. He signaled his refusal to Kauai and said, "I cannot." In a few moments Cannon , Kauai, and Whitcomb came into the plant and Cannon said, "Supposing I order you to run the conveyor, would you run it?" Nakamura said , "No." At that time Collier was sitting on the receiving platform carrying the picket sign. Cannon asked Nakamura who told him not to run the conveyor , but, according to Nakamura , he did not answer that ques- tion . On the witness stand Nakamura explained this failure to answer , saying "Nobody told me, but when it's non-union I don't want to get in trouble ; I cannot run it, I got no choice about it."4 Later in the day he told Superintendent Kauai , "I am sorry I had to do this to the company , but I had no choice whatsoever ." When Nakamura was examined as to what he meant by his remark to Kauai he explained that he had no choice, because the milk was nonunion and if he ran the conveyor all the other employees would walk out on him .5 Francisco Sabagala, assistant to Nakamura , testified that he was on duty with Nakamura on the morning of March 9 . He said that Dahlberg's milk was not un- loaded by either Nakamura or himself because it was not union milk. Toshi Kauai , superintendent of the milk plant, testified that he has been employed by Dairymen 's for approximately 7 years. When he reached the plant on March 9, he saw Whitcomb and Collier . Whitcomb was in his car, which was parked near the receiving platform, and Collier was sitting on the receiving platform with a picket sign over his shoulder with the blank side exposed . He spoke to Whitcomb, and in the course of the conversation Whitcomb said that the union representatives were there to stop Waialua from unloading its milk. Another producer was at the platform unloading milk. Kauai testified that Nakamura and Sabagala were the employees who regularly operated the conveyor in the unloading of trucks . When Dahlberg's truck was brought to the receiving platform, Dahlberg unloaded several cans on to the con- veyor chain , but the chain did not move , so Kauai jumped up on the platform, looked through the opening, and waved to Nakamura to operate the conveyor and take the cans away . Nakamura waved back to him in a negative manner, from which he understood that Nakamura refused to start the conveyor . He repeated his signal, but Nakamura only repeated his previous signal that he would not operate the con- veyor . Kauai went to the office and reported the refusal of Nakamura to operate the conveyor to Cannon . Kauai then went back to the platform where he was joined in a few minutes by Cannon , and the two men went inside the plant to talk to Nakamura . Whitcomb followed them into the receiving room where Nakamura and Sabagala were standing near the button for the conveyor belt. Kauai heard Cannon say to Nakamura, "If I order you to do so will you receive it')" Nakamura answered, "No." With that , Cannon , Whitcomb , and Kauai all left the receiving room. Can- non crossed the street and had a talk with Rutledge, president of the Union , who was standing at the service station. Kauai went along with Cannon and heard the con- versation between Cannon and Rutledge . He gathered that the Union would not per- mit Dahlberg to deliver the milk. Kauai also testified that, in the course of the incident concerning the unloading of Dahlberg , he at one time requested Whitcomb to move his car forward a few feet so that the truck of another producer could be unloaded , and that Whitcomb complied with his request . When this truck was unloaded , Nakamura operated the conveyor belt. At the conclusion of his talk with Rutledge, Cannon went to Dahlberg and in- formed him that his milk could not be received and asked him to take his milk away. Dahlberg then drove away. Edward Collier , one of the union representatives , testified that on the morning of March 9 about 3 a . in., he and Whitcomb went to Dairymen 's with a picket sign with the intention of putting a picket line at the milk plant at the time Dahlberg would arrive. Collier saw Kauai around 8 a. in. at approximately the same time that Dahlberg's truck arrived at Dairymen 's. At that time both Whitcomb and Collier had their cars parked at the unloading platform, thereby blocking Dahlberg's truck from the unloading platform. Kauai asked Whitcomb and Collier to move their * Transcript , page 47. 5 Transcript , page 53. 1228 DECISIONS OF NATIONAL LABOR RELATIONS BOARD cars so that he could take care of Dahlberg. Whitcomb and Collier moved their cars a few feet, and then Dahlberg moved his truck to the platform. Collier immediately jumped onto the platform with his picket sign , taking a position near the truck and the conveyor. Kauai asked Dahlberg not to unload his milk, but Dahlberg put 3 or 4 cans on the conveyor. The conveyor didn't move so everybody just stood there. Collier moved a packing case over and sat down upon it, displaying his picket sign. Finally Dahlberg moved his truck away from the unloading platform. At that point Collier descended from the platform and walked across the street to talk to some men at the tire shop. That concluded his picketing for the day. Collier also testified as to a conversation which was held by Rutledge and himself with the Dahlbergs in May 1953 in which they called upon the Dahlbergs and told them that the Union had signed up their employees 'In Collier's account of this conversation he portrays the Dahlbergs as being deeply angered by this information, and of being abusive and threatening toward the union representatives. Walter E. Whitcomb, the other union representative previously mentioned, testi- fied that he called Mrs. Dahlberg on March 8, and asked her to sign the union con- tract. In the course of the telephone conversation he read the contract to her. She said that it was a stupid contract and she would not sign it. As a result of this con- versation he requested Collier's assistance, and the two union representatives arrived at the milk plant on the following morning around 3 o'clock. They went to the plant early, thinking Dahlberg might go to the plant earlier than usual. They put their cars alongside the platform. Other producers arrived at the plant, so they moved their cars away from the platform, far enough to enable these producers to unload their milk, as the union representatives were "expressly looking for" Dahlberg. Dahlberg arrived at 8:05 a. in. Whitcomb spoke to Dahlberg, asking him to sign the union contract. Dahlberg refused. Whitcomb testified that he had no conversation with Kauai until after Dahlberg had arrived with his truck in the vicinity of the platform. At that point Kauai ap- proached him and told him that he could handle Dahlberg and that he didn't want any trouble. Whitcomb told Kauai that he had seen some producers get in front of the unloading platform and hold the operation up for several hours, and that by having their cars there they were able at least to see to it that the union producers had a chance to deliver their milk. Kauai told Whitcomb not to worry about that, "As far as we are concerned we will see to it that Dahlberg gets out of here." Whit- comb asked Kauai if he was sure, and Kauai replied, "Don't worry about it, I will take care of Dahlberg." When Dahlberg arrived and found the cars at the chute, he left his truck and went upstairs. In accordance with the conversation of Whit- comb with Kauai, Whitcomb and Collier moved their cars away from the unloading platform. Dahlberg came downstairs, got into his truck and drove it up to the plat- form. When he did this, Collier took the picket sign and stood beside the truck. Dahlberg started to unload his milk cans. After he had unloaded one can and was moving a second, Kauai went to Dahlberg and said, "Now, Dahlberg, look here. You're not going to hold up my whole operation. Now look. Just put these back on the truck and move out of here." Dahlberg told Kauai that he would put the cans on the conveyor and that he would go in and run the conveyor himself. Kauai said, "You're not going to do it because the rest of the people in the plant probably won't work and I don't want any trouble." Dahlberg continued to try to unload his truck over the objection of Kauai. Finally, Dahlberg sat down on the platform, and there seemed to be a stalemate of about 15 minutes, while Kauai, Dahlberg, and Collier all stood on the platform. At that point Cannon came out of the plant and asked Whitcomb where Rutledge was. Whitcomb replied that he did not know. Cannon then said that they had to get this thing straightened out somehow. As Cannon turned away he motioned to Whitcomb, and Whitcomb followed him inside the plant. Cannon went to Nakamura and asked him why he wasn't running the con- veyor, and Nakamura said , "Tow (Kauai) and Whitcomb said not to." When the question was repeated to him, Nakamura said , "Tow and Whitcomb said not to, that Dahlberg was nonunion." Cannon then said to Nakamura, "If I asked you to start the machine up, what would you do?" Nakamura replied, "I can't. What would you do?" Cannon and Whitcomb then left the plant. Cannon again asked for Rutledge, and about that time Rutledge, the president of the Union, appeared. Cannon and Rutledge talked for about 6 or 7 minutes. Cannon then talked to Dahl- berg, who then drove away in his truck. C. Evidence excluded at the hearing At the hearing, counsel for the Union sought to adduce testimony from witness Cannon, and to introduce other evidence which would tend to establish that, although it was not contained in the current contract between the Union and Dairymen's, those HAWAII TEAMSTERS AND ALLIED WORKERS UNION 1229 parties had an understanding that a "Conway" clause , formerly in the contract, would be given effect. Upon objection by the General Counsel, the Trial Examiner ruled that the evidence was inadmissible. The question and the ruling arose in the follow- ing manner. In the cross-examination of Cannon, counsel for the Union asked Cannon if he knew that the 1943 contract between the Union and Dairymen's contained a "hot cargo" clause, by which employees would not be required to handle goods which were declared "hot" or "unfair" by the Union. Cannon answered that he did not have knowledge on that point. Counsel pursued this type of inquiry, examining the witness as to (1) the refusal of Dairymen's truckdrivers to cross a picket line at Hawaiian Pineapple Company during a labor dispute, (2) the refusal of an employee of Dairy- men's to deliver ice cream to the Rico Ice Cream Company, which had been declared "unfair" by the Union, and (3) an incident in which a business agent of the Union had padlocked the warehouse of Dairymen's because the Union had a dispute with the Hawaii Transfer Company. Cannon replied (1) that there had been some dis- cussion about a driver's refusal to cross the picket line at Hawaiian Pineapple Com- pany, but that the question had been solved so that employees of Dairymen's passed through the picket line; (2) that he was aware of the incident concerning the Rico Ice Cream Company, and (3) that he also remembered the incident in which a busi- ness agent of the Union locked the door of Dairymen's warehouse without Dairy- men's permission, because the Union had a dispute with Hawaii Transfer Company. He said the Union had no right to lock up the company's warehouse. At that point, the General Counsel objected to an inquiry of a similar nature on the basis of ma- teriality and relevancy. Counsel for the Union then stated his purpose in seeking to adduce the testimony.6 He said that it was the contention of the Union that by an unwritten mutual understanding, the parties had in effect in the contract a Con- way 7 clause, which allowed the employees to refuse to handle hot goods if they so desired, or if the Union so directed, and that the incidents about which he was ex- amining, illustrated the operation of that understanding. When the above explanation was made, counsel for the General Counsel then stated that he objected to the proffered testimony on the further ground that, by means of this parol evidence, counsel for the Union sought to alter, vary, or modify the terms of a written instrument, and that therefore the testimony was inadmissible. Counsel for the Union then said that section 4 of the current contract beween the Union and Dairymen's, which was then in evidence, was the section to which the understanding of the parties was directed . Section 4 reads as follows: SECTION 4. NO DISCRIMINATION, SERVICE BY EMPLOYEES The company agrees to refrain from employing unfair labor practices to dis- criminate against any employee for reason of union affiliations and/or for legitimate and bona fide activities on behalf of the Union , or for reason of race, color, or creed. The Union agrees for its members (who are employees of the company ) that inconsideration of faithful performance by the company of this Agreement they will individually and collectively perform loyal and efficient work, that they will use their influence and best efforts to protect the property of the company and to assist whenever possible the further use of company products and services. Counsel for the Union then stated that the Union had a letter from the counsel representing Dairymen 's in the 1943 negotiations , in which the Conway clause was ,eliminated , which contained a statement , rather ambiguously phrased , that the parties could drop the Conway clause from the contract, and still have the same effect. Upon his recommendation the clause was dropped from the contract , and had remained out ever since, but the parties had an understanding that section 4 of the present contract would be given the same effect as the Conway clause . Counsel for the General Counsel stated that section 4 of the contract , as he read it, appeared not s Transcript , page 89. 7 The reference is to a type of contractual provision involved in Conway's Empress, 87 NLRB 972, affirmed 195 F 2d 906 (C. A. 2). In that case, the secondary employers and Teamsters were parties to an area agreement . By a provision of the agreement, the Teamsters "reserved the right to refuse to handle goods or freight of any employer in- volved in a labor dispute." The Board held that by executing the contract containing this provision , the secondary employers "consented in advance to boycott Conway's. As they consented , their employees ' failure to deliver freight to or accept freight from Conway trucks was not in the literal sense a strike or refusal to work, nor was any such concerted insubordination contemplated by the Respondent when it caused the employees to exer- cise their contractual privilege ," and that in these circumstances Section 8 (b) (4) (A) did not apply. 1230 DECISIONS OF NATIONAL LABOR RELATIONS BOARD to support the position of counsel for the Union; it was not ambiguous, nor could any reasonable interpretation of the section convert it into a Conway clause. Counsel for the Union said that he thought it could be proved, if the evidence would be heard, that "Legitimate and bona fide activities on behalf of the union" was intended to include and did include the right to respect a picket line and to refuse to handle hot goods. In explanation, he said: 8 I think that a great deal has to be said down here, Mr. Examiner, on the basis of under-the-table agreements. This is a very tight, non-union town, they don't like union activities. In fact, they don't like the Dairymen's Association to have the union shop either, which is a great concession on behalf of the Dairymen's Association, I am sure. But they certainly don't like the hot cargo clause, they never have. And we have been forced to live under these sub rosa arrangements for many years, and I think the proof will show that we have so lived. Of course, that is a basis of disagreement here today. The Trial Examiner then said that apparently the parties in omitting the clause from the 1943 contract had taken cognizance of the fact that agreements of the hot cargo type were not in public favor in the community, and that because of this unpopularity, they had mutually agreed to omit from the written document that unpopular clause.9 Now, however, when the clause might exculpate one of the parties from certain results of its conduct, it sought to reinsert in the contract the eliminated clause. The Trial Examiner said that under the circumstances he was of the opinion that parol evidence could not properly be used to place back in the contract the eliminated clause, or substitute the eliminated clause for some other clause or paragraph of the written instrument. At that point the Trial Examiner sug- gested that counsel for the Union make a formal offer of proof on the subject, and that he would rule on the question after hearing all counsel on the subject. Later in the hearing, counsel for the Union made the following offer of proof: 10 Mr. Examiner, I wish to make the following offer of proof in relation to the question of the interpretation of the collective bargaining agreement presently existing and which existed at the time of the picketing in question in this proceeding. As I stated earlier, there is in the collective bargaining agreement Section 4, which read by itself is not only ambiguous but perhaps a little senseless. I offer to show the background for that section and to show the understanding arrived at by the parties as to the true meaning of that section, and to show further that the parties by their actions over the past dozen years have confirmed our contention as to the meaning of that section. I offer to prove that by way of background that in a collective bargaining agreement which existed between the company and the present union in the summer of 1943 there appeared the following clause, which at that time was Section 10 of the contract. The clause stated as follows: Handling of goods during a labor dispute. The union reserves the right on behalf of its members to refuse or cease handling or transporting any of the company's products, goods or property to or from any other firm which is engaged in a labor dispute or which is being struck and/or which is being picketed by any bona fide labor union. I would be willing to show by means of a witness present at the time of the negotiations, which took place in the summer of 1943, that representations were made by the company that this clause should be removed from the contract, not because the parties disagreed with the intention or had any intention to fail to live up to the terms of this clause but merely because it was embarrassing to the company because of pressure placed on the company by other businesses in the community. I am prepared to submit by way of confirmation of this discussion a letter from the law firm of Smith, Wilde, Beebe & Cades, of Honolulu, T. H., dated August 5, 1943, signed by Arthur G. Smith, who at that time was the attorney for the company, in which he made a number of statements to the effect that it would not be necessary to have the Section 10, which I referred to previously, 8 Transcript, page 93 , et seq. 9 By the clause one employer agrees, at the request of the Union to boycott any other employer, with which the Union has a dispute Potential targets of the boycott naturally resent the arrangement 10 Transcript, page 146, et seq. HAWAII TEAMSTERS AND ALLIED WORKERS UNION 1231 in the contract , but that the union would have the right to respect picket lines and to refuse to handle hot goods, even without Section 10. By way of further confirmation, I am prepared to submit a letter written by Arthur A. Rutledge, at that time executive secretary of the Dairy Workers Union, Local No. 22432, which is the successor of the Teamsters Local 996, who is the respondent in the present case, a letter written to the Department of Labor, asking for some explanation and confirmation of the opinion given by Mr. Arthur Smith. And as I understand the background, the opinion of Mr. Smith was enclosed with the letter to the Territorial Department of Labor. I would like to submit these two items in evidence and mark them for identi- fication as respondent's Exhibits 1 and 2, respectively.ll I further offer to prove by means of the testimony of Mr. Rutledge that after this exchange of correspondence it was agreed by and between the company and the union that the former Section 10 dealing with hot cargo could be elimi- nated from the written contract and that a new section, which is the same as the present Section 4, should be inserted, with the understanding between the parties that the ambiguous language in Section 4, which nevertheless gives the union employees the right to engage in any and all bona fide activities, would include the right to refuse to handle hot cargo. I further offer to prove that on at least three occasions since this change in language in the contract the company has recognized the right of the union to either refuse to cross picket lines or to refuse to handle hot cargo. One of these instances being a refusal to cross a picket line at the Hawaiian Pineapple Corpo- ration when they were engaged in a strike, a second being a refusal by the plant-one of the plant employees at the ice cream plant, Mr. George Gouveia, to give Rico Ice Cream Company any popsicles because the Rico Ice Cream Company was engaged in a labor dispute with the Teamsters Union. I further go on to show by the testimony of Mr. Gouveia that after he had refused to deliver these goods to the unfair employer that a great deal of pressure was brought on Dairymen's Association and they made a show of suspending him for two weeks, that they then called him into the office, told him to keep quiet about it, and gave him his full pay for the time he was off the job. We will further show by the testimony of Mr. Whitcomb, who is the business representative for the Teamsters, that approximately 2 years ago the Teamsters Union convinced the company that they should cease doing business one [sic] Hawaii Transfer, with whom the Teamsters had a dispute, that the company did cease doing business with them and put on another transfer company in their place. And that all of these actions were taken under the understand- ing between the parties that while they would not write a hot cargo clause into the agreement, that they certainly would allow the action that was taken. I think that completes my offer of proof. The Trial Examiner then sustained the objection of Counsel for the General Coun- sel that the proffered evidence (1) would constitute parol evidence which would alter, vary, or change the terms of the written instrument or add additional terms thereto; (2) that portions of the proffered evidence were inadmissible hearsay; and (3) that all the proffered proof was irrelevant and immaterial. Concluding Findings The above testimony demonstrates that there is no serious dispute as to the basic facts of the controversy. I find them to be as follows: On approximately June 30, 1953, the Union informed the Dahlbergs that it had been authorized to represent in collective bargaining the workers employed by Waialua, and requested recognition as bargaining agent. The Dahlbergs disputed the Union's claim to representative status, refused recognition, and informed the Union that they were about to execute a contract with Dairymen's, and as an inci- dent thereof, discontinue the processing and distribution of milk. The Union then petitioned the National Labor Relations Board, and the Territorial Labor Board for certification as bargaining representative of Waialua's employees. Both boards dis- missed the petition of the Union, on the ground that the workers employed by Wai- alua were "agricultural workers" and not "employees" as defined in their respective acts.12 Upon the execution of the Waialua-Dairymen's contract, Waialua discon- u The documents are marked Respondent's Exhibits Nos. 1 and 2, and can be found in the file of rejected exhibits 12 The territorial act involved is the Hawaii Employment Relations Act. 1232 DECISIONS OF NATIONAL LABOR RELATIONS BOARD tinued its processing and distribution, and thereafter had on its payroll only workers engaged in odd jobs, milking, and feed cutting. Despite the dismissal of the Union's petitions by the territorial and national boards on the ground that the workers on Waialua's payroll were agricultural workers, and not employees, the Union persisted in its demands that Waialua recognize it as bar- gaining agent for these workers and sign a contract with the Union as the representa- tive of the workers. To attain that objective, on the morning of March 9, 1954, the Union picketed a truck of Waialua, while it was at the unloading platform of Dairy- men's and issued orders to two employees in the receiving department of Dairymen's not to receive or unload Waialua's milk, because Waialua was "unfair" to the Union. As a result of that action, Nakamura and Sabagala, employees of Dairymen's, who were members of the Union, refused to receive or unload Waialua's milk, and as a result of their concerted refusal Dairymen's refused to accept Waialua's milk, which was then taken back to the farm. Several features of the picketing are likewise undisputed. The picketing was con- ducted on Dairymen's premises, in close proximity to Waialua's truck, and for only that period of time during which Waialua's truck was at the receiving platform. Also the picket sign clearly stated that Waialua (not Dairymen's) was "Unfair." However, it is not disputed, and I find, that the result of both the picketing, and the instructions of the union representatives to the aforementioned employees, was to force Dairymen's to cease handling or dealing in the products of Waialua and to cease doing business with Waialua. The General Counsel contends that the Union, by the conduct above, violated Section 8 (b) (4) (A). The Union contends that its conduct is not a violation of the Section. The language of Section 8 (b) (4) (A) which is here essential, is as follows: (b) It shall be an unfair labor practice for a labor organization or its agents- (4) to engage in, or to induce or encourage the employees of any employer to engage in, a strike or a concerted refusal in the course of their employment to use, manufacture, process, transport, or otherwise handle or work on any goods, articles, materials, or commodities or to perform any services, where an object thereof is: (A) forcing or requiring any employer or self-employed person to join any labor or employer organization or any employer or other person to cease using, selling, handling, transporting, or otherwise dealing in the products of any other producer, processor, or manufacturer, or to cease doing business with any other person; .. . In N. L. R. B. v. Denver Building and Construction Trades Council, 341 U. S. 675, the Supreme Court defined the nature and the scope of the prohibition in the above section, stating that it restricted "a labor organization and its agents in the use of economic pressure where an object of it is to force an employer or other person to boycott some one else." 13 At the same time, however, the court also decided N. L. R. B. v. International Rice Milling Co., 341 U. S. 665, in which it held that Section 8 (b) (4) did not abridge or diminish a union's right to engage in a traditional or primary strike, even when it caused incidental harm to a neutral employer. These decisions left unanswered the question of a union's right to picket a truck of a primary employer while it was on the premises of a neutral employer. As cases of this type arose, the Board announced its "ambulatory situs" rule and applied it to the facts of each case.14 The problem, and the rule, are stated in N. L. R. B. v. Service Trade Chauffeurs, supra, as follows: The trouble lies in determining what is "incidental" and "primary" in a case like this where the primary employer's business, travelling about on wheels, rolls up to the secondary employer's door or onto his premises. To hold that, in such circumstances, the union may not there picket the primary employer in any way, because the secondary employer might thereby be injured, would be virtually to deprive the union of a powerful weapon which Congress meant to preserve. " See also, N L R. B. v. Denver Trades Council, 341 U. S. 675; Electrical Workers v. N. L. R. B , 341 U. S. 694; Carpenters Union v. N. L. R. B , 341 U S. 947. 14 See Moore Drydock, 92 NLRB 547; Schultz Refrigerated Service, 87 NLRB 502; Getreu v Truck Dravers, 34 LRRM 2621, U S. No Dist. Georgia (1954). N. L. R B. v. Service Trade Chauffeurs, 191 F 2d 65 (C A. 2) HAWAII TEAMSTERS AND ALLIED WORKERS UNION 1233 3. Since its decision in the instant case, the Board , in subsequent decisions, has evolved criteria for determining what constitutes legitimate picketing where the business of a primary employer has a roving situs and where the picketing affects secondary employers. The Board's several enunciations of these criteria perhaps have not been wholly consistent . However that may be, we regard as a sound interpretation of the Act the principles laid down in Sailor 's Union of the Pacific, 92 N. L. R. B. 547. There the Board said that "picketing of the premises of a secondary employer is primary if it meets the following conditions: (a) The picketing is strictly limited to times when the situs of dispute is located on the secondary employer 's premises ; ( b) at the time of the picketing the primary employer is engaged in its normal business at the situs ; ( c) the picket- ing is limited to places reasonably close to the location of the situs ; and (d) the picketing discloses clearly that the dispute is with the primary employer." Here , the Union argues that its conduct on March 9 , 1953, met the criteria, set forth above, and that its picketing must therefore be deemed primary, and not a violation of the Act. While it is true that Waialua Dairy was located in an agricultural area, some 30 miles from Honolulu, and that the picket sign clearly indicated that Waialua only was unfair, and the picketing occurred only when a truck of Waialua was present, and in close proximity to the truck, I cannot agree that the facts of this case bring it within the ambulatory situs doctrine . Here, the Board 's decision in Washington Coca Cola Bottling Works, Inc., 107 NLRB 299, appears to be controlling. In that case the Board held that the criteria, set forth above, were applicable only in situa- tions where it had found that the situs of the dispute was at the premises of the neutral employer. When the primary employer has a primary place of business in the locality which can be picketed by the union, that place is the situs of the dispute. Here, the primary situs of any dispute between its workers and Waialua, was the dairy farm of the latter, which was located approximately 30 miles from Honolulu. In addition to the above, there are other substantial reasons for rejecting the Union's argument, based on the ambulatory situs doctrine. In the instant case, there is no need to resort to the use of the above criteria to determine whether the harm caused this neutral employer was "incidental" to a "primary" or "traditional" strike, or was caused "to force an employer . . . to boycott some one else." The undis- puted facts of this case ( 1) point unmistakably to the illegal object of the Union's conduct, and (2) rules out the possibility of a contrary finding. They are: (1) There was no primary or traditional strike of any employees of Waialua, or of any agricultural workers of Waialua, if a strike of the latter can be considered primary or traditional within any meaning of the words; (2) Waialua's truck was driven by one of the proprietors of the company, thus none of Waialua's workers were on Dairy- men's premises at the time of the picketing, where they could possibly be affected by the picketing; (3) prior to the picketing, the union representatives told Dahlberg that unless he signed a contract, the Union would prevent the unloading of his milk by Dairymen's; (4) when Dahlberg refused to capitulate, the only actions taken by the Union, the picketing and the instructions , were directed at Dairymen 's employees and no one else; (5 ) when those employees engaged in a concerted work stoppage, Dairymen's directed Dahlberg to take his milk home, though by contract the Asso- ciation was required to accept it; (6) when Dahlberg removed his milk from Dairy- men's premises, the picketing ceased and Dairymen's employees resumed work. It is significant , also, that this conduct of the Union was the only action taken by the Union of any kind which would in any way disclose that any difference existed be- tween Waialua and the Union. This picketing incident is neither prologue nor epi- logue to any other action of the Union or Waialua's workers, save the Union's naked demand that Waialua sign a contract. On this set of facts there was no "traditional" or "primary" strike of which the concerted action of Dairymen's employees could be considered the "incidental" byproduct. The only strike or work stoppage in this rec- ord, was that of Dairymen's employees which was caused directly by the Union's picket, and the Union's orders. In the latter part of the opinion in N. L. R. B. V. Service Trade Chauffeurs, supra, the court said: 4. The Union clearly violated the Act in picketing the Read Warehouse. For no trucks operated by the primary employer were present at the ware- house, nor were any of its employees there engaged in the primary employer's business. The Board's findings, amply supported by the evidence, make it plain that, by this picketing, the Union induced Read's warehouse employees to en- gage in a concerted refusal in the course of their employment to perform their customary services-i. e., to quit work-and that they did quit , in part at least,. 1234 DECISIONS OF NATIONAL LABOR RELATIONS BOARD because they were so induced by this picketing. The Board was also clearly right in concluding that the objects of the Union's inducement were those pro- scribed by (A) and ( B) of ยง 8 (b) (4)-namely, to force Read to cease doing business with the primary employer and to force the primary employer to recog- nize the Union as the representative of its employees, although the Union had not been certified as a representative. To that extent, therefore, the Board's decision was correct and will now be enforced. Also, in Richfield Oil Corporation, 95 NLRB 1191, the Board found that the con- duct of pickets clearly showed that the picketing in part at least, was designed to force Richfield to cease doing business with Superior, and that the union thereby violated Section 8 (b) (4) (A). The Union also argues that Waialua and Dairymen's must be considered "allies," within the meaning of such cases as Irwin-Lyons Lumber Co., 87 NLRB 54; Douds v. Metropolitan Federation of Architects, 21 LRRM 2256, 75 Fed. Supp. 672. With that contention, also, I disagree. While it is true that Waialua and Dairymen's were bound by a contract, by which Waialua sold, and Dairymen's purchased, Waialua's entire output of milk, and Waialua, among other things, agreed not to dispose of its herd of producing cows, this contractual arrangement did not render the parties "allies" in the labor dispute. The cases holding that 2 or more companies are allies in a labor dispute, all turn upon facts showing that 1 company is a subsidiary of the other, or the 2 have common ownership, common control, or common labor policy to the extent that the separate identities of the companies are merged or lost in the course of the labor dispute. Here, the Dahlbergs are sole owners of Waialua, and their only connection with Dairymen's is by contract. Likewise, Dairymen's exists as a separate entity. While the contract between the two has peculiar provisions, these find their source not in a desire to merge identities, or to give control to one, but in the fluctuating nature of the dairy business. Dairymen's sought a constant supply of milk, and Waialua a constant buyer of its product; they agreed for their mutual ad- vantage upon the terms of a contract designed to bring stability to their operations. They agreed to nothing more. For many years, Dairymen's has been unionized; for an equal number of years Waialua has been nonunion. Each, as a separate business entity, pursued its individul course, until the Union, because of its difference with Waialua, induced and encouraged the employees of Dairymen's, with which com- pany the Union had amicable relations, to refuse, in the course of their employment, to handle Waialua's milk. There is no factual basis to support a finding that Dairy- men's and Waialua are allies in the dispute. The Union also argues that there was no inducement to concerted action in the present case, citing N. L. R. B. v. International Rice Milling, Inc., supra, and Joliet Contractors Association, 202 F. 2d 606. I must also reject this contention, for several reasons. I have found that representatives of the Union ordered Nakamura, in the presence of Sabagala, not to unload Waialua's milk. Conceding, for the sake of argument, the point made by the Union, that it is highly probable that Sabagala, because of his difficulty with English, did not understand these orders of the union representative, yet it is undisputed that Nakamura transmitted the orders to Sabagala, and that, at the critical moment, both men refused to operate the con- veyor. It is true that no general strike of Dairymen's employees occurred, but for only one reason; it wasn't necessary. The Union's sole and complete purpose was achieved when the two receiving clerks of the neutral employer refused to operate the conveyor and handle Waialua's milk. At that moment, the operations of Dairymen's began to stop, just as effectively as if Nakamura and Sabagala had pulled a switch cutting off all power into the plant. At that moment, Dairymen's was confronted with the alternatives presented by the Union, to boycott Waialua and resume operation, or refuse to boycott Waialua and continue to suffer a work stoppage. That the action of Nakamura and Sabagala was concerted, is further established by Nakamura's warning to Sabagala, that if the conveyor was started all the employees would walk out of the plant. Furthermore, I must agree with the rationale of those cases which hold that Section 8 (b) (4) (A) is violated when the action of the Union induces and en- courages the proscribed concerted activity regardless of whether the inducement or encouragement actually succeeds or fails in obtaining the concerted activity of the employees who are the target of the Union's conduct.15 I find that the conduct of the union representatives on the morning of March 9, 1954, was clearly designed to effect objects proscribed by the Act, namely to force Ic N. L R. B v Denver Building and Construction Trades Council, 193 F. 2d 241 (C. A. 10) ; Professional and Businessmen's Life Insurance Company, 108 NLRB 29; Stover Steel Service, 108 NLRB 221. HAWAII TEAMSTERS AND ALLIED WORKERS UNION 1235 Dairymen's to cease using , selling, handling , transporting , or otherwise dealing in the products of Waialua Dairy, and to cease doing business with Waialua Dairy, and that the Union has thereby violated Section 8 (b) (4) (A) as alleged in the complaint.1e At this point , I believe it proper to give some of the reasons for excluding the evidence offered by the Union to prove that an "understanding" of the parties effectively placed a Conway clause in their current contract. We may take as a starting point the Board's decision in Conway's Express, supra, for in addition to giving a name to a type of hot cargo clause, that decision is the cornerstone of the Union's offer of proof. As related previously, Section 8 (b) (4) (A) of the Labor Management Relations Act, 1947, proscribed as unfair labor practices certain practices of the unions, among which were those tactics commonly called secondary boycotts. On December 16, 1949, the Board handed down its decision in Conway's Express, supra. It had been found by the Trial Examiner in that case, and affirmed by the Board, that the union had taken certain action in reference to the employees of certain secondary em- ployers who did business with Conway's. The General Counsel contended that the conduct of the union as found by the Board constituted a violation of the Act. The Teamsters urged as a defense, that it had a contract with the secondary employers which rendered lawful the conduct found to have been committed by the Board. The decision of the majority of the Board has been the target of many critics, who have given special attention to that portion of the decision pertinent to our question. That portion speaks for itself as follows: 8. The Trial Examiner found, and we agree, that at Central Warehouse, Oppenheimer and McEwan, and Palmer Lines the Respondent did not violate Section 8 (b) (4) (A) of the amended Act. Each of these employers was a party to an area agreement with the Re- spondent, entered into before the effective date of the amended Act, which reserved to the Respondent the right to refuse to handle goods or freight of any employer involved in a labor dispute. In reliance on this contractual pro- vision, Respondent's shop stewards at each of the three establishments ceased handling Conway's freight upon being advised by the Respondent's office that the Conway strike was "on." And each of the employers, apparently mindful of its contractual obligation, acquiesced in its employees' refusal to handle the "hot" cargo. It is evident from these facts that the three secondary employers, in effect, consented in advance to boycott Conway's. As they consented, their employees' failure to deliver freight to or accept freight from Conway trucks was not in the literal sense a "strike" or "refusal" to work, nor was any such concerted insubordination contemplated by the Respondent when it caused the employees to exercise their contractual privilege. In the circumstances, Section 8 (b) (4) (A) cannot apply, unless we accept the General Counsel's argument that the "hot cargo" contracts were repugnant to the policy of the amended Act and therefore invalid after the effective date of the 1947 amendments. But we find no merit in this argument. Section 8 (b) (4) (A) of the Act prohibits labor organizations from "forcing or requiring" the participation of neutral employers in secondary boycotts by the use of certain forms of employee pressure, namely, strikes or work stoppages (either actually engaged in, or "induced" or "encour- aged" by the union). This section does not proscribe other means by which unions may induce employers to aid them in effectuating secondary boycotts; much less does it prohibit employers from refusing to deal with other persons, whether because they desire to assist a labor organization in the protection of its working standards, or for any other reason. An employer remains free, under that section of the amended Act, as always, to deal with whatever firms, union or nonunion, he chooses. And by the same token, there is nothing in the express provisions or underlying policy of Section 8 (b) (4) (A) which pro- hibits an employer and a union from voluntarily including "hot cargo" or "struck work" provisions in their collective bargaining contracts, or from honor- ing these provisions. That is all that happened in this case. We therefore find 1s N. L. R B. V. Shingle Weavers Council , 211 F. 2d 149 ( C. A 9), enfg. 101 NLRB 1159. See also, Di. Giorgio Wine Company, 87 NLRB 720, in which a similar fact situation and the sections of the Act here involved are thoroughly discussed . Enforced in 191 F. 2d 642 (C A., D. C.), cert denied 342 U . S 869. Thurston Motor Lines, Inc., 110 NLRB 748, Lakeview Creamery Company, 107 NLRB 601. 344056-55--vol. 111-79 1236 DECISIONS OF NATIONAL LABOR RELATIONS BOARD that the Respondent did not violate Section 8 (b) (4) (A) of the Act by causing employees of Palmer Lines, Central Warehouse, and Oppenheimer & McEwan to exercise their contractual privilege of declining to handle Conway freight. A footnote to the majority opinion set forth the substance of the pertinent con- tracts as follows: The area warehouse agreement reserved to the Union "the right to refuse to handle goods from any firm which is engaged in any controversy with this or any other Union." The area trucking agreement reserved to the Union "the right to refuse to accept the freight from, or to make pick-ups from or deliveries to establishments where picket lines, strikes, walk-outs and lock-outs exist." - Board Member Reynolds, concurring in part and dissenting in part , as to the inci- dents with which we are concerned, wrote as follows: The evidence is otherwise with respect to Central Warehouse 17 and Oppen- heimer and McEwan. These two employers regularly did business with Rabouin. However, during the course of the strike of Rabouin's employees, on the occa- sions detailed in the Intermediate Report, these employers ceased doing busi- ness with Rabouin. The circumstances under which this occurred were sub- stantially the same in the case of both employers. The Respondent was the collective bargaining representative of the employees employed by these em- ployers. Among the employees of each employer was a shop-steward for the Respondent. When a Rabouin truck called at either of the employer's premises, the shop-steward phoned the Respondent to ascertain whether the strike at Rabouin's was still in effect. Upon being informed that it was, the shop-steward and other employees refused to move freight on or off Rabouin's trucks. In this posture of the case, I am of the opinion that the action of these employees was in each instance induced by the Respondent with the object of forcing Cen- tral Warehouse and Oppenheimer and McEwan to cease doing business with Raboum, thereby violating Section 8 (b) (4) (A) of the Act. The Respondent, however, contends that its conduct was protected as it had reserved the right in its contracts with Central Warehouse and Oppenheimer and McEwan to refuse to handle Rabouin's goods. In effect it argues that by reserving this right to itself , the contracts contained provisions which amounted to an agreement in advance to engage in secondary boycotts. the Act, how- ever, unequivocally proscribes secondary activity on the part of unions. To the extent that these contract provisions authorize such activity, they are re- pugnant to the basic public policies of the Act. As the Board in the public interest is charged with the duty of preventing unfair labor practices, contracts which are repugnant to the Act and which conflict with this duty of the Board must obviously yield. Unions or employers cannot nullify the provisions of the Act which circumscribe their activities by inducing each other, or employees, to agree by contract in advance to waive their respective rights under the Act. This Board has therefore in many complaint cases refused to give effect to con- tracts, otherwise valid, which were asserted as a defense to unfair labor prac- tices when such contracts were utilized to accomplish results clearly incom- patible with provisions of the Act. Similarly, in representation proceedings the Board has refused to honor contracts which it believed were contrary to various basic policies of the Act. Such agreements between private parties cannot di- vest the Board of the exclusive jurisdiction bestowed upon it by Section 10 (a) of the Act and thus thwart the assertion by this Board of the public rights which are aimed at the prevention of unfair labor practices. Accordingly, as I am of the opinion that the Respondent's contracts with Central Warehouse and Oppenheimer and McEwan are repugnant to the Act, I would not consider such contracts as valid defenses to the 8 (b) (4) (A) unfair labor practice allega- tions herein. In this proceeding the Union seeks to carry the rationale of the decision in Con- way's Express one step further through the medium of parol evidence. It represents that in the 1943 negotiations, section 10 of the 1943 contract, the hot cargo clause, was omitted by mutual consent of the parties because provisions of that type were in general disfavor in the business community, and that thereafter the provision was omitted from all subsequent written contracts, but it seeks to prove by parol evidence, that in the 1943 negotiations a secret understanding was reached to the effect that the omitted provision would in fact continue, sub rosa, and that this understanding has 11 Conway's Express is the assumed name of an individual named Rabouin. Evidently, each member named the same party differently HAWAII TEAMSTERS AND ALLIED WORKERS UNION 1237 been observed through the intervening 11 years, and has survived the amendment of the Act. Generally, parol evidence cannot be received to contradict, vary, add to, or sub- tract from, the terms of a valid written instrument. When the parties have memo- rialized their agreement by a writing, they are bound by it, except in exceptional cir- cumstances. If this ancient rule has proper application in any litigation, it must be applied in this proceeding, which, brought in the public interest, is concerned with public rights, and the administration of the national law. In this proceeding there are rights of the public, as well as the rights of individuals, which must be protected against fraud and uncertainty. Here, the written contract and the rule are the only safeguards which the public has. The contract was executed by representatives of Dairymen's and the Union, and only their representatives are in a position to testify to any secret understanding of the parties. Admittedly, the parties executed a con- tract, complete and unambiguous on its face. To enjoy public favor, the parties omitted from the contract, a provision deemed a "consent in advance" by one party to certain acts by the other party. For 11 successive years the parties held out the written document, here in evidence, as their contract, and enjoyed what- ever popularity accrued them, by being in step with the accepted mores of their business community. Now, however, when an official of the Government presents a complaint, based on the charge of an aggrieved third party, alleging that the con- duct of the Union has violated the national public policy as enunciated in the amended Act, the Union seeks to answer that the written contract of the parties, is in fact, not the real agreement of the parties, that in addition to the written agree- ment, the Union had a secret agreement whereby the employer "consented in ad- vance" to conduct which now violates the law. In my opinion a prudent respect for the national interest and the public aspect of labor contracts, requires the applica- tion of the parol evidence rule to that proposal. The Act requires that unions and employers bargain on wages, hours, and conditions of employment, and that when agreement is reached, the terms of the agreement be embodied in a written instru- ment. Under the Act certain conduct is forbidden to employers and to unions, and certain rights are conferred on each. Labor contracts come into being by mandate of the Act, deal with subjects covered by and regulated by the Act, and may not by their terms contravene the Act. Thus, labor contracts, while they are the free acts of the individuals, are in addition instruments either promoting or frustrating the public labor policy of the nation. Viewed in this light then, I am of the opinion, that parties to a labor contract may not, for a period of 11 years represent a certain document, whose terms conform to the national labor policy, to be their complete contract, and in the eleventh year, when charged with a violation of the national regulatory law, be permitted to prove by parol evidence that the parties had a secret understanding, substantially at vari- ance with the written document, that one party "consented in advance" to the com- mission of certain acts, which the law proscribes, by the other party, and thereby frustrate the national labor policy. Failure to apply the rule in an administrative proceeding such as this, to representations such as these, would open wide the door to all manner of fraud, which would nullify the Act. Also I deem proof of the 1943 clause, irrelevant and immaterial, because, even assuming, arguendo, that the parol evidence was admissible, the language of section 10 of the 1943 contract, set forth above, is clearly designed to afford Dairymen's employees the right to refrain from crossing picket lines in making deliveries for Dairymen's, and does not afford them the right to refrain from handling the goods of other employers brought to the premises of Dairymen's. In giving effect to the Conway doctrine, the courts and the Board have always construed Conway clauses narrowly.18 Upon all the evidence, I also find that Waialua and the Association are engaged in commerce within the meaning of Section 2 (6) and (7) of the Act.19 IV. THE EFFECT OF THE UNFAIR LABOR PRACTICES UPON COMMERCE The activities of Hawaii Teamsters and Allied Workers Union, Local 996, set forth in section III, above, occurring in connection with the operations of Waialua and the Association described in section I above, have a close, intimate, and sub- stantial relation to trade, traffic, and commerce among the several States, and tend '8 Jag-K Independent Lumber Corp., 108 NLRB 1323. N. L. R. B. v. Shingle Weavers Council, supra. 19 By Inadvertence this specific finding was omitted from section I of the report Panaderia Sucesion Alonso, 87 NLRB 877. 1238 DECISIONS OF NATIONAL LABOR RELATIONS BOARD to lead to labor disputes burdening and obstructing commerce and the free flow of commerce. V. THE REMEDY Having found that the Union has engaged in certain unfair labor practices , I shall recommend that it cease and desist therefrom and take certain affirmative action de- signed to effectuate the policies of the Act. Upon the basis of the foregoing findings of fact and upon the entire record in the case, I make the following: CONCLUSIONS OF LAW 1. Oakley A. Dahlberg and Ruth N. Dahlberg, co-partners d/b/a Waialua Dairy, and Dairymen's Association, Ltd., are employers within the meaning of Section 2 (6) and (7) of the Act. 2. Hawaii Teamsters and Allied Workers Union, Local 996, is a labor organiza- tion within the meaning of Section 2 (5) of the Act.20 3. By inducing and encouraging employees of Dairymen's Association, Ltd., to engage in a concerted refusal to perform services for their employer with an object of requiring such employer to cease doing business with Waialua Dairy, Hawaii Teamsters and Allied Workers Union, Local 996, has engaged in unfair labor prac- tices within the meaning of Section 8 (b) (4) (A) of the Act. 4. The aforesaid unfair labor practices are unfair practices affecting commerce within the meaning of Section 2 (6) and (7) of the Act. [Recommendations omitted from publication.] Appendix A NOTICE To ALL MEMBERS OF HAWAII TEAMSTERS AND ALLIED WORKERS UNION, LOCAL 996 Pursuant to the recommendations of a Trial Examiner of the National Labor Re- lations Board , and in order to effectuate the policies of the National Labor Relations Act, we hereby give notice that: WE WILL NOT induce or encourage the employees of any employer to engage in a strike or concerted refusal in the course of their employment to perform any services for their employer , where an object thereof is to force or require any employer or other person to cease using , selling, handling, transporting or otherwise dealing in the products of Waialua Dairy, or to cease doing business with Waialua Dairy. HAWAII TEAMSTERS AND ALLIED WORKERS UNION , LOCAL 996, Labor Organization. Dated---------------- By---------------------------------------------- (Representative ) ( Title) This notice must remain posted for 60 days from the date hereof , and must not be altered , defaced , or covered by any other material. eo Di Giorgio Wine Company, supra. GENERAL MOTORS CORPORATION, CHEVROLET MOTOR DIVISION, TONA- WANDA, N. Y., FORGE PLANT 1 and INTERNATIONAL DIE SINKERS CONFERENCE, INDEPENDENT UNION, PETITIONER. Case No. 3-RC- 1478. March 30,1955 Decision and Direction of Election Upon a petition duly filed under Section 9 (c) of the National Labor Relations Act, a hearing was held before John M. Shea, Jr., hearing 1 The Employer's name appears as amended at the hearing. 111 NLRB No. 199. Copy with citationCopy as parenthetical citation