Imperial Outdoor AdvertisingDownload PDFNational Labor Relations Board - Board DecisionsAug 27, 1971192 N.L.R.B. 1248 (N.L.R.B. 1971) Copy Citation 1248 DECISIONS OF NATIONAL LABOR RELATIONS BOARD Imperial Outdoor Advertising and Sign and Pictorial Painters of Omaha , Nebraska, Local No. 752, affili- ated with Brotherhood of Painters and Allied Trades, AFL-CIO. Case 17-CA-4439 August 27, 1971 DECISION AND ORDER BY MEMBERS FANNING, BROWN, AND KENNEDY On May 19, 1971, Trial Examiner Arthur M. Goldberg issued his Decision in the above-entitled proceeding, finding that the Respondent had en- gaged in and was engaging in certain unfair labor practices and recommending that it cease and desist therefrom and take certain affirmative action, as set forth in the attached Trial Examiner's Decision. He also found that Respondent had not engaged in certain other unfair labor practices and recommend- ed that the allegations pertaining thereto be dis- missed . Thereafter, the Respondent filed exceptions to the Trial Examiner's Decision with supporting brief. Pursuant to the provisions of Section 3(b) of the National Labor Relations Act, as amended, the National Labor Relations Board has delegated its powers in connection with this case to a three- member panel. 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 Trial Examiner 's Decision, the exceptions and brief, and the entire record in the case, and hereby adopts the findings,2 conclusions, and recommendations of the Trial Examiner, except as modified herein. The Trial Examiner found that Respondent com- menced bargaining as part of a multiemployer bargaining unit and did not unequivocally manifest its desire to withdraw from that unit.3 In reaching this finding, the Trial Examiner relied on testimony of Union Business Representative Penix that in the opening statements made by Dayton Rasmussen, Jr., the Employer's representative, at the beginning of each of the 6 negotiating sessions , he stated that the employers "would bargain as a group for conven- ience but would sign individual contracts." The Trial Examiner concluded that the statements were ambi- 1 We find no merit in Respondent 's contention that the Trial Examiner was biased and prejudiced and that the hearing was not fairly conducted. 2 The Respondent has excepted to certain credibility findings made by the Trial Examiner . It is the Board 's established policy not to overrule a Trial Examiner's resolutions with respect to credibility unless the clear preponderance of all the relevant evidence convinces us that the resolutions were incorrect . Standard Dry Wall Products, Inc., 91 NLRB 544, enfd. 188 guous and not necessarily inconsistent with an intent to continue to bargain on a multiemployer basis and, therefore, were not the clear and unequivocal statement of an intent to withdraw from the multiemployer bargaining essential to accomplish that purpose.4 We disagree. It is clear to us that Rasmussen's statements are susceptible to no other reasonable interpretation than that he intended to bargain on an individual basis for each employer and that the Union so understood those statements. As noted, Imperial became a part of the multiem- ployer unit by virtue of its successorship to Naegle and its adoption of Naegle's collective-bargaining contract with the Union on November 1, 1968. At the first bargaining session on April 8, 1970, and again at the beginning of each of the other five sessions , Rasmussen informed not only Penix, the Union's business representative, but also Gibson, the International representative, that the employers would bargain as a group for convenience but would sign individual contracts. Furthermore, Penix admit- ted that at the'very outset Rasmussen also stated that he would be chairman of the employer negotiating group, that he represented all of the employers present, and that the employers were not bargaining as an association. The Union did not dispute the fact that the employers had never bargained as an association, that no association of sign companies in Omaha had ever existed, and that the Union knew this to be the case. To assume, therefore, as did the Trial Examiner, that Rasmussen's statement did not indicate any change in the Employer's bargaining status would place a strained and unreasonable interpretation on his words . Rasmussen's insistence that the employers were there to bargain as a group for convenience, that they were not bargaining as an association when no association had ever existed, and that they would sign individual contracts could have had no rational purpose if it had been his intent to bargain on a multiemployer basis. In that case, a simple statement, or no statement at all, would have indicated to the Union that bargaining was to proceed on a multiemployer basis. Moreover, when we consider that Mathey, Respondent's general manager, had strong feelings against bargaining with the Union on any basis, had sought to induce the employees to abandon the Union, and, as credibly testified to by the former plant superintendent, stated that his attorney would know how to deal with the F.2d 363 (C.A. 3). We have carefully examined the record and find no basis for reversing his findings, except as noted below. 3 The Trial Examiner noted that the Board had previously determined that Respondent's predecessor, Naegle Outdoor Advertising Co., was part of a multiemployer bargaining unit . Omaha Neon Sign Co., 170 NLRB No. 150. 4 Retail Associates, Inc., 120 NLRB 388. 192 NLRB No. 183 IMPERIAL OUTDOOR ADVERTISING 1249 Union to accomplish that purpose, it is difficult to believe that Respondent would not have retained its freedom to bargain on an individual basis. Indeed, Mathey testified that in January 1970, he orally told Rasmussen that Imperial did not want to be part of a multiemployer bargaining group. Furthermore, prior to the commencement of the negotiations, at a meeting of the representatives of the various compa- nies involved in the bargaining, Mathey claimed that the employers agreed to have Rasmussen act as their bargaining agent, but that they wanted to negotiate separately because there were differences in the way the companies operated. There is no clear indication whether the Trial Examiner specifically discredited this testimony, and neither Wolford nor Tibbetts, employers who were present at the negotiations and whose testimony the Trial Examiner credited, contra- dicted Mathey. We therefore believe that Rasmussen's statements could reasonably have had no other meaning than that the employers were undertaking collective bargaining on an individual basis and would sign individual contracts, although the employers would bargain as a group. Bargaining as a group for convenience only is not inconsistent with an intent to bargain on an individual basis only.5 We conclude, therefore, contrary to the Trial Examiner, that Respondent is not, and has not been at all times material , a member of and bound by any agreements reached by a multiemployer bargaining unit consist- ing of Respondent, Omaha Neon Sign Co., Neon Products Company, Inc., and Globe Neon Sign C0.6 We also do not agree with the Trial Examiner's finding that Respondent violated Section 8(a)(5) of the Act by employing strike replacements at wages below those established in the expired contract without bargaining with the Union. The record shows that the employees went on strike on June 1, 1970, upon the expiration of the contract. On June 6, Respondent began hiring replacements at a wage rate of less than the hourly rate contained in the expired contract. We believe, contrary to the Trial Examiner, that Respondent was under no obligation to hire the replacements at the wages in the contract and that it does not violate the Act by paying them lower rates .? We consider Harold W. Hinson, d/b/a Hen House Market No. 3, 175 NLRB No. 100, as not in point. There the issue involved a unilateral increase in the wages and other modifications of existing terms and conditions of employment of unit employees and not, as here, the question as to what wages may be paid strike replacements. We shall, therefore, dismiss this 8(a)(5) allegation. Although we have found that the Respondent was not bound by agreements reached by a multiemploy- er bargaining unit, we have found, in agreement with the Trial Examiner, that the Respondent violated Section 8(a)(5) in other respects. We shall therefore order Respondent to cease and desist therefrom and take certain affirmative action designed to effectuate the purposes of the Act. As the strike was an unfair labor practice strike from its inception on June 1, 1970, it is evident that the Union continues as the majority representive of Respondent's employees. In these circumstances, we find that the unit appropri- ate for collective-bargaining purposes within the meaning of Section 9(b) of the Act comprises the following employees: All sign painters and helpers, designers, and sign hangers employed by the Employer, excluding office clerical employees, guards and supervisors within the meaning of the Act. ORDER Pursuant to Section 10(c) of the National Labor Relations Act, as amended, the National Labor Relations Board adopts as its Order the recommend- ed Order of the Trial Examiner and hereby orders that the Respondent, Imperial Outdoor Advertising, Omaha, Nebraska, its officers, agents, successors, and assigns, shall take the action set forth in the Trial Examiner's recommended Order, with the following modifications: 1. Modify paragraph 1(c) by deleting therefrom the words "by unilaterally changing established terms and conditions of employment or." 2. Delete paragraph 1(d) and substitute therefor the following: "Refusing to bargain with the Union as the exclusive bargaining representative of its employees in the unit herein found to be appropriate." 3. Delete paragraphs 2(b) and 2(c) and redesig- nate paragraphs 2(d), 2(e), 2(f), 2(g), 2(h), and 2(i) as paragraphs 2(b), 2(c), 2(d), 2(e), 2(f), and 2(g), respectively. 4. Substitute the attached notice for the Trial Examiner's notice. 5 Electric Theater, et al., 156 NLRB 1351. 6 For the reasons stated by the Trial Examiner , Member Brown would find that the bargaining was conducted on a multiemployer basis and that Respondent , therefore , is bound to sign any agreement the other employers execute as a result of the 1970 negotiations. I Overnite Transportation Company, Inc., 175 NLRB No. 127. APPENDIX NOTICE To EMPLOYEES POSTED BY ORDER OF THE NATIONAL LABOR RELATIONS BOARD An Agency of the United States Government WE WILL NOT ask our employees to drop out of the Union or assist them in doing so. 1250 DECISIONS OF NATIONAL LABOR RELATIONS BOARD WE WILL NOT bypass the Union in dealing with our employees or ..ask our employees to sign contracts with the Company without the Union. WE WILL NOT discriminate against or discharge employees to discourage membership in the Union. WE WILL NOT in any other manner interfere with, restraint or coerce you in the exercise of your, rights to organize yourselves , to form, join, or , assist Sign and ,Pictorial Painters of Omaha, Nebraska , Local No. 752, affiliated with Brother- hood of Painters and Allied Trades, AFL-CIO. WE WILL, upon application, offer to Denzel E. Barnett, David Pyle , and Emil Lorence immedi- ate, and full reinstatement to their former jobs or, if those jobs no longer , exist, to substantially equivalent positions, without prejudice to their seniority and other rights and privileges , dismiss- ing, if necessary , any persons hired on or after June` 1; 1970. If jobs are not available , we will place their names on a preferential hiring list. 'WE WILL offer Robert Straka immediate and full reinstatement to his former job and pay him for wages lost from the ' date of his unconditional application for-reemployment in' September 1970. WE WILL, upon request, recognize and bargain with Sign and Pictorial Painters of Omaha, Nebraska , Local No. 752, affiliated with Brother- hood of Painter`s and,4llied Trades, AFL-CIO, as the exclusive representative of" all of the employ- ees in the bargaining unit described below,,with respect to rates of pay, wages, hours of employ- ment, and other terms and conditions of employ- ment and , if an understanding is reached , we will, upon request, embody such 'understanding in a signed contract. The bargaining-unit is"'. All sign painters and' ,helpers, designers, and sign ' hangers employed, by the" Employer, excluding office clerical, employees, ' guards and supervisors within the meaning of the Act. IMPERIAL OUTDOOR ADVERTISING (Employer) Dated By (Representative) (Title) We will notify immediately the above-named indi- viduals, if presently serving in the Armed Forces of the United States, of the right to full reinstatement, upon application after discharge from the Armed Forces, in accordance with the Selective Service Act and the Universal Military Training and Service Act. This is an official notice and,must not be defaced by anyone. This notice-must remain posted for 60 consecutive days,, from , the date of, posting and must not be altered, _defaced, or covered by any other material. ,Any., questions concerning, this, notice or compli- ance with its -provisions may be, directed to the Board's Office, 610 Federal Building, 601 East 12th Street, Kansas City, Missouri 64106, Telephone 816-374-5181. TRIAL EXAMINER'S DECISION ARTHUR , M. GOLDBERG, Trial Examiner : Based upon a charge filed on September 21, 1970,1 by Sign and Pictorial Painters of O"maha, Nebraska, Local No. 752,' affiliated with Brotherhood of Painters and Allied ' Trades, AFL-CIO`(herein called the Union or the Charging Party), the complaint herein issued on December '- 23,alleging. that Imperial Outdoor Advertising (herein called--Imperial or the Respondent) violated Section 8(&X 1), (3), and (5) rof the National Labor Relations Act, as amended (herein called the Act). The complaint alleged that, Imperial violated Section 8(a)(1),by offering _to sign individual contractswith its sign painters, threatening to discharge employees who refused to sign individual contracts or to end'their ' strike against-Respondent , suggesting that sign painters ' resign from the Union, telling its sign painters that it would never sign an agreement with the Union, 'advising an-employee that he would be considered for employment 'if - he withdrewt from- "the Union, and- assisting an employee in resigning from the Union. Respondent allegedly violated Section 8(aX3)^ by ,discharging its four sign painters while they.were engaged in a strike., The -putative 8(aX5) violation was spelled out, in paragraphs 8 'and 9 of the complaint set forth below: 8. On or about July 1, 1970, the Union and Sign Companies [an asserted multiemployer "bargaining group of which the Respondent ' was allegedly a member ] reached 'agreement on a collective bargaining contract covering all, the employees in the appropriate unit referred to above in paragraph-5 [a unit consisting of all "sign painters - and helpers, designers,, and sign hangers employed by the -employer members of Sign Companies."] 9. At all times s'to' ce July 1, 1970, Respondent has failed and refused sign- and execute the collective bargaining agreement referred to' in the i preceding paragraph 8, although requested to do so. -' As well, certain of the" acts alleged to have violated Section 8(a)(1) were alleged to have violated Section -8(a)(5) of the Act. The answer denied , all material allegations of the complaint including the, allegations ` pertaining to Sign Companies as a multiemployer bargaining group. All parties participated in - the hearing in Omaha, Nebraska, on February -9 and 10, 197„1, and were afforded full, opportunity to, be heard, to introduce evidence, to examine and cross-examine witnesses , and ,to present ,pral 1 Unless otherwise noted all dates herein were in 1970. IMPERIAL OUTDOOR ADVERTISING 1251 argument. Oral argument was waived and briefs were filed by General Counsel, the Respondent, and the Charging Party. Based upon the entire record in the case, my reading of the briefs, and from my observation of the witnesses and their demeanor, I make the following: FINDINGS OF FACT I. THE BUSINESS OF THE RESPONDENT Imperial Outdoor Advertising, a Nebraska corporation, is -engaged in outdoor advertising ., ' Imperial's Omaha; Nebraska, faciht}1 is Respondent's only location involved in this proceeding. In the course and conduct of its business operations Imperial annually sells products and services in excess of"$50 ,000 to customers ' located outside the State of Nebraska. The complaint alleged, the answer admitted , and I find that Imperial is and has been at all times material herein an employer engaged - in commerce within the meaning of Section ' 2(6) and (7) of the Act and -meets the Board's standards for assertion of its jurisdiction.2 IL THE .LABOR ORGANIZATION INVOLVED Sign- and Pictorial Painters of Omaha, Nebraska, Local No., 752, affiliated with Brotherhood of Painters, and Allied Trades, AFL-CIO, is and has been at all times material herein a labor organization within the meaning of Section 2(5) of theAct. i Products Co., Globe Neon, Omaha Neon, and Cronland Signs. As in prior years the companies signed identical individual contracts. - Beth Wofford, president of Neon Products, testified that. she participated in the, 1967 and 1968,negotiations as well as those in 1970 which led to the instant proceeding. Wofford stated that as far as she- was concerned the 1970 negotiations were no different, at all from the ones in prior years. Donald Tibbetts, president of Globe Neon Sign Company, agreed that the 1970 negotiations "were handled in much the same manner" as prior dealings with the Union. Tibbetts stated that the companies would get together and bargain with the Union. Neither Woffordnor Tibbetts understood the meaning of the term "multi- employer bargaining." Dayton Rasmussen, Jr., who represented Respondent in this proceeding, was the chairman of the employers' bargaining group in all -the negotiations in question and served as their chief spokesman. On November 1, 1968, Imperial purchased Naegle Outdoor Advertising. -Grant Mathey, Imperial's general manager and executive officer, of its Omaha installation, testified that as successor to Naegle Imperial observed Naegle's contract with the Union.. At the time Imperial took over from Naegle a number of the sign painters were told by Imperial officials and 'super'visors - that Imperial considered itself bound by Naegle's agreement with the Union. B. The Multiemployer Bargaining Unit III. THE UNFAIR LABOR PRACTICES A. Background For a number of years negotiations between the Union and a number of Omaha sign companies had been conducted- by the companies as a group with each participating employer signing an individual but identical contract. 'Chester Penix, the Union's business representa- tive, testified that he first took part in such negotiations in 1967 when the participating' companies were Naegle Outdoor Advertising, Globe- Sign Company, Neon Prod- ucts Company; Inc., and Prominent Signs . A fifth sign company, Omaha Neon Sign Co., sought to stand aside from those negotiations but ' was found in a Board decision) to be 'part of -the 'multiemployer bargaining group, bound by the outcome of the group bargaining, and was ordered- to execute the same contract which the other sign companies signed with the Union. In addition the Board found that Omaha Neon's employees were part of a bargaining unit which included the painters employed by the other sign companies- in the -multiemployer bargaining group. - The -1967 negotiations led to a 2-year contract containing a wage reopener after 1 year. In 1968 the wage reopener negotiations led to a new agreement with a term running until May 31, 1970. The companies involved in the 1968 negotiations were Naegle Outdoor Advertising, Neon a The issues arising from the complaint allegations concerning the existence of a multiemployer bargaining group and the parameters of the bargaining unit are treated below as going to the heart of the'alleged refusal The 1970 negotiations were initiated by the Union sending reopening letters on March 18 to six employers, Imperial, Omaha Neon, Neon Products, Globe Neon Sign, Cronland Sign, and Universal Sign Co. In this letter the Union asked for a meeting with the employers in early April. A few days thereafter Dixon, a representative of Cronland Sign, called- Penix, the Union'' s business repre- sentative, advised the Union that Cronland did not wish to be represented by Rasmussen in the upcoming negotia- tions, and agreed to sign any agreement which came out of the multiemployer bargaining. Thereafter, Cropland and Universal Sign signed interim agreements with the Union providing that the two employers, would .pay wages equal'to the Union's last demand, would adhere to any agreement reached in bargaining with the mulfiemployer bargaining group, and that in the event of a strike the employees of those employers signing the interim agreement would continue working. After mailing the letters to the employers Penix called Mathey of- Imperial who advised the union- agent that Rasmussen would represent Respondent in the upcoming', negotiations. Penix then called -Rasmussen and arranged' for the first bargaining meeting to be held on April 8. This meeting was held in Imperial's offices.' In their telephone conversation Rasmussen told Penix that he should contact the employers through Rasmussen. Further, Penix testified without contradiction that in this conversation Rasmussen to bargain., 3 170 NLRB No. 150. 1252, DECISIONS OF NATIONAL LABOR RELATIONS BOARD stated that .the employers would bargain as a group but would signindividual.contracts., Mathey testified that he deemed the multiemployer bargaining group to have-been ,dissolved when Imperial purchased Naegle.• Mathey did -' not ; communicate this understanding to the Union but stated that some time in January, he orally informed Rasmussen that Imperial did not wish to be apart of a.multiemployer bargaining group. Rasmussen did. not iinform Matheythat he had passed this information- on to, the Union. Rasmussen did not testify. Mathey=-testified that` he never communicated in writing Imperial's'-purported"intent to withdraw from the multiem- ' - :.ployer bargaining unit. Prior to-the first bargaining session with the Union there was a meeting of representatives of the various companies involved "in the ^-bargaining. 'Matheyhad received a call from-Mrs.- Wofford of 'Neon Products who informed him that- Rasmussen had- `suggested'- that the companies get together for convenience and'use` Imperial's conference room for bargaining meetings .` Mathey claimed that at their, meeting,", the employers agreed that they wanted Rasmussen to act as their bargaining agent but wished to negotigte, separately because'there were` differences in the way the"companies operated. Mathey testified, "I wanted to be alone, because we `were a-different'company from the other companies However, for convenience they would get together as this was` easier than conducting a number of separate negotiations. The first bargaining session was held on April 8 at Imperial's office. `Present for "the employers were Rasmus- sen and representatives of Imperial, Globe Neon, Neon Products;'and Omaha Neon. Penix represented the Union and was accompanied by three employees. PenbC testified that Rasmussen opened the meeting by stating that' the, employers- would' bargain` as a group for convenience but'wwould sign individual contracts. Further, Penix stated that Rasmussen advised that he would be chairman of the employer- negotiating group and that he represented all of the employers present Rasmussen stated as` well that' the"employers were not bargaining as an association. Mathey , `testified that Rasmussen opened the meeting with "`the statement that he' was representing each of the companies separately and that they were not bargaining as'' a collective group. Mathey stated that Penix neither objected 'nor 'raised any 'questions to Rasmussen's opening statement. Wofford stated, that Rasmussen opened each meeting, including that on April 8, with the statement that he was bargaining for each `company as an individual, that he was their attorney She further testified that Rasmussen stated that, the companies were bargaining at one time for the, convenience of the, individual sign companies and for the convenience ,of the Union. Tibbetts . of, Globe , ,Sign , Co. testified that Rasmussen opened , the, meeting with the statement that he represented 4 There was general agreement by all witnesses that there is no association of sign companies in Omaha and that there had not been such an association for many years . However, the fact that there is no "association" is not dispositive of the issue of whether there was a each company , individually, naming the companies in- ,- volvedG Employee Pyle also testified concerning Rasmussen's opening statement , at the April- 8 meeting but his testimony is not, helpful on--this point as the following question, and answer disclose: Q. You are not sure what Mr. Rasmussen said, then, at that session in his" "opening statement? A. [Pyle] No; no. In the absence of any record evidence that Imperial in any way or at any time prior to April 8 informed the_Union that it. wished to withdraw from the m"ultiemployer,unit of which it was admittedly aware, ,I . deem ; the opening statement by Rasmussen at the . April 8 meeting to be controlling of the question wheth er"the multiemployerunit continued beyond that date and l whether, Imperial , re- mained part of that unit , bound by whatever results, were, reached in its bargaining-, with the , Union . Further, if Respondent , entered the--bargaining as part of a multiemr, ployer unit, any subsequent effort by Imperial to withdraw from , the multiemployer negotiations , in the absence, o€ unusual conditions, and there are no,unusual , conditions shown here,5 would have been untimely.6 The controlling legal-elements in determining ,whether Respondent withdrew in timely fashion from the multiem- ployer bargaining'unit'were,succinctly ' stated -by the-Board in Retail Associates,' Inc., 120 - NLRB . 388, 393-394: ... the intention by a party to withdraw must be unequivocal , and exercised at a an ` appropriate' , time. [footnote omitted ] The decision to withdraw must' contemplate a sincere abandonment , with relative permanency, of 'the multiemployer- unit and the embracement of a different course of bargaining on an individual-employer basis. In the instant case determination of whether the intention to withdraw was "unequivocal" boils down to a resolution of, the conflicts in the ,, testimony concerning Rasmussen 's opening ,, statement at the April 8 meeting. Whether "the decision to - withdraw. [contemplated] a sincere, abandonment .., . of the multiemployer, unit and the embracement of a different course of bargaining on an individual-employer basis" must ' be determined- from,, actions in the bargaining , during the course of the meetings following April 8. , On the first issue, whether, there was an "unequivocal" withdrawal, Penix testified that Rasmussen stated on April,; 8 that the, companies would ,bargain as, a= groups for convenience ' but would; ,sign individual contracts, that Rasmussen would be chairman of, heremployer negotiating group, and that Rasmussen represented^all of=the employ- ers, present. Based on my observation of Penix during.his appearances on the witness stand I found himto; be a credible witness. While I do not accept his claim that ,„tire, parties ;had agreed upon all terms of a new collective agreement, this determination- , is based not,,upon,-my evaluation of, his personal credibility but rather. upon ;a choice between the testimony of equally credible witnesses, multiernployer bargaining unit. 5 Cf. U.S. Lingerie Corporation 170 NLRB No. 77 ; Spun-lee Corporation, 171 NLRB No.64.' 6 'Omaha Neon SignnCo, 170^NLRB No: 150. IMPERIAL OUTDOOR ADVERTISING Penix, Wofford, and Tibbetts, in a situation where Tibbetts and-, Wofford corroborated each other while Penix's testimony as to that aspect of the case was uncorroborated. Mathey "claimed that Rasmussen opened the April 8 meeting with the statement that he was representing each of the companies separately and that they were not bargaining as a collective group. Based upon my observa tion of Mathey as, a, witness `I do not credit his version of events except where he is unequivocably corroborated by a credible witness. In connection with Mathey's credibility in this proceeding I note the testimony of Joseph Scott, Respondent's plant manager during the time of the events herein: Scott,'whom I credit, testified that about the middle of May he asked Mathey how negotiations were proceed- ing. Mathey replied that the contract would be taken care of and that the Union had some surprises coming. Scott testified that Mathey "told" me that he had hired a very reputable "attorney, I believe his name was, that he identified him, Mr. Rasmussen, that he was quite capable, that this was his field, that he had success in breaking, union negotiations before and that everything was going along smoothly in the: negotiating at the present time." In theirf'testimony as to Rasmussen's opening statement on April 8, neither Wofford norTibbetts offered corrobora- tion to Mathey. Wofford testified that Rasmussen stated that he was "bargaining for each of us as an individual." This statement is more susceptible of interpretation as explaining Rasmussen's,role in the negotiations rather than in defining the status of the participating companies vis-a- vis the_ existing multiemployer bargaining unit. Thus, at best Rasmussen's statement as reported by Wofford was ambiguous and does not meet the Board's requirement that the intention to, withdraw be "unequivocal." I find, Tibbetts' version of Rasmussen's opening statement to be equally equivocal. Although this statement does not pertain as clearly to Rasmussen's position in the negotia- tions rather than that of the participating companies, it too can reasonably be, so, interpreted. I note that Rasmussen, who would, best know what he said on April 8, did not take the stand in this, proceeding. On the basis of the credited testimony I find that at the critical _time for withdrawal =from the multiemployer unit Imperial's authorized spokesman did not repudiate the ongoing existence of, the multiemployer bargaining unit and did not unequivocally express Imperial's intention to withdraw from the multiemployer unit. Further, the companies' course of bargaining which ended on July 1 fails to establish "a sincere abandonment . of the multiemployer unit and the embracement of a different course of bargaining on an individual-employer basis." Thus, a wage offer of 5 percent by Rasmussen on May, 25 was made on behalf of all four companies.? On May 27 Rasmussen raised the offer to 7 percent on behalf of all four employers. 3 As - to this increased wage offer Mathey testified, "We didn't speak individually for 7 Omaha Neon did not havea representative at the May-25 bargaining session. s, The revised collective agreement was submitted to the Union by Rasmussen as the "Company Proposal." The covering letter was on the letterhead of the Midwest Employers Council, Inc., and was signed MIDWEST EMPLOYERS COUNCIL, INC. /s/ Dayton 1253 ourselves." Finally, in connection with the nature of the bargaining much testimony was offered by Respondent that separate bargaining was desired and needed because the operations of the companies involved varied to a considerable degree and the one contract which they had executed in the past was inappropriate for the divergent operations. Yet, the formal contract proposal submitted by Rasmussen8 covered all four companies involved in the negotiations and there were no addenda adjusting the terms to meet the needs of, the individual employers. All things considered I find that at all times material herein Respondent was a member of a multiemployer bargaining unit, 9 that all sign painters and helpers, designers, and sign hangers employed by the employer members of that multiemployer unit 10 constitute a unit appropriate for the purposes of collective bargaining within the meaning of Section 9(b) of the Act, and that Imperial was bound by any agreement reached as a result of bargaining between the Union and-said multiemployer bargaining unit.11 C. The Issue of an Agreed Upon Contract 1. The 1970 negotiations At the April 8 meeting in Imperial's office Union Representative Penix distributed copies of the Union's proposal. Two items, the pension and the health and welfare plans, had been omitted from the draft and Penix read those proposals to the employers. As well, Penix announced that the Union was requesting a 35-percent wage increase. The balance of this meeting consisted of a point by point, discussion of the Union's, proposal with such items as the classification of employees debated at length. The meeting of May 14 was convened at Imperial's office. At this meeting Rasmussen read a counterproposal containing a number of changes in. contract language. Rasmussen agreed to send a copy of this counterproposal to Penix.12 The Union was still demanding a 35-percent raise and Rasmussen offered a 5-percent increase on behalf of the four companies in the bargaining group. The third bargaining meeting -was held in the officesi of the Federal Mediation and Conciliation Service but the mediator assigned to the negotiations was unable to attend. Management's counterproposal was discussed and the parties stayed with their wage proposals of 35 percent and 5 percent, respectively. The parties met again on May 27 at the mediator's office. On this occasion and all subsequent meetings the mediator was in attendance. This was the last meeting at which Imperial was present. Penix announced that the Union was rejecting Rasmussen's counterproposal. The Union re- duced its wage demands to 25 percent and Rasmussen offered 7 percent on behalf of the employer group. Tibbetts recalled that this wage, proposal was made as a "last offer:" Dayton O. Rasmussen, Jr., Executive Vice-President 9 Referred to in the complaint as "Sign Companies." 50 Imperial , Globe Neon Sign Co., Neon Products, and Omaha Neon. 11 Cf. Wm. T. Kirley Lumber Company, 189 NLRB No. 9. 12 See fn . 8, supra. 1254 DECISIONS OF NATIONAL LABOR RELATIONS BOARD The employers' -wage offer was tied to a no-strike commitment by the Union., The issue of subcontracting was discussed with the Union .asking for a limitation on management's right to subcontract and the companies insisting on no restrictions. ,Fenix said he would present the 7-percent wage offer to; a union meeting that -night but stated that,the proposal would be rejected. The penultimate bargaining session was held on June 22. The contract had expired on June 1 and the Union had called a strike against the four companies involved in the negotiations, including Imperial. Penix testified that he took note of Imperial's absence but raised no question as "[i]t was a common _practice for an employer to miss a meeting occasionally." Rasmussen reiterated the position that,a 7-percent increase was enough for anybody. As well, Rasmussen stated that Imperial and the Union were at an impasse on wages. The final bargaining session was held on July 1. For the employers only Rasmussen, and representatives of Neon Products and Globe Neon Sign were present. Mrs. Wofford opened the meeting with a report on her investigation of what other sign dbinpames in the West were paying to their painters. Penix testified that after an hour and a half of discussion the parties were "completely hung up on contractual language." The mediator suggested that the parties meet in separate caucuses. In one such session the mediator suggested to the employers that they make a new offer of 50 cents-per-hour effective at once, 25 cents effective January 1 1971, and an additional 50 cents to be paid July 1, 1971. In addition the mediator proposed that the, employers agree to moonlighting and trade board clauses,-that the language of the final contract be left to subsequent discussion, and that the 'employees go back to work. This offer was made to the Union by Rasmussen and accepted. Fenix -agreed that there was agreement on the wage increase and moonlighting and trade board clauses but that as to the contract itself the parties agree to continue with the language of the former agreement.'At that point, Penix ^ stated; he said he would, prepare copies of the contract-and mail them to the employers. Mrs. Wofford and Tibbetts testified to the agreement to continue meeting to work out the final language for the'collective-bargaining agreement. `As earlier noted I found the three witnesses, Penix, Wofford, and Tibbetts, to be credible. I choose the version offered by Mrs. Wofford and Tibbetts not only because of their earnestness in presentation but also because their conduct subsequent to the negotiations 13 was consistent with their understanding of the agreement as to contract language presented above. 2. The postnegot,iation events Sometime after July 1 Penix had mimeographed and mailed to ^ six, sign companies 14 copies of what he, characterized as the new contract. There was no covering letter with the contracts. Attached to the copies of the contract was a small piece of paper with a note reading "Please sign and return." 13 Set forth below. 14 Imperial , Globe Neon, Neon Products, Omaha Neon, Universal, and Cronland Sign. The Union received signed contracts, from, ,Cronland Sign, Universal, and Omaha Neon. Sam Marchese„owner of Omaha Neon since October, was unable, to explain the, circumstances under which -Omaha Neon had signed since at the time the documents were executed the company was a division of another company in Lincoln, Nebraska,and the documents had been signed by the former owner. All of the employers, other than Imperial, implemented the agreement to raise wages, which had been part of the,., understanding between the Union and the multiemployer bargaining,group on July 1,. Mrs. Wofford of Neon Products testified that after she received her two copies of the document she received a call, from Mathey of Imperial and ` that she in turn called, Rasmussen to ask what he knew about, the proposed agreement.. , Rasmussen told her that he didn't know^what'it was all about as he had not received, copies. Thereafter Tibbetts of Globe Neon called Wofford` to ask about the documents. Wofford testified that there had been no agreement on' a contract with the Union but that there had been agreement 'on wages and she had implemented the wage increase. As to the contract itself Wofford stated that there had been an understanding that the parties would meet once a month after JulyJ to straighten out the' contract language. ' " ; Tibbetts testified that some` time after he, had received the proposed contracts from the Union and had made' inquiry about them to Mrs. Wofford' and Rasmussen he received a visit from `Penix who asked if he would not sign the 'agreements." Tibbetts told the union agent that k was his understanding that -there, had been no agreement on'' wording and he'refused to sign. Penix testified that things had been heated during his visit 'to Tibbetts'. The union agent agreed" that Tibbetts had claimed that there were to be , further meetings with the mediator , to ^ work out the contract language. As noted,, I credit Tibbetts -and- Wofford as to their recollection on the matter of an agreed= upon contract. Accordingly, I find that the parties- had not reached agreement on a collective bargaining contract as alleged in the complaint and shall recommend dismissal-of `paragraph 9 of the complaint which alleged that Imperial"violated Section-'8(a)(5) of ' the Act by failing and refusing to sign,, and execute` the collective bargaining contract allegedly- agreed -upon on July ,1. Shreveport Garment Manufacturers, 133, NLRB 117. D. Individual Bargaining With the Employees' In the middle of May, about 2 weeks before the strike, Mathey called employees _ Emil Lor`ence and Denzel E.' (Gene) Barnett to the office. Mathey told the men that the Union was weak, did nothing for them, and`that_he did not know why they needed a union. Noting certain provisions in the contract which he disliked, Mathey told the men that he did not want a "union son-of-a-bitch" enforcing the terms of the. contract and telling him,how, to run his business. Mathey pointed out that the men were well paid, had good working conditions, received paid holidays, even IMPERIAL OUTDOOR ADVERTISING 1253 though there was no provision for such benefits in the old contract, that they had a smooth operation, and said he didn't know why they could not accomplish the same results without a union . Lorene testified that Mathey said he would be willing to sign individual contracts with the painters but that never under any circumstances would he sign a contract with, the Union. When Lorence replied that they were union, members and could- not sign separate contracts with him Mathey answered that they could quit the union . Lorence said that even if they wanted to quit the Union the_ other painters would not go along with such a move. Mathey commented that Lorene and Barnett did the bulk of the work in the paint, department, that they could get ,'along Without the others, and asked Barnett and Lorence to think over his proposal and give him an answer as soon as possible. Lorence replied that he did not believe there was anything for him to think about, that it was up to the- entire membership whether they went out on strike and not in the hands of just Lorence and Barnett. Lorence did not recall that Mathey had presented to them an individual contract for the employees to sign. Barnett testified that Mathey had handed him a contract which Mathey had prepared for Imperial and asked that they take it home and look it over. Shown-the contract that Rasmussen had presented as management's counterproposal during the negotiations Barnett testified that it "looks like the same one." 1s Mathey testified that in this conversation with Lorence and Barnett he had suggested that a revised agreement be reached which would-better represent actual conditions at Imperial. Mathey agreed that he had said that if an "SOB" came along who tried to enforce the literal terms of the old contract he could change Respondent's operations. Ma- they,denied that he had suggested individual contracts with the painters or that he had presented any proposed agreement to the men other than the Rasmussen counter- proposal` agreed to by all` the employers involved in the negotiations . Mathey testified that he gave a copy of the management ' counterproposal to one or both of the employees and asked that they take that contract home and look it over. Mathey -insisted that the proposed contract he had presented to the men had included the Union, was not a contract between Imperial and the individual painters , and -that while he said a number of times , that he would not sign the contract proposed by the Union he had not declared an intention not to sign a contract. Lorence testified that after the strike began on June I Mathey called him a number of times. Mathey asked why Universal was Working and Lorence explained that Universal had signed an interim agreement and Imperial could do the same . Mathey replied that he would sign contracts with the men individually but would not sign a union contract under any circumstances. Barnett testified that he received a call from-Mathey about June 10. Mathey told Barnett that "he could come back to work. When Barnett asked if Mathey had signed a contract, Mathey replied that, he had not but that there- was a contract available if Barnett wanted to resume work. Barnett checked with the other men as he had told Mathey he would do and learned that they had been all called by Mathey with whom they had had a similar conversation. Mathey testified that he called the men to learn why they were on strike because he "never received notice that they had rejected our thing." Joseph Scott, Respondent's then plant superintendent, testified that about 2 weeks after the strike began Mathey told him that Respondent's owner was prepared to go to great lengths to keep the Union out of Imperial. About a week later, Scott testified, during a discussion about the crew which had been hired as strike replacements and their production and -quality, Mathey spoke to Scott about getting Emil Lorence to return to work. Mathey suggested that Scott visit Lorence at home and see if Lorence would return to Imperial "but not under the union authority or under union contract." Scott visited Lorence at the latter's home and reported what Mathey had said. Scott told Lorence that he was there on a mission to see if Lorence would return to work without the Union. Lorence refused to do so. Lorence corroborated Scott's testimony about his visit to Lorence's home and what was said on that occasion. Mathey did not refer to Scott's testimony during his own appearance as a witness nor did he deny Lorence's account of Scott's visit. Thus, Scott's testimony as to his conversations with Mathey- and the evidence of Respon- dent's plant superintendent's visit to employee Lorence's home stand unrebutted-. As noted above, I do not credit Mathey except when he is corroborated by a credible witness. I find no such corroboration in the record for Mathey's denials that he had sought through individual bargaining with the employ- ees to enter into separate contracts with them in denega- tion of Imperial's statutory obligation to deal with their collective bargaining agent. In concluding that Respondent violated Section 8(a)(5)-by such conduct I credit Lorence, whom I found to be an impressively credible witness, and Barnett and Scott in their version of the events set forth above. I further find that Respondent conditioned further employment of the striking employees upon their disavow- al of the Union and their entering into separate contracts with Imperial and thereby violated Section 8(a)(1) and (3) of the Act. E. The Strike, Discharge q f the Employees, and the - Strike Replacements, On June 1 the contract expired and the Union struck Imperial, Globe Neon,' Neon Products, and Omaha Neon. That same day Mathey called Lorerice to ask why Lorence had not reported for work. "Lorene explained that the men were on strike. Mathey complained that only Imperial's employees were on' strike while the other shops were working. After Lorence stated that Mathey was mistaken, Mathey said that he thought that Lorence should come in to work and that "as of today (Lorene] still had a job with Imperial." Lorence replied that he could not come in to work. Mathey- asked Lorence to come in to talk the next day and after Lorence explained that he could not do so 15 Except where noted in the text the foregoing account of this conversation is based on a- synthesis of the credited testimony of Lorence and Barnett. 1256 DECISIONS OF NATIONAL LABOR RELATIONS BOARD because he was scheduled to enter the hospital, Mathey stated "I repeat, you still have a job with me today." As noted above in Section III, D, during June Mathey made a number of attempts to persuade the employees to return to work without the Union. On or about June 6 Imperial began hiring replacements for the striking employees. The first replacement was Anderson who had been first hired by Respondent in Omaha in 1969 and was subsequently transferred to Lincoln. After the strike began Anderson was brought back to Omaha on June 6. Mathey testified that he discussed wages with Anderson and they agreed on an hourly rate of less than $4, a figure below the wage rate established by the contract which expired on May 31.16 Mathey, testified that additional replacements were hired on June 11 and 16 and July 5 or 6 and than a fifth man was hired in August. Except for the men hired on June 11 or 16 and in August the replacements are still employed by Respondent. Mathey testified that none of the replacements was hired at a wage equaling that set forth in the expired contract. Mathey did not discuss with the Union the wage rates being individually negotiated with the replacements. On June 24 Respondent mailed the following letter to each of the striking employees: In as much as-you have terminated your employment as of June 1, 1970, your insurance conversion privilege extends only until June 30, 1970. You may contact Banker's Life of Nebraska's General Office in Lincoln who will process your application for conversion at your request prior to June 30, 1970. To assist you, I have ordered conversion forms and will have them in my office by Thursday, June 25th and if not picked up on Thursday, I will mail one to your -home so that you can have it by Saturday, June 27, 1970 at the latest. Mathey testified that he sent the letter to the employees as a favor to them and had gone to the trouble of obtaining the insurance conversion forms out of the same motives. He assumed that when the employees did not show up for work on June 23 that they no longer intended to work for Imperial. Mathey testified that none of the men asked to come back to work on June 24 and the conversion forms were mailed to them. While I have heretofore found that the negotiations did not lead to an agreement upon all the terms and language of a collective bargaining contract and that therefore Respondent's refusal to sign and execute the contract forwarded by the,Union was not a violation of Section 8(a)(5), the record does establish clearly that Imperial did not enter into the negotiations with the good faith intent of reaching agreement with the Union. In a conversation with Respondent's Plant Superintendent Scott, Mathey dis- closed Respondent's plan of action when he stated that the Union had some surprises coming and that Respondent's bargaining agent "was quite capable, that this was his field, that he,had success in breaking union negotiations before and that everything was going along smoothly in the negotiating at the present time." While still at the bargaining table Mathey attempted to persuade the 16 That contract provided that as of December 1, 1969, the rate for Journeymen Sign Painters would be $4.55 per hour and the rate for Sign employees to - give up the Union and enter into separate contracts with Respondent. After the strike began,Mathey continued his efforts to have the employees renounce' the protection, of a union agreement, sending, Scott to Lorence's home to ask Lorence to return to workf on the condition that he give up the Union. Scott's visit to Lorene, preceded the dispatch of Mathey's'letter- announc- ing that the employees had terminated'their employment as of June 1. I find that these unfair labor practices, coupled with Respondent's self-acknowledged withdrawal from-the multiemployer bargaining after May 27 was conduct which "tends to prolong the dispute." Astro Electronics, Ine.; 188 NLRB No. 92. Whether or,, not conceived by the,Union at the outset as an economic strike, Respondent's 'conduct converted the strike into an unfair'labor practice strike and the strikers are entitled to the protection which the status of unfair labor practice strikers affords them.. Astr,,o Electronics, Inc., supra. Despite Mathey's testimony that the letter of June 24 was sent because, he assumed that when the employees did not show up for ,work on June 23 they,-nolonger intended to work for Imperial, the letter set the date; on which Ahe employees had terminated their employment with Respon- dent as June 1. That this difference; in-date is more. than academic is shown by the impact on` the employees'. right of insurance conversion. If Respondent could consider their employmentat an end as of June 1; those conversion rights expired only 6 days after' 'the letter ''was' sent. Assuming that Respondent had a 'right to terminate their employment as of the date of the letter, those fights would have run an additional 24 days. In any event it was Imperial which close'the effective date of the employees' termination and Respondent set that 'dale as June, l: On that date, whether the strike was economic in nature or-as heretofore' found was an, unfair labor practice strike because of Imperial's conduct, the, employees, were en- gaged unprotected concerted activity and had not, been replaced. Accordingly, by terminating the employees as of June 1 Imperial violated, Section'8(a)(3) and (1) of the Act. N.L.R.B. v. U.S. Cold Storage - Coip., 203 F.2d 924,. 927 (C.A. 5), cert. denied 346 U.S. 818. . Finally, Respondent's unilateral change, in the wages of painters effectuated-in the employment of "the replacements at wages below those established in' the last collective bargaining agreement violated Section 8(axl) and (5) of the Act. Harold W. Hinson, d/b/a Hen House Market No. 3, 175 NLRB' No. 100. 'Absent- unusual circumstances requiring deviations in terms and conditions of employ- ment to' ''insure the continuance of ' operations 17 an employer may not unilaterally change the economic terms of, an expired collective bargaining agreement without prior notification to the collective bargaining, representa- tive. Bethlehem Steel Company (Shipbuilding, Division) v. N.L.R.B., 320,F.2d 615 (C.A.3), cert., denied375,U.S. 984. There was no showing of such unusual circumstances in this proceeding. Painters Helpers was set at $4. 17 M. R. & R. Trucking Co. v. N.LR.B., 434 F.2d 689, 696'(C.A. 5). IMPERIAL OUTDOOR ADVERTISING F. Robert Straka's Withdrawal From the Union Robert Straka was first employed by_ Respondent on November 11-,-1 9,69. Straka was not paid at the journeyman rate while employed by Respondent. Mathey testified that Straka had been employed ^ as an apprentice- Straka testified without contradiction that at the time he was hired Mathey told him "not to join the-union because it would only get, me, screwed, up. Straka did' not inform Mathey that he had joined the Union until about 2 weeks before the June 1 strike. At that time. Mathey asked a number of employees if they were planning to strike. When he was told - that , they, were--planning to go on strike unless he signed the union contract Mathey asked, Straka if he had joined the Union. Straka replied„that he,had. Mathey then said, that--he had been planning to have Straka work while the others were on strike. Straka joined the .strike on June 1 and received a:copy of Mathey's_ June 24 letter, advising that Straka had terminat- ed his employiuent,as of.June 1. Straka 'worked for Omaha ,Neon from, early July until September 5, Upon his layoff byOmaha Neon Straka went to- Imperial to talk to- Mathey about a job. Straka testified that Mathey- asked if, he was still in -,the Union. Straka replied that, he was, and I,athey,asked-if he was going to get, out of the Union. Straka ,then asked. Mathey if he withdrew, from the U nion, andcould show athey that he was ?getting out, ,what:good would "it do him. ;Mathey replied that if Straka.dropp-ed out of the Union,he would talk to Straka,abouta Job. Straka claimed that Mathey told him to write. a ,,certi`fied or, registered letter to the Union stating. that he wished to withdraw. Straka wrote out on a piece of Imperial's stationery a letter reading: Local Union 752, ,This is a letter,of resignation for the Sign Painters ,Local, Union '752. From this date on (9-10-70),; I am no longer a member of the union. My dues have expired or will, have shortly. This is also cause to be dropped from the,union., After, writing out, the letter, Straka asked Respondent's receptionist to type an envelope with the union address, which she did, and he then gave her the letter in the unsealed envelope with the request that she show it to Mathey before mailing. Straka did not mail the letter. Straka testified that he made` 'a number of visits to Imperial. At one point when Straka- asked about a job Mathey said that he did not think he would be, giving Straka a job because the paint crew was ' doing a good enough jcb and that he would have, to fire one of them to make room for- Straka . Mathey advised Straka to-'"check back in a couple: of weeks.- A, bout'September, 20 Straka again , contacted 'Mathey and was told there was nothing available for--him:, Straka testified that Mathey at no time told him that there was an opening at Imperial but that he was -under- the impression that if he withdrew from the Union-he would definitely get his job back. Mathey testified that Straka visited the plant 10 to, 15 times starting in August or September- and called Mathey at home ; as °welh-Straka was told that there- was no opening for him at Imperial. Mathey claimed that the office 1257 secretary and receptionist heard Straka say that he would drop out of the Union if he could have his job back.18 Mathey stated that he never , saw -Straka's letter, of withdrawal from the Union, noting that Straka had worked -for Imperial- long enough to know that -if he wanted something to be brought to Mathey 's attention it should have been given to Mathey's secretary whotook care of his mail rather than to the receptionist: Mathey testified that at one point Straka asked for- advice about withdrawing from the Union. Mathey had answered- that he -did -not know how this - was to be done but that, he would check with his attorney if Straka 'wished .- Mathey 'testified that there was no followup to'this 'offer. - ' As is so often the case determination of the credibility of witnesses, who, have given conflicting versions of, the same transaction is` determinative of whether General - Counsel has sustained his burden of proving ' allegations ' in the complaint. However, there are certain facts which tend to tip the balance toward a finding for General Counsel other than the ,'ultimate" choice between Straka's and Mathey's versions `of Ithe events . The ithdrawal letter was handwrit- ten on Imperial's letterhead' and the envetope was typed on Imperial stationiy Respondent's stationery would not have been available for the purpose of Straka 's withdrawal if Respondent was not , at ,least cooperating with Straka in withdrawing from the Union. Although Mathey claimed that the receptionist and secretary had heard Straka make statements about his willingness yto withdraw from the Union neither was called to corroborate his testimony. Finally, Straka 'sclaim that , Mathey had , conditioned consideration , of Straka's, application for, reemployment upon, withdrawal from the Union was consistent, with Mathey's repeated efforts to separate the employees from their collective bargaining , agent. Although Copy with citationCopy as parenthetical citation