International Association of Heat and Frost Insulators and Asbestos WorkersDownload PDFNational Labor Relations Board - Board DecisionsDec 29, 1955114 N.L.R.B. 1526 (N.L.R.B. 1955) Copy Citation 1526 DECISIONS OF NATIONAL LABOR RELATIONS BOARD stantial community of interest with other employees in the units, and in accord with our usual practice, shall exclude them." Accordingly, we find that all employees at each of the Employer's establishments in California, including mechanics, welders, helpers, machine tool operators, painters, steam cleaners, janitors, outside serv- icemen, shipping and receiving clerks, partsmen, warehouse employ- ees, equipment craters, and truckdrivers, but excluding office clerical employees, salesmen, guards, and supervisors as defined in the Act, constitute- separate units appropriate for the purposes of collective bargaining within the meaning of Section 9 (b) of the Act. I [The Board dismissed the petitions in Cases Nos. 21-RM-352 and 21-RM-354.] [Text of Direction of Elections omitted from publication.] MEMBERS MURDOCK and BEAN took no part in the consideration of the above Decision, Order, and Direction of Elections. 17 Westinghouse Electric Corp., 110 NLRB 475; Ozark Manufacturing and Supply Com- pany, 108 NLRB 1476. International Association of Heat and Frost Insulators and Asbestos Workers, AFL-CIO,' Local 31, and Prescott Jentzel, its business agent and John Frank and Joseph S. Aguiar. Case No.1-CB-. 84. December 29,1955 DECISION AND ORDER On February 2, 1955, Trial Examiner Sidney Asher issued an Order in the above-entitled proceeding, finding that the Company's opera- tions in interstate commerce did not meet the Board's jurisdictional standards, and granting the Respondents' motion to dismiss the com- plaint in its-entirety. Thereafter, the General Counsel filed a request for review. On March 10, 1955, the Board ordered the record re- opened and the case remanded to the Trial Examiner for a further hearing pertaining to the Employer's involvement in interstate com- merce. On May 27, 1955, the Trial Examiner issued an Intermediate Report in this case, wherein he found, upon the additional commerce data presented at the second hearing directed by the Board, that the Company's operations meet the Board's jurisdictional standards. He further found, from the entire record, that the Respondents had en- gaged in and were engaging in certain unfair labor practices and recommended that they cease-and desist therefrom and take certain 1 The AFL and CIO having merged subsequent to the hearing in this proceeding, we are amending the identification of the affiliation of the Union accordingly. 114 NLRB No. 236. INTL. ASSN.' OF HEAT AND FROST INSULATORS, ETC. 1527 affirmative action, ,as set forth in the copy of the Intermediate Report attached hereto. The Trial Examiner also found that the Respqwdents had not engaged in certain other unfair labor practices alleged in the complaint. Thereafter, the Respondents filed exceptions to the Inter- mediate Report, together with a supporting brief: The Board has reviewed the rulings of the Trial Examiner made at the hearings and finds that no prejudicial error was committed. The rulings are hereby affirmed. The Board has considered the Inter- mediate Report, the exceptions and brief of the Respondents, and the entire record in the case and hereby adopts the findings, conclusions, and recommendations of the Trial Examiner.' TIIE REMEDY In the light of the testimony of Respondent Union's business agent, Prescott Jentzel, detailed in the Intermediate Report,,it appears that the Respondents have on occasions in the past committed violations of the Act, similar to the unfair labor practices herein, but involving employers other than Rhode Island Covering Company. Moreover, it appears from Jentzel's testimony that the Respondents are likely to continue to commit such violations when situations similar to those in the instant case occur within its territorial jurisdiction. Accordingly, we shall adopt the Trial Examiner's recommendation with respect to the scope of the cease and desist order, and we shall enjoin the Re- spondents from the commission of similar illegal action not only with respect to the Company, but also with reference to any other employers.3 ORDER Upon the entire record in this case, and pursuant to Section 10 (c) of the National Labor Relations Act, as amended, the National Labor Relations Board hereby orders that the Respondents, International Association of Heat and Frost Insulators and Asbestos Workers, AFL-CIO, Local 31, its agents, successors, and assigns, and Prescott Jentzel, business agent of the said Respondent Union, shall: 1. Cease and desist from : (a) Maintaining, applying, enforcing, interpreting, performing, or giving effect to any contract, agreement, arrangement, understanding, or practice with Rhode Island Covering Company, or any other em- ployer, in such a way as to grant job preference in insulating work to 2 The-Trial Examiner found that the union-security provisions of the May 27, 1954, con- tract between the Respondent Union and the Company were not illegal, per se, and he accordingly concluded that the Union did not violate the Act by executing the contract containing such provisions . As no exceptions were filed with respect thereto, the Board adopts the Trial Examiner's findings and conclusions in this regard without passing upon their merits Cf. N. L. R. B. v United Mine Workers of America, District 31, et al , 198 F 2d 389 (C. A. 4) ; United Marine Division, Local 333 , International Longshoremen's Association (Independent ), 107 NLRB 686, 702. 1528 DECISIONS OF NATIONAL LABOR RELATIONS BOARD employees, or applicants for employment, who possess or obtain meln- bershjF in or clearance from the Respondent Union, except to the extent permitted by Section 8 (a) (3) of the Act. (b) Causing or attempting to cause Rhode Island Covering Com- pany, or any other employer, to discriminate against employees or prospective employees in violation of Section 8 (a) (3) of the Act. (c) In any other manner restraining or coercing employees or pro- spective employees of Rhode Island Covering Company, or any other employer, in the exercise of the rights guaranteed in Section 7 of the Act, except to the extent that such rights may be affected by an agreement requiring membership in a labor organization as a condi- tion of employment, as authorized by Section 8 (a) (3) of the Act. 2. -Take the following affirmative action which the Board finds will effectuate the policies of the Act : (a) Notify Rhode Island Covering Company, in writing, that they withdraw their objections to the reassignment of John Frank and Joseph S. Aguiar to insulating work on the Rhode Island Hospital project; or if the Company's part of such project has been completed, that they have no objection to the employment of the above-named employees in insulating work on any other project within the geo- graphical area over which the Respondent Union claims jurisdiction. (b) Furnish copies of the said notification to John Frank and Joseph S. Aguiar. (c) Post at the Respondent Union's office in Cranton, Rhode Island, copies of the notice attached marked "Appendix A." 4 Copies of the said notice, to be furnished by the Regional Director for the First Re- gion, shall, after being duly signed by the Respondent Union's repre- sentative and by Respondent Jentzel, be posted by the Respondents 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 of the Respondent Union are customarily posted. Reasonable steps shall be taken by the Respondents to insure that said notices are not altered, defaced, or covered by any other material. (d) Mail to the said Regional Director signed copies of the said notice for posting, the Rhode Island Covering Company willing, in the Company's office at Providence, Rhode Island, for sixty (60) con- secutive days, in places where notices to employees are customarily posted. Copies of the said notice, to be furnished by the said Regional Director, shall, after being duly signed as aforesaid, be forthwith re- turned to the said Regional Director for such posting. 4 In the event that this Order is enforced by a decree of a United States Court of Appeals, there shall be substituted foi the words "Pursuant to a Decision and Order" the words "Pursuant to a Decree of the United States Court of Appeals , Enforcing an Order." INTL. ASSN. OF HEAT AND FROST INSULATORS, ETC. 1529 (e) If the Rhode Island Covering Company's part of the Rhode Island Hospital project has not been completed, mail to the said Re- gional Director signed copies of the said notice for posting, the project manager willing , in conspicuous places at the site of the said project, for sixty (60) consecutive days, or until the Rhode Island Covering Company's part of the said project is completed, whichever is shorter. Copies of the said notice, to be furnished by the said Regional Di- rector, shall, after being duly signed as aforesaid, be forthwith re- turned to the said Regional Director for such posting. (f) Cause, at their expense, the said notice to be printed in a news- paper of general circulation in Providence, Rhode Island. 3. The Respondent Union shall take the following affirmative ac- tion, which the Board finds will effectuate the policies of the Act : Make whole John Frank and Joseph S. Aguiar for any loss of earnings they may have suffered because of the discrimination against them, in the manner set forth in that portion of the Intermediate Report entitled "Recommendations:" 4. In addition, both Respondents shall take the following affirma- tive action, which the Board finds will effectuate the policies of the Act : Notify the said Regional Director in writing, within ten (10) days from the date of this Order, what steps the Respondents have taken to comply herewith. IT IS FURTHER ORDERED that the complaint, insofar as it alleges that the Respondents committed violations of the Act different from those found in this Decision and Order to have been committed, be, and it hereby is dismissed. MEMBERS MURDOCK and BEAN took no part in the consideration of the above Decision and Order. INTERMEDIATE REPORT This proceeding involves allegations that International Association of Heat and Frost Insulators and Asbestos Workers, AFL, Local 31, Cranston , Rhode Island, herein called the Union or the Respondent Union, and Prescott Jentzel , Cranston, Rhode Island, its business agent, herein called Jentzel or Respondent Jentzel,1 have since May 27, 1954, restrained and coerced employees of Rhode Island Covering Com- pany, herein called the Company, and caused or attempted to cause the Company to discriminate against its employees and prospective employees in regard to hire or tenure of employment and other terms and conditions of employment . It is alleged that such conduct violated Section 8 (b) (1) (A) and (2 ) of the National Labor Relations Act, as amended (61 Stat. 136), herein called the Act. Separate charges and amended charges were filed by John Frank and Joseph S. Aguiar. After the issuance of a complaint by the General Counsel,2 the Respondents filed a joint answer denying that the Company was engaged in commerce within the meaning of the Act and denying the commission of any unfair labor practices . A hearing was held before me on November 23 and 24, 1954, at Providence , Rhode Island. The General Counsel and the Respondents were represented and participated fully in the hearing. 1 The Respondent Union and Respondent Jentzel will be referred to collectively as the Respondents. 2 The designation General Counsel is intended to include the General Counsel of the National Labor Relations Board and his representative at the bearings. 1 530 DECISIONS OF NATIONAL LABOR RELATIONS BOARD After the General Counsel had completed his evidence with regard to the Company's operations, the Respondents moved to dismiss the complaint in its entirety on the ground that the evidence did not warrant the assertion of jurisdiction by the Board.3 I reserved ruling on the motion. After the close of the hearing, the Respondents sub- mitted a joint brief, which has been considered. On February 2, 1955, I issued an order granting the Respondents' motion to dismiss the complaint in its entirety. Thereafter, the General Counsel filed with the Board a request for review, in which he urged that the order of February 2, 1955, be reversed and a finding made that the Company is engaged in commerce within the meaning of the Act. In the al- ternative, the General Counsel requested the Board to remand the case to the Trial Examiner with instructions to reopen the record to take further evidence with re- spect to the operations of the Company. The Respondents 'filed an opposition to the General Counsel's request. On March 10, 1955, the Board ordered the record reopened and the case remanded to the Trial Examiner for a further hearing "for the purpose of adducing evidence pertaining to the precise business and operations of the Rhode Island Covering Company, the dollar volume of its business and the sources from which it is derived, and the nature of the office, or offices, it main- tains in Worcester, Massachusetts, or elsewhere" and that, upon conclusion of the hearing, the Trial Examiner prepare an Intermediate Report containing additional commerce findings based upon the evidence adduced at the reopened hearing and, if assertion of jurisdiction is warranted, decide the case on the merits. In accordance with this Order, a remanded hearing was held before me on March 28, 1955, at Providence, Rhode Island. The General Counsel and the Respondents were rep- resented and participated fully in the hearing.4 Although granted time within which to do so, no party has filed with me any additional brief. Upon the entire record of both the original hearing and the remanded hearing in this case, I make the following: FINDINGS OF FACT 1. JURISDICTION A. Jurisdictional facts The Company is a Rhode Island corporation, with places of business in Providence, Rhode Island; Worcester, Massachusetts; and Norwich, Connecticut. It is engaged in the sale and application of insulating material and kindred materials. As a sub- contractor in the construction industry, the Company executes agreements with general contractors whereby it undertakes to supply and install insulating material and kindred materials. In addition, it sells insulating material and kindred materials to be applied by the purchaser rather than by the Company. The Company maintains its principal warehouse and office at Providence. This is the only establishment involved in the present proceedings. Eleven salesmen work out of the Providence office; their function is to sell subcontracts to general con- tractors under which the Company agrees to furnish insulating material and to apply such material to buildings under construction. In addition, the Company hires work- men at the Providence office who are engaged in insulating work on contracts out of the Providence and Norwich offices. The payroll for these employees is made up at the Providence office. The Company has a central billing system under which all customers (except for cash sales ) are billed from the Providence office, regardless of where the work was performed or the sale was consummated. The Providence warehouse ships insulating material and kindred materials to the Worcester and Norwich warehouses. The Company's Worcester establishment has been maintained for about 5 years. It consists of an office and warehouse. There is an employee on duty during regular working hours. In addition, 2 salesmen worked out of the Worcester office in 1953 and 3 salesmen in 1954. Employees engaged on construction jobs handled by the s At the original hearing no evidence was adduced regarding the amount of the Com- pany's gross receipts for any period, the amount of its purchases of raw materials, or the amount of products sold by it. The only evidence submitted on the Jurisdictional Issue was that, during the fiscal year ending January 31, 1954, the value of work performed by the Company in the Commonwealth of Massachusetts totaled "more than $150,000" and the value of work performed by the Company in the State of Connecticut "might be some- where around" $25,000. 4 The Company, which was named in the complaint as "Party to the Contract," although served with copies of both notices of hearing, complaint, charges, and amended charges, neither filed an answer nor a formal appearance at either hearing. INTL. ASSN. OF HEAT AND FROST INSULATORS, ETC. 1531 Worcester office are normally hired in Worcester by the employee on duty there. But occasionally employees are transferred from Providence to the Worcester office. The payroll for the Worcester employees is compiled in Worcester and payment is made by checks drawn on a Worcester bank. The employee on duty at the Worcester office also sells insulating material and kindred materials to "anyone de- siring them ," for application by the purchaser . If such a sale is on credit the purchaser is billed from the Providence office; but if the purchase is a cash trans- action the cash is received by the employee in Worcester. The Company annually files a certificate of condition with the Department of Corporations and Taxation of the Commonwealth of Massachusetts , and also pays to Massachusetts a tax on personal property located within that Commonwealth. The total contract price received by the Company pursuant to contracts performed in Massachusetts which were completed and billed during the fiscal year ending January 31, 1954, was $117,467. Of this amount, $53,934 represents receipts from jobs on which the labor was supplied from the Worester office while the materials were shipped from Providence, and the remaining $63,533 represents receipts from jobs handled directly out of Providence (the labor and materials being supplied from the Providence office). The total contract price received by the Company pursuant to contracts performed in Massachusetts which were completed and billed during the fiscal year ending January 31, 1954, was $283,030. Of this amount, $142,720 rep- resents receipts from jobs on which the labor was supplied from the Worcester office while the materials were shipped from Providence. The remaining $140,309 repre- sents receipts from jobs handled directly out of Providence. In addition, in both fiscal years, there were jobs for which both the labor and the materials used origi- nated in Worcester.5 The Company has maintained an office and warehouse in Norwich for about a year. The Norwich office does no estimating or planning for construction jobs. No salesmen work out of the Norwich office and no insulating employees are hired there. All insulating employees who work out of the Norwich office are listed on a payroll prepared in Providence which also contains the Providence employees. The mate- rials used on construction jobs handled by the Norwich office are usually shipped there from the Company's Providence warehouse. The Company pays a sales tax to the State of Connecticut for goods sold in that State. While the record is not en- tirely clear, it also apparently files with the State of Connecticut a certificate similar to the certificate of condition filed in Massachusetts, and pays a "profits tax" to Connecticut. The total contract price received by the Company pursuant to contracts performed in Connecticut which were completed and billed during the fiscal year ending Janu- ary 31, 1954, was $48,872, all of which represents receipts from jobs handled di- rectly out of Providence. The total contract price received by the Company pursu- ant to contracts performed in Connecticut completed and billed during the fiscal year ending January 31, 1955, was $65,873. Of this amount, $1,798 represents re- ceipts from jobs on which the labor was supplied from Worcester, while the mate- rials were shipped from Providence. The remaining $64,075 represents receipts from jobs handled directly out of Providence. For the fiscal year ending January 31, 1954, the total dollar volume of business done by the Company at all locations was $922,691. Of this amount, $528,822 ,(roughly 57 percent) represents receipts from subcontract work performed by the Company and. $393,869 (roughly 42 percent) represents receipts from sales of mer- chandise not applied by the Company itself but by the purchasers. For the fiscal year ending January 31, 1955, the total dollar volume of business done by the Com- pany at all locations was $1,198,710. During the fiscal year ending January 31, 1954, the total dollar value of sales of merchandise shipped from the Company's Providence warehouse to its Worcester and Norwich warehouses was $137,953.6 During the fiscal year ending January 31, 1955, the total dollar value of sales of merchandise shipped from the Company's Providence warehouse to its Worcester and Norwich warehouses was $128,461.7 'All such merchandise was sold at the Worcester and Norwich warehouses for appli- cation by the purchasers. The record contains no evidence with respect to the Company's purchases. s Exhibits purporting to show that these jobs totaled $342 in the fiscal year ending January 31 , 1954, and $400 in the fiscal year ending January 31, 1955, were rejected under the best evidence rule This excludes $503 sales tax paid to the State of Connecticut. 7 This excludes $625 sales tax paid to the State of Connecticut. 1532 DECISIONS OF NATIONAL LABOR RELATIONS BOARD B. Contentions and conclusions regarding jurisdiction The General Counsel, in oral argument, seems to take the position that the Com- pany was not engaged in "the type of multistate enterprise that the Board would con- template" because the main business is in Rhode Island and the Massachusetts and Connecticut establishments are smaller offices maintained merely for conven- ience. On the other hand, the Respondents contend that the Company constitutes a multistate enterprise. In this respect, I agree with the contention of the Respondents As it is clear that the Company's overall establishment is maintained in substantial respects in all 3 States, and the 2 branch locations form an integral part of the enter- prise, the Company properly falls within the Board's standards applicable to multi- state enterprises.8 The Board has established two separate sets of standards for multistate enter- prises. One applies to any multistate enterprise which constitutes "an establishment other than retail." 9 The other is applicable to multistate chains "of retail stores or service establishments." 10 At oral argument, the General Counsel maintained that the Company is not a retail outfit but "a service establishment," on the ground that at least the majority of its sales of merchandise is at wholesale, and that the retail transactions, if any, are insufficient in volume to constitute the Company a retail establishment. The Respondents do not appear to have taken a position on this matter. Nelson B. Swanson, president of the Company, testified that the sales made by the Company were wholesale in nature. Moreover, more than half the Company's gross income in the fiscal year ending January 31, 1954-the year in which the un- fair labor practices are alleged to have occurred-was derived from subcontracting activities. I deem subcontracting to be an operation "other than retail" rather than "service." 11 For these reasons, I conclude that the Company constitutes "an estab- lishment other than retail" and I will therefore apply the standards for that category. The Board will assert jurisdiction over "an establishment other than retail which is operated as an integral part of a multistate enterprise" if the particular establish- ment involved (here the Providence office) meets any of the standards applicable to an individual establishment (not part of an interstate enterprise). The Board will assert jurisdiction over any individual establishment which annually "produces or handles goods and ships such goods out of state . valued at $50,000 or more." 12 In the instant case, it appears from the record of the remanded hearing that the Providence office in each of the 2 fiscal years for which figures are available handled merchandise and shipped such merchandise to the Massachusetts and Connecticut warehouses totaling more than $50,000. Accordingly, the Company's Providence operations fall within the Board's jurisdictional standards. In view of the above, I find that the Company, at all material times, has been engaged in commerce within the meaning of the Act at its Providence establishment, and that it would effectuate the purposes of the Act for the Board to assert juris- diction over these operations. Accordingly, because of evidence not adduced at the original hearing but now properly before me, the order issued by me on February 2, 1955, is hereby rescinded, and the Respondent's motion to dismiss the complaint in its entirety is denied. II. THE RESPONDENTS The Respondent Union was, at all material times, a labor organization within the meaning of Section 2 (5) of the Act. Respondent Jentzel was, at all material times, business agent of the Respondent Union and its "agent" within the meaning of Sections 2 (13) and 8 (b) of the Act. Fort Knox Construction Company, 112 NLRB 140. e Jonesboro Grain Drying Cooperative, 110 NLRB 481. is Hogue and Knott Supermarkets , 110 NLRB 543. 'i Compare Fort Knox Construction Company, supra, where the Board applied the Jonesboro or "other than retail" standards-rather than the Hogue and Knott or "service establishment" standards-to a multistate enterprise engaged in operating housing proj- ects. See also Burns Detective Agency, 110 NLRB 995, in which the Jonesboro standards were applied to a multistate enterprise engaged in furnishing guard services to manu- facturing plants. On the other hand, the Hoque and Knott standards were applied to a multistate chain of beauty shops, Clafey's Beauty S1ioppes, 110 NLRB 620, and a multi- state chain of automobile brake service establishments S G Tilden, Incorporated, at ais, 111 NLRB 640 "Jonesboro Grain Drying Cooperative, supra. I'NTL: ASSN . OF HEAT AND-FROST INSULATORS , ETC: 1533 Ill. THE UNFAIR LABOR PRACTICES A. Sequence of events The Company employs both union and nonunion workers. For a number of years prior to the events described hereafter , the Company and the Union had maintained contractual relations with regard to the wages , hours, and working conditions of the Company 's insulating employees 13 within a certain geographical area over which the Union claimed jurisdiction . One such contract expired late in 1953. The parties were unable to reach a new agreement and, on December 18, 1953, the Company's union employees went on strike . The nonunion employees continued to work and additional workers were hired to replace the strikers. Among other subcontracts held by the Company was one to install insulating material on the Rhode Island Hospital then being constructed , herein referred to as the hospital job. In May 14 the Company assigned a foreman and three rank-and-file nonunion employees to work on the hospital job. Prescott Jentzel, the Union 's busi- ness agent and one of the Respondents herein, was present at the job site. He in- formed a representative of the general contractor that the Union was on strike against the Company , that the Company 's employees were "moving in" to start the job, and that if they commenced to work "there was a possibility that there would be picketing ." When the Company 's crew began working, the Union established a picket line of two men carrying signs reading : "Rhode Island Covering Company. Asbestos Workers Local 31 Want Work." The other craftworkers on the construc- tion job-about 300 in number-stopped working . The Company 's employees then ceased their work, told the other craft employees to go back to work, and returned to the Company 's office. Thereupon , the pickets were removed and the other craft employees resumed working . The Company made no other attempt to perform its subcontract at the hospital job during the remainder of the strike. During the strike, the parties continued contract negotiations . On May 27, the parties entered into a contract in which the Company recognized the Union as the exclusive bargaining representative of its insulating employees within the geographical area over which the Union claimed jurisdiction . It contained union-security clauses discussed in more detail hereafter . During the negotiations , Nelson B. Swanson, the Company 's president , had submitted to the Union 's representatives a list of 22 nonunion employees on the Company 's payroll on December 18 , 1953, the date of the commencement of the strike . The list was verified from the Company 's employ- ment records . It was orally agreed as part of the settlement that the Union would accept these men as members 15 Thereafter , there was distributed to each employee on the list a notice on the Company 's letterhead dated May 27, which read as follows: NOTICE Any employee of the Rhode Island Covering Company, Inc., on the payroll of the company on December 18, 1953 and who-on that date-was employed "in the application of pipe and boiler coverings , insulation of hot surfaces, ducts, flues , et cetera , and covering cold pipes and circular tanks con- nected therewith" shall on or before June 26, 1954 obtain , and thereafter maintain , membership in Local Union No. 31 of the International Association of Heat and Frost Insulators and Asbestos Workers as a condition of employment with the Rhode Island Covering Company, Inc., in the employment abovedescribed. Rhode Island Covering Company, Inc.,16 Nonunion employees whose names appeared on the list were furnished by Jentzel with applications for union membership . Nonunion employees omitted from the is Also referred to in the record as applicating employees , asbestos workers , and em- ployees engaged in pipe covering Whenever the terms "employees" or "workers" are used herein , they are used in this limited sense. is Unless otherwise indicated , all dates refer to the year 1934 11 There is a conflict in the testimony as to whether the Company urged the Union to take into membership all its nonunion employees or only those who were on the Company's payroll on December 18, 1953 . 1 consider it unnecessary to resolve this conflict. io There is a conflict in the evidence as to whether the Company ' s or the Union's repre- sentatives worded this notice . I deem it unnecessary to resolve this conflict, as the authorship of the notice is immaterial. 1534 DECISIONS OF NATIONAL LABOR RELATIONS BOARD list did not receive these notices 17 and were not furnished with union application blanks. On May 28 , the day after the agreement was signed , two rank-and-file nonunion employees of the Company under Foreman Paul Mirante returned to the hospital job to resume work there . Mr. Hoenhauser , the project manager, halted them but was told by Mirante that the dispute between the Union and the Company had been settled . Hoenhauser doubted this and the Company 's crew did no further work that day. On the next working day they returned to the hospital job and Mirante exhibited to Hoenhauser a copy of the agreement between the Company and the Union . Hoenhauser telephoned to Jentzel , who confirmed the signing of the contract . Hoenhauser then permitted the Company 's nonunion crew to resume work at the hospital project. Shortly after the signing of the contract , a large number of strikers returned to work. None was assigned at that time to the hospital job, which continued for the time being to be manned entirely by nonunion workers. In mid-June , Jentzel informed Swanson that nonunion men could not be working on the hospital project 30 days after the contract was signed , and that if the Com- pany continued to employ nonunion help, the union men could not work.18 On June 24 or 25 , 19 Jentzel went to the site of the hospital job and asked Mirante what the Company intended to do "about manning the job." Mirar_te replied that he did not yet know. Jentzel then informed Mirante that , after he became a union mem- ber,20 he was "not supposed to work with nonunion men." Between June 21 and 25, Jentzel received 13 registered letters requesting (in various phraseology ) an application for membership in the Union . All except two were from nonunion employees of the Company assigned to the hospital job, who were laid off that project on June 25, as will appear hereafter . Neither Jentzel nor the Union ever answered these letters. On June 25, the last working day before the deadline set forth in the notice of May 27, there were 23 nonsupervisory employees working at the hospital job under Mirante, all of whom were nonunion . Of these, the names of Mirante and seven rank-and-file employees appeared on the list which Swanson had supplied to the Union 's representatives during negotiations . On that day, Mirante read off the names of the 16 employees who were not on the list and directed them to report to the Company 's office at the beginning of the next working day , because they were not being taken into the Union.21 On June 26 , 19 of the 22 nonunion employees listed during the negotiations 22 (including Mirante and the 7 men assigned to the hospital job) applied for mem- bership in the Union and paid their initiation fees.23 17 Swanson 's testimony that he directed that all employees receive such a notice is deemed inaccurate and is not credited. is The findings of fact regarding this conversation are based upon the credited testimony of Swanson, who impressed me as a sincere and forthright witness (although occasionally inaccurate). Jentzel denied telling Swanson that the union men could not work if the Company continued to employ nonmembers. But he admitted that he asked Swanson whether he intended to mix union and nonunion men on the same job and that Swanson replied that he did not know, and that Jentzel then stated that union members might object to working with nonunion men. Jentzel was, at times, an evasive witness He impressed me as somewhat lacking in candor I do not credit his version However, my conclusions regarding the legal effect of this conversation would be no different even if I credited Jentzel's version. 11 Jentzel testified that this conversation took place on June 25 Although Mirante placed this conversation as having taken place on July 24 or 25, it is obvious from the context that he meant June 24 or 25. 11 Mirante had been on the Company's payroll on December 18, 1953. His name ap- peared on the list furnished by the Company during negotiations , and he had received one of the notices quoted above dated May 27. Consequently he and Jentzel both knew that he was soon to be taken into the Union. 21 The finding that Mirante explained the reason for the layoff is based upon the credited testimony of John Frank and Joseph S Aguiar, the complainants herein. Ladd Martin, another nonunion employee who was present and whose name was read, did not recall this statement Mirante testified that he told these men to report back to the Company's office on the following working day, but did not testify that he gave them any reason 22 One listed employee, Conrad Vandenberg, had died in the interim Two others, Ed Berube and H Persson, were not taken into membership; the record does not explain why 23 They were formally sworn into the Union on July 1G and the Company was informed of their names by Jentzel in a letter dated July 19. INTL. ASSN. OF HEAT AND FROST INSULATORS , ETC. 1535 On June 28 , the next working day, only Mirante and the seven other employees who were being taken into the Union remained on the hospital job . The 16 em- ployees laid off the hospital job reported to the Company's shop . Swanson told them that he could not put them to work on any project on which union men were work- ing because they were not union members. A week or two later, other employees were referred to the hospital job , and the work force on that project reached its peak of between 20 and 25 men in late July or early August . Except for a few members of other craft unions referred to the Company by Jentzel , only members of the Union have worked on the hospital job since June 25. Since June 28, only one of the employees laid off the hospital job on that day (W. Benoit ) has been assigned to insulating work within the geographical area over which the Union claims jurisdiction . The others have been doing intermittent labor- ing work and "odd jobs" around the Company's shop and elsewhere at a lower rate of pay,- or have occasionally performed insulating work outside the geographical area over which the Union claims jurisdiction . Only one (Ladd Martin) was eventually admitted to union membership . Some of them telephoned to Jentzel and inquired why they had not received applications for union membership . Jentzel explained , in effect, that he would check the matter the next time he talked to Swanson. The contract between the Company and the Union was due to expire on October 31. Several months prior to that date, both parties gave notice of intent to amend the contract . Since then , they have been attempting to negotiate a new agreement but the matter is still unresolved. B. Legality of the contract's union-security clauses as applied by the parties 1. Facts The pertinent clauses of the contract of May 27 read as follows- ARTICLE VII Subject to applicable law, all employees who are members of the Union in good standing and all employees who become members after date of execution of this Agreement shall, as a condition of employment , maintain their member- ship in the Union in good standing throughout the life of this Agreement. Subject to applicable law, the employer recognizes that the Local Union is the established and prime source of skilled and dependable labor necessary or required to perform the kind of work covered within its craft jurisdiction, and that the Union is normally ready, able and willing to supply such kind and quality of labor . The employer agrees that on each occasion of need for such labor , it shall call on the Union to furnish qualified workmen in the.classifica- tions within its craft jurisdiction. Should a shortage of workmen exist and they cannot be supplied by the Union, after a forty-eight ( 48) hour notice to it, the Employer may procure qualified workmen from other sources but such other workmen shall apply for and, subject to the laws and regulations of the Union , become members of the Union within thirty ( 30) days from the date of employment. * * * * * ARTICLE XI The party of the first part [the Company ] agrees to employ the membership of Local No. 31 in the application of pipe and boiler coverings , insulation of hot surfaces , ducts , flues, etc., also the covering of cold piping and circular tanks connected with the same. This to include alterations and repairing of work similar to the above and the use of all materials for the purpose mentioned. Swanson testified that the Company 's policy in recruiting labor within the territory over which the Union claims jurisdiction is to call the Union first. If the Union is unable to supply the necessary workers "after a period," the Company obtains labor elsewhere . He further testified that the Union , from time to time, sends him lists of company employees recently taken into union membership . Swanson also testi-fied that , before restoring employee Benoit , a member of the Plasterers ' union, tothe hospital job he first secured Jentzel 's approval . Mirante testified that , whenevera new man is added to his crew , he notifies Jentzel . He further testified that, some- time between June 25 and October 6 , when an employee named McGuirl (a member,of, the Plasterers ' union ) • was assigned to the , hospital job , he cleared with Jentzel 1536 DECISIONS OF NATIONAL LABOR RELATIONS BOARD ,before putting McGuirl to work. Jentzel testified that he maintains a list of union members available for work. When Swanson requests a given number of workers, Jentzel checks his list of available union members. If there are no union members available at the expiration of 48 hours, "then it's his [Swanson's] privilege to find them as he pleases." He also testified that, since June 25, Swanson assured him that every employee working for the Company within the geographical area over which the Union claimed jurisdiction was a union member, and that that was "the way it was going to stay." Further, Jentzel testified that he had never referred any nonunion employee to Swanson, except members of other craft unions when so re- quested by Swanson. Jentzel's attitude toward placing union members in jobs is strikingly illustrated by his testimony. On direct examination he stated- ". . . there is certain work that comes under the jurisdiction of the Asbestos Workers as regards to building construction, and it's a purpose of the Business Agent to scout around the jobs and see that we get the work that is rightfully our jurisdiction..... On cross-examination he testified: Q. (By Mr. Coven.) Well, now, what happens if you find that some people other than your members are doing work which you consider as rightfully within your jurisdiction? A. What do we do? Q. Yes. A. We do what we can to recover the work and see that it goes to our par- ticular membership. Q. And what is that that you do to see that you can recover work? A. If it's on a Building and Construction Trade's job, and if [the] only means to obtain the work is to picket the job with the sanction of the Building and Construction Trade's Council, why we go to that. Q. You have done that on occasions? A. Yes. Q. Let's assume-well, have there been occasions when you have found non- Union people working on a building construction job? A. Yes. Trial Examiner ASHER: Is this question addressed to the industry generally or to this particular employer? Mr. COVEN: To the industry generally. Q. (By Mr. Coven.) Have you found such occasions? A. Yes. Q. And what has happened on those occasions? A. Well, on one occasion we used a picket line to retrieve the work. Q. And what happened after you used the picket line? A. We did get the work. 2. Contentions and conclusions regarding the contract's union-security clauses The complaint alleges, and the answer denies, that the Respondents violated the Act by executing the contract of May 27 and that, since June 25, the Respondents have compelled the Company to employ only members of or persons approved by the Union in insulating work. It is alleged that such conduct contravened Section 8 (b) (1) (A) and (2) of the Act. A reading of the contract itself reveals that it contains a "first opportunity" clause under which the Union had the exclusive right to supply any needed labor for the "Company for a period of 48 hours. It was only after the lapse of this period that the Company was permitted to hire workmen from other sources. This was the clear intent of the contract, and it was so understood and applied by the parties. Moreover, it was the Union's policy to refer to the Company only its members, un- less the Company specifically requested the Union to refer members of other unions. I do not agree with the General Counsel's contention that the contract was violative of the Act on its face. It does not of necessity imply that the Company undertook to hire only union members 24 A contrary conclusion would strike down all "first 24 George D. Auehter Company, et al, 102 NLRB 881, enfd. 209 F. 2d 273 (C. A. 5), cited by the General Counsel, involved a similar contract provision While both the Board and the court there held the provision illegal, it appears that they did so not on the basis of the provision standing alone, but rather "in the light of the interpretation placed upon it by the Respondents." Compare the later case of Motor Truck Association of Southern California, 110 NLRB 2151, footnote 4, where the Board seems to leave the question open. INTL. ASSN. OF HEAT-AND FROST INSULATORS, ETC. 1537 opportunity" clauses on the theory that such provisions cannot have, or be under- stood as having, a legitimate basis for existence. I cannot subscribe to so narrow a view. However, it is well settled that when a union undertakes to supply an employer with workmen, it is required by the Act to carry out this obligation on a non- discriminatory basis 25 Here, the agreement giving the Union the first opportunity of supplying workmen to fill existing vacancies was unquestionably utilized by the Union as a vehicle to secure job preference for its members or persons approved by it. This exceeded the bounds of permissive union-security arrangements. I accord- ingly find that, by discriminatorily applying and enforcing the security clauses of the contract since May 27, 1954, the Respondents restrained and coerced employees and prospective employees of the Company in the exercise of rights guaranteed in Section 7 of the Act, and thereby violated Section 8 (b) (1) (A) of the Act. Moreover,,the Respondents by this conduct caused the Company to violate Section 8 (a) (3) of the Act, and thereby themselves violated Section 8 (b) (2) of the Act.26 C. The discrimination against John Frank and Joseph S. Aguiar 1. Facts John Frank was first employed by the Company in January, while union employees were on strike, at a rate of $2.25 per hour. He was among the employees assigned to work on the hospital job in May. As previously set forth, the Union established a picket line and the other craft workers on the construction job stopped working. Thereupon, the Company's crew ceased working, told the other craft employees to go back to work, and returned to the Company's office. During the remainder of the strike, Frank was employed by the Company doing insulating work on various projects other than the hospital job. As Frank was not on the Company's payroll on December 18, 1953, the date of the commencement of the strike, his name did not appear on the list furnished to the Union's representatives during negotiations and he did not receive one of the notices issued by the Company to the men on that list dated May 27. Nor did he receive an application for union membership. After the contract between the Company and the Union was executed, Frank was again assigned to the hospital job crew. At that time, his pay was increased to $2.971/2 per hour. On June 22, he sent a registered letter to Jentzel to which he never received a reply. It read as follows: Mr. JENTZEL: I am forwarding you this letter, requesting an application for becoming a member of the pipe coverers local. I would like very much of becoming a member of your union, and sincerely hope all difficulties of the past have been settled in favor of the union. Sincerely yours, Mr. JOHN FRANK, 22 Taft St., Fall River, Mass. Frank was one of the nonunion employees laid off the hospital job on June 25 by Mirante, under circumstances described above. He reported to the Company's shop on June 28, together with the other employees who had been laid off, and was in the group to which Swanson announced that he could not put them to work on any project on which union men were working because they were not union members. For the next week or two Frank reported daily to the Company's office but was not given any assignment. Then he was assigned to do "odds and ends," not insulating work, at Swanson's summer house at wages of $2.971/2 per hour. This lasted "maybe a couple of weeks." Following that, there was a period during which Frank was not assigned to any work. Later, he was detailed to do carpentry work (not insulating work) and "odds and ends" at the home of another official of the Company. His hourly rate at the beginning of this job was $2.971/2 but before the job was com- pleted this was reduced to $2.60 or $2.40. After that, Frank was assigned to insulat- 25 N. L. R. B. v. National Maritime Union of America, 175 F. 2d 686 (C A. 2), rehearing denied July 25, 1949, cert. denied 338 U. S. 954, rehearing denied 339 U S. 926; N. L R B. v George D. Auchter Company, et al., supra , and Utah Construction Co , 95 NLRP 196. 28 Assuming without deciding that the union members on strike were economic strikers who had been permanently replaced, the Union may well have lost its majority status as a result. Whether or not the Respondents than violated the Act by demanding and obtaining from the Company recognition as the exclusive bargaining agent of d11 employees in the unit need not here be determined, for it is not encompassed within the allegations of the complaint. For the same reason, I also express no opinion regarding the legality of the picketing of the hospital job in May. 1538 DECISIONS' OF NATIONAL LABOR RELATIONS BOARD ing work , at a rate of $2.971/2 per hour, on projects outside the Union's claimed ter- ritory. He has also worked in the Company's shop from time to time . Since June 25, Frank has neither been reassigned to the hospital job nor been assigned.to any insulating work within the geographical area over which the Union claims jurisdiction. Sometime after Frank sent his registered letter to Jentzel, he telephoned to Jentzel and identified himself as a laid-off employee of the Company. Pointing out that he would "very much like to be working," he asked why he had not received the appli- cation for union membership which he had requested. Jentzel replied that he had been trying to contact Swanson but had been unable to get an appointment with him and assured Frank that when he talked to Swanson he would discuss Frank's case. Although Jentzel did later speak to Swanson, he failed to mention Frank indi- vidually in that conversation. Although Mirante testified that Frank was an apprentice on June 25, Swanson ac- knowledged that he was then receiving journeyman's pay. Frank had done insulating work "on and off for about 10 years." 27 He belonged to the Carpenters' union be- fore working for the Company, but has never been a member of the Union. Frank filed the original charge herein on July 20 and an amended charge on October 13. Joseph S. Aguiar began to work for the Company late in March, while the strike was still in progress, at wages of $1.80 per hour. From that time until the begin- ning of June he was employed on various jobs at different places. Early in June he was assigned to the hospital job at a rate of $1.80 per hour. A week later his pay was increased to $2.971/2 per hour. As Aguiar had not been on the Company's pay- roll on December 18, 1953, his name did not appear on the list furnished to the Union's representatives during negotiations, and he did not receive one of the notices issued by the Company dated May 27. He also did not receive an application for membership in the Union. On June 22, Aguiar sent a registered letter to Jentzel, to which he never received an answer. The letter read: DEAR SIR: I work for the Rhode Island Covering Co. of Providence, R. I. I am applying for an application to get in the Pipe Coverers Union. I remain. Yours truly, JOSEPH S. AGUTAR, ' 26 Norman St., Fall River, Mass. Aguiar was among the nonunion employees laid off the hospital job by Mirante on June 25. In accordance with Mirante's instructions, he reported to the Company's shop on June 28 and was among those who were told by Swanson that they could not be put to work on any project on which union men were working because they were not members of the Union Three days later Aguiar was assigned to driving a truck for the Company at wages of $1.80 per hour. Since that time he has been employed intermittently at laboring work, such as cleaning up and unloading cars. During part of this time he was paid $2 per hour. Since June 25 he has not been reassigned to the hospital job or been assigned to any insulating work within the Union's claimed territory. But he has done insulating work for about 2 weeks in locations outside the area over which the Union claims jurisdiction at the rate of $1 80 per hour. Several months after sending the above-quoted letter to Jentzel, Aguiar telephoned to Jentzel and asked him why he had not received any reply. Jentzel answered that he received a large quantity of registered mail and did not respond to all of it, and that he was attempting to ascertain from Swanson the names of nonunion workers em- ployed by the Company. Mirante classified Aguiar as an apprentice , but Swanson testified that he was being paid journeyman's wages on June 25. Before coming to work for the Com- pany, Aguiar had from time to time belonged to the Laborers' union, the Team- sters, the Electrical Workers, and some other unions. So far as the record shows, he has never been a member of the Union. Aguiar filed the original charge herein on August 11 and an amended charge on October 8. It will be recalled that the Company's work crew assigned to the hospital job numbered only 7 men and a foreman on June 28, but that a week or two later it was increased and eventually reached a peak of between 20 and 25 men . Yet only 27 The Union classifies as a journeyman anyone who has worked In the craft for 4 years or more under the supervision of a journeyman. INTL. ASSN. OF HEAT AND FROST INSULATORS, ETC. 1539 1 of the 16 employees laid off there on June 25, W. Benoit, was reassigned to the hospital job and then only with Jentzel's approval, based on Benoit's membership in the Plasterers ' union . On direct examination, Swanson testified: Q. How about the rest of the people on that list? The other people who were not called back to work on the 26th [sic]. Have you considered any of them for employment on that job since that time? A. No. Q. And why not? Mr. WISE: I object to that. Trial Examiner ASHER: Objection overruled; answer the question. The WITNESS: The reason we have not because if we sent them back there, we just felt that Local 31 men would walk off the job, and we weren't looking for any more trouble. Q. (By Mr. Coven.) Referring specifically to Mr. Joseph Aguiar and John Frank, have you considered them for work on the Rhode Island Hospital job? A. No, sir. Q. Why haven't you considered them specifically? A. I want to evade trouble. Mr. WISE: What's that? Trial Examiner ASHER: He said, "I want to avoid trouble," or evade. Q. (By Mr. Coven.) What do you mean by "trouble"? A. The other men walking off. Q. Have there been openings at the Rhode Island Hospital from time to time since June 28 for which you would have considered Mr. Frank and Mr. Aguiar if not for this desire of yours to avoid trouble as you have put it? A. I'd be glad to. 2. Contentions and conclusions regarding the discrimination against Frank and Aguiar The complaint alleges, and the answer denies, that on June 25 the Respondents compelled the Company to discharge or lay off Frank and Aguiar from the hospital job because they were not members of the Union or because of the Respondents' withdrawal of consent to their continued employment, and that since that date the Respondents have required the Company to refuse or fail to reemploy them. It is alleged that such conduct violated Section 8 (b) (1) (A) and (2) of the Act. I first examine the effect of the oral arrangement of May 27 between the parties that the Union would accept as members the employees on the list submitted by Swanson during negotiations. It was understood by all concerned that those not on the list would not be taken into union membership. Thus, Mirante testified on cross- examination: It was understood that Mr. Swanson desired us in the Local 31, but he could not send such a notice out unless we were going to be taken into the Local. Any lingering doubt on this score was eliminated by the issuance to those on the list of the notices dated May 27 and, later, applications for union membership, while the requests for union applications from those omitted from the list went un- answered .28 It was further understood that those omitted from the list, after 30, days following the signing of the contract, would be prohibited from performing insulating work within the territory claimed by the Union on any project on which union men were working. This was underscored by Jentzel' s statement to Swanson in mid-June that nonunion men could not be working on the hospital project 30 days after the contract was signed, and that if the Company continued to employ nonunion help the union men could not work. It was further demonstrated by Jentzel's warning on June 24 or 25 to Mirante, a representative of the Company,29' that after he became a union member he was "not supposed to work with nonunion men." 29 Jentzel attempted to excuse his failure to answer these requests on the ground that he was unable to ascertain if the applicants were, in fact, employed by the Company. But he admitted on cross-examination that it is not necessary for an applicant to be actively employed in the trade in order to acquire union membership. 29 The Respondents seem to contend in their brief that Mirante was not a supervisor on June 24 or 25. I cannot agree. The record is clear, and I find, that on those dates he had authority effectively to transfer and assign the men working under him. It follows that he was a supervisor within the meaning of Section 2 (11) of the Act Jentzel's, warning to him therefore constituted a warning to the Company. 387644-56-vol. 114-.88 1540 DECISIONS OF NATIONAL ' LABOR RELATIONS BOARD I turn next to Mirante 's layoff of Frank and Aguiar from the hospital 'job on June 25. It was perhaps no mere coincidence that Mirante chose for the layoff the date of June 25 , the last working day before the deadline agreed upon by the parties and set forth in the notices issued by the Company under date of May 27.30 But that need not be decided . Whatever the real reason for the timing of the layoff, the critical question is: On what basis did Mirante select the individuals for layoff? Mirante admitted that he had "a very good idea " that the seven men he retained were going to be taken into the Union . He further admitted that, in selecting men for layoff, he was influenced by the union -security clauses of the contract 31 and Jentzel 's warning that he was not supposed to work with nonunion men. Finally, he admitted that with respect to ability "the group in general was about on a par, and it was more or less like picking names out of a hat." In view of these ad- missions, I am convinced and find that Mirante selected Frank and Aguiar for layoff from the hospital job on June 25 because of his belief that they were not going to become union members and that it would violate Jentzel's warning to continue them on the hospital project along with himself and the other seven men who were about to be taken into the Union . It is equally clear , and it is found , that Swanson was aware that this had been the reason for the layoffs. Otherwise , he would not have told the laid-off men on June 28 that he could not put them to work on any project on which union men were working because they were not union members. As the Company 's action in laying off Frank and Aguiar from the hospital job on June 26 was discriminatory , it becomes necessary to determine whether or not it was caused by the Respondents . The Respondents contend in their brief , that, if Mirante were a supervisor , he "acted for the Company and not at the behest of the Union ." On this topic , the Board has stated: We reject the argument that a finding of "cause or attempt to cause," under Section 8 (b) (2) of the Act , may only be predicated upon direct or expressed threats of retaliation by a union 's agents. It is enough that the union 's conduct reveals an intent to arouse the employer 's fear that the hire or reemployment of an applicant will result in economic pressure against him 32 In view of Jentzel 's statement to Swanson in mid-June that nonunion men could not be working on the hospital project 30 days after the contract was signed, and that if the Company continued to employ nonunion help the union men could not work, and his warning to Mirante on June 24 or 25 that after Mirante became a union member he was not supposed to work with nonunion men, it is obvious, and I find, that the Respondents sought to instill fear in the Company that the retention of Frank and Aguiar after June 25 on any project on which union members were em- ployed would result in retaliation against the Company. It is further concluded that the Company yielded to this pressure when it removed Frank and Aguiar from the hospital job on June 25 merely because they were not union members. The same result can be achieved by adopting a different approach . Assuming the validity of the union -security provisions of the contract of May 27, Frank and Aguiar were protected by proviso A of Section 8 (a) (3) of the Act against job discrimination if their employer had "reasonable grounds for believing that such [union] membership was not available to the employee on the same terms and con- ditions generally applicable to other members " The Board has held that this pro- viso "protects any employee discriminatorily excluded from membership whether or not such tender [of dues and initiation fees] is made ." 33 Without doubt, here the Company well knew that Frank and Aguiar would not be permitted to join the Union solely because they had been hired while union members were on strike . They were 30 Mirante testified • "We had been catching up on the work ahead of us and I would not need as large a crew . There was a stock problem . . . Significantly , however, no other evidence of need for a reduction in force was presented , and Swanson made no reference to any such problems when he addressed the laid-off employees on June 28 a According to Mirante , the contract meant "the Local Union would supply all labor and we were to work with union members only." 32 Chief Freight Lines Company, 111 NLRB 22. sa Union Starch & Refining Company, 87 NLRB 779 ,'784, enfd. 186 F. 2d 1008 ( C. A. 7), cert. denied 342 U. S. 815 . In footnote 23 of its decision , the Board pointed out : It should be noted that this decision does not impair the right of the Respondent Union to prescribe its own rules with respect to the acquisition of membership, a union privilege protected by the proviso to Section 8 (b) (1) (A ). Under our deci- sion, a union may deny membership to an employee upon any ground it wishes, but the only ground on which it can have a nonmeinbei discharged under a union- security clause is the employee 's refusal to tender initiation fees and dues. ,;^ INTL. ASSN: OF HEAT AND FROST INSULATORS , ETC. 1541 therefore afforded job protection against the Respondents by virtue of Section 8 (b) '(2) of the Act . And the tender of dues and initiation fees by them was excused because of the Respondents ' affirmative obstructive conduct.34 The General Counsel further contends that the failure to reassign Frank and Aguiar to the hospital job after the crew on that project was increased was inde- pendently discriminatory and was also caused by the Respondents ' pressure on Swan- son and Mirante . In view of Swanson 's admission , quoted above , that he did not reassign Frank and Aguiar to the hospital job because he wished to avoid trouble," such as the other men walking off , it is clear and I find that the failure of the Com- pany to reassign Frank and Aguiar to the hospital job at the time the number of men assigned to that project was increased was likewise based on the sole fact that they were not union members and was likewise caused by the Respondents. The Respondents argue in their brief that the oral understanding of May 27 that the Union would accept as members all employees on the list submitted by Swanson during negotiations was not discriminatory . They point out that this constituted part of a strike settlement and was based on the fact that the employees omitted from the list were , in their words , a "strike breaking crew." Under these circumstances, the Respondents maintain that "strike breakers" should not "expect that returning regulars should give way to them in the struggle for limited work opportunities." There might be some force to this argument if it were shown that it was necessary for the Company to displace the replacements in order to provide jobs for the return- ing strikers . However, the legality of such an arrangement under those circumstances need not here be determined . For those were not the facts. Quite to the contrary, Swanson testified: Q. Did you ever meet Mr. Jentzel on the Monday following the signing of the agreement and have a discussion with him? A I'm not just clear what you mean. Q. Do you think you might have discussed a question of a surplus of men? A. You mean what would we do with our surplus of men? Q. Yes. A. Well, we didn't have a surplus. Q. Do you recall discussing a surplus? A. No, because there wasn 't any surplus. We needed every man we had. We didn 't have a surplus. Q. And did you keep them all working? A. We could have. Q. You could have? A. Yes, sure. This testimony , elicited by the Respondents ' counsel on , cross-examination, amply demonstrates that there was sufficient work available for all returning strikers without displacing any replacements . The Respondents ' contention is therefore lacking in merit. It is true that one of the employees laid off from the hospital job on June 25- Benoit-was later reassigned to that project . But this was done only after Jentzel gave his approval, based perhaps on Benoit 's membership in the Plasterers ' union. It is also true that another employee in the laid off group-Ladd Martin-was eventu- ally taken into union membership . In connection with Martin , however , it is sig- nificant that membership was not extended until after he had withdrawn a charge filed by him with the Board against the Respondents . It is therefore not unlikely that the Respondents ' change of heart with regard to Martin was influenced by the withdrawal of his charge . In any event , the fact that the Respondents may not have discriminated against Benoit or Martin to the same degree that they discriminated against Frank and Aguiar does not overcome the substantial evidence that Frank and Aguiar were, in fact, discriminated against by the Company at the behest of the Respondents 35 Finally, in their brief the Respondents asked the Board "to note that Frank and Aguiar only lost temporarily full and regular employment" and "have been working steadily , not only in and about Rhode Island and Connecticut but in Worcester." 84 N. L. R. B. v. Pape Broadcasting Company, et al., 217 F. 2d 197, 199 (C. A. 5), reh. denied January 28, 1955. ae See N. L. R. B. v. W C. Nabors Company, 196 F. 2d 272, 276 (C. A. 5), cert denied 344 U. S. 865 1542 DECISIONS '-OF NATIONAL LABOR RELATIONS BOARD Aside from the inaccuracy of this last statement,36 the argument misses the point- The question is not whether the Union permitted the discriminatees, to work `else- where or in other types of employment, but whether they were afforded the same opportunity to do insulating work at the hospital job or on any other project within the Union's claimed territory as were those who were taken into the Union. I find that they were not. It is accordingly found that, by causing the Company to remove Frank and Aguiar from the Rhode Island Hospital job on June 25, 1954, and by causing it to. refuse or fail to reassign them to that project at all times since, the Respondents re- strained and coerced employees and prospective employees of the Company in the exercise of rights guaranteed in Section 7 of the Act and thereby violated Section 8 (b) (1) (A) of the Act. Moreover, the Respondents by this conduct caused the Company to violate Section 8 (a) (3) of the Act and thereby themselves violated Section 8 (b) (2) of the Act. D. Inducing members not to work with nonmembers The complaint alleges and the answer denies that, since June 25, the Respondents induced or encouraged union members to refuse to work with nonmember employees, in violation of Section 8 (b) (1) (A) and (2) of the Act. The only evidence that the Respondents induced or encouraged any union members not to work with non- members is the statement of Jentzel on June 24 or 25 to Mirante, described above. But Mirante was then a representative of the Company and the statement has there- fore been found to have been violative of the Act as illegal pressure on the Company to discriminate against nonmembers. There is no evidence that the Respondents in- duced or encouraged any other union member to refuse to work with nonmember employees. It is therefore unnecessary to decide whether or not a union violates the Act by inducing or encouraging its members (not representatives of an employer) to refuse to work with nonmembers. Upon the basis of the above findings of fact, and upon the entire record of both the original hearing and the remanded hearing in this case, I make the following: CONCLUSIONS OF LAW 1. International Association of Heat and Frost Insulators and Asbestos Workers, AFL, Local 31, is a labor organization within the meaning of Section 2 (5) of the Act. 2. Prescott Jentzel is business agent of the Respondent Union and its agent within the meaning of Sections 2 (13) and 8 (b) of the Act. 3. By maintaining, applying, enforcing, interpreting, performing, and giving effect to the provisions of the contract of May 27, 1954, with Rhode Island Covering Company, in such a way as to grant job preference in insulating work to employees or applicants for employment who possess or secure membership in or clearance from the Respondent Union, and by causing the said Employer to discriminate against John Frank and Joseph S. Aguiar in violation of Section 8 (a) (3) of the Act, the Respondents have engaged in and are engaging in unfair labor practices within the meaning of Section 8 (b) (2) of the Act. 4. By such conduct the Respondents have restrained and coerced, and are re- straining and coercing, employees and prospective employees of the said Employer in the exercise of rights guaranteed in Section 7 of the Act, and have engaged in and are engaging in unfair labor practices within the meaning of Section 8 (b) (1) (A) of the Act. 5. The above-described unfair labor practices tend to lead to labor disputes burden- ing and obstructing commerce and the free flow of commerce and constitute unfair labor practices affecting commerce within the meaning of Section 2 (6) and (7) of the Act. 6. The Respondents have not violated the Act by executing the contract of May 27, 1954, with Rhode Island Covering Company. Upon the basis of the above findings of fact and conclusions of law, and upon the entire record of both the original hearing and the remanded hearing in this case, I make the following: RECOMMENDATIONS In order effectively to remedy the unfair labor practices committed, it will be recommended that the Respondents cease and desist from maintaining , applying, en- 3e Both Frank and Aguiar have had periods of total unemployment since June 25. Moreover, Swanson testified that there is steady work "outside" ( I. e., Insulating work) but only intermittent employment "in the shop," such as "sweeping the floors, washing the floors, take off the awnings." INTL . ASSN. OF HEAT AND FROST INSULATORS , ETC. 1543 forcing, interpreting , performing, or giving effect to any contract,37 agreement, arrangement , understanding, or practice with the Company, or any other employer,38 in such a way as to grant job preference in insulating work 39 to employees or appli- cants for employment who possess or obtain membership in or clearance from the Respondent Union, except to the extent permitted by Section 8 (a) (3) of the Act. It will further be recommended that the Respondents cease and desist from causing ,or attempting to cause the Company, or any other employer, to discriminate against employees or prospective employees in violation of Section 8 (a) (3) of the Act. Because of the underlying purpose and tendency of the unlawful conduct found, I conclude that there exists danger that the Respondents will in the future commit other unfair labor practices. Accordingly, it will be recommended that the Re- spondents cease and desist not only from the unfair labor practices found but also from in any other manner infringing upon the rights guaranteed in Section 7 of the Act. Affirmatively, it will be recommended that the Respondents notify the Company, in writing , that they withdraw their objection to the reassignment of Frank and _Aguiar to insulating work on the hospital job; or if the Company's part of the hospital project has been completed,40 or when it is completed, that they have no objec- .tion to the employment of the above-named employees in insulating work on any other project within the geographical area over which the Respondent Union claims jurisdiction. The Respondents shall furnish copies of the said notification to Frank .and Aguiar. In addition, it will be recommended that the Respondent Union make Frank and Aguiai whole for any loss of earnings they may have suffered becaitse of the discrimination against them, by paying to each of them a sum of money equal to the amount he normally would have earned from June 25, 1954, the date of .the discrimination against him, to 5 days after the Company receives notification from the Respondents that they have withdrawn their objection to the reassignment of Frank and Aguiar as aforesaid, less his net earnings , if any, during that period. The back pay provided for herein shall be computed on a quarterly basis in the manner established by the Board; earnings in one particular quarter shall have no effect on the back-pay liability for any other period. Moreover, back pay shall be abated from February 2, 1955, when the complaint was dismissed in its entirety, to the date of the issuance of this Intermediate Report The Respondent Union shall de- ,duct from the amounts payable to Frank and Aguiar such sums as would normally have been deducted from their wages for deposit with State and Federal agencies on account of social security and other similar benefits. The Respondent Union shall pay to the appropriate State and Federal agencies, to the credit of Frank and Aguiar and the Company, a sum of money equal to the amount which, absent dis- crimination, would have been deposited to such credit by the Company, either as a tax upon the Company or on account of deductions made from Frank's and Aguiar's wages by the Company on account of such social security or other similar benefits. It will not, however, be recommended that Respondent Jentzel make the discrim- inatees whole out of his personal resources for any loss of earnings suffered because of the discrimination against them.41 In order adequately to publicize both to employers and employees, including non- members of the Respondent Union, that the Respondents will cease and desist from their unlawful hiring practices, it will be recommended not only that they post the usual notices in the Union's office and on the hospital project, if the Company's part of that job has not been completed, but also that they cause it to be printed at their expense in a newspaper of general circulation in Providence, Rhode Island.42 It will further be recommended that the complaint be dismissed insofar as it al- leges that the Respondents violated the Act by executing the contract of May 27, 1954. [Recommended Order omitted from publication.] 37 So far as the record shows, there has been no formal contract between the Company and the Respondent Union since October 31, 1954 88 "Any other employer" as used herein means any other employer as defined in Sec- tion 2 (2) of the Act whose operations meet the Board's jurisdictional standards. sa Insulating work as used herein encompasses all work described in Article XI of the contract of May 27, 1954, between the Company and the Respondent Union. 90 On November 24, 1954, Swanson testified that it would take approximately another months to complete the Company's part of the project. u J. J. White, Inc., 111 NLRB 1126. 4 J. J. White, Inc., supra. 1544 DECISIONS OF NATIONAL LABOR RELATIONS BOARD APPENDIX A NOTICE TO ALL MEMBERS OF INTERNATIONAL ASSOCIATION OF HEAT AND FROST INSULATORS AND ASBESTOS WORKERS, AFL, LOCAL 31, AND ALL EMPLOYEES OF RHODE ISLAND COVERING COMPANY 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 Re- lations Act, as amended, we hereby notify you that: WE WILL NOT maintain, apply, enforce, interpret, perform, or give effect to any contract, agreement, arrangement, understanding, or practice with Rhode Island Covering Company, or any other employer, in such a way as to grant job preference in insulating work to employees or applicants for employment who possess or obtain membership in or clearance from the undersigned Union, except to the extent permitted by Section 8 (a) (3) of the National Labor Relations Act. WE WILL NOT cause or attempt to cause the said Company, or any other employer, to discriminate against employees or prospective employees in viola- tion of Section 8 (a) (3) of the National Labor Relations Act WE WILL NOT in any other manner restrain or coerce employees or prospective employees of the said Company, or any other employer, in the exercise of the rights guaranteed in Section 7 of the National Labor Relations Act, except to the extent that such rights may be affected by an agreement requiring membership in a labor organization as a condition of employment, as authorized by Section 8 (a) (3) of the National Labor Relations Act. WE WILL notify the said Company, and furnish copies of such notification to John Frank and Joseph S. Aguiar, that we withdraw our objection to the re- assignment of the said John Frank and Joseph S. Aguiar to insulating work on the Rhode Island Hospital job; or if the said Company's part of the said project has been completed, or when it is completed, that we have no objection to the employment of the above-named employees in insulating work on any other project within the geographical area over which the undersigned Union claims jurisdiction. WE WILL make whole John Frank and Joseph S. Aguiar for any loss of earn- ings suffered by them because of the discrimination against them. INTERNATIONAL ASSOCIATION OF HEAT AND FROST INSULATORS AND ASBESTOS WORK- ERS, AFL, LOCAL 31, Labor Organization. Dated---------------- By---------------------------------------------- (Representative) (Title) Dated---------------- ---------------------------------------------- (PaESCOTT JENTZEL, Business Representative) This notice must remain posted for 60 days from the date hereof, and must not be altered, defaced, or covered by any other material. Milham Products Co., Inc. and International Ladies' Garment Workers' Union, AFL-CIO,' Petitioner . Case No. 1-RC-3899. December 29,1955 SUPPLEMENTAL DECISION AND CERTIFICATION OF REPRESENTATIVES Pursuant to a Decision and Direction of Election dated August 3, 1955, and Order Amending Direction of Election dated August 11, 1955,2 an election was conducted on September 22, 1955, under the di- 'As the AFL and CIO meiged since the election herein, we are taking notice thereof and are amending the Union's designation. 2 Not reported in printed volumes of Board Decisions and Orders. 114 NLRB No. 243. Copy with citationCopy as parenthetical citation