J.J. Cassone Bakery, Inc.Download PDFNational Labor Relations Board - Board DecisionsJan 10, 1980247 N.L.R.B. 220 (N.L.R.B. 1980) Copy Citation DECISIONS OF NATIONAL LABOR RELATIONS BOARD J. J. Cassone Bakery, Inc. and Bakery, Confectionery and Tobacco Workers' International Union of America, AFL-CIO, CLC, Local 3.' Cases 2-CA- 15429 and 2-RC-17535 January 10, 1980 DECISION, ORDER, AND CERTIFICATION OF RESULTS OF ELECTION By CHAIRMAN FANNING AND MEMBERS PENELLO AND TRUESDALE On September 27, 1979, Administrative Law Judge Max Rosenberg issued the attached Decision in this proceeding. Thereafter, the General Counsel filed exceptions and a supporting brief, and the Respondent filed a brief in support of the Administrative Law Judge's Decision. Pursuant to the provisions of Section 3(b) of the National Labor Relations Act, as amended, the National Labor Relations Board has delegated its authority in this proceeding to a three-member panel. The Board has considered the record and the attached Decision in light of the exceptions and briefs and has decided to affirm the rulings, findings,2 and conclusions of the Administrative Law Judge and to adopt his recommended Order. ORDER Pursuant to Section 10(c) of the National Labor Relations Act, as amended, the National Labor Relations Board adopts as its Order the recommended Order of the Administrative Law Judge and hereby orders that the complaint in Case 2-CA-15429 be, and it hereby is, dismissed in its entirety. CERTIFICATION OF RESULTS OF ELECTION It is hereby certified that a majority of the valid ballots have not been cast for Bakery, Confectionery and Tobacco Workers International Union of Ameri- ca, AFL-CIO-CLC, Local 3, in the election held on January 31, 1978, in Case 2-RC-17535, and that said labor organization is not the exclusive representative of all the employees, in the unit therein involved, within the meaning of Section 9(a) of the National Labor Relations Act, as amended. The name of the Charging Party-Petitioner is amended to reflect the change resulting from the merging of Bakery and Confectionery Workers International Union and Tobacco Workers International Union on August 17, 1978. : The General Counsel has excepted to certain credibility findings made by the Administrative Law Judge. It is the Board's established policy not to overrule an administrative law judge's resolutions with respect to credibility 247 NLRB No. 32 unless the clear preponderance of all of the relevant evidence convinces us that the resolutions are incorrect. Standard Dry Wall Products. Inc.. 91 NLRB 544 (1950), enfd. 188 F.2d 362 (3d Cir. 1951). We have carefully examined the record and find no basis for reversing his findings. The General Counsel has also excepted. inter alia. to the Administrative Law Judge's failure to find that the Respondent. through its president. Rocco Cassone, threatened employees with job loss if the Union struck. However. we find that the General Counsel has failed to establish by a preponderance of the credible evidence that such a threat was, in fact, made and, consequently, we find no merit to this exception. DECISION MAX ROSENBERG, Administrative Law Judge: These cases were heard before me in New York, on February 22, May 30, and July 16, 1979, pursuant to a complaint filed by the General Counsel of the National Labor Relations Board and an answer interposed by J. J. Cassone Bakery, Inc., herein called Respondent.' Joined with the complaint are objections to a rerun election conducted by the Board among Respondent's employees on January 31, 1978, which were lodged by Bakery and Confectionery Workers' International Union of America, Local 3, AFL-CIO, herein called the Union, and which were consolidated for purposes of hearing on June 26, 1978, by the Regional Director for Region 2.' At issue is whether Respondent violated Section 8(a)(1) of the National Labor Relations Act, as amended, by certain conduct to be detailed hereinafter. In her order consolidat- ing cases dated June 26, 1978, the Regional Director also referred for decision the question of whether the alleged acts of objectionable misconduct, which find their parallel in the allegations of the complaint, so interfered with the employ- ees' freedom of choice as to require the holding of still another election. Briefs have been received from the General Counsel and Respondent which have been duly considered. Upon consideration of the entire record made in this proceeding, including the briefs submitted to me, and upon my observation of the demeanor of each witness while testifying, I hereby make the following: FINDINGS OF FACT AND CONCLUSIONS I. THE BUSINESS OF RESPONDENT Respondent, a New York corporation with its office and place of business in Port Chester, New York, is engaged in the production and distribution of bakery goods and related products. During the annual material period, Respondent purchased and caused to be delivered to its plant flour and other goods and materials valued in excess of $50,000, of which goods and materials valued in excess of $50,000 were delivered to its plant in interstate commerce directly from States other than the State of New York. During the same period, Respondent derived gross revenues from its opera- tions in excess of $50,000. The complaint alleges, the answer admits, and I find that Respondent is an employer engaged in commerce within the meaning of Section 2(6) and (7) of the Act. ' The complaint, which issued on April 28, i978, is based on a charge which was filed on February 24, 1978, and served on February 27. 1978. 'The first election, which was held on February 1, 1977, was nullified by the Regional Director. upon agreement of the parties, by order dated May 12. 1977. 220 J. J. CASSONE BAKERY, INC. II. THE LABOR ORGANIZATION INVOLVED It is undisputed, and I find, that the Union is a labor organization within the meaning of Section 2(5) of the Act. 111. THE ALLEGED UNFAIR LABOR PRACTICES AND OBJECTIONS TO ELECTION The complaint alleges that Respondent violated Section 8(a)(1) of the Act when, on various dates between August 1977 and January 31, 1978, the date of the rerun election, it coercively interrogated its employees concerning their sym- pathies and activities on behalf of the Union; threatened its unit personnel that it would close its plant or refuse to enter into a contract with the Union in the event that entity was successful in the forthcoming election; threatened employees with discharge if they engaged in union activities; offered and promised its work complement life insurance benefits if they eschewed union representation; and granted certain employees pay increases in excess of the amount required to comply with the prevailing Federal minimum wage rate in order to wean them away from the Union. For its part, Respondent denies the commission of any labor practices banned by the controlling legislation and further denies that a third election is warranted by any conduct in which it indulged. As chronicled above, Respondent operates a bakery in Port Chester, New York, at which it employs approximately 96 unit employees.' On January 31, 1978, the Regional Director conducted the rerun election, the tally of ballots in which showed that, of the 96 eligible voters, 32 had cast their votes for, and 44 had balloted against, the Union, with 12 challenged votes, a number insufficient to insure a union victory even if they had been cast in favor of that labor organization. Thereafter, on February 7, 1978, the Union filed a total of nine objections to the election. On May 8, 1978, the Union's request to withdraw three of those objections was approved by the Regional Director and, at the hearing herein held on May 30, 1979, I granted the Union's motion to withdraw three additional objections for lack of proof thereof. Thus, as the hearing commenced, only three objections which have their parallel in the allegations of the complaint remained for consideration. To support the allegations in the complaint and the companion objections to election, the General Counsel drew on the testimony of two employees, Arnaldo Paglioca and Leroboldo Ceja. Paglioca has worked for Respondent for several years as a dough mixer and, during the Union's latest election cam- paign, was a member of the in-plant organizing committee and served as a union observer at the rerun election. Paglioca testified that in late September 1977 he was called to the office of Respondent's president, Rocco Cassone, a happenstance which occurred almost on a daily basis during the course of his employment. On this occasion, Rocco Cassone showed the employee a piece of paper which contained the names of various bakeries and remarked that they had gone out of business because of financial difficul- ' The parties stipulated that the appropriate unit consisted of all full-time and regular part-time packers, production workers, shipping and receiving employees, order takers and fillers, maintenance employees, and sanitation ties. Rocco added that "I don't want to see trouble because I have to go careful. I got to take care of my place and I want my place to go very well .... I want to do everything nice for the people .... I can't have a high raise right now. I can't pay too much. Not because I . . . no like the Union . . I like it. If the Union come, I got to go careful because I got to watch my position. I don't want to go broke. The Union ask high raise but I don't know if I got to pay it." Rocco then called attention to a new machine which Respondent had acquired from a bakery which had been forced to close its doors due to financial troubles occasioned by the economic demands made upon it by a labor organization. Turning to the election scheduled for January 31, 1978, President Cassone stated that, if the Union were successful in the balloting and contract negotiations commenced between the parties, "We got to talk-you got to see because I got to go careful and I can't go broke. I know the Union ask a high raise but I don't know if I got to pay it." Rocco added that "if it come, the contract, we got to see because I can't sign everything the people want . ... people think I got a lot of money but I no have-in my position it's not so great. He say, he got to see if the contract is good, I sign. If it is no good, I can't do." Finally, Rocco observed that, if the Union called a strike, "the people no got a work. They can't work .... The people lose their job because of the strike. That's bad for the people." In his testimony, President Cassone related that, com- mencing in 1973, he began to build an addition to the existing bakery structure which, at the times material herein, had not yet been completed. Cassone went on to explain that he frequently had conversations with Paglioca while at work and that, during one of these dialogues which occurred in 1977, he showed the employee some of the equipment which he had purchased for the new addition from a list of bakeries in the area which had been forced to close due to financial problems. Cassone stated that he did not wish to experience the same problems at Respondent's plant. Cassone also remembered telling Paglioca that, if the Union won the forthcoming election, it would be impossible for him to sign an agreement with that entity which contained everything that the employees demanded, but that he would execute a contract with which he could live. The complaint and a companion objection to election allege that, by the foregoing conversation with Paglioca, Respondent threatened the employee that the plant would be closed or that Respondent would decline to enter into a contract with the Union if the latter won the impending representation election. I am unable to agree. Paglioca, who was an ardent union supporter, made it testimonially clear that the conversation in question occurred during one of his frequent visits to Rocco Cassone's offices in September 1977. During their discussion, Cassone mentioned that he had acquired some new machinery from defunct bakeries which had failed because of the economic hardships that had befallen these enterprises due to excessive union bargaining demands. As far as this record stands, Cassone's statement in this regard was a truthful representation of what had employees, excluding all outside sales persons, drivers. office clerical employ- ees, inside sales clerks, guards, and all supervisors as defined in the Act 221 DECISIONS OF NATIONAL LABOR RELATIONS BOARD occurred. Cassone then remarked that, if the Union won the election, he would bargain with that entity because he was not opposed to the unionization of his plant. However, he cautioned that he was not a wealthy man and that he could not afford to satisfy economic demands made by the Union which would affect his corporate solvency. In my opinion, Rocco Cassone's statements to Paglioca did not constitute threats of plant closure or of a refusal to bargain over contract terms in the event the Union was successful in the election.' I shall therefore dismiss the complaint insofar as it alleges that such statements constituted violations of Section 8(a)(l) of the Act, and I shall overrule the pertinent objection to election. The complaint further charges that Respondent offended the provisions of Section 8(a)(l) of the statute by threatening employees with discharge if they engaged in union activities, and a companion objection to this alleged misconduct was lodged by the Union. The evidence to support these pleadings came from the testimony of employee Leroboldo Ceja. Ceja was hired by Respondent in November 1972 as a general clerk, and his duties consisted of cleaning ovens and painting the machinery in the bakery. Ceja testified that, about a week prior to the January 31, 1978, rerun election, he was conversing with employee Rubin Rodriguez while at work when President Rocco Cassone approached. Accord- ing to Ceja, Rocco Cassone accused the former of talking about the Union on company time and Ceja denied the accusation. Rocco then inquired whether the employee knew that he could be discharged for this activity, and Ceja invited Respondent's president to fire him if Rocco so desired. When reminded that the complaint alleged that Dominic Cassone, and not Rocco, had engaged in this alleged misconduct, the General Counsel thereupon amended his complaint to add the name of Rocco Cassone as the newly discovered miscreant. Ceja also remembered that, approxi- mately a week before the rerun election, Dominic Cassone also warned him that he could be discharged for talking to employees about the Union, a warning which was repeated about a half hour later while Ceja was cleaning the oven. I do not credit Ceja's testimony on this score, not only because he failed to impress me with his candor as a witness, but also because his testimony, when considered as a whole, lacks both plausibility and corroboration. Thus, Ceja testi- fied that his only overt activity on behalf of the Union during the rerun election campaign actually took place on election day when he served as a union observer. Although Ceja testified that he had spoken in favor of the Union to all employees at the bakery, he then confessed that he had not talked to employees about the Union on the day when Dominic and Rocco Cassone allegedly threatened him with discharge for doing so. Finally, he made the surprising admission that he had never broached the subject of the Union in Cassone's presence because "I wasn't going to wait that somebody is around to speak about the Union." Moreover, I deem it implausible that Rocco Cassone could have threatened Ceja with discharge for discussing the subject of unionization with employee Rubin Rodriguez a week before the January 31, 1978, election in light of Rocco's uncontroverted testimony that he was not conver- sant in the Spanish language, Ceja's native tongue. Further- more, Ceja admitted that he had been warned by his supervisors on several occasions before the rerun election for excessive talking while at work which was unconnected with any union topic. Finally, Ceja's testimonial report of Rocco Cassone's warning about discussing the Union with Rodri- guez a week before the election lacks corroborative support from Rodriguez who was not summoned as a witness by the General Counsel although, so far as appears, he was still in Respondent's employ, and no reason was advanced for counsel's failure to do so. In sum, I am persuaded and find that neither Rocco nor Dominic Cassone unlawfully threatened to discharge Ceja for supporting the Union's cause in the forthcoming election. I shall therefore dismiss this allegation from the complaint and overrule the parallel objection to the election. The General Counsel further contends that Respondent violated Section 8(a)( ) of the Act and engaged in objection- able preelection misconduct when, in August 1977 and on various dates in January 1978, it offered and promised its unit employees life insurance benefits if they shunned union representation. The testimony surrounding this allegation is not in essential dispute, and I find the facts to be as follows. For some years prior to the advent of the Union, Respondent maintained a pension plan for its eligible employees which also provided life insurance policies for those who were covered thereunder. Under the arrangement, employees were entitled to a death benefit after 3 years of employment pursuant to a whole-life insurance policy which was owned by the pension trust. During the summer of 1977, an accounting firm which handled Respondent's business affairs recommended that Rocco Cassone contact an insur- ance agent named Stephen Kramer in order to have the existing pension plan reviewed to explore the impact upon it occasioned by the passage of the new Employment Retire- ment Income Security Act (ERISA). Kramer learned of this referral from the accounting firm and telephoned Rocco Cassone about the matter. After examining the plan, Kramer referred the work to be done on the plan to an attorney with legal expertise on the subject. After Respondent's pension plan was conformed to the ERISA laws and the method of funding was altered from funding by an insurance carrier to self-funding, Kramer considered the resultant costs to be a "rip-off." Consequent- ly, Kramer advised Rocco Cassone to adopt a plan providing for group termlife insurance, explaining that Respondent could effect a cost-saving of between 25 and 30 percent by substituting group term for whole-life policies. Kramer further explained that, in addition to covering its entire work complement, group term insurance afforded the additional advantages of being completely tax deductible to the corporation and of providing the officers and shareholders up to $50,000 in life insurance which was free from the burdens of taxation. Upon receiving this explanation sometime in June or July 1977, Rocco Cassone agreed to implement Kramer's recom- mendation. Accordingly, in August 1977 Kramer dispatched 222 J. . CASSONE BAKERY. INC. enrollment cards to Steven Rysick, Respondent's bookkeep- er, who distributed them to all employees whom he believed eligible to receive the benefit. Thereafter, the signed cards, together with an application and a check for 2 months' advance premium, were forwarded to Kramer's office. Kramer was unable to review the documents which he received until the new policy was issued in November 1977. After noticing that the number of employees on the first premium billing was substantially less than the eligible employees listed on the payroll, Kramer telephoned Respon- dent's bookkeeper about this discrepancy and learned that Rysick had only submitted the names of those employees who had been covered under the abandoned pension plan and had discarded the remaining enrollment cards. Kramer thereupon advised Rysick that all employees who were on the payroll on September 1, 1977, the effective date of the new policy, and who met the eligibility requirements, were to be covered. Kramer departed for his vacation during the last 2 weeks in November. In early January 1978 he delivered the additional enrollment cards to Respondent's bakery and again explained to Rysick which employees were eligible for group term insurance. During his visit, he urged Respondent to have the eligible employees immediately fill out the enrollment cards because the information was critical to a determination of the premium rate and to forestall possible litigation by potential beneficiaries in the event of the demise of an eligible employee. Kramer's testimony is unrefuted and I find that, at no time during his discussions with Rocco Cassone or bookkeeper Rysick, was he aware that a union election campaign was in progress or that a representation election was scheduled for January 31, 1978. Moreover, I accept his undenied testimony that Rocco Cassone never discussed the subject of unionization with the insurance agent. I also find, in the absence of any evidence to the contrary, that Respondent's officials never announced the change in insurance coverage to its employees at any time prior to the election.5 Upon my review of the record evidence developed at the hearing, I am not convinced that Respondent's change in insurance coverage for its employees was calculated to impinge upon their freedom of choice in the rerun election held on January 31, 1978. That evidence discloses that Respondent had maintained a life insurance program for years before the Union entered the scene, and even Paglioca admitted that he had been the beneficiary of the pension plan, which contained life insurance benefits, during the many years of his employment. In June 1977 Rocco Cassone learned by happenstance from his accountant that a friend, Stephen Kramer, specialized in insurance programs and could be of assistance in assuring that Respondent's existing insurance format was in line with the strictures of the new ERISA laws. Kramer contacted Cassone and, after a detailed study was made, informed Respondent's president that the continued maintenance of the group whole-life insurance plan under funding by an insurance carrier was a "rip-off." Kramer explained that a self-funding program ' In this connection, employee Arnaldo Paglioca testified that in September 1977 he signed an insurance enrollment card which he found on a desk in the bakery shop. According to Paglioca, he learned about the presence of the card from another employee. Similarly, employee Leroboldo Ceja testified that he overheard other employees mention the insurance enrollment cards which were in the plant a few weeks before the rerun election. Ceja did not sign one. providing for group termlife insurance was available at a savings of 25 to 30 percent which would be tax deductible to the corporation, and also offered coverage in the amount of $50,000 to the officers and shareholders with concomitant tax advantages. Upon learning of these savings and tax advantages, Rocco Cassone decided to avail Respondent of this windfall and, without notifying the employees, instruct- ed Kramer to implement the new program. It is axiomatic that an employer does not offend the provisions of the statute, and an election will not be nullified, as a result of his grant of benefits during the pendency of a representation petition, unless the award of such benefits is designed to intrude upon the employees' freedom of electoral choice or the effect of granting the benefits can be reasonably said to be calculated to accomplish that end.' In applying this axiom, the Board has eschewed utilization of a mechani- cal approach to its assessment of such preelection conduct.' And, the Board has made it clear that existing terms and conditions of employment need not remain static until a union campaign, no matter how extended in duration, comes to an end.' With these precepts in mind, I am persuaded and conclude that the alteration which Respondent adopted in its life insurance program was not condemned by the Act and affords no basis for upsetting the election results. As heretofore found, Respondent had maintained an insurance program for its work complement long before the Union entered the picture. In June or July 1977, more than 6 months prior to the rerun election, Respondent learned that its current insurance plan, when brought into conformity with ERISA requirements, would be overly expensive and that a plan suggested by an independent insurance agent would be more beneficial, not only to the employees, but also to Respondent and its officials. Armed with this intelligence, Respondent gave the insurance agent authority to implement the new plan. This plan, which was never announced to the employees, became effective on September 1, 1977. Because of administrative bungling by Respondent's bookkeeper, full enrollment was not achieved until January 1978. Viewed against this backdrop, I am convinced that Respondent was not statutorily obligated to stay or abandon implementation of the new insurance program which was bottomed on sound, business considerations, simply because an election had been scheduled to take place some 6 months in the future. In short, I conclude that the plan was not violative of Section 8(a)(l) of the Act, and I shall dismiss this allegation from the complaint. I shall also overrule the pertinent objection to the election. The complaint also alleges that, in or about January 1978, Respondent granted certain employees pay raises in excess of the amounts required to comply with the January 1, 1978, increase in the Federal minimum wage rate, and thereby violated Section 8(a)(1) of the Act. An objection to the election echoes this allegation. On January 1, 1978, the Federal minimum wage rate was increased from $2.50 to 2.65 per hour. President Rocco Cassone testified, without contradiction, and I find that, 'N.LR.B. v. Exchange Parts Co.. 375 U.S. 405 (1964). ' Champion Pneumatic Machinery Co., 152 NLRB 300 (1965). ' Drug Fair-Community Drug Co.. Inc., 162 NLRB 843 (1967' 223 DECISIONS OF NATIONAL LABOR RELATIONS BOARD prior to that date, a few of his employees were paid $2.50 an hour. After the Federal rate was escalated, these employees were afforded an hourly rate of $2.75. Cassone explained that, when he personally attended to the corporate book- keeping chores in the past, he made it a practice of rounding out the hourly wage rates to increments of 25 cents, i.e., $2, $2.25, $2.50, $2.75, etc., to simplify bookkeeping procedures. With the advent of the Federal increase, Respondent's bookkeeper, who had assumed Rocco's payroll chores, sought permission to follow the president's past practice in order to make his bookkeeping calculations uniform and therefore simpler. Without announcing or otherwise publi- cizing the rate increases to the employees, Rocco advised the bookkeeper to continue the former's prior practice and raise the involved employees' hourly wage rate from $2.50 to $2.75 rather than $2.65. So far as this record stands, there is no evidence to establish that any of the increases were actually paid to the affected employees prior to the rerun election of January 31, 1978. In Essex International, Inc.,9 the Board announced that, although the granting of employee benefits, such as wage increases, during the period immediately preceding an election is not per se objectionable, it would find such actions calculated to influence employees in their choice of a bargaining representative unless the employer shoulders the burden of establishing that the timing of the action was governed by factors other than the pendency of the elec- tion."° In the instant case, the concept of the wage increase was mandated by Federal law beginning on January 1, 1978. Rocco Cassone testified and I have found that, in accor- dance with past bookkeeping procedures, Respondent es- sayed to simplify its payroll calculations by paying its employees' wage increases in increments of 25 cents. When the Federal minimum rate was raised from $2.50 to $2.65 on the above date, Cassone complied with his bookkeeper's request to follow standard practice and pay a few employees $2.75 rather than $2.65 an hour. Moreover, as heretofore '216 NLRB 575. 576 (1975). "'See Micro Measurements. et al.. 233 NLRB 76. 77 (1977). "In the event no exceptions are filed as provided by Sec. 102.46 of the Rules and Regulations of the National Labor Relations Board, the findings, chronicled, there is no probative evidence on this record which demonstrates that any of these scattered increases were either announced or granted prior to the rerun election. Under all the circumstances, I am convinced and conclude that the General Counsel has failed to sustain his burden of proving that Respondent granted its employees increases in January 1978, with an object of influencing them in their choice of a bargaining representative. I shall therefore dismiss this allegation from the complaint and overrule the companion objection to the election. Finally, the complaint alleges that Respondent violated Section 8(a)(l) of the Act and engaged in objectionable preelection misconduct when, in September 1977, it coer- cively interrogated its employees concerning their sympa- thies and activities on behalf of the Union. No evidence was presented at the hearing to substantiate this claim. I shall therefore dismiss this allegation from the complaint and overrule the parallel objection to the election. I have found that Respondent has not committed any of the unfair labor practices alleged in the General Counsel's complaint. I shall therefore dismiss the complaint in its entirety. I have also overruled the Union's objections to the rerun election of January 31, 1978, on the ground that they afford no basis in fact or law for overturning the results of that balloting. I shall consequently recommend that the election results be certified and that the petition in Case 2- RC-17535 be dismissed. Upon the foregoing findings of fact and conclusions of law, and pursuant to Section 10(c) of the Act, I hereby issue the following recommended: ORDER" It is hereby ordered that the complaint herein be, and it hereby is, dismissed in its entirety. IT IS FURTHER RECOMMENDED that the objections filed in Case 2-RC-17535 be overruled and that the petition in that case be dismissed. conclusions, and recommended Order herein shall, as provided in Sec. 102.48 of the Rules and Regulations, be adopted by the Board and become its findings, conclusions, and Order, and all objections thereto shall be deemed waived for all purposes. 224 Copy with citationCopy as parenthetical citation