Keystone Freight LinesDownload PDFNational Labor Relations Board - Board DecisionsJun 29, 194024 N.L.R.B. 1153 (N.L.R.B. 1940) Copy Citation In the Matter of. KEYSTONE FREIGHT LINES and INTERNATIONAL BROTHERHOOD .OF :TEAMSTERS; CHAUFFEURS, STABLEMEN, AND HEI P- Figs, , LocaL 523 Case ' No. 6-i491.-Decided June 29, 1940, Common Carrier. of ° Freight-Interference, . Restrdint, 'and Coercion-Com= pany-Dominated, ' Union: domination . of and 'interference with administration and lending support ,thereto ; recognition of. and granting closed-shop contract to pi'ior 'to first membership meeting; organization activity conducted and meetings held ,.on company property .; collection of dues and issuance of buttons by dock foreman ; . hostility to "outside" union and preference for "inside" union expressed by,general manager ; barren history of collective bargaining ; failure to act on grievances ; failure to , remand ' improvements in working conditions for two years after its formation' until compelled to by dissident members subsequently discharged .; ordered disestablished-Diicrilnfnation : discharges ; two employees whose . opposition to contract proposed by-officer of company -dominated union compelled employer to grant wage increases discharged immediately following expression of opposition and shortly after - joining "outside union" ; alleged reasons for discharges not sustained by record ; Company admittedly knew facts upon whose 'discharges were allegedly based in both ' cases for several months prior to discharges-Rei'nstatem'ent Ordered-Back Pay: as to one employee from date of discharge to date of offer of reinstatement : as to second employee from date of discharge to. date . of Intermediate Report and thereafter from date of Order to date of offer of reinstatement; (Leiserson dissenting) employee having obtained employment similar to that which he performed for company- and not having indicated desire to'be reinstated, would limit remedy to award of back, pay from date of discharge to other employment obtained. "Mi.' L. N. D. Wells, Jr., for the Board. Mueller & Mueller, by Mr.. Karl H. Mueller and Mr. Harold E. Mueller, of Fort Worth, Tex., for' the respondent. 'Hudson. c6 Hudson, by Mr. Ted H. Haugh, of Tulsa, Okla., for the Keystone' Independent. ' Mr. Jess W. Caldvell,_of Tulsa, Okla., for the Teamsters. Miss Marg Metlay, of counsel to the Board:' DECISION AND ORDER STATEMENT OF THE CASE 'Upon charges duly filed by International Brotherhood of Team- sters, Chauffeurs, Stablemen, and Helpers, Local No. 523, affiliated 24 N.:. L. R. B., No. 128. 1153 1154 DECISIONS OF NATIONAL LABOR- RELATIONS BOARD with the American Federation of Labor, herein called the Teamsters, the National Labor Relations Board, herein called the Board, by the Regional Director for the Sixteenth Region (Fort Worth, Texas), issued' its. complaint dated September -13, 1939, against' .Keystone Freight. Line,. Tulsa, Oklahoma, herein called the- respondent, alleg- ing that the respondent had engaged-in and was engaging in unfair labor practices affecting commerce, within the meaning of. Section 8 (1),,(2), and (3) and Section 2 (6) and (7) of the National Labor Relations Act, 49 Stat. 449, herein called the Act. With respect to the unfair labor. practices the complaint alleged .in substance : (1) that on or about March 23, 1938, the respondent purchased the business enterprise known as the Adams Union Truck' Terminal,' herein called the Adams Company; (2) that prior" to March 23, 1938, the Adams Company encouraged, fostered, domi-' nated, and interfered, with the formation and administration of `a labor organization known as the Adams Union Truck Terminal Road Drivers, Pickup Drivers, Dock Workers, and Garagemen's Union, herein called the Adams Independent, and contributed finaicial aiid other support thereto; (3) that subsequent to March" 23, 1938, the respondent continued in existence the Adams Independent under the name of the Keystone Road Drivers, Pickup Drivers, Dock Workers, and Garagemen's Union, herein called the Keystone Inde- pendent, and under the management of the officers of the Adams Independent; (4) that the respondent from about March 23,'193S. down to and including the date of the filing of the complaint, en couraged, fostered, dominated, and interfered with the administra- tion of the Keystone Independent, and contributed financial and. other support thereto, in that respondent permitted meetings of the Keystone Independent to be held regularly on its premises,. i ermit- ted solicitation of membership and collection of dues to be'inade by the Keystone Independent's officers during working hours and on its premises, and, by its dock foreman, E. A. Keffer, collected dues from and distributed union buttons to various of its employees,; (5) that the respondent, on or about` March 27, 1939, inquired ,of Lee Summerlin as to what persons were affiliated with the Teamsters, on or about March 1, 1939, advised Lee Summerlin and others to refrain from affiliating with the Teamsters and to remain affiliated with the Keystone Independent, and on or about April 13 advised Lee Summerlin, who was then a striking employee, to abandon the strike and to cease affiliation with the Teamsters; (6) that the re- spondent discriminatorily discharged and refused to reinstate Har- vey Rolen, and . Roy E. Dowd because they joined and assisted ^ tlu3 Teamsters and engaged in concerted activities- with other employees of the Tespondent for the purpose of collective bargaining and other KEYSTONE FREIGHT' LINES '" " - , 11'55 mutual aid and protection; and '(7) :that. the respondent by the- fore- , going. and. ; by other acts, interfered with, : restrained; and coerced its`employeesin the exercise of the rights guaranteed in Section-7. of the Act:: Copies of the complaint, accompanied by notice of ,hear- were ; duly served upon the respondent, the Teamsters,. and the Keystone- Independent. On October 2, 1939, the respondent filed its answer, admitting certain-allegations as :to the nature of its business, and" denying that - it had engaged in'or was engaging in the unfair labor practices as alleged. The- answer, further alleged. that the discharges of Harvey Rolen' and Roy E. Dowd were made for good and sufficient cause., - On October '10, 1939, the respondent filed a motion with the Re= gional -Director to strike and dismiss allegations in the complaint which set forth the conduct and activities of the Adams Company, for the reason that there, is no identity of enterprise between the' busi= ness operated by the Adams Company prior to March 23,1938, and the business'.'operated by the respondent subsequent to that date,. so as to make the alleged unlawful acts and conduct of the 'Adams 'Com- pany legally, imputable to the respondent. On the same date the re- spondent also filed with the Regional Director 'a motion for further and better particulars. ' . ' Pursuant to notice and order extending the date -of hearing, a hearing was held. in Tulsa, Oklahoma, on; October 26; 27, 28, 30, and 31,'1939, before John T. Lindsay, the Trial Examiner duly desig- nated by the .Board. The Board and the respondent, represented by counsel, and the Teamsters, represented by its business agent, par- ticipated in the hearing. At the commencement of the hearing the Trial Examiner denied the respondent's' motion to strike and dismiss which had previously. been filed with the Regional, Director. The respondent's' contention in support of its motion to strike and dis- miss is based upon a: misapprehension of the purpose of the inclusion in the complaint 'of allegations setting forth the acts and conduct of the Adams Company. Said, acts and conduct are a proper subject for inquiry - at the hearing not in -order to impute -such conduct to the respondent,. but as a background for the' alleged unlawful acts of the respondent.) The respondent's contention that there'is no iden- tity of enterprise between, the business operated by the .Adam s' Com pany prior. to March 23; 1938, and the business operated by the respondent subsequent to March 23, 1938, is not supported by the record. The ruling of the Trial 'Examiner is hereby affirmed. The Trial Examiner also denied the respondent's motion for fur- ther and better particulars which had-previously been filed with the 1 See Matter of Corning G lass Works; Macbeth-Evans Division and Federation of Flat Glass Workers of America, 15 N. L. B. B. 598. 1156 DECISIONS OF NATIONAL LABOR RELATIONS BOARD Regional 'Director. In :denying this motion, the Trial : Examiner advised the respondent- that if any matters were introduced during the_ hearing 'which in any way took the respondent . by surprise the respondent would be ' afforded a reasonable length of time at the conclusion of the Board's case to prepare to meet any such evidence. The respondent's counsel requested and was granted 2' hours at the close 'of 'the Board's case to prepare its defense. After- the Trial' Examiner had` ruled on the foregoing . motions the:-Keystone Independent filed with the Trial Examiner a motion and petition to intervene.. The:-Trial Examiner granted this mo- tion, limiting the intervention- to that phase of the case relating to the charge of domination of the Keystone Independent. In addi- tion to the general motion to intervene, separate'. petitions to inter- vene for' each member ,of the Keystone, Independent were separately filed on behalf of said members. The Trial - Examiner: denied the separate petitions to intervene. Thereafter the. Keystone Independ- ent was represented by counsel and participated in the hearing>w.ithin the limitation noted. Full opportunity to be heard, to examine and cross-examine -witnesses, and. to introduce evidence bearing on the issues was afforded all parties. At the close of the Board's case counsel for the respondent moved to strike and dismiss all testimony concerning matters that occurred prior' to March 23, 1938, in connection with the operations. of the business of the Adams . Company, as incompetent, irrelevant, im- material, and . not binding on the respondent, and to dismiss the complaint for failure of proof. Counsel for Keystone Independent joined in these motions.. - The Trial Examiner denied both motions. At the close of the respondent's case and again at the conclusion of the hearing, the respondent renewed its motions made at: the, close of the Board's case. The Keystone Independent joined in that re- newal. The Trial Examiner reserved his rulings. on these motions and denied them in his Intermediate Report. During the course of the hearing the Trial Examiner ruled on other motions and on-objec- tions' to the admission Of - evidence. The Board- has reviewed the rulings of the Trial Examiner and-finds that no prejudicial errors were committed. The rulings are hereby affirmed. At the conclusion of the hearing counsel for the Board moved to amend the complaint to conform to the proof, which motion, limited to the correction of spelling of names and typographical errors, was granted by the Trial Examiner. The ruling is hereby affirmed. On' February 10; 1940, the Trial Examiner filed - his Intermediate Report. He found that the respondent had. engaged in and was en- gaging in unfair labor practices within the meaning of Sections 8 (1), (2), and (3) and 2 (6) and (7) of the Act, and recommended that KEYSTONE FREIGHT. LINES 1157 the'respondent cease and desist from the. unfair labor practices found, reinstate with back 'pay Roy E. Dowd, and post notices that it will disestablish and withdraw recognition from the Keystone Independent and cease giving'effect to its contract'with the Keystone Independent. He recommended 'further, that the complaint be dismissed. in' so far as'• it alle'ge' that''the: respondeiit disci'im i atoril} . discharged 'Harvey Rolen. On March 7 and 11, 1940, pursuant to an extension of time granted by the Board, the respondent and the Keystone Independent,. respec- tively, filed exceptions to the 'Intermediate Report. The Teamsters did not file exceptions to the Intermediate Report. On March 16, 1940,' the respondent filed a brief with the Board in support of its exceptions. No requests for oral argument were made. The Board has reviewed the exceptions to the Intermediate Report, and has considered the respondent's brief in support of its exceptions and, in so far as said exceptions,are inconsistent with the findings, conclusions,' and order;.set forth-below, finds them to be-:Without merit. Upon the entire record in the case, the Board' makes the following: FINDINGS OF FACT 1. THE BUSINESS OF THE RESPONDENT The respondent, all Oklahoma corporation duly chartered on Janu- a.ry 27, 1938, as a common carrier of freight, is engaged in the busi- ness of . transporting by truck freight and' commodities over regular routes through and in the States of Oklahoma, Arkansas; Texas, and Kansas. Its principal office and place of business is in' Tulsa, Okla- Noma, and it employs approximately 67 employees. From January 27 to about March 23, 1938, the respondent operated as a small common carrier of freight in the State of Oklahoma, em- ploying. only four. employees, and operating only three pieces of equipment.' On or about February 28, 1938, the respondent pur- chased from the Adams Transfer and Storage Company 2 certain of its motor. trucks, tractors and. trailers, office furniture, warehouse and shop equipment, and certain leases and routes covered by certificates of convenience and necessity issued by the State of Oklahoma, all of which, with the exception of two routes, comprised the operations of the Adams Company in its entire southwest division. ' On March 23, 1938, the respondent began its operations of the equipment and routes' 3 The Adams Transfer and Storage Company is sometimes referred to in the record as the Adams Union Truck Terminal . It appears from the record'and from the respondent's brief "that ,"Adams Union Truck Terminal ," is the designation given terminal warehouses and dock facilities maintained and operated by the Adams Transfer and Storage Company in several cities, one of which was located in Tulsa, Oklahoma . -To avoid confusion both the Adams Transfer and Storage Company and the Adams Union Truck Terminal are herein called the Adams Company. 283035-42-vol. 24---74 1158 DECISIONS OF:'NATIONAL LABOR '.RELATIONS BOARD' purchased from the Adams : Company. , Thereafter,,on July .15,,1938i and on August 7, 1938, the respondent purchased certain certificates of convenience and necessity covering two additional. routes; The respondent is subject to -the terms and provisions of the Motor Carrier Act of . 1935.3 In 1938 : ,the- respondent' .transported, approximately 45,437,804 pounds of freight; approximately 50 per cent of which was transported in interstate commerce from and to States of the United States other than the State of Oklahoma.4 We find that the respondent - is engaged in traffic, commerce, and transportation among the several States and that. the employees- of the respondent are directly engaged: in.such traffic, commerce, and transportation. . II. THE ORGANIZATIONS INVOLVED International Brotherhood of Teamsters, Chauffeurs, Stablemen, and Helpers, Local No. 523, is a labor organization affiliated with the American Federation.of Labor,-admitting to membership, employees of the respondent and other freight- carriers in the vicinity of- Tulsa. Keystone Road Drivers, Pickup Drivers, Dock Workers, and Garagemen's Union is an independent labor organization, admitting to membership only the employees of the respondent. Iii. THE UNFAIR LABOR PRACTICES A. 'Backyraumi In August or . September of 1937. Gordon Sliryock,.a representative of the Teamsters; went to Kansas City, Missouri, where the Adams Company maintained its principal offices, aid attempted to negotiate a contract .with Adams, president 'of the Adams Company, for its employees. in. Tulsa, Oklahoma.. Adams refused to negotiate until he had ascertained whether or not his employees wanted to be repre- sented by the Teamsters. He Vent to Tulsa for that purpose and- conducted ail election. Eighteen employees voted against representa- tion by the Teamsters and two voted for such representation Lee Summerlin, a witness called by the Board, who had been in the employ of the Adams Company and subsequently in the employ of the respondent, testified that in October 1937 Delmar Shutter, an employee of the Adams Company and subsequently of the respondent, circulated a petition on the dock of the Adams Company during working hours concerning the organization of an independent- union. $ 49 Stat. 543. 4'The respondent, its officers , or- Stockholders . - ate in no way connected or affiliated with the Adams Company , and the Adams Company is in no way affiliated or connected with the respondent 's business . The 'Adams Company continued to operate, conduct, and maintain its business over all of its routes except those sold'to respondent.the KEYSTONE' FREIGHT LINES 1159 Shutler denied having circulated a petition, but testified that•he.spoke to "the boys" during October 1937, on the. dock and during working hours, about organizing such a union. Shutler arranged fora meeting which was held in November 1937 at the home'of E. A':'Keffei, the dock,foremaii of the Adams Company, and attended by approximately 10 to 17 employees, for the purpose of forming an independent union. Shutler testified that two em= ployees of the Adams Company roomed with Keffer and were 'privi- leged to call meetings in Keffer's home if they so desired. The record is clear' that Keffer was not present at the meeting. Keffer, testified that he was not informed that the meeting was to be held at his home; that he was away at that time, that on his return after the meeting had been held he was informed by one of the employees who resided with him that a meeting had been held at his home,, and that he.was not told the nature and the purpose of the meeting, nor did, he inquire as to or know its purpose. In view of the support subsequently ac- corded to the- Adains-'Independent by: the Adams., Company, and in view of the finding:of the Trial Examiner who-had an opportunity to observe the demeanor of the witnesses, we do not believe that such a meeting was held in Keffer's home withoilt his knowledge and consent. Shutler arranged for the presence of an attorney, Joy Clayton, who had prepared articles. of association which were adopted by the employees present at'the meeting. The Adams Dock Terminal, Road Drivers, Pickup Drivers, Dock Workers, and Garagemen's Union was adopted as the name of the union. It was agreed that meetings were to be held regularly on the first Sunday of each month thereafter and that members would .pay $1 per month as membership dues. Shutler was elected president of the Adams Independent, Charles Dozier, vice president, Ray Beals, secretary, and Lee Summerlin, treasurer. Shortly thereafter the Adams Company entered. into a closed-shop contract' with. the Adams Independent.. There is nothing in the record to show what negotiations, if any, took place in connection with that contract. However, it is obvious from the testimony of the officers of the Adams Independent that both the Circumstances surrounding the execution of this contract and its terms were sufli- ciently..nebulous to justify doubt as to the bona fide character of any negotiations that may have been conducted. The secretary of the Adams Independent testified that he had no recollection con- cerning-even the existence of the contract, and Surnmerlin, the treas- urer of the Adams Independent, knew of its existence only because, as treasurer of the union, he had paid Clayton for drawing it, up. Sliutler testified that he did not remember whether or not the con- tract provided for any changes in the then existing working condi- 1160 DECISIONS OF NATIONAL LABOR RELATIONS BOARD tions of the employees of the Adams: Company. The record reveals that no changes in working conditions were in fact provided for by the contract. ..The second meeting of the Adams. Independent was not called until February 1938: Although the Adams Company imposed a reduction in pay on its-employees. between November 1937 and February 1938, the newly formed organization failed to call meetii'igs.'during-, that period or to take up the problem created by the reduction in pay, either with the management or with its members, despite the fact that, as both Beals and Shutler testified, its members were gravely concerned by the reduction. Beals testified that "that-was not union business." We can only conclude from the docility and acquiesence displayed by the Adams Independent, so soon after its formation, to the reduc- tion, in pay, imposed on its members, that it was not interested in genuine collective bargaining for its members.' This conclusion is further demonstrated by the failure of the ..officers of the, Adams Independent to recall the nature and even the existence of "'the first closed-shop contract it. had entered into with the Adams Company. The gaining of a closed-shop contract by a newly organized union is of sufficient importance to impress itself on the memory of the officers of that union. Its failure so to impress itself iii this instance reveals that it was an easy and quick victory granted by' a company only too eager to accord it recognition in order to satisfy the desire of the company rather than the; request of the employees.' The meetings of the Adams Independent in February 1938, and thereafter, were held in the office of the Adams Company and on. the. dock adjacent to the office. The Adams Company was not paid for the use of its office or dock as a meeting place. The treasurer of the Adams Independent collected dues on company property dur- ing working hours.. Thus the Adams Company permitted the Adams Independent to meet on the Adams Company's property and to engage thereon in union activities: during -working hours. 6 No satisfactory explanation was offered by the officers of the * Adams Independent as to why they failed to call meetings during that period . Beals, the secretary , testified that no meetings were called because employees were unable to pay dues as a result of the pay cut . However, this explanation argues more persuasively for the calling of meetings rather than against it, particularly since there was no expense involved in calling and conducting meetings. 6 See Matter of S. Blechman & Sons, Inc. and . United Wholesale Employees of New York, Local 65, Textile Workers Organizing Committee-Committee for Industrial Organi- zation, 4 N. L. R. B. 15. . ' Cf. National Labor Relations Board v. American Potash & Chemical Corporation et at., 98 F. (2d ) 488 (C . C. A. 9), enforcing Matter of American Potash & Chemical Corpora- tion and-Borax & Potash Workers ' Union No. 20181, 3 N. L. B. B. 140 , cert . denied 306 U. S. 643. KEYSTONE FREIGHT LINES 1161 "Iri view of the foregoing we find that the Adams 'Company domi- nated the formation and administration of the.:Adams independent contributed support thereto.and On March 23, 1938, the respondent,. pursuant to the transaction described in Section I above, began its operation of the trucks -and equipment- purchased. from the Adams Company. The respondent conducted its operations from the same office and terminal from which the Adams Company had conducted its southwest operations; the respondent continued in its employ the former employees of the Adams Company's' southwest division and, with some minor changes, in the same capacity; said employees with the addition of four em- 'ployees then working for the respondent, comprised all of the respondent's employees; and 'the respondent continued to use the same equipment- in. the same manner, with minor- deviations, as it 'had been used by, the Adams Company. The changes that were made were those normally made in the-conduct of any similar busi- ness. The' two supervisory employees of the Adams Company, the dock foreman, Keffer, and the manager, Sears, were retained by the respondent and continued to supervise the respondent's 'employees. We find that for the-purposes of this proceeding the enterprise owned and operated by the 'respondent subsequent to March` 23, 1938, is substantially the -saine enterprise that was owned and operated by the Adams Company prior to that date. B. Domination of and interference , with the Keystone Independent; other interference, restraint, and coercion - 1. Sequence of events. In April 1938, shortly after the respondent commenced its opera- tions--of the former southwest division- of the Adams Company, the officers of the Adams Independent called a meeting of the respond- -ent's--eniployeesmi-n'the--office of the respondent; At the meeting, the president of the Adams Independent, Shutler; proposed changing the name of the Adams Union Truck Terminal -Road Drivers, Pickup Drivers, Dock Workers, and Garagemen's Union, to Keystone Road Drivers, Pickup Drivers, Dock Workers and Garagemen's Union. The proposed change in name was accepted. .This was the only change.that was made at the- meeting. No new elections were con- ducted and the officers of the Adams Independent continued as the officers of the Keystone Independent. We find that the Adams In- dependent continued in existence as the Keystone Independent. At the same meeting, Shutler presented a contract already executed, signed by Shutler on behalf of the Keystone Independent and M. J. 1162 DECISIONS OF NATIONAL LABOR RELATIONS BOARD Sears on behalf of the respondent. The contract,'-dated March 28, 1938,. provided among other things that the respondent would employ only members of the Keystone Independent. It further provided that," should any member of the union, be by the union, suspended? or expelled, the employer agrees to discharge, such member from its employment within 30 days after receiving due notice of such sus- pension or expelling. from said -union." The terms of the contract between the respondent and the Keystone Independent were the same, as the terms of the contract between the Adams Company and the Adams Independent, the only difference being the change in the name of the union. From April 1938 to April 1939, the period during which Shutler remained president of the Keystone Independent, meetings of the Keystone Independent were held regularly'in the office of the respond- ent. The respondent was. never paid by the Keystone Independent for the use of its office as a meeting place. The record and the minutes of-the meetings indicate that the respondent was cognizant of the,fact that the Keystone Independent was holding meetings in its office.. On at least two occasions the meetings were called by the respondent,. the assembled, employees were addressed by M. J. Sears, general man- ager of the respondent, and after Sears had concluded and left .the meetings, the Keystone Independent called its meetings to order. More- over, matters which were discussed at the meetings called by the re- spondent were, at the request of Sears, discussed and voted upon at the- -meeting's called by' the Keystone Independent. The minutes of. the meetings held by the Keystone Independent reflect the fact that the principal matter, and most frequently the sole matter, considered at the meetings was the question of sick benefits, provision for the pay- ments of which was included in the articles of association and bylaws of the Keystone Independent. Summerlin, treasurer of the Keystone Independent until September 1938, collected dues during working hours and while on the respond- ent's property. In September 1938 John Matthews succeeded Sum- merlin as treasurer. In December 1938 buttons, bearing the insignia "Keystone Freight Lines Company Union" and representing monthly payment of dues, were issued. 'Three of the Board's witnesses testified that the buttons were kept.by E. A. Keffer, the respondent's dock fore= man, in a small. office on the dock. According to their testimony Kef- fer kept the buttons locked in. a wooden cupboard -and assumed supervision of their distribution. Keffer and Matthews denied that the buttons were in Keffer's possession and both maintained that the buttons had been placed by Matthews in the office so that they would be easily accessible to Keystone Independent members. According to the testimony of Matthews and Keffer, Matthews was frequently away KEYSTONE • :FREIGHT LINES .1163 from:Tulsa and therefore it was necessary to leave the buttons in Tulsa where they would be available to members. who' had paid their, dues: Witnesses for the Board' testified on-.the other hand that on.several occasions Keffer: issued buttons to them' and to other employees, and collected dues from the employees during working hours. Keffer denied that he had, ever collected dues; that he had ever. issued. buttons, or that he even- knew what they, were. On cross-examination, how- ever,, Keffer admitted that on.one or two occasions he did give buttons to the respondent's employees. He further admitted that.on . one or two.,occasions he was given money by the respondent's employees with instructions to turn it over to. Matthews,, but that. he. did not know the money was.to,be used for.. The.Trial.Examiner found fromwhat his-obseryation of the witnesses, from the. testimony of Board witnesses, and from the conflict. in Keffer's testimony, that Keffer; did issue but- :tons to members of Keystone Independent and did on at least one or two occasioins.collect, dues from,said,members....It is.diffl6ult,to, believe that buttons, which could only be issued on the assurance that. dues, had been paid, would be left easily accessible to the respondent's em- ployees or thatKeffer did not know the nature of these buttons when they.: plainly bore 'the insignia "Keystone. Freight Lines Company Union." ' We find that the buttons' were kept in 'Keffer's possession, that on various occasions Keffer issued buttons to the `respondent's employees, and that on occasion Keffer collected Keystone Independent m.ember'ship dues from the employees Suiumerlin _ testified that several times during. the summer of 1938, Sears-.told him,-`in" substance, that the Keystone Independent was a "good: organization," thatthe "sick benefits was nice to have;' and,that "as long as we had our organization. there would beano. other labor organizations that would -come in..and interfere with our.work." Sum= merlin ,further testified that in Ai..gust' 1938 Sears told him the following He said that he understood that some of the boys were not sat- isfied with Delmar (Shutler). as president and he thought Delmar was doing a fine job, that he was making a ,good president, and that he thought, it was understood they was going to vote Delmar out as president and if they. voted Delmar out as president. Charlie Dozier was vice -president; and he, would- automatically be put in as president. And if Charlie Dozier was put in as president he .figured he would bust the Union up. The following'Sunday an election was held and Shutler was,reelected, -president. -Sears denied the foregoing-statements.- .'The Trial E' aminer, who had-the opportunity to observe the witnesses, believed'the 1164 DECISIONS OF; NATIONAL LABOR RELATIONS. BOARD testimony of. Summerlin.: We: find that Sears made the statements at- tributed to him by Summerlin. Rolen testified that on or about November 1, 1938, the following took. place:. Mr. Sears caiine to me, h was ' stamping- s'ohie bills in the' little office on the dock and he came to me and said, "I heard last night there was. a 'couple, of the boys 'here in the office si'gning' a Team- stern' Union contract," and he said that this fellow ' who' told him didn't know exactly who it'was and I told him tha.t'I was one of them but that we wasn't signing piny contract, it was oinly a :copy of the Teamster Union ,contract to show what they were." doing, the wages, hours, and stuff like that. He wanted to know who the other one was 'and I .told him it was Carl_ Woods; that we' was just reading the contract and. talking it over, and he said if there was anything'Iwanted to'tell him about any union activities out there it would be confidential.,annd,wouldn't be made known to thel rest, of the boys. Sears denied making any of the above statements to Rolen at any time. The Trial Examiner, who observed the witnesses, ,believed the testimony of Rolen. We find that on or about November 1, 1938; Sears made the above. statements to Rolen. In.February 1939 Jess W. Caldwell,, business agent.for the team- sters, began organizing the respondent's employees. About March 1, 1939, Roy E. Dowd, Harvey Rolen,..and Lee Summerlin.joined the Teamsters. Summerlin testified that about March 10, 1939, in the reg.- ular course of his duty,.as .pick up dri' er for the respondent, he drove to the Christian Science Church, a, t.918 South Boulder Street for the purpose of pickiing up .freight; .While. Summerlin was there ; . Sears .drove up in his car, got out, went to Sumiller lin's truck, and.asked him to come over and sit in his car. Summerlin further testified that Sears questioned him concerning the activities of Caldwell, concerning his-opinion as-to whether: or not Harvey Rolen, would join the Team-. sters, and told'. him that 'he' (Sears), thought. Summerlin would be "better off" as a member of-the Keystone Independent than as a mem- ber of the Teamsters, rand that he would. "get along ,better with the Company.". Sears admitted that he had a conversation with Summer- lin at the Christian Science Church, but denied the conversation as alleged by Summerlin. Sears testified that all that was discussed dur- ing the conversation. was a collective' bargaining contract which he alleged was under negotiation at that time. . Summerlin, recalled by the Board' as a" rebuttalwitness; denied -that any negotiations .concern- ing the contract took place at that time although he admitted that there may have been some discussion concerning a wage increase. KEYSTONE FREIGHT LINES 1165 Other evidence -shows that negotiations concerning the contract re- ferred to by Sears did not take'place until a day or two prior to March 26, 1939.: The Trial Examiner, who had the opportunity to observe the witnesses, credited the,testiinony of Summerlin. We agree with the Trial Examiner and find that Sears, on about March 10, 1939, en- gaged Summerlin in the conversation as recounted by Summerlin. About April 1, 1939, the respondent entered into a new contract with the Keystone Independent. Concerning the negotiations for this contract, Dozier, at the time vice president of the Keystone Inde- pendent, testified that he had discussions with Sears a. day or' two prior to March 26, ,1939. It appears from his testimony that these were, the first discussions he had had with the management about the new contract. His recollections of the alleged negotiations were vague. He testified that he "believed" Elam and Williams, members of the central committee of the Keystone Independent, participated in 'the''discussions. Dozier further testified that he drew up the contract and put in a- clause providing for a 10-per cent wage increase to take effect 3 months after April 1, 1939, after "we had talked the thiiig over and Mr. Sears asked.me. to put that in the contract." Shutler testified that on the morning of March 26, 1939, he came in to Tulsa, after an absence of about a month. He walked into the office of Sears to greet. him and' found. Dozier there. They were discussing the new contract. Shutler's testimony concerning what occurred in Sears' office was as follows : A. A's near' as I 'can remember Mr. Dozier was talking to Sears when I came in. Q. Do you recall what that conversation was that you heard at that time? ' A. I don't believe I do. Q. Was there anything said in it that you heard with reference to wages ? A. I believe there was something said they would like to keep, the wages' as' they were for, about three months. Q. Alright, do you remember who said that? A: ' Mr. Sears. ' Q. Now, did you or Mr. '.Dozier. make any response to that statement by Sears? A. No, sir; not that I remember of.' • . On cross-examination Shutler stated that as far as he knew the Keystone Independent had not authorized Dozier to negotiate a contract., The articles of association and bylaws of: the Keystone Independent provided for a :.central committee . to conduct negotia- tions with the respondent.. Dozier was not :a member of the central 1166 DECISIONS OF NATIONAL LABOR RELATIONS BOARD committee.$• Despite:that fact;- ozier-apparentlyconducted.the,nego- tiations, if such: they were, alone. That day, March 26, 1939, the 'respondent, celebrating its * first anniversary; 'called a - meeting of all its employees and provided luncheon for them. After the luncheon the: Keystone Independent held its meeting; at which Dozier presided, in the office of the re- spondent.- -'While'''the meeting 'was in progress .. Sears^'•reinained on the dock for about an hour talking to various of the respondent's employees. At this meeting Dozier presented the contract 'providing. for a wage increase to take effect 3 months after April 1,-1939. He urged .the assembled employees to accept the postponement of the wage' in- crease as provided in the contract and told them that Sears had asked him to tell them that the respondent was unable to grant an earlier increase. 'Summerlin, who testified at.the hearing that "sev- eral of the .boys.. thought we .ought to have a. ten per, cent increase in wages and they asked me to take the floor and make a talk about it,". spoke-at the meeting in favor. of an immediate increase and was supported by Rolen, who also spoke.-in. its favor. Dowd spoke in favor of shorter. hours and also questioned. Matthews concerning the disposition, of Keystone Independent funds. He made the.state- ment that he was not, going to pay any more dues :to the Keystone Independent until he. knew where his money was going to. Sum- merlin, Rolen, and Dowd were the only employees who expressed opposition to the contract as proposed by Dozier. A vote was taken on the question of a wage increase and resulted in a majority vote in- favor of an immediate 10-per cent increase. On^ April 1, 1939, a contract providing for an immediate ,10-per cent increase in wages for all employees employed a year. or more by the respondent was entered into by the respondent and the Key- stone Independent. With the exception of the wage increase, the contract provided for the same terms and conditions provided for. in the preceding, contract. The.contract, to be-in effect. for, a: term, of 1 year, was to continue thereafter unless terminated by either party by 30 days' written notice prior to the expiration of its. term. On the morning following the meeting Sears talked to Summerlin. The.conversation which took place according to Summerlin was as follows : He (Sears) said, "Well, Lee, I understand you are still not satisfied with your wages and hours," and I said, "No, it wasn't 8 Although there . was ' some testiniony'at the hearing that the officers of the Keystone Independent functioned with the central committee the negotiating committee, the articles of association and, bylaws delegate the negotiating power exclusively to the central committee elected by members of the Keystone Independent . The central com- mittee at the time of the negotiations . for the April 1, 1939 , contract consisted of Elam, Williams, and Summerlin. KEYSTONE FREIGHT LINES 1167 exactly - that, but I thought we ought to have an increase in our wages for the hours,-we were working," and he said right at that time there would be no wage increases and he said that he thought this fellow Rolen was -having a big influence over me by my talking so much at the meeting. Sears admitted that he had a conversation with Summerlin on iMarch 27, 1939, but denied that any reference was made to the effect- that Rolen or Summerlin were dissatisfied with wages and hours. On cross-examination Sears' recollection of the nature and-circum- stances surrounding the conversation were vague: The Trial Exam- iner believed the testimony of Summerlin. We find that Sears made the statements as alleged by Summerlin. 'Later the same day Rolen was discharged by the respondent because of his criticism of the Keystone Independent and his mem- bership in the Teamsters; on the following day, March 28, 1939, Dowd.was discharged for the••same.reasons.9 2. Conclusions From the foregoing sequence of events it is clear that the Keystone Independent was sponsored and maintained by the respondent and that the Keystone Independent, as a. continuance of the Adams Inde- pendent, no more represented the free choice of the: employees than had the old organization.. The respondent's eager recognition of the Keystone Independent, and the haste with which the closed-shop con- tract was entered into with the Keystone Independent before it had held its first meeting, evidenced. the respondent's intention to con- tinue the domination and control 'exercised' by its predecessor over the Adams Independent. The Adams Company's sponsorship of and influence in the Adams Independent was carried forward by the respondent in its support of the:.'Keystone. Independent. The Keystone Independent. was per- mitted- to continue its use of the respondent's property to conduct its activities and to hold its meetings. In addition, the respondent ac- tively participated in the affairs of the Keystone Independent. Through its dock foreman it collected dues and issued dues buttons in its possession to members of the Keystone 'Independent. At the same time it expressed its. preference to various of its employees for' the Keystone Independent as their representative and sought to influence the members of this organization in their choice of officers. In con- trast to the encouragement and support that it accorded the Keystone Independent, the respondent expressed its hostility to the Teamsters by questioning its employees regarding; Caldwell's activities and 'the 'The discharges are discussed in section C, infra. 1168 DECISIONS OF NATIONAL LABOR RELATIONS BOARD affiliation of its employees with the Teamsters , and by informing Summerlin that he would "get along . better with the Company" if he remained affiliated with the Keystone Independent rather than with the Teamsters .., Employees are sensitive and'.responsive, to even the most subtle expression on the part of their employer, whose. good will is so necessary to their economic existencele The respondent's marked favoritism to the Keystone Independent , standing out in sharp relief against a background of hostility towards , the Teamsters, clearly evinced the respondent 's desire to its employees to maintain an "inside" labor organization for the purpose of frustrating any attempts by the Teamsters or any other bona ` fide labor organization to organize the respondent 's employees.l1 In addition to the marked preference for, and its participation in the affairs of, the Keystone Independent , the respondent 's , sponsor- ship and domination' of the Keystone Independent is further demon- strated by , the ;barren history of collective bargaining between that organization and the respondent . The efficacy of a labor organiza- tion in dealing and negotiating with, the, employer on behalf of the employees whom it represents and its efforts to protect and advance the interests ' of those employees is some indication of that organiza- tion's freedom from employer control12 That the Keystone Inde- pendent made no effort to protect and advance the interests of its members is clearly revealed by its failure , like that of its predecessor, to act on grievances of vital concern to, its members.13 Absorbing itself almost exclusively in its program of sick benefits , it failed even to demand any improvements for its members until April 1, .1939, more than 2 .years after its formation ; 4 at which- time the -respondent granted . a. 10-per cent wage increase to its employees . Moreover, even this wage increase , the postponement of -which had been desired by the respondent and which had been granted only after the dis- sident members of the Keystone Independent had objected to, the 10 National Labor Relations Board v. Griswold Manufacturing Company, 106 Fed. (2d) 713 (C. C. A. 3), enf'g Matter of The Griswold Manufacturing Company and Amalga- mated Association of Iron, Steel, and' Tin Workers of North America, Lodge No. 1197, 6 N. L. R. B. 298. . Cf. Matter of Texas Mining & Smelting Company and International Union of Mine, Mill & Smelter Workers, Local No. 412, 13 N. L. R. B. 1163. 12 National Labor Relations, Board v. Wallace Manufacturing Co., Inc., 95 F. (2d) 818 (C. C. A. 4), enforcing Matter of Wallace Manufacturing Company, Inc. and Local No. 2237, Ui,ited Textile Workers-of America.; 2 N. L. R. B. 1081; .Matter. of Bemis Brothers Bag Comany and Local No. 1838, United Textile Workers of America, 3 N. L. R. B. 267; Matter of S. Blechman & Sons, Inc. and United Wholesale Employees of New York, Local 65, Textile Workers Organizing Committee-Committee for Industrial Organization, 4 N. L. R. B. 15. 13 There was testimony in the record indicating that the respondent's employees were dissatisfied with the long hours imposed on them by the respondent and that the Key- stone Independent never discussed this with the respondent. 14 See Matter of Titan Metal Manufacturing Company and Federal Labor Union No. 19981, 5 N. L. R. B. 577, enf'd Titan Metal Manufacturing Company v. Titan. Employees Protective Association, 106 F. (2d) 254 (C. C. A. 3), cert. denied, 60 Sup. Ct. 260. KEYSTONE FREIGHT LINES 1169 postponement, cannot be considered a gain resulting from bona fide collective bargaining. It came, shortly after, the Teamsters had re- newed their activities and at a time when the respondent knew that its employees were receptive to the Teamsters.15 Furthermore when the. members of the Keystone Independent urged upon the respondent a greater gain than it had intended to grant, the respondent promptly, discharged two of the employees who had voiced their criticism of the proposed contract. We believe, under the circumstances, that the -respondent granted the wage increase not as a result of the assertion of bargaining power by the Keystone Independent but rather as a concession to counteract the possible effects of the Team- sters' activities . 16 The character of the negotiations that were conducted in con- nection with the April 1, 1939, contract also reveals the impotent and subservient nature of the Keystone Independent.Y7 It will be re- called that the first'attempts at "negotiation" for that contract took place a day or -two prior to the March 26, 1939, .meeting. of, the Key- stone Independent, where it was presented for the' approval of the respondent's employees. The negotiations were principally, if not solely, conducted by. Dozier, the then vice president of the Keystone Independent, despite the fact that the articles of association and by- laws of the Keystone Independent provided for a central committee, of which Dozier was not a member, to conduct such negotiations.18 Furthermore, it is apparent from the testimony of Shutler and Dozier that the "negotiations" were in reality instructions by Sears. Dozier stated that lie inserted the clause postponing the wage increase in the proposed contract at the request of Sears. He made no effort to oppose the postponement of the increase or to bargain in con- section therewith. Moreover, at the Keystone Independent meeting, he urged the employees attending the meeting to accept the post- ponement of the wage increase and informed them that Sears had told him to 'tell them that the respondent was not in a position to grant an immediate increase. It is significant .that the members of 15 As pointed ' out in the sequence of events above, on March 10 , 1.939, Sears questioned Summerlin concerning Caldwell's activities : Rolen , Dowd , and Summerlin had joined the Teamsters at that time , and Sears , apparently aware of that fact , questioned Summerlin about Rolen 's membership with the Teamsters. 1° Cf. National Labor Relations Board , v, American Potash d Chemical Corporation at al., 98 F. (2d ) 448 (C . C. A. 9), enforcing Hatter of American Potash cf Chemical Corpora- tion and Borax cG Potash Workers ' Union No . 20181, 3 N. L. R . B. 140, cert . denied 306 U. S. 643. . 17 Cf. Matter of Industrial Rayon Corporation and Textile Workers Organizing Co+n- mittee, 7 N. L. R. B. 877. is Dozier testified that he "believed " either one or two others participated in the nego- tiations of the April 1, 1939, contract, and oil further questioning he testified be "believed" Elam and Williams participated with him. Obviously, if either or both had participated, their participation 'would have been fixed in his memory more definitely than a mere belief. Moreover neither Elam nor Williams testified in corroboration of that belief. There is some evidence that Dozier had not been authorized to conduct any negotiations. 1170 DECISIONS OF NATIONAL LABOR RELATIONS BOARD the Keystone Independent repudiated Dozier's consent to the', post- ponement of the wage increase. Finally the prompt discharges , discussed in Section C below, of two of the only three employees who expressed their opposition at the March 26, 1939, • meeting to the contract proposed by Dozier is further evidence , of the. domination and influence exerted , upon the Keystone Independent by the respondent ., As pointed out by the court in National Labor Relations Board v. American Potash. and Chemical Corporation, 10 "a discriminatory discharge may just as well be directed toward domination of a labor organization as toward a dissolution or a driving out of a labor organization." We find that the respondent , by the ' above-described conduct, has dominated and interfered with- the administration of the Keystone Independent and has contributed support thereto and that the re- spondent has- thereby interfered with, restrained , and coerced its employees in the exercise of the rights guaranteed in Section 7 of the Act.20 We further find that the . contract .- of -April 1, 1939; entered ' into by the respondent and the Keystone Independent, is invalid because it was made with a labor organization the administra- tion of which had been dominated , interfered with, and supported by the respondent .21 We find that the respondent 's conduct described above tends to lead to labor disputes burdening and obstructing commerce and the free flow of commerce. C. The discharges Roy E. Dowd was employed by the respondent on November 14, 1938, as a dockman, loading and unloading freight trucks, between the hours of 8:30 a. in. and 7 p. in. to 10 p. in., as the work required. He was paid by the respondent $97.50 per month during the entire period of his employment. Two or three weeks. after he was hired he. was transferred to the night, shift. He continued to work on the night.. shift between 6 p. in. and 7 a. in. daily, 13 .days -out .of each 2-week period, until the day of his discharge, March 28, 1939. His duties consisted of helping to load trucks for about,1 or 2 hours, after 19 National Labor Relations Board v . American Potash and Chemical Corporation , et. al., 98 F. (2d ) 488, 495 (C. C. A. 9), enforcing Matter of American Potash & Chemical Corporation and Borax & Potash Workers ' Union No . 20181, 3 N. L. R . B. 140, cert . denied 306. U. S. 643. 20 There is some testimony that Sears attempted to persuade Summerlin to return to work after he had refused to pass a picket line . set up in front of the respondent's plant on April 13, 1939. However , the record is insufficient to support a finding that the respondent thereby engaged in- an unfair labor practice within the meaning of Section 8 (1) of the Act. ' . 21 Matter of Electric Auto -Lite Company, Bay Manufacturing . Division and Interna- tional Union , United Automobile Workers of America, Local No . 526, 7 N . L. R. B. 1179, Matter of McKeig-Hatch, Inc. and ' Amalgamated Association of Iron , Steel, and Tin TVorkers of North America, Local No. 1199, 10 N. L. R. B. 33. . KEYSTONE FREIGHT. -LINES 1171 which he was required to load a small truck, known as the. Stillwater truck, and finally to sweep and watch the respondent's. property.... He was referred to as the night watchman. The record clearly shows that the work required. of the night watchman was considerably less strenuous .than the -work required of the daytime dock workers. Dowd;joined the KKeystone Independent in December 1938; About March 2, 1939,. lie joined the Teamsters. On March 26, 1939, at. the meeting 'of. the Keystone Independent, Dowd participated in opposing the contract proposed by Dozier and also. questioned the treasurer concerning disposition of dues collected by the Keystone Independent. On the morning of March ' 28, 1939, Dowd was discharged by George Spurgin, vice president of the respondent. Spurgin informed Dowd that he was discharged,' because. his duties as night watchman were being "eliminated." He gave Dowd a letter of recommendation stating Dowd was, discharged because the respondent eliminated the . .duties of night watchman. At the.hearing Spurgin gave. several reasons for Dowd's discharge. On direct examination by the respondent's counsel, Spurgin stated the following. as the reason for Dowd's discharge : At that time, Mr. Dowd had asked for a helper for a job on which we had never had a helper before and apparently he was having- a hard time holding the job, and at that time we extended our Arkansas. operations in such a manner that the truck went through to Oklahoma City and then back during the night which would' throw another' schedule in there` on the night shift; and. obviously if he couldn't load one truck, just a small truck, he couldn't load two, one of which was a road truck and which would hold three times. the amount of tonnage which he had been 'accustomed to loading.22 In answer to. -a statement made by, Shryock in the Tulsa World con- cerning the respondent's reason for discharging Dowd and Rolen, Sears. submitted the following. statement which was printed in the), Tulsa. World on April 23, 1939: As for the two men discharged for union activities referred to by Gordon Shryock, state representative of the union, they were laid off about three weeks ago, not discharged, because of tem- porary physical handicaps.23 .12 On cross-examination it appeared that the truck scheduled for the Arkansas run carried 15,000 pounds of freight whereas the Stillwater truck carried between 10,000 and 12 ,000 pounds. 23 Sears admitted that he was accurately quoted in the newspaper item. He further admitted -that he knew the 'distinction between a lay-off and a discharge but did not explain why he had said that Dowd and Rolen had been laid off. 1172 DECISIONS OF NATIONAL ' LABOR RELATIONS BOARD On April 24, 1939, Spurgin submitted . to the Oklahoma State De- partment-of Labor , Division of Unemployment Compensation, a form stating that Dowd was "separated from his employment" :because he was "physically unfit and couldn 't pass an examination." In addition , Spurgin testified on redirect examination that Dowd had been discharged because he was unable to_perform his work and because the respondent was eliminating the functions of night watch- man. Thus the respondent asserts variously that Dowd had been laid off because of a temporary physical handicap , that he 'had been dis- charged because he was "physically unfit and couldn 't pass an exami- nation," because of the elimination of his job, and finally because he would be unable to manage the increase in work occasioned by the extension ' of the Arkansas operations. None .of these reasons is sup- ported by the record. Ewel Renfro 24 was employed by the respondent on March 27, 1939, the day before Dowd's discharge, as a combination day and night watchman. Renfro worked as a pick-up driven from 3 p. in. to 6 p. m. From 7 p. m. to midnight, with' the exception of watching the respondent 's property at night, he performed substantially the, same work that Dowd had performed , namely, loading trucks generally for an hour or two. and thereafter loading the Stillwater truck. Until August 7, 1939 , the respondent's offices and docks were closed . at mid- night with no night watchmen attending. On August 7, 1937, Elmer Arnett was employed by the respondent in the same capacity as Dowd had been employed. From that. date until the date of the hearing, Arnett performed the same duties that Dowd had performed, including night watching. On May 30, 1939, and until 10 days prior to August 7, 1939, Schultz was employed by the respondent in substantially the same capacity and with substan- tially the same duties as Renfro . We are of the opinion that Dowd's duties as night watchman were not eliminated at the time of his dis- charge but were temporarily suspended to afford the respondent a pretext upon which to explain Dowd's discharge and were resumed several months thereafter when the, respondent . believed the suspen- sion had served its purpose . After the date of his discharge there were at least two of the respondent 's employees , subsequently hired, who were engaged in performing duties which had been performed by Dowd . Obviously if the respondent 's sole motive in discharging Dowd were the elimination of the . night watchman's functions, Dowd would have been given sufficient work to keep him in the respondent's. employ. Moreover , when the respondent resumed its night .watcliing it failed to recall Dowd but employed Arnett instead as a night watchman. 24 Also referred to in the record as Emil Renfro. KEYSTONE FREIGHT LINES 1173 The respondent not only asserts that the night watchman 's duties were eliminated but that Dowd was unable to assume the additional burden of work, created by the extension of the Arkansas operations, without a helper. The record shows that the extension of the Arkansas run, which would have necessitated the loading of an additional truck. during the night, was not put into operation until 1 month after Dowd. had been discharged. Furthermore, it is obvious that the contemplated additional truck to load required a helper. Be- tween May 30. 1939, a month after the Arkansas truck was put on the night schedule, and a week or 10 days prior to August 7, 1939, both Renfro and Schultz were required- to load the Stillwater and the Arkansas trucks,.and on August 7, 1939, and thereafter, both Renfro and Arnett, the night watchman, continued to load the Stillwater and Arkansas trucks. Although Spurgin testified that Dowd's work had never required a helper, it is apparent from the record that occasion- ally it was essential to have a helper to assist in the loading of heavy pieces of freight or to help load the trucks that made the run to Stillwater, when there were two such trucks to load instead of the customary one. It was not unusual to request a helper under either of these circumstances. Upon these facts we do not believe that Dowd's discharge is to be accounted for by the increase in work con- templated by the extension of Arkansas operations. Concerning Dowd's alleged physical unfitness and his inability to pass an examination, the record reveals that Dowd had been em- ployed as it bus driver by a motor-coach company owned by J. Will Spurgin, father of George Spurgin and president of the respondent; that approximately 3 years prior to Dowd's employment by the re- spondent Dowd fainted while driving a bus; and that Dowd was unemployed thereafter until the date of his employment by the re- spondent. J. Will Spurgin testified that he had been informed by the doctor, who had examined Dowd at that time, that Dowd would never be able to drive a vehicle again. George Spurgin, who hired Dowd at his father's request, testified that his father told him about Dowd's physical condition approxi- mately 1 week after Dowd's employment. Spurgin further testified that it was on the basis of this information that he issued the'state- ment that Dowd was physically unfit and could not pass an examina- tion. Dowd was at no time required by the respondent to submit to a physical examination . We are satisfied from all the evidence that Dowd was not discharged for an. alleged physical unfitness admit- tedly known by the respondent 4 months prior to the discharge. We do not believe, under the circumstances, that the respondent would have waited 51/2 months before releasing Dowd. 283035=42-vol. 24--75 1174 DECISIONS OF NATIONAL' LABOR RELATIONS BOARD In contrast to its alleged concern over Dowd's physical. unfitness and capacity to work, we note that Dowd's predecessor was a 65-year old man who had retired from his employment with the respondent to secure an old-age pension, and Dowd's successor, Elmer Arnett, an old employee of the respondent, had been ill and unable to work for a period of a year immediately preceding his employment by the re- spondent. The respondent with full knowledge of Arnett's previous incapacity hired him without ascertaining or even inquiring as to either the cause for his incapacity or his physical condition at the time of his employment. On cross-examination concerning his knowl- .edge or Arnett's physical condition or the nature of his illness, Spurgin showed a remarkable indifference to those facts, finally explaining his indifference with the implication- that it was not neces= sary to make inquiries concerning the health of an employee who was employed on the night man's job.25 Although the respondent's witnesses testified that Dowd's ina- bility to perform his work persisted over the entire period of his employment, he was not disciplined or warned that his work Was un-. satisfactory. Moreover, the respondent's witnesses were unable to particularize in what manner Dowd's work was unsatisfactory During extensive cross-examination George Spurgin was unable to state what factors impelled him to discharge Dowd. He made many 23Spurgin , who hired Arnett, testified concerning his interest in Arnett' s physical condition as follows : Q. Was he injured in the course of his employment, or what was wrong with him [referring to Arnett] ? A. He wasn't injured . Oh, I didn't pay any attention to that. I don't know what was wrong with him. Q. What kept him off from work for a year? A. Shoot, I couldn't answer that. Q. You don't know? A. No, sir ; I don't know: Q. And you took a man who had been off from work for a year with some disability you didn't know about and put him on that job on August 7tb ? A. On the night man's job ; yes, sir. 26 The testimony of J. Will Spurgin, concerning Dowd's alleged unsatisfactory work, is typical. Spurgin testified as follows : A. . . . Roy fell off quite a bit, and was looking bad, and I,told him he looked bad and asked him if he thought he was going to be able to do the work and he said he thought he would. Q. Was there ever any occasion when lie didn't get the truck loaded, or sweep up or do the job? A. Well, when I saw him he was always helping to load the others, and then he loaded his own truck after that, I don't know nothing about that. Q. And, your statement lie was not able to do the work was based on the fact you would see him out there while. others were loading trucks there in the evening? A. That is right. Q. And, on several occasions you would ask him if he'thought he was able to do the work, and lie told you that he was? A. That is right. Q. That is what your statement he wasn't able to do the work is based on? A. Yes, sir. KEYSTONE' FREIGHT LINES 1175 evasive and contradictory statements concerning the immediate cause for Dowd's-diseharge.2 From an examination of the foregoing facts and on the basis of the entire record, we are unable to give credence to the reasons offered by the respondent for Dowd's discharge. Although Spurgin testified that he was not aware-of what occurred at the March 26, 1939, meeting or that Dowd was a member of the Teamsters, nevertheless, in view of the conversations Sears had with Summerlin on March 10, 1939, at the Christian Science Church and in his office on March 27; 1939, we find that Spurgin was aware both of Dowd's membership in the Teamsters and of his participation in the March 26, -1939, meeting, which resulted in the successful opposi- tion to the respondent's desire to postpone the wage increase. We have pointed out that this opposition at the meeting was responsible for the first gains made for the members of the Keystone Independent since the inception of that organization. In view of the circumstances described above, we agree with the finding of the,Trial Examiner and we conclude that Dowd was dis- charged because he joined and assisted the Teamsters. We find that the respondent, by discharging Dowd, has discriminated in regard to hire and tenure of employment, thereby discouraging membership in a labor organization and interfering with, restraining, and coercing its employees in the exercise of the rights guaranteed in Section 7 of the Act. We find that'the respondent's conduct described above tends to lead to labor disputes burdening and obstructing commerce and the free flow of commerce. Harvey Rolen was employed by the respondent as a pick-up driver in the city of Tulsa, in June 1938, at a monthly rate of $97.50. On zr George Spurgin testified as follows : Q. . . . What was the factor that came to your attention preceding March 28th, when you finally decided to fire him? A. Well, as previously testified , on three or four occasions Roy said he couldn't do it, and he needed a helper. Q. What was the specific factor that came to your mind before that with reference to March 28th when you finally decided to fire him? A. You mean actually when I made up my mind to do it? Q. Yes. A. My father told me to. Q. 'And , where were you at that time , Mr. Spurgin? A. Well, I couldn't state that. Q. Now, was it your father ' s idea , or did you suggest it to your father? A: I suggested it in talking it over with : him; naturally , he is the president, and it was his okeh that caused me to let him go. - - Q. You talked with your father that week-end about it? A. I believe the 23rd or 24th or 25th, somewhere in there. Q. Now , when was it that you made up your mind that Roy ought to go? A. I made up my mind it long time . before I actually got around to doing it. Q. Now, what was the factor that made you actually get around to doing it? A. well, I couldn ' t say just what actually was the factor which caused me to make up my mind he should be left out. - 1176 DECISIONS OF NATIONAL LABOR RELATIONS BOARD June 15, 1938, Rolen joined the Keystone Independent. In November of 1938 Sears interrogated Rolen concerning his activities with the Teamsters and requested Rolen 'to inform him of its future activities.28 'About March 1, 1939, Rolen joined the Teamsters. About a week later Sears questioned Summerlin, while engaged in the conversation with him in front of the Christian Science Church, about Rolen's affiliation with the Teamsters. At the Keystone Independent meeting on March 26, 1939, Rolen supported Summerlin in his opposition to the. postponement of the wage increase. We have found that Rolen, Summerlin, and Dowd were the only members who openly opposed the contract proposed by Dozier.29 On March 27, 1939, Keffer, instructed by Sears, discharged Rolen. That day Sears told Summerlin that he thought Rolen had "too great an influence" on Summerlin.3o The respondent asserted at the hearing as an explanation for Rolen's discharge that its insurance broker advised it to discharge Rolen because his -employment with the respondent constituted an undue risk. Rolen had been employed by the Tindall Motor Company in October 1933. About December- 30, 1937, while so employed, he was injured. Subsequent to the injury Rolen continued in the employ of the Tindall Motor Company until June 4, 1938 and on September 26, 1938, he filed suit against that company alleging total and perma- nent disability claiming damages in the sum of $56,147.10. The local newspaper carried an article describing the action taken by Rolen against his former employer.31 About 1 month after the law suit was reported in the newspapers Sears called Rolen into his office and questioned him concerning it.. At that time, 5 months -before his discharge, Rolen informed Sears that he was principally interested in reinbursement for the medical expenses that he had incurred in connection, with his injury. - Both Keffer and Sears considered Rolen a capable worker. Sears char- acterized Rolen's work as "swell," and both Keffer ahd Sears knew that Rolen frequently in the course of his duties lifted heavy weights. Sears testified at the hearing that 2 or 3 weeks prior to March 27, 1939, he heard rumors that for the first time indicated to him the nature and extent of the injuries that Rolen alleged he had sustained 2s The conversation with Sears is more particularly described in Section III B, supra. 20 None of the employees who opposed Dozier 's proposals are now employed by the respondent . Rolen and Dowd were discharged within a day or two subsequent to the expression of their opposition . Summerlin went on strike against the respondent on April 13, 1939. The record does not disclose what connection the strike had with the activities discussed herein, but it appears that Summerlin has never returned to the respondent ' s employ. - so The conversation is more particularly described in Section III B , supra. 81 The suit was settled by Rolen on September 25, 1939, for $275. KEYSTONE FREIGHT LINES 1177 and the amount Rolen was claiming for damages. On cross-exami- nation Sears stated that he called the Tindall Motor Company for .verification of the amount involved in -the suit, but that he -did not discuss with this company the nature of the alleged injuries.'' Sears further testified that immediately upon verifying the amount in- volved in the suit he called Claiborne W. Davis, the insurance broker for the firm that carried the respondent's insurance, informed him of the facts involved in Rolen's personal-injury claim, and asked for his advice. - Sears stated that Davis informed him that "we must at all times keep our men physically fit." Davis corroborated Sears' testimony concerning the telephone call. Sears made no effort to ascertain Rolen's true condition. He did not have Rolen examined by a doctor, nor did he discuss the matter with Rolen subsequent to his conversation with Davis and prior to Rolen's discharge, despite the fact that he knew Rolen was a capable worker and was accustomed to lifting heavy weights.32 Whereas Sears testified at the hearing that he learned the extent of Rolen's claims for the first time 2 or 3' weeks prior to March 27, 1939, from rumors, he stated in a deposition taken on April 1, 1939, while acting 'as a witness on Rolen's behalf in the action 'against the Tindall Motor Company, that he discharged Rolen "due to the notice he gave me. himself of his injury" 2 or 3 months before April 1, 1939. He further testified in the deposition that he called Rolen in to dis- cuss his personal-injury suit at that time, "due to the fact that I know the rules of the insurance company to a certain extent, even though I hadn't been given specific instructions." The record also indicates that Sears had been aware' of the insurance carrier's rule concerning employment of disabled persons prior to March -1939.33 Thus, from the record and the foregoing conflict in Sears' testimony, it is apparent that Sears, with knowledge of the insurance carrier's rules concerning employment of disabled persons, was fully apprised of the facts involved in the afore-mentioned personal-injury action at least 2 or 3 months prior to the date of Rolen's discharge. The Trial Examiner, while stating in his Intermediate Report that "the evidence is conflicting on some points regarding the reason for Rolen's discharge and his physical condition while employed by the 82 Rolen was required to submit to a physical examination in connection with subse- quent employment and was found to'be in good condition. as In attempting to reconcile his testimony In the afore-mentioned deposition that "at the same'time (the time of Rolen's discharge) there were other people discharged on account of physical disability," with his testimony given at the hearing "that there was no other persons discharged along about that time on account of physical disability," Sears testified at the bearing that "from time to time there had maybe been people dis- charged from the company due to the fact that it was . the policy of the insurance company." 1178 DECISIONS OF NATIONAL LABOR RELATIONS BOARD respondent" concluded that "the respondent discharged Rolen because of the advice of the insurance company carrying, its compensation insurance and not for the reason alleged in the complaint." In so concluding, the Trial Examiner overlooked evidence appearing in the record which indicated that the respondent failed to take any steps whatsoever in connection with Rolen until the Teamsters. had com- menced its .activities and Rolen had joined the Teamsters, despite the fact that, as we have pointed out, the respondent was cognizant of the facts involved in Rolen's lawsuit for at least 2 or 3 months prior to the time it. first called Davis. The Trial Examiner explained the respondent's sudden interest in Rolen's physical condition by the fact that the respondent was making a change in its compensation-insur, ante carrier at that time. However, the record indicates that no such change was then made or contemplated. Furthermore, it was not until several weeks after it had solicited the advice from Davis that it acted upon it. Coincidentally, it acted upon that advice immediately after the meeting in which Rolen successfully urged the respondent's employees to demand an immediate wage increase. No satisfactory explanation appears in the record why the respondent, who con- sidered Rolen's employment with it a "hazard," 34 delayed discharging him several weeks after it received the advice from Davis. In view of the foregoing and the entire record, we are convinced that the respondent terminated Rolen's employment solely because of his membership and activity on behalf of the Teamsters. We find that the respondent by discharging Harvey Rolen, discriminated in regard to his hire and tenure of employment, thereby discouraging member- ship in the Teamsters and interfering with, restraining, and coercing its employees in the exercise of the rights guaranteed in Section 7 of the Act. We further find that the respondent's conduct described above tends to lead to labor disputes burdening and obstructing commerce and the free flow of commerce. At the time of his discharge Rolen was receiving $97.50 per month. Subsequent to his discharge Rolen was employed between March 27 and July 11, 1939, by Brashear Freight Lines, Inc., Viking Freight Company, and English Freight Company, from whom he earned, respectively, $21.69, $25.48, and $3.30. After his employment with the afore-mentioned companies, Rolen was employed on June 11, 1939, by H. & N. T. Motor Freight Company. - At the time of the hearing he was earning $29.70 weekly- u Sears stated at the hearing that Rolen 's employment with the , respondent constituted a hazard. KEYSTONE FREIGHT LINES 1179 IV. THE REMEDY We have found that the respondent has engaged in unfair labor practices by interfering with, restraining, and coercing its employees in the exercise of rights guaranteed in Section 7 of the Act, by domi- nating and interfering with the administration of the Keystone. In- dependent, and by discriminating in regard to hire and tenure of employment, thereby discouraging membership in a labor organiza- tion. Accordingly, we shall order the respondent to cease and desist, therefrom and to take.certain affirmative action designed to effectuate the policies of the Act and restore, as nearly as possible, the situation that existed prior to the commission of the unfair labor practices. We have found that the respondent dominated and interfered with the administration of the Keystone Independent in an attempt to cir- cumvent the provisions of the Act and to deny to its employees the rights as guaranteed by Section 7 of the Act. We shall therefore order the respondent to withdraw all recognition from the Keystone Independent as -a labor organization representing its employees for the purposes of dealing with the respondent, and to cease giving effect .to the agreement with the Keystone Independent as bargaining agent of its employees, or to any modifications or extensions thereof or to any successor agreement.35 We have found that the respondent discharged Roy E. Dowd and Harvey Rolen and thereafter refused to reinstate said employees for the reason that they joined and assisted a labor organization and en- gaged in concerted activities for the purpose of collective bargaining and other mutual aid and protection. We shall therefore order the respondent to offer Roy E. Dowd and Harvey Rolen immediate rein- statement to their former or substantially. equivalent positions.36 We shall further order the respondent to make whole Roy E. Dowd for any loss of pay he has suffered by reason of his discharge by payment to him of a sum equal to that amount which he would normally have earned as wages from the date of his discharge to the date of his offer a5 Matter of Titan Metal Manufacturing Company and Federal Labor Union No. 19981, 5 N. L.. R . B. 577 , enf'd Titan Metal Manufacturing Company v. Titan Employees Pro- tective Association , 106 F. (2d) 254 (C. C. A. 3), cert. denied , 60 Sup. Cf. 260 ; Matter of Moore-Lowry Flour Mills Company and Flour Mill and' Cereal Workers Union No. 20601; 21 N. L. R. B. 1040. - se We do not believe that there is 'sufficient evidence to warrant a finding that Rolen has secured substantially equivalent employment elsewhere. Even though he had secured such employment , however, we do not believe that he thereby became remediless for the purposes of future employment by the respondent . See Matter of Eagle-Picher Mining &^ Smelting Company, a corporation , and Eagle -Picher Lead Company , a, corporation, and International Union of Mine , Mill & Smelter Workers , Locals Nos. 15, 17, 107, 108 , and 111, 16 N. L . R. B. 727. 1180 DECISIONS OF NATIONAL LABOR RELATIONS BOARD of reinstatement, less his net earnings 37 during said period. Since the Trial Examiner found that the respondent had discriminatorily dis- charged Harvey. Rolen we shall order the respondent to make him whole for any loss of pay he may have suffered by reason of his dis- charge by payment to him of a sum equal to the amount he would normally have earned as wages from the date of his discharge to the date of, the Intermediate Report and from the date of our Order to the date of the offer of reinstatement, less his net earnings during said period.38 Upon the above findings of fact.and upon the entire record in the case, the Board makes the following ; CONCLUSIONS OF LAW 1. International Brotherhood of Teamsters, Chauffeurs, Stablemen, and Helpers, Local 523, affiliated with the American Federation of Labor, and Keystone Road Drivers, Pickup Drivers, Dock Workers, and Garagemen's Union are labor organizations, within the meaning of Section 2 (5) of the Act. 2. By dominating and interfering with the administration of Key stone Road Drivers, Pickup Drivers, Dock Workers, and Garage- men's Union and by contributing support thereto, the respondent has engaged in and is engaging in unfair labor practices, within the meaning of Section 8 (2) of the Act. 3. By discriminating in regard to the hire and tenure of employ- ment of Roy E. Dowd and Harvey Rolen, and thereby discouraging membership in International Brotherhood of Teamsters, Chauffeurs, Stablemen, and Helpers, Local 523, the respondent has engaged in and is engaging in unfair labor practices, within the meaning of Sec- tion 8 (3) of the Act. 4. By interfering with, restraining, and coercing its employees in the exercise of the rights guaranteed by Section 7 of the Act, the re- spondent has engaged in and is engaging in unfair labor practices, within the meaning of Section 8 (1) of the Act. 37 By "net earnings" is meant earnir'gs less expenses , such as for transportation, room, and board , incurred by an employee in connection with obtaining work and working elsewhere than for the respondent , which would not have been incurred but for his unlawful discharge and , the consequent necessity of his seeking employment elsewhere. See Matter of Crossett Lumber Company and United Brotherhood of Carpenters and Joiners of America , Lumber and Sawmill Workers Union , Local 2590 , 8 N. L. R . B. 440 . Monies received for work perform"d upon Federal , State, county. municipal , or other work -relief projects are not considered as earnings , but as provided below in the Order shall be deducted from the sum due to the emnloyPe . and the amount thereof shall be paid over to the appropriate fiscal agency of the Federal , State, county, municipal , or other gov- ernment or governments which supplied the funds for said work -relief projects. 38 Matter of E. R . Haffelfn,ger Company/, Inc. and United Wall Paper Crafts of North America, Local No. 6, 1 N. L . R. B. 760 ; Matter of Firestone Tire and Rubber Company of California and United Rubber Workers of America , Local 100, 22 N. L. R .. B. 580. KEYSTONE FREIGHT LINES 1181 5., The aforesaid unfair labor practices are unfair labor practices affecting commerce within the, meaning of Section 2 (6) and (7) of, the Act. ORDER Upon the basis of the foregoing findings of fact and conclusions of law, and pursuant to Section 10 (c) of the National Labor Rela- tions Act, the National Labor Relations Board hereby orders that the respondent, Keystone Freight Lines, and its officers, agents, succes- sors, and assigns shall: 1. Cease and desist from : (a) Discouraging membership in International Brotherhood of Teamsters, Chauffeurs, Stablemen, and Helpers, Local 523, affiliated with the American Federation of Labor, or any other labor organi- zation of its employees, by discriminating in regard to hire and ten- ure of employment or any terms or conditions of employment; (b) Dominating or interfering with the administration of Key- stone Road Drivers, Pickup Drivers, Dock Workers, and Garage- men's Union or With the formation or administration of any other labor organization of its employees and from contributing support to Keystone Road Drivers, Pickup Drivers, Dock Workers, and Ga- ragemen's Union or any other labor organization of its employees; (c) Recognizing Keystone Road Drivers, Pickup Drivers, Dock Workers, and Garagemen's Union as the representative of any of its employees for the purpose of dealing with the respondent concern- ing grievances, labor disputes, wages, rates of pay, hours of employ= ment, or other conditions of work; (d) Giving effect to any agreement which it may have with said Keystone Road Drivers, Pickup Drivers, Dock Workers, and Garage- men's Union ; (e) In any other manner interfering with, restraining, or coercing its employees, in the exercise of their rights to self-organization, to form, join, or assist labor organizations, to bargain collectively through representatives of their own choosing, and to engage in con- certed activities for the purposes of collective bargaining and other mutual aid'or protection, as guaranteed in Section 7 of the Act. 2. Take the following affirmative action which the Board finds will effectuate the policies of the Act : (a) Withdraw all recognition from Keystone Road Drivers, 'Pickup Drivers, Dock Workers, and Garagemen's Union as the repre-. sentative of its employees for the purpose of dealing with the respond- ent concerning grievances, labor disputes, wages, rates of pay, hours of employment, or other conditions of work, and completely dis- 1182 DECISIONS OF NATIONAL LABOR RELATIONS BOARD, establish said Keystone Road Drivers, Pickup Drivers, Dock Workers, and Garagemen's Union as such representative; (b) Offer Roy E. Dowd and Harvey Rolen immediate and full re instatement to their former or substantially equivalent positions, without prejudice to, their seniority and other rights, and privileges; (c) Make whole Roy E. Dowd and Harvey Rolen for any loss 'of pay they have suffered by reason of the respondent's discrimination,. by payment to Roy E. Dowd of a sum of money equal to that which he would normally have earned as wages from March 28, 1939, to the . date of offer of reinstatement, and by payment to Harvey Rolen of a sum of money equal -to that which he normally would have earned as wages from March 27, 1939, to February 10, 1940, and from the- date of the Order herein to the date of offer of reinstatement, less, their respective net earnings during:said periods, provided that the. respondent shall deduct from the back pay due each employee a, sum equal to that received by such employee for work performed on Federal, State, county, municipal, or other work-relief projects- dur ing the period for which back pay is due him under this Order, and pay any such amount deducted to the appropriate fiscal agency, of the Federal, State, county, municipal, or other government or. governments financing such, work-relief projects; (d) Post immediately in conspicuous places at its offices and ter-, minal, and maintain for a period of at least sixty (60) consecutive. days from the date of posting, notices to-its employees stating: (1), that the respondent will not engage in the conduct from which it is. ordered to cease and desist' in paragraphs 1 (a), (b), (c), (d), and (c) of this Order; (2) that the respondent will take the affirmative action set forth in paragraphs 2 (a), (b), and. (c) of this Order,;, and (3) that' the respondent's, employees are free to become or to remain members of International Brotherhood of Teamsters, Chauf- feurs, Stablemen, and Helpers, Local 523, and the respondent will. not discriminate against any, employee because of membership or activity in that organization; (e) Notify the Regional Director for the Sixteenth Region in writing -within ten (10) days • from the date of this Order what steps the respondent has taken to comply herewith. AND IT IS FURTHER ORDERED that the complaint, as. amended, be, and it hereby is, dismissed, in so far as it alleges that the respondent engaged in unfair labor practices, within the meaning of. Section -8 (1) of the Act,. by advising Lee Summerlin, a striking employee of the respondent, to abandon the strike and to cease affiliation with the International Brotherhood of Teamsters, Chauffeurs, Stablemen, and Helpers, Local 523. , KEYSTONE FREIGHT LINES 1183 MR. WILLIAM M. LEIsnIso , dissenting in part: I dissent from that part of the Order which requires the respondent to offer reinstatement to Harvey Rolen. Subsequent to his dis- charge Rolen. obtained employment in Tulsa similar to that which he had performed for the respondent and at a higher wage. At the hearing he did not indicate that he desired reinstatement to•his for- mer position. Under the circumstances I would limit the remedy with respect to Rolen to an award of back pay from the date of his unlawful discharge to the date on which he obtained such other employment. Copy with citationCopy as parenthetical citation