L. C. Cassidy & Son, Inc.Download PDFNational Labor Relations Board - Board DecisionsOct 8, 1970185 N.L.R.B. 920 (N.L.R.B. 1970) Copy Citation 920 DECISIONS OF NATIONAL LABOR RELATIONS BOARD L. C. Cassidy & Son, Inc. and Miami Valley Carpen- ters District Council , the United Brotherhood of Carpenters and Joiners of America , AFL-CIO. Case 9-CA-5419 October 8, 1970 DECISION AND ORDER BY CHAIRMAN MILLER AND MEMBERS FANNING AND BROWN On April 30, 1970, Trial Examiner Sidney J. Barban issued his Decision in the above-entitled proceeding, finding that Respondent had engaged in and was engaging in certain unfair labor practices and recom- mending that it cease and desist therefrom and take certain affirmative action, as set forth in the attached Trial Examiner's Decision. The Trial Examiner further found that Respondent had not engaged in certain other unfair labor practices alleged in the complaint, and recommended that such allegations be dismissed. Thereafter, the Respondent filed exceptions to the Decision and a supporting brief. The Respondent requested oral argument.' Pursuant to the provisions of Section 3(b) of the National Labor Relations Act, as amended, the National Labor Relations Board has delegated its powers in connection with this case to a three-member panel. The Board has reviewed the rulings of the Trial Examiner made at the hearing and finds that no prejudicial error was committed. The rulings are here- by affirmed. The Board has considered the Trial Examiner's Decision, the exceptions and brief, and the entire record in this case, and hereby adopts the findings, conclusions, and recommendations of the Trial Examiner only to the extent consistent here- with. As more fully set forth by the Trial Examiner, the Union was certified on April 19, 1968, and from June 26, 1968, through May 7, 1969, the parties met and negotiated on 19 separate occasions. The parties executed a 2-year agreement on May 7, 1969, shortly before an unfair labor practice hearing upon a complaint against Respondent was scheduled to commence. At issue herein is the Respondent's sick pay policy which was not included in the contract and was discontinued by the Respondent without notification to the employees after the contract was signed on I The Respondent 's request for oral argument is hereby denied as, in our opinion , the record , including the Respondent 's exceptions and brief, adequately presents the issues and positions of the parties May 7, 1969. Prior to the execution of the contract, it was the Respondent's policy to pay an employee employed more than 2 years, upon his presentation of a doctor's certificate, up to 7 days' sick pay a year. The complaint alleges that the Respondent, since the early part of June 1969, has failed and refused to pay employees sick leave pay, as was the custom and practice prior to May 7, 1969. Such conduct, the complaint alleges, constitutes a violation by the Respondent of Section 8(a)(1), (3) and (5) of the Act. The Trial Examiner found that prior to the execu- tion of the contract on May 7, 1969, the Respondent had a practice, at its Vandalia operation, of paying the employees for time lost due to sickness, and of paying its warehouseman, but not the other employ- ees, for certain holidays during the year,' and that the Respondent by unilaterally discontinuing its previ- ous practice and refusing to pay sick pay to its employees after May 14, 1969, violated Section 8(a)(1) and (5) of the Act.' The Respondent excepts to these findings, contending, in essential part, that Respond- ent's discontinuance of sick pay was not a unilateral act on the part of the Respondent, but that it was bilateral, resulting from contract negotiations; that sick pay was part of the total wage package which had been negotiated; and that the record is devoid of any request at any time on or after May 7, 1969, by the Union representatives to negotiate the question of sick pay. We find merit in these exceptions. The Union presented its first proposed contract at a bargaining meeting on September 5, 1968, and, although the contract contained proposals to retain insurance and uniform benefits, and provided for six paid holidays, there was no proposal for sick pay. At that time the Respondent noted that the contract did not contain a wage proposal, and that the contract would have to be a total package. At the next meeting on October 4, 1968, Blakeley, the secretary for the Union, pointed out that the Respondent's sick pay benefits had been left out of the Union's proposed contract, and that the employees wanted to retain the existing sick pay benefits. Kristler, the Respondent's attorney, indicated that he did not know about the sick pay policy. Trimbach, the new branch manager, explained the Respondent's sick pay policy to Kristler, at which time he shrugged his shoulders and raised his hands. At the close of the ' No exceptions were filed to the Trial Examiner 's finding that the Respondent did not engage in conduct violative of the Act by discontinuing and refusing to pay holiday pay to its warehouseman after May 14, 1969 1, ' The Trial Examiner held that inasmuch as it would not affect the remedy, it was unnecessary to consider whether the Respondent also violated Sec 8(a)(3) by such conduct and recommended that this allegation of the complaint be dismissed 185 NLRB No. 134 L. C. CASSIDY & SONS, INC. meeting the Respondent presented its first proposed contract containing provisions with respect to wages, insurance, and uniforms. There was no provision for sick pay. The parties met again on October 9, 1968, and attempted to discuss each article in the two proposed contracts. Kistler informed Blakeley that the Union had not submitted a total wage package. On October 23. 1968. Blakelev sent a letter to Kistler setting forth nine separate demands, including wages of $5.62 per hour plus fringe benefits, holidays, insurance, and uniforms. There was no mention of sick pay in these demands. Blakeley stated at the November 6, 1968, meeting, that he had met with the employees and that they would insist on holidays and seniority rights as set forth in their proposal, and that they would agree to continue the policies in effect relating to uniforms, sick pay, and vacations. The Respondent rejected the Union's demands on the grounds that, in addition to the top carpenter hourly rate, the Union was asking for more than the carpenters because they were asking for sick pay benefits and holiday benefits which the carpenters did not get. Smedstad, the Union's attorney, attended his first bargaining meeting on December 11, 1968. At that time, he emphasized that the two major problems were piece rates versus hourly rates and the question of union shop. The same issues were discussed at the January 3, 1969, meeting. At the January 15, 1969, meeting, Smedstad stated, in reference to the Respondent's proposed manage- ment rights clause, that if the Respondent did not give up the piece rate. all the other fringe benefits, including sick pay did not matter. Although the parties met again on nine occasions, they limited their discus- sions to contract language. After an exchange of telephone calls on May 6, 1969, the parties indicated that they might reach agreement on some matters. Hammaker, the business representative, met with some of the employees on the evening of May 6, 1969, to discuss the terms of an agreement which had been communicated by Kistler. Hammaker read the proposal to the men and they raised questions about the absence of provi- sions for sick pay, holiday pay, and insurance. Ham- maker called Kistler and asked if the holiday pay, sick pay, and insurance benefits were included in Kistler's proposals. According to Hammaker's testi- mony, Kistler answered that his understanding was that it would all be taken care of in the contract. Kistler also stated that the contract was being drawn by Russell, the Respondent's counsel, that he would do what he could, and asked Hammaker to extend his best efforts with the men to accept the proposal being drafted by the Respondent. 921 Prior to the opening of an unfair labor practice hearing involving the Respondent on the morning of May 7, 1969, the parties met and Russell presented to Smedstad the Respondent's proposed contract. Smedstad asked if there were any "tricks" in the contract. Russell answered that there were no tricks in it, but suggested that Smedstad read it. Thereafter, Smedstad took the contract to the employees and informed them of its contents. Hammaker testified that the employees raised questions concerning the absence of reference to sick pay in the contract. Smedstad informed the employees that if he had time he would mention the absence of a sick pay provision in the contract when he returned to the meeting with the Respondent's attorneys. Smedstad stated that he understood that the Union had not bargained away such benefits, and, in the absence of a "zipper clause" in the contract, the Respondent could not lawfully terminate prior benefits without negotiation with the Union. However, Smedstad failed to mention the sick pay matter to the Respondent's attorneys and Blakeley signed the Respondent's pro- posed contract, notwithstanding that there was no provision therein with respect to sick pay. The contract contained several precontract benefits including, with only minor changes, vacations, uni- forms, and insurance. Although the vacation policy was spelled out in the contract, the articles dealing with uniforms and insurance stated that the Respond- ent's present policy would be continued. Pursuant to a request by Smedstad, the Respondent sent a letter to Smedstad on May 14, 1969, setting forth the Respondent's present policy on uniforms and insurance in detail to avoid future difficulties. Highly significant is the fact that Smedstad failed to ask for the Respondent's statement of policy on sick pay. There is testimony that the employees became aware of the Respondent's discontinuance of its sick pay policy in late May or early June, when the Respondent refused sick pay to employees Snapp and Menke. When questioned by the employees about sick pay, Trimbach, the Vandalia manager, and Davis, the supervisor, stated that the Respondent would no long- er provide sick pay because there was no sick pay provision in the contract. Although Hammaker also queued Trimbach concerning the discontinuance of sick pay, he did not ask to bargain about the matter. As a general rule, a union's statutory right to be notified and consulted concerning any substantial change in employment may be waived only if such waiver is expressed in clear and unmistakable terms, and such waiver will not lightly be inferred. However, in view of the foregoing, we find, after an evaluation of the negotiations, that the Union and the Respondent fully discussed the sick pay issue at various times 922 DECISIONS OF NATIONAL LABOR RELATIONS BOARD during negotiations prior to the execution of the contract on May 7, 1969, and that the Union unmis- takably waived its rights concerning sick pay. As noted above, at the time the Union presented its proposed contract it failed to include sick pay benefits; although the Union presented the sick pay issue at several meetings, the Respondent never agreed to its inclusion in the contract or its continuance as a policy; the Union's letter to the Respondent setting forth its nine "demands" made no mention of sick pay; the Respondent specifically rejected the Union's attempt to continue the sick pay policy while the Union insisted on an hourly rate equivalent to that of the carpenters; Smedstad stated at the January 15, 1969, meeting, that if the Respondent did not give up the piece rate, all the other fringe benefits including sick pay did not matter; the employees pointed out to Hammaker on the evening of May 6, 1969, that the Respondent's proposed contract did not contain provisions for sick pay, holiday pay, and insurance, but Hammaker was unable to gain the Respondent's approval for their inclusion; Smeds- tad was asked by the Respondent to read its proposed contract on May 7, 1969, and, thereafter, Smedstad read the contract to the employees, and they noted the absence of the sick pay provision in the contract; Smedstad, after advising the employees that he would mention the sick pay provision to the Respondent's attorneys, failed to do so; and Blakeley signed the Respondent's proposed contract, notwithstanding there was no provision therein with respect to sick pay. The record evidence supports a finding that the Union was concerned, not with the continuance of the sick pay policy, but with the Respondent's change from a piece rate to hourly rates, as stated by Smedstad. Additionally, we find that the record supports a finding that the Respondent bargained with the Union concerning the sick pay plan, and that it was the intention of the parties that the Respondent's sick pay policy, although bargained for, would not be included in the contract, and would not be continued. The parties included the Respondent's vacation policy in the contract, and the articles dealing with uniforms and insurance clearly stated that the Respondent's present policy would be continued. Significant also is the request by Smedstad to the Respondent, after the contract was signed, asking for clarification of the Respondent's present policy on uniforms and insurance, but not asking for clarification of the Respondent's sick pay policy. Finally, the Union, when confronted by those employees who were denied sick pay by the Respondent in May and June 1969, did not ask the Respondent to bargain about its sick pay policy. We conclude, therefore, that the Respondent's con- duct did not constitute, under the circumstances here- in, a violation of Section 8(a)(5). ORDER It is hereby ordered that the complaint herein be, and it hereby is, dismissed in its entirety. TRIAL EXAMINER'S DECISION STATEMENT OF THE CASE SIDNEY J. BARBAN, Trial Examiner This matter was heard at Dayton, Ohio, on February 17 and 18, 1970. The complaint, issued on January 15, 1970, based on charges filed on November 14, 1969, alleges that the above-named Respondent violated Section 8(a)(1), (3), and (5) of the Act, by failing and refusing to grant employees in the unit represented by the above-named Charging Party, herein called the Union, holiday pay and sick pay as was Respondent's custom and practice prior to May 7, 1969. Respondent's answer, as amended at the hearing, denies the commission of any unfair labor practices and asserts that the allegations of the complaint are barred by the provisions of Section 10(b) of the Act, because the conduct complained of allegedly occurred more than 6 months prior to the filing of the charge. Upon the entire record in this case, from observation of the witnesses, and after due consideration of the briefs filed by the General Counsel and the Respondent, the Trial Examiner makes the following- FINDINGS AND CONCLUSIONS 1. THE BUSINESS OF THE RESPONDENT ; STATUS OF THE UNION Respondent is an Indiana corporation with its headquar- ters at Indianapolis, Indiana, engaged in the building and construction industry as an insulation contractor at eight locations, some of which are shown by the record to be in Indiana and Ohio. Only Respondent's operation at Vanda- lia, Ohio, is involved herein It is admitted that Respondent, during a recent representative 12-month period, purchased products of a value in excess of $50,000, which it caused to be shipped in interstate commerce from points outside the state of Indiana to its operation at Indianapolis, Indiana, at which it maintains its main office. Respondent's answer to the complaint denies that it is an employer engaged in commerce or in operations affecting commerce within the meaning of the Act. However, upon consideration of the totality of Respondent's operations, including its multi- state activities, it is found that Respondent's operations are in and affect commerce within the meaning of the Act, and that it will effectuate the purposes of the Act to assert jurisdiction in this matter. See Siemons Mailing Service, 122 NLRB 81, 84. L. C. CASSIDY & SON, INC. The Union, a labor union within the meaning of the Act, was selected in April 1968, as the representative of Respondent's employees in an appropriate unit for the purposes of collective bargaining with Respondent', as the result of a secret ballot election conducted by the Board, and since May 7, 1969, has been party to a collective- bargaining agreement with the Respondent covering wages, hours, and working conditions of employees in that unit. II. SUPERVISORY STATUS OF WILLIAM DAVIS The complaint alleges and Respondent denies that William Davis is a supervisor of employees in the unit covered by the contract within the meaning of the Act. It appears from the record that while David Trimbach is the local manager of Respondent's Vandalia operation, the employees primarily receive their instructions, directions, and orders from Davis, to whom they normally report The employees, except possibly the warehouseman, usually work at places removed from Respondent's premises, alone or in very small groups, without immediate supervision. If they encounter a problem or require assistance, the employees call Davis. He does not, however, normally do the work performed by members of the unit, and only recently was given permission by the union shop steward to perform unit work in special circumstances at places inconvenient for regular workers. Davis also inspects the work of employ- ees when complaints are made by customers Unit employees, though paid on a piece work basis (except for the warehouseman who is hourly paid), punch a timeclock. Davis does not. The evidence is that Davis reprimanded one employee to the effect that if the employee did not like the way Davis "was handling the work, he could go home." On another occasion, in response to a complaint by an employee about the manner the work was being done (which complaint is none too clear in the record), Davis gave the employee specific instructions as to how Davis wanted the work done, with which the employee complied. Davis did not testify, and Respondent offered no evidence as to Davis' duties and authority. Upon the record as a whole, it is found that Davis, at a minimum, has authority, in the interest of the Respondent, to discipline or responsibly direct employees using independent judgment and discretion, and is thus a supervisor within the meaning of Section 2(11) of the Act. III. THE ALLEGED UNFAIR LABOR PRACTICES After the Union was certified, in April 1968, as the exclusive bargaining representative of Respondent's employ- ees in the appropriate unit, the Respondent and the Union ' The complaint alleges and the Respondent agrees that the following constitutes an appropnate unit for the purposes of collective bargaining within the meaning of Sec 9 (b) of the Act All employees classified as warehouseman , probationary trainee, help er, senior hoseman, junior hoseman , senior blanket installer, and junior blanket installer at the Respondent 's Vandalia, Ohio operation, excluding all office clerical employees, professional employees, guards and supervisors as defined in the Act 923 met and negotiated on 19 separate occasions from June 26, 1968, through May 7, 1969. At that time a collective- bargaining agreement was executed, and an unfair labor practice hearing upon a complaint against Respondent scheduled for the same date, was called off. General Counsel does not here complain of Respondent's conduct during these bargaining negotiations, but asserts that Respondent has violated the Act by discontinuing its prior practice at Vandalia of paying sick pay to employees, and by stopping its prior practice of paying its warehouse- man at Vandalia for certain holidays, after the execution of the collective-bargaining agreement, without notification to the Union or negotiation with respect to these changes prior to putting them into effect. Respondent's president, Donald Cassidy, testified that he was aware that there had been a practice at Vandalia of paying sick pay to employees, in accordance with Respondent's established policy2, but indicated a lack of knowledge of the circumstances of the discontinuance of this practice. The testimony of employees and of Richard J. Hammaker, business representative of the Union, estab- lishes that, when asked, both Trimbach, the Vandalia manag- er, and Davis, the supervisor, stated that the Vandalia operation would no longer pay sick pay, upon instructions from Respondent's Indianapolis headquarters, because there was no provision for sick pay in the contract. Thus, Ham- maker testified that when he queried Trimbach concerning the discontinuance of this benefit, after receiving a complaint from the union shop steward about this, Trimbach "said, well, he would like to pay it, but. . . . unless it was okayed through the company he couldn't go ahead and pay it . . . . And he said they told him he could not pay it because it was not in the contract . . . He just said it was orders from Indianapolis, were that he would not pay it." This change in policy became known to the employees when Respondent refused sick pay to employee Thomas Menke sometime after May 22, possibly in early June 1969.' At the Vandalia operations, only the warehouseman received pay for holidays prior to the execution of the collective-bargaining agreement. Although Cassidy asserted that he was not aware that any of Respondent's employees had ever received holiday pay, the evidence clearly shows that this was the practice at Vandalia, with respect to the warehouseman prior to May 7, 1969, the date of the contract. After that date, Respondent ceased paying the warehouseman for holidays. When the present warehouse- man, David Scott Hodges, inquired of Trimbach whether he would thereafter receive holidays, in accordance with ' Respondent 's brief, in arguing that this matter should be controlled by' certain precedents , argues that this practice was "vague , and the benefits were paid only at the discretion of the Vandalia manager However, the record is clear that each employee with more than a year's service was paid for absences due to illness, up to seven in a year, attested by a doctor 's certificate . It is further manifest that though the manager had a discretion whether to put this policy into effect at Vandalta, he had exercised his discretion to do so ' Though Menke at the hearing indicated unconcern about being paid, I was not impressed by his disavowals He seemed to testify under some restraint In any event, the record as a whole shows that Respondents' failure to pay Menke after he submitted the customary doctor's certificate was a matter of concern to the employees 924 DECISIONS OF NATIONAL LABOR RELATIONS BOARD Respondent's practice, Trimbach replied, "No." Hammaker also spoke to Trimbach about this, but the conversation is not developed in the record. Respondent argues that it was justified in its actions in discontinuing holiday pay for the warehouseman, and sick pay for the unit employees, in effect, on the basis that 1) these benefits were bargained away during the negotiations, 2) by terms of the contract the Union had conceded to the Respondent the right to take unilateral action with respect to these matters of employment condi- tions, and 3) the Union had an opportunity to bargain on the issues but did not do so. It is further asserted that, in any event, these changes took effect on May 7, 1969, the date of the agreement, more than 6 months before November 14, 1969, when the charges in this matter were filed, and thus are barred by Section 10(b) of the Act. The course of bargaining will be considered first. A. The Negotiations Generally The evidence indicates that, almost to the end, the bargain- ing negotiations were marked more by controversy than agreement. In dispute were matters such as wages and the manner in which they were to be computed (Respondent wished to continue on a piece work basis and the Union desired payment on an hourly basis ), union shop, check- off, and the Union's jurisdiction (the Union's proposals were limited to its geographical jurisdiction, which would require Respondent to conform to conditions established by other local unions when unit employees performed work outside that geographical area). In the last stages of the negotiations, Respondent was principally represented by John Kistler, one of its attorneys, and the Union was represented mainly by Hammaker. Between April 9, 1969, the last official negotiation meeting between the two parties, and May 7, 1969, when the agree- ment was signed, contact between Kistler and Hammaker was informal and apparently over the telephone. As a result of these contacts and from discussing the matter with officials of Respondent during the course of preparation for the Labor Board hearing scheduled for May 7, Kistler stated that "I felt that perhaps we really could, for the first time, get a contract, a total contract" On May 6, Kistler communicated this to Hammaker, and advised that he was having other Respondent counsel draw up an agree- ment based on the negotiations to that date. Hammaker thereafter discussed this with employees in the unit and later spoke with Kistler on the telephone, as detailed herein- after. The following morning, during a three hour recess granted prior to the opening of the hearing, the parties engaged in a discussion, considered hereinafter, which result- ed in the execution of the document presented by the Respondent, without substantial change. B. Discussions of Holidays and Sick Pay Neither the matter of holidays or the question of sick pay figured prominently in the negotiations. In the Union's original contract proposal (which lacked a wage proposal and was considered incomplete), submitted at the meeting of September 5, 1968, the Union proposed the grant of 6 holidays to all employees in the unit on the active payroll. There was no reference to sick pay. Respondent's contract proposal, submitted at the meeting of October 4, 1968, made reference to neither benefit. While the testimony of the witnesses appears somewhat at variance with respect to the times when these two subjects, or either of them, was brought up during the negotiations, this is not crucial to the resolution of the issues herein. Kistler, using notes made about that date, places the first mention of sick pay at the negotiation meeting of October 4, 1968. That date is accepted Ralph Blakeley, union business agent, who recalled that the matter of sick leave came up only once while he was in the negotiations but was not sure of the date, on cross-examina- tion indicated that this occurred before his letter of October 23, 1968, to Respondent. Hammaker, who placed the inci- dent later, is probably mistaken as to the date. At this meeting, the union representatives inquired of the employees present on their committee, Orville Taylor and Harvey Cox, whether there were any other working conditions which the men desired. After some minutes of consideration, according to Hammaker, "they said they had sick pay before, and wanted to know if this was going to be in the contract And I don't think John [Kistler] had heard of it before, and he turned and asked Dave [Trimbach] about sick pay, and Dave said it had been a custom, and he [Kistler] just made some sign like, oh, it was kind of immaterial to him, or something." Hammaker stated that the subject was dropped from that time until the evening of May 6, 1969 The testimony of Blakeley and Kistler was consistent with this testimony, although Kistler recalls the manner in which sick pay was first raised somewhat differently, and states that the matter was also briefly mentioned in later meetings, as considered below. Kistler does confirm that when the matter of sick pay was first raised, he did inquire as to the custom, and when informed, shrugged his shoulders and raised his hands, palms up, indicating that this was not a matter of importance between the parties. On October 23, 1968, Blakeley sent Respondent a letter setting forth eight items, which he asserted the employees had instructed him to submit as "demands ... in regard to contract negotiations." Significant among these demands for the purposes of this case are the following (the numbers given are those in the letter): "1. Wages - $5.62 per hour plus fringe benefits"; "5. Holidays as written in the contract proposal"; 7. "Insurance (To be paid by the Company)"; "8. New Uniforms (Furnished by the Company-1 every year) "0 There was no specific reference to sick pay. This document was submitted in response to Respondent's demand upon the Union that it complete its prior contract proposal. According to Kistler there was also a brief reference to holidays at the meeting of October 9, 1968 (Blakeley wanted to further discuss this with the employees), and a mention of sick leave and holidays at the meeting of November 6, 1968. At the latter meeting, in the course It appears that as to insurance and uniforms, as well as wages and holidays, the Union was asking for increases or improvements over Respondent's prior practices L C CASSIDY& SON, INC of setting forth the Union's demands, in apparently final form, for wage rates, union shop, overtime, and the like, Blakeley stated that "They would insist on holidays as set forth in their proposed contract. They would agree to continue the policies in effect relating to uniforms, sick pay, and vacations." Respondent also argued, at some point during the negotiations, that the Union's proposals would result in the employees receiving rates paid to top journey- man carpenters, although they had not served the 4-year apprenticeship, and, in addition, the Union wanted even more for Respondent's employees than the carpenters were getting, because they were, as Kistler stated, "asking for sick pay benefits and holiday benefits, . that the carpenters do not get. This was pointed out to Mr Blakeley. He did not deny it." Although sick pay was mentioned in passing during succeeding meetings (it was mentioned at the meeting of December 11, 1968, in connection with a paper drawn up by Respondent showing payments to employees at certain times, and again at the meeting of January 15, 1969, when Smedstad, the Union attorney, said the Union would like to have fringe benefits such as sick pay and the like, but the Respondent's insistence upon piece rates undercut their value), it is clear that no meaningful negotiations with respect to sick pay occurred at any negotiation meeting after November 6, 1968. In addition to the above, both Blakeley and Hammaker testified that at one meeting (Blakeley indicated it to be early in the negotiations, while Hammaker placed it after the strike which ended on February 5, 1969), the Union demanded 2 holidays (the employee's birthday and the first day of hunting season) in addition to the 6 in the Union's original proposal. Both indicated that the Respond- ent treated the proposal with ridicule and rejected it. Ham- maker states that "we just took it that that was a refusal on the two days, and we understood that the others would remain as they were."5 Blakeley asserts that Respondent "said they would pay . . . what they had paid before but they wouldn't pay hunting season and their birthday." Kistler's testimony does not refer to this testimony of Blakeley and Hammaker. To the extent that this testimony, or other testimony in the record, may seem to indicate that the parties were negotiating for holidays for the warehouseman specifically (which had been the only prior practice as to holidays), rather than for the unit as a whole, or that Respondent during the negotiations agreed to continue its past practice in this regard, it is not credited. The record as a whole, including the events of May 6 and 7, 1969, considered immediately hereinafter, is convincing that the Union was seeking holidays for all of the unit employees in its proposed contract, a substantial new economic benefit, and that Respondent throughout the negotiations resisted this demand, which Respondent finally rejected in its last con- tract proposal made on May 7, 1969. ' Hanmaker also stated that at an earlier meeting, when the Union read off its holiday proposal, "they said it had been a practice , and it was like no big thing , they didn't really care about it " C. The Events of May 6- 7 925 As previously noted, a hearing had been scheduled for May 7, 1969, upon a complaint issued by the Regional Director of the Board against the Respondent on charges filed by the Union During the course of preparation for this hearing, Kistler was in communication with Hammaker with respect to the possibility of agreement upon contract terms At Kistler's request, Hammaker met with some of the employees in the unit on the evening before the hearing, May 6, 1969, and discussed terms of agreement which had been communicated by Kistler. After Hammaker read "the proposition" to the men, they raised questions about the absence of provisions for sick pay, holiday pay, and insurance, to which Hammaker replied that he would call Kistler As Hammaker testified, after calling Kistler, "I asked him was all the fringe benefits in there that he hadn't mentioned when he called, the holiday pay, the sick pay, and the insurance benefits. And he said his understanding was that it would all be taken care of, in the contract." Kistler's testimony is not in conflict with Hammaker's on this point, though he recalls Hammak- er being concerned over other matters in addition to those named by Kistler. Kistler advised that the contract was being drawn by other counsel for Respondent, that he would do what he could, and asked that Hammaker exert his best efforts with the men to get them to accept Respond- ent's proposal being drafted. The next morning, prior to the opening of the hearing, the Union's counsel, Smedstad, met with Respondent's coun- sel, and was given Respondent's complete contract proposal, represented as what the Respondent was willing to sign. This was taken to a lower floor on which Hammaker and some of the employees were gathered, where Smedstad appraised them of the contents of the document. According to Hammaker, the employees raised questions concerning the lack of reference to sick pay and holidays in the proposed agreement (Smedstad recalled reference to sick pay only), to which Smedstad commented that he under- stood that the Union had not bargained away such benefits, and, particularly in the absence of a "zipper clause" in the agreement, Respondent could not lawfully terminate prior benefits without negotiation with the Union.' The agreement was thereafter executed by the Union and the Respondent, apparently without significant change. The scheduled unfair labor practice hearing was not held, evi- dently on the basis of the Union's withdrawal of charges against Respondent. D. Analysis and Conclusions From the above findings of fact, it is clear that prior to the execution of its collective-bargaining agreement with the Union, the Respondent had a practice and custom at its Vandalia operation of paying employees employed more than a year for time lost due to sickness up to ' In art XXI and XXII of the agreement, Respondent specifically agreed to continue its prior policies with respect to uniforms and insurance, which were further clarified by letter from the Respondent as requested by the Union on May 7, 1969, at the time of the execution of the contract 926 DECISIONS OF NATIONAL LABOR RELATIONS BOARD 7 days a year, where such absence was attested by a doctor's certificate, and also paid its warehouseman, but not the other employees, for certain holidays during the year. This is not seriously disputed. Nor does it seem to be disputed that after the execution of the agreement, Respondent, without notification to or discussion with the Union, discontinued such benefits. Respondent's actual refusal to pay these benefits occurred on a number of occasions after the end of May 1969, and continued to the time of the hearing. Respondent contends that this change in practice actually became effective on May 7, 1969, when the contract was signed without provision for holidays or sick pay. It is asserted that the present complaint is therefore barred under Section 10(b) of the Act, because the charge in this matter was not filed until November 14, 1969, more than 6 months after May 7. Respondent further contends that the Union, in any event, waived any right to object to Respondent's unilateral action in ceasing to pay for holidays or for absences due to illness, (1) because the Union, after seeking to have these matters included in the contract, executed an agreement without these benefits, (2) because the Union, assertedly knowing of the changes and having an opportunity to discuss them with Respondent, did not do so, and (3) because the Union assertedly, in granting Respondent the right to "control wages",' also granted Respondent the right to control sick leave pay and holiday pay, which Respondent argues are encompassed within the term "wages." a The application of Section 10(b) to this proceeding With respect to the contention that this matter is barred by Section 10(b) of the Act, it is argued that the Union and the employees were put on notice as of May 7, 1969, that Respondent had decided to discontinue sick leave benefits and holiday pay because these benefits did not appear in the bargaining agreement. However, the mere fact that an existing benefit is not mentioned in the bargain- ing agreement does not invest the employer with the right to unilaterally alter or discontinue that benefit, Leeds & Northrup Co. v. N.L.R.B., 391 F.2d 874; General Telephone Co. of Florida v. N.L.R.B., 337 F.2d 452, nor does it necessarily constitute clear notice of such intent. Indeed, the record is barren of evidence as to when Respondent actually made its decision to withdraw these benefits Plant Manager Trimbach's comments to Union Representative Hammaker in June concerning the decision to discontinue sick leave benefits might indicate that he learned of this decision only when the issue was raised in late May or early June. Tnmbach did not testify. In any event, in the absence of other circumstances which would make Respondent's course of action plain, 7 Art VI, " Management Rights", sec 3, of the bargaining agreement provides , in pertinent part, "Employer shall at all times subject to provisions of this agreement , shall have full control of matters relative to the management, personnel and the conduct of its business The management shall control and direct its working forces, the methods of production , wages, care and use of its machinery and materials , and retain the right to promote and transfer employees " ( matter emphasized is relied upon by Respondent in this connection) the employees and their representative were entitled to clear notice of Respondent's adverse action before the statute of limitations would begin to run. See Russell-Newman Manufacturing Company, Inc., 167 NLRB No. 156. More- over, notwithstanding any prior intention to discontinue these benefits in the future, the actual alteration in the preexisting working conditions occurred when Respondent refused to pay these benefits in circumstances in which they had previously been paid. See Swift Service Stores, et al, 169 NLRB No. 33. It is these refusals, which gave the first clear notice that Respondent had withdrawn holiday and sick leave benefits, that the complaint alleges violated the Act. Since these matters occurred within the 6-month period prior to the filing of the charge herein they are clearly not barred by Section 10(b) of the Act. b. The contention that the Union waived any right to notification or bargaining about changes in sick leave and holiday pay policies It is now well established that an employer is not only under a duty to bargain exclusively with the chosen repre- sentative of its employees concerning the terms and condi- tions of their employment, but is under the correlative obligation not to unilaterally change established employment conditions without consultation and bargaining with the representative of its employees, in the absence of circum- stances excusing or justifying such unilateral action. N.L.R.B. v. Katz, 369 U.S. 736. The Respondent contends, however, that the Union, by the course of the bargaining, the terms of the bargaining agreement, and by other conduct, waived any right to be consulted or to require bargaining with respect to the withdrawal of sick leave and holiday benefits previously granted. It is, indeed, well settled that, in appropriate situations, a union may waive the right to be consulted in the case of employer unilateral action concerning a bargainable sub- ject. However, such waiver, in derogation of rights granted by the statute, will not be lightly implied, but must be clear and unmistakable. N.L.R.B. v. Perkins Machine Co., 326 F.2d 488; The Timken Roller Bearing Co. v. N.L.R.B., 325 F 2d 746. In fact, it has been held that an employer violates Section 8(a)(5) of the Act if it takes unilateral action or refuses to bargain on a term or condition of employment, "unless it can be said from an evaluation of the prior negotiations that the matter was `fully discussed' or `consciously explored' and that the Union `consciously yielded' or clearly and unmistakably waived its interest in the matter." See Proctor Manufacturing Corporation, 131 NLRB 1166; C & C Plywood Corporation, 148 NLRB 414. See also, Peterson v. S. S. Wahcondah, 331 F.2d 44, at 48, defining waiver of statutory rights as "the inten- tional relinquishment of a known right with both the knowl- edge of its existence and an intention to relinquish it." Respondent contends that "[h]oliday pay and sick pay were thoroughly discussed and consciously explored between " In this connection, Respondent cites, inter alia, Intermountain Equipment Co, v N L R B, 239 F 2d 480, and N L R B v Nash-Finch Co.211F2d622 L. C. CASSIDY & SON, INC [the] negotiators" in their attempt to arrive at a "complete contract" and a "total wage package" (Brief p 6), from which Respondent argues, in effect, that an agreement of the parties leaving these matters to Respondent's unilater- al discretion should be inferred from the silence of the contract on these issues. Indeed, Respondent seems to argue that in such circumstances, as a matter of law, "[t]he exploration of a subject and a union's insistence that it be put into a written contract precludes the union from any right to bargain on that subject during the term of the agreement." (Brief p. 6)e The issue, however, is clearly one of fact, to be determined in each case upon the whole record. As the Court stated, in Leeds & Northrup Co. v. N.L.R.B., supra, at 878, "the parties may implicitly agree that a particular subject shall be left to the unilateral decision of the employer. Whether such an implied agree- ment existed is a factual question." See also Henry I. Siegel Co., Inc., 147 NLRB 594, 595, fn. 2, where the Board referred to "The Timken Roller Bearing Company v. N.L.R.B., 325 F.2d 746 (C.A. 6), and N.L.R.B. v. Perkins Machine Company, 326 F.2d 488 (C A 1) which hold that an employer's obligation to bargain on a matter arising from a union's statutory right is not extinguished by the fact that the parties have considered in their negotiations, and have thereafter omitted, a provision with respect thereto in their written contract," and continued, stating that "A relinquishment of a statutory right . . . must be in clear and unmistakable language, and silence in the bargaining agreement does not amount to such relinquishment." Respondent's action in respect to each of the two benefits will be considered separately, since on the basis of the entire record, I find a rather significant distinction between the course of bargaining with respect to the issue of sick leave and that involving holidays Though the evidence is meager, the record is nevertheless clear that the parties never reached a real confrontation with respect to the issue of sick pay. On the one or two occasions when the Union during the formal negotiations brought up the subject, it never sought more than the continuation of the status quo in respect to sick pay, and the record as a whole is convincing that Respondent during the negotia- tions evidenced no resistance to this request.' On the other hand, it is equally clear throughout the negotiations that the Union was actively seeking holiday benefits as a substantial new and increased economic benefit for all unit employees. There is not credible evidence that Respondent ever indicated acquiescence in the Union's holi- day demands in whole or in part during the bargaining negotiations. The tenor of the record as a whole indicates that Respondent resisted such demands. In the state of this record, it is clear to me that when the Union signed the collective-bargaining agreement, which s Respondent's acquiescence in this request of the Union at the October 4 meeting was never disavowed Though Kistler states that he thereafter on one occasion argued that the Union was asking for benefits (including sick pay) that it did not have in other contracts, this argument in the course of bargaining hardly rises to the point of rejection Significantly, when Kistler was advised by Hammaker on May 6, 1969, that the employees desired continuation of the sick leave policy, Kistler made no claim that this had been rejected in the bargaining negotiations, nor did he indicate any intention to alter the existing practice 927 made no provision for holidays for the employees, it made a conscious concession on that point. Whether or not the Union was conscious that the warehouseman was already receiving holiday pay, they must be held to know that he was part of the unit , and therefore their conscious relinquishment of holiday benefits for the unit, as a part of the bargain made, necessarily applies to the warehouse- man. The same cannot be said with respect to the sick pay issue. The Respondent never, so far as this record shows, indicated during the bargaining a desire to take any benefits away from the employees." Indeed, in the matter of sick pay the Respondent evidenced acquiescence in the Union's request that it be continued. Respondent's failure to include the sick pay benefit in its final bargaining proposal, in the circumstances of this case, is perfectly consistent with a desire on its part to retain the freedom to reconsider this practice during the term of the agreement rather than be bound to continue it unchanged for the duration of the contract. On the record in this case, it cannot be said that this issue was fully and consciously explored during the negotiations to the point that the Union by executing the agreement proffered by Respondent clearly, unmistakably, and consciously yielded to Respondent the right to unilaterally alter the existing sick pay policy ii Respondent further asserts that the Union relinquished its right to bargain over the discontinuance of sick pay because it assented to Respondent's contract proposal with respect to management's rights, including the right to "con- trol wages," on the basis that sick pay is part of "wages," or the "wage package." However, it is far from clear what Respondent intended to include in the term "wages" in its contract proposal, and less clear what was meant by the right to "control wages." It is difficult to conceive that the Union, by acceding to Respondent's proposal, thereby meant to permit unilateral alteration of wages or other conditions. Since Respondent drew the document, it was incumbent upon it to make clear what was intended. In the absence of any explanation, it is found that this language does not clearly and unmistakably evidence the Union's conscious intent to relinquish to Respondent the right to unilaterally alter wages or other benefits.t2 Cf. Weltromc Company v. N L R B , 419 F.2d 1120 (C.A 6) As the Board and the Courts repeatedly have had occasion to note, the vice in such unilateral action with _ respect to a bar- gainable matter, or' other attempts to deal with' employees directly about their working conditions in derogation of ° it is noted that in those instances in which the Union had originally sought increases in existing benefits (as to insurance and uniforms), the Respondent, in an apparent effort to encourage acceptance, provided in the agreement that they would continue their past practices for the term of the agreement 'i It is noted that Respondent's refusal to pay sick pay after the execution of the agreement generated sufficient concern among the employees that employee Snapp questioned Trimbach and Davis, Respondent's local supervisors, about this, and caused Shop Steward Taylor to complain to Hammaker, who also spoke to Trimbach about this, indicating that Respondent's action was not what had been expected 11 Respondent apparently so understood, for in one instance since the execution of the agreement in which Respondent desired to alter wages to cover a situation not specifically covered in the agreement, it gave the Union notice and an opportunity to bargain thereon 928 DECISIONS OF NATIONAL LABOR RELATIONS BOARD the employees' bargaining representative, is that it obstructs the policies of the Act favoring collective bargaining, N.L.R.B. v. Katz, supra; J. I. Case Co. v. N.L.R.B., 321 U.S. 332; Medo Photo Supply Corporation v. N.L.R.B., 321 U.S. 678, and has "as a normal and foreseeable conse- quence" the "impairment of the Union's prestige," see Insulating Fabricators, Inc., 144 NLRB 1325, 1332, and tends to "undermine the authority of the certified bargaining representative." See Armstrong Cork Co. v. N.L.R.B., 211 F.2d 843, 847. For these reasons, an employer may normally satisfy its obligation to deal with the employees' representa- tive about changes in working conditions, rather than direct- ly with the employees, only by notifying the representative before making the change and giving a reasonable opportuni- ty to bargain about the proposed change. As the Court stated in Armstrong Cork Co. v. N.L.R.B., supra at 847, "Good faith compliance with Section 8(a)(5) and (1) of the Act presupposes that an employer will not alter existing `conditions of employment' without first consulting the exclusive bargaining representative selected by his employ- ees, and giving it an opportunity to negotiate on any pro- posed changes." Though Respondent contends that the Union was given ample notice and opportunity to negotiate with respect to Respondent's discontinuance of sick pay benefits, and that the Union took no action thereon, the record compels a different conclusion. It is clear that when the Union first learned that Respondent was refusing to pay sick pay in accordance with its past policies, the Union was presented with an already executed decision, a fait accompli, put into effect and made plain first to the employees. It is also evident that when this was brought to Hammaker's attention by the shop steward, he took prompt action by going to Plant Manager Trimbach about this. Tnmbach's reply on the subject was not such as to encourage further discussion on the subject. Nor did Respondent offer or afford the Union a reasonable opportunity to discuss Respondent's unilateral action with those members of man- agement who were responsible for the decision, which patent- ly did not include Trimbach." On the basis of the matters discussed above, and the record as a whole, it is found that Respondent, by unilateral- ly discontinuing its previous practice and refusing to pay sick pay to its employees after May 14, 1969, violated Section 8(a)(1) and (5) of the Act Inasmuch as it would not affect the remedy herein, it is considered unnecessary to consider whether the Respondent also violated Section 8(a)(3) by such conduct, and it will be recommended that this allegation of the complaint be dismissed It will also be recommended that the allegations of the complaint that Respondent violated the Act by discontinuing and refusing to pay holiday pay to its warehouseman be dismissed " The precedents cited in Respondent's brief (Tucker Steel Corp , 134 NLRB 323, Lakeland Steel Co, 130 NLRB 1365, Floyd R Richard Son, Inc. 109 NLRB 136, Frohman Mfg Co, 107 NLRB 1308), as well as the Board's most recent decision (Holiday Inn Central, 181 NLRB No 160) dealing with circumstances in which it has been held that reasonable opportunity for bargaining was afforded, have been carefully considered These cases are clearly distinguishable from the instant matter CONCLUSIONS OF LAW 1. The Respondent is an employer engaged in commerce within the meaning of Section 2(6) and (7) of the Act 2. The Union is a labor organization within the meaning of Section 2(5) of the Act, which, at all times material, has been and continues to be the exclusive representative of Respondent's employees in the appropriate unit set forth in footnote 1, hereinabove, for the purposes of collective bargaining within the meaning of Section 9(a) and (b) of the Act. 3. By discontinuing its prior practice of paying its employ- ees in the appropriate unit sick pay and by refusing to pay such employees sick pay after May 14, 1969, Respondent violated Section 8(a)(1) and (5) of the Act. 4. Respondent did not engage in conduct violative of the Act by discontinuing and refusing to pay holiday pay to its warehouseman after May 14, 1969 THE REMEDY It having been found that the Respondent has engaged in unfair labor practices in violation of Section 8(a)(1) and (5) of the Act, it will be recommended that Respondent cease and desist therefrom and take certain affirmative action designed to effectuate the policies. In order that the employees may be restored as nearly as possible to the rights which they would have enjoyed absent Respondent's actions in violation of the Act, it is appropriate that Respondent be ordered to reimburse the employees for sick pay which they would have received except for Respondent's unilateral action in discontinuing and refusing to pay such benefits after May 14, 1969. See Leeds & Northrup Co. v. N.L.R.B., supra. Though some eligible employees continued to submit doctor's certifi- cates required for the payment of sick pay, the record indicates that other employees did not do so because they reasonably concluded from Respondent's conduct that fur- ther attempts to secure sick pay would be futile. These employees should not be disqualified because of Respond- ent's conduct. It will therefore be recommended that Respondent reimburse each of its employees in the appropriate unit set forth hereinabove who has submitted or hereafter submits a doctor's certificate, or other credible proof of illness, and who is otherwise qualified under Respondent's prior practice, for sick pay for absence due to illness since May 14, 1969, until the occurrence of one of the following: (1) the parties have come to an agreement on the subject, or (2) the parties have reached an impasse on th subject after good-faith collective bargain- ing, or (3) the Union has failed or refused to bargain on the subject after being afforded a reasonable opportunity to bargain thereon. Interest on such sick pay withheld shall be computed at the rate of six percent per annum. RECOMMENDED ORDER On the basis of the above findings of fact and conclusions of law, and upon the entire record in this matter, its recommended that Respondent L C Cassidy & Son. Inc , L. C. CASSIDY & SON, INC its officers, agents, successors, and assigns, shall: 1 Cease and desist from (a) Refusing to bargain collectively with the Union with respect to sick pay or any other term or condition of employment by unilaterally effectuating changes in, or eliminating, such conditions of employment of its employees in the appropriate bargaining unit found herein in derogation of the rights of the labor organization selected by the employees as their exclusive bargaining representative. (b) In any like or related manner interfering with the rights of employees guaranteed in Section 7 of the Act. 2. Take the following affirmative action which is necessary to effectuate the policies of the Act: (a) Pay to its employees in the appropriate unit sick pay for absence due to illness in the manner set forth above in the section entitled "The Remedy." (b) Preserve and, upon request, make available to the Board or its agents, for examination and copying, all recotds necessary to analyze and compute the amounts due under the terms of this Recommended Order. (c) Post in conspicuous places at its operation located at Vandalia, Ohio, including all places where notices to employees are customarily posted, copies of the notice attached hereto and marked "Appendix."14 Copies of said notice to be furnished by the Regional Director for Region 9, shall, after being duly signed by the Respondent, be posted by it immediately upon receipt thereof and maintained by it for a period of 60 consecutive days thereafter in conspicuous places, including all places where notices to employees are customarily posted. Reasonable steps shall be taken by the Respondent to insure that said notices are not altered, defaced or covered by any other material. (d) Notify the Regional Director for Region 9, in writing, within 20 days from the receipt of this Decision what steps it has taken to comply herewith 15 IT IS FURTHER RECOMMENDED that the complaint be dismissed as to any alleged violations of the Act not found herein. 14 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, conclusions, recommendations, 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 in the event that the Board's Order is enforced by a judgment of a United States Court of Appeals, the words in the notice reading "Posted by Order of the National Labor Relations Board" shall be changed to read "Posted Pursuant to a Judgment of the United States Court of Appeals Enforcing an Order of the National Labor Relations Board " 929 15 If these Recommendations are adopted by the Board , this provision shall be modified to read "Notify the Regional Director for Region 9, in writing , within 10 days from the date of this Order, what steps the Respondent has taken to comply herewith " APPENDIX NOTICE To EMPLOYEES POSTED BY ORDER OF THE NATIONAL LABOR RELATIONS BOARD An Agency of the United States Government WE WILL NOT refuse to bargain collectively with Miami Valley Carpenters District Council, The United Brotherhood of Carpenters and Joiners of America, AFL-CIO, by unilaterally refusing to pay sick pay to qualified employees, or making any other changes in working conditions in derogation of the rights of the Union or our employees under the National Labor Relations Act. WE WILL NOT engage in any like or related conduct which interferes with, restrains , or coerces you in the exercise of rights guaranteed you in Section 7 of the National Labor Relation Act. WE WILL pay sick pay to qualified employees in the appropriate unit absent from work because of illness since May 14, 1969, until such time as an agreement is reached with the Union, or we may otherwise lawfully change this practice. The appropriate unit is: All employees classified as warehousemen, probationary trainee , helper, senior hoseman, junior hoseman , senior blanket istaller , and junior blanket installer at the Comapny's Vandalia, Ohio, operation, excluding all office clerical employees, professional employees, guards and supervisors as defined in the Act. L. C CASSIDY & SONS, INC. (Employer) Dated By (Representative) (Title) This is an offical notice and must not be defaced by anyone. This notice must remain posted for 60 consecutive days from the date of posting and must not be altered, defaced, or covered by any other material. Any questions concerning this notice or compliance with its provisions may be directed to the Board's Office, Room 2407 Federal Office Building, 550 Main Street, Cincinnati, Ohio 45202 Telephone 513-684-3686. Copy with citationCopy as parenthetical citation