Litton IndustriesDownload PDFNational Labor Relations Board - Board DecisionsJun 8, 1971190 N.L.R.B. 757 (N.L.R.B. 1971) Copy Citation LANDIS TOOL COMPANY Landis Tool Company . Division of Litton Industries andInternational Brotherhood of Teamsters , Chauf- feurs, Warehousemen and Helpers of America, Lo- cal Union No. 110. Cases 6-CA-5021 and 6-RC- 5191 June 8, 1971 DECISION, ORDER, AND DIRECTION OF SECOND ELECTION BY CHAIRMAN MILLER AND MEMBERS BROWN AND JENKINS On February 22, 1971, Trial Examiner Henry L. Jalette issued his Decision in the above-entitled pro- ceeding, finding that the Respondent had engaged in and was engaging in certain unfair labor practices and recommending that it cease and desist therefrom and take certain affirmative action, as set forth in the at- tached Trial Examiner's Decision. He further found that the Respondent had not engaged in certain other unfair labor practices alleged in the complaint and recommended that such allegations be dismissed. In addition, the Trial Examiner found an interference with the election held in Case 6-RC-5191 and recom- mended that the election be set aside. Thereafter, the Respondent and the General Counsel filed exceptions to the Trial Examiner's Decision and supporting briefs and the Respondent filed a reply brief. Pursuant to the provisions of Section 3(b) of the National Labor Relations Act, as amended, the Na- tional Labor Relations Board has delegated its powers in connection with these cases to a three-member panel. The Board has reviewed the rulings of the Trial Ex- aminer made at the hearing and finds that no prejudi- cial error was committed. The rulings are hereby affirmed. The Board has considered the Trial Ex- aminer's Decision, the exceptions and briefs, and the entire record in these cases, and hereby adopts the findings, conclusions, and recommendations of the Trial Examiner.' ORDER Pursuant to Section 10(c) of the National Labor Re- lations Act, as amended, the National Labor Relations Board adopts as its Order the recommended Order of the Trial Examiner and hereby orders that the Re- spondent, Landis Tool Company, Division of Litton Industries, Waynesboro, Pennsylvania, its officers, agents, successors, and assigns, shall take the action set forth in the Trial Examiner's recommended Order. ' In view of the Trial Examiner's findings and recommendations which are adopted herein, Member Brown finds it unnecessary to decide whether Respondent's campaign literature also violated the Act and interfered with the election 757 IT IS FURTHER ORDERED that the election con- ducted on May 7, 1970, in Case 6-RC-5191 be, and it hereby is, set aside and that Case 6-RC-5191 be, and it hereby is, remanded to the Regional Director for Region 6 for the purpose of conducting a new election at such time as he deems that circumstances permit the free choice of a bargaining representative. [Direction of Second Election2 omitted from publica- tion.] ' In order to assure that all eligible voters may have the opportunity to be informed of the issues in the exercise of their statutory right to vote, all parties to the election should have access to a list of voters and their ad- dresses which may be used to communicate with them Excelsior Underwear Inc., 156 NLRB 1236, NL.R B v Wyman-Gordon Co, 394 U S 759 Accordingly, it is hereby directed that an election eligibility list, containing the names and addresses of all the eligible voters, must be filed by the Employer with the Regional Director for Region 6, within 7 days after the date of issuance of the Notice of Second Election by the Regional Director The Regional Director shall make the list available to all parties to the election No extension of time to file this list shall be granted by the Regional Director except in extraordinary circumstances Failure to comply with this requirement shall be grounds for setting aside the election whenever proper objections are filed TRIAL EXAMINER'S DECISION STATEMENT OF THE CASE HENRY L. JALETTE,, Trial Examiner: These cases involve allegations of independent 8(a)(1) conduct and the alleged discriminatory discharge of two employees in a complaint issued on July 29, 1970,' pursuant to an unfair labor practice charge filed on May 14, by International Brotherhood of Teamsters, Chauffeurs, Warehousemen and Helpers of America, Local Union No. 110, herein called the Union, and objections to conduct affecting the results of an election which had been conducted on May 7, pursuant to a petition filed by the Union on January 20, and a Decision and Direc- tion of election issued on April 3 The tally of ballots in- dicated that of approximately 751 eligible voters 252 had cast votes for the Union and 432 had cast votes against union representation. On May 13, the Union filed timely objections to conduct affecting the results of the election and, on July 31, the Regional Director for Region 6 issued a Supplemental Decision in which he directed a hearing on the objections. On July 31, the Regional Director issued an order consolidating Case 6-CA-5021 and Case 6-RC-5191. The cases were tried in Waynesboro, Pennsylvania, on October 27, 28, and 29. Upon the entire record, including my observation of the witnesses, and after due consideration of the briefs filed by General Counsel, the Union, and the Respondent, I make the following:' FINDINGS OF FACT I THE BUSINESS OF THE RESPONDENT Respondent is a Pennsylvania corporation with its princi- pal office and manufacturing facility located in Waynesboro, Pennsylvania, where it is engaged in the manufacture, sale, and service of machine tools and related products During the 12-month period immediately preceding issuance of the com- plaint, Respondent purchased and received at its Waynesboro Unless otherwise indicated, all dates hereinafter refer to 1970 Counsel for the General Counsel filed a motion to correct the record After due consideration, I conclude that the motion is well made and it is hereby granted The motion to correct the transcript is hereby made part of the record as TX Exh 1 190 NLRB No. 140 758 DECISIONS OF NATIONAL LABOR RELATIONS BOARD plant directly from points outside the Commonwealth of Pennsylvania goods and materials valued in excess of $50,000 . During the same 12-month period , Respondent shipped goods valued in excess of $50,000 from its Waynes- boro plant directly to points outside the Commonwealth of Pennsylvania. II THE LABOR ORGANIZATION International Brotherhood of Teamsters, Chauffeurs, Warehousemen and Helpers of America, Local Union No. 110, is now , and at all times material herein has been , a labor organization within the meaning of Section 2 (5) of the Act. III THE ALLEGED UNFAIR LABOR PRACTICES A. The Independent 8(a)(1) Conduct 1. The interrogation of employees about their gripes and complaints by Respondent President Ralph E. Price It is undisputed that prior to the election on May 7, Re- spondent's president , Ralph E . Price, conducted three meet- ings of employees . The exact dates of these meetings were not established (it is clear one meeting was held May 6), nor is it clear at which of the meetings the alleged unlawful remarks were made . The dates are not important ; the remarks were made after the filing of the petition in Case 6-RC-5191 and before the election , and within the 10(b) period. Several employees ' testified that at one of the meetings Price initiated a question -and-answer session stating that he wanted to know the employees ' gripes and complaints. He told the employees he could make no promises , but he stated in the course of the meeting that he did not think the em- ployees needed the Union to straighten out whatever prob- lems existed , that they could do it among themselves, the company and the employees David Fair testified that, in stating that he wanted to know about their gripes and com- plaints, Price stated that he wanted to know why the fellows would want the Union. Price did not testify, nevertheless Respondent contends that Fair cannot be credited as to that portion of his tes- timony attributing to Price the remark that he wanted to know why the employees would want the Union. Moreover, Respondent contends that "solicitation of employee griev- ances by an employer is not illegal unless accompanied by an express or implied promise of benefits specifically aimed at interfering with , restraining , and coercing employees in their organizational efforts." ITT, Telecommunications, 183 NLRB No. 115. Respondent 's first contention is predicated on the fact that of the employees who testified about the meetings with Price only Fair attributed to him the remark that he wanted to know why the employees would want the Union and that Fair did not include that remark in his pretrial statement . Despite this, and although the finding of a violation does not turn on whether or not Price made that or a similar statement, I am disposed to accept Fair's testimony. It is abundantly clear from the testimony of all the employees that the purpose of the meeting , whether or not it was so stated , was to find out why the employees had sought out a union to represent them. Meetings such as Price held were not regular meetings but were held solely because of the Union 's organizational cam- paign and the employees had every reason to understand this because it is undisputed that Price did tell them they did not need a union , that they could solve their problems by them- selves. ' David Fair , Earl Baer , Ronald Mellott , William Morin , and Charles Bieseacker As to Respondent 's second contention , I conclude that its reliance on ITT, Telecommunications is misplaced . That case is entirely different on its facts. The gravamen of the com- plaint in that case was that the employer had unlawfully interrogated its employees . The complaint allegation in this case is cast in terms of interrogation , which in a sense is an accurate description of Price 's conduct , but the illegality of Price 's conduct lies in the fact that the solicitation of griev- ances, in a preelection context , carries with it the implied promise that the grievance will be remedied.' Price said he could make no promises and no express promises were made. It was not necessary for Price to make express promises. A promise is patently implied when an employer tells employees they do not need a union to straighten out their problems. The record supports only one conclusion : that the purpose of Respondent in soliciting employee grievances was to under- mine the Union. In the circumstances , such conduct con- stituted interference with the right of employees guaranteed by Section 7 of the Act and Respondent thereby violated Section 8(a)(1) of the Act. Texaco, Inc., 178 NLRB No. 72; Eagle-Picher Industries, Inc., 171 NLRB No. 44. 2. The alleged threat by Roy Potts Lee Miller , alleged discriminatee, testified that on an un- specified date after his layoff, while at the used -car lot of one Obie Jones , he overheard a conversation between Jones and Foreman Roy Potts in which Jones asked Potts how many employees had been laid off at Respondent 's plant. Potts replied 26 or 27 and Jones asked him if there would be more and Potts replied that Respondent planned to lay off about 90 more employees . Jones asked if there was a lack of work or "does it have something to do with the union business?" Potts said , "Well, the work isn't as good as it could be and the Union could have something to do with it." General Counsel contends that the remarks of Potts con- stituted a threat of loss of employment because of the implica- tion that the union activities of the employees were the cause of the layoffs In my view , the evidence does not support such a finding . In the first place , at the time Potts made the remark attributed to him by Miller , he was not an agent of Respond- ent. He was merely a supervisor of Respondent engaged in a personal transaction. In my opinion , a violation of the Act cannot be predicated on statements of a supervisor in a pri- vate conversation not intended to be heard or communicated to employees .' Secondly, Miller 's own version of the conver- sation indicates not a threat but the personal conjecture of a low-ranking supervisor who was not privy to Respondent's decisionmaking process insofar as the size of its working force was concerned.' For the foregoing reasons, I shall recommend that para- graph 6(g) of the complaint be dismissed. ' .As a matter of fact, one complaint about the absence of a cutting torch (perhaps a small matter , but nonetheless serious enough to one employee to be voiced) was immediately remedied ' This is not to say that such a statement may not constitute evidentiary support of an employer 's motive for a layoff According to Potts, Jones suggested that the layoffs were occasioned by the union activities at the plant and Potts said, "Well, I wouldn ' t want to quote on that " This is not too different from "the Union could have some- thing to do with it " Potts impressed me as a credible witness, but admitted to such a faulty memory that I accept Miller's version of the conversation, but find no violation LANDIS TOOL COMPANY 759 3. The alleged threat by W. Elliott Angle According to employee Arlen Reed, on an occasion in May 1970, he was on a chore with his supervisor, Ed Washabaugh, and Superintendent Elliott Angle, and Washabaugh and An- gle were talking and Angle remarked to Washabaugh, "We could use two more men." He said, "We would hire two or call back two excepting that the Labor Board has (what did he call it?) involved with the union now and they have pressed charges against us." Both Angle and Washabaugh denied that Angle made any such statement. I was very favorably impressed by Angle's demeanor and, although he was night superintendent, I can- not believe that he was privy to Respondent's councils to have made a statement such as that attributed to him by Reed. Since I credit Angle, perforce I credit Washabaugh. Since I find that Angle did not make the statement at- tributed to him by Reed, I shall recommend that paragraph 6(f) of the complaint, as amended, be dismissed. 4. The allegations concerning Olen Stoops Employee William Monn testified that, on an occasion in early 1970 before the March 20 layoffs, he asked Assistant Foreman Olen Stoops about a meeting of supervisors they had just attended. Stoops told him that Price had told the supervisors to ask each of the employees under his super- vision why each one wanted the union in the shop. Stoops asked Monn his reason and Monn replied for better benefits, better retirement, and seniority. Stoops admitted that Monn asked him about the super- visors' meeting but he denied the remainder of Monn's tes- timony. Respondent contends I should not credit Monn, be- cause he did not include this conversation with Stoops in the prehearing statement, and because it is incredible that a supervisor could make such a statement as Monn described when he was "just returning from a supervisors' meeting where he is told by the Company's attorney he should not interrogate employees about the Union .... As to the first point, I am not persuaded in this instance that it is sufficient reason to discredit Monn. As to the second point, the record does not bear out Respondent's assertion that Stoops was returning from a meeting where company attorneys advised them not to interrogate employees. There were such meetings, but there were also other meetings of supervisors not attended by company attorneys at which Price spoke. This was admitted by Foreman Washabaugh who testified they were to get "across to the people that we have problems and that those problems will try to be resolved as quickly as possible." Washabaugh's testimony further indi- cates that Price wanted to learn from his supervisors what problems the employees had. Under the circumstances, in- cluding the fact that Respondent's own president violated the Act, I can attach no significance to the instructions given by counsel to the supervisors. In the case of Stoops, I was not particularly impressed by his demeanor on the witness stand and I cannot help but note that apart from denying the statements attributed to him by Monn he said almost nothing. Thus, after admitting that Monn asked him about the supervisors' meeting, he testified he replied, "It's about the election-the union campaign." He did not explain what was said at the meeting about the elec- tion and when asked if there was anything else, he replied, "Well not that I remember-I mean , he would ask me ques- tions and I would answer them, but nothing important." Stoops was unduly reticent. I do not credit him. Monn ap- peared to me to be a truthful witness testifying to the best of his recollection. I credit him. Respondent contends that even if Stoops did ask Monn why he wanted the Union, such a "casual question" in nonco- ercive circumstances does not violate the Act. However, the statement made by Stoops before his questioning of Monn was that Price had instructed all supervisors to ask employees such a question. This is not casual conduct. It is systematic. It has no lawful purpose. It was part of Respondent's cam- paign, as exemplified by President Price's own statements in the employee meetings, to impress on employees that the Union was not necessary to redress their grievances. Under all the circumstances, I find the interrogation of Stoops as alleged in paragraph 6(c) of the complaint, as amended, was coercive and violative of Section 8(a)(1) of the Act. 5. The allegations concerning Colin Beegle Employee William Monn also testified that, shortly after his conversation with Assistant Foreman Stoops described above, Foreman Colin Beegle asked him why he wanted a union and Monn told him the same thing he had told Stoops. Beegle told Monn that back in 1946 one Hollengren, then president of Landis Tool, had made the statement that he would shut the gates before he'd let a union come in, and he (Beegle) said he felt that current President Price would follow in the same footsteps and that he would close the gates be- cause he had other plants. Beegle said Price would not negoti- ate and this would cause a strike which Monn could not afford. Beegle denied any conversation with Monn about the Un- ion. To prove that he could not have referred to Hollengren, he pointed out that he was in high school in 1946 at the time Hollengren was president. For this reason, Respondent con- tends I should not credit Monn. In addition, because the interrogation Monn ascribed to Assistant Foreman Stoops above occurred in Beegle's presence, Respondent says there was no need for Beegle to ask the same question. An addi- tional defense is the one I have already rejected relative to the instructions to Respondent's supervisors by its attorneys. Despite these contentions, I do not credit Beegle whose demeanor did not impress me favorably, whereas, as I have previously indicated, Monn appeared to me to be a truthful witness. The fact that Beegle was not working at the plant when Hollengren was president does not negate his having been told of Hollengren's views by others who had been working there in 1946. Monn was likewise not employed at the plant in 1946, yet he heard about Hollengren. He likewise could have heard about him from others, but he claims he heard about him from Beegle. As to the contention that Beegle would not have asked Monn why he wanted the Union because Stoops had allegedly asked him the same question earlier in Beegle's presence, I am not persuaded from a review of the testimony that Beegle was present when Stoops interrogated Monn. Rather, it appears that Beegle at most overheard Monn ask Stoops what had happened at the supervisor's meeting and then he walked away. In accordance with the foregoing, I find that on an occa- sion before the election, Respondent, by its supervisor and agent, Colin Beegle, interrogated an employee about his un- ion sentiments and threatened plant closure if the employees selected the Union as their bargaining representative. By such conduct, Respondent violated Section 8(a)(1) of the Act. 6. The conduct of Ralph Verdier The complaint, as amended, alleges that Ralph Verdier, production manager, created the impression that Respondent was engaged in the surveillance of the employees' union ac- tivities and that he interogated employees about their union activities. 760 DECISIONS OF NATIONAL LABOR RELATIONS BOARD Employee Earl Baer testified that in the latter part of April, Verdier asked him, "How are you and the Union getting along?" Baer replied, "No better than anyone else, I suppose" and Verdier rejoined that he had heard Baer was a pretty strong unionman. Verdier remarked how he thought Baer had been well treated by Landis, and Baer expressed his complaint about his hourly rate of pay considering his years of service and productivity. Verdier adverted to a more senior employee and told Baer he was in line for his job. A few days later, Verdier asked Baer if he had changed his mind about how he was going to vote and Baer replied he might not vote at all. Verdier told him the company wanted him to vote, one way or the other. Verdier admitted speaking to Baer, as to all employees under his supervision, to tell him of the election and that he expected Baer to vote. When Baer told him he might not vote, Verdier told him he should vote regardless of how he voted. Verdier denied asking Baer how he and the Union were get- ting along or remarking he had heard Baer was a strong unionman or asking Baer if he had changed his mind. Apart from its reliance on Verdier's denial, Respondent contends that the statements attributed to him by Baer, if Baer is credited, are not violative of the Act. I do not credit Verdier. I cannot believe that Verdier's conversations with Baer were as innocuous as he suggested. For example, he testified he knew Baer was a unionman because Baer volunteered the information. According to Ver- dier, this came about because Baer asked him not to talk to him within his work area because after he'd leave Baer would be kidded by other employees in the area . Then, after he had testified that Baer volunteered the information he was a un- ionman, Verdier testified, "He didn't say if he was supporting the union or not. He just asked me not to talk to him any- more." This contradictory testimony, as well as the revelation that Verdier talked to Baer frequently enough about the Un- ion to be asked by Baer not to do so, leads me to believe that Baer, who appeared to be a truthful witness, should be cred- ited. Contrary to Respondent's contention, I find that Verdier's statements to Baer were violative of the Act. They were clearly interrogatory, served no lawful purpose, were part of a pattern of interrogation, and occurred in the context of other unfair labor practices. The effects of the interrogation are seen in Baer's remark during the second interrogation that he might not vote at all. Baer had quickly perceived that Verdier's questioning was not a mere casual interest about the forthcoming election. In like manner, the remark that he had heard Baer was a pretty strong unionman cannot help but have caused Baer to believe that his union activities were being surveyed by Verdier. In my judgment, Verdier's con- duct was clearly coercive and tended to restrain Baer from the exercise of his Section 7 rights. I find, therefore, that Respondent, by Verdier's conduct, violated Section 8(a)(1) of the Act as alleged in paragraph 6(b) and (c) of the complaint, as amended. 7 The conduct of Eugene George Alleged discriminatee Lee Miller testified that he had heard that Foreman Ed Washabaugh was telling employees that Miller was a union instigator and he asked Foreman Eugene George if Washabaugh had said anything to him and George told him that Washabaugh had told him the same thing. General Counsel contends that by so reporting to Miller, George created the impression that Respondent was engaged in surveillance of employees ' union activities. Apart from other considerations,' I do not believe that under the circumstances depicted by Miller a violation of the Act can be predicated on George's response to Miller's ques- tion. It is the General Counsel's position that Miller was an outstanding supporter of the Union and Miller admitted to having engaged in union activities on company time and property. On his own testimony, he had heard that Wa- shabaugh was referring to him with other employees as a union instigator. If anything created the impression of sur- veillance, it was Washabaugh's remarks (a matter independ- ently alleged to be violative of the Act), not George's reply to Miller's question. The the extent paragraph 1(b) of the complaint, as amended, relies on this incident I shall recom- mend that it be dismissed. 8. The conduct of Edward Washabaugh Foreman Washabaugh is alleged to have created the im- pression of surveillance of employees' union activities and to have threatened employees with layoff and cessation of Re- spondent's operations if they selected the Union as their bar- gaining representative. Alleged discriminatee Robert Ray testified that either in January or February 1970, Foreman Ed Washabaugh told him and fellow employee Jim Fann that he knew they had signed union cards. He said he was opposed to the Union and that "before the Landis Tool Company would let the union come in, they'd close the doors." Either on this or some other occasion Washabaugh told Ray and Fann that, if the Union got in, there wouldn't be enough work back there for the two of them (Ray and Fann did grind and dress work in the welding department) and one of them would have to go. He made a similar remark about the two inspectors in the department. On one occasion, Washabaugh remarked to Ray and Fann that Lee Miller, an alleged discriminatee, was the union in- stigator. Fann substantially corroborated Ray's testimony. Employee David Fair testified that on March 24 Wa- shabaugh asked him why he wanted the Union and Fair told him it was for better benefits. On one occasion, Washabaugh told Fair and Miller that Price would close the doors to the plant before he'd let the Union in. Miller confirmed that Washabaugh made such a statement, although he described it as a statement to Fair which he overheard. Washabaugh denied the allegations made by Ray, Fann, Fair, and Miller. He admitted talking to some employees about the Union, including Fann, Miller, and Fair, but not Ray. Where allegations of independent 8(a)(1) statements are concerned, deciding on the credibility of witnesses is a par- ticularly vexing problem, generally because there are no ex- trinsic factors to rely on, but only the impression one forms from his observation of the witnesses. On this basis, I credit Fair's testimony that he was interrogated by Washabaugh, and his and Miller's testimony that Washabaugh threatened plant closure before Respondent would let the Union come in. I also credit Fann's and Ray's testimony that Washabaugh told them he knew they had signed cards, that Miller was the union instigator, and that Respondent would close its doors before letting the Union come in. The impression I formed of Washabaugh leads me to believe he would make such state- ments, not because he was told this by Price, but because he believed this himself and felt that he could tell the employees ' Foreman Washabaugh denied telling George that Miller was a union instigator, and George did not testify LANDIS TOOL COMPANY this without violating Respondent's instructions. However, I cannot see any basis for the statements attributed to him by Ray and Fann about the need for only one inspector and one grind and dress man if the Union came in, and I do not credit Ray and Fann with regard to such testimony. Ray did not attribute such a statement to Washabaugh in his prehearing affidavit and I suspect a belated recollection of a statement which conveniently supports the allegations of the dis- criminatory layoff of Ray and Miller. By telling Ray and Fann he knew they had signed union cards and that Miller was the union instigator, Washabaugh created the impression that Respondent was keeping the em- ployees' union activities under surveillance. Such conduct tends to restrain employees in the exercise of their rights under Section 7 of the Act and is violative of Section 8(a)(1) of the Act. Similarly, the threats of plant closure and the interrogation of Fair about his reasons for wanting the Union (interrogation which is found to be clearly coercive in the context of the case and Washabaugh's other conduct) con- stituted conduct violative of Section 8(a)(1) of the Act. B. Respondent's Campaign Literature General Counsel contends that Respondent violated Sec- tion 8(a)(1) of the Act by its preelection campaign literature. He contends that in an April 30 letter to all employees Re- spondent threatened them with the loss of existing benefits unless they refrained from supporting the Union. This con- tention is based on the following excerpts from that letter: Bargaining could begin from "zero" and during the course of good faith negotiations, existing wage rates and benefits could be retained, improved or eliminated." [Emphasis supplied.] * * * * I believe it is good sense not to risk trading away the things you have and the things that can be achieved by cooperative discussion between you and the company, for all the uncertainties this union stands for. In my judgment, it may not be fairly held that the quoted passages constituted threats (thinly veiled or explicit) of loss of existing benefits. In Bray Oil Company, 169 NLRB No. 150, in a letter developing the same theme as here developed, the employer stated "The Company could and would start bargaining from scratch." The letter was found not to contain any threat of reprisal. In Wagner Industrial Products Com- pany, Inc., 170 NLRB No. 157, the Board stated the follow- ing about a more explicitly worded letter: "Further, a reading of the letter as a whole shows that the main thrust of Re- spondent's argument is that the mere designation of a union will not automatically secure to employees a large increase in wages and benefits. There is no specific implication that Re- spondent intended to adopt a bargaining posture offering the employees less than they were then receiving." I conclude that the same statement can be made about Respondent's April 30 letter, and I shall recommend that the allegation of paragraph 6(h) of the complaint, as amended, be dismissed. Between January 22 and May 7, Respondent distributed at least 13 pieces of literature to its employees, and General Counsel contends that by the repeated references therein to strikes Respondent conveyed to employees the impression that strikes were inevitable, and Respondent thereby threat- ened employees with loss of employment if they selected the Union as their bargaining representative. As an example of the tenor and tone of Respondent's re- marks concerning the possibility of strikes and violence, Gen- eral Counsel adverts to the following from a May 1 letter: 761 But there is no way of getting around the fact that to have a union strike you first get a union-and that a union strike is one of the hazards you undertake by bringing in a union. It is also no coincidence that many of the strikes you read about are called by the Teamsters. After all, a strike is the union's ultimate weapon-the only way it can hope to force your company to give all of the things promised by the union organizers when they were trying to win your support. When these de- mands are unreasonable, the likelihood the union will have to use that weapon increases. During such a strike, you cannot collect unemployment insurance benefits. You simply are ineligible for them as long as you voluntarily refuse to work over contract demands. Unfortunately, as day after day passes, and the weeks and perhaps months drag on, your weekly and monthly bills just keep coming in. Grocery and clothing bills, telephone and utility bills, house and car payments, and all the rest, still have to be paid-and few creditors will stand idly by and let payments be missed, especially during a long strike. That's not even the worst of it. First you have to survive two trips a day through a Teamster picket line-and even Teamster members from other plants can be re- cruited to picket. Hundreds of pickets, milling around your car, blocking it as you try to drive in and out of work, kicking it or hitting it with picket signs, and shout- ing obscene and offensive names at you, would make it pretty difficuly [sic] to try to come to work. And then they start the anonymous, threatening telephone calls to you and your family in the middle of the night. In support of his position, General Counsel cites three cases: Brandenburg Telephone Company, 164 NLRB 825; Kawneer Co., 164 NLRB 983; and Boaz Spinning Company, 177 NLRB No. 103. Respondent contends that its literature was protected by Section 8(c) of the Act and counters Gen- eral Counsel's citations by citations of its own; e.g., Ripley Shoe Products Company, 171 NLRB No. 153; Texaco, Inc., 178 NLRB No. 72; Howmet Corporation, 171 NLRB No. 18; Bray Oil Company, 169 NLRB No. 150; Allied/Egry Business Systems, Inc., 169 NLRB No. 60. The Union, relying not only on campaign literature intro- duced into evidence by General Counsel, but also on litera- ture it introduced into evidence in support of its Objection 7, asserts that the election should be set aside and it submits its own list of citations; e.g., Marsh Super-Markets, 140 NLRB No. 83; Aeronca Manufacturing Company, 160 NLRB No. 35; Lincoln Manufacturing Company, 160 NLRB No. 146; General Industries Electronics Company, 146 NLRB 1139; Kawneer Company, 169 NLRB No. 138. I have carefully considered all the cases cited by the parties, as well as others disclosed by my own research, and I con- clude that Respondent's campaign literature did not exceed the boundaries of permissible propaganda. The Board deci- sions in this area offer very little guidance. Compare Boaz Spinning Company, Inc., supra, with Ripley Shoe Products Company, supra. The reason for this absence of meaningful guidlines can be found in Allied/Egry Business Systems, Inc., supra, where the Board stated, "Realizing full well that in all cases such as this one, where one must attempt to fathom the meaning of another's words and assess the impress of such words on employees, reasonable men may differ, we differ with out colleague." 762 DECISIONS OF NATIONAL LABOR RELATIONS BOARD In that case, as in this, the employer did not say that the union must strike to gain reasonable demands, but only that it had no intention of yielding to pressure by the union, such as strikes, where the object of such pressure was unreasona- ble. That employer did not state it would not bargain; nor did Respondent. In my judgment, a close examination of Re- spondent's literature discloses no express or implied promise of benefit or threat of reprisal. I consider aptly descriptive of the Respondent's literature in this case the following state- ment of the Board in Howmet Corporation, supra,: Essentially the Employer's propaganda was a re- minder that there can be disadvantages to union repre- sentation and that it would be wise for the employees to give heed to the disadvantages as well as the advantages in making their choice. And while the Employer did advert to strikes in this connection, we do not think that the content of the campaign material and the manner of its presentation was such as to indicate to employees that the Employer would not honor its statutory obligation to meet and bargain with the Union in good faith should the Union win the election. In the circumstances of this case, we are unable to say that the Employer so tainted the election atmosphere as to preclude the employees from exercising a free choice on the question presented to them at the election. In line with the foregoing, I conclude that Respondent's literature neither violated Section 8(a)(1) of the Act, nor did it taint the election atmosphere as to preclude employees from exercising a free choice in the election. Accordingly, I shall recommend that paragraph 6(i) of the complaint, as amended, be dismissed. C. The Layoff of Robert Ray and Lee Miller Respondent manufactures and sells machine tools. In early 1970, it employed about 800 production and maintenance employees . On March 20 , it laid off 26 employees, including Robert Ray and Lee Miller , both of whom were union sup- porters. ' General Counsel contends that the layoff of Ray and Miller was discriminatorily motivated and Respondent con- tends that it was motivated by economic necessity. General Counsel's position respecting Respondent 's asser- tion of economic necessity is somewhat equivocal . At times, it appeared that he was disputing the existence of any eco- nomic necessity for a layoff , and at other times he appeared to be conceding its existence . In any event , whatever the General Counsel 's position, it is clear that in the period of the layoff Respondent was suffering an economic decline. Thus, whereas new orders had averaged approximately $2,620,000 per month during the fiscal year ending July 31 , 1969, for the 7-month period from August 1969 through February 1970, the average monthly new orders placed had dropped to ap- proximately $1,506,777, or a drop of over $ 1 million per month from the previous 12-month average . At the beginning Contrary to Respondent 's contention , I conclude that the record sup- ports a finding of company knowledge of Ray's and Miller's umon activities In my opinion , the record supports a finding that Foremen Washabaugh and George knew of their union activities , and such knowledge is imputable to Respondent It is true that Washabaugh and George testified that they did not convey their knowledge to Plant Manager Kissinger and that Kissinger testified that he and President Price made the decision to lay off employees and how many to lay off without consulting foremen Be that as it may, it is not essential to General Counsel 's proof that he establish by direct evi- dence that Kissinger knew of Ray's and Miller 's union activities It is suffi- cient that he show knowledge on part of a supervisor Moreover, it is undisputed that Kissinger knew that the union organizational campaign was in progress , and he did not deny knowledge of Ray 's and Miller's union activities Cf. Texas Aluminum Company, Inc v. N.L.R.B., 435 F.2D 917 (CA 5) of its fiscal year in August 1969, Respondent had a backlog of orders in the amount of $23 million. This backlog de- creased steadily to the point that it amounted to $18 million in March 1970. On the basis of the foregoing, one must conclude that there was economic justification for a layoff. However, in a case where an employee is allegedly discharged for cause, it is a truism that proof of the existence of a cause for discharge not preclude a finding that the discharge was motivated by union considerations Similarly here, the fact of an economic de- cline does not preclude a finding that the layoff of March 26 was motivated by union considerations. Certain factors cer- tainly suggest the possibility that the economic decline was seized upon as a pretext to coerce employees (as a group and irrespective of the union sympathies of the individuals se- lected for layoff) to refrain from supporting the Union. To begin with, there is evidence of a strong union animus, includ- ing threats of plant closure. During the 7-month period which is relied on by Respondent to show an economic decline, Respondent had hired approximately 50 employees, includ- ing 7 in January, 1970, 4 of whom were production and maintenance employees. In addition, Respondent had not laid off employees since 1957 or 1958, and at that time it had laid off 500 to 600 employees. In this instance, in laying off 26 employees, Respondent was reducing its work force by approximately 3-1/4 percent. The record does not indicate precisely how the figure of 26 was arrived at (except that the plant manager and president concluded after consultations with supervisors that that number could be spared without hurting production) and one cannot help but marvel at the skill of a management that can determine its personnel needs with such precision. In light of such a stable employment history as Respondent has shown, one cannot help but ask why Respondent did not meet the economic decline by attri- tion, rather than a layoff, or a further reduction in hours (during this period, Respondent had reduced the hours of work from 50 hours per week to 45). In the circumstances, one must be forgiven the suspicion that in this instance Re- spondent used the economic decline as a pretext to coerce employees to refrain from supporting the Union. Since General Counsel has not alleged that the layoff was motivated by union considerations, there is no need to dwell on this possibility. As the case stands, General Counsel must be taken as conceding that the layoff of March 26 was not only supported by economic necessity, but also was moti- vated by that necessity. What General Counsel contends, however, is that whatever economic necessity existed in the case of 24 of the 26 laid-off employees it did not exist as to Ray and Miller. While the matter is one not free from doubt, I conclude that the evidence does not rise above the level of suspicion and that a finding of a violation would require the substitution of the Board's judgment for Respondent's busi- ness judgment. General Counsel enumerates the following factors in sup- port of a finding of a violation: (1) the "layoffs" occurred at the height of the Union's organizational activities; (2) at the time the "layoffs" were made, there was a substantial amount of work that had to be done; (3) employees were permanently transferred into Ray's department to perform his work; (4) a supervisor in addition to other employees was called upon to work overtime to perform Miller's work; (5) a substantial number of employees, including all apprentices, some of whom had less seniority and experience than Ray and Miller, were retained; and (6) Respondent subsequently hired the same number of new apprentices as it had in the past, even though this was contrary to its admitted policy of employing LANDIS TOOL COMPANY 763 apprentices on the basis of current and projected business conditions.' As to (1), the timing of the layoffs has no significance other than the fact that it occurred during an organizational cam- paign, and it is explained by the evidence of an economic decline. As to (2), (3), and (4), it is necessary to detail certain facts. The layoff was made in accordance with seniority, the man with the least plant seniority being selected in those depart- ments in which layoffs occurred. As a result, employees were retained in some departments who had less plant seniority than Ray and Miller. It is undisputed that Ray and Miller were the least senior employees in their departments." Ray was one of two grind and dress men in the welding depart- ment, and Miller was one of two inspectors in the welding department. The record indicates that at the time of Ray's layoff, there were 16 bucks (skids or pallets) of work to be ground and dressed, and employee David Fair testified it took about 2 months to complete this work. At the time of the layoff, Ray was the only regular grind and dress man working, the other (Jim Fann) being absent from March 1 to April 6 due to illness. During this period, Ray was assisted by welders who were rotated to perform that work on a weekly basis. When Fann returned to work (making up for Ray's absence since his March 26 layoff) this practice of assigning welders con- tinued, supplemented by an occasional apprentice, until James Weideman transferred to grind and dress on June 15. Thereafter, Fann and Weideman did the work, still with occasional assistance from welders and apprenctices, until Fann quit in August. About a week later, Wayne Weaver was permanently transferred into grind and dress to replace Fann. Weideman and Weaver have been the two grind and dress men since that time. It is seen from the foregoing that, whatever Respondent's production and personnel needs may have been in other de- partments, there was need for the services of more than one grind and dress man. However, this does not mean that the layoff of Ray was discriminatorily motivated. Until Weide- man transferred into the department on June 15, the work was performed within the department by employees with more seniority than Ray, and the very fact that welders could be taken from their regular jobs to do grind and dress work indicates a reduced need for employees in the welding depart- ment. As far as apprentices are concerned, it is customary for apprentices to be assigned to production work as part of their training, and the record does not support a finding that there was any significant increase in such assignments. As to Weideman's transfer, it occurred several weeks after the layoff when it developed that work was slack in Weideman's department. Weideman had more seniority than Ray. Fi- nally, whatever Respondent's needs it has not hired any new employees (excepting apprentices) since the layoff, and it can be assumed that the reduction in the work force has been further aggravated by attrition. ' I am not setting forth separately the Union's arguments in support of a finding of a violation . Those arguments are not essentially different from those of General Counsel and while they are well presented they do not require separate discussion ' Technically, one employee in the inspection department, F A Shank, was junior to Miller But Miller worked as an inspector in the welding department and Shank worked in another department and performed in- spection work entirely different from that performed by Miller In the cir- cumstances, I can draw no inference of discriminatory motive from the fact Respondent laid off Miller, instead of Shank In Miller's case, after his layoff the only remaining inspec- tor in the welding department was Bloom who had more seniority than Miller. After Miller's layoff, Bloom continued as the only inspector in the welding department for about 6 weeks when he was transferred to other work. During that 6-week period, Bloom did both his own inspection work, plus that formerly performed by Miller, with the assistance, how- ever, of other inspectors and assistance from his foreman. As to the foreman's assistance, it is clear that it was rendered because Bloom was unfamiliar with the inspection required on certain pieces. To the extent the foreman did production work, he did not do so regularly or continually. As to the assistance from other inspectors, the record indicates that about the time of Miller's layoff, Bloom was absent from work for 3 days because of illness, and inspection work was performed by first-shift inspector Brake who worked 4 hours overtime (6 to 10 p.m.) and by second-shift inspector Hat who would transfer from his regular job in the boring depart- ment from 10:30 p.m. to 2:30 a.m. After Bloom returned, he continued to receive assistance from both Brake and Hat, but not on any set routine, nor both on the same day. As in Ray's case, the foregoing indicates some need for more than one inspector in the welding department, a need that could have been fulfilled by Miller's retention. It is clear, however, that there was insufficient work to occupy two in- spectors on a full-time basis and no new employees have been hired. A finding that Respondent should have retained Miller, who was the most senior of the 26 employees laid off, could only be supported by a substitution of the Board's judgment for that of Respondent as to its method of running its business. Respondent's decision to reach as deep as it did in laying off Miller strongly suggests an unlawful motive, but considering the record as a whole I cannot say that General Counsel has established a case by a preponderance of evi- dence. I have not yet disposed of General Counsel's points (5) and (6) relative to apprentices. Little need be said in this regard other than that Respondent has an apprenticeship program of many years standing which is highly structured and for- mal. In my judgment, Respondent was fully justified in ex- empting the apprentices from the layoff, and no inference of unlawful motive may be drawn either from its failure to do so, or the fact that it began a new apprenticeship class after the layoff. In accordance with the foregoing, I shall recommend that the allegations of the complaint respecting the layoff of Ray and Miller be dismissed. IV THE OBJECTIONS As noted earlier, the Union filed objections to conduct affecting the results of the election. These were seven in num- ber, but Objections 1, 2, 3, 4, and 6 have been withdrawn. The remaining objections are as follows: 5. The employer held periodical meetings during the time of employment and did not deduct any wages for these meetings, which constituted an unfair labor prac- tice in that they granted remuneration to the employees in order to influence their voting. 7. The employer distributed literature which was mis- leading, slanderous and beyond the right of free speech and free press, which was in violation of the law, and which constituted an unfair labor practice. As to Objection 5, it is undisputed that the meetings at which President Price spoke to the employees, as described earlier, were held on company time and that the employees were paid their regularwages for the time spent at the meet- ings. The Union contends that the payment of employees for attendance at these meetings, where there had never previ- 764 DECISIONS OF NATIONAL LABOR RELATIONS BOARD ously been any similar in-plant meetings, coupled with Re- spondent's expressed antiunion posture and unlawful con- duct, constituted an economic inducement to the employees affecting the results of the election. In support of this conten- tion, the Union relies on U-Tell Corporation, 150 NLRB 1534. Whatever Price may have said in the employee meetings and whatever other unfair labor practices Respondent com- mitted are issues totally separate from Respondent's payment of wages to employees for time spent in attendance at meet- ings held to oppose the Union's attempt to obtain certifica- tion. In this objection, the Union in effect is seeking a finding that the holding of employee meetings on company time is grounds for setting aside an election. Peerless Plywood Com- pany, 107 NLRB 427, clearly indicates otherwise unless the meetings are held within 24 hours of the election, which was not the case here. Accordingly, I find no merit in Objection 5. Objection 7 presents the same issue already considered as an unfair labor practice under Section 8(a)(1) of the Act. The considerations that moved me to conclude that the literature did not violate Section 8(a)(1) of the Act persuade me that the literature constituted permissible campaign propaganda which did not interfere with the exercise of a free and unco- erced choice by the employees in the election of May 7. Although I find no merit in Objections 5 and 7, the only specified objections remaining of the seven originally filed, I shall nevertheless recommend that the election be set aside because of the acts of interference, restraint, and coercion which I have found earlier in the discussion of Respondent's 8(a)(1) conduct. That the 8(a)(1) conduct was to be consid- ered as grounds for setting aside the election was set forth in the Regional Direcor's Supplemental Decision and Order Directing Hearing on Objections, in which the Regional Di- rector noted that his investigation had disclosed testimony that supervisors had threatened employees with loss of em- ployment if they supported the Union, created the impression of surveillance of union activities, interrogated employees, and threatened employees with loss of benefits. These matters had not been specifically alleged in the objections, but the Regional Director correctly noted that his jurisdiction was not limited to the specific objections (citing Carter-Lee Lum- ber Company, 119 NLRB 1374) and the alleged 8(a)(1) con- duct was included among the issues to be considered in deter- mining whether or not the election should be set aside. On the basis of the findings of 8(a)(1) conduct set forth earlier, I shall recommend that the election of May 7 be set aside and that a second election be directed. V THE EFFECT OF THE UNFAIR LABOR PRACTICES UPON COMMERCE The activities of the Respondent set forth in section III, above, occurring in connection with its operations described in section I, above, have a close, intimate, and substantial relationship to trade, traffic, and commerce among the sev- eral States and tend to lead to labor disputes burdening and obstructing commerce and the free flow of commerce. VI THE REMEDY Having found that Respondent has engaged in unfair labor practices in violation of Section 8(a)(1) of the Act , I shall recommend that it be ordered to cease and desist therefrom and to take certain affirmative action designed to effectuate the policies of the Act. In accordance with the Regional Director 's Supplemental Decision and Order Directing Hearing on Objections, I recommend that the Union 's Objections 5 and 7 be overruled, but by reason of the independent 8(a)(1) conduct found herein I recommend that the election be set aside and that a new election be held at such time as the Regional Director deems appropriate. CONCLUSIONS OF LAW 1. Landis Tool Company, Division of Litton Industries, is an employer engaged in commerce within the meaning of Section 2(6) and (7) of the Act. 2. International Brotherhood of Teamsters, Chauffeurs, Warehousemen, and Helpers of America, Local Union No. 110, is a labor organization within the meaning of Section 2(5) of the Act. 3. By interrogating employees about their union sympa- thies or desires and creating the impression of surveillance of their union activities, by threatening employees with plant closure, and by soliciting employee complaints and griev- ances , Respondent engaged in and is engaging in unfair labor practices within the meaning of Sections 8(a)(1) and 2(6) and (7) of the Act. 4. Respondent has not engaged in unfair labor practices within the meaning of Section 8(a)(1) of the Act as alleged in paragraphs 6(g), (f), (h), and (i) of the complaint, as amended. 5. General Counsel has not established by a preponderance of evidence that the layoff of Robert Ray and Lee Miller was violative of Section 8(a)(1) and (3) of the Act. Upon the foregoing findings of fact, conclusions of law, and the entire record, and pursuant to Section 10(c) of the Act, I hereby issue the following recommended: ORDER" Respondent, Landis Tool Company, Division of Litton Industries, its officers agents, successors, and assigns, shall: 1. Cease and desist from: (a) Soliciting employee complaints and grievances and im- pliedly promising them improvements in working conditions to induce them to withhold assistance and support to Interna- tional Brotherhood of Teamsters and Chauffeurs, Ware- housemen and Helpers of America, Local Union No. 110, or any other labor organization. (b) Threatening employees with plant closure if they select the above-named labor organization, or any other labor or- ganization, as their exclusive representative for purposes of bargaining with regard to wages, hours, or other terms or conditions of employment. (c) Creating the impression of surveillance of the union activities of employees by telling employees it knew they had signed union cards or referring to employees as union instiga- tors. (d) Interrogating employees about their union sympathies or desires in a manner constituting interference, restraint, or coercion in violation of Section 8(a)(1) of the Act. (e) In any like or related manner interfering with, restrain- ing, or coercing its employees in the exercise of their rights to self-organization, to form, join, or assist the above-named labor organization, or any other labor organization, to bar- gain collectively through representatives of their own choos- ing, and to engage in concerted activities for the purpose of collective bargaining or other mutual aid or protection as guaranteed by Section 7 of the Act, or to refrain from any or all activities. " In the event no exceptions are filed to this recommended Order as provided in Sec. 102.46 of the Rules and Regulations of the National Labor Relations Board, the findings , conclusions and recommended Order herein shall, as provided by Sec 10(c) of the Act and in Sec 102 48 of the Rules and Regulations, be adopted by the Board and become its findings, conclu- sions, and order, and all objections thereto shall be deemed waived for all purposes LANDIS TOOL COMPANY 765 2. Take the following affirmative action designed to effectu- ate the policies of the Act. (a) Post at its Waynesboro, Pennsylvania, plant, copies of the attached notice marked "Appendix."" Copies of said notice, on forms provided by the Regional Director for Re- gion 6, after being duly signed by Respondent's authorized representative, shall be posted by the Respondent immedi- ately upon receipt thereof, and be maintained by it for 60 consecutive days thereafter, in conspicuous places, including all places where notices to employees are customarily posted. Reasonable steps shall be taken by Respondent to insure that said notices are not altered, defaced, or covered by any other material. (b) Notify the Regional Director for Region 6, in writing, within 20 days from the receipt of this Decision, what steps have been taken to comply herewith." As to the allegations of the complaint found not to have been supported by the evidence, it is recommended that they be dismissed " 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 " " In the event that this recommended Order is adopted by the Board after exceptions have been filed, this provision shall be modified to read "Notify said Regional Director, in writing, within 20 days from the date of this Order, what steps the Respondent has taken to comply herewith " To form, join, or help unions To bargain collectively through a representative of their own choosing To act together for collective bargaining or other mutual aid or protection To refrain from any or all of these things. WE WILL NOT do anything that interferes with those rights. More specifically, WE WILL NOT question you about your union senti- ments or desires. WE WILL NOT create the impression we are watching you in your union activites by referring to employees as union instigators or telling employees we know about their union sympathies WE WILL NOT solicit your gripes and grievances and impliedly promise to improve working conditions to dis- courage you from selecting a union to represent you. WE WILL NOT threaten to close the plant if you select International Brotherhood of Teamsters, Chauffeurs, Warehousemen and Helpers of America, Local Union No. 110, or any other union, to represent you. You are free to become and remain members of Interna- tional Brotherhood of Teamsters, Chauffeurs, Warehouse- men and Helpers of America, Local Union No. 110, or any other labor organization. APPENDIX NOTICE To EMPLOYEES POSTED BY ORDER OF THE NATIONAL LABOR RELATIONS BOARD An Agency of the United States Government After a trial in which both sides had the opportunity to present their evidence, the National Labor Relations Board has found that we violated the law and has ordered us to post this notice. The Act gives all employees these rights- To engage in self-organization Dated By LANDIS TOOL COMPANY DIVISION OF LITTON INDUSTRIES (Employer) (Representative) (Title) This is an official notice and must not be defaced by any- one. 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, 1536 Federal Building, 1000 Liberty, Pittsburgh, Pennsylvania 15222, Telephone 412-644-2977. Copy with citationCopy as parenthetical citation