Local 47Download PDFNational Labor Relations Board - Board DecisionsMay 24, 1955112 N.L.R.B. 923 (N.L.R.B. 1955) Copy Citation LOCAL 47 923 In the light of the foregoing findings of fact , and upon the entire record in the case, I have reached the following: CONCLUSIONS OF LAW 1. L. C. Products, Inc., is , and at all times material herein was, engaged in com- merce within the meaning of Section 2 (6) and (7) of the Act. 2. United Construction Workers of America, affiliated with United Mine Workers of America, is a labor organization within the meaning of Section 2 (5) of the Act. 3. The allegation of the complaint that Respondent discriminatorily discharged Mary Gardner , Mary Jean Chesser , Zaluma Idelwine , and June Blake "because of their lawful strike action and other concerted activities " and thereafter refused to em- ploy them , in violation of Section 8 (a) (3) of the Act, was not sustained. 4. The allegation of the complaint that Respondent promised "its employees an increase in wages and improvement in working conditions in order to forestall the organization of a Union" was not sustained. 5. By virtue of its superintendent 's surveillance of a union meeting and statements, in the nature of an expression of opinion to that effect , by said superintendent and the night foreman, made to certain employees coupled in some instances with im- proper interrogation , that the plant would be moved to some other city before the Company would allow a union in the plant , Respondent has interfered with, restrained, and coerced the aforesaid employees in their exercise of rights guaranteed in Section 7 of the Act, and has thus engaged in unfair labor practices within the meaning of Section 8 (a) (1) of the Act. 6. The aforesaid unfair labor practices are unfair labor practices affecting commerce within the meaning of Section 2 (6) and (7) of the Act, as amended. [Recommendations omitted from publication.] Local 47, International Brotherhood of Teamsters , Chauffeurs, Warehousemen and Helpers of America , AFL, and its agents Glenn Bailey and H. Blankenship and Texas Industries, Inc. and T. C . Bateson Construction Company, Party to the Contract Local 47, International Brotherhood of Teamsters , Chauffeurs, Warehousemen and Helpers of America , AFL, and its agents Glenn Bailey and H . Blankenship and McCann Construction Company, Inc. Cases Nos. 16-CC-34 and 16-CC-43. May 24, 1955 DECISION AND ORDER On November 29, 1954, Trial Examiner Stephen S. Bean issued his Intermediate Report in the above-entitled proceedings, finding that the Respondents had engaged in certain unfair labor practices, and recommending that they cease and desist therefrom and take certain affirmative action, as set forth in the copy of the Intermediate Report attached hereto. Thereafter, the Respondents filed exceptions to the Intermediate Report and a supporting brief. 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 hereby affirmed. The Board has considered the Interme- diate Report, the exceptions and brief, and the entire record in these cases and hereby adopts the findings, conclusions, and recommenda- tions of the Trial Examiner with the following modifications and additions : 112 NLRB No. 111. 924 DECISIONS OF NATIONAL LABOR RELATIONS BOARD 1. As found by the Trial Examiner, the individual Respondents, acting as agents for the Respondent Union, presented to the general contractors, Bateson and McCann, a proposed contract which pre- scribed wage rates and other terms of employment for truckdrivers and, in addition, provided as follows : It is further agreed that any subcontractor engaged to perform work covered by this agreement for employer shall assume all terms and conditions of this agreement. When Bateson and McCann refused to sign the proposed contract because it contained the above clause, the Respondent Union picketed their construction jobs. On the basis of the foregoing. and because the individual Respondents accompanied their contract demands with statements indicating that the quoted clause was aimed at specific sub- contractors (Texas and Hall), the Trial Examiner found that the ob- ject of the picketing was to force Bateson and McCann to cease doing business with Texas and Hall, and that the Respondents had therefore violated Section 8 (b) (4) (A) of the Act. The Respondents contend in their exceptions that the object of the picketing was not to stop dealings between the general contractors and Texas or Hall but that the picketing of Bateson and McCann was merely in furtherance of a primary dispute between them and the Union over the Union's demands for wage increases and for protec- tion against "undercutting" of the proposed wage rates by subcontract- ing of work to nonunion firms. However, it is clear from the record that the dispute was not over wage increases for direct employees of Bateson and McCann, for each of them had only one, part-time truck- driver and both Bateson and McCann had manifested their willing- ness to grant such drivers the increase. requested by the Union. Nor was the Union concerned, in our opinion, with protecting the wage standards of these few part-time drivers against undercutting by sub- contractors. Rather, we are convinced, upon the entire record, that the Union's immediate object was to raise the wage levels of truckdriv- ers employed by subcontractors of Bateson and McCann. As the dis- pute was therefore not over terms of employment of employees of Bateson or McCann nor over the protection of employment standards or jobs of such employees against subcontracting, we find that there was no primary dispute between the Union and the general contractors and that the Union picketed them as secondary employers.' We find further that the Union's demand for adoption of the "subcontractor clause" necessarily contemplated that the general contractors would be precluded by that clause from dealing with such subcontractors as might refuse to abide by the terms of the Union's contract with Bate- 1 See N L R B V Denver Bldg cC Construction Trades Council, 341 U S 675, 688. LOCAL 47 925 son and McCann. To that extent, at least, it is clear that it was an object of the Union in picketing Bateson and McCann to force them to cease doing business with Texas and Hall .2 Accordingly, we find that the Union's object falls within the proscription of Section 8 (b) (4) (A). 2. The Trial Examiner found that the Respondents had violated Section 8 (b) (4) (A) of the Act by, inter alia, presenting to Bateson and McCann a contract proposal containing the "subcontractor clause," and he, accordingly, included in his recommended order a provision requiring the Respondents to cease and desist from causing or attempting to cause Bateson or McCann to accept such a clause. We do not adopt either the foregoing finding or the foregoing recom- mended remedy. The Act prohibits inducement of employees only, not of employers,' when an object of such inducement is to force or require "any employer . . . to cease doing business with any other person." 3. The Trial Examiner found that by conducting the picketing for the subcontractor clause the Respondents also violated Section 8 (b) (4) (B) of the Act. The Respondents except. As adoption of this finding would not affect the scope of our order herein, we do not deem it necessary to pass on the validity of the Trial Examiner 's determina- tion with respect to Section 8 (b) (4) (B). ORDER Upon the entire record in these cases, and pursuant to Section 10 (c) of the National Labor Relations Act, the National Labor Rela- tions Board hereby orders that the Respondent Union, its officers, agents, successors, and assigns, and the individual Respondents shall : 1. Cease and desist from : (a) Inducing or encouraging employees of T. C. Bateson Construc- tion Company or McCann Construction Company, Inc., or any other employer to engage in a strike or concerted refusal in the course of their employment where an object thereof is to force or require T. C. Bateson Construction Company or McCann Construction Company, 2Insofar as the Trial Examiner found, or implied , that the Union was unalterably opposed to any dealings between the general contractors and Texas or Hall, we do not agree The record establishes , in our opinion , that whatever animus the Union 's agents may have felt or expressed toward Texas or Hall , the sole object of the picketing was to force the general contractors to cease doing business with Texas and Hall only if they refused to adopt the wage rates in the Union ' s proposed contract with the general con- tractors In our opinion , however, even such a "conditional " object is pioscribed by Section 8 (b) (4) (A), where the primary employers , as in the case of Texas and Hall, are in existence and identified whether the Union ' s picketing also violated 8 (b) (4) (A) insofar as it sought to regulate future dealings by Bateson and McCann with such sub- contiactors ( not as yet identified ) as might refuse to meet the Union 's wage standards, is a question which we need not and do not decide 3 Kwisey Manufactsi tnq Co , 89 NLRB 1168 , Rabouin v N L R B , 195 F 2d 906, 912 (C A 2) , Sealriglct Pacific, Ltd . 82 NLRB 271, footnote 4 926 DECISIONS OF NATIONAL LABOR RELATIONS BOARD Inc., or any other employer to cease doing business with Texas Indus- tries, Inc., or J. W. Hall Construction Co. 2. Take the following affirmative action, which the Board finds will effectuate the policies of the Act : (a) Post at the business office of Respondent Union copies of the notice attached hereto marked "Appendix." Copies of said notice, to be furnished by the Regional Director for the Sixteenth Region, shall, after being duly signed by a representative of the Respondent Union and by the individual Respondents, be posted immediately upon receipt thereof and maintained for a period of sixty (60) consecutive days thereafter in conspicuous places including all places where notices to members of the Respondent Union are customarily posted. Reason- able steps shall be taken by Respondents to insure that such notices are not altered, defaced, or in any way covered. (b) Mail to the Regional Director for the Sixteenth Region signed copies of the notice attached hereto as Appendix " for posting, Bate- son and McCann being willing, at their offices and sites of construction operations, in places where notices to employees of those concerns are customarily posted. (c) Notify the Regional Director for the Sixteenth Region in writ- ing, within ten (10) days from the date of this Order, as to what steps they have taken to comply herewith. MEMBER LEEDOM took no part in the consideration of the above De- cision and Order. * In the event that this Order is enforced by decree of a United States Court of Appeals, there shall be substituted for the words "Pursuant to a Decision and Order " the words "Pursuant to a Decree of the United States Court of Appeals, Enforcing an Order " APPENDIX NOTICE To ALL MEMBERS or LOCAL 47, INTERNATIONAL BROTHERHOOD OF TEAMSTERS, CHA UFFEURS, WAREHOUSEMEN AND HELPERS OF AMERICA, AFL Pursuant to a Decision and Order of the National Labor Relations Board, and in order to effectuate the policies of the National Labor Relations Act, we hereby notify you that: WE WILL NOT induce or encourage the employees of T. C. Bate- son Construction Company, or McCann Construction Company, Inc., or any other employer, to engage in a strike or concerted refusal in the course of their employment to perform any service for their respective employers, where an object thereof is to force or require T. C. Bateson Construction Company or McCann Con- struction Company, Inc., or any other employer to cease doing LOCAL 47 927 business with Texas Industries , Inc., or J. W. Hall Construc- tion Co. LOCAL 47, INTERNATIONAL BROTHERHOOD OF TEAMSTERS, CHAUFFEURS, WAREIIOUSE- MEN AND HELPERS OF AMERICA, AFL, Union. Dated---------------- By------------------------------------- (Repiesentative ) ( Title) Dated---------------- By------------------------------------- (Glenn Bailey) Dated------ ---------- By------------------------------------- (11. Blankenship) INTERMEDIATE REPORT AND RECOMMENDED ORDER STATEMENT OF THE CASE Upon charges and amended charges filed by Texas Industries, Inc., herein called Texas, in Case No. 16-CC-34 and a charge filed by McCann Construction Company, Inc., herein called McCann, in Case No. 16-CC-43, the General Counsel for the National Labor Relations Board, by the Regional Director for the Sixteenth Region (Fort Worth, Texas), on September 2, 1954, entered an order consolidating the two cases and issued a complaint against Local 47, International Brotherhood of Team- sters, Chauffeurs, Warehousemen and Helpers of America, AFL, herein individually called the Union, Respondent Union, or Respondent, and its agents Glenn Bailey and H. Blankenship, herein individually called Bailey and Blankenship or Respondent Agents, all three being herein collectively called Respondents, alleging that Respond- ents had engaged in unfair labor practices within the meaning of Section 8 (b) (4) (A) and (B) and Section 2 (6) and (7) of the National Labor Relations Act, 61 Stat. 136, herein called the Act. The gist of the complaint is that Respondents have induced and encouraged em- ployees of T. C. Bateson Construction Company, herein called Bateson, and em- ployees of McCann, and employees of Bateson's and McCann's subcontractors and employees of other employers to engage in concerted picketing or strikes with an object to force and require Bateson and McCann and other employers or persons to cease doing business with Texas and J. W. Hall Construction Company, herein called Hall, and to force or require Texas and Hall to recognize or bargain with Respondent Union which was not certified as the collective-bargaining representative of their employees. Respondents filed a combined motion to dismiss and answer in which they ad- mitted the Union is a labor organization, that Bailey and Blankenship are its agents, and the factual allegations respecting the business operations of Texas, Bateson, Hall, and McCann. Respondents admitted the Union has been engaged in a labor dispute with Fort Worth Sand and Gravel Company (a division of Texas) i arising from the failure of Texas to agree to execute a collective-bargaining agreement, but denied that the Union has been engaged in a labor dispute with Texas or Hall to secure recognition as collective-bargaining representative of any employees or to compel Hall to bargain with it Respondents admitted the Union has not been certified as the representative of any employees of Texas or Hall. Respondents admitted that the Union picketed Bateson and McCann and averred that the picketing against Bateson was in pursuance of a bona fide primary labor dispute, and that the picketing against McCann was in pursuance of a bona fide labor dispute between McCann and the Union. Respondents admitted that Respond- ent Agents, on behalf of the Union, presented to Bateson's agent and to McCann a contract proposal providing that any subcontractor engaged by them to perform work covered by the agreement should assume all the terms and conditions of the agreement and averred that the Union and Bateson agreed to the proposal upon the i There is frequent mention in the record to Fort Worth Sand and Gravel Company. To avoid confusion this report will herein name only Texas although the case is only con- iā¢erned with operations of its Fort Worth Sand and Gravel division 928 DECISIONS OF NATIONAL LABOR RELATIONS BOARD addition of a provision that Bateson would urge its subcontractors to pay the wages and observe the working conditions provided in the contract. Pursuant to notice, a hearing was held before me at Fort Worth, Texas, on Septem- ber 28, 29, and 30, 1954. The General Counsel and Respondents were represented by counsel. Full opportunity to be heard, to examine and cross-examine witnesses, and to introduce evidence was afforded the parties. At the close of the hearing, counsel argued orally and since then have filed briefs which have been carefully considered. Respondents' first motion filed with their answer, a motion to dismiss an allegation of the complaint respecting the presentation of a contract proposal to Bateson and McCann providing for the assumption of its terms by their subcontractors on the grounds that such conduct is not violative of the Act, was denied. It appears to me that it could be found, depending on the turn of the evidence, that acceptance of the provision would have the effect of forcing and requiring Bateson and McCann to cease doing business with their subcontractors and other persons. Under leave reserved, Respondents renewed the motion after the General Counsel had rested and the motion was taken under advisement. It, as well as are other motions made during the course of the hearing on which rulings were reserved, is disposed of in accordance with the findings of facts and rulings of law made below. Respondents' second motion filed with their answer, a motion to dismiss the com- plaint, insofar as it relates to conduct concerning Bateson and Hall, on the ground of a settlement of the dispute between them and a cessation of picketing since July 23, 1954, and an asserted consequent mootness of the complained-of matters, was denied It appears to me that a basic legal issue is involved concerning which it is desirable not only that the parties to this case but employers whom the Respondent Agents announced at the hearing they intend to picket should a restraining order be dissolved in Case No. 16-CC-43 or the Board should permit picketing, as well as employers and labor organizations in general, should be advised of their legal rights and obligations. Upon the entire record in the case, and from my observation of the witnesses, I make the following: FINDINGS OF FACT I THE BUSINESS OF THE COMPANIES Texas is a corporation existing under and by virtue of the laws of the State of Texas. Through its above-mentioned division, Fort Worth Sand and Gravel Com- pany, this company is engaged among other things in the production and sale of building materials including ready-mix concrete. It operates sand and gravel pits and ready-mix concrete plants among its other operations in Fort Worth and vicinity and also operates similar or related businesses at other locations including sites in the State of Louisiana. During the past 12-month period it regularly and frequently in the course of its business operations shipped products in a total volume in excess of $250,000 across State lines. Bateson is a corporation existing under and by virtue of the laws of the State of Texas. It is at present under contract with the Corps of Engineers, United States Army, to construct an aircraft hangar, an installation of vital concern to the national defense, at Carswell Air Force Base, Fort Worth, Texas, herein called the Carswell Project. The cost of construction of the Carswell Project is approximately $2,500,000. Bateson is at present engaged in similar construction in at least seven other States. Bateson has or will purchase from Texas, concrete in excess of $50,000 for use in the construction of the Carswell Project. Hall is a general contractor under contract with Bateson for construction and the hauling of certain materials to the Carswell Project. McCann is a general contractor at present constructing projects in the States of Texas and Louisiana. It is under contract in an amount exceeding $500,000 with the Federal Housing Administration for the demolition of defense buildings at Camp Polk, Louisiana, and their reerection at Chase Naval Field, Beeville, Texas. McCann is also under contract with the Fort Worth Independent School District for the erection of a new school known as R. L. Paschal Senior High School, herein called the Paschal Project, the cost of which construction approximates $1,200,000 with $550,000 in value of material being shipped directly to the Paschal Project from States outside the State of Texas. I find that Texas, Bateson, and McCann are engaged in commerce within the meaning of Section 2 (6) and (7) of the Act and that a threat of industrial strife to their operations and those of Hall would substantially burden and obstruct inter- state commerce and the free flow of interstate commerce. LOCAL 47 929 II THE LABOR ORGANIZATION INVOLVED AND ITS AGENTS The Union is a labor organization within the meaning of Section 2 (5) of the Act and Bailey and Blankenship are its agents. III. THE UNFAIR LABOR PRACTICES 2 A. Introduction Early in 1954 the Union attempted to set up an owner-operators ' association among independently contracting dump truck owner-operators of whom there were esti- mated to be 300 to 400, constituting 75 percent to 85 percent of the total number of individuals engaged in dump truck driving in the Fort Worth area. This attempt failed of success and such owner -operators as had signified a desire to join the asso- ciation were taken in as direct members of the Union. On May 17, 1954, Haskell Blankenship was hired as assistant to the business agent of the Union, Glenn Bailey, with sole duties in connection with the building and construction industry. On May 20, 1954, the Fort Worth chapter of the Associated General Contractors of America, with whom the Union had sought a meeting, wrote Bailey that it saw no reason or cause to meet with the Union since none of its members employed truck- drivers and teamsters and suggested that the Union negotiate directly with the indi- vidual firms employing such workers. The Union was unable to get meetings with a number of these individual firms employing truckdrivers; instead of attempting to deal further with them, it decided to approach general contractors whose subcontractors employed truck operators or sublet trucking work out to still other firms. In following this course, on July 9, 1954, the Union picketed Bateson's Carswell Project where Texas was one of Bateson's supplying subcontractors and, as above appears, Hall was one of Bateson's hauling subcontractors, and on August 9, 1954, picketed McCann's Paschal Project where Joe Starks Construction Company, herein called Starks, was McCann's excavating subcontractor, and Joe H. Rhodes Company, herein called Rhodes, who purchased concrete from Texas, was McCann's concrete work subcontractor. In brief, the General Counsel contends that this picketing was violative of the statute in that Respondents sought to cause Bateson and McCann to cease doing business with Texas and Hall; Respondents contend that their purpose in picketing was to obtain a contract from Bateson and McCann rather than to attempt to cause them to cease doing business with Texas, Hall, or anybody else, that the Union had bona fide primary labor disputes with Bateson and McCann because each and its various subcontractors constituted a single integrated operation, and that, accordingly, they did not engage in conduct violative of the Act. B. The Union's dealings with Bateson Sometime apparently shortly after May 20, Blankenship visited Robert E. Spears, Bateson 's general superintendent, at the Carswell Project and stated he was trying to organize a teamsters union locally and that he would be glad to furnish Bateson with any truckdrivers it might need. Bateson required the services of but one part-time directly employed truckdriver who operated a vehicle picking up rubbish or materials and shoveling it around the building. Spears told Blankenship that Bateson did not need this driver often but when it did he was sufficient for the job in hand and that Bateson needed no others. Blankenship took no position concerning and made no issue respecting this part-time operator At this time Blankenship handed Spears a copy of a contract proposal containing a clause binding an employer to agree that any of his subcontractors shall assume all the terms and conditions of the contract Spears told Blankenship he had no authority to sign a contract but that Bateson would abide by the wages and working conditions that come under the Union's jurisdiction. During the evening of July 2, Blankenship telephoned Bateson's president, T. C. Bateson, at his home and stated he had been endeavoring to get Spears' assistance in unionizing truckdrivers, that the Union had owner-operators who could haul material 2Theie was a taii13 general agreement with respect to the facts Occasionally conflicts arose, for the greater part more attubutable, in my opinion, to variances in recollection as to at what particular meeting a given subject was discussed than to what Respondents chose to term "embroidery " It is not to be expected, since people do not always gi asp the significance of statements in the same way, that all persons piesent at a given time should give heed to, let alone remember of narrate, eveiything that was uttered isith equal precision, completeness, or emphasis That all witnesses on one side or another should completely corroborate one another in every respect could be a cause for wonder, if not suspicion 930 DECISIONS OF NATIONAL LABOR RELATIONS BOARD just as well as nonunion drivers, and that he did not want to picket Bateson's Cars- well Project but would have to unless something was done. Bateson told Blanken- ship that he would talk to Spears and try to lend his company's assistance in order to avoid a strike. The following morning Blankenship again met Spears and told him he had talked with Bateson about using union truckdrivers on the job, that Texas was unfair, that something had been suggested in the telephone talk about Bateson buying from another supplier, Central Concrete Company, who was fair, that Bateson was one of Texas' biggest buyers, and it appeared the Union would have to picket Bate- son's Carswell Project. On July 7 Blankenship, in company with Bailey, visited Spears and asked him if he had heard from Bateson about buying concrete from Central Concrete Company or Industrial Concrete Company. Spears replied that he had not heard from Bateson. Blankenship then asked who was going to do the dirt work on the hangar floor and just about the time he was informed that this job had been sublet to Hall, the latter's superintendent, James G. Hess, arrived Upon inquiry Hess informed Blank- enship that Doyle Gilbert Company was Hall's supplier A day of two later, Blank- enship said to Hess that one Petrie who Doyle Gilbert had informed him was going to do the hauling was nonunion and Bailey, who was with Blankenship, said to Hess that the Union was going to get that hauling if it had to picket the whole Carswell Air Force Base. On an evening just before picketing started on July 9, Bateson received a second telephone call from Blankenship who said Spears had not done anything about straight- ening up Texas and Hall and that unless something were done about it, the Union was going to have to picket the job; Bateson replied that the company would try to lend assistance to avoid picketing because it had just gone through a bad strike and wanted to avoid further labor difficulties. On the morning of July 9, 1954, the Union placed a picket-bearing a sign stating "T. C Bateson Construction Company unfair to Local Union 47" on the Carswell Project Blankenship, when asked by Spears what it would take to get the picket line off, replied it would require signing of the previously discussed contract On the afternoon of the same day, upon Texas' application to a State court, an ex paste restraining order was issued and served upon the union agents and picketing thereupon ceased On the morning of July 13, the State court rendered a decision sustaining the Union's plea to the jurisdiction. dissolved the restraining order, and dismissed Texas' application for an injunction Bailey and Blankenship then went from the courtroom to the job site to see S N. Thompson, Bateson's chief engineer, after Bailey had fiist consulted the Board's Regional Office 3 Spears was also present at this interview. Thompson stated he knew of no dispute between Bateson and the Union and asked why Bateson's job had been picketed Bailey handed the contract proposal to Thomp- son and stated that if Bateson would sign it, the Union would not restore the pickets but that the Union had pickets waiting at the gate and would put them back if the contract were not signed. Thompson stated that Bateson had but one part-time teamster whom Bateson was willing to pay at the union scale, that teamsters' work had long since been contracted out to Hall, and that he thought the Union was striking the wrong party He called Bailey's and Blankenship's attention to the provision (previously set forth herein) that subcontractors shall assume all terms and conditions of Bateson's agreement by saying that Bateson had no authority to dictate to subcontractors and those whom they might use and that in his opinion Bateson could not sign a contract containing that clause. The union representatives argued that Hall had subbed the work to Gilbert who had subbed it to Petrie who had subbed it to someone else and there might be still others who were going to do trucking on the j'b and that consequently they felt Bateson was responsible for the work that was to be done on the job and that it would be to the advantage of the Union to have a contract with Bateson rather than some subcontractor. Thompson said that President Bateson, with whom he would have to talk before acquiring authority to sign a contract, was out of town and requested a delay until the next day before the Union should resume picketing. The following day Thompson arranged for a meeting between himself and the union agents with members of the Fort Worth Building Trades Council including 8 or 10 business agents from various craft unions. At this meeting Bailey said that 3I excluded testimony as to what transpired at the Board's office Respondent made an offer of proof, which seas rejected, to the effect that Bailey and counsel for the Union sought, and failed to receive from Board representatives, an opinion as to whether "there was something wrong" with the contract it was proposing Bateson should sigh and with picketing the Bateson job for recognition LOCAL 47 931 Hall was going to do the hauling. He took the position that the Union's dispute was directly with Bateson because he felt Bateson controlled Hall's work and he did not think the Union was asking for anything illegal and could properly ask the Council for permission to continue picketing until it procured some sort of an agreement with Bateson. Thompson asserted he did not think Bateson could require its subcon- tractors to comply with the terms of a contract it might enter into with the Union but stated he thought he could work out the problem and requested the Council to have the Union refrain from resuming picketing. The Council by vote during Thomp- son's absence from the meeting decided in favor of picketing and informed Thompson that Bateson should continue negotiating with the Union while the job was shut down. Thereupon picketing was restored. Nine days later, on July 23, 1954, following further negotiations Bateson signed a contract which still contained the original proposal whereby Bateson agreed that its subcontractors should assume all its conditions but which also contained new pro- visions that the contract did not apply to the hauling of rock gravel or cement from locations off the Carswell Air Base to the base and that the Union would use its best efforts to furnish with competent men and equipment, such subcontractors engaged in hauling materials from the outside into the Carswell Project as should pay the wages, and accord with the terms and conditions of employment set forth in the contract Subsequent to making this agreement with the Union, Bateson entered into a modi- fication of its original contract with Hall "in order to get the work underway without further delay" which provided, inter alia, that haulers of materials from the batching plant to the mixers should be union. Upon the signing of the contract with the Union, picketing at the Carswell Project was finally discontinued C The Union's dealings with McCann On August 4, 1954, Blankenship called on McCann's building superintendent, L. W. Boyd, at the Paschal Project stating his business was to get a contract signed in an attempt to have the Union recognized on McCann's job. Boyd replied that should not be difficult owing to the fact that McCann had only one truck which was used part time. Blankenship said there was more than the single truck operator in- volved, that McCann had subcontractors such as Starks and Texas whose employees were not organized and who had not signed contracts with the Union, that he was not "after" McCann but the subcontractors who used trucks on the job. Blankenship left the same proposed contract forms it had presented to Bateson with Boyd who stated he was not authorized to negotiate an agreement and referred him to T. A. McCann, McCann's president. Later that day, Blankenship telephoned President McCann stating he wanted to talk about signing a contract with the Union. He said that some of McCann's sub- contractors were not paying what the Union considered its scale of wages, that he had talked to other contractors in Fort Worth, mentioning four by name, but they would not meet with him and that he wanted McCann to sign a contract. Two days later, on August 6, Blankenship talked in person with President McCann and General Manager Leon F. Stanley. Blankenship said the Union was trying to organize teamsters in Fort Worth area and, obviously referring to the Fort Worth Chapter of the Associated General Contractors of America's letter of May 20, 1954, stated that because that organization would not meet with the Union on the ground that teamsters were not ordinarily employed by its members, he was approaching individ- ual members of the organization for the purpose of obtaining contracts where pos- sible. Reference was made to the employee of McCann who on occasion moved material on the job by truck. Blankenship indicated he was not interested in that individual but was interested in Starks-previously mentioned-who Blankenship stated was not paying the union scale for trucks and their drivers. Understanding it was Blankenship's idea that the Union wanted to furnish trucks and drivers, Mc- Cann stated he had already signed a contract with Starks and he did not see how he could be obligated to require Starks to remove employees and to hire drivers sent out by the Union although he had no objection to the Union organizing anybody working on the project. Blankenship presented the same contract proposal to Mc- Cann and Stanley. The latter told him that McCann was a member of the Associated General Contractors, abided by its recommendations, and could not bind itself or that association to a contract such as he tendered. Stanley told Blankenship that since McCann did not employ teamsters, it could not enter into any contract whereby it would be obligated to change any of the contracts it had previously sublet or force 369028-56-vol. 112-60 932 DECISIONS OP NATIONAL LABOR RELATIONS BOARD its subcontractors to comply with conditions or meet terms not incorporated in those contracts. When Stanley asked Blankenship, "Just who are you mad at" Blankenship replied, "We are mad at Fort Worth Sand and Gravel, Joe Starks and anybody else who employs teamsters but refuse to execute a contract with our local." Blankenship dis- agreed with Stanley's suggestion that he was trying to get a general contractor to do the Union's organizational work among subcontractors but admitted that if McCann and all other general contractors in the Fort Worth area were to sign a contract with the Union, its organizational efforts would be made a lot easier. Blankenship inti- mated to President McCann and Stanley that if they did not sign an agreement the Union was going to take economic means and McCann told him he would try to get Starks and other subcontractors who were employing nonunion truckdrivers to have a meeting with the Union and that he was attempting to find out what their position might be in the light of the fact that they had already bid the job on the wage scale set up in the specifications by the school board. He added that if Blankenship would telephone him later in the day he would give him some definite word. McCann was away from his office when Blankenship called him back. On the following morning, August 7, McCann received a telegram from the Union stating that if a satisfactory agreement were not reached by 6:30 a m., August 9, the Union would be forced to exercise its economic strength. A picket bearing a sign saying "T. A. McCann Construction Company unfair to Teamsters Local 47," was placed on the Paschal Project at 7:30 a. in., August 9, and remained there until August 24, when a restraining order was issued by the Federal District Court of the Northern District of Texas. During the period of picketing, all employee members of the Building Trades Council remained off the job. Carpen- ters, who were not members of the council, worked a few days until the jobs they were able to finish in the absence of electricians, plumbers, ironworkers, and cement finishers were completed. D. Concluding findings In its application to the situation at hand, Section 8 (b) (4) (A) and (B) of the Act makes an unfair labor practice an inducement and encouragement by a labor organization or its agents of employees to refuse to work for their employers with the object (A) of forcing or requiring any employer to cease doing business with any- body else and object (B) of forcing or requiring any other employer to recognize or bargain with such labor organization when it has not been certified as the representa- tive of its employees. Of the fact that by setting up pickets the Union induced and encouraged employees to refuse to work on the Carswell Project for 11 days and on the Paschal Project for 15 days there can be no doubt. What were objects of this picketing? It is immaterial whether one of the aims was to procure contracts from Bateson and McCann, and permissible if another object was to force or require Bateson and McCann to cease doing business with Texas, Hall, and others, and proscribed. For, when stated simply, the issue is, Was it an object of the Union to force or require these general contractors to cease doing business with their subcontractors? In the report of proceedings, in oral argument, and in briefs appear a multitude of assertions and expressions of position interspersed with an elaborate citation of authorities of greater or lesser applicability. As helpful as all of this has been in- tended to be, it is for the answer to this fundamental question, to the facts, which alone are probative, facts-more impressive than argument-and to the words uttered by Respondent Agents-more revealing than those used by counsel-that we must turn. We must determine the import of Blankenship's statement that Texas was unfair and something had been suggested about Bateson buying from Central Concrete Company who was fair; his statement that Petrie who was going to haul for Hall's suppliers was unfair, Bailey's statement that the Union was going to get that hauling if it had to picket the whole base, and Blankenship's statement that Spears had not done anything about straightening up Texas and Hall and unless something were done the Union was going to picket We must determine the significance of the fact the sign carried by the picket placed on the Carswell Project stated that Bateson was unfair, and that carried at the Paschal Project stated that McCann was unfair We must determine the import of Blankenship's statements that McCann had unorganized subcontractors such as Starks and Texas who had not signed contracts with the Union; that he was not after McCann but the subcon- tractors who used trucks on the job; his statement that some of McCann's subcon- tractors were not paying union wages; his indication that he was not interested in McCann's part-time driver but was interested in Starks who was not paying drivers LOCAL 47 933 union wages; and Blankenship 's statement that the Union was "mad at" Texas, Starks, and any other employer of teamsters refusing to sign a contract with the Union. Respondents have argued that it would be unfair for this case to go off on who said what in a particular conference . But I have no reason to believe that the union agents did not mean what they said and can conceive of no more accurate way of determining an object for which the Union picketed Bateson and McCann than by giving weight to what the agents directly or by reasonable implication said the reason was. It seems to me that these statements clearly disclose the Union's object With- out needless repetition or laboring of the point , there is no escape from finding, on the basis of the very assertions of its agents, that an object of the Union in picketing Bateson was to force it to cancel out its contract with Texas because it was "unfair" and with Hall because its subcontractor's drivers were nonunion; that an object of the Union in picketing McCann with whom the Union acknowledged it had no dis- pute-by Blankenship saying it was not after that Company-was to force or require McCann to cease doing business with Texas, Starks, and any other employer of teamsters who refused to sign a contract with the Union. Respondents' witnesses testified that it was a matter of indifference to the Union whether subcontractors utilizing the services of truckdrivers, or the general con- tractors themselves, should pay drivers increased wages. From this, it is contended that since the general contractor could pay the additional wages, if their subcon- tractors refused to do so, it cannot be said that it was an object of the Union to force or require the general contractors to cease doing business with their subcontractors. Apparently excellent relations existed between Bateson and McCann and labor organizations in general. Even so, it is unbelievable that this amity had reached so idealistically utopian a stage that the Union's representatives seriously entertained the chimerical belief that these companies would happily reach into their own tills to pay additional wages to employees of subcontractors, the cost to the general contractors of whose work was fixed. A more natural conclusion is that the Union's representatives realized full well that should subcontractors refuse to increase wages (known to the representatives, because of their experience with them, to be an unlikely event) the general contractors, in order to avoid work stoppages, would search out other firms willing to pay wages demanded by the Union and, if successful in locating them, cease doing business with the recalcitrants. In pressing the averments in their answer that they have and had primary labor disputes with Bateson and McCann-averments which I find run counter to the position they took before the picketing started-Respondents argue that the general contractors retained absolute control over the manner and method by which their subcontractors operated and thus form single integrated enterprises with their respective subcontractors. From this, Respondents would show a primary dispute between the Union and both Bateson and McCann, exculpating it from responsibility for secondary activity. In support of this theory with respect to Bateson, Respondents rely particularly on portions of Bateson's general contract with the Department of the Army, pro- viding that. (a) He shall give his personal superintendence to the work or have competent foremen on the work at all times; (b) he shall be responsible for all work performed until completion and final acceptance; (c) he and his subcontractors shall pay wage rates not less than those computed in the specifications; (d) he shall not discriminate against employees because of race, creed, color, or national origin and shall insert a like provision in all subcontracts; and (e) he shall be responsible for subcontractor's compliance with pertinent provisions of the Army Engineers Manual of Safety Requirements Bateson's subcontract with Hall contains provisions that the latter company shall: (a) Furnish all labor for the described work; (b) carry sufficient compensation insurance to protect its workmen; (c) obtain and pay for all permits connected with its contract; (d) have its contract terminated upon refusal or neglect to supply sufficient skilled workmen; (e) remove any workmen unsatisfactory to Bateson; (f) pay for any material ruined or damaged on account of negligence or carelessness when labor only is furnished; (g) hold Bateson harmless from any and all liens and all claims of persons furnishing labor; and (h) pay all social-security and State unemployment taxes in connection with its work. In support of the theory that, with respect to McCann, Respondent was engaged in a primary dispute relieving it from liability for secondary activity, Respondents rely particularly on an excerpt in the specifications for the Paschal Project that "the contractor agrees he is fully responsible to the owner for the acts and omissions of his subcontractors and of persons either directly or indirectly employed by them as he is for the acts and omissions of persons directly employed by him " and on a 934 DECISIONS OF NATIONAL LABOR RELATIONS BOARD provision that subcontractors shall pay promptly for all labor, which appears in contracts between McCann and subcontractors These contracts provide that sub- contractors shall: (1) Furnish and pay for all labor and compensation insurance and make payments on all Federal and State payroll taxes and deductions; (2) be liable for all loss and damages which may happen to the work or any materials, (3) at their own cost make good any defects in their work; and (4) protect and indemnify and save McCann harmless from all claims and actions for damage or injuries sustained by anyone as a result of any fault or omission on their part. In their operations at Carswell and Paschal, the general contractors' responsibility was to complete the work in compliance with specifications. That they should carry on the work through the use of specialized subcontractors is both understandable and in accord with a general practice in the construction of large projects Few general contractors are capable of maintaining among their personnel a large enough number of craftsmen possessing sufficiently diversified skills to enable them to engage in such complex undertakings as building airports or even million dollar schoolhouses. This being so, in the usual course, general contractors engage the services of subcontractors, who confine their work to specialized fields, to do the work each is peculiarly equipped to perform, reserving the right, not to direct the methods employed, but only to require satisfactory completion of the assigned por- tions of construction General contractors have no direct control over subcon- tractors' employees. This customary building trade practice was followed by Bateson and McCann in their relations with their subcontractors. An analysis of the numerous specifications and clauses incorporated in the various agreements, both individually and in the context of the agreements themselves and a consideration of the realities of practices in constructing large projects in the build- ing industry, satisfies me that Respondents' theory is invalid and that the subcon- tractors were neither divested of their independent status nor were their businesses so integrated with those of their respective general contractors that their operations were merged into a single combined enterprise Upon the entire record, I find that Bateson and McCann did not reserve the right to control, and did not in fact exercise such control, over the methods of operation of Texas, Hall, and other subcontractors as to preclude a finding that they were independent contractors. The Supreme Court in N. L. R. B. v. Denver Bldg. & Construction Trades Council, 341 U. S. 675, at 689-690, rejected the view that prime and subcontractors working on a construction project constitute a single integrated operation. There, the Court agreed with the Board "in its conclusion that the fact that the contractor and sub- contractor were engaged in the same construction project, and that the contractor had some supervision over the subcontractors' work, did not eliminate the status of each as an independent contractor or make the employees of one, the employees of the other." The picket signs referred only to the general contractors and thus were directed against the projects as a whole with the result that all employees, not only truck- drivers employed by firms with whom the Union was in dispute but also those em- ployees working for the neutral general contractors as well as their neutral and uninvolved subcontractors, were induced and encouraged to concertedly refuse to work. In Denver Building, supra, a union objected to the use of nonunion workers by a subcontractor on a project where all other workers, those employed both by the general contractor and by the other subcontractors, were unionized. To enforce its demand that the employment of the nonunion employees be discontinued, the union picketed the project with a sign saying the job was unfair The union argued that it was engaged only in a primary dispute with the general contractor in an effort to force him to make the project an all-union job. In rejecting this argument, the Supreme Court said there "might" have been a basis for such a contention if the nonunion workers were employees of the general contractor, but because they were employees of the subcontractor the Union's primary dispute was with the latter and the Union's action must have included among its objects that of forcing and requiring the general contractors to cease doing business with the nonunion subcontractors. In view of the foregoing, I find that the picketing directed by Respondent was designed , at least in part, to force Bateson and McCann to cease doing business with Texas and Hall. This was accomplished by inducing employees of neutral employers and third parties to refuse to enter and work upon the Carswell and Paschal projects by the picketing which started on July 9 and August 9, 1954. Thus the picketing was for an object proscribed by Section 8 (b) (4) (A) of the Act. Turning now to the 8 (b) (4) (B ) phase of the case, I believe the record requires a finding that the allegation has been sustained . Several months before the events with which this proceeding is directly concerned , the Union petitioned the Board for an election among Texas' ready-mix drivers . An election was held and resulted LOCAL 47 935 in a defeat for the Union. Since that time , the Union made no effort to seek out truck-operating employees of Texas or Hall or any of their subcontractors for the purpose of attempting to procure from them authorizations for representation. The failure to organize these nonunion drivers left the Union in a position where it could not require their employers to bargain and negotiate . Picketing against Texas ' gravel pits proved ineffective and the Union then moved against Bateson and McCann, although they knew these two companies had no full-time truckdrivers , in order to gain recognition from Texas and Hall although it had not been certified as the representative of their employees . The pressure applied against Bateson to cease doing business with Hall had the effect of accomplishing the desired result of Hall's recognizing the uncertified union on August 27 when it agreed to modify its contract with Bateson. Thus it is patent that the Union encouraged and induced employees to concertedly refuse to work with an object of forcing or requiring another employer, whose employees the Union had not been certified to represent , to recognize it. This is a violation of Section 8 (b) (4) (B). Should the originally presented collective-bargaining contract provision that sub- contractors shall assume all the terms and conditions agreed to by the general contractors have been signed by either of the general contractors, the result would have been tho' unless the nonunion subcontractors had agreed to all the terms of the contract the general contractor would have had no recourse other than to cease doing business with the subcontractors . When a general contractor succumbs to pressure and binds himself to a contract embodying requirements which must be undertaken by his subcontractors, he must, in order not to breach his contract, try to force subcontractors to perform acts that may not either contractually or lawfully be bound to perform, such, for example, as recognizing an uncertified union. In the event subcontractors should bid defiance to his entreaties , the general contractor must then change to others more amenable. There is no merit in Respondent's contention that since they presented evidence that an estimated 75 to 80 percent of the truckdriving in the Fort Worth area is per- formed by individuals who own their own trucks, and independent contractors do not come within the orbit of the Act, a union may protect the welfare of its members by insisting that general contractors should require subcontractors or independent con- tractors not to pay less wages than those paid by the general contractors. Without approving or disapproving this view, or necessarily concluding whether the undocu- mented and unexplicated estimate is accurate or applicable to individuals driving at Carswell and Paschal, the fact remains that on the basis of the Respondent's evidence, taken at face value, at least 20 to 25 percent of the persons the Union claimed to represent were employees as distinguished from independent contractors, several members of the Union act as employees at one time or another, and the proposed union contract covers employees as well as independent contractors or truck owners and included four separate hourly rate wage scales for employees driving different types of motor vehicles. I am not sure of the correctness of the assertion of counsel for Respondents that in requesting under the facts of this case that there be a finding that Respondents have violated the Act, the General Counsel is asking the Trial Examiner to go further than any court or any Board or any Trial Examiner has ever gone before. But if he is correct, I can only say that I must take the law as I find it, even though it may re- strict the means which labor organizations may employ in achieving the worthy ob- jective of enabling their members to attain a betterment of their working conditions.4 It seems to me clear that Congress in enacting in 1947 Section 8 (a) (4) (A) and (B) determined to use all the power at its command to eliminate secondary boycotts from the American industrial scene. It could not distinguish between good and bad secondary boycotts or even decide if there was such a thing as a good one and so abolished them all. Manifestly a Trial Examiner in hard cases may not assess the wisdom of, or rewrite or engraft exceptions upon, legislation which represents the considered judgment of Congress IV. THE EFFECT OF THE UNFAIR LABOR PRACTICES UPON COMMERCE The activities of Respondents , set forth in section III, above , in connection with the business of Bateson and McCann set forth in section II, above . have a close, intimate , and substantial relation to trade, traffic, and commerce among the several States and tend to lead to labor disputes burdening and obstructing commerce, and the free flow of commerce. 4 Fort Worth truckdrivers' wages of $1.25 an hour compare unfavorably with the average wage scale of unionized building trade workers in 85 cities which the Bureau of Labor Statistics has reported was $2 . 82 an hour on October 1, 1954. 936 DECISIONS OF NATIONAL LABOR RELATIONS BOARD V. THE REMEDY Having found that Respondents have engaged in conduct violating Section 8 (b) (4) (A) and (B) of the Act, I will recommend that they cease and desist therefrom and take certain affirmative action designed to effectuate the policies of the Act. Upon the basis of the foregoing findings of fact, and upon the entire record in the case, I make the following: CONCLUSIONS OF LAW 1. Local 47, International Brotherhood of Teamsters, Chauffeurs , Warehousemen and Helpers of America, AFL, is a labor organization within the meaning of Section 2 (5) of the Act and Respondents Glenn Bailey and H. Blankenship are its agents. 2. By engaging in and directing picketing with an object thereof to force or re- quire Bateson and McCann to cease doing business with Texas and Hall and with a further object of forcing or requiring other employers to cease doing business with Texas and Hall so as to force or require Bateson and McCann to cease doing busi- ness with Texas and Hall, Respondents have engaged in unfair labor practices within the meaning of Section 8 (b) (4) (A) of the Act. 3. By engaging in and directing picketing with an object thereof to force or re- quire Texas and Hall to recognize or bargain with Respondent Union as the repre- sentative of their employees when Respondent Union had not been certified as the representative of such employees under the provisions of Section 9 of the Act, and with a further object of forcing or requiring other employers to cease doing business with Texas and Hall when Respondent Union had not been certified as the represent- ative of the employees of such other employers so as to force or require Bateson and McCann to cease doing business with Texas and Hall, Respondents have engaged in unfair labor practices within the meaning of Section 8 (b) (4) (B ) of the Act. 4. By presenting a contract proposal to Bateson and McCann which provided that their subcontractors shall assume all of its terms and conditions and causing or attempting to cause the execution of same and procuring Bateson's agreement thereto, with objects thereof to force or require Bateson and McCann to cease doing business with Texas and Hall and also to force or require Texas and Hall to recognize or bargain with Respondent Union as the representative of their em- ployees when Respondent Union had not been certified as the representative of such employees under the provisions of Section 9 of the Act, and with further objects of forcing or requiring other employers to cease doing business with Texas and Hall so as to force or require Bateson and McCann to cease doing business with Texas and Hall, and, also , of forcing or requiring other employers to cease doing business with Texas and Hall when Respondent Union had not been certified as the representative of the employees of such other employers so as to force or require Bateson and McCann to cease doing business with Texas and Hall , Respondents have engaged in unfair labor practices within the meaning of Section 8 (b) (4) (A) and (B ) of the Act. 5. The aforesaid unfair labor practices are unfair labor practices within the meaning of Section 2 (6) and (7) of the Act. [Recommendations omitted from publication.] Ozburn-Abston and Co., Inc . and Retail Clerks International As- sociation , Local 1529 , AFL, Petitioner. Case No. 32-RC-818. May 24,1955 DECISION AND DIRECTION OF ELECTION Upon a petition duly filed under Section 9 (c) of the National Labor Relations Act, a hearing was held before Samuel J. Weintraub, hearing officer. The hearing officer 's rulings made at the hearing are free from prejudicial error and are hereby affirmed.' I The Employer contended at the hearing that the Petitioner had not made an adequate showing of interest . The Board has consistently held that the showing of interest is an 112 NLRB No. 118. Copy with citationCopy as parenthetical citation