Local 12 (Associated Independent Owner-Operators)Download PDFNational Labor Relations Board - Board DecisionsDec 16, 1969180 N.L.R.B. 293 (N.L.R.B. 1969) Copy Citation LOCAL 12 ( ASSOCIATED INDEPENDENT OWNER -OPERATORS) International Union of Operating Engineers, Local Union No. 12, AFL-CIO (Wesley Forsythe) and Associated Independent Owner-Operators, Inc. Case 21-CC- 1 137 December 16, 1969 DECISION AND ORDER BY MEMBERS FANNING, BROWN, AND ZAGORIA On October 7, 1969, Trial Examiner George H. O'Brien issued his Decision in the above-entitled proceeding, finding that Respondent had engaged in and was engaging in certain unfair labor practices within the meaning of the National Labor Relations Act, as amended, and recommending that it cease and desist therefrom and take certain affirmative action, as set forth in the attached Trial Examiner's Decision. The Trial Examiner also found that the Respondent had not engaged in certain other unfair labor practices alleged in the complaint and recommended dismissal as to them. Thereafter, the General Counsel, Charging Party, and Respondent filed exceptions to the Trial Examiner's Decision and supporting briefs, and Respondent filed an answering brief. Pursuant to the provisions of Section 3(b) of the National Labor Relations Act, as amended, the National Labor Relations Board has delegated its powers in connection with this case to a three-member panel. The Board has reviewed the rulings of the Trial Examiner made at the hearing and finds that no prejudicial error was committed. The rulings are hereby affirmed. The Board has considered the Trial Examiner's Decision, the exceptions, the brief, and the entire record in this case, and hereby adopts the findings, conclusions, and recommendations of the Trial Examiner. ORDER Pursuant to Section 10(c) of the National Labor Relations Act, as amended, the National Labor Relations Board adopts as its Order the Recommended Order of the Trial Examiner, and hereby orders that Respondent, International Union of Operating Engineers , Local Union No. 12, AFL-CIO, its officers, agents , and representatives, shall take the action set forth in the Trial Examiner's Recommended Order. TRIAL EXAMINER' S DECISION STATEMENT OF THE CASE GEORGE H. 0 BRIEN, Trial Examiner: On August 12, 1969, a hearing was held in the above-entitled matter in Los Angeles, California at which all parties appeared and participated. The complaint, issued by the Regional Director for Region 21 of the National Labor Relations 293 Board on May 27, 1969, is based on a charge filed by Associated Independent Owner-Operators, Inc. on April 4, 1969 and alleges violation of Section 8(b)(4)(ii )(A) and (B) of the National Labor Relations Act by International Union of Operating Engineers Local Union No. 12, AFL-CIO, herein called Respondent . Upon the entire record in this proceeding , including my observation of the witnesses and after due consideration of the post-hearing briefs , I make the following: FINDINGS OF FACT 1. THE BUSINESS OF THE EMPLOYER Midway Construction Company, herein called Midway, is engaged as a general contractor in the building and construction industry. At all times material herein Midway has been engaged in the construction of an industrial project known as Dominguez Industrial Park in Compton, California. During the 12-month period ending May 1, 1969, Midway purchased and received at Dominguez Industrial Park materials and supplies valued in excess of $50,000 either directly from points located outside the State of California, or from California suppliers who obtained said equipment and supplies directly from points located outside the State of California. Midway at Dominguez Industrial Park is an employer engaged in commerce and in a business affecting commerce within the meaning of Sections 2(6) and (7) of the Act. IL THE LABOR ORGANIZATION INVOLVED Respondent is a labor organization within the meaning of Section 2(5) of the Act. •fll. THE ALLEGED UNFAIR LABOR PRACTICES A. The Issues The complaint alleges that Respondent, through its business agent, Orville J. Whisman, on March 31, 1969 "threatened Midway with picketing and shutting down work at the construction project" and that Respondent's objects were (1) to force or require Wesley Forsythe, a self-employed person, to join Respondent and (2) to force or require Midway to cease doing business with Forsythe. Respondent's answer is a general denial. In his posthearing brief Respondent's counsel argues that Forsythe was an employee of Midway and not an "independent contractor" and that Whisman did not threaten Midway. He also argues that Whisman, when informed that Forsythe was an "owner operator" accepted this representation at face value, and merely advised Midway that its subcontract to Forsythe violated the Master Labor Agreement and that Midway would be required to make reparation to the man on the top of the Union' s out-of-work list who had been deprived of employment by Midway's violation of contract. B. The Setting On July 1, 1965, Respondent entered into a Master Labor Agreement, effective to July 1, 1969, with Home Builders Association and three other employer associations. The Agreement contains a clause restricting job site subcontracting to persons under contract with unions affiliated with the Building Trades Department of 180 NLRB No. 53 294 DECISIONS OF NATIONAL LABOR RELATIONS BOARD AFL-CIO or Teamsters, and contains detailed provisions governing the dispatch of workmen from offices maintained by the Respondent. It also contains a "union shop" clause. As of July 1, 1965, R. A. Watt Construction Company was a member of Home Builders Association, the name of which has been changed to Building Industry Association. R. A. Watt Construction Company was acquired by Boise-Cascade Company. Midway Construction Company is a wholly owned subsidiary of Boise-Cascade. On the facts in this record I am unable to find or conclude that Midway Construction Company was on March 31, 1969, bound to observe the terms of the Master Labor Agreement with Respondent.' Dominguez Industrial Park encompasses a large area, comprising many city blocks and Boise-Cascade is the general contractor for the entire project. Midway Construction Company is the subcontractor for concrete and masonry with responsibility for the concrete foundations of the several buildings. The work of surveying and laying out the foundations was subcontracted by Midway to E. L. Pierson and Associates, whose employees are represented by Respondent. Layout men string lines between stakes set by the surveyors, and trenches are dug on these lines. On March 31, Wesley Forsythe, with his backhoe was digging trenches behind the surveying crew, which was also working on that date. Forsythe became a member of Respondent in 1957, and ceased to be a member in 1964 or 1965. For several years he has been in business for himself.: He owns two pieces of equipment, a Massey-Ferguson backhoe valued at $8,000 and an Allis Chalmers backhoe valued at $11,000 to which he can attach "buckets" of different sizes and widths in accordance with the requirements of different jobs. The useful life of each machine is about three years. He does not permit anyone other than himself to operate the equipment and does not work for wages with the equipment of any other person. He is retained by contractors to perform specific jobs for which he demands and receives a set rate per hour. During the past year he performed services for some thirty different contractors. Vernon Stallmo, Midway's superintendent of concrete and masonry construction has called on Forsythe at least once every other week over a period of three to five years. When Forsythe was otherwise engaged or unavailable he has suggested the name of some other person to Stallmo as a substitute. Forsythe sets his own price for each job, and from time to time over the years has raised his rates. On the Dominguez job he charged $14.50 per hour. He keeps and records his own time and turns it in to the foreman or to the superintendent if one of them is still on the job when he completes his day's task. If he has not completed a trench when other project work stops and supervision goes home , he continues to work and turns in his time on the following day. The only instruction he receives when accepting a job is the width of the trench and the location of the project. The only additional instruction ever given to him is the depth of the trench. He uses his independent judgment , based on his knowledge of construction and of the bearing qualities of 'This is not a finding that Midway Construction Company was not bound to observe terms of the Master Labor Agreement. In Hoisting Engineers Local 302 (West Coast Steel Works). 144 NLRB 1449, the Board held at page 1452• " Such an agreement or arrangement need not be written , but may be established by evidence of an oral understanding or of a course of conduct in which both parties mutually assume the concommitant obligations imposed by the necessity to use a hiring hall or referral system." soil to dig the trench deeper when he runs into a fill spot or bad soil and in deciding whether he should deposit the dirt inside or outside of the building line. He is free to leave the job anytime it suits his convenience and is responsible only for the finished result. He pays maintenance, operating, and insurance costs on his own equipment. No deduction is made by the contractor for social security, workmen's compensation or for income tax. There is no evidence that Midway owns any comparable equipment or has, or has ever had any employee doing comparable work. The foregoing facts bring this case squarely within the Board's holding in Claremont Development Co., 106 NLRB 611, and require a finding that Forsythe on the Dominguez project on March 31, 1969, was an independent contractor within the meaning of Section 2(3) of the Act and a self-employed person within the meaning of Section 8(b)(4)(ii)(A) of the Act.3 C. Sequence of Events Orville J. Whisman is a surveyor by trade, and for the past seven years has been a business representative, employed by Respondent, charged with the primary responsibility of protecting the interests of its 1,700 surveyor members, with other incidental responsibilities. On the morning of March 31, 1969, Whisman drove to the Industrial Park to visit the Pierson surveyors. Observing an idle backhoe and two men standing nearby, he walked up and asked who was the operator of the backhoe. Forsythe replied that he was the operator Whisman asked to see his card. Thereupon, according to Whisman: And he told me at that time he was not a member of the union ; he had no contract; he was an independent owner-operator; and that he didn't have to belong to any union. So I told him, "Thank you." I told him I had no further argument with him, I had a problem with the general contractor on the job because the general contractor was in violation of his agreement, and I left the jobsite immediately for Boise-Cascade's superintendent's office. Forsythe, describing the same incident testified: I told him I was a member of Associated Independent Owner-Operators. And he said, "That doesn't make any difference. You don't work here." And he walked off. Forsythe further testified after his recollection was refreshed by reading his pre-trial statement, that he was talking to Art, the foreman when Whisman walked up, and that after Whisman left, the foreman told Forsythe "that the Business Agent had said that the general contractor had a collective bargaining agreement with Local 12 under which they could not use anyone who did not belong to Local 12." Art did not testify. 'On March 9 , 1960, Forsythe, with two other partners doing business as J D & W BACKHOE RENTAL, signed a collective bargaining agreement with Respondent . The existence of this agreement was unknown to Whisman on March 31 , 1969, and it has no relevance in this proceeding. 'Compare Marshall and Haas . 133 NLRB 1144, where the Board found that the owner of a dump truck was an employee , in part, because he lined up with and did the same work under the same supervision as employees driving company trucks , and Oltmans Construction Company, 168 NLRB No. 112, where the Board found that "owner operators" were "engaged to perform duties that could have been assigned to acknowledged employees of the contractors." LOCAL 12 (ASSOCIATED INDEPENDENT OWNER-OPERATORS) Whisman walked back to his car and drove about eight blocks to the trailer which George Dushane, Superintendent for Boise-Cascade, was using as his office. Whisman told Dushane "that they were in violation of their agreement, in that they had not hired Mr. Forsythe in accordance with the agreement, and [Whisman] was asking for pay for a man on the top of the out-of-work list for every hour that [Forsythe] was on the jobsite performing the work of an operator." Mr. Dushane replied, "that Mr. Forsythe was working for Midway Construction Company, which was a subcontractor on the job and that [Whisman's] problem was with them, and that [Dushane] would get ahold of a gentleman called Marlin Kenny who was superintendent for Midway Construction Company." Whisman then drove back to where the surveyors were working, where he was met by the Pierson surveyors' chief of party, James C. Shannon. Shannon had been informed by one of his chainmen that there was a nonunion operator on the job, and Shannon inquired of Whisman whether the surveyors should leave. Whisman replied, "Definitely, Not. Just go ahead and work." Shortly thereafter Vernon Stallmo drove up, got out of his car and walked over to Whisman. Stallmo, who was assistant superintendent for Midway, under Kenny, knew that Forsythe was not a member of Local 12 and had been informed by a Boise-Cascade superintendent, Bert Herrick, that "there was a Local 12 man on the job and he [Stallmo] had better get over there immediately." Stallmo testified: I approached Mr. Whisman and he handed me his card . . . he said, "You don't have a Local 12 operator on the job. I want him [Forsythe] taken off the job. Otherwise, I'm going to shut the job down. You have to have a Local 12 man perform this duty." In this sense he said, "If you don't do it, I'm going to shut down the job." And I said, "Do I have to do it immediately?" And he said, "Yes sir." Otherwise, the following morning he was going to come out with five men and go through the tract, ... if I didn't get Wes [Forsythe] off the job immediately I would have to pay a man from Local 12 wages for that entire day, the first man on the out-of-work list .... And I said, "I'm not going to do that." and he said, "You better shut it down." Stallmo further testified that Whisman did not say what Whisman and the five men were going to do the following morning. Whisman, describing the same conversation, testified: ... this gentleman here approached me . . . and he never at that time told me his name but he identified himself as superintendent for Midway Construction Company . . . I advised him that Midway Construction Company was in violation of their agreement; that my demand was for all the time worked by the improperly hired person on that project. I wanted to compensate the man on the top of the out-of-work list who had not worked, and they had violated their agreement. He asked me what did I want him to do, and he specifically insinuated did I want him to get rid of Mr. Forsythe, and I says, "Definitely not." Whisman cate>orically denied telling Stallmo that he would shut the job down or that he made any statement to Stallmo regarding pickets. Shannon testified that he met Whisman on his return from the Boise-Cascade office and asked whether Whisman wanted him to leave the job. He had received a 295 negative reply and was still talking to Whisman when Stallmo drove up. Shannon stood by within five or ten feet and listened to their conversation but did not pay strict attention. The only portion he recalled was the statement of Whisman that the man on the top of the out-of-work list should receive pay as long as the backhoe was operating. It was then lunch time and Whisman bought lunch for the two survey crews then working on the project. A few minutes after Whisman had conversed with Stallmo, Shannon 'again put the question: "did [Whisman] want him to'leave the job?" Whisman replied: ... and I told him definitely not, that would be the worst thing in the world that could happen, was for the men to leave that job, and I specifically gave him instructions not to leave the job. As soon as Whisman left, Stallmo told Forsythe to stop working and to call his [Forsythe's] business agent. Later in the day Richard E. Brown, a business agent of Associated Independent Owner-Operators, Inc., came to the project and told Forsythe and Stallmo that despite the decree of the Circuit Court of Appeals handed down February 18, 1969,' it would be legal for the Union to picket. Stallmo then told Forsythe "that he'd better join Local 12", adding, "Otherwise, if you don't, I'm going to have to get a Local 12 man in." The next day, April 1, Forsythe made application for reinstatement in Respondent and paid a total of $350 in fees and dues. Forsythe completed his then current job for Midway about two days later. After the instant charge was filed, the Regional Director for Region 21 of the Board filed in the United States District Court a petition for injunction under Section 10(1) of the Act. In connection with this application counsel for the Director filed with the Court an affidavit of Vernon Stallmo dated June 6, 1969. Upon being shown a copy of this affidavit by the Union's counsel, Whisman decided to have a second talk with Stallmo. Whisman went to the project, asked "are you Vernon Stallmo?" and, on receiving an affirmative reply, handed him a business card. Stallmo testified that it was the business card of W. P. "Bill" Jacobs, an Ironworkers' Business representative. Whisman testified that it was the card of Jim Morris, a Local 12 representative. In any event, Stallmo did not recognize Whisman as the man who had spoken to him on March 31. Whisman asked Stallmo if he was absolutely sure about the statements which he had made in the affidavit of June 6, and Stallmo replied that the affidavit was true. Whisman then asked Stallmo if he knew there was a witness present, Shannon, and Stallmo replied that there was none and that Shannon was 500 feet away. Whisman ended the brief conversation with the remark, "I'll see you in Court." At the instant hearing Stallmo identified Whisman as the man who had presented the business card of Bill Jacobs, but did not identify him as the business agent to whom he spoke on March 31. D. Respondent's Threat On March 31 when Vernon Stallmo refused Whisman's demand that he pay a Local 12 member for all hours 'Associated Independent Owner Operators Inc, v. N L.R.B., 407 F.2d 1383 (C . A. 9), vacating and remanding International Union of Operating Engineers Local Union No. 12, AFL-CIO (Ohmans Construction Company ), 168 NLRB No. 112. 296 DECISIONS OF NATIONAL LABOR RELATIONS BOARD worked by Forsythe, Whisman did say "You better shut it down." On the same date, and in the same conversation, Whisman did say that if Stallmo did not shut down the backhoe, Whisman would be out the next morning "with five men and go through the tract." Whisman did not specifically deny these portions of Stallmo's testimony, and these statements together constitute a threat within the meaning of Section 8(b)(4)( ►i) of the Act. Stallmo correctly understood by the reference to five men going through the tract, that he was being threatened with picketing of the entire project. Shannon, who could recall only a small part of the conversation between Whisman and Stallmo felt compelled at its conclusion, to repeat the question which he had put to Whisman only a few minutes before Shannon again asked whether the surveyors should leave the job and on this second occasion obtained a more emphatic negative response. I do not believe that Shannon would have repeated his question in the absence of some statement by Whisman to Stallmo tending to negative the previous instruction. E. Respondent's Object Whisman's statement, "You better shut it down," in its entire context is sufficient evidence that one object of Whisman's threat was to force or require Midway to cease doing business with Forsythe, and this conjunction of means and object constitutes a violation of Section 8(b)(4)(u)(B) of the Act. I find no evidence that an object of Respondent's conduct was to force or require Forsythe to join Respondent. The General Counsel argues: that "a respondent may be held to have intended the natural and forseeable consequences of its conduct." Citing: Local 980, Laborers, et al., (The Kroger Company). 119 NLRB 469, 579, and Local Union 789, Laborers, et al., (Doyle and Russell), 125 NLRB 571, 574. Conceding the validity of the proposition, there was reason for Whisman to anticipate that Stallmo would cease to do business with Forsythe. There was no reason for him to anticipate that Forsythe would attempt to rejoin Respondent. Stallmo in effect told Forsythe that he could not work any longer unless he rejoined the Union. Forsythe' s business agent, who signed the charge which gave rise to this proceeding advised Forsythe to rejoin Respondent. Since Respondent did not force Forsythe to join, it cannot on any theory be required to permit him to withdraw, nor can it be required to return the fees and dues which Forsythe voluntarily tendered. Whisman did not on March 31, 1969, refer to the subcontracting clause of the Master Agreement, nor was it part of Respondent's object on that date to secure compliance with the subcontracting clause . Respondent's counsel argues , in support of his contrary assertion, that Whisman' s insistance that the top man on the out-of-work list be paid for the hours actually worked by Forsythe indicated such intent, and directs my attention to an arbitrators decision' prescribing such a remedy Such a remedy would be equally appropriate, were Forsythe an employee hired in violation of the exclusive referral clauses of the contract. That Whisman regarded Forsythe as an employee is evidenced by his words to the Boise-Cascade superintendent: 'Decision of Board of Arbitration , Sam Kagel , (chairman ) in Associated General Contractors. 38 Labor Arbitration Reports 500 I told him the problem that I had, that they were in violation of their agreement in that they had not hired Mr. Forsythe in accordance with the agreement. If Midway Construction Company, or Boise-Cascade was or if both were, on March 31, 1969 bound to observe the subcontracting clause of the Master Labor Agreement, an attempt by Respondent to secure compliance therewith by threat of picketing would violate Section 8(b)(4)(ii)(B) of the Act. Northeastern Indiana Building and Construction Trades Council, etc (Centlivre Villiage Apartments), 148 NLRB 854. Since an object of Whisman's threat to return on the following morning with five men and go through the tract was to cause Midway Construction Company to cease doing business with Wesley Forsythe, an independent contractor, Respondent did thereby engage in conduct violative of Section 8(b)(4)(ii)(B) of the Act. N.L R.B v Denver Building and Construction Trades Council, et al (Gould and Preisner), 341 U.S. 675, 689. IV. THE EFFECT OF THE UNFAIR LABOR PRACTICES UPON COMMERCE The activities of Respondent set forth above, occurring in connection with the operations of the employers as set forth 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 V. THE REMEDY Having found that Respondent has violated Section 8(b)(4)(ii )(B) of the Act, it will be recommended that it cease and desist therefrom and take certain affirmative action designed to effectuate the policies of the Act. Upon the basis of the above findings of fact, and upon the entire record in the case, I make the following: CONCLUSIONS OF LAW 1. Midway Construction Company is an employer within the meaning of Section 2(2) of the Act engaged in commerce and in a business affecting commerce within the meaning of Section 2(6) and (7) of the Act. 2. Midway Construction Company and Wesley Forsythe are persons in an industry affecting commerce within the meaning of Section 8(b)(4) of the Act. 3. International Union of Operating Engineers, Local Union No. 12, AFL-CIO, is a labor organization within the meaning of Section 2(5) and 8(b) of the Act. 4. By threatening to picket Midway Construction Company with an object of forcing or requiring Midway Construction Company to cease doing business with Wesley Forsythe, International Union of Operating Engineers, Local Union No. 12, AFL-CIO, has engaged in unfair labor practices affecting commerce within the meaning of Section 8(b)(4)(i ►)(B) of the Act. 5. Respondent has not engaged in unfair labor practices affecting commerce within the meaning of Section 8(b)(4)(ii)(A) of the Act. RECOMMENDED ORDER Upon the basis of the foregoing findings of fact and conclusions of law, and upon the entire record in this proceeding, I recommend that International Union of Operating Engineers , Local Union No. 12, AFL-CIO, its LOCAL 12 (ASSOCIATED INDEPENDENT OWNER -OPERATORS) officers , agents and representatives , shall: 1. Cease and desist from threatening, coercing or restraining Midway Construction Company or any other person engaged in commerce or in an industry affecting commerce where an object thereof is forcing or requiring any such person to cease doing business with Wesley Forsythe. 297 (c) Notify the said Regional Director in writing within 20 days from the date of the receipt of this Decision, what steps Respondent has taken to comply herewith.' 'In the event that this Recommended Order is adopted by the Board, this provision shall be modified to read : "Notify the Regional Director for Region 21, in writing , within 10 days from the date of this Order, what steps it has taken to comply herewith " 2. Take the following affirmative action which I find will effectuate the policies of the Act: (a) Post in conspicuous places at its business offices and meeting halls, including all places where notices to members are customarily posted, copies of the attached notice marked "Appendix."6 Copies of said notice to be furnished by the Regional Director for Region 21, shall, after being signed by Respondent's authorized representative, be posted by Respondent immediately upon receipt thereof and be maintained by it for 60 consecutive days. Reasonable steps shall be taken by Respondent to insure that said notices are not altered, defaced or covered by any other material. (b) Sign and mail copies of said notice to the Regional Director for posting by Midway Construction Company, it being willing, at all locations where notices to its employees are customarily posted. 'In the event no exceptions are filed as provided by Section 102 .46 of the Rules and Regulations of the National Labor Relations Board, the findings , conclusions , recommendations , and Recommended Order herein shall, as provided in Section 102 . 48 of the Rules and Regulations, be adopted by the Board and become its findings, conclusions , and order, and all objections thereto shall be deemed waived for all purposes. In the event that the Board's Order is enforced by a judgment of a United States Court of Appeals , the words in the notice reading "Posted by Order of the National Labor Relations Board" shall be changed to read "Posted Pursuant to a Judgment of the United States Court of Appeals Enforcing an Order of the National Labor Relations Board." APPENDIX NOTICE TO MEMBERS Posted by order of the National Labor Relations Board an agency of the United States Government WE WILL NOT threaten, coerce, or restrain Midway Construction Company or any other person engaged in commerce or in an industry affecting commerce where an object thereof is to force or require any such person to cease doing business with Wesley Forsythe. INTERNATIONAL UNION OF OPERATING ENGINEERS, LOCAL UNION No . 12, AFL-CIO (Labor Organization) Dated By (Representative ) (Title) This is an official notice and must not be defaced by anyone. This notice must remain posted for 60 consecutive days from the date of posting and must not be altered, defaced, or covered by any other material. Any questions concerning this notice or compliance with its provisions, may be directed to the Board's Office, 849 South Broadway, Los Angeles, California 90014, Telephone 688-5229. Copy with citationCopy as parenthetical citation