Local Union 8, IBEWDownload PDFNational Labor Relations Board - Board DecisionsDec 15, 1975221 N.L.R.B. 1131 (N.L.R.B. 1975) Copy Citation LOCAL UNION 8, IBEW 1131 Local Union 8, International Brotherhood of Electrical Workers (Romanoff Electrical Corp.) and John D. Hayes and Toledo Electrical Contractors Associa- tion, Inc., Party in Interest Romanoff Electric Corp. and Darrell Wayne Elliott Local 8, International Brotherhood of Electrical Workers (Romanoff Electric Corp .) and Darrell Wayne Elliott and Toledo Electrical Contractors Association , Inc., Party in Interest. Cases 8-CB- 2065, 8-CA-8674, and 8-CB-2495 December 15, 1975 DECISION Af 4D ORDER BY MEMBERS FANNING, JENKINS, AND PENELLO On June 30, 1975, Administrative Law Judge Josephine H. Klein issued the attached Decision in this proceeding. Thereafter, Respondents Romanoff Electric Corp. and Local 8, International Brother- hood of Electrical Workers filed exceptions and supporting briefs. Pursuant to the provisions of Section 3(b) of the National Labor Relations Act, as amended, the National Labor Relations Board has delegated its authority in this proceeding to a three-member panel. The Board has considered the record and the attached Decision in light of the exceptions and briefs and has decided to affirm the rulings, findings, and conclusions of the Administrative Law Judge to the extent consistent herewith. As a member of the Toledo Electrical Contractors Association, Romanoff has had collective-bargaining agreements with Local 8 for many years. These agreements contain union-security provisions and exclusive hiring hall provisions which set forth four classifications of employees in descending order of priority for referral to jobs. The current collective agreement makes the following distinctions between group I and group II applicants: I Group I. All applicants for employment who have four or more years experience in the inside electrical construction trade, are residents of the geographic areas constituting the normal con- struction labor market, have passed an inside journeymen's examination given by a duly consti- tuted Labor Union of the I.B.E.W. and who have been employed for a period of at least two years in the last three years under a collective bargain- ing agreement between the parties in disagree- ment. Group II. All applicants for employment who have four or more years experience in the inside electrical construction trade, and who have passed an inside journeymen's examination given by a duly constituted Local Union of the I.B.E.W. The operative distinction herein is that group I Includes journeymen residents in the Toledo area while group II includes nonresident journeymen. Applicants for employment must be selected and referred without discrimination by reason of mem- bership or nonmembership in the Union. All employees are entitled to "scheduled overtime" on projects which operate regularly on workweeks of more than 40 hours. However, other projects require "unscheduled overtime" in the event that such operations require work beyond the regularly sched- uled hours. Nineteen years ago the labor-manage- ment committee established under the contract, adopted a practice by which priority for unscheduled overtime is given to members of group I; i.e., area residents.2 The parties stipulated that unscheduled overtime is not offered to applicants from groups other than group I until the list of group I applicants has been exhausted. Respondents testified without contradiction that the overtime assignment policies were adopted to ensure an adequate supply of reliable labor to finish projects, and contend that the priority "insures for the, employer a loyal, ready pool of local residents who will remain on the job until completion. For the Union that is composed of local residents, it provides a mechanism whereby its members receive prefer- ence on a limited assignment of unscheduled overtime." The Administrative Law Judge, however, found that "the inherent illogicality and incredibility of Respondents' explanation convinces me that the preference here involved constitutes `action by a union that impinges upon the employment relation- ship which is arbitrary, invidious, or irrelevant to legitimate union interests.' " Accordingly, the Ad- ministrative Law Judge found that the Union violated Section 8(b)(1)(A) and (2) and Romanoff violated Section 8(a)(3) and (1) of the Act by granting preference to area residents in the assign- ment of unscheduled overtime. As found by the Administrative Law Judge, absent a finding of pretext or sham, preferential hiring or job retention based on an objective criterion, particularly in the construction industry, would not be violative of the Act. A Priori, the preferential ' Only the first two classifications are relevant to the instant considera- tion 2 The collective-bargaining agreements themselves , however, have never expressly so provided. 221 NLRB No. 180 1132 DECISIONS OF NATIONAL LABOR RELATIONS BOARD assignment of unscheduled overtime should not constitute an unfair labor practice where it is based on the objective criterion of area residence. The Board has long held that a union is not prohibited from trying to ease the impact of local unemploy- ment by attempting to cause employers to limit work opportunities to strictly local applicants.3 It is clear that a union violates Section 8(b)(1)(A) of the Act when, under an exclusive hiring agreement with an employer, it accords its own members preference injob referrals over nonmembers utilizing its hiring facilities . 4 Obviously , a union which insists upon preferential treatment of its own union mem- bers for the performance of unscheduled overtime work could violate the Act if, e.g., it is motivated for the purpose of enforcing or encouraging compliance with union-related obligations or adherence to the union in some other respect . We agree with the Administrative Law Judge that "a presumed or professed concern for local unemployment cannot prevail over proof of discriminatory intent to favor union members." However, we find such proof lacking in the instant case. As found by the Administrative Law Judge , there is no allegation in the complaint that the unscheduled overtime was given preferentially only to local union members and the brief of the General Counsel requests findings of discrimination only against "employees because they are not area residents." Accordingly , the issue is not whether certain employ- ees are accorded unlawful preferential treatment because they are union members , but whether the preferential treatment which local residents receive is in violation of the Act. The Administrative Law Judge first states that "it is not the Board's function to second-guess the wisdom of measures adopted by the parties to solve known problems ,"5 but subse- quently finds that "the absence of any rational nexus between a supposed problem and a purported remedy certainly suggests that the proffered explana- tion is sheer pretextual rationalization or cover-up of impermissible motivation ." The Administrative Law Judge rejected Respondents ' uncontradicted testimo- ny that the unscheduled overtime assignment policy here involved was adopted to assure an adequate supply of reliable labor to finish projects and to ensure the Employer a loyal, ready pool of local residents who will remain on the job until comple- tion, but finds that it is "manifestly unreasonable to believe that granting local residents priority in overtime work could do anything other than exacer- bate the problem ." We are unable to agree with her finding that there is no "rational nexus between the problem and the remedy" or that the proffered explanation is "sheer pretextual rationalization of impermissible motivation ." Respondents state, and it is not disputed, that travelers are less dependable than area workers and that local' experience has indicated that job completion schedules are usually met with area men and not travelers. Consequently, they accord preferential treatment in the assignment of unscheduled overtime to employees residing in the area. Such discrimination is clearly not per se unlawful nor does the nexus seem so suspicious as to require the Board to substitute its wisdom for that of the parties. In summary, we are not satisfied that the record indicates that Respondents had an unlawful purpose in their policy of according preferential assignment of unscheduled overtime to area resi- dents. In making this evaluation, we find that Respondents had a legitimate interest in favoring residents of the area and further find that the General Counsel did not meet its burden of proving that Respondents acted unlawfully in fulfilling such interests. Accordingly, we find that Respondent Union did not violate Section 8(b)(2) and (1)(A) of the Act by causing Respondent Romanoff Electric Corporation to give preference in the assignment of unscheduled overtime to local area employees and that Respondent Romanoff Electric Corporation did not violate Section 8(a)(3) and (1) of the Act by giving preference in the assignment of unscheduled overtime to local area employees. For the reasons stated above, we shall dismiss the complaint in its entirety. ORDER Pursuant to Section 10(c) of the National Labor Relations Act, as amended, the National Labor Relations Board hereby orders that the complaint be, and it hereby is, dismissed in its entirety. 3 See, e.g, Local Union No 337, United Association of Journeymen and Apprentices of the Plumbing and Pipefitting Industry of the United States and Canada, AFL-CIO (Townsend and Bottum, Inc), 147 NLRB 929 (1964). d Local Union 99, International Brotherhood of Electrical Workers, AFL- CIO (Crawford Electric Construction Co ), 214 NLRB No 28 (1974) 5 Chicago Federation of Musicians, Local 10, American Federation of Musicians (Shield Radio & TV Productions, Inc, et al ), 153 NLRB 68 (1965) DECISION STATEMENT OF THE CASE JOSEPHINE H. KLEIN, Administrative Law Judge: On March 19, 1973, John W. Hayes filed with the Regional Director for Region 8 a charge against International Brotherhood of Electrical Workers Local Union 8 (the Union), alleging violation of Section 8(b)(1)(A) of the Acti since September 19, 1972, specifically by failing to process grievances for Hayes, by discriminating in the operation of its exclusive hiring hall, and by discnininating against "travelers" in enforcing the collective-bargaining agree- 1 National Labor Relations Act, as amended (29 U S C Sec 151, et seq.) LOCAL UNION 8, IBEW ment with respect to travel time. On June 25, 1973, Darrell W. Elliott filed with the Regional Director for Region 7 charges against the Union and Romanoff Electric Corp., alleging that since August 1972 the Respondents had "followed a discriminatory practice of giving preference in overtime assignments to members of Local 8 . . . over travelers" and that on January 8, 1973, the Company had discharged Elliott because he "voiced criticism of its discriminatory overtime practices." A complaint was issued pursuant to Hayes' charge on August 14, 1974. On October 18, 1974, Elliott's charges were transferred from Region 7 to Region 8. On January 8, 1975, the three cases were consolidated and a consolidated complaint was issued thereon. Pursuant to due notice, a hearing was held before me in Toledo, Ohio, on April 9, 1975. Except for Charging Party Hayes, who failed to appear despite having been subpe- naed, all parties were present or represented by counsel and were afforded full opportunity to be heard, to present oral and written evidence, and to examine and cross- examine witnesses . The parties waived oral argument. Post hearing briefs have been filed on behalf of the General Counsel and both Respondents. Upon the entire record, together with careful observation of the witnesses and consideration of the briefs, I make the following: FINDINGS OF FACT 1. PRELIMINARY FINDINGS A. Romanoff Electric Corp., an Ohio corporation, with its principal office and place of business in Toledo, Ohio, is engaged in the business of performing electrical contract- ing in the building and construction industry. During the calendar year 1973 Respondent-Employer received materi- als and supplies valued in excess of $50,000 at its construction site in Monroe, Michigan, directly from points outside Michigan. During the years 1972 and 1973 Respondent-Employer performed services valued in excess of $50,000 for public utility corporations located outside the State of Ohio, such as Detroit Edison, Detroit, Michigan, which annually has a gross volume of business in excess of $500,000 and receives materials at its Michigan location valued in excess of $50,000 directly from points outside Michigan. Respondent-Employer is now, and has been at all times material herein, an employer engaged in commerce within the meaning of Section 2(2), (6), and (7) of the Act. B. Respondent Union is and has been at all times material herein a labor organization within the meaning of Section 2(5) of the Act. II. THE ALLEGED UNFAIR LABOR PRACTICES The consolidated complaint alleges that Respondents violated the Act by maintaining and enforcing an agree- 2 In their briefs Respondents request dismissal of "all charges filed on behalf of John D. Hayes" because his failure to appear "denied both respondents the opportunity to face its accuser and examine him regarding his allegations" or "rebut his allegations ." Obviously there is no occasion to "rebut" evidence which has not been presented or to cross-exarmne "witnesses" who have not testified And it is not essential that the 1133 ment whereby all unscheduled overtime work is assigned to employees "who are area residents" to the exclusion of "similarly qualified non-area residents" and that Respon- dent-Employer discriminated against Charging Party Elliott by denying him overtime work and by discharging him on January 8, 1973, for protesting the preferential assignment of overtime to area residents. A. Case 8-CB-2065 - John D. Hayes As previously stated, Hayes filed a charge against Respondent Union. But neither the original complaint nor the consolidated complaint sets forth any facts concerning him. At the hearing no evidence was adduced concerning him or connecting him with the matters litigated . Although counsel for the General Counsel in her brief requests a make-whole remedy for Hayes, there is nothing in the consolidated complaint or in the evidence which would support any such specific relief. It is true that Hayes' charge would support a complaint against Respondent Union even without any showing of personal interest in the matter . However, Elliott 's charge is sufficient to support the relevant allegations in the consolidated complaint. Because of his failure to appear at the hearing in response to a subpena , or to indicate in any other manner any continuing interest in the matter , it is believed that Hayes is no longer entitled to status as a party in this proceeding. Accordingly, I shall recommend dismissal of Case 8-CB-2065.2 B. Cases 8-CA-8674 and 8-CB-2495 1. The evidence Apparently for many years , Romanoff, as a member of the Toledo Electrical Contractors Association, Inc., has had collective-bargaining agreements with Local 8, I.B.E.W. The agreements , including the one covering the period here involved , contain- exclusive hiring hall and union-security provisions. The hiring hall provision sets forth four classifications of employees, in descending order of priority for referral to jobs. Only the first two classifications are involved in the present case. Group I embraces journeymen electricians3 with 4 or more years of experience who "are residents of the geographic area constituting the normal construction labor market [within Local 8's jurisdiction ] . . . and who have been employed for a period of at least two (2) years in the last three -(3) years under a Collective Bargaining Agreement between the parties to this agreement." Group II includes all journeymen applicants with 4 or more years of experience. In short, so far as here relevant, Group I covers journeymen residents in the Toledo area, while Group II includes nonresident journeymen (so-called travelers). The section on referral also provides that "The Union shall select and refer applicants for employment allegations of a complaint be proved through testimony of the Charging Party . My recommended dismissal Case 8-CB-2065 thus is not based on acceptance of Respondents ' arguments 3 "Journeymen" refers to people who "have passed an inside journey- man's examination given by a duly constituted Local Union of the I B.E W." 1134 DECISIONS OF NATIONAL LABOR RELATIONS BOARD without discrimination against such applicants by reason of membership or non-membership in the Union." The contract provides a basic workweek of five 8-hour days. 'Overtime is paid at twice the straight hourly rate. There is also a spread-the-work provision for a reduction of the normal workday to 7 hours whenever more than 35 members of Respondent Union have been out of work for more than 30 days. The contract also provides: "It is mutually agreed by the parties hereto that overtime work is generally undesirable and should be discouraged except when absolutely necessary."'Donald R. DeBolt, Local 8's business manager, testified that overtime is "discouraged." However, some projects within the area, principally large ones, operate on a regularly scheduled workweek of more than 40 hours for varying periods of time. Frequently a large construction project begins with a regularly sched- uled workweek of more than 40 hours for the purpose of attracting out-of-town workers (or travelers), and then, after an adequate pool of workers has been recruited, the scheduled hours are cut back to 40 per week. Some projects also operate regularly on workweeks of more than 40 hours if and when necessary to meet production dates or for similar reasons. In these instances all employees work "scheduled overtime." The project here involved was on a straight 40-hour-per-week schedule. From time to' time particular operations require some work beyond the regularly scheduled hours. On these occasions some employees, less than the total work force, are called upon on an ad hoc basis. It is this latter type of overtime work, called "unscheduled overtime," which is involved in 'the present case? Although the collective-bargaming agreements them- selves have never expressly so provided, some 19 years ago the labor-management committee established under the contract adopted a practice by which priority in unsche- duled overtime is given to members of Group I; i.e., area residents 5 The complaint alleges, and the General Counsel contends, that Group I members were given "exclusive rather, than merely "preferential" assignment to unsche- duled overtime. This contention is supported by Elliott's testimony that early in his employment he was told by Robert Beck, the union steward, that "there wasn't any overtime list except for the local people." However, DeBolt testified that "Travelers have been given unscheduled overtime." 6 Without necessarily discrediting Elliott's testi- 4 In her brief, counsel for the General Counsel says "It is important to note that although there are two forms of overtime available to a contractor, scheduled and unscheduled, the fact is that a contractor can use one or the other, but not both, on a job " The record does not support that statement. Specifically there is nothing to indicate that, for example, if a particular project was working a regularly scheduled workweek of five 9-hour days it would be prohibited from having occasional unscheduled overtime performed during the weekend This matter, however, is immaterial in this case. 5 The classifications in the contract refer only to "applicants for employment " Presumably, however, travelers remain nonresidents while working in the area 6 On cross -examination by counsel for the General Counsel, DeBolt testified Q But since 1956 or 1957, or for twenty years, travelers in this area have not been permitted to have unscheduled overtime9 A That is not true Q I am sorry Since that time, priority has been given to area residents, Group 19 mony as to Beck's statements (although I found Elliott a generally unreliable witness), I credit DeBolt and thus find that area residents are given priority in assignment of unscheduled overtime but travelers are not totally in assignment of unscheduled overtime but travelers are not totally excluded.? Indeed, the parties stipulated that "Only when [the list of] Group I applicants [is] exhausted is unscheduled overtime offered to applicants from other groups." DeBolt, Respondents' only witness, undertook to explain the reason for adoption of the practice. He testified: The policy is, and always has been, that this overtime is given to these people because they maintain their residency here, they maintain the job, they come on the job they stay on the j ob. We have to depend on these people to complete the job, where a guest comes in here to seek employment; and when he gets ready to go, he can just up and go. He don't care whether he leaves today or tomorrow, where the man who has his home here and his family here, he is devoted to the contractor, and we depend upon him to finish thatjob and need him. That is why. On cross-examination, he testified that through his many years of experience in the industry in numerous capacities (as employee and as both union and management representative) he had learned that travelers cannot be relied on to remain and finish a job. He testified in part: unscheduled overtime is only for the group 1 people,8 and I says why they keep it is it should be the people who have residencies here and maintain here and are steadily employed here, and the contractor depends upon them to finish the job, where a traveler, if he hears of another job on, overtime of greater degree or ,higher rates of pay - At another point he testified: Men come to me and say, is that all you got, forty hours, I'm leaving. Or if they go on a job and see it is overtime, they say, as soon as the overtime is over, I am going to leave, leave your jurisdiction. "A Since my history that has been given as I so stated Q But in your area, Mr. DeBolt, travelers haven't been given that unscheduled overtime for quite some time, is that correct9 7 A. That is not correct Travelers have been given - Q. I mean priority on unscheduled overtime, is that correct[9] A Travelers have been given unscheduled overtime It would appear virtually irrational for either the Union or the employers to preclude the possibility of having travelers work overtime if and when there are not enough Group I employees available to meet particular needs 8 This passing statement that "unscheduled overtime is only for the group 1 people" is insufficient to nullify the more specific testimony that Group II members have been assigned overtime work after Group I's priority has been met. LOCAL UNION 8, I-BEW Charging Party Elliott is a resident of Texas and a member of Local 479, I.B.E.W. He falls within Group II under Respondent's contract. In July 1972 he was hired by Romanoff for work on construction of the Maumee Powerhouse project, a large power generating project in the Toledo, Ohio, area. Of the approximately 200 electrical workers employed there, roughly half were area residents and half were travelers. The project consists generally of two parts: the interior of the powerhouse itself and a "precipitator" outside. Work on the precipitator is dirtier and harder than that on the powerhouse and, accordingly, work on the precipitator carries a premium wage rate. From the beginning, Elliott worked on the precipitator and some 90 to 95 percent of his work was compensated at the 10-percent premium rate. Elliott testified that employees were regularly assigned to, either part of the project with little or no interchange between the two .9 When Elliott reported to work on Monday, January 8, 1973, he observed that considerable work had been performed on the precipitator on the weekend. On being assigned, to work on the precipitator, where he had always previously worked, he protested, saying that "if the local men were good enough to work out there during the weekends, they could work out there during the week." Elliott said he was willing to work inside, on the powerhouse, but would not work on the precipitator any longer . According to Elliott, his foreman, Lee Mientkiewiz, then said: "I guess I'll have to fire you." Thereupon the foreman left to consult William Dworzak, the superinten- dent. The foreman soon returned to say that there was no other work available and therefore, since Elliott refused to work on the precipitator, he should go get his pay and termination slip. Elliott then went to the office. According to Elliott, Dworzak asked what the trouble was and Elliott said he refused to work on the precipitator, to which Dworzak replied that there was no other work available and he "didn't need [Elliott and a colleague] to run hisjob or his local union." On cross-examination, Elliott acknowledged that in a preheating affidavit he said "we had quit because the local men had worked up there Saturday and Sunday." At the hearing Elliott also inadvertently disclosed that he had quit the' job. In explaining why he had not signed the Union's out-of-work list after the termination, he said: "I went back and there was this other guy that had quit - had got fired at the same time as I did -." The General Counsel adduced some testimony from Elliott apparently designed to establish that thereafter the Union discriminatorily refused to refer Elliott to jobs. However, the complaint contains no such allegation. Additionally, at the hearing Elliott conceded that he did not seek employment in the Toledo area after January 8, 1973. There is no evidence establishing any discrimination in referrals to jobs. 9 In her brief, counsel for the General Counsel says: "The `travelers' or Group II , were assigned to work on a precipitator ." However , the record does not affirmatively establish any such general pattern of Job assignment. While it appears that there were around 100 travelers on the job, Elliott testified that on January 8, 1973, there were "probably around fifty" people 1135 2. Discussion and conclusions- a. Alleged discriminatory discharge The complaint alleges and the General Counsel main- tains that the Union caused Romanoff to-discharge Elliott because of his protest against the preferential assignment of overtime to members of `Group I. But the evidence unquestionably establishes that Elliott quit his job. It may be conceded that Elliott could not legally be fired for protesting the method of allocating overtime even if that method was perfectly legal. Local Union No. 444, Interna- tional Association of Bridge, Structural and Ornamental Iron Workers, AFL-CIO (Gust K Newberg Construction Compa- ny, 174 NLRB 1108 1969, enfd. 426 F.2d 229 , (C.A. 7, 1970). But an employee's protected right to protest does not embrace the self-help remedy of quitting. It is well established that an employee who quits iii anticipation, of an unlawful discharge or in protest against unfair labor practices is not deemed to have been constructively discharged. Walker Electric Company, 142 NLRB 1214, 1215 (1963); Coats & Clark, Inc., Clarkdale Plant 113 NLRB 237, 238 (1955), enfd. in pertinent part 241 F.2d 556 (C.A. 5, 1957); Action Wholesale Co., Inc., d/b/a A. L. French Co., 145 NLRB 627 (1964), enfd. 342 F.2d 798 (CA. 9, 1965); Acute Systems, Ltd., d/b/a McDonald's, 214 NLRB No. 127 (1974). Even if it were to be found that Elliott was fired, I should hold that his discharge was not violative of Section 8(a)(3) of the Act. It is undisputed that on January 8, 1973, he refused to work on the precipitator, where he was assigned. His termination slip reports - as the reason for the termination: "Refused job assignment, reason is Local 8 men worked overtime Saturday and Sunday." It is generally entirely proper for an employer-to discharge, an employee for refusal to execute a reasonable assignment. I know of no authority which would render this principle inapplicable where, as here, the employee's refusal was in protest against some other, essentially unrelated, conduct by the employer.i0 Overtime assignment practiceb. In her brief counsel for the General Counsel argues: The classifications in the contract between the Associa- tion and the Union are only permitted as a result of the specific statutory exception found in Section 8(f). Without the exception provided in the' Act the classifications themselves would be discriminatory under 8(b)(1)(A) and 8(b)(2) of the Act. No supporting authority is cited. Although Respondents do not appear to disagree with the General Counsel's position, it appears to be inaccurate . Section 8(f), added to the Act in 1959,11 contains at least some provisions which would be the law without that section. For, example, Section 8(f) authorizes agreements for exclusive hiring halls working on the precipitator. 50 There is no contention or evidence that Elliott was engaged in a protest strike On the contrary , he requested powerhouse work that day ' P.L. 86-257, 73 Stat. 519. - 1136 DECISIONS OF NATIONAL LABOR RELATIONS BOARD in the construction industry, although such agreements are permissible without any such special statutory authoriza- tion. Local 357, ' International Brotherhood of Teamsters, Chauffeurs, Warehousemen and Helpers of America [Los Angeles - Seattle Motor Express], v. N.L.R.B., 365 U.S. 667 (1961). - While Board cases sustaining geographical classifications have most often arisen in the construction industry, the decisions do not appear to have rested on Section 8(f). For example, in Local 369, International Hod Carriers Building and Common Laborers Union of America, AFL-CIO (McCloskey Construction Corp.), 147 NLRB 1209 (1964), Section 8(f) was not even cited. In Bricklayers, Masons and Plasterers' International Union of America, Bricklayers, Masons, Marble Masons, Tile Layers and Terrazza Workers Union No. 28, AFL-CIO (Plaza Builders, Incorporated), 134 NLRB 751 (1961), the Board adopted Trial Examiner Gilbert's decisionwhich said (at 754): "Absent any finding of pretext or sham, I am of the,opinion that preferential hiring or job retention based upon an objective criterion such as area residence, particularly in the construction industry, would not be violative of the Act." In Bricklayers, Masons and Plasterers International Union of America, Local No. 15, (Park Construction Company), 150 NLRB 1496 (1965), holding that a umon had not violated the Act in requiring the hiring and retention of resident employees in preference to nonresidents, the Trial Examiner said (at 1502): "The Act does not ... proscribe either discrimina- tion or coercion of discrimination; the prohibitions of the Act run against encouragement or discouragement of membership in a labor organization. . . . The Respondent here sought something different from enforcement of a union-security provision; it sought employment of a man from its, own area.' But in light of the statutory policy set forth in Section 8(f) permitting agreements according priority in referral to employees of a particular geographi- cal area, it cannot be said that the Respondent's aim was repugnant to the policies of the law." In adopting and supplementing the Examiner's decision, the Board did not refer to Section 8(f). See also Bricklayers, Masons and Plasterers' International Union of America, Local No. 2, AFL-CIO (Wilputte Coke Oven Division), 135 NLRB 323, 324 (1962), ' in which the Board, reversing the Trial Examiner, found no violation of the Act because it could not "infer that the layoff ... was caused by anything other than a desire, in an area of substantial unemployment, to retain available work for residents of the area." The Board made no reference to Section 8(f). See also Local 542, International Union of Operating Engineers (Koppers Co., Inc.) 117 NLRB 1863, 1869 (1957), enfd. 255 F.2d 703 (C.A. 3, 1958), decided in 1957 and assuming the propriety of classifications, based on residence before 1959. Thus it is unnecessary to decide whether, as maintained by the General Counsel, Section 8(f)(4) is applicable only to contractual provisions for hiring hall referrals (and, apparently, layoffs). Cf. Union,No. 444, Iron Workers (Gust K. Newberg Construction Co.), supra, 174 NLRB at 1110, footnote 13. Whether the overtime policy here involved violates the Act is to be resolved by general principles 12 It may be noted in passing that in Motor City, Local 58, LB E.W., A sister local of the present Respondent Union, settled the complaint against evolved in the administration of the Act, rather than merely by analysis of the wording and legislative history of Section 8(f)(4). It has frequently been repeated that "discrimination at the instance of a union is not per se an unfair labor practice." Marquette Cement Manufacturing Company, 213 NLRB 182 (1974). The General Counsel does not question the propriety of the classification of job applicants for referral to employment through the hiring hall. In hiring hall or job referral cases, the relevant question is whether the union "was legally motivated by the [employees'] residence outside the local geographical area or illegally motivated by their lack of membership in" the umon. Metropolitan District Council, United Brotherhood of Car- penters (Stump), 194 NLRB 159, fn. 2 (1971). An ostensible geographical classification cannot validate conduct which, as a matter of fact, is directed toward favoring union members over nonmembers. N. L. R. B. v. Local No. 2, of the United Association of Journeymen and Apprentices of the Plumbing and Pipefitting Industry of the United States and Canada AFL-CIO, 360 F.2d 428 (C.A. 2, 1966). If that motivation is shown, it will be presumed that the action encourages union membership within the stricture of Section 8(a)(3) of the Act, even where the discriminatees have been refused membership in the Union. The Radio Officers' Union of the Commercial Telegraphers' Union, A.F.L. V. N.L.R.B., 347 U.S. 17, 51 (1954); N. L.R.B. v. Local 11I United Brotherhood of Carpenters and Joiners of America, AFL-CIO, et al, Clenenski Construction Co. 278 F.2d 823, 825 (C.A. 1, 1960). There also can be no question that a classification purportedly based on the employees' residence cannot be used to cover up discrimination in favor of union members as against nonmember travelers in the assignment of overtime. Motor City Electric Company, 204 NLRB 460 (1973) (Sec. 8(a)(3) and (1));12 Air Conditioning, Refrigera- tion and Steamfitters Local Union No. 725 etc. (Bechtel Corp.), 194 NLRB 1089,(1972) (Sec. 8(b)(2) and (1)(A)). Motor City and Bechtel are not determinative precedents in the present case because in both cases it was assumed that "travelers" were distinguished from "members of the union" and therefore discrimination between the two classes, if shown, would unquestionably violate the Act. It might well be, as discussed'below, that the record in the present case would warrant an inference, as the General Counsel's brief states, that unscheduled overtime was given preferentially (or even exclusively) "'to only local union members." The insurmountable problem on this view, however, arises from the fact that the complaint contains no such allegation. Indeed, the General Counsel's brief requests findings of discrimination only against "employees because they are not area residents." It has never been held that preferences afforded area residents are per se invalid. 'Cf. Bobby Nick Ward v. N.L.R.B., 462 F.2d 8, 9, fn. I (C.A. 5, 1972). At least where referrals to employment are involved, the General Counsel must ",prove by a preponderance of the evidence that Respondent's motive'... was to seek preference for its members rather than for local' area men." Bricklayers, it alleging violation of Sec. 8(b)(I)(A) and (2) LOCAL UNION 8, ,iBEW Local 15, (Park Construction Company), 1500, supra, That "Group I" and "Union members" may, as a matter of fact, be coextensive classes, does not supply the missing allegation or proof as to motivation, the determinative fact. Cf. Bricklayers, Local 28 (Plaza Builders, Inc.), 134 NLRB 751, 753, (1961); International Union of Operating Engi- neers, Local No. 98, AFL-CIO (Consolidated Gas and Service Co.), 155 NLRB 850, 852 (1965). If there has been any violation of the Act in the present case, it must stem from the Union's'breach of its duty of fair representation, the Board's formulation of that principle having originated in Miranda Fuel, Co., 140 NLRB 181 (1962), erif. denied 326 F.2d, 172 (C.A. 2, 1963). As recently as September 5, 1974, in Marquette Cement Mfg. Co., supra, 213 NLRB 182 (1974), a panel of the Board (Members Jenkins, Kennedy, and Penello) em- braced the rule of N.L.R.B. v. Local 294 International Brotherhood of Teamsters, Chauffeurs, Warehousemen and Helpers of America, Independent [Valletta Motor Trucking Co., Inc.], 317 F.2d 746 (C.A. 2, 1963), which rejected the Board's "novel conclusion [in Miranda] .that ... a union violates the Act if it seeks ,unfair discrimination, even if that discrimination is not based on union membership or activity" and held, to the contrary, that "Referral by the union violates the Act only when there is discrimination based upon union membership or union activity." At 749, fn.4, 751. However, the duty of fair representation within Miranda has been enforced to censure discrimination by unions on the basis of sex, race, and nationality Local 106 Glass Bottle Blowers Association (Owens-Illinois, Inc.), and Local No. 245, etc., 210 NLRB 943 (1974); Pacfc Maritime Association (Local 52, I.L. & W. U), 209 NLRB 519' (1974), Local Union No. 12, United Rubber, Cork, Linoleum & Plastic Workers of America, AFL-CIO [League of Gadsen The Business], 150 NLRB 312 (1965), enfd. 368 F.2d 12 (C.A. 5, 1966), cert. denied 389 U.S. 837 (1967);'NL.R.B. v. I.L.A., Local 1581, 489 F.2d '635, 638 (C.A. 5, 1974). In what appears to be its latest consideration of the matter, the Board reaffirmed the Miranda view that the duty of fair representation requires "avoidance of arbitrary conduct." General Truck, Drivers, Warehousemen, Helpers and Automotive Employees, Local 315, International Brother- hood of Teamsters, Chauffeurs, Warehousemen and Helpers of America (Rhodes & Jamieson ,Ltd.), 217 NLRB No. 95 (1975), issued April 30, 1975. The majority of the Board panel in Rhodes & Jamieson consisted of Members Jenkins and Kennedy. While dissenting, Member Penello did not express disagreement with the Miranda rule and appears to have accepted it in General Truck'Drivers, Chauffeurs, and Helpers Union, etc., Local 692, International Brotherhood of Teamsters, Local 692, International Brotherhood of Team- sters, Chauffeurs, Warehousemen & Helpers of America (Great Western Unifreight System), 209 NLRB 446 (1974). Thus, while Member Fanning apparently stands by his original dissenting views in Miranda (see Pacific Maritime Association, (Local 52, I.L. & W. U), supra, 209 NLRB 519 (1974), and opinions there cited), it appears that a majority of the Board now stands foursquare behind Miranda. While Rhodes & Jamieson concerned an individual grievance or complaint, the governing principles are the same for alleged group and individual discriminations. See 1137 N.L.R.B v. Local 542, International Union of Operating Engineers, AFL, etc., [Koppers Co., Inc.] 255 F.2d 703, 705 (C.A. 3, 1958): "[I]f ... the union has in fact required the employer to act in subservience to its referral scheme and internal regulations, it does not matter whether the means of coercion was a collective bargaining agreement or a demand unsupported by any bargain." See Local 315, Teamsters (Rhodes & Jamieson, Ltd), supra, 217 NLRB No. 95. It thus appears that a union violates the Act when it makes invidious or arbitrary classifications among employ- ees. The burden, of course, is on the General Counsel to establish the violation; i.e., that the priority classification followed in assigning overtime was invidious, arbitrary, and unrelated to legitimate concerns of the union and the employers. N.L.R.B. v. Local 2, Plumbers, supra, 360 F.2d 428. In the present case the General Counsel adduced no affirmative evidence to establish that the classification was arbitrary or invidious as applied to overtime assignment. However, there may be situations in which a classification may be so inherently discriminatory and so manifestly unrelated to any legitimate objective as to be presumptive- ly improper on its face. As said in Local 315, Teamsters (Rhodes & Jamieson, Ltd), supra: [I]f a duty to avoid arbitrary conduct, as part of an affirmative, fiduciary responsibility, means anything, it must mean at least that, there be a reason for action taken . ' Sometimes the reason will be apparent, some- times not. When it is not the circumstances may be such that we will have no choice but to deem the conduct arbitrary if the' union does not tell us what it is. It may well be that, as suggested by the spread-the-work provisions in the contract, affording priority to area residents in referral to and retention on jobs is a legitimate means of preserving work for local residents and prevent- ing or ameliorating local unemployment. As said in Local Union No. 337, United Association of Journeymen and Apprentices of the Plumbing and Pipefitting Industry of the United States and Canada (Townsend and Bottum, Inc.), 147 NLRB 929, 930-931 (1964): "[T]he Act doesnot prohibit a union from trying to ease the impact of local unemploy- ment by . . . attempting to cause employees to limit work opportunities to strictly local applicants." Cf. International Typographical Union, Columbus Typographical Union No. 5 AFL-CIO (Dispatch Printing Company), 177 NLRB 855, affd. 437 F.2d 454 (CA. 6). New York Typographical Union Number six International Typographical Union AFL-CIO (New York Times), 144 NLRB 1555, 1558 (1963), affd. 336 F.2d, 115 (C.A. 2, 1964). But a presumed or professed concern for local unemployment cannot prevail over proof of discriminatory intentto favor union members. Everett Construction Company, Inc., 186 NLRB 240 (1970), remanded sub nom. Ward v, N.L.R.B., supra, 462 F.2d 8 (C.A. 5, 1972), reversed, 198 NLRB 1113 (1972). In Everett, the Board, reversing Trial Examiner Gillis, held that the respondent union and employer had acted out of concern for local unemployment rather than simply to favor union members. The Fifth Circuit, however, held that the Board had unwarrantedly reversed the Trial Examin- 1138 DECISIONS OF NATIONAL LABOR RELATIONS BOARD er's credibility determinations and that there was no substantial evidence to support the Board's finding. On the remand, the Board accepted. the court's decision and adopted the Examiner's order,, without expressing any reservations. While preference to area residents in obtaining and retaining employment may be reasonably calculated to prevent or ameliorate local unemployment, it is difficult to see how preference in the allocation of overtime could serve,such purpose. No alternative explanation for over- time preference to area residents readily suggests -itself. Although it is not the Board's function to second-guess the wisdom of measures adopted by the parties to solve known problems Chicago Federation of Musicians, (Local 10, American Federation of Musicians (T. V. Productions, Inc.), 153 NLRB 68, 84 (1965), the absence of any rational nexus between a supposed problem and the purported remedy certainly suggests that the, proferred explanation is sheer pretextual. -,rationalization or, coverup of impermissible motivation. i3 As set forth above, Respondents maintain that the overtime assignment policy here involved was adopted to assure an adequate supply of reliable labor to finish projects. As stated in the Union's brief, the priority "ensures for the Employer a loyal, ready pool of local residents who will remain on the job until completion. For the Union, that is composed of local residents, it provides a mechanism whereby its members receive preference on a limited assignment , of unscheduled overtime." According to DeBolt, travelers are unreliable because they are inclined to depart for greener ' pastures when overtime ends. Whether DeBolt was referring to scheduled overtime (in which travelers participate equally with local employees) or unscheduled overtime, or both, it is manifestly unreasonable to believe that, granting local residents priority in overtime work could do anything other than exacerbate the problem. There was no evidence that local residents ever leave jobs, or threaten; to do so, when overtime is cut down or eliminated. And, as a matter of sheer common sense, it seems most unlikely that area residents would leave and assume the expense, inconven- ience, and possible hardship of maintaining second residences merely because they were denied -priority in sporadic and infrequent unscheduled overtime. In this connection it should be noted that, as DeBolt testified and the collective-bargaining agreement provides, overtime work is discouraged, and Respondent emphasizes in its brief that very little unscheduled overtime is performed. If Respondents were really concerned with assuring 'a continuing adequate supply of labor, it would appear more reasonable to afford priority in overtime to the travelers, who generally have the additional expense of maintaining temporary second residences and who, according to Respondent Union's business manager, actually do quit when overtime peters'outJ4 The inherent illogicality and incredibility of Respondents' explanation convinces me 13 The real motive which readily comes to mind is a desire to favor members of the Union. Federation of Telephone Workers of Pennsylvania, Local 58 (Bell Telephone Company of Pennsylvania), 194 NLRB 461, 467 (1961); International Union of Elevator Constructors, Local No 1, AFL-CIO (N Y Elevator Manufacturers' Association, 214 NLRB No. 51 (1974) Cf International Longshoremen 's Association, Local No 1581 AFL-CIO that the preference here involved constitutes `action by a union that impinge[s] upon the employment relationship which [is] arbitrary, invidious; or irrelevant to legitimate union interests." Ashley, Hickham-UHR Co. (Local 1102; Carpenters), 210 NLRB 32 (1974). It may well be that there would be, no violation of Section 8(a)(3) and (1) of the Act if the employer had adopted the overtime preference, policy on its own initiative without the instigation or agreement of the Union. However, as said in N.L.R.B. v. I.L.A., Local 1581, supra, 489 F.2 at 637: Section 8(b)(2) is not concerned solely with situations where the discrimination involved is between union members and nonmembers, or between "-good" mem- bers and "bad or indifferent" members . . . . It applies where the union has induced the employer to discrimi- nate on the basis of any invidious or arbitrary classification ....' Under Miranda, supra, 140 NLRB at 190, when an employer aquiesces' in and acts pursuant to a union's instigation of invidious discrimination, the employer violates Section 8(a)(3) and (1). Compare Jubilee Manufac- turing Company, 202 NLRB 272 (1973), with Pacific Maritime Association (Local 52, I.L. & W.A.), supra.15 Contrast Locals 106 and 245, ^ Glass Bottle Association (Owens-Illinois, Inc.), 210 NLRB 943 (1974). On all evidence, for the reasons set forth above, I find that the Union violated Section 8(b)(1)(A) and (2) and Romanoff violated Section 8(a)(3) and (1) of the Act by granting preference to, area residents in the assignment of unscheduled overtime. c. Denial of overtime to Elliott The General Counsel contends that Respondents violat- ed the Act by denying overtime work to Elliott "because he was not a member of Group I, an area resident." There is no doubt that Elliott was not given any unscheduled overtime work and that he would not be given any so long as Group I members were available for such assignment. On the other hand, there is"no evidence that there would have been overtime available for him in the absence of the unlawful preference to Group I members. The only unscheduled-overtime on the job shown by the record was performed on the weekend of January 6-7, 1973. Although not entirely 'precise, Elliott's testimony indicates that the work on the precipitator performed at that time was done by employees regularly assigned to work on the powerhouse. There was no contradiction of Elliott's testimony that there was little' or'no interchange between the powerhouse and precipitator crews. The collective-bargaining agreement' contains no provision for honoring seniority in any respect. Under these circum- stances, it is perhaps reasonable'to assume that, in the absence of the unlawful preference to Group I members, (Manchester Terminal Corporation), 196 NLRB 1186; 1181 enfd. 489 F.2d 635 (C A. 5, 1974). If it had been so alleged, I should so find in this case. 14 No opinion is here expressed as to whether such reverse discnmina- tion would be lawful. i5 But cf. George Williams Sheet Metal Co (Local 67, Sheet Metal Workers), 201 NLRB 1050, 1055 (1973). LOCAL UNION 8, IBEW 1139 unscheduled overtime work on the precipitator would be given to employees regularly assigned to the precipitator, But the General Counsel adduced no evidence as to the number of employees given overtime work on January 6 and/or 7, 1973, or as to the number regularly assigned to the precipitator. Thus, it cannot be said that the General Counsel has established that Elliott, as an individual, was denied unscheduled overtime. Actually, Elliott was but one member of the homogeneous Group II, whose members, as a class , were denied equal opportunity with Group I members . The present record is insufficient for a determi- nation of how many, if any, members of Group II were actually unlawfully denied overtime work. Accordingly, I shall recommend dismissal of the specific allegation that Elliott was unlawfully denied overtime. International Longshoremen's and Warehousemen's Union, Local No. 13 (Pacific Maritime Association), 192 NLRB 260, 264, fn. 24 (1971). I shall, however, recommend that Elliott, along with other members of Group II, be provided an opportunity to establish the amount of the monetary loss, if any, suffered as a result of being unlawfully denied overtime work. CONCLUSIONS OF LAW 1. Local Union 8, International Brotherhood of Electri- cal Workers, is a labor organization within the meaning of Section 2(5) of the Act. 2. Romanoff Electric Corp. is an employer engaged in commerce within the meaning of Section 2(2), (6), and (7) of the Act. 3. By causing Respondent Romanoff Electric Corp. to give preference in the assignment of unscheduled overtime to employees in Group I, as defined in the "Referral Procedures" provisions of its collective-bargaining agree- ment with Toledo Electric Contractors Association, Inc., Respondent Union (Local 8, I.B.E.W.) has violated Section 8(b)(2) and (1)(A) of the Act. 4. By giving preference in the assignment of unsche- duled overtime to employees in Group I, as defined in the "Referral Procedure" provisions of the collective-bargain- ing agreement between Local 8, I.B.E.W., and Toledo Electric Contractors Association, Inc., Respondent Roma- noff Electric Corp. has violated, and is violating, Section 8(a)(3) and (1) of the Act. 5. The- General Counsel has not established by a preponderance of the evidence that the Respondents have committed any unfair labor practices other than as set forth-in 3 and 4, above. THE REMEDY having found that Respondent Union and Employer, respectively, have violated Section 8(b)(l'XA) and (2) and Section 8(a)(3) and ( 1), I shall recommend issuance of an order containing the cease -and-desist , recordkeeping, and notice posting requirements customary in such cases. Additionally, since I have found that Respondents have discriminated against employees in Group II (travelers), I shall recommend that the Respondents be required, jointly and severally, to make whole any employees who may have suffered financial loss as a result of the discrimination against them in the assignment of unscheduled overtime Cf. international Brotherhood of Boilermakers, Iron Shp Builders, Blacksmiths, Forgers and Helpers, Local 101, (Stearns-Roger Corporation), 206 NLRB 30, fn. 3 (1973). Any backpay due hereunder shall be computed in accordance with F. W. Woolworth Company, 90 NLRB 289 (1950), with 6-percent per annum ' interest in accordance with Isis Plumbing & Heating Co., 138 NLRB 716.(1962). [Recommended Order omitted from publication.] Copy with citationCopy as parenthetical citation