Louisiana-Pacific Corp.Download PDFNational Labor Relations Board - Board DecisionsMay 21, 1987283 N.L.R.B. 1079 (N.L.R.B. 1987) Copy Citation LOUISIANA-PACIFIC CORP. Louisiana-Pacific Corporation and Millmen's Local No. 1495, United Brotherhood of Carpenters and Joiners of America. -Case 20-CA-19070 21 May 1987 DECISION AND ORDER BY CHAIRMAN DOTSON AND MEMBERS BABSON AND STEPHENS On 10 May 1985 Administrative Law Judge Mi- chael D. Stevenson issued the attached decision. The General Counsel filed exceptions and a sup- porting brief, the Charging Party filed exceptions and a supporting brief, and the Respondent filed a- reply brief. The National Labor Relations Board has delegat- ed its authority in this proceeding to a three- member panel. The Board has considered the decision and the record in light of the exceptions and briefs and has decided to affirm -the judge's rulings, findings,1 and conclusions only to the extent consistent with this Decision and Order. The record shows that on 12 March 19842 the Respondent purchased the assets of Diamond Inter- national Corporation.3 Diamond's employees were laid off. At that time, the Union had been the rep- resentative of Diamond's employees since 1937, and Diamond and the Union were parties to a col- lective-bargaining agreement due to expire in July 1985. About the time of the sale, the Respondent's plant manager, Peruman, began interviewing candi- dates for employment, including a number of Dia- mond's employees. During the course of these interviews, several applicants, who were former Diamond employees, made unsolicited negative comments about unions in general and the Charg- ing Party in particular. As of 16 April the Re- spondent had hired a complement -of 83 unit em- ployees, '78 of whom were former Diamond em- ployees. By letter dated 17 April, the Union's president Holm informed the Respondent that the Union rep- resented a' majority of the Respondent's employees, that this majority consisted of former Diamond em- ployees, and that, as a successor to Diamond, the Respondent was obligated to bargain with the Union. The letter also requested that the Respond- 1 The General Counsel and the Charging Party have excepted to some of the judge's credibility findings. The Board's` established policy is not to overrule an administrative law judge's credibility resolutions unless the clear preponderance of all the relevant evidence convinces us that they are incorrect. Standard Dry Wall Products, 91 NLRB 544 (1950), enfd. 188 F.2d 362 (3d Cir. 1951) We have carefully examined the record and find no basis for reversing the findings a All dates are 1984 unless noted otherwise The judge found that the' Respondent is a legal successor to Dia- mond International and there were no exceptions taken to that finding. 1079 ent contact Holm to arrange a meeting for the pur- pose of collective bargaining. On 23 April the Re- spondent's personnel manager' agreed, to meet with Holm and other union officials to discuss the Union's position, but not to negotiate. This conver- sation was confirmed by letter from the Respond- ent to the Union dated 25 April. At a meeting held 27 April, the Respondent expressed doubt regard- ing the Union's claim that it represented a majority of the Respondent's employees.4 Holm again as- serted the Union's claim as' to its majority status and requested bargaining. The Respondent then proposed, inter alia, an expedited election on this' matter, but did not accede to the demand for bar- gaining. Following the Union's request for bargaining on 17 April, the Respondent continued to receive re- ports of employee dissatisfaction with the' Union, from both employees and supervisors. -On 20 July the Respondent held a poll for the purpose of de- termining employee support for the Union. The re- sults of the poll showed 21 votes for, and 75 votes against, continued union representation. The judge found that the Respondent's refusal to recognize and bargain with the Union was justified on the basis that the Respondent had relied,on evi- dence sufficient to establish a reasonably based doubt of the Union's majority status as of 17 April 1984. The judge also found the 20 July 1984 poll of employees was not unlawful as it was untainted by unfair labor practices and similarly was based on objective factors which placed the Union's majori- ty status. in doubt We disagree for the reasons below. We find insufficient support- for the Respondent's claim that it had a reasonably based doubt of the Union's majority, status on 17 April. In order to find a reasonably based doubt, the Board has long held that the asserted doubt must be based on ob- jective considerations and raised in a context free of unfair labor practices. See, e.g., Golden State Ha- bilitation Convalescent Center, 224 NLRB 1618 (1976); Terrell Machine 'Co., 173 NLRB 1480 (1969), enfd. 427 F.2d 1088 (4th Cir. 1970). The record shows that the Respondent based its withdrawal of recognition-on 17 April on the fact that approximately 15 former Diamond employees had made unsolicited declarations to the Respond- ent regarding their dissatisfaction with the Union or union representation.5 Of these 15 employees, 6, ' The evidence that formed the basis for the Respondent's claim is dis- cussed below. 5 The judge indicated that Peruman received such comments from "man}" employees. He then specified 12 employees The judge indicated that Supervisor William Reidenhauer had said he also spoke to "many" Continued 283 NLRB No. 161 1080 DECISIONS OF THE NATIONAL LABOR RELATIONS BOARD stated in employment interviews that they no longer wished to be working in a union shop be- cause unions discriminated against good employees, and 6 stated in employment interviews that they did not wish to be represented by the Union. Addi- tionally, two employees, including Sanders, a former union shop steward, expressed the hope to Supervisor Reidenhauer that the employees would not get the Union back, and one employee, Charles Harker, a former member of the Union's negotiat- ing committee, expressed the view to Reidenhauer that a majority of employees, including himself, did not want the Union. The record also shows that Robert Thayer, a former union vice president and trustee, testified that sometime after he was hired on 16 April, he spoke' i6to between 30.-45 employees who did not want the Union' and approximately 15 employees who indicated that the Union might be better than "nothing. Thayer conveyed these sentiments to the Respondent sometime in late April or early May (after 17 April but before the 20 July poll). The foregoing demonstrates that as of 17 April, the day,on which the Respondent withdrew recog- nition from the Union, the evidence of employee dissaffection with the Union -known to the Re- spondent 'consisted of the statements of approxi- mately 15 employees.6 We fmd these '15 cited in- stances of employee sentiment, without more, and representing the views of less than 20 percent of the' complement of 83 employees, insufficient to support the Respondent's claim of a reasonably employees who made unsolicited comments about their desire not to be represented by the Union He named 6 employees , 3 of whom were al- ready included in Peruman 's total of 12 . Thus, a total of 15 different em- ployees were named by the Respondent. s With respect to the statement of employee Harker purporting to rep- resent the views of other employees, we find that little weight can be-ac- corded to such a statement. Otherwise, "a few antiunion employees could provide the basis' for a withdrawal of recognition when in fact there is actually an insufficient basis for doubting the Union's continued majori- ty." Golden Spite Habilitation Convalescent Center, supra at 1619-1620 The Respondent contends that evidentiary weight should also be given' to 27 April reports of a lack of employee support from the Union's presi- dent Holm, relying on J & J Drainage Products Co., 269 NLRB 1163 (1984) Holm's statements to management regarding the degree of em- ployee support for the Union were made at a meeting on 27 April, some 10 days after the Respondent refused to recognize the Union It is well settled that an employer is not entitled to rely on reports of employee disaffection with the union to support a claim of reasonable doubt as to the union 's' majority after it has withdrawn recognition See, e g., First Food Ventures, 229 NLRB 1228, 1230 (1977). Further, to the extent that the,Respondent relies on J & J Drainage Products to suggest that the testi- mony regarding employee disaffection with the Union from former Union Officials Harker and Sanders likewise warrants greater weight, we find no merit to this contention In J & J Drainage Products, the Board found that statements by a union officer that most of the unit employees did not want the union were entitled to greater weight where the report came from one of two current shop stewards in a relatively small unit of 32 employees Here, the individuals making the reports were a former ne- gotiating committee member and a former union shop steward whose term expired approximately 3 years before the events in issue . We see no reason to - impute special knowledge regarding current employee union sentiment to these two individuals because of their former positions. based doubt of the Union's majority status.7 Thus, we fmd that the Respondent's refusal to bargain with the Union as of the time of the -Union's re- quest on 17 April to be unlawful.8 The judge also found that the 20 July poll was lawfully predicated upon an objective basis for doubting the Union's majority status. In light of the foregoing, however, we fmd that the Respondent's unlawful refusal to bargain on 17 April undermined any objective basis that it otherwise might have had to conduct, the 20 July poll of its employees. Accordingly, we find that the poll violated Section 8(a)(1) of the Act.9 ORDER The National Labor Relations Board orders that the Respondent, -Louisiana Pacific Corporation, Chico, California, its officers, agents ; successors,' and assigns, shall 1. Cease and desist from (a) Refusing to bargain with Millmen's Local No. 1495, United Brotherhood of Carpenters and Joiners of America, as the exclusive representative of the employees in the following appropriate bar- gaining unit: All production and maintenance employees employed by Respondent at its Chico, Califor- nia facility, excluding clerical employees, guards and supervisors as defined in the Act. - (b) Polling or otherwise interrogating its employ- ees to ascertain their union views in the absence of 7 See, e g ., Cornell of California, 222 NLRB 303, 306 (1976), enfd 577 F 2d 513 (9th Cir 1978) In reaching a contrary conclusion, the judge relied on Riverside Product Co., 242 NLRB 615 (1979), and U-Save Food Warehouse , 271 NLRB 710 (1984) We find these cases inapposite. In those cases, unlike here, the employer based its claim of a reasonably based doubt of the union's ma- jority status on the views expressed by a clear majority of the employees We find that Sofco, 268 NLRB 159 (1983), also relied on by the judge, is inapposite In Sofco, virtually all the employees told the plant manager that they desired to be rid of the union. Further, as noted in fn 10 of Sofco, "testimony concerning conversations directly with the employees involved, as here, is much more reliable than testimony concerning merely a few employees ostensibly conveying the sentiments of their fel- lows See NLRB v Middleboro Fire Apparatus, 590 F.2d 4, enfg. 234 NLRB 888 (1978)." In the present case, the Respondent's impressions of employee sentiment, inferred from that of a few employees, does not rebut the presumption of continued majority status 8 The judge found that Thayer's testimony set forth above, although not directly related to evidence regarding the lack of union support before '17 April tended to corroborate the testimony of other witnesses who informed the Respondent of antiunion sentiment Contrary to the judge, we find such evidence irrelevant to a determination of whether the Respondent had objective considerations sufficient to support a reason- ably based doubt as to the continued majority status of the Union, where the evidence concerns conversations occurring after the Respondent had unlawfully failed to bargain and where the Respondent's action may have contributed to an erosion of employee support for the Union See, e.g, Orion Corp, 210 NLRB 633, 634 (1974), enfd 515 F2d 81 (7th Cir 1975) 9 We need not pass on the General Counsel's contention that the manner in which the poll was taken was unlawful. LOUISIANA-PACIFIC CORP. objective considerations warranting a reasonable doubt of the Union's continuing status as the col- lective-bargaining representative of the majority of its employees. (c) In any like or related manner interfering with, restraining, or coercing employees in the ex- ercise of the rights guaranteed them by Section 7 of,the Act. 2. Take the following, affirmative action neces- sary to effectuate the policies of the Act. (a) On request, bargain with the Union as the ex- clusive representative of the employees in the fol- lowing appropriate unit concerning terms and con- ditions of 'employment and, if an understanding is reached, embody the understanding in a signed agreement: All production and maintenance employees employed by Respondent at its Chico, Califor- nia facility, excluding clerical employees, guards and supervisors as defined in the Act. (b) Post at its Chico, California facility copies of the attached notice marked "Appendix."10 Copies of the notice, on forms provided by the Regional Director for Region 20, after being signed by the Respondent's authorized representative, shall be posted by the Respondent- immediately upon re- ceipt and maintained for 60 consecutive days in conspicuous places including all places where no- tices to employees are customarily posted . Reason- able steps shall be taken by the Respondent to ensure that the notices are not altered, defaced, or covered by any other material. (c) Notify the Regional Director in writing within 20 days from the date of this Order what steps the Respondent has taken to comply. CHAIRMAN DOTSON, dissenting. I agree with the judge that even assuming it was a successor employer the Respondent had on 17 April 1984 a sufficient objective basis for doubting the Union's majority status . Therefore, the Re- spondent did not act unlawfully when it refused to bargain with the Union. Accordingly, I would adopt the judge's recommendation that the com- plaint be dismissed. 10 If this Order is enforced by a judgment of a United States court of appeals, the words in the notice reading "Posted by Order of the Nation- al Labor Relations Board" shall read "Posted Pursuant to a Judgment of the United States Court of Appeals Enforcing an Order of the National Labor Relations Board." APPENDIX 1081 NOTICE To EMPLOYEES POSTED BY ORDER OF THE NATIONAL LABOR RELATIONS BOARD An Agency of the United States Governijient The National Labor Relations Board has found that we violated the National Labor Relations Act and has ordered us to post and abide by this notice. Section 7 of the Act gives employees these rights. To organize To form, join, or assist any union To bargain collectively through representa- tives of their own choice To act together for other mutual aid or pro- tection To choose not to engage in any of these protected concerted activities. WE WILL NOT refuse to bargain with Millmen's Local No. 1495, United Brotherhood of Carpenters and Joiners of America, as the exclusive represent- ative of our employees in the bargaining unit found below. WE WILL NOT poll our employees or otherwise ask them about their union views, in the absence of objective considerations warranting a reasonable doubt of the Union 's continuing status as the col- lective-bargaining representative of the majority of our employees. WE WILL NOT in any like or related manner interfere with, restrain, or coerce you in the exer- cise of the rights guaranteed you by Section 7 of the Act. WE WILL, on request, 'bargain with the Union and put in writing and sign any agreement reached on terms and conditions of employment for our employees in the bargaining, unit: All production and maintenance employees employed by us at our Chico, California facili- ty, excluding clerical employees, guards and supervisors as defined in the Act. LOUISIANA-PACIFIC CORPORATION Sally Spencer, Esq., for the General Counsel. Charles S. Loughran, Esq., of Walnut Creek, California, for the Respondent. DECISION STATEMENT OF THE CASE MICHAEL D. STEVENSON, Administrative Law Judge. This case was tried before me at Chico, California, on 10 1082 DECISIONS OF THE NATIONAL LABOR. RELATIONS BOARD January 1985,1 pursuant to a complaint issued by the Re- gional Director for Region 20 on 30 August 1984, and is based on a charge filed by- Millmen's Local No. 1495, United Brotherhood of Carpenters and Joiners of Amer- ica (the Union), on 20 June. The complaint alleges that Louisiana Pacific Corporation (Respondent) has engaged in certain violations of Section 8(a)(1) and (5) of the Na- tional Labor Relations Act. Issues (1) Whether Respondent is a successor to Diamond International Corporation and is therefore legally re- quired under the Act to recognize and bargain with the Union, the designated exclusive bargaining representative of a production and maintenance unit at Diamond. (2) Whether, at all times relevant, Respondent pos- sessed a good-faith doubt that the Union represents a ma- jority of unit employees. (3) Whether Respondent violated the Act by taking a poll of unit employees about 20 July. All-'parties were given -full opportunity to participate, to introduce relevant evidence, to examine and cross-ex- amine witnesses, to argue orally, and to file briefs. Briefs, which have been carefully considered, were filed on behalf of the General Counsel and Respondent. On the entire record of the case, and from my obser- veration of the witnesses and their demeanor, I make the following FINDINGS OF FACT 1. RESPONDENT'S BUSINESS Respondent admits that` it is a Delaware corporation engaged in the processing and wholesale distributing of lumber and related products and having a plant located in Chico, California. It further admits that during the past year,' in the course and conduct of its business it has purchased and received products, goods, and materials valued in excess of $50,000 from suppliers outside the State of California. Accordingly, it admits, and I find, that it is an employer engaged in commerce and in' a business affecting commerce within the meaning of Sec- tion 2(2), (6), and (7) of the Act. II. THE LABOR ORGANIZATION INVOLVED Milimen's Local No. 1495, United Brotherhood of Carpenters - and Joiners of America is a labor organiza- tion within the meaning of Section 2(5) of the Act.2 III. THE ALLEGED UNFAIR LABOR PRACTICES A. The Facts About 12 March, Respondent purchased the assets of Diamond International Corporation (Diamond) wood re- manufacturing plant located at Chico. Prior to the sale, Diamond had a collective-bargaining relationship with the Union for a production and maintenance unit extend- ing back several decades. The Union was certified as the ' All dates refer to 1984 unless otherwise indicated 2 See Diamond International Corp, 271 NLRB 1051 (1984) collective-bargaining representative of Diamond,employ- ees in 1937. The last collective-bargaining agreement ex-, ecuted on 12 July 1983, ran from 1983 to 1985 (G.C. Exh. 2). The first and only witness for the General Counsel was Karl Holm, president and business representative for the -Union for the past 5-1/2 years. Before his -present po- sition and that of union -organizer for -6 months, Holm worked for Diamond in its Chico plant for. 10 years. Holm held various jobs-in' the plant including setup man, millworker, and box factory employee. Between his jobs with the Union and for Diamond in the plant, Holm was familar with the various employee classifications in the plant. Regarding the plant itself, the parties stipulated to the operations contained therein under -Diamond and the number of employees employed in each: (1) National wholesale sales-three hourly employees represented by the Union under a separate contract cov- ering that operation. (2) Apiary supply (provided beekeeping supplies)- three hourly employees represented by the Union under a separate contract covering the operation. (3) Trucking operation-13 employees under a, sepa- rate collective-bargaining agreement with the Teamsters Union. (4) Prefinished plant facility-18 employees under, a separate collective-bargaining agreement with the Team- sters Union. (5) Remanufacturing plant (the process of reprocessing finished lumber into higher valued products such as window frames, door -jambs, etc.)-approximately 150- 160 employees represented by the Union pursuant to General Counsel's Exhibit 2. It is further stipulated that -Respondent did not carry on the operations described in paragraphs 1-4 above, and therefore it did not hire any employees in those catego- ries (R. Br. 134-135). About 1 month before the sale, Holm began to hear rumors about it. The first hard news did not reach Holm until Saturday, 10 March, when Holm met with a com- pany official named Cummings, who was vice 'president of 'industrial relations for Diamond.- The latter informed Holm that' the 130-150 unit employees then working in the plant could complete their shift for the day and work normal 'shift the following day. On Monday, 12 March, Cummings said the men would report as usual, be, paid for 2 hours showup time, and then be laid off by Dia- mond. This is exactly what happened. Almost immediately after the sale of assets, and possi- bly even before, Respondent began its hiring process of new employees. The selection of new employees was done by Nathan Peruman, who was as of 12 March Re- spondent's plant manager and a witness at hearing. Before assuming his present job, Peruman was produc- tion sales coordinator at Respondent's Red Bluff plant, located about 40 miles from Chico. Peruman also previ- ously worked for Diamond in the Chico plant for a period of 5 years until November 1978, when he left to work for Respondent. LOUISIANA-PACIFIC CORP. During the first 3 weeks after Respondent purchased the assets of Diamond, Peruman personally interviewed every applicant for employment spending about 15 min- utes with each applicant. Advertisements for openings had been placed in local radio and newspapers. Because Respondent desired to hire experienced employees, most persons hired were former Diamond employees. Peru- man made a point of speaking to former Diamond super- visors to inquire about the job applicants who had worked at Diamond and ascertain who was the most competent. During the interviews, Peruman explained the differences between the new operation and the old and asked each applicant about his prior background and experience. Although Peruman never mentioned the sub- ject of unions, several applicants made negative com- ments about unions in general or Charging Party in par- ticular. More about the conversations during the job interviews will be provided below. The parties agreed that as of 16 April, out of 83 unit employees, 78 were former Diamond employees and members of the bargaining unit represented by the Union and were members of the Union (R. Br. 8-9). By 17 April Peruman had interviewed about 110 applicants. It was also agreed that as of 20 July, out of 97 employees, 83 were former bargaining unit employees.3 Concerning supervisors, the parties agreed that the plant manager under Diamond was changed. However, four out of five supervisors of production and mainte- nance under Diamond were hired by Respondent (R. Br. 10-11). The four were Ron Bolton, Gerald Sharp, Virgil Schlect, and Bill Reidenhauer. Regarding the plant operation, the location stayed the same under both Diamond and Respondent. Certain changes were made by Respondent, however, in the product mix and in the customers serviced. These changes will be discussed in detail below. After the changeover began, Holm and other union of- ficials contacted the membership by telephone, to ensure that they submitted applications for new employment. According to Holm, he attended to other-details as well, such as on 16 April, engaging in a telephone call with Don Gritz, Respondent's personnel manager at the Red Bluff plant. Allegedly, Holm followed the prior instruc- tions of union attorneys and told Gritz that because Re- spondent was a successorship, the Union was demanding bargaining as it represented -a majority of Respondent's unit employees at Chico. Holm testified that Gritz re- sponded by agreeing with him, saying that by law, Re- spondent did have a duty to bargain with the Union. Gritz promised to consult with Peruman to arrange a meeting and get back to Holm. On 17 April, Holm wrote a letter to Peruman that read as follows: Louisiana-Pacific Corporation Sierra Division - Chico Operations West 16th Street Chico, CA 95926 ATTN: Nathan Peruman, Plant Manager 3 These figures compare to 115 production and maintenance- unit em- ployees that had been employed by Diamond Dear Mr. Peruman: 1083 Millmen 's Union Local 1495, United Brotherhood of Carpenters and Joiners of America, AFL-CIO, represents a majority of the employees who have been hired at the Chico facility. This majority is composed of former employees of Diamond Inter- national Corporation which sold the facility to your Company. As a successor employer you are obligat- ed- to recognize and bargain with Local No. 1495 over the terms and conditions of employment of these employees. Please contact the undersigned at once in order to arrange a meeting for the purpose of Collective Bargaining. Very truly yours, /s/ Karl L. Holm I note that this letter makes no reference to the alleged conversation with Gritz I day earlier. Nor is it clear why Holm wrote the letter because he supposedly had agreement from Gritz that the Union's position was valid. Holm testified on cross-examination" that he never mentioned ,to Gritz later, nor to anyone else from Re- spondent, the alleged concession from Gritz on 16 April. Holm volunteered on cross that a union business agent assigned to Respondent's Red Bluff plant, John Smith, had told Holm that Gritz had made the same statement to Smith. Smith was never called as a witness. Respondent, however, called Gritz as a witness. He denied making the statements attributed to Holm and even denied talking to Holm on 16 April,4 Gritz did admit that he spoke to Holm on or about 23 April and agreed to meet with Holm and other union officials in order to discuss the union position, but not to negotiate. On 25 April, Gritz wrote a letter to Holm confirming their conversation 2 days before. The letter reads as fol- lows: Mr. Karl L. Holm Business Representative Millmen's Local Union No. 1495, A.F.of L. P.O. Box 3069 Chico, CA 95927 Dear Mr. Holm: This will confirm my telephone discussion with you on Monday, April 23, 1984 and Mr. Peruman's later telephone call to you, agreeing to a' general discussion meeting to be held in the conference room of Louisiana-Pacific's Remanufacturing Plant, Chico, California on Friday, April 27, 1984 at 9:00 A.M. In the event any of the above does not correctly reflect your understanding please contact me at once. Very truly yours, /s/ Donald L. Gritz 4 Gritz also denied the alleged similar conversation with Smith. 1084 DECISIONS OF THE, NATIONAL LABOR RELATIONS BOARD I credit Gritz here and find that on this major point and one other to be discussed immediately below, Holm was not truthful. Essentially Holm's testimony was not only uncorroborated, but significantly impeached by his own conduct and the "testimony of Respondent's wit- nesses. I find that the Union's first demand for bargaining was contained in Holm 's 17 April letter above. ' If Holm was merely incredible above, his other testi- mony, to which I now turn, was totally preposterous. On 27 April a meeting was held in Respondent's conference room in Chico. For the Union, there was Holm and a man named Haskell, who never testified because he was allegedly in the hospital.5 For 'Respondent, there was Gritz, a company official named Merlow, who did not testify, Peruman, and Respondent's counsel at hearing, Charles S. Loughran. According to Holm, Peruman began by expressing serious doubts whether the Union represented a majority of Respondent's unit employees at Chico. Peruman explained that in the course of inter- viewing applicants for employment and while in the plant, several employees had expressed unsolicited nega-, tive comments regarding the Union. Holm stated he was not surprised at this because he had told several persons who were applying for jobs with Respondent, to say anything during the interview that might help get the job,, including that the person did not like the Union. At this meeting, Holm again claimed to represent a majority of Respondent's Chico employees and demanded to ,bar- gain with Respondent over a new contract. According to Holm, Attorney Loughran in the presence of three com- pany officials, then told Holm that he had a choice: First, the Union-could agree to an expedited NLRB elec- tion by stipulation without having to solicit authorization cards; or, the Union could file charges with the NLRB claiming Respondent was a successorship. Loughran al- legedly added that while the Union would probably "win under option two, it would take, 6 months down the road. Loughran denied the latter part of Holm's testimony, testifying that he never suggested that the Union had a good case or that it would win before the Board. Lough- ran did agree that he discussed an expedited Board elec- tion. To this proposal, Holm replied that he would have to discuss it with union attorney, Mike Roger. Roger was not present at hearing and was never called to testi- fy. Loughran testified further that about 18 May, Roger called him at which time the election proposal was again discussed. Roger was noncommital. Loughran concluded his testimony by describing his association with Respondent. He provides industrial rela- tions and labor law advice to Respondent that has 40-50 operations located on the West Coast. About 25 of these facilities have contracts with various unions. However, six plants are currently experiencing strikes. Both Gritz and Peruman also denied in their testimony that Lough- ran stated the Union would probably win an unfair labor practice case before the Board. 5 No one ever requested a continuance of the case due to the unavail- ability of Haskell, Smith, or anyone else Nor was the affidavit of any witness ever, offered. As indicated above, I credit Loughran on this point. Not only was he corroborated while Holm was not, but also it is beyond common, sense that a company attorney would purport to give legal advise to a union , contrary to- the best interests of the Company-while company of- ficials were present, - I turn now to decide the various issues in the case. B. Analysis and Conclusions 1. Was Respondent a successor to Diamond International and, if so, what duty did Respondent owe to the Union? In Contee Sand- & Gravel Co., 274 NLRB 574, 584-585 (1985), the Board approved a statement of the adminis- trative law judge, about the legal test for a successor- ship:6 In determining whether an employer is a succes- sor of another employer , the Board has used , the fol- lowing criteria : (1) whether there has been a -sub- stantial continuity of the same busines operations; (2) whether the new employer uses the same facili- ties; (3) whether the new employer has the same or substantially the same work force; (4) whether the same jobs -exist under the same working conditions; (5) whether the alleged successor employs the same supervisors; (6) whether the same machinery , equip- ment, and processes are used ; and (7) whether the same product or services are offered . J-P Mfg., 194 NLRB 965, 968 (1972 ); Miami Industrial Trucks, 221 NLRB 1223, 1224 (1975). The Board does not require that all of these factors be present, to find successorship, but only enough to warrant a finding that no basic change has occurred in the employing industry . Lincoln Private Police, 189 NLRB 717, 720 (1971). Nor- does the Board require that the entire business of the predecessor be taken over by the successor , it being sufficient if a part of the, old op- eration survives in the successor. Miami Industrial Trucks, supra; Avenue Meat Center, 184 NLRB 826 (1970). - In evaluating the above-listed , factors to determine whether a successorship has, occurred, the Board does not accord these factors equal weight. In Airport Bus Service, 273 NLRB 561, 5,62 (1984), the Board stated: Although all the circumstances are considered, the key factor in making a successorship determination is whether a majority of the new employer's bar- gaining unit employees were members of the prede- cessor's unit work force ' at or near the time it ceased operations. At page 12 of its brief, Respondent appears to concede this central point.7 Professor Gorman opines that it is 6 See also Premium Foods, 260 NLRB 708, 714 (1982), enfd. 709 F.2d 623 (9th Cir. 1983). ° At a footnote on p 12, Respondent attempts to qualify its concession by stating it does not concede that a, representative complement of em- Continued LOUISIANA-PACIFIC CORP. possible to read the case of NLRB v. Burns Security Serv- ices, 406 U.S 272 (1972), to hold that such a "successor majority" (regardless of work similarity) is sufficient in itself to find a duty to bargain.8 In this case it is unneces- sary to consider whether this interpretation of Burns is correct because a host of other factors supports a finding of sucessorship.9 I turn to consider these, beginning with a second concession from Respondent. In its brief (Br. 12), Respondent admits that the busi- ness location remained the salve. To these two conces- sions, I add findings of my own. First, Respondent has substantially the same supervisory staff-four out of five line supervisors. Next, Respondent uses essentially the same machinery, equipment, and processes. I also find that there has been a substantial continuity of business operations. 10 Before turning to still other factors that on balance also support successorship, but are more difficult to ascertain on this record, -I Merely note that a compel- ling case for suceesorship has been established up to this point. l'1 In reviewing the record, I note that no representative of Diamond testified. Although Peruman formerly worked for Diamond and made periodic visits to the Di- amond plant at Chico while he worked for Respondent at Red Bluff, his knowledge of the Diamond operation was to a degree limited. On the other hand, while Holm may have had greater contact with Diamond in his role as a union leader, I nevertheless find his credibility to be generally suspect. As noted in section III,A, above; Respondent contin- ued only one out of five of the Diamond operations in Chico. These discontinued operations accounted for ap- proximately 37 employees compared to the 150-160 em- ployees for the remanufacturing plant that was, contin- ued. It is doubtful whether these facts are even relevant to the question of successorship because the four discon- tinued operations had employees represented under sepa- rate contracts and in two cases with an entirely different union. Accordingly, they are entitled to little or no ployees was employed when the union demanded bargaining. Respondent does not elaborate nor indicate'what result would follow from his asser- tion, it true. Contrary to Respondent, I find that as of 17 April, a repre- sentative complement was employed by Respondent. That is, 78 out of 83 unit employees working for Respondent 'at Chico had been employed'by Diamond. By 20 July Respondent had hired 97 employees, of whom 83 were former Diamond unit employees. See Pre-Engineered Building Prod- ucts, 228 NLRB 841 fn. 1 (1977), enf. denied 603 F.2d 134 (10th Cir. 1979) NLRB v. Jeffries Lithograph Co., 752 F.2d 459, 467 (9th Cir 19$5). a R. Gorman, Labor Law, p. 121 (1977). s Of course, an employer has no general obligation to hire its predeces- sor's employees. Howard Johnson Co. v. Hotel & Restaurant Employees, 417 U S 249, 262 (1974) It did so in this case because it required the skills possessed by the former Diamond unit employees. Of those few not rehired, there is no claim by the General Counsel of any discriminatory motivation. 10 Thus a hiatus between the operations of the former employer and the purchaser is a significant factor because, as it lengthens , employees expectations of hire by the purchaser diminish. Mondavi Food Corp., 235 NLRB 1080, 1082 (1978). The record is not clear exactly when produc- tion under Respondent began. However, if there was a break it was not more than 1-2 weeks When the Diamond employees were laid off, they had every expectation of employment with Respondent because they were "experienced." Cf., Radiant Fashions, 202 NLRB 938 (1973); Norton Precision, 199 NLRB 1003 (1972). 11 See New London Convalescent Home, 274'NLRB 1442 (1985); NLRB v. Jeffries Lithograph Co., supra, 752 F 2d 459." 1085 weight in deciding successorship. Furthermore, as noted above, it is `sufficient if a part of the old operation sur- vives in the successor. Prior to Diamond's sale of assets to Respondent, it had experienced poor financial conditions. In fact, it had closed or substantially reduced operations for up to a year in the early 1980s. During this time many unit em- ployees were laid off. Accordingly, when Respondent took over, it was aware that certain changes were neces- sary to increase the chances of success. One of these changes was to change the, product mix. Although the raw material, lumber, remained essentially the same and most of the machines and the skills required to operate them remained the same, the final product vaned. Thus, Diamond manufactured window frame parts, molding and millwork, and solid lineal moldings. Diamond sold many products to a few customers. By contrast, Respondent is now manufacturing indus- trial cut stock that involves taking the lumber (a different type of lumber than usually used by Diamond) and cut- ting the lumber up into different widths and lengths to specified orders. In addition, Respondent uses wood planks that are fabricated for other manufactures. Finally Respondent manufactures carpenters moldings and mill- work. Respondent also discontinued, the operation of a box factory that was staffed by a few unit employees under Diamond.'' With the change in product mix, Respondent's market- ing of necessity changed. It did not purchase a customer list from Diamond and currently sells a few items to many customers. Out of 1900 customers listed on a 1980 Respondent customer list only about 10-15 were custom- ers of Diamond prior to the sale. Respondent's evidence also showed some minor differ- ences in work schedules. Holm described certain machines used by Diamond employees, and Perumann admitted their use by Respond- ent employees in the same premises: finger joint machine, resaw, molder, cutoff saw, multirip saw, forklift. Other machines used by Diamond were not used by Respond- eint: the band-rip machine, back comer machine, boring machine, the dry kiln, the diptank, and belt and tieup machines. 12 The employees who worked on these latter machines under Diamond were apparently assigned to other machines under Respondent that were used in the processing of the final products. After, considering the totality of the evidence, I must conclude that the General Counsel has established a successorship under the Burns case by a preponderance of the evidence.13 13 In those few instances in which the record contains a description of the function of these various machines , I omit it here on the grounds that such description does not really contribute to an understanding of the legal issues presented in the case. 13 I find that the changes in the employing industry during the transfer from Diamond to Respondent have not been substantial and material See Mondoet Foods Corp , supra, 235 NLRB at 1082; see also NLRB V. Jeffries Lithograph Co., supra, 752 F.2d 459. 1086 DECISIONS OF THE NATIONAL LABOR RELATIONS BOARD 2. Did Respondent have a good-faith doubt of the Union's majority status based on objective considerations and, if so, when?14 Although it is clear to me that based on established law of the Board and courts Respondent is a successor, there is still an additional issue presented by the case concerning the union's majority support and Respond- ent's view of it.1 5 To begin, I accept the General Counsel's statement of the law that, having established a successor, the General Counsel is entitled to rely on a rebuttable presumption that the Union enjoys continued majority -support. 16 I also agree with the General Counsel that Respondent must show a good-faith doubt by clear and convincing proof.17 Not only must Respondent show sufficient cred- ible evidence to establish a doubt of the Union's majority status, but such evidence must exist in a context free of unfair labor practices.) 8 I find here that Respondent's evidence was acquired under circumstances free of unfair labor practices. To put, this in another, way, I find that at all times relevant on or before 17 April, Respondent acted in good faith. Although the General Counsel alleged that the taking of a poll about 20 July violated Section 8(a)(1) of the Act, this can be considered only after the threshhold question of what Respondent knew on or before 17 April.19 By that time Peruman had interviewed approximately 110 employees. Peruman testified that during his interviews of prior Diamond employees applying for jobs at Respondent, many made unsolicited negative comments regarding the Union. Their remarks appear to fall into two categories: (1) Employees who 'told Peruman that they did not care to work in a union shop because unions discriminat- ed against good employees; Buzz Madden, Bob Hei- dinger, Donna McVey, Rodney Sharp, Dan Duggins, and Ron Coleman. (2) Employees who told Peruman that they did not care to be represented by Local 1495; Larry Schlecht, Larry Wellert, Lee German, Rocky Comfort, Richard Estrada, and Jerry Sanders. I find, that the conversations referred to above by Plant Manager Peruman are "objective identifiable acts 14 Respondent does not purport to show loss in fact of union majority status, but only its-good-faith doubt is In Harley-Davidson Co., 273 NLRB 1531 (1985), the Board recently held that even if the successor recognizes a union certified for a year or more, the union enjoys a rebuttal presumption of majority status only. In making its ruling, the Board overruled prior authority to equate the rights of successors who never recognized the union as in the instant case, with the rights of successors who did recognize the union. Both may, withdraw recognition if the successor can show union loss of major- ity status in fact, or merely a good-faith doubt of union majority status. 16 Barrington Plaza, 185 NLRB 962, 963 (1970), enf. denied on other grounds sub nom. NLRB v. Tragniew, Inc., 470 F.2d 669 (9th Cir. 1972); Grico Corp., 265 NLRB 1344, 1345 (1982), enfd mem. 730 F.2d 767 (9th Cir. 1984). 17 Hutchinson-Hayes International, 264 NLRB 1300, 1304 (1982); Distri- bution Services West, 262 NLRB 764, 772 (1982) - 18 Choctawhatchee Electric, 274 NLRB 595 (1985). 19 It is not sufficient if the Respondent learned of the evidence regard- ing the Union's majority status after it refused to recognize and bargain with the Union. To be effective, the evidence must be known at the time of the refusal See Orion Corp. v NLRB, 515 F-2d 81 (7th Cir 1975). on which the Respondent was entitled to rely and they can form the basis for employer's doubts."20 These state- ments are especially, reliable here when considered in light of other evidence tending to corroborate the em- ployees' apparent disaffection with the Union. a. Respondent's employee witnesses In Sofco, Inc., fn. 9 above, the Board made clear that the respondent there as here was not required to elicit, directly from employees, the comments about the union made to the plant manager.21 Nevertheless, Respondent called several employee witnesses to corroborate the tes- timony of Peruman . From group 1, Respondent called Madden, McVey, and Heidinger; all three fully corrobo- rate Peruman's testimony regarding the antiunion senti- ments expressed to him during the interview process. From group 2, Respondent called Wellert and Sanders as witnesses . They also corroborated Peruman's testimo- ny.22 I credit all of Respondent' s witnesses referred to above. b. Supervisory testimony regarding employee union sentiment Respondent called Supervisor William Reidenhauer, who was hired by Peruman on 12 March. He testified that after the sale, many employees made unsolicited comments to him regarding their desire not to have the Union represent them, He named Heidinger, Harker, Thompson, Comfort, German, and Thayer. Prior to 17 April, the witness reported these negative comments to Peruman on about six occasions and Peruman relied on these reports as part- of the basis for an objective doubt of the Union's majority status. As a general rule, supervisory impressions of employee sentiment are not viewed with favor by the Board and courts.23 In this case, however, Respondent also called some additional employee witnesses who had talked to Reidenbauer. For example, Charles Harker, a former member of the union negotiating committee, expressed the view that a majority of employees including himself did not want the Union. Donald Thompson, Reiden- hauer's brother-in-law for 18 years, also told him that he hoped the employees would not get the Union back. Third, Jerry Sanders, a shop steward between 1975 through 1981, testified that within a week after he was hired by Peruman on 2 April, he asked his supervisor Reidenhauer if the Union was going to come back in. When Reidenhauer replied that he did not know, Sand- ers stated that he hoped it did not come back because the Union did not treat people fairly and did not back him up over grievances. 20 So/ca, Inc, 268 NLRB 159, 160 (1983) 21 See Naylor, Type & Mats, 233 NLRB 105, 107-108 (1977) 22 Peruman did not specifically mention Sander's name as someone who talked to him However, he said there were some employees who talked against the Union whose names he could not recall I credit Sand- er's testimony that he spoke to Peruman on.2 April, when he was hired regarding his thoughts on the Union 2s, See Valley Nitrogen Producers, 207 NLRB 208, 214 (1973); NLRB v Cornell of California, 577 F 2d 513, 516 (9th Cir 1978) LOUISIANA-PACIFIC CORP. 1087 The final witness who testified in the case was Robert Thayer, a former vice president of the Union for 3 years and former union trustee for 6 years. He testified that he was hired on 16 April. -Sometime after that, he testified that he spoke to between 30-45 employees and they did not want the Union. Approximately 15 employees said the Union might be better than nothing. Thayer con- veyed these sentiments to Peruman and Reidenhauer sometime in late April or May, before the poll was taken.24 c. Lack of credibility of the General Counsel 's single witness I have detailed in section III,A two instances when Holm was not truthful in his testimony. I now turn to two other instances. According to Holm, the negative comments about the Union by union members during job interviews were part of a ploy suggested by Holm to en- hance the applicant's chances of getting hired. Not a single person was called by the General' Counsel to cor- roborate this testimony. Respondent's witnesses consist- ing of several union members and former union officials, who were hired by Respondent, all 'denied that Holm had made such a statement to them. I further discredit this testimony because there is no bargaining history or other evidence to explain why Holm believed that making negative comments about the Union at Respond- ent's job interviews would enhance the chances of a union member being hired. By contrast, the record does show why the employees no longer desired to be represented by the Union. During 1982-1983, Diamond was experiencing economic problems and all or most union employees were laid off, some up to a year. When, recalled, many of the employ- ees lost their seniority, and there was a pervasive feeling that the Union was responsible. Another instance of Holm's lack of credibility con- cerns a second representation he made at -the 27 April meeting attended by Peruman, Loughran, and, Gritz and further described above. In his testimony at hearing, after referring to Loughran's offer to participate in an ex- pediated Board election, Holm said: I said that I had already started signing cards. I be- lieve I said I had about 30. I didn't quite have that many. It was quite a bit less than that, in fact, about 19 [R. Br. 34]. Later Holm attributed this misrepresentation to a simple mistake. In his testimony, Peruman recalled that Holm stated at the meeting that be had cards signed by 40 per- cent of the membership. In either version of Holm's rep- resentation, Holm was not credible and all of his testimo- ny should be carefully scrutinized as I have done. d. Failure-of the General Counsel to call any rebuttal witnesses25 All of these circumstances tend to make Respondent's, witnesses very credible. In conclusion , as the Board stated in Safco, Inc., supra, 268 NLRB at 159-160: even when a particular factor considered alone would be insufficient to support a good-faith doubt of a union's majority status, the "cumulative force of the combination of factors" may be adequate to support such a doubt. In this regard, we note that a respondent does not bear the burden, of, proving that an actual numerical majority opposes the union. Howev- er, it must demonstrate that it had objective reasons for doubting the union's majority status. [Emphasis added.] - Based on the totality of the evidence as reflected in the above discussion, I find that as of 17 April, Respondent did have good-faith doubt of the Union's majority status based on objective factors.26 3. Did Respondent's poll of unit employees about 20 July violate Section 8(a)(1)? On 20 July a poll of Respondent's unit employees at Chico was conducted by Arthur Anderson & Co. Em- ployees were asked, "Do you wish to be represented by Millmen's Local Union No. 1495 for purposes of, collec- tive bargaining." The results of the poll indicated 21 votes in support of the Union and 75,votes opposed to the Union (R. Exh. 4). In this case, the General Counsel alleges that the taking of the poll per s`e violated Section 8(a)(1) of the Act. To decide this question, I must consider some addi- tional brief background. Between 17 April, the date of the Union's demand for bargaining, and the date of the poll, Peruman continued to receive antiunion reports from employees directly, and indirectly through supervi- sors, who were contacted by employees and told that substantial numbers of employees did not wish to be rep- resented by the Union. For example, Peruman talked to Supervisors Ron Bolton, Virgil Schlecht, Bill Riden- hauer, and Gerald Shire. Talking to Ridenhauer was Thayer as reported above, Harker, Sanders, Thompson, Heidinger, and McVey. Harker also talked to Bolton, who did not testify. Peruman was contacted three differ- ent times in May, by a leadman in shipping named Scott Elliott, who reported that he and people he talked to had no interest in the Union. Elliott did not testify, but Peru- man testified that the name of Sanders was mentioned by Elliott as someone who did not want the, Union. Peru- man also spoke directly to Willert regarding the latter's lack of interest in the Union. 24 Technically Thayer's testimony does not directly relate to the lack of union support on or before 17 April, because he was not hired until 16 April However, I include it here because it tends to corroborate the tes- timony of other witnesses who informed Peruman and Reidenhauer of antiunion sentiment and on which Respondent bases its good-faith doubt. zs Orion Corp. v. NLRB, supra, 515 F.2d at 84-85. 2s See Riverside Produce Co, 242 NLRB 615 (1979); Glosser Bros, 271 NLRB 710 (1984). Compare First Food Ventures, 229 NLRB 1228, 1230 (1977), in which sum total of evidence of employee disaffection available to Respondent was discovered after Respondent' s initial refusal to bar- gain. 1088 DECISIONS OF THE NATIONAL LABOR RELATIONS BOARD About 29 June, Peruman held a group employee meet- ing for the purpose of planning a Fourth of July celebra- tion. After the meeting, Thayer and two nontestifying employees named Glenda Burks and Gary Scott made antiunion comments to Peruman. Thayer told Peruman at this time that he had taken a personal poll of employ- ees and found very little support for the Union. Based on the several employee and supervisory reports received, and based on the Union's refusal to agree to a Board-conducted election, Respondent decided to ar- range for a poll to be taken. Before a poll like that in issue in this case can be lawful, an employer must have an objective basis for doubting the union's majority status.27 This is the same test used for determining the lawfulness of an employer's withdrawal of recognition from an incumbent union after the expiration of a collective-bargaining agreement.28 I assume without finding that it is also the same test used to, determine the lawfulness of a successor employer's re- fusal to recognize and bargain with a union that was never certified to represent unit employees in the succes- sor's employ. At Diamond the last certification occurred in 1937. I fmd based on the evidence in this case that Respond- ent did have an objective basis for doubting the Union's majority status sufficient to justify the taking of the poll. The evidence regarding union majority status that exist- ed on or before 17 April and' summarized in the preced- ing section 'increased between 17 April and 20 July. When'the employer causes a lawful poll of employees to be taken and the union does not win a majority, the result may, in an appropriate context, serve as support for 'an employer's refusal to recognize and to bargain.29 In this case, I have found above that Respondent also had it reasonable basis as of '17 April to doubt the Union's majority status. Because there is no evidence that Respondent committed any unfair labor practices prior to 20 July, the date of the poll, the results of the poll serve two purposes: (1) They relate back to 17 April to corroborate with even additional evidence my finding regarding the Re- spondent's reasonable basis to doubt the union's majority status.30 27 Hutchison-Hayes International, supra, 264 NLRB at 1304-1308. 28 Id .- at fn 9 It should be noted, however, that three circuit courts of appeals have disagreed with the Board and have held that the objective evidence, while it must be substantial, need not meet the high standard necessary to justify a withdrawal of rcognition. Forbidden City Restaurant v. NLRB, 736 F.2d 1295 (9th Cir 1984); NLRB v A. W. Thompson, Inc, 651 F 2d 1141 (5th Cir. 1981), Thomas Industries v. NLRB, 687 F.2d 863 (6th Cir -1982). 251' See Taft Broadcasting, 201 NLRB 801 (1973). 30 In refusing to enforce the Board 's decision in Forbidden City Restau- rant, supra at 1297, the court stated the following The Board relied on Montgomery Ward & Co, Inc, 210 N L.R.B. 717, (1974), in which an employer was found to have violated the Act by conducting a poll without sufficient objective considerations to warrant a reasonable doubt of the union's majority status Suffi- cient objective considerations for a private poll, concluded the (2) If it is found on review that Respondent did not have a reasonable basis to doubt the Union's majority status as of 17 April, then clearly by 20 June Respondent did have a reasonable basis. Although an unfair labor practice would have been committed, Respondent would nevertheless be free to withdraw recognition and refuse to bargain from 20 June forward. In conclusion I turn to the case of Struksnes Construc- tion Co., 165 NLRB 1062 (1967). The General Counsel contends that for an employer-conducted poll to be lawful, it must meet certain procedural safeguards con- tained in that case (G.C. Br. 28). The General Counsel further argues that Respondent did not meet these stand- ards. The Board, however, has not expressly extended its precertification poll standards enumerated in Struksnes to polls ' taken in refusal to. recognize situations. Nor can I find, contrary to the General -Counsel's claim, Board au- thority requiring an employer to give the,union advance notice of the time and place of the poll. Accordingly, it is unnecessary to decide whether Respondent met the standards of Struksnes when it was not required to,do so. For all the reasons stated above, I will recommend to the Board that this case be dismissed.31 CONCLUSIONS OF LAw 1. The Respondent, Louisiana-Pacific Corporation, is an employer within the meaning of Section 2(2) of the Act, engaging in commerce and in an industry affecting commerce within the meaning of Section 2(6) and (7) of the Act. 2. The Union is a labor organization 'within the mean- ing of Section 2(5) of the Act. 3. Respondent has not engaged in the unfair labor practices alleged-in the complaint. [Recommended Order for dismissal omitted from pub- lication.] Board, must be such as would occasion the grant of an employer's petition for a'Board election Montgomery Ward, 210 N L.R B. `at 724. The, criteria for a Board election are the same as those that de- termine whether the employer may withhold recognition from an in- cumbent union Id. Thus, under the Montgomery Ward rule, the same evidentiary standard applies to an employer's conducting its own poll, successfully petitioning the Board for an election, or withdraw- ing recognition from the union By the Board 's reasoning, an em- ployer in doubt of the union's majority status would be allowed to take a poll only when it had no actual need to do so, that is; when it already has sufficient objective evidence to justify withdrawal of rec- ognition The unusual situation described by the court in its final sentence quoted above is exactly what happened here. Respondent took a poll on 20 June, when it already had, as of 17 April, sufficient objective evidence to justi- fy refusal to recognize the Union Thus under either the Board decision or the court's, Respondent must be held not to have violated the Act by taking the poll 31 In light of this decision, it is unnecessary to consider Respondent's argument (R. Br. 27-28) that assuming Respondent 's bargaining obliga- tion, the Union may have waived'or forestalled its bargaining demand by considering Respondent's proposal to stipulate, to a Board-conducted election. Copy with citationCopy as parenthetical citation