M. H. Brown Co., Inc.Download PDFNational Labor Relations Board - Board DecisionsDec 5, 1969179 N.L.R.B. 889 (N.L.R.B. 1969) Copy Citation M. H. BROWN CO., INC. 889 M. H. Brown Co., Inc. and Mechanics Educational Society of America , AFL-CIO. Case 3-CA-3688 December 5, 1969 DECISION AND ORDER By MEMBERS FANNING, BROWN, AND ZAGORIA On July 28,' 1969, Trial Examiner Thomas A. Ricci issued his Decision in the above-entitled proceeding, finding that Respondent had engaged in and was engaging in certain unfair labor practices within the meaning of the National Labor Relations Act, as amended, and recommending that it cease and desist therefrom' and take certain affirmative action, as set forth in the attached Trial Examiner's Decision. Thereafter, Respondent filed exceptions to the Trial Examiner's Decision and a supporting brief. Pursuant to the provisions of Section 3(b) of the National Labor Relations Act, as amended, the National Labor Relations Board has delegated its powers in connection • with this case to a three-member panel. The Board has reviewed the rulings of the Trial Examiner made at the hearing and finds that no prejudicial error was committed. The rulings are hereby affirmed. The Board has considered the Trial Examiner's Decision, the exceptions, the brief, and the entire record in this case, and hereby adopts the findings, conclusions, and recommendations of the Trial Examiner.' ORDER Pursuant to Section 10(c) of the National Labor Relations Act, as amended, the National Labor Relations Board adopts as its Order the Recommended Order of the Trial Examiner, and hereby orders that Respondent , M. H. Brown Co., Inc., Ilion, New York, its officers, agents, ' We agree with the Trial Examiner that Respondent violated Section 8(a)(1), (3), and (5) of the Act. Respondent violated Section 8(a)(l) by coercively interrogating its employees concerning their union activities, by promising and granting increases in wages, and by giving increased vacation and sick leave benefits for the purpose of discouraging union activities Respondent violated Section 8 (a)(3) by discriminatorily eliminating the second shift within 2 days of the Union's demand for recognition and laying -off seven employees Respondent violated Section 8(a)(5) by refusing to bargain with the Union and by engaging in the aforementioned series of unfair labor practices to undermine the Union's majority status In this connection, we are satisfied that Respondent's unfair labor practices committed after it became aware of the Union's organizational drive were so coercive in their impact on employee attempts to exercise Section 7 rights that they bring this case within the category of cases in which a bargaining order is necessary to repair the effects of the unlawful conduct even in the absence of an 8(a )(5) violation It follows that, inasmuch as the Union had signed up a majority of employees prior to the unfair labor practices , and Respondent refused to recognize and bargain with it as the employee's duly selected bargaining representative , the bargaining order recommended by the Trial Examiner is a necessary and appropriate remedy See N L R B v Grssel Packing Company. 395 U S 575. successors, and assigns, shall take the action set forth in the Trial Examiner's Recommended Order, as so modified. 2 'Add as the last indented paragraph of the Appendix the following WE WILL notify the above -named employees , if presently serving in the Armed Forces of the United States, of their right to full reinstatement, upon application , in accordance with the Selective Service Act and the Universal Military Training and Service Act, as amended, after discharge from the Armed Forces TRIAL EXAMINER'S DECISION STATEMENT OF THE CASE THOMAS A. Ricci, Trial Examiner: A hearing in the above-entitled proceeding was held before me on May 26, 27, and 28, 1969, at Utica, New York, on complaint of the General Counsel against M. H. Brown Co., Inc , herein called the Respondent or the Company. The issues are whether the Respondent violated Sections 8(a)(l), (3), and (5) of the Act. The charge was filed by Mechanics Educational Society of America, AFL-CIO, Local 10, on January 28, 1969, and the complaint issued on April 21. Briefs were filed after the close of the hearing by the Respondent and the General Counsel. Upon the entire record, and from my observation of the witnesses, I make the following ' FINDINGS OF FACT I THE BUSINESS OF THE RESPONDENT The Respondent is a Delaware corporation and maintains an office and place of business in Ilion, New York, where it is engaged in the manufacture, sale, and distribution of metal and related products In the normal course of its business the Respondent annually manufactures, sells, and distributes at said plant, products valued in excess of $50,000, of which products valued in excess of $50,000 are shipped from said plant directly to states of the United States other than the State of New York. I find that the Respondent is engaged in commerce within the meaning of the Act and that it will effectuate the policies of the Act to exercise jurisdiction herein. II THE LABOR ORGANIZATION INVOLVED Mechanics Educational Society of America, AFL-CIO, herein called the Union , is a labor organization within the meaning of Section 2 (5) of the Act. III. THE UNFAIR LABOR PRACTICES This can be called a combination case. refusal to bargain with a union on demand followed immediately by discharge of a number of employees, the first act said to reflect fundamental rejection of the principle of collective bargaining, and the second called overt retaliation to assure ultimate defeat of the self organizational campaign. There is little dispute of substance about what was done and what was said. Disagreement centers on what all of this means, and what the true motivations were that can rationally explain the events and their timing The complaint alleges the refusal to bargain to have been a 'After the close of the hearing counsel for the Respondent and the General Counsel each filed a motion to correct the transcript, no opposition was received to either motion The motions are hereby granted 179 NLRB No. 155 M. H. BROWN CO., INC. M. H. Brown Co., Inc. and Mechanics Educational Society of America , AFL-CIO. Case 3-CA-3688 December 5, 1969 DECISION AND ORDER BY MEMBERS FANNING, BROWN, AND ZAGORIA On July 28, 1969, Trial Examiner Thomas A. Ricci issued his Decision in the above-entitled proceeding, finding that Respondent had engaged in and was engaging in certain unfair labor practices within the meaning of the National Labor Relations Act, as amended; and recommending that it cease and desist therefrom and take certain affirmative action, as set forth in the attached Trial Examiner's Decision. Thereafter, Respondent filed exceptions to the Trial Examiner's Decision and a supporting brief. Pursuant to the provisions of Section 3(b) of the National Labor Relations Act, as amended, the National Labor Relations Board has delegated its powers in connection with this case to a three-member panel. The Board has reviewed the rulings of the Trial Examiner made at the hearing and finds that no prejudicial error was committed. The rulings are hereby affirmed. The Board has considered the Trial Examiner's Decision, the exceptions, the brief, and the entire record in this case, and hereby adopts the findings, conclusions, and recommendations of the Trial Examiner.' ORDER Pursuant to Section 10(c) of the National Labor Relations Act, as amended, the National Labor Relations Board adopts as its Order the Recommended Order of the Trial Examiner, and hereby orders that Respondent, M. H. Brown Co., Inc., Ilion, New York, its officers, agents, 'We agree with the Trial Examiner that Respondent violated Section 8(a)(1), (3), and (5) of the Act Respondent violated Section 8(a)(I) by coercively interrogating its employees concerning their union activities, by promising and granting increases in wages, and by giving increased vacation and sick leave benefits for the purpose of discouraging union activities Respondent violated Section 8(a)(3) by discriminatorily eliminating the second shift within 2 days of the Union's demand for recognition and laying -off seven employees . Respondent violated Section 8(a)(5) by refusing to bargain with the Union and by engaging in the aforementioned series of unfair labor practices to undermine the Union's majority status In this connection , we are satisfied that Respondent's unfair labor practices - committed after it became aware of the Union's organizational drive were so coercive in their impact on employee attempts to exercise Section 7 rights that they bring this case within the category of cases in which a bargaining order is necessary to repair the effects of the unlawful conduct even in the absence of an 8(a )(5) violation It follows that, inasmuch as the Union had signed up a majority of employees prior to the unfair labor practices , and Respondent refused to recognize and bargain with it as the employee's duly selected bargaining representative , the bargaining order recommended by the Trial Examiner is a necessary and appropriate remedy . See N L R B v Gissel Packing Company, 395 U.S 575. 889 successors, and assigns, shall take the action set forth in the Trial Examiner's Recommended Order, as so modified. 2 'Add as the last indented paragraph of the Appendix the following WE WILL, notify the above-named employees , if presently serving in the Armed Forces of the United States, of their right to full reinstatement, upon application , in accordance with the Selective Service Act and the Universal Military Training and Service Act, as amended, after discharge from the Armed Forces TRIAL EXAMINER'S DECISION STATEMENT OF THE CASE THOMAS A. Ricci , Trial Examiner : A hearing in the above-entitled proceeding was held before me on May 26, 27, and 28, 1969, at Utica, New York , on complaint of the General Counsel against M. H. Brown Co ., Inc., herein called the Respondent or the Company. The issues are whether the Respondent violated Sections 8(a)(l), (3), and (5 ) of the Act. The charge was filed by Mechanics Educational Society of America, AFL-CIO, Local 10, on January 28 , 1969, and the complaint issued on April 21 Briefs were filed after the close of the hearing by the Respondent and the General Counsel. Upon the entire record, and from my observation of the witnesses, I make the following' FINDINGS OF FACT 1. THE BUSINESS OF THE RESPONDENT The Respondent is a Delaware corporation and maintains an.office and place of business in Ilion, New York, where it is engaged in the manufacture, sale, and distribution of metal and related products. In the normal course of its business the Respondent annually manufactures, sells, and distributes at said plant, products valued in excess of $50,000, of which products valued in excess of $50,000 are shipped from said plant directly to states of the United States other than the State of New York I find that the Respondent is engaged in commerce within the meaning of the Act and that it will effectuate the policies of the Act to exercise jurisdiction herein II THE LABOR ORGANIZATION INVOLVED Mechanics Educational Society of America, AFL-CIO, herein called the Union , is a labor organization within the meaning of Section 2 (5) of the Act. III THE UNFAIR LABOR PRACTICES This can be called a combination case: refusal to bargain with a union on demand followed immediately by discharge of a number of employees , the first act said to reflect fundamental rejection of the principle of collective bargaining , and the second called overt retaliation to assure ultimate defeat of the self organizational campaign. There is little dispute of substance about what was done and what was said Disagreement centers on what all of this means , and what the true motivations were that can rationally explain the events and their timing. The complaint alleges the refusal to bargain to have been a 'After the close of the hearing counsel for the Respondent and the General Counsel each filed a motion to correct the transcript, no opposition was received to either motion The motions are hereby granted 179 NLRB No. 155 M. H. BROWN CO ., INC. 891 employees concerning their union activities in a coercive way. Again and again witnesses were invited to admit Brown did not in haec verba ask them individually were they in favor of or opposed to a union. The persistently implied contention running through the record is that because Brown did not in this very precise sense "interrogate," anything he did ask, and anything he did say that day in his office, being outside the ban of the Blue Flash case, must therefore be deemed entirely proper and lawful, and, of course, in consequence be totally ignored in this case. There is no need for reporting here in fine detail the testimony of all 10 of the employee witnesses who told of what was said in the office that day; they were in agreement , 6 called by the Respondent and 4 by the General Counsel, and Brown did not contradict them. He started with each group by telling them he had Just learned of the union campaign and that he was "shocked" to hear of it; he then asked what their "gripes," or "grievances" were. Quoting some of the witnesses: Frank Jaquish: "And he wanted to know why we thought we needed a Union, what was wrong in our shop." Lawrence Newman: "And he wanted to know what we thought we could gain by getting a Union. He said that at that time that he couldn't see where it would benefit a small shop like this or how we could benefit He asked us individually why we thought we needed one." Anthony Tuba: "He told us he had received a letter from the Union, and he asked us if we were for it and why." Murray Seaman: "And he wanted to know what the problem seemed to be that the people in the shop felt a Union was needed. . . . he started asking different ones around the tables what their complaints were." Lawrence Pupers: "He asked us what was wrong and what was wrong that we would call in a Union. He asked us individually" Not only did Brown not contradict all of this from the employees, he corroborated them: "I asked them what was wrong, what we had done, why would anyone want to organize a union." His plant superintendent , Frank Williams. "Maynard asked the employees present what was wrong with out (sic) shop, why they thought they should need a Union " Altogether Brown had 12 or 13 employees in these meetings. To a man their answer to his questioning was "money," plain wage increases One mentioned pension, and another favoritism towards a particular other workman. And in each meeting, after hearing that all the men wanted was "money," Brown came back by saying he was going to give them raises. One man, asked by Brown exactly how much he wanted, said 30 or 35 cents; at this Brown turned to his assistant , Plant Superintendent Williams, and said maybe he, the manager , was planning to give higher wage increases than was necessary. He even spoke of a "package in the wind," better than the employees "requested." "He turned to Frank and said maybe what he had planned for us was more too much or something to that effect; he was going to give us more than what they wanted." " . . . he told us he had a plan and a program he could put into effect." " .. he had a scale drawn up that was going to give raises, but he hadn't gotten around to putting it into effect yet." In the words of the manager himself. "I went out at that point to tell them thats [sic] had already had a program to give everyone more money, ..." " . I told him, because he made the statement wages were kind of low, that I had prepared previously in December wage increases and benefits for my employees after the Ist of the year, .. . True to his word, on February 13 Brown did give a raise to all of these employees, very substantial increases, some in excess of their requests, and all retroactive back to January 3. In fact, with announcement of the raise there also came improved vacations and sick leave benefits. But that is another aspect of the case, and is discussed below. For the moment what is important is to dispose of the threshold contention that because Brown did not literally inquire which, or how many of his employees favored the Union, no significance can be attached to what he did that day It is true he did not poll the men, but the fact is he did not care how many were behind the Union, or whether a majority was or was not achieved On his own testimony, when the demand for recognition came 4 days later, and he swept aside Taverna's invitation to verify the claim to majority, he told the business agent "there would be no point in me checking the cards . against my payroll," and admitted he "didn't care" how many cards had been signed The reason why pure interrogation, without affirmative safeguards, normally is found to be unlawfully coercive, is because there is a necessary implication in the inquiry that the employer intends to do something about it if he learns the employees do favor the union, and that this "something" will be aimed at stopping the union activity Here no inference is required for devining the employer's purpose. Brown asked, without equivocating, what was it that had to be done to end the union movement that had "shocked" him so. He was as much interested in dissuading those who had already signed, as he was in buying off others who might later decide to go union. And when he quickly realized it was money, and only money that would accomplish his purpose, forthwith he promised to satisfy the employees' demand. Without more, he was assuring himself accomplishment of the very purpose which emerges clearest from the total testimony. No need in this case for the Board 's expertise as to the inevitable effect upon workmen of employer interrogation. The purpose for Brown's interrogation could not be clearer; in asking the employees what it would take to satisfy their demands, or "grievances," as he said, he was as directly telling them he knew they wanted a union, and had no need to check one head at a time And that he as well intended to do "something" about it, appears no less clearly from his own testimony I find that by questioning the employees as to their reason for joining the Union, and then, by responding to their demands with promises to give the raises they desired, Brown made direct promises of benefits for the purpose of discouraging union activities, and thereby directly violated Section 8(a)(1) of the Act at each of the three employee meetings . If the phrase "coercively interrogate" has any meaning, this is the situation where it applies. Three of the employees, activists in soliciting signature cards, accompanied Taverna as a supporting committee when he called on Brown at about 1 30 p.m. on January 14. This was when the cards were offered for inspection and bargaining requested The meeting lasted perhaps 45 or 60 minutes The three men were John Ashley, Alfred Gargiullo and John Pritchard, they stayed off work the rest of the afternoon. The next day each of them received a written notice requiring the employees to state on the face of the notice sheets, "the reason why you were absent the afternoon of 1/14/69?" They wrote across the bottom of the sheet that they had met with the union representative 892 DECISIONS OF NATIONAL LABOR RELATIONS BOARD Never, in their entire employment with the Respondent, had any of these three been required to make such written statement before; indeed, there is no evidence, or claim, indicating the Company ever used such a system for reprimands with respect to any of its employees Ashley said that when there is need or an emergency, the men often ask for and receive permission for time off, and that Brown "is very lenient" in this respect . Pritchard testified, without contradiction, that he had on other occasions taken time off even without asking permission, although all of them did admit employees normally do request time off in advance. They had arranged the day before to act with Taverna on the 14th, and when the union agent arrived, at about I I a.m., it was Mrs. Bolen, the company secretary, who came to them in the work area to advise them Taverna was outside waiting She even reminded them to be sure to check out before leaving. And of course the, manager knew why they had absented themselves that day and quite exactly what they had done. In the total circumstances, the unprecedented form of censure could only be explained as a technique for intimidating the employees, carrying a message of company resentment towards their union activities, and indicating things would be different - to their disadvantage -- if they continued this sort of cooperation with the union representative. The conclusion is not rebutted by the fact- that on earlier occasions they had been warned about undue absences , or tardiness, and one of them even dismissed on a charge of excessive drinking. I find that by requiring these three union committeemen to state their-reason for a temporary absence already well understood by the manager, the Respondent interfered with their free exercise of the right to self-organization and thereby violated Section 8(a)(1) of the Act. said no. 2. On January 16, a notice was posted in the plant advising that the second shift would be discontinued because of "loss of business." Most, but not all of the employees on that shift, were part-timers. That same day seven employees, six part-timers and a full-time man, found layoff notices with their paychecks, effective immediately., There had been no prior notice to anyone, of any kind The employees were also told that day that thenceforth it would be a 40-hour week; many full-time workmen had long done 50 hours per week and more. The discharges are clear, for those seven people went home that day. There is testimony by several employees to the effect that after January 16 they worked less overtime than before. Gargiullo said he used to work 10 hours each day, but went to 8 thereafter. Verna Ashley said that before January 16 the women "were not working too many over 40," and that she used to do between 35 and 45 hours, she added she did do some overtime even after the layoffs Newman, also a full-time man, said he used to do between 53 and 65 hours per week, and since the change has been working between 47 and 55 hours. Employee Russell Randt's testimony was no more definitive. He said his old schedule reached 50 hours per week, and that later "there was some nights I didn't work overtime too much," "maybe one or two nights a week, one." 3. When the employees received their pay on February 13 they found a raise in the envelope, retroactive back to January 3 and paid in full then and there. Certain apprentices, very few, who were subject to a state apprenticeship program, were not affected; part-timers also were excluded from the raise. The largest raises went to the skilled machinists and operators, as follows: Refusal to- Bargain : Layoffs and Raises The complaint rests essentially upon three major facts and the relationship each is said to bear to the others These are the refusal to deal with the Union, the discharge of seven employees 2 days later, and a very substantial raise given the employees a month later . If every one of these acts be viewed, as the Respondent would have it, as though neither of the other two had ever happened, there would be little, if any, basis for criticism. 1. When union representative Taverna sat in Manager Brown's office on the afternoon of January 14, he said a majority of the employees had authorized the Union to bargain, asked Brown to check them against the record, demanded recognition and placed the signed cards on the table at which the parties sat. As will appear below, there wag a majority of cards then. Brown refused to extend recognition on the ground he had no authority to act. He admitted saying there was "no point" in his comparing the cards against the payroll, and that he did not care how many cards Taverna had obtained. From the testimony of Plant Superintendent F rank Williams who was also present: "Mr. Brown told him that whether he had a majority "'or whether he did not have a majority, he couldn 't recognize him ...... Taverna and two employees then present testified Brown also said he did not doubt there was a majority; Brown denied this statement but I credit the other three witnesses. As Brown requested, the Union wrote a demand letter the same afternoon, and it was ignored. On the 20th Taverna was back in Brown's office to protest the discharges of January 16, charging the employees had been released because of the union activity and again requested recognition. Again Brown Amount of raise New Rate Frank Williams (the supervisor) $15.00 wk $155.00 wk John Butera .55 hr 3.00 hr Frank Jaquish .55 3.00 Murray Seaman .50 3.00 John Ashley .49 3 00 Al Gargiullo .10 3.25 Larry Pupera .39 3.10 John Prichard .45 2.40 Ken Dack 7.00 wk $135.00 wk Paul Favat, Sr. .17 hr 3.25 hr L. Newman .35 2.60 A Tubia .15 1 95 Leon Van Cour .05 1.95 Dick Pritchard .10 1.95 Jake Elnicky .10 1 95 Russel Randt .30 1.95 All women .15 1.80 The employees were also informed that day that thereafter every employee who had worked more than 1 year would receive a 2 week's vacation instead of 1, as in the past, plus an additional one-half day vacation and one-half day paid sick leave for each year of service A final fringe benefit announced then was one-half day The following employees were discharged Albert Jenette, Howard March, Gary Smithson , Shirley Willoughby, Robert Willoughby, Ralph Thiede, and Anthony Tubia M. H. BROWN CO., INC. 893 bonus pay at the end of a year for each day of sick leave unused during the year. A good half of the 20 employees still employed in February, and who testified, said they had heard nothing about raises before the unexpected announcement on February 13. There is some vague testimony by others about Christmas party reference to better working conditions, improvement of one kind or another It is quite clear, however, that the last references made by anyone to raises was when Manager Brown promised wage increases during the January 10 meetings with employees in his office. This was when the "key" employees told him it would take "money" to solve the "problem" which had caused them to form a union. And it will be noted that virtually all of the major raises went to those persons whom Brown interrogated that day. The theory of this complaint is that with the manager committing deliberate unfair labor practices as soon as he heard of the union activities - and promising to meet the money demands of the skilled personnel in order to discourage their union activities ' and then realizing, only 4 days later, that his efforts had failed, it follows necessarily that unannounced discharge of so large a group of virtually all the second shift people only 2 days after the Union's demand for recognition, was the next step towards the same ultimate objective of intimidating the entire group. There is no contention that Brown selected these particular seven because he knew them to be among the culprits. As it happened, five had signed cards. Rather, the General Counsel argues Brown did not care who had signed , or who had not, j ust as he did not care whether or not a majority had signed. This was a broadside sweep, according to the complaint, intended generally to convey a message of coercion.' And the inference of illegal motivation is bolstered, under this view, by the next step - equally unannounced and as severe in its application, - the extensive raises of February 13, unprecedented in -amount. The timing element adds great persuasion to the total argument There are also i7iany collateral facts lending further support, some offered by the General Counsel's witnesses, many seen in the Respondent's recital of the affirmative defense it offered. At the hearing Brown called off the names of no less than 13 employees he hired after the January layoff; 4 in February, 7 in March, and 2 in May. Some worked full time, more only served him part time, and Brown was glad to keep all of them as long as they were willing to work. He said he can use part-time people because this is a job shop.', But not one of the seven sent home in January was recalled. There is no assertion any had been released for incompetence. With all of this and the fact Brown promised 'his skilled people he would give them the money they wanted, a finding of unlawful motivation, in both the layoffs and the raises, is fully warranted, unless there is affirmative reason for concluding otherwise. The Respondent' s answer to all this starts with two very simple assertions : business volume declined throughout the year 1968 and-therefore the staff had to be reduced, not enough orders were coming in to justify the payroll. As to the raises the reason was because competitors were paying more and it was necessary to increase wages in, order not to lose good people. A company that is losing business normally does not increase wages. Nevertheless, it could still be true that in an effort to build up a failing business , especially in a 'Arnoldware. Inc. 129 NLRB 228 period of rising wages, the technique could be tried. As Brown talked, and as the Respondent's asserted explanations became clearer at the hearing, more and more disturbing questions arose, particularly as to timing, and he became hard put to account for suspicious circumstances. Orders received were lowest in November and December of 1968, and on December 11 Brown had been told "right after the first of the year close down our next shift " Why did he wait until January 16'' He said the layoff notice had to be given on a payday. With I week's pay always held back, why did it have to be a payday, and why that particular Thursday) Why was the cut not made on January 3, also a payday "after the first of the year?" According to him the pay raise schedule had been finely fixed and written, chapter and verse, even with details of improved fringe benefits, before December 20 Brown said he hinted at this "package" when the employees made him a gift at the Christmas Party in December Why did he not then and there tell them of the proposed new wage scale'? Why did he not give the raise before the Union appeared on January 16? Why was it not given in any one of the several weeks that passed before February 13" If the purpose was to avoid the danger people might be lost to competitors, why keep the raise a secret so long? How did retroactivity serve this purpose'? To each of these, and other questions that arose, asked or unasked, Brown had a ready answer. And anyone of them, if the particular question were the only one that could be raised, might be convincing. Maybe even several such suspicious circumstances might be disentangled with some decree of persuasion. Where, however, the questions mount, where the total situation presents a series of meaningful coincidences met only with superficially pat replies, logic and human experience dictate that all be rejected. It is the timing of the layoffs and the raises, relative to the Respondent's reaction to the Union's demand for recognition, that Brown offered to explain away at the hearing. His testimony went essentially to his state of mind at the time of the events. Considering his expressed resentment toward the union activity generally, his overt and illegal promise to buy off the key men, the extreme implausibility of statement after statement he made at the hearing, and his demeanor as a witness, I do not believe him. I find on the record in its entirety that he chose January 16 for the layoffs, and granted all these raises, plus improved vacation and sick leave benefits, when he did, for the purpose of restraining the employees in their exercise of the statutory right to self-organization, and to frustrate any attempt by the Union to win a majority in a future election By such conduct he violated Section 8(a)(1) of the Act. Brown insisted at the hearing that the raises, exactly as announced in February, had been definitively decided upon long before the Union appeared, and the Respondent therefore argues there can be no unfair labor practice finding in the granting of the added benefits. Cf Doubleday Bros., 163 NLRB No. 144. To prove the point ne relied on an undated sheet of paper listing employees names and the exact raises given. He testified that on December 11, 1968, he advised Bickman, of Boston, raises were necessary to meet the competition and that with Bickman's agreement he prepared this document before December 20. Bickman testified only that the two talked generally of the advisability, of raising wages. In its brief the Respondent argues the total testimony proves that the employees had been told during December there would be raises, further evidence of preunion decision on the matter. Brown said that at the company 894 DECISIONS OF NATIONAL LABOR RELATIONS BOARD Christmas party, on December 20, while speaking to the employees in appreciation of a holiday gift they gave him at the celebration, "I told the people that things were going to be better for them in 1969, that I had a scheduled raise and benefits for them." "I said after the first of the year we are all going to get more money." The collective testimony of many employees who were there does not clearly support a finding Brown spoke explicitly about raises, as he said at the hearing. As in every refusal to bargain proceeding of this type, there were employees who did not favor the Union, and what with Brown's intervening promises to satisfy their direct demands anyway, their testimony at the hearing necessarily becomes suspect.' John Ashley, Gargiullo, Richard Pritchard, and Verna Ashley, for the General Counsel, said they had heard nothing about raises before receiving them. Randt was at the party but said all he heard were "rumors" of raises later from other employees Newman. who was not at the party, said he later heard from others "Brown was going to come forward with a raise. But nobody said how much." Testifying for the Company, Olive Crisman and Margaret Murphy also said they had heard from others at the party there was going to be a raise. Jaquish was at the party and quoted Brown " he went on and was telling us we were going to have a better year, we were going to have raises and a different organization after the first of the year." And finally, Golda Crim: "He said after the first of the year, things would be a little better. . . he said he thought we were going to have better conditions." No doubt at that moment Brown spoke encouragingly to the employees, but it is reasonable to believe that had he already made a positive determination to grant such substantial raises as he said some of them 50 cents per hour and more and had he really been concerned about losing these people to competitors, he would have been much more explicit and clear in his party talk. Indeed, that was the moment most appropriate of all for winning allegiance, if in fact it had already been decided to grant raises. For the least, he could have told them of a future date. He did not. Accepting, for the moment, all this vacillating testimony in its best light for the Respondent, Brown decided, and told the employees in December, he would give them raises after the first of the year. By the time of the Union's first notice to him on January 10 he had not yet done anything. Why'? He explained that while January 2 and January 9 were paydays, the employees were not then being paid for work performed in January but rather for December work, because a week's pay was always being held back. He gave no coherent reason why, if it is urgent to raise wages, they must be first announced, and paid, after the work has been performed On the 10th he tells his key men it has already been decided to raise their pay, and again only general phrases from him. If the theory of defense is that there is nothing illegal in carrying out an economic program fixed before the inception of union activities, and if he in fact had the detailed schedule of new rates in his possession, why did he not then and there produce it? If January 2 and January 9 were too early, as paydays to fall within "the first of the year," why were raises not announced on the next payday, January 16? And again a pat answer: because by this time the Union had appeared, and it might have been illegal. And so Brown's testimony continued, less and less convincing as he proceeded to explain away each following payday 'Quality Markets, Inc, 160 NLRB 44 and why he did nothing until February 13. He even said that on February 6, also a payday, he finally talked to the lawyer, who told him he could go ahead. Why did he not do so? The paychecks had already been made. Why did he not at least announce the raises, retroactively or prospectively? Brown's explanation of the seven layoffs in January was no more persuasive The company records show that orders for work received varied greatly from month to month during 1968, no significant progression up or down is shown.' It does appear that November and December, with $18,000 and $14,000, respectively, were well below the average for the year of $28,000. Monthly shipments held steady throughout the year, but starting in June the order balance - outstanding work to be done - - began to decline steadily. The successive figures are. June, $117,000; July, $93,000; August, $65,000; September, $76,000; October, $59,000; November, $48,000, and December, $27,000. It was this decline of outstanding orders that Brown said made elimination of the night shift necessary. He testified, and Bickman corroborated him, that the matter was decided at a conference between the two on December 11. It was to be done, in Bickman's words, "immediately after the first of the year." As Brown recalled, Bickman told him " . . right after the first of the year close down our next shift " But he did nothing about this until January 16, 2 days after the Union presented its authorization cards. And again the Respondent came forth with a number of explanations for seeming inconsistencies in the story If it had to be "right after the first of the year," January 2, a payday, was the perfect target date. Brown said he was too "busy" the first 2 weeks of the year. Normally an employer will give some advance notice of layoffs, especially if he knows it for sure in advance and if it has already been decided a particular shift is to be discontinued There was no notice to anyone. The Respondent says it had to be done on a payday, and when asked why, Bickman answered only it was more "palatable" to the discharged employee. Why summary discharge without notice comes easier one day than another, he did not say. There are other facts of record that do not seem to fit into the assertion that a reduction in force was necessary, or even achieved. Orders picked up again in February, March, and April $25,000, $22,000, and $30,000 respectively. More important, there was no drop in work performed: $28,000 in November and $35,000 in December. It went to $20,000 in January, $23,000 in February, $32,000 in March, and $43,000 in April. Brown hired four persons in February and seven in March. None of the old people were recalled. The group released was neither all part-timers nor all night shift. Tubia used to do full time, from 4.30 p.m to 2 a.m. S Willoughby used to do 6 hours daily, mornings. Several of the discharged persons said there was work for them to do at their work stations when they were released. Brown got around this by distinguishing between "primary" and "secondary" operations. He said the primary persons he sent home did secondary work, which was less in demand at the time. He also spoke of problems with inspection, and without clear and definitive explanation somehow associated the discharged employees with this problem On this entire 'Orders received by month January, $58,000; February, $29,000, March, $52,000, April, $28,000, May, $6,000, June, $26,000; July, $6,000, August, $24,000, September, $55,000, October, $26,000, November, $18,000, December, $14,000 M. H. BROWN CO., INC. 895 subject of secondary work, or inspection problem, his total testimony is vague and uncertain, and he spoke in conclusionary words. No records were produced to show how, or whether, the total work performed after the layoff compared in one way or another with the total work done before January 16, so as to prove some form of economy had been achieved. It is clear, from the record as a whole, that irregular hours are a normal aspect of this shop's operations Any number of employees, before and after January 16, worked here to supplement their regular jobs elsewhere. Brown admitted he regularly takes any capable persons he can get, even if they only report at uncertain times. This is what he described as the very nature of a "job" shop. I find that by discharging, on January 16, 1969, the seven employees named in the complaint and listed in the margin above, the Respondent violated Section 8(a)(3) of the Act. Alleged Denial of Overtime Work It is a specific allegation of the complaint that, apart from the seven discharges, from January 16 on the Respondent deliberately permitted the remaining employees to enjoy less overtime work than theretofore for the purpose of discouraging their union activity, and thereby violated Section 8(a)(1). The record as a whole does not support this allegation. Although there did exist generally a day and a night shift in this plant, variations in hours of daily work were, and have continued to be a normal aspect of employment Because, as Manager Brown explained, this is a job shop, the need for employees is not completely predictable by the week or even by the day. While some employees did testify that for short periods after January 16, at least, the amount of overtime they did was less, the testimony in its entirety is vague, imprecise , and does not permit any definitive factual ruling one way or the other. Employment of part- time people has continued as in the past, and apparently considerable overtime has also been performed. In such a situation, and considering the total testimony, the affirmative proof normally requisite for establishing the truth of a complaint allegation is lacking Bargaining Unit: Union's Majority Status I find, as the complaint alleges and as the answer admits, that all production and maintenance employees of the Respondent employed at its Ilion, New York, plant, excluding all office clerical employees, professional employees, guards and supervisors as defined in the Act, constitute a unit appropriate for the purposes of collective bargaining within the meaning of Section 9(b) of the Act An exhibit received in evidence pursuant to stipulation of the parties establishing that on January 14, 1969, when the demand and refusal occurred, there were 36 employees at work in this bargaining unit By January 13, the day before the Union requested recognition, 20 of these employees had signed union authorization cards, 9 on January 9, 9 on January 10, 1 on January 11, and the last on January 13 The authorization cards read as follows- Membership Application and Authorization Card I, the undersigned, do hereby apply for membership in the Mechanics Educational Society of America and authorize said union to represent me in collective bargaining This supersedes any previous authorization I may have given to any other labor organization. There can be no question but that each person who signed a card intended at the time to authorize the Union to bargain for him forthwith. The Respondent contends that some of the cards ought not be counted on the ground that they were signed in consequence of false representations made by the solicitors. One such card is that of employee Leon Van Cour On direct examination he testified that when John Ashley invited him to sign a card "I asked him if there was any others that signed And he said that the others had signed already." Van Cour then said, at the hearing, that had he known "all of them" had not signed, he would himself have refused On cross-examination he changed his testimony. "Before I signed it I asked him if there was any others that signed He said, yes, that the others had signed. So, I signed the card " As Ashley recalled it Van Cour asked him "how many had signed" and that he answered "we did have a majority." I do not think Van Cour's total testimony suffices for a holding now that he intended only a conditional authorization of the Union that day A lady, Patricia Williams, signed a card before starting time one morning. She was solicited by Verna Ashley. Williams' testimony was not consistent. She stated that when Ashley asked her to sign "I understood her to say that I was the only one that hadn't signed. . . . the only one left that hadn't signed." Like Van Cour, she then commented that but for this statement she would not have signed As she continued, she was not sure when she signed, once saying it was the 20th; the card is dated January 10. Then she added Ashley's quoted statement "might have been the day before." She then recalled that because it was time to start work, Ashley said ` "Come on, hurry up. I've got to get these signed before 8:00 o'clock,' and that I was the only one that hadn't signed." Ashley's version of this is that she was at the moment soliciting a group of three women, Ernestine Lester and B Murphy together with Williams, and as it was time to start work she said only Williams of the three had not signed. She denied saying Williams was the only one remaining in the entire shop who had not signed. In the circumstances, I believe her. I see no reason for not counting Patricia's card. I find that on January 14, 1969, when Taverna requested recognition, a majority of the employees in the bargaining unit had authorized the Union to bargain on their behalf Violation of Section 8(a)(5) There is no merit in the Respondent's argument that the complaint must be dismissed because the Union added the designation "Local 10" in its charge and the designation was restated in the complaint . The cards authorized Mechanics Educational Society of America, AFL-CIO, there was no mention of any local at the time of the events , all correspondence from the Union, including two direct letters, are purely in the name of the Society, and whether or not the employees choose to carry on their internal union affairs through a local, is totally irrelevant to the issue of this case The appropriate order 896 DECISIONS OF NATIONAL LABOR RELATIONS BOARD to bargain will run in favor of the Society only. The ultimate question is whether the preponderance of the substantial evidence on the record as a whole suffices to prove that the refusal to bargain, on January 14, was an act of bad faith intended to gain time to dissipate the Union ' s representation status so as to preclude a fair election . I find that , the Respondent ' s refusal to recognize the Union that day as exclusive representative of the employees in the appropriate bargaining unit constituted a violation of Section 8(a)(5) of the Act. The most persuasive evidence of such illegal motivation are the clear promises of raises to the more important employees on January 10,,and the quick discharge of seven others on the 16th. The raises given on February 13, when the Company's own representation petition was pending, serves all the more to support the conclusion. On January 20, Juan Butera, who had refused to sign a card initially, prepared a statement, for employee signatures , declaring a desire not to be represented by the Union. It included the phrase: "We feel we are capable of resolving whatever differences we may have with M. H. Brown Co. to our satisfaction, on our own accord ...." With Maynard Brown's personal approval, he solicited signatures during working hours in the shop, and obtained 13 names. Among these were six who had signed authorization cards before the 14th: Hallock, Seaman, Van Cour, Williams, Richer, and Walters Brown saw this paper on January 21 and at the hearing he said it was a major basis for his doubt as to the union majority. He also said Jaquish and Butera had told him they were against the Union, "a girl" said the same thing to him on January 15, Ken Dak likewise "before the 20th," with Ken Dak adding his brother Clarence felt the same way. Butera, who circulated the antiunion petition , added that on January 10, after Brown had held his meetings with the employees, he, Butera, heard Olive Grisman, Golda Crim, Lawrence Pupera and Jaquish tell the manager they were not in favor of the Union. And finally, Hallock testified he asked employee Gargiullo to return his signed card, but did not remember when , and that he also told Brown, about 2 days before January 21, he had changed his mind It is obvious, both from the testimony of the witnesses at the hearing and from the documents received in evidence , that in its organizational campaign the Union did not succeed in winning 100 -percent adherence. There was a contrary-minded minority. Nothing of significance was proved when the Respondent highlighted this fact by presenting some employees who had not signed union cards. Of the eight employees mentioned in the oral testimony, and whose position respecting collective bargaining Brown now says justified his doubt as to majority, seven -- Jaquish, Butera, Ken Dak, Clarence Dak, Olive Crisman, Golda Crim, and Lawrence Pupera - were not among the card signers. The Respondent cannot be heard to say it relied on the attitude of these persons for its rejection of the Union ' s recognition demand, while at the same time it refused to look at the authorization cards, offered for its inspection at an earlier date. It was not shown that Hallock, who did sign a card, changed his mind before Brown rejected the Union's demand, or before the coercive interviews he had with all the employees and the promises of raises See, Sullivan Surplus Sales, 152 NLRB 132. As to the antiunion petition , signed by six card signers, the determinative -fact is that all this came on the 20th, a week after the refusal to bargain and after the unfair labor practices committed for the very purpose of unlawfully influencing the attitude of the employees generally. No amount of repetition in the Respondent's brief will alter the fact that the refusal 'Came on January 14, and not January 21 when the Respondent filed its RM petition. Rural Electric Co , 130 NLRB 799. Once the necessary effect of intervening unfair labor practices has come into play, there is no choice but to rely upon the previously expressed, and duly authenticated written authorization cards, for later expressions of opinion, be they by circulated petition or even Board elections, are no longer reliable methods of inquiry. N.R.L B v. Gissel Packing Co , 395 U S 575. IV. THE EFFECT OF THE UNFAIR LABOR PRACTICES UPON COMMERCE The activities of the Respondent set forth in section III, above, occurring in connection with Respondent's operations described in section 1, above, have a close, intimate, and substantial relation to trade, traffic, and commerce among the several States and tend to lead to labor disputes burdening and obstructing commerce and the free flow of commerce V. THE REMEDY It having been found that the Respondent committed certain unfair labor practices, it must be ordered to cease and desist from further such conduct and to take certain remedial action designed to effectuate the policies of the Act. The Respondent unlawfully refused to bargain with the Union on demand, accordingly it must be ordered to bargain with that Union, in the unit found appropriate, upon demand, and in the event an agreement is reached, to embody such understanding in a signed agreement. It having been found that the Respondent unlawfully discriminated against seven employees by discharging them it must be ordered to make them whole for any loss of,earnings they may have suffered in consequence of the unlawful discrimination and to offer them reinstatement. The unfair labor practices committed were so extensive in scope that the remedial injunction must be against further commission of any kind of unfair labor practices Upon the foregoing findings of fact and conclusions of law, and upon the entire record, I make the following: CONCLUSIONS OF LAW 1. The Respondent is an employer within the meaning of Section 2(2) of the Act. 2 The Union is a labor organization within the meaning of Section 2(5) of the Act. 3. All production and maintenance employees employed at the Respondent's Ilion, New York, plant, excluding all office clerical employees, professional employees, guards and supervisors as defined in the Act, constitute a unit appropriate for the purposes of collective bargaining within the meaning of Section 9(b) of the Act 4. The Union was on January 14, 1969, and at all times thereafter has been the exclusive collective-bargaining representative of the Respondent's employees in this appropriate unit within the meaning of Section 9(a) of the Act. 5. By refusing to bargain with the above-named labor organization in good faith the Respondent has engaged in and is engaging in unfair labor practices within the meaning of Section 8(a)(5) of the Act. 6 By discriminating against Albert Jennett, Howard March, Gary Smithson, Shirley Willoughby, Robert M. H. BROWN CO., INC. Willoughby, Ralph Thiede , and Anthony Tubia in their employment the Respondent has illegally discouraged membership in the Union and thereby violated Section 8(a)(3) of the Act. 7. By the foregoing conduct , by coercively interrogating employees concerning their union activities, and by promising and by granting increases in wages for the purpose of discouraging union activities , and by giving increased vacation and sick leave benefits, the Respondent and its agents have engaged in and are engaging in unfair labor practices within the meaning of Section 8(a)(1) of the Act 8. The aforesaid unfair labor practices are unfair labor practices within the meaning of Section 2 (6) and (7) of the Act RECOMMENDED ORDER Upon the foregoing findings of fact and conclusions of law, and upon the entire record in the case, I recommend that M H Brown Co ., Inc., Ilion , New York, its officers, agents, successors , and assigns , shall. 1. Cease and desist from: (a) Refusing to bargain collectively in good faith with Mechanics Educational Society of America, AFL-CIO, as the exclusive representative of all employees in the bargaining unit. (b) Discharging its employees or otherwise discriminating against them in their employment because of their union activities. (c) Coercively interrogating employees concerning their union activities , promising to give and granting increases in wages for the purpose of discouraging union activities, giving increased vacation and sick leave benefits, or in any other manner interfering with, restraining or coercing its employees in the exercise of their rights to self organization , to form , join, or assist any labor organization , to engage in other concerted activities for the purpose of collective bargaining or other mutual aid or protection , or to refrain from any and all such activities. 2 Take the following affirmative action which I find will effectuate the policies of the Act: (a) Upon request , bargain collectively with the Union as the exclusive bargaining representative of all employees in the appropriate unit described above, with respect to rates of pay, wages, hours of employment , and other terms and conditions of employment , and if an understanding is reached embody such understanding in a signed agreement. (b) Offer Albert Jennett , Howard March, Gary Smithson , Shirley Willoughby, Robert Willoughby, Ralph Thiede, and Anthony Tubia immediate and full reinstatement to their former or substantially equivalent positions , without prejudice to their seniority or other rights and privileges , and make them whole for any loss of pay which they may have suffered as a result of the discrimination against them , in the manner set forth in that portion of this Decision entitled "The Remedy " (c) Notify Albert Jennett , , Howard March, Gary Smithson , Shirley Willoughby, Robert Willoughby, Ralph Thiede , and Anthony Tubia , if they are serving in the Armed Forces of the United States, of their right to full reinstatement , upon application , in accordance with the Selective Service Act and the Universal Military Training and Service Act, as amended , after discharge from the Armed Service Forces. (d) Preserve and, upon request , make available to the Board , or its agents , for examination and copying, all 897 payroll records, social security payment records, timecards, personnel records and reports, and all records necessary to analyze the amount of backpay due under the terms of this Order (e) Post at its plant in Ilion, New York, copies of the notice attached hereto and marked "Appendix "" Copies of said notice, on forms provided by the Regional Director for the Third Region, shall, after being signed by the Respondent's representative, be posted by the Respondent immediately upon receipt thereof, and be maintained by it for 60 consecutive days thereafter, in conspicuous places, including all places where notices to employees are customarily posted Reasonable steps shall be taken by the Respondent to insure that said notices are not altered, defaced, or covered by any other material. (f) Notify said Regional Director, in writing, within 20 days from the receipt of this Decision, what steps it has taken to comply herewith Y 'In the event that this Recommended Order is adopted by the Board, the words "a Decision and Order" shall be substituted for the words "the Recommended Order of a Trial Examiner" in the notice In the further event that the Board's Order is enforced by a decree of the United States Court of Appeals, the words "a Decree of the United States Court of Appeals Enforcing an Order" shall be substituted for the words "a Decision and Order " 'In the event that this Recommended Order is adopted by the Board, this provision shall be modified to read "Notify said Regional Director, in writing, within 10 days from the date of this Order, what steps Respondent has taken to comply herewith " APPENDIX NOTICE TO ALL EMPLOYEES Pursuant to the Recommended Order of a Trial Examiner of the National Labor Relations Board and in order to effectuate the policies of the National Labor Relations Act, as amended, we hereby notify our employees that- WE WILL NOT refuse to bargain collectively with Mechanics Educational Society of America, AFL-CIO, as the exclusive representative of the employees in the bargaining unit described below. WE WILL bargain collectively, upon request, with this Union as the exclusive representative of all our employees in the bargaining unit described below with respect to rates of pay, wages, hours of employment, and other terms and conditions of employment, and if an understanding is reached embody such understanding in a signed agreement The bargaining unit is: All production and maintenance employees, excluding all office clerical employees, professional employees, guards and supervisors as defined in the Act WE WILL NOT discharge or otherwise discriminate against our employees because of their union activities. WE WILL NOT coercively interrogate employees concerning their union activities, promise them or grant them wage increases or give increased vacation and sick leave benefits, for the purpose of discouraging union activities WE WILL NOT in any manner interfere with, restrain, or coerce our employees in the exercise of their right to self-organization, to form, join or assist any labor organization , to bargain collectively through 898 DECISIONS OF NATIONAL LABOR RELATIONS BOARD representatives of their own choosing and to engage in other concerted activities for the purposes of collective bargaining or other mutual aid or protection, or to refrain from any or all such activities. WE WILL offer Albert Jennett, Howard March, Gary Smithson , Shirley Willoughby, Robert Willoughby, Ralph Thiede, and Anthony Tubia immediate and full reinstatement to their former or substantially equivalent positions without prejudice to their seniority and other rights and privileges, and make them whole for any loss of pay which they may have suffered as a result of the discrimination against them. All our employees are free to become or remain members of any union of their choice , and we will not punish them in any way if they do. Dated By M. H. BROWN Co., INC. (Employer) (Representative) (Title) This notice must remain posted for 60 consecutive days from the date of posting and must not be altered, defaced, or covered by any other material. If employees have any question concerning this notice or compliance with its provisions, they may communicate directly with the Board's Regional Office, Fourth Floor, The 120 Building, 120 Delaware Avenue, Buffalo, New York 14202, Telephone 716-842-31 12 Copy with citationCopy as parenthetical citation