Majestic Manufacturing Co.Download PDFNational Labor Relations Board - Board DecisionsNov 27, 194564 N.L.R.B. 950 (N.L.R.B. 1945) Copy Citation 4 In the Matter of MAJESTIC MANUFACTURING COMPANY and STOVa MOUNTERS INTERNATIONAL UNION, LOCAL No. 34, A. F. L. Case No. 14-CD54.Decided November 27, 154f5 DECISION AND ORDER On April 23, 1945, the Trial Examiner issued his Intermediate Report in the above-entitled proceeding, finding that the respondent had engaged in and was engaging in certain unfair labor practices, and recommending that it cease and desist therefrom and take certain affirmative action, as set forth iri the copy of the Intermediate Report attached hereto. Thereafter, the respondent filed exceptions to the Intermediate Report and a supporting brief. On October 16, 1945, the Board heard oral argument at Washington, D. C. The respondent appeared by counsel and participated in the argument; the Union did not appear. The Board has reviewed the rulings of the Trial Examiner and finds that no prejudicial error was committed. The rulings are hereby affirmed. The Board has considered the Intermediate Report, the respondent's exceptions and brief, and the entire record in the case, and, to the extent consistent with the Decision and Order herein, hereby adopts the findings and conclusions of the Trial Examiner, and finds merit in the respondent's exceptions. 1. The Trial Examiner found that the respondent discriminated against 11 named strikers in regard to their hire and tenure of employ- ment in violation of Section 8 (3) of the Act. We do not agree. The Trial Examiner's finding is predicated largely on the fact that the respondent gave each striker a "Notice of Separation" on April 14, 1944, after the strikers had ignored the respondent's prior communi- cation to report for work on April 13, under penalty of separation from the pay-roll. We, however, do not view this conduct as violative of Section 8 (3) of the Act. The strikers ceased work as a result of a then current labor dispute 1 and, therefore, retained their status as 1 Because of the strike, the respondent was compelled to suspend operations in the depart- ment in which nine strikers were employed, necessitating the lay-off of non-strikers who were also employed there Operations in that department were resumed on May 16, 1944, when the strikers returned to work. 64 N. L R. B., No. 161. 950 MAJESTIC MANUFACTURING COMPANY 951 employees within the meaning of Section 2 (3) of the Act; yet, as the Trial Examiner found, they had no intention of returning to their jobs until the respondent acceded to their economic demands. Conse- quently, the issuance of the separation notices had no actual effect on their tenure of employment. As we have previously observed in sim- ilar cases, such notices are primarily intended, not to effectuate a dis- charge, but as a tactical maneuver designed to induce the strikers to abandon the strike and resume work.2 Nor does the record establish that after the issuance of the separa- tion notices, the respondent discriminated in regard to the strikers' tenure of employment. As found by the Trial Examiner, the strikers never offered to return to work unconditionally; instead, the Union and the respondent resorted to collective bargaining as a means of set- tling the strike and the grievances which gave rise to it. At a meeting between the respondent and the Union on April 15,1944, the respondent agreed, subject to a discussion with the respondent's president who was then out of the city, that on April 18 the strikers could resume work upon their own terms. On April 18, however, the respondent's presi- dent requested further negotiations with respect to the settlement of the strike, which apparently was not then objectionable to the Union, thereby postponing the reinstatement of the strikers. The respondent, thereupon, proposed, as a basis for settling the strike and reinstating the strikers, that the parties conclude a written agreement which would define the responsibility for replacing broken enamel, the principal cause of the strike, and provide for a no-strike pledge and a grievance and arbitration procedure.3 This proposal was generally acceptable to the Union and, after several bargaining conferences, culminated in a signed agreement. On May 16, 1944, during the course of the nego- tiations, the strikers were reinstated. Under all the circumstances, we are unable to find, as did the Trial Examiner, that the respondent discriminated against the strikers in regard to their hire and tenure of employment, within the meaning of Section 8 (3) of the Act." Accordingly, we shall dismiss the com- plaint in its entirety. 2 See Matter of American Manufacturing Concern, 7 N. L. It B 753 , Matter of Rock- wood Stove Works , 63 N L . R B. 1297 The Trial Examiner made no finding as to whether the respondent 's conduct in this respect was violative of Section 8 (1) of the Act. Since no exception was taken on this point , we shall not pass upon it 3 During the meeting , the respondent stated that the strikers had quit their jobs and, therefore , were no longer employees Although this position was clearly erroneous , as a mat- ter of law, we are convinced and find that it did not delay or otherwise prejudice the rein- atatement of the strikers ' The Trial Examiner made no finding as to whether the respondent ' s insistence that the Union agree to a no-strike pledge and a grievance and arbitration procedure, constituted an illegal condition of reinstatement No exception was taken , and we, therefore, find it unnecessary to pass upon this question. 952 DECISIONS OF NATIONAL LABOR RELATIONS BOARD 2. In view of our determination to dismiss the complaint on the merits, we find it unnecessary to pass upon the respondent 's special defenses , discussed in the Intermediate Report, that the striking em- ployees are not entitled to the protection of the Act. ORDER Upon the entire record in the case, and pursuant to Section 10 (c) of the National Labor Relations Act, the National Labor Relations Board hereby orders that the complaint issued herein against the respondent, Majestic Manufacturing Company, St. Louis, Missouri, be, and it hereby is, dismissed. MR. GERARD D. REILLY took no part in the consideration of the above Decision and Order. INTERMEDIATE REPORT Mr. Joseph Lepie, for the Board. Lewi9, Rice, Tucker, Allen, & Chubb, by Mr. Robert 7'. Burch, of St. Louis, Mo., for the respondent. Mr. Eugene Ehrhard, of St. Louis, Mo., for the Union. . STATEMENT Or THE CASE Upon an amended charge duly filed December 26, 1944 by Stove Mounters International Union, Local No. 34, A. F. L., herein called the Union, the National Labor Relations Board, herein called the Board, by its Acting Regional Director for the Fourteenth Region (St. Louis, Missouri), issued its complaint dated December 29, 1944, against Majestic Manufacturing Company, herein called the respondent, alleging that the respondent had engaged in, and was engaging in unfair labor practices, within the meaning of Section 8 (1) and (3) and Section 2 (6) and (7) of the National Labor Relations Act, 49 Stat. 449, herein called the Act. Copies of the complaint and notice of hearing thereon were duly served upon the respondent and the Union. With respect to the unfair labor practices, the complaint alleged in substance: (1) that on or about April 12, 1944,11 of the respondent's employees' ceased work concertedly and went on strike; (2) that on or about April 13, 1944, the respondent discharged said 11 employees because of their foregoing conduct; (3) that on or about May 12, 1944, the respondent offered reinstatement to each of the said 11 employees, to begin work on May 16, 1944; (4) that the respondent has refused to reimburse the said 11 employees for any loss of earnings they may have suffered by reason of their discharge; and (5) that by said acts the respond- ent has interfered with, restrained, and coerced its employees in the exercise of the rights guaranteed in Section 7 of the Act. On January 9, 1945, the respondent filed its answer, admitting the strike and the offer of reinstatement as alleged in the complaint. but denying the allegation as to the discharge of the 11 employees The answer also denied that these em- ployees have suffered any loss of earnings by reason of the respondent's conduct 1 James Wasson , Harry Reitz, Jesse Wasson, George Hoffmann John Kaltschnee, John Schappacker , Lawrence Dunlap, Bud Calloway, John Siemer , James Miles , and Timothy Courtway. MAJESTIC MANUFACTU RING COMPANY 953 or that the respondent has engaged in any unfair labor practices, and further set forth, as an affirmative defense. several matters which are presented here- inbelow 2 Pursuant to notice, a hearing was held at St. Louis, Missouri, on January 11, 12, 13, and 15, 1945, before Earl S Bellman, the undersigned Trial Examiner, duly designated by the Acting Chief Trial Examiner. The Board and the re- spondent were represented by counsel, and the Union by one of its officers. All parties participated in the hearing and were afforded full opportunity to be heard, to examine and cross-examine witnesses, and to introduce evidence bearing upon the issues. At the close of the hearing, all parties were afforded an opportunity to argue orally before the undersigned, and to file briefs. Counsel for the Board and counsel for the respondent argued orally, said argument being included in the official transcript. The respondent has filed a brief. Upon the entire record in the case, and from his observation of the witnesses, the undersigned makes the following : FINDINGS OF FACT 1. THE BUSINESS OF THE RESPONDENT The respondent, Majestic Manufacturing Company, is a Missouri corporation, having its principal office and its plant in St. Louis, Missouri, where it is en- gaged in the manufacture, sale, and distribution of stoves and other cooking appliances. During 1944, the respondent used at said plant raw materials valued in excess of $400,000, of which approximately 80 percent was received from points outside of the State of Missouri. During the same period, the respondent's manufactured products were valued in excess of $1,000,000; approximately 90 percent thereof was shipped to points outside of the State of Missouri. The respondent is presently manufacturing stoves and cooking appliances used directly in the war effort. It concedes that it is engaged in "interstate commerce" within the meaning of the Act. II. THE ORGANIZATION INVOLVED Stove Mounters International Union, Local No. 34, is a labor organization ad- Initting to membership employees of the respondent. It is affiliated with the American Federation of Labor. III. THE UNFAIR LABOR PRACTICES A. Introductory statement The issues in this case arise from a dispute which took place on one of the respondent's stove assembly lines, the "F" line, on April 11, 1944, regarding the changing of broken enamel.' The resulting strike which, it is found below, com- .nienced on April 12, was admittedly an economic strike, i. e., not caused by unfair labor practices under the Act. After a series of meetings and after inter- change of correspondence and proposed agreements, the strikers were all offered full reinstatement on May 12, to begin work on May 16, 1944. Subsequently a contract was signed by the respondent and the Union. None of the strikers was 2 An amended answer was filed at the hearing on January 13, 1945, at the opening of the respondent 's case. Said amended answer differed from the original answer only in that it set out certain additional matter as affirmative defense. 3 Only nine of the complainants herein worked on the "F" line . The other two were welders in the machine shop. 954 DECISIONS OF NATIONAL LABOR RELATIONS BOARD) reimbursed for any loss of earnings be may have suffered from April 12' through May 16, and the department which includes the "F " line did not operate during- that period. In general , as shown by its amended answer, the oi al :ignment , and its brief, the respondent contends that the strike was not provoked by any act on its part; that it was a "wildcat " strike not called by the Union ; that it was an illegal strike because of failure to comply with provisions of the War Labor Disputes Act requiring notice and a strike vote ; that the strike was in violation of the Union ' s contract with the respondent ; that while the respondent did not dis- charge the strikers , it would have been fully justified in so doing because of the nature of the strike ; that the employment relationship of the 11 strikers ceased when they "walked off the job " because the strikers thereby violated their r•ou- tract and the War Labor Disputes Act ; that because of the strike of April 12, and preceding unlawful strikes shortly prior thereto involving the same em- ployees, the respondent was unable to and did not operate the department which includes the "F" line from April 12 to May 15, 1944: that all I lint the respondent was seeking during the negotiations following the strike was an agreement with the Union for the orderly settlement of disputes and to end the series of strikes; that such an agreement satisfactory to all patties was reached through collective bargaining : and that there have been no strikes at the plant since the strikers resumed work. In substance , the Board contends that the strike occurred spontaneously be- cause on April 11 the respondent arbitrarily modified, adversely to its employees, its long-established practice with respect to the responsibility for changing broken enamel ; that two welders in the machine shop honied the strike because of their unsettled grievances ; that the strikers weie discharged by the respond- ent at the outset of the strike because they had gone on an economic strike; that the strikers thereafter unconditionally applied for reinstatement ; that the respondent then took the position that it would not reemploy the strikers, whom it contended were no longer its employees , unless the Union would enter into an agreement containing arbitration and no-strike provisions ; that the respondent's discharge of the strikers was in violation of the Act as was its position following the application of the strikers for reinstatement : and that the 11 strikers are entitled to reimbursement for any loss of earnings suffered from the date of their discharge to the date of their reinstatement. B. Labor relations p) !o), to the Atoll /I dispute 1. Contractual relations For over 40 years the employees of the respondent, s plait who come under its jurisdiction have been organized by the Union' During most of this period, these employees have been covered by successive written contracts The last general contract signed by the Union and the respondent prior to the strike of April 12, 1944, was dated January 1, 1941, and provided that it continue in effect from year to year unless notice in writing of desire to change the agreement be given thirty (30) days before the annual expiiation date. Autong other things, the agreement provided that the respondent would employ only members of the Union in good standing and that preference would he given when addition,il help was needed to "card men" who were acceptable to the respondent This agree- * Four other groups of employees, polishers, machinists, oilers, and watchmen, are lint have been for varying periods of time, covered by four other affiliates of the A F L. MAJESTIC MANUFACTURING COMPANY 955 meat contained no provision as to the responsibility for changing damaged enamel. It did contain, however, the following provision as to the settlement of disputes: Article 11 In case any dispute cannot be settled between the Management and the Shop Committee, it shall be referred to the executive committee of the S. M I. U of N. A. and the Firm In the event no settlement is reached, it shall be referred to the National Officers of the S 17 I U. of N. A and the Majestic Manufacturing Company. In case of dispute, both parties are to continue operation in the usual manner pending settlement, as prior to the dispute.' On Match 6, 1942, the respondent and the Union reached the following under- standing which was thereafter confirmed by embodying said undelstand mg in a letter dated March 24, 1942: The 1941 agreement continues in force in it's (sic) entirety except for the provision of 10% increase in day and piece rates effective February 2nd, 1942. Early in 1943, the Union presented the respondent with a proposed agreement for 1943, similar in all respects material herein to that of 19,41 as extended through 1942 6 While the respondent later submitted some counterproposals and the parties were in substantial agreement as to terms in general, no agreement was executed, as certain matters concerning wage rates were pending before the National War Labor Board which were not decided until early in April 1944. Thus, from the beginning of 1943 until a general agreement was again signed in October 1944 after the strike,' there was no signed agreement. However, it is clear that the parties continued to work under the conditions previously estab- lished by agreement and, upon occasions, the 1941 agreement as extended and the Union's proposed 1943 agreement would be referred to when questions concerning conditions of employment arose. In short, while both the respondent and the Union considered that the Union had a closed-shop contract, and dealt with each other on that basis, no written contract had in fact been executed.' In addition to their general agreements, discussed above, the i espondent and the Union have executed from time to time agreements covering piece rates and conditions of operation, including the replacing of enamel, on certain specified types of ranges Under such agreements as were received in evidence, it would appear that the responsibility for replacing damaged pacts during the pericd when 5 An agreement signed January 1, 1940, had contained an almost identical provision It is the above quoted provision which respondent contends was in effect at the time of the strike and was violated by the strikers 6This proposal contained an almost identical article on the employment of union members, and an identical article on the settlement of disputes There is no contention that failure to give timely notice of desire to change the 1942 agreement automatically extended it through 1943 ' This agreement, much more detailed than any of its predecessors, was signed October 25, 1944, effective fioni September 1, 1944, to December 31, 1944 It has been extended with modifications as to wages and is now in effect. s Although the evidence clearly shows that the respondent and Union considered that they were working under an agreement during the above discussed period, there is no con- filet in the testimony as to the absence of a signed agreement Thus, the Union's presi- dent, Eugene Ehrhard, testified that, while no agreement was signed, they worked on the basis of "an understanding between the firm and its " Similarly, the respondent's presi- dent, John E Russell, testified concerning the period. 1943 to October 25, 1944 There was no contract during the interval except by general agreement and under-. standing as to what our piactices were. 956 DECISIONS OF NATIONAL LABOR RELATIONS BOARD the range was being assembled was entirely on the employees ° However, regard- less of such prior agreements, it is apparent from the uniformity of the testimony that the actual practice concerning the changing of enamel, for at least a sub- stantial period prior to April 11, 1944, had been for the mounters on the lines who were engaged in the assembly of the various ranges to change only such enamel on their own time as they chipped or damaged through their own fault, and for the respondent to have defective enamel or enamel which chipped or cracked through no fault of the linemen, who worked on a piece work basis, changed at the respondent's expense by employees not working on a piece work basis. Fur- ther, for sometime prior to the dispute of April 11, it is evident that on the F line, which was under the supervision of Foreman Albert Manning, the foregoing practice was very liberally interpreted, and much, if not all, of the enamel dam- aged even through the fault of the assemblers themselves was being changed by an apprentice at the respondent's expense.10 2 Labor disputes during early 1944 Two or three days before February 25. Jesse Wasson, the Union's steward in the F department,11 reported to President Ehrhard that two women employees in that department, Mary Moore and Virginia Proffer, were making reports to Manning on the conduct of other employees in the department 12 Ehrhard told Wasson that he did not think that anything could be done until it was known whether or not the accusations were true Thereafter, about 9 o'clock, Ehrhard was called from his department and met the employees of the F department as they were walking out in a body, apparently without previous warning to any one.13 Ehrhard asked what the trouble was and was informed that the employees were being watched too closely and that the two women were "snitching to the foreman everything going on." ° Two such agreements , one dated September 5, 1933, a nd the other January 1, 1937, were introduced in evidence . Both were of indefinite duration . As to changing enamel. the 1933 agreement covering piece rates and conditions on AE ranges provided : Also , as has been the custom on the day work basis , the mounters will replace the fronts when defective or chipped , until the range is turned over on the line and will replace the ends when defective or chipped until the range is ready to have top put on The January 1, 1937 , agreement contains the following piovisions as to the piece price set for the complete mounting of all types of AE and AB ranges : Included in this price , the mounters will replace all front castings when defective or chipped until the range is turned over on the line and will replace the ends when defective or chipped until the range is ready to have the top put on , and will replace any defective or chipped bottom bands , and corner pons until the iange is accepted by foreman or inspector. 10 The above finding as to the F line practice is based upon testimony given by Manning who was called as a witness for the respondent . Manning had worked on the F line himself and had been a member of the Union for about 20 years before becoming foreman of the F department on October 1, 1943. 11 This department , tinder Foreman Manning , then had a total of 33 employees, of whom 9 of the 11 coin plainants herein constituted the assemblers or mounters on the F line. Their work consisted essentially of putting the parts of the F type kitchen iange together with nuts , bolts and screws . The remainder of the 33 employees did various other types of work in the department , such as sub-assembly work preparatory to the work of assembling the ranges on the F line. 13 The complaints were that these two women were reporting to Manning whenever employees "stood and chewed the rag" for a few minutes and that Manning thereupon would come right over to where the employees were standing, and that these women also looked up under the partition in the women ' s rest room to see if any smoking was taking place outside of the regularly permitted period. 13 Nothing said hereinafter should be interpreted as condoning this action of the F department employees taken so shortly after the department 's steward had reported the alleged grievances to the Union ' s president MAJESTIC MANUFACTURING COMPANY 957 Ehrhard immediately went with a union committee to the office of Gilbert S. Morley, the respondent's production manager, explained the situation to him, and asked Morley for permission for the Union's Executive Board to meet with the whole F department to try to settle the matter. Motley granted this per- mission and a meeting was held. At this meeting the two accused women were questioned and while they admitted certain occurrences they claimed that these were "just coincidental" and that they "did not snitch to the boss." The em- ployees decided that they would not work with the two women and this decision was reported by Ehrhard to Morley. Morley asked if there was any objection to the two women being transferred to another department. Ehrhard returned to the F department employees and put M'lorley's question to them. The em- ployees objected to such a transfer on the grounds that the two women would do the same thing in any other department. Ehrliard then retui ned to Morley's office and stated the position of the employees. Morley agreed that Friday afternoon to discharge Moore and Procter and thereafter did discharge them. The F department employees were told to return to work on Monday, February 26, and on that day operations were resumed Evidently none of the F depart- ment employees was disciplined either by the Union or by the i espondent for walking out on February 23 and the evidence on this episode, in the opinion of the undersigned, shows that the officers of the Union acted diligently, and in cooperation with the respondent, in dealing with a labor dispute which arose out o1' suspicions of employees about two fellow eniployees and their foreman " On March 31, the mounters on the F line began i omplaniing to Manning that some of the nuts nn ould not fit on the bolts and bed sharp corners which were cutting their fingers. Some of the men did get "cut fingers" which were "backed up a little " Eventually the F line mounters quit work and started going around the plant. The move to stop work spread until the stoppage became general President Ehihard sent for the Union's International Secretary- Treasurei, Edward Kaiser, who. upon his ai rival, tried to discuss the matter with the employees, who were also dissatisfied with the delay in the National War Labor Board's proceedings involving their rates of pay. The employees aigued with Kaiser and "would not give him a chance to even speak." 10 Ehihard, other members of the Union's committee, and Kaiser then went to Morley's office and asked "petmisston to call a holiday' that afternoon in eider to discuss with the employees the nut and bolt situation and the reasons Ion' the delay fit the decision of the National War Labor Boar d This permission nn as granted and a union meeting was held all that aftei noon. This meeting was adjourned until the next day, Satuiday, April 1, and continued all that day until about 6 o'clock that evening The respondent's watchman was then notified later that en erring that the employees would be ready to return Monday, April 3, but the infoi maition was not relayed to the proper authorities of the respondent. "No attempt is made herein to determine what justification, if any, there was for such sasprrions Manning denied that either of the two women had been "stooges or snitches It should be noted that Mosley testified that after the discharge of Moore and Proffer it request nas made of hint by the Union that two other women be discharged , that he refused to do so and told the committee that he had made a mistake-in discharging Moore and I'rotler. and that none of the employees left their Rork on the latter occasion. it Manning so testified. However, Manning also testified that the men might have wrapped 1o1ie tape around their fingers and kept on woikrng as had been done before. An F line mounter, John Faltsehree, testified that nuts and bolts had been getting gradually worse and had sharp corners on them which, when the nuts stuck on the bolts, would spin and cut the worker's fingers and that eventually the men said that they could not work because the nuts were tearing their fingers to pieces The same kind of nuts were being used throughout the plant without complaint before the protest arose on the P line. 1" Ehrhard so testified. 958 DECISIONS OF NATIONAL LABOR RELATIONS BOARD while some employees resumed work on April 3, at least some of the stove mounters did not. However, they returned shortly thereafter when they were informed that new nuts bad been secured, such nuts having been borrowed by the respondent from a competitor. Again, there is no evidence that any dis- ciplinary action against any of the employees who stopped work on March 31 was attempted either by the Union or by the respondent The undersigned is of the opinion that the evidence as a whole shows that the officers of the Union with the cooperation of the respondent acted diligently in handling a labor dispute which arose spontaneously among employees who were dissatisfied with conditions of employment iz Prior to the strike of April 12, discussed below, grievances on the part of two welders in the machine shop who are complainants herein, John Miles and Timothy Courtway, had arisen and had not been fully adjusted About the middle of March, Miles, the shop steward in his department, complained to the machine shop foreman, Albert Sebifterdecker, and to Morley about the con- dition of two so-called emery wheels, one of which Miles said caused too much vibration on the wooden floor next to his place of work As to the other wheel, Miles complained two or three times that its operation produced too much dust The first wheel, a grinding lathe with an eatery wheel on each end, was torn down and new bushings put in. However Miles felt that this (lid not do much good. Thereafter this wheel was shut down As to the second wheel, a belt driven sander, a guard was placed on it for protection and Miles was informed by Morley that the respondent would endeavor to secure an individual dust collector for that wheel. Because of war conditions, the respondent experienced difficulty in securing such new equipment, while Miles desired prompt action It should be noted that the conditions pertaining to the wheels were not satis- factorily remedied until after the strikers had returned to work, when both wheels were moved to new positions in the plant where the one creating the dust nuisance could be connected to the plant's already existing dust collecting system.1e C. The dispute of April 11, 194!i About 8 o'clock on Tuesday, April 11, a dispute on the F line arose between Foreman Manning and mounter Dunlap over the completion of a range which Dun'ap had worked on the day before.19 This caused what Manning character- ized in his testimony as "another discussion " -0 Shop steward Wasson was 17 The findings in the above paragraph are made upon the undersigned's analysis of the testimony of six witnesses, Ehrhard, Manning, Russell, Morley, Kaltschnee, and Hai ri Haug, an employee of the respondent, financial secretary-tieasurer of the Union, and a member of its executive hoard The testimony of these six witnesses is essentially supple- mentary rather than contradictory. is The above findings are made upon the undersigned's analysis of the testimony of Morley, Miles, and Schiffeidecker 19 According to Manning, Dunlap refused to set some top plates eehicli Manning did not consider so crooked as to be unusable Dunlap did not testify According to Haug ei to was called in as the union representative, it was a broken enamel end which Dunlap refused to change because he d.d not feel that the breakage was his fault it is unnece9sary to resolve this conflict, since on either version it was a iefusal on Dunlap's part to follow Manning's instructions which precipitated the dispute of Api it 11 10 The other discussion arose in relation to a previous incident as to which Manning s and Haug's testimony is in partial conflict. However, from their testimony it is evident that sometime previously one of the mounters broke a cast iron pact of a iange when the range was nearly completed Haug was called in on the dispute eehich thereupon developed between Manning and the mounter as to whose responsibility it e.cs to replace the broken casting' A compromise was reached whereby an apprentice woiked with the nioeuiter in replacing the casting and completing the stove MAJESTIC MANUFACTURING COMPANY 959 called in on the dispute between Manning and Dunlap, and Manning told Wasson: I have changed all of your enamel up to now regardless of how it is broken and you are breaking a lot of cast iron pieces I have been taking off too, and the apprentices are absolutely working over here all day and I cannot allow it for it is costing too ilsuch s: * * you are going to have change your enamel if this continues, if you do not cooperate with me 21 As Manning testified, the situation "caused a general discussion on the line." Ehrhard and Haug both came to the department and discussed the matter with Manning. About 9 o'clock, a union committee and Manning went to Morley's office, where a conference took place. By or before 11 o'clock, work on the line ceased completely, although the men remained to the plant the rest of that day for a conference between management and the Union which took place on the F line that afternoon. At the time work ceased, there were 19 ranges on the line, 1r3 of which had the enamel broken at the point where a screw fastens the upper rear corner of the left end panel to the frame of the range This extensive break- age of the same panel, identified by the stock number, F 2'W, in the same place, had evidently occurred in the period immediately preceding April 11 and on the morning of April 11 and was entirely out of proportion to plant averages for enamel breakage.22 21 The above quoted matter is from Manning's testnony It is the respondent's contention that all of the 13 pieces of enamel were broken on the nioiunig of April 11 and that after Manning took the position lie did that morning "the inen brought the issue into prominence by breaking, either deliberately or carelessly, 13 ends on 19 ranges " It is evident fiom Manning',, above quoted statement to Wasson that bt sometime shortly after 8 o'clock on April 11 the question of changing broken enamel had become a significant problem in Manning's Hind Ac(ouhng to John Siemer and John Kaltschnee, two F line mounters who were called by the Board, the enamel at the upper rear corners of left end panels had been breaking more ficquently than usual ±or some days before April 11 when the screw in that corner, the last one of six sciews usually inserted, was tightened It is noteworthy that according to Manning's testimony, his statement to Wasson "caused it general discussion on the line" on the morning of April 11 Also a committee of the Union, including one or two F line niounters, met shortly after 9 that morning with Morley in his office and Manning met with them It was Manning who testified that no work was performed on the F line after 11 o'clock. In contrast, Siemer testified that work stopped that morning after about an hour and a half, or around 9 o'clock, when the men leas ned of the position Manning had taken concerning changing enamel It is undisputed that when Rork did cease, there were on the line 19 ranges, on 13 of which the enamel was bioken on panel F 207 Since it takes mbout one hour and 35 minutes to complete it u nge, to complete if) ranges would re- quire about 30 man hours of work Hence, ton the 9 assemblers to have completed 19 tang" that morning would have required the substantially uninterrupted efloits of all 9 of them fiom starting time at 7 30 until about 11, o clock that morning However, it is clear that work was nteriupted, at least to some e'Lent, beginning sometime afer 8 o'clock and that Manning was out of the department for a period beginning about 9 o'clock Further, the tespondent's records on bioken enamel which were produced at the hearing are compiled at irregular intervals, whenever Manning checks the truck upon which broken parts are placed The last such check made piuir to April 11 was made on April 7. It covered the period beginning March 30 and ending April 7 During that period, a considerable part of which the department Ras not tit o,,e a,ion because of the above discussed stoppage beginning on March 31, there were 4 pieces of the F 207 panel broken Since no check was thereafter made during the intervenin , i eriod before April 11, naturally no broken pieces of the end panel in question wear ecoided for April 8 or April 10, April 11, falling on Sunday. From fits consideration of all of the evi- dence, the undersigned is convinced that some of the 13 broken left end panels on the 19 ranges on the line after work had stopped on Apui 11 had been broken (luring work on those tanges performed before the morning of April 11. However, whenever the 13 faeces were actually broken, there can be no doubt that the bieaka:e of the panel here 960 DECISIONS OF NATIONAL LABOR RELATIONS BOARD During the conferences on April 11 between the Union and the respondent which took place, first on the F line, then in Motley's office, and then again on the F line, the respondent took the position that it was the fault of the mounters that the enamel was breaking and that the men would have to change all of the enamel. The Union took the position that the breakage was not the fault of the men and that it was the respondent's responsibility to change it. During the afternoon conference on the F line, there was extensive discussion of what was causing the breakage and several proposals were made as to how it might be avoided, including the proposal of leaving out the screw in the upper rear corner. During this afternoon conference, Morley displayed a 1939 contract between the respondent and the Union which required the mounters to replace all enamel chipped or broken in the process of assembly.2a While the 1939 contract thus exhibited clearly covered ranges no longer being inanufactuted,24 during the dis- cussion Morley's stereotyped answer to questions addressed to hint was that the Union would have to live up to that contract on changing enamel25 From Morley's admitted emphasis on the provisions of the 1939 agreement, and from the consistent and credible testimony of several Board witnesses that the respondent took the position on April 11 that the mounters would have to change all damaged enamel on their own time regardless of how the damage was caused,2' the undersigned is convinced and finds that the respondent on April 11 did in fact take the foregoing position concerning, the responsibility for changing enamel, and that this position constituted a clear change in the under consideration was extremely high in ielatmn to previous hieak.rge The iesiond- ent's records for the entice F depart merit show that univ (;3`•pieces or this same panel had been broken in the piecedmg period of more than 3 mouth liom January 1 to April 7, during which period 2 737 F ranges had been a,sembled At, to whether.the large amount of breakage appeasing on April 11 was due to dehbinatenesr. or carelessness on the part of the men or to defects in of maltoruialion of ni,itciiii, the conlradictosv evi- dence is not conclusive It is clear that enamel i.in be hioken bi dunvnig up screws too tightly and there are seveial fact,iis ni ilie .ituation whn.h could have, and evi- dently did, lead Russell. Morle' and Manning in ,hoiiii Iii then testonony to suspect that either carelessness or deliberateness on the pail of n;mie sit the eniplo^ees was a substantial factor in causing the bieakage In ant event it is clear that at no time on April 11, or at any time thereafter, were any of the striking mounters or the Union in- formed that they were being disehaiged toi bicakiirg enamel either caielessly or delib- erately. Hence, while this extensive enamel Ineakage was a ]actor entering into the re- spondent ' s considerations during negotiations following the strike, the respondent did not dicharge any of the mounters for this bie.ikage, whatever the respondent's suspicions may have been. 23 When Morley first testified as to this agreement on dnect examination he described its provisions as follows This agreement stated that it was the linemen's responsibility to replace chipped or broken enamel from the starting jig to the crate In other words, that was covering the period of the time that the assemblers were working on the range Haug testified that the contract which Morley exhibited on April 11 required the mounters to change all enamel no matter how it was broken, and Ehriiard corroborated that testimony While the agreement thus exhibited by Morley could not be found at the time of the hearing, it is apparent that its provisions were similar to those of previous contracts cited hereinabove. "President Russell , who took no part in the April 11 conferences , testified that the con- tract which Morley informed him that lie showed to the men covered AE and AB ranges which had been discontinued before September 1940 ; those ranges had in turn been suc- ceeded by the IR range which also had been discontinued 25 For instance , in reply to the question as to what he had said when a mounter had asked him whether, under one of the proposed procedures, the niounters would have to change enamel if it were broken through no fault of their own , Morley testified . I think niy stereotyped answer was, "You will have to live up to the agreement 26 Ehrhard , Siemer , Kaltschnee , and Haug so testified MAJESTIC MANUFACTURING COMPANY 961 respondent's general policy thereon and an especially sharp change as to the practice on the F line." As to the 13 broken panels on the 19 ranges, the respond- ent insisted that the mounters would have to change them while the Union insisted that the men were not responsible for the breakage. Thus, when the mounters left at the end of the day, this specific question as to changing the 13 already broken panels, as well as the question of general policy as to changing enamel, remain unresolved " D The strike of Api i,l, 12. 1 ltli, and neyotiattons thereafter On the morning of April 12, the F line mounters assembled at the plant gate where they met Ehrhard and asked him if there had been any change in the respondents position. Ehrhard replied that he did not know of any change At that juncture, Miinning came down the street and Ehrhard asked hint if there had been any change in the respondent's position. Manning replied that he aid not know of any. The mounters thereafter did not go in to work because they were unwilling to work on the respondent's terms that the niounters would be responsible for changing all enamel damaged during the period when ranges were being assembled. The undersigned finds that by their actions on the morning of April 12, the nine mounters on the F line engaged in an economic strike because the respondent had altered its customary practice concerning changing enamel. About 9 o'clock on the morning of April 12, the remaining two complainants, the two welders in the machine shop whose grievances had not been satisfactorily adjusted, left their work. The undersigned finds that by so doing, these two welders joined the strike.20 At 4:36 on the afternoon of April 12, the respondent sent to each of the 11 strikers identical telegrams which read as follows: PLEASE REPORT FOR WORK TOMORROW THURSDAY MORNING Olt PRESENT SATISFACTORY EXCUSE IF YOU FAIL TO COMPLY WITH THIS REQUEST YOUR NAME WILL BE REMOVED FROM OUR PAY- ROLL AND SOME ONE ELSE WILL BE HIRED IN YOUR PLACE. MAJESTIC MFG CO. On the morning of April 13, at least one of the strikers came to the plant. Upon learning from Ehrhard that there had been no change in the respondent's position, such strikers as came did not report for work. At 9: 40 a. in. on April 2' In making the above findings, the undersigned has considered, but does not believe, testimony of Morley and Manning to the effect that they did not take the position on April 11 that the mounters would have to be responsible for changing all enamel Ytl The above finding is made upon the weight of the evidence. For instance, Manning gave credible testimony that no decision was reached on April 11 as to who was responsible for changing the 13 ends , that part of the argument was to find out who had to change them ; and that, "We figured they should have changed them" while "they figured they did not have to change them " Similarly, Siemer testified that no agreement whatever was worked out with the respondent that afternoon on the F line Eventually Manning himself changed most of the broken panels on the following day. It should be noted that Morley testified that during the conferences of April 12, no question was raised as to breakage being caused by negligence, incompetence, or wilfulness on the part of the mounters 29 The undersigned deems it unnecessary to resolve the contradiction in the evidence cre- ated by Machine Shop Foreman Schifferdecker's denial of Shop Steward Miles' testimony that, before he and Courtway left the plant, he again took up with Schiffeidecker, without satisfaction , the question of dust collecting equipment for the emery wheel discussed above , since it is clear that the two welders then had unsettled grievances , that they actually did go on strike ; and that the 2 welders and 9 mounters were thereafter treated as one group of 11 strikers in the negotiations which followed. 670417-46-vol 64-62 ,962 DECISIONS OF NATIONAL LABOR RELATIONS BOARD 13, the respondent sent a telegram to the International office of the Union, which usually supplied replacements, requesting nine assemblers and two welders "to replace workers who have quit" and stating that if the Union was "unable to supply the help requested within three days," the respondent would be "obliged to supply its own relief " Russell also talked with Kaiser by telephone concerning replacements and Kaiser informed him that the Union had no men it could send and did not know when it could get any Thereafter, the respondent made other attempts to secure replacements, but was unable to do so. At no time was any one hired to fill the position of any striker. The entire F department was closed from approximately the inception of the strike until operations were resumed on May 16 when the strikers returned 30 On April 13, Morley sent for the Union's committee and intoimed the commit- tee, which included Ehrhard and Haug, that a meeting had been arranged for Saturday morning, April 15 " Ehrhard told Morley that "the men were ieady to come back to work any time they changed that ruling." Morley made no reply. The undersigned is convinced and finds that at no time on April 13, or during the negotiations thereafter, did the strikers offer to ieturn unconditionally upon the basis of the respondent's altered practice of April 1] concerning changing enamel." On Friday, April 14, when the strikers were handed their respective pay checks, each was handed an employee's copy of a NOTICE OF SEPARATION on the standard form of, the Unemployment Compensation Commission of Missouri. These notices of separation bore the signature, J. E Russell, President, and were dated as issued on April 13, 1944 In the space on the form reading "Date of Separation" was inserted "April 11. 1944" Of the four statements provided for checking to show "Reason for Separation," the one which was checked read. 'Quit voluntarily without good cause." In the space provided for `Explanation" was inserted the following: 30 Manning testified that he thought it was on the evening of April 11 that he laid off the sub-assemblers in the F department, telling them that they were being laid off until further notice, and that during the intervening period only a few laborers came in to do such work as unloading enamel. 31 The undersigned is of the opinion that a Conciliator of the United States Department of Labor, C A LaValley, who thereafter attended the meeting of April 15, and who had been called In from time to time by both the respondent and the Union during the labor disputes earlier that year discussed above, was instrumental in arranging this meeting. President Russell testified that on April 12 and 13, the respondent had been in contact with LaValley about the situation, and Morley testified that he thought that LaValley had arranged the meeting. ' 31 Counsel for the Board sought to prove that unconditional applications for reinstate- ment of the strikers had been made upon several occasions, the first of which was at the above meeting of April 13 The evidence does not establish any such unconditional appli- cations for reinstatement. Morley testified that lie could not recall being told on April 13 that "the men were willing to cone back to work under a status quo condition " The above finding as to Ehrhard's statement is quoted from credited testimony of Haug given in response to a question by counsel for the Board Upon questioning thereafter by the undersigned, Haug erplaincd that the strikers were ready to return if the respondent changed the rule about their having to replace all the enamel while Ehrhard testified that he told Morley on April 13 that "the men were ready to go back at any time under the same conditions they left under," it is clear from his testimony on cross-examination that the strikers were unwilling to return at any time under the new enamel iule of April 11. Thus, Ehrhard admitted that on April 13 the men were not willing to return "under the new order " He also testified that throughout the controversy the strikes s were willing to return if the respondent would change its rule about enamel but that they were never willing to return to work "if they had to change the enamel on their own initiative." MAJESTIC MANUFACTURING COMPANY 963 Left job and failed to report back to work after our telegraphic request fe On Saturday, April 15, the previously arranged meeting was held in the office of Production Manager Morley from about 10 o'clock in the morning unti14 o'clock in the afternoon. In addition to the shop committee, Kaiser was present to repre- sent the Union. Conciliator LaValley also attended In addition to Morley and Manning, the respondent was represented by Plant Superintendent Kurtz and one of its officers, Assistant Secretary and Assistant Treasurer Harrington, who was representing President Russell, then out of the city. At this conference there was considerable discussion as to who had been responsible for the breakage of the enamel and how such breakage could be avoided in the future Kurtz also brought up a number of matters which had occurred sometime previously for which the Union disclaimed responsibility. There was also discussion of who should be responsible for changing damaged enamel. Eventually it was agreed orally that the respondent would return to its former general practice of hold- ing the mounters responsible for changing only such enamel as was damaged through their own fault, and that the respondent would be responsible for chang- ing enamel damaged through no fault of the mounters Improved conditions as to the welders, including installation of dust collecting equipment as quickly as it could be secui ed, also were agreed upon during these negotiations 3i When it appeared that an understanding had been reached concerning all pending mat- ters, it was agreed that all the strikers would report for work Monday, April 17. At this point, Harrington said that he had a technical matter that he wanted to take up with President Russell upon his return, and that It would be better to arrange for the strikers to report back Tuesday. Thus, the meeting of April 15 terminated in a negotiated settlement, involving concessions by the respondent on the matters in dispute at the time the strike took place, and an understanding that the strikers would resume work on April 18. Instead of the strikers resuming work on April 18, a further meeting was held between the Union and the respondent in Russell's office. At this meet- ing the respondent's representatives of April 15 were augmented by Pi esident Russell, Vice President Phillips, and the respondent's attorney, Robert T Lurch The Union's committee included, among others, Ehrhard and Haug, and was supplemented by Kaiser Conciliator LaValley also attended At this meeting I'iesident Russell injected a new element into the situation by taking the post- tiori that the strikers were no longer employees of the respondent because their employee status had been severed. At this meeting the respondent's position was essentially that the strikers would not be reemployed until an agreement had been executed defining the responsibility for replacing enamel, piohibitiug strikes, and providing for a grievance procedure and arbitration In pressing the respond- ent's position, Russell stated that something would have to be done to eliminate "In connection with the above, it should be noted that the three unchecked reasons for separation were "Discharged for misconduct connected with work" , "Unable to work be- canse of ph%sical condition" , and "Other (Explain) " Such terms as strike and labor dis- pute are not presented for checking as reasons for separation, nor did the respondent inseit iineli terms anywhere on the separation notices On May 2, 1944, after a representative of the Unemnlovment Compensation Commission of Missouri had called at the respondent's office and asked that such a report be filed, the respondent filed the regular commission form entitled, NOTICE OF LABOR DISPUTE The form thus filed on May 2, upon re- quest of the Commission, gave notice of a "labor dispute" on April 11 involving the It loniplainants hcieui According to this form, it is required order law that said form be bled by the einplor ce "unmedi,rtely after a labor dispute occurs " "The finding as to agreement on conditions concerning the two striking welders, one of lihom was piesent at this conference, is based upon credited testimony of Haug 964 DECISIONS OF NATIONAL LABOR RELATIONS BOARD work stoppages. The Union insisted that their attoi ney would have to be present to confer in drawing up any such agreement . Russell suggested that Morley and Haug get together to "draw up something that would bind both parties on this enamel question." n Thereafter, following the foregoing meeting and before the next meeting which was held on April 21, Haug went to Morley's office and the two drew up a statement concerning changing enamel which was thereafter sub- mitted to the parties on April 21. The next meeting between respondent and the Union took place on April 21 at the office of the respondent's attogney.ae Morley and Haug presented the pro- vision which they had drawn up concerning -enamel.. This provision, set out below, was acceptable to the parties." While the Union presented its proposals for a general 1944 contract, it was agreed that no attempt would then be made to negotiate a complete contract but that rather a supplemental agreement would be drafted which would later be incorporated into a general agreement At the end of the meeting such a draft was completed, and the Union agreed to present it to its members for their approval Upon such approval, the strikers were to return to work The preface to the Supplemental Agreement drafted on April 21 stated that the provisions thereof would be incorporated into an agreement for 1944 which the parties were then "engaged in negotiating " The first article consisted of the enamel agreement drawn up by Morley and Haug and a statement that disputes arising as to breakage would be submitted to the grievance procedure which followed The only remaining article, entitled "Grievance Procedure," provided in its general introduction that if differences of any kind should arise, "there shall be no suspension of work on account of such differences " A detailed grievance procedure, including provisions for arbitration, was then set out in eight subdivisions. A ninth subdivision prohibited work stoppages and placed in the respondent's hands complete authority to discharge striking em- ployees. The language of this section read : (i) It is mutually agreed and understood that during the period of this agreement there shall be no strike, lock-out, cessation of work or any other stoppage of work, pending the handling of any matter under this agreement. The violation of this provision shall be grounds for discharge of any em- ployee participating and any persons so discharged shall not be entitled to reinstatement as a result of arbitration or otherwise. Within a day or two alter the above conference. the Union held a meeting at which the Supplemental Agreement, including arbitration procedure, was ac- cepted, except for the above provision against strikes which was rejected Shoitly thereafter Russell was informed of the Union's ,action. About this time Russell and Kaiser discussed the situation by telephone Russell explained to Kaiser that the respondent believed that it had to have a "plan of arbitration and a no-strike clause" in order to stop the series of strikes which had been disrupting work on the F line as This quotation is from Haug ' s testimony ao At this meeting the respondent was represented by Russell Morley a nd Burch The Union was represented by a local committee of five , including Ehrhaid and Haug , by Kaiser from the International, and also by its attorney , Herbert King 17 This provision read as follows It is the lineman' s responsibility to furnish his o,vn labor free in replace broken enamel and castings from the starting dig to the crate when such breakage is the result of his own negligence , incompetence , or wilful misconduct otherwise the Company will assume all responsibility. as Russell testified that the respondent had taken such a position on the advice both of its attorney and of Conciliator LaValley. Kaiser Burch . and LaValley (lid not testify MAJESTIC MANUFACTURING COMPANY 965 On April 25, the Union wrote the respondent that, as had previously been offered on April 13, 15, and 21, the 11 strikers, whose names were set out, were "willing and ready to return to work under the same conditions they had worked under before they struck" (Italics supplied.)" The letter further stated that the Union intended to file charges with the Board to protect the strikers and recover back pay "due them" as a result of the respondent's refusal to reinstate the strikers on April 13 and at all times thereafter. Under date of April 28, the respondent wrote a 3-page letter over the signature of President Russell reviewing the negotiations beginning with the meeting of April 18. At the outset, this letter stated, in response to the Union's inquiry as to when the respondent would be ready to put the 11 complainants back to work : As you know, these men are no longer employed by us. In the closing paragraph the respondent stated that it remained willing to submit to arbitration the Union's "claim that the 11 men should be reinstated" or to `reinstate the 11 men with full seniority" upon the execution of the agreement drafted on April 21.4° On May 10, the Union, over the signature of Ehrhard, replied to the respond- ent's letter of April 28, informing the respondent that charges had been filed with the Board.41 The second paragraph of this letter stated the Union's position on the employment status of the strikers in the following language : We do not agree with you that these eleven (11) men are no longer employed by your Company, but, on the contrary, we take the position that they are still your employees, and, from the date they offered to return to work, we are expecting you to pay them for all loss of time at their regular rate of pay. In this letter, the Union also stated that it was ready to begin negotiating an agreement for 1944, and therewith enclosed a copy of its proposed contract 42 39 It has been found above that the mounters were never willing to return upon conditions imposed by the respondent at the time they went on strike , and that on April 15, a nego- tiated settlement was reached providing for a return to the practice which existed before the strike At the time the above letter was written, this general before the strike practice as to enamel had been spelled out in writing in the proposed supplemental agreement of April 21, but the Union ' s letter of April 25 made no reference to the Union 's action on that agreement Nor did the letter propose any further negotiations . It pertained solely to reinstatement of the strikers and was signed by Ehrhard. 90 The respondent sent a copy of the above letter to LaValley. 41 The formal file in the instant matter shows that a charge was filed on May 1, 1944. It alleged that because of a labor dispute a strike had occurred on April 12 ; that on April 13 the strikers had offered to return to work under the conditions which had existed "prior to the strike " ; that on April 15 and thereafter the respondent had refused to reinstate the strikers under conditions existing "prior to the strike" ; and that at all times since April 13 the strikers had been willing to return under conditions existing "prior to the strike ." The first amended charge of December 26, 1944, upon which the complaint herein is based , alleges discharge of the 11 named strikers on April 13 ; an offer of reinstatement on May 12 to begin work on May 16 ; and failure to reimburse the strikers for loss of pay suffered. 42 This proposed contract was a revision by the Union 's attorney of the proposals first submitted by the Union on April 21, the day it was agreed to work out a supplementary agreement on immediate matters before attempting to negotiate the remainder of the con- tract. It should be noted that in the meantime the National War Labor Board had acted early in April on wage matters , the pendency of which had delayed the signing of an agree- ment. The Union 's revised proposal thus submitted on May 10 contained a provision like Article I on enamel breakage in the April 21 supplement and also a provision like Article II on grievance procedure in the April 21 agreement except that the final section, ( i), quoted above , prohibiting work stoppages and giving the respondent absolute rights as to dis- charging strikers , did not appear . It should be noted that the general agreement later signed on October 25 , 1914, effective as of September 1, 1944 , and presently in effect with modifications only as to rates of pay, contains the identical language of April 21 as to re- 966 DECISIONS OF NATIONAL LABOR RELATIONS BOARD The respondent, over Russell's signature, acknowledged the Union's foregoing letter by a letter dated May 12, in which the respondent stated that it would sub- mit its contract proposals in a few clays and would "be very glad" to meet to discuss the contract. This letter also stated that since the Union's proposed contract contained "provisions for grievance procedure and arbitration," the respondent assumed that contract provisions on this subject would be worked out which would be "mutually satisfactory" and had decided "to offer reinstate- ment to the eleven men mentioned in your letter." A copy of a letter being forwarded that salve day to each of the 11 strikers was enclosed" The body of the respondent's letter of May 12, which was sent individually to each of the 11 strikers, read as follows. You are hereby offered reinstatement to your employment with this company under the same conditions which existed at the time you left work. Please report for work Tuesday, May 16, 1944, at 7: 30 A. Al. In response to the above letter, eight strikers reported for and resumed work on May 16, and two others reported for and resumed work sometime shortly thereafter. The remaining striker has never reported for work." The conditions about which the welders had protested were remedied shortly after their return. Immediately upon the return of the mounters, the metal screw was left out of the upper rear corner of the left end panel, the corner at which the enamel on that panel had been breaking (luring the period shortly preceding the strike That screw was still being left out at the time of the hearing. The practice as to changing damaged enamel which has been followed since the return of the strikers is that which had been generally followed prior to the change instituted on April 11. E. Concluding findings Upon his analysis of the contentions of the parties as in the light of the facts hereluabove found, the undersigned makes the following concluding findings The strike of the 9 mounters which started on April 12 was occasioned by the respondent ' s change on April 11 in its practice as to replacing damaged enamel . The mounters were joined on April 12 by two welders who had un- settled grievances . The strike was thus an economic strike of 11 employees While the strike was not called by the Union , the Union, as it had done in pre- vious situations involving spontaneous work stoppage , undertook to reach a settlement of the labor dispute causing the strike While no unconditional ap- plication for reinstatement under conditions existing at the time the employees struck was ever made, a negotiated settlement of the issues precipitating the strike, which involved concessions by the respondent , was reached at the meeting sponsibility for replacing broken enamel, and a grievance and arbitration procedure similar to that provided in the Apiil 21 propo'al except for the final provision quoted above which the union membership rejected shortly after April 21. However, the following provisions as to work stoppages and discharge of employees are contained in Article XVII of the current contract Section 5 The UNION agrees that dunng the terns of this contract there shall he no strike, Blowup, sit-down, holiday (other than those specified herein), sympathy strike, stoppage of work, or any other torm of interference with production or other operations of the employer. Any individual or group taking part in or responsible for violating the foregoing provision may be discharged Section 5 The COMPANY agrees there shall be no lockout (luring the term of this Agreement 43 The respondent sent a copy of its letter of May 12 to the Board' s Regional Office. "This individual has gone into business for himself 11 See the section entitled, "Introductory Statement." MAJESTIC MANUFACTURING COMPANY 967 of April 15 How•e\ er. on April 18, when the men were to have returned' to work according to the settlement of April 15, the respondent failed to resume opera- tions and injected into the situation the untenable contention that the strikers were no longer its employees. It is evident from the negotiations and the cor- respondence which followed that the delay in resuming operations resulted in large part from the Union's justifiable refusal to accept the respondent's position that the strikers were no longer its employees When the respondent abandoned this contention and offered reinstatement to the strikers, work was forthwith resumed and negotiations went forward which resulted in a signed agreement which was mutually satisfactory While the series of strikes in the F department afford a reasonable basis for the respondent's desire to secure contract provisions for the settlement of dis- putes without work stoppages, there is nothing in this case to justify the re- spondent's discharge of the strikers46 In fact, the respondent contends that it did not discharge the strikers, although the facts clearly establish the contrary. In any event, it is apparent from the respondent's telegrams of April 12 to the, strikers, requesting them to report for work the, following day, that the respond- ent did not then consider the strikers undesirable as employees because of any previous actions Further, it is evident from the separation notices, given the stiikeis with their pay checks on April 14, that the respondent was separating said strikers from its pay roll solely because they remained on strike. That the respondent was then taking the erroneous position that these men were no longer its employees because of their failure to return as requested, rather than that a labor dispute was in progress. is apparent also from the fact that the respondent failed to file a Notice of Labor Dispute with the Unemployment Com- pensation Commission of Missouri until requested to do so, about 21 weeks after the separation notices were given to the strikers, although such a form should have been filed immediately In addition, it is clear that throughout the nego- tiations beginning with the meeting on April 18, and continuing until its letter of May 12. the respondent took the position that the strikers were no longer its employees and sought to use this erroneous position to gain concessions from the Union. It is undisputed that no striker was ever actually replaced. While under the 1llackuy case," the respondent in the economic strike involved herein would have had a right to replace the strikers in order to continue its operation of the F department, having been unable actually to make such replacements, the respondent could not, simply by its own fiat, declare the positions vacated and the strikers no longer its employees. Section 2 (3) of the Act provides that the term "employee" shall include "any individual whose work has ceased as a consequence of, or in connection with any current labor dispute " The re- spondent 's error in the instant matter was in attempting by unilateral action 48 4e The facts in this case are clearly distinguishable from the facts in cases cited by the respondent in support of its contention that the strikers herein were subject to discharge because of the unlawful nature of the strike . Further , it should be noted that since the strikers have already been offered reinstatement , there is no question in the instant matter as to* whether the strikers engaged in activity which would warrant the respondent in refusing them reinstatement . Contrast , for instance, the facts as to the strikes in the instant matter with the facts as to the strikes in such eases as the following cited by the respondent . Matter of The American News Company , Inc, 55 N L R B 1302; N L R B v. Fansteel Metallurgical Corp., 306 U. S. 240 ; and Southern Steamship Co v. N L. R B., 316 U. S 31. 4Q N L R B . v Mackay Radio i Telegraph Co, 304 U. S. 333 48 Whatever is assumed as to the existence of an oral contract in April 1944, it is clear that any provision thereof, to the effect that "both parties are to continue operation In the usual manner pending settlement " of any labor dispute, did not provide for the discharge of striking employees , as does the current agreement signed by the parties in October 1944 '68 DECISIONS OF NATIONAL LABOR RELATIONS BOARD to terminate the employee status of the strikers whose work had ceased in connection with a current labor dispute and in thereafter attempting to gain concessions from the Union upon the basis of this erroneous position. The undersigned finds to be without merit the respondent's contention that the strikers ceased to be employees because by striking they violated their contract. While it is evident that the respondent and the Union operated after 1942 on the assumption that they were under an Oral agreement, no written agreement had been signed. Further, assuming an oral agreement to have been in existence, this agreement provided that "both parties" should continue to operate in the usual manner if case of disputes. From the facts set out above concerning the inception of the strike of April 12, it is clear that the respondent first violated any such provision of any oral contract by changing on April 11 its traditional practice as to replacing broken enamel. In addition, in the instant matter, in contrast to the Sands case cited by the respondent,49 the Union was not insisting that the respondent operate under conditions at variance with provisions of any then current contract, since the contract of 1939 as to replacing enamel shown to the mounters by Morley on April 11 applied to ranges no longer being produced and since the general contract of 1941 as extended through 1942, which the re- spondent claims was still in effect as an oral contract, contained no provision as to replacing enamel. The undersigned also finds that the respondent's contention that the strikers ceased to be employees because they violated provisions of the War Labor Dis- putes Act 60 is without merit. It is provided among other things in Section 8 of that Act that for 30 days after notice of a labor dispute is given "the contractor and his employees shall continue production under all the conditions which pre- vailed when such dispute arose, except as they may be modified by mutual agree- ment or by decision of the National War Labor Board." The manner in which the labor dispute herein was precipitated in response to the respondent's changed enamel practice of April 11 confronted the Union with a spontaneous strike which it did not call and which it thereafter attempted to settle. However regrettable the strike may have been, the undersigned finds nothing in the War Labor Dis- putes Act, or in the decisions of the National Labor Relations Board which would warrant withholding from the complainants in the instant matter the protection to self-organization provided by Congress in the National Labor Relations Act. Finally, as to the decision of the Fourth Circuit in the Draper case,°' cited by the respondent, it should be noted that the decision in that case evidently turns upon the finding that a minority of the employees in the appropriate unit was attempt- ing to usurp the collective bargaining prerogatives of the Union which was the duly designated bargaining agent in the unit, and that to permit such usurpation would disrupt the fundamental bargaining process which the Act seeks to protect. In the instant matter, the strikers did not attempt to usurp the bargaining pre- rogatives of the Union. On the contrary, the Union, through its duly designated committees and officers, took up the grievances of the striking employees and negotiated said grievances until a settlement was eventually reached. Upon all of the foregoing, the undersigned concludes and finds that the respondent, by discharging the strikers, by taking the untenable position on April 18 and thereafter that the strikers were no longer its employees, and by seeking to utilize the reemployment of the strikers, which it had no right to withhold after the strike had been settled, as a leverage to give it additional bargaining power, discriminated in regard to the hire and tenure of employ- 49 N L. R. B. v. Sands Mfg. Co., 306 U . S. 332. 60 57 Stat. 163. 61 N. L. R. B. v. Draper Corporation, 145 F. (2d) 199 (C. C. A. 4). MAJESTIC MANUFACTURING COMPANY 969, ment, and terms and conditions of employment, of the 11 complainants herein," and by so doing, interfered with, restrained and coerced its employees in the- exercise of rights guaranteed in Section 7 of the Act. IV. THE EFFECT OF THE UNFAIR LABOR PRACTICES UPON COMMERCE The undersigned finds that the activities of the respondent set forth in Sec- tion III above, occurring in connection with the operations of the respondent described in Section I 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. 0 V. THE REMEDY Having found that the respondent has engaged in unfair labor practices, the undersigned will recommend that it cease and desist therefrom and take certain affirmative action which the undersigned finds necessary to effectuate the policies of the Act. Having found that the respondent has discriminated in regard to the hire and tenure of employment of James Wasson, Harry Reitz, Jesse Wasson; George Hoffmann, John Kaltschnee, John S-chappacker, Lawrence Dunlap, Bud Calloway, John Siemer, James Miles, and Timothy Courtway by discharging them, the undersigned will recommend that the respondent make whole the foregoing 11 named employees for any loss of pay which each may have suffered by reason of the respondent's discrimination against him by payment to each of a sum of money equal to the amount which lie normally would have earned- as wages from April 18, 1944, the date upon which work would have been re- sumed in the absence of said discrimination, to May 16, 1944, the date upon which reemployment was available, less his net earnings" during said period. Upon the foregoing findings of fact and upon the entire record in the case,. the undersigned makes the following : CONCLUSIONS OF LAW' 1. Stove Mounters International Union, Local No. 34, affiliated with the- American Federation of Labor, is a labor organization within the meaning of Section 2 (5) of the Act. 2. By discriminating in regard to the hire and tenure of employment of James Wasson, Harry Reitz, Jesse Wasson, George Hoffmann, John Kaltschnee,- John Schappacker, Lawrence Dunlap, Bud Calloway, John Siemer, James Miles and Timothy Courtway, and thereby discouraging membership in Stove Mounters International Union, Local No. 34, affiliated with the American Federa- tion of Labor, the respondent has engaged in and is engaging in unfair labor practices, within the meaning of Section 8 (3) of the Act. 3. By interfering with, restraining, and coercing its employees in the exercise of the rights guaranteed in Section 7 of the Act, the respondent has engaged 5i The names of these complainants are set out in footnote 1, above. as By "net earnings" is meant earnings less expenses, such as for transportation, room, and board, incurred by an employee in connection with obtaining work and working else- where than for the respondent, which would not have been incurred but for his unlawful discharge and the consequent necessity of his seeking employment elsewhere. See Matter of Crossett Lumber Company, 8 N. L. R B. 440. Monies received for work performed upon Federal, State, county, municipal, or other work-relief projects shall be considered as earnings. See Republic Steel Corporation v. N. L. R. B., 311 U. S. 7. 970 DECISIONS OF NATIONAL LABOR RELATIONS BOARD in and is engaging in unfair liibor practices within the meaning of Section 8 (1) of the Act. 4 The aforesaid labor practices are unfair labor practices affecting com- merce, within the meaning of Section 2 (6) and (7) of the Act. RECOMMENDATIONS Upon the basis of the foregoing findings of fact and conclusions of law, the undersigned recommends that the respondent, Majestic Manufacturing Com- pany, its officers , agents, successors , and assigns shall: 1. Cease and desist from : (a) Discouraging membership in Stove Mounters International Union, Local No. 34, affiliated with the American Federation of Labor, or any other labor organization of its employees , by discharging any of its employees or by refusing to reimburse said employees for any loss of earnings they may have suffered by reason of their discharge or in any other manner discriminating in regard to hire or tenure of employment , or any term or condition of employment; (b) In any other manner interfering with, restraining , or coercing its em- ployees in the exercise of the right to self-organization , to form labor organiza- tions, to join or assist Stove Mounters International Union , Local No. 34, affi'iated with the American Federation of Labor, or any other labor organiza- tion, to bargain collectively through representatives of their own choosing, and to engage in concerted activities for the purposes of collective bargaining or other mutual aid or protection , as guaranteed in Section 7 of the Act 2. Take the following affirmative action which the undersigned finds will effectuate the policies of the Act: (a) Make whole James Wasson, Harry Reitz , Jesse Wasson , George Hoffmann, John I{altschnee„ John Schappacker , Lawrence Dunlap, Bud Calloway, John Siemer , James Miles , and Timothy Courtway for any loss of pay each may have suffered by payment to each of a sure of money equal to the amount which he normally would have Partied as wages during the period from April 18, 1944, to May 16, 1944 , less his net earnings during said period; (b) Post at its plant at St Louis, Missouri, copies of the notice attached hereto , marked "Appendix A" Copies of said notice , to be furnished by the Regional Director of the Fourteenth Region, shall , after being duly signed by the respondent 's representative , be posted by the respondent immediately upon receipt thereof, and maintained by it for sixty ( 60) consecutive days thereafter, in conspicuous places, including all places where notices to employees are cus- tomarily posted . Reasonable steps shall be taken by the respondent to insure that said notices are not altered , defaced, or covered by any other material; (c) File with the Regional Director for the Fourteenth Region, on or before ten (10 ) days from the (late of the receipt of this Intermediate Report, a report in writing setting forth in detail the manner and form in which the respondent has complied with the foregoing recommendations. It is further recommended that unless , on or before ten (10 ) days from the date of the receipt of this Intermediate Report, the respondent notifies said Regional Director in writing that it has complied with the foregoing recommen- dations, the National Labor Relations Board issue an order requiring the re- spondent to take the action aforesaid As provided in Section 33 of Article II of the Rules and Regulations of the National Labor Relations Board, Series 3, as amended , effective July 12, 1944, any party or counsel for the Board may within fifteen (15) days from the date of the entry of the order transferring the case to the Board , pursuant to MAJESTIC MANUFACTURING COMPANY 971 Section 32 of Article II of Said Rules and Regulations, file with the Board, Rochambeau Building, Washington, D. C., an original and four copies of a statement in writing setting forth such exceptions to the Intermediate Report or to any other part of the record or proceeding (including rulings upon all motions or objections) as he relies upon, together with the original and four copies of a brief in support thereof. Immediately upon the filing of such state- ment of exceptions and/or brief, the party or counsel for the Board filing the same shall serve a copy thereof upon each of the other parties and shall file a copy with the Regional Director. As farther provided in said Section 33, should any party desire permission to argue orally before the Board, request therefor must be made in writing within ten (10) days from the date of the order transferring the case to the Board. EARL S BELLMAN, Trial Examiner. Dated April 23, 1945 "APPENDIX A" NOTICE TO ALL EMPLOYEES Pursuant to recommendations of a trial examiner of the National Labor Relations Board, and in order to effectuate the policies of the National Labor Relations Act, we hereby notify our employees that: We Will Not in any manner interfere with, restrain, or coerce our employees in the exercise of their right to self-organization, to form labor organizations, to join or assist STOVE MOUNTERS INTERNATIONAL UNION, LOCAL NO. 34, AFFILIATED WITH THE AMERICAN FEDERATION OF LABOR, or any other labor organization, to bargain collectively through representa- tives of their own choosing, and to engage in concerted activities for the purpose of collective bargaining or other mutual aid or protection We Will Offer to the employees named below immediate and full reinstate- ment to their former or substantially equivalent positions without prejudice to any seniority or other rights and privileges previously enjoyed, and make them whole for any loss of pay suffered as it result of the discrimination. James Wasson Lawrence Dunlap Harry Reitz Bud Calloway Jesse Wasson John Siemer George Hoffmann James Miles John Kaltschnee Timothy Courtway John Schappacker All our employees are free to become or remain members of the above-named union or any other labor organization. We will not discriminate in regard to hire or tenure of employment or any term or condition of,employment against any employee because of membership in or activity on behalf of any such labor organization. MAJESTIC MANUFACTURING COMPANY Employer Dated-------------------- By ---------------------------------- (Itepreseutative) (Title) This notice must remain posted for 60 days from the date hereof, and must not be altered, defaced, or covered by any other material Copy with citationCopy as parenthetical citation