Marcus Trucking Co., Inc.Download PDFNational Labor Relations Board - Board DecisionsJul 18, 1962137 N.L.R.B. 1378 (N.L.R.B. 1962) Copy Citation 1378 DECISIONS OF NATIONAL LABOR RELATIONS BOARD were pretexts, and that it discharged them because of their union adherence. MEMBERS RODGERS and FANNING took no part in the consideration of the above Supplemental Decision. Marcus Trucking Company, Inc . and Dairy Transportation Drivers, Helpers and Terminal Employees, Local 770, Inter- national Brotherhood of Teamsters , Chauffeurs and Helpers of America and Local 602, International Brotherhood of Teamsters , Chauffeurs, Warehousemen and Helpers of Amer- ica, Party to a Contract . Case No. -CA-6031. July 18, 1962 SUPPLEMENTAL DECISION AND ORDER On March 11, 1960, the Board issued a Decision and Order in the above-entitled case, ' finding that the Respondent had engaged in un- fair labor practices in violation of Section 8(a) (1), (2), (3), and (5) of the National Labor Relations Act, as amended, and directing, inter alia, that the Respondent (1) make the employees in the appropriate unit whole for any loss of earnings which they may have incurred by reason of the elimination of overtime pay by the Respondent; (2) re- imburse all employees in the appropriate unit for all membership dues, initiation fees, and assessments which they paid to Local 602 as a condition of employment during the period commencing May 30, 1958; and (3) restore employee Kenneth Bedford to that position ,on the seniority roster to which he was rightfully entitled and make him whole for any loss of pay which he suffered as a result of his re- duction in seniority. On January 26, 1961, the United States Court of Appeals for the Second Circuit entered its decision ,a affirming the Board's findings of unfair labor practices and enforcing the Board's Order with respect to the loss of earnings resulting from the elimination of overtime pay and with respect to the backpay owing to Kenneth Bedford, but modi- fying the Board's Order by limiting the reimbursement of dues and .other fees "to those employees who continued to pay dues to Local 770 and for the period of such payment, not, however, later than the date when our order becomes final." On July 31, 1961, the Board's Regional Director for the Second Region issued a backpay specification and, on September 27, 1961, the Respondent filed an answer thereto. Upon appropriate notice issued by the Regional Director, a hearing was held before Trial Examiner 1126 NLRB 1080. 2 286 F. 2d 583. 137 NLRB No. 141. MARCUS TRUCKING COMPANY, INC. 1379 John P. von Rohr for the purpose of determining the amounts of backpay due the claimants. On March 1, 1962, the Trial Examiner issued his Supplemental Intermediate Report on Backpay, which is attached , finding that certain claimants were entitled to specific amounts of backpay. Thereafter, the Respondent and the General Counsel filed exceptions to the Supplemental Intermediate Report and briefs in support thereof. Pursuant to the provisions of Section 3 (b) of the Act, the Board has delegated its powers in connection with this case to a three-member panel [Chairman McCulloch and Members Leedom and Brown]. The Board has reviewed the rulings made by the Trial Examiner at the hearing and finds that no prejudicial error was committed. The rulings are hereby affirmed. The Board has considered the entire record in this case, including the Supplemental Intermediate Report and the exceptions and briefs, and hereby adopts the findings, con- clusions, and recommendations of the Trial Examiner, with the modi- fications noted below. In its decision , the Board found that , by entering into a union- security contract with Local 602 at a time when the Respondent's contract with Local 770 was still in effect, the Respondent violated Sec- tion 8(a) (1), (2), (3), and (5) of the Act, and, to remedy these un- fair labor practices the Board ordered inter alia, that the Respondent reimburse all employees in the appropriate unit for all dues, fees, and assessments which they paid to Local 602 as a condition of employ- ment. The Respondent contends that, in view of the decision of the United States Supreme Court in Local 60, United Brotherhood of Carpenters and Joiners of America, AFL-CIO, et al. (Mechanical Handling Systems) v. N.L.R.B., 365 U.S. 651, issued subsequent to the decision of the court of appeals herein, the Board may not impose that portion of its remedy relating to the reimbursement of dues. We find no merit in this contention. As noted, the court of appeals expressly limited the reimbursement-of-dues remedy to those employees of the Respondent who "continued to pay dues to Local 770." As these em- ployees indicated their continued adherence to Local 770, we find that the Respondent, by unlawfully entering into a union-security contract with Local 602, coerced them into joining Local 602 as a condition of employment. In these circumstances, we find that the reimbursement- of-dues remedy imposed herein is not of the type rejected by the Su- preme Court in Local 60, Carpenters, supra, but rather is similar to the reimbursement-of-dues remedy upheld by the Supreme Court in Virginia Electric and Power Company v. N.L.R.B., 319 U.S. 533. See Lapeer Metal Products Company, 134 NLRB 1518. In computing the backpay due employee Bedford, the Trial Ex- aminer disallowed the amount of $45.99, claimed in the Regional Director's backpay specification as reimbursement to Bedford of 1380 DECISIONS OF NATIONAL LABOR RELATIONS BOARD overtime backpay, on the-ground that overtime backpay due- Bedford had already been taken into consideration in determining the gross backpay due Bedford by reason of his reduction in seniority (see Appendix B-1 to the Supplemental Intermediate Report, line (s) ). The General Counsel excepted to the Trial Examiner's failure to find that Bedford was entitled to the additional amount of $45.99. He contended that since, in computing net backpay due Bedford as a result of his reduction in seniority, the amount of overtime wages due Bedford was deducted as interim earnings (see Appendix B-3 to the Supplemental Intermediate Report, line (b)-3, it therefore followed that Bedford would not receive his overtime compensation twice if he were awarded the additional amount claimed. We find merit in the contention of the General Counsel. We have therefore recomputed the backpay due Bedford and we shall add to the amount of net back- pay awarded Bedford by the Trial Examiner the amount of $45.99, representing overtime backpay due Bedford by reason of the Respond- ent's unlawful elimination of premium pay for overtime. We find that the correct net backpay due Bedford is $3,919.56. ORDER On the basis of the foregoing Supplemental Decision and Order, and upon the entire record in this case, the National Labor Relations Board hereby orders that the Respondent, Marcus Trucking Coin- pany, Inc., Monroe, New York, its officers, agents, successors, and assigns, shall pay to the employees involved in this proceeding, as net backpay, the, amounts set forth opposite their naives, as follows : Bedford, Kemmeth____ $31919.56 Jurgensen, H--------- $2, 135.47 Miesner, T----------- 1, 757.99 Scherf, H------------ 1, 708.03 Ellis, D_____________ 31. 94 Washburn, B________ 1, 818.20 Somerville, W-------- 72. 10 Pirger, S------------ 129. 97 Bulson, H----------- 117.92 Rose, A-------------- 1,554.84 Washburn, A-------- 1, 646.85 Hansen, S----------- 1, 815.27 Tencza, J------------ 121.16 Thompson, W-------- 1,552.51 Klinegaardner, D_____ 1, 648.94 Polke, R_____________ 1, 578.51 Geysen, P------------ 333.65 Hartwick, L--------- 568.05 Vandunk, T---------- 21360.10 Knapp, F------------ 951.07 Austin, G------------ 1, 378. 58 Kowalczik, A-------- 9. 63 Lane, L-------------- 1,150.08 Keesler, G----------- 942.28 Lane, C------------- 1,587.51 McGill, C------------ 1, 601.89 Muller, B------------ 2, 089.67 Wood, J------------- 1,328.10 Bliss, C-------------- 2, 059.01 Winter, J------------ 264.75 Rockwell, R---------- 2, 003.09 Porter, J------------ 508.29 Crotty, L------------ 562.15 Brewer, W----------- 11070.915 Kruger, L----------- 102.48 Perrone, J----------- 261. 30 O'Brien, M---------- 2, 065. 15 Calhoun, L__________ 107.66 Gordon, H----------- 235.15 Marsh, T------------ 525. 59 Rhodes, J------------ 26.91 Ochs, J-------------- 422. 14 Gorsch, M_ ----------- 120.72 McNaughton, P------ 294.78 MARCUS TRUCKING COMPANY, INC. 1381 Kraus---------------- $316.63 Steenrod, R__________ $18.88 Kelly, L------------- 11223.58 Puetz---------------- 242.75 Gallagher, W_____-__ 11.56 Hellyer______________ 16.56 Ferrari, A___________ 756.72 Zamparelli___________ 208.13 Bell, Roger__________ 567.29 Bargisen, C------ ---- 133.28 Olsen, C_____________ 661.44 Perrone, R___________ 77.51 Cure, H------------- 861.33 Kelly, D------------- 18.79 Bargisen, L__________ 894.02 Cunningham_________ 24. 10 Finch---------------- 485.82 Cowton-------------- 424.78 Root----------------- 217.51 Do Freece____________ 7.86 Hall----- ----------- 428.74 Fisher_______________ 1.20 Yantz_______________ 200.43 Conklin, D___________ 585.70 Kraus_______________ 316.63 Paine__-_-_-_-_____-_ 108.78 Santora, F___________ 143.35 Wallace__-_-____-____ 63.01 Grady, A ------------ 172.08 Nelson___-______-____ 77.62 Padgett, D----------- 7.44 SUPPLEMENTAL INTERMEDIATE REPORT ON BACKPAY On March 11, 1960, the Board issued its Decision and Order reported in 126 NLRB 1080, directing, inter alia, that the Respondent: (1) make the employees in the ap- propriate unit whole for any loss of earnings by reason of the elimination of overtime pay, the elimination of which the Board found to have been occasioned by the Re- spondent's unfair labor practices; (2) reimburse to its employees in the appropriate unit dues, fees, and assessments which they had paid to Local 602 as a condition of employment during the period commencing May 30, 1958; and (3) restore to em- ployee Kenneth Bedford that position on the seniority roster to which he is right- fully entitled, and make him whole for any loss of pay suffered as a result of his reduction in seniority status. Upon petition for enforcement of the foregoing Board Order, the United States Circuit Court of Appeals for the Second Circuit on January 26, 1961, entered its opinion affirming the Board's findings on the merits and enforcing that part of its order (1) with respect to the loss of earnings due to the elimination of overtime pay and (2) with respect to any backpay owing to Kenneth Bedford; but modifying the Board's Order with respect to reimbursement of dues, fees, and assessments to the extent that such reimbursement be limited "to those employees who continued to pay dues to Local 770 and for the period of such payment, not, however, later than the date when our order becomes final." On July 31, 1961, the Regional Director for the National Labor Relations Board for the Second Region (New York, New York), pursuant to the Board's Rules and Regulations , Series 8, issued a backpay specification and notice of hearing. On September 26, 1961, the Respondent filed an answer to the said specification, follow- ing which the General Counsel filed an undated motion to strike the answer and for judgment on the pleadings. By order dated October 19, 1961, Trial Examiner Lloyd R. Fraker granted said motion to the extent of striking certain affirmative defenses alleged in Respondent's answer, but denied the motion insofar as it requested a judg- ment in the pleadings. Subsequently the Respondent filed an undated amended answer with the Regional Director which the General Counsel introduced as a part of the formal papers in this proceeding. A further amendment to its answer was filed by the Respondent during the hearing on November 21, 1961. Respondent's answer, as amended, denies and admits various allegations in the backpay specification and additionally alleges certain affirmative defenses, the details with respect to all of which need not be set forth here since the issues raised by the Respondent will be considered hereinafter. Pursuant to notice, a hearing was held on November 20 and 21, 1961, in New York, New York, and on November 28, 1961, in Monroe, New York, before Trial Examiner John P . von Rohr. All parties were present and represented by counsel and were afforded full opportunity to adduce evidence, to examine and cross-examine witnesses, to present oral argument, and to file briefs. The General Counsel presented oral argument at the hearing. A brief submitted by the Respondent subsequent to the close of the hearing has received careful consideration. 1382 DECISIONS OF NATIONAL LABOR RELATIONS BOARD FINDINGS OF FACT AND CONCLUSIONS A. Reimbursement of dues The court's decree provides that Respondent shall "reimburse to those driver em- ployees who continued to pay dues to Local 770, the dues, fees and assessments which these employees paid to Local 602 as a condition of employment during the period commencing May 30, 1958." The backpay specification set forth the names of Respondent's driver-employees who paid dues to both Local 770 and Local 602 during the period commencing May 30, 1958, and the monthly amounts paid by said drivers to Local 602.1 Although the Respondent's amended answer contains a general denial of the allega- tions in the backpay specification pertaining to dues reimbursement, counsel for the Respondent stipulated at the hearing that the figures and amounts due on the specifica- tion in respect to dues reimbursement were correct. Respondent's contention that it should not be required to comply with the order of dues reimbursement in view of the Supreme Court's refusal to enforce the Brown- Olds remedy in Local 60, United Brotherhood of Carpenters and Joiners of America, AFL-CIO et al. (Mechanical Handling Systems) v. N.L.R.B.2 is without merit. Suffice it to say that the latter case involved a hiring hall situation where the Court found an absence of evidence to show that any employees were coerced in the pay- ment of their union membership fees or dues. That situation is manifestly inapposite from the case at bar, for here the violation found by the Board was predicated upon Respondent's unlawful assistance to Local 602. The Board has traditionally ordered a reimbursement of dues in cases involving employer domination of or assistance to unions .3 Accordingly, it is found that the employees are entitled to dues reimburse- ments in the amounts set forth opposite their names in the section of this report entitled "Conclusions and Recommendations." B. Overtime pay The decree provides that the Respondent shall make its driver-employees whole for any loss of earnings they may have suffered from May 30, 1958, up to and including July 31, 1960, by reason of the elimination of the system of overtime pay existing prior to May 30, 1958. The problem involved in this aspect of the remedy may be posed by the following statement in the Board's decision: The record indicates, and the Trial Examiner found, that in August 1957, Respondent instituted the payment to its tank-drivers of time and one-half for overtime in excess of 10 hours per day and that the payment of such premium pay for overtime was discontinued by Respondent on May 30, 1958, pursuant to its contract with Local 602. Since we have found that the Respondent violated the Act by entering into this contract with Local 602, we deem it necessary . . . to reimburse the drivers for the loss they suffered as a result of Respondent having unlawfully modified their working conditions. The formula used by the General Counsel in computing the overtime pay due the drivers is substantially set forth in the backpay specification. Further elabora- tion thereof was given by Sidney Levy, the acting compliance officer of the Second Region, who was called as a witness by the General Counsel? We now set forth the formula and its application as thus utilized by the com- pliance officer. It is to be noted that for purposes of illustration, the columns to which references are hereinafter made are shown in Appendix A, attached hereto, which is a schedule showing the overtime backpay computations for driver-employee T. Miesner. The Respondent's records do not disclose the number of hours worked by each employee for each day during the backpay period, but its weekly payroll records do show for this period the wages earned by each employee for each day and the total wages earned by each employee for each week. Accordingly, the compliance officer made a determination of the number of hours worked daily by each em- These figures included dues payments only, it appearing that no other fees or assess- ments were paid by the drivers during the period in question. 2365 U.S. 651. 8 See Virg nia Electric and Power Company v. N L R B., 319 U S 533; Checker Taxi Company, 131 NLRB 611; Reliance Fuel Oil Corp., 129 NLRB 1166 ' Mr. Levy was in charge of and participated in the investigation of the matters covered in the backpay specification herein The bark-ay specification was drafted under his. supervision. MARCUS TRUCKING COMPANY, INC. 1383, ployee during the backpay period by dividing the daily wage of each employee by his then prevailing hourly rate of pay. Having thus established the number of daily hours worked , he then calculated the total number of hours worked in excess of 10 per day by subtracting 10 from the total hours for the day . The hours in excess of 10 per day for all days in the backpay period of each discriminatee were totaled for each calendar quarter and entered in column B of Appendix A.5 This latter figure, then, on a quarterly basis represents the number of overtime hours worked by the employees for which they are to be made whole under the court's decree. The computation of the overtime earnings thus due was carried out by the simple procedure of multiplying the overtime hours by one-half of the applicable hourly straight time wage rate.6 These were entered under column C of Appendix A. Finally, an examination of the Respondent 's payroll records indicated that during the backpay period the employees were paid overtime for hours worked in excess of 60 per week. Accordingly, the compliance officer credited the Respondent for such overtime payments and entered these amounts under column D of Appendix A. In other instances where Respondent 's payroll records explicitly identified a pay- ment as a payment for overtime worked, such payments were also credited to the Respondent and entered under column D. The net overtime wages due the driver- employees were then determined by deducting the credits entered under column D- from the overtime due entered under column C. They are entered under column E. The Respondent does not dispute the accuracy of the compliance officer's calcu- lations nor does it dispute the authenticity of the information which he thus obtained from its payroll records. However, the Respondent raises several defenses which, if meritorious, would substantially reduce the extent of its liability from that claimed by the General Counsel. First, the Respondent asserts that its liability is limited only to those employees who were employed by it on May 30, 1958. In support of this contention, Re- spondent argues in its brief, There can not possibly be any claim that we discriminated against those persons who came into our employ thereafter. These latter persons took employment on the basis that they would be paid time and a half after 60 hours per week and not on the basis of time and a half after 10 hours per day. When the charge was filed these persons were not in the employ and charges were not filed on their behalf or for their benefit. . The court dealt with those drivers who on May 30 were in our employ and not with those who came to work thereafter. I am constrained to find that there is no merit to the foregoing contention. As. indicated heretofore , the court 's decree requires the Respondent to "make its driver- employees whole for any loss of earnings they may have suffered from May 30, 1958, up to and including July 31 , 1960, by reason of the elimination of the system of overtime pay existing prior to May 30, 1958." Clearly, the court's decree encom- passes all employees who were employed by the Respondent during this period. Neither the Board nor the court distinguished between employees who were hired before or after May 30, 1958. There can be no doubt as to the basis for this finding, for it is clear that the violation in question was a continuing one which ran through the period from May 30, 1958, to July 31, 1960, inclusive. All employees who were employed by the Respondent during this period were thereby subjected to, an unlawful modification of working conditions. This, in substance, was the finding of the Board and the court . In reality Respondent 's argument here is one which goes to the merits of the case. As such it cannot be relitigated in the instant backpay proceeding. As a further defense, the Respondent sought to prove that the majority of its drivers did not desire reimbursement for any loss of overtime backpay. 7 It is the Respondent 's position that any order requiring payment of backpay against the wishes of the employees would be of a punitive nature. The principle involved' for the Trial Examiner's rejection of this defense has been well summarized by the 6 Column A of Appendix A shows the hourly rates for the periods specified thereon Due to the various changes in hourly rates during the backpay period, it was in some instances necessary to break down quarterly periods into appropriate fractions thereof. 0 The compliance officer's testimony is undisputed, and I find, that the Respondent paid straight time for these hours worked by its employees Accordingly, its liability was limited to half time ( or premium time ) for the overtime hours in excess of 10 per day. 7 Evidence to this effect was rejected by the Trial Examiner at the hearing as irrelevant and immaterial to the issues in this proceeding . For the purpose of setting forth the Re- spondent 's position , however , it is noted that Respondent 's amended answer attached & 1384 DECISIONS OF NATIONAL LABOR RELATIONS BOARD following statement of the Trial Examiner, which the Board adopted, in the recent case of W. C. Nabors, d/b/a W. C. Nabors Company, 134 NLRB 1078: The question presented, therefore, is whether the withdrawal at the hearing of a backpay claim by the claimant, where such withdrawal is not shown to have been coercively or fraudulently obtained, is effective. If the Board were con- cerned only with the adjudication of private rights, such a withdrawal should certainly be given effect. The Board, however, acts in a public capacity to prevent the commission of unfair labor practices and to vindicate the declared policies of the Act. "The Board, is not, as Respondents suggest, merely the statutory representative of the employees for the recovery of their losses. [Footnote omitted.] Its primary function under § 10, in connection with which it makes specific monetary orders for specific employees, is to prevent the conduct defined as unfair labor practices in § 8." N.L.R.B. v. Deena Artware, Inc., 361 U.S. 398, 411-412 (concurring opinion). Pursuant to this well-settled principle, the Board has on numerous occasions held that "the desires of individuals cannot be allowed to block the public purpose behind the Board's requirement that they be made whole." I. B. Wood, an individual, d/b/a Wood Manufactur- ing Company, et al., 95 NLRB 633, 642. See also N.L.R.B. v. E. A. Labora- tories, Inc., 188 F. 2d 885 (C.A. 2), cert. denied 342 U.S. 871; Newspaper & Mail Deliverers' Union of New York, 93 NLRB 237, 266. And as to closely related matters, see Arista Service, Inc., 127 NLRB 499; Clayton-Willard Sales, 126 NLRB 1325. Application of the same principle here requires a like result. The motion to strike the claim for Hatcher because of the latter's assertion at the hearing that he desired to withdraw his claim is denied. Finally, it is the Respondent's position that in fact no losses accrued to the driver- employees by reason of the elimination of the overtime pay which is here under con- sideration. In an effort to demonstrate the merit of this position, Respondent attached to its brief a schedule which is entitled "Comparison of Earnings of Repre- sentative Drivers between period prior to May 30, 1958 and Back Pay Period." This schedule lists the total wages received by 21 of its drivers for the first and second quarters of the years 1958, 1959, and 1960. With reference to this schedule, Respondent states in its brief: "Our study shows that the drivers earned substantially the same amounts of money during the quarters covered by this proceeding as they had prior thereto." This statement is true insofar as it reflects what the schedule purports to show. However, the schedule itself fails to take into account certain vital factors which are involved in the employees' earnings, the omission of which negates entirely the purpose for which it was offered. First, it is noted that the driver-employees received an hourly wage rate increase in the latter part of 1958 and another in 1959.8 Thus, although in some instances the drivers may have earned as much during the discriminatory period as they did before, it is plain that the wage increases given during the period of discrimination in a large measure ac- counted for this apparent equality of earnings as shown in Respondent's schedule. In other words, but for the loss of overtime pay for hours worked in excess of 10, it is clear that the drivers would have earned proportionately more during the back- pay period. A second factor which is not disclosed in Respondent's schedule is the number of hours worked. Thus, it cannot be assumed that the employees worked the same number of hours prior to the backpay period as they did during the backpay period. It is apparent that since the backpay here in question must be determined on the basis of the number of hours worked in excess of 10 hours per day, any comparison of quarterly earnings is meaningless unless it takes into consideration the actual number of hours worked. The Respondent's schedule setting forth certain such comparisons is completely lacking in this respect. It is well settled that the Board has been entrusted with broad discretion in choos- ing an appropriate backpay formula, as warranted by the circumstances of each copy of a petition dated August 8, 1961, purportedly signed by 45 of its driver-employees, which stated as follows' To Whom it May Concern' We the undersigned employees of Marcus Trucking Company, Inc., of our own free will will refuse any back pay that was handed down by the N L R B. and Court decision The reason being : we the employees, struck Marcus Trucking Co, Inc, on May 30, 1958, to do away with any overtime on the daily basis. D During the period prior to July 31, 1958, the employees were paid at the rate of $2.47 per hour This rate was increased to $2.62 per hour on August 1, 1958, and on August 1, 1959 , the hourly rate was further increased to $2 77. (These increases are reflected in Appendix A.) MARCUS TRUCKING COMPANY, INC. 1385 case .9 It is necessary only that the formula utilized be reasonable and fair in carrying out the terms of the Board's order.10 I find and conclude the formula uti- lized by the General Counsel in determining the amount of overtime backpay due, as heretofore described, to be fair and reasonable. The total overtime backpay to which each of the driver-employees is entitled under the General Counsel's formula is set forth opposite their names in the final section of this report under the heading "Conclusions and Recommendations."" C. Kenneth Bedford The Board found that Respondent violated Section 8(a)(1), (2), and (3) of the Act by reducing the seniority of employee Kenneth Bedford, a driver, because he was not a member of Local 602. The court's decree requires that Respondent "re- store Kenneth Bedford to that position in the seniority roster to which he is right- fully entitled in accordance with the date of his hire, or other relevant non- discriminatory factors, without regard to his union membership, and make him whole for any loss of pay suffered as a result of his reduction in seniority status." It is necessary to first set forth certain background for an understanding of the backpay problem involved. Respondent is engaged in the hauling of milk by truck. Bedford was one of its drivers. In the main, Respondent's milk runs were of two categories, viz, one being the so-called "upstate run" which originated in Monroe, New York,12 and went to points in upstate New York, the other being the "down- state run," which originated in Monroe, New York, and went to New York City. It is undisputed that the upstate runs were of longer duration than the downstate runs and that the drivers assigned to the former earned higher wages than those assigned to the latter. In this connection, the significance of the following finding in the Board's decision is apparent: At all material times, preference in job assignments has been accorded the Re- spondent's drivers on the basis of seniority ranking. Thus, the drivers with higher ranking have preference in the choice of available runs. Bedford was ranked No. 19 on Respondent's seniority roster prior to the dis- crimination which the Board herein found. On June 22, 1958, the date of the dis- crimination, be was dropped from 19th place to 44th place on the seniority list.13 In the instant hearing, Bedford testified without contradiction that prior to his discriminatory reduction in seniority he customarily had been assigned to the longer upstate runs. After his reduction in seniority, however, he was assigned to the shorter downstate runs.14 This takes us to the backpay problem here involved, for it is undisputed that drivers on the downstate runs earned less than those assigned to the upstate runs.15 As the General Counsel points out, the problem of Bedford's backpay is not one of easy resolution. There perhaps is no perfect formula to determine exactly how much Bedford would have earned had it not been for his discriminatory reduction on the seniority list. The compliance officer, therefore, adopted a formula which 9 Phelps Dodge Corp. v. N L R B., 313 U.S 177, 198. " Brown and Root, Inc, et al, 132 NLRB 486; Kartarsk, Inc, 111 NLRB 630, enfd 227 F. 2d 190, 192-193 (CA. 8) ; Ozark Hardwood Company, 119 NLRB 1130, 1158, enfd in part and remanded 282 F. 2d 1, 7 (C.A. 8) 11 A total of 74 employees are to be made whole for loss of overtime pay The backpay computations as to each are shown on individual schedules which were computed in the same manner and on the same form as shown on Appendix A, attached hereto These schedules were attached to the backpay specification which was served on all parties to this proceeding. Inasmuch as the backpay specification was received in evidence as a General Counsel's exhibit, these individual schedules of computations are also a matter of record in the instant case Rather than to further burden this report, the said schedules are incorporated herein by reference. 22 Monroe, New York, is Respondent's base of operations 13 By being dropped to 44th place, Bedford was at this time put on the bottom of the seniority list. However, other drivers were thereafter hired Thus, although retaining the number 44 position, he did not thereafter continue to remain at the bottom of the list 11 Respondent's contention that Bedford willfully refused upstate runs during the back- pay period is considered hereinafter 15 Mileage in itself is not a factor in the instant case, for the drivers were paid solely on an hourly basis It is undisputed that drivers on the downstate run (to New York City) were paid for 8 hours work, although normally these runs were of somewhat less than 8 hours' duration. The upstate runs, according to Bedford 's unrefuted testimony, were from 8 to 14 hours ' duration. 1386 DECISIONS OF NATIONAL LABOR RELATIONS BOARD under the circumstances appears to be both reasonable and objective. Before setting forth the formula, the question might be asked as to why the General Counsel did not adopt the simple procedure of computing the earnings of Bedford's successor to his 19th standing on the seniority list and use this as a basis for determining the amount due Bedford for the backpay period. The answer, according to the un- challenged testimony of the compliance officer, is that the investigation revealed the {earnings of Bedford's successor during the backpay period to be almost 50 percent below the earnings which Bedford made when he held that position. The reason for such disparity in earnings, according to the compliance officer, was accounted for 'by the driver's own personal preference for certain types of runs. It was therefore apparent that while Bedford took advantage of his seniority to select the longer up- state runs, his successor to position 19 chose the shorter downstate runs. The formula employed by the compliance officer to determine Bedford's backpay, which formula I find to be reasonable and appropriate, may be basically stated as follows: First, determine the ratio of Bedford's earnings for a representative pre- backpay period with those of representative fellow employees during the same period. Secondly, having established such ratio, project the resultant relationship into the backpay period. For the prebackpay period the compliance officer used the four quarterly periods just prior to the time of Bedford's reduction in seniority. As to the representative employees, the compliance officer took the five employees who preceded Bedford on the seniority list prior to his reduction in seniority, i.e., the employees who then held positions 14 through 18 on the seniority list. In explaining his reasons for selecting as representative employees those who preceded Bedford in seniority, rather than those who followed him, the compliance officer testified: Well, the reason for selecting the people who preceded Bedford is this. The Trial Examiner's report in the unfair labor practice indicated that seniority was a factor in the selection of runs and therefore in the amounts of wages earned by the employees and our investigation ... led us to the same conclusion. It follows from that that all of the people ahead of Bedford, higher than Bedford on the seniority roster had a prior opportunity by virtue of their seniority position to express their preference for various runs available and that he could express a preference as number 19 only after the first 18 had been satisfied. The demotion of Bedford . . . from position number 19 to position number 45 or in any lesser position would in no way affect the privileges and opportunities of the first 18 men on the seniority roster. However, the removal of Bedford from position number 19 would throw open to bidding on requests by any or all of the employees who had lesser seniority than he. But I would like to point out that no claim . . . is being made that Bedford would have enjoyed the earnings of people who are senior to him on the seniority roster. We're not claiming in this backpay specification that he is entitled to what number 16 or 17 made or that he is entitled to the average that these people ahead of him would have made. All that we . . . because you must follow through what we did, selecting these people and determining their average earn- ings in the pre-discrimination period was only the first step in the process.'° The various steps involved in the application of the formula employed in computing Bedford's backpay, including the deduction of Bedford's interim earnings, are self- ,explanatory and are set forth in the backpay specification as follows: 17 1. (a) Bedford was ranked No 19 on Respondent's seniority roster prior to Respondent's discrimination against him. (b) Bedford's position in the seniority roster was reduced on June 22, 1958. (c) Bedford's employment was terminated on or about May 46, 1959. (d) Bedford's backpay period is from June 22, 1958, to May 16, 1959, inclusive.18 2. (a) An appropriate measure of the gross backpay which Bedford would have earned, absent Respondent's discrimination, may be determined in the following manner: (1) Establish the ratio between Bedford's earnings during the quarterly periods in the year immediately preceding the discrimination (the third quarter of 1957 through 'a Emphasis supplied. 17 The schedules showing the computations, as referred to in the specification and as reproduced above, are attached as Appendixes B-1, B-2, B-3, and C to this report. 18 In view of the fact that between June 22 and 28, 1958, Bedford worked only 1 day and earned only $18.96, the termination of the representative period and the beginning of the backpay period have been made to coincide with the first workweek of the third calendar quarter. MARCUS TRUCKING COMPANY, INC. 1387 the second quarter of 1958 , inclusive), herein called the representative period, and the average quarterly earnings during the representative period of those driver- employees of Respondent immediately preceding Bedford on the seniority roster who performed similar work under the same terms and conditions of employment as Bedford, herein called the representative employees. (2) Determine the average earnings of the representative employees during the backpay period. (3) Multiply the average earnings of the representative employees during each calendar quarter or fraction thereof of the backpay period by the ratio (computed in subparagraph (1) above) for the corresponding calendar quarter of the representa- tive period. (b) From July 1, 1957, through May 16, ,1959, the following were employed -as drivers by Respondent, and are the representative employees referred to above in paragraph numbered 2(a) above. Seniority No.: 14------------------------------------------------- Rockwell, R. 15------------------------------------------------- Crotty, L. 16------------------------------------------------- Kruger, L. 17------------------------------------------------- O'Brien, M. 18------------------------------------------------- Gordon, H. (c) Appendix B, lines (b) through (f), sets forth the earnings, inclusive of over- time, by quarter of the representative employees during the representative period. (d) Appendix B, line (g), sets forth the aggregate quarterly earnings of the rep- resentative employees. (e) Appendix B, line (h), sets forth the average quarterly wages for the rep- resentative employees during the representative period derived by dividing their aggregate quarterly earnings by 5. (f) Appendix B, line ( i), sets forth Bedford 's quarterly earnings during the rep- resentative period, inclusive of overtime. (g) Appendix B, line (j), sets forth the ratio of Bedford's earnings by quarters during the representative period to the average wages of representative employees, during the representative period, derived by dividing Bedford's quarterly earnings by the average quarterly earnings of the representative employees. (h) Appendix B, lines (1) through (p), sets forth the earnings by quarter of the representative employees during the backpay period. (i) Appendix B, line (q), sets forth the aggregate quarterly earnings of the rep- resentative employees during the backpay period. (j) Appendix B, line (r), sets forth the average quarterly wages for the representa- tive employees during the backpay period. (k) Appendix B, line (s), sets forth the average overtime compensation due to the representative employees in accordance with the computation appearing on Appendix B-2. (1) Appendix B, line (u), sets forth the gross backpay due to Bedford, on a quarterly basis, derived by multiplying the average total compensation, on a quarterly basis, of representative employees in the backpay period, line (t), by the ratio which appears in line (j) for the corresponding quarter of the representative period. 3. (a) Interim earnings consist of (1) the wages actually paid to Bedford during the backpay period when he was employed by the Respondent as a driver in a lower, discriminatory seniority ranking, plus (2) the amount of overtime compensation found to be due to Bedford based on actual hours of work during the period of his discriminatory employment by Respondent, as computed in Appendix C. (b) Net backpay is the difference between gross backpay and interim earnings, computed on a quarterly basis. 4. Appendix B-3 sets forth on a quarterly basis Bedford's gross backpay, interim earnings, and net backpay. The Respondent has not controverted the foregoing computations, which are hereby adopted by the Trial Examiner, nor has it offered any alternative formula as a means of computing Bedford's backpay, although specifically required to do so by Section 102.54 of the Board's Rules and Regulations, Series 8. Respondent asserts that it is liable for Bedford's backpay only for a 2-week period following Bedford's return from a vacation on June 21, 1958,19 during which period it concedes not having given him any work assignment. Respondent's disavowal for any further liability seems predicated upon its apparent contention that any fur- ther loss of backpay by Bedford during the baekpay period was willfully incurred. Thus, Respondent states in its brief as follows: "'See the Board 's decision herein, 120 NLRB 1080, 1104. 1388 DECISIONS OF NATIONAL LABOR RELATIONS BOARD Now, after Bedford was reduced in seniority, then he told the dispatcher, Bollen- back, that he wanted city runs and that he was accommodated. The dispatcher testified that Bedford specifically requested that he be given city runs and made a notation thereof on the payroll sheet and that by reason of Bedford's request, that is the type and kind of run which was given to him. There is no evidence that he was ever refused upstate runs; in fact, Bedford says he never thereafter requested upstate runs In the circumstances, how can it possibly be claimed that he was deprived of the opportunity for greater earnings. It is true that those who run upstate earned more money, but Bedford at his own request asked for work which could not have possibly given him greater earnings. At this point some further background is necessary. Thus, the Intermediate Report, as adopted by the Board in this case, shows that the first act indicative of discrimination against Bedford occurred on May 30, 1958. The following is quoted therefrom: Prior to May 30, 1958, seniority ranking among the Respondent's drivers was based upon date to hire, and a seniority list was posted periodically. Kenneth Bedford was . . . a member of Local 770 . . . and stood 19th on the seniority list on May 30, 1958. He was off duty that day but, as was his custom, telephoned to Marcus at about noon to receive his assignment for the next day. Marcus assigned him to a run he did not want. Bedford protested that, as steward for the Respondent's drivers, he was "entitled to the longest run in the barn." However, he was not assigned the longest run. Bedford was on vacation from June 15 to June 21. . On June 22, 1958, Bedford was dropped from 19th place on the seniority list to 44th. Bedford testified that between May 30 and June 15, 1958, he was assigned to "short" upstate runs. In contrast to the longer upstate runs which had been customarily assigned to him prior to May 30, 1958, these "short" upstate runs were of only 8 or 9 hours' duration. Bedford conceded that he had a conversation with William Bollenback, the dispatcher, in much the same manner as indicated in the heretofore quoted portion of Respondent's brief. His testimony concerning this conversation, which apparently occurred just after June 15, 1958, is best set forth in his own words, as follows: Q. You stated that during this period you had a conversation with the dis- patcher in which you wanted to complain to him. Is that correct? A. That's correct. Q. What did you say and what did he say? A. I went in. I was kind of mad. I said to him, "If I can't get any longer upstate runs than I'm getting (because I only was getting eight or nine hour runs ) I might as well run the city because I can't make any more money. Q. What did he say? A. "You'll take what I give you." Q. You said you wouldn't lose any money by taking city runs rather than taking short upstate runs. What is that? A. Because you work less hours and get paid for eight. Q. On the city runs? A. Yes. Bollenback, called by the Respondent, testified that he did not recall whether at the time of this conversation he had assigned Bedford to a regular upstate run or a "short" upstate run. I credit Bedford's uncontradicted testimony that at the time of this conversation, and for the several weeks prior thereto, he had been assigned to the short upstate runs. Indeed, in this connection it is interesting to note that Bollenback testified, "After he had been put down on the seniority list, it was a question that his seniority only entitled him in most cases for runs from Monroe to New York." In view of the foregoing, I find that Bedford's conduct in expressing a preference for the New York City run (made several weeks subsequent to the beginning of the backpay period) does not establish any willful loss of earnings on his behalf. According to the unrefuted evidence, his earnings on the New York runs were sub- stantially the same as they would have been had he continued to accept the short upstate runs. The Respondent has offered no evidence to the contrary. Accordingly, I conclude that Respondent is obligated to pay Bedford $3,873.57, the amount shown on the backpay specification , to make him whole for loss of earnings. MARCUS TRUCKING COMPANY, INC. 1389 Conclusions and Recommendations Upon the foregoing findings , the Trial Examiner finds and concludes that the employees listed hereunder are entitled to payment by the Respondent of the sums listed opposite their names. 1. Reimbursement of dues 1958 1959 Total June July Aug . Sept. Oct . Nov. Dec . Jan. Feb L. Crotty ---------- $4 $4 $4 $4 $4 $4 $4 -------- -------- $28 P. Geysen------ ---- 4 4 4 4 4 4 4 -------- -------- 28 H Gordon- -------- 4 4 4 -------- -------- -------- -------- -------- -------- 12 L. Kruger---------- 4 4 4 -------- -------- -------- -------- -------- -------- 12 J. Ochs ----- -------- 4 4 4 4 4 4 4 $4 $4 36 R. Steenrod-------- 4 -------- -------- -------- -------- -------- -------- ------- -------- 4 Total--------- -------- -------- -------- -------- -------- -------- ------- -------- -------- 120 2. Reimbursement of overtime backpay 20 Miesner, T______________ $1, 757.99 Brewer, W______________ $1,070.95 Ellis, D_________________ 31.94 Perrone, J______________ 261.30 Somerville, W___________ 72. 10 Calhoun, L_____________ 107.66 Bulson, H_______________ 117.92 Marsh, T_______________ 525.59 Washburn, A____________ 1,646.85 Ochs, J_________________ 386.14 Tencza, J_______________ 121.16 McNaughton, P__________ 294.78 Klinegardner, D_________ 1, 648.94 Kraus________ __________ 316.63 Geysen, P_______________ 305.65 Kelly, L________________ 1,223.58 Vandunk, T_____________ 2, 360. 10 Gallagher, W____________ 11.56 Austin, G_______________ 1, 378.58 Ferrari, A______________ 756.72 Lane, L________________ 1,150.08 Bell, Roger------------- 567.29 Lane, C________________ 1,587.51 Olsen, C________________ 661.44 Muller, B_______________ 2, 089.67 Cure, H________________ 861.33 Bliss, C_________________ 2, 059.01 Bargisen, L_____________ 894.02 Rockwell, R_____________ 2,003.09 Finch ------------------- 485.82 Crotty, L_______________ 534. 15 Root___________________ 217.51 Kruger, L_______________ 90.48 Santora, F______________ 143.35 O'Brien, M______________ 2,065.15 Hall___________________ 428.74 Gordon, H______________ 223. 15 Grady, A_______________ 172.08 Rhodes, J_______________ 26.91 Yantz__________________ 200.43 Gorsch, M______________ 120.72 Padgett, D______________ 7. 44 Jurgensen, H____________ 2,135.47 Kelly, D________________ 18. 79 Scherf, H_______________ 1, 708.03 Steenrod,R-------------- 14.88 Washburn , B____________ 1,818.20 Cunningham------------- 24. 10 Pirger, S________________ 129.97 Puetz------------------ 242.75 Rose, A________________ 1, 554.84 Cowton----------- ----- 424. 78 Hansen, S_______________ 1,815.27 Hellyer_________________ 16.56 Thompson, W___________ 1, 552.51 De Freece_______________ 7.86 Polke, R________________ 1,578.51 Zamparelli______________ 208.13 Hartwick, L_____________ 568.05 Fisher__________________ 1.20 Knapp, F_______________ 951.07 Bargisen , C-------- _____ 133.28 Kowalczik, A____________ 9.63 Conklin, D______________ 585.70 Keesler, G______________ 942.28 Perrone, R______________ 77. 51 McGill, C_______________ 1, 601.89 Paine ------------------ 108.78 Wood, J________________ 1,328.10 Wallace________________ 63. 01 Winter, J_______________ 264. 75 Nelson_________________ 77. 62 Porter, J________________ 508.29 3. Reimbursement to Bedford Kenneth Bedford_________ $3, 873.57 It is recommended that the Board adopt the foregoing findings and conclusions. 2O The backpay specification claims that Kenneth Bedford is entitled to reimbursement of overtime backpay in the amount of $45. 99. This claim is being disallowed , for it ap- pears that overtime pay due Bedford was taken into consideration in the formula utilized ror determining the gross amount of backpay due him. 1390 DECISIONS OF NATIONAL LABOR RELATIONS BOARD APPENDIX A RECORD OF OVERTIME HOURS WORKED AND OVERTIME WAGES DUE UNDER LOCAL 770 CONTRACT (Name) MIESNER, T., #1 (Seniority-6/1/58) (a) Periods (weeks ending) 6/7/58-6/28/58 ($2.47 per hr )----------------------------- 7/5/58-7/31/58 ($2 47 per hr)----------------------------- 8/1/58-9/27/58 ($2 62 per hour)--------------------------- 10/4/58-12/27/58 ($2 62 per hour)------------------------- 1/3/59-3/28/59 ($2.62 per hour)--------------------------- 4/4/59-6/27/59 ($2.62 per hour) --------------------------- 7/4/59-7/31/59 ($2.62 per hour)--------------------------- 8/1/59-9/26/59 ($2 77 per hour)--------------------------- 10/3/59-12/26/59 ($2 77 per hour) ------------------------- 1/2/60-3/26/60 ($2.77 per hour)--------------------------- 4/2/60-6/25/60 ($2.77 per hour)--------------------------- 7/2/60-7/31/60 ($2 77 per hour)--------------------------- Total-------------------------------------------- (b) OT hrs. In excess of 10 per day 51 07 53 67 54 33 148 54 150 32 156 92 53 42 188 17 122 34 114 75 232 42 93 58 (e) Net OT wages due $54 03 51 97 60 57 163 12 183 36 196.04 60 12 246 39 160 52 156 62 309 82 115 43 1,757.99- (c) OT wages due 770 contract $63 39 66 55 71 17 194 59 196 92 205 56 69 98 259 67 168 83 158 35 320 74 129 14 (d) OT wages paid $9.36 14 58 10 60 31 47 13 56 9 52 9 86 13 28 8 31 1 73 10 92 13 71 APPENDIX B-1 COMPUTATION OF GROSS BACKPAY DUE TO KENNETH BEDFORD Line Representative employees. R. Rockwell -------------------------------- L. Crotty---------------------------------- L. Kruger------ ----------------------------- M. O'Brien --------------------------------- H. Gordon-------------- -------------------- Total------------------------------------- Average----------------------------------- K. Bedford ---------------------------------- (i)-(h), percent --------------------------------- Representative period by quarters 1957-3 $2,061 40 1,441 32 1,323 97 1,992.56 1,433 53 8,252.78 1, 650 55 1,923 86 117 Backpay period by quarters (q)-- (t)-- (u)-- Representative employees: R. Rockwell-------------------------------- L. Crotty----------------------------------- L. Kruger----------------------------------- M. O'Brien--------------------------------- H. Gordon---------------------------------- Total----------------------------------- Average----------------------------------- Average overtime compensation due to representative employees. Total (r)=(s)---------------------------- Gross backpay due to Bedford MX(j) ---------- 1958-3 $2,152 87 1, 369 94 1,446 99 2,173 10 1,316 37 8,459.27 1,691 85 76 79 1,768 64 2,069.30 1957-4 $2,126.74 1,355.83 1,176 40 2, 236.19 1,329 74 8,224 90 1,644 08 2, 262 04 138 1958-4 $1,957 11 1,467 39 1,380 48 1,943 40 1, 418 74 8,167 12 1,633 42 89 44 1,722.86 2,377.55 1958-1 $2,249 04 1,397.61 1,387 90 1,678 64 1,407 34 8,120 53 1,624 10 2,162 48 133 1959-1 $2,190 24 1,829 44 1,422 83 2, 204 22 1, 465.56 9,11229 1, 822 45 96 75 1,919 20 2, 552 53 1958-2 $1,880 70 1,503 48 1,332 05 1,692 57 1,132 39 7,541 19 1,508 23 1,702 87 112 1959-2 (to 5/16/59) $1,054 50 944 04 755.68 797 69 1,11600 4, 687 91 937 58 56 86 994 44 1,113 77 MARCUS TRUCKING COMPANY, INC. 1391_ APPENDIX B-2 COMPUTATION OF AVERAGE OVERTIME COMPENSATION DUE TO REPRESENTATIVE EMPLOYEES DURING KENNETH BEDFORD'S BACKPAY PERIOD Backpay period by quarters Representative employees 1958-3 1958-4 1959-1 1959-2 (to 5/16/59) R. Rockwell------------------------------------------ $147.55 $223 66 $212.54 $111.12: L. Crotty---------------------------------------------- 32 72 16 61 65.01 31 89 L. Kruger---------------------------------------------- 23 49 ------------ ------------ 8 84 M. O'Brien-------------------------------------------- 161 74 198 18 200 90 118 42, H. Gordon--------------------------------------------- 18.43 8.74 2 29 14 03. Total------------------------------------------- 383 93 447.19 483 74 284 30) Average----------------------------------------- 76 79 89.44 96 75 56 86. APPENDIX B-3 COMPUTATION OF NET BACKPAY DUE TO KENNETH BEDFORD 1958-3 1958-4 1959-1 1959-2 (to 5/16/59), (a) -1 Gross backpay--------------------------------- $2, 069 30 $2,377 55 $2, 552.53 $1,113 7T (b) -1 Actual earnings --------------------------------- 1,123 26 1,413 33 1, 275.22 689 87 -2 Overtime wages_________________________________ 0.00 26 42 0.00 10 48 -3 Interim earnings ___-______ _______________ 1,123 26 1,439.75 1, 275.22 700 35 (c) Net backpay------------------------------ 946 04 937 80 1, 277.31 413.42, Total------------------------------------- $3,542.57 APPENDIX C RECORD OF OVERTIME HOURS WORKED AND OVERTIME WAGES DUE UNDER LOCAL. 770 CONTRACT (Name) BEDFORD, K ., #45 (Seniority-6/1/58) (a) (b) (c) (d) (e) Periods OT hrs. In OT wages OT wages Net OT (weeks ending) excess of 10 per day due 770 contract paid wages due 0/7/58-6/28/58 ($2 47 per hr.)_____________________________ 7 33 $9.09 $9 09. 7/5/58-7/31/58 ($2 47 per hr.)_____________________________ 8/1/58-9/27/58 ($2 62 per hour)___________________________ ------------ ------------ 10/4/58-12/27/58 ($2.62 per hour)_________________________ 20 17 26.42 ------------ 26 42' 1/3/59-3/28/59 ($2 62 per hour)___________________________ --------- - ------------ ------------ 4/4/59-6/27/59 ($2 62 per hour)___________________________ 8.00 -- ------------ 10 48 7/4/59-7/31/59 ($2 62 per hour)___________________________ ------------ ------------ ------------ ------------ 8/1/59-9/26/59 ($2.77 per hour)___________________________ ------------ ------------ ------------ 10/3/59-12/26/59 ($2 77 per hour)_________________________ ------------ 1/2/60-3/26/60 ($2 77 per hour)___________________________ ------------ ------------ ------------ 4/2/60-6/25/60 ($2 77 per hour)___________________________ ------------ ------------ ----------- 7/2/60-7/31/60 ($2 77 per hour)___________________________ ------------ ------------ ------------ ------------- Total------------------------------------------ 1------------1------------1------------1 45 99, Copy with citationCopy as parenthetical citation