Marr Knitting, Inc.Download PDFNational Labor Relations Board - Board DecisionsJun 20, 195090 N.L.R.B. 479 (N.L.R.B. 1950) Copy Citation In the Matter of MARR KNITTING, INC. and UNITED FARM EQUIPMENT AND METAL WORKERS OF AMERICA, C. I. O. Case No. 18-CA-79.-Decided June 20, 1950 DECISION AND ORDER On November 25, 1949, Trial Examiner Hamilton Gardner 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 in the copy of the Intermediate Report attached hereto. Thereafter, the General Counsel and the Respondent filed exceptions to the Intermediate Report and supporting briefs. The Board 1 has reviewed the rulings made by the Trial Examiner, and finds that no prejudicial error was committed. The rulings are hereby affirmed. The Board has considered the Intermediate Report, the exceptions and briefs, and the entire record in the case, and hereby adopts the Trial Examiner's findings, conclusions, and rec- ommendations, except insofar as they are inconsistent with the find- ings, conclusions, and order set forth below. 1. The Trial Examiner found, and we agree, that the Respondent interfered with, restrained, and coerced its employees, in violation of Section 8 (a) (1) of the Act. In so finding, we rely upon- the independent 8 (a) (1) violations found by the Trial Examiner.2 In addition, we find that sometime in the fall of 1948, while the Union was attempting to organize the plant, Urban Marr questioned em- ployee Pearl Clements as to whether she had attended a union meeting and what had happened there.3 As we have previously held, such I Pursuant to the provisions of Section 3 (b) of the National Labor Relations Act, the Board has delegated its powers in connection with this case to a three -member panel [Chairman Herzog and Members Reynolds and Styles.]. IAs indicated below, we disagree with the Trial Examiner's 8 (a) (1 ) finding insofar as it is based on the Respondent ' s alleged refusal to bargain with the Union. 3 The Trial Examiner makes no reference to these questions in discussing Marr's conver- sation with Clements . However , Clements' testimony regarding them was uncontradicted, and is not inconsistent with her further testimony noted in the Intermediate Report and credited by the Trial Examiner , that Marr did not ask who had attended union meetings and whether she had signed a union card. 90 NLRB No. 63. 479 480 DECISIONS OF NATIONAL LABOR RELATIONS BOARD inquiries by an employer about union matters have an inherently restraining effect on employees, and are therefore per se violative of Section 8 (a) (1) .1 2. On the record as a whole, we agree with the Trial Examiner that the Respondent did not violate Section 8 (a) (1) by threats to close its plant. As indicated in the Intermediate Report, on or about December 5, 1948, Plant Superintendent Doudna told employee Berdine Lockwood that the plant might have to shut down and the employees might lose their overtime if the plant was unionized. These remarks were clearly coercive, and ordinarily we should find them violative of the Act. About a week later, however, Urban Marr, the Respondent's presi- dent, called Lockwood and another employee, Doris Brunner, into the office and told them that rumors that the Respondent might close its plant were false 5 At about the same time, he posted on the bulletin board a notice to the employees stating that, contrary to any rumors they might have heard, the mill- would "continue operation indefi- nitely with no change in management, personal [sic] or policies." We believe, as the Trial Examiner apparently did, that this action by Marr was sufficient to counteract the effect of Doudna's coercive statements and to assure the employees that they were free to engage iii union activities without fear of reprisal. Accordingly, we do not find that Doudna's remarks to Lockwood constituted an unfair labor practice." 3. The Trial Examiner found that on and after November 24, 1948, the Respondent refused to bargain collectively with the Union, in vio- lation of Section 8 (a) (1) and (5) of the Act. We do not agree. The relevant facts are as follows : On November 15, 1948, Lloyd James, a union representative, asked Marr to recogxlize the Union, Marr refused to do so without all election. On November 24, the Union repeated its request by letter, stating that it represented a ma- jority of the employees in the proposed unit, but offering, if the Re- spondent questioned its representative status, to prove its majority "either by a cross-check of union designation cards against current payroll or by consent election to be conducted by [the Board], or any other impartial agency." A.few days later, the Union filed with the ' Jacksonville Motors, Inc., and Redmond Company, Inc., 88.NLRB 181 ; Empire Pencil Company, Division of Hassenfeld Bros., Inc., 86 NLRB 1187; Standard-Coosa-Thatcher Company, 85 NLRB 1358. 3 It is not entirely clear just when this incident occurred. The record indicates, however, that it was about December 12. 6 The Trial Examiner relied, in part, upon Doudna's remarks to Lockwood in finding that the Respondent made coercive statements to its employees. To this extent, his finding on this point is reversed. DIARR K ITTING, INC. 481 Board a petition for investigation and certification of representatives.' The Respondent made no reply to the Union's letter; however, on December 2, 1948, it entered into a consent election agreement with the Union, providing for all election to be held under the supervision of the Board on a date to be determined by the Regional Director. Thereafter, the election was scheduled for December 17; election notices, furnished by the Regional Director, were duly posted by the Respondent; and the Respondent furnished to the Regional Director a copy of its November 26 payroll to be used in determining eligibility to vote.8 On December 14., however, the Union withdrew its consent to the election and filed the original charge in the present proceeding ; later, with the consent of the Regional Director, it withdrew its petition. Upon these facts and the record as a whole, we are not convinced that the Respondent acted in bad faith in refusing to recognize. the Union without an election. Admittedly, it had heard, before receiv- ing the Union's request for recognition, that a majority of the em- ployees had voted, in an informal poll, to join the CIO rather than to form an independent plant organization. However, the results of such a. poll are not conclusive evidence of a union's representative status; and in this case the Union itself suggested, both on November 15, when it first asked for recognition, and on November 24, when it repeated its request in writing, that an election might be held to estab- lish its majority. The Respondent, on the first occasion, expressed its unwillingness to grant recognition without an election.° On the see and occasion, it made no reply. However, when the Union, only 2 days later, filed a petition with the Board, it promptly agreed to a consent election. We find nothing in this conduct to persuade us that the Respondent's preference for an election was motivated by a rejec- tion of the collective bargaining principle or by a desire to gain time within which to undermine the Union, rather than by a bona fide doubt of the Union's majority.'o Furthermore, although the Respondent engaged in certain unfair labor practices, as found above, we do not believe this unlawful con- duct was sufficient, under the particular circumstances of this case, to " The petition appears to have been filed on or about November 26, the date on which the Respondent received the Union's letter. s The Intermediate Report incorrectly states that the payroll was furnished by the Union. ° The complaint did not allege , nor did the Trial Examiner find , that this conduct, which took place before November 24, 1948, constituted a refusal to bargain. 10 Cf. Arteraft Hosiery Company, 78 NLRB 333, and cases therein cited ; Joy Silk Mills, Inc., 85 NLRB 1263. 903847-51-vol. 90-32 482 DECISIONS OF NATIONAL LABOR RELATIONS BOARD establish that the Respondent was acting in bad faith in seeking an election; 11 nor are we persuaded that it would have made a free elec- tion impossible. Not only does the record fail to show that the Respondent continued its unlawful conduct after receiving the Union's formal request for recognition, but it shows that the management took affirmative and authoritative action to contradict rumors that the plant might close if it was unionized.12 We therefore find, contrary to the Trial Examiner, that the Re- spondent did not refuse to bargain collectively with the Union, within the meaning of Section 8 (a) (5) 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 Respondent, Marr Knitting, Inc., Osage, Iowa, and its officers, agents, successors, and assigns, shall: 1. Cease and desist from : (a) Interrogating its employees with respect to unions and union activities; (b) Instigating and supporting the formation of a plant union; (c) In any other manner interfering with, restraining, or coercing its employees in the exercise of their right to self-organization, to form, join, or assist labor organizations, to bargain collectively through rep- resentatives of their own choosing, and to engage in other concerted activities for the purpose of collective bargaining or other mutual aid or protection, or to refrain from any or all of such activities, except to the extent that such right may be affected by an agreement requiring membership in a labor organization as a condition of employment, as authorized in Section 8 (a) (3) of the Act. 2. Take the following affirmative action, which the Board finds will effectuate the policies of the Act : (a) Post at its plant at Osage, Iowa, copies of the notice attached hereto, marked Appendix A 13 Copies of said notice, to be furnished by the Regional Director for the Eighteenth Region, shall, after being duly signed by the Respondent's representative, be posted by the Re- spondent 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 customarily posted. Reason- 11 Clem D . Johnston, d/b/a Roanoke Public Warehouse , 72 NLRB 1281. 12 In these respects , the case is distinguishable from Everett Van Kleeck & Company, Inc., 88 NLRB 785. n In the event this Order is enforced by decree of a United States Court of Appeals, there shall be inserted , before the words, "A Decision and Order ," the words , "A Decree of the United States Court of Appeals enforcing." MARR KNITTING, INC. 483 able steps shall be taken by the Respondent to insure that said notices are not altered , defaced, or covered by any other material; (b) Notify the Regional Director for the Eighteenth Region in writing, within ten (10) days from the date of this Order, what steps the Respondent has taken to comply herewith. AND IT IS FURTHER ORDERED that the complaint be, and it hereby is, dismissed insofar as it alleged that the Respondent engaged in unfair labor practices within the meaning of Section 8 (a) (5) of the Act. MEMBER STYLES , dissenting in part : I agree with the majority decision in holding that by interrogating employee Clements and by the other conduct set forth in the Inter- mediate Report, the Respondent violated Section 8 (a) (1) of the Act. I part from my colleagues, however, in their conclusion that the Respondent did not violate Section 8 (a) (1) by threats to close its plant, and in their reversal of the Trial Examiner and dismissal of that portion of the complaint which alleges a refusal to bargain in violation of Section 8 (a) (5). With respect to the threats to close the plant, the majority accepts the uncontroverted testimony of employee Lockwood that, on or about December 5, Plant Superintendent Doudna told her that the plant might have to shut down and the employees might lose their overtime if the plant was unionized. My colleagues conclude, however, that the subsequent conduct of the Respondent's president, Marr, about a week later, in advising Lockwood and another employee, Brunner, that the rumors about the plant closing were false,. and in posting a notice to that effect, was sufficient to counteract the coercive effect of Doudna's statements. I cannot agree. Marr, in his conversation with Lock- wood and Brunner, merely explained that various commitments he had made in the community prevented his moving or closing the plant and that the rumors were therefore false. Neither Marr's statements nor the subsequent notice contain any general disavowal of the par- tisan conduct by Doudna and other supervisors, nor do they provide the slightest assurance that such conduct would be discontinued in the future or that the employees were free to engage in union activi- ties. In these circumstances I see no justification for regarding Marr's action as sufficient to relieve the Respondent of responsibility for Doudna's remarks, which we all agree were clearly coercive. I find equally untenable the conclusion that the Respondent's re- fusal to deal with the Union until its majority was proved in a Board election was not in violation of Section 8 (a) (5) of the Act. In the circumstances of this case I would find that the Respondent's failure to recognize the Union was not motivated by a good faith doubt of 484 DECISIONS OF NATIONAL LABOR RELATIONS BOARD the Union's majority, but rather by, a rejection of the collective bar- gaining principle; that the Respondent's willingness to enter into a consent election was no more than a strategem to gain time in which -to undermine the Union; and that the Respondent's conduct before and after the consent election agreement made a free election impos- sible. Decisions of this Board undoubtedly establish that an eiiiployer who has been asked to recognize a union may, with impunity, ques- tion the union's majority and insist that the union's majority claim be substantiated in a Board-conducted election, provided that in so doing the employer is acting in good faith. And it is clear, of course, that the determination of whether an employer entertains a good faith doubt of the union's majority or is merely seeking to avoid collective bargaining depends upon the particular facts in each case. I have no quarrel with this principle, so long as it is applied in a realistic manner. In particular, I would at least view with some suspicion an employer's insistence upon an election where the record establishes that he had facts at his disposal on the basis of which he could reason- ably have concluded that the union in fact represents a majority of the employees. And I would regard the .fact that an employer has com- mitted unfair labor practices designed to cause disaffection from the union as the strongest possible evidence that in questioning the union's majority the employer has not acted in good faith. I join wholeheart- edly in what was said by the majority in a very recent decision of this Board: 14 We are not ready to require an election as a matter of "right" " ____________________ where to do so would permit an employer to benefit by his unlawful efforts to destroy the union's majority. It is because I believe my colleagues have given insufficient considera- tion to these factors in applying the general rule that I feel constrained to dissent from their dismissal of this aspect of the complaint. The record before us establishes that almost immediately after the Union began its organizing campaign in the fall of 1948 the Respond- ent embarked upon a campaign of antiunion conduct which included not only general statements urging employees that they did not need the Union and that they could get the same benefits from a company union but also two instances of interrogating employees about the Union and its meetings which we have found specifically violative of Section 8 (a) (1). About 5 days before the Union's initial request for recognition, the Respondent called a meeting of its employees at which these employees voted overwhelmingly in favor of joining the Union ' Everett Van Kleeck & Company, Inc., supra, footnote 12. See also The Valley Broad- casting Company, 81 NLRB 1144. MARR KNITTING, INC. 485 as against forming an independent labor organization. It is signifi- cant that, although no representatives of the Respondent were present when this vote-was taken, the record established that the results of this ballot came to the attention of the Respondent's president and of its superintendent. The Union's initial request for recognition on November 15 was refused in the absence of an election. Its second request of November 24, in which the Union offered to prove its ma- jority by cross-check or election, was unanswered. It is true that on December 2 the Respondent entered into a consent election agreement; but no less than 3 days after this agreement was concluded, the Re- spondent threatened its employees with closing the plant and depriv- ing employees of overtime under circumstances which, as noted above, I would find violated Section 8 (a) (1). On these facts I see no basis for the conclusion my colleagues have reached that the Respondent's doubt of the majority was made in good faith. The Respondent raised this issue after it had already been apprised of facts (the ballot on the issue of an independent union versus the instant Union) on the basis of which it had reasonable grounds for concluding that the Union indeed represented a majority. It raised the issue after it had already interfered with, restrained, and coerced its employees in violation of the Act; and in my view, it con- tinued such violation even after it had entered into the consent election agreement. On strikingly similar facts a majority of this Board recently observed 15 that such unfair labor practices : ... stamp the Respondent's willingness to enter into a consent election agreement and the agreement itself as no more than a self-serving gesture, indulged in by the Respondent at a time when it had already created a coercive atmosphere and made a free choice of representatives impossible. For my colleagues, the Board's decision in the Roanoke case 1e is controlling. Whether or not I would have found a refusal to bargain on the facts there present, I regard that case as clearly distinguishable from the one before us. Among other things there is no indication in that case that the employer had any knowledge of the union's ma- jority before the request to bargain was made. Moreover, the viola- tions of Section 8 (a) (1) which the Board found failed to reflect bad faith on the employer's part in demanding proof of the union's 66 Everett Van Kleeck, supra, footnote 12. Even if I were to regard the action taken by Marr as sufficient to relieve the Respondent of responsibility for Doudna 's threats that the plant would be closed , I could not regard it as a general disavowal of the prior unfair labor practices or an assurance that the employees were free to engage in union activities. As such, I cannot attack the significance to it that my colleagues do in distinguishing this case from the Van Kleeck decision. 16 Supra, footnote 11. 486 DECISIONS OF NATIONAL LABOR RELATIONS BOARD majority, were confined to two "anti-union remarks," both of which occurred prior to the time at which the employer. raised the majority issue. On the basis of all of the foregoing I would find, in agreement with the Trial Examiner, that the Respondent has refused to bargain in violation of Section 8 (a) (5) of the Act. APPENDIX A NOTICE TO ALL EMPLOYEES Pursuant to a Decision and Order 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 interrogate our employees with respect to the union or union activities. WE WILL NOT instigate or support the formation of a plant union. WE WILL NOT in any other manner interfere with, restrain, or coerce our employees in the exercise of their right to self-organ- ization, to form, join, or assist labor organizations, to bargain collectively through representatives of their own choosing, and to engage in other concerted activities for the purpose of collective bargaining or other mutual aid of protection, or to refrain from any or all of such activities, except to the extent that such right may be affected by an agreement requiring membership in a labor organization as a condition of employment, as authorized in Sec- tion 8 (a) (3) of the Act. MARR KNITTING, INC., Employer. Dated ---------------------- By --------------------------- (Representative ) (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. INTERMEDIATE REPORT Erwin A. Peterson, Esq., Minneapolis, Minn., for the General Counsel. George D. Dann, Esq., Mason City, Iowa, for the Respondent. Mr. Charles W. Robbie, Cedar Rapids, Iowa, for the Union. STATEMENT OF THE CASE This case arose upon a second amended charge filed on May 9, 1949, by United Farm Equipment and Metal Workers of America, C . I. 0., against Marr Knitting , Inc. Upon the basis of such charge, the General Counsel of the Na- tional Labor Relations Board, acting through the Regional Director of the Eigh- MARR KNITTING, INC. 487 teenth Region (Minneapolis, Minnesota), issued a complaint against the named Company on September 13, 1949. This alleged that the Company had engaged in, and was engaging in, unfair labor practices affecting commerce within the meaning of Section 8 (a) (5) and 8 (a) (1) and Section 2 (6) and (7) of the Labor Management Relations Act, (61 Stat. 136). Copies of the complaint and of the charge upon which it was based, together with notice of hearing thereon, were duly served upon the Respondent and the Union.' The complaint alleged in substance that the Respondent engaged in unfair labor practices: (1) On and since November 24, 1948, by refusing to bargain collectively with the Union as the exclusive representative of all the employees in a proper bargaining unit; and (2) on and since November 2, 1948, by inter- fering with, restraining, and coercing its employees through instigating the formation of an unaffiliated plant union, through threats to deprive its employees of overtime and to close its plant, through making unilateral wage increases, through inaugurating a paid holiday plan and other changes in conditions of employment, for the purpose of discouraging membership and activity in the Union. Thereby, it is alleged, the Respondent had deprived its employees of the exercise. of the rights guaranteed in Section 7 of the Act. The answer of the Respondent admitted that the Respondent was engaged in interstate commerce in accordance with the Act ; pleaded lack of knowledge as to the Union being a labor organization within the meaning of the Act; and specifically denied the unfair labor practices set forth in the complaint. Pursuant to notice, a hearing was held in Osage, Iowa, on October 4 and 5, 1949, before Hamilton Gardner, the undersigned Trial Examiner, duly desig- nated by the Chief Trial Examiner. The General Counsel and the Respondent were represented by counsel, and the Union by an authorized representative. Full opportunity was afforded all parties to be heard, to examine and cross- examine witnesses, and to introduce evidence bearing on the issues. At the conclusion of the case in chief of the General Counsel the Respondent made a motion to dismiss paragraphs 6, 7, and 8,of the complaint, alleging violation of Section 8 (a) (5) of the Act. Such motion was taken under advisement by the Trial Examiner . It is now denied. At the conclusion of the hearing the Trial Examiner granted a motion of the General Counsel, to which no objection was entered, to amend the pleadings in minor matters to conform to the proof. Oral argument was made at the ending of the hearing by counsel for the Respondent. The parties were advised of their right to file proposed findings of fact, conclusions of law, and briefs. None has been filed. Upon the entire record in the case and from my observation of the witnesses, I make the following : FINDINGS OF FACT 1. THE BUSINESS OF THE RESPONDENT The answer of the Respondent admitted the allegations of paragraphs 1 and 2 of the complaint with respect to its business. Marr Knitting, Inc., is an Iowa corporation with its office and plant at Osage, Mitchell County, Iowa. It is engaged in the manufacture and distribution of ' References in this Report will be : United Farm Equipment and Metal Workers of America, C. I. 0., as the Union: Marr Knitting, Inc., as the Respondent or the Company ; the General Counsel and his representative at the hearing as the General Counsel; the National Labor Relations Board, as the Board ; the Labor Management Relations Act, as the Act. 488 DECISIONS OF. NATIONAL LABOR RELATIONS BOARD mittens and gloves. During 1948, the Respondent purchased raw materials con- sisting principally of yarn, thread, and various supplies in excess of $100,000 of which approximately 90 percent was transported from points outside the State of Iowa. During the same period sales of its products exceeded $250,000 of which about 80 percent was shipped to customers in States other than Iowa. I find that the Respondent' is engaged in commerce within the meaning of the Act. II. THE LABOR ORGANIZATION INVOLVED It was stipulated in open hearing that United Farm Equipment and Metal Workers of America, C. I. 0., is a labor organization admitting employees of the Respondent to membership. I so find. III. THE UNFAIR LABOR PRACTICES A. The over-all background 2 1. Identity of persons involved It will be helpful to identify the actors participating in the events pertinent to the issues in this case. a. Respondent Urban Marr was the president of Marr Knitting Inc.; Robert (Bob) Doudna acted as plant superintendent; and Agnes Weber was called "floor lady." At one period in 1948, Frank Marr, brother of the president, assisted him in the management of the factory. b. Union For the Union, Charles W. Hobbie was district president for Iowa, Lloyd James and Glenn Marrs, international representatives, and Kenneth E. Parr, an organizer and former steward. 2. The physical plant Early in 1946, the Respondent began the construction of its plant at Osage, Iowa. The employees came from Osage and the surrounding country, numbering 4 at first and increasing to about 40 or 45 at the time of the controversy. The maintenance employees are almost entirely women. The manufacture of mittens and gloves requires 10 specialized departments: Flat knitting, cutting, tipping, shipping, cut-sewing, mating, circular, turning, brushing, and mending. The mill building measures 44 by 107 feet, nearly all of which is in one open room. Sales are by agents operating from their own homes. 3. Union drive The Union's campaign to organize the Respondent's employees started in early November 1948. On November 2, James and Parr held an evening meeting in a local bank building and signed up a number of applicants after making speeches. This was followed by solicitation of employees at their own homes. A second similar gathering occurred on November 9, which in' turn was followed by assemblies at the county court house and at the homes of employees. The record is silent as to any union solicitation at or near the Respondent's plant. 2 Only such facts as are not in dispute in the evidence are included in this brief portrayal of the over -all background of the case. MARK KNITTING, INC. 489 B. The appropriate unit and representation by the anion of a majority therein Following the union campaign in signing up membership applications in the early part of November 1948, it made its first contact with the Respondent in a long-distance telephone. call from Glenn Marrs, international representative. He testified for the General Counsel that about November 15, he reached a Mr. Marr at the plant, whom he believed to be Francis Marr, brother of the president. Marrs stated, among other things, that a majority of the maintenance workers of the plant had signed up with the Union and asked that it be recognized as their bargaining agent. Frank Marr replied that he did not understand what Marrs was talking about and suggested that a union representative come to Osage to confer with his brother. A very short time thereafter Lloyd James, also a union international repre- sentative, appeared at Urban Marr's office. Concerning this meeting, the Gen- eral Counsel presented no direct evidence whatsoever, although his witnesses, Parr and Marrs, referred to it incidentally and a later letter from Hobbie, district president, mentioned it. But Urban Marr, testifying for the Respondent, gave some details. He fixed the date as about November 15. Doudna, his plant superintendent, was also present. Neither James nor Doudna took the witness stand. According to Marr, James stated he had applications for more than .a majority of the employees and asked Marr to accept the Union as their nego- tiating representative, and in case of refusal an election must be held. Marr answered that he would not admit the Union had a majority of the workers and refused to accept its representation without an election, if unionization would mean changes in the mill. James stated he would carry Marr's answer back to union headquarters. On November 24, 1948, Hobbie, for the Union, wrote a letter to the Respondent confirming James' previous oral request for union recognition and offered : ... to prove our majority either by a cross check of union designation cards against current payroll Or by consent election to be conducted by the [NLRB], or any other impartial agency. So far as the record discloses, this letter was not answered by the Respondent. Hobbie testified without contradiction that late in November the Union filed a petition with the Board for. a representation 'election. Accompanying the petition, he forwarded 27 union application cards signed by employees of the Respondent, which were received in evidence. Of these, 8 are undated and the balance show November 2, 3, or 4. With the petition, he also sent the Com- pany's payroll of November 26, also of record, which discloses 43 employees. As found later in this Report, the employees voted in a closed meeting shortly after November 9, in favor of the C. I. 0., 37 to 10 as against a company union. A majority is, therefore, clearly indicated. There is no substantial credible evidence that any of the signatures on the union cards were obtained by misrepresentation or that the majority status was altered until December 14 when the original charge was filed. Without objection, the General Counsel introduced into evidence a copy of an "Agreement for Consent Election" between the Respondent and the Union. He offered no proof of the circumstances under which it was signed. On its face it shows the date of execution as December 2, 1948. Later the Board's Regional Director fixed the time of election for December 17. The Director sent appro- priate notices to the Respondent which it promptly posted. On December 14, 1948, 3 days before the scheduled election, the attorneys for 490 DECISIONS OF NATIONAL LABOR RELATIONS BOARD the Union notified the Respondent that they had that day filed with the Board charges of unfair labor practices on the part of the Respondent. Simultaneously, the letter stated, they had notified the Board that "because of, the company's activities the union feels that a fair election cannot be held under the agree- ment of the parties . . . Accordingly, the union hereby withdraws its consent to such election." Next clay, December 15, the Regional Director telegraphed the Respondent concerning the charges and information received from the Union ; stated the Union would not waive the charges ; cancelled the election ; and directed the Company to remove the posted notices. It complied immediately. Such are found to be the facts of record as to the appropriate unit and the Union's representation of a majority. In his oral argument at the close of the hearing, counsel for the Respondent strongly challenged the Union's majority representation until an election should be held. In part he urged : The heart of the matter, we feel, is whether this union is entitled to represent the employees without an election and all we are asking really is that the employees decide for themselves whether it is the union they want to represent them collectively or whether they don't want the union to represent them. The authorities, however, do not support this contention of counsel. Less than a month before the hearing in this case, the Board handed down a decisions on a set of facts very similar to those at bar, and held that the union representation continued. Part of the decision reads : . . . The Union represented a majority of the employees in the appro- priate unit on September 24, 1948, when it made its initial request for rec- ognition. The Respondent refused the request, insisting that the Union prove its majority status in a Board-conducted election. The Board there- upon filed a representation petition. . . The Respondent gave its con- sent to an election. . . . However, beginning on October 12, and continu- ing until the election, the Respondent . . . engaged in acts of interfer- ence and coercion which made a free election impossible. We have previously held that an employer may in good faith insist on a Board.election as proof of the union's majority but that it "unlawfully refuses to bargain if its insistence on such an election is motivated, not by any bona fide doubt as to the union's majority, but rather by a rejection of the collective bargaining principle or by a desire to gain time within which to undermine the union."' In cases of this type the question of whether an employer is acting in good or bad faith at the time of the refusal is, of course, one which of necessity must be determined in the light of all relevant facts in the case, including any unlawful conduct 'of the employer, the sequence of events, and the time lapse between the refusal and the unlawful conduct. Later findings in this Report show that both before and after November 24, 1948, which was the date of a written request to the Respondent that it engage in collective bargaining with the Union : It completely ignored such request to- gether with earlier similar requests made orally ; it made statements to its employees of a coercive nature with respect to the Union ; and it endeavored 8 Joy Silk Mills, Inc., 85 NLRB 1263 ( decided September 13, 1949). 4 The quotation is from Artcraft Hosiery Company, 78 NLRB 333 . See also the other cases cited in the decision. MARR KNITTING, INC. 491 to restrain its employees from joining the C. I. O. by attempting to induce them to form a company union. Under these precedents and on the present facts, I hold the arguments of counsel to be without merit. Accordingly, I find that those who were to be permitted to vote in the election scheduled for December 17, 1948, were all production and maintenance employees, excluding office employees, watchmen, guards, and supervisory employees under the Act and that this was an appropriate unit under the Act for the purposes of collective bargaining. I further find that on November 9, 1948, and at all times thereafter, the Union was the duly designated bargaining representative of a majority of the employees in said unit, and that, in accordance with the pro- visions of Section 9 (a) of the Act, the Union was on said date and thereafter, has been and now is the exclusive representative of all the employees in the said unit for the purposes of collective bargaining with respect to pay, wages, hours, and other terms and conditions of employment. C. The refusal to bargain 1. Union requests to Respondent to bargain a. Marr's telephonic request Mention has already been made of the telephone conversation about November 15 between Glenn Marrs, union international representative, and Frank Marr, brother of President Urban Marr. Part of Marrs' request was that the Respond- ent enter collective bargaining negotiations with the Union. Frank Marr's reply was to invite the Union to send a representative to consult with Urban Marr. b. Conference between James and Urban Marr As to what occurred at this meeting, the record is dependent solely on the testi- mony of Urban Marr for the Respondent, since the General Counsel offered no proof about it. It has already been pointed out that there was considerable testimony concerning talk between James and Marr regarding union representa- tion. But nowhere in his direct testimony did Marr say a word about any request by James to enter into negotiations for a contract. And on cross-exam- ination the General Counsel never asked a single question about the James-Marr conference. Moreover, neither James nor Doudna, also present, were called to the witness stand. In the absence of any direct testimony that James wanted to bargain with the Company, do the circumstances fairly permit an inference that he did so? I be- lieve they do. The sole and only purpose of James' seeking union recognition for bargaining purposes was to bargain collectively. Otherwise it would be mean- ingless. The proof of the content of the conversation is admittedly meager, but in a way that makes the presumption stronger. Credence is added to this pre- sumption by Hobbie's letter a short time later "to confirm by letter his [James'] oral request made to you and your company a few days ago," which ended in a direct offer to bargain. c. Letter of November 24, 1948, from Robbie to Respondent As district president of the union, Hobble referred to James' previous con- versation ; renewed the request for union recognition ; and stated in part : We therefore offer to meet you at your earliest convenience for the purpose of negotiating a collective bargaining agreement. I find that the Union did offer to bargain collectively with the Respondent, at least as early as November 24, 1948, the date alleged in the complaint. 492 DECISIONS OF NATIONAL LABOR RELATIONS BOARD 2. Actions of Respondent What was the answer of the Respondent to these union requests to bargain? To Marrs by telephone it merely asked that a representative be sent to Osage. With James in person, there is no evidence whatsoever that it agreed to negotiate. And, most important of all, it never answered the Union's letter of November 24. It merely did nothing. Moreover, its negative conduct is colored by various state- ments to its employees and its actions towards them during the meantime, as will be pointed out hereinafter. All this totals up to a refusal on the part of the Respondent to bargain collec- tively with the Union. I so find.` Conclusion as to Refusal to Bargain I find that on November 24, 1948, and at all times thereafter, the Respondent has refused to bargain collectively with the Union as the exclusive representative of its employees in an appropriate unit ; and has thereby interfered with, re- strained, and coerced its employees in the exercise of the rights guaranteed under Section 7 of the Act. D. Interference, restraint, and coercion The complaint alleges the Respondent violated Section 8 (a) (1) by making certain coercive and threatening statements to its employees with respect to their union adherence and by taking certain actions contrary to this part of the Act. 1. Coercive statements to employees These statements were made primarily in connection with pqrticular actions or policies of the Respondent relating to their employees, which are discussed below. a. Doudna, plant superintendent, to a meeting of employees Two or three days after the first union meeting of November 2, Doudna addressed a meeting of all employees at the plant during working hours. This was the first such gathering ever held at the mill. According to Doris Brunner, of the mating department, Doudna stated : . . . He couldn't understand why we wanted to pay union dues when we could have a union of our own and get the same benefits and still not pay union dues .. . Another employee, Bernadine Winkels, quoted Doudna as saying in his speech: ... He wanted to know why we girls wanted to join the CIO and he told us about this idea that the girls could just as well form a union of their own which would be just as good .. . Eleanore Squier, also testifying for the General Counsel concerning the same meeting, related the following version of Doudna's talk : ... He couldn't understand why they wanted a union . . . if we would have a union of our own, we could get the same benefits and we wouldn't have to pay any dues .. . Doudna, although in Osage at the time of the hearing as shown by the record, did not appear as a witness. No other proof was tendered regarding these statements. 5 The drteraft Hosiery Company case, supra, is a pertinent authority for this finding. See also Vulcan Forging Company , 85 NLRB 621. 1VIARR KNITTING, INC. 493 b. Doudna to Squier About November 10, while Squier was working at her machine, Doudna, plant superintendent, stopped to talk to her. She testified : A. . . . He just asked me what I 'thought of the union, and I told him that I didn't know very much about it yet. Q. Did he ask you anything about the significance of signing a card? A. He asked if I knew what they were about, and I said, "no", and he told me that I should find out more about it before I signed anything. No contradictory evidence as to this conversation was proffered. C. Doudna to Brunner, Johanns, and Winkels According to the testimony of Brunner and Winkels, Doudna called these two employees and another, Gertrude Johanns, to the shipping room about November 17. Brunner related that he said: ... He told us that.he had been to Waterloo and Austin and had talked with people that worked under unions and the majority of them didn't like the way it was working out. According to Winkels : ... He wanted to know what we girls knew about the merits of unionism, and he told us about this plan about the girls. He said he thought that would work out all right amongst ourselves, that we didn't need a union. Again, this testimony was not disputed. d. Doudna to Lockwood Berdine Lockwood, senior employee in service and witness for the General Counsel, asserted that Doudna called her into the rest room approximately on December 5 and among other things told her: . .. The company was too young to be unionized and pay the.higher wages that the union would no doubt ask.... The plant might have to shut down. . . . He mentioned the possible loss of overtime.. . . No proof to the contrary was adduced. e. Marr to Clements Pearl Clements testified- for the General Counsel that she talked once with Marr, president, with Doudna present. She could fix the date only as in the fall of 1948, while the Union was attempting to organize the plant. Her direct testimony was that Marr "didn't seem to object to [the] union." The rest of the conversation. consisted of generalities about the desirability of good relations with the employees. On cross-examination she admitted that Marr did not ask her who had attended union meetings; whether she had signed a union card ; did not threaten her if she joined the Union ; and did not speak of any benefits to her if she remained nonunion. I find nothing coercive in this conversation. f. Marr to Dunley For the Respondent, Dorothy Dunley took the witness stand. Her story was that Marr called her to his office ; said he had heard rumors that she would. be fired because she had signed a union card ; and assured her the rumor was not true. 494 DECISIONS OF NATIONAL LABOR RELATIONS BOARD I regard this as purely negative proof that in Dunley 's case no coercion was employed. Marr made a general denial that he had ever threatened or coerced any of his employees because of their union activities . But, with the two exceptions noted, the statements quoted above go beyond the legitimate expression of opinion concerning a union and contains definite elements of restraint and coercion. I so find. In a very recent decision 6 of the Board the remarks made by supervisors were almost identical with those found in the present proceeding : " what all this union talk was about" ; the Respondent was "partial to the plant " and "if these union rumors get started around" it "would send it elsewhere" ; "Fry won't stand for a union out here, that they will shut down first." These were held to violate Section 8 ( a) (1). 2. Encouraging the formation of a plant union The uncontradicted evidence shows, that for the first time in the history of the plant, a meeting of all employees was held during working hours in the shipping room. This occurred a few days after the first union meeting on No- vember 2. Witnesses for the General Counsel testified that the "girls" were notified of the assembly by Agnes Weber, floor lady. She admitted doing so. Doudna addressed the employees and what he said regarding a company union has been quoted in large part above. Shortly after the second union meeting of November 9, the employees again convened in the shipping room on company time. Weber also notified them of this gathering' but was not present. Marr and Doudna left the plant. The employees discussed the question of joining the C. I. 0. or of adhering to an independent plant organization of their own. A written ballot was.taken which resulted in 37 votes for C. I. 0. and "probably" 10 for the company union. All this information soon reached Marr, Doudna, and Weber. Marr testified that he first learned of union activity in the plant from Doldna on Election Day, November 2, 1948. He denied that he ever "discussed" the formation of a company union with either Doudna or Weber. But he ad- mitted that he "talked" to Weber about the "girls" meetings and asserted he was fully informed about them later. His testimony was that he had picked up rumors of the balloting result in the second meeting but had not been "officially" advised. Weber stated she was the first to suggest an organization among the girls for the purpose of presenting grievances to Marr. As to Doudna, who did not appear as a witness, it was stipulated by counsel that he would have testified : [Weber] and I discussed among ourselves the possibility of having the girls represent themselves on rates or any other matters that bothered them. I believe that I was the first one to mention to Weber, our floor lady, the idea of the girls starting their own group in the back. I don't recall whether or not I spoke to Urban Marr about this idea before or after I communicated it to Agnes Weber, but Marr agreed to my plan. In summation, it is found that the Respondent favored a company union in preference to the C. I. 0.; through responsible supervisors it informed its em- ployees of such preference ; it arranged meetings so to do, which were held at the plant during the working period and the employees were paid during such 6Lloyd A. Fry Roofing Company, 85 NLRB 1222. MARK KNITTING, INC. 495 time; these gatherings suspiciously followed immediately after union campaign meetings ; supervisors strongly urged the employees not to join C. I. 0., but to set up a union of their own; all this was done with the knowledge and consent of management. It is well established that encouragement and instigation by the employer in the organization of a local company union among its workers, where methods are utilized such as in the present case, constitute interference with the employees' rights under the Act and violate Section 8 (a) (1) ' 3. Alleged improvement of overtime working policy as a result of union campaign As to working overtime, some facts on the record are undisputed. The Re- spondent's mill is operated and the employees are paid on a piecework basis. Goods passing through the various departments in the process of manufacture sometimes form a "bottle neck" at a particular stage. Overtime work is neces- sary to clear this congestion. Brunner, Winkle, and Squier testified for the General Counsel in very general terms that before the Union began its drive in November 1948, the employees were compelled to work overtime at the exclusive direction of the Company. Weber, floor lady, a witness for the Respondent, denied this and stated that from the beginning the employees had their free choice of working overtime or not. Marr, the president, was specific in outlining the Respondent's policy on overtime and presented numerous pay card records of employees at times before 1948, showing that overtime work was not compulsory. Even Winkle stated, contrary to her general assertion, that in 1947 some girls chose not to work overtime. I credit the testimony of the Respondent on this point and find that its policy on overtime work did not violate Section 8 (a) (1) .' 4. Alleged threats to' close the plant On December 5, Doudna may have made a remark to Lockwood that if the Union come in the Respondent might have to close its plant. A rumor to that effect soon spread among the employees and reached Marc. He thereupon called in Brunner and Lockwood shortly before December 17 and told them the rumors were false. He explained that his obligations to his employees and his loans at local banks completely prevented moving or closing the factory. About the same time, on December 15, he had caused the following notice to be posted on the plant bulletin board. To OUR EMPLOYEES : Contrary to any rumors which you may have heard this mill will continue operation indefinitely with no change in management, personal or policies. I find that the Respondent did not violate Section 8 (a) (1) by threatening to close its plant, in order to combat the current union drive. 5. The alleged unilateral wage increase Compensation to the Respondent's employees was based on piecework output and not by the hour or day. All witnesses for both parties agreed that no general, over-all pay increase was put into effect by the Company in the period 7 N. L. R. B. v. Clark Phonograph Co., 176 P. 2d 341 (C. A. 3). Overtime has previously been mentioned in this Report in connection with a statement made by Doudna to Lockwood on December 5: "He mentioned the loss of overtime." (See III, D, 1, d, above.) The two propositions are entirely different and separate. 496 DECISIONS OF NATIONAL LABOR RELATIONS BOARD between the beginning of the union drive in early November 1948, and the scheduled election on December 17. Brunner, Winkle, Lockwood, and Squier testified for the General Counsel that, following the appearance of the Union, wages were increased in certain departments. As against that, Marr explained that the policy of wage adjustments had remained unchanged from the time the factory began producing at its present scale. The difference of work in the several departments occasionally resulted in a pay scale in one division dispro- portionate, up or down, to what operators elsewhere in the shop earned. This was caused by changes in style of the mittens and gloves and by other similar factors. When such a contingency arose, he asserted, the Respondent investi- gated and if convinced of the disparity, effected the appropriate adjustment. He and Weber cited such instances occurring before November 1948, and after. Among them was a conference he-called in early December with Brunner and Lockwood, who also testified about it. A union representative had exhibited a Dun & Bradstreet credit report to the employees, asserting it showed the Com- pany could pay higher wages. Marr and a representative of Dun & Bradstreet argued to the two employees that such was not the case. On the matter of supposed wage increases I believe Marr's version. I find that the Respondent did not put into effect any unilateral wage increase for the purpose of coercing his employees not to join the Union. 6. The alleged installation of holiday and vacation pay Three witnesses for the General Counsel, Brunner, Winkle, and Lockwood, testified somewhat vaguely and generally that they had not heard of pay being received for work on holidays and for vacation periods until the Union started its solicitation. Weber denied their statements. But Lockwood admitted she had seen a posted bulletin on the subject many months before. Marr pre- sented a detailed history of the Company's policy and actions from the beginning. Such pay was first discussed, he averred, late in 1946 or early in 1947, and installed to a certain extent in 1947. It was modified in 1948, and the existing plan was put into operation January 1, 1949. Three successive annual bulletins about it had been posted. Payments had been made under it without interruption and without any objection by workers. I rely on the detailed, specific testimony of Marr and Weber, rather than the generalities of the three employees. I find, therefore, that the Respondent did not install or alter payment for holidays and vacations as an inducement to its employees to remain nonunion. 7. Alleged adoption of seniority provisions The same witnesses just mentioned asserted for the General Counsel that the coming of the Union brought about seniority privileges not known before. Again Weber and Marr contradicted them. The latter testified the Company had never had a complete, defined seniority policy and did not at present, because no sub- stantial layoff had ever occurred. But the current practice, he asserted, was exactly what it always had been. When a vacancy in a department occurred, the applicants were considered, and, other things being equal, the senior employee was placed. Final decision was reserved for management. I believe the. Marr version. ,MARK KNITTING, INC. 497 Accordingly , I find that the Respondent did not alter its seniority practice as a means of influencing its employees not to affiliate with the Union. Conclusion as to interference , restraint , and coercion Under the facts thus set forth , I find that , in the two respects mentioned, be- ginning November 2, 1948, the Respondent interfered with, restrained, and coerced its employees in violation of Section 8 (a) (1) of the Act. IV. THE EFFECT OF THE UNFAIR LABOR PRACTICES UPON COMMERCE I find that the activities of the Respondent set forth in Section III, above, occurring in connection with its operations in Section I, above, have a close, inti- mate, and substantial relation to trade, traffic, and commerce among the several States, and tend to lead to labor disputes burdening and obstructing commerce and the free flow of commerce. V. THE REMEDY Since it has been found that the Respondent has engaged in unfair labor prac- tices, it will be recommended that it cease and desist therefrom and take certain affirmative action designed to effectuate the policies of the Act. It having been found that the Respondent has refused to bargain collectively with the Union as the exclusive representative of its employees in an appropriate unit, it will be recommended that the Respondent, upon request, bargain collectively with the Union. Upon the basis of the foregoing findings of fact and upon the entire record in the case, I make the following : CONCLUSIONS OF LAW 1. United Farm Equipment and Metal Workers of America, C. I. 0., is a labor organization within the meaning of Section 2 ( 5) of the Act. 2. All production and maintenance employees at the Respondent's Osage, Iowa, mill, excluding office clerical employees, watchmen, guards, and supervisory employees, as defined in the Act, constitute a unit appropriate for the purposes of collective bargaining within the meaning of Section 9 (b) of the Act. 3. United Farm Equipment and Metal Workers of America, C. I. 0., was on November 24, 1948, and at all times thereafter has been, the exclusive representa- tive of all the employees in the unit hereinabove described for the purposes of collective bargaining within the meaning of section 9 (a) of the Act.. 4. By refusing on November 24, 1948, and at all times thereafter to bargain collectively with United Farm Equipment and Metal Workers of America, C. I. 0.,. exclusive representative of all its employees in the aforesaid appropriate. unit, the Respondent has engaged in and is engaging in unfair labor practices within the meaning of Section 8 (a) (5) pf the Act. 5. 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 in, and is engaging in, unfair labor practices within the meaning of Section 8 (a) (1) of the Act. 6. The aforesaid labor practices are unfair labor practices affecting commerce within the meaning of Section 2 (6) and (7) of the Act. 903847-51-vol. 90-33 498 DECISIONS OF NATIONAL LABOR RELATIONS BOARD RECOMMENDATIONS Upon the basis of the foregoing findings of fact and conclusions of law, I recommend that the Respondent, Marr Knitting, Inc., its officers, agents, succes- sors, and assigns, shall: 1. Cease and desist from : (a) Refusing to bargain collectively with United Farm Equipment and Metal Workers of America, C. I. 0., as the exclusive representative of all production and maintenance employees at the Respondent's Osage, Iowa, mill,. excluding office clerical employees, watchmen, guards, and supervisory employees as defined in the Act; (b) Engaging in any manner in any other acts interfering with the efforts of united Farm Equipment and Metal Workers of America, C. I. 0., to negotiate for or represent the employees in the said unit as exclusive bargaining agent. 2. Take the following affirmative action which I find will effectuate the policies of the Act : (a) Upon request, bargain collectively with. United Farm Equipment and Metal Workers of America, C. I. O., as the exclusive bargaining representative of all the employees in the unit described herein, with respect to wages, hours, and other terms and conditions of employment ; and if an understanding is reached, embody such understanding in a written, signed agreement; (b) Post in conspicuous places at its mill at Osage, Iowa, copies of the notice attached hereto, marked "Appendix A." Copies of said notice, to be furnished by the Regional Director for the Eighteenth Region, shall, after being duly signed by the Respondent's representative, be posted by the Respondent immediately upon receipt thereof and be maintained by it for a period of sixty (60) consecu- tive days thereafter in conspicuous places, including all places where notices to employees are customarily posted ; (c) Notify the Regional Director for the Eighteenth Region in writing within twenty (20) days from the receipt of this Intermediate Report what steps the Respondent has taken to comply herewith. It is further recommended that, unless on or before twenty (20) days from the receipt of this Intermediate Report the Respondent notifies said Regional Direc- tor in writing that it will comply with the foregoing recommendations, the National Labor Relations Board issue an order requiring the Respondent to take the action aforesaid. As provided in Section 203.46 of the Rules and Regulations of the National Labor Relations Board any party may, within twenty (20) clays from the date of service of the order transferring the case to the Board, pursuant to Section 203.45 of said Rules and Regulations, file with the Board, Washington 25, D. C., an original and six 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 six copies of a. brief in support thereof; and any party may, within the same period, file an original and six copies of a brief in support of the Intermediate Report. Immediately upon the filing of such statement of exceptions and/or briefs, the party filing the same shall serve a copy thereof upon each of the other parties. Statements of exceptions and briefs shall des- ignate by precise citation the portions of the record relied upon and shall be legibly printed or mimeographed, and if mimeographed shall be double spaced. Proof of service on the other parties of all papers filed with the Board shall be promptly made as required by Secttion 203.85. As further provided in Section MARR KNITTING, INC. 499 203.46, should any party desire permission to argue orally before the Board, request therefor must be made in writing to the Board within ten ( 10) days from the date of service of the order transferring the case to the Board. In the event no Statement of Exceptions is filed as provided by the aforesaid Rules and Regulations , the findings, conclusions , recommendations , and recom- mended order herein contained shall , as provided in Section 203.48 of said Rules; and Regulations , be adopted by the Board and become its findings , conclusions, and order , and all objections thereto shall be deemed waived for all purposes. Dated at Washington , D. C., this 25th day of November 1949. HAMILTON GARDNER, Trial Examiner. APPENDIX A NOTICE TO ALL EMPLOYEES Pursuant to the 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 engage in any acts in any manner interfering with the efforts Of UNITED FARM EQUIPMENT AND METAL WORKERS OF AMERICA, C . I. 0., to negotiate for or represent the employees described in the bargaining unit set forth below. WE WILL BARGAIN collectively upon request with the above -named union as the exclusive representative of all employees in the bargaining unit described herein with respect to wages, hours , and other terms and condi- tions of employment , and if an understanding is reached , embody such under- standing in a signed agreement . The bargaining unit is: All production and maintenance employees at the Osage, Iowa, mill, ex- cluding office clerical employees , watchmen , guards, and supervisory employees. MARK KNITTING, INC., Employer. Dated -------------------------- By --------------------- * ( 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