Materials Research Corp.Download PDFNational Labor Relations Board - Board DecisionsNov 8, 1979246 N.L.R.B. 398 (N.L.R.B. 1979) Copy Citation DECISIONS OF NATIONAL LABOR RELATIONS BOARD Materials Research Corporation and United Electri- cal, Radio and Machine Workers of America (UE). Case 2-CA-15689 November 8, 1979 DECISION AND ORDER By CHAIRMAN FANNING AND MEMBERS JENKINS AND MURPHY On August 6, 1979, Administrative Law Judge Robert W. Leiner issued the attached Decision in this proceeding. Thereafter, Respondent filed exceptions and a supporting brief. The Charging Party filed an answering brief and the General Counsel filed a brief in support of the Administrative Law Judge's Deci- sion. Pursuant to the provisions of Section 3(b) of the National Labor Relations Act, as amended, the Na- tional Labor Relations Board has delegated its au- thority in this proceeding to a three-member panel. The Board has considered the record and the at- tached Decision in light of the exceptions and briefs and has decided to affirm the rulings, findings,' and conclusions2 of the Administrative Law Judge and to adopt his recommended Order. ORDER Pursuant to Section 10(c) of the National Labor Relations Act, as amended, the National Labor Rela- tions Board adopts as its Order the recommended Or- der of the Administrative Law Judge and hereby or- ders that the Respondent, Materials Research Corporation, Orangeburg and Pearl River, New York, its officers, agents, successors, and assigns, shall take the action set forth in the said recommended Order. i Respondent has excepted to certain credibility findings made by the Ad- ministrative Law Judge. It is the Board's established policy not to overrule an administrative law judge's resolutions with respect to credibility unless the clear preponderance of all of the relevant evidence convinces us that the resolutions are incorrect. Standard Dry Wall Products Inc., 91 NLRB 544 (1950), enfd. 188 F.2d 362 (3d Cir. 1951). We have carefully examined the record and find no basis for reversing his findings, except to the extent ex- pressed herein. We find merit in Respondent's exception to the Administrative Law Judge's finding that at the hearing Robert Brown "absolutely denied" having uttered abusive language to Su?ervisor Russ Fairchild. The record contains no testimony by Brown as to the contents of his discussion with Fairchild Accordingly. we do not rely on this finding. However, the record contains other evidence sufficient to support the finding that Respondent violated Sec. 8(aX3) of the Act by withholding part of Brown's merit increase. 2 The Administrative Law Judge inadvertently misstated the Board's hold- ing in The Ideal Electric and Manufacturing Company, 134 NLRB 1275 (1961), as permitting consideration of unfair labor practices occurring be- tween the filing of a representation petition and the execution of a consent election agreement. In Ideal, we stated that we would permit consideration of objectionable conduct occurring during that period. Such conduct may or may not also violate the unfair labor practice section of the Act. DECISION STAITEMENI' OF THE CASE ROBERT W. LEINER, Administrative Law Judge: This case was heard in New York, New York on June 4 and 5, 1979, pursuant to a charge filed by the above-captioned United Electrical Workers on June 9, 1978, and served on Respondent, Materials Research Corporation, on June 12, 1978; on a complaint and notice of hearing issued on Sep- tember 29, 1978; and on Respondent's timely answer, dated December 8, 1978.' The complaint alleges and Respondent denies a violation of Section 8(a)(l) of the Act because its chief operating officer, Sheldon Weinig, confiscated and de- stroyed certain union literature.2 The complaint also al- leges, and Respondent similarly denies, that Respondent, in violation of Section 8(a)(1) and (3) of the Act, on or about January 10, 1978, withheld from an employee, Robert Brown, a portion of a merit increase to which he was other- wise entitled, because of his activities on behalf of United Electrical, Radio and Machine Workers of America (UE), herein called the Union, or the Charging Party. Respondent also interposed six affirmative defenses.' Respondent admitted that Respondent's president, Shel- don Weinig, is an agent of Respondent although it denied that he is a supervisor within the meaning of Section 2(11) of the Act. It admitted that Respondent's supervisor, George Fostel, is a supervisor within the meaning of Sec- tion 2(11) of the Act, and an agent of Respondent.4 Upon the entire record in this case, and from my obser- vation of the witnesses, and after due consideration of the I Respondent's answer admits, by failing to deny, inter alia, the filing and service of the charge. In a subsequently pleaded affirmative defense, appar- ently addressed to the adequacy of the charge, Respondent denies service of "any charge alleging [the unfair labor practices pleaded in the complaint]." 2 At the hearing, without objection, the General Counsel and Respondent, respectively, amended the complaint and answer in regard to the dates ap- pearing in paras. 6 and 7 of the complaint wherein the corrected allegations read that the above acts occurred on or about December 15. 1977, rather than December 15, 1978. Prior to the June 4 5, 1979, hearing, Respondent, on January 3, 1979, filed a motion to dismiss the complaint and for summary judgment on the ground that all unfair labor practices alleged in the complaint predated the Regional Director's approval of the February 2, 1978 Stipulation for Certifi- cation Upon Consent Election. The Board (G.C. Exh. 1(I), (n)) denied the motion and remanded the matter for hearing (G.C. Exh. I(r)): . . . being of the opinion that the pleadings and submissions of the parties raise issues which can best be resolved at an evidentiary hearing before an Administrative aw Judge. The substance of said motion is repeated in Respondent's answer, affirmative defense 4. Assuming, as I do, that the matter, whether by way of the motion or the pleading, is vital and before me, it is rejected as a defense. See infra. ' With regard to Respondent's president, Sheldon Weinig, Respondent ad- mitted that he was an agent acting within the scope of his authonty, the chief operating officer of Respondent who directed subordinate supervisors of Re- spondent to form a committee to investigate certain pay raises relating to the issues in the case. Although the issue of Weinig's supervisory status is not an issue which must be resolved in order to have his acts as agent bind Respon- dent, contrary to Respondent's denial, on the above evidence alone and because Weinig is the president of Respondent and admitted chief operating officer having control over the operations of Respondent's manufacturing and employment functions, I conclude that he is a supervisor within the meaning of Sec. 2(11 ) of the Act, notwithstanding that he does not exercise daily supervision over particular employees. He controls them all at all times. 246 NLRB No. 64 398 MATERIALS RESEARCH CORPORATION briefs filed by General Counsel and Respondent' subse- quent to the close of the case, I hereby make the following: FINDINGS OF FACT 1. THE BUSINESS OF RESPONDENT The complaint alleges, Respondent admits, and I find, that at all material times Respondent, a New York corpora- tion, maintains principal offices and places of business in Orangeburg and Pearl River, New York, and is engaged in the manufacture and sale of component materials and re- lated products for the electronics and communications in- dustries. Respondent further admits that on an annual basis it sells and ships from its Orangeburg and Pearl River places of business goods and materials valued in excess of $50,000 directly to points outside the State of New York. Respondent admits and I find that at all material times it has been and is an employer engaged in commerce within the meaning of Section 2(2), (6), and (7) of the Act. 11. THE LABOR ORGANIZATION INVOLVED United Electrical, Radio and Machine Workers of Amer- ica (UE), herein called the Union, as Respondent admits and I find, has been at all material times a labor organiza- tion within the meaning of Section 2(5) of the Act. III. THE ALLEGED UNFAIR LABOR PRACTICES A. Background On January 6, 1978, the Union filed a petition in Case 2- RC-17856 for certification as collective-bargaining repre- sentative of all of Respondent's production and mainte- nance employees in Respondent's Orangeburg and Pearl River facilities. On February 1, 1978, the parties entered into a Stipulation for Certification Upon Consent Election, further refining the employees to be covered in the pro- posed collective-bargaining unit as including production and maintenance employees in the above facilities, but ex- cluding, inter alia, laboratory employees and employees in the quality control department. Robert Brown, a chemical technician employed in Respondent's analytical laboratory, was an employee excluded under the terms of the stipula- tion.6 Pursuant to the above stipulation, a Board-conducted election was held on March 8, 1978, wherein the tally of ballots showed that of the 152 eligible voters' in the above unit, 61 votes had been cast for the Charging Party and 81 votes against. On or about March 16, 1978, the Regional 'Counsel for the Union submitted a post-heanng letter relating to her representation at the hearing that certain documents, subpenaed by Respon- dent, did not exist. The letter suggests that the documents had been de- stroyed before Respondent subpenaed them and that the destruction had been innocent. Respondent's brief (p. 13) implied otherwise. The letter, dated July 12. 1979, was apparently served on all parties and is included in the official record as C.P. Exh. 4. 6 By the time of the hearing and Brown's testimony. he had quit his job with Respondent and was employed as an organizer by the Charging Party, the Union herein. His resignation of April 18, 1978, thus followed the elec- tion of March 8. 1978, which the Union lost. 'There were approximately 85 employees employed in the Pearl River plant and 60 in Orangeburg at the time of the hearing. Director for Region 2 issued a certification of results dem- onstrating that a majority of the valid ballots had not been cast for the Union. No objections were filed. The evidence shows that Brown was the initiator of ac- tivities on behalf of the Union among Respondent's em- ployees commencing in or about March 1977. and was known to Respondent as "the leader of this union move- ment" earlier than September 1977. By mid-April 1977, Brown had secured the aid of several other employees in seeking to organize Respondent's em- ployees and by September 1977, in the presence of other employees, he remonstrated with Respondent's Supervisor Gary Lutz against Respondent's using lie detector tests re- lating to allegedly missing precious metals. Brown told Lutz that the only reason for the tests was to interfere with the organizational activities of the employees. Thereafter (on September 19) he had conversations with other Respondent supervisors (Walter Schnabel and Mike Ray) relating to the lie detector tests. In a morning meeting of all employees in Respondent's Orangeburg cafeteria. Brown confronted Dr. Sheldon Weinig, Respondent's president, after Weinig told the employees that the lie detector tests had been stopped, that Respondent's business prospects were good, and that he heard that there was a union attempting to organize the employees but saw no reason for it. At this time, Brown told Weinig that two management officials had said that the lie detector tests were going to be resumed and that Brown and other employees had visited the local police who told Brown that there was no police investigation going on at that time. Weinig said that he knew nothing of the reinstitu- tion of the lie detector tests. Brown asked Weinig to have the two high management officials (Vice President Schultz and Plant Manager Dr. Martin) come forward and deny that the lie detector tests were going to be given. Weinig refused. Two to 3 days thereafter, Brown's immediate su- pervisor, George Fostel, told Brown that he would no longer be allowed to go into the production area to get samples, which visits were a routine part of Brown's job. Brown credibly testified that 15 percent of his time was ordinarily devoted to visits to the production area to get samples which he thereafter tested in the laboratory. Brown, without response, told Fostel that the reason for this physical restriction on his activities was a result of Brown's standing up to Weinig on the lie detector issue in the cafeteria, several days before. When, about a week lat- er. Brown went into the production area itself to seek out supervisor Fostel for permission to leave early to get a hair- cut. Fostel gave him permission but told him not to come into the production area and to consider Fostel's statement to constitute a "verbal warning."' Some time, at the beginning of October, while Brown was in the analytical lab in the afternoon, in the presence of an employee and Supervisor Fostel's superior, Vice President Dr. Walter Class, Brown jokingly told the employee (Fred Ceresnak) that certain materials on which a test was being conducted related to a shipment that was already so late I Respondent maintained a handbook relating to employee conduct and misconduct. Among the gradations of the mechanics of Employer discipline. there appear in the testimony herein references to "verbal warnings" and "written warnings." Five verbal warnings or two wntten warnings within a 3-month period for different infractions of the Rules of Conduct may result in dismissal (G.C. Exh. 5(A)). 399 DECISIONS OF NATIONAL LABOR RELATIONS BOARD that the employee would have to fly to Germany with the test sample in order to deliver the shipment on time. Vice President Class told him not to joke about the matter. The next day, Supervisor Fostel told Brown that Vice President Class had directed Fostel to give Brown a verbal warning, the basis of which was that Brown had engaged in a non- business conversation during business hours. Brown an- swered Fostel by saying that he thought that the verbal warning resulted from two sources: (a) Brown's "standing up" to Weinig in the cafeteria; and (b) Brown's meetings with employees regarding problems of health and safety in Respondent's plants. Fostel answered by saying that he wished he could say something to Brown but, because of his supervisory position, he could not. Brown's testimony is undenied that from time to time he had conversations relating to nonbusiness matters with Vice President Class, Supervisor Fostel, and others, all during worktime. On the morning of Saturday, October 29, 1977, in the analytical laboratory in Orangeburg, Brown had a conver- sation with fellow employee Joe Nicolesi, who was transfer- ring from the Orangeburg plant to Respondent's Pearl River facility. While Brown was speaking to Nicolesi, Pres- ident Weinig entered the room and asked what Nicolesi's business was. Brown told him that he was just saying good- bye to Nicolesi, who was leaving. Weinig told Brown that he had been previously warned about having nonbusiness discussions on worktime and asked where Brown's supervi- sor was. When Brown told him that Fostel was in the main production area, Weinig left. When Fostel next spoke to Brown that afternoon, Fostel told Brown that it was "ironic" that Brown should be warned by Weinig for non- business conversations during working hours when it was Fostel, himself, who had told Nicolesi to go to the analyt- ical laboratory to say "hello" to Brown. Nevertheless, on the following Monday, October 31, 1977, in the morning, Supervisor Fostel presented a written warning notice (G.C. Exh. 4) to Brown for having violated the company rule. This notice is headed "warning notice" and dated October 31, 1977. It is characterized as the "first" written warning. The next of these typewritten warning notes that Brown violated a company rule in that: On Tuesday, 10/18/77, you were given a verbal warn- ing not to leave your work area and not to engage in non-business conversations with employees and others during working hours. In spite of that, on Saturday, 10/29/77, at about II a.m. you were engaged in a non- business conversation with an employee from another plant. This constitutes direct disobedience of a reason- able verbal order given by your supervisor. This writ- ten warning is to advise you that further repetition of infraction of company rules will result in further and appropriate disciplinary action. The warning was signed by George Fostel, as Brown's supervisor. When it was presented to Brown, according to Respondent's practice of inviting a discussion of the warn- ing between the employee and the supervisor, Brown, with Fostel's permission, wrote thereon (punctuation added): 1, having no authority to say who can or cannot enter the analytical lab, feel that I am guilty of no underlin- ing appears in original infraction of company rules. I furthermore feel that because of my position of being pro-union in the present organizing drive at M.R.C. I am being discriminated against and harassed. Brown signed his statement on October 31, 1977. After he served the above warning notice, Fostel told Brown that it was also ironic that Brown had come to the lab to work as a favor to Fostel and that Brown ended up getting a warning notice. Brown normally does not work on Saturdays. Commencing early in November 1977, at the plant en- trance, lunch areas, an other places, Brown distributed union membership authorization cards and thereafter col- lected them from employees. The Fairchild Incident On Friday, November 18, 1977, Brown, in the company of other employees, met with Respondent's general man- ager, Dr. Martin, to give him the results of a health and safety survey Brown undertook in order to correct depart- mental health and safety problems which Brown had alleg- edly found. Two days after giving the survey to Dr. Martin, Brown posted the survey on the cafeteria bulletin board. The bulletin board regularly contains various employee- drafted notices concerning personal vehicles, items for sale, and other items of private employee business. In the after- noon, following the morning posting, the Respondent's shipping and receiving supervisor, Russell Fairchild, re- moved the survey from the bulletin board and Brown said he saw him take it to the personnel office. Brown and four employees went to Fairchild's office an hour or two there- after and had a conversation with him. The tone of the conversation regarding Fairchild's action is disputed. Four employees who accompanied Brown to Fairchild's office, according to their written statements (C.P. Exh. 2), which documents were received by Respondent and apparently considered by it, assert that Brown did not use foul or abu- sive language directed to, or in his conversation with, Su- pervisor Fairchild in Fairchild's office. As a result of this visit to Fairchild's office, however, Respondent served on Brown a second written "Warning Notice" (G.C. Exh. 5(A)): On Friday, November 18, 1977, at about 4:05 p.m. in company with four other employees you entered the office of supervisor Russ Fairchild and used abusive language against him for removing a certain document from the bulletin board. Your remarks were to the ef- fect that of all the supervisors you're the "prick"-at least 10 supervisors read this and left it on the board- you read it, took it down and had to run to personnel with it. This action and your remarks violate the absolute minimum standards of conduct and speech that per- sons working together in a company must abide by in order for groups of people to work together in har- mony. Rule 12 of the Employee Handbook states: The use of abusive language to a supervisor or an- other employee will result in a written warning or dis- missal depending upon the nature of the offense. 400 MATERIALS RESEARCH CORPORATION There are more orderly and conventional procedures that you could have followed to protest Fairchild's ac- tion, such as going to your supervisor or to the Person- nel Dept. Instead, you chose a course of action that puts your future employment with this company in jeopardy. You are reminded of Rule 15 in the Employee Handbook which states: Any employee who accumulates five verbal warn- ings and/or two written warnings within a period of three months for different infractions of the Rules of Conduct shall be subject to dismissal. The warning notice was signed by Donald M. Stuart. personnel manager. Thereafter. Brown stated in response thereon: The charge that I used abusive language when speaking to Russ Fairchild is a complete fabrication. Myself and five other (maybe four others) employees entered Fairchild's office and three of us spoke some- times together about Fairchild's constantly removing employee statements from the bulletin board. Once again I repeat that no abusive language was used by me towards Fairchild. I have four other employees to verify this. Once again this is a case of harassment and discrimination against me because of my pro-union ac- tivity. It is now to the point of fabrication. 11-22-77. Robert Brown. The above November 22, 1977, second warning notice to Brown was appealed on November 26, 1977, to higher management (to Dr. Class and/or Dr. Martin). Brown's written appeal (G.C. Exh. 5(B)) repeats the assertion that the warning notice was a complete fabrication and that Brown had four witnesses who would testify to the truth of the incident. Brown asked for an opportunity to state his case and have his witnesses present. On December 5, 1977, General Manager G. L. Martin noted on Brown's appeal memorandum: The circumstances leading to the warning given to Mr. Brown on 11/22/77 have been completely reviewed through examination of all written statements and dis- cussion with all individuals who had any knowledge of the incident. I have concluded that the issuance of the warning was proper and that it should not be re- scinded. At no time in the hearing, it should be noted, did Plant Manager Martin, Supervisor Fostel, Supervisor Fairchild, President Sheldon Weinig, or Dr. Class testify. Further. none of the four employees alleged to have been present in Fairchild's office with Brown testified, notwithstanding that I received their written statements in evidence because Re- spondent had reviewed them, and Respondent's witness tes- tified as to their authenticity and their being used in Re- spondent's evaluation of Brown's appeal. The Destruction of Union Literature by President Weinig on December 15, 1977 The following uncontradicted testimony of Robert Brown, which I credit, corroborated by employee John Thomashefski, shows that Respondent established at its Or- angeburg facility a 15-minute break period from 9:15 a.m. to 9:30 a.m. On December 15, 1977, immediately at 9:15, Robert Brown stood at the timeclock with 40 union leaflets (G.C. Exh. 6), approximately 30 in one hand and 10 in the other. His intent was to distribute these union leaflets to production and maintenance employees who were momen- tarily expected to come through the doors from the produc- tion area, pass Brown at the timeclock, and, within a few steps, proceed into Respondent's cafeteria to spend the breaktime there. Brown had given similar leaflets to other employees, including Charles Wilkinson, for further distri- bution. While it is unclear on this record whether employees from the production area were present at the time of this event. it is undenied that Dr. Sheldon Weinig approached Brown at the timeclock' and asked him whether it was breaktime. When Brown said it was, Weinig went directly into the cafeteria. While Brown was distributing leaflets to employees. Weinig returned and told Brown and other dis- tributors to stop distributing the leaflets immediately. With that, he grabbed leaflets from one of Brown's hands and crumpled them up. Brown told him that he was violating the employees' National Labor Relations Act rights and asked Weinig if Weinig was giving him a direct order, and Weinig told Brown to read the company handbook. Brown again told Weinig that he had violated employees' National Labor Relations Act rights, and Weinig walked away. The handbooks rule is not in evidence. Brown then walked into the cafeteria carrying the 30 re- maining leaflets and placed a copy of each leaflet on six or seven of the eight tables in the cafeteria. At this time, ap- proximately 30 employees were in the cafeteria, seated at the six or seven tables. Brown placed a leaflet on each table or put it in front of one of the seated employees, saying that "this" was the Union's message. Immediately after he had distributed the leaflets to each of the tables, as above, Brown placed the balance of the union leaflets on top of a nearby magazine rack. At this moment, Dr. Weinig entered the cafeteria, went to the rack, picked up the leaflets and asked Brown if he had put them on the rack. When Brown failed to answer, he asked each of the employees, sitting at a table near where Brown was standing, who put the leaflets on the magazine rack. When no one answered this question, Weinig addressed the same question generally to everyone in the cafeteria: whether anyone had seen who put the leaf- lets there. Brown told Weinig that the employees had a right to distribute the leaflets and that Weinig was violating that right. At this point, Weinig took the leaflets off the magazine rack, crumpled them up, and threw them into the trash bin. Brown told Weinig that "we will seek legal coun- sel through the Union" and Weinig answered: "You can seek whoever you want." About an hour later, the four employees, including Brown, who distributed the leaflets were called into the of- ' The evidence shows that the timeclock area was devoted to employees punching in and out, However, Thomashefski testified that there was no punching in or out during breaktime and that it was not a "bottleneck" area. Thomashefski also testified that visitors sometimes enter Respondent's prem- ises through the entrance near the timeclock, and these visitors include truckdrivers and a vendor. There is no evidence that such persons were expected or present at this time. 401 DECISIONS OF NATIONAL LABOR RELATIONS BOARD fice of Personnel Manager Donald Stuart. Stuart told the four employees, individually, that they were free to distrib- ute union literature on nonwork time in nonwork places, including the cafeteria. Brown told Stuart that he had made this same statement to Weinig but that Weinig paid no attention to him, that Weinig's actions in the cafeteria were in front of 30 employ- ees, and that Weinig's actions required that Respondent put the statement regarding the freedom to distribute union lit- erature in writing on the bulletin board. Brown told Stuart that it was "Okay" that Stuart was telling this to Brown personally, but "How about them [the 30 employees in the cafeteria]." Stuart answered that it was okay to distribute the literature but there would be no apology and no retrac- tion. The complaint alleges'0 that on or about December 15, 1977, Respondent, by Sheldon Weinig "confiscated and de- stroyed the union literature being distributed .... " Respon- dent, in its answer, denied the allegations of the complaint but averred that Weinig "picked up some throw aways left on a table in the cafeteria of the Orangeburg plant at which no one was seated, and, after ascertaining that no one in the immediate facility claimed them, picked them up and threw them away. The long settled rule is that employees are permitted at all times to possess, Chrvsler Corporation (Missouri Truck Plant), 242 NLRB 577 (1979), and also to distribute union literature on nonwork time in nonwork areas regardless of any employer rule to the contrary (no work rule is in evi- dence which prohibits such distribution) in the absence of special circumstances which require the maintenance of production, safety, or discipline in the plant as a means proscribing such otherwise lawful possession and distribu- tion. Stoddard-Quirk Manufacturing Co., 138 NLRB 615 (1962); American Cast Iron Pipe Co. v. N.L.R.B., 600 F.2d 132 (8th Cir. 1979). It should be first noted that no Respondent witness, or any other witness, testified in support of the above defense in Respondent's answer. The testimony of neither of the General Counsel's witnesses (Brown, Thomashefski) dem- onstrates any inherent weakness and it is credited, espe- cially here, in the absence of the one witness who could have presented an issue of fact and credibility. There was no explanation here why President Weinig did not testify to controvert the facts elicited from General Counsel's wit- nesses. Especially in his unexplained absence." I credit the testimony of Brown and Thomashefski. Laredo Coca Cola Bottling Company, 241 NLRB 167 (1979); Zapex Corpora- tion, 235 NLRB 1236 (1978). Possession as well as distribution of union literature is protected under the Act. Chrysler Corporation (Missouri Truck Plant), 242 NLRB 577 (1979); Stoddard-Quirk Manufacturing Co., 138 NLRB 615 (1962). There is no question here but that Brown, in possessing and distributing 'O At the hearing, the General Counsel specified that the complaint ad- dresses Weinig's conduct within the cafeteria and not at the timeclock. &" In support of a motion to change return date of subpena, dated May 25. 1979, withdrawn at the hearing on June 4, 1979, Respondent submitted a letter incorrectly dated April 16, 1979, from President Weinig, noting, inter alia, that he had arranged to attend a 2-day seminar commencing June 4, 1979, which coincided with the opening of the Board hearing. Counsel's motion nevertheless noted that Dr. Weinig was available to testify on June 5. He did not appear. union literature in the cafeteria on December 15 was en- gaged in a concerted activity, protected by Sections 7 and 8(a)(1) of the Act against interference by Respondent. Weinig's acts of interrogation in the cafeteria of Brown, the employees seated at the nearby table, and then all other 30 employees in the room, to discover who had left the leaflets at the magazine rack, in conjunction with the leaflets being exposed on the tables and his confiscation and destruction of the leaflets on the rack in a nonwork area on nonwork time constitute a violation of Section 8(a)(l) of the Act. F. W. Woolworth Co., 216 NLRB 945, 949 (1975); Larand Leisurelies v. N.L.R.B., 523 F.2d 814 (6th Cir. 1975). Wein- ig's gratuitous, hostile interrogation of the employees and his destruction of the union leaflets on top of the magazine rack (others were in front of employees on the tables) were designed to intimidate Brown and the other employees to whom he addressed questions in order to obstruct the em- ployees' right of self-organization. by showing his opposi- tion to the existence of these union leaflets in Respondent's cafeteria. Any defense regarding "special circumstances" is thus sacrificed. Stoddard-Quirk Manufacturing Co. at 621. The facts herein do not demonstrate that Dr. Weinig. for instance, was in any way playing a practical joke on em- ployees, Federal-Mogul Corporation v. N.L.R.B., 566 F.2d 1245 (5th Cir. 1978); and Personnel Manager Stuart's later advice to Brown and the other union literature distributors that they were free to distribute in the cafeteria and else- where falls far short of a Respondent repudiation of Wein- ig's action, for Stuart admitted no wrongdoing and refused to post a notice of repudiation to, or otherwise contact, the 30 employees in the cafeteria who witnessed Weinig's con- duct, as well as other employees who heard about it. Passa- vuant Memorial Area Hospital, 237 NLRB 138 (1978), and cases cited therein. In short, in the absence of contrary testimony, or special circumstances, it is clear that President Weinig's conduct on December 15 in interrogating the employees and in confis- cating and destroying the union leaflets in the cafeteria, a nonwork place, on nonwork time, violated Section 8(a)(l) of the Act. Respondent's Withholding of a Portion of Brown's Merit Increase on January 10, 1978 Brown was hired on January 11, 1977, and, pursuant to Respondent's policy, received two performance reviews at 3-month intervals in April 1977 and July 1977, and there- after 6 months later, in January 1978. The initial reviewing authority at all times, and the supervisor making the recom- mendations, was George Fostel, Brown's immediate super- visor. The evidence shows that Brown started work at $4 an hour and, early in his employment and continuously there- after, reminded Respondent that he thought he was being underpaid. Fostel's April 1977 evaluation of Brown contains Fostel's notations that Brown's work performance in terms of qual- ity and quantity of work met acceptable standards; that his attitude was very good; that he was a self-starter and had good work habits. Fostel's overall rating was a "check" and a "plus" appearing next to the entry "satisfactory," where the choice was to indicate that, in the overall rating, Brown's performance was "unsatisfactory," "satisfactory," 402 MATERIALS RESEARCH CORPORATION or "outstanding." As a result of this April evaluation, Brown received a 25-cent-per-hour raise which, according to Brown's conversation with Fostel as recorded on the hourly performance review (G.C. Exh. 7). Brown regarded as being insubstantial. He did state, however, that he ac- cepted the 25-cent-per-hour raise. Fostel again reviewed Brown in July 1977 and again measured Brown's overall rating as "check-plus" in the sat- isfactory column. Brown received another 25-cent per hour raise effective July 11, 1977. In both reviews, Fostel's rec- ommendations were countersigned individually by the de- partment head and the personnel manager (G.C. Exh. 8). On January 10, 1978, in the morning, Fostel again re- viewed Brown's performance, but this time for a 6-month performance. Whereas in the two prior evaluations, before Brown engaged in union activities, Fostel had described Brown's "attitude evaluation" as "good" and "very good." by January 1978, Fostel found Brown's attitude to be "ex- cellent" (G.C. Exh. 9). Further, by January 1978. Fostel measured Brown's approach to his job. in terms of intelli- gence and effectiveness, as "outstanding" rather than satis- factory. He further found that his ability and willingness to work with others had grown from good or very good to "outstanding." the ultimate category on Respondent's form. His "overall" appraisal of Brown's performance was no longer checked in the satisfactory box, as theretofore, but was measured by the word "outstanding." It should be noted that, in July, when Brown told Fostel that the 25-cent-per-hour raise he received was not substan- tial, Fostel told him that if his work remained good, he would receive a 50-cent raise on his anniversary date: i.e., in January 1978. In this performance review on January 10, 1978, Fostel told Brown that Brown's work was as good or better than in the previous evaluation, and that Vice Pres- ident Dr. Class had told Fostel not to do anything with regard to Brown's recommended wage increase until the matter was cleared by Fostel with Class. Thus Fostel told Brown that the wage increase column in the form would be left vacant. In the afternoon of January 10, 1978, Fostel returned to the lab and had the review paper with him. He said that Vice President Class and Plant Manager Martin had recom- mended a 4-percent increase for Brown, which amounted to 18 cents per hour. The document (G.C. Exh. 9) now had printed on its face, on the second page, under Fostel's over- all appraisal of Brown as "outstanding," the following: Employee has demonstrated initiative and technical ability. However, this must be balanced by certain ac- tions that have not been in the corporations best inter- est and disciplinary action has been required. The 18-cent raise was initialed as of January 10, 1978, in the heading requiring the initials of the personnel manager. When Fostel asked for Brown's comments, Brown stated thereon (G.C. Exh. 9, page 2) that this was the lowest pay increase he had ever received and that the "actions" re- ferred to by Fostel on the document referred to Brown's engaging in actions relating to "our legal rights to collective bargaining and union representation." He stated that the discipline received from Respondent for his actions was nothing more than "harassment and discrimination because of [his] participation in concerted activity to improve my work place." There is no dispute that the disciplinary action referred to by Respondent was the two written warning notices of October 31, 1977, and November 22, 1977. Again, the first written warning notice (G.C. Exh. 4) related to Class' prior verbal warning against Brown's entering the production area, which theretofore had been part of the routine of his job, occupying 15 percent of his time, wherein he sought to obtain samples for testing in his lab: and to Brown's con- versation on Saturday, October 29. with the departing em- ployee John Nicolesi. The second written warning notice (G.C. Exh. 5(A)) relates to the Fairchild incident, supra. With regard to the first warning notice of October 31, 1977. the evidence is uncontradicted that Supervisor Fos- tell2 directed employee John Nicolesi to the laboratory in which Brown was working to afford Nicolesi an opportuni- ty to say hello, and goodbye, to Brown before Nicolesi transferred out of the Orangeburg plant. While there is no evidence on this record that Fostel, knowing that Vice Pres- ident Dr. Class had already given a verbal reprimand to Brown fbr straying into the production area, had "set up" Brown by having Nicolesi enter the laboratory during working hours, it is clear that the first reprimand was deliv- ered and issued because of the conduct of Supervisor Fostel rather than the employee encouraging Nicolesi to visit him during working hours. Even though the warning notice was issued, on this record, because of the innocent wrongdoing of Supervisor Fostel in encouraging Nicolesi to enter the laboratory during working hours, and even in the absence of bad motivation, I regard the warning notice issued to Brown on this occasion to be technical. at best. Brown played no substantial part in Nicolesi's presence. I conclude that Respondent confined Brown to the lab and initiated the warning against his entering the production area be- cause he was known as the union organizer and because of Respondent's hostility to the Union, and that Fostel's fail- ure to intervene on Brown's behalf was due to his knowl- edge of Respondent's motivation. The implementation of the rule having been discriminatorily motivated, Respon- dent cannot argue that its action was to prevent Brown from interfering in the production activities of its produc- tion employees. The restriction placed on Brown, on the record, did not flow from such interference; he normally spent 15 percent of his time in the production area; and Respondent's discriminatory action was not in terms of worktime, but absolute. I further conclude that this first written warning was unwarranted. Its pretextual nature ap- pears from Respondent's failure to in any way deny Brown's testimony that he and Dr. Class, in particular, of- ten had nonbusiness conversations on worktime. Dr. Class did not testify. With regard to the second warning notice (G.C. Exh. 5(A)), Brown has at all times denied using abusive language to Supervisor Fairchild. Respondent produced no witness with regard to the event: neither Fairchild himself to deny Brown's testimony and to aver, in the face of Brown's con- trary testimony, that Brown did utter abusive language to him, nor G. L. Martin, the general manager, who allegedly 12 Fostel did not testify. 403 DECISIONS OF NATIONAL LABOR RELATIONS BOARD (G.C. Exh. 5(B)) reviewed and examined all written state- ments and discussed with all individuals the Fairchild inci- dent. On the other hand, the General Counsel failed to pro- duce the four corroborating witnesses who were with Brown when Brown used the allegedly abusive and obscene language to Fairchild. Here, as in the incident with Pres- ident Weinig in the confiscation of union literature, above, the only live witness that was produced by either side with regard to the Fairchild event was the alleged discriminatee himself, Robert Brown. He absolutely denied the utterance of the obscene language. Respondent failed to produce any witness to the matter but introduced its records thereof. In spite of the fact that Brown, at the time of the hearing, was a paid employee of the Charging Party, in view of Re- spondent's failure to produce either or both Fairchild or Martin, or any other witness to the events herein, or to explain their actions, I credit Brown's denial that he used obscene language to Fairchild. I am not suggesting, in mak- ing this credibility resolution, that Respondent may not rely on the version of an event supplied by its supervisors and have an honest belief that Brown used obscene language to Fairchild. I conclude that Respondent in the absence of evidence of pretext may reasonably have relied on Fair- child's version as opposed to Brown's (and the alleged sup- porting witnesses) in its issuance of the written warning no- tice of November 22. 1977, with regard to the Fairchild incident. National Aluminum, Division of National Steel Cor- poration. 242 NLRB 294 (1979). However, in resolving the question, not of "honest belief' on the part of Respondent in its crediting of its own supervisor (Fairchild), but in re- solving the ultimate issue of whether, in fact, Robert Brown did utter the obscenity to Fairchild, I am faced with the General Counsel's producing a live witness (in addition to four statements, in evidence, corroborating Brown) on the one hand, and on the other hand, Respondent, without ex- cuse or even explanation, producing only papers and no live witness to confront Brown's testimonial denial of hav- ing used obscene language. Under these circumstances I credit his denial and find that he did not utter obscene language to Fairchild. I fur- ther find therefore, on this record, that Respondent ad- duced insufficient evidence to support its conclusion that, in fact, the basis for "disciplinary action" referred to in its hourly performance review (G.C. Exh. 9), in which it gave Brown an 18-cent-per-hour increase rather than a greater increase, was established. I further conclude, from the en- tire record herein, including the union animus directed at Brown by Weinig, Respondent's admitted recognition of Brown as the most prominent union activist among its em- ployees, and, at best, the pretextual nature of its prior disci- 1 In view of record evidence (G.C. Exh. 5(B)) that Dr. Martin discussed the Fairchild incident with "all individuals who had any knowledge of the incident," I conclude that Respondent met the General Counsel's evidence (G.C. Exh. 2) of the four employees who said that Brown used no obscene language. But when General Counsel adduced Brown's testimony, Respon- dent could no longer rely on the weak evidence of Dr. Martin's report but was under an obligation to confront Brown with Fairchild's testimonial de- nial, obviously stronger evidence. It failed without explanation to do so, and its action supports the negative inference, which I draw, that Fairchild's contrary testimony would not stand up to confrontation. International Union, United Automobile, Aerospace, and Agricultural Implement Workers of Amer- ica (UA W) [Gyrodyne Co. of America] v. N.LR.B., 459 F.2d 1329 (D.C. Cir. 1972). Even Dr. Martin was not produced to testify concerning his investiga- tion of the matter after Brown's emphatic denial and direct appeal to him. plinary action against Brown, that the failure to give him more than an 18-cent-per-hour-wage increase, as alleged, was based upon unlawful discriminatory considerations rather than upon objective disciplinary actions and thus violated Section 8(a)(3) and (1) of the Act. It should be noted that all the disciplinary actions commenced on and after the time that Brown, found by his supervisor to be an "outstanding" employee, became an active union sup- porter. Dr. Class' restriction of his movements, his confron- tations with Respondent's supervisors regarding his investi- gation of health and safety problems in the plant, the destruction of the union leaflets, and the alleged disciplin- ary action because of "certain actions that have not been in the Corporation's best interest" relate, in this case, to Brown's union activities rather than to his deficiencies as an employee. I do not find what pay increase Brown would have re- ceived absent this discrimination, bearing in mind that some of his peers received 25 cents per hour. The resolution of that issue should await a backpay proceeding, if neces- sary. Moreover, in view of the fact that Brown and the four employees who entered Fairchild's office were concertedly protesting removal of a report regarding occupational haz- ards in Respondent's plant, they were clearly engaged in a "protected" concerted activity. Alleluia Cushion Co., Inc., 221 NLRB 999 (1975). Assuming, arguendo, that Brown used an obscene word to describe Fairchild's action in re- moving the safety report from the bulletin board, Respon- dent may not discriminate against him by retaliation for this derogatory epithet addressed to its supervisor under these circumstances. United States Postal Service, 241 NLRB 389 (1979), and case cited therein. Respondent's Affirmative Defenses Respondent alleged six affirmative defenses. The first was that the complaint was issued in violation of Section 10(b) of the Act in that it does not "state the charges in that respect" within the meaning of Section 10(b); i.e., the unfair labor practices alleged by the complaint were not charged by the Union. As a matter of fact, the charge in this case alleges unlawful employer harassment, discrimination with regard to wage increases, and "disparate enforcement of company rules," and alleges violation of Section 8(a)(1) and (3) of the Act. It is thus sufficiently broad to form a proper nexus with the complaint which alleges violation of Section 8(a)(1) and (3) in the Brown wage increase and 8(a)(I) in the confiscation and destruction of the leaflets. N.L.R.B. v. Fant Milling Company, 360 U.S. 301 (1959). In any event, courts of appeal have uniformly rejected attempts to restrict the Roard's complaints to the precise violations alleged in the charges where the matters are reasonably related. N.L.R.B. v. Pecheur Lozenge Co., 209 F.2d 393 (2d Cir. 1953); N.L.R.B. v. Kohler Company, 220 F.2d 3, 7 (7th Cir. 1955). Respondent's brief (p. 3), insofar as it asserts that the charge "cannot be fairly be read to specify or relate . . ." to the acts alleged in the complaint, refers to no Board or court authority in support thereof. Respondent's second affirmative defense alleges a viola- tion of the Board's Statement of Procedures, Section 101.4, in that the Regional Director did not serve upon Respon- 404 MATERIALS RESEARCH CORPORATION dent the copy of any charge alleging the unfair labor prac- tices found in the complaint and never asked Respondent to submit a statement of its position in respect to said unfair labor practices. The third affirmative defense asserts that, in violation of Section 101.7 of the Board's Statement of Pro- cedures, the Regional Director never afforded Respondent an opportunity to settle." With regard to the first part of the second affirmative defense, the above-cited cases dispose of that assertion. With regard to the second part, the failure of the Regional Director to have Respondent submit a statement of its posi- tion with regard to the unfair labor practices, and the third affirmative defense, the Board has held that compliance with these elements in an unfair labor practice case is not jurisdictional, especially where, as here, Respondent was given an opportunity to settle at the hearing. Dairylee, Inc., 149 NLRB 829, 830 (1964). Thus, Respondent's second and third affirmative defenses are rejected. Respondent's fourth affirmative defense,' as I under- stand it, is that the Regional Director's approval of a con- sent election an agreement between the Charging Party and Respondent on February 2, 1978, followed by the Regional Director's certification of results (the Charging Party lost the election) on March 16, 1978, operates to preclude issu- ance of a complaint alleging as unfair labor practices acts prior to the Regional Director's approval. Hence, since the unfair labor practices alleged herein (December 15, 1977, and January 10, 1978) predate the Regional Director's ap- proval of the consent election agreement, Respondent urges dismissal of the complaint. Respondent relies on language in Hope Webbing Com- pany, 14 NLRB 55 (1939), and The Wallace Corporation, 50 NLRB 138, 152 (1943), enfd. 323 U.S. 248, rehearing de- nied 324 U.S. 885 (1945), wherein the Board, in the absence of postsettlement violations, prohibits prosecution of preset- tlement unfair labor practices. Cf. Northern California Dis- trict Council of Hodcarriers and Common Laborers of A mer- ica, AFL-CIO; Construction and General Laborers Union Local No. 185, AFL-CIO, 154 NLRB 1384 (1965), enfd. sub. nom. N.L.R.B. v. Joseph Mohamed Sr., an Individual d/b/a Joseph's Landscaping Service, 389 F.2d 721 (9th Cir. 1968). This fourth affirmative defense is similarly without merit. The cases cited by Respondent, as the General Counsel has already urged before the Board opposing Respondent's mo- tion to dismiss, are distinguishable since they relate to con- sent elections resolving representation (i.e., violations of Section 8(aX2)) issues between contesting labor organiza- tions. The agreed-upon, voluntary resolution of the repre- sentation issue in a consent election was held in those cases to put a quietus on the preelection allegations of unfair labor practices predicated on representation issues. In the instant case, the alleged unfair labor practices, unlike those in Hope Webbing, are not derived from, nor can they be resolved through, the election machinery. They exist wholly apart from any statutory representation of rights of the " Respondent was given an opportunity to settle at the opening of the hearing. 1" This defense was also urged in Respondent's Motion for Summary Judg- ment (G.C. Exh. I(I)), dated January 3. 1979, which the Board, on General Counsel's opposition (G.C. Exh. (p) denied (G C. Exh. (r)) on March 19. 1979, refemng the entire matter to a plenary hearing. Charging Party. To thus mechanically apply, as Respon- dent urges, a rule designed for cases involving presettlement violation of Section 8(a)2)-and the Board has other spe- cialized rules regarding the disposition of 8(a)(2) cases in election situations, Carlson Furniture Industries, Inc.. 157 NLRB 851, 853 (1966)-to a case involving only 8(a)(3) and (I) violations is to misconstrue the foundation and function of these cases cited by Respondent. In short, Wal- lace Corporation, and Hope Webbing Co.. supra, are distin- guishable. Furthermore, to permit such a result would sub silentio undermine the rule in The Ideal Electric and Manufacturing Company, 134 NLRB 1275 (1961), which permits consider- ation of unfair labor practices occurring before execution of a consent election agreement but after filing of the petition, in order to set aside the election. If execution of a consent election agreement precluded a party's right to assert such preconsent unfair labor practices, few consents would ever be obtained and the Board's election machinery impaired by countless needless hearings. This fourth affirmative de- fense is rejected. Respondent's fifth and sixth affirmative defenses are that the amount of backpay which it might owe Brown. together with Respondent's destruction and confiscation of union lit- erature, at best, are "technical . . . contraventions of the statute" (br. p. 33) requiring dismissal as de mininimis. Re- spondent cites American Federation of Musicians, Local 76. AFL-CIO (Jimmy Wakely Show). 202 NLRB 620 (1973). The case is distinguishable on its facts. The de milimis de- fense is inapplicable to Respondent's unlawful demonstra- tions of discrimination and hostility which contravene two separate basic statutory rights. CONCI.USIONS OF LAWr 1. Respondent, Materials Research Corporation. is an employer engaged in commerce within the meaning of Sec- tion 2(2), (6), and (7) of the Act. 2. United Electrical, Radio and Machine Workers of America (UE), herein called the Union, is a labor organiza- tion within the meaning of Section 2(5) of the Act. 3. By confiscating and destroying union leaflets in a non- work place on nonwork time in the presence of employees to whom similar leaflets had been distributed, first demand- ing to know from the employees who distributed the leaf- lets, all of which occurred on or about December 15, 1977. Respondent interfered with, restrained, and coerced its em- ployees in activities protected by Section 7 of the Act, thereby violating Section 8(a)(1) of the Act. 4. By failing and refusing to grant Robert Brown, on or about January 10, 1978, a full merit increase because of his activities on behalf of the Union. Respondent unlawfully discriminated against employees, thereby discouraging membership in the Union in violation of Section 8(a)(3) of the Act. 5. Respondent's unfair labor practices affect commerce within the meaning of Section 2(6) and (7) of the Act. THE REMEDY Having found that Respondent has engaged in certain unfair labor practices within the meaning of Section 8(a)( I) 405 DECISIONS OF NATIONAL LABOR RELATIONS BOARD and (3) of the Act, I shall recommend that it cease and desist therefrom and take certain affirmative action to effec- tuate the policies of the Act. Accordingly, having found that Respondent, in violation of Section 8(a)(3) of the Act, unlawfully refused to grant Robert Brown a full merit in- crease, I shall recommend that Respondent be ordered to make him whole for any loss of pay resulting from the dis- crimination against him which resulted from paying him an 18-cent per hour merit increase, by payment to him of a sum of money equal to the amount he would have earned as wages had he been given a full merit increase commenc- ing January 10, 1978, and ending with the date he ceased employment with the Company (April 18, 1978). Should the parties be unable to agree on the figure, the matter should be the subject of a backpay proceeding. Backpay shall be computed on a quarterly basis in the manner pre- scribed in F. W. Woolworth Company, 90 NLRB 289 (1950), and Florida Steel Corporation, 231 NLRB 651 (1977).'6 Upon the foregoing findings of fact, conclusions of law, and upon the entire record in this proceeding, and pursuant to Section 10(c) of the Act, I hereby issue the following recommended: ORDER'7 The Respondent, Materials Research Corporation, Or- angeburg and Pearl River, New York, its officers, agents. successors, and assigns, shall: I. Cease and desist from: (a) Failing to grant full merit increases to or otherwise discriminating against any of its employees because they engage in activities on behalf of United Electrical, Radio and Machine Workers (UE), herein called the Union, or any other labor organization, thereby discouraging mem- bership therein. (b) Confiscating or destroying literature of the Union or any other labor organization that has been or is being dis- tributed to employees in nonwork areas and on nonwork time, or otherwise interfering with the distribution of such literature to discourage membership in the Union. (c) In any like or related manner interfering with, re- straining, or coercing its employees in the exercise of their rights guaranteed in Section 7 of the Act. 2. Take the following affirmative action designed to ef- fectuate the policies of the Act: (a) Make whole Robert Brown for any loss of earnings he may have suffered as a result of the discriminatory re- "6See, generally, Isis Plumbing & Healing Co., 138 NLRB 716 (1962). l" In the event no exceptions are filed as provided by Sec. 102.46 of the Rules and Regulations of the National Labor Relations Board, the findings, conclusions, and recommended Order herein shall, as provided in Sec. 102.48 of the 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. fusal on January 10, 1978, to grant him a full merit in- crease, in the manner set forth above in the section entitled "The Remedy." (b) Preserve and, upon request, make available to the Board or its agents, for examination and copying, all pay- roll records, social security payment records, timecards, personnel records and reports, and all other records neces- sary to analyze the amount of backpay due under the terms of this Order. (c) Post at its facilities in Orangeburg and Pearl River, New York, copies of the attached notice marked "Appen- dix."'8 Copies of said notice, on forms provided by the Re- gional Director for Region 2, after being duly posted by Respondent's representative, shall be posted by it for 60 consecutive days thereafter, in conspicuous places, includ- ing all places where notices to employees are customarily posted. Reasonable steps shall be taken by Respondent to insure that said notices are not altered, defaced, or covered by any other material. (d) Notify the Regional Director for Region 2, in writ- ing, within 20 days from the date of this Order, what steps Respondent has taken to comply herewith. t" In the event that this Order is enforced by a Judgment of the United States Court of Appeals, the words in the notice reading "Posted by Order of the National Labor Relations Board" shall read "Posted Pursuant to a Judg- ment of the United States Court of Appeals Enforcing an Order of the Na- tional Labor Relations Board." APPENDIX NOTICE To EMPLOYEES POSTED BY ORDER OF THE NATIONAl. LABOR RELATIONS BOARD An Agency of the United States Government WE WILL NOT fail to grant full merit increases to or otherwise discriminate against any of our employees because they engage in activities on behalf of United Electrical, Radio, and Machine Workers (UE), herein called the Union, or any other labor organization. WE WILL NOI confiscate or destroy union literature or literature of any other labor organization that has been or is being distributed to employees in nonwork areas and on nonwork time. WE WILL NOT in any like or related manner interfere with, restrain, or coerce our employees in the exercise of their rights guaranteed in Section 7 of the Act. WE WILL make whole Robert Brown for any loss of earnings he may have suffered as a result of our dis- criminatory refusal, on January 10, 1978, to grant him a full merit increase. MATERIALS RESEARCII CORPORATION 406 Copy with citationCopy as parenthetical citation