Merchants Truck Line, Inc.Download PDFNational Labor Relations Board - Board DecisionsSep 30, 1977232 N.L.R.B. 676 (N.L.R.B. 1977) Copy Citation DECISIONS OF NATIONAL LABOR RELATIONS BOARD Merchants Truck Line, Inc. and Preston B. Farr and Virgil Rodgers. Cases 26-CA6277 and 26-CA- 6298 September 30, 1977 DECISION AND ORDER BY CHAIRMAN FANNING AND MEMBERS JENKINS AND PENELLO On March 16, 1977, Administrative Law Judge Thomas A. Ricci issued the attached Decision in this proceeding. Thereafter, General Counsel filed excep- tions and a supporting brief, and Respondent a brief in response. Pursuant to the provisions of Section 3(b) of the National Labor Relations Act, as amended, the National Labor Relations Board has delegated its authority in this proceeding to a three-member panel. The Board has considered the record and the attached Decision in light of the exceptions and briefs and finds merit in certain exceptions. Accord- ingly, it affirms the rulings, findings, and conclusions of the Administrative Law Judge, as modified herein. I. The Administrative Law Judge specifically found that in May 1976 Respondent's vice president, Paul Kitchens, who did not testify, violated Section 8(a)(l) by threatening Preston Farr, an employee at Respondent's New Albany, Mississippi, terminal where its general offices are located, with discharge because of his union activity. However, as regards a June 21, 1976, conversation between James Rober- son, Respondent's secretary-treasurer, and Farr, the Administrative Law Judge stated that Roberson interrogated Farr concerning his union activities in soliciting cards and, after telling Farr that he knew he had been reported for union soliciting at three different terminals, ordered Farr to cease all activi- ties in favor of the Union while he was "on the clock" or while the other employees were "on the clock." The Administrative Law Judge agreed with the General Counsel's contention that this talk by Roberson to Farr was coercive and that until union activity started there was no established rule against solicitation while at work, citing Summit Nursing and Convalescent Home, Inc., 196 NLRB 769 (1972), and Florida Steel Corporation, 215 NLRB 97 (1974). We specifically find that Roberson's questioning of Farr created the impression of surveillance in violation of I The General Counsel excepts to the Administrative Law Judge's refusal to recall Secretary-Treasurer Roberson to testify on rebuttal, and subse- quently to accept its exhibits of official ICC documents submitted posthearing, and placed in a rejected exhibit file. We do not reach these exceptions of the General Counsel inasmuch as we find the four discharges discriminatory on the record as it stands. In addition, we find it unnecessary to reach point 3 of the Administrative Law Judge's fn. I concerning the nonlitigability in this proceeding of exceeding authority granted by the ICC. 232 NLRB No. 107 Section 8(aX)(), and that Respondent promulgated an overly broad no-solicitation rule after the union campaign began, without showing that it was necessary to maintain discipline or production, thus in violation of Section 8(aX1) of the Act. In July, as the Administrative Law Judge found, Farr was discriminatorily suspended for 3 days. On August 7, President Ben A. Kitchens, who did not testify, singled out Preston Farr from among a group of employees and told him that in the future he was to immediately leave Respondent's terminal upon completion of his work. When Farr started to leave, Kitchens then told him that he hoped he did not like it because Kitchens "would love to" inflict harm upon him. The Administrative Law Judge did not discuss this incident as such. However, he did credit evidence supporting the above alleged violation and used such evidence in support of his finding that Respondent violated Section 8(a)(3) by the Farr suspension. We find that Kitchens' statement to Farr, who had never before been ordered off the company premises by Kitchens and, as found by the Administrative Law Judge, had been a "perfectly well behaved employee throughout his 5 years of employment," restrained and coerced Farr in viola- tion of Section 8(aX1) of the Act. Furthermore, Kitchens' statement to Farr as he was leaving, threatening physical harm, constituted coercion in violation of Section 8(a)(1). 2. On or about June 15, 1976, Allen Patterson, manager of Respondent's Louisville terminal, ques- tioned William Mayo, a longhaul driver at Louisville for 9 years, as to when he first heard about the Union and said he, Patterson, just could not understand why anybody would want to bring a union into Respondent's Company, especially the four men, Rodgers, McCullough, Sanders, and Haggard, whom Patterson named. The Administrative Law Judge recited Patterson's questioning of Mayo but made no finding. We find it coercive interrogation and also find that Patterson's statement that he was aware that named employees had signed cards created the impression of surveil- lance by Respondent of its Louisville employees in violation of Section 8(a)(1). 3. Also in June, on or about June 16, Rebecca Patterson, wife of the terminal manager, engaged alleged discriminatee Ed McCullough in conversa- tion as he was leaving the office. She advised him of We also disavow the Administrative Law Judge's supposition (par. (8) of the Administrative Law Judge's list of indicia against finding discriminatory discharges) that union adherents would have been dismissed in any event because at least 113 employees must have signed cards as a prerequisite to an election. The four alleged discnminatees signed in May. The petition was not filed until October 6, and it is as of that date that the presumption of 113 (30 percent) card signers applies. 676 MERCHANTS TRUCK LINE a pickup he was to make and then sat down to talk with him, stating that she was surprised at him. She refused to give an explanation and then asked if he had any complaints about anything. The Administra- tive Law Judge did not discuss this testimony or make any finding as to it, though alleged in the complaint. We find that Rebecca Patterson is an agent of Respondent because she enjoys a special relationship with the Employer at this terminal, as evidenced by the fact that she is the wife of Terminal Manager Alan Patterson, is allowed to work as it suits her convenience and to write in her time as opposed to punching the timeclock, assigns pickup work and delivery work to drivers, and figures their hours for submission to New Albany. We find that Rebecca Patterson's comment of surprise at McCul- lough and her invitation to discuss his "problems" or grievances during the campaign constituted coercive interrogation in violation of Section 8(a)(1) of the Act.2 4. The Administrative Law Judge found that the announcing of a new bidding system and an unprecedented sick leave benefit in Respondent's June 30, 1976, letter had an illegally coercive effect upon the employees but that the wage increases of July and August mentioned in the same letter were not illegal. We disagree. In dismissing the two $5 weekly wage increases announced June 30 for payment in July and September, the Administrative Law Judge found "an established practice of the Respondent to grant such wage increases from time to time over the years" and concluded that the timing of the announced increases was not as significant as the novel sick leave benefits, stating that if the raises had been announced in August or September 1976, as the General Counsel said they had been in prior years, they would have been much closer to the time of "open" union activity. 3 The evidence indicates that the Respondent had no established pattern of granting raises in the past. Most were for $5; two were for $10. No seasonal pattern, or pattern by specific month, appears. The Respondent contends that raises were given when the Company had a good year; 1976 being a relatively good one. 4 However, we find that Respondent's system of granting raises was, at best, arbitrary and in view of Respondent's clear union hostility, as set forth herein, its explanation does not negate the inference that the announcement was made for the purposes of enticing employees to oppose the Union. 2 See Sprouse-Reitz Co., Inc., 199 NLRB 943, fn. 2 (1972). 3 The election petition was filed in October, as the Administrative Law Judge reiterated. 4 The 1976 raises exceeded the combined total of the two previous years' raises. They totaled $25; earlier totals by year were: $10 for 1975 (in one raise); $10 for 1974; and $10 for 1973. See Adams Automation & Manufacturing Company, 218 NLRB 1255, 1258 (1975). In addition, the timing of two raises so closely coordinated with the previous antiunion activity in May and June confirms the antiunion motive in announcing them, as well as the other two significant benefits. 5. There remains for consideration the late June discharges of four drivers at the Louisville, Mississip- pi, terminal: Haggard, Rodgers, 5 Sanders, and McCullough. The Administrative Law Judge's dis- missals of the 8(a)(3) allegations based upon these discharges fail to give proper weight to the timing of the discharges during a campaign already strenuous- ly opposed by the Respondent, though in its early stages. The four card signers at this terminal were let go shortly after comment by their terminal manager concerning their having signed cards and "their wanting to bring in a union." The Administrative Law Judge viewed the cam- paign as extending from May to October, though the election was not held until December, and in that time frame assessed the postponement to late June of an asserted earlier management decision to reduce the number of employees at Louisville. Testimony for Respondent placed the basic decision as a year earlier than final merger approval by the Interstate Commerce Commission. The Administrative Law Judge saw nothing significant with respect to the organizational campaign as of "June or June 30." As he analyzed it, the "first overt act" was the filing of the petition in October. Thus, the Administrative Law Judge accepted Respondent's timing of the discharges as based upon a finalized operational decision, relying upon testimony-even though he found it "conclusionary" - that there was a lessened need for pickup and delivery work at Louisville as of the June 30 merger date. Testimony that route changes made under temporary Interstate Commerce Commission authority, if later required to be can- celed for lack of permanent authority "could be of great inconvenience," he found "persuasive on its face." The latter was "unassailed" on the record and the former not disproved by business records obtained by subpena. In general, his analysis draws heavily upon Respondent's defense, including mone- tary savings, low seniority of those discharged at Louisville, and generosity in paying discharge vaca- tion and severance pay. Viewing the union campaign as a whole, it is notable that the bulk of the threats and coercive interrogation by Respondent was attributable to 5 Rodgers, who had the most seniority. was reemployed on December 29, 1976. This was after the Union lost the election held December 9 and 10, and shortly before the reopening of the hearing in this case on January 4, 1977 677 DECISIONS OF NATIONAL LABOR RELATIONS BOARD Respondent's president and vice president, Ben and Paul Kitchens, neither of whom testified. Preston Farr was their first target. Farr was a longhaul driver who worked out of New Albany where Merchants' general office is located. On or about May 1, Farr visited the union office, and then started organizing by making house calls and talking with employees at other terminals. On May 19, Farr was threatened by Respondent's vice president with discharge "before it was over" and was berated for doing what he was doing. The Administrative Law Judge found this threat of discharge an 8(a)(l) violation. Then, in the following 5 days, four, who were later discharged at Louisville, signed cards. These cards dated May 20 to 24 are in evidence. Soon after, in June, Louisville Manager Patterson commented to employee Mayo that the four had in fact signed and that he could not understand why they wanted to bring in a union. This was, in effect, credited by the Administrative Law Judge, incident to finding that Respondent had knowledge of the union sympathies of the four dischargees, and is referred to in section 2 of this Decision. Also, on June 21, Farr was told by Secretary- Treasurer Roberson that he was known to have solicited cards at three terminals, and he was ordered to stop soliciting while he or others were "on the clock."6 This was a new rule against any solicitation that had not existed before the advent of union activity. It was found coercive by the Administrative Law Judge, who described the admonition to Farr as involving "his widely known union activities in soliciting cards." On June 25 the four known card signers at Louisville were discharged; the sole reason given was the impending merger.7 A fifth employee, the terminal manager's son, was included, with the result that the five lowest in seniority at Louisville were dismissed, young Patterson being second lowest. On June 30, Respondent addressed the letter (treated in sec. 4 above) to all employees in the system announcing benefits for all full-time employ- ees. These benefits were: (1) two wage increases of $5 a week each, one as of July 5 and one as of August 30; (2) the announcement of "5 work days sick leave pay" which, if not used, would be paid to employees in January of the following year, plus elimination of need for a doctor's certificate to prove sickness; and 6 See sec. I of this Decision. The Administrative Law Judge erroneously placed this as occurring "the following month," meaning August, in light of the paragraph immediately preceding. Farr placed it as June 21, the day he returned from his vacation. Roberson recalled the conversation but testified that he did not know the date. 7 The Administrative Law Judge speculated that, as three other employees at Louisville had signed cards during the campaign, "a random hand free of illegal motive would have picked up at least three unioneers, and as likely four." However, the record shows that one of the three others, Rhodes, did not sign a card until June 30: the date when the other two (3) plans to improve scheduling runs for road drivers based on length of service, promised in 30 to 45 days. The final paragraph of the June 30 letter to employees announced that date as the effective date of the merger with Mississippi Freight and welcomed the employees of the latter "into the Merchants family."s Thus, in close sequence Respondent threatened to discharge card solicitor Farr, promulgated a new rule against solicitation to curtail union activity, dis- charged the four known card signers at a terminal with a staff of eight (exclusive of the manager, his wife, and his son), and impressively increased employee benefits systemwide. However, Respondent's campaign to defeat the Union did not end there, and its continuing efforts in this direction add dimension to the above efforts. In July, Respondent's president told employee Coffey, who had worked at New Albany 6 years and had been with the Company for 9, that he had beat the Union before, three or four times, and if he beat it this time he would fire Coffey, who was rumored to be pushing it; also that he would "sell the business and take his million." The Administrative Law Judge found these threats violative of Section 8(a)(1). They occurred shortly before Farr's 3-day suspension that commenced July 11, a suspension found to be 8(a)(3) discrimination, though ostensibly intended as pun- ishment of Farr for being sick on a Monday. In connection with this 8(a)(3) finding, the Administra- tive Law Judge recited the abusive language of Respondent's president: "I gave you a job and then you go behind my back and do me this way." Also on August 7, as described in section I above, President Kitchens engaged in 8(a)(l) coercion by ordering Farr off the premises and endeavoring to provoke a fight. On August 10, Respondent again wrote to its employees, saying that the Teamsters was, after several years, back again with its old promises. "Every time in the past Merchants' employees have refused to sign enough cards or have voted the Teamsters down." (Emphasis supplied.) The employ- ees were urged to read the authorization cards carefully before signing, and to take a look at the Union's record and compare its promises with Merchants' performance. "Only once in 17 years, and that was during the worst business recession (Mayo and Clark) signed does not appear. Patterson was asked only if he had knowledge of other signers "in 1976." s According to Secretary-Treasurer Roberson, Merchants assumed control of Mississippi Freight in 1974, when the latter company was on the verge of bankruptcy. Roberson referred to "a number of changes made at that time ... many employees that were terminated, a number of them quit because of transfers that were going to be necessary to bring that truckline out of a losing proposition .... " There are no specifics on this, but it seems clear that actual control long preceded the final merger approval. 678 MERCHANTS TRUCK LINE since the depression, has Merchants failed to give its people a full work week." (This appears to refer to 1974. See below.) The letter ended with the statement that there was no need to sign cards in order to work at Merchants. This letter, of course, is permissible under Section 8(c). But the sentence emphasizing the Company's record in providing a full workweek is in marked contrast to the recent discharges attributed to the merger, and the refusal to transfer employees who requested transfer, particularly as the record shows that in the winter of 1974-75 a 4-day week was instituted at Louisville when business temporarily declined there. Layoffs were avoided and Manager Patterson helped those who wanted to work a fifth day to get work at a sawmill. The Administrative Law Judge recounted this earlier accommodation of the Louisville work force as a whole. However, he erroneously found that in 1976 none of the four dischargees who were nonrelatives of management asked Patterson for assistance in finding work.9 The record contains specific testimony to the contrary by three of them; the fourth, Sanders, did not testify. Each of the three inquired about a transfer to another terminal, without a success. Driver Mayo's testimony that there were two "new" men at the Philadelphia terminal the following January was referred to, but quickly disposed of by the Administrative Law Judge's conclusion: "This had nothing to do with Louisville." But the record shows that whether there were in fact added employees at Philadelphia had possible significance: these two Mississippi towns are only 25 miles apart and Respondent had testified, and in its brief asserted, that the existence of a night crew at Philadelphia, but not at Louisville, was a factor in diverting cargo to Philadelphia and dis- charging the Louisville employees. The transfers for which the dischargees asked did not specify a terminal, and no other terminal was closer to Louisville than was Philadelphia. 1° Having in mind the context here of coercive interrogation, threats, the no-solicitation rule with the advent of union organizing, the granting of benefits and the discriminatory suspension of the foremost employee-organizer, along with threats to discharge him and the attempt to provoke him to I Patterson, responding to a question whether any had asked to be recommended to the sawmill this time (where Patterson's son was again working), answered: "Not to the sawmill, no sir." 'o The Administrative Law Judge obviously credited Mayo on the issue of Respondent's knowledge that Rodgers, McCullough, Sanders, and Haggard were trying to bring in a Union. He did not credit or discredit Mayo about the new hires at Philadelphia. but simply missed the possible relevance of that testimony, and he made no reference at all to Mayo's testimony that, "within the next month or so after" the discharges. "more" freight was stored at Louisville "in the trailers and on the dock" and employees there "had more than they could do." As a longhaul driver. Mayo had occasion to observe staffing and workload at Philadelphia and Louisville His testimony was not effectively rebutted. Although not in itself fight in ordering him off the premises-essentially as found by the Administrative Law Judge-as well as the disparate treatment of laid-off employees at Louisville as compared with 1974, it is plain that support of the Union was the real reason for the four discharges here litigated. The Administrative Law Judge viewed these discharges as the major issue but failed to see significance in their timing. We conclude the four drivers at Louisville, known to have signed cards early in the campaign, were selected to stop the campaign before it progressed too far," as an example to drivers at the other terminals in the system of what could happen if they signed cards. Almost simultaneously Respondent granted substan- tial wage increases to be effective in the near future 12 and sick benefits and improved bidding procedures, thus by its unfair labor practices delaying the filing of the petition until October and contributing to the overwhelming defeat of the Union in December, after the hearing in this case began. Thus, we find that the four drivers were discriminatorily discharged and Preston Farr discriminatorily suspended in violation of Section 8(a)(3) and we shall order reinstatement and backpay for them. Backpay for the above discriminatees shall be computed on a quarterly basis in the manner established by the Board in F. W Woolworth Company, 90 NLRB 289, 291-294 (1950), with interest thereon as prescribed by the Board in Florida Steel Corporation, 231 NLRB 651 (1977). 13 ORDER Pursuant to Section 10(c) of the National Labor Relations Act, as amended, the National Labor Relations Board hereby orders that the Respondent Merchants Truck Line, Inc., New Albany, Mississip- pi, its officers, agents, successors, and assigns, shall: 1. Cease and desist from: (a) Discouraging membership in Highway and Local Motor Freight Employees, Local Union No. 667, affiliated with International Brotherhood of Teamsters, Chauffeurs, Warehousemen and Helpers of America, or any other labor organization of its employees, by discharging or suspending employees decisive of the issue, it supports the discriminatory treatment of the four dischargees, and we credit it. " Their low seniority at the terminal would normally tend to negate this conclusion. Here, as the economic defense for the layoff is not persuasive on this record while the intent to stop the Union is, it is fair inference that the seniority factor was too tempting for the Respondent to ignore multiple discharges as a technique to slow down the campaign. 12 The Administrative Law Judge noted the saving of "S4.800 per month in salary" incident to the Louisville discharges. Subject to allowing for an unknown number of part-time employees, the added cost of the two $5 weekly raises to full-time employees could have amounted to $3,770 a week in the unit of 377, or as much as $4,500 in the total employee complement. 13 See. generally. Isis Plumbing & Heating Co., 138 NL RB 716 (1962). 679 DECISIONS OF NATIONAL LABOR RELATIONS BOARD because of their membership in or activities in favor of the above-named or any other labor organization. (b) Threatening to discharge employees; interro- gating employees concerning their union activities and creating the impression of surveillance; ordering employees to cease soliciting union membership during their total paid hours and attempting to discourage solicitation by ordering employees off the premises immediately after work and attempting to provoke them to fight; granting wage raises, paid sick leave benefits, and bidding rights in work assign- ments, all for the purpose of dissuading employees from their union activities. (c) In any other manner interfering with, restrain- ing, or coercing employees in the exercise of their rights to self-organization, to form, join, or assist the above-named labor organization, or any other labor organization, to bargain collectively through repre- sentatives of their own choosing and to engage in other concerted activities for the purpose of collec- tive bargaining or other mutual aid or protection, or to refrain from any and all such activities. 2. Take the following affirmative action necessary to effectuate the policies of the Act: (a) Make Preston Farr whole for any loss of pay or any benefits he may have suffered by reason of the Respondent's discriminatory suspension of him. (b) Offer Virgil Rodgers, Jimmy Haggard, Ed McCullough, and Larry Sanders full reinstatement to their former jobs, discharging if necessary any employees hired to fill their jobs, or, if their jobs no longer exist, to substantially equivalent positions, without prejudice to their seniority or other rights, and make them whole for any loss of earnings by reason of their discharge and Respondent's discrimi- nation against them in the manner set forth in this Decision. (c) Preserve and, upon request, make available to the Board or its agents, for examination and copying, all payroll records, social security payment records, timecards, personnel records and reports, and all other records necessary to analyze the amount of backpay due under the terms of this Order. (d) Post at its place of business, including all terminals in the State of Mississippi copies of the attached notice marked "Appendix." 14 Copies of said notice, on forms provided by the Regional Director for Region 26, after being duly signed by Respondent's authorized representatives, shall be posted by the Respondent immediately upon receipt thereof, and be maintained by it for 60 consecutive days thereafter, in conspicuous places, including all places where notices to employees are customarily posted. Reasonable steps shall be taken by Respon- dent to insure that said notices are not altered, defaced, or covered by any other material. (e) Notify the Regional Director for Region 26, in writing, within 20 days from the date of this Decision, what steps the Respondent has taken to comply herewith. 14 In the event that this Order is enforced by a Judgment of a 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 Judgment of the United States Court of Appeals Enforcing an Order of the National 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 discourage membership in Highway and Local Motor Freight Employees, Local Union No. 667, affiliated with Internation- al Brotherhood of Teamsters, Chauffeurs, Ware- housemen and Helpers of America, or in any other labor organization of our employees, by discharging or suspending any of our employees from work because of their membership in or activities in favor of the above-named or any other labor organization. WE WILL NOT threaten to discharge our employees because of their union activities. WE WILL NOT interrogate our employees con- cerning their union activities or the union activities of fellow employees, or create the impression of surveillance of those activities. WE WILL NOT order our employees to discon- tinue solicitation activities in favor of the Union while they are on the clock. WE WILL NOT attempt to discourage union solicitation by ordering employees off the prem- ises immediately after work and attempting to provoke them to fight in so doing. WE WILL NOT grant improved conditions of employment, such as wage increases and paid sick leave benefits, for the purpose of inducing employees to discontinue union activities. WE WILL NOT grant seniority privileges in bidding for truck routes to influence employees against union activities. WE WILL NOT in any other manner interfere with, restrain, or coerce our employees in the exercise of their rights to self-organization, to join or assist Highway and Local Motor Freight Employees, Local Union No. 667, affiliated with International Brotherhood of Teamsters, Chauf- feurs, Warehousemen and Helpers of America, or any other labor organization, or to engage in any other concerted activities for the purpose of collective bargaining or other mutual aid or 680 MERCHANTS TRUCK LINE protection, or to refrain from any and all such activities. WE WILL offer Virgil Rodgers, Jimmy Haggard, Ed McCullough, and Larry Sanders full reinstate- ment to their former jobs or, if those jobs no longer exist, to substantially equivalent positions, without prejudice to their seniority or other rights and privileges and WE WILL make them whole for any loss of earnings by reason of our discrimina- tion against them, plus applicable interest. WE WILL pay Preston Farr for any loss of earnings he may have suffered as a result of our discrimination against him, plus applicable inter- est. MERCHANTS TRUCK LINE, INC. DECISION STATEMENT OF THE CASE THOMAS A. RIcci, Administrative Law Judge: A hearing in this proceeding was held at New Albany, Mississippi, on December 1, 1976, and on January 4, 5 and 6, 1977, on complaint of the General Counsel against Merchants Truck Line, Inc., here called the Respondent or the Company. The complaint issued on September 30, 1976, upon separate charges filed by Preston Farr, on August 11, 1976, and by Virgil Rodgers on August 31, 1976. The principal issue presented is whether the Respondent unlawfully discharged four employees in violation of Section 8(a)(3) of the National Labor Relations Act, as amended, and committed certain independent violations of Section 8(aX)(I). Briefs were filed by the General Counsel and by the Respondent. Upon the entire record and from my observation of the witnesses, I make the following: FINDINGS OF FACT I. THE BUSINESS OF THE RESPONDENT Merchants Truck Line, Inc., a State of Mississippi corporation with its home office and principal place of business in New Albany, Mississippi, is engaged in the interstate transportation of freight. During the past 12 months it derived gross revenue in excess of $50,000 for furnishing transportation services directly across state lines in interstate commerce. I find that the Respondent is engaged in commerce within the meaning of Section 2(6) and (7) of the Act. II. THE LABOR ORGANIZATION INVOLVED I find that Highway and Local Motor Freight Employees Local Union No. 667, affiliated with International Brother- hood of Teamsters, Chauffeurs, Warehousemen and Helpers of America, is a labor organization within the meaning of Section 2(5) of the Act. mII. THE UNFAIR LABOR PRACTICES The Respondent does a trucking business in and out of 15 terminals in various cities of Mississippi; it uses over- the-road (longhaul) drivers, pickup and delivery (local or in and close to the city) drivers, and inside warehousemen in some locations. It has a total of about 450 employees. On or about the first of May 1976 some employees started a movement towards joining Teamsters Local 667; authori- zation cards were passed around, signatures were solicited, and, on October 6, 1976, a representation election petition was filed with the Board. The Regional Director issued a Direction of Election on November 22, a Board-conducted election was held on December 10, and the vote was 77 for and 211 against union representation. On June 30, 1976, four pickup and delivery drivers working at the Company's Louisville terminal were dismissed. All four had signed union authorization cards, and the terminal manager knew this. The complaint alleges the discharges were retaliation for the men's prounion activities, and in each case a violation of Section 8(aX3). An affirmative defense of discharge for cause is advanced. The Respondent asserts the layoffs were caused solely by an economic step justified and timed at that very moment by concurrent finalization of its merger, as approved by the Interstate Commerce Commission, with another trucking company called Mississippi Freight. Starting on July 13, and for the 2 following days, Preston Farr, a longhaul driver out of the Respondent's New Albany terminal, was suspended from work - his direct request for permission to come to work each of those days simply refused. Farr was active in the prounion campaign, and the complaint alleges the denial of work for those 3 days was a discrimination in employment imposed upon him because of such activities, and therefore a violation of Section 8(aX3) of the Act. The Respondent simply denies illegal motive here. There are also several allegations of coercive statements, such as grants of improvements in working conditions, called independent violations of Section 8(a)(1). That during the organizational campaign Respondent did give certain raises, did promise certain bonuses, and did announce changes in conditions of employment to the advantage of the employees is clear and indeed admitted by the Respondent. The explanations advanced as to each of these seemingly timely grants to the employees is one thing, and they will be considered below. But it does seem clear the Respondent was opposed to the idea of its employees having a union, if only because there is uncontradicted testimony to that effect. There had been earlier union campaigns and elections which had also failed to establish any exclusive bargaining agent. But apart from these allegations of coercive conduct said to have been directed at the total employee complement generally, i.e., with no suggestion of animus aimed at any individual employees, and even the 3-day suspension of Farr, which at best would require a make-whole remedial order calling for 3 days' backpay, the major issue litigated at the hearing involves the outright discharge of the four men at the end of June. As to these, the issue is best described as an inference, or a circumstantial evidence case. 681 DECISIONS OF NATIONAL LABOR RELATIONS BOARD A. The 3-day Suspension On July 11 Farr, a long-haul driver was denied employment - in effect suspended for 3 full days - and the suspension is alleged to have been imposed because of his personal participation in the union campaign. He was a very active solicitor of union cards, appealing for signa- tures in person and through the mail; he gathered about 40 signed cards altogether. In May, Paul Kitchens, vice president of the Company, reminded Farr that at his initial hiring he had been told to bring "any trouble" he might have to the vice president, and asked what had Kitchens done to the employees "to make me do what I was doing." When Farr explained it was all because of problems on the job and not enough pay, Kitchens answered the men were "over paid," and "that he could make it so rough on me I wouldn't want to work for them." Farr then said he "was expecting that before I started my union activity," and that he would take the matter to the "Labor Board when it was all over," and Kitchens said, "I know that." Paul Kitchens did not appear as a witness. I credit Farr and find that the vice president threatened him with discharge because of his union activity and thereby committed an unfair labor practice in violation of Section 8(a)(1) of the Act. Sammy Coffey, 9 years a road driver, testified that shortly before Farr's suspension Ben Allen Kitchens, the president of the Company, one day said to him, "What is this shit I hear about you and Booker [Farr]? . . . and he said that he had heard the rumor that Booker and I was pushing the union . . he told me he would let me come to New Albany and make a road driver out of me ... he told me he had beat it, I believe it was either three or four times.... He said he had beat it either three or four times. ... And he said if he beat it this time, he was going to fire my ass . ... The only thing I remember is he said I wouldn't work in union county." He told me he would sell it and take his million dollars and go to the house with it. Ben Allen Kitchens also did not testify and I therefore believe Coffey's testimony. Accordingly, I find that by interrogating Coffey about his union activities and by threatening to discharge him because of such activities, the president of the Company also violated Section 8(a)(l) of the Act. The following month James Roberson, another high official of the corporation, talked to Farr about his now widely known union activities in soliciting union cards. After telling the driver he had been reported for talking up the Union at "three different terminals," Roberson said Local 667 was not going to tell the Company what wages to pay, and then ordered Farr to cease all activities in favor of the Union while he was on the clock or while the other employees were on the clock. Roberson, as a witness, recalled this conversation and his instructions to Farr. I think the testimony of both Farr and Roberson, plus a document in evidence, does prove Farr was ordered to stop the union activity when "on the clock," meaning all the time for which he was paid. There was no established rule against solicitation while at work, and the idea of stopping solicitation of any kind never arose until the union campaign started. I agree with the General Counsel that this talk by Roberson to Farr was coercive, and a violation of the statute, because it told the employee that manage- ment was watching his activities, and because it imposed too broad an unprecedented limitation upon his right to self-organization. Summit Nursing and Convalescent Home, Inc., 196 NLRB 769 (1972); Florida Steel Corporation, 215 NLRB 97 (1974). For the week of July 12 through 16, Monday through Friday, Farr was scheduled to start work in the evening, somewhere between 7:15 and 8:15. He was sick Sunday, the 11 th, and the next day his wife called the office to say he could not work that evening because he still did not feel well. She advised the terminal manager her husband would call in the next day to say whether he could work Tuesday evening. At 6 o'clock Tuesday Farr called and after saying he was coming in on time was passed to Ben Allen Kitchens on the phone. Kitchens told him, "We will get somebody to run for you tonight." When Farr said he needed to work, Kitchens said, "Well, I know you do, but we got somebody to run for you last night. We can get somebody to run for you tonight." Farr then asked, "What about tomorrow night?," and Kitchens came back with: "Well, I don't care. .. You can come in if you want to, and if you don't want to, you don't have to." The next day, Wednesday, Farr called again, ready to work; now Whitten, the dispatcher, told him no and, when asked why, said he had no reason. Worried, Farr called again in 10 minutes, to speak to higher officials, but could not contact anyone. This time the dispatcher told him "you asked for a reason a while ago when I talked to you . . . all I know is they told me to give you a couple of days to recuperate." With this, Farr went directly to the terminal in person, again offered to work, but the dispatcher would not let him. After a while, Farr telephoned Ben Allen Kitchens at his home, and asked exactly what was his status. Kitchens answered he was not fired, he was not laid off, but "[y]our status is, until you can get to work on Monday night, we can do without you. We can get somebody to run your run for you." When Farr offered to come in the next night, Thursday, Kitchens said: "You sorry son of a bitch, you didn't have a job, couldn't get a job. I gave you a job, and then you go behind my back and do me this away." Farr had the same experience on Thursday; he came timely and ready to work but was refused permission. On Friday evening he resumed his regular schedule. I find Farr was suspended because of his prounion activities, and that the discrimination in employment was therefore a violation of Section 8(a)3). There is no contradiction of any of the foregoing testimony of clear animosity against him personally, including the threat of retaliation preceding the suspension. The only exculpation suggested by the Respondent is that the reason Farr had been ill that Sunday was not a nice one, or that he had kept some company the Company did not like. There is no evidence to prove any such defamatory insinuation. And certainly no rational basis was offered as to how the reason for Farr's indisposition, whatever it may have been, could have had any relationship with his work duties later when he was perfectly well. Nor, indeed, is there any indication he had ever been anything but a perfectly well behaved employee throughout his 5 years of employment with the Respondent. 682 MERCHANTS TRUCK LINE B. The Discharges There is no direct evidence of illegal motive in the discharges on June 30 of the four men named in the complaint. An ICC merger of the Respondent and Mississippi Freight was first temporarily approved by the Federal Agency in 1974. From then on the Respondent operated Mississippi Freight as though it owned it, albeit keeping all records of operations separate. No one questioned the assertion at the hearing by the Respondent's officials that whatever "temporary authority" meant, there was always the possibility it could be revoked by the ICC, and that in such event any temporary changes that might be made in the joint operations by the Respondent would have to be undone, and the old, separate operations - terminals, truck routes, and all - would have to be reestablished. Late in May the ICC ruled the merger would be final, and it set June 30 as the effective date for formal and legally binding conclusion to the merger proceeding. When informed that their services would no longer be required, each of the four men was told by the terminal manager that the reason was the now legal finality of the generally known pending merger. Also, consistent with the effective date of the final merger order, the Respondent that very week made certain changes in its routes, combining some and shortening others - all part and parcel of its now absolute power to "merge" the trucking business, and routes, of the two formerly separate compa- nies. These facts, of course, are but a limited and selected part of what appears in the entire record. But while the phrase "primafacie case" is not normally applied to an affirmative defense of discharge for just cause advanced by a respondent in a complaint proceeding before the Board, these facts, directly related to the now questioned dis- charges, serve to illustrate why the case in support of the complaint is an indirect one, or what can properly be called an inference case. The theory of complaint is that if other facts, which do exist, and which can reasonably be said to have at least a possible connection with the discharges, be considered, the ultimate conclusion must be that the true reason for the dismissals was other than the one advanced at the time of the events and at the hearing in this proceeding. And, of course, the argument then becomes that the real, hidden reason was implementation of union animus against the four men in question. Here, as in all circumstantial evidence cases, there are facts pointing one way and facts pointing another way. But what must be kept in mind in Board proceedings is that when it comes to judging the validity of the final complaint allegation in an 8(a)(3) case - pinpointed and personal illegal motive - it is not a matter of weighing the pros against the cons and finding in favor of where the balance tilts. The test, instead, is whether the complaint is proved "by a preponderance of the substantial evidence on the record as a whole," N.LR.B v. Glenn Raven Silk Mills, Inc., 203 F.2d 946 (C.A. 4, 1953). And eventually, if the scale is evenly balanced, there cannot be a positive finding of illegal conduct. (I) The indicia in favor of the complaint start with the fact that all the four men named in the complaint signed union cards. One of them, Jimmy Haggard, testified he successfully solicited signatures to four more cards, although he said he did this away from the plant or from any terminal where the men worked. (2) A more important fact is that Alan Patterson, manager of the Louisville terminal and the man who selected which of the men there from the total complement should be dismissed, knew these four had signed union cards. William Mayo, a longhaul driver, testified that Patterson one day asked him "when I had heard about the union, and I told him. . . . Alan said that he just couldn't understand why anybody would want to bring a union in Merchants Truck Line, and especially, those four men at Louisville... that had signed cards .... " When Mayo asked did Patterson really believe Louisville men had signed, the manager, still according to Mayo's testimony said: "Yes, I knew there are . . . Jimmy Gale Haggard, Virgil Rodgers, Larry Sanders and Ed McCullough signed a card." Patterson also told Mayo that day: "that if the men down there had any complaints, he wished they could come to him .... " Testifying after Mayo, Patterson admitted the wife of another driver had told him of four men who had signed in Louisville, but he added that he knew of others at that terminal who had signed union cards. In fact, Patterson's knowledge, with respect to these four particular men, is conceded in the Respondent's brief. (3) Another fact pointing a finger of suspicion is the matter of timing. Both Patterson and the Respondent's secretary-treasurer, James Roberson, said there had been talk of changing routes many months before June 1976. Indeed they admitted the very route changes had been planned and decided upon much earlier. By June the union campaign was in swing. The fact it waited so long to do what would have made economic sense even earlier suggests at least the further possibility of hidden motive. In fairness, however, it must also be noted that nothing of moment in the general organizational campaign happened at that particular time; the union activity ran on from May through the fall. The first overt act came in October, when the election petition was filed, so that it cannot be said June or June 30 had any particular significance. (4) The General Counsel relies strongly on one other clear fact that in my considered judgment does not add any significant weight to the suggested inference of illegal motive in June 1976. During an 8-week period from the beginning of December 1974 through the end of the following January, there was a temporary decline in the volume of work at this same Louisville terminal. There were then, as there were a year and a half later, 10 pickup and delivery men stationed there. In order to spread the unavoidable short-lived economic hurt equally among all the terminal employees, and in order to avoid outright layoff of any of them, it was decided, with the agreement of the total group, that all of them would work only 4 days each week, thereby avoiding the otherwise necessary full- time reduction in force. And everyone in fact took I day off from work each week. On or about the first week of February 1975 everybody was back at full-time work. At that time Patterson, the terminal manager, even helped those men who so desired to find work during their I day per week of idleness at a nearby sawmill. Some took advantage of the opportunity and some did not. 683 DECISIONS OF NATIONAL LABOR RELATIONS BOARD In contrast to what had happened 18 months earlier, in June 1976 Patterson did not keep everybody on a short workweek basis and he did not assist the four men named in the complaint to find work at the sawmill, or anywhere else. But more indicative of evil than all this, according to the General Counsel, Patterson did help the fifth man who was discharged - and who was not mentioned in the complaint - the one man who can be presumed, perhaps, not to have signed a union card. As stated above, it is all like a revolving top. The reduction in available work in 1976 resulted from what was a permanent change of operations - a permanent change of truck routes and therefore of loads to be handled at this terminal; it was not a condition expected to be short lived. Moreover, in 1974-75, when 10 production employees (excluding Rebecca Patterson) went from 5 to 4 days of work weekly, it meant a 20-percent reduction in work. When five men were released later, there was a total of 11 pickup and delivery drivers; McCullough, an old Mississip- pi truck company man still nominally on that company's payroll, was discharged at the time. This means the volume of work went down 45 percent, not only 20 percent as the first time. This also means there would have been only 3 days of work per week for each man had no one been discharged. Can 10 men be relied on to hold faithfully to jobs that only provide 3 days of work each week? Next: None of the four unioneers asked Patterson for assistance in finding work. Next again: One man asked Patterson, in the discharge conversation, would he give a good recom- mendation when the employee sought work elsewhere, and Patterson agreed to do so. In fact, the discharged employee gave Patterson's name to a company named Wilson; Patterson was asked by the prospective employer about the applicant's desirability; Patterson gave a good recommen- dation; and the man got the job. And finally, the fifth employee, the man who presumably did not join the union, and whom the manager did help find work, is Patterson's son! Against all the foregoing, there are unquestioned facts of record lending support to the asserted defense, certainly weakening the suggested inference of unlawful purpose said to arise from the first group of facts. (I) The Company did make a change in its routes that very weekend, and the testimony of its officers that the change was intended to, and in fact did, lessen the need for pickup and delivery work at the Louisville terminal is convincing. All sorts of company records were produced by the Respondent under subpena, but nothing was offered to give the lie to the conclusionary, it is true, statements of the managers to this effect. (2) And it is also a fact that June 30 was the critical moment when the merger became final and legally safe for the Respondent. Roberson, of the Company, explained how under ICC rules temporary permits to merge compa- nies can be voided. His testimony that route changes made under temporary decision, if later canceled and switched back, could be of great inconvenience, is persuasive on its face, and again unassailed on the record. (3) Each man was told in the discharge conversation that the reason was the change of routes occasioned by the two company merger. McCullough returned several weeks later to ask Patterson if the union activity was the reason for the discharge and the manager said not so; this before any unfair labor practice charges were filed. (4) A positive monetary saving was effectuated. Rober- son testified that the shortened routes resulted in a saving in equipment, gasoline, and repairs. No one questioned this conclusionary statement. And his repeated testimony that the changes resulted in a cash saving of about $4,800 per month in salary is supported by documentary proof, again not questioned, that no one was hired to replace any of the five men throughout the next 7 full weeks, and that from then on through the week ending November 24 only one man was added to the payroll. (5) The foregoing statement of facts rests upon summar- ies received in evidence and taken from the company payroll records. Several witnesses testified about having seen employees from other terminals working at Louisville after the discharges. I do not deem their total testimony sufficient to give the lie to the payroll records, as the General Counsel suggested at the hearing. Mayo testified that at the time of the hearing, in January, there were two new men at the Philadelphia terminal. This had nothing to do with Louisville. A longhaul driver, Rhodes, gave conflicting testimony about seeing employees from other terminals at Louisville; "a month or a month and a half' after the layoffs, "two on different occasions," "just before Christmas, maybe the latter part of November," one of the occasions being while Louisville people were on vacation. With the regular company payroll records available for inspection by the prosecution, I deem this as no more than normal emergency work incidental to this kind of business. (6) The selection of employees to be discharged at the Louisville terminal that day was based strictly upon seniority. And when the Company for the first time 5 months later had need to add a full-time man at Louisville, it recalled Rodgers, the first entitled to recall according to seniority, and a known union card signer. (7) There were others at the Louisville terminal who had also signed union cards; among them, according to the testimony of Mayo, were Mayo, Clark, and Rhodes. Haggard, also discharged, said he too "understood there were others who had signed." This means that of the 10 pickup and delivery men at least 7 had signed. The positive proposition that the remaining two (leaving young Patter- son out of it for the moment) had not signed, is, of course, not proved. If the manager knew the identity of some of the signers, can one be sure he did not also know the names of others? More, even if in fact only 7 of 10 had signed, and 5 had to go, it means that a random hand, free of illegal motive, would have picked up at least 3 unioneers, and as likely 4. But it has been held of old that overt prounionism does not confer immunity from economic adversity. (8) About this question of who signed union cards, in its brief the Respondent points to still another relevant fact, which, albeit outside the record, nevertheless merits consideration. At the time of the election in December there were 377 eligible voters. This means, under fixed Board rules, that at least 30 percent - or 113 - had signed authorization cards, else the Board would not have conducted the election. At the hearing the General Counsel argued that the Company could have effectuated what 684 MERCHANTS TRUCK LINE savings it sought by making changes in truck routes other than the ones it did make. The point here was to maintain that the Respondent deliberately chose the Louisville terminal as the place to improve its general operations for the very reason that it knew the identity of the four men who had signed cards there.' But the fact is that had it made a like move elsewhere it probably would have caught unioneers anyway. If the fact of these four men having signed, and the fact of the Respondent having fired them, be taken out of context, one picture emerges. But if all related facts be considered, the picture of probability changes. (9) The Respondent was very generous when it dis- charged these men. In addition to paying each one, at the moment of discharge, for the workweek just completed, and for the prior week - pursuant to the established practice, it gave each one one check for accrued vacation time and another check as a 2-week severance pay gift. There was no established practice of paying severance pay in this Company. And, from the testimony of McCullough, a dischargee: "They didn't owe me no vacation at the time, no, sir." An employer driven by a sense of vengeance against employees who try to bring a union into the company does not go out of its way to make such substantial gifts to departing workmen. Unless it be the employer who - as in an old Board case - as a parting gift to an old employee who had instigated the union movement gave him 30 new Kennedy half dollars. The Biblical 30 pieces of silver? All things considered, and suspicion apart, I find the record evidence insufficient to prove the complaint allegation that the Respondent discharged these four employees in violation of Section 8(a)(3) of the Act. On June 30, 1976, in a letter addressed to all employees, the Respondent both welcomed the old Mississippi Freight group into the Merchants Truck Company and announced two new benefits in the working conditions of the total group. (I) Beginning of January 1, 1977, all full-time employees would automatically be entitled to 5 days sick leave annually, and if they did not use the time during any I year they would be paid for the 5 days, or any portion thereof, in cash at the end of the year. (2) On July 5, all employees would receive a $5 weekly raise, and on August 30, an additional $5 increase. The sick leave benefit was absolutely unprecedented and the Respondent's explanation of its timing is totally unconvincing. It consists of no more than a statement that the new system is fairer to conscientious employees, and that the matter had been under consideration for some I After the close of the heanng. as an obvious afterthought, the General Counsel for the first time made the assertion that one of the truck route changes the Respondent did make violated the terms of the merger order issued by the ICC. After asking to reopen the record. he moved for belated receipt into evidence of two official documents from the public record files of the ICC in Memphis. The Respondent filed objections to the proposed exhibits. During the hearing a number of official documents relating to the merger were placed into evidence, but no specific explanation either then or later has been offered by the General Counsel as to how they help prove the merits of the complaint. Without clarification, he simply now states the conclusion that the Respondent never had "authority" to make one of the two truck routes changes that was first established at the end of June. I deny the motion to now open the record for receipt of the two further time. It has long been held that substantive improvements in conditions of employment timed with organizational activities known by the employer have an illegally coercive effect upon the employees. N.LRKB. v. Exchange Parts Co., 375 U.S. 405 (1964). I therefore find that this announce- ment of paid sick leave constituted a violation of Section 8(a)(1) of the Act. As to the two $5 wage increases announced for the month of July and August, I make no finding of illegality. It was an established practice of the Respondent to grant such wage raises from time to time over the years. It gave three $5 raises in 1973, two $5 raises in 1974, a $10 raise in 1975, and it had already given two $5 raises in 1976, one in March and another in April. A company official testified in explanation that some years are financially better than others for the Company, and that 1976 was a relatively good one. Here the timing is not as significant as in the case of the unprecedented sick leave benefit announce- ment. In his brief the General Counsel says the June 30 announcement of these particular raises came "with advent of open unionization," and calls attention to the fact that in prior years raises were given in August or September. But if the raises had been announced in September they would have been even closer to the time of "open" union activity, the filing of the election petition in October. Moreover, mounting inflation cannot be totally ignored. I do not think the total picture of this case suffices to prove an unfair labor practice with respect to these raises. During this same period the Respondent announced another change in conditions of employment. Unlike any time in the past there would now be a bid system for longhaul drivers. In case of a vacancy at any terminal, or a desire on the part of any driver to change location. selection for filling jobs would be based upon a bidding system where the man holding greatest seniority company- wide would be preferred. Again, the Respondent says no more than that the employees had long desired such an arrangement, that the Company had long planned to make the change, that it had been studied but not implemented earlier because a special consultant for over a year had been too busy on other things. I find this explanation insufficient to offset the necessary implication to the drivers that this was a change intended at that particular time to influence their attitude on the question of the Union and to dissuade them from favoring the organiza- tional campaign. I find that the announcement then of the new bidding system was a further violation of Section 8(a)(l) of the Act. ICC documents into evidence, and/or I reject the two proposed exhibits. I ) They are not newly discovered evidence. As Government documents of which any tribunal can take official notice, they were always available to the General Counsel, particularly in the light of the fact that from first to last all parties argued their positions from the fact of the merger. (2) Because official notice may be taken of both documents, there is no necessity for making them a part of this record. (For possible convenience they had been placed in the rejected exhibit file.) (3) Whether or not the Respondent exceeded its ICC authority at any time cannot be litigated and determined in this proceeding. (4) I do not read the documents already placed In evidence during the hearing as making it unlawful for the Respondent to have established the truck route now attacked by the General Counsel, after June 30, 1976. 685 DECISIONS OF NATIONAL LABOR RELATIONS BOARD IV EFFECT OF THE UNFAIR LABOR PRACTICES UPON COMMERCE The activities of the Respondent set forth in section III, above, occurring in connection with the operations of Respondent described in section I, have a close, intimate, and substantial relation to trade, traffic, and commerce among the several States and tend to lead to labor disputes burdening and obstructing commerce and the free flow of commerce. CONCLUSIONS OF LAW I. By suspending Preston Farr from work the Respon- dent has engaged in and is engaging in unfair labor practices in violation of Section 8(aX3) of the Act. 2. By the foregoing conduct, by threatening employees with discharge because of their union activity, by interro- gating employees concerning their union activities, by ordering employees to cease soliciting membership in the Union at any time or place during their paid hours, by granting paid sick leave benefits to influence employees in their union activities, and by granting seniority rights in the bidding for work assignment, the Respondent has engaged in and is engaging in unfair labor practices within the meaning of Section 8(aX)() of the Act. 3. The aforesaid unfair labor practices are unfair labor practices within the meaning of Section 2(6) and (7) of the Act. [Recommended Order omitted from publication.] 686 Copy with citationCopy as parenthetical citation