Morse BrothersDownload PDFNational Labor Relations Board - Board DecisionsSep 6, 1957118 N.L.R.B. 1312 (N.L.R.B. 1957) Copy Citation 1312 DECISIONS OF NATIONAL LABOR RELATIONS BOARD F. W. Morse , W. F. Morse and Joseph D. Morse d/b/a Morse Brothers, Harrisburg Sand and Gravel Co., and Lebanon Sand and Gravel Co. and Teamsters Local Union No. 324, Interna- tional Brotherhood of Teamsters , Chauffeurs, Warehousemen and Helpers of America , AFL-CIO and Carroll W.- McLain and Harold Bond , Charging Parties . Cases Nos. 36-CA-757 and 36-CB-137. September 6, 1957 DECISION AND ORDER On February 5, 1957, Trial Examiner David F. Doyle issued his Intermediate Report in the above-entitled proceeding, finding that the Respondents had engaged in and were engaging in certain unfair labor practices, and recommending that they cease and desist there- from and take certain affirmative action, as set forth in the copy of the Intermediate Report attached hereto. The General Counsel and the Respondent Union filed exceptions to the Intermediate Report. No other party filed exceptions. Pursuant to the provisions of Section 3 (b) of the National Labor Relations Act, the Board has delegated its powers in connection with this proceeding to a three-member panel [Chairman Leedom and Members Murdock and Rodgers]. The Respondent Union's request for oral. argument is hereby denied as the record, including the exceptions, in our opinion, adequately presents the issues and positions of the parties. The Board has reviewed the rulings made by the Trial Examiner at the hearing and finds that no prejudicial error was committed. The rulings are hereby affirmed. The Board has considered the Inter- mediate Report, the exceptions, and the entire record in the case, and hereby adopts the findings, conclusions, and recommendations of the Trial Examiner with the following modifications. 1. The Trial Examiner incorrectly found that during the 12-month period preceding the date of the issuance of the complaint, the Re- spondent Company received more than $236,000 from the State of Oregon and the United States Bureau of Public Roads for bridge and road building, and paving services, rendered in connection with the construction and repair of State highways, United States Forest Serv- ice access roads, and other channels of interstate commerce, located within the State of Oregon. We find, as the record shows, that, during this period, the Company received in excess of $100,000 for services and materials in connection with construction and repair of such channels of interstate commerce as State and Federal roads, exclusive of United States Forest Service access roads.' 'Madison County Construction Co., 115 NLRB 701; Whippany Motor Co., Inc., 115 NLRB 32. 118 NLRB No. 1.72. MORSE BROTHERS 1313 2. We find no merit in the Respondent Union's contention that the Trial Examiner acted in an arbitrary and capricious manner and showed bias and prejudice in that he made "grossly untrue findings." It is true that the Trial Examiner overstated the amount which each employee was required to pay the Respondent Union under the terms of the union-security contract found to be illegal. However, this was not material to any issue in the case and does not establish that the Trial Examiner was arbitrary or prejudiced or otherwise unfair.2 ORDER Upon the entire record in the case, and pursuant to Section 10 (c) of the National Labor Relations Act, as amended, the National Labor Relations Board hereby orders that : 1. The Respondent Union, Teamsters Local Union No. 324, Inter- national Brotherhood of Teamsters, Chauffeurs, Warehousemen and Helpers of America, AFL-CIO, its officers, representatives, agents, successors, and assigns, shall : (a) Cease and desist from : (1) Giving effect to any of its agreements with the Respondent Company, dated September 10, 1956, or to any earlier oral agreements, or to any extensions, renewals, modifications, or supplements thereof, unless and until the Respondent Union has been certified by the Na- tional Labor Relations Board as the exclusive representative of said Respondent Company's employees in an appropriate unit, and then only if the agreement to be given effect conforins to the provisions of the National Labor Relations Act. (2) Causing or attempting to cause the Respondent Company, its agents, successors, or assigns, to discriminate in any manner against employees in violation of Section 8 (a) (3) of the Act. (3) Restraining or coercing in any other way employees of said Respondent Company, its successors or assigns, in the exercise of the rights guaranteed in Section 7 of the Act, except to the extent that such rights mnay be affected by an agreement requiring membership in a labor organization as a condition of employment, as authorized in Section 8 (a) (3) of the Act. (b) Take the following affirmative action, which the Board finds will effectuate the policies of the Act : (1) Post in conspicuous places in its business offices in the Salem- Harrisburg-Lebanon area, and all places where notices to its members are customarily posted, copies of a notice attached hereto marked 2 We note that the Trial Examiner commented that the General Counsel "wisely" elected to proceed under the violations alleged in this complaint although he could have alleged a violation of Section 8 (b) (4) (A ) on the same facts. We find it unnecessary to go into such question. 450553-58-vol. 118-84 1314 DECISIONS OF NATIONAL LABOR RELATIONS BOARD "Appendix A." s Copies of said notice, to be furnished by the regional Director for the Nineteenth Region, shall, after being duly signed by an official representative of the Respondent Union, be posted by it immediately upon receipt thereof, and maintained by it for a period of at least sixty (60) consecutive days thereafter. Reasonable steps shall be taken by it to insure that said notices are not altered, defaced, or covered by any other material. (2) Mail to the Regional Director for the Nineteenth Region signed copies of the notice attached hereto marked "Appendix A" for posting, the Respondent Company being willing, at its offices in the Lebanon- Harrisburg area in places where notices to employees are customarily posted by the Respondent Company. Copies of said notice, to be furnished by the Regional Director for the Nineteenth Region, shall, after being signed as provided above, be forthwith returned to the Regional Director for said posting. II. The Respondent, F. W. Morse, W. F. Morse and Joseph D. Morse d/b/a Morse Brothers, Harrisburg Sand and Gravel Co., and Lebanon Sand and Gravel Co., its officers, agents, successors, and assigns, shall : (a) Cease and desist from : (1) Recognizing the Respondent Union as the exclusive repre- sentative of the Respondent Company's employees for purposes of collective bargaining, unless and until said labor organization has been certified by the National Labor Relations Board as the exclusive representative of said employees in an appropriate unit. (2) Giving effect to any of its agreements, dated September 10, 1956, with the Respondent Union, or to any earlier oral agreements, or to any extensions, renewals, modifications, or supplements thereof, unless and until said Respondent Union has been certified by the National Labor Relations Board as the exclusive representative of the Respondent Company's employees in an appropriate unit, and then only if the agreement to be given effect conforms to the pro- visions of the National Labor Relations Act, provided, however, that nothing herein shall be construed to require the Respondent Company to vary any substantive provisions of such agreement, or to prejudice the assertion by the employees of any rights that they may have thereunder. (3) Threatening its employees with discharge or promising them benefits to induce their employees to become members of any labor organization, or in any other way interfering with the rights of em- ployees to join or to refrain from joining any labor organization. .. (4) Interfering with the administration of, or contributing support to. any labor.organization. 3In the event that this Order is enforced by a decree of a United States Court of Appeals, there shall be substituted for the words "Pursuant to a Decision and Order" the words "Pursuant to a Decree of the United States Court of Appeals , Enforcing an Order." MORSE BROTHERS 1315 (5) Discriminating in regard to the hire or tenure of employment or any term or condition of employment to encourage or discourage membership in a labor organization , except as such conduct may be permitted by a lawful contract executed pursuant to Section 8 (a) (3) of the Act. (b) Take the following affirmative action, which the Board finds will effectuate the policies of the Act: (1) Withdraw and withhold all recognition from the Respondent Union as the exclusive representative of the Respondent Company's employees for the purpose of collective bargaining , unless and until said Respondent Union shall have been certified by the National Labor Relations Board as the exclusive representative of the Respondent Company's employees in an appropriate unit. (2) Post at its offices in the Lebanon -Harrisburg area copies of the notice attached hereto and marked "Appendix B." 4 Copies of the notice, to be furnished by the Regional Director for the Nineteenth Region , shall, after being duly signed by the Respondent Company, be posted by it immediately upon receipt thereof, and maintained by it for a period of at least sixty (60) consecutive days thereafter, in conspicuous places, including all places where notices to employees are customarily posted. Reasonable steps shall be taken to insure that said notices are not altered, defaced, or covered by any other material. (3) Notify the Regional Director for the Nineteenth Region, in writing, within ten ( 10) days from the date of this Order , what steps it has taken to comply herewith. * See footnote 3, supra. APPENDIX A NOTICE TO ALL MEMBERS Or TEAMSTERS LOCAL UNION No. 324, IN- TERNATIONAL BROTI3ERI-IOOD Or TEAMSTERS , CIIAUFrVti s, WARE- HOUSEMEN AND HELPERS Or AMERICA , AFL-CIO, AND To ALL EMPLOYEES Or F. W. MORSE , W. F. MORSE AND JOSEPH D. MORSE D/B/A MORSE BROTHERS , HARRISBURG SAND AND GRAVEL CO., AND LEBANON SAND AND GRAVEL CO. Pursuant to a Decision and Order of the National Labor Relations Board, and in order to effectuate the policies of the National Labor Relations Act, we hereby notify our members, and the' employees of Morse Brothers, Harrisburg Sand and Gravel Co., and Lebanon Sand and Gravel Co., that : WE WILL NOT give effect to our agreements with the above- named Companies dated September 10, 1956, or any earlier oral agreement, and will not enter into, give effect to, or enforce any extension , renewal , modification, or supplement of that agree- Ment or agreements , or any superseding agreement , unless and 1316 DECISIONS OF NATIONAL LABOR RELATIONS BOARD until we shall have been certified by the National Labor Relations Board as the representative of the employees of Morse Brothers,. Harrisburg Sand and Gravel Co., and Lebanon Sand and Gravel Co., in an appropriate unit, and unless the agreement that may subsequently be entered into conforms to the provisions of the National Labor Relations Act. WE WILL NOT cause or attempt to cause Morse Brothers, Har- risburg Sand and Gravel Co., Lebanon Sand and Gravel Co., their agents, successors, or assigns, to condition the hire or tenure of employment, or any term or condition of employment, upon mem- bership in, affiliation with, or dues payments to our labor or- ganization, except where lawful provision therefor shall have been established by an agreement in conformity with the National Labor Relations Act. WE WILL NOT in any other manner cause or attempt to cause Morse Brothers, Harrisburg Sand and Gravel Co., Lebanon Sand and Gravel Co., their agents, successors, or assigns to discriminate against employees in violation of Section 8 (a) (3) of the Act. WE WILL NOT in any manner restrain or coerce employees of said Companies in the exercise of rights guaranteed by Section 7 of the Act, except to the extent that such rights may be affected by an agreement requiring membership in a labor organization as a condition of employment, as authorized in Section 8 (a) (3) of the Act. TEAMSTERS LOCAL UNION No. 324, INTERNATIONAL BROTHERHOOD OF TEAMSTERS, CHAUFFEURS, WAREIIOUSEMEN AND HELPERS OF AMERICA, AFL-CIO, Labor Organization. Dated---------------- By------------------------------------- (Representative ) ( Title) This notice must remain posted for 60 days from the date hereof,, and must not be altered , defaced, or covered by any other lnaterial.. APPENDIX B NOTICE TO ALL EMPLOYEES OF F. W. MORSE, W. F. MORSE AND JOSEPIr D. MORSE D/B/A MORSE BROTHERS, HARRISBURG SAND AND GRAVEL CO., AND LEBANON SAND AND GRAVEL CO. Pursuant to a Decision and Order of the National Labor Relations Board, and in order to effectuate the policies of the National Labor Relations Act, we hereby notify our employees that : WE WILL NOT give effect to our agreements with Teamsters. Local Union No. 324, International Brotherhood of Teamsters,. MORSE BROTHERS 1317 Chauffeurs, Warehousemen and Helpers of America, AFL-CIO, dated September 10, 1956, or any earlier oral agreement, and will not enter into, or give effect to, or enforce any extension, renewal, modification, or supplement of that agreement or agree- ments, or any superseding agreement, unless and until the above- named Union shall have been certified by the National Labor Relations Board as the representative of our employees in an appropriate unit, and unless the agreement that may subsequently be entered into conforms to the provisions of the National Labor Relations Act. WE WILL NOT threaten our employees with discharge or promise them benefits to encourage their membership in or activities on behalf of any labor organization, or threaten them with reprisal or economic loss because of their union affiliations, activities, or sympathies, or the lack thereof. WE WILL NOT in any other manner interfere with, restrain, or co- erce our employees in their exercise of the rights guaranteed to them by Section 7 of the National Labor Relations Act, except to the extent that such rights may be affected by an agreement made in conformity with the provisions of Section 8 (a) (3) of the National Labor Relations Act. All our employees are free to become, to remain, or to refrain from becoming or remaining members of any labor organization, except to the extent that this right may be affected by an agreement made in conformity with Section 8 (a) (3) of the National Labor Rela- tions Act, as amended. F. W. MORSE, W. F. MORSE AND JOSEPH D. MORSE D/B/A MORSE BROTHERS , HARRISBURG SAND AND GRAVEL CO., AND LEBANON SAND AND GRAVEL CO., Employer. Dated-- -------------- By------------------------------------- (Representative ) ( Title) This notice must remain posted for 60 days from the date hereof, and must not be altered, defaced, or covered by any other material. INTERMEDIATE REPORT AND RECOMMENDED ORDER STATEMENT OF THE CASE This proceeding, brought under Section 10 (b) of the Act, was heard at Corvallis, Oregon, on December 11 and 12, 1956, pursuant to due notice to all parties.' The In this report Respondent , Teamsters Local Union No. 324 , International Brotherhood of Teamsters , Chauffeurs , Warehousemen and Helpers of America , AFL-CIO, is referred to as the Union or Local 324; the Respondents F. W. Morse, W . F. Morse and Joseph D. Morse d/b/a Morse Brothers, Harrisburg Sand and Gravel Co., and Lebanon Sand and Gravel Co ., as Morse Brothers or the Company ; and these two parties jointly, as the Respondents ; Carroll W . McLain and Harold Bond , as the Charging Parties ; the General 1318 DECISIONS OF NATIONAL LABOR RELATIONS BOARD consolidated complaint, dated November 21, 1956, was issued by the General Counsel and duly served on the Respondents. The complaint was based on charges duly filed by the Charging Parties. On the same date the Regional Director of the Board (Nineteenth Region, Seattle, Washington) issued an order consolidating the cases and giving notice of hearing to the Respondents. The complaint alleged in sub= stance that Morse Brothers and the Union, on or about September 7, 1956, executed a contract which required that the employees of Morse Brothers obtain and retain membership in the Union as a condition of employment, and that by certain conduct leading to the execution of the contract, and certain conduct in enforcement of the contract, the Company had engaged in unfair labor practices within the meaning of Section 8 (a) (1), (2), and (3), and the Union in unfair labor practices within the meaning of Section 8 (b) (1) (A) and (2) of the Act. Each respondent duly filed an answer denying the commission of the alleged unfair labor practices. At the hearing all parties were represented, were afforded full opportunity to be heard, to examine and cross-examine witnesses, to introduce evidence bearing on the issues, to argue the issues orally upon the record, and to file briefs and proposed findings. Upon the entire record in the case, and from my observation of the witnesses, I make the following: FINDINGS OF FACT 1. THE BUSINESS OF THE COMPANIES Upon the pleadings, and the evidence as a whole, I find that F. W. Morse, W. F. Morse and Joseph D. Morse constitute an Oregon partnership doing business under the names of Morse Brothers, Harrisburg Sand and Gravel Co., and Lebanon Sand and Gravel Co. This combination of Morse enterprises is hereafter called the Com- pany. The Company is engaged in highway construction, paving, and contracting work, and in the sale of ready-mix concrete, asphalt, sand, gravel, and related products in the State of Oregon. The principal office and place of business of the Company is at Lebanon, Oregon. The Company also owns and operates sand and gravel pits, concrete batch plants, and related facilities at Lebanon, Oregon, and Harrisburg, Oregon. Upon all the evidence, I find that in.the course and conduct of its business during the 12-month period preceding the date of issuance of this complaint, the Company received more than $236,000 from the State of Oregon and the United States Bureau of Public Roads for bridge and road building, and paving services, rendered in connection with the construction and repair of State highways, United States Forest Service access roads, and other channels of interstate commerce, located within the State of Oregon. Upon all the evidence I find that the Company is engaged in commerce within the meaning of Section 2 (6) and (7) of the Act.2 II. THE LABOR ORGANIZATION; THE CONTRACT; ABSENCE OF REPRESENTATIVE STATUS It is undisputed and I find that the Union is a labor organization within the meaning of Section 2 (5) of the Act. The pleadings admit that on or about September 7, 1956, the Company through its agent, Associated Concrete Products Manufacturers Association,3 entered into a contract with the Union which contained the following union-security provision: ARTICLE 1. Union Security. The Union agrees upon reasonable notice to supply to the Employer, hereinafter named, competent and trustworthy em- ployes. Non-Union men may employed [sic] at the regular Union wages; said Non-Union man or men, as the case may be, must make application to become a member of the Union and if found to be satisfactory to the Employer and found worthy by the Union after thirty (30) days of employment, such persons will be admitted to full membership in the Union on the same basis as all other members have been or are being admitted and shall remain a dues paying member in good standing as a condition of continued employment. It is also undisputed, and I find, that the Union was not at any time the designated bargaining representative of a majority of the Company's production and mainte- nance employees, or of the Company's truckdrivers. The evidence indicates that Counsel of the Board and his representative at the hearing, as the General Counsel ; the National Labor Relations Board, as the Board ; and the Labor Management Relations Act of 1947, as amended, as the Act. 2 Madison County Construction Company, 115 NLRB 99. 2 Hereafter called the Association. MORSE BROTHERS 1319 on or around September 7, 2 of approximately 20 truckdrivers employed by the Company were members of the Teamsters organization, but it is not clear as to which Local of the organization they belonged. It also appears that their member- ship in the Teamsters was obtained and maintained to further a policy of the Com- pany, hereafter explained, so cannot be considered voluntary designations of the Union. Upon all the evidence, I find that prior to September 7, the Union was not the duly designated bargaining representative of any of Morse Brothers employees. III. THE UNFAIR LABOR PRACTICES A. No conflicting testimony There are no conflicts in the testimony as to the basic facts disclosed by this proceeding. The testimony of the witnesses presented by the General Counsel stands uncon- tradicted in the record, and is mutually corroborative, even to details. Therefore, I have credited the testimony of those witnesses.4 I have also credited the testimony of Harland E. Kelly and Charles Westergard, union representatives, called as witnesses by the General Counsel, for as far as it goes their testimony is not in conflict with the testimony of those witnesses mentioned above. A composite of this uncontradicted testimony affords a succinct narrative of the sequence of events giving rise to this litigation. B. Background The operations of Morse Brothers are conducted from plants at Lebanon and Harrisburg, Oregon. At Lebanon the Company employs approximately 25 to 30 men during the summertime, and approximately 20 men during the winter. Seven men are truckdrivers. At Harrisburg there are 22 to 25 employees in the summer, and approximately 18 to 20 during the winter. Approximately four are truckdrivers. Morse Brothers has been a member of the Association since 1947. However, the Association had never been authorized to act as bargaining agent for the Company until September 7, 1956. The Company admitted in the pleadings that the Union was not the majority designee of its employees in an appropriate unit for the purpose of collective bargaining, and Joseph D. Morse, one of the partners, testified that the Company was never informed by any member of the Union that it represented any of the Company's employees. Joseph D. Morse also testified that in 1948 some of his drivers who were engaged in delivering ready-mix concrete to a union construction job were stopped from making deliveries by representatives of the Union. At that time, union representa- tives told the Company that if the Company would have union drivers on the trucks delivering to union jobs, that deliveries would not be held up in the future. After that, the Company installed the policy of having on the payroll two union ready-mix truckdrivers who were assigned to make deliveries at union jobs. It is clear from all the evidence that prior to September 6, 1956, the Union made no attempt to organize the employees of the Company by the usual organizational methods, such as solicitation of employees, explanations of the benefits of union membership, or the enrollment of the employees as members of the Union. C. Events prior to September 7 5 Wayne H. Shields testified that early in 1956 his company, the W. H. Shields Construction Company, a general contractor, began the construction of a new high school at the city of Lebanon. The value of the contract was $1,250,000. Con- struction on the job began about April 1. On approximately that date the Company submitted a bid to Shields which quoted a price per yard for providing 5,000 cubic yards of ready-mix cement to the contractor. The Company's bid was accepted by Shields, and deliveries of the ready-mix proceeded without difficulty or delay until September 6. On that day the superintendent for Shields notified Wayne H. Shields that two representatives from the Union had been on the job and had discussed with him the 4 Joseph D. Morse, Alfred P. Blair, Forrest Morse, Wayne H. Shields, William Morse, Carroll McLain, Harold Bond, and others, whose testimony corroborates the testimony of those named. Any testimony of a witness which has been rejected has been noted, with reasons for the rejection, elsewhere in this report. 5 All dates in this section of this report are in the year 1956 unless noted otherwise. 1320 DECISIONS OP NATIONAL LABOR RELATIONS BOARD fact that the Company was providing the concrete for the job. Early on the same afternoon, Harland D. Kelly, an organizer for the Union, and Charles Westergard, secretary of the Salem Building Trades Council, of which the Union is a member, came upon the construction job site. The union representatives informed Shields that they were considering picketing the job because Morse Brothers was not a union shop. They explained to Shields that they had tried to organize the employees of Morse Brothers in the past, and had not been successful. Shields pointed out to them that he had agreed with the representatives of the Building Trades, at the beginning of the job, that he was going to use union subcontractors with the exception of Morse Brothers, and that the union representatives had agreed that he might use Morse Brothers, despite its nonunion character. Shields suggested that Westergard and Kelly get in touch with Morse Brothers, to see if they couldn't work out some solution to the situation. Westergard said that he didn't give a damn about signing up Morse Brothers-all he wanted was for them to get their equipment off the job. Shields complained that he was caught between two fires. He was in no position to dictate to Morse Brothers that their employees join the Union, as he had no control over those employees. On the other hand, if the Union placed a picket on the job, there wasn't anything that he could do about it. The union representatives then said that they were going to have a picket on the job on the following morning. Shields said that he couldn't stop them, if that was their decision. After this conversation with Kelly and Westergard, Shields called the Company on the phone and talked to Joseph Morse. He related to Morse his conversation with the union representatives and told Morse that he couldn't afford to have his job shut down for any length of time, and that he would like the Company to get together with the Union and see if they couldn't straighten the matter out. Morse at that time indicated his willingness to do that. Shields also told Morse that he was willing to shut his job down for a day while they straightened the matter out, and that he thought the Union had not made a final decision to put a picket on the job. D. Events of September 7, 1956 On September 7, 1956, Shields reached the job site about 7:45 a. m. Gentry, a business agent for the Carpenters Union, was present, and a picket carrying a sign was on duty at the main entrance to the job site. The picket sign read: SUBSTANDARD CONDITIONS BEING OBSERVED SALEM BUILDING TRADES COUNCIL Shields instructed his men who were gathered near the job office to stand by, that there would be no work until such time as the picket was removed, and he didn't know just when that would be. Gentry notified the union men to the same effect. A few moments later Westergard and Kelly came to the job site, and Shields, Westergard and Kelly went into the office where they. telephoned Joseph Morse who came to the office in a few moments. In the discussion which then took place the attitude of Westergard was the same as on the day previous. He wasn't interested in holding an election or trying to organize the Morse employees. He was interested in getting the Morse equipment off the job and getting a "fair contractor" on the job. He was not receptive to any suggestions that the union representative go to the plant of Morse Brothers and try to work something out to their mutual satis- faction. Both Westergard and Kelly presented a contract with the Union to Morse and demanded that he sign it immediately; they offered him no other alternative. Morse said that he would like a little time to think it over, and confer with his brothers. Morse then left the meeting. Westergard also left but Kelly remained. Later in the morning the three Morse brothers returned to the office. Kelly was present at that time so Shields excused himself and left the three brothers with Kelly. After the three Morse brothers and Kelly had conferred for approximately 1r/2 hours, they called Shields back to the office. They told him that the Morse brothers had agreed to sign the union contract. Kelly then went to the door and dismissed the picket, who immediately left the premises. Shortly thereafter the Morse brothers and Kelly left. In his testimony, Joseph D. Morse gave a full account of the events of this date. He testified that at 7:30 a. m. he went to the Shields' job site in Lebanon and immediately noticed that there was a picket on duty in front of the job office. He waited to talk to Shields. When the latter arrived, Shields told Morse that if he couldn't get cement from Morse Brothers he'd have to pay a premium of $3 per yard by getting it from Albany, Oregon. It appeared he would have to do that because the various building trades were refusing to work because of the picket. About 8:30 a. m. Kelly of the Union and Westergard of the Council arrived. Kelly said that he wanted Morse to sign a contract with the Union. Morse replied MORSE BROTHERS 1321 that if the Union could get over 50 percent of Morse Brothers employees to sign up with the Union, that the Company would be willing to sign a contract with the Union. Kelly said that he couldn't do that, and added that after Morse Brothers signed the contract, in the following week he would go down and talk to the employees. Morse asked Kelly if they would withdraw the picket if the Company had only union drivers deliver ready-mix to the job. Westergard said that arrangement would not do. Morse then said he would like to discuss the situation with his brothers. Around noon he talked with his brothers in the Lebanon office and they came to the conclusion that they had no alternative but to sign the contract. After they made this decision they went back to the job site and discussed the situation with Shields, and then called Alfred P. Blair who was the labor relations representative of the Association. They told Blair what had transpired and told him that they authorized him to sign in their behalf the contracts required by the Union. The Morse brothers then drew up and signed a letter, in terms which Kelly had demanded, which reads as follows: 6 September 7, 1956. MR. HARLAN KELLEY: Signing of the agreement between the Lebanon and Harrisburg Sand & Gravel Companys and the Employers & Teamsters Union, Local #324, will be taken care of by the Associated Concrete Manufacturers' Association. Yours very truly, They gave this letter to Kelly, and told him that Blair had talked by phone to Graham, secretary of the Union, and that arrangements had been made for signing, of the formal contracts. Kelly also said that he would go to the Lebanon and Harris- burg plants the following week, and sign the men up. At the time the contract and letter were exchanged, Morse Brothers and Kelly agreed that the contract should be effective immediately. On the following day work was resumed on the construction site and deliveries, by Morse Brothers were not thereafter interrupted. Alfred P. Blair testified that he is the manager of the Association. It was one of his duties to bargain with the Union on behalf of 15 or 16 cement companies who were members of the Association and were located within the jurisdiction of Local 324. In the same area, however, there were 4 or 5 cement companies who, like Morse Brothers, were members of the Association, but were unorganized; these companies had no contractual relation with the Union. Blair said that in the past on each occasion that the contract between the cement companies of the Association and the Union had been negotiated, the Union had requested that Morse Brothers, be included in the contract even though both parties knew that the Union did not represent any of Morse Brothers employees. On each occasion, when the Union had asked to include Morse Brothers in the contract, he had answered that they would consider that question when the Union could show that it represented a majority of the employees of Morse Brothers. On September 6 around 9 a. m. Blair received a telephone call from Joe Morse, who told him about the picketing on the Shields job and discussed the situation with Blair. After discussing it, Joe Morse said that the Company might as well enter into a contract in order to stop the picketing and that type of difficulty in the future. Blair then said that he would phone Ward Graham, secretary of the Union, and dis- cuss the matter with him. Blair then called Graham and told him that he had just received a call from Morse with regard to the Lebanon Sand and Gravel, and that the Company was willing to sign a contract with the Union. Graham then informed Blair, for the first time, that the contract would also have to cover the Morse plant at Harrisburg, and that Graham's Local had jurisdiction over both plants. Blair replied that on that basis Morse Brothers would sign for both plants. Graham said that would be satisfactory. In the course of this conversation neither Graham nor Blair discussed the question of whether the Union represented any of the Morse employees,at either plant. Blair then phoned Joseph Morse and told him the substance of his talk with Graham; that the contract contained three things: (1) that the men would all be required to join the Union within 30 days; (2) that the Company would have to pay into the "AGC Teamster Welfare Trust," and (3) after January 1, 1957, the Company would have to pay into a "Teamster Pension Fund." Blair also told Morse that he was required to give Kelly a letter, stating the intention of the Company to sign up with the Union, so that Kelly could remove the picket from the Shields job. On September 10, Blair met with Graham and signed three union contracts on behalf of Morse Brothers. The first of these contracts (General Counsel's Exhibit O General Counsel's Exhibit No. 3. 1322 DECISIONS OF NATIONAL LABOR RELATIONS BOARD No, 6) brought Morse Brothers' operations under the terms of a contract between Associated General Contractors of America and the Joint Council of Teamsters No, 37. It included a provision that the Company would pay 71/z cents per employee per hour into the "AGC Teamster Welfare Trust." The second of these contracts (General Counsel's Exhibit No. 7) provided that Morse Brothers would make payment of $10.40 per month per regular employee to the "Salem, Oregon, Teamsters' Security Fund." The third of these contracts (General Counsel's Exhibit No. 2) is a labor agree- ment in conventional form, but of unusual brevity, dealing with wages, hours, rates of pay, holidays, etc. Article 12, Pension Fund, provided that Morse Brothers would make. monthly payments of 10 cents per hour, per employee into the Teamsters Pension Fund.7 On this occasion Blair asked Graham how much the initiation and dues were which the men would be required to pay by virtue of the union-security provision of the contract. Graham said that the men would be required to pay $40 initiation fee, plus December dues $5, and Fourth Quarter dues $15, a total of $60. Blair told Graham that he thought the men might be reluctant to pay that much money, and asked him if he could not obtain some special concession from the Union in the matter of these sums. A few days later Graham called him and said that "since they now had the company over the barrel in this case, they saw no reason to make any changes in the initiation fee." Blair told him that possibly the amount of the initiation fee might cause trouble with the men, because he could foresee that some of the employees might be reluctant to pay such a large sum of money. Graham then said that the Union was "having trouble getting the fellows signed up" and he asked Blair to take some applications to Morse Brothers' plants and have the men sign them and send them to him. Graham explained that if Blair did that, "We wouldn't even have to go near the plant. All you do is have Morse Brothers send us a check for approximately a thousand dollars, send in the applications and we would take care of it from here." Blair agreed to talk to the employees of both plants and see what would happen. On September 18, about 4:30 D. m., Blair met with the employees at Harrisburg, and on September 19, at lunch time, he met with the employees at Lebanon. These meetings were arranged by the Company. He told the men that the Company had signed a contract with the Union, believing it was for the best interests of the Company to stay out of trouble with the Union, and to maintain employment for the men without interruption. He explained that the contract called for certain specific things, including the membership of the employees in the Union. He explained the welfare plan, the pension plan, and the amount of the initiation fees and dues. The same question arose at both plants. The men asked if they had to join the Union. Blair replied, in each instance, that since the Company had signed a contract calling for them to be members of the Union they would have to join, or upon request of the Union the Company would have to fire them and replace them with people who would join the Union. Several of the men then asked if there was anything that they could do under the law so they would not have to join. He replied that he represented the employer, and he was a poor person to advise them as to their rights. However, he told them that there were some provisions under the State law which might be applicable to their situation, that the only thing they could do would be to go to the State Labor Examiner and place their case before him. On or about September 26 and 28, W. F. Morse and F. W. Morse spoke to groups of employees in a similar vein. About 10 days after Blair spoke to the employees at Lebanon and Harrisburg, Kelly also spoke to them. He read the entire contract to them, and explained some of the benefits of the Union. Then some of the men asked him if they definitely had to join. He again read that part of the contract which required that they obtain and retain membership in the Union within 30 days. When they asked Kelly about the pension plan, he replied that he really didn't know the details of the program because it was still in the process of being worked out. However, each employer by virtue of the contract was required to pay 10 cents per hour per employee toward the pension plan. Some of the men expressed dissatisfaction with that arrangement. They said that since they worked for and earned that 10 cents an hour, they thought they should know what the Union would give them for it, before it was paid to the Union. a Note : This is not a duplication in the narration of these payments : $10.40 per month per employee to the Teamsters Health and Welfare Fund is covered by article 11, Health and Welfare, of this particular contract, which incorporates the second above by reference. MORSE BROTHERS 1323 When the men expressed a reluctance to join, Kelly said that the men had to join the Union, "because the contract has already been signed, you have got to join the Union, .or we can send men down to replace you after this 30-day period is up." However, despite the talks by Blair, the two Morses, and Kelly, the employees selected the Charging Parties as their representatives to seek the help of the State Labor Examiner, and when that mission proved futile, to seek the assistance of the Board. Thereafter the instant charges were filed. Testimony of Union Representatives Charles Westergard, secretary of the Salem Building Trades Council, testified that he was the responsible officer in charge of the Council's picketing activities. He said that the picketing activities of the member locals of the Council were conducted through the Council. Usually a member local asked that the Council picket a particular employer or job. When the Council granted the local's request, he, as secretary of the Council, took the picket or pickets, and the picket sign to the site of the picketing, and started it off. Thereafter he, or a representative of the local which had requested the picket, had authority to terminate the picketing. Usually this was done when the picketing had achieved the desired objective. Approximately 3 or 4 days before September 7, the Union requested that the Shields job be picketed because Morse Brothers was supplying ready-mix concrete to the Shields job. On September 6, after receipt of this request, and complaint about Morse Brothers, Westergard and Kelly went to Wayne H. Shields and pointed out to him that a "substandard condition" existed on the job. Westergard said that by "substandard" he meant that the wages and working conditions of Morse Brothers employees were not on a standard with the rest of the area. He told Shields that Morse Brothers did not pay into the Teamsters Health and Welfare Fund, nor did they pay into the Teamsters Pension Plan, so the Council could not regard Morse Brothers as main- taining the standard of other employers. The union representatives asked Shields to take some corrective action in regard to the situation. Westergard said that the Council and its member locals have a policy of refusing to work with nonunion men. Westergard testified that in his conversation with Shields he did not threaten to picket his job. However, his parting remark to Shields was, "that the Union would see him in the morning." Westergard testified that on the morning the picketing was initiated, he had a conversation with Morse. Morse asked him to go to the plants of the Company in Lebanon and Harrisburg, and to organize the men. He told Morse that he wasn't interested in Morse Brothers plants. Westergard testified that the picket was taken off the Shields job by the action of Kelly of the Union. 'Either Kelly or Graham of the Union had authority to remove the picket as soon as the Union was satisfied. At the time the picketing was initiated, Westergard told the employees of Shields who were on the job site that the Council had been forced "to resort to the banner." When they saw him on the job site, and saw the picket sign, they picked up their tools and quit work. One man was at work greasing the power crane, and another man was greasing the bulldozer. He went to them, where they were at their machines on the job site, and told them a picket had been placed on the job. They immediately quit work. Concluding Findings It is undisputed that prior to September 7, 1956, the Union did not represent a majority of the employees of the Company in an appropriate unit for collective bargaining. Nevertheless, on that date the Union initiated picketing on the Shields job site for the purpose of forcing the Company to assist it, in forcing the Com- pany's employees to join the Union. This plan or scheme of the Union was in direct violation of the employees' rights, as guaranteed in Section 7 of the Act. It is clear that Morse Brothers was not at first a willing partner of the Union, but when faced with the economic pressure placed upon it by the Union, through Shields, Morse Brothers surrendered, and thereafter was an active participant in the illegal enterprise. There can be no doubt as to the purpose of the picketing on the Shields job site. On September 6, the union representatives told Shields that the Union had no quarrel with him, except that he was obtaining his ready-mix concrete from Morse Brothers. Westergard testified that conditions on the Shields job were "substandard," as later, blazoned on the picket sign, because the Company was not paving into the pension and welfare funds of the Union. That statement was the first indication of the Union's real motive in these events. Both Kelly and Westergard urged Shields to put pressure on Morse Brothers "to sign up with the Union." When the Morse 1324 DECISIONS OF NATIONAL LABOR RELATIONS BOARD brothers appeared on the Shields job site, they were told that the picketing of the Union would continue until the Company signed the contract with the Union, which was then and there presented to them. When Blair , acting for the Company , talked to Ward Graham , secretary of the Union , he was informed of the exact terms upon which the Union would accept the Company 's surrender . These terms were all related to the payment of money by each employee of the Company to the Union: (1) 71/2 cents per hour worked , to the A. G. C . Teamsters Welfare Fund; (2) 10 cents per hour worked , to the Teamsters Pension Fund ; ( 3) $10.40 per month per employee to the Salem , Oregon, Teamsters Security Fund ; ( 4) all employees to immediately join the Union and pay $40 initiation fee, and $20 current dues, for a total of $60 ; and (5 ) that thereafter all employees remain in good standing with the Union , paying dues of $60 per year. The conduct of the Union , as displayed in the undisputed testimony of this case, appears strange , until it is analyzed. It appears strange , because this labor organi- zation made no effort to induce the employees of the Company to join the Union by the usual methods of persuasion , lawfully directed to the mind of the employees. Prior to the placing of the picket on the Shields job, no representative of the Union talked to any of the employees whose affiliation they sought . Even after Morse Brothers signed the unlawful contract , the union officials appeared averse to talking to the employees . Graham asked Blair to sign up the men , and Kelly did not go near the employees until it was clear that the Company could not hand over their employees to the Union. However, Graham displayed an interest similar to Westergard 's-an interest in payments into the Union 's variety of "Funds." Graham told Blair to send the Union "about $ 1,000 and they would take it from here ." Through all of this activity , this labor organization seems to have been interested solely in the acquisition of money for its various funds, without regard to the rights or desires of the em- ployees. This overwhelming interest in payments is understandable when the evidence is analyzed . In Schedule A, attached hereto, I have made a computation in accordance with the exhibits in evidence , and the testimony , which shows the sums of money due the Union under the terms of the contract with the Company. According to that schedule , each employee of the Company , tinder pain of dis- charge, was required to pay to the Union in the first year of membership the sum of $588.80. All employees of the Company ( 51 employees being taken as the mean employment level) would contribute to the Union in the course of the first year the not inconsiderable sum of $30,028.80. This financial aspect of the case places in proper focus all of the Union's conduct, including its purpose . It placed its picket on the Shields job for the purpose of coercing Morse Brothers to assist it in fastening on each employee of the Company an undesired membership featured by all the usual duties and obligations thereby entailed, and the additional contractual obligation to pay the Union the sum of $588.80 per man per year . The amount of money here involved explains the lack of interest of union representatives in talking to the men. If the Company took the money from their pay , the employees could be disregarded entirely. It also explains why the men refused to join the Union and appealed to the Board for assistance. The testimony is undisputed that when Kelly spoke to the men they questioned him about the 10-cent-per -hour payment to the pension fund. He explained that the pension plan was not complete , that the Union had decided that each employee would pay in 10 cents per hour, but that the Union had not yet decided what it would pay out to the men in benefits . It was not unnatural that the men were dissatisfied with that arrangement , and told Kelly that they thought they should know what they were going to get for their money before they paid it in. The Act does not permit employees to be coerced in this manner . In John B. Shriver Company , 103 NLRB 23 , the Board had occasion to deal with coercion by means of a similar unauthorized contract and its enforcement by a union and an employer. It said: Unless there be validity to the Respondents ' alleged affirmative defenses considered at length below , there can be no doubt of the Respondents ' violation of the sections of the Act set out above . It is undisputed that the Union repre- sented none of the . . . employees when the Respondent Company agreed to accord the Union exclusive representative status. Even without a con- tractual requirement for compulsory union membership, an employer illegally assists and supports a labor organization by granting it exclusive recognition when he knows it does not represent a majority in an appropriate bargaining unit at the time the grant is made. The illegal assistance and support is only aggravated where, as here , the agreement that grants recognition also requires MORSE BROTHERS 1325 the covered employees as a condition of their employment to join and pay dues to a labor organization they have not freely chosen. By including such a contractual requirement, the employer not only violated Section 8 (a) (1) and (2), but Section 8 (a) (3) as well. See, e. g., Hollywood Ranch Market, 93 NLRB 1147; Printz Leather Company, 94 NLRB 1312. And the labor organi- zation which executes and gives effect to the illegal agreements also commits an unfair labor practice, violating Section 8 (b) (1) (A) and 8 (b) (2) of the Act. See, in addition to cases already cited, New York State Employers Asso- ciation, Inc., 93 NLRB 127; Childs Co., 93 NLRB 281; Acme Mattress Co., 91 NLRB 1010. The rationale of the above decision is not rendered inapplicable because the union used picketing of a secondary nature as its tool to effect its purpose, the illegal coercion. It is true that the General Counsel could have alleged a violation of Section 8 (b) (4) (A) on the instant facts. However, in this case in which the Union's coercive purpose is so clearly violative of the fundamental principle of the Act, he wisely and properly elected to proceed against the Respondents, by invoking the sections alleged in the complaint.8 On the basis of the undisputed testimony set forth above, I make the following specific findings: (1) On September 7, 1956, the Union and the Company executed a contract affecting the hours, wages, and working conditions of the Company's employees at a time when the Union did not represent a majority of the Company's employees in an appropriate unit for collective bargaining. (2) That the aforementioned contract contained a union-security provision which required all employees of the Company to obtain membership in the Union within 30 days of the execution of the contract, and retain membership in the Union there- after as a condition of continued employment. (3) That after the execution of the contract the Company and the Union attempted to enforce the union-security provision by coercion and threats made to employees in the course of speeches by F. W. Morse and Alfred P. Blair on September 18, 19, 26, 28, 1956, and by the speeches of Harland Kelly, representative of the Union, on September 25, 26, 1956. These speeches were made pursuant to a joint purpose to coerce the employees into joining the Union. In each speech the employees were told that by the union-company contract they were required to join the Union within 30 days, and that unless they complied with the contract provision their employ- ment would be terminated upon the expiration of that period. (4) On September 7, 1956, the Union by picketing the job site of the W. H. Shields Construction Company, induced and encouraged the employees of that construction company to concertedly refuse to perform services for the construction company, for the purpose of forcing and coercing Morse Brothers to sign the unlawful contract above described. (5) That by the above conduct the Union has engaged in, and is engaging in, unfair labor practices within the meaning of Section 8 (b) (1) (A) and (2) of the Act, and the Company has engaged in, and is engaging in, unfair labor practices within the meaning of Section 8 (a) (1), (2), and (3) of the Act. IV. THE EFFECT OF THE UNFAIR LABOR PRACTICES UPON COMMERCE The activities of the Respondents set forth in section 111, above, occurring in connection with the operations of the Company described in section 1, above, have a close, intimate, and substantial relation to trade, traffic, and commerce among the several States and tend to lead to labor disputes burdening and obstructing commerce and the free flow of commerce. V. THE REMEDY Having found that the Respondents have engaged in certain unfair labor practices, it will be recommended that they cease and desist therefrom, and from any like or related conduct, and that they take certain affirmative action designed to effectuate the policies of the Act. Having found that the Union, knowing that it had not been authorized to act as the collective-bargaining representative by a majority of the employees of the Company in an appropriate unit, coerced the Company into recognizing the Union as the exclusive bargaining representative of those employees, and that, without authority, and for an unlawful purpose, coerced the Company into executing an 8Denver Building Trade and Construction Trades Council, 90 NLRB 1768. Building Service Employees International Union Local 262 v. Gazzam, 339 U. S. 632. 1326 DECISIONS OF NATIONAL LABOR RELATIONS BOARD agreement covering said employees, it will be recommended that the Respondents cease giving effect to said contract,9 or to any extensions, modifications, or supple- ments thereof, or to any superseding agreement of the parties, unless and until the Union shall have been certified by the Board as the representative of the Company's. employees in an appropriate unit. Nothing herein, however, shall be construed as. requiring the Company to vary wages, hours of employment, rates of pay, seniority or other substantive provisions in its relations with the employees themselves, which the Company had established in the performance of said agreement, or to prejudice the assertion by employees of any rights they may have thereunder. The Respondent Union's illegal activities are such as to indicate a purpose to defeat the Company's employees in the exercise of other basic rights under the Act. The unfair labor practices found to have been committed are potentially related to other unfair labor practices described by the Act, and danger of their commission in the future is to be anticipated from Respondent Union's conduct in the past. The preventive purposes of the Act will be thwarted unless the remedial order is coextensive with the threat. In order, therefore, to make effective the interdependent guarantees of Section 7, and thus effectuate the policies of the Act, the Recommended Order will provide that the Respondent Union cease and desist from in any other manner infringing upon the rights of employees guaranteed by the Act. Upon the foregoing findings of fact, and the entire record in the case, I make the following: CONCLUSIONS OF LAW 1. F. W. Morse, W. F. Morse and Joseph D. Morse d/b/a Morse Brothers„ Harrisburg Sand and Gravel Co., and Lebanon Sand and Gravel Co. constitute an employer within the meaning of Section 2 (2) of the Act. 2. Teamsters Local Union No. 324, International Brotherhood of Teamsters, Chauffeurs, Warehousemen and Helpers of America, AFL-CIO, is a labor organi- zation within the meaning of Section 2 (5) of the Act. 3. By causing the Company to discriminate against employees in violation of Section 8 (a) (3) of the Act, the Union has engaged in and is engaging in unfair labor practices within the meaning of Section 8 (b) (2) of the Act. 4. By restraining and coercing employees or prospective employees of the Com- pany in the exercise of rights guaranteed in Section 7 of the Act, the Union has engaged in and is engaging in unfair labor practices within the meaning of Section 8 (b) (1) (A) of the Act. 5. By interfering with, restraining, and coercing its employees in the exercise of the rights guaranteed in Section 7 of the Act, the Company has engaged in and is engaging in unfair labor practices within the meaning of Section 8 (a) (1) of the Act. 6. By interfering with the administration of a labor organization, and by con- tributing support thereto, the Company has engaged in and is engaging in unfair labor practices within the meaning of Section 8 (a) (2) of the Act. 7. By discriminating in regard to hire or tenure of employment and the terms and conditions of employment of its employees for the purpose of encouraging membership in a labor organization, the Company has engaged in and is engaging in unfair labor practices within the meaning of Section 8 (a) (3) of the Act. 8. The aforesaid unfair labor practices affect commerce within the, meaning. of Section 2 (6) and (7) of the Act. [Recommendations omitted from publication.] 9 Since the Union had no authority whatsoever to represent the employees, I deem it proper to require disavowal of the entire contract, and not merely the discriminatory- provisions thereof. SCHEDULE A Payments to Union by Each Employee of Morse Brothers According to Contracts, in Evidence, and the Testimony Payment: Teamsters Pension Plan Per hour worked____________________________________ $0.10 Hours per week_____________________________________ 40 Total per week----------------------- - - ----------- $4.00 per year (52 weeks, vacations not excluded)_____________ $208.00Total COMPAGNIE GENERALE TRANSATLANTIQUE 1.32 7 Payment: A . G. C.-Teamsters Welfare Fund Per hour worked____________________________ ________ $0.075 Hours per week____________ _________________________ 40 Total per week__________________________ ________ $ 3.00 Total per year ( 52 weeks, vacations not excluded ) ------------ $ 156. 00 Salem, Oregon , Teamsters Security Fund Payment, per month , $10.40. Total per year ( 12 months)______________________________________ 124.80 Initiation fee-------------------------------------------------- 40.00 Dues, per month , $5.00----------------------------------------- 60. 00 Total per employee , first year______________________________ 588. 80 Average number of employees, 51. Total from employees ____________________________________ 30, 028. 80 Compagnie Generale Transatlantique ( French Line ) and Steam- ship Office Workers Union Local 1809 , International Longshore- men's Association , Independent , Petitioner . Cases Nos. 8-RC- 8543 and 2RC--8558. September 6, 1957 SUPPLEMENTAL DECISION AND CERTIFICATION OF REPRESENTATIVES Pursuant to a Board Decision and Direction of Election issued on March 4, 1957,? an election was conducted on March 25, 1957, under the direction and supervision of the Regional Director for the Second Region, among employees of the Employer in the unit heretofore found appropriate. Upon completion of the election, the parties were furnished with a tally of ballots which showed that of approximately 107 eligible voters, 104 cast ballots, of which 55 were for the Petitioner and 44 were against. There were four challenged ballots, a number insufficient to affect the results of the election. One ballot was void. On April 1, 1957, the Employer filed timely objections to conduct affecting the results of the election. In objection 1, the Employer alleged that the Petitioner, by a letter addressed to employees on October 16, 1956, admonished, threatened, and warned the employees that other employees would not work with them if they failed to join the Petitioner. In objection 2, the Employer alleged that the Peti- tioner deceived and misled the employees by communications directed to them bearing dates of October 29, 1956, January 2 and February 7, 1957, which exaggerated benefits which the employees might receive if the Petitioner prevailed in the forthcoming election. Finally, the Employer alleged in objection 3 that the Petitioner misled the em- ployees by informing them that their leadership would be drawn from fellow employees when in fact this did not occur, and that the employees were accordingly unable to arrive at a free choice in the election. 1 117 NLRB 535. 118 NLRB No. 108. Copy with citationCopy as parenthetical citation