Nalco Chemical Co.Download PDFNational Labor Relations Board - Board DecisionsFeb 21, 1967163 N.L.R.B. 68 (N.L.R.B. 1967) Copy Citation 68 DECISIONS OF NATIONAL LABOR RELATIONS BOARD discriminatory discharge of an employee, Respondent had interfered with, restrained, and coerced its employees specifically because of this Union, and the employee membership in it, and where still other conduct might well have been viewed as further evidence of union animus and as equally unlawful conduct had it occurred within the permissive statutory period.5 Accordingly, therefore, with respect to the animus which I have already found, the additional testimony of what occurred sometime after the events in Erin, to wit the incidents at Woodbury in the summer of 1964 and in November 1965, serves only to confirm and fortify my finding of company animus. Because of its make-weight nature, however, I am disposed to withhold credibility determinations as to these matters, leaving to the Trial Examiner in the Colonial Corporation case the assessment of statements and conduct introduced into the record in his case. The extent and limitations of the union animus which I found are evident. Thus it should be recalled that the animus which formed the basis of the unlawful conduct found by me was only disclosed after March 28, 1964. And indeed among those incidents which I could not consider because of age (supra, fn. 5), nothing that could have qualified as misconduct or evidence of animus was shown to have occurred prior to the interrogation of employee Clark by Plant Manager Herlong on February 1, 1964;6 President Friedman's earlier speech to the employees on January 31, having been found to contain no reference whatever to the Union. Respondent's union animus has been established, therefore, at a point of time after, but not during or before, the period when the December 1963 decision to curtail work was made and being put into effect, without evidence of intervening or a subsequent economic improvement. It must be recognized, that the most recently adduced evidence of animus, after the fact though it may be, does refer back specifically to Respondent's operations which I have found, for lack of evidence to the contrary, to have been economically motivated-the curtailment of production. This is not to say, however, that what was said in the summer of 1964 and November 1965 in Woodbury, Tennessee, may now be used as the sole substitute for contemporaneous evidence. There is nothing in any record to suggest that in December 1963, or indeed at any time before Herlong questioned Clark in February 1964, Respondent or any of its officers had knowledge of the Union, little less bore animus towards it. What I am asked to do here is to accept as such a substitute for this void of knowledge something that was said far removed from the site of the dispute at a much later time, in a different context for a different and possibly unlawful motive. Colonial Corporation and its president, Friedman, or the local merchants, may well have viewed a story about Erin, be the story true or false, to be of assistance to them in their Woodbury problems. And indeed whether the story be true or false such statements about Erin, when made in Woodbury, may well be found to constitute unlawful conduct in the Woodbury context. That would be a matter to be determined by the Trial Examiner hearing the Woodbury case. But to take what was said in Woodbury about something which occurred in a different context a hundred miles away as long ago as a year and a half 5 Local Lodge No. 1424, International Association of Machinists , AFL-CIO (Bryan Mfg. Co) v. N.L.R.B., 362 U.S. 411. 6 TXD , section IV, D, 1. earlier, and use it as the only proof of what did occur, or the reason for the occurrence, streteches the processes of reasoning to the breaking point. The proffered evidence of what was said about Respondent's activities at Erin in the instant case is after the fact in every respect. I accordingly reject it as not material to the issue of this case which is the credibly established economic determination made in December 1963 by Respondent to curtail the work at its Erin plant. Instead, I would conclude and find that the testimony adduced before me constitutes, if believed, a fortuitous use by Colonial Corporation, by Friedman, and by the local merchants of a past event, taken out of context, in a subsequent unrelated situation for a possibly unlawful purpose. RECOMMENDED ORDER Upon the foregoing findings of fact and conclusions of law, and upon consideration of the entire record in this case and those portions of the record in Case 26 -CA-2256, included herein by stipulation , I reaffirm the recommendations contained in my original Decision. Nalco Chemical Company and International Union of Operating Engineers, Local No. 564, AFL-CIO Nalco Chemical Company and International Union of Operating Engineers, Local No. 564, AFL-CIO. Cases 23-CA-2172 and 23-RC-2515. February 21, 1967 DECISION, ORDER, AND CERTIFICATION OF RESULTS OF ELECTION BY CHAIRMAN MCCULLOCH AND MEMBERS FANNING AND JENKINS On July 22, 1966, Trial Examiner Horace A. Ruckel issued his Decision in the above-entitled proceeding, finding that Respondent had not engaged in certain unfair labor practices alleged in the complaint and recommending dismissal of the complaint in its entirety, as set forth in the attached Trial Examiner's Decision. He also recommended that Petitioner's Objection 1 to the election be dismissed. Thereafter, the General Counsel filed exceptions to the Decision and a supporting brief, and Respondent filed a brief in support of the Trial Examiner's Decision. Pursuant to the provisions of Section 3(b) of the National Labor Relations Act, as amended, the National Labor Relations Board has delegated its powers in connection with this case to a three- member panel. The Board has reviewed the rulings of the Trial Examiner made at the hearing and finds that no prejudicial error was committed. The rulings are hereby affirmed. The Board has considered the Trial Examiner's Decision, the exceptions, the briefs, and 163 NLRB No. 19 NALCO CHEMICAL CO. the entire record in this case, and hereby adopts the findings, conclusions, and recommendations of the Trial Examiner.' ORDER Pursuant to Section 10(c) of the National Labor Relations Act, as amended, the National Labor Relations Board hereby orders that the complaint herein be, and it hereby is, dismissed. 69 2(6) and (7) of the National Labor Relations Act, herein called the Act. Respondent filed an answer denying the commission of any unfair labor practices. Pursuant to notice, a hearing was conducted before me on March 29, 30, and 31, 1966, at Angleton, Texas, at which the parties were represented. At its conclusion the parties waived oral argument and subsequently filed briefs. Upon the entire record in the case, and from my observation of the witnesses, I make the following: CERTIFICATION OF RESULTS OF ELECTION IT IS HEREBY CERTIFIED that a majority of the valid votes has not been cast for the International Union of Operating Engineers, Local No. 564, AFL-CIO, and that the said labor organization is not the exclusive representative of the employees in the unit found appropriate, within the meaning of Section 9(b) of the National Labor Relations Act, as amended. ' Petitioner's Objection 2 to the election of September 23, 1965, which was not considered by the Regional Director in his Report on Objections , was not referred to the Trial Examiner for heanng by the Board 's Order of March 24, 1966 , consolidating Case 23-RC-2515 with Case 23-CA-2172. This objection pertains to remarks allegedly made by Plant Manager Limbach to employee Bly concerning letters sent to the homes of its employees by Respondent The record discloses that Objection 2 was fully litigated at the heanng, and we find it to be without ment Accordingly, as we overrule the objections and as the tally of ballots shows that Petitioner has not received a majority of the valid votes cast , we shall certify the results of the election TRIAL EXAMINER'S DECISION STATEMENT OF THE CASE HORACE A. RuCKEL , Trial Examiner : This case comes before me upon an unfair labor practice complaint dated December 14, 1965, issued by the General Counsel of the National Labor Relations Board , herein called the Board, acting through its Regional Director for Region 23 (Houston , Texas ), against Nalco Chemical Company, herein called Respondent . The complaint is based upon a charge filed on September 24, 1965, by International Union of Operating Engineers , Local No. 564, AFL-CIO, herein called the Union . Consolidated with the complaint for purposes of hearing are issues raised by the Union's Objection 1 to an election conducted among Respondent's employees in an appropriate bargaining unit on September 23, 1965.' The complaint , as amended at the hearing, alleges in substance that Respondent , by its supervisors, interrogated its employees concerning their support of the Union ; threatened to deprive them of existing privileges if they supported the Union and promised them benefits if they did not ; during the pendency of the election announced additional benefits in the form of holiday and vacation pay; and refused to recognize and bargain with the Union as the representative of its employees in an appropriate unit , in violation of Sections 8(a)(1) and (5) and ' The Board 's Order Directing Heanng on this objection was dated March 24, 1966. The Regional Director ' s Report on FINDINGS OF FACT 1. THE BUSINESS OF RESPONDENT Respondent is a Delaware corporation having its principal office at Chicago, Illinois, and operating a plant at Freeport, Texas, the only plant involved in this proceeding, where it is engaged in the manufacture of chemical products. During the year previous to the issuance of the complaint, a representative period, Respondent sold and shipped from its Freeport plant directly to points outside the State of Texas chemical goods and products valued at more than $50,000. The complaint alleges, and Respondent's answer admits, that Respondent is engaged in commerce within the meaning of Section 2(6) and (7) of the Act. II. THE LABOR ORGANIZATION INVOLVED International Union of Operating Engineers, Local No. 564, AFL-CIO, is a labor organization admitting employees of Respondent to membership. III. THE UNFAIR LABOR PRACTICES A. Background In April 1965, the Union began the organization of Respondent's employees, and by August 12 had obtained the signed authorization cards of 21 of them. On that date the Union wrote Respondent as follows: Please be advised that Local 564, I.U.O.E., has signed authorization cards for representation by a majority of your hourly operator employees in your plant at Freeport, Texas. Local 564, I.U.O.E., is prepared and willing to submit such cards to the Honorable Mayor of the City of Freeport, Texas, for confirmation that we do represent a majority of these employees. We are also prepared to begin discussion for a collective bargaining agreement concerning these employees on Thursday, August 19, 1965 at 10:00 a.m. Please contact me at BE 3-5283 by 5:00 p.m. on Wednesday, August 18, 1965, if the company is willing to recognize a card check as stated above and proceed with orderly negotiations. On August 22, cards were filed in the Board's Regional Office in Houston in support of the Union's petition for a Objections sustaining the Union's Objection 1 to the election was issued on December 8, 1965. 70 DECISIONS OF NATIONAL LABOR RELATIONS BOARD representation election.2 On September 3, Respondent executed a stipulation for a consent election which was held on September 23.3 On September 27, the Union filed timely objections to the election. On December 8, the Regional Director issued a report in which he found a part of the Union's Objection 1 to have merit. It is this objection to the Regional Director's Report which forms the subject matter of the proceeding, together with the unfair labor practice complaint. B. Alleged Interference, Restraint, and Coercion 1. The request for recognition Respondent posted the Union's letter of August 12 requesting recognition on the plant bulletin board, together with a notice to the employees as follows: The attached letter which was received this morning states that the "Union" has cards from the majority of you people. The way the letter is written it wants to make us believe that they actually do have these cards and that all who signed these cards want to be represented by this "Union." We do not believe that the majority of you people wish to transfer your rights to this Union. But most important, we do not believe that we can, in good conscience, "sell you down the river" to this "Union" without giving you your legal right to an NLRB certified election such as was held here last year. Nalco does not want a Union, the Union cannot help you, and we will resist a Union with every legal means. On August 18, Respondent replied to the Union's letter stating that it would not accede to its request for recognition because a year had not expired since the previous representation election and because it had a "good faith doubt" that the Union represented a majority of the employees. The letter concluded by stating that if the Union was certified as bargaining representative Respondent would bargain with it. 2. Respondent's liberalization of its vacation and holiday benefits The appropriate unit as alleged in the complaint is: "All operators and janitors employed by Respondent at its Freeport, Texas, plant, but excluding laboratory technicians, office clerical employees, guards and watchmen, and supervisors as defined in the Act." The 34 employees in this unit are hourly paid and are part of a total of 302 hourly paid employees employed in the United States, principally in plants in and around Chicago, Illinois, where Respondent has its principal office and place of business.' As against these 302 hourly paid employees, Respondent employs about 1,000 salaried employees of whom 700 are chemists, engineers, and other technically trained college graduates. In July 1965, after the beginning of the organizing campaign at the Freeport 2 Case 23-RC-2515 3 Of 34 ballots cast , only 12 were for the Union 4 Only hourly paid employees at Respondent 's plant in Sugarland , Texas, are represented by a union plant, but a month prior to the Union's request for recognition, Respondent's officers in Chicago began consideration of changes in its vacation and holiday benefits. The then-existing vacation program included, among other vacation provisions, a provision for a 3-week vacation after 10 years of employment. This was applicable to substantially all nonsupervisory employees, salaried and hourly paid alike. On September 1, 1965, after a period of study, Respondent changed this part of its vacation program to provide for 3 weeks' vacation after only 5 years' employment. At the same time it decided to add one additional holiday, termed a "floating" holiday since the date of its observance was to be announced later. On September 9, 1965, Respondent, over the signature of President Braithwaite, from its Chicago office directed letters to all its employees in the United States, including the 34 hourly paid employees in the Freeport plant who are involved in this proceeding, advising them of this liberalization of its vacation program. The announcement of this change, made a month after the Union's request for recognition, after the filing of the election petition on August 20, and only 2 weeks before the election, is alleged to constitute an unfair labor practice in violation of Section 8(a)(1) of the Act, as well as a valid objection to the election. As I have stated, the change in the vacation program affected, or would affect when it became operative, all Respondent's employees throughout the country, and not just the 34 hourly paid employees in the Freeport, Texas, plant. The change, however, though decided upon and announced in September 1965, was not to apply until the vacation period in 1966, a matter of several months after the election at the Freeport plant. Moreover, although it would beneficially affect all employees who in 1966 would have been in Respondent's employ 5 years, it would not affect any employee in the Freeport plant, either salaried or hourly paid, in the appropriate unit or not,5 for another 2 years. This is because the Freeport plant is comparatively new and it is not in dispute that any employee will have had 5 years' employment until that time. Since the enjoyment of this benefit was postponed for this period of time, the effect on the employees of its announcement on September 4, would, in my opinion, be minimal. Respondent stood committed to the effectuation of this policy, and it was not made contingent upon the defeat of the Union in the election at the Freeport plant. As to the reason for the change in the vacation program, almost all salaried employees, and hence the great majority of all employees, are college graduates who are recruited on college campuses by Respondent's representatives between the beginning of the normal college year in September and its end the following June. Respondent competes for these graduates with tither chemical companies, including DuPont and Monsanto. The credited testimony of Robert Powers, Respondent's executive vice president, is that the liberalization of the vacation plan was decided upon to bring Respondent into a better competitive position vas-a-vis these companies. The improved program, as was true of previous improvements, was advertised in brochures composed for the information of prospective recruits. 5 At the Freeport plant, as at the other plants, the salaried technical employees outnumbered the hourly paid nontechnical employees NALCO CHEMICAL CO. I do not believe that Respondent undertook the time and expense involved in formulating and effectuating a change in its vacation policy, which affected its approximately 1,000 employees in the United States (at least those who should remain in its employ for 5 years) for the purpose of influencing the election among the 34 hourly paid employees at its Freeport plant. The timing of Respondent's letter announcing the additional benefit perhaps raises a question. The record shows that over the last several years changes in Respondent's employee benefits, to go into effect the following year, were consistently announced by letter in the month of December. The suspicion arises that Respondent moved up the announcement in 1965 by 2 months to a date 2 weeks prior to the election at the Freeport plant, with the purpose of affecting its result. When questioned, Powers gave in explanation only that competition for college graduates was becoming keener every year, a fact which Respondent came to appreciate more fully in the fall of 1965 than in previous years. While not wholly convinced by an explanation somewhat lacking in circumstantiality, I am nevertheless disposed to accept it as true. While Respondent knew of the organizing activities of the Union at the Freeport plant, and was opposed to them, I do not find that the announcement of September 9 was made for the purpose of defeating the Union, and hence was not in violation of Section 8(a)(1) of the Act. I make the same finding with respect to the adoption of an additional holiday, and for the same reasons. 3. The speeches to the employees On September 17 and 21, a few days before the election, Plant Manager James Laubach addressed several shift meetings of employees on the subject of the Union, in American Tube Bending vein.6 In addition to making it clear that management was opposed to the Union, Laubach, according to three witnesses, further said that without the Union Respondent sometimes extended benefits, such as sick leave, to employees on an individual basis, but that if the Union came in this might not be the case. Laubach's own testimony is that he said, in effect, that in the event of a union contract Respondent might be restricted by its terms and might be unable to make concessions in individual cases. I accept Laubach's version as the more accurate. These witnesses further testified that Laubach said that Respondent was expanding abroad, resulting in supervisory opportunities open to employees, and that if the Union did not come in some employees might get to go abroad. Laubach, according to his own testimony, said about the same thing in different words, but meaning only that Respondent's future program might not be possible of achievement. The further testimony of employee Fisher was that at one of the meetings he asked Laubach if he felt that the employees would "lose benefits" if the Union came in, to which Laubach replied, "Yes, sir, I do," without elaboration. There is uncontradicted testimony that Supervisor Cook, pursuant to the request of his superior, questioned five employees as to whether they favored the Union, and that four said they did not and one that he did. This was reported to Laubach who told Cook to cease such inquiries, and he did. Laubach testified that he originally 6N L R.B v American Tube Bending Co, Inc, 134 F.2d 993 (C A 2), setting aside 44 NLRB 121, cert . denied 320 U S. 768 71 instructed the foremen to keep their ears open to discussions of the Union because Respondent, particularly in view of an election at the plant less than a year previously, which the Union lost, believed that it did not represent a majority of the employees, and that some of them had signed cards only to obtain an election . Laubach put an end to inquiries, such as those of Cook, giving as his reason that he was afraid that other supervisors might emulate Cook and not be able to question employees without appearing to coerce them. I do not find Cook's questioning of these five employees to have been coercive, in the context described. I do find that Respondent did have a bona fide doubt that the Union had a majority, as it had asserted in its letter to Respondent of August 12, 1965. I do not find that Respondent, by reason of the activities described immediately above, engaged in interference, restraint, or coercion within the meaning of Section 8(a)(1) of the Act. C. The Objections to the Election The Union's Objection 1 to the election is based upon (a) the announcement on September 9 of certain additional vacation and holiday benefits, and (b) repeated warnings by Respondent that if the Union came into the plant the employees would be called out on strike. I have found, as to (a), that the vacation benefit announced would not benefit the employees at the Freeport plant for 2 years or more, and that neither it nor the announcement of an additional holiday constituted interference, restraint, or coercion within the meaning of Section 8(a)(1) of the Act. By the same token, neither can stand as a valid objection to the election. As to (b), it appears that on September 19, 4 days before the election, Respondent sent a letter to the employees as 'follows: A "Union" has one and only one force to apply pressure to management. This one force is a strike. The unfortunate among you have gone through strikes. Ask them if it was worth it. Our record for dealing with you demonstrates conclusively that there is nothing a "Union" can get for you that is worth striking for. The attached strike cost tabulation shows you what a strike could cost you. The attached tabulation outlined the amount of money an employee could lose in the event of a strike , depending upon his pay and the length of the strike. The possibility of a strike if the Union came into the plant was also adverted to in the several talks Plant Manager Laubach made to groups of employees . He told them that the threat of a strike would always be present, that a strike would result in a loss of pay, and that Respondent could probably operate during the strike with the help of employees from its Chicago plant. The Regional Director in his Report on Objections cites Ideal Baking Company of Tennessee , Inc.,7 in support of his conclusion that repeated reference to a strike is in itself a sufficient ground for setting aside the result of an election. The cited case reveals a much more exaggerated 143 NLRB 546,552 72 DECISIONS OF NATIONAL and "unremitting" effort to show what would happen to employees if a strike should take place. Not only was a strike portrayed as inevitable, but so also was strike violence and physical harm to employees. A motion picture was shown to illustrate the point. Also, the employer, it was said, would hire permanent replacements for the strikers. The employer himself would so conduct any negotiations with the Union that a strike would result. The Board characterized this campaign as "not an attempt to influence the employees by reason, but an appeal to fear." I do not find that to be so in the instant case, and find Respondent's reference to the possibility of a strike not to be sufficient grounds for setting aside the election of September 23. CONCLUSIONS OF LAW 1. Respondent is engaged in commerce within the meaning of Section 2(6) and (7) of the Act. 2. The Union is a labor organization within the meaning of Section 2(5) of the Act. 3. Respondent has not engaged in the unfair labor practices alleged in the complaint. RECOMMENDED ORDER Upon the basis of the foregoing findings of fact and conclusions of law , and upon the entire record in this case, it is recommended that the complaint in Case 23-CA-2172 be dismissed . It is further recommended that Petitioner's Objection 1 to the election conducted on September 23, 1965, be dismissed. Rotax Metals, Inc. and Frederick Douglas Paige, an Individual . Case 29-CA-513. February 21, 1967 DECISION AND ORDER BY CHAIRMAN MCCULLOCH AND MEMBERS FANNING AND ZAGORIA On September 27, 1966, Trial Examiner James V. Constantine issued his Decision in the above- entitled proceeding, finding that the Respondent had engaged in and was engaging in certain unfair labor practices and recommending that it cease and desist therefrom and take certain affirmative action, as set forth in the attached Trial Examiner's Decision. Thereafter, the Respondent and the General Counsel filed exceptions to the Trial Examiner's Decision, and the General Counsel filed a supporting brief. Pursuant to the provisions of Section 3(b) of the National Labor Relations Act, as amended, the National Labor Relations Board has delegated its powers in connection with this case to a three- member panel. The Board has reviewed the rulings of the Trial Examiner made at the hearing and finds that no prejudicial error was committed. The rulings are hereby affirmed. The Board has considered the Trial LABOR RELATIONS BOARD Examiner's Decision, the Respondent's exceptions, the General Counsel's exceptions and brief, and the entire record in this case,[ and hereby adopts the findings,2 conclusions,3 and recommendations of the Trial Examiner. ORDER Pursuant to Section 10(c) of the National Labor Relations Act, as amended, the National Labor Relations Board hereby adopts as its Order the Recommended Order of the Trial Examiner, and orders that the Respondent, Rotax Metals, Inc., New York, New York, its officers, agents, successors, and assigns shall take the action set forth in the Trial Examiner's Recommended Order. i Because , in our opinion , the record and the exceptions and briefs adequately set forth the issues and positions of the parties, the Respondent 's request for oral argument is hereby denied 2 The Trial Examiner states that for an employee's claim against his employer pursuant to the terms of a bargaining agreement to be within the protection of the Act, the claim must be colorable , even though it may ultimately fail. The General Counsel contends that the proper test is whether or not the claim is made in good faith As the facts of this case show that the claim of employee Paige was both colorable and made in good faith, we need not pass on this issue . The presence of both factors clearly brought Paige's claims within the area of concerted activities protected by the Act. ' The General Counsel has excepted to the Trial Examiner's failure to find that Respondent 's discharge of Paige violated Section 8(a)(3) as well as Section 8(axl). We find it unnecessary to rule on this exception , since a remedial order based upon a finding of 8(a)(3) would not materially enlarge upon the remedial order herein based upon our finding of an 8(a)(1) violation TRIAL EXAMINER'S DECISION STATEMENT OF THE CASE JAMES V. CONSTANTINE, Trial Examiner: This is an unfair labor practice case initiated by a complaint issued on May 31, 1966, pursuant to Section 10(b) of the National Labor Relations Act. See 29 U.S.C. Sec. 160(b). It is based on a charge filed on February 10, 1966, by Frederick Douglas Paige against Rotax Metals, Inc., the Respondent herein. In essence the complaint alleges that Respondent has violated Section 8(a)(1) and (3), and that such conduct affects commerce within the meaning of Section 2(6) and (7) of the National Labor Relations Act, herein called the Act. Respondent has answered, admitting some facts but putting in issue the commission of any unlawful act. Pursuant to due notice this cause came on to be heard and was tried before me on July 13, 1966,' at Brooklyn, New York. All parties were present or represented at the hearing and were granted full opportunity to introduce evidence, examine and cross-examine witnesses, offer oral argument, and present briefs. The General Counsel has submitted a brief. At the close of the hearing Respondent and the General Counsel argued orally. The issues in this case are: (a) Whether the Charging Party, Frederick Douglas Paige, was discriminatorily discharged, or whether his employment was terminated for lawful cause; and i All dates mentioned hereafter refer to 1966, except where otherwise specified 163 NLRB No. 21 Copy with citationCopy as parenthetical citation