O & H Rest, Inc.Download PDFNational Labor Relations Board - Board DecisionsOct 12, 1977232 N.L.R.B. 1082 (N.L.R.B. 1977) Copy Citation DECISIONS OF NATIONAL LABOR RELATIONS BOARD O & H Rest., Inc., trading as The Backstage Restaurant and Chefs, Cooks, Cafeteria, Food, Beverages, and Service Employees Union, Local 22, Hotel & Restaurant Employees and Bartenders International Union, AFLCIO and Jose Antonio Alves. Cases 2-CA-14584 and 2-CA-14615 October 12, 1977 DECISION AND ORDER BY CHAIRMAN FANNING AND MEMBERS JENKINS AND MURPHY On June 8, 1977, Administrative Law Judge Walter H. Maloney, Jr., issued the attached Decision in this proceeding. Thereafter, the General Counsel filed limited exceptions and a brief in support thereof. 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 brief and has decided to affirm the rulings, findings, and conclusions of the Administrative Law Judge to the extent consistent herein, and to adopt his recom- mended Order, as modified.' The General Counsel has excepted to the Adminis- trative Law Judge's finding that Respondent did not violate Section 8(a)(3) of the Act when its agent, Terence O'Neill, terminated Jose Colon. We find merit in this exception. Colon was hired by O'Neill as a dishwasher and porter in April or May 1976.2 From approximately May until September, Colon received a weekly $50- cash premium in addition to his regular salary to oversee the kitchen employees and to insure that the kitchen was ready for inspection by health depart- ment officials. In September, however, O'Neill discontinued the premium and took away Colon's extra responsibilities on the ground that Colon was failing to keep the kitchen clean. The Administrative Law Judge found that Respondent had no knowl- edge of union activity at that time. In early October, the Union began an organizing campaign, and on October 8, it filed a representation petition. On October 13, it demanded recognition from Respondent. Around October 18, O'Neill asked Colon if he had signed an authorization card, and, although Colon had, he said no. Later that day, however, on the advice of kitchen employee Alves, Colon went tc, O'Neill and told him he had signed a card. O'Neill said he would not have expected such a thing from Colon. The Administrative Law Judge I To the extent that no exceptions were taken to the rulings, findings, and conclusions of the Administrative Law Judge not reversed herein, we adopt them pro forma. 232 NLRB No. 173 found that Respondent's interrogation of Colon violated Section 8(a)(1). Approximately 2 days later, O'Neill told Colon that he was transferring him to another restaurant, with a pay increase, until "the trouble" at Backstage cleared up. The Administrative Law Judge found that the transfer was for the purpose of removing Colon from the scene of the union activity and that, accordingly, it violated Section 8(a)(l). During the transfer conversation, Colon agreed to tell O'Neill about union activities in the kitchen. Soon thereafter they met at the John Barrymore, another O'Neill restaurant. Colon told him that employee Tellado was responsible for circulating authorization cards. O'Neill thanked him, gave him $100 cash, bought him a beer, and told him to report to another restaurant. The Administrative Law Judge found that the payment of money was for informa- tion about the organizing campaign and a violation of Section 8(a)(1). A few days later, on October 24, Colon returned to the Backstage. He told O'Neill that he preferred working there, and that Alves had called him and told him that the Union wanted Colon to return. According to the Administrative Law Judge, O'Neill angrily replied that Alves was not in charge and was not the Union, and that Colon would not be paid for his work at the other restaurant. O'Neill also accused Colon of telling the Union about the payment of $100. Colon denied telling the Union. Approximately 2-1/2 weeks later, Colon asked O'Neill for $10. O'Neill refused, reminding Colon that he had told the Union about the $100. Again Colon denied it. O'Neill said that while he had treated Colon as a friend in the past, he would do so no longer. A week later, another kitchen employee, Sixto Munoz, went to Colon and told him that O'Neill wanted him to clean the refrigerator. Colon told Munoz that he had too much work to do and that he wanted to speak to O'Neill. When O'Neill came, Colon told him that there was too much work and that he needed an assistant to help with the work. O'Neill told him that he was responsible for all of the work. When Colon said no, O'Neill said, "Get out, get out. You are fired." When Colon asked why, O'Neill said it was for refusing to clean the refrigerator. Colon replied that he was very busy, but that he would do it when he had time. O'Neill took him by the arm and ordered him to leave or he would call the police. O'Neill then paid him for past owed wages and Colon left. 2 All dates are 1976 unless noted otherwise. 1082 THE BACKSTAGE RESTAURANT On November 26, 5 days later, O'Neill terminated Alves.3 During the conversation in which he was terminated, Alves raised with O'Neill the termination of Colon. O'Neill replied that Colon was driving him crazy and, whenever O'Neill spoke to Colon, Colon went to Alves. The Administrative Law Judge found the above evidence insufficient to support a finding of an 8(a)(3) violation. According to him, in order to find a violation, "it would be necessary to conclude by a preponderance of the evidence that O'Neill's asserted reason [insubordination] was a pretext and that his underlying motive was a union-related consider- ation." To dismiss here, the Administrative Law Judge in essence rejected, as inadequate, evidence of O'Neill's knowledge of Colon's union activity, his stated animus toward Colon because of that activity, and his subsequent statement to Alves that he discharged Colon because of Colon's reports to Alves. We disagree with the Administrative Law Judge's conclusion as to Colon's discharge, for it rests on an incorrect understanding of the Board's test in an 8(a)(3) discharge case. We recently stated the correct test in The Youngstown Osteopathic Hospital Associa- tion. 4 Under Board precedent if part of the reason for terminating an employee is unlawful, the dis- charge violates the Act. As the Board and courts have so often indicated, the issue is not whether there existed grounds for discharge apart from union or protected concerted activities. That the employer has ample reason for discharging an employee is of no moment. An employer may discharge an employee for any reason, good or bad, so long as it is not for union or protected concerted activity. Even if the discharge is . . . in reprisal for protected concerted activity, it is unlawful. Here, it is clear that O'Neill's personnel decisions, including his ultimate decision to terminate Colon, were reached in part in response to his employees' union activity. Thus, immediately after learning that Colon had signed an authorization card, O'Neill transferred Colon to another restaurant. On termi- nating Alves, he told'him, in so many words, that it was for his organizing activities. And, in the same conversation, he stated that he terminated Colon in part because of Colon's reports to Alves of their conversations, clearly dealing with union-related matters. It was Colon's union activity which caused the initial falling out between O'Neill and Colon, and which we find resulted in O'Neill's unbending insistence on Colon's termination after his initial refusal to clean the refrigerator. In this context, O'Neill's admission to Alves, coupled with his animus toward Colon for his union activity, estab- lishes the unlawful motive for the discharge. We, therefore, conclude that the decision to terminate Colon was based in substantial part on Colon's support for the Union and O'Neill's belief that Colon had informed the Union about the $100 payment. AMENDED REMEDY In addition to the discriminatory termination of Jose Antonio Alves, we have also found that Colon's termination violated Section 8(a)(3) of the Act, and shall order that they be reinstated and reimbursed for any loss of pay as set forth in F W. Woolworth, 90 NLRB 289 (1950), with interest to be computed in the manner set forth in Florida Steel Corporation, 231 NLRB 651 (1977).5 ORDER Pursuant to Section 10(c) of the National Labor Relations Act, as amended, the National Labor Relations Board adopts as its Order the recommend- ed Order of the Administrative Law Judge, as modified below, and hereby orders that the Respon- dent, O & H Rest., Inc., trading as The Backstage Restaurant, New York, New York, its officers, agents, successors, and assigns, shall take the action set forth in the said recommended Order, as so modified: 1. Substitute the following for paragraph 2(b): "(b) Offer to Jose Antonio Alves and Jose Colon immediate and full reinstatement to their former positions or, in the event that their former positions no longer exist, to substantially equivalent employ- ment, without prejudice to their seniority or other rights previously enjoyed, and make them whole for any loss of earnings they have suffered because of the discrimination practiced against them, with backpay and interest as set forth in the Remedy, as amended." 2. Substitute the attached notice for that of the Administrative Law Judge. 3 The Administrative Law Judge found this termination a violation of Sec. 8(aX3) of the Act. 4 224 NLRB 574, 575 (1976). While this case dealt with a discharge for concerted protected activity under Sec. 8(aXI). the Board has long applied the same legal standards for 8(aX3) and (I) discharges. s See, generally. Isis Plumbing & Healing Co., 138 NLRB 716(1962). 1083 DECISIONS OF 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 coercively interrogate employees concerning their union activities or the union activities of other employees. WE WILL NOT pay employees to disclose the union activities and sentiments of other employ- ees. WE WILL NOT offer employees money or any other financial inducement to vote against the Union. WE WILL NOT threaten employees with dis- charge, if they support the Union. WE WILL NOT transfer employees to another location in order to discourage union activities. WE WILL NOI discourage membership or activities on behalf of Chefs, Cooks, Cafeteria, Food, Beverages, and Service Employees Union, Local 22, Hotel & Restaurant Employees and Bartenders International Union, AFL-CIO, or any other labor organization, by discharging employees or discriminating against them in their hire or tenure. WE WILL NOT in any other manner interfere with, restrain, or coerce employees in the exercise of rights guaranteed to them by Section 7 of the National Labor Relations Act. WE WILL offer to Jose Antonio Alves and Jose Colon full and immediate reinstatement to their former position or, if those jobs no longer exist, to substantially equivalent employment, and WE WILL make them whole for any loss of pay which they have suffered by reason of the discrimination practiced against them with interest. WE WIL.L recognize and, upon request, bargain collectively with Chefs, Cooks, Cafeteria, Food, Beverages, and Service Employees Union, Local 22, Hotel & Restaurant Employees and Bartend- ers International Union, AFL-CIO, as the exclu- sive collective-bargaining representative of all of I The principal docket entries in this case are as follows: Charge filed on November 4. 1976. by Chefs, Cooks, Cafeteria, Food. Beverages, and Service Employees Union, Local 22. Hotel & Restaurant Employees and Bartenders International Union. AFL CIO (herein called Union or Local 22), in Case 2 CA 14584: charge filed herein on November 29, 1976. by Jose Antonio Alves. an individual: consolidated complaint issued herein on December 27, 1976. and amended on January 21, 1977; the Respondent's answer filed on January 27. 1 977; hearing held in New York. New York, on February 28 and March 1. 1977; briefs filed herein by the General Counsel and the Respondent on April 4. 1977. In a related representation case, a petition for an election among all of Backstage's kitchen employees, with the usual exceptions, was filed on October 8, 1976, (Case 2-RC 17481); Stipulation for Certification Upon Consent Election was approved by the Regional Director on October 27, 1976: petition dismissed on January 12. 1977. because of the pendency of blocking charges and the issuance of the consolidated complaint herein. our regular full-time kitchen employees, excepting part-time employees, all other employees, guards, and supervisors as defined in the Act, and, if an agreement is reached, embody the same in a signed written contract. O & H REST., TRADING AS THE BACKSTAGE RESTAURANT DECISION STATEMENT OF THE CASE WALTER H. MALONEY, JR., Administrative Law Judge: This case was heard at New York, New York, upon a consolidated unfair labor practice complaint,' issued by the Acting Regional Director for Region 2 and later amended, which alleges that the Respondent, O & H Rest., Inc., trading as The Backstage Restaurant (herein called Backstage), 2 violated Section 8(a)(1), (3), and (5) of the Act. More specifically, the complaint, as amended, alleges that the Respondent unlawfully interrogated employees concerning their union activities, and the union activities of other employees, threatened to discharge employees if the Union won an election, engaged in espionage of the union activities of employees, paid employees for information relating to the union activities of other employees, and conferred benefits upon employees to induce them to abandon their support for the Union. The consolidated complaint also alleges that the Respondent discriminatorily discharged employees Jose Antonio Alves and Jose Colon because of their union activities, and that the Respondent unlawfully refused to recognize and bargain with Local 22 as the representative of its full-time kitchen employees. The General Counsel seeks a so-called Gissel remedy,3 by the terms of which the Respondent would be required to recognize and bargain with Local 22. The Respondent denies the commission of any independent violations of Section 8(a)(1), asserts that Alves and Colon were dis- charged for just cause, and denies the propriety of a Gissel remedy, stating that the Union had no business abrogating the terms of a representation election by filing blocking charges. The Respondent also alleges, by way of an affirmative defense, that the Union and various employees involved in this case were guilty of serious vandalism and that such actions should preclude the Board from granting Respondent admits, and I find, that it is a New York corporation which operates a restaurant in New York City. From August 23, 1976, until October 27, 1976, a representative penod. Raspondent derived, in the course and conduct of its restaurant business, gross revenues in excess of$100,000, which, when projected on a 12-month basis, amount to gross revenues in excess of $600,000. In the course and conduct of its business, it purchased goods and materials valued in excess of $16,000 from New York businesses which, in turn, purchased said goods and merchandise from points and places located outside the State of New York. Accordingly, the Respondent is an employer engaged in commerce within the meaning of Sec. 2(2), (6), and (7) of the Act. The Union is a labor organization within the meaning of Sec. 2(5) of the Act. :' N.LR.B. v. Gissel Packing Co., Inc., 395 U.S. 575 (1969). 1084 THE BACKSTAGE RESTAURANT any remedy. Upon these contentions, the issues herein were joined.4 FINDINGS OF FACT I. THE UNFAIR LABOR PRACTICES Respondent Corporation owns and operates The Back- stage Restaurant, which, as its name might suggest, is located in the theater district of midtown Manhattan. Terence O'Neill owns 25 percent of the corporation and, since March 1976, has been actively engaged in the management of this concern. O'Neill also owns a substan- tial interest in other Manhattan restaurants, including the John Barrymore, The Abbey, and Jim Brady's. Early in October 1976, Local 22 began an organizing campaign among the kitchen employees at Backstage. The drive was initiated by Eduardo Tellado, a chef, who went to the Union's office, spoke to Union Organizer Noel Rodriguez, and suggested that the Union interest itself in representing Backstage employees. Rodriguez gave Tellado a number of authorization cards and suggested that he get them signed. Tellado returned to the restaurant and promptly obtained the signatures of I employees. He turned the card in to the Union. A few days later, he obtained two additional signatures and turned those cards in to the Union. As discussed more fully hereinafter, by October 13, at least 8 of the Respondent's 15 full-time kitchen employees had signed valid authorization cards. On October 8, the Union filed a representation petition with the Board in Case 2- RC-17481. On October 13, a representative of Local 22 visited O'Neill at Backstage and demanded recognition. O'Neill referred him to Charles F. Mintz, the Company's attorney. On October 18, Union Representative Harry Dallas phoned Mintz and repeated the demand for recognition. Mintz said he would see him the following day at the Board office to discuss the pending representation petition. At no time did the Respondent ever recognize or agree to bargain with the Union. It did execute an agreement for a consent election which was approved by the Regional Director on October 27. No election ever took place because of the filing of the charges herein. Late in October, Tellado approached O'Neill and requested a change in working hours. The conversation took place in the bar of the restaurant. Tellado explained to O'Neill that he lived in Brooklyn, so when he worked late night hours he was not able to get home until 3 or 4 o'clock in the morning. He wanted to work the day shift instead. O'Neill responded to his request by stating that he too had a problem; namely, the Union, and said he did not like the Union. Tellado pressed him with his request, repeating that he wanted to change shifts. O'Neill finally agreed, but later said to Tellado, "Don't vote for the Union when the election comes." Shortly thereafter, Tellado started work- ing at 8 a.m. One of the alleged discriminatees, Jose Antonio Alves, began working at Backstage in January 1976, as a part-time salad man. In July 1976, he became a full-time employee. On October 5, he signed a union card presented to him by Tellado. He also assisted Tellado in the organizing effort, 4 Errors in the transcript have been noted and corrected. 5 Alves was a Spanish-speaking wvitness who testified with the aid of an passing along cards from Tellado to fellow employees Diomedes Crespo and Antonio Perez. Alves and the Respondent had an arrangement whereby he would be paid "off the books." This is the phrase which was used to describe the fact that the Company bookkeeper would not prepare a weekly check for Alves, containing the various income tax and social security withholdings. Instead, she would simply dip into petty cash and, with O'Neill's permission, pay Alves $200 in currency so that the salary agreed upon between the Respondent and Alves was also his net take-home pay. Another employee, Diomedes Crespo, was also paid on the same basis. I credit the testimony of Rafael Perez that, on one occasion in October, he overheard a conversation at the restaurant between O'Neill and Sixto Munoz. In the course of this conversation, O'Neill told Munoz, "... Union coming, everybody out." About 2:30 p.m. on October 18, O'Neill summoned Alves from the restaurant kitchen to the bar and began to speak with him in the presence of another managerial employee named Hook. O'Neill asked Alves on this occasion if he had signed a card and Alves replied that he had done so. He asked why Alves had done so, stating that this action would make him go to jail and would cause problems for Alves. O'Neill then asked Alves where he had obtained a union card. Alves replied that he had found it in his locker. While O'Neill testified to various conversations with Alves concerning the latter's pay status, he never specifically denied the conversation here in question concerning Alves' union activities. About this same time, O'Neill also had a conversation with Jose Colon at Backstage. I credit Colon's testimony that O'Neill asked him if he signed a union card and that initially Colon had replied that he had not done so. In fact, Colon did sign a card. O'Neill asked Colon a second time if he had signed a card and also wanted to know which of the other boys had signed cards. Colon replied that he did not understand the question. Shortly thereafter, Colon men- tioned this conversation to Alves in the kitchen. Alves advised Colon to tell O'Neill the truth so Colon went back to the dining room and told O'Neill that he had done so. O'Neill said that he would never have expected such a thing from Colon. A few days later, O'Neill came to Alves in the kitchen at Backstage and told Alves that his lawyer informed him he would have to formally put him on the Company's payroll, meaning that he would be subject to withholding taxes. O'Neill also said he had to report Alves to the Labor Department. He said that he would have a secretary bring Alves an Internal Revenue Service W-2 withholding form to sign. Alves replied, "Fine." A few days later, O'Neill had a second conversation in the kitchen with Alves. He told Alves that he had been to "court" 5 and had stated there that Alves was an independent contractor. He then told Alves that Alves would have to pay income taxes out of the $200 in cash he received each week and would not be allowed to vote in the election. Alves protested about being denied the right to vote, stating that he had been a union member for many years. interpreter. I take his reference to "court" to mean that O'Neill told him that he had been at the National Labor Relations Board's Regional Office. 1085 DECISIONS OF NATIONAL LABOR RELATIONS BOARD Colon testified that, on or about October 20, O'Neill approached him in the kitchen and told him that he was going to be transferred to another restaurant where he would earn $150 per week. O'Neill said he would send him there for about 3 weeks until "this trouble" cleared up. Colon agreed to tell O'Neill what was going on in the kitchen. They made an appointment to meet and discuss the matter at the John Barrymore Restaurant, another of O'Neill's holdings, and did so a short time thereafter. At this meeting, Colon informed O'Neill that Tellado was the employee who was responsible for circulating union cards. He also said that Alves had signed a card, and that Munoz and some other employees who had been discharged had signed cards. O'Neill then told Colon that he would not forget the favor Colon had just done, pulled $100 in cash out of his pocket, and handed it to Colon. Colon responded by asking O'Neill whether he was trying to buy him, but he took the money. O'Neill then bought Colon a beer and told him to report to work at another restaurant, Jim Brady's, where some renovation was in progress in preparation for opening. O'Neill admits meeting with Colon at the John Barrymore and says he did so only because there was a Spanish-speaking waitress working at that establishment who could serve as an interpreter. He admits giving Colon $100 in cash on that occasion but claims that it was merely an advance for Colon's wages for working at Jim Brady's. I think O'Neill's explanation for this sequence of events is highly implausible and I credit Colon. On or about October 24, Colon returned to Backstage. When O'Neill saw him, he asked him what he was doing there. Colon replied that he preferred to work at Backstage and that Alves had called to tell him that the Union wanted him back at Backstage. O'Neill angrily told Colon that Alves was not the boss and that Alves was not the Union either. Colon told O'Neill that he had 5 days' work there and that he could keep those 5 days in exchange for the $100. O'Neill said that he would not pay Colon for the 2 days that he worked at Jim Brady's. He also said he knew Colon had gone to the Union and had informed them O'Neill had given him $100. Colon denied having done so. About the middle of November, Colon asked O'Neill for $10. O'Neill replied, "Why should I do you a favor and give you $10?" citing the fact that Colon had gone to the Union and had told them O'Neill had given him $100. Again Colon denied he had done so. O'Neill said, in the past, he had treated Colon as a friend but that he would do so no longer. On or about November 21, while Colon was working in the kitchen, Sixto Munoz, who was acting in effect as a straw boss, came to Colon and relayed a message from O'Neill to the effect that he should clean out the refrigerator. 6 Colon objected, saying that it was too much work. He told Munoz he wanted to speak with O'Neill, whereupon O'Neill came to the kitchen. Colon told O'Neill he needed an assistant because he had too much to do. O'Neill insisted Colon was responsible for all the work that had to be done and Colon replied, "No," at which point 6 One of the reasons O'Neill had hired Colon on a full-time basis at Backstage was to keep the kitchen clean and ready at all times for inspection by health department officials. Originally. O'Neill paid Colon S50 a week in cash, over and above his regular reported salary, but he discontinued this practice about September. O'Neill ordered him out of the restaurant, telling him he was fired because he refused to clean the refrigerator. Colon then objected he was not refusing to clean it but he had so much work to do he could only clean it when he had time. O'Neill took Colon by the arm and told him to get out or he would call the police. O'Neill paid him off and again ordered him out of the restaurant. After being notified he would have to be on the regular payroll, Alves continued to work at Backstage for another month "off the books." On or about November 26, Peter Kratz, the head chef, told Alves O'Neill wanted to see him in the bar. Kratz indicated to Alves that he was about to be fired. Alves asked Kratz why and Kratz replied that O'Neill had his reasons. Alves found O'Neill in the bar of the restaurant and asked him if he was being fired. O'Neill said he was. Alves asked why and O'Neill replied, "I don't want you working back there." Alves asked him further, "Is that the only reason?" and pressed him as to whether the discharge was because of the Union. O'Neill then told Alves that, because of him, "I had to go downtown three times." 7 Alves then went to see Kratz and asked Kratz to put in a good word for him with O'Neill. Kratz did so. Alves went back to the bar and again spoke with O'Neill. O'Neill persisted in his original decision, telling Alves that he was letting him go because he could not have someone around who was working "off the books." During this conversation, O'Neill mentioned he had fired Jose Colon because Colon was driving him crazy and was reporting back everything O'Neill said to him to Alves. When Alves reported this conversation to Kratz, Kratz said he would give him a recommendation for another job and wrote out a short note with the name and address of another restaurant of his acquaintance, stating on the note in essence that, in his opinion, Alves was a good employee. Kratz gave the note to Alves and the latter left the restaurant. Jerry Toner and O'Neill are principals, both in Backstage and in another restaurant called The Abbey. Jose Collado formerly worked at The Abbey, left there, and began to work at Backstage during the payroll period ending October 16. Collado testified without contradiction that during his last week at The Abbey and before he started at Backstage, Toner spoke to him in the dining room at the Abbey and offered him $100 to vote against the Union. II. ANALYSIS AND CONCLUSIONS A. The Refusal of the Respondent To Bargain With Local 22 The parties agree that, on October 13, representatives of Local 22 went to Backstage Restaurant, spoke with O'Neill, and asked him to recognize and bargain with the Union. O'Neill told them to speak with his attorney, Charles Mintz. Five days later, Local 22's representative, Harry Dallas, phoned Mintz and made the same request. The Respondent admits both of these requests were made 7 The Regional Office of the Board is located in an area often referred to as lower Manhattan or downtown Manhattan. 1086 THE BACKSTAGE RESTAURANT and admits the further fact it refused to recognize the Union. In order to determine whether the Respondent was then under any obligation to bargain with Local 22, it must first be determined whether or not Local 22 was the majority representative of the Respondent's employees.s While the date from which a bargaining order should read is the date on which an employer embarks upon a course of unlawful conduct which renders a fair and free election impossible,9 the General Counsel is correct in his contention that October 13 is the date on which majority status should be measured since "the critical Gissel date for determining majority status where no election has been held is the date the union seeks recognition." Peerless of America, 198 NLRB 982, 984 (1973). 1. Eligibility On October 13, the Respondent employed 15 full-time kitchen employees at The Backstage Restaurant. The record reflects that Jose Colon, Sixto Munoz, Luis Morot, Ramon Munoz, Jose Collado, James Freeman, Michael McLaughlin, and Martin Orange were employed in the unit on the critical date. In addition to these persons, there were several other alleged employees mentioned in the record whose status is in dispute. Jose Antonio Alves and Diomedes Crespo - Alves and Crespo were working at Backstage on the critical date. Alves was a salad man and worked full time between July and November, when he was discharged. Crespo worked through October and up until February 1977. Like Alves, Crespo was a salad man but worked on the night shift, putting in a 35-hour week. The Respondent objected to their inclusion in the record, but the nature of these objections vacillated at the hearing and they were not further explained in the brief. At first, the Respondent contended that Alves and Crespo were not employees but subcontractors because they were paid "off the books." Later, it asserted they were casual employees but still ineligible to be included in the bargaining unit. Neither contention has any merit. Both employees worked full time in the kitchen under conditions indistinguishable from those of regularly paid employees. The only difference between their status and that of other employees is that Alves and Crespo were paid a flat sum each week in cash rather than being compensat- ed from the regular payroll on which Federal, state, and F.I.C.A. deductions are made. The fact the Respondent and these individuals had an arrangement respecting compensation which was designed to defeat the payment of withholding taxes does not detract from the fact both worked for a stated sum under regular supervision and had none of the independence of action or judgment normally associated with an independent contractor. Measured by the standards of an industry where turnover appears to be extremely high, both worked for the Respondent for fairly long periods of time. There is not a scintilla of evidence that either party regarded his tenure at Backstage as having other than indefinite duration. Accordingly, I conclude 4 The General Counsel alleged in par. 6 of the complaint that all regular full-time kitchen employees, with the usual exclusions, who are employed at Backstage Restaurant constitute a unit appropriate for collective bargaining. that they were employees within the meaning of the Act, and they were employed by the Respondent as full-time kitchen employees on October 13. Ivan Tellado - Ivan Tellado, the brother of Eduardo Tellado, worked for the Respondent only 3 or 4 days. He came to Backstage at his brother's request to be present in the kitchen in order to learn to cook. There is considerable doubt that he was even actually hired by the Respondent in any capacity. He signed a card dated October 4, 1976. Assuming he signed the card during his employment, the mathematics of the calendar indicate he could not have been employed by the Respondent on October 13, the critical date in this proceeding. The General Counsel concedes he should not be in the unit, and I will exclude him. Shui Tung - Tung was employed by the Respondent during late night and early morning hours to clean the restaurant. He played no part in the preparation of food and was not present rni the premises during the hours when food was served. The stipulated list of employees found in the record indicates that Tung was not employed before the week ending October 23, and hence was not an employee on October 13. For this reason, and also because his employment was unrelated to the preparation of food, I conclude that Tung was not a member of the bargaining unit on the critical date. Daniel Murphy - Murphy was employed by the Respondent on the critical date and is still working there. O'Neill testified that he was a part-time employee. However, the payroll records for October, which are in evidence, indicate that he worked 48 hours a week at least during the month of October. Accordingly, I will include Murphy in the unit on the critical date as a full-time kitchen employee. Peter Kratz - Kratz is the head chef. According to O'Neill, he completely runs the kitchen. His weekly pay is much higher than that of other employees. I discredit O'Neill's assertion that Kratz was hired in July, if by that statement O'Neill meant that Kratz became an employee of the Respondent during that month, because the stipulated list of employees in the record, as well as the Respondent's payroll records, indicates that Kratz' first full week of employment ended on October 23. Accordingly, he was not on the payroll on the critical date and should not be included in the unit for that reason alone, leaving aside any question of his supervisory status. Robert McLaren - McLaren was a night chef. The records in evidence indicated that, during the last three payroll periods in October, he worked a 48-hour week. O'Neill stated that McLaren left in November and was considered by him a temporary employee who worked a total of about 4 weeks. In light of this testimony, which is uncontradicted, I conclude that McLaren was not hired as a permanent employee and, as a temporary employee, should not be included in the bargaining unit. Higinio Antonio Perez - Perez, sometimes referred to in the record as Tony or Antonio Perez, has worked full time for the Respondent as a porter for 6 months and, according The Respondent failed to deny this allegation so it stands admitted on the basis of the initial pleadings. Sec. 102.20 of the Rules and Regulations. 9 Trading Port, Inc., 219 NLRB 298 (1975). 1087 DECISIONS OF NATIONAL LABOR RELATIONS BOARD to O'Neill, may still be working there. He was in the Respondent's employ on October 13. Accordingly, he should be included in the unit. Higinio Raphael Perez - Higinio Raphael Perez, who is often referred to by his middle name, is a night pantryman who worked full time at least thoughout the entire month of October. Accordingly, he should be included in the unit. Eduardo Tellado - Tellado was employed full time during the critical period in the kitchen as a broilerman. Respondent objects to his inclusion in the unit on the basis that he was a supervisory employee. Tellado testified credibly that he had no power to hire or fire or to direct employees in the kitchen in the performance of their duties. He had no power to discipline employees. He simply took orders from waiters, prepared the portion of the order for which he was responsible, and put it out for the waiter. I discredit O'Neill's conclusionary testimony that Tellado was "more or less" in charge of the kitchen. As he possessed none of the statutory requirements of superviso- ry authority, I conclude that Tellado should be included in the unit as of October 13. Elias Rodriguez - Rodriguez worked as a chef through- out the month of October. He received the same compensa- tion as did Tellado and performed similar duties. He was paid $100 per week less than Kratz. There is no evidence in the record of any kind that Rodriguez hired or fired employees or that he responsibly directed them in the course of their employment. Accordingly, he should be deemed to be a member of the unit. In summary, the record herein reflects that, as of October 13, when the Union made its first demand for recognition, the Respondent employed 15 full-time employees in its kitchen.10 2. Local 22's majority status The General Counsel bases his claim that the Union had majority status upon union authorization cards which were signed by various employees in the course of the Union's organizing drive. The cards in question are conventional dual-purpose cards which are printed in English on one side and in Spanish on the other side. The Respondent conceded that four cards were validly executed. They are the cards of Jose Colon, Sixto Munoz, Ramon Munoz, and Luis Morot. The Respondent interposed no objection to the cards of Elias Rodriguez and Eduardo Tellado on the basis of their execution, its objection to their cards being founded solely on the contention that Rodriguez and Tellado were not in the bargaining unit because of their alleged supervisory status. As I have concluded that both individuals were employees and members of the bargaining unit, I will count their cards in determining the Union's majority status. The Respondent interposed no objection to the cards of Jose Alves or Diomedes Crespo on the basis of their execution, its objection to their cards being founded on the contention that Alves and Crespo were either casuals or contractors but, in any event, not employees who were properly a part of the bargaining unit. As I have concluded that both men were employees in the 10 Since September, the Respondent has employed Walter Smalley. a member of Local 22, as a steward. It is unnecessary for purposes of determining majority status to decide whether Smalley should be considered bargaining unit, I will also count their cards in determining the Union's majority status. After determining that the cards executed by all of the aforementioned employees are valid in supporting the Union's claim of majority status as of October 13, I conclude that, as of that date, the Union held authorization cards properly signed by at least 8 of 15 employees who were employed in the appropriate bargaining unit, and further conclude that it was the exclusive collective- bargaining representative of the Respondent's full-time kitchen employees on and after that date. The General Counsel proffered five additional designation cards to which objections were lodged by the Respondent. In light of the above finding, it is not necessary to pass upon the validity of these cards and I will not do so. In light of these findings, and the findings hereinafter made in the "Reme- dy" section of this Decision, I conclude that the Respon- dent's refusal to bargain with Local 22 constituted a violation of Section 8(a)( ) and (5) of the Act. B. Independent Violations of Section 8(a)(1) of the Act The following acts and conduct on the part of the Respondent, as more fully set forth above, constitute violations of Section 8(aX I) of the Act: (1) O'Neill granted Tellado a change in shift in conjunction with his own request to Tellado to abandon support for the Union. There is no question that Tellado initiated the request for a change of working hours so that he would not arrive home in Brooklyn so late at night and there is no question that the Respondent granted the request. However, when the Respondent coupled its response with a counter-request to Tellado to forgo his union support, the two items became, in effect, a tradeoff, so the change of working hours amounted to the granting of a benefit designed to interfere with the Section 7 rights of the employee in question. (2) O'Neill's statement to Munoz, which was overheard by Rafael Perez, that if the ". . . union" came in, "everybody out" constituted a threat to discharge employ- ees in reprisal for their union support and is a clear violation of the Act. (3) On or about October 18, O'Neill questioned Alves in the presence of another management employee concerning whether he had signed a card and why he had signed one. He said that the action would "cause problems" for Alves as well as for himself. The questioning by a high management official, coupled with a veiled threat, consti- tutes coercive interrogation which violates the Act. (4) On or about the same date O'Neill questioned Alves, he also questioned Colon concerning Colon's union activities and also asked Colon which other employees signed cards. Colon fabricated a response, indicating his own fear of reprisal, and later changed his reply to O'Neill on advice from Alves. The setting and response indicate clearly that the questioning was coercive and a violation of the Act. a member of the unit (and hence whether his membership in Local 22 counts in determining the Union's majority), so I make no determination of this question. 1088 THE BACKSTAGE RESTAURANT (5) During a conversation at the John Barrymore Restaurant, which followed shortly after O'Neill's initial conversation with Colon, Colon told O'Neill who was responsible for pushing the organizing drive and named certain employees who had signed cards. O'Neill expressed his gratitude to Colon for furnishing such information and handed him $100. As O'Neill complained later, the Union and presumably other employees got wind of his action. Paying employees for information concerning an orga- nizing campaign is an obvious interference with their rights and the rights of other employees and is a serious violation of Section 8(a)( ). (6) O'Neill transferred Colon from Backstage to Jim Brady's until "the trouble" at Backstage cleared up. This is another way of saying that Colon's transfer was prompted by a desire on O'Neill's part to put a damper on his union activities and to reduce union organizing strength at Backstage. The transfer violates Section 8(a)( I) of the Act. (7) As a principal in the operation of Backstage, Toner is a person for whose words and actions Backstage is vicariously responsible, even though he spends his time managing The Abbey and is part owner of that establish- ment. When Toner offered prospective Backstage employ- ee Collado $100 to vote against the Union after he was hired at Backstage, Toner made an illegal inducement which violated Section 8(a)(l) of the Act. C. The Discharge of Jose Colon There is no doubt from the facts found above that Colon was a union supporter and that O'Neill regarded him as such. It is also true Colon had incurred O'Neill's displea- sure because of his union activities, as evidenced by O'Neill's refusal to advance or give him $10 sometime in November when Colon requested it. Colon was fired during an argument and altercation with O'Neill over whether Colon was required to clean the refrigerator at the restaurant. To find that this discharge was discnminatorily motivated, it would be necessary to conclude by a preponderance of the evidence that O'Neill's asserted reason was a pretext and that his underlying motive was a union-related consideration. Such a determination is difficult to make, even after construing Colon's own version of the incident in a light most favorable to him, something I decline to do. Colon was not a satisfactory employee. For several months, he had been paid a premium in cash over and above his regular salary to induce him to keep the kitchen, including the refrigerator, in immaculate condition so that the restaurant would pass muster during any health department inspections. Colon performed this task in such a desultory manner that, following Colon's brief vacation in Puerto Rico, O'Neill discontinued the weekly cash premium. This event took place sometime before any rumblings of unionism were heard at the restaurant. When, on or about November 21, the issue of Colon's duties arose again, it was merely the resurfacing of an old problem. O'Neill told Colon through an intermediary that Colon was to keep the refrigerator clean in addition to his other kitchen duties. Colon insisted on speaking to O'Neill. When O'Neill came into the kitchen, Colon told O'Neill that this was too much to expect and spoke to O'Neill in an insubordinate manner. As a result of Colon's abrupt behavior, O'Neill fired him on the spot. Even assuming that, in the course of the terminal conversation, Colon backed away from his initial refusal to clean the refrigera- tor, he left O'Neill with the understanding that he would only do so when he got around to it and after finishing his other duties. O'Neill's response was immediate, angry, and clearly prompted by Colon's own attitude and behavior upon receiving a legitimate work assignment. The General Counsel does not argue that Colon was being goaded or harassed. Such an argument could hardly float, since cleaning the refrigerator had long been a part of Colon's standing duties. On the occasion in question, Colon was only being reminded, and through an intermedi- ary at that, of what was expected of him. The discussion which ensued in the kitchen took place as a result of Colon's request, not at O'Neill's instigation, and O'Neill's response to the situation was hardly different from what one might expect of any employer who is confronted by a balky and insubordinate employee. Accordingly, I con- clude that Colon was in fact discharged for insubordina- tion, not for union activities, and that the discharge did not violate the Act. Accordingly, so much of the consolidated complaint which alleges a violation of the Act in this regard should be dismissed. D. The Discharge of Jose Antonio Alves Alves was also a union activist and O'Neill knew it. As found above, Alves had been the object of unlawful interference with his Section 7 rights by O'Neill during the first weeks of the organizing effort. For a considerable period of time, Alves and O'Neill had been parties to an illegal arrangement whereby Alves was paid each week in cash in a manner calculated to avoid payment of state and Federal income taxes and other normal withholdings. There is no doubt that both Alves and the Respondent were in pari delicto in what amounts to a conspiracy to violate the Internal Revenue Act, so it is fatuous for the Respondent to assert in this proceeding that Alves' wrongdoing should serve as a defense to the Respondent's own misconduct and preclude the Board from ordering a remedy which might otherwise be found to be appropriate. After the organizing campaign came into full flower and an election agreement was concluded, O'Neill told Alves that he could no longer pay him "off the books" and would have to treat him as an employee subject to normal withholding taxes. Alves said "Fine" and anticipated that the Respondent would soon thereafter present him with an Internal Revenue W-2 withholding form on which he would indicate his income tax deductions. No such form was forthcoming and the Respondent continued to pay Alves in cash "off the books" for another month. Indeed, he also continued to pay Crespo in this manner and raised no objection to Crespo's continued employment. In the first of two terminal interviews between O'Neill and Alves on November 26, O'Neill complained that, because of Alves, he had to "go downtown" three times. While O'Neill stated that his reason for terminating Alves was because he could not continue to have him work at Backstage "off the books," he admits that, on November 26, he did not offer Alves, on the occasion of his discharge, the option of 1089 DECISIONS OF NATIONAL LABOR RELATIONS BOARD continuing as an employee on a regular payroll basis. When asked why he had not made the offer, O'Neill simply replied, "I had my reasons." If those reasons did not relate to union considerations, we have yet to know what they are. In light of these factors and of O'Neill's evasive explanation, it is quite apparent that O'Neill terminated Alves because of the latter's union activities. This action violated Section 8(a)(3) of the Act. Upon the foregoing findings of fact, and upon the entire record herein considered as a whole, I make the following: CONCLUSIONS OF LAW 1. The Respondent, O & H Rest., Inc., trading as The Backstage Restaurant, is now and at all times material herein has been an employer engaged in commerce within the meaning of Section 2(2), (6), and (7) of the Act. 2. Chefs, Cooks, Cafeteria, Food, Beverages, and Service Employees Union, Local 22, Hotel & Restaurant Employees and Bartenders International Union, AFL- CIO, is a labor organization within the meaning of Section 2(5) of the Act. 3. All regular full-time kitchen employees of the Respondent, exclusive of all other employees, part-time employees, guards, and supervisors as defined in the Act, constitute a unit appropriate for collective bargaining within the meaning of Section 9(b) of the Act. 4. Since October 13, 1976, Chefs, Cooks, Cafeteria, Food, Beverages, and Service Employees Union, Local 22, Hotel Restaurant Employees and Bartenders International Union, has been the exclusive collective-bargaining repre- sentative of all employees employed in the unit found appropriate above in paragraph 3 for purposes of collective bargaining within the meaning of Section 9(a) of the Act. 5. By its refusal to bargain with the Union designated above in paragraphs 2 and 4 as the duly designated majority representative of its employees in the unit found appropriate in Conclusion of Law 3, above, the Respon- dent herein has, since October 18, 1976, violated Section 8(a)(5) of the Act. 6. By discharging Jose Antonio Alves because of his union sentiments and union activities, the Respondent herein violated Section 8(a)(3) of the Act. 7. By the acts and conduct set forth above in para- graphs 5 and 6; by coercively interrogating employees concerning their union sentiments and activities and the union sentiments and activities of other employees; by paying employees to disclose the union activities and sentiments of other employees; by offering money to employees to vote against the Union; by threatening employees with discharge if they continued to support the Union; and by transferring employees to another location in order to minimize union strength and to discourage unionization, the Respondent herein violated Section 8(a)(l) of the Act. 8. The aforesaid unfair labor practices have a close, intimate, and substantial effect on the free flow of 1I F. W. Woolworth Conpany, 90 NLRB 289 (1950). 12 See, for example, Byrne Dairy Inc. v. N. LR.B., 431 F.2d 1363 (C.A. 2, 1970); N.LR.B. v. International Metal Specialities, Inc., 433 F.2d 870 (C.A. 2, 1970); N.L.R.B. v. Marcellus Vault & Sales, Inc., 431 F.2d 933 (C.A. 2, commerce within the meaning of Section 2(6) and (7) of the Act. REMEDY Having found that the Respondent herein has committed certain unfair labor practices, I will recommend that it be ordered to cease and desist therefrom and to take other actions designed to effectuate the purposes and policies of the Act. As the unfair labor practices herein have been substantial and pervasive and have included a discrimina- tory discharge, I will recommend a so-called broad 8(a)(1) order, designed to suppress any and all violations of that section of the Act. J. C. Penney Co., 172 NLRB 127, fn. I (1969); Adam and Eve Cosmetics, Inc., 218 NLRB 1317 (1975). The recommended Order will require the Respon- dent to offer to Jose Antonio Alves full and immediate reinstatement to his former or substantially equivalent position and to make him whole for any loss of earnings he has suffered because of the discrimination practiced against him, said backpay to be computed in accordance with the Woolworth formula" with interest thereon running at 6 percent per annum. I will also recommend that the Respondent be required to post the usual notice telling its employees of their rights and of the results in this case. One of the major bones of contention in this case is the propriety of a Gissel remedy. In Gissel, the Supreme Court authorized the Board to issue a bargaining order instead of relying upon the representation election process in situa- tions wherein an employer has engaged in unfair labor practices which make the holding of a fair and free election impossible. Since Gissel, this remedy has been utilized many times by the Board and has been upheld on many occasions by the courts.12 I will recommend it in this case. We are here confronted by a situation in which a demand for recognition was immediately met by a systematic effort to destroy the Union's majority status. The effort extended not only to coercive interrogation but to grants of benefits which included outright vote buying. It also included the discriminatory discharge of an active union adherent which was accomplished under a tissue- thin pretext. Such actions certainly prevent the holding of a fair and free election. The Respondent complained in its pleadings and in its brief that the Union in bad faith had filed charges which served to block the holding of a representation election to which the Union had already agreed. The filing of blocking charges is a commonplace occurrence in Board practice. The dismissal of a petition upon the issuance of complaint based upon the pendency of blocking charges is authorized by the Manual on Practice and Procedure and is a standard part of Board practice. Such an action on the Union's part does not amount to bad faith, especially as the complaint herein has been found to be, in large part, amply supported by the evidence. Respondent also interposes as a defense to a bargaining order the contention that, during the organizing campaign it experienced certain 1970); MPC Restaurant Corporation v. N. LR.B., 481 F.2d 75 (C.A. 2, 1973); N.LR.B. v. Scoler's Incorporated, 466 F.2d 1289 (C.A. 2, 1972); N.L.R.B. v. Hendel Manufacturing Company., Inc., 483 F.2d 350 (C.A. 2. 1973); N.L.R.B. v. V & H Industries, Inc., 433 F.2d 9 C.A. 2, 1970). 1090 THE BACKSTAGE RESTAURANT acts of vandalism which were committed upon its property by persons unknown. Such evidence does not amount to a Laura Modes defense 13 and may not be relied upon here to defeat the issuance of a bargaining order. Donelson Packing Co., Inc., 220 NLRB 1043 (1975); John Dory Boat Works, Inc., 229 NLRB 844 (1977). Upon the foregoing findings of fact and conclusions of law, and pursuant to Section 10(c) of the Act, I make the following recommended: ORDER 14 The Respondent, O & H Rest., Inc., trading as The Backstage Restaurant, New York, New York, its officers, agents, successors, and assigns, shall: 1. Cease and desist from: (a) Refusing to recognize Chefs, Cooks, Cafeteria, Food, Beverages, and Service Employees Union, Local 22, Hotel and Restaurant Employees and Bartenders International Union, AFL-CIO, as the duly designated exclusive collective-bargaining representative of all of the Respon- dent's regular full-time kitchen employees, exclusive of all other employees, part-time employees, guards, and supervi- sors as defined in the Act. (b) Discouraging membership in or activities on behalf of Chefs, Cooks, Cafeteria, Food, Beverages, and Service Employees Union, Local 22, Hotel and Restaurant Em- ployees and Bartenders International Union, AFL-CIO, by discharging employees or otherwise discriminating against them in their hire or tenure. (c) Coercively interrogating employees concerning their union activities or the union activities of other employees. (d) Paying employees in order to obtain information concerning the union activities and sentiments of employ- ees. (e) Offering employees money in order to induce them to vote against the Union. (f) Threatening employees with discharge in order to discourage their union activities. (g) Transferring employees to other locations in order to discourage unionization. (h) By any other means interfering with, restraining, or coercing employees in the exercise of rights guaranteed them by Section 7 of the Act. '3 Laura Modes Company. 144 NLRB 1592(1963). 14 In the event no exceptions are filed as provided by Sec. 102.46 of the Rules and Regulations of the National Labor Relations Board, the findings. conclusions, and recommended Order herein shall, as provided in Sec. 102.48 of the Rules and Regulations, be adopted by the Board and become its findings, conclusions, and Order, and all objections thereto shall be deemed waived for all purposes. 2. Take the following affirmative action designed to effectuate the purposes and policies of the Act: (a) Upon request, bargain collectively with Chefs, Cooks, Cafeteria, Food, Beverages, and Service Employees Union, Local 22, Hotel and Restaurant Employees and Bartenders International Union, AFL-CIO, as the exclusive collective- bargaining representative of all of the Respondent's full- time kitchen employees, exclusive of all other employees, part-time employees, and all supervisors as defined in the Act, and, if an agreement is reached, embody the same in a signed written contract. (b) Offer Jose Antonio Alves immediate and full reinstatement to his former position or, in the event that his former position no longer exists, to substantially equivalent employment, without prejudice to his seniority or other rights previously enjoyed, and make him whole for any loss of earnings he has suffered because of the discrimination practiced against him, in the manner described above in the section entitled "Remedy." (c) Preserve and, upon request, make available to the Board or its agents, for examination and copying, all payroll and other records necessary to analyze and compute the amounts of backpay due under the terms of this Order. (d) Post at its New York, New York, place of business copies written in English and in Spanish of the attached notice marked "Appendix."'5 Copies of said notice, on forms provided by the Regional Director for Region 2, after being duly signed by a representative of the Respondent, shall be posted immediately upon receipt thereof and shall be maintained by the Respondent for 60 consecutive days thereafter, in conspicuous places, includ- ing places where notices to employees are customarily posted. Reasonable steps shall be taken by the Respondent to insure that said notices are not altered, defaced, or covered by any other material. (e) Notify the Regional Director for Region 2, in writing, within 20 days from the date of this Order, what steps the Respondent has taken to comply herewith. Insofar as the consolidated complaint alleges matters which have not been found herein to be violations of the Act, the consolidated complaint is hereby dismissed. 15 In the event that the Board's 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." 1091 Copy with citationCopy as parenthetical citation