Orleans Mfg. Co., Inc.Download PDFNational Labor Relations Board - Board DecisionsMar 11, 1968170 N.L.R.B. 220 (N.L.R.B. 1968) Copy Citation 220 DECISIONS OF NATIONAL LABOR RELATIONS BOARD Orleans Mfg. Co., Inc. and United Furniture Work- ers of America, AFL-CIO. Case 1-CA-5805 March 11, 1968 DECISION AND ORDER BY CHAIRMAN MCCULLOCH AND MEMBERS FANNING AND BROWN On September 21, 1967, Trial Examiner John G. Gregg issued his Decision in the above-entitled proceeding, finding that the Respondent had en- gaged in and was engaging in certain unfair labor practices and recommending that it cease and de- sist therefrom and take certain, affirmative action, as set forth in the attached Trial Examiner's Deci- sion . The Trial Examiner also found that the Respondent had not engaged in certain other al- leged unfair labor practices and recommended that such allegations of the complaint be dismissed. Thereafter, the Respondent filed exceptions and the General Counsel filed cross-exceptions to the Trial Examiner's Decision, and supporting briefs. Pursuant to the provisions of Section 3(b) of the National Labor Relations Act, as amended, the Na- tional Labor Relations Board has delegated its 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, cross-ex- ceptions, and supporting briefs, and the entire record in the case, and hereby adopts the findings,' conclusions, and recommendations of the Trial Ex- aminer , with the following modifications. The Trial Examiner found, and we agree, that the Respondent violated Section 8(a)(3) and (1) of the Act by discharging employee Kenneth Prue, and that it committed independent violations of Section 8(a)(1) by interrogations of employees, creating the impression of surveillance of union activities, and maintaining an overly broad no-solicitation rule. However, we do not agree with the Trial Ex- aminer 's conclusion that the Respondent 's promise of certain wage increases and their effectuation during the Union's organizational drive did not con- stitute a violation of Section 8(a)(1) of the Act. ' Certain of the Respondent 's exceptions relate to the Trial Examiner's credibility findings It is the Board's established policy, however, not to overrule the Trial Examiner 's resolutions with respect to credibility unless, as is not the case here , the preponderance of all the relevant evidence con- vinces us that the resolutions are incorrect . Standard Dry Wall Products, Inc., 91 NLRB 544, enfd 188 F 2d 362 (C.A 3) 2 That is , the Respondent purportedly felt that all employees , rather than The Federal minimum wage was increased to $1.40 effective on February 1, 1967, and to become $1 .60 on February 1, 1968 . At various management meetings during 1966 after the enact- ment of the amendment , Respondent expressed the fear that the new rate would price it out of the mar- ket, and it retained a personnel consultant to arrive at a method of complying with the law by the effec- tive dates in the context of the Respondent 's exist- ing incentive -rate and day-rate systems . The latter type of compensation pattern had a minimum beginning wage for various job classifications, and a probationary period for newly hired employees. It also provided for periodic wage increases, which resulted in wage spreads based on length of em- ployment. According to the Respondent , it wanted to comply with the law in a gradual manner so that the higher cost of labor would not have to; be absorbed at one time, and it therefore raised, the lowest beginning day rate to $1.40 per hour on October 10, 1966 . Although it claims that its later increase, described below, was brought about by the desire to preserve the wage spreads in its -system in order to be fair to all employees,' the Company did not grant an increase to older employees at that time. On January 16, 1967, Respondent informed the employees of an increase and on February 1, 1967, it raised the wages of all nonprobationary day-rate employees who were making less than $1.50 to that amount, and the wages of those who were making $1.50 or more by 6 cents per,hour. The Respon- dent raised the overall wages of its incentive em- ployees by increasing the amount of their vacation pay. At the same time , however , the Respondent also had to lay off a number of employees because of a decrease in available work caused by a reduc- tion in its backlog of orders. Unlike the Trial Examiner, we conclude that these increases were in violation of Section 8(a)(1) insofar as they exceeded the minimum required by law. The January 16 announcement and the February 1 increase took place during the union or- ganizational drive and in the context of other unfair labor practices.' The Respondent's concern about being priced out of the market by the $1.40 minimum and its contemporaneous layoff of em- ployees are inconsistent with a wage increase over and above the legal minimum. Finally, the Respon- dent's alleged desire to be fair to all employees only new hires, should receive some benefit because of the new minimum wage, and that it would be inequitable to hire a new man at $1 .40 and also to pay an older employee, whose wage rate was based on a lower minimum wage and longer tenure, the same amount 3 The peak of union activity seems to have been between the December 5 meeting of employees with the Furniture Workers and January 23, 1967, the date Prue was unlawfully discharged. ORLEANS MFG. CO., INC. 221 would, by its own logic, have required a wage in- crease for employees with longer tenure on Oc- tober 10, 1966, when it raised the minimum start- ing wage to $1.40. This reasoning leads us to the conclusion that the Respondent promised and granted the wage increases over the minimum wage for the purpose of discouraging membership in or assistance to the Union, and we find that the Respondent thereby violated Section 8(a)(1) of the Act .4 ORDER Pursuant to Section 10(c) of the National Labor Relations Act, as amended, the National Labor Relations Board adopts as its Order the Recom- mended Order of the Trial Examiner and hereby orders that the Respondent, Orleans Mfg. Co., Inc., Orleans, Vermont, its -officers, agents , successors, and assigns, shall take the action set forth in the Trial Examiner's Recommended Order, as herein modified: 1. Insert the following as paragraph 1(b) of the, Trial Examiner's Recommended Order, relettering the present 1(b) as 1(c): "(b) Promising- or granting wage increases for. the purpose of interfering with, restraining, or coercing its employees in the exercise of rights guaranteed them in Section 7 of the Act; provided; however, that nothing herein shall be construed as requiring the Respondent to withdraw, change, or abandon any of the wages currently enjoyed by its employees." 2. Change the period at the end of new para- graph 1(c) to a comma, and add the following thereto: "except to the extent that such right may be affected by an agreement requiring membership in a labor organization as a condition of employ- ment, as authorized in Section 8(a)(3) of the Act, as modified by the Labor-Management Reporting and Disclosure Act of 1959." 3. In the Appendix attached to the Trial Ex- aminer 's Recommended Order insert the following as the fourth indented paragraph: WE WILL NOT promise or grant- wage in- creases for the purpose of interfering with, restraining, or coercing our employees in the exercise of rights guaranteed them in Section 7 of the Act; but nothing in the Order of the Na- tional Labor Relations Board requires us to modify or change the wages which our em- ployees now enjoy. _ 4 Member Fanning would adopt the Trial Examiner's dismissal of the complaint as to the wage increases for the reasons stated in the Trial Ex- aminer's Decision TRIAL EXAMINER'S DECISION STATEMENT OF THE CASE JOHN G . GREGG , Trial Examiner: This proceeding was conducted in Newport, Vermont, on May 10, 11, and 12, 1967, on -complaint of the General Counsel and answer of the Orleans Mfg. Co ., Inc., herein called the Respondent . The complaint al- leges violations by the Respondent of Section 8(a)(1) and (3) of the Act. At the hearing all parties were represented by counsel and were af- forded full opportunity to be heard, to examine and cross-examine witnesses , and to present evidence. The General Counsel, the Respondent, and the Union submitted briefs which have been carefully considered. Subsequent to the close of hearing, a motion was made by the General Counsel dated July 6, 1967, to correct the official report of proceedings. The motion is hereby granted. Upon the entire record, and my observation of the demeanor of the witnesses, I hereby make the following: FINDINGS AND CONCLUSIONS 1. THE BUSINESS OF THE RESPONDENT The Respondent is and has been at all times material herein a corporation duly organized under and existing by virtue of the laws of the State of Vermont, maintaining its principal office and place of business at the town of Orleans, county of Orle- ans, and State of Vermont, and is and continously has been engaged at its Orleans plant in the manu- facture, sale, and distribution of furniture and re- lated products. The Respondent in the course and conduct of its business causes and has continuously caused, at all times material herein, large quantities of lumber and hardware used by it in the manufac- ture of furniture to be purchased and transported in interstate commerce - from and through various States of the United States other than the State of Vermont; and causes and continuously. has caused, at all times material herein, substantial quantities of furniture to be sold and transported from said plant in interstate commerce to States of the United States other than the State of Vermont. In its operations the Respondent annually ships products having a value in excess of $50,000 to points out- side the State of Vermont. It is admitted, and I find, that the Respondent- is an employer engaged in commerce within the meaning of Section 2(6) and (7) of the Act and that it will effectuate the policies of the Act to assert jurisdiction herein. II. THE LABOR ORGANIZATION INVOLVED The United Furniture Workers of America, AFL-CIO , hereinafter referred to as the Union, is a 222 DECISIONS OF NATIONAL LABOR RELATIONS BOARD labor organization within the meaning of Section 2(5) of the Act. III. THE UNFAIR LABOR PRACTICES The General Counsel alleges that the Respondent discriminated in regard to the hire or tenure or term or conditions of employment of Kenneth Prue, an employee at its Orleans plant, by discharging him on or about January 23, 1967, and failing and refusing to reinstate him to, his former or substan- tially equivalent position of employment, for the reason that he joined or assisted the Union or en- gaged in other concerted activities for the purpose of collective bargaining or other mutual aid or pro- tection. Additionally the General Counsel alleges that the Respondent interfered with, restrained, and coerced its employees in the exercise of rights guaranteed by Section 7 of the Act, thereby violat- ing Section 8(a)(1) of the Act, by interrogating em- ployees- concerning union meetings and union ac- tivities through Supervisor Frank Gilfillan on or about December 4, 1966, and January 9, 1967; creating the impression of surveillance of union ac- tivities and interrogating employees concerning union activities through Supervisor William Curtis on or about January 18, 1967; that on or about January 16, 1967, by Supervisor and Agent Bjarne Kvingedal, offered, promised, and granted a wage increase to its employees for the purpose of discouraging membership in or ,assistance to the Union; and that the Respondent at all times materi- al herein maintained a rule forbidding distribution of literature on the Respondent's premises without -written authorization. The General Counsel alleges that by and'through the foregoing acts the Respon- dent is engaged in and has committed unfair labor practices within the meaning of Section 8(a)(3) and (1) of the Act. The Respondent admits the discharge of Kenneth Prue on January 23, 1967, as alleged in the cool- plaint, but denies that the discharge was for the reason advanced by the General Counsel, contend- ing that Prue was discharged for threatening his fel- low employees Guyette and Dow. The Respondent denies the commission of any other unfair labor practices as alleged in the complaint. A. Background The record discloses that around November 1, 1966, Kenneth Prue, an employee of the Respon- dent, was contacted-and asked to solicit in behalf of the International Association,of Machinists in order to unionize the `Respondent's mill. Prue and, an or- ganizing committee were provided with authoriza- tion cards and commenced activities. Later in November, Prue was contacted' by representatives of the United Furniture Workers and, after discus- sions , Prue arranged for the two competing unions to debate the relative merits of each.- A debate was scheduled for the night of December 5 at Morgan, Vermont. On November 28, Bjarne Kvingedal, the Respondent's general manager, gave a speech on company time to employees at the plant .in which he indicated among other things that there were two unions trying to get into the plant and in which he reminded the employees of 'a strike which had occurred at the Butterfield Company in Derbyline, Vermont, indicating that the employees at that plant had been out of work for 10 weeks and would take 4 years to recoup what they had lost; that if the Union came in the employees would have to pay a minimum of $5 in union dues per month. Kvingedal advised the employees that if anyone was threatened in connection with the, organizing cam- paign it should be reported immediately to the of- fice. On December 5, the night that the debate was scheduled, Prue was advised that the International Association of Machinists was not going,to debate. In lieu of the debate a meeting was held that night in Newport, Vermont, attended by about 15 em- ployees and Furniture Workers Union Agents Mor- ton and Marino. After a general discussion of the advantages and disadvantages of unionism, the men at the meeting decided to attempt to-get the Furni- ture Workers Union into the plant. Marino pro- vided authorization cards and advised the men not to solicit signatures on company time. The record discloses that between December 5, 1966, and January 23, 1967, the date of Prue's discharge, about 130 authorization cards on behalf of the Union were signed by employees of the Respon- dent. Of these 130 cards about 12 to 15 had been personally solicited by Prue, of which one card was actually signed and obtained by him. It is admitted and I find that Prue was active in the organizing campaign and that the Respondent had knowledge thereof. B. The Discharge of Prue 1'. The facts surrounding the alleged threats to Dawson Daniel Beaton, Prue's supervisor, testified that on Saturday, January 21, he met Dawson, who told him that the night before Dawson-and Prue had had a fight. According to Beaton, Dawson stated that the fight was over signing a card, a union card, that Dawson would not sign the card. Later that day, Kvingedal telephoned Beaton, and Beaton discussed the matter with him. Ralph Dawson, an employee of the Respondent for 1 -1 years, testified that he had known Kenneth Prue for approximately 15 years, that on the day of Prue's discharge he, Dawson, was called to Mr. Walker's office where he met with _ Company Representatives Kvingedal,, Walker,., and Beaton. According to Dawson, Kvingedal told Dawson-that he had heard some rumors that Prue and 'Dawson ORLEANS MFG. CO., INC. 223 had had some trouble and he was interested in knowing whether it was over union matters. Kvin- gedal asked Dawson if Prue was threatening him over the signing of the union card and, according to Dawson, Dawson answered, "No." Dawson testified further that Kvingedal told him how he, Kvingedal, thought Prue was conducting illegal practices in securing names for the Union. Dawson testified that at no time did he tell anyone that he and Prue had fought over a union matter and testified further that Kenneth Prue had never told him that he would lose his job if he did not sign a union card nor did Prue ever threaten him in any way to get him to sign a union card. Dawson recalled having made the statement that "would be a cold day in hell" be- fore Kenneth Prue got him to sign a union card. As to the actual tussle between Dawson and Prue, Dawson testified that he was probably pretty well intoxicated at the time so he could not really say what the fight was about, but he did testify that the Union was not mentioned as far as he could re- member. According to Dawson, sometime after Prue's discharge that morning, Beaton told him that the tussle between Dawson and Prue had nothing to do with Prue's discharge inasmuch as the Company had taken into account the fact that the two men had been drinking at the time of the fight. Beaton, in his testimony, indicated as follows: Q. Did he tell you he'd been threatened by Prue? A. Not-prior to this, no. Q. Did he tell you when you saw him on Saturday, the 21st, that he'd been threatened by Prue? A. He told me he had a fight with Prue. Q. Did he tell you he had been threatened by Prue? A. He told me he had a fight. I assumed he was threatened. Q. Did he tell you he was threatened by Prue? A. Verbally using the word threat? Q. Yes. A. No. Based on my observation of Dawson as he testified, I credit his testimony that he at no time stated to anyone that he and Ken Prue had fought over the matter of the Union or the signing of the union authorization card and I credit his statement that at no time did Kenneth Prue in any way threaten ,him. 2. The facts surrounding the alleged threats to James Guyette James Guyette, an employee of the Respondent, testified that he was a 'sealer-sprayer at the Respon- dent's plant at Orleans and that his work station was quite close to Kenneth Prue's. Guyette testified that sometime prior to the speech by Kvingedal in November, Kenneth Prue approached him and asked him to sign a card for the Machinists Union. Guyette indicated that he did not sign the card; that when Prue asked him for the card he said he was not signing the card mainly because the Machinists Union would not work in a furniture factory. Sub- sequently in December, Prue gave him a union card for the Furniture Workers of America asking him to take the card, sign it , and bring it back the next day. Guyette testified that a day or two later Prue asked Guyette if he had signed the card; Guyette said, "No." Q. What did he say? A. He said if I don't sign the card, it is possi- ble I will lose my job. In another version of the same exchange Guyette testified as follows: Q. Would you tell us exactly what he said to you? A. He come to me and asked for the union card, and I told him no, I did not have it. Then he asked me why not. I told him I want more time to think about it. Then he said I'll lose my job if I don't sign the card. According to Guyette, from the time he was al- legedly threatened around December 12 or 13 until sometime in January , Kenneth Prue would come by his place from time to time and query him about the card , and that Kenneth Prue would indicate that if Guyette would sign the card, he would make things go more smoothly. Prue is alleged to have in- dicated that if Guyette did not sign the card, when the Union came into the mill, Guyette would have to pay $15 more than anyone else. Guyette testified that between December 13 and January 1, at times when the production line was slowed down or stopped, Prue would also make gestures indicating that if Guyette signed the card things would go smoothly. Q. Well what kind of gestures? A. Like when I am standing there with my line filled and empty at the other end, he would be down by his booth, I'm standing there doing nothing. He'd put his palm, out take his hand like this, as to 'sign the union card, and things would go smoothly.' Guyette testified further that about the second week in January, around the 10th, he had another conversation with Kenneth Prue when Prue came by the spray booth and asked if he had the card. Guyette told him he did not. At this point accord- ing to Guyette, Prue said that if Guyette did not ' The Respondent's offer to adduce additional testimony tending to prove that Prue threatened Guyette by allegedly stopping the production line and making gestures indicating that, if Guyette signed the card, the production would be resumed was rejected in view of the clear admission by the Respondent that it had no knowledge of,such alleged action at the time of Prue's discharge and that such action played no part in the decision to discharge Prue 224 DECISIONS OF NATIONAL LABOR RELATIONS BOARD sign the card he would lose his job . Guyette alleged that Prue also repeated that if he did not sign the card he would have to pay $ 15 more than anybody else if the Union got in. Guyette, however , had previously stated that Prue passed his booth and said that if he did not sign the card Prue "would see to it" that Guyette would, have to pay $ 15 initiation pay if the Union got in. Q. Was that statement true when you made it? A: To an extent it was. Guyette also admitted that he had told another em- ployee , Therrian, that Prue had told Guyette that he could be protected by signing the card and that he would also be protected by Federal law. Prue , in his testimony , denied that he ever told Guyette that unless Guyette signed the card he would lose his job. He did not recall that he ever stated to Guyette that unless he signed the card it would 'cost him $15 if the Union got in . Prue did recall that he had told other people in connection with the union campaign that if the Union got in those who did not sign cards would have to pay an initiation fee. probably $15 more or less depending on what the committee decided. Guyette testified further that ultimately at Beaton 's request he went to Walker 's office where he met with Walker and Kvingedal and where Kvin- gedal asked him if any rough play or threats were going on . Just what Guyette told Kvingedal is; not clear . In his testimony Guyette said that when he went to the office , he told Kvingedal that Ken Prue had come to him saying that if he, Guyette , did not sign the card , he would get fired , and that Prue would see to it that Guyette would pay $15 if the Union, got in . However, on cross-examination, Guyette stated ,that he advised Kvingedal that Prue came by his booth and said that if, he , Guyette, did not sign the - card , he could get fired at any time without any warning , but if he did sign the card he could not get fired or laid off because he would be protected by signing the card and by a Federal law. Guyette testified that this statement , as given to Board investigators , was what he had told Kvin- gedal in the meeting. Based on my observation of the demeanor of the witness, Guyette, as he testified , his lack of directness, his variations in testimony concerning the statements alleged to have been made to him by Prue and his admission of dislike for Prue , I do not credit his testimony. I am persuaded and I find from the record that Guyette stated to Kvingedal that Prue told him that if he did not sign the card he could get fired at any time without warning but if he did sign the card he could not-get fired or laid off because he, would be protected by signing the card and by a Federal law. I also find that while undoubtedly Prue made state- ments to Guyette requesting-that the card be signed and returned , these statements urging Guyette to sign the card , and pressing for an early signature, were made in an attempt to "sell," the Union to Guyette , and,I do not find them to be threats but view them more as statements indicating that the signing of the card would mean job protection, and advising Guyette that if and when the employees selected the Union as their bargaining representa- tive he could anticipate the payment of an initiation fee which could be saved by an early signing of the card . I find therefore not only that Prue did not threaten Guyette , but that Guyette 's statement to Kvingedal concerning Guyette 's discussions with Prue were not such as to clearly indicate to Kvin- gedal that Prue had actually threatened Guyette. 3. The facts surrounding the alleged threats to Mrs. Dow Mrs. Samira "Vicky" Dow, an employee of the Respondent , testified that she worked on the same conveyer belt as did Kenneth Prue . According-to Mrs. bow , Prue approached her about a week be- fore his discharge at her working area near the con- veyer belt inside the finishing room and asked if she were going to join the Union and when she said no, she was not interested, he said that if she did not join the Union she would not be working there long and that if she would smarten up she would' be getting more pay. According to Mrs. Dow, this con- versation began within the mill and continued while they walked all the way out to the smoking area where the employees took their break. Mrs. Dow testified that some time later and prior to Prue's discharge she told Mr. Curtis , her foreman , of this conversation with Prue. Subsequently she was called to Beaton 's office and finally was called to Kvingedal 's office where 'she met with Kvingedal and Walker . According to Mrs . Dow, she told them that Prue had talked to her about joining the Union and that she just was not interested and that Prue had stated that if she did not join the Union she would not be working there long. According to Mrs. Dow , at the time Prue was alleged to have stated that she would not have a job, no one else was present but that when they got out to the smoke break area, there were a few ' individuals around but they were not listening to what Mrs. Dow and Prue were discussing. According to Mrs. Dow, "They were not interested." 0. It's your testimony that Dean Sweeney was not there at that time? A. Dean Sweeney wasn 't there with us. Q. Was Dean Sweeney outside , during the break? A. He might have been. I don't know. Q. Do you remember if he was? A. But he wasn 't listening to what we were talking about. Q. Well, you don 't know that, though, do you? 'A. Well; I'm positive. - ORLEANS MFG. CO., INC. 225 Q. You don't know if Sweeney heard what you were talking about, do you? A. Well, ,l don't think Sweeney 's interested in that much. Mrs. Dow testified further as follows: Q. How about your daughter, was she around when you were out on break? A. My daughter was, there, yes, but -she wasn 't listening to what we was talking about. She doesn't get involved with my arguments. Q. Your daughter was standing out there, wasn't she, when you and Prue were talking? A. Yes, she was standing there side of the rail. ,Q. And her husband was there too, wasn't he?, A. Her husband was there with her. In his testimony Prue denied ever discussing the Union with Mrs. Vicky Dow except on the one oc- casion when he had had a conversation with Mrs. Dow concerning the Union outside the mill in the afternoon at breaktime. Prue denied that he had ever solicited Mrs. Dow to sign a union card and denied that he told her that if she did not sign, a card she would lose her job. Mrs. Gwendoline Blake, an employee of the Respondent, testified that she was Mrs. _ Samira "- Vicky''' Dow's daughter. Mrs. Blake testified that she was present on an occasion when Prue and her mother were talking about the Union. This took place, according to Mrs. Blake, at a coffee break just outside the- mill and present were Prue, Mrs. Blake's mother, Vicky Dow, Mrs. Blake's husband, Dean Sweeney, and several other people. Accord- ing to Mrs. Blake, she heard Prue tell her mother that if anyone should want' a union it should be Mrs. Dow, that' Mrs. Dow had been there for 14 years and that the Company hired people off the street and paid them more, money an hour than they paid to Mrs. Dow, and that a union would pro- tect Mrs. Dow's seniority. According to Mrs. Blake, at this time, her husband or one of those present said, "that's right." Mrs. Blake testified that she did not remember Prue telling her mother that if she did not join the Union she would not have a job. Nor did 'she remember Prue telling her mother that if she did not sign a card, she would not have a job. Nor did she remember Prue telling her mother that if'she did not join the Union or if, she did not sign a card she would not be working there- long.. Mrs, Blake testified that she did -not hear Mr. Prue threaten her mother in-any manner on that occa- sion.- In her testimony , Mrs. Blake , however, in- dicatedthat she did not have a clear memory of the- incident. Dean Sweeney , an employee of the Respondent and one of Prue's coworkers, testified that he was an employee of the Respondent, had been em- ployed at the Orleans' plant for almost 6 years, and had worked with Prue in the same department. Sweeney testified that he had a routine that he nor- mally followed at breaktime and that almost every day he took this break with Ken Prue, in which they went outside the main exit, out in front of the mill, and had a cigarette, Sweeney testified that he was present outside the plant during a break, when Prue and Vicky Dow discussed the Union and that their union discussion took ' place on only one occasion, around the middle of January 1967. He testified that also present beside Prue and Mrs. Dow were Mr. and Mrs.- Blake. According to Sweeney, the discussion about the Union began outside the plant. While he, Sweeney, and Kenneth Prue were talking about the Union, Mrs. Dow overheard their conver- sation and said they did not need a union. Prue then told her that she had worked there, if anyone should want a union she should, she had been there almost 14 years and that there were women work- ing there for 6 months -who were making more than she was . According to Sweeney, at this time Mr. Blake said, "that's right." Sweeney testified that he also went back into the plant with Ken Prue when the break was over and that he had also walked out of the plant with Ken Prue when the break started. Sweeney testified that Prue did not ask Mrs. Dow to sign a union card on this occasion , nor did he ask Mrs. Dow to join the Union. Sweeney stated that Prue'did not tell Mrs. Dow that if she did not join the Union she would not be working there long. Based on my observation of the witness Sweeney while he testified, I credit his testimony. In view of my observation of the demeanor of the witness Mrs. Dow as,she testified, and in view of my crediting the testimony of Mrs._ Blake and Sweeney, both of whom essentially contradicted Mrs. Dow's version, I do not credit Mrs. Dow's testimony and am persuaded and I find that no threats were made to Mrs. Dow by Prue. - 4. The discharge of Prue by Kvingedal Bjarne Kvingedal; the Respondent 's general manager , testified that on January 21 he was in- formed about a fight between Prue and,Dawson over the Union. According to Kvingedal, he con- tacted Mr. Walker who indicated that he too had heard about the fight. They then conferred with Dan Beaton, who also said that he had heard about it. Kvingedal testified, that this disturbed him, and he was "concerned About it." According to Kvin- gedal ; on Monday morning, , January 23, Kvingedal summoned Dawson who told -Kvingedal that he had had a fight with Kenneth Prue - and it was about the Union. Kvingedal asked Dawson if Prue was threatening him, and Dawson allegedly said no, he could -handle his own problems, at which point- Dawson left and went back to work,. According to 350-999 0 - 71 - 16 226 DECISIONS OF NATIONAL Kvingedal at this time he had a call from Beaton, who told him that one of the' employees, James Guyette, had been threatened and wanted to speak with Kvingedal. Kvingedal interviewed Guyette, who according to Kvingedal, said that Prue had been "bugging" him and threatening him and say- ing that if he did not sign a card he would not have a job at the plant and that if Guyette did not sign a card, when the Union came ' in it would cost him $15 more than anyone else. About this same time, Kvingedal testified, he received another call, this time it was Mrs. Samira "Vicky" Dow, an employee of the Respondent, who had talked to her super- visor and wished to talk to Kvingedal. According to Kvingedal, Mrs. Dow told him that Prue had been "bugging" her too, had been talking to her about signing a card, and that if she did not sign a card, she would not have a job. At this point, according to Kvingedal, he felt that he had to fulfill his obliga- tion, having promised his employees'that he would personally take care of any situation involving threats. Kvingedal testified that he then called Prue to the office. "I said Ken, I said you remember the speech I 'gave, and I said that no one had to join the union to work at Orleans Manufacturing, but the main thing was this, if anyone is threatened I will take care of this myself personally, and this is just what's happening, I said with that, Ken, I said they have a job, you don't. I said I want you to leave the plant immediately." Kvingedal testified that he did not remember whether or not Prue denied making the threats, but' he thought that he remembered that Prue had said he did not threaten anybody, but that was all. Kvingedal did admit in his testimony that he had held up his hand to shut up Prue. Kvin- gedal testified that his decision to discharge Prue on January 23 came after he spoke with Vicky Dow. He testified that after making the decision to discharge Prue, he called Prue to his office, although normally -he would have consulted cards or records of an individual before discharge, but that he did not do it in this case. Kvingedal testified that the two things that really prompted him into discharging Prue were the charges of Guyette and Vicky Dow concerning the incidents in which they were allegedly threatened by Prue. Kenneth Prue testified that on January 23, 1967, in the morning between 9:30 and 9:40 he was ap- proached by Curtis who said that Prue was wanted down at the office. Prue went to Walker's office: In the office at that time was Kvingedal, the general manager ; Walker, the assistant general - manager; Prue's supervisor , Beaton ; and Prue's foreman, Curtis. According to Prue, Kvingedal asked Prue -if he remembered Kvingedal's speech about no threatening in the mill. Prue said no one was threatened but Kvingedal went on to say that he was doing the talking. As he said this Kvingedal, ac- cording to` Prue, put out his hand with his paten-for- ward to -shut Prue up. According to Prue, at this point Kvingedal informed him that Kvingedal pos- LABOR RELATIONS BOARD sessed signed statements stating that Prue had threatened individuals in the plant and that as, far as Kvingedal was concerned, Prue was all through. Everyone got up, Kvingedal walked out, and every- one started for the door. As Prue got to the door he asked Beaton if this meant he was fired and Beaton said he guessed so. Prue then asked for -his check and was told that he would have to wait for his check because it had to go through the IBM machine. Beaton asked Curtis to go upstairs-and get Prue's jacket; Prue, however, went up behind him. Curtis took Prue's jacket off the hook; Prue took the jacket from him and walked out the door. Prue denied threatening any employee in order to get him to sign an authorization card for the Union. Prue also denied telling any employee that he or she would lose his job if he did not sign an authorization card. There was considerable testimony spread on the record going to the question of whether or not Prue was prone to be a brawler and indicating Prue's involvement in several so-called brawling incidents. However, in his testimony Prue gave reasonable explanations of these incidents and I am persuaded and find no basis on this record for concluding that Prue was a confirmed brawler who might be disposed to threats. Based on my careful observation of the demeanor of the witness Prue, as he testified, I am persuaded that Prue testified in a straightforward and honest manner and I credit his testimony. While there is no doubt -in my -mind that Prue "- talked up the Union" and undoubtedly made state- ments indicating arguments in favor of bringing the Union into the plant and urging employees to join, I am convinced on this record that Prue did not in fact threaten either Guyette or Mrs. Dow. While it is true that Prue's testimony is contradicted by-that of Guyette and Dow I have already indicated that, based on my observation of the demeanor of wit- nesses Guyette and Dow, the variations in their testimony, and-the contradiction of their testimony by credible testimony of record, I do not find their testimony persuasive and' I do not credit' their ver- sions. I find ample testimony of record to indicate that the actions of Kvingedal on the, morning of January 23, at which time he summarily and hastily discharged Prue on the basis of an inquiry con- ducted in a partial and superficial manner, without giving Prue an opportunity to meet the charges of to otherwise explain the situation, indeed cutting off his attempt to explain, were such that I may only conclude that the discharge was discrimina- torily motivated, and that the reason advanced by Kvingedal in the discharge of Prue was a pretext se- ized upon by the Respondent to conceal the actual motive for the discharge and that Prue would- not have been discharged but for his union and other concerted activity, all of which were protected by the Act. Shell Oil Co. v. N.L.R.B., 128 F.2d 206 (C.A. 5). Even assuming, arguendo, that"-Guyette ORLEANS MFG. CO., INC. 227 and Dow had relayed information to Kvingedal clearly indicating threats by Prue, and that Kvin- gedal did in fact have an honest belief in the truth of the statements of Guyette and Dow, I would nevertheless find the discharge an interference, restraint, and coercion with the employees of the Respondent in the exercise of protected activity and a violation of Section 8(a)(1). For whatever the Employer's motive, as stated by the Court in N.L.R.B. v. Burnup & Sims Inc., 379 U.S. 21 at 23 "ยง 8(a)(1) is violated if it is shown that the discharged employee was at the time engaged in a protected activity, that the employer knew it was such, that the basis of the discharge was an alleged act of misconduct in the course of that activity, and that the employee was not, in fact, guilty of that misconduct. In any event, having found that Prue did not in fact threaten Guyette and Dow as alleged by the Respondent as the basis for the discharge, I find accordingly that the Respondent by the discharge of Prue discouraged membership in the Union by discrimination in regard to his tenure of employment, thereby violating Section 8(a)(3) of the Act, and by the same act interfered with, restrained, and coerced its employees in the exer- cise of protected activity thereby violating Section 8(a)(1) of the Act. C. The Other Alleged Acts of Interference , Restraint, and Coercion The General Counsel additionally alleges that the Respondent interfered with, restrained, and coerced its employees in the exercise of rights guaranteed in Section 7 of the Act by the following acts ; (a) interrogation of employees concerning union activities by, Supervisor Gilfillan on or about December 4, 1967, and January 9, 1967; (b) creat- ing the impression of surveillance of union activities and interrogating employees concerning union ac- tivities by Supervisor William Curtis on or about January 18, 1967;,(c) the offer , promise , and grant of a wage increase to its employees for the purpose of discouraging membership in or assistance to the Union by Supervisor and Agent Bjarne Kvingedal on or about January 16, 1967; (d) maintaining a rule forbidding--distribution of, literature, either written or printed, on the Respondent 's premises without written authorization. 1. The alleged; interrogation of employees by Frank Gilfillan Jerry Prue, an employee of the Respondent, and no relative of the Kenneth Prue herein , testified es- sentially that , around the time that Kvingedal gave his speech to the employees which was sometime late in November he,, Jerry Prue, had had a discus- :sion , with Gilfillan, a foreman of the Respondent, who ' spoke to him while Jerry Prue was working and asked Prue if he knew anything about the Union. Prue answered in the negative. Gilfillan then asked him if he was going to a meeting in Morgan Center that night and Prue again answered in the negative. Gilfillan in his version denied ever having this conversation with Prue. The contradicting ver- sions of Jerry Prue and Gilfillan raise a credibility question. I do not credit the version of Jerry Prue. In discrediting his testimony I took into account not only his demeanor while testifying but also the lack of coherence in his testimony. In fixing the time the alleged interrogation took place Prue testified as follows: Q. Is there any event, perhaps, that might fix the date in your mind? A. I know it was on a Monday, because there was supposed to have been a union meet- ing that same, following night. Prue testified further that he did not know there was to have been a meeting in Morgan Center at the time that Gilfillan spoke to him, stating that this was the first time he had heard anything about the Union. Based upon my observation of the demeanor of the witness Jerry Prue as he testified and based upon the obvious fact clear on the record herein that union activity was a prime topic of conversation in the mill at the time, I simply do not credit his statement that he did not know of the union meeting to be held at Morgan Center. I dis- credit Jerry Prue's version of the conversation with Gilfillan. With respect to Larry Broe , also an employee of the Respondent-Broe testified essentially that sometime around January 9, in the afternoon, Gil- fillan spoke to him while he was working and asked him if he was going to the union meeting that night at Newport. This conversation was directly denied by Gilfillan. Based on my observation of the demeanor of the witness as he testified, I credit the testimony of Broe. I find, therefore, that the charge of the complaint alleging interrogation by Gilfillan of Jerry Prue has not been proven by substantial, probative evidence of record, and recommend that this portion of the complaint be dismissed and I find that the Respondent by Supervisor Gilfillan did interrogate employee Broe_ in violation of Section 8(a)(1) as alleged in the complaint. 2. The creation of the impression of surveillance of union activities and interrogation by William Curtis According to Kenneth- Prue, Curtis approached him shortly before his discharge and stated that he had heard that the employees needed only 20 more cards to get the Union in. Curtis denied this re- mark . In his testimony Curtis also denied hearing any, talk in the mill about the union meeting although it was a matter of discussion in the mill at the time. Based on my observation of the demeanor of, the witness- Kenneth Prue , as he testified and the demeanor of the witness Curtis as he testified, I credit Prue's testimony in this regard and I find ,that 228 DECISIONS OF NATIONAL LABOR RELATIONS BOARD Curtis made the remark as alleged by Prue. I find this to constitute an interrogation and that this in- terrogation, coming, as was indicated on the record, against a background of discussions between Curtis and other management supervisors on the topic of the union campaign, a prime topic at the mill, and directed to a key figure in the or- ganizing activity, clearly gave the impression that the Respondent was engaged in surveillance of union activities. Accordingly, I find that through this statement by William Curtis, on or about January 18, 1967, the Respondent violated Section 8(a)(1) of the Act. 3. The alleged offer, promise, and grant of a wage increase The General Counsel alleges further that the Respondent on or about January 16, by Supervisor Bjarne Kvingedal, offered, promised, and granted a wage increase to its employees for the purpose of discouraging membership in or assistance to the Union. In this connection the record indicates that the Respondent promised an increase in wages and benefits on January 16, 1967, effective February 1. There was testimony by Kvingedal indicating that the increase was based on the increase in minimum wages required under the Fair Labor Standards Act in the summer of 1966. Kvingedal testified that be- fore the advice to the employees dated January 16 which notified them of the changes and improve- ments effective February 1, 1967, discussions were held by Kvingedal and various management person- nel including Walker, the production manager and Charles Maran, the plant engineer. Kvingedal also testified that he had additional conversations on the matter with Mr. Clinton Walker who was located in New York City. Kvingedal testified that the deci- sion to effectuate the increases was made sometime in December but it was not until January that they "wrapped it up." Kvingedal testified that he discussed the benefits and meeting the Fair Labor Standard Act requirements with Mr. Walker in July and August of that year on various visits to New York City by Kvingedal or visits to Newport by Clinton Walker. Kvingedal testified additionally ex- plaining the reason for granting benefits not only to the day-rate employees but to the incentive-rate employees. There is no question that the employees were notified of the increased benefits on January 16, 1967, and were granted benefits as alleged. The question is whether or not, as the General Counsel contends, the Respondent's actions were for the purpose of discouraging membership in or assistance to the Union. The record indicates and it is not contradicted that prior to the time the benefits were promised to the employees on Janua- ry 16, 1967, the Respondent had discussed the in- creases in various management meetings in which concern was expressed for the fact that the new minimum wage scale required by the Fair Labor Standards Act would have to be applied effective February 1, 1967, without "pricing us out of the market." The General Counsel urges that, from the inconsistency evidenced by the Respondent's con- cern for pricing itself out of the market and the fact that it granted benefits in excess of that required by the Act, it be found that the benefits were granted for the purpose of discouraging membership in or assistance to the Union in violation of Section 8(a)(1) of the Act. I am not able to so conclude on the basis of the testimony of this record. The Respondent established clearly on this record a valid economic action stemming from a reasoned approach to meeting the requirements of the minimum wage law. The grant of benefits in excess of that required by law, even though accomplished under circum- stances giving concern lest the producer be priced out of the market and even where the grant is made at a time when a segment of the employee comple- ment is being laid off due to a lack of backlog, does not necessarily represent an inconsistency, as urged by the General Counsel herein, particularly where reasonably explained by uncontroverted testimony of record, and accordingly provides no basis for establishing improper motivation. The General Counsel cites The Bedford-Nugent Corp., 137 NLRB 1030, which I found not applicable. There the record revealed the Respondent's motivation through his actions in inquiring of the employees as to the amount of the benefits which they expected, and the timing of the grant of the benefits, on the very day of the Union's attempt to achieve recogni- tion, so as to clearly relate the grant to a counterac- tion of the union activity. I do not find that situa- tion herein. I do not find substantial credible evidence of record to overcome the reasonable basis for the offer, announcement, and grant of the benefits advanced by the Respondent herein and accordingly do not find that these actions were taken for the purpose of discouraging membership in or assistance to the Union as charged in the com- plaint. I will recommend that that portion of the complaint be dismissed. B. The Rule Forbidding Distribution of Literature The General Counsel further alleges that the Respondent violated Section 8(a)(1) of the Act by interfering with, restraining, and coercing its em- ployees by maintaining a rule forbidding distribu- tion of literature either written or printed on Respondent's premises without written authoriza- tion. The rule as published by the Respondent pro- vides that distribution of written or printed litera- ture on company premises without written authorization is cause for disciplinary action. The record establishes the fact that the rule is published in an employee booklet passed out to all em- ployees. ORLEANS MFG. CO., INC. 229 It is well established that the no-solicitation and no-distribution rules which prohibit union solicita- tion or distribution of union literature on company property by employees during their nonworking time are presumptively invalid unless the employer can demonstrate special circumstances establishing the rule as necessary in order to maintain produc- tion or discipline. Walton Manufacturing Company, 126 NLRB 697; Stoddard-Quirk Manufacturing Co., 138 NLRB 615. While the Respondent herein asserts the ex- istence of such special circumstances I do not find such circumstances to have been established on the record herein. Kvingedal testified essentially that the rule was based on a safety consideration, and on considerations involving continuity of produc- tion, stating that if small papers were distributed and then dropped on the floor, "it can't be swept up, and we have elderly men, they have to stoop down and pick all this stuff up." Kvingedal stated that, these papers could sometimes slip into the blower having the effect of plugging up the boiler system, and also amounted to a fire hazard in the event it is ignited'by the heat in the blower. I find this attempt by-the Respondent to assert as the ra- tionale for the rule the existence of potential inter- ference with production or potential fire hazard to be totally unconvincing. The Respondent argued additionally that the Union had ample means for getting literature into the hands of the employees other than on company property, citing N.L.R.B. v. Rockwell Manufactur- ing Company (Dubois Division), 271 F.2d 109 (C.A. 3). However, the record herein does not establish the existence of a situation involving the enforcement of the broad no-distribution rule for the ' purpose of maintaining discipline in the plant. Accordingly, I find that by the maintenance of the no'-distribution rule herein the Respondent inter- fered with, restrained, and coerced its employees in violation of Section 8(a)(1) of the Act. IV. THE EFFECT OF THE UNFAIR LABOR PRACTICES UPON COMMERCE 2. The United Furniture Workers of America, AFL-CIO, is a labor organization within the mean- ing of Section 2(5) of the Act. 3. By discriminatorily discharging Kenneth Prue because of his union activity the Respondent en- gaged in unfair labor practices affecting commerce within the meaning of Section 8( a)(3) and (1) and Section 2(6) and (7) of the Act. 4. By creating the impression of surveillance of union activities, by interrogating employees relative to protected activity, and by maintaining a rule for- bidding distribution of literature in the nonworking areas of the Employer's premises on nonworking time, the Respondent interfered with, restrained, and coerced its employees in the exercise of rights protected by Section 7 of the Act and thereby vio- lated Section 8(a)(1) and Section 2(6) and (7) of the Act. 5. The aforesaid unfair labor practices are unfair practices affecting commerce within the meaning of Section 2(6) and (7) of the Act. 6. The Respondent did not interrogate employee Jerry Prue through Supervisor Frank Gilfillan in violation of Section 8(a)(1) as charged in the com- plaint. 7. The Respondent did not offer, promise, and grant a wage increase to its employees for the pur- pose of discouraging membership in and assistance to the Union in violation of Section 8(a)(1) as charged in the complaint. THE REMEDY I shall recommend that the Company cease and desist from violating Section 8(a)(1)-and (3), that it reinstate Kenneth Prue with backpay computed in the manner set forth in F. W. Woolworth Com- pany, 90 NLRB 289, and Isis Plumbing & -Heating Co., 1 ,38 NLRB 716, and that ' it rescind without delay, the broad no-distribution rule published in the employee booklet. . Upon the foregoing findings of fact and conclu- sions of law and upon the entire record in this case, I recommend pursuant to Section 10(c) of the Act the issuance of the following: The activities of the Respondent set forth in sec- tion Ill[, above, occurring in connection with its operations set forth in section I, 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 thereof. Upon the basis of the foregoing findings of fact and upon the entire record in the case, I make the following: CONCLUSIONS OF LAW 1. The Respondent, Orleans Mfg. Co., Inc., is engaged in commerce within the meaning of Sec- tion 2(6) and (7) of the Act. ORDER The Respondent, Orleans Mfg. Co., Inc., Orleans, Vermont, its officers, agents, successors, and as- signs, shall: 1. Cease and desist from: (a) Discharging or otherwise discriminating against any employee because of membership or activity in United Furniture Workers of America, AFL-CIO, or any other labor organization. (b) Coercively interrogating employees as to their union activity or that of fellow employees, creating the impression that union meetings are being kept under surveillance, maintaining a rule forbidding distribution of literature on the Respond- 230 DECISIONS OF NATIONAL LABOR RELATIONS BOARD ent's premises without authorization, or in any other manner interfering with, restraining, or coerc- ing any employee in the exercise of his right to join or assist a labor organization, or to refrain from so doing. 2. Take the following affirmative action neces- sary to effectuate the policies of the Act: (a) Offer immediate and full reinstatement to Kenneth Prue to his former or substantially equivalent position, without prejudice to his seniority or other rights and privileges, and make him whole, in the manner described in the portion of the Trial Examiner's Decision entitled "The Remedy" for any loss of earnings suffered by reason of the discrimination against him. (b) Notify Kenneth Prue if presently serving in the Armed Forces of the United States of his right to reinstatement upon application in accordance with the Selective Service Act and the Universal Military, Training and Service Act, as amended, after discharge from the Armed Forces. (c) Preserve and, upon request, make available to the Board or its, agents, for examination and copying, all payroll records and reports and all other records necessary to ascertain the amount of backpay due under the terms of this Recommended Order. (d) Rescind without delay the broad no-distribu- tion rule as published in the employee booklet. (e) Post at its Orleans plant copies of the at- tached notice marked "Appendix ." Copies of said notice , to be furnished by the Regional Director for Region 1, after being signed by a duly authorized representative of Respondent, shall be posted by it immediately upon receipt thereof and be main- tained by it for 60 consecutive days thereafter, in conspicuous places, including all places where notices to employees are customarily displayed. Reasonable steps shall be taken by Respondent to insure that said notices are not altered , defaced, or covered by any other material. (f) Notify the Regional Director for Region 1, in writing, within 20 days from the receipt of this Decision , what steps Respondent has taken to comply herewith.' IT IS FURTHER RECOMMENDED that the complaint be dismissed insofar as it alleges violations of the Act not specifically found herein. 2 In the event that this Recommended Order is adopted by the Board, the words "a Decision and Order" shall be substituted for the words "the Recommended Order of a Trial Examiner " in the notice In the further event that the Board 's Order is enforced by a decree-of a United States Court of Appeals , the words "a Decree of the United States Court of Ap- peals Enforcing an Order" shall be substituted for the words "a Decision and Order " ' In the event that this Recommended -Order is adopted by the Board, this,provision shall be modified to read "Notify said Regional Director, in writing, within 10 days from the date of this Order, what steps Respondent has taken to comply herewith." APPENDIX NOTICE TO ALL EMPLOYEES Pursuant to the Recommended Order of a Trial Examiner of the National Labor Relations Board, and in order to effectuate the policies of the Na- tional Labor Relations Act, as,amended, we hereby notify our employees that: WE WILL NOT discourage membership in United Furniture Workers of America, AFL-CIO, or any other labor organization, by discharging any of our employees. Nor will we discourage membership in said Union or any other labor organization by discriminating against any of our employees in regard to their hire, tenure of employment, or any term or condition of their employment. - WE WILL NOT coercively ask employees questions about their union activities, sym- pathies, and desires, or those of other em- ployees. WE WILL NOT create the impression of sur- veillance of union activities. WE WILL NOT in any other manner' interfere with, restrain, or coerce our employees in the exercise of the rights guaranteed to them by Section 7 of the Act. WE WILL offer to Kenneth Prue immediate and full reinstatement to his former position or one substantially equivalent thereto, without prejudice to his seniority and other rights and privileges previously enjoyed by him. We will also pay him whatever loss of , pay he may have suffered as a result of his discharge by us, with interest thereon at 6 percent per annum. WE WILL rescind without delay the broad no distribution rule as published in the employee' booklet. All our employees are free to become or remain, or refrain from becoming or remaining , members of the above-named United Furniture Workers of America, AFL-CIO, or any other labor organiza- tion. ORLEANS MFG. CO., INC. (Employer) Dated By (Representative) (Title) NOTE: We will notify Kenneth Prue if presently serving in the Armed Forces of the United States of his right to full reinstatement -upon application in accordance with the Selective Service Act and the Universal Military Training and Service Act, as amended , after discharge from the Armed Forces. ORLEANS MFG. CO., INC. 231 This notice must remain posted for 60 consecu- communicate directly with the Board's Regional tive days from the date of posting and must not be Office, 20th Floor, John F. Kennedy Federal Build- altered , defaced , or covered by any other material. ing, Cambridge and New Sudbury Street, Boston, If employees have any question concerning this Massachusetts 02203, Telephone 223-3330. notice or compliance with its provisions , they may Copy with citationCopy as parenthetical citation