Osco Steel Co.Download PDFNational Labor Relations Board - Board DecisionsDec 29, 1967168 N.L.R.B. 1058 (N.L.R.B. 1967) Copy Citation 1058 DECISIONS OF NATIONAL LABOR RELATIONS BOARD Osco Steel Company and International Union of Dis- trict 50, United Mine Workers of America , and Its Local No. 14295 . Case 8-CA-4478 December 29, 1967 DECISION AND ORDER BY CHAIRMAN MCCULLOCH AND MEMBERS FANNING AND BROWN On August 25, 1967, Trial Examiner Herbert Sil- berman issued his Decision in the above-entitled proceeding, finding that the Respondent had not en- gaged in the unfair labor practices alleged in the complaint and recommending that the complaint be dismissed in its entirety, as set forth in the attached Trial Examiner's Decision. Thereafter, the General Counsel filed exceptions to the Trial Examiner's Decision and a supporting brief. The Respondent filed a brief in answer to the General Counsel's ex- ceptions. 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 and briefs, and the entire record in the case, and hereby adopts the findings, conclusions, and recommenda- tions of the Trial Examiner only to the extent con- sistent with this Decision and Order. The facts are set forth fully in the Trial Ex- aminer's Decision. Briefly summarized, the Union has represented a unit of Respondent's warehouse employees for approximately 10 years. About a month before the expiration date of their most recent collective-bargaining contract, the parties commenced negotiating for a renewal thereof. They were unable to reach agreement, and when the con- Page 1 Effective Effective Effective Classification 1966 1967 1968 Group Leader 3.12 3.22 3.32 Red Circle 2.90 3.00 3.10 3.20 Warehouse A 2.75 2. 85 2.95 Warehouse B 2.45 2.55 2.65 Warehouse C 2.35 2.45 2.55 Starting Rate 2.25 2.25 2.25 Cost of Living min 3¢ in addition, any year of this agreement as cost of Living adjustment tract expired on November 14, 1966, the em- ployees went out on strike. Representatives of the Respondent and the Union (including Respondent's president, Paul Keller, and its attorney, Paul Broderick for Respondent and Nicholas R. Patterson for the Union) met at the Federal Mediation Service's Cleveland office on November 16, and a prolonged bargaining ses- sion took place. The parties reached an agreement which was summarized in a memorandum prepared by Patterson, signed by the parties, and ratified by the striking employees that same evening. This memorandum, inter alia, lists job classifications for employees with applicable rates effective in 1966, 1967, and 1968, states that in addition an annual cost-of-living adjustment would be made, and lists six employees to be placed in the newly established warehouse A classification at $2.75 per hour, and two employees to become warehouse C at $2.35 per hour.' The strike was then terminated and the employees returned to work during the next few days. Broderick prepared a proposed draft of the revised collective-bargaining agreement which he submitted to the union representatives about November 29. The Union rejected this proposed draft on the ground that it did not provide for an an- nual cost-of-living increase for all employees and also because the six employees promoted to warehouse A were not given a cost-of-living in- crease in addition to their pay raise. On December 1 Respondent placed in effect all wage and cost-of- living increases as agreed upon during the November 16 bargaining session except for the cost-of-living increase for the above-named six warehouse A employees. The Respondent agreed that omission of the annual increase provision was an error, and about December 14 Keller presented to the Union a revised draft of the proposed con- tract which corrected this and one or two other in- advertent mistakes. But, he refused at all times to apply the across-the-board increase to the newly promoted warehouse A employees in addition to their raise . The Union refused to accept this Page 3 Adjustments George Yelsik $ 2.75 Harry Vincent 12. 35 Joe Wojieckowski 2.75 John Kmitt 2.35 Sam Bompiedi 2.75 Earl Wilks 2.75 Don Logan 2.75 Steve Giracs 2.75 Signed in the presence of L. J. Mantis Commissioner of Federal Mediation & Conciliation Service Co. 11-16-66 Union /s/ Paul Keller /s/ R. A. Schaefer /s/ George Danko /s/ Joseph Ravida /s/ Stephen J. Giracs, Jr. /s/ Emil S. Walentik /s/ N. R. Patterson 168 NLRB No. 146 OSCO STEEL COMPANY proposed contract, and by letter dated December 29 Keller withdrew all of Respondent's outstanding proposals for a new contract. The complaint alleged that Respondent violated Section 8(a)(5) of the Act by refusing to execute a written agreement containing the terms agreed upon during bargaining on November 16. The Trial Ex aminer concluded that the Respondent had, not agreed to give the cost-of-living increase to the six employees in addition to their new pay raise, and that Respondent's refusal to execute an agreement containing such provision was not in violation of Section 8(a)(5) of the Act. For the reasons set forth below, we do not agree. There is no dispute about the fact that toward the close of the November 16 negotiation meeting Pat- terson asked Keller if the cost-of-living increase would be given to the six employees promoted to warehouse A. The parties disagree as to what en- sued. According to Patterson's testimony, he threatened that the strike would continue unless these employees received the cost-of-living adjust- ment and Keller then angrily agreed to give them the increase. According to Keller's testimony, Pat- terson asked for the cost-of-living raise for the six employees, but it was not discussed further and Keller never agreed to grant it. Keller admits mak- ing a concession , but asserts that this related to re- tention of the general cost-of-living provision. How- ever, as detailed above, after the November 16 bar- gaining session, Patterson prepared a memorandum of agreement, which on the first page listed the newly established job classifications, with the pay scale for each, and including an annual 10-cent-per- hour pay raise. This was followed immediately by the provision for an annual cost-of-living adjust- ment to be given. No exceptions are set forth. On another page the six, employees to be promoted to warehouse A at $2.75 per hour and the two em- ployees to be promoted to warehouse C at $2.35 per hour are listed, and again there is nothing on this page to indicate that these eight employees would not also receive the cost-of-living increase. In fact, the two employees promoted to warehouse C did receive such increase and only the six were omitted. The Trial Examiner stated that the memorandum was not dispositive, but in fact he appears to have given it no weight. Contrary to the Trial Examiner, the memorandum of agreement, as signed by the parties to the bargaining, on its face appears to have only one clear meaning and constitutes a prima facie showing that the Respondent agreed during bargaining to grant to all employees, and that the six employees were to receive, a cost-of-living increase 2 We find no merit in the Trial Examiner 's implied finding in his foot- note 4 that the alleged violation was not established because no written agreement embodying terms reached November 16 was shown to have been submitted by the Union to the Respondent for signature , and the Respondent , in effect , was therefore not requested to sign an agreement 1059 in addition to the pay scale of their new classifica- tion. Under these circumstances, it was not incum- bent on the General Counsel, as the Trial Examiner apparently concluded, to establish by other evidence that the parties specifically agreed to give the cost-of-living to the six men. To rebut this prima facie case it was necessary for Respondent to ad- duce evidence that the parties agreed affirmatively to exclude the six. This the Respondent failed to do. Keller's testimony that he did not agree to give these employees a cost-of-living increase does not amount to such an assertion, and it is insufficient to overcome the prima facie evidence of the memorandum . In further support of the view that the six employees were intended to receive the cost-of-living increase is the fact that the promotion was proposed by the Respondent to compensate these employees for performing higher rated work. Yet the result of failing to grant them this increase was that some lower rated employees were still receiving the same wages they were. For example, Lawrence Hughes, listed as warehouse B at $2.58 per hour, was not promoted to warehouse A. How- ever, after he received the 1966 annual 10-cent-per- hour raise and the 7-cent-per-hour cost-of-living in- crease, he now received $2.75 per hour - the same as the employees who were promoted to warehouse A. Accordingly, in all of the circumstances of this case, we are persuaded that the evidence established that Respondent agreed to give a cost- of-living adjustment to the six employees promoted to warehouse A in addition to their raise to $2.75 per hour, and that by refusing, on or about November 29, to execute a collective-bargaining agreement with the Union containing such provi- sion Respondent violated Section 8(a)(5) and (1) of the Act .2 THE REMEDY Having found that the Respondent has engaged in unfair labor practices, we shall order that it cease and desist therefrom and take certain affirmative action to effectuate the' policies of, the Act. It, has been found that the Respondent has refused to bargain collectively with International Union of District 50, United Mine Workers of America, and its Local No. 14295, as the exclusive representative of the employees in the appropriate unit by refusing to execute the collective-bargaining agreement agreed upon between it and the aforesaid Union. We shall therefore order that the Respondent, upon re- quest of the Union, execute the collective-bargaining embodying those terms Since the Respondent undertook to draft a proposed collective-bargaining agreement , it was obligated to prepare and sign a document including all the provisions agreed upon , and failure to do so would constitute a violation as alleged. 336-845 0 - 70 - 68 1060 DECISIONS OF NATIONAL LABOR RELATIONS BOARD agreement agreed upon between it and Interna- tional Union of District 50, United Mine Workers of America , and its Local No. 14295 , and to make whole George Yelsik, Joe Wojieckowski, Sam Bompiedi , Earl Wilks, Don Logan , and Steve Giracs, Sr., for any losses they may have suffered by reason of Respondent 's unlawful refusal to give them the cost-of-living increase on December 1. 1966 , at the time they were promoted to warehouse A.3 CONCLUSIONS OF LAW 1. International Union of District 50, United Mine Workers of America, and its Local No. 14295, are labor organizations within the meaning of the Act. 2. Osco Steel Company is engaged in commerce within the meaning of the Act. 3. All warehouse employees of the Respondent at its Cleveland, Ohio, warehouse, excluding designated foremen and superintendents, truck- drivers, office employees, guards, and supervisors as defined in the Act, constitute a unit appropriate for the purposes of collective bargaining within the meaning of Section 9(b) of the Act. 4. International Union of District 50, United Mine Workers of America, and its Local No. 14295, were, on November 23, 1966, and at all times since have been, the exclusive representative of all employees in the aforesaid appropriate unit for the purposes of collective bargaining within the meaning of the Act. 5. By refusing to execute a written contract in- corporating in full the collective-bargaining agree- ment which it reached with International Union of District 50, United Mine Workers of America, and its Local No. 14295, the Respondent has engaged in and is engaging in unfair labor practices within the meaning of Section 8(a)(5) of the Act. 6. By the aforesaid refusal to bargain, Respond- ent has interfered with, restrained, and coerced, and is interfering with, restraining, and coercing, its employees in the exercise of the rights guaranteed to them in Section 7 of the Act, and has thereby en- gaged in and is engaging in unfair labor practices within the meaning of Section 8(a)(1) of the Act. 7. The aforesaid unfair labor practices are unfair labor practices affecting commerce within the ,meaning of Section 2(6) and (7) of the Act. ORDER Pursuant to Section 10(c) of the National Labor Relations Act, as amended, the National Labor Relations Board hereby orders that the Respond- 3 Moneys due these employees shall bear interest as prescribed in Isis Plumbing & Heating Co., 138 NLRB 716 4 In the event that this Order is enforced by a decree of a United States ent, Osco Steel Company, Cleveland, Ohio, its officers, agents, successors, and assigns, shall: 1. Cease and desist from: (a) Refusing, if requested to do so by Interna- tional Union of District 50, United Mine Workers of America, and its Local No. 14295, to sign a document incorporating the agreement reached with the Union on or about November 16, 1966, or, if no such request is made, refusing, upon request, to bargain collectively with the Union as the exclu- sive bargaining representative of all its employees in the appropriate unit with respect to rates of pay, wages, hours of employment, and other terms and conditions of employment. (b) In any like or related manner interfering with, restraining, or coercing employees in the rights guaranteed to them by Section 7 of the Act. 2. Take the following affirmative action which the Board finds will effectuate the policies of the Act: (a) Upon request of the Union, sign forthwith a written contract containing the agreement reached with the Union on or about November 16, 1966. If no such request is made, upon request of the Union, bargain collectively with it as the exclusive representative of the employees in the above unit and, if an understanding is reached, embody such understanding in a signed agreement. The ap- propriate unit is: All warehouse employees of the Respondent at its Cleveland, Ohio, warehouse, excluding designated foremen and superintendents, truckdrivers, office employees, guards, and super- visors as defined in the Act. (b) Make whole George Yelsik, Joe Wojieckowski, Sam Bompiedi, Earl Wilks, Don Logan, and Steve Giracs, Sr., for any monetary loss each may have suffered by reason of Respondent's unlawful refusal to give them a cost-of-living in- crease on December 1, 1966, at the time they were promoted to warehouse A, in the manner set forth in the Remedy section herein. (c) Preserve and, upon request, make available to the Board or its agents, for examination and copying, all payroll records, social security pay- ment records, timecards, personnel records and re- ports, and all other records necessary to analyze the amount of backpay due under the terms of this Order. (d) Post at its Cleveland, Ohio, warehouse copies of the attached notice marked "Appendix." 4 Copies of said notice, on forms provided by the Re- gional Director for Region 8, after being duly signed by Respondent's representative, shall be posted by Respondent immediately upon receipt thereof, and be maintained by it for 60 consecutive Court of Appeals, there shall be substituted for the words "a Decision and Order" the words "a Decree of the United States Court of Appeals En- forcing an Order." OSCO STEEL COMPANY 1061 days thereafter, in conspicuous places, including all places where notices to employees are customarily posted. Reasonable steps shall be taken by Respond- ent to insure that said notices are not altered, defaced, or covered by any other material. (e) Notify the Regional Director for Region 8, in writing, within 10 days from the date of this Order, what steps have been taken to comply herewith. APPENDIX NOTICE TO ALL EMPLOYEES Pursuant to a Decision and Order of the National Labor Relations Board and in order to effectuate the policies of the National Labor Relations Act, as amended, we hereby notify you that: WE WILL, upon request, execute a contract incorporating the agreement reached on November 16, 1966, by us and International Union of District 50, United Mine Workers of America, and its Local No. 14295. If no request to execute is made, WE WILL, upon request, bargain collectively with the Union as the exclusive bargaining representative of all the employees in the following unit: All warehouse employees employed by us at our Cleveland, Ohio, warehouse, ex- cluding designated foremen and superin- tendents, truckdrivers, office employees, guards, and supervisors as defined in the Act. WE WILL make whole George Yelsik, Joe Wojeieckowski, Sam Bompiedi, Earl Wilks, Don Logan, and Steve Giracs, Sr., for any losses suffered by reason of Respondent's refusal to grant them the cost-of-living in- crease, as agreed. WE WILL NOT, by refusing to execute an agreement, or by refusing to bargain with the Union, or in any like or related manner inter- fere with, restrain, or coerce our employees in the exercise of the rights guaranteed them by Section 7 of the Act. OSLO STEEL COMPANY (Employer) Dated By (Representative) (Title) This notice must remain posted for 60 consecu- tive days from the date of posting and must not be altered, defaced, or covered by any other material. If employees have any question concerning this notice or compliance with its provisions, they may communicate directly with the Board's Regional Office, Federal Office Building, Room 1695, 1240 East Ninth Street, Cleveland, Ohio 44199, Telephone 522-3738. TRIAL EXAMINER'S DECISION STATEMENT OF THE CASE HERBERT SILBERMAN, Trial Examiner: Upon a charge filed by the above-named Union on January 25, 1967, a complaint was duly issued on March 9, 1967, alleging that the Respondent has engaged in and is engaging in un- fair labor practices proscribed by Section 8(a)(1) and (5) of the Act. Respondent's answer to the complaint generally denies that it has engaged in the alleged unfair labor practices. A hearing in this proceeding was held in Cleveland, Ohio, on May 15, 1967. Thereafter, the General Counsel and the Respondent filed briefs with me which have been carefully considered. Upon the entire record in the case and from my obser- vation of the witnesses and their demeanor, I make the following: FINDINGS OF FACT 1. THE BUSINESS OF THE RESPONDENT Respondent, an Ohio corporation, is engaged in the business of warehousing and selling steel products at its premises located in Cleveland, Ohio. In the conduct of its business operations Respondent annually ships products valued in excess of $50,000 from its Cleveland, Ohio, warehouse directly to points located outside the State of Ohio. Respondent admits, and I find, that it is engaged in commerce within the meaning of Section 2(6) and (7) of the Act. II. THE LABOR ORGANIZATION INVOLVED The Union is a labor organization within the meaning of Section 2(5) of the Act. III. THE ALLEGED UNFAIR LABOR PRACTICES The sole issue in this case is described by General Counsel in his brief as follows: The Complaint in substance alleges that the Respond- ent interfered with its employees' statutory rights by refusing from on or about November 23, 1966 to date, to execute a written collective bargaining agree- ment agreed upon by the parties on November 16, 1966, unless it could make additional changes to that part of the agreement reflecting the cost of living ad- justment for six employees. The Union has been the recognized representative of Respondent's warehouse employees for a substantial number of years. There are approximately 45 employees in the unit. The parties' most recent collective-bargaining agreement, executed on January 17, 1964, was effective retroactively from November 13, 1963, until November 14, 1966. In October 1966 the parties commenced negotiations directed towards the renewal of their con- tract. However, agreement was not reached by the con- tract's expiration date and, as a result, the employees went on strike. Negotiations were continued during the strike. On November 16, at the conclusion of a 1062 DECISIONS OF NATIONAL LABOR RELATIONS BOARD protracted bargaining session, the parties purportedly ar- rived at a complete understanding. A memorandum of their understanding was prepared by Nicholas R. Patter- son, the Union's spokesman during the negotiations, and was signed by the representatives of the Company and the Union. The understanding was ratified by the striking employees the same evening and the strike thereupon ter- minated. The Company was represented at the negotiations prin- cipally by its president, Paul Keller, and its attorney, Paul Broderick. Within 1 or 2 days following the last bargain- ing session Broderick prepared a draft of the revised col- lective-bargaining agreement. About November 29 the draft was reviewed by representatives of the Union who rejected the instrument on the ground that it did not con- form to the understanding reached by the parties on November 16, 1966. The objection to the draft was that the wage rate for six employees (George Yelsik, Joe Wojieckowski, Sam Bompiedi, Earl Wilks, Don Logan, and Steve Giracs), who were being advanced to labor grade "A" was set at $2.75, the rate for their new classifi- cation, but was less than had been agreed upon because, according to the Union, these employees were entitled to an additional amount to reflect a cost-of-living adjustment which the parties had agreed would be given to the em- ployees across the board.i The memorandum of agree- ment which the parties signed on November 16 is not dispositive of the issue because it is written in ab- breviated form and has no meaning absent parol evidence explaining the parties' intentions. During the negotiations there were three principal areas of controversy. One concerned the Union's demand that job classifications should be established with specified rates assigned for each classification; the second concerned the Company's demand that the provi- sion in the prior contract calling for cost-of-living adjust- ments should be deleted in the new contract; and the third concerned the rate to be paid to employees who tem- porarily are assigned to the shear operation. At the November 16 meeting the Company, pursuant to a request made by the Union the day before, furnished the Union with a schedule listing, among other things, the names of the employees in the contractual unit and the proposed job classification of each. Asterisks appeared ' There were one or two other objections to the draft which the Com- pany acknowledged were inadvertent errors and which the Company later corrected. Thus , the single issue between the Union and the Company re- garding the draft of the contract prepared by the latter related to the one question of whether on November 16 the parties had agreed that the six employees in question were to be given a cost-of-living increase in addi- tion to the increase they received because of their advancement in labor grade. S The agreement of the parties provided for an across -the-board in- crease of 10 cents per hour plus an increase to reflect the rise in the cost of living during the preceding 12 months . On November 16, the parties did not have a figure for the cost-of-living increase because the Bureau of Labor Statistics index for which the amount would be computed had not yet been issued and would not be issued until the end of November. On December 1, the parties determined and agreed that the cost-of -living in- crease was 7 cents per hour. Accordingly, the general increase agreed to by the Union and the Employer amounted to 10 cents plus 7 cents or a total of 17 cents . Each of the six employees here in question was advanced to the classification of warehouse "A" which carried a rate of $2.75 per hour. As of November 16, none of the six was earning more than $2.58 alongside two names. When inquiry was made, Keller ex- plained that he believed the two men performed higher rated work and should be given an "A" classification. The Union agreed to this proposal. However, the Union's representatives contended that there were four other em- ployees who performed similar duties and that those four employees also should be given "A" classifications. After some discussion the Company accepted this proposal. The increase in wage rate for each of these six employees as a consequence of his advancement in classification was equal to or greater than the across-the-board increases which had been agreed upon.2 According to the testimony of Patterson, corroborated to a substantial extent by the testimony of Ronald A. Schaefer, Stephen Giracs, Jr., and Joseph Ravida, immediately before the negotiations came to a close Patterson stated that the six employees in question were to receive the cost-of-living increase in ad- dition to such increase as was involved in their advance- ment to labor grade "A." 3 Keller objected. Patterson then said that there is no agreement, the strike will con- tinue and made preparations to leave the room. Whereu- pon, Keller angrily assented to Patterson's proposal. The testimony of Keller, generally corroborated by Emil Walentik, then vice president and currently president of the Local Union who was a witness called by the General Counsel, and George A. Danko, the Company' s plant su- perintendent who also was a witness called by the General Counsel, was that towards the close of the meet- ing Patterson stated in connection with a discussion of the job classifications being established by the negotiations and the rates for such classifications that without the cost-of-living provision in addition there would be no agreement, whereupon Keller angrily agreed that the cost-of-living provision would remain. The one and only factual question in this case is whether Patterson's version or Keller's version of their final conversation during the meeting of November 16 is correct. The critical difference between the two versions is whether the discussion concerned the deletion of the cost-of-living provision from the contract or concerned the wage rates which initially would be paid under the contract to the six employees who were being advanced to the "A" classification. Upon review of all the evidence adduced at the hearing relating to this question and upon per hour. Therefore, the $2.75 rate represented an increase equal to or more than 17 cents per hour for each of the six. It is undisputed that the 10-cent-per-hour general wage increase was not applicable to these six employees. The only question is whether the 7-cent-per-hour cost-of-liv- ing increase was applicable to these six employees. 8 There is some ambiguity in Patterson's testimony as to whether there was one or two discussions concerning the cost-of-living adjustment for the six employees . At one point during his testimony he stated, "The agreement was reached that all six of these people, their rates would be adjusted to $2 75 ... [and] . . the cost of living was to be added to that " However, International Representative Ronald A Schaefer testified that "Well, all through the contract negotations , we were discussing cost of liv- ing, but at this point [when the Company agreed that the six men would be brought up to $2 75j the representative of the Company [Broderick] said, `Let's just put the cost of living aside because we don't know what's going to be; just put it aside ."' I find, contrary to Patterson 's testimony , that at the time agreement first was reached to advance the six men to the "A" classification the parties did not then agree that the men should also be given a cost-of-living adjustment OSCO STEEL COMPANY my evaluation of the respective credibility of the various witnesses who testified about the subject and the reliabili- ty of the relevant portions of their testimony, I find that the company representatives at the meeting of November 16, 1966, did not, as testified to by Patterson, agree that the six employees in question were to receive a cost-of- living increase, in addition to the increase which they received by reason of being given a warehouse "A" clas- sification. I find, therefore, contrary to the General Coun- sel, that the Company has not engaged in the unfair labor practices alleged in the complaint herein.4 The substance of the unfair labor practices alleged in the complaint is that since November 23, 1966, "Respondent has refused, and continues to refuse , to execute a written agreement incorporating the terms and con- ditions agreed upon .. .." No evidence was adduced at the hearing that any written agreement embodying the terms of the understanding reached CONCLUSIONS OF LAW 1063 Respondent has not violated Section 8(a)(1) and (5) of the Act as alleged in the complaint. RECOMMENDED ORDER On the basis of the foregoing findings of fact and con- clusions of law and upon the entire record in the case, I recommend that the complaint in this case be dismissed in its entirety. on November 16 was at any relevant time submitted by the Union to the Company for signature and that the Respondent refused to sign the same. See International Brotherhood of Pulp, Sulphite and Paper Mill Workers, AFL-CIO, Local No. 61 ( Groveton Papers Company ), 144 NLRB 939. Copy with citationCopy as parenthetical citation