Painters Local 249, Brotherhood of Painters, Etc.Download PDFNational Labor Relations Board - Board DecisionsMar 9, 1962136 N.L.R.B. 176 (N.L.R.B. 1962) Copy Citation 176 DECISIONS OF NATIONAL LABOR RELATIONS BOARD Painters Local Union No. 249, Brotherhood of Painters, Deco- rators and Paperhangers of America , AFL-CIO and John J. Reich . Case No. 9-CC-275. March 9, 1962 DECISION AND ORDER On January 9, 1961, Trial Examiner Sydney S. Asher, Jr., issued his Intermediate Report in the above-entitled proceeding, finding that it would not effectuate the policies of the Act to assert jurisdiction over the Employer's operation, and recommending dismissal of the complaint in its entirety. Pursuant to exceptions duly filed by the General Counsel, the Board on March 22, 1961, reopened the record and remanded the case. The parties thereupon entered into a stipula- tion which was incorporated into the existing record, and waived any further hearings. On June 22, 1961, Trial Examiner Asher issued his Supplemental Intermediate Report in this proceeding, finding that it would effec- tuate the policies of the Act to assert jurisdiction,' and that the Re- spondent, referred to herein as Local 249 or the Union, had engaged in and was engaging in certain unfair labor practices, and recommend- ing that it cease and desist therefrom and take certain affirmative action, as set forth in the copy of the Supplemental Intermediate Report attached hereto. Thereafter, Local 249 filed exceptions and a supporting brief. The Board has reviewed the rulings of the Trial Examiner made at the hearing and fords that no prejudicial error was committed. The rulings are hereby affirmed. The Board has considered the entire record in this case, including the Supplemental Intermediate Report, the exceptions, and brief, and hereby adopts the findings, conclusions, and recommendations of the Trial Examiner with the following amplification. The facts are accurately set forth in the Supplemental Intermediate Report. Briefly, John J. Reich is a painting contractor who entered into a partnership agreement in 1953 with his son Louis, who was then 17 years old.' Several years later, while working with his father in i The Trial Examiner found that the Employer ' s operations satisfied the Board' s appli- cable jurisdictional standard since it had performed services valued in excess of $50,000 for employers who were themselves engaged in commerce . In coming to this conclusion, the Trial Examiner included compensation for portions of two contracts which were per- formed partly within and partly outside the base period. One such job was performed in 71 days, of which 70 were within the base period , and the Trial Examiner prorated the value of the services performed on the basis of the work performed in the base period The other job was estimated by the Employer to have been 90 percent completed during the base period and the Trial Examiner again prorated the value of that job on the basis of the work performed within the base period. We find that the Trial Examiner's allocations were proper and therefore deny the exceptions of Local 249 to the jurisdictional findings set out in the Supplemental Intermediate Report See Pelnik Wrecking Com- pany, Inc, 126 NLRB 259. 2A copy of the agreement is attached to the Supplemental Intermediate Report as Appendix A. 136 NLRB No. 11. PAINTERS LOCAL 249, BROTHERHOOD OF PAINTERS, ETC. 177 the business, Louis joined Local 249 but, during the events involved herein, had become delinquent in his dues payments and was no longer a member in good standing. In May 1960, the Employer and Local 249 entered into a collective- bargaining agreement which contained the following article XIX : Where there is more than one person in a Contracting business or Corporation working under this agreement, only one person shall be allowed to work with the tools of the trade. If more than one person works with the tools of the trade they shall be members of the Union. During the month of September 1960, the Union took steps to rectify what it regarded as a violation of this provision since neither John nor Louis Reich was a member in good standing and both refused to promise that they would not work with the tools of the trade. At a union meeting on September 9, the membership passed a motion "that starting September 12, 1960, we no longer work for John Reich Paint- ing Contractor until he complies with our working agreement." The two employees of the Employer immediately informed John Reich that they would no longer be able to work for him because of this motion. Since September 10, neither of these employees, nor any other member of Local 249, has worked for the Employer. On Sep- tember 30, 1960, Local 249 notified John Reich that it would have no further dealings with him because he chose to operate his business without regard for union conditions and restrictions. The complaint alleges that Local 249 violated Section 8 (b) (4) (A) by inducing or encouraging Reich's employees to strike and by threat- ening, coercing, or restraining Reich, for the object of forcing or requiring Louis Reich, an employer or self-employed person, to join a labor organization. We agree with the Trial Examiner's reasoning and his conclusions that Local 249 induced the two employees of the Employer to withhold their services and, by threatening to strike and striking, it coerced and restrained the Employer, for an object pro- scribed by Section 8 (b) (4) (A). We also agree with the Trial Examiner's conclusion that John and Louis Reich were partners and that, consequently, Louis Reich is an employer or self-employed person within the meaning of Section 8 (b) (4) (A) 3 The major contention of Local 249 is that article XIX is a complete defense to the violation alleged, and that its attempts to enforce, and its later repudiation of, the contract obviate any possible inference that its object was to force Louis Reich to become a member of its organization. The Trial Examiner found it unnecessary to deter- mine whether the Employer was in violation of article XIX since as 3 Like the Trial Examiner, we respectfully disagree with the finding of the Federal District Court in Fraker v Brotherhood of Painters ( Civil No 2519 , D C S. Ohio) that the alleged partnership agreement does not establish genuine partnership. 178 DECISIONS OF NATIONAL LABOR RELATIONS BOARD a matter of fact Louis Reich had not worked with the tools of the trade from the time he lost his good standing in the Union until after September 30, 1960, when the contract was repudiated by the Union. Although finding it unnecessary to reach that question, he did specifi- cally find that, assuming the validity of article XIX, the method used by Local 249 in attempting to obtain compliance with the contract violated Section 8(b) (4) (A). We concur with these conclusions of the Trial Examiner. Here, the Union attempts to defend conduct constituting inducement and threats under 8 (b) (4) (i) and (ii) for an object proscribed by Section 8(b) (4) (A). We have heretofore held that an attempt to enforce an otherwise valid contractual provision does not insulate a respondent from liability where its actions con- stitute a violation of the "cease handling" or "cease doing business" provisions of Section 8(b) (4) (B), (Section 8(b) (4) (A) before the 1959 amendments).' We perceive no essential distinction between attempts to enforce a contract provision where an object thereof is to force or require an employer or self-employed person to join a labor organization from a situation where an object is to force any person to cease doing business with any other person. In neither case can we permit a union to attain an unlawful object by claiming that it is merely seeking to have the employer abide by its contractual obligation. ORDER The Board adopts the Amended Recommendations of the Trial Examiner as its Order with the modification that provision 2(d) be amended to read "Notify the said Regional Director, in writing, with- in 10 days from the date of this Order, what steps the Respondent has taken to comply herewith." s MEMBERS LEEDOM and BROWN took no part in the consideration of the above Decision and Order. 'Local 1976, United Brotherhood of Carpenters and Joiners of America, AFL and Los Angeles County District Council of Carpenters and Nathan Fleisher v N L P. B. (Sand Door & Plywood Co ), 357 U S. 93. Local 294, International Brotherhood of Teamsters, etc (Bonded Freightways), 121 NLRB 924, enfd. 273 F 2d 696 (C A. 2) ; Local 929, United Brotherhood of Carpenters and Joiners of America, AFL-CIO, et at (The Mengel Com- pany), 120 NLRB 1756; Springfield Building Trades Council, et at (Leo Spear Construc- tion Co, Inc.), 120 NLRB 600, enfd 262 F. 2d 494 (C A. 1) ; Bangor Building Trades Council, AFL-CIO (Davison Construction Company, Inc ), 123 NLRB 484. 1In the notice attached to the Supplemental Intermediate Report as Appendix B, the words "Decision and Order" are hereby substituted for the words "The Recommendations of a Trial Examiner" In the event that this Order is enforced by a decree of a United States Court of Appeals, there shall be substituted for the words "Pursuant to a Decision and Order" the words "Pursuant to a Decree of the United States Court of Appeals, Enforcing an Order " The following is to be inserted in the notice immediately after the sentence beginning "This notice must remain posted . . : "Employees may communicate directly with the Board's Regional Office, Transit Building, 4th & Vine Streets, Cincinnati, Ohio ; Telephone Number, Dunbar 1-1420, if they have any question concerning this notice or compliance with its provisions." PAINTERS LOCAL 249, BROTHERHOOD OF PAINTERS, ETC. 179 SUPPLEMENTAL INTERMEDIATE REPORT This case involves allegations that Painters Local Union No. 249 , Brotherhood of Painters , Decorators and Paperhangers of America , AFL-CIO, herein called the Respondent, has since on or about September 9, 1960, engaged in, and induced and encouraged individuals employed by Louis G. Reich and John J . Reich , copartners, d/b/a John Reich Painting and Decorating, herein called the Employer , to engage in, a strike, and since on or about September 6, 1960 , threatened , coerced, and re- strained the Employer , an object thereof being to force or require Louis G. Reich, one of the copartners of the Employer , to join the Respondent . It is alleged that this conduct violated Section 8 (b) (4) (i ) and (ii ) (A) of the National Labor Rela- tions Act, as amended ( 61 Stat . 136), herein called the Act . After the issuance of a complaint by the General Counsel , the Respondent filed an answer denying the jurisdictional facts alleged in the complaint , denying that the Employer was engaged in commerce or that its operations affected commerce , and also denying the com- mission of any unfair labor practice . A hearing was held before me on October 24 and November 1, 1960 , at Dayton, Ohio. All parties were represented and par- ticipated fully in the hearing . At the close of the General Counsel's case, the Respondent moved to dismiss the complaint on several grounds, one of which was that "there is no proof of [the Employer's engagement in] commerce ." Ruling thereon was reserved . On January 9, 1961 , I issued my Intermediate Report finding that the General Counsel had failed to prove that it would effectuate the policies of the Act for the Board to assert jurisdiction over the Employer 's operations, and recommending that the Board grant the Respondent 's motion to dismiss the com- plaint in its entirety . On the same day the case was transferred to the Board. The General Counsel filed exceptions to the Intermediate Report and a brief in support thereof , alternatively requesting "that the matter be remanded to the Trial Examiner for further hearing concerning jurisdiction only " The Respondent filed a brief in support of the Intermediate Report . On March 22 , 1961, the Board reopened the record and remanded the case, directing "that a further hearing be held before Trial Examiner Sydney S. Asher, Jr., for the purpose of adducing further evidence to establish whether each store or unit of the retail concerns serviced by John J . Reich between September 1, 1959, and September 1, 1960, individually satisfies the Board 's jurisdiction standards in accordance with New Jersey Poultry & Egg Cooperative Association , Inc., 114 NLRB 536." The Board also directed me to "prepare and serve upon the parties a Supplemental Intermediate Report con- taining findings of fact , conclusions of law and recommendations based upon the evidence contained in the entire record." Thereafter , on April 7 , 1961 , "to obviate the necessity of further hearing," the parties stipulated certain facts regarding whether each store or unit of the retail concerns serviced by the Employer between September 1, 1959, and September 1, 1960 , individually satisfied the Board 's jurisdictional standards . The stipulation further provided that it should "become a part of the record herein . in lieu of a further hearing herein, subject to its acceptance by the Trial Examiner and the parties hereby waive any further hearing in this case." Accordingly , on April 24, 1961 , I issued an order receiving the stipulation in evidence and closing the record.' In view of the postremand stipulation , which contains facts compelling a reevalua- tion of the findings in the original Intermediate Report, the findings of fact , conclu- sion of law , and recommendation contained therein are now rescinded , and the Respondent's motion to dismiss the complaint is denied . Upon the entire record in this case ,2 including my observation of the witnesses , and also including the post- remand stipulation of the parties , I make the following: ' In connection with the remand , the Board had authorized the Regional Director to issue a notice of hearing No such notice had been issued at the time of the order closing the record 2 Certain errors in the transcript have been corrected previously The transcript is now further corrected as follows: Page 121, line 18: Delete the word "stipulatios" and insert in lieu thereof the word "stipulations " Page 132, line 18: Delete the month "August" and insert in lieu thereof the month "September." Page 182, line 13: Delete the word "he " and insert in lieu thereof the words "the Respondent." 641795-63-vol. 136-13 180 DECISIONS OF NATIONAL LABOR RELATIONS BOARD AMENDED FINDINGS OF FACT A. The Board's jurisdiction 1. Applicable principles The performance of services for business concerns constitutes at least a significant part of the Employer's operations. Therefore the Employer may be considered, for jurisdictional purposes, as a nonretail enterprise.3 The Board will assert juris- diction over nonretail enterprises which have a direct or indirect outflow across State lines of at least $50,000 annually .4 Here the Employer has no proven direct outflow. Therefore, in order to meet the Board's jurisdictional standards, it must be shown that the Employer's indirect outflow amounted to $50,000 during the base period. The Board has defined indirect outflow as "sales of goods or services to users meeting any of the Board's jurisdictional standards except the indirect outflow or indirect inflow standard." 5 One other preliminary observation should be made. The Board has held that the impact of an employer's operations is determined by the annual rate of ship- ment of goods in interstate commerce, rather than the flow of payments therefore Accordingly, the controlling factor here is the time when the Employer performed services; the date when payment was made, if any, is immaterial. 2. The appropriate base period The original complaint, which was filed on October 4, 1960, alleged that the Em- ployer had received in excess of $50,000 for services performed for interstate firms "during the past twelve months." At the hearing, the General Counsel described the base period as "the twelve months' period ending September 1, 1960. The period preceding that." On October 24, 1960, during the hearing, the General Counsel amended the complaint, again defining the base period as "during the past twelve months." On November 1, 1960, during the hearing, the General Counsel once more amended the complaint, reiterating therein the phrase "during the past twelve months." At the close of this case, the General Counsel amended the complaint again to describe the critical period as "from September 1, 1959, to September 1, 1960," pointing out that "it is a twelve-month period preceding the filing of the charges." In his brief to the Trial Examiner, the General Counsel referred to the base period as being "between September 1, 1959, and September 1, 1960." In his brief to the Trial Examiner, able counsel for the Respondent vigorously attacked the base period contended for by the General Counsel for the following reasons: (1) the General Counsel should not be permitted to pick "what twelve month period [he] might choose to use to show commerce"; (2) the alleged unfair labor practice oc- curred after the base period selected by the General Counsel and therefore "com- merce [within the General Counsel's base period] could not have been affected by any alleged unfair labor practice of respondent during that time"; (3) the period chosen has no relation to the case; and (4) "if September 1, 1959 to September 1, 1960, is used with both dates inclusive, a year and a day is being used." As men- tioned above, the Board's remand order, in describing the base period, used the phrase "between September 1, 1959, and September 1, 1960" and this language was repeated in the postremand stipulation of the parties. Let us examine the Respondent's objections to the General Counsel's suggested base period seriatim. As to (1), it is true that the General Counsel appears to have vacillated on this issue. However, the emphasis should properly be placed not on how many times the General Counsel seems to have changed his mind regarding the crucial period, but rather on whether he ultimately applied a period which is appropriate under all the circumstances. For reasons appearing below, I am of the opinion that he has done so here-except for a 1-day correction applied hereafter. With regard to (2), it is not necessary that the selected 12-month period encompass the time during which the unfair labor practices allegedly took place. So far as I am aware, the Board has never imposed such a limitation. Indeed, it seems to have dpne the very thing of which the Respondent complains, namely, found that an un- fair labor practice was committed on a date subsequent to the base period utilized 3 John Myers, d/b/a Myers & Camille Painters, 131 NLRB 72. * Siemons Mailing Service, 122 NLRB 81, 85. 5 Ibid 6 Jos. McSweeney & Sons, Inc., 119 NLRB 1399, 1400. PAINTERS LOCAL 249, BROTHERHOOD OF PAINTERS, ETC. 181 for jurisdictional purposes.7 Referring to (3), in applying its jurisdictional standards, the Board has "relied on the experience of an employer during the most recent calendar or fiscal year, or the 12-month period immediately preceding the hearing before the Board, where such experience was available." 8 Here, the record does not show what period the Employer used as his fiscal year; nor does it show the extent of the Employer's operations during the most recent calendar year, 1959; nor does it indicate whether such figures were available. Nevertheless, I cannot agree with the Respondent that the base period selected by the General Counsel (September 1, 1959, to September 1, 1960) is unrelated to the matter at hand. I do not interpret the Board's above-quoted rule as so rigid and inflexible as to exclude the use of other appropriate 12-month periods .9 The appropriateness of the base period selected herein is found in the fact that it is the 12-month period immediately preceding both the alleged commission of the unfair labor practices and the filing of the charges herein.1e Finally, as to (4), it is true that "from September 1, 1959, to September 1, 1960" encompasses a year and a day if both September dates are included. But in a postremand letter, copies of which were sent to the other parties, the General Coun- sel indicated "that September 1, 1960, was not included in the critical period." It is accordingly found that a base period which may properly be used for jurisdic- tional purposes is from September 1, 1959, to August 31, 1960, inclusive, and that such a period is justified and appropriate under the circumstances here present. 3. Retail enterprises During the base period the Employer rendered services in the State of Ohio for the following retail enterprises in the following amounts: S. S. Kresge Company, $3,605; Elder and Johnston, $970; W. T. Grant Company, $622; and F. W. Wool- worth Company, $988. The parties stipulated with regard to the above-named retail enterprises as set forth in the original Intermediate Report. After the remand re- ferred to above, the parties further stipulated as follows: 1. Each store unit of (S. S. Kresge Co., Elder and Johnston, W. T. Grant Company, and F. W. Woolworth Co.) the retail concerns serviced by John J. Reich, the Employer involved herein, between September 1, 1959, and Septem- ber 1, 1960, satisfies the Board's jurisdictional standards individually, in ac- cordance with the Board's decision in New Jersey Poultry & Egg Cooperative Association, Inc., 114 NLRB 536, in that each of said stores or units of said retail concerns has an annual gross volume of retail sales in excess of $500,- 000.00 and each of said stores or units of the said retail concerns has an annual direct inflow of goods, wares and merchandise, in interstate commerce, of a value in excess of $50,000.00 which are shipped directly from points outside of the State of Ohio to each of said stores or units, individually, at their respective locations in and around Dayton, Ohio. 2. Said parties hereby further stipulate that each store or unit of said retail concerns serviced by John J. Reich between September 1, 1959 and September 1, 1960, is engaged, individually, in "commerce" or in operations "affecting com- merce" as defined in Section 2(6) and (7) of the Act respectively. I find the facts to be as stipulated. On the basis of this second stipulation, not available to me at the time of the issuance of the original Intermediate Report, I rescind my finding therein that the $6,185 received by the Employer from retail enterprises cannot be counted as indirect outflow, and will therefore count this amount as indirect outflow during the base period, within the meaning of New Jersey Poultry & Egg Cooperative Association, Inc., 114 NLRB 536. 4. Oil and petroleum companies On October 22, 1959, the Employer and Standard Oil Company (herein called Standard) entered into a contract for sandblasting and painting at Standard's bulk See for example Community Shops, Inc, 130 NLRB 1522 There the base period for Jurisdictional purposes was the year 1958, yet the Board found that unfair labor prac- tices had been committed in April 1959. Similarly in Southern Dolomite, 129 NLRB 1342 and 131 NLRB 513, the base period was "the 1959 fiscal year" and the Board found that unfair labor practices had been committed in January 1960. BAroostook Federation of Farmers, Inc, 114 NLRB 538, 539, quoted with approval in John Myers, d/b/a Myers & Camille Painters , supra. O For example, In La Prensa, Inc., 131 NLRB 523, the Board used "the year preceding issuance of the complaint." 10 The complaint alleges that the unfair labor practices were committed on or about September 6 and 9 , 1960, and the charges were filed on September 15, 1960. 182 DECISIONS OF NATIONAL LABOR RELATIONS BOARD plant in Dayton, for the sum of $4,669 "subject to such additions or deductions as may be hereafter agreed to between the parties arising out of any additions to, omissions from, or alterations in the plans and specifications." The funds were to be paid as follows: On the 10th of each month after the work begins, payment of 85 percent of the value of work completed during the preceding month; payment of the remaining 15 percent to be made 65 days after completion of the entire contract. The Employer agreed to submit monthly reports to Standard showing the percentage of work completed during the previous month. Work on this project commenced early in November 1959. Bad weather set in and work discontinued until September 1, 1960. The job was ultimately completed in October 1960. John J. Reich, the Charging Party, testified that approximately 90 percent of the job had been completed before September 1, 1960, and that no payment had been received for this job. The record does not show whether the Employer furnished monthly progress reports to Standard as required by the contract. The General Counsel claims that the value of services rendered by the Employer to Standard during the base period is 90 percent of $4,669. This raises two ques- tions: May any portion of services begun but not completed during the base period be counted as indirect outflow during the base period, and if so, how should the amount or value of services rendered during the base period be calculated? Neither the General Counsel nor the Employer has cited any authority to the effect that a contract commenced during the base period may be "split up" nor have I been able to discover any.11 The proposition appears to be a novel one. However, there are certain guideposts. Thus, in one case the Board stated: "It is the annual rate of shipment or flow of goods in interstate commerce, rather than the rate of flow of payments for such goods, that determines the relative impact of an employer's operations on commerce," 12 The emphasis is placed on the "annual rate of . . . flow of goods [services]." By parity of reasoning, it would seem logical in measuring "the relative impact of an employer's operations" to include as indirect outflow all services actually rendered during the base period to customers whose operations meet the Board's jurisdictional standards, even where such services con- stitute only part, rather than the whole, of a specific project. I conclude that con- tracts are separable for this purpose, and that so much of a contract as is per- formed within the base period may be counted as indirect inflow. How, then, should the contract in question be split? It cannot be assumed that work progressed at an even pace throughout the contract's duration; for John J. Reich testified without contradiction that bad weather compelled its temporary discontinuance. The only available guide is his estimate that the work had been approximately 90 percent com- pleted before September 1, 1960. As he is engaged in the business and his estimate should therefore be meaningful, and as his estimate stands uncontradicted, the General Counsel's proposal to count 90 percent is "the only practicable method that could be used in the circumstances." 13 The Respondent protests that the base of $4,669 is unreliable in the absence of proof that Standard actually paid that amount for the completed job. This contention lacks merit. Standard contracted to pay $4,669 with price changes permissible when agreed upon by the parties. There is no proof that the parties ever adjusted the figure of $4,669 Accordingly it is found that, during the base period, the Employer performed, within the State of Ohio services for Standard valued at 90 percent of $4,669, or $4,202.10. Between August 10 and November 12, 1959, the Employer performed in and around Dayton a number of jobs for Phillips Petroleum Company, herein called Phillips, for which it received $9,594.54 on November 18, 1959. John J. Reich testi- fied that, of this amount, work valued at a total of $6,458 was completed before September 1, 1959, and work valued at a total of $3,996.50 was performed after September 1, 1959. The General Counsel therefore claims that work valued at $3,996.50 was performed within the base period. Obviously at least one of these figures is inaccurate, for the portion alleged to have been completed before Septem- ber 1, 1959 ($6,458) when added to the portion allegedly performed after that date ($3,996.50) results in a total ($10,454.50) greater than the total the Employer 11 In Pelnik Wrecking Company, Inc., 126 NLRB 259, the Board assumed, without de- ciding, that the contract in question was divisible. 12 Jos McSweeney & Sons, Inc, supra. 11 Pelnik Wrecking Company, Inc., supra at 261. PAINTERS LOCAL 249, BROTHERHOOD OF PAINTERS, ETC. 183 received from all the jobs ($9,594.54). The answer is probably found in the estimate. This contains "amounts" totaling $12,735.14, but at the bottom of the column of figures is "Net Payment" of $9,600.64-a reduction of approximately 24.6 percent.14 It is therefore reasonable to assume that, after adding the amounts of the individual job estimates, the Employer agreed to accept a reduction of 24.6 percent in net payment of the entire bill," and that John J. Reich mistakenly testified from the "amount" column but neglected to reduce these figures by 24 6 percent.16 Another adjustment needs to be made: The figure of $3,996.50 for work purported- ly performed after September 1, 1959, is not accurate. The record shows that it includes one job in the amount of $3,669 on which work commenced on August 31 and ended on November 9, 1959. This job therefore began before the base period but was completed within the base period; it must be apportioned.17 For this pur- pose it will be assumed that this job proceeded at an even pace during the 71 days of its existence. Hence 1/71, or 1 day's proportion, must be deducted as outside the base period, amounting to $51.67. Deducting this from the amount claimed by the General Counsel ($3,996.50) gives $3,994.83. Accordingly, I find that the correct value of work performed during the base period from this payment of $9,594.54 was 75.4 percent of $3,944.83, or $2,974.40. In September 1959 the Employer performed in and around Dayton additional painting work for Phillips in the amount of $2,193.80. Thus the value of all work performed within Ohio for Phillips during the base period was $2,974.40 plus $2,193.80, or a total of $5,168.20. During the base period the Employer performed services, mostly in and around Dayton,18 for Gulf Oil Corporation (herein called Gulf) amounting to $32,281.75.19 In addition, between August 9 and October 16, 1959, the Employer performed services for Gulf in the amount of $428 at Wilmington and Irving Streets, Dayton The General Counsel claims that the portion of this work performed within the base period amounted to $395, explaining "2 out of total of 28 hours worked before 9/ 1 /59 or one third of total $428 subtracted." The General Counsel's method of allocating a portion of this contract to the base period is perhaps open to question. However, the entire job, valued at only $428, is insufficient in size to affect the ulti- mate result herein. Therefore, in order to avoid unnecessary elongation of this report, this job will be disregarded altogether. The parties stipulated after the close of the hearing that Gulf, Phillips, and Standard "are and have been engaged at Dayton, Ohio, in the non-retail distribution of goods, wares, merchandise and other commodities and . . . each . . . has a direct inflow of goods and materials annually, in interstate commerce of a value in excess of $50,000 which are shipped to them directly from points outside of said state." I so find. 5. General contractors In August 1960 the Employer performed work at an undisclosed location for V. O. Price Co. for which it was ,paid $1,320. The parties stipulated after the close 14 There is no apparent explanation for the $6 10 discrepancy between the $9,600 64 "net payment" figure on the estimate and the $9,594 54 actually received 15 This accords with the Employer's method of charging Phillips on other estimates In one instance the total estimated "amount" was $2,950 20 but net payment therefor was only $2,193 80; in another the estimated "amount" totaled $8,188.80 while net payment was only $6,010 70 In both these cases there was a reduction of slightly over 25 percent. 18 He also omitted any mention of three other jobs totaling $2,280 64 In the "amount" column. The $10,454 50 mentioned above plus this $2,280 64 gives $12,735 14. the total of figures in the "amount" column. 17 If work commenced during the base period but which was completed after the base period may be "split," the same logic should apply to a contract started before the base period and completed during the base period 1s Of this amount the location is not shown of jobs totaling $6,311 "This excludes an item of $236 because as to it the record shows that it was com- menced on December 14, 1959-an impossible state of affairs Obviously, at least one of the dates is erroneous The Respondent questions the amount claimed for work done for Gulf allegedly amount- ing to $4,300 75, on the ground that the bill was not paid by Gulf and therefore the figure is a "unilateral valuation " In the absence of any evidence that this figure was excessive, I find no merit in the Respondent's contention 184 DECISIONS OF NATIONAL LABOR RELATIONS BOARD of the hearing, and it is found , that "V. O. Price Co. is and has been engaged as a general contractor in the building and construction industry at Dayton , Ohio, and elsewhere and has a direct inflow of materials and supplies of a value in excess of $50,000 annually, in interstate commerce , which are shipped to it directly from points outside of said state." 6. Newspapers In September and October 1959 the Respondent performed services in Dayton for Dayton Daily News in the amount of $572 . The parties stipulated after the close of the hearing, and I find , that "Dayton Daily News is and has been a daily newspaper published and distributed in Dayton, Ohio , having an annual gross income in excess of $200,000 , and a direct outflow annually, in interstate commerce, of materials and supplies of a value in excess of $50,000 which are shipped to it directly from points outside of said state." No evidence was introduced to show that Dayton Daily News holds membership in or subscribes to interstate news services, or publishes nationally syndicated features , or advertises nationally sold products. Therefore Dayton Daily News does not, on this record , meet the Board 's jurisdic- tional standards applicable to newspapers . 20 Accordingly , the $572 worth of serv- ices rendered it will not be counted as indirect inflow to the Respondent. 7. Banks During the base period the Employer performed two jobs in Ohio for Peoples Bank in the total amount of $344. The parties stipulated after the close of the hearing, and I find, that "Peoples Bank is and has been engaged in the commercial banking business at Dayton, Ohio, and has an annual volume in interstate commerce, of checks in excess of $50,000 sent by it for collection directly to banks outside of the State of Ohio and an annual volume, in interstate commerce, of checks in excess of $50,000 sent directly to it for collection by banks outside of said state." 21 8. Other nonretail enterprises During the base period the Employer performed three jobs for Top Value Enter- prises, Inc., at unspecified locations, in the total amount of $595.48. The Employer also performed two other projects for the same firm in the total amount of $270.44, but it is not entirely clear what portion of these were performed within the base period. As in any event the inclusion or exclusion of these latter two jobs would not affect the ultimate result herein, no findings need be made regarding them. In August 1960 the Employer performed a job for the East Dayton Tool and Die Company, in Dayton, for the sum of $372. In July or August 1960 the Employer performed work for Linden Tool and Manufacturing Co., in Dayton, in the amount of $155. In October 1959 the Employer performed two jobs for Allen Cartons, Inc., in Dayton, for the total sum of $445. The parties stipulated after the close of the hearing, and it is found, that "Top Value Enterprises, Inc., The East Dayton Tool and Die Company, Linden Tool and Manufacturing Co., and Allen Carton's, Inc., (sic) are and have been engaged at Dayton, Ohio, in the nonretail distribution of goods, wares, merchandise and other commodities and that each of them has a direct inflow of goods and materials annu- ally, in interstate commerce, of a value in excess of $50,000 which are shipped to them directly from points outside of said state." 9. Conclusions regarding jurisdiction From the foregoing it is concluded that, during the base period, the Employer rendered services to the following firms engaged in commerce, each of which meets the Board's standards for the assertion of jurisdiction (other than the indirect out- 20Beilevalle Employing Printers , 122 NLRB 350, 351-352 21 Apparently, checks sent directly by a bank to other banks outside the State for col- lection is the equivalent of direct outflow of the sending bank for purposes of applying the Board 's jurisdictional standards The Connecticut Bank and Trust Company, 114 NLRB 1293, footnote 1. PAINTERS LOCAL 249, BROTHERHOOD OF PAINTERS, ETC. 185 flow or indirect inflow standards) in the amount set opposite its name, which con- stitute indirect outflow from the Employer during the base period: Retail enterprises: S. S. Kresge Co---------------------------- $3,605.00 Elder and Johnston-------------------------- 970.00 W. T. Grant Company----------------------- 622.00 F. W. Woolworth Co----------------------- 988.00 Oil and petroleum companies: Standard Oil Company---------------------- 4,202.10 Phillips Petroleum Company----------------- 5,168.20 Gulf Oil Corporation----------------------- 32, 281.75 General contractors: V. O. Price------------------ 1,320.00 Banks: Peoples Bank---------------------------- 344.00 Other nonretail enterprises: Top Value Enterprises, Inc------------------- 595.48 The East Dayton Tool and Die Company-------- 372. 00 Linden Tool and Manufacturing Co------------ 155.00 Allen Cartons, Inc-------------------------- 445.00 $6, 185.00 41, 652.05 1,320.00 344. 00 1, 567.48 Total--------------------------------------------- 51,068. 53 It is accordingly found that, during the base period, the Employer was engaged in commerce within the meaning of Section 2(6) and (7) of the Act; that it had an indirect outflow of more than $50,000, and therefore its operations meet the Board's jurisdictional standards for nonretail enterprises; and that it would effectuate the policies of the Act for the Board to assert jurisdiction over its operations. B. The Respondent and its agents The complaint alleges, the answer admits, and it is found, that the Respondent is, and at all material times has been, a labor organization within the meaning of the Act. The complaint alleges that, at all material times, Irvin Grefer and Robert S. Meyers have been agents of the Respondent and its recording secretary and business rep- resentative, respectively. The answer admits that Meyers is the Respondent's business representative but denies that Grefer is its recording secretary and denies that either of them are, or have been, agents of the Respondent. At the hearing the Respondent stipulated that Meyers is its business agent, duly elected and serving as such , and that he negotiates contracts on its behalf. Another stipulation of the parties indicates that, in September 1960, Grefer was the Respond- ent's financial secretary. I find the facts to be as stipulated. The evidence further shows, and I find, that Grefer was authorized to receive dues on behalf of the Re- spondent from its members and to sign their dues books. It is accordingly con- cluded that Meyers and Grefer were, at all material times, agents of the Respondent within the meaning of the Act. C. The unfair labor practices 1. Sequence of events On July 9, 1953, John J. Reich entered into what purports to be a partnership agreement, hereto attached as Appendix A, with his son, Louis G. Reich, who was then 17 years of age. Louis G. Reich entered the military service on June 13, 1955, and was honorably discharged on June 1, 1957. Louis G. Reich worked with the tools of the trade as a painter without incident until sometime in July 1958 . By that time, John J. Reich had dropped out from his former membership in the Dayton Chapter of the Painting and Decorating Contractors of America, herein called the Association. In July 1958 John J. Reich met with representatives of the Association and the Respondent . Meyers acted as spokesman on behalf of the Respondent . At this meeting Meyers told John J. Reich that the Respondent's members would not work 186 DECISIONS OF NATIONAL LABOR RELATIONS BOARD for him unless Louis G. Reich joined the Respondent. John J. Reich agreed and Louis G. Reich joined the Respondent as an apprentice, for the purpose of enabling him to attend apprentice painting school sponsored by the Association and the Re- spondent with the aid of the State and Federal Governments 22 At this meeting Meyers was shown the purported partnership agreement, Appendix A. Thereafter Louis G. Reich attended apprentice school for two semesters, the equivalent of "two school years [in] regular school " In 1960 representatives of the Respondent and the Association negotiated but failed at first to agree upon terms for a contract. On May 1 23 the Respondent struck the members of the Association and the Employer. After about 3 weeks, the Association and the Respondent executed a collective-bargaining agreement, and the strike apparently ended. Three days after the employees of the Employer went back to work, John J. Reich received an agreement identical to the one entered into between the Association and the Respondent. A note was attached requesting John J. Reich to sign the agreement and return it to the Respondent. He did so This contract contained a 7-day union-security clause, and wage scales through April 30, 1962. Article XIX read, in part: Where there is more than one person in a Contracting business or Corporation working under this agreement, only one person shall be allowed to work with the tools of the trade. If more than one person works with the tools of the trade they shall be members of the Union. Thereafter, the employees of the Employer received the wage rates set forth in the agreement, and the Employer observed all the contract's terms, with the possible exception of article XIX, which will be discussed at greater length hereafter. On September 1 Grefer telephoned the residence of John J. Reich, which is also the business office of the Employer, and left word to have Louis G. Reich appear at the Respondent's office to pay his dues which were delinquent. On September 2 John J. Reich gave Louis G. Reich a check in the amount of $23.75 with instructions to proceed to the Respondent's office and give the Respondent the mentioned check covering his dues arrearage. He further instructed Louis G. Reich not to give the Respondent the check if he would be required to pay an additional reinstatement fee. Thereafter, Louis G. Reich went to the Respondent's hall and tendered the check to Grefer. Grefer informed him that he would have to pay a reinstatement fee of $5 in addition to his dues. Louis G. Reich refused to pay the reinstatement fee and the check for the amount of the delinquent dues was not accepted by the Respondent. On September 6 John J. Reich went to the office of the Respondent and offered the check of $23.75 to Meyers. Meyers informed him that Louis G. Reich would not be allowed to work until he was reinstated in the Respondent. He added that if Louis G. Reich worked without being reinstated in the Respondent, he would take the men out of the Employer's shop John J. Reich informed Meyers that Louis G. Reich was a partner in the business and, therefore, did not have to belong to the Respondent. No agreement was reached at this meeting. On the same day, Meyers sent a letter to John J. Reich which read: Regarding the "Union Security" Clause, in the Working Agreement which you have signed with Painters Local #249. This is to inform you that Louis Reich has lost his good standing membership in Local #249. On September 8 Kenneth J Vance and Roy Turpin, members of the Respondent and the only employees of the Employer at that time, appeared before the Re- spondent's executive board, herein called the Board, at Meyers' request. Meyers informed them and the Board that they had a little trouble with John J Reich and that Louis G. Reich was delinquent in his dues and had refused to pay the rein- statement fee, but had offered to pay the dues. Vance and Turpin told the Board that Louis G Reich was the "Boss" and signed payroll checks, directed them in their duties, hired, fired, and laid off employees, and that he was a partner to John J Reich. One of the board members read to the meeting article XIX of the agree- ment , quoted above. Vance and Turpin suggested that, as John J. Reich did not work with the tools of the trade, there was no reason that they could see that Louis G. Reich could not work with the tools of the trade without being a member of the Respondent. In response to a question, Vance stated that Louis G. Reich had not 22 At the time, Louis G. Reich was over the apprentice age At first. Meyers pointed out that apprentices were not allowed to supervise work but he eventually agreed that Louis G Reich could continue his supervisory duties while attending apprentice school 23 All dates hereafter refer to the Year 1960 unless otherwise noted PAINTERS LOCAL 249, BROTHERHOOD OF PAINTERS, ETC. 187 worked since receiving Meyers' above-quoted letter. Turpin confirmed this. At the end of the meeting it was suggested by Meyers to Vance and Turpin that they should attend a regular meeting of the Respondent scheduled for the following night, as the matter of John J. Reich would be taken up at that time. The meeting ended without any formal action. Vance and Turpin then visited John J. Reich at his home and informed him of the meeting and of their attendance. On September 9 a regularly scheduled membership meeting of the Respondent was held. Among others, Vance, Turpin, Meyers, and Grefer were present. After discussion of other business, Meyers brought up the subject of trouble with John J. Reich. He stated that Louis G. Reich had refused to pay a reinstatement fee to the Respondent, but had tendered back dues. Grefer suggested that Louis G. Reich be pulled from the job and the two employees of John J. Reich be allowed to work. Meyers suggested that no member of the Respondent be allowed to work for John J. Reich until the matter was cleared up. The following motion was then made, seconded , and passed by the membership: that starting September 12, 1960, we no longer work for J. Reich Paint- ing Contractor until he complies with our working agreement. Vance and Turpin then informed John J. Reich on the telephone that they would not be able to work the next day as scheduled because of the motion which had been carried at the Respondent's meeting. The next morning Vance and Turpin went to the home of John J. Reich and again explained that they could not work for him that day. He replied that he understood their point of view. During the afternoon of September 13, John J. Reich and Harry D. Wright, vice president of the Association, conferred with Meyers. During this conference John J. Reich showed Meyers the purported partnership agreement, Appendix A, and told Meyers that, because of this agreement, his son was a partner of several years' standing. He then showed Meyers a pamphlet given him by the National Labor Re- lations Board which, in part, stated that management did not have to join a labor organization. Meyers asked John J. Reich if it was his (John J. Reich's) intention to continue to work with the tools of the trade. John J. Reich replied that he intended to continue to do so. Meyers stated that if Louis G. Reich "was going to continue to work, he would have to belong to the Union." John J. Reich asked Meyers why his employees were not working Meyers replied, "Well, they can work for you." John J. Reich then said: "Well, [it is] funny that they are not working. They . . . said `we are not allowed to work for you.' Do you mean to tell me that if these men work for me that they wouldn't get fined, you wouldn't prefer charges [against] them?" Meyers responded: "I can't answer that." John J. Reich then stated that the Respondent "had no right to take my men away from me being that Louis wasn't working. If Louis would have worked, then [you] would have had some kind of a reason, but being Louis wasn't working in the shop, I [don't] see why [you] should .pull the men." Meyers answered: "Oh, have Louis be reinstated and join the Union and get your men back. Until that time you get no men." At the suggestion of Wright, it was agreed to hold a meeting that night among the members of the Association, John J. Reich, and the board of the Re- spondent. At this meeting, which was held as scheduled, John J Reich again, ex- hibited the purported partnership agreement, Appendix A, and informed the Board that his son , being part of the management , according to the pamphlet which he had received from the National Labor Relations Board, did not have to join the Respondent. He added that he (John J. Reich) also would work with the tools of the trade. Meyers remarked that the National Labor Relations Board pamphlet was out of date, adding: "We don't go by that anyhow. We go by the agreement that you signed." He further stated that "the only thing for [John J. Reich] to do was to have Louis to come back in and be reinstated and get in good standing with the Union and [he would] get [his] men back." John J. Reich was asked to leave the room and it was suggested by the board that the Association take up a collection and pay the reinstatement fee. After this, John J. Reich reentered the room and stated that the issue was not the repayment of the reinstatement fee, but whether Louis G. Reich was going to belong to the Respondent. Apparently the suggestion to make a collection was dropped. One of the board members told the meeting that the Respondent had voted that no member should work for John J. Reich until the suspension of Louis G. Reich was settled, and further stated "It's $5 and have Louis come back into the union or no men ." John J . Reich then said that he had been "put out of business" and warned that if he did not get men in the morning he would have no alternative but to file charges with the National Labor Relations Board. Meyers replied that that was his privilege, and the meeting ended. On September 15 John J . Reich filed the instant charges. Thereafter the Re- gional Director filed in the United States District Court for the Southern District of 188 DECISIONS OF NATIONAL LABOR RELATIONS BOARD Ohio (Western Division) a petition for a temporary injunction under Section 10 (1) of the Act; the Respondent filed an answer. The court found that there was no reasonable cause to believe that the Respondent had violated Section 8(b)(4)(i) and (ii) (A) of the Act and denied the petition 24 On September 30 the Respondent held a membership meeting at which the following motion was unanimously passed: . that we discontinue doing business with John J. Reich, Painting Contractor, because he will not live up to our working agreement. On the same day the Respondent wrote to John J. Reich as follows: Painters Local No. 249 has had relations with you for an extended period of time. Now, however, it is quite obvious that you desire to sever relations with Painters Local No. 249 and operate your business without regard for union conditions and restrictions. The union accepts your repudiation of union conditions and your severance of the relationship, and henceforth shall have no further dealings with you. So far as the record shows, the Respondent has never picketed the place of business of John J. Reich nor any site where he was working, nor put him on any ",unfair" or "do not patronize" list, nor otherwise notified the public or his suppliers that it has any dispute with him. Since September 9 neither Vance nor Turpin nor any other member of the Respondent has worked for the Employer. The action of the Respondent's membership of September 9, quoted above, has not, so far as the record reveals, been amended or repealed. Several times since September 9 Vance and Turpin discussed with Meyers the possibility of their returning to work for John J. Reich. Meyers told them that the Respondent would "require something in writing" that either John J. Reich or Louis G. Reich would not work with the tools of the trade. Meyers also stated to them that "he wouldn't say it's okay to go back to work, and he wouldn't say it's not okay to go back to work." From September 6, when the letter from Meyers, quoted above, was received, until October 3, Louis G. Reich performed no services whatever for John J. Reich. It is the Respondent's present position that if Louis G. Reich does not work with the tools of the trade, the Respondent has no interest in whether or not he is a member of the Respondent; but if John J. Reich and Louis G. Reich both intend to work with the tools of the trade, members of the Respondent will not work for John J. Reich unless article XIX of the agreement, quoted above, is complied with. 2. The inducement and encouragement a. Contentions of the parties The complaint alleges, and the answer denies, that "since on or about September 9, 1960, the [Respondent] has engaged in a strike against the Employer, and has ordered, directed, instructed and appealed to its members employed by the Employer not to work for the Employer." Although it is not entirely clear from the record, the General Counsel, in support of this allegation, presumably relies upon the motion of September 9 and Meyers' later statements to Vance and Turpin regarding their return to Reich's employ. Pointing out that "no picketing, or other forms of re- straint or coercion, are involved in this case," the Respondent argues in its brief that "those members of the [Respondent] who had been employed by Reich prior to September 9, 1960, were not ordered nor asked to withdraw their services from Reich. . . . No one induced the two employees . [to] withdraw their services from the employer, and they were told that the [Respondent] was telling them neither to work for Reich or not to work for him. The choice was theirs." Sec- ondly, the Respondent urges that "it is not a violation of the Act to simply advise members as to which employers have agreements with the union and which do not." Moreover, conceding that "perhaps had they [the employees involved] worked for Reich [after September 9] they would have been subject to disciplinary action within the union," the Respondent maintains that any such disciplinary action would be protected by the proviso clause contained in Section 8(b)(1)(A) of the Act. Finally, the Respondent argues that "members of the respondent union are not obli- gated under the Act to work for John Reich either individually or collectively." b. Conclusions regarding inducement and encouragement Section 8(b) (4) (i) of the Act, as amended, makes it a violation for a labor organization or its agents- 24 Fraker v . Brotherhood of Patinters, etc, Civil No 2519 (D C. S. Ohio) PAINTERS LOCAL 249, BROTHERHOOD OF PAINTERS, ETC. 189 to engage in, or to induce or encourage any individual employed by any person engaged in commerce or in an industry affecting commerce to engage in, a strike or a refusal in the course of his employment to . . . perform any services where an object thereof is proscribed. It has been found above that the Employer was engaged in commerce. As Vance and Turpin were employed by the Employer on September 9 there can be no doubt, and I find, that each of them was, on that date, an "individual employed by any person engaged in commerce" within the meaning of the above-quoted section of the Act 25 The next question is therefore whether the motion adopted by the Respondent's membership on September 9 induced or encouraged either of them to refuse in the course of his employment to perform services for the Employer. The United States Supreme Court, speaking of Section 8(b) (4) (A) of the Act, the predecessor of the present Section 8(b) (4) (i), stated: "The words `induce or encour- age' are broad enough to include in them every form of influence and persuasion." 26 Bearing this in mind, the Respondent's contention that "no one induced the two employees to withdraw their services from the employer" and that "the choice was theirs" is simply contrary to the facts and highly unrealistic. Indeed, the Respond- ent's attorney candidly admitted at the hearing "they [Vance and Turpin] can go on and work with [the Employer], but I am satisfied, and there is no use being naive about it, if they do, I am satisfied that some members of the Union, officers of the union will file charges against them, put them out of the union." In short, it is quite clear that when the Respondent's membership passed the motion in question they were not merely engaging in an intellectual exercise but, on the contrary, fully intended their motion to be adhered to. Any would-be violator was impliedly warned that the Respondent might exercise sanctions against him 27 In an industry such as the construction industry, where good standing in a union is a valuable asset, such a implied threat was-and must be considered as intended to be-a potent inducement to compliance. It was highly successful here in producing the desired action; the potency of the motion is underscored by the fact that upon its passage both Vance and Turpin immediately dropped their jobs with the Employer like a hot potato-not even waiting for its effective date of September 12. And this happened despite their evident satisfaction with their employment, shown by their relatively long period of working for the Employer 28 and their attempts to get permission from Meyers to return thereto after September 9. Realistically, then, the only "choice" afforded them was a "Hobson's choice": do as you have been told, or take your chance on the consequences. The Respondent's argument that a union does not violate the Act simply by "ad- vising members as to which employers have agreements with the union and which do not," whether legally correct or not, is beside the point. There is a substantial difference between advice and a preemptory order. Here the Respondent did not merely inform its members. It did much more. It effectively directed them to refrain from working for the Employer until its demands had been met. In effect, the motion of the membership was tantamount to a strike call The Respondent's next defense, as I understand it, is that the Union had a legal right to discipline its membership for any reason whatever, and a fortiori to threaten such action "within the union." This right is assertedly based upon the proviso to Section 8(b) (1) (A) of the Act, which reads: Provided, That this paragraph shall not impair the right of a labor organization to prescribe its own rules with respect to the acquisition or retention of mem- bership therein. [Emphasis supplied ] The key words in the proviso are "this paragraph"-namely, paragraph (1) of Section 8, subsection (b). Therefore the proviso is limited by its own terms to the same paragraph of the Act and is not applicable to the paragraph with which we are here concerned, namely paragraph (4) of Section 8, subsection (b).29 28For a definition of "individual" see Local Union No 505, International Brotherhood of Teamsters, etc (Carolina Lumber Company), 130 NLRB 1438 28 International Brotherhood of Electrical Workers, Local 501, at at v N L R B (Samuel Langer), 341 U S. 694, 701-702 27 Compare Truck Drivers and Helpers Local Union No 728, etc (Genuine Parts Com- pany), 119 NLRB 399, 407, enfd as modified, 265 F. 2d 439 (C.A. 5), cert denied 361 US. 917 20 Vance had worked for the Employer since May 1959 and Turpin since August 1959 x In support of its position in this regard the Respondent cites International Typo- graphical Union, et at . ( American Newspaper Publishers Association ), 86 NLRB 951, Minneapolis Star and Tribune Company, 109 NLRB 727, and Foundation Company, 120 190 DECISIONS OF NATIONAL LABOR RELATIONS BOARD It is undoubtedly true, as pointed out by the Respondent, that no member of the Respondent is obliged by the Act, or indeed by any other law, to continue to work for the Employer against his will30 But that fact does not license any union to induce or encourage a work stoppage for a proscribed object. The final issue regarding inducement and encouragement is whether the Respond- ent is legally accountable therefor. Here, the action of the membership itself con- stituted the inducement and encouragement; the Respondent's liability therefor cannot seriously be questioned, regardless of the agency status of Meyers or Grefer. For the foregoing reasons it is concluded that, on September 9, 1960, the Respond- ent induced and encouraged Vance and Turpin, individuals employed by a person engaged in commerce, to cease working for their employer31 3. Threats, coercing, and restraint a. Contentions of the parties Paragraph 6 of the complaint alleges, and the answer denies, that "since on or about September 6, 1960 , the [Respondent ], through its Agents, Grefer and Meyers, has demanded that Louis G. Reich , one of the Co-Partners of the Employer, join the [Respondent]." Paragraph 8 of the complaint further alleges , and the answer denies, that ",by the acts and conduct described above , the [Respondent] . . threatened, coerced and restrained the Employer ." The General Counsel has not indicated in either oral argument or in his brief what specific conduct of Grefer and Meyers he relies upon in support of these allegations. Nor has the Respondent stated its position on this issue.32 It will be assumed, however, that the General Counsel does not contend that paragraph 6 of the complaint, standing alone, sets forth a violation of the Act. In other words, it will be assumed that the General Counsel's position is that a mere demand that Louis G. Reich join the Respondent is insufficient and that to constitute a violation of the Act there must also be some threats, restraint, or coercion practiced on the Employer by the Respondent. b. Conclusions regarding threats, coercion, and restraint Section 8(b)(4)(ii) of the Act, as amended, provides that it shall be an unfair labor practice for a labor organization or its agents "to threaten, coerce, or restrain any person engaged in commerce or in an industry affecting commerce" where an object thereof is prohibited. A search of the record reveals that the following occurred: In July 1958 Meyers told John J. Reich that the Respondent's members would not work for him unless Louis G. Reich joined the Respondent. This took place outside the period set forth in the complaint and is also barred by the 6-month limitation contained in Section 10(b) of the Act. It will therefore be disregarded. On September 6, 1960, Meyers informed John J. Reich that, if Louis G. Reich worked without being reinstated in the Respondent, he (Meyers) would take the men out of John J. Reich's shop. This was a clear threat to strike the Employer's shop if the Respondent's demands were not met. Again, on September 13, Meyers told John J. Reich: "Oh, have Louis be reinstated and join the Union and get your men back. Until that time you get no men ." Similarly, this was a threat to con- tinue a strike already in effect against the Employer. It is found that both consti- tute threats, coercion, and restraint 33 of John J. Reich, a person 34 engaged in com- NLRB 1453 These cases involved alleged violations of Section 8(b) (1) of the Act, not of Section 8(b) (4) They are therefore inapposite 3o Involuntary servitude is prohibited by the United States Constitution, thirteenth amendment. See also Genuine Parts Company, supra, at 407. 311n reaching this conclusion I have not found it necessary to consider the conversa- tions after September 9 between Vance and Turpin on one hand and Meyers on the other, as findings with regard to the legal effect of these conversations would merely be cumulative and would not in any event affect my ultimate findings, conclusions, or recommendations. I do not conceive it to be my function as Trial Examiner to tell any party how to try his case, and do not wish to be understood as doing so The above remarks are not in- tended critically, but as a mere statement of fact Yet it would not be amiss to note in passing that a little more specificity might well have lightened my burden 33 Compare United Marine Division of the National Maritime Union, AFL-CIO, Local No 333 (D M Picton & Co , Inc ), 131 NLRB 693, where the Board held that threats to picket constituted threats, restraint, and coercion within the meaning of Section 8(b) (4) (ii) of the Act 11 See Carolina Lumber Company, supra PAINTERS LOCAL 249, BROTHERHOOD OF PAINTERS, ETC. 191 merce, within the meaning of Section 8(b) (4) (ii) of the Act. It is further found that both these statements were made by Meyers as the Respondent's agent acting within the general scope of his authority. It is accordingly concluded that on Sep- tember 6 and 13, 1960, the Respondent threatened, coerced, and restrained John J. Reich, a person engaged in commerce.35 4. The object a. Contentions of the parties The complaint, as amended at the hearing, alleges, and the answer denies, that "Louis G. Reich and John J. Reich are co-partners, doing business as John Reich Painting and Decorating, and/or John J. Reich; or in the alternative, John J. Reich, sole proprietor, doing business as John Reich Painting and Decorating, and/or John J. Reich; either hereinafter called the Employer. Louis G. Reich is a partner and/or a managing agent of the Employer." The complaint further alleges, and the answer denies, that an object of the inducement and encouragement and the threats, coercion, and restraint found above was "to force or require Louis G. Reich, one of the Co-Partners of the Employer, to join the [Respondent]." The General Counsel argues that, as Louis G. Reich was either a partner of the Employer or its managing agent, such an object is proscribed by the Act. The Respondent contends that Louis G. Reich has never been a partner of his father and therefore the object, if it was to force Louis G. Reich to reinstate his union membership, was legal. Moreover, the Respondent points out that it is willing to permit its members to work for the Employer if it receives a written assurance that Louis G. Reich will not work with the tools of the trade, and that an object of forcing an employer to cease working with the tools of the trade is ad- mittedly legitimate. Finally, the Respondent argues that the Employer had vio- lated article XIX of its contract with the Respondent, and the Respondent's object was simply to compel compliance therewith. By way of rebuttal, the General Coun- sel takes the position that article XIX of the contract "is in derogation of law" and therefore any strike to enforce it is forbidden. b. The nature of the Employer Section 6(1) of the Uniform Partnership Act36 provides: "A partnership is an association of two or more persons to carry on as co-owners a business for profit." It has been held that there is no arbitrary test for determining the existence of a partnership and that each case must be decided according to its own particular facts.37 An agreement to share the profits and losses of a business venture is an essential element of a partnership, and ordinarily is sufficient to constitute the parties to such an agreement partners ; such joint interest may result even though one party furnishes the capital or stock and the other contributes his labor or skill.38 An- other test of a partnership is whether the agreement was of such a nature that each party became the agent of the other 39 In determining whether the Employer herein is an individual proprietorship as contended by the Respondent , or a partnership as maintained by the General Coun- sel, these precepts must be applied . Let us start our inquiry with the purported partnership agreement of 1953, Appendix A. On its face this document contains all the elements of a partnership agreement, even though it does not include a precise method for the division of profits or losses, but leaves that matter for future determination.40 Although Meyers testified that he "never thought it [the agree- ment] was authentic" and the Respondent's brief describes it as "an obviously superficial document" and "a simple scrap of paper ," the fact remains that its se In reaching this conclusion I have not considered the remark made to John J Reich by an unidentified member of the Respondent's board on the night of September 13: "Have Louis come back into the union or no men" That incident would merely be cumulative and would not in any event affect my ultimate findings, conclusions, or recommendations s^ The Uniform Partnership Act was adopted in Ohio in 1949 See R C Sections 1775 01 to 1775.42 g' Cyrus V. Cyrus, 242 Minn. 180, 183, 64 N W. 2d 538, 541. 88 Raymond S' Roberts, Inc v. White, at al., 117 Vt. 573, 97 A. 2d 245, 248 a9 Farris v. Farris Engineering Corp., et al, 7 NJ. 487, 81 A 2d 731, 739. 4° In this respect, I respectfully disagree with the finding of the court in Fraker v. Brotherhood of Painters, etc., supra, that the document did not establish a genuine partnership. 192 DECISIONS OF NATIONAL LABOR RELATIONS BOARD authenticity was not seriously challenged. There does not seem to be anything unusual or suspicuous about a father and son entering into such an arrangement, and I find that it is a genuine document. Louis G. Reich was legally an infant in 1953 when he signed the partnership agreement. It was therefore voidable as to him; he could have repudiated it within a reasonable time after reaching majority. But, on the contrary, I find that his conduct described below indicates that after attaining majority he ratified and adopted the agreement. The next issue is: Did the parties after 1953 in fact conduct their business as a partnership? In September 1958, after Louis G. Reich returned from military service (he then being more than 21 years of age), a checking account was opened in the Peoples Bank of Dayton in the name of John Reich or Louis G. Reich. Funds received from work performed by the business were deposited in this account, ad used to pay for salaries, materials, and other expenses of the business. The checks drawn on this account had printed on their face "John Reich, Painting & Decorating." John J. Reich drew from this account for his personal use from about $25 to approximately $200 per month; Louis G. Reich drew $100 every week. In January 1960 funds totaling $9,595.54, received from Phillips Petroleum Com- pany in payment of work done by the business were used to open a new savings account in the State Fidelity Savings and Loan Company, in the name of John Reich or Louis Reich. The record does not reveal whether any withdrawals were made from this account. Whenever it became necessary to consider increasing or decreasing the business' total work complement, John J. Reich and Louis G. Reich conferred. If it was decided to take on additional employees, John J. Reich so informed the Respondent. The Respondent then sent applicants to the jobsite, where they were interviewed 41 and hired by Louis G. Reich, without further consultation with his father. If it was decided to lay off employees, Louis G. Reich selected the individuals to be laid off, without consulting his father. If a workman proved to be incompetent or other- wise undesirable, Louis G. Reich discharged him on his own initiative, exercising his independent judgment in the matter. Other duties of the business were distributed as follows: John J. Reich figured jobs, computed work estimates for customers, and signed contracts with them. He also paid approximately 90 percent of the business' bills, other than payroll, and negotiated collective-bargaining agreements and grievances with the Respondent 42 Louis G. Reich assigned employees to particular jobs, supervised the work,43 made out the payroll, signed payroll checks, ordered and picked up materials, sometimes signed contracts with customers for jobs, and (until September 6, 1960) worked with the tools of the trade. Turpin testified that, while working for the Employer, he understood Louis G. Reich to be his "boss." The business was listed in the telephone director under "John J. Reich Painting and Decorating." Bids were submitted to customers, and contracts for work ex- ecuted, in the name of John J. Reich alone. Apparently checks in payment of work completed were made out to the order of John J. Reich.44 With one exception, customers do not appear to have been advised that the firm was a partnership. The single exception was Gulf Oil Corporation, whose jobs constituted approximately 62 percent in value of the total of those performed by the Employer for interstate firms during the base period. The Respondent was informed of the existence of the partnership in July 195845 No partnership returns have ever been filed under the Internal Revenue Code by Louis G. Reich and John J. Reich, doing business as John Reich Painting and Dec- 41 The interview consisted merely of inquiring whether the applicant had been sent by Meyers. '2 Pointing out that John J. Reich does the estimating, the General Counsel's brief states that "this is the extent of his control in the partnership " I find this statement unsupported by the record. "Meyers testified that he first learned that Louis G. Reich "was running the job for John Reich" when so informed by Vance and Turpin on September 8 I do not credit this testimony. In view of the discussion in July 1958 concerning Louis G. Reich's right to supervise work while attending apprentice school, I find that the Respondent knew of his supervisory functions at all times after July 1958 4' This is assumed from examination of certain voucher stubs attached to payments received 45 No signed copy of the 1960 agreement between the Respondent and the Employer is in evidence It is therefore impossible to determine whether the parties treated the Employer therein as an individual proprietorship or a partnership. PAINTERS LOCAL 249, BROTHERHOOD OF PAINTERS, ETC. 193 orating. John J. Reich and Louis G. Reich have filed individual returns under the Internal Revenue Code. Federal income tax payments have been withheld from Louis G. Reich's weekly compensation. The firm made unemployment compensa- tion payments and old age and survivorship payments under the Social Security Act to cover Louis G. Reich. In my opinion the factors indicating that Louis G. Reich was a partner of his father outweigh those militating against the existence of such a partnership. It is accordingly concluded that John J. Reich and Louis G. Reich are, and at all times since at least September 1958 have been, copartners, trading as John Reich Painting and Decorating. In view of this finding, I deem it unnecessary to pass upon the alternative contention of the General Counsel that, even if no partnership existed, Louis G. Reich was at least a managing agent of John J. Reich. c. Conclusions regarding the object Section 8(b) (4) (i) and (ii) of the Act makes it an unfair labor practice for a union or its agents to induce or encourage any individual employed by any person engaged in commerce to strike, or to threaten, coerce, or restrain any person engaged in commerce- where in either case an object thereof is: (A) forcing or requiring any employer or self-employed person to join any labor or employer organization... . It has been found above that Louis G. Reich was a partner of the Employer. It is therefore clear, and I find, that he was an "employer" within the meaning of Section 2(2) of the Act and a "self-employed person" within the meaning of Section 8(b) (4) (i) and (ii) of the Act 46 It may well be that, had the Employer furnished the Respondent with a written guarantee that either John J. Reich or Louis G. Reich would not work with the tools of the trade, the strike would have been averted or, if it were in progress, would have ended. It may also be true, as the Respondent urges, that a strike to force an employer to cease working with the tools of the trade would not run afoul of Section 8(b) (4) (i) or (ii) (A) of the Act. But that is beside the point, for here there was an additional object. There can be little doubt, and it is found, that had Louis G. Reich been willing to be reinstated as a member of the Respondent, the strike and the threats would not have occurred. Thus, one object of the conduct in question was to force or require Louis G. Reich to reinstate his membership in the Respondent-an object clearly prohibited by Section 8(b) (4) (i) and (ii) (A) of the Act. It is well settled that, to find a violation of this section of the Act, it is not necessary to find that the sole object of the conduct in question was proscribed. It is enough if the prohibited eventuality was an object of the activity.47 We come, then, to the Respondent's final defense: that the Employer had breached article XIX of its contract with the Respondent, and that the Respondent's object was merely to remedy that breach. The record shows that Louis G. Reich did not work with the tools of the trade after he lost his good standing in the Respondent on September 6.48 Moreover, nothing in article XIX obligated the Employer to furnish the written promise the Respondent sought to extract. Therefore it is doubtful if the Employer was in violation of article XIX at the time the strike or the threats occurred. But this question need not be decided. For even assuming, as the Re- spondent maintains, that the Employer had violated article XIX before the threats and the strike took place, other methods of enforcing the contract might well have been open to the Respondent. In any event , assuming article XIX's validity,49 the method of "enforcing" that contract provision adopted by the Respondent-namely, striking and threatening the Employer-was one forbidden by Section 8(b) (4) (i) and (ii) (A) of the Act. 46 Compare International Brotherhood of Teamsters , Chauffeurs, Warehousemen and Helpers of America, AFL, Local No. 911 (Lakeview Creamery Company , a copartnership), 107 NLRB 601. 47 Compare N.L R.B v. Denver Building and Construction Trades Council, et al, 341 U.S. 675, 689 ; and N L R B v. United Steelworkers of America, AFL-CIO, et at (Barry Controls, Inc ), 250 F. 2d 184, 187 (C A. 1). *s The work performed by Louis G. Reich on October 3, even if it violated article XIX, occurred long after the threats and the strike Indeed, it took place after the Respondent itself in effect abrogated the contract on September 30. 49I need not, and do not, determine whether article XIX was contrary to law, as the General Counsel contends 194 DECISIONS OF NATIONAL LABOR RELATIONS BOARD In view of the foregoing , it is concluded that , by engaging in the above-described conduct, an object thereof being to force or require Louis G. Reich to reinstate his membership in the Respondent , the Respondent violated Section 8(b) (4) (i) and (ii) (A) of the Act. Upon the basis of the above amended findings of fact, and upon the entire record in this case, I make the following: AMENDED CONCLUSIONS OF LAW 1. John J. Reich and Louis G. Reich are, and at all material times have been, copartners, doing business as John Reich Painting and Decorating. Each of them is, and at all material times has been , an employer within the meaning of Section 2(2) of the Act, and a self-employed person within the meaning of Section 8(b)(4)(i) and (ii) (A) of the Act. 2. The above-named partnership is, and at all material times has been , engaged in commerce within the meaning of Section 2(6) of the Act. 3. Painters Local Union No. 249, Brotherhood of Painters, Decorators and Paperhangers of America , AFL-CIO, is, and at all material times has been, a labor organization within the meaning of Section 2(5) of the Act. Robert S. Meyers and Irving Grefer are, and at all material times have been , its agents within the meaning of Section 8 (b) of the Act. 4. At all material times up to and including September 9, 1960, Kenneth J. Vance and Roy Turpin were employees of the above-named partnership, and therefore were individuals employed by a person engaged in commerce within the meaning of Section 8(b) (4) (i) of the Act. 5. By engaging in, and inducing and encouraging Kenneth J. Vance and Roy Turpin to engage in, a strike or refusal in the course of their employment to perform services, with an object of forcing or requiring Louis G. Reich to reinstate his membership in the Respondent , the Respondent has engaged in and is engaging in unfair labor practices within the meaning of Section 8(b) (4) (i ) (A) of the Act 6. By threatening , coercing , and restraining John J . Reich , a person engaged in commerce, with an object of forcing or requiring Lewis G. Reich to reinstate his membership in the Respondent , the Respondent has engaged in and is engaging in unfair labor practices within the meaning of Section 8(b) (4) (ii) (A) of the Act. 7. The above-described unfair labor practices tend to lead to labor disputes burdening and obstructing commerce and the free flow of commerce, and constitute unfair labor practices affecting commerce within the meaning of Section 2(6) and (7) of the Act. Upon the basis of the above amended findings of fact and amended conclusions of law, and upon the entire record in this case, I make the following: AMENDED RECOMMENDATIONS As the membership motion of September 9, 1960, itself constituted inducement and encouragement of the Employer's employees in violation of the Act, it will be recommended that the Respondent cease and desist from giving any force or effect to this motion. In addition, it will be recommended that the Respondent cease and desist, by any other means, from engaging in, or inducing or encouraging any individual employed by the Employer to engage in, a strike or refusal in the course of his employment to perform services, where an object thereof is forcing or re- quiring either partner of the Employer to join or become reinstated in the Respond- ent. It will also be recommended that the Respondent cease and desist from threatening, coercing, or restraining either partner of the Employer, where an object thereof is forcing or requiring either partner to join or become reinstated in the Respondent . In my opinion, there is no evidence herein indicating danger that the Respondent might , in the future, strike or threaten other employers or self- employed persons engaged in commerce to compel them to join the Respondent Accordingly, it will not be recommended that the Respondent cease and desist from such conduct with regard to any other employer.50 Affirmatively, it will be recommended that the Respondent post the usual notices at its office and meeting places, and furnish signed copies of such notices for posting at the Employer's office, if the Employer is willing. It will further be recommended that the Respondent mail to Vance and Turpin, at their last known addresses, copies of the notices. ea Compare Communication Workers of America, AFL-CIO, et al (Ohio Consolidated Tel. Co ) v. N.L.R.B , 362 U S. 479. PAINTERS LOCAL 249, BROTHERHOOD OF PAINTERS, ETC. 195 It is accordingly recommended that Painters Local Union No. 249, Brotherhood of Painters , Decorators and Paperhangers of America, AFL-CIO, Dayton, Ohio, its officers, representatives , agents, successors , and assigns , shall: ,1. Cease and desist from: (a) Giving any force or effect to the motion of its membership on September 9, 1960, regarding John J . Reich and Louis G. Reich, copartners , trading as John Reich Painting and Decorating. (b) By any other means engaging in, or inducing or encouraging any individual employed by the above -named partnership to engage in, a strike or refusal in the course of his employment to perform services , where an object thereof is forcing or requiring either partner to join or become reinstated in the Respondent. (c) Threatening , coercing , or restraining either partner of the above-named part- nership, where an object thereof is forcing or requiring either partner to join or become reinstated in the Respondent. 2. Take the following affirmative action , which it is found will effectuate the pur- poses of the Act: (a) Post at its office and meeting places copies of the notice attached hereto marked "Appendix B." Copies of the said notice, to be furnished by the Regional Director for the Ninth Region , shall, after being duly signed by an authorized representative of the Respondent , be posted by the Respondent immediately upon receipt thereof in conspicuous places at all locations where notices to members are customarily posted , and be maintained by it for 60 consecutive days thereafter. Reasonable steps shall be taken by the Respondent to insure that the notices are not altered, defaced , or covered by any other material. (b) Sign and mail sufficient copies of the said notice to the said Regional Director for posting , the above-named partnership being willing , at all locations where notices to its employees are customarily posted. (c) Mail to Kenneth J . Vance and Roy Turpin , at their last known addresses, copies of the said notice. (d) Notify the said Regional Director , in writing , within 20 days from the receipt of the Intermediate Report, what steps the Respondent has taken to comply herewith. It is further recommended that unless the Respondent shall, within 20 days from the receipt of this Intermediate Report , notify the said Regional Director , in writing, that it will comply with the foregoing recommendations, the National Labor Rela- tions Board issue an order requiring the Respondent to take the action aforesaid. APPENDIX A Articles of Agreement entered into this 9th day of July A.D. 1953 at Dayton, Ohio by and between JOHN REICH City of 'Dayton in the County of Montgomery and State of Ohio party of the first part and LOUIS G. REICH of Dayton in the County of Montgomery State of Ohio party of the second part, witnesseth: The said party of the first part in consideration of the promises and agreements of said party of the second part herein set forth covenants and agrees that he will devote his time, energy, and skill to the promotion and conduct of the partnership business of the parties hereto, to the best of his ability. In consideration whereof said party of the second part hereby promises and agrees that he will, likewise, devote all of the time, energy, and skill that will be able to devote, according to his circumstances and conditions and to do everything in his power to promote the partnership business of the parties hereto. It is further agreed by and between the parties hereto that each party shall receive as and for benefits from the operation and conduct of the partnership busi- ness, such division of profits and remuneration therefrom , as may be equitable, fair and just , and as may be agreed upon between the parties. And it is agreed by and between the parties hereto upon the consideration afore- said , that in the case of the failure of either party to perform the things covenanted by him that this agreement may be terminated by either party upon thirty days written notice to the other party. In Witness Whereof, the said parties have hereunto set their names to duplicates hereof the day and year first above written. Witness: (S) Louis P. FLEIG. (S) HELEN L . FLEIG. 641795-63-vol. 136-14 (S) JOHN REICH. (S) Louis REICH. 196 DECISIONS OF NATIONAL LABOR RELATIONS BOARD APPENDIX B NOTICE TO ALL OUR OFFICERS, REPRESENTATIVES , AGENTS , AND MEMBERS AND TO EMPLOYEES OF JOHN J . REICH AND Louis G. REICH, COPARTNERS, TRADING AS JOHN REICH PAINTING AND DECORATING Pursuant to the recommendations of a Trial Examiner of the National Labor Relations Board , and in order to effectuate the policies of the National Labor Rela- tions Act, as amended , you are notified that: WE WILL NOT give any force or effect to the motion of our membership on September 9, 1960 , regarding John J . Reich and Louis G. Reich , copartners, trading as John Reich Painting and Decorating. WE WILL NOT by any other means engage in , or induce or encourage anyone employed by the above -described partnership to engage in, a refusal in the course of his employment to perform any services , where an object thereof is forcing or requiring either partner to join or become reinstated in our union. WE WILL NOT threaten , coerce , or restrain either partner of the above- described partnership , where an object thereof is forcing or requiring either partner to join or become reinstated in our union. PAINTERS LOCAL UNION No. 249, BROTHERHOOD OF PAINTERS , DECORATORS AND PAPERHANGERS OF AMERICA, AFL-CIO, Labor Organization. Dated------------------- By-------------------------------------------(Representative) (Title) This notice must remain posted for 60 days from the date hereof, and must not be altered, defaced, or covered by any other material. New York Mailers' Union No. 6 , International Typographical Union, AFL-CIO [New York Herald Tribune, Inc., et al.] and The Publishers Association of New York City. Case No. 2-CC-614. March 12, 1962 DECISION' AND ORDER On May 12, 1961, Trial Examiner Ramey Donovan issued his Inter- mediate Report in the above-entitled proceeding, finding that the Respondent had engaged in certain unfair labor practices and recom- mending that it cease and desist therefrom and take affirmative action, as set forth in the Intermediate Report attached hereto. The Board has reviewed the rulings of the Trial Examiner at the hearing and finds that no prejudicial error was committed. The rul- ings are hereby affirmed.' The Board has considered the Intermediate Report, the exceptions and brief, and the entire record in this case, 1 The Trial Examiner permitted Ingram, a representative of Neo-Gravure Printing Com- pany, to Intervene during the course of the hearing . The Respondent has excepted to the ruling and in a separate motion has requested that Neo-Gravure be dismissed as an Intervenor . Ingram sought intervention only to explain an affidavit which he had given to the General Counsel on a charge brought by this Respondent against Neo-Gravure in another Region . As the Employer whose dispute with Respondent set in motion the violations alleged, we find that Neo -Gravure was entitled to intervene . The fact that its Intervention came while Ingram was testifying was not prejudicial to the Respondent. The motion to dismiss Neo-Gravure as a party is hereby denied. 136 NLRB No. 19. Copy with citationCopy as parenthetical citation