Pantlind Hotel Co.Download PDFNational Labor Relations Board - Board DecisionsMay 2, 1969175 N.L.R.B. 815 (N.L.R.B. 1969) Copy Citation PANTLIND HOTEL COMPANY Pantlind Hotel ' Comnanv and James E. Carpenter Bartenders , Hotel and Cafeteria- Employees Local 395, Hotel & Restaurant Employees and Bartenders International Union , AFL-CIO, and Hotel & Restaurant Employees and Bartenders International Union , AFL-CIO and Pantlind Hotel Company . Cases 7-CA-6417 and 7-CB-1715 May 2, 1969 DECISION AND ORDER BY MEMBERS FANNING, JENKINS, AND ZAGORIA On June 19, 1968, Trial Examiner Paul Bisgyer issued his Decision in the above-entitled proceeding, finding that the Respondents had engaged in and were engaging in certain unfair labor practices within the meaning of the National Labor Relations Act, as amended, and recommending that they cease and desist therefrom add take certain affirmative action, as set forth in the attached Trial Examiner's Decision. The Trial Examiner also found that the Respondents had not engaged in certain other unfair labor practices, and recommended that such allegations of the complaint be dismissed. Thereafter, the General Counsel filed exceptions to the Trial Examiner's Decision and a supporting brief, and the Respondents filed answering briefs. Pursuant to the provisions of Section 3(b) of the National Labor Relations Act, as amended, the National Labor Relations Board has delegated its powers in connection with this case to a three-member panel. The Board has reviewed the rulings of the Trial Examiner made at the hearing and finds that no prejudicial error was committed. The rulings are hereby affirmed. The Board has considered the Trial Examiner' s Decision , the exceptions and briefs, and the entire record in the case, and hereby adopts the findings , conclusions , and recommendations of the Trial Examiner, only to the extent consistent herewith. 1. The Trial Examiner found, inter alia, that the Respondents did not violate Section 8(a)(2) or (3) or 8(b)(2) by maintaining in existence the unlawful union-security provisions. He reasoned that, because the provisions were not enforced as written, no discriminatory conditions of employment were actually created. We do not agree, for it is settled that the continued maintenance of such unlawful provisions, whether or not enforced as written, violates Sections 8(a)(1),'(2), and (3), and 8(b)(1)(A) and (2).' It is true that here the contracting parties did not impose union -security requirements in a manner which conformed to the literal terms of the illegal provisions. Thus, no employee was compelled to join the Union, or pay dues, before 30 days following his 'See, e .g., I. Oscherwitz and Sons , 130 NLRB 1078, 1079. 815 hire had elapsed. These facts, however, do not justify the Trial Examiner's conclusion. For there is no evidence - nor is a claim asserted - that this deviation from the writing resulted from any modifying agreement between the parties. Rather, it appears that the Respondent Employer unilaterally followed a practice which did not accord with an unambiguous writing, although it was purportedly pursuant to that writing. While the Union did not protest the practice, that itself does not constitute an agreement to amend.' Accordingly, we do not reach the questions of the effect of an agreement not to enforce an unlawful clause, or whether the employees had full and unmistakable notice of the terms of a union-security agreement whose provisions were not reduced to writing.' 2. As to Carpenter's discharge for failing to sign a union membership application card, the Trial Examiner found no violation of Section 8(a)(3) or 8(b)(2) because "union membership was a lawful condition of employment" and, as Carpenter had been in the Company's employ for more than 30 days at the time of his discharge," "he was obliged to join the union " We disagree with this conclusion also. It is axiomatic that a contract which contains an unlawful union-security provision may not serve as a defense to a discharge! As the contractual clause here clearly did not comply with Section 8(a)(3) of the Act, Carpenter's discharge could not be predicated on that clause, and his termination for refusing to sign a union membership application card violated Section 8(b)(2) and 8(a)(3) of the Act. 3. Having concluded that Carpenter's discharge violated the Act, we shall order (in addition to the remedy ordered by the Trial Examiner) that the Respondent Employer and Respondent Unions jointly and severally make him whole for any loss of earnings he may have suffered by reason of the discrimination against him, by payment to him of a sum of money equal to that which he normally would have earned as wages from the date of such unlawful discharge to the date of his return to work pursuant to a valid offer of reinstatement,' with interest thereon, less his net earnings , if any, during such period. The backpay and interest shall be computed in the manner prescribed in F. W. Woolworth Company, 90 NLRB 289, and Isis Plumbing & Heating Co., 138 NLRB 716. We shall also order the Respondent Unions to write the 'Cf Port Chester Electrical Construction Corporation , 97 NLRB 354; Monolith Portland Cement Company, 94 NLRB 1358 'Cf. Pacific Iron and Metal Company , 175 NLRB No. 114; Jersey Contracting Corporation , 112 NLRB 660, 662. 'No exception was taken to the Trial Examiner's finding that Carpenter had been employed more than 30 days. We therefore adopt this finding pro forma 'Hribar Trucking, Inc , 143 NLRB 327, enforcement denied on other grounds , 337 F.2d 414 (C.A. 7). `The Trial Examiner found that the Respondent Employer offered reinstatement to Carpenter on December 7, 1967 , and that he returned to work on December 18. However, it does not appear whether or not the 175 NLRB No. 125 816 DECISIONS OF NATIONAL LABOR RELATIONS BOARD Respondent Employer, with a copy to Carpenter, that they have no objection to Carpenter's reinstatement or his employment in the future, whichever is appropriate (see fn. 6). Because Carpenter never authorized the deduction of dues or fees, we shall further order that the Respondents jointly and severally reimburse him for all dues and fees the Employer checked off and deducted from his wages on behalf of, and paid to, the Union since May 1, 1967 (the beginning of the 6-month limitation period), together with interest thereon at the rate of 6 percent per annum, to be computed in the manner set forth in Isis Plumbing, supra. We shall not, however, order dues reimbursement to other employees, as the General Counsel requests in his exceptions, because it has not been shown that any other employees joined the Union under coercion rather than of their own volition. Nor do we find merit in the General Counsel's contention that the Employer should be ordered to cease recognizing the Union until it is certified, since the validity of the Employer's grant of recognition to the Union is not in issue; it had been certified as representative of the Maintenance Department employees by the Michigan Labor Mediation Board in 1966; no other labor organization is involved herein; and, as noted above, there is no evidence of coercion of any employee other than Carpenter. However, as the Trial Examiner recommended, we shall order that the parties cease maintaining the unlawful clauses. ORDER Pursuant to Section 10(c) of the National Labor Relations Act, as amended , the National Labor Relations Board hereby orders that: A. The Respondent , Pantlind Hotel Company, Grand Rapids, Michigan , its officers, agents, successors , and assigns , shall: 1. Cease and desist from: (a) Including , maintaining , or continuing in its collective-bargaining contract with the Respondents, Bartenders , Hotel and Cafeteria Employees Local 395, Hotel & Restaurant Employees and Bartenders International Union, AFL-CIO, and Hotel & Restaurant Employees and Bartenders International Union, AFL-CIO, or with any other labor organization, any clauses which provide for preferential hiring of members of such union, or require , as a condition of employment, that new employees at the time of hiring fill out membership applications , or agree to become members therein, or which otherwise require membership in the labor organization as a condition of employment , except as authorized by Section 8(a)(3) of the Act. offer of reinstatement which Carpenter accepted was to his former or substantially equivalent position , or whether it was without prejudice to his seniority and other rights and privileges We accordingly leave these matters to the compliance stage of these proceedings , and include our normal reinstatement order herein (Mid Valley Inc . 172 NLRB No 155 ) (b) Discriminating against employees in regard to their hire or tenure of employment, or any term or condition of employment, except to the extent permitted by Section 8(a)(3) of the Act. (c) In any like or related manner interfering with, restraining , or coercing employees in the exercise of the rights guaranteed in Section 7 of the Act. 2. Take the following affirmative action which is necessary to effectuate the policies of the Act: (a) Delete from its current collective-bargaining contract with the above-named Unions the unlawful clauses mentioned in paragraph A, 1, (a) of this Order, which are included or contained in that contract. (b) Jointly and severally with the Respondent Unions reimburse James Carpenter for all dues and fees which were withheld after May 1, 1967, from his pay on behalf of Bartenders, Hotel and Cafeteria Employees Local 395, Hotel & Restaurant Employees and Bartenders International Union, AFL-CIO, and Hotel & Restaurant Employees and Bartenders International Union, AFL-CIO, in the manner set forth above in this Decision. (c) Offer immediate and full reinstatement to James Carpenter to his former or substantially equivalent position, without prejudice to his seniority and other rights and privileges. (d) Jointly and severally with the Respondent Unions make James Carpenter whole for any loss of pay he may have suffered as a result of his discharge, in the manner set forth above in this Decision. (e) Preserve and, upon request, make available to the Board or its agents, for examination and copying, all payroll records, social security payments records, timecards, personnel records and reports, and all other records necessary to analyze the amount of backpay due and the rights of employment under the terms of this Order. (f) Post at its hotel in Grand Rapids, Michigan, copies of the attached notice marked "Appendix A."' Copies of said notice, on forms provided by the Regional Director for Region 7, shall, after being duly signed by the Respondent Company's representative, be posted by the Respondent Company immediately upon receipt thereof, and be maintained by it for 60 consecutive days thereafter, in conspicuous places, including all places where notices to employees are customarily posted. Reasonable steps shall be taken by the Respondent Company to insure that said notices are not altered, defaced, or covered by any other material. (g) Post at the same places and under the same conditions as set forth in paragraph (f) above, and as soon as they are forwarded by the Regional Director, copies of the Respondent Unions' attached notice marked "Appendix B." '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 "a Decision and Order" the words "a Decree of the United States Court of Appeals Enforcing an Order " PANTLIND HOTEL COMPANY (h) Mail to the Regional Director for Region 7, signed copies of "Appendix A" for posting by the Respondent Unions at Local 395's offices. Copies of said notice, on forms provided by the Regional Director, shall, after being duly signed by a representative of the Respondent Company, be forthwith returned to the Regional Director for such posting. (i) Notify the Regional Director for Region 7, in writing, within 10 days from the date of this Decision and Order, as to what steps the Respondent Company has taken to comply herewith. B. The Respondents, Bartenders, Hotel and Cafeteria Employees Local 395, Hotel & Restaurant Employees and Bartenders International Union, AFL-CIO, and Hotel & Restaurant Employees and Bartenders International Union, AFL-CIO, Grand Rapids, Michigan, their officers, agents, and representatives, shall: 1. Cease and desist from: (a) Including, maintaining, or continuing in their collective-bargaining contract with the Pantlind Hotel Company, any clauses which provide for preferential hiring of members of the Respondent Unions, or require, as a condition of employment, that new employees at the time of hiring fill out membership applications, or agree to become members therein, or which otherwise require membership in the above labor organizations as a condition of employment, except as authorized by Section 8(a)(3) of the Act. (b) Causing or attempting to cause the Pantlind Hotel Company to discriminate against employees in regard to their hire or tenure of employment, or any term or condition of employment, except to the extent permitted by Section 8(a)(3) of the Act. (c) In any like or related manner restraining or coercing employees of the Respondent Pantlind Hotel Company in the exercise of the rights guaranteed in Section 7 of the Act. 2. Take the following affirmative action which is necessary to effectuate the policies of the Act: (a) Delete from their current collective-bargaining contract with the Pantlind Hotel Company any of the unlawful clauses mentioned in paragraph B, 1, (a) of this Order which are included or continued in that contract. (b) Jointly and severally with the Respondent Company reimburse James Carpenter for all dues and fees which were withheld from his pay by said Employer after May 1, 1967, in the manner set forth above in this Decision. (c) Notify the Respondent Company, in writing, with a copy to James Carpenter, that the Respondent Unions have no objection to his reinstatement or, if the Company has already satisfied its reinstatement obligation, that the Respondent Unions have, no objection to his employment by the Company in the future. 817 (d) Jointly and severally with the Respondent Company make James Carpenter whole for any loss of pay he may have suffered as a result of his discharge, in the manner set forth above in this Decision. (e) Post at the offices of Local 395 copies of the attached notice marked "Appendix B."8 Copies of said notice, on forms provided by the Regional Director for Region 7, shall, after being duly signed by the Respondent Unions' representatives, be posted by the Respondent Unions immediately upon receipt thereof, and be maintained by them for 60 consecutive days thereafter, in conspicuous places, including all places where notices to members are customarily posted. Reasonable steps shall be taken by the Respondent Unions to insure that said notices are not altered, defaced, or covered by any other material. (f) Post at the same places and under the same conditions as set forth in paragraph (e) above, and as soon as they are forwarded by the Regional Director, copies of the Respondent Company's attached notice marked as "Appendix A." (g) Mail to the Regional Director for Region 7 signed copies of "Appendix B" for posting by the Respondent Company at its hotel. Copies of said notice, on forms provided by the Regional Director, shall, after being duly signed by the Respondent Unions' representatives, be forthwith returned to the Regional Director for such posting. (h) Notify the Regional Director for Region 7, in writing, within 10 days from the date of this Decision and Order, as to what steps the Respondent Unions have taken to comply herewith. '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 "a Decision and Order" the words "a Decree of the United States Court of Appeals Enforcing an Order " APPENDIX A NOTICE TO ALL EMPLOYEES THIS NOTICE IS POSTED BY ORDER OF THE NATIONAL LABOR RELATIONS BOARD AN AGENCY OF THE UNITED STATES GOVERNMENT After a trial at which all sides had the chance to give evidence, the National Labor Relations Board found that we, Pantlind Hotel Company, violated the National Labor Relations Act, and ordered us to post this Notice. The National Labor Relations Act gives all employees the right to get or keep a job even if they are not members of a union, except under certain conditions. Unless these conditions are met, the requirement to join a union in order to keep a job is illegal. The specific conditions which make that requirement lawful include: (1) The requirement to join the union must be pursuant to a lawful collective-bargaining contract. 818 (2) The contract must give the employees at least 30 days' after they are hired, before they can be required to join the union. The Act also protects an employee from being fired for not joining a union, if the requirement to join does not meet the above conditions. The National Labor Relations Board found that we violated your legal rights under the above-described provisions of the National Labor Relations Act. Specifically, the Board found that we maintained a contract which did not meet the above requirements of the law; and that we discharged an employee pursuant to that illegal contract. Accordingly, we give you the following assurances: 1. AS '10 YOUR RIGHTS AS EMPLOYEES WE WILL NOT maintain a collective-bargaining contract whose provisions require you to join a union to get a job here; permit us to employ nonmembers of the union only if they are eligible for union membership; permit us to employ nonmembers of the union only if they agree at the time of hiring to become union members within 30 days; require new employees to fill out applications for membership in the union before 30 days following their hire have elapsed; or unlawfully discriminate against employees as to their hire or tenure of employment, or any term or condition of employment. WE WILL delete from our current collective-bargaining contract all provisions containing the illegal requirements mentioned above. II. AS TO THE EMPLOYEE WE FIRED DECISIONS OF NATIONAL LABOR RELATIONS BOARD APPENDIX B NOTICE TO ALL MEMBERS AND EMPLOYERS OF PANTLIND HOTEL COMPANY THIS NOTICE IS POSTED BY ORDER OF THE NATIONAL LABOR RELATIONS BOARD AN AGENCY OF THE UNITED STATES GOVERNMENT After a trial at which all sides had the chance to give evidence, the National Labor Relations Board found that we violated the National Labor Relations Act, and ordered us to post this Notice. The National Labor Relations Act gives all employees the right to get or keep a job even if they are not members of a union, except under certain conditions. Unless these conditions are met, the requirement to join a union in order to keep a job, is illegal . The specific conditions which make that requirement lawful include: (1) The requirement to join the union must be pursuant to a lawful collective-bargaining contract. (2) The contract involved must give the employees at least 30 days' after they are hired, before they can be required to join the union. The Act also protects an Employee from a union's causing , or attempting to cause his being fired for not joining the union - if the requirement to join does not meet the above conditions. The National Labor Relations Board found that we violated your legal rights under the above-described provisions of the National Labor Relations Act. Specifically, the Board found that we maintained a contract which did not meet the above requirements of the law; and that we caused the discharge of an employee pursuant to that illegal contract. Accordingly, we give you the following assurances: WE WILL, together with your union , reimburse James Carpenter for all dues and fees which we withheld after May 1, 1967, from his pay on behalf of your union. WE WILL ALSO pay him 6 percent interest on that amount. WE WILL, if we have not already done so, offer to give back James Carpenter his job , with full seniority and all other rights and privileges. WE WILL also , together with your union , make up any pay he lost, with 6 percent interest. Dated PANTLIND HOTEL COMPANY (Employer) By (Representative) (Title) This notice must remain posted for 60 consecutive days from the date of posting and must not be altered, defaced, or covered by any other material. Any questions concerning this notice may be directed to the Board's Regional Office, 500 Book Building, 1249 Washington Boulevard, Detroit, Michigan 48226, Telephone 313-226-3200. 'Employees who work in the building and construction industry have only 7 days to join 1. AS TO YOUR RIGHTS AS EMPLOYEES: WE WILL NOT maintain a collective-bargaining contract whose provisions require you to join our union to get a job here; prohibit Pantlind Hotel Company from employing non-members of our union unless they are eligible for union membership; prohibit Pantlind Hotel Company from employing non-members of our union unless they agree at the time of hiring to become union members within 30 days; require new employees to fill out applications for membership in our union before 30 days following their hire have elapsed; or unlawfully discriminate against employees as to their hire or tenure of employment, or any term or condition of employment. WE WILL delete from our current collective-bargaining contract all provisions containing the illegal provisions mentioned above. 'Employees who work in the building and construction industry have only 7 days to join PANTLIND HOTEL COMPANY 819 II. AS TO THE EMPLOYEE WE CAUSED TO BE FIRED: WE WILL, together with Pantlind Hotel Company, reimburse James Carpenter for all dues and fees which were deducted from his pay after May 1, 1967. WE WILL also pay him 6 percent interest. WE WILL notify Pantlind Hotel Company , in writing, that we have no objection to their giving him back his job. WE WILL ALSO send a copy of this letter to James Carpenter. WE WILL, together with Pantlind Hotel Company, make up any pay he lost, with 6 percent interest. BARTENDERS , HOTEL AND CAFETERIA EMPLOYEES LOCAL 395, HOTEL & RESTAURANT EMPLOYEES AND -BARTENDERS INTERNATIONAL UNION, AFL-CIO . (Labor Organization) Dated By Dated By (Representative) (Title) HOTEL & RESTAURANT EMPLOYEES AND BARTENDERS INTERNATIONAL UNION, AFL-CIO (Labor Organization) (Representative) (Title) This notice must remain posted for 60 consecutive days from the date of posting and must not be altered, defaced, or covered by any other material. Any questions concerning this notice may be directed to the Board's Regional Office, 500 Book Building, 1249 Washington Boulevard , Detroit, Michigan 48226, Telephone 313-226-3200. TRIAL EXAMINER 'S DECISION PAUL BISGYER , Trial Examiner: This proceeding, with all parties represented , was heard on April 9 and 10, 1968, in Grand Rapids , Michigan , on the consolidated amended complaint of the General Counsel issued March 1 , 1968,' and the separate amended answers of Pantlind Hotel Company , herein called the Respondent Company or Company, and Bartenders , Hotel and Cafeteria Employees Local 395 , Hotel & Restaurant Employees and Bartenders International Union , AFL-CIO, and Hotel & Restaurant Employees and Bartenders International Union , AFL-CIO , herein collectively called the Respondent Union or Union . In brief, the questions presented for decision are twofold - one, whether the Respondent Company , in violation of Section 8(a)(1), (2), and (3) of the National Labor Relations Act, as amended, and the Respondent Union, in violation of Section 8(b)(1)(A) and (2) of the Act,' maintained and enforced a collective-bargaining agreement containing unlawful union security and checkoff provisions and, two , whether, in violation of the same sections of the Act , the Company, with the Union ' s approval and ratification , discharged employee James E . Carpenter because of his refusal to join the Union , authorize the Union to represent him in collective bargaining and authorize the Company to deduct his membership dues and assessments for remittance to the Union . At the conclusion of the hearing, the parties were afforded an opportunity to argue their positions orally . Thereafter , the General Counsel and the Respondents filed briefs. Upon the entire record , and from my observation of the demeanor of the witnesses , and with careful consideration being given to the arguments advanced by the parties, I make the following: FINDINGS AND CONCLUSIONS I THE BUSINESS OF THE RESPONDENT COMPANY The Company , a Michigan corporation , operates a hotel and restaurants and taverns therein located, in Grand Rapids , Michigan . Over 70 percent of the lodgers served by the Company stay at the hotel for less than a month . During 1967 , a representative period, the Company in the course and conduct of its business received gross revenues in excess of $500 ,000. During that period , it purchased goods and materials in excess of $50,000 from sources outside the State. 'The charge in Case 7-CA-6417 was filed on November 1, 1967, and a copy was served on the Respondent Company by registered mail the next day An amended charge in that case was filed the following December 6 and a copy was similarly served on the Company on or about December 8. In Case 7-CB-1715, the charge was filed on February 27, 1968, and a copy was served on the Respondent Union by registered mail the same day 'Insofar as relevant, Sec. 8(a) makes it an unfair labor practice for an employer (1) to interfere with, restrain, or coerce employees in the exercise of the rights guaranteed in section 7, (2) to dominate or interfere with the formation or administration of any labor organization or contribute financial or other support to it . , (3) by discrimination in regard to hire or tenure of employment or any term or condition of employment to encourage or discourage membership in any labor organization Provided, That nothing in this Act, or any other statute of the United States, shall preclude an employer from making an agreement with a labor organization (not established, maintained, or assisted by any action defined in section 8(a) of this Act as an unfair labor practice) to require as a condition of employment membership therein on or after the thirtieth day following the beginning of such employment or the effective date of such agreement, whichever is the later, (i) if such labor organization is the representative of the employees as provided in section 9(a), in the appropriate collective-bargaining unit covered by such agreement when made, . . Provided further, That no employer shall justify any discrimination against an employee for nonmembership in a labor organization (A) if he has reasonable grounds for believing that such membership was not available to the employee on the same terms and conditions generally applicable to other members or (B) if he has reasonable grounds for believing that membership was denied or terminated for reasons other than the failure of the employee to tender the periodic dues and the initiation fees uniformly required as a condition of acquiring or retaining membership Correspondingly, Sec. 8(b), in relevant part, makes it an unfair labor practice for a labor organization or its agents - (1) to restrain or coerce (A) employees in the exercise of the rights guaranteed in section 7 .. ; (2) to cause or attempt to cause an employer to discriminate against an employee in violation of subsection (a)(3) or to discriminate against an employee with respect to whom membership in such organization has been denied or terminated on some ground other than his failure to tender periodic dues and the initiation fees uniformly required as a condition of acquiring or retaining membership ... Sec 7 provides, among other things, that Employees shall have the right to join, or assist labor organizations, to bargain collectively through representatives of their own choosing, . . and . . to refrain from any or all such activities except to the extent that such right may be affected by an agreement requiring membership in a labor organization as a condition of employment as authorized in section 8(a)(3). 820 DECISIONS OF NATIONAL LABOR RELATIONS BOARD I find, in agreement with the parties, that the Company is engaged in commerce within the meaning of Section `-2(6) and (7) of the Act. I further find that effectuation of the policies of the Act warrants the assertion of jurisdiction by the Board. II. THE LABOR ORGANIZATIONS INVOLVED It is conceded that the Respondent Local 395 and its International are labor organizations within the meaning of Section 2(5) of the Act. III. THE ALLEGED UNFAIR LABOR PRACTICES A. The Evidence 1. Contractual relations; union-security and checkoff provisions and practice thereunder Since at least 1947 the Union has been the exclusive representative of certain of the Company's hotel, restaurant and tavern employees pursuant to successive collective-bargaining agreements. The last contract was executed on June 1, 1965, for a term expiring June 1, 1968, with provision for automatic renewal and reopening, and contains the following union-security and checkoff provisions whose legality is challenged in this proceeding: ARTICLE I RECOGNITION AND SCOPE OF COVERAGE Section 2 . The Company agrees that any and all employees , within the classifications of work set forth in said Wage Schedule shall be members in good standing in the Union as a condition of continued employment. Only members of the Union or men (the term "men" wherever used in this agreement includes women) eligible for membership shall be hired . The Company shall call the Union for additional men when additional employees are required provided , however, that if the Union does not have men suitable to the Company available, a non-member may be hired, provided that said non-member shall at the time of his employment agree to become a member in good standing in said Union within thirty (30) days after being employed. Any person newly hired shall be so employed on a thirty-day trial basis , during which time he may be discharged by the Company , without further recourse. At the time of hiring, the Company shall have all new employees fill out an application for membership in Local 395 and send all such cards to the office of the Union Local 395 with the next billing. * * * * * ARTICLE II Section 1. The Employer agrees to deduct initiation fees from wages of new employees (when eligible for membership), and dues from the wages of the employees who are members of the Union , by the 25th day of each month , and forward to the Union Office a check to cover the total amount so deducted , together with the Union applications filled out at the time of hiring . The Company shall also add the names of all re-hires and employees returning from leaves of absence to the check-off list. Section 2. The Union agrees to furnish the Employer with check-off authorizations to conform with the State Law. The union-security provisions are substantially the same as those contained in prior contracts since 1947, while the checkoff clauses were first included in the 1959 contract in substantially the same form.' On July 11, 1966, the Union, having won a representation election conducted by the Michigan Labor Mediation Board, was certified as the bargaining representative of the Company's Maintenance Department employees, who were previously excluded from the Respondent's contract. Thereafter, following negotiations, the parties on September 19, 1966, executed an addendum to contract whereby these maintenance employees came under, and were subject to, the terms of that agreement. The addendum, which was ratified by these employees, also fixed their wage scales and future wage increases. Whatever the conditions of employment the union security and checkoff clauses were originally designed to impose, the uncontradicted evidence establishes that, in practice, they were not literally followed, as the amended complaint alleges they were. Thus, since 1967,° at least, the Company has not called upon the Union to supply its personnel needs, which were great, indeed, because of unusual labor turnover. It appears that during this period the Company hired some 1,200 employees to fill jobs in the bargaining unit normally consisting of about 260 or 270 employees. Of the 1,200 new hires, the Union referred only about 12 applicants to the Company for interviews after first ascertaining from the Company that there were openings. Approximately six of these applicants were hired. Significantly, there is absolutely no evidence that preference in employment was accorded union members or those "eligible for memberships' or that the Company even considered Union, or eligibility for, membership as a qualification for being hired. Nor is there the slightest suggestion in the record that the Union ever protested to the Company that it was not honoring its written contractual commitments. Except for the Charging Party Carpenter, whose case will be separately treated below, the record is similarly barren of evidence that any employee was required, as a condition of securing or retaining employment, to join or agree to join the Union before the expiration of 30 days following his hiring. While several department heads, who hired their own help, at times furnished new employees with union membership application cards containing authorization for the checkoff of dues and assessments from their pay' when employment forms were filled out, no testimony or other evidence was produced that any employee was forced, coerced or otherwise required to sign these cards within the 30-day statutory grace period. On the contrary, according to the only witness to such distribution, John DeVries, the Company's chief engineer, when he handed a union card to a new employee, he usually informed the employee that under the terms of the 'It is noted that it was not until July 30, 1959, that the Board, in the exercise of its discretion , decided to assert jurisdiction over hotels under specified conditions Floridan Hotel of Tampa, Inc., 124 NLRB 261. The amended complaint alleges violations only during the period commencing May 1, 1967. This is in accordance with Sec . 10(b) of the Act which provides that "no complaint shall issue based upon any unfair labor practice occurring more than 6 months prior to the filing of the charge with the Board and the service of a copy thereof upon the person against whom such charge is made . . 'No explanation , testimonial or documentary, was furnished by any party as to the meaning of the phrase "eligible for membership." 'Apparently, because of the checkoff feature, the union cards are filled PANTLIND HOTEL COMPANY 821 bargaining agreement he was obliged to become a union member after 30 days of employment and was subject to discharge if he did not .' Although there is evidence that union cards of several employees have the same date as their hire, it is quite clear that the initial dues and initiation fees of new employees were never deducted and remitted to the Union until more than 30 days had elapsed since their employment . In fact, it appears that the Union , on occasions , protested the Company's long delays beyond the 30 days in making these deductions for the new employees . Moreover , except with respect to the Charging Party Carpenter, there is no substantiation in the record for the allegation of the complaint that deductions for some employees were made without authorization. Conversely, no- evidence was presented that any employee was denied the right to pay his dues or initiation fees in any other manner. 2. Carpenter' s employment history ; his termination Carpenter was first employed by the Company on February 22, 1966, as'a cleanup man in the maintenance department under the supervision of Chief Engineer DeVries. He left his job 6 days later , returning on June 1, 1966. He remained in -the Company 's employ until August 1, 1967, but resumed employment on August 11. He again left his job the - following October 2. Thereafter, on November 3, Carpenter was reinstated , being subsequently terminated under circumstances related below and alleged to constitute unlawful discrimination. As shown above , the maintenance department employees came under the Respondents ' then current collective-bargaining agreement on September 19, 1966, when these employees ratified the addendum to contract. Thereafter, the Company , in accordance with the practice prevailing with respect to the previously covered employees , began deducting the dues ' of the maintenance employees whose names appeared on the monthly checkoff list' the Union systematically furnished the Company. Although it is conceded that Carpenter never signed a union membership application card with its checkoff authorization, his dues were nevertheless regularly deducted from his wages .' The Respondents profess a complete unawareness that Carpenter had not executed a union card and at no time did Carpenter call the Company's or the Union's attention to the fact that the deductions were unauthorized or that he did not belong to the Union . Indeed , when the deduction first appeared on his October 1966, paycheck stub , Carpenter merely asked Union Steward Wieringa to explain it. Wieringa thereupon advised him that the dues were automatically checked off pursuant to the contract and Carpenter "dropped" the matter . When the dues deduction next appeared on his paycheck stub, he questioned Chief Engineer DeVries about it. At DeVries' instance, Building Superintendept Hoort explained to out in two parts, one for the Union 's records and the other for the Company's. After completing the cards , employees customarily submit them to the Company, union stewards or directly to the Union itself. The Union has no formalized procedures for initiating employees into membership . Actually, an employee , becomes a member upon the submission of a signed membershipiapplication card and the receipt of the requisite dues and fees. 'It is noted that the union security, section of the bargaining agreement provides for a 30-day trial period- for newly hired employees during which time the Company has the absolute -right to discharge . This manifestly coincides with the 30-day grace period for joining the Union. Carpenter that this was a "union job" and under the contract, monthly dues were automatically checked off. On neither these nor subsequent occasions did Carpenter complain to the Union or management that the deductions were made without written authorization, or request that they be discontinued, or offer to pay his dues in another way. In fact, although he had spoken to Business Representative Smith at the union office five or six times, only once, and that was in June 1967," did Carpenter mention that the deduction was improper, stating as the reason his belief that the contract was not being enforced in that his hourly wage rate had not been raised on June 1 from $1.25 to $1.40, as the contract provided." On October 2, Carpenter took leave from his job, telling his supervisor, DeVries, that he would return in a few days. Not hearing from Carpenter for 2 weeks, DeVries removed Carpenter's timecard and he was taken off the payroll . In the meantime , on October 5, Carpenter visited the union office and informed Smith that he would not return to his job unless he received the contract rate of $1.40 an hour. With Smith's assistance, Carpenter prepared and filed a grievance against the Company, claiming that under the contract he was entitled to $1.40 an hour retroactive to June 1. Thereafter, Smith succeeded in settling this grievance with the Company's president, Jack Roberts, but could not reach Carpenter at the telephone number or address Carpenter had given in order to apprise him of the settlement and to arrange for his return to work. On November 3, a Friday, Carpenter appeared at the union office, and was informed by Smith of his inability to locate him and that, had Carpenter kept the Union posted of his latest address, he could have been back at work 2 or 3 weeks ago at the $1.40 rate. Smith then communicated with DeVries and arranged for Carpenter's reinstatement. Later in the afternoon Carpenter arrived at the hotel and spoke to DeVries about returning to work. DeVries consented and prepared the employment form the Company customarily used both for reinstatements and new hires. Although DeVries was unable to recall in his testimony whether Carpenter had informed him on this or a prior occasion that he had initiated an investigation by the Board's Washington Office which involved the Union, ': he did admonish Carpenter on this afternoon that he would have to stop "bickering" or causing "trouble" on the job. At Carpenter's request, DeVries agreed that he could begin working on the following Tuesday, November 7. Because of his latest absence, Carpenter lost his seniority but was reinstated at a higher wage rate than that customarily paid new employees. At noontime on November 7, Carpenter reported for work. After having lunch in the employees' dining room, to which he was entitled as an employee, and while he was about to proceed with his assignment, DeVries handed 'The Union waived the payment of initiation fees. 'There is no evidence that the other employees on the checkoff list had not executed written authorizations. "Unless otherwise indicated, all dates hereinafter mentioned refer to 1967. "It appears that subsequent to this conversation Carpenter's wage rate was increased to $1.31. "DeVries testified that he was unaware that Carpenter had filed an unfair labor practice charge against the Company. Such a charge, on which Case 7-CA-6417 herein is based , was filed on November 1, 1967, alleging that the Company, in violation of Section 8(aXI) and (3) of the Act, had unlawfully deducted union dues and remitted them to the Union without authorization. 822 DECISIONS OF NATIONAL LABOR RELATIONS BOARD Carpenter a union card with the statement that he had "better sign this before - [he started] to work and stop anymore of this bickering."" DeVries had secured this card from Union Steward Wieringa, advising him that he wanted it for Carpenter because he was creating a "lot of problems with this union matter."" According to DeVries, he surmised from previous remarks made by Carpenter that he did not belong to the Union and that he therefore thought that it was necessary for Carpenter to sign a union card if a peacefully operated department were to be maintained. Carpenter, however, declined to sign the card for the asserted reasons, among others, that it would "spoil his whole case" against the Union and that the contract was not being enforced with respect to wage rates." On this note, Carpenter's employment with the Company ceased. A few days later, in the course of a conversation with DeVries , Business Representative Smith first learned of Carpenter' s dismissal because of his refusal to sign a union card. Smith concurred in the correctness of this action in view of the fact that Carpenter had been in the Company's employ for at least a year and the Respondents' contract required union membership after 30 days of employment. On December 7, the Company's President Roberts, in the presence of the attorney for the General Counsel, telephoned Carpenter and requested Carpenter to return to work at $1.40 an hour. This offer was confirmed by letter mailed the same day. On December 18, Carpenter resumed employment. B. Concluding Findings 1. With respect to the union-security provisions and their enforcement It is the General Counsel's position that the Respondents maintained in full force and effect contractual union -security provisions , quoted above, which exceeded permissible statutory limits and that the Company thereby violated Section 8(a)(3), (2), and (1) of the Act and the Union violated Section 8 (b)(2) and (1)(A). In addition , the General Counsel argues that the Respondents further violated these sections of the Act by enforcing the illegal union -security provisions and, in particular , by requiring new employees , as part of the hiring process , to join the Union and sign membership application cards which also contained an authorization to check off union dues and fees for remittance to the Union. The Respondents do not seriously dispute the illegality of various aspects of the union-security provisions , if taken literally," although the Company urges that these clauses are sufficiently ambiguous to warrant resort to their actual application to ascertain their intended meaning which , it urges , would establish their validity. In any event , the Respondents contend that no violation could be found because the union -security provisions were enforced "The evidence shows that Carpenter's dues were paid up through October Under Union riles he was automatically suspended in January 1968, for being 60 days in arrears "DeVnes testified that he did not recall whether Wieringa told him to have Carpenter sign the card . Wiennga was not called as a witness. "The November 3 and 7 episodes are based on DeVnes ' candid and persuasive testimony which appeared to me to be more accurate than Carpenter 's. The latter's testimony , although at times confusing, does not, however , differ in significant respects from DeVries ' version , except that Carpenter described his reinstatement and termination as occurring on November 3. in a lawful manner to require union membership as a condition of employment 30 days after the individual was hired. While there can be little doubt that the union-security provisions in question are not models of clarity or draftsmanship, they do impose, on their face, conditions of employment not sanctioned by the Act. Specifically, the contract provides that only members of the Union and those "eligible for membership" shall be hired; that new employees must be recruited through the Union except that "a non-member" may be hired by the Company if the Union does not have suitable employees available; that, in the latter event, the "non-member shall at the time of his employment agree to become a member in good standing in said Union within thirty (30) days after being employed";" and that the Company at the time of hiring shall have all new employees fill out an application for membership in the Union." The Board has held that it is a violation of Section 8(a)(1) for an employer, and of 8(b)(1)(A) for a labor organization, to retain in their collective-bargaining agreement an unlawful union -security clause , even though they do not intend to, nor did in fact, enforce it." The reason for this , as the Board has observed,20 is that "an unlawful provision serves no less as a restraint on employees' right to refrain from joining an organization than if the parties intend to enforce it where, as here, there is no evidence that the employees were informed that the . [unlawful union-security] clause, which theretofore had been in effect, would no longer be operative." Applying this principle to the instant case, I find that, by retaining in their contract the patently unlawful union-security provisions, the Respondents violated Section 8(a)(1) and 8(b)(1)(A) of the Act, respectively. Since the violation is based on the retention of the invalid clauses in the contract within the 6-month statutory limitation period, as distinguished from their execution, the Union's contention that the unfair labor practice findings are barred by Section 10(b) of the Act is clearly without merit. Notwithstanding the presence of the unlawful union-security provisions in the contract, I find, in disagreement with the General Counsel, that they were not actually enforced. As previously noted, there is absolutely no evidence that the Company gave any preference in employment to union members or denied any applicant a "As indicated previously , the union-security provisions had their genesis in contracts long antedating 1959, when the Board first decided to assert jurisdiction over hotels. The Respondents assert that these provisions were and are valid under Michigan Law. M .C.L. Section 423 14 It is obviously unnecessary to pass upon the correctness of this assertion since their validity depends upon the requirements of the Act. "Insofar as the clause requires membership "within thirty (30) days after being employed," the Board has held that that is a sufficient compliance with the time requirement in the proviso to Sec 8 (a)(3) of the Act. New York State Electric & Gas Corporation, 135 NLRB 357, 361, State Packing Company, 137 NLRB 1420. "I find art . II, sec 1, of the Respondents' contract which obligates the Company to deduct dues and initiation fees from the wages of union members "by the 25th day of each month " for remittance to the Union, as being nothing more than a procedural arrangement for handling deductions and not a provision designed to deprive new employees of the right to refrain from paying union dues and initiation fees during the first 30 days of their employment . I therefore conclude, contrary to the General Counsel 's contention , that this clause does not prescribe a greater degree of union security than that sanctioned by the Act. "See, for example , Port Chester Electrical Construction Corporation, 97 NLRB 354, 355, and cases there cited. "Ibid. PANTLIND HOTEL COMPANY 823 job because he was not a member of the Union or eligible for membership . Moreover , not only does it appear that the Union did not operate a conventional type hiring hall, but also it is undisputed that the Company obtained virtually all of its, peisonnei< during the period here involved from sources other than the Union . In addition, the record is sorely wanting in evidence that any employee was required or otherwise compelled at the time of hiring or before 30 days had elapsed to join or agree to join the Union or complete a membership application card as a condition of acquiring or retaining employment . Quite the contrary, the only testimony produced on this subject shows that , when the Company's Chief Engineer DeVries hired an individual and handed him a union card , DeVries advised him that, under the terms of the current agreement , the employees had to join the Union after 30 days or risk discharge . There is also testimony given by Company President Roberts that he usually instructed the "newer" supervisors to , pass out cards to the new employees and inform them they were obliged to become members 30 days after employment . Significantly , no dues or initiation fees were deducted from the wages of new employees during , the 30-day period following the inception of their employment ; indeed , initial deductions were frequently made much later to the Union's dissatisfaction . Furthermore, there is no evidence that the deductions were not authorizeed31 or that any employee preferred to pay, or was prevented from paying, his membership dues or initiation fees in any other manner. In these circumstances , I can only conclude that the General Counsel has not substantiated the allegations of the amended complaint that the Respondents have enforced during the critical period here involved the illegal union-security provisions and, in particular , by requiring new employees , "as a part of the hiring process and as a condition of hire," to fill out applications for membership. 22 Instead , I find that the evidence establishes that, in practice , the Respondents applied the union-security provisions in conformity with statutory restrictions to require newly hired employees to become union members and to pay the requisite initiation fees and monthly dues only after they had been in-the Company's employ for 30 days, which, under the contract, coincided with their probationary period . The fact that some supervisors at the time of hiring advised.-new employees of this obligation and handed them union membership application cards which also indicated the availability of a checkoff as a method for paying their initiation fees and monthly dues is not, in my opinion , a sufficient basis for making an unfair labor practice finding , as the General Counsel would have me do.23 In sum, I conclude that, despite the Respondents' failure to delete the unlawful union-security clauses from the contract , whether, through neglect or inadvertence, no discriminatory conditions of employment violative of "As indicated previously , the membership application card contained a checkoff authorization. "Western Building Maintenance Co., 162 NLRB No 73; Campbell Soup Company, 152 NLRB 1645, enfd . 378 F.2d 259 (C.A. 9), cert. denied 389 U.S. 900; and other cases cited by the General Counsel to support findings of violations under Section 8(axl), (2), and (3) and 8(bx1XA) and (2) of the Act are factually distinguishable . There, unlike here, newly hired employees were required , as a condition of employment , to join the contracting union immediately by signing union membership and checkoff authorization cards , and to pay initiation fees and dues during the first 30 days of employment through the checkoff, thereby denying these employees the 30-day statutory grace period to perform these obligations "Cf. Keller Plastics Eastern , Inc., 157 NLRB 583, 585, 587. Section 8(a)(3) and 8(b)(2) were actually created.2° For the same reason , I find that the Company did not assist or contribute financial or other support to the Union, whose majority status is not otherwise questioned, within the meaning of Section 8 (a)(2) of the Act. 2. With respect to Carpenter's discharge Admittedly, Carpenter was discharged by Chief Engineer DeVries on or about November 7, 1967, following Carpenter's reinstatement after a month's absence, because he refused to sign a union membership application card. The General Counsel contends that the discharge was effected pursuant to the illegal union-security clauses in the contract and that therefore it was violative of Sections 8(a)(3) and (1) and 8(b)(2) and (1)(A) of the Act. The Respondents deny that the discharge was discriminatorily motivated.25 As found above, the contractual union-security provisions have been applied in a lawful manner to require union membership at the end of 30 days of employment. Although Carpenter had never executed a union card since the time the maintenance employees were added to the contract's coverage in September 1966, following the Union's victory at the election conducted by the Michigan Labor Mediation Board, he was always treated as a union member with his monthly dues being regularly deducted until October 1967, when he absented himself from work. During this period, the Respondents appear to have been totally unaware that Carpenter had not executed a union card, nor did Carpenter bring this fact to their attention. Moreover, at no time did Carpenter protest to the Company or the Union that the deduction of dues from his wages was unauthorized or that he was not obligated to pay dues. Similarly, he never demanded that the deductions be stopped or that the checked-off moneys be returned to him. Indeed, the only time he expressed the view that the deductions were improper was in June 1967 when he complained to Union Business Representative Smith that the contract was not being enforced in that he was not receiving the increase in wage rates therein set forth. Actually, the dues deductions served to keep Carpenter in compliance with the membership requirements of the contract, as lawfully interpreted and applied by the Respondents.2' Viewing the circumstances of Carpenter's dismissal in light of the foregoing facts and the history of his employment with the Company, I am not convinced that the Company's conditioning of Carpenter's continued employment upon his signing a union membership application card on November 7 deprived him of the statutory right to refrain from joining the Union. I find that Carpenter was not a new employee at that time entitled to a 30-day grace period before becoming a union member in accordance with the contractual union-shop requirement, as legally applied by the Respondents. r' "Port Chester Electrical Construction Corporation, supra, 355. "The Union also insists that it neither caused nor was otherwise responsible for the Company 's action and that therefore it may not be found in violation of Sec . 8(b)(2) or (1)(A) of the Act In view of my determination hereinafter made that the discharge was lawful , I do not reach this contention. "The fact that deduction of dues from Carpenter' s wages without written authorization may subject the Respondents to liability under Section 302 of the Act, such conduct is not per se an unfair labor practice . Salant & Salant, Inc, 88 NLRB 816, 817-819 "Cf. State Packing Company, 137 NLRB 1420, 1421-23. 824 DECISIONS OF NATIONAL LABOR RELATIONS BOARD Thus, as discussed earlier, Carpenter had been in the Company's employ for well over a year before he took leave from his job on October 2, 1967, for a few days, remaining away, however, until November 3 without notification to the Company. During this interval of absence and on October 5, Carpenter informed Union Business Representative Smith that he was withholding his services until the Company raised his hourly wage rate to $1.40 an hour as provided in the contract. With Smith's assistance, Carpenter filed a grievance against the Company, which Smith thereafter successfully adjusted. Because of Carpenter's failure to keep Smith posted of his latest address, he was not reinstated until November 3, when Smith arranged with the Company for Carpenter's return. In short, I find that Carpenter had a continuing employment relationship with the Company, even though it was temporarily interrupted by his absence. As Carpenter had been in the Company's employ for more than 30 days on November 7, I find that he was obligated to join the Union by signing the union membership application card the Company had tendered him on that date. Clearly, there is no reason to believe that the "membership" thus contemplated as a condition of employment was more than that "whittled down to its financial core,"" that is, membership limited to the payment of initiation fees and monthly dues. Furthermore, the presence of the checkoff authorization in the union card Carpenter was requested to sign did no more than make available to him the checkoff as a method of paying his monthly dues, if he so desired," and did not nullify his obligation to join the Union.J° Not only did Carpenter not offer to meet in any other way his lawful financial obligations to the Union, as the employees' duly designated bargaining representative, but declined to sign the membership application card for the asserted reasons that the contract was not being enforced with respect to wage rates and that it would prejudice his case, although it is not clear whether the case was against the Company, the Union or both. Accordingly, it is concluded that, as union membership was a lawful condition of employment, the General Counsel failed to sustain the allegations of the amended complaint that the Company discriminatorily discharged Carpenter in violation of Section 8(a)(3) and (1) of the Act and that the Union caused the discharge in violation of Section 8(b)(2) and (1)(A) of the Act. I therefore recommend dismissal of amended complaint in this respect. IV. THE EFFECT OF THE UNFAIR LABOR PRACTICES UPON COMMERCE The activities of the Respondent, set forth in section III, above , occurring in connection with the Respondent Company's operations described in section I, above, have a close , intimate , and substantial relation to trade , traffic, and commerce among the several States and tend to lead to labor disputes burdening and obstructing commerce and its free flow. V. THE REMEDY Pursuant to Section 10(c) of the Act, as amended, I recommend that the Respondents be ordered to cease and desist from engaging in the unfair labor practices found and in like and related conduct and take certain affirmative action designed to effectuate the policies of the Act. I have found that the Respondents have unlawfully retained in their collective-bargaining contract union-security provisions which exceed permissible statutory limits although, in practice, they have not been enforced in a prohibited manner . As the mere retention of these unlawful provisions tend to inhibit employees in the exercise of their guaranteed rights under the Act, I recommend that the Respondents be ordered to delete these clauses from their contract, if they have not as yet been removed, and to refrain from including them or other prohibited union-security clauses in future contracts between the parties. The posting of appropriate notices is also recommended. Upon the basis of the foregoing findings of fact and upon the entire record in the case, I make the following: CONCLUSIONS OF LAW 1. The Respondent Company is engaged in commerce within the meaning of Section 2(6) and (7) of the Act. 2. The Respondent Union is a labor organization within the meaning of Section 2(5) of the Act. 3. By maintaining in their collective-bargaining agreement illegal union-security clauses which provide for preferential hiring of union members and the employment only of nonmembers who are eligible for union membership and who agree at the time of hiring to become members in good standing within 30 days, and which commit the Company to require at the time of hiring that the new employees fill out membership application cards, the Respondent Company interfered with, restrained and coerced employees in the exercise of their statutory rights within the meaning of Section 8(a)(1) of the Act, and the Respondent Union restrained and coerced employees within the meaning of Section 8(b)(1)(A) of the Act. 4. The aforesaid unfair labor practices affect commerce within the meaning of Section 2(6) and (7) of the Act. 5. The Respondents did not commit the other unfair labor practices alleged in the amended complaint as violations of Section 8(a)(1), (2), and (3) and 8(b)(1)(A) and (2) of the Act. [Recommended Order omitted from publication]. "N L R B v General Motors Corporation. 373 U S 734, 742 " "Keller Plastics Eastern . Inc . supra. 587 Nor was Carpenter's unwillingness to sign the Union card justified because it contained a provision authorizing the Union to represent him as his collective-bargaining agent , as the amended complaint suggests he was It is perfectly clear that the Union already enjoyed that status by reason of its designation in an election conducted by the Michigan Labor Mediation Board and its subsequent contract with the Company. Copy with citationCopy as parenthetical citation