Petco, Inc.Download PDFNational Labor Relations Board - Board DecisionsSep 29, 1978238 N.L.R.B. 1297 (N.L.R.B. 1978) Copy Citation ANADITE INDULSTRIAL SUPPILY C(O. Petco, Inc., Interstate and Maynard Halhorson. Case 27-CA-5319 September 29, 1978 DECISION AND ORDER BY CHAIRMAN FANNING AND MEMBERS JENKINS ANt) MURPHIY On June 21. 1978. Administrative Law Judge Earl- dean V.S. Robbins issued the attached Decision in this proceeding. Thereafter, Respondent filed excep- tions and a supporting brief, and counsel for the Gen- eral Counsel filed cross-exceptions and a supporting brief. Pursuant to the provisions of Section 3(b) of the National Labor Relations Act, as amended, the Na- tional Labor Relations Board has delegated its au- thority in this proceeding to a three-member panel. The Board has considered the record and the at- tached Decision in light of the exceptions and briefs and has decided to affirm the rulings, findings.' and conclusions 2 of the Administrative Law Judge and to adopt her recommended Order. ORDER Pursuant to Section 10(c) of the National Labor Relations Act, as amended, the National Labor Rela- tions Board adopts as its Order the recommended Or- der of the Administrative Law Judge and hereby or- ders that the Respondent, Petco, Inc.. Interstate. Commerce City, Colorado. its officers, agents, succes- sors, and assigns, shall take the action set forth in the said recommended Order. 1 Respondent and counsel for the General Counsel have each excepted to certain credibility findings made by the Administrative Las Judge. It is the Board's established policy not to overrule an Administrative l.as Judge's resolutions with respect to credibility unless the clear preponderance of all ot the relevant evidence convinces us that the resolutions are incorrect Stan dard Dr Wall Products, Inc, 91 Nl RB 544 119501. enlid 188 F 2d 362 (. A 3. 1951). We have carefully examined the record and find no basis for revers- ing her findings In sec. 111i of her Decision, the Administrative l.aw Judge committed an obvious inadvertent error in failing to include a finding that Respondent violated Sec 8(aX I I of the Act bs telling its employees that it was withhold- ing a wage increase because of the ongoing union organizational activity) inasmuch as a finding of that violation was included in the ('onclusions of I aw. We hereby correct that error DECISION SIATEMENT OF THE (CASF EARI.IDAN V. S.R BBINS., Administrative lIaw Judge: This matter was heard before me in Denver. Colorado. on March 30 and 31, 1978. The charge was filed by Maynard Halvorson, an individual, and served on Petco. Inc.. Inter- state. herein called Respondent. on April 11. 1977. The complaint. which issued on May 31. 1977, alleges that Re- spondent violated Section 8(a)( 1) and 13) of the Act. The principal issue herein is whether Respondent dis- patched Haivorson to less profitable job assignments be- cause ot' his union activities. LUpon the entire record.' including min observation of thc witnesses, and after due consideration of' the briefs filed b3 the General Counsel and the Respondent. I make the tol- lowing: FI i)INIGS OF I (CT 1. JLRISI)l lION Respondent. a \Wyoming corporation with its principal office and place of business in Commerce Cits. Colorado, is engaged in the interstate transportation of petroleum prod- ucts. Respondent, in the course and conduct ofl its business operations, annually receives gross revenues in excess of $500.000, of which in excess of $50,000 is received for its services in transporting goods and materials across state lines. The complaint alleges. Respondent admits. and I find that Respondent is an employer engaged in commerce and in a business affecting commerce within the meaning of Section 2(2). (6), and (7) of the Act. 11. I ABOR O(R(GANZATI)ON International Brotherhood of Teamsters. ('haufieurs. Warehousemen and Helpers of America, ILocal 961. herein called the Union, is a labor organization within the mean- ing of Section 2(5) of the Act. 111. il1 A I 1(1it) I'NFAIR I A(BOR PRA( l( FS A. .acts Respondent is a common carrier of petroleumn products, including asphalt, propane and light oils, gas, and diesel fuel. It operates in Colorado, Wyoming, and Utah. Respon- dent's principal customers are major oil companies. Its business is seasonal with a substantial drop in volume dur- ing the winter months. The peak season is in the summer with the heaviest volume in August. Around January and February, Respondent normally employs about 40 drivers; however. they do not all work full time. During the peak summer months, the driver com- plement increases to about 60. Drivers are paid on a mile- age basis plus a flat rate to load and unload. At the time material herein, the fiat rate ,was $7 tor gas, diesel. and road oil and $10 tfo propane. [)rivers receive an increase in the base mileage rate of a half cent a mile after 2 sears and an additional hal' cent after 4 years.2 Respondent's employees are not represented bs an,, union. However. a number or its driver employees are Teamsters members or former Teamsters members. In Upon the joint morion of General Counsel and Respondent, the record herein is reopened tor the limited purpose of receising intor evidence Joint txh I. a seniority list of Respondent's driver emplosees 2 During the first 6 months of 1977. the base mileage rate 'aas 12 cents per mile for plains driving and 13 cents per mile lor mountaln driring Alter 2 Nears, the rate increased to 12 5 cents and I 5 cents, respectl.els. and alter 4 sears Io 1t cents nd 14 cents. 238 NLRB No. 182 1297 DE CISIONS OF NATIONAI LABOR RELATIONS BOARD January 1977.1 the Union began a campaign to organize Respondent's drivers. Drivers Maynard Halvorson and Oli- ver Carver were the principal union activists. Halvorson solicited signatures on approximately 14 authorization cards. On January 31. the Union filed a representation petition in Case 27 R' 5436. An election was held by mail ballot and the tally of ballots was on May 17. Driver Harry Albertson testified that Respondent held a meeting of some of the drivers about 2 or 3 weeks after the petition was filed. Chris Markley, Respondent's secretary- treasurer. was the principal spokesman for Respondent. He said he did not think it was a good idea to have the Union. One of the employees asked why the union instigators were not at the meeting. An employee also said that Halvorson had been an instigator in the attempts to organize Frank Cline, another common carrier, and asked if Markley had known that would he have hired Halvorson. Markley said that if he knew he was going to cause all those problems, he probably would not have hired him.4 Markley testified that he does not recall making this latter statement.' According to him, during a regularly scheduled quarterly meeting Respondent held of its driver employees in March. an employee asked if Respondent had gotten the rate in- crease for which it had applied and when were the drivers going to get a wage increase. He does not recall exactly how he responded to the question but he thinks he said that they were not sure what could be done, that the', could not promise a wage increase because they had not yet received the requested rate increase. According to Markley, this is the same meeting about which Albertson testified. Halvorson testified that in the first part of February, after the petition was filed, he and several mechanics were pre- sent in the shop when Markley told them all the Union could do was promise a bunch of things and could not pro- duce anything, so why waste their time and money joining the Union. He also said "We got our rate increase and we'd be giving you drivers a penny a mile [increasej if it wasn't for the Union hanging over our heads right now." Markley asked if anyone had any opinions. Halvorson said he could not see anything wrong with the Union because the drivers were then paying $85 a month for health and welfare out of their checks plus $17 a month for the Union: and that with union representation, they would get health and welfare but would only have to pay the $17. Although Halvorson is not absolutely sure whether it was during this conversation or later, Markley' also said that Respondent had to hire law- yers, etc., in case the Union won. He thinks it was during this same conversation, at the time that Markley said the drivers would have received an increase but for the IUnion. Markley did not testify with regard to this conversation. I credit Albertson and Halvorson, whom I find to be honest and reliable witnesses. Although Markley testified 3 All dates hereinafter will be 1977 unless otherwise indicated. 4Albertson also testified on cross-examination: Q. In )your opinion, was Mr. Markley responding to this question in a joking manner? A. As far as I could tell, yes, he was. Markley admits that he had knowledge prior to the filing of the petition that Halvorson was a union supporter. According to him, various drivers would give him unsolicited reports that authorization cards were being dis- tributed. that he does not recall making one particular statement, he does not deny the statements attributed to him by Albert- son and Hfalvorson. I find that Respondent violated Section 8(a)(1) of the Act by Marklev's statement that if he had known that Halvor- son was going to cause problems, he probably would not have hired him. It is immaterial that the statement was made in response to a direct question from an employee, or that Albertson perceived the response as being made in a joking manner. The remaining issue is that of the alleged assignment of Halvorson to less profitable jobs. Halvorson was employed by Respondent as a driver from July 21, 1975, until June 25, 1977. At the time of his hire he was an experienced road oil hauler. Early in his employment with Respondent, he was trained to haul propane. As of February, he was one of five driver employees who could haul propane. For about 6 months prior to November 1976. Halvorson hauled gas almost exclusively. The loads were fbr various accounts and had various destinations. In November. ac- cording to Halvorson, Bob Klomhaus. a driver who hauled almost exclusively for Continental Oil, quit; Halvorson took over the Continental runs. From November 1976 through January 1977, Halvorson hauled almost exclusively for Continental. In early February. dispatcher Sterling "Pete" Kunz asked Halvorson to pick up a load of propane from Pieance Creek. According to Halvorson, Kunz said it would be for a couple of days. However, Halvorson was never returned to the Continental run. Instead, he continued hauling propane for a new account, Hy-Trans. and the Continental runs were spread among a number of drivers. General Counsel argues that Halvorson suffered eco- nomic discrimination because of his transfer from the Con- tinental Oil account, his assignment to Leadville and Cli- max runs, and the type of equipment to which he was assigned. I find the evidence insufficient to support these contentions. Although Halvorson apparently did not like the equipment, there is nothing to indicate that it was any different from that of much of Respondent's equipment, and he had made Leadville and Climax runs at various times in his employment. Similarly. the Continental Oil job was not the first dedicated.6 or semidedicated run to which Halvorson was assigned. In each prior case, the runs lasted only for a comparatively short period of time. It is not even the first time that he hauled principally for Continental. Thus, from July 21 to August 18, 1975, he hauled princi- pally for Accent Petroleum to Colorado Springs. From Au- gust 19 to September 5. he hauled principally for Continen- tal. From October 14, 1975. to January 12, 1976. half of his runs were for Continental. From April 19 27, 1976, all of his runs were to Merino for Koch Oil. From June 1- 11, 1976. almost all of his runs were for Continental. From June 25 to July 16 half of his runs were for Continental. True, his Continental run which began in November 1976 lasted for a longer period of time than any of the others and certainly that run came closer to being a truly dedicated 6 A dedicated run is where a client, by specific arrangement, uses the truck of a common carrier on a steady,. continual basis. Continental was not a true dedicated run but operated in much the same way 1298 PEFCO. INC.. INTERSTA :TE run than any of the others, but there is nothing in the rec- ord to indicate, aside from the Continental run from May 1975 through January 1977. that the same driver continued indefinitely once assigned to a dedicated run. The Continental run pattern started in May 1975 when Respondent hired Small, an ex-Continental driver who had a personal relationship with the Continental dispatcher. Small continued this run until he quit in May 1976. At that time. Robert Klomhaus took over the run and continued it until he quit in November 1976: then Halvorson was as- signed to the run. He was either assigned the run by Super- visor Carl Hardin or, according to Halvorson. Hardin was instrumental in securing the assignment. However, the run was operated differently after Klomhaus left. Klomhaus and Small had keys to the Continental bulk plant and they were dispatched directly by the Continental dispatcher. Halvorson did not have a key and he was dispatched by Respondent. Markley's undenied testimony, which I credit, is that in January 1977, Jim Karl, district traffic manager for C(onti- nental Oil, expressed his displeasure when Marklev casually mentioned that a Petco truck was being dispatched directly from the Continental office.' Markley testified that this was one of the reasons the Continental run was spread among a number of drivers. Another reason was an increase in propane business. In all the circumstances, I find that the evidence is not sufficient to establish that Respondent changed its method of han- dling the Continental run and transferred Halvorson to the Hy-Trans run for other than legitimate business reasons. However, another pattern developed in February which I conclude did result in economic discrimination against Hal- vorson. Although the Hly-l'rans runs were profitable on a daily basis. Hlalvorson worked fewer days. Ile was given almost no dispatches other than ily-Trans. and there sim- ply were not enough of those. Thus. by March he was expe- riencing a substantial drop in income. IHis monthly income from November through June was: Dav .v IW orAkd 'r " Nov.: 25 Dec.: 24 Jan.: 17 Feb.: 14 Mar.: 12 Apr.: 21 May: June: 15 11 Iages $997.04 1.362.40 1.006.88 920.04 743.89 927.18 695.86 844.98 A comparison of his wages for the corresponding months in 1975 and 1976 shows: 1975 761: Nov.: 729.43 Dec.: 635.24 Jan.: 852.09 Feb.: 607.30 Mar.: 1,103.60 Apr.: 1.095.57 May: 1,212.61 June: 1,185.83 197h 77' 997.04 1,362.40 1,006.88 920.04 743.89 927.18 695.86 844.98 A comparison of Halvorson's wages with those of other truck drivers whom Markley testified he considered to he in a comparable wage bracket" and others that ;General Counsel argue are comparable4 shows: ' 8/75--12/75 1976 1/77--6/77 1/76-6/76 2/77--6/77 2/76-6/76 16/ Halvorson 4,906.22 13,075.39 5,138.10 6,101.00 4,138.84 5,248.91 Brooks 4,426.00 12,233.90 7,118.20 5,529.96 6,001.77 5,038.98 Helman 3,480.38 12,576.27 6,340.24 6,376.74 5,267.71 5,456.60 In effect. Melvin Johnson, terminal manager at Continental's Denver terminal from August 1976 to June 1977. admits that Klomhaus was often directly dispatched by Continental. He further testified that this was the only exception to the practice of funneling all orders through the dispatch office of the carrier involved, and that in late September or possibly October, Conti- nental ceased requesting Klomhaus by name According to him, there were two reasons for this change. One, it was the time of the seasonal slow down; and two, another carrier, P.I.E.. was able to take more of their rush loads. I Markley testified that by direct dispatch, he was referring to two different practices. One. where the Petco driver would go directly to the Continental yard seeking a dispatch The second circumstance was when Continental made requests by name. Johnson admits that Klomhaus was requested by name. According to Markley, he understood that it was the dispatching of a driver from Continental's yard which Karl found most objectionable Karl was concerned that this might be considered legal control of the truck. I February is normally a slack month. LO This information comes from the freight bills lor loads hauled by Hal- vorson. Halvorson's paycheck for May includes eight items for which there are no freight bills in the record and thus no dates. The 14 freight bills in the record cover 12 dates There is a discrepancy between the freight bills and the February dispatch sheets. I find the freight bills to be inherenily more reliable since they conform with the payroll record. " The total amount of wages paid includes payment for miscellaneous jobs and corrections of past payroll checks which varied in ans one month from a total of $4 to a total of $18.06 I' These wages include an insignificant amount paid tir miscellaneous jobs. May includes a $106.52 balance for guarantee It includes an additional amount in March, April, and May charged in the payroll records to I.. Jones There is no explanation of this in the record. The additional pay he received in March was $126.16; in April, $148.59; and in May, $55.71. " Markley testified that he considered Boulton, Robb, Helman, and Gregg Carlson as comparable: however, it is unclear upon what he bases this opin- ion It might possibly be from an exhibit prepared by him in preparation for the trial. I find this exhibit to be unreliable, however, since it differs in some respects from the payroll records. The comparison herein does not include Gregg Carlson because the period of his dnving employment did not start until the latter part of May 1976. He apparently did not work in December 1976 nor the first half of January 1977, and he quit during the pay period ending Ma3 15, 1977. 1 General Counsel argues that Jerome Brxooks, Harry Albertson, and Ted Seyfer should also be compared. Some of these employees are in the 2- to 4- year bracket. Since the difference in pa) is roughly 4 percent, I consider it insignificant for purposes of comparisons herein. V" 'acation pay is not included. 16 This includes $341 charged to L.. Jones on the payroll record. r This includes $330 charged to L. Jones on the payroll record 1299 )1'( ISIONS OF NATIONAL LABOR RELATIONS BOARD Albertson Seyfer Boulton]J Robbd/ Average: 3,755.95 11,246.79 3,832.53 11,664.82 4,032.36 10,991.33 9,414.54 4,072.24 11,600.43 From the above, it is apparent that Halvorson experi- enced a substantial loss in income at a time when other drivers who had grossed less than Halvorson throughout his employment were enjoying an increase in earnings over that of the corresponding months in 1976. Further, this de- crease continued even though Respondent's road oil busi- ness was burgeoning to the point where its drivers could not handle the orders and Respondent hired owner-operators along with their equipment.?" Markley admits that Halvorson was not dispatched to haul road oil but contends that this was because Halvorson refused to haul road oil. Markley and Halvorson agree that in March Hlalvorson complained to Markley that he was not getting enough work. Markley told him that was typical of the business but he had a lot of road oil work coming up and he would be able to use HaIlvorson for that. Halvorson said he preferred gas. According to Markley. thereafter he checked his payroll and Halvorson's relative position to other drivers appeared normal. Other drivers were also ex- periencing a decrease at that time. Markley further testified that sometime in April. in the driver's room, he asked Halvorson, "would you haul road oil" and Halvorson said no. Halvorson denied that he ever refused to haul a load of road oil during the spring of 1977?2 He did testify, however, that he talked to Markley in the drivers' room in April, at which time he mentioned that he needed some runs to make some money. I credit Halvorson that he did not refuse to haul road oil. The freight bills on loads hauled by him indicate an em- ployment history with Respondent of accepting various kinds of jobs-long runs, short runs, even city runs that paid only $4 or $5. He hauled various kinds of loads and, even considering his preference for gas, in February, when he was asked to haul propane, he did so without question. This is not the record of a prima donna hauler who refuses to haul certain types of products. particularly at a time when he was experiencing a substantial drop in income. In May he even took a week's vacation without pay. during which time he worked for another employer. Even assuming that Hal'orson did turn down a road oil job in April, I find it incredible that Markley would believe he was refusing to ever haul road oil. His application showed he was an experienced road oil hauler and that he had hauled a load of road oil on March 31. This is true particularly when Respondent had more business than driv- ers and even though a number of its own trucks were idle, was reduced to utilizing owner-operators to whom it had to pay a percentage of the gross revenue. Furthermore, Mark- lev was not the dispatcher. la Boulion transferred to the shop in June. This does not include his shop wages of $106 for June. i' Robb was employed on November 28. 1975, 2" This began around the first ofi April i1 He testifed that he never refused such a load that he can remember, that it is a possihiliti. but he is "pretty sure" he did not. In view of all of the circumstances including the tim- ing,22 the pretextual nature of the reason given for not dis- patching Halvorson to road oil jobs. Markley's statements found above to be violative of Section 8(a)(1) of the Act, other expressions of animus by Markley, and Carl Har- din's 23 statement in response to a query from a driver em- ployed by another company that Halvorson no longer worked for Respondent, he was a union man, he tried to organize Respondent, he did not make it and was gone I find that in retaliation for his union activities, Respondent dispatched Halvorson in a manner designed to reduce his earnings. Accordingly, I find that Respondent thereby vio- lated Section 8(a)( ) and (3) of the Act. CONC I USIONS OF LANV 1. Respondent is an employer engaged in commerce within the meaning of Section 2(2), (6). and (7) of the Act. 2. The Union is a labor organization within the meaning of Section 2(5) of the Act. 3. By dispatching Maynard Halvorson in a manner de- signed to reduce his wages because of his activities on be- half of the UJnion, Respondent has violated Section 8(a)(1) and (3) of the Act. 4. By telling employees that it would not have hired a fellow employee if it had known that the employee had sought union representation at his previous place of em- ployment: and by telling employees it was withholding a wage increase because of the union activities of its employ- ees, Respondent has violated Section 8(a)( 1 ) of the Act. 5. The aforesaid unfair labor practices affect commerce within the meaning of Section 2(6) and (7) of the Act. Ttit REMI H)Y Hlaving found that Respondent has engaged in certain unfair labor practices, I shall recommend that Respondent cease and desist therefrom and take certain affirmative ac- tion in order to effectuate the policies of the Act. Having found that Respondent dispatched Maynard Halvorson in a manner designed to reduce his wages in violation of Section 8(a)(1) and (3) of the Act, it is recom- mended that Respondent make Halvorson whole for any loss of pay suffered by reason of the discrimination against him, with interest thereon to be computed in the manner prescribed in F. W Woolworth Company,. 90 NLRB 289 (1950), and Florida Steel Corporation, 231 NLRB 651 ( 1977)24 Upon the basis of the foregoing findings of fact, conclu- sions of law, and the entire record in this proceeding, and pursuant to Section 10(c) of the National Labor Relations Act as amended, I hereby issue the tollowing recommend- ed: 22 Respondent received mail service of the representation petition on Feb- ruary 10. 21 Hardin was an admitted supervisor durng the period of the discrimina- See enerall Plumin non 2 "See, generalls, mvis Plumbing & Heating Co.. 138 NLRB 716 (1962). 6,195.35 5,808.20 4,234.04 6,037.14 5,838.75 4,698.76 5,046.87 5,376.35 4,156.36 5,326.58 5,123.82 4,801.29 3,295.65 4,837.18 4,780.89 4,069.51 4,382.88 4,444.81 3,771.39 4,630.44 1300 ANADITE INDUSTRIAL SUPPLY CO. ORDER2 The Respondent, Petco, Inc., Interstate, Commerce City, Colorado, its officers, agents, successors, and assigns, shall: 1. Cease and desist from: (a) Dispatching employees in a manner designed to re- duce their wages because of their union activities. (b) Telling employees that it would not have hired a fel- low employee if it had known that the employee sought union representation at his previous place of employment. (c) Telling employees it was withholding a wage increase because of their union activities. (dl In any like or related manner interfering vwith, re- straining, or coercing employees in the exercise of their rights guaranteed in the Act. 2. Take the following affirmative action necessary to ef- fectuate the policies of the Act: (a) Make Maynard Ilalvorson whole for any loss of pay he may have suffered by reason of the discrimination against him in the manner set forth in the section herein entitled "The Remedy." (b) Preserve and, upon request, make available to the Board and its agents, for examination and copying, all pay- roll records and reports and all other records required to ascertain the amounts, if any. of any hackpay due under the terms of this recommended Order. (c) Post at its place of business in Commerce City, Colo- rado, copies of the attached notice marked "Appendix."26 Copies of said notice, on forms provided by the Regional Director for Region 27, after being duly signed by its autho- rized representative, shall be posted by Respondent imme- diately upon receipt thereof, and be maintained by it for 60 consecutive days thereafter, in conspicuous places, includ- ing all places where notices to employees are customarily posted. Reasonable steps shall be taken by Respondent to insure that said notices are not altered, defaced, or covered by any other material. 25 In the event no exceptions are filed as provided b) Sec. 102.46 of the Rules and Regulations of the National Labor Relations Board, the findings. conclusions and recommended Order herein shall, as provided in Sec 102.48 of the Rules and Regulations, be adopted by the Board and become its findings, conclusions, and Order, and all objections thereto shall be deemed waived for all purposes. 2, In the event that this Order is enforced by a judgment of a United States Court of Appeals, the words in the notice reading "Posted by Order of the National Labor Relations Board" shall read "Posted Pursuant to a Judgment of the United States Court of Appeals Enforcing an Order of the National Labor Relations Board." (d) Notify the Regional Director for Region 27, in writ- ing, within 20 days from the date of this Order, what steps Respondent has taken to comply herewith. APPENDIX Nori( E To EMPI OYEES POSTElD BY ORDER ()F- tH- NATIONAL LABOR RELAT()IONS BOARI) An Agency of the United States Government After a hearing at which all parties had the opportunity to present their evidence, the National Labor Relations Board has found that we violated the National Labor Relations Act, and has ordered us to post this notice and we intend to carry out the order of the Board. The Act gives all employees these rights: To engage in self-organization To form, join, or help unions To bargain as a group through a representative of their own choosing To act together for collective bargaining or other mutual aid or protection To refuse to do any5 and all of these things. WE sWILL NOT do anything that interferes with, re- strains, or coerces you with respect to these rights. WE WILL NO1 dispatch our employees in a manner designed to reduce their wages because they' engage in union activities. WE 5WILI NOT tell our employees that we would not have hired a fellow employee if we had known that he sought union representation at his previous place of employment. WE W'lll NOT tell our employees we are withholding a wage increase because of their union activities. WE "'ILL NOT in any like or related manner interfere with, restrain, or coerce employees in the exercise of their rights guaranteed in the Act. WE WILi make Maynard Halvorson whole for any loss of pay he may have suffered because we dis- patched him in a discriminatory manner, together with interest as provided by the Board's Order. PETCO, INC., INTERSTATE 1301 Copy with citationCopy as parenthetical citation