Pittsburg-Des Moines Steel Co.Download PDFNational Labor Relations Board - Board DecisionsDec 11, 1980253 N.L.R.B. 706 (N.L.R.B. 1980) Copy Citation DECISIONS OF NATIONAL LABOR RELATIONS BOARD Pittsburgh-Des Moines Steel Co. and International Brotherhood of Teamsters, Chauffeurs, Ware- housemen & Helpers of America, Local No. 439. Case 32-CA-1972 and 32-CA-2142 December 11, 1980 DECISION AND ORDER BY CHAIRMAN FANNING AND MEMBERS JENKINS AND PENEI.LO On July 23, 1980, Administrative Law Judge David G. Heilbrun issued the attached Decision dismissing this proceeding. Thereafter, the General Counsel filed exceptions and a supporting brief, and Respondent filed an answering 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, find- ings, and conclusions of the Administrative Law Judge, as modified herein. The General Counsel excepts to the Administra- tive Law Judge's findings that the management- rights and no-strike clauses in Respondent's Sep- tember 11, 1979, new contract proposals were ar- guably without taint; that Respondent's September 11, 1979, new contract proposals contained mainte- nance-of-membership proposals in lieu of union se- curity, a change allowable to gain union attention and reflecting new sentiment among unit employ- ees; that "the radical change in circumstances as to the operational staffing within the affected bargain- ing units, coupled with the Union's seeming disin- terest in genuine settlement of the contract question amply justified the total withdrawal of proposals as they stood on July 12, 1979;" and that there was no "abiding regressiveness" in Respondent's Sep- tember 11, 1979, contract proposals. We find merit in the General Counsel's exceptions. The consolidated amended complaint alleges that on or about July 12, 1979, Respondent withdrew its pending proposals for collective-bargaining agreements covering separate units of drivers and employees engaged in warehouse operations, which proposals were dated May 17, 1979; and that Re- spondent later presented the Union with new pro- posals for collective bargaining covering the above-mentioned unit, which proposals contained substantial changes, including items less favorable to the Union than those contained in Respondent's proposals submitted on May 17, 1979. The Administrative Law Judge found that the General Counsel's theory of "surface" or "bad- 253 NLRB No. 86 faith" bargaining, which focused upon Respond- ent's action in withdrawing all proposals on July 12 and putting forward obviously regressive new con- tract proposals on September 11, was utterly lack- ing in merit. We disagree. The facts, as more fully set forth by the Admin- istrative Law Judge, show that Respondent and the Union have been parties to contracts covering sep- arate units of drivers and warehouse operations, the most recent of which expired on March 31, 1979. Although the parties had held seven or eight bar- gaining sessions prior to the expiration date of the contracts, no agreement was reached and a strike ensued on March 31, 1979.' Both of the expired contracts contained provi- sions concerning union security, checkoff, manage- ment prerogatives, and protection of rights; that is, an employee's right to refuse to cross picket lines sanctioned by the Union. The contracts also con- tained extensive grievance procedures which pro- vided that any differences between the parties as to time limits could be amicably settled and individual employees were entitled to present grievances al- though only Respondent and the Union could take a dispute to arbitration. The contracts also pro- vided that there would be no strikes, slowdowns, or lockouts unless one of the parties failed to comply with the grievance procedures. Finally, the expired contracts provided for noncontributory health plans as well as Respondent's contributions to the Western Conference of Teamsters Pension Plan Trust Fund. At the bargaining session of May 17, Respondent submitted its contract proposals. Except for a new section on strikes and lockouts and changes in the health and pension provisions, the contract was similar to the recently expired contracts. Subse- quent meetings and conversations were not fruitful in getting Respondent to sign the contract as the Union understood it-Respondent contending that the Union misunderstood its position with respect to the no-strike/no-lockout clause. Respondent abruptly withdrew its proposals on July 12. Contrary to the Administrative Law Judge's finding, we find no support in the record for his conclusion that "radical change in circumstance as to operational staffing within the affected bargain- ing units, coupled with the Union's seeming disin- terest in genuine settlement of the contract ques- tion, amply justified the total withdrawal of pro- posals as they stood on July 12." The record is devoid of evidence that Respondent directly or in- directly asserted that its employment complement i -he strike ended May 29, %when he employees railfied 'hat the Union unllderstood t be an agreed-upon contracl and went back o work 706 PITTSBURGH-DES MOINES STEEL CO. had changed as a result of the strike and its hiring of some strike replacements, or that it could no longer offer the same contract proposals it had pro- posed to the Union as of May 17. The strike had lasted no more than 2 months, terminating 6 weeks before Respondent withdrew its original contract proposals on July 12. Replacements composed no more than 30 percent of the work force, and it ap- pears that any antiunion sentiment by employees concerned paying dues in June and July when no union contract, and no benefits, were in effect. As to the Union's asserted disinterest, it would appear that the parties had narrowed their differ- ences concerning the contracts to a dispute as to whether Respondent had deleted a controversial clause concerning no-strike and no-lockout lan- guage which the Union asserted Respondent had agreed to drop as early as May 17. Although the Union may have been operating under the miscon- ception that Respondent had dropped its insistence on the disputed no-strike and no-lockout language, the Union in its communications with Respondent was anything but apathetic in its demands, de- scribed in detail in the Administrative Law Judge's Decision. Rather, the record shows that the Union thought that it had a bargaining agreement which had been ratified and signed, and insisted that Re- spondent had agreed to delete the no-strike and no- lockout language. The history of the negotiations shows that in a letter dated June 15 the Union "reauthored" clean contract drafts, requested and received from Respondent, by deleting the disputed language on strikes and lockouts. In a letter dated June 22, Respondent notified the Union that it had not agreed to withdraw the no-strike and no-lock- out provision from either contract and that it de- clined to execute the documents. Then, on July 12, without prior notice to the Union of its intentions, Respondent notified the Union that it was with- drawing its last contract proposal without specify- ing the contract terms with which the parties were in disagreement. Following Respondent's withdrawal of its pro- posals on July 12, the Union notified Respondent by letter of July 17 that it was its position that it had a binding collective-bargaining agreement with Respondent, notwithstanding that the Union may have misunderstood that the disputed clause was contained in the final proposal. Also at this time, the Union indicated that it was filing an unfair labor practice charge concerning Respondent's fail- ure to execute the agreement. 2 Thereafter, the Union signed and delivered to Respondent the two contract proposals Respondent had sent the Union 2 The Union withdrew the charge in Case 32-CA 1940 after it as advised by Region 32 that it would not issue a complaint on June 10. By letter dated August 24 Respondent notified the Union that the contract proposals the Union had signed had been unconditionally with- drawn by Respondent on July 12. On August 29 the Union wrote to Respondent again asserting that an agreement had been reached between the parties and offering to negotiate concerning Respondent's opposition to its previous offer in order to avoid what could be lengthy and extensive litigation by both parties. On September 11 Respondent acknowledged the August 29 letter and enclosed new contract pro- posals for the respective units. These deleted the former section II, which covered long-accepted union-security and checkoff clauses and instead proposed maintenance of membership. Former sec- tion III (management prerogatives) was greatly ex- panded. In fact the Administrative Law Judge re- ferred to it as a "dramatic expansion." It included Respondent's right to control operations including production requirements; to sell or lease free of the liabilities of the contract; to determine the types and distribution of work within locations; to deter- mine starting and quitting times and the number of hours per day and per week operations would be carried on; to determine whether and to what extent the work required in its business would be performed by employees covered by the contract; to select and assign work to employees in accord- ance with requirements determined by manage- ment; to increase or decrease the working force; to make rules for efficiency or safety; to hire, pro- mote, demote, transfer, layoff, and recall employ- ees; to classify and reclassify employees; to deter- mine policies affecting the selection of employees; to assign and reassign employees to duties and hours of work; to determine safety, health, and property protection measures; and to discharge, suspend, and otherwise discipline employees. A zipper clause was added to section III stating that "[i]n no event shall any right, function or preroga- tive of management ever be deemed or construed to have been modified, diminished or impaired by any past practice or course of conduct, or other- wise than by an explicit provision of this Agree- ment." Deleted was the former clause "that ques- tions arising under this Section may be subject to the grievance procedure." Also missing from Respondent's September II proposal was the former section IV which pro- vided that employees would not be required to cross picket lines recognized by the Union and the parent body of the union establishing the picket line, as well as the right to strike during the con- tract term if the Company was failing to abide by an arbitration award. Injunctive relief for violation 707 DECISIONS OF NATIONAL LABOR RELATIONS BOARD of the no-strike/no-lockout clause was provided only for the Company, as was the right to hold an arbitration within 48 hours if the Union breached the clause. While Respondent's September II proposals re- tained the fundamental grievance procedure of sec- tion XV of the prior contracts, the new proposal reduced the time limit for the filing of nondisciplin- ary grievances from 10 to 5 days of a grievant's knowledge, and required that the arbitration board be invoked within only 2 working days rather than within 4. Time was to be of the essence in the ab- sence of a written, mutual agreement. While Section 8(d) of the Act does not require or compel either party to agree to a proposal or re- quire the making of concessions, the Board does consider the totality of an employer's conduct to determine its motivation in determining whether the employer was really engaging in surface bar- gaining with no genuine intent to reach agreement. Our review of the record herein, including Re- spondent's abrupt and unexplained withdrawal of its contract proposals on July 12, and its failure to offer any reasonable explanation for its more re- strictive contract proposals of September 11, leads us to conclude that Respondent sought to frustrate bargaining. We cannot agree with the Administra- tive Law Judge that the management-rights ampli- fication was simply "extensive legalistic phrasing" that could be "swept away by a handshake." Rather, as we find, the intent was to reduce the role of the Union as the bargaining representative of the employees. Nor was there any reasonable prospect that the September 11 proposals as a whole might advance the negotiations. 3 According- ly, we conclude that, by withdrawal of its original proposals tentatively agreed upon and by substitu- tion without explanation of regressive proposals, Respondent has failed to bargain in good faith and has thereby violated Section 8(a)(5) of the Act.4 3 After charges were filed with the Board, Respondent withdrew part of its September I proposals, those having to do with the grievance pro- cedure and with sympathy strikes. In our view this was an untimely con- cession. insufficient to alter our conclusions and remedy herein. 4 See General Athletic Products Co.. 227 NLRB 1565 (1977); Yearbook House, 223 NLRB 1456, 1464-65 (1976); Pacific Grinding Wheel Co., Inc., 220 NLRB 1389, 1390 (1975); The Gerstenslager Company, 202 NLRB 218. 224-225 (1973). Respondent argues that Board law holds that a party may lawfully withdraw a contract proposal at any time before it is ac- cepted. The cases cited by Respondent, which are consistent with the principles of law discussed in the cases cited herein, are unavailing as a defense. We note that in those cases relied upon by Respondent the se- quence of events led the Board to conclude that the employer's course of conduct did not constitute an 8(aX5) violation Here, we find that Re- spondent's asserted reasons for, and the timing of, its actions bear no rela- tion to the restrictive changes proposed on September II11. Rather, based on our examination of the circumstances of this case, we conclude that Respondent's overall course of conduct, for which it has proffered no good cause, evidences an intention to frustrate bargaining rather than at- tempting in good faith to reach agreement. CONCLUSIONS OF LAW 1. Pittsburgh-Des Moines Steel Company is an employer within the meaning of Section 2(6) and (7) of the Act. 2. International Brotherhood of Teamsters, Chauffeurs, Warehousemen & Helpers of America, Local No. 439, is a labor organization within the meaning of Section 2(5) of the Act. 3. All driver employees employed by Respond- ent in the environs of Respondent's Stockton, Cali- fornia, plant; excluding office workers, clerical workers, technical and professional employees, watchmen, guards, janitors, and supervisors as de- fined in the Act, constitute a unit appropriate for collective bargaining within the meaning of Section 9(b) of the Act. All employees employed by Respondent per- forming work in the environs of Stockton, Califor- nia, in reinforcing steel fabrication and in the fol- lowing warehouse operations, production, fabrica- tion, and distribution, constitute a unit appropriate for collective bargaining within the meaning of Section 9(b) of the Act. 4. At all material times International Brother- hood of Teamsters, Chauffeurs, Warehousemen & Helpers of America, Local No. 439, has been the exclusive collective-bargaining representative within the meaning of Section 9(a) of the Act for all Respondent's employees employed in the units described above. 5. The Respondent, Pittsburgh-Des Moines Steel Company, has refused and continues to refuse to bargain collectively in good faith with Internation- al Brotherhood of Teamsters, Chauffeurs, Ware- housemen & Helpers of America, Local No. 439, as the exclusive collective-bargaining representative of its employees employed in the units described above, within the meaning of Section 8(a)(1) and (5) of the Act. 6. The aforesaid unfair labor practice affects commerce within the meaning of Section 2(6) and (7) of the Act. THE REMEDY We have found that Respondent violated Section 8(a)(1) and (5) by withdrawing, on or about July 12, 1979, pending proposals which it had submitted to the Union dated May 17, 1979, and thereafter, on September 11, 1979, by presenting the Union with new proposals for collective-bargaining agree- ments covering separate units of drivers and ware- house operations, which proposals contained sub- stantial, regressive changes less favorable to the Union than those contained in the proposals dated May 17, 1979, which Respondent withdrew on 708 PITTSBURGH-DES MOINES STEEL CO. July 12, 1979. We shall order Respondent to cease and desist therefrom and to bargain collectively in good faith with the Union in the appropriate units. 6 ORDER Pursuant to Section 10(c) of the National Labor Relations Act, as amended, the National Labor Re- lations Board hereby orders that the Respondent, Pittsburgh-Des Moines Steel Company, Stockton, California, its officers, agents, successors, and as- signs, shall: 1. Cease and desist from: (a) Refusing to bargain collectively in good faith with International Brotherhood of Teamsters, Chauffeurs, Warehousemen & Helpers of America, Local No. 439, as the duly designated exclusive bargaining representative of employees in the fol- lowing appropriate units: All driver employees employed by Respondent in the environs of Respondent's Stockton, California, plant; excluding office workers, clerical workers, technical and professional employees, watchmen, guards, janitors, and su- pervisors as defined in the Act. All employees employed by Respondent per- forming work in the environs of Stockton, California, in reinforcing steel fabrication and in the following warehouse operations, pro- duction, fabrication and distribution. (b) In any like or related manner interfering with, restraining, or coercing employees in the ex- ercise of the rights guaranteed them in Section 7 of the Act. 2. Take the following affirmative action designed to effectuate the policies of the Act: (a) Upon request, bargain collectively with Inter- national Brotherhood of Teamsters, Chauffeurs, Warehousemen & Helpers of America, Local No. 439, as the duly designated exclusive collective-bar- gaining representative of all employees in the aforesaid appropriate units. (b) Post at its Stockton, California, plant and all places where notices to employees are customarily posted copies of the attached notice marked "Ap- pendix." 6 Copies of said notice, on forms provided I The General Counsel requests the Board to order that Respondent, upon resumption of bargaining, place before the Union those same pro- posals for contracts which were before the Union on July I 1, just prior to the start of Respondent's unfair labor practices herein, i.e., a return to the status quo ante. We deny the General Counsel's request on grounds that our normal bargaining order will suffice to remedy the violation herein Member Jenkins would grant the General Counsel's request. 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 Pursu- by the Regional Director for Region 32, after being duly signed by Respondent's representative, shall be posted by Respondent immediately upon receipt thereof, and be maintained by it for 60 con- secutive days thereafter, in conspicuous places, in- cluding 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. (c) Notify the Regional Director for Region 32, in writing, within 20 days from the date of this Order, what steps Respondent has taken to comply herewith. ant to a Judgment of the United States Court of Appeals Enforcing an Order of the National Labor Relations Board " APPENDIX NOTICE TO EMPLOYEES POSTED BY ORDER OF THE NATIONAI. LABOR RELATIONS BOARD An Agency of the United States Government WE WILl. NOT refuse to bargain in good faith with International Brotherhood of Team- sters, Chauffeurs, Warehousemen & Helpers of America, Local No. 439, as the duly designat- ed exclusive representative with respect to wages, hours, and other terms and conditions of employment, concerning unit employees. WE WILL NOT in any like or related manner interfere with, restrain, or coerce our employ- ees in the exercise of the rights guaranteed them in Section 7 of the National Labor Rela- tions Act. WE WIILL, upon request of the above-named Union, meet with and bargain collectively in good faith with the Union as the exclusive col- lective-bargaining representative of the em- ployees in the appropriate units, and, if an un- derstanding is reached, reduce to writing and sign any agreement reached as a result of such bargaining. The appropriate units are: All driver employees employed by us in the environs of our Stockton, California, plant; ex- cluding office workers, clerical workers, tech- nical and professional employees, watchmen, guards, janitors, and supervisors as defined in the Act. All employees employed by us performing work in the environs of Stockton, California, in reinforcing steel fabrication and in the fol- 709 I)lECISIONS OF NATI()NAL I.ADOR RELATIONS O()ARDI lowing warehouse operations, production, fab- rication and distribution. PI' 1ITSBUR(;H-DIES MOINES S I1I COMPANY DECISION STAI1 ENI i ll. CASE DAVID G. HIl.IIBRUN, Administrative Law Judge: IThis case was heard before me in Stockton, California, on April 22 and 23, 1980, based on such allegations of a consolidated amended complaint as remained after var- ious other allegations invoking Section 8(a)(1) and (3) of the Act were disposed of during the course of hearing by a settlement agreement reached between all parties and approved by me. The residual allegations, read in conjunction with colloquy solicited at the outset of the hearing, assert that Pittsburgh-Des Moines Steel Co., herein called Respondent, violated Section 8(a)(l) and (5) of the Act by bad-faith surface bargaining with Inter- national Brotherhood of Teamsters, Chauffeurs, Ware- housemen & Helpers of America, herein called the Union, as manifested by certain acts of withdrawing pending contract proposals and later presenting new and substantially changed ones. Upon the entire record,' my observation of witnesses and consideration of post-hearing briefs filed by the Gen- eral Counsel and Respondent, I make the following: FINDINGS OF FACT AND RESUILTANT CONCIUSION OF LAW The Union has historically represented employees in seperate bargaining units of drivers (Unit A) and ware- house operations including reinforcing steel fabrication (Unit B), for which separate collective-bargaining con- tracts are administered. 2 The latest pair of these were en- tered into for the respective units on August 28, 1976 and June 6, 1976. They each expired simultaneously on March 31, 1979.3 The parties had engaged in seven or eight bargaining sessions prior to that expiration date, however, failing agreement, a strike of employees in both units occurred on or about April 1. Each expired con- tract had been in full and comprehensive form, contain- ing in part the following language: SECTION II. Union Membership, referral, Check-off. A. Union Membership-All employees covered by this Agreement who are members of the Union on the date of execution of this Agreement or on the effective date of this Agreement, whichever is later, shall as a condition of employment remain in good Certain errors in the transcript are hereby noted and corrected 2Respondent is a corporation engaged in the production and sale or steel products at Stockton, California. annually purchasing and receivinig goods or services valued in excess of $50,000 directly from suppliers lo- cated outside the State of California. On these admitted facts, I find that Respondenl is an employer engaged in commerce within the meaning of Section 2(6) and (7) of the Act, and otherwise that the Union is a labor organization within the meaning of Sectionl 25). a All dates are in 1979, unless shown otherwise standing in the Union. All present employees cov- ered by this Agreement who are not members of the Union and all employees hired hereafter shall become ad remain members in good standing in the Union as a condition of employment after the thirty-first (31st) day following their employment, the effective date of this Agreement, or the date of execution of this Agreement, whichever is later. C. Check-Off-The Company shall, if requested by the Local Union, deduct from the pay of all em- ployees covered by this Agreement, union dues, ini- tiation fees and uniform assessments, and promptly remit all such deductions to the Local Union, sub- ject to the conditions hereinafter stated in this Arti- cle. No deduction shall be made which is prohibited by applicable law. SECTION III. Management Prerogatives. The Company retains the exclusive right to manage its business and plants and to direct the working forces. The right to manage the business and plants includes, but not by way of limitation, the right to hire, classify, promote, transfer, discharge or disci- pline for cause, to maintain discipline and efficiency of employees, and the right to relieve employees from duty because of lack of work or other legiti- mate reasons, except that no employee shall be dis- criminated against and that questions arising under this Section may be subject to the grievance proce- dure. SECTION' IV. Protection of Rights. D. Picket Lines-Employees shall not be required to pass picket lines recognized by Local #439 and the parent body of the union establishing the picket line. In addition to this quoted material, section XV on "Grievance Procedure" was one full page in length. It set forth a board of arbitration and impartial umpire pro- cedure with time periods in which to file and process grievances from inception to the umpire level. Phraseolo- gy was contained by which it was recognized expressly, "that if these time limits are not met the difference shall be assumed to be amicably settled." Additionally, the section set forth certain limitations on retroactive remedy and recognized the entitlement of an individual employee to present a grievance in a manner as would be consist- ent with Section 9(a) of the Act. An individual employ- ee's rights under this procedure did not include that of taking a dispute to arbitration, which was "reserved for the Union and the Company." Finally, the parties respec- tively agreed that there would be no strikes, slowdowns, 7 10 I'ITTSBURGIH-IDES MOINES STEEL CO. or lockouts during the term of the agreement, "except and unless one of the parties fails to comply with, the grievance procedures set forth herein." Among other features of the contracts were section X on "Health and Welfare Coverage" and section Xl on "Pension Cover- age," by which the Employer agreed respectively to pro- vide noncontributory coverage under a Delta Lode Plan and pension coverage by employer contributions into the Western Conference of Teamsters Pension Plan Trust Fund. Following commencement of the strike a bargaining session was scheduled between the parties under media- tion auspices for May 17. Business Representative Rich- ard Parra, assisted by Shop Steward Paul Ciarmitaro, member Hamilton Briggs, and Local President Ace Hatten, represented the Union, while Respondent's rep- resentatives on this occasion included Pittsburgh based Bill Songer and District Manager Floyd Bedwell. At that point in time Respondent was seeking a 2-year re- newal without change as to sections II, III, IV, or XV, while proposing a new section XVII on "Strikes and Lockouts" and rearranging former section XVII on "Termination" as a proposed new section XVIII. The language sought under proposed new section XVII was:4 It is the desire of the Union and the Company to avoid strikes and work stoppages. The Company agrees not to cause, permit or engage in any lock- out of its employees during the term of this Agree- ment except for refusal of the Union to submit to arbitration in accordance with Section XV or fail- ure on the part of the Union to carry out the award of the Arbitration Board. The Union agrees that neither it, nor its members individually or collec- tively, will, during the term of this Agreement cause, permit or take part in any strike, picketing, standing, slowdown, or curtailment or restriction of production, or interference with the work in or about the Company's plant or premises except for refusal of the Company to submit to arbitration in accordance with Section XV, or failure on the part of the Company to carry out the award of the Arbi- tration Board. In any case where a work stoppage, strike or intentional slow down of production occurs contrary to and in violations of the provi- sions of this Section, and any employee as disci- plined which may include discharge, the disciplin- ary action taken by the Company shall be subject to the grievance procedure up to and including arbi- tration only for the purpose of determining the guilt or innocence of the employee. Additionally, Respondent was proposing to discontin- ue union-related health, welfare and pension coverage by agreeing, for the future, to obtain health and welfare coverage "from a reliable insurance company, or compa- nies legally authorized to operate in the State of Califor- nia," while establishing a "Qualified Plan" under ERISA I4 recognize a latent ambiguit inl proposing no change to the prior grievance prccedure in which strike and lockout phraseology appeared. while imultaneously proposing clabhrate ne. treatment of the subject Assuming this to he no more than inadvertence in draftsmanship I dii nio more than make the observation in which a stated schedule of retirement benefits would be provided. Parra testified that after some table bargain- ing on May 17 the parties caucused and communicated thereafter through the mediator. In the course of this, he recalled the mediator telling him confidentially how there was "no problem" with the no-strike/no-lockout language but that the Company was "holding steadfast" on the subjects of medical coverage and pension. The gist of Bedwell's testimony concerning this meeting was that the Union "didn't like" Respondent's no-strike/no- lockout proposal, and that no member of management's negotiating team ever stated to the mediator that this subject was being withdrawn or deleted. Parra testified that he next arranged a meeting be- tween himself and executive Ned Ware, a person two ex- ecutive levels above Bedwell, and probed for some reso- lution of the strike. Parra recalled asking Ware if he would "intervene" to at least preserve the Teamster pen- sion plan for drivers as a concession that might cause unit A employees to accept the company plan. The two argued some, became mutually upset, and then returned to a civil mode in which Ware assertedly agreed to com- municate Parra's idea to Songer, although not recom- mending it. Parra testified that later in the afternoon of May 23 he telephoned Ware to state he would schedule a ratification vote on the package and wanted to clearly confirm his understanding that as of May 17 the Compa- ny's no-strike/no-lockout proposal had been dropped. To this he recalled Ware stating that since he had not been present at the May 17 meeting he would only agree to check the matter out and to get back to Parra. Parra de- scribed another telephone conversation between these two the morning of May 29 at which, in anticipation of a favorable ratification vote, Ware spoke tentatively about the mechanics of returning strikers to work. Parra's testi- mony does not attribute any reference to the subject of strikes or lockouts during this conversation. He then conducted a ratification vote, explaining to members of each unit that the no-strike/no-lockout clause had been deleted, and this formed the basis of the vote. The vote of both units was affirmative, and Parra immediately called Ware with news of this in a discussion where again no reference to such language was made. Parra sent a confirming mailgram to Ware that afternoon refer- ring to acceptance of the final proposal dated May 17, 1979, for drivers and plant employees," adding that all strikers were ready to immediately resume work. In fact, a number of union members went directly to the plant after the ratification vote and spoke with Bedwell near the entrance. One of these striking employees, James Asher, testified that in the course of 30 or 40 employees converging on Bedwell and later milling around, the offi- cial was heard to say, "I don't know what contracts you voted on, but I don't think it was the one we presented." Asher added that no response was made since the indi- viduals present, mostly "didn't care about that part" and were really concerned about resuming work. Ciarmitaro was also present on this occssion but could not corrobo- rate Asher's testimony, saying he "couldn't hear him too well" as Bedwell was talking to about 10 employees out- side the building. 71 1 DECISIONS OF NATIONAL LABOR RELATIONS BOARD Parra soon arranged with company officials that they would prepare clean contract drafts for signature. This was done and both proposed contracts sent to Parra around June 10. On reviewing these and finding the con- troversial proposed section XVII was contained, Parra telephoned Ware to register his surprise at why this would be so. Ware denied any understanding that it was to be deleted or dropped, adding that the Company might consider further discussion toward a trade-off in contract language. Parra refused to entertain any ex- change saying that the Union would live up to whatever had been agreed on. Parra then reauthored the docu- ments by deleting the disputed language on "Strikes and Lockouts," and returning the termination clause to its place as section XVII. These drafts were then sent to Ware as enclosures to a letter dated June 15 from attor- ney Richard Maney. It read: Enclosed is the executed Collective Bargaining Agreements between Teamsters Local No. 439 and PDM Steel Company. In regards to the Drivers' Agreement, one correc- tion has been made. The strike and lockout provi- sion which was set forth in the agreement by your Company has been eliminated to bring the Collec- tive Bargaining Agreement in accordance with the negotiated agreement with the parties. To refresh your recollection, the strike and lockout provision was submitted to the Union by your Company but then it was later agreed upon that the provision was to be withdrawn. We have corrected the Agree- ment in the manner. Ware answered Macey on June 22 with the following letter: This is in response to your letter of June 15, 1979, which was received in our office on June 21, 1979. I completely disagree with the contents of your letter. The strike and lock-out provision which is contained in the draft submitted by the Company contains the full and complete understanding of the Company in this matter. It is our position that the Company did not at any time agree to withdraw the no-strike, lock-out provision from either contract. In such circumstances, the Company declines to execute the documents contained in your letter as they do not reflect the agreement of the parties as we understand it. There was no further contact between the parties until July 12. On that date Bedwell wrote Parra as follows: It is clear that we are in disagreement regarding certain essential contract terms and have not been able to consumate an agreement. By this letter, we hereby withdraw our last con- tract proposal and suggest that we get together in the immediate future to continue negotiations to reach an agreement. We will review all matters and have a new proposal for your consideration. I hope to hear from you as soon as possible re- garding the scheduling of a meeting for negotia- tions. This was answered by Macey in a letter to Bedwell dated July 17, which read: Teamsters Local No. 439 has referred to me your letter of July 12, 1979. This is to inform you that it is the position of my client that it has a binding collective-bargaining agreement with your company. As I informed you in previous correspondence the offer presented by your company was accepted. If the negotiations had not removed the particular language which I re- ferred to in my previous letter and it was a union misunderstanding, then, of course, the final proposal was accepted as presented, however, it is the union's position that the agreement which was for- warded to you through my office by letter dated June 15, 1979 encompassed the terms of your final offer. My client has filed an unfair labor practice con- cerning this matter because of your failure to ex- ecute the agreement as agreed to. The unfair labor practice referred to by Macey was filed July 16 as Case 32-CA-1940. Here it was alleged, among other things, that since on or about June 22 the Employer had refused to execute a previously agreed collective-bargaining agreement. On or about August 22, this charge was withdrawn after the Regional Director for the Union, Region 32 advised the Union, because of this refusal, to issue a complaint. Shortly after this, I'arra resurrected the proposed agreements as sent to him by Respondent around June 10. Hatten and Secretary-Treasurer Bob Plummer ex- ecuted both documents on behalf of the Union, and Parra delivered them immediately to Bedwell. This de- velopment was answered by letter of Bedwell to Parra dated August 24, which read: We are in receipt of a contract proposal which was apparently signed by Mr. Ace Hatten and Mr. Bob Plummer on August 22, 1979. This contract proposal embodies terms of an offer which was unconditionally withdrawn by the Company by a letter dated July 12, 1979. Accord- ingly, the proposal we received is rejected by the Company. Enclosed is your copy of this rejected proposal which we have not signed. The Company remains ready and willing to meet with you to bargain in good faith in order to reach an acceptable agreement. I will be preparing a counter proposal from the Company which I will forward to you shortly. Parra wrote back on August 29 as follows: I am in receipt of your letter of August 24, 1979, with the contracts returned unexecuted. 712 PITTSBURGH-DES MOINES STEEL CO. It is the Union's position, as we had discussed in previous correspondence, that an agreement had been reached between the company and the Union and that a minor matter of misunderstanding had to be clarified which has been accomplished by our forwarding executed contracts to your company. In order to avoid a legal dispute, and any inference of bad faith dealings by your company, I would be willing to sit down with a representative from your company in order to determine what your present opposition is to your previous offer, which, in the opinion of the Union was acceptable and accepted. In the event your opposition is minor and is accept- able to the Union, the contract can then be consum- mated. I make this offer to avoid what could be a lengthy and expensive litigation on behalf of both the Union and your company. On September 11 Bedwell wrote to Parra as follows: Thank you for your letter of August 29, 1979. I was glad to hear that the Union is willing to resume negotiations to reach a new contract. Like you, I look forward to working out any remaining differ- ences we may have. As you know. the Company's previous contract offer was withdrawn by letter dated July 12, 1979. 1 have enclosed the Company's new proposal, con- sisting of a proposed Plant Agreement and a pro- posed Driver's Agreement. You will note that while certain language changes have been made, the Com- pany's proposals contain the same economic provi- sions which were included in our previously with- drawn proposal. In the interest of resuming negotiations as soon as possible, I propose that we meet on September 19, at a place and time of your choice. I hope that we can speedily resolve our differences and enter into a new Agreement. Please let me know the time and place you would like to meet. Enclosed with Bedwell's letter were two complete contract drafts for the respective units. These were sym- metrical in form and content with internal disparity aris- ing chiefly because of job difference inherent in the two units and associated variation in how wage rates, over- time, hours of work, layoff and recall (including job bid- ding), and classification listings were traditionally han- dled. For this reason the "Plant Agreement" ran 24 pages long and that for "Driver" only 18 pages long. However, of far greater importance, they were identical in certain subjects or lack of subjects as now manifesting Respondent's "new proposal." The former section II was entirely deleted save for brief phraseology agreeing to notify the Union about new employees hired and not discriminate against em- ployees or applicants because of union membership or lack thereof. The prior section IV (D) was deleted in its entirety. A dramatic expansion was proposed as to former section III so as to have it read: A. Except as otherwise specifically provided in this Agreement, the Company has the sole and ex- clusive right to exercise all the authority, rights and functions of management. The Company expressly retains the complete and exclusive authority, right and power to manage its operations and to direct its employees except as the terms of this Agreement specifically limit said authority, rights and powers. These retained authorities, rights and powers in- clude, but are not limited to, the right to plan, de- termine, direct and control all operations, methods and services; to establish and administer policies, procedures and standards related to repair work; to determine the nature and cost of services; to deter- mine methods, processes, nature, means, schedules and volume of work, production and operation, leasing, repair, distribution, administration and fi- nancing; to determine format and types of services; to determine the suppliers and customers with whom it will deal, and the prices at which and terms upon which its materials, equipment and sup- plies will be purchased and its products and services will be sold; to determine, plan and control oper- ations, including production requirements; to select, discontinue and change materials, processes and components; to sell, merge, consolidate or lease in whole or in part free of the liabilities of this Agree- ment; to establish, abolish, revise or continue poli- cies, practices or procedures for the conduct of the operation; to reorganize or combine any operation; to determine or redetermine the number, location, relocation and type of its equipment, facilities and operations, the types and distribution of work within locations, and the processes services, equip- ment, technology, technical methods and proce- dures and materials to be utilized; to establish and abolish use of equipment, technology, technical methods and procedures; to continue or to discon- tinue operations and services; to introduce new or improved equipment, methods, facilities, technol- ogy, technical methods and procedures; to deter- mine starting and quitting times and the number of hours per day and per week operations shall be car- ried on; to determine the extent to which facilities and equipment will be operated; to expand, limit, cease or curtail operations; to determine whether and to what extent the work required in its business shall be performed by employees covered by this Agreement; to select and assign work to employees in accordance with requirements determined by management; to determine the existence, amount or lack of work; to increase or decrease the working force; to make and enforce reasonable rules for the maintenance of technical standards, discipline, effi- ciency or safety; to hire, promote, demote, transfer, lay off and recall employees; to classify and reclas- sify employees; to determine policies affecting the selection of employees; to assign and reassign em- ployees to duties and hours of work; to determine safety, health and property protection measures for the operation; to maintain order and efficiency in its operations; to discharge, suspend and otherwise dis- cipline employees; to determine the qualifications 713 DECISIONS OF NATIONAL LABOR REI.ATIONS BOARD required to supervise and direct employees in the performance of their duties; to set standards to insure the proper and efficient use of the working force and equipment; and otherwise to take such action as management may determine to be ne- cesssry for safe, orderly, efficient and economical operations. B. It is specifically agreed that the enumeration of certain management prerogatives listed above shall not be deemed to exclude other management prerogatives not specifically enumerated above, and it is further specifically agreed that all of the rights, powers or authorities vested in the Company, except those specifically abridged, delegated, de- leted or modified by the express terms of this Agreement, are retained by the Company. In no event shall any right, function or prerogative of management ever be deemed or construed to have been modified, diminished or impaired by any past practice or course of conduct, or otherwise than by an explicit provision of this Agreement. The fundamental grievance procedure of section XV was preserved with small but significant additions to the language. After repeating preliminary phraseology creat- ing the board or arbitration and impartial umpire, Re- spondent's new proposal expressly set forth the right of parties to appear by counsel and submit written briefs, while any grievance arising out of discharge or discipline should not involve the principle of "proof beyond a rea- sonable doubt," but should instead apply "preponderance of the evidence," as the burden of proof. Further, the impartial umpire was to save no authority" to ignore, add to, subtract from, alter, amend, charge (sic) or nulli- fy the terms of this Agreement in any way or to render an award which is in conflict with any of the provisions of this Agreement." It was also proposed to reduce the time limit for the filing of nondisciplinary grievances to 5 days of an aggrieved party's knowledge of the event and to require that the arbitration board be invoked within only 2 working days rather than within 4 working days, and to use a different measure of timeliness. Relatedly, the written notice of employing an impartial umpire was to be served in only 5 working days following arbitration board meeting. Procedural time limits were dealt with as follows: Time is of the essence, in all of the grievance and arbitration procedures in this agreement. Failure to comply with and fully satisfy any of the said time limitations by the aggrieved party constitutes waiver of the alleged grievance and all rights and claims underlying the grievance. The above time limits may be extended by written mutual agree- ment between the Union and the Company. The new proposal expanded on Respondent's with- drawn language for a section XVII as follows: A. (1) The Union and the Company have provided in this Agreement an orderly and rational way of resolving disputes covering the terms of this con- tract and involving employees in this bargaining unit. Both the Company and the Union pledge to utilize the grievance procedure wherever applicable and declare their opposition to lockouts and strikes in attempting to resolve such disputes. (2) No Lockout. The Company agrees that during the term of this Agreement it will not cause, permit or engage in any lockout of its employees covered by this Agreement. (3) No Strike. During the term of this Agreement there shall be no strike (sympathy or otherwise), slowdown, sick-in, work stoppages, picketing, boy- cotting, or other restriction of or interference with operations of this Company by employees covered by this Agreement or by the Union. Any employee covered by this Agreement engaging in any such activity will neither earn, accrue, nor receive any wages or other benefits that may otherwise occur or accrue during that time, and the Company may discharge or otherwise discipline any such employ- ee and said discharge or other discipline will not be subject to the grievance/arbitration provisions of this Agreement, except as to the issue of participa- tion in such conduct. (4) The Union and the Company agree that nei- ther it nor its officers or agents will engage in, cause, encourage, permit, condone or sanction any conduct specifically precluded by this Section and will make every reasonable effort to discourage and terminate such activity. (5) The Company shall have the right to full judi- cial relief, including injunctive relief, for violation of this Section. Additionally, a second part of now proposed section XVII, new in concept, provided for "Expedited No Strike Grievance Arbitration" and was to be applicable where the Company believed a violation of no-strike provisions had occurred and in connection with which three named arbitrators ' were named as primary persons eligible to hear the dispute within a basic 48-hour period after selection and then render an immediete bench deci- sion or a written one within 24 hours. On September 17 Bedwell wrote to Parra again as fol- lows: As I have previously advised you, the Company hopes to reach an agreement with your union as soon as possible. Although we have not previously been able to reach an agreement, I am confident that we will be able to do so. I am therefore renewing my request for a meeting on Sept. 19, 1979 at a time and place of your choice. At this meeting, I hope to explain further the Company's current proposals and the circumstances which have contributed to those pro- ' One of tihe individuals is a former administrative law judge of the San Francisco Branch Office, Division of Judges, National Labor Rela- lions Iloard, the second holds membership in the National Academy of Arhitrators, and the third is nationally promilent in the Field of labor dis- putes resollution 714 PITTSBURiH DES MOINFS STtIEI. CO posals. The Company will certainly consider any counter proposals the Union may have. Please advise me immediately when and where we can meet. Immediately upon receipt of the Bedwell September 17 letter, Parra telephoned him to state that the Union was not willing to reopen negotiations. Bedwell immedi- ately, then, sent Parra a mailgram which read: This is to confirm our telephone conversation of today in which you informed me that the Union will not attend a negotiating session which I pro- posed for tomorrow. You also advised me that the Union does not intend to negotiate further with the Company. I regret the Union's position. The Company is anxious to meet with you for pur- poses of negotiating the contract. Although we ap- parently have some differences, I believe that through negotiations, these differences can be re- solved. We are ready to move in good faith to reach an agreement. You have not even given us a chance to explain our proposal, or to hear any counter proposals you may have. The Company remains ready and willing to negoti- ate with the Union at a time and place of your choice. We want to reach an agreement with you. The final communication of that day was Macey's letter to Bedwell reading: Mr. Parra has turned over to me your telegram of September 18, 1979. Both my client Teamsters Local No. 439 and myself have consistently in- formed you that there is an existing Collective Bar- gaining Agreement between my client and your company. We have advised you that negotiations are not in order at this time because of the existence of this Collective Bargaining Agreement. Both this office and my client have informed you that as a compro- mise of ome apparent minor differences, the Union would be willing to meet with your company's rep- resentative to see if these minor differences relating to your denial of the existence of a contract could be worked out. This relates to an attempt to avoid extended litigation and does not relate to any new negotiations relating to a contract. As long as your company insists on entering into negotiations for the execution of a Collective Bargaining Agreement, I have advised my client not to meet with your com- pany, however, in an attempt to resolve the differ- ences relating to the dispute as to whether there is a contract, my client would be willing to meet, keep- ing in mind, of course, that it is my client's position that there is a contract. On September 25, Bedwell wrote Parra as follows: I am writing to once again request that the Union resume negotiations with the Company so that we may reach an Agreement. I have previously for- warded to you the Company's proposal for a new Agreement. and I am still awaiting an opportunity to discuss that proposal with you, and to consider any counter proposals the Union may have. I am at a loss to explain the Union's assertion that we previously reached an Agreement. As you well know, the Company withdrew its previous proposal by letter dated July 2, 1979. That proposal was never accepted by the Union prior to its withdraw- al. It simply is not true that the parties ever reached an Agreement. However, the Company remains eager to negoti- ate a new agreement with you. For that reason, I have set aside this Friday, September 28, 1979, to meet with you to negotiate a new contract. I hope that you will be willing to meet that day at a time arid place of your choice If you are unable to meet on Friday. please let me know an alternate date onil which you can meet. I look forward to hearing from you shortly. Macey answered this by mailgram dated September 26, which read: In reply to your letter of September 25, 1979 Team- sters Local #439 has consistently taken a position that it has a contract with your company. As previ- ously stated to avoid litigation they would be glad to discuss and compromise minor variations which might be acceptable to the employer and the Union. On this basis Mr. Parra will meet with you on Monday, October I at agreed upon location and time. Please contact Mr. Parra to confirm the time and place. On October 10 the parties met in an unsuccessful ne- gotiating session. Following this, Bedwell wrote Parra on October 23 with a letter reading in part: In order to indicate to you our desire to move to reach a new agreement, I am proposing by this letter the following concessions in the Employer's current proposal: I. The revision of Section XV (Grievance proce- dure) to conform to Section XV of the Union's last proposal which was dated August 22, 1979. This concession is being made on both the Plant and Driver Agreement proposals. The Company agrees to the Union's proposal on Section XV. 2. The revision of Section IV to include Section D, (Picket line) as proposed by the Union in its August 22, 1979 proposal. This concession is also being made in both the Plant and Driver Agree- ments. The Company agrees to include Section IV (D) as proposed by the Union. In light of these concessions, I hope that the Union will reconsider and work together with us to 715 DECISIONS OF NATIONAL LABOR RELATIONS BOARD reach a new agreement. The Company stands ready and willing to meet with you. Please let me know a time and place that is convenient to the Union. This was in turn answered by Macey on October 25, who wrote: Mr. Parra has turned over to me your letter of October 23, 1979 for a reply. As your company is well aware, it is the Union's position that it has a contract with your company. The Union was willing, as a matter of compromise, to see if the differences that have arisen between your company and the Union concerning the exist- ence of a contract could be resolved. Your company has consistently ignored that this is the Unions' position and that the Union is not and will not enter into any negotiations with your com- pany other than on the basis of a compromise for an existing contract. This case was heard by the General Counsel on the express theory of "surface" or "bad faith" bargaining (G.C. Br. p. 2). Embodied in this theory were further as- sertions that focused action on July 12 was a component of bad-faith dealing, while new contract proposals on September 11 were actionably regressive. As to all such allegations there is utter lack of merit. The course of negotiations here is devoid of bad-faith indicators as these typically emerge when an employer tampers with and teases the bargaining process. Re- spondent's pre-July 12 conduct was classically hard, re- sponsible bargaining, and in fact provided most of the impetus to test out whether true progress could be made between the parties. Parra's late May dealings with Ware were little more then a clumsy attempt to split and con- fuse management functionaries, an effort that failed com- pletely as Ware did nothing to disturb his side's carefully drawn posture. Parra's own uncontradicted version of what Ware said to him by telephone on or about June 10 does not even attribute a flat dropping of no-strike lan- guage to Respondent. 6 Further, the dynamics of orderly return and job dovetailing as to strikers was carried out as the Union did little more than figuratively yelp about not having been granted a hoped for deletion of contract phraseology. The radical change in circumstance as to operational staffing within the affected bargaining units, coupled with the Union's seeming disinterest in genuine settlement of the contract question, simply justified the total withdrawal of proposals as they had stood on July 12. There is no more reason to expect that labor contract offers will be held open beyond a reasonable time period than there is to expect that this test not be used for other e In a related vein, I discredit the testimony of ames Asher to the effect that Bedwell spoke of having a belief that union members may have voted on the wrong contract. Bedwell credibly denied this and I find no reason to accept Asher's testimony as being more than complete- ly erroneous. relationships that arise in business operations. The action was thus justified as to permit a fresh view of prospects looking toward ultimate agreement, particularly where the Union was contenting itself with a battle of words over what was arguably moot and became so confirmed through the filing of an unmeritorious charge bottomed on Section 8(d) of the Act. As there is no hint from the evidence that Respondent would have done other than resume thorough, incisive bargaining had request been made, its technical clearing away of existing proposals by Bedwell's July 12 letter is not a violation. There is no doubt, as shown by subsequent events in October, that Respondent at least was quite ready to acknowledge es- sential framework of the expired agreement as still viable and the most obvious source of much structure and con- tent needed for any new agreement. After the unsuccessful attempt to enlist this Regional Office in salvaging its listless performance, the Union then sought to breathe life into fantasy by the amateurish delivery of signed documents reflecting a long repudiat- ed contract. This event of late August was promptly re- jected, and notwithstanding the clean need to finally and forcefully deal with the reality of resuming negotiations from an unpromising tactical position, the Union dallied still further. As such final timespan passed, counsel to Respondent busied themselves in draftsmanship, and from this effort the elaborate phraseology of September II emerged on the topics of management rights, no-strike and union security. The first two of these are arguably without taint, as they constitute no more than proposals. The extensive, legalistic phrasing of the management rights clause could be swept away in a single handshake, while that which addresses a no-strike problem was simi- larly of mere tentative character and fully amenable to modification through table bargaining. See Times-Herald. Inc., 249 NLRB 13 (1980). A comparable appraisal ob- tains as to the maintenance of membership proposal, which in the circumstances was at least an allowable at- tempt at gaining the Union's attention and at most an employer-oriented entitlement reflecting new sentiment among bargaining unit personnel. ' In either event there was no abiding regressiveness to the matter, and as Bed- well guilelessly testified, Respondent harbored no real expectation that it would survive the expected challenge. The entire significance of this litigation is captured in the ambiguous syntax of Macey's final letter, one in which "compromise" is admittedly still sought by a labor orga- nization having no better claim to responsible standing as a party yet enmeshed in contract renewal bargaining. [Recommended Order omitted from publication.] 7 It is unnecessary to reach Respondent's alternate theory premised (on Olin Corporation, 248 NLRB 1137 (1980), as regarding a probable lack (lf majority support for the Union by the point in time of September II. IThat entire doclrine is academic to this case i light of Respondent' fun- damental innocence in making the maintenance of membership proposal as and when it did. 716 Copy with citationCopy as parenthetical citation