Pms Corp.Download PDFNational Labor Relations Board - Board DecisionsFeb 5, 1987282 N.L.R.B. 1012 (N.L.R.B. 1987) Copy Citation 1012 DECISIONS OF NATIONAL LABOR RELATIONS BOARD Mar Del Plata Condominium Association , Inc.; and Property Management Services Corporation, d/b/a PMS Corporation and Hotel, Motel, Restaurant & Hi-Rise Employees & Bartenders Union, Local 355, Hotel & Restaurant Employ- ees' & Bartenders' International Union, AFL- CIO. Case 12-CA-10621 5 February 1987 DECISION AND ORDER BY MEMBERS JOHANSEN, BABSON, AND STEPHENS On 19 July 1984 Administrative Law Judge Marvin Roth issued the attached decision. The Re- spondent, Mar Del Plata Condominium Associa- tion, Inc., filed exceptions and a supporting brief, and the General Counsel filed cross-exceptions and a supporting brief. The National Labor Relations Board has delegat- ed its authority in this proceeding to a three- member panel. The Board has considered the decision and the record in light of the exceptions and briefs and has decided to affirm the judge's rulings, findings, i and conclusions2 and to adopt the recommended Order.3 i We correct the following inadvertent errors of the judge (1) in sec. I, par. 4, the sentence beginning "The inference is warranted, and I so find, that such regards . " is corrected to read "The inference is war- ranted, and I so find, that such records ", (2) in sec. IV,A, the heading beginning "The discharge of Randy Garcia" is corrected to re- flect that "Rudy Garcia" was discharged; (3) in sec IV,B, par 1, the sen- tence beginning "In addition Rudy Garcia, who was subsequently re- placed by `handyman' Rogelio Gonzalez . ." is corrected to reflect that `handyman' Rogelio "Gomez" replaced Garcia; and (4) in sec IV,B, par 5 the sentence "However he corroborated or failed to deny much of Portuando's testimony" is corrected to reflect that Schwab's testimony was corroborated or not denied. 2 The Board recently affirmed assertion of jurisdiction over condomin- iums in Imperial House Condominium, 279 NLRB 1225 (1986), Although Member Johansen dissented in that case, he considers himself bound here by Imperial House, and joins the panel in asserting jurisdiction a Contrary to the judge, we find that Respondent PMS Corporation, like Respondent Mar Del Plata Condominium Association, violated Sec. 8(a)(3) and (1) by discharging Rudy Garcia on 27 January 1983 and Sec. 8(a)(1) by coercing, interrogating, and threatening employees Juan Ramon Gonzalez, Francisco Enrique Valdez, Manuel ("Monolo") Gonza- lez, Antonio Leyva, Jorge Del Vecchio, and Luis Leiva in January and February 1983 Although these 8(a)(l) and (3) violations occurred more than 6 months before Respondent PMS was named as a charged party, we agree with the General Counsel that Respondent PMS nonetheless is liable Thus, the liability of Respondent PMS cannot be considered sepa- rate and apart from that of its joint employer Mar Del Plata. As we stated in Ref Chem Co, 169 NLRB 376, 380 (1968), enf. denied on other grounds 418 F 2d 127 (5th Cir 1969): "As joint employers, each is re- sponsible for the conduct of the other and whatever unlawful practices are engaged in by the one must be deemed to have been "committed by both . . [T]he nature of the joint-employer relationship is such that the charge against [one joint employer] also constitute[s] a charge against [the other] " Accord- Photo Sonics Inc., 254 NLRB 567, 570 fn. 2 (1981), enfd 678 F.2d 121 (9th Cir. 1982) Inasmuch as these 8(a)(1) and (3) charges were timely filed against Respondent Mar Del Plata, we find that its joint employer, Respondent PMS, similarly is liable for these unfair labor practices. ORDER The National Labor Relations Board adopts the recommended ,Order of the administrative law judge and orders that the Respondents, Mar Del Plata Condominium Association, Inc., Miami Beach, Florida, and Property Management Serv- ices Corporation, d/b/a PMS Corporation, Miami, Florida, their officers, agents, successors, and as- signs, shall take the action set forth in the Order. Although we have reversed these 8(a)(1) and (3) findings, it is unneces- sary to modify the judge's Order, which already holds both PMS and Mar Del Plata liable for these violations. Eduardo Soto, Esq. and Farrell Tate, Esq., for the General Counsel. George L. Combaluzier, Esq., of Miami, Florida, for Re- spondents. Robert Schwab, Esq., of Miami Beach, Florida, and Rich- ard Siwicka, Esq., of Miami, Florida, for the Charging Party. DECISION STATEMENT OF THE CASE MARVIN ROTH, Administrative Law Judge. This case was heard ,at Miami, Florida, on December 5 through 8, 1983, and January 9, 1984. The charge and amended charge were filed on March 17 and August 18, 1983, re- spectively,,by Hotel, Motel, Restaurant and Hi-Rise Em- ployees and Bartenders Union, Local 355, Hotel and Restaurant, Employees' and Bartenders' International Union, AFL-CIO (the Union). The complaint, which issued on ,r lay 2, 1983, and was amended on September 9, 1983,, and at the hearing, alleges that Mar Del Plata Condominium Association, Inc. and Property Manage- ment Services Corporation, d/b/a PMS Corporation (al- leged) joint, employers (Mar Del Plata and PMS and col- lectively Respondent), violated Section 8(a)(1), (3), and (5) of the National Labor Relations Act. The gravamen of the complaint in sum is that Respondents allegedly: (1) properly recognized the Union as the collective -bargain- ing representative of their employees in an appropriate unit , but subsequently failed and refused to furnish the Union with the names, job classifications, and wage rates of their employees, withdrew recognition from the Union, and subcontracted out the work of the unit em- ployees; (2) engaged in coercive interrogation and threats of reprisal, promises of benefit and coercive state- ments in order to discourage employee support for the Union; and (3) discharged employee Rudy Garcia on January 27, 1983, and employees Jose Veliz, Rafael Leyva, Luis Leiva, Robert Hibbs, Jorge Del Vecchio, Manuel Gonzalez, Gilberto Rodriguez, Francisco Enri- que, Antonio A. Leyva, Dean E. Duncan, Alberto Perez, and Juan Ramon Gonzalez on March 11, 1983,1- because of their support for the Union and in order to discourage i All dates herein are for the period from July 1, 1982, through June 30, 1983, unless otherwise indicated. 282 NLRB No. 131 MAR DEL PLATA CONDOMINIUM 1013 employee support for the Union. The Respondents by their respective answers deny i he commission of the al- leged unfair labor practices, Respondents specifically assert that Mar Del Plata is not subject to the jurisdic- tion of the Board. PMS further asserts that by reason of such lack of jurisdiction, the Board does not have juris- diction over PMS in the present case, and that those alle- gations of the complaint pertaining to alleged unfair labor practices occurring more than 6 months prior to filing and service of the amended charge are time-barred by Section 10(b) of the Act. (The original charge named only Mar Del Plata as a Respondent.) All parties were afforded full opportunity to partici- pate, to present relevant evidence, to argue orally, and to file briefs. The General Counsel and Respondents each filed a brief. On the entire record in this case2 and from my observation of the demeanor of the witnesses, and having considered the briefs and arguments of the par- ties, I make the following FINDINGS OF FACT 1. JURISDICTION WITH RESPECT TO RESPONDENTS PMS, a Florida corporation with an office and place of business in Miami, Florida, is and has been at all times material engaged in the property management business. PMS admits, and I so find, that in the course of its busi- ness operations it annually purchases and receives at its Miami facility products, goods, and materials valued in excess of $50,000 directly from points outside the 'State of Florida. Julio Gonzalez-Portuando, who is the presi- dent and sole stockholder of PMS, testified in sum that PMS has had and continues to have its own employees.3 Portuando's secretary, Christian Mahoney, who was pre- sented as Respondents' witness in this proceeding, identi- fied herself as an employee of PMS. Therefore, regard- less' of whether PMS was or is the sole or joint employer of employees working at Mar Del Plata, I find that PMS is and was at all times material an ' employer engaged in commerce within the meaning of Section 2(2), (6), and (7) of the Act. Mar Del Plata is and has been at all times material, a not-for-profit Florida corporation (also known as an "As- sociation") organized and existing under the Florida Condominium Act (Chap. 718, Laws of Florida). Mar Del Plata maintains an office at a residential condomini- um building in Miami Beach, Florida. The building con- tains 151 dwelling units, and the owner of each unit is by reason of such ownership a member of the Association and shareholder in the condominium property, Some of the units are rented by the owner. Some of the owners are Latin-American nationals. The, Association, i.e., the corporate entity, is under law and under its Declaration 2 Certain errors in the transcript has been noted and corrected 3 Proper Spanish usage would require that I refer to Gonzalez-Por- tuando as "Gonzalez." However, the record evidence indicates that at times material there were three employees named Gonzalez working at Mar Del Plata. Therefore, in order to avoid confusion I shall (with due apology) refer to Gonzalez-Portuando as "Portuando." As for the three employees, I shall refer to Juan Ramon Gonzalez as "porter Gonzalez," Manuel Gonzalez by his nickname "Monolo," and Rogeho Gonzalez as "bartender Gonzalez," unless the context clearly indicates to whom I am referring of Condominium and By-Laws, responsible for the man- agement, maintenance , and operation of the "common elements" -of -the condominium property, i.e., nomunit property, and the cost of same is a common expense. The Association may contract out the performance of such functions. The affairs of the Association are man- aged by its board of directors (elected by the members at an annual meeting), and administered by its officers, who are chosen by the board. The board submits an annual budget (including assessments- against owners to defray the costs and expenses of the condominium) to, the mem- bership for their approval. Nearly all of Mar Del Plata's income is derived from assessments . Mar Del Plata's income statement for the calendar year 1982 shows "total revenue from operations" of $637„067,21 of which $631,068.24 consisted of "residential assessment income." Mar Del Plata's proposed budget for 1983, which was approved and adopted on December 23, 1982, projected total assessment income in the same amount. There was no increase in assessment . The 1983 budget provided $135,600 for salaries and, wages. The General Counsel and Mar Del Plata stipulated that during 1982 Mar Del Plata paid $165,000 to Florida Power and Light Compa- ny for electricity, and paid $48,000 to Peoples Gas System for gas services, and that both companies are en- gaged in commerce within the meaning of the Act. The General Counsel and Mar Del Plata further stipulated that during 1982 Mar Del Plata purchased and received at the condominium goods and materials worth $5000 from Sam Hamilton, Inc. of Miami, Florida, which in turn received those goods and materials directly from outside the State of Florida. Mar Del Plata does not dis- pute (through the testimony of its vice president and di- rector, Lilia Marroquin, and its director, Margaretta Gia- mattei) that during the period from January 1 through March 11, when the alleged unfair labor practices took place,, it employed service employees at the condomini- um. I find that at all times material Mar Del Plata was an employer within the meaning of Section 2(2), (6), and (7) of the Act, and that it would effectuate the purpose of the' Act for the Board to assert its jurisdiction in this case. In 30-Sutton Plate Corp., 240 NLRB 752 (1979), the Board held that it would assert its jurisdiction over resi- dental cooperative and condominiums. The Board specif_ ically held (at 753): Today's cooperatives and condominiums are in- volved in commercial activity on a large scale. Al- though they may very in size and in the types of services offered to occupants, many provide such amenities as reception and answering services, 24- hour security and valet services, laundry and stor- age space, covered, parking areas, medical facilities and day-care centers, swimming pools, tennis, courts, golf courses, saunas, playgrounds, and func- tion and recreation rooms. Thus a typical enterprise may hire more than a score of employees, who per- form a variety of functions. For these employees, the cooperative or condominium must meet a pay- roll which may include tax, insurance, and work- men's compensation payments. The enterprise will 1014 DECISIONS OF NATIONAL LABOR RELATIONS BOARD also typically purchase maintenance supplies and energy for heating and cooling and make payments covering mortgage costs, sewage and water fees, and real estate taxes. Sometimes the cooperative or condominium hires an agent to manage the property or contracts out certain maintenance and support tasks, thereby utilizing outside profitmaking enter- prises. All these activities indicate that cooperatives and condominiums are "engaged in the business of concerted home management and maintenance. Fur- thermore, this business impacts on interstate com- merce, for it is dependent upon the free flow of sup- plies and labor and in this sense necessarily involves other institutions which operate in interstate com- merce. The Board's -discussion of present day condominiums is substantially descriptive of the operations of Mar Del Plata. Nevertheless, Respondents contend that the Board should reconsider and reverse 30 Sutton Place and revert to its prior policy of declining to assert jurisdiction over residential condominiums, which policy was set forth in Point East Condominium Owners Assn., 193 NLRB 6 (1971). Respondents point out that in 30 Sutton Place, which was a representation proceeding, both the employ- er and the petitioning union requested the Board to assert its jurisdiction. However, the Board did not base its decision on such consent. Rather, the Board made an independent evaluation of the situation and, on the basis of its own analysis, made a policy determination that the Board should assert jurisdiction over residential coopera- tives and condominiums. In support of their position, Re- spondent presents a variety of arguments, some of which are inconsistent. On the one hand, Respondents argue (Br. 23) that the employees involved were employed "in the domestic services of the families who live at Mar del Plata" and thereby exempt from coverage as employees under Section 2(3) of the Act. On the other hand, Re- spondents argue (Br. 25) that Mar Del Plata is a political subdivision of the State of Florida, and therefore exempt from coverage under the Act. Both arguments are incor- rect. The first argument was specifically rejected by the Board in 30 Sutton Place (240 NLRB at 753 fn. 6). Indeed, both the Florida Condominium Act and the con- dominium documents discussed above, repeatedly em- phasize that the corporate entity, and not the individual owners, are responsible for the maintenance, manage- ment, and operation of the common elements of the con- dominium. In the present case, the employees involved were engaged in performing service work in connection with those common elements. Condominiums in general and Mar Del Plata in particular also fail to meet the defi- nition of a political subdivision as set forth in the lead case of NLRB v, Natural Gas Utility District of Hawkins County, 402 U.S. 600, 604, 605 (1971). In that case, the Supreme Court held that the statutory exemption for po- litical subdivisions is limited to entities which are "either (1) created directly by the state, so as to constitute de- partments or administrative arms of the government, or (2) administered by individuals who are responsible to public officials or to the general electorate." In the present case, Mar Del Plata is a privately owned, operat- ed, and controlled corporation which like other private corporations is chartered under state law, albeit under a statute governing a specific type of private corporation, i.e., condominiums. Mar Del Plata's directions are chosen by the corporation's shareholders and are responsible only to them, and its officers are responsible to the board. Respondents also urge that the Board should de- cline jurisdiction because of the alleged difficulties in- volved in persuading condominium owners to agree to increased assessments. However, difficulties in financing have never been considered as a valid reason for the Board to decline jursidiction. In 30 Sutton Place at fn. 5, the Board pointed out that it has repeatedly asserted its jurisdiction over nonprofit operations which depend heavily on governmental grants or charitable bequests for their financing, i.e., factors which, unlike those in the present case, are completely beyond the control of the employer. Indeed, complex financial arrangements in the private sector of the economy, which were relatively un- known prior to the commercial revolution, were a prin- cipal reason why labor unions came into existence. See Commons, et al., History of Labour in the United States, v. I, Introduction (1918-1935). At the hearing Respond- ents offered to prove that the Union was targeting con- dominiums for unionization because of a loss of tourism in Miami Beach. If so, then this would be an additional reason for the Board to continue to assert its jurisdiction over condominiums. Otherwise, a substantial number of workers, i.e., those who formerly were or otherwise would be employed in hotels and restaurants, but now work in condominiums, would be deprived of the protec- tion of the Act. The predictable result would be the kind of industrial strife and unrest which the Act was de- signed to avoid (in fact, the employees in the present case picketed the condominium after their termination). In 30 Sutton Place the Board held that it would limit its assertion of jurisdiction to those enterprises which re- alize at least $500,000 gross annual revenue, i.e., the same standard which the Board applies to the apartment house industry. Notwithstanding Mar Del Plata's own records, discussed above, Respondents' contend, through the tes- timony of Director Giamattei, that Mar Del Plata failed to meet this standard because an unspecified number of owners were delinquent in paying their assessments. The argument is without merit. The General Counsel subpoe- naed Mar Del Plata to produce all records showing gross revenues for the period from January 1, 1982, through October 31, 1983. No records were produced to show dues delinquencies or, any other figures which would detract from the reported gross revenues for 1982 and projected gross revenues for 1983. The inference is warranted, and I so find, that such records would have failed to substantiate Giamattei's assertions.4 Moreover, in determining the applicability of the Board's commerce standards, such delinquencies would not detract from gross revenue. Rather, they constitute accounts receiva- 4 In response to a leading question from Respondent's counsel, Giamat- tei testified that she thought that more than 25 owners were delinquent Assuming that 25 owners of average size units were delinquent for a full year, this would still not reduce Mar Del Plata's cash income below the $500,000 level. MAR DEL PLATA. CONDOMINIUM 1015 ble, which, together with cash received, constitute the condominium's gross income. It is the total volume of the operation, and not simply those payments actually re- ceived, which determines the applicability of the Board's standards. See Jos. McSweeney & Sons, 119 NLRB 1399, 1400 (1958) (involving application of outflow standards); see also M CE. of East St. Louis, 226 NLRB 493 (1976), holding that in determining the applicability of the retail gross volume of business standard, the Board will in- clude the volume of purchases by welfare recipients who did not themselves pay for such purchases. I further find that the operations of Mar Del Plata affect commerce within the meaning of the Act. Mar Del Plata's indirect purchase of $5000 worth of goods from outside the State of Florida, plainly is well above de minimis. See NLRB v. Inglewood Park Cemetery Assn., 355 F.2d 448 (9th Cir. 1966), cert. denied 384 U.S. 951; NLRB v. Aurora City Lines, 299 F.2d 229, 231 (7th Cir. 1962). Additionally, as indicated, Mar Del Plata annually purchases over $200,000 worth of gas and electricity from utility compa- nies which are engaged in commerce. See 30 Sutton Place, 240 NLRB at 753-754. The next question presented concerns the alleged status of Mar Del Plata and PMS as joint employers. As that question involves some consideration of the merits of the case, and also involves the operations or alleged operations of another firm, I should defer resolution'of the question at this point. I shall also defer consideration of the propriety of the alleged bargaining unit. II. THE LABOR ORGANIZATION INVOLVED The Union is a labor organization within the meaning of Section 2(5) of the Act. III. THE RELATIONSHIP BETWEEN MAR DEL PLATA AND PMS AND THE NATURE OF THEIR OPERATIONS Portuando is president and sole stockholder of PMS. He is also president and sole stockholder of another cor- poration, Miami Domestic Services, Inc. (MDS). PMS and MDS share common officers, and have the same sec- retary, receptionist, and telephone number. (There are two doors, marked FMS and MDS respectively, but both lead to the same office suite.) They each have their own stationery and file separate tax returns. Portuando is actively involved in running the day-to-day operations of both firms. PMS and MDS are involved in complemen- tary business operations, to the extent that persons deal- ing with either or both corporations, including Por- tuando himself, had difficulty in telling one from an- other. (As a witness, Portuando demonstrated a perfer- ence to refer to "we" rather than specify PMS or MDS.) Portuando testified that PMS 'has management contracts with some 80 condominium associations , none of whom are parties to collective-bargaining contracts. At one point Portuando testified that throughout 1981 and 1982 and earlier, PMS performed the managerial functions for the condominiums, but would contract with MDS to perform the maintenance work. At another point Por- tuando testified further that each corporation has its own employees, but that some employees of PMS perform work for MDS. According to Portuando, employees of MDS do not perform work, for PMS. As will be dis- cussed, this latter assertion contradicts Portuando's asser- tions with regard to the present contractual relationship between Mar Del Plata and the two compaines. Portuando testified that beginning in 1981, MDS per- formed management services for Mar Del Plata pursuant to written contract, but that PMS had no contractual re- lationship with Mar Del Plata prior to January 7, 1983. The date is significant in that the General Counsel and Respondents, respectively, each introduced a contract which was ostensibly executed on that date. The General Counsel presented in evidence an "association service agreement" between Mar Del Plata and PMS dated Jan- uary 7, 1983, and effective by its terms from that date until February 28, 1984, unless canceled by either party on 90 days' notice. Under this agreement, Mar Del Plata employed PMS as its "exclusive manager" with full au- thority, among other things, to supervise employees and subcontractors, and to hire employees and contractors "to carry out its duties under this agreement," which duties included, among other things, "full responsibilities for the management of the Association's affairs' on a rou- tine basis," regular and preventive maintenance sched- ules, regular property' inspections , job descriptions, and logging of incoming calls. Portuando testified that the contract, which makes no reference to MDS, was still' in effect at the time of the present hearing. Respondents presented in evidence a "property service agreement" os- tensibly executed on January 7 by Mar Del Plata and MDS (through its comptroller) to commerce on March 11, 1983, subject to cancellation by either party on 30 days' notice. The agreement provided that MDS would furnish Mar Del Plata with the services of one chief en- gineer, one secretary-receptionist, one handyman, one bartender, four valets, and two porters. If MDS and PMS were in fact two separate and distinct business enti- ties, then the MDS agreement would contradict and vio- late the terms of the PMS agreement because, under the PMS agreement, only PMS had exclusive discretion to contract for services at the condominium. According to Portuando, he decided to separate management from maintenance functions, with PMS performing the former and MDS the latter, because under, the policies of a trade association to which he belonged,, management firms should not themselves perform maintenance work be- cause this would result in a conflict of interest. Even apart from Portuando's own 'admission that MDS per- forms both management and maintenance services, Por- tuando's explanation makes no sense. As PMS and MDS were commonly owned and controlled, there would be a conflict of interest even if the functions were divided be- tween them. In response to prodding from Respondents' counsel, Portuando testified that the MDS contract was simply a continuation of an existing relationship between MDS and Mar Del Plata, but which provided for differ- ent services. In fact, it was the PMS contract which in- volved the continuation of a contractual relationship with Mar Del Plata, and MDS did not appear on the scene at Mar Del Plata until March 11, 1983. Even Por- tuando admitted at one point that PMS began perform- ing management services for Mar Del Plata in 1981. Mar 1016 DECISIONS OF NATIONAL LABOR RELATIONS BOARD Del Plata Director -Giamattei testified that PMS was the manager of the- condominium at least since December 1982, when she became a member of the board of direc- tors. (In response to persistently leading questions from Respondents' counsel, Mar Del Plata Vice President Marroquin testified that MDS always managed the build- ing. However, as indicated, her testimony was contra- dicted by Giamattei. In its answer to the complaint, Mar Del Plata admitted that "PMS exercised control over labor relations policy at the condominium.") Because of his extensive business responsibilities, Por- tuando was not able to regularly oversee operations at the condominium. Portuando designated a "supervisor" (diamattei's words) Joaquin Torralbas, who regularly came to the condominium and who, among other respon- sibilities, brought the employees their paychecks.5 It is undisputed, and indeed both Portuando and Giamattei so indicated in their testimony, that the paychecks were co- signed by a director of Mar Del Plata and by Portuando on behalf of PMS.6 Until October 1982, Walter Hughes was building manager and in charge at the condominium, with authority to hire, fire, and direct employees in their work. In October 1982, Portuando in his capacity as president of PMS and management agent for Mar Del Plata (as indicated in correspondence between Portuando and Mar Del Plata) recommended that the position of building manager be eliminated and its functions divided among the "supervisor of PMS," i.e., Torralbas , the engi- neering office, and a new position of customer service di- rector. Mar Del Plata, through its then president, con- curred and authorized Portuando to terminate Hughes, which he did.7 Thereafter, Chief Engineer, Hernandez became the immediate supervisor of the employees at the condominium. Hernandez began working at the condo- minium for Force Federal, a security service (Respond- ents' arrangements with security services will be dis- cussed at - a later point in this decision). In September 1982, after Hernandez was interviewed by Board mem- bers, Torralbas hired him as chief engineer at Mar Del Plata. In his capacity as chief engineer, Hernandez di- rected the service -employees in their work. Hernandez had authority to and did interview job applicants, effec- tively recommend the hire or termination of employees, which recommendations were made to Torralbas or Marroquin, and hire or terminate employees as author- ized by either or both of them. I find that Hernandez, in' his capacity as chief engineer, was a supervisor and agent of Mar Del Plata and PMS within the meaning of Section 2(11) and (13) of the Act. 5 Apolinar Hernandez , who was chief engineer at Mar Del Plata, testi- fied that Torralbas first said that he worked for MDS, then said that he worked for PMS, and that so far as Hernandez knew, they were both the same company. 6 Marroquin testified that a board member had to sign the paychecks, but that she could not otherwise remember who signed the checks I do not believe her. tr Hughes was subsequently rehired as a doorman at Mar Del Plata, but was again terminated. IV. THE ALLEGED UNFAIR LABOR PRACTICES A. The Discharge of Randy Garcia, and Concluding Findings with Respect to the Relationship Among Mar Del Plata, PMS, and MDS In January 1983, the employees at Mar Del Plata were in a state of turmoil. A number of employees had been fired in December, and the remaining employees were concerned about their job security. The employees were also concerned about their lack of an adequate rest area, and the fact that they were not permitted to use drinking fountains on the premises. (The employees wanted to use the penthouse, but instead were assigned to a room at the end of the sewer line, where trash was kept, which the employees regarded as unfit for their purposes.) The em- ployees, including Assistant Engineer Rudy Garcia, dis- cussed their problems. Garcia, who was hired by Manag- er Hughes in September 1982, performed general mainte- nance and repair work. Notwithstanding his title, Garcia would be more accurately described as a handyman. He was well regarded as an employee, having received two merit pay increases within 45 days of his employment. In December Hernandez told Garcia that he would become chief engineer because, unlike Hernandez, he was fluent in both English and Spanish and had some college education. With regard to the employees' discon- tent, Garcia was particularly concerned about the dis- charge of another employee, which he regarded as unfair. (Garcia had previously complained to Marroquin about the discharge but to no avail.) Garcia was familiar with labor unions, having been president of a local union when he was employed by the Southern Pacific Rail- road. Garcia then proceeded to take two related courses of action. On Monday, January 24, Garcia telephoned Union Assistant Business Manager Robert Schwab. He told Schwab about the employees' problems, and asked how they could get union representation. Schwab ex- plained that the Union would need majority support, and agreed to set up a meeting. The next day, acting on his own initiative, Schwab went to visit the condominium. He met Garcia, who introduced him to other employees. Garcia then saw Lilia Marroquin.,Marroquin was owner of a unit since 1977, a member of Mar Del Plata's board of directors since March 1981, and vice president of Mar Del Plata since December 1982. As the office of presi- dent was then vacant (the last president having resigned), Marroquin was acting as the condominium's chief execu- tive officer. Garcia introduced Schwab to Marroquin as "my union man." They talked about Marroquin's experi- ence with labor unions in Mexico. Schwab said that the employees wanted the Union to represent them. Marro- quin answered that "we have a management agent who handles all those kinds of matters." At Marroquin's re- quest, Chief Engineer Hernandez gave Portuando's name and telephone number. Also at Marroquin's request, Schwab gave her a sample union authorization card. Within 2 days, i.e., not later than the morning of January 27, Schwab telephoned Portuando's office for the pur- pose of setting up a meeting. Marroquin's conversation with Schwab, even apart from any other evidence in this case, indicates that Portuando acted for and on behalf of MAR DEL PLATA CONDOMINIUM 1017 Mar Del Plata in his subsequent dealings with Schwab, and that Mar Del Plata and PMS maintained and admin- istered a common labor policy with respect to the em- ployees at the condominium. On the same day'that Schwab visited Mar Del Plata, he gave union authorization cards to Garcia. In the meantime, Garcia did not wait for developments between Schwab and Portuando to take: their own course.' That same day (January 25) Garcia presented the employees' grievances to, Chief Engineer Hernandez. Garcia asked Hernandez to present the grievances to Mar Del Plata's board of directors, and to tell them that if the grievances were not resolved, the employees would go to the Union. Hernandez agreed to do so. He prepared a list of the grievances, and arranged to meet with four board members that evening. (The members were Marroquin, Giamattei, Rotundo, and Lechter. A fifth member, Wein- statein, was not available.) Hernandez informed Por- tuando of the meeting, and Portuando agreed to the pro- cedure. Hernandez, who was presented as the General Counsel's witness, testified in sum that he informed the board of the employees' grievances, and relayed Garcia's message concerning unionization. However, instead of considering the merits of the grievances, the board mem- bers decided to fire Garcia because he "promoted the problem of the Union." Hernandez testified that on .]January 27 he received a letter from Portuandb, dated January 27, for submission to Garcia, informing him that his position was abolished because the 1983 condominium budget provided for only one engineer , and that he was terminated "effective im- mediately," with 1 week's severance pay. The letter was on PMS stationery. Hernandez gave the letter to Garcia on January 28.8 Hernandez immediately informed Por- tuando that he was resigning his position because he did not wish to become "involved . . . with the conditions that were created," but agreed to remain for another 15 days in order to give time for Portuando to obtain a re- placement. However, Portuando and the board had not yet obtained a replacement ' by the time Hernandez left. Portuando and Marroquin testified in sum that at a board meeting on January 17, Portuando recommended that Garcia be terminated because the 1983 budget did not provide for a second engineer. In support of their testimony, Respondents presented in evidence the alleged minutes of a board meeting on that date, indicating that "the assistant engineer should be replaced by a handy- II Hernandez testified that Garcia was off work on January 27 Garcia testified that he was at work on January 27, that he spoke to Hernandez that morning , that Hernandez immediately met with the board , and that following the meeting Hernandez told Garcia that he made no progress, but that Hernandez did not then inform him of his discharge Garcia fur- ther testified that he learned that evening that he was discharged, and that Hernandez showed him the discharge letter the next day . The evi- dence indicates that one employee signed a union authorization card on January 26, and that Garcia solicited additional cards on January 27 I find in light of the testimony of Hernandez and Garcia and the sequence of, events, that Hernandez met with the board on the evening of January 25, that probably the next morning Heinandez informed Garcia that the meeting was unsuccessful , but did not then inform him of his termination because he had yet been instructed to do so, that the employees there- upon began signing authorization cards, that Hernandez informed Garcia of his termination after receiving Portundo's letter, and that Hernandez showed him the letter on the morning of January 28 man to fulfill `handyman' duties." Marroquin testified that she told Garcia that he could remain at a' lower rate of pay. Garcia denied that he ever received such an offer. It is undisputed that Portuando subsequently of- fered Garcia a job at another location, and that Garcia accepted the offer but later quit that job. At Mar Del Plata, Rogelio Gomez was later hired as a "handyman" to perform the work previously performed by Garcia. I credit the testimony of Hernandez that the board of directors decided to fire Garcia because he initiated the union activity, and that Garcia was consequently fired for this reason. I do not credit the testimony of Marro- quin that she told Garcia he could stay on at a lower rate of pay. Hernandez had no evident reason to know- ingly testify falsely against Respondents. Indeed, Hernan- dez quit his job precisely because he did not wish to become involved in the growing controversy between Mar Del Plata and its employees. Directors Marroquin and Giamattei, in their respective testimony, came close to substantially corroborating much of Hernandez ' testi- mony concerning his meeting with the Board. In Marro- quin's words: He came to my house, to my apartment, by himself and he told me he wants to talk with all of the Board and he went to all of the apartments of the Board of Directors, and it was one afternoon. I do not know which is the date and we received him. And he screamed at us and he hit on the table for telling us what is going on about the union. Giamattei testified that Hernandez told the Board that he was "the only person that was capable of stopping the Union to come," but "we, were not impressed." The 1983 budget, which was approved by Mar Del Plata on De- cember 23, was unchanged from that of the previous year. Payroll expenditure had already been reduced by the elimination of the position of building manager, shortly after Garcia was hired as assistant engineer. If in fact the Company could not afford an assistant engineer, then this fact would have been apparent in October 1982, when Garcia was given pay raises. If in fact the 1983 budget changed the payroll picture in such a way as to compel elimination of the position of assistant engineer, then this fact would have been known to the board of directors when they approved the budget on December 23. Portuando prepared the budget, and therefore he was in a position to know whether the budget allowed for a second engineer. Nevertheless, according to Portuando, he took more than 3 weeks to come to the realization that the condominium could not afford a second engi- neer. If in fact the Board belatedly decided on January 17 to replace Garcia, then it is difficult to see why Por- tuando took 10 days (and shortly after Garcia was identi- fied as the principal union adherent), to' effectuate that decision. If in fact Mar Del Plata and Portuando decided in good faith to eliminate the position of second engi- neer, then it is probable they would have terminated Hernandez and promoted Garcia, in view of the fact that Garcia was regarded as better qualified for the position of chief engineer than Hernandez. It is even more proba- 1018 DECISIONS OF NATIONAL LABOR RELATIONS BOARD ble that they would have offered the position to Garcia when Hernandez tendered his resignation. As indicated, Respondents presented minutes which purported to indicate that Mar Del Plata decided on Jan- uary 17 to replace Gonzalez. This was not the only in- stance in this proceeding in which Respondents pro- ferred writings in the form of minutes, contracts, or nota- tions which purported to substantiate their position, not- withstanding that the writings were of doubtful credibil- ity in the circumstances, and in light of other, more cred- ible evidence. As will be discussed, Portuando admitted in one such instance that his written entry was false. In these circumstances, I am not inclined to accept such writings at their face value. Rather, I find that such writ- ings are reliable only to the extent that they constitute admissions against interest or are corroborated by other more reliable evidence. With regard to the relationships among Mar Del Plata, PMS, and MDS, the present case involves two distinct types of relationships, namely, that of "joint employers" and "single employer." (A third type of relationship, namely, that of "alter ego," will be discussed at a later point in this decision in connection with the change which took place on March 11.) Unfortunately, the terms have sometimes been used interchangeably, with some resulting confusion about the defmitions and conditions present in each type of relationship. However, in two separate decisions that issued within a relatively short period of time, the Fifth Circuit Court of Appeals made clear the distinction between "joint em- ployers" and "single employer." In NLRB v. Greyhound Corp., 368 F.2d 778 (5th Cir. 1966), the court held, in agreement with the Board, that separate firms which "share, or co-determine, those matters governing essen- tial terms and conditions of employment" of the employ- ees involved, are joint employers of those employees, re- gardless of whether the firms are commonly owned, op- erated, or controlled. See also NLRB v. Checker Cab Co., 367 F.2d 692, 698 (6th Cir. 1966), cert. denied 385 U.S. 1008 (1967). In NLRB v. M.P. Building Corp., 411 F.2d 567 (5th Cir. 1969), the court, in agreement with the Board, held that two firms may be regarded as a single employer under the Act when there is "interrela- tion of operations, together with centralized control of labor relations , common management, and common own- ership or financial control." I find that at all times material , and specifically throughout 1982 and continuing at least until March 11, 1983, Mar Del Plata and PMS were joint employers of the service employees at Mar Del Plata's condominium. The evidence indicates that PMS contracted with Mar Del Plata to manage its affairs and to supervise all em- ployees at the condominium, that PMS carried out these functions, that PMS, through its own personnel (Por- tuando and Torralbas) and through personnel jointly hired by PMS and Mar, Del Plata (Hughes and Gonza- lez) directed the employees in their work, and that PMS and Mar Del Plata jointly terminated Hughes and Assist- ant Engineer Garcia. Specifically, PMS recommended the termination of Hughes; Mar Del Plata ordered both teminations, and PMS, acting through Portuando, carried out the order. PMS, acting through Torralbas, or Mar Del Plata, acting through Marroquin, or both acting jointly, normally authorized Hernandez to hire or termi- nate , employees. PMS, in consultation with Mar Del Plata, prepared Mar Del Plata's budget, which deter- mined the staffing at the condominium and the employ- ees' wages and monetary benefits. The employees were paid by PMS from Mar Del Plata's funds. The evidence further indicates that Mar Del Plata authorized PMS to deal with the Union with respect to the Union's claim to represent the employees. Therefore, Mar Del Plata and PMS were joint employers of the service employees at the condominium. Greenhoot, Inc., 205 NLRB 250 (1973); Queens-Nassau Nursing Home, 218 NLRB 1213, 1215 (1975), enfd. 538 F.2d 309 (2d Cir. 1976); Moderate Income Management Co., 256 NLRB 1193, 1194 (1981); Carillon House Nursing Home, 268 NLRB 589 (1984); Sun-Maid Growers of California, 239 NLRB 346, 350-351 (1978), enfd. 618 F.2d 56 (9th Cir. 1980). I further find that at all times material, PMS, and,MDS were and still are a single employer under the Act. PMS and MDS are commonly owned, operated, and controlled by a single individual (Portuando). Their operations are closely inte- grated, there is interchange of employees, and they are held out to the public, prospective customers, and em- ployees as a single business operation, to the extent that even Portuando has difficulty in telling them apart. Therefore, they constitute a single employer under the Act. Amshu Associates, 218 NLRB 831 (1975), enfd. 538 F.2d 312 (2d Cir. 1976).9 Returning to the matter of Rudy Garcia, I find that Mar Del Plata and PMS jointly terminated Garcia be- cause of his activities in bringing in the Union and pre- senting the employees' grievances to Respondents. Mar Del Plata thereby violated Section 8(a)(1) and (3) of the Act. However, as Garcia was terminated more than 6 months prior to the filing of the amended charge which first named PMS as a respondent, I am precluded from finding that PMS thereby violated the Act. National Welders Supply Co., 132 NLRB 660 (1961). But, see Esgro Inc., 135 NLRB 285, 286 (1962), involving a single em- ployer relationship. B. The Union's Alleged Representative Status and Alleged Recognition by Respondents During the period from January 1 to March 11, 1983, Respondents, in addition to a chief engineer and office personnel, jointly employed employees in the categories of assistant engineer (later "handyman"), porters, door- men, valets, bartender, and security guards at Mar Del Plata. Respondents' personnel records and the testimony of witnesses for both sides, indicate that as of February 4, Respondents employed 14 employees in these catego- ries, including two security guards (Jose Veliz and Vin- 9 The complaint does not name MDS as a respondent , although the complaint alleges that Mar Del Plata and PMS unlawfully subcontracted the unit work. However, Respondents placed the status of MDS in litiga- tion. Respondents contended , by way of defense, that prior to January 1983 MDS was the management agent for Mar Del Plata , and that for nondiscriminatory reasons, Mar Del Plata, in January 1983, contracted with PMS to perform management services and with MDS to furnish maintenance services Therefore, it is appropriate for me to make findings concerning the relationships among Mar Del Plata, PMS, and MDS. MAR DEL PLATA CONDOMINIUM 1019 cente Andrade). In addition, Rudy Garcia, who was sub- sequently replaced by "handyman" Rogelio Gonzalez, must be regarded as a de jure employee by reason of his discriminatory termination. I find, as alleged in the com- plaint, that all service employees employed by PMS and Mar Del Plata at Mar Del Plata's Miami Beach facility, excluding all office clerical employees, guards, and su-, pervisors as defined in the Act, constitute a unit appro- priate for collective bargaining within the meaning of Section 9(b) of the Act. 30 Sutton Place Corp., supra, 240 NLRB at 754; see also NLRB v. Greyhound Corp;, supra, 368 F.2d at fn. ' 18; Greenhoot, Inc., supra, 205 NLRB at 251. The cards which Assistant Business Manager Schwab gave to Rudy Garcia were dual-language, single-purpose cards which clearly and unambiguously stated that the signatory employee was applying for union membership and designating the Union as bargaining representative. Doorman Robert Hibbs testified that he signed his card on January 26, and gave the card to porter Ramon Gon- zalez. Garcia and five other employees (valet Manuel "Monolo," Gonzalez, doorman Jorge Del Vecchio, door- man-valet Luis Leiva, and porters Juan Ramon Gonzalez and Gilberto Rodriguez) each signed cards on January 27. Monolo, Leiva, and porter Gonzalez testified that they each received their cards from Garcia. Del Vecchio testified that he returned his card to porter Gonzalez.10 Doorman Antonio Leyva testified that he and his late brother, Rafael Leyva (also a doorman) signed their re- spective cards on January 28. Rodriguez testified that he gave a card to guard Jose Veliz on January 31, and Veliz signed the card in his 'presence and returned the card to him. Doorman Dean Duncan testified that he re- ceived his card from Del Vecchio, signed it on February 2, and gave the card to Hibbs. Porter Francisco Enrique Valdez testified that he received his card from Luis Leiva, signed it on February 4 (his first day at work), and returned the card to Leiva. Del Vecchio testified that he asked bartender Rogelio Gonzalez to sign a card, but that he refused. None of the witnesses indicated ,that Engineer Hernandez ever gave them a card, or asked them to join the Union, or that any employee signed a card in his presence, or returned a card to Hernandez. Hernandez testified that he did not ask the employees to sign union cards. As indicated, Hernandez generally im- pressed me as a candid witness. I credit the testimony of the employees and Hernandez, and I do not credit the testimony of Director Giamattei that she saw Hernandez carrying blank authorization cards in his pocket. Manag- er Schwab testified that he collected the signed cards at a gathering of employees near the condominium, ,prior to meeting with Portuando. I find that as of February 4, the Union was in possession of valid authorization cards from' 11 of the 13 , unit employees (I have excluded the unauthenticated card of Perez and the card signed by se- curity guard Veliz). Therefore, I find that as of February 4, ' the Union was the designated collective-bargaining representative of the employees in the appropriate unit. 10 The General Counsel presented in evidence an authorization card purportedly signed by valet Alberto Perez and dated January 27, but the card was not authenticated by any witness. As found, Schwab contacted Portuando's office for the purpose of setting up a meeting. They met in Portuan- do's office on Friday, February 4.11 Schwab testified in sum concerning the meeting as follows: Portuando iden- tified himself as president of PMS, the management agent for Mar Del Plata, stated that he knew the purpose of Schwab's visit because he had been in contact with the board of directors, that he was the representative for Mar Del Plata and would be handling the matter, that the management contract also authorized him to meet with Schwab, and that Schwab should deal with him rather than the board. Schwab said that he represented the employees at Mar Del Plata and wanted to discuss the situation there. In support of his claim, Schwab of- fered to and did show Portuando the signed authoriza- tion cards. 12 Portuando looked over the cards, recog- nized some of the names, and told Schwab, "you have them," adding that he was not surprised that the employ- ees wanted the Union. Schwab expressed the employees' grievances, principally job security, and Portuando said he was aware of 'those grievances. Schwab asked about the discharge of Garcia. Portuando asserted that Garcia was terminated because there was no money for a second engineer. Schwab asserted that the discharge was unjust, and asked that Garcia be reinstated. Portuando promised to (and in fact did) offer Garcia another job. Schwab said there was a tense situation at the condominium, and that the employees were ready to strike. Portuando an- swered that he did not want a strike. Schwab said that he wanted to negotiate a contract, and he gave Por- tuando a copy of a contract between the Union and a condominium association, with the name' of the condo- minium deleted. He told Portuando that this was a typi- cal condominium contract, and basically what the em- ployees - wanted. Portuando asked if it would be agree- able if the condominium simply set established benefits for the employees. Schwab insisted that they would have to negotiate, and Portuando agreed, to do so. Schwab proposed, and Portuando agreed, that there would be a moritorium on firings except for "just cause" (which Schwab explained) and that firings would be subject to a grievance and arbitration procedure. Schwab explained the procedure, and Portuando said 'that he was familiar with it, 'and would handle the arbitrations. They did not otherwise discuss the particulars of a contract at this meeting. They agreed to meet again in order to complete negotiations, and Portuando promised to present a man- agement' proposal at that meeting. Schwab requested that Portuando furnish something in writing which would confirm that Mar Del Plata recognized and agreed to bargain in good faith with the Union. Schwab asked Por- tuando to send a mailgram. It is undisputed' that by letter dated February 7, on PMS stationery, Portuando as 11 Schwab testified that they met on February 2, but on cross- examina- tion he admitted that they might have met later that' week Portuando's secretary, Chris Mahoney, testified in sum that they were initially sched- uled to meet on February 1, that Schwab was unable to meet at the agreed time, and that they subsequently agreed to meet on February 4 1 credit Mahoney, and I find the meeting took place on February 4. 12 Schwab probably did not have the card of Francisco Enrique, which was signed on February 4 However, I find that Schwab had the other cards, and showed them to Portuando. 1020 DECISIONS OF NATIONAL LABOR RELATIONS BOARD "management agent" for Mar Del Plata, informed Schwab as follows: As we agreed , here is a verification of our good faith in negociating [sic] with you as representative of the Mar Del Plata employees. In the near future I will be drawing up an agree- ment on the benefits to the employees. It is also undisputed that on February 10, Schwab posted Portuando 's letter near the timeclock at Mar Del Plata, that Vice President Marroquin saw him doing so, that he told her that they met and agreed to negotiate and were negotiating , and that Marroquin expressed her approval . Additionally, the minutes of a board meeting on February 7 at which Portuando was present indicate that the "matter about the Union for employees was dis- cussed . It was decided that P .M.S. Corporation would deal with them in good faith."13 Schwab further testified that he and Portuando next met at Portuando's office on February, 25. Schwab testi- fied in sum concerning this meeting as follows: Por- tuando said that he did not have an opportunity to draft a proposed contract , but that they could proceed on the basis of the sample contract which Schwab had submit- ted as a basis for agreement . They proceeded to discuss the contract article by article , with Schwab explaining each article. They agreed on recognition and scope of contract (limited to employees at Mar Del Plata), use of the Union's hiring hall, checkoff, and probationary em- ployees. They did not , agree on economic items. They agreed on most holidays. They discussed wages only in a general way . (Schwab testified that he was generally sat- isfied with the wage rates at Mar Del Plata.) Portuando said that the present budget did not allow for health ben- efits or other extra costs. He suggested that Schwab make a presentation to the board for a special appropria- tion, and Schwab agreed to do so . They agreed to meet again on March 4 . Schwab requested the names, wage rates, dates of hire, and classifications of the employees at Mar Del Plata, and Portuando promised to get the in- formation . 14 Schwab never received the information. Thereafter, Portuando's secretary called Schwab to cancel the March 4 meeting. She told him that he was out of the country. Schwab left a message for Portuando to call him . He also sent a letter to Portuando, dated March 8 , requesting continuation of contract negotia- tions, protesting cancellation of the March 4 meeting, and requesting , as "previously requested," the names, po- sitions, wage rates, and total annual income or hours of employment of the Mar Del Plata employees . On March 1" The same minutes indicate that on motion of Marroquin , the board passed a resolution that "to avoid Directors from dealing with employees directly about problems , they should go to the higher authorities." Direc- tor Giamattet testified that this meant the employees should deal directly with the management company . The minutes also indicate that : "It was decided the new `Handy man ' is to visit the P.M.S. Corp . office to be interviewed and to be made engineer " I find that these entries are fur- ther evidence that PMS and Mar Del Plata were joint employers, and that PMS was the sole management agent for Mar Del Plata. 14 Schwab initially testified that he asked for Mar Del Plata's budget. However, he subsequently testified that Portuando gave him a copy of the budget even though he did not ask for it 10 Portuando returned Schwab 's call. Portuando said that the employees had a bad attitude and the board was upset. Schwab answered that the- employees were upset and ready to picket . Portuando admitted that they were good employees . The next day Schwab received reports that the employees were all fired . Schwab also received a letter from Portuando , dated March 9, asserting that Mar Del Plata "has contracted out all of the services re- quired for the operation of the Association ," which "means that the Association will no longer have any em- ployees as of March 15, 1983 ," and therefore "there is no future need for us to meet in relation to the Union." There was no further contact between Schwab and Por- tuando. Portuando testified that he met with Schwab only once, namely, at the February 4 meeting . However, he corroborated or failed to deny much of Portuando 's testi- mony. Portuando admitted that Schwab showed him the authorization cards. According to Portuando , he did not recognize any of the names, although he had the payroll list. In view of the fact that Portuando had recently dis- charged Rudy Garcia , one of the card signers, his asser- tion is incredible . Portuando admitted that Schwab claimed to represent the employees . According to Por- tuando, Schwab suggested the language of the February 7 letter, asserting that he needed something to show the employees that they spoke. However , Portuando admit- ted that they agreed on "good faith negotiation." Schwab testified that he did not dictate the language of the letter and that the letter did not reflect his kind of wording . I credit Schwab . The letter does not reflect the kind of wording which would likely be used by a union official . Rather, Schwab would probably suggest lan- guage similar to the recognition clause of a contract, which would have included a reference to the Union, rather than "you" as representative of the employees. Moreover, Portuando took 3 days in which to consider the language of the letter. Portuando was a practical businessman with extensive operations . It is unlikely that he would have sent the letter to Schwab without com= prehending its meaning . Portuando admitted that the board of directors asked him to find out what the Union wanted, and that he probably reported back to the board (in fact, as indicated by the board's minutes, he did report back). Portuando also admitted that he would have sent contracts or other legal matters to Mar Del Plata's attorney . At no time did Portuando ever tell Schwab that he did not mean what he said in ' the Febru-' ary 7 letter. Portuando also testified that Schwab said he "needed certain things," and "could order a strike," whereupon ' Portuando promptly replied that "if you strike I'll replace all the employees immediately." It is evident from this testimony that Portuando felt confident and knowledgeable in dealing with Schwab . It is also evident that Portuando understood that Schwab wanted recognition and a contract. I further find that Portuan- do's statement is evidentiary of Respondents ' motivation for their subsequent actions in March. Portuando further admitted that Schwab showed him a copy of a condo- minium contract which "is usually signed by employers." Portuando denied that they went through the articles of MAR DEL PLATA CONDOMINIUM 1021 the contract, and denied that he agreed not to fire em- ployees or to submit disputes to, arbitration. Howevei, Portuando admitted that they talked about holidays and hospitalization, which were far down the list of articles in the proposed contract. Portuando also testified that Schwab suggested that he go to the board, and that Por- tuando tried to set up a meeting. Portuando did not ex- plain the purpose of such a meeting , In the context of the testimony of Schwab and Portuando, it is evident that, such meeting would have been (as testified to by Schwab) for the purpose of requesting a special appro- priation for monetary 'benefits. In his testimony, Por- tuando made no reference to Schwab's request for infor- mation. As indicated, Schwab testified that.he made that request at the February 25 meeting, and referred to the request in his letter of March 8. I find that Portuando's failure to meet that testimony further tends to indicate that there was in fact a second meeting.15 Portuando did testify that he did not tell Schwab that MDS would be taking over the employment of individuals working at MDS, although he was allegedly aware of that plan, be- cause it was none of Schwab's' business. Portuando's tes- timony constitutes a virtual admission that Respondents were dealing,in bad faith with the Union, and reflects ad- versely on his credibility. I find that Portuando did not tell Schwab about MDS because PMS and Mar Del Plata were the joint employers of the employees at the condominium, and because they had no intention of transferring the maintenance- operation, to MDS except as a means of destroying the Union., I credit the testimony of Schwab except as otherwise indicated. Portuando's February 7 letter plainly consti- tuted confirmation of Respondents' agreement to recog- nize and bargain with the Union, and of their promise to submit a proposed contract. I find that Respondents law- fully agreed to recognize and bargain with the Union as the exclusive representative of their employees in an ap- propriate unit, and were therefore legally obligated by that relationship.'Jerr-Dan Corp., 237 NLRB 302 (1978), enfd. mem. 601 F.2d 575 (3d Cir. 1979); Phelps Cement Products, 257 NLRB 19 (1981), enfd. mem. 697 F.2d 295 (2d Cir. 1982); Lyon & Ryan Ford, Inc., 246 NLRB 1, 4 (1979), enfd. 647 F.2d 745, 753 (7th Cir. 1981). However, I shall defer to a later point in this decision, the question of whether Respondents were subsequently excused from their obligation to bargain with the Union because, as claimed by Portuando,, they no longer employed any em- ployees in the unit. 15 Contrary to Respondents ' contention (Br. 21) secretary Mahoney did not deny that there was a meeting on February 25 Mahoney testified that a meeting was canceled because Portuando was out of the country However it is evident that Mahoney was referring to the,aborted March 4 meeting. Portuando 's, alleged desk calendar entries for, February 25, also retied on by Respondents, indicate that Portuando was in his office that day . The entries ' include a partially legible and unexplained reference to Mar Del Plata C. Alleged Threats, Coercive Statements, Promises of . enefit and Interrogation by Vice President Marroquin, and Alleged Threats by Chief Engineer Hernandez Employee witnesses testified about various alleged un lawful statements and interrogation by Vice President Marroquin and ,Chief Engineer Hernandez. As the com plaint alleges that these violations occurred at times prior to February 18, i.e., more than 6 months before the Union filed the amended charge, I shall deal with them as alleged unfair labor practices by Mar Del Plata, al- though the incidents may be considered as evidence with respect to alleged violations by both Respondents within the 10(b) period. Porter Enrique testified that after he signed a union card, Marroquin approached him in the lobby and asked him if he belonged to "this union." Enrique answered that he did. Doorman-valet Luis Leiva testified that Mar- roquin spoke to him several times about the Union, al- though his investigatory affidavit referred to only one conversation. Leiva testified that in one conversation, Marroquin asked if he signed a union card. He,answered "Yes," whereupon she asked why. Leiva explained that they needed some legal support. Leiva 'testified that in another conversation, Marroquin, in the presence of Di- rector Giamattei, said that "we are going to break your union because you're a shit." "Monolo" Gonzalez testi- fied that after the employees signed union cards, Marro- quin spoke to him in the lobby and, in the presence of the doorman, asked him who was the chief of the Union. Monolo answered that they all signed cards., whereupon Marroquin responded that the Union had no strength in Florida and she was "going to destroy that." Monolo testified that Marroquin also asked him if he signed a union card. In his investigatory affidavit. Monolo gave a some- what different' version of the conversation. Monolo stated that Marroquin asked him who were the leaders of the Union, and Monolo answered that "it was something between all of us for our own benefit," whereupon Mar- roquin responded that in Florida the Union was weak and could not go anywhere. Antonio Leyva testified that after the employees signed union cards, Marroquin spoke to him three times about the Union. Leyva testified that on one occasion Marroquin asked if he and his brother signed cards, and on another if he knew who signed cards. Leyva answered that he did not know who signed cards. Leyva testified that on a third occasion, in the pres- ence of bartender Rogelio Gonzalez and a condominium owner, Marroquin said that she did not want the Union, that Florida was a "marginal" state, and that she would destroy the Union. Jorge Del Vecchio testified that Mar- roquin spoke to him twice about the Union after he signed a union card. Del Vecchio testified that on one occasion, possibly in the presence of Monolo, Marroquin asked why he was going to become a union member. According to Del Vecchio, he answered that "I want it," and nothing else was said. Del Vecchio testified that about a week later Marroquin asked him if he signed the union card, and he answered that he did. Del Vecchio 1022 DECISIONS OF NATIONAL LABOR RELATIONS BOARD initially testified that nothing else was said in this con- versation . However, Del Vecchio subsequently testified that in one of the conversations , Marroquin said that "the Union was not good for us ," because she was "going to destroy the Union ." Porter Juan Ramon Gon- zalez testified concerning a lengthy conversation with Marroquin on February 12. Gonzalez , at Marroquin's re- quest, was moving furniture from the pool area during a severe storm , when she asked to speak privately with him. Marroquin reminded him of his experiences as a po- litical prisoner in Cuba , and asked "why you 're going to follow this way of thinking and join the Union," and "what are you going to solve with that." Gonzalez re- mained - silent, but Marroquin persisted . She asked if he knew who joined the Union , and he admitted that he did. She told Gonzalez that he should separate himself from the Union because she was going to "step on us" and "bust the Union ." She asked if Garcia , the Union, or the other employees would pay his rent and other ex- penses. She told him he should tear up his union card. She said she would buy out the Union and that if the employees abandoned the Union she would give them the benefits they wanted . Marroquin told a story about Mexico, when farmers demanding land and rights alleg- edly tried to lynch her and her husband (Gonzalez had previously heard this story). Gonzalez testified that Mar- roquin again asked who signed the union cards. Marroquin , in her testimony, categorically denied that she' ever questioned, threatened , or even talked to any employee about the Union . Director Giamattei also denied that the alleged conversation with Leiva ever took place . As between the employees and the two Mar Del Plata officials , I generally credit the employees, al- though I find a tendency on the part of some of the em- ployees to embellish the facts. Marroquin and Giamattei were not simply unsophisticated housewives with limited knowledge of the English language and American ways. Marroquin had substantial business interests in Mexico, where she had experience in dealing with unions. She was Mar Del Plata's chief executive officer and , in that capacity and as director , had considerable responsibility for the operation of the condominium . It is evident that at least from her experiences in Mexico , Marroquin was strongly antagonistic toward labor unions. Giamattei was by profession , a civil engineer . Marroquin and Giamattei, like the other unit owners, had a substantial investment in the condominium . In resolving the credibility ques- tions, I find particularly significant another development which took place in February. As will be further dis- cussed, in February , Mar Del Plata retained the services of Power Patrol and Security Agency, Inc. (Power Patrol), a guard , watch, and security agency , for the pur- pose of conducting an investigation at the condominium. Director Giamattei testified that the investigation had nothing to do with the Union. However, Mar Del Plata's minutes indicate that on March 1 Roy Millinger of Power Patrol reported to the board , among other things, that "the leader , of the underground employee movement is Leiba [sic] the doorman" [emphasis in original]. Mil- linger, who in his testimony was evasive about the mean- ing of this report , admitted at one point that "under- gound employee movement" may have referred to the Union , and also admitted that the report referred to An- tonio Leyva. Barry Baker, one of Power Patrol 's investi- gators, who posed as a maintenance employee during his investigation from February 19 to 23, prepared a detailed report of his findings and recommendations . Baker re- ported that Luis Leiva and Antonio Leyva were particu- larly outspoken on behalf of the Union, and that Leyva exerted strong influence over the other workers because he worked in the hotel industry in New York as a union member and shop steward . Baker also reported that the employees "will attempt to bring in a union within 30 days." Baker recommended , among other things, that Mar Del Plata : "Eliminate potential unionization , utilize either subcontractors for maintenance , porters, security and or contrace [sic] total management firms-no Mar del Plata employees ." The March 1 minutes indicate that Millinger recommended that Mar Del Plata : "Clean house. Change all employees and start from scratch." As will be discussed , Respondents terminated all the em- ployees who signed union cards, but retained two of the three employees who did not sign cards. It is evident that Power Patrol would not have reported - on the extent of union activity, including the identity of the leading union adherents, unless it was asked to do so, and would not have made recommendations as to how to "Elimi- nate potential unionization" unless it was so asked. Power Patrol could not simply assume that Mar Del Plata wanted to destroy the Union. Rather, as will be further discussed , the principal purpose of the investiga- tion was to establish a pretextual basis for destroying the Union, if necessary by terminating all the union adher- ents. Therefore, Mar Del Plata's actions with regard to the "security" investigation by Power Patrol were con- sistent with the statements attributed by the employees to Marroquin. I have previously indicated Marroquin 's lack of credi- bility with respect to her testimony concerning the rela- tionships among Mar Del ' Plata, PMS, and MDS. As for the employees , porter Gonzalez impressed me as an intel- ligent and candid person and a conscientious employee who was well regarded by Marroquin. Y credit his testi- mony concerning his conversation with Marroquin. I find that Mar Del Plata , by Marroquin, violated Section 8(a)(1) of the Act by coercively interrogating Gonzalez concerning his union attitude and activities and those of his fellow employees, by promising that the employees would receive the benefits they wanted if they aban- doned the Union, by threatening to step on the employ- ees and telling Gonzalez that he would have to seek his pay elsewhere , and thereby impliedly threatening the employees with loss of employment , and threatening to buy out or bust the Union, thereby unlawfully telling the employees that it would be futile for them to support the Union as their bargaining representative . Marroquin, who was Mar Del Plata 's highest ranking official, had no legitimate reason to question Gonzalez or any of the other employees . She gave no assurances against reprisal, although Rudy Garcia had recently, been discharged be- cause of his union activity. Rather , Marroquin accompa- nied her interrogation of Gonzalez with unlawful threats of reprisal and promises of benefit. Additionally, as will MAR DEL PLATA CONDOMINIUM 1023 be discussed, the interrogation had an unlawful, purpose. Therefore, the interrogation was demonstrably unlawful. Spartan Plastics, 269 NLRB 546 (1984). With regard to the threats to buy out or bust the Union, see Bedford Farmers Cooperative, 259 NLRB 1226, 1227, 1232 (1982); Douglas & Lomason Co., 253 NLRB ' 277, 280 (1980); Church Point Wholesale Grocery Co., 215 NLRB 500, 506 (1974). I also credit the testimony of Enrique that Marroquin questioned him about whether he joined the Union, and I find that Mar Del Plata thereby violated Section 8(a)(1). (As Enrique was a new employee whose card had not been shown to Portuando, Marroquin .had particular mo- tivation to so question him.) With, regard to the testimo- ny of "Monolo," I find that this affidavit is a more accu- rate account of what Marroquin said than his testimony at the hearing. It is unlikely that Marroquin asked him if he signed a union card, as she probably already knew that he was' a union member. However, as indicated by the subsequent Power, Patrol investigation, Respondents were very much interested in identifying the union lead- ership. I fmd that Mar Del Plata violated Section 8(a)(1) by interrogating Monolo concerning the, identity of the union leaders. I also , credit the testimony of Antonio Leyva, and I find that Mar Del Plata violated Section 8(a)(1) by interrogating Leyva concerning the identity of card signers, and by threatening to destroy the Union, thereby asserting that it would be futile for the employ- ees to support the Union. (By referring to Florida as a "marginal" state, Marroquin was probably asserting that unions were weak in Florida, or referring to the fact that Florida law prohibits the union shop.) With regard to the testimony of employee Del Vec- chio, I credit only his testimony that Marroquin asked him why he was becoming a union member. It is unlike- ly that she would first ask why he was joining the Union, and later ask whether he signed a card. Marro- quin probably already knew that he signed a card. I find that Mar Del Plata violated Section 8(a)(1) by question- ing Del Vecchio about why he was joining the Union. Marroquin had no legitimate reason for questioning Del Vecchio, she gave him no assurances against reprisal, the interrogation took place in the context of other unfair labor practices, and the questioning was demonstrably part of a systematic campaign to determine the exact extent of union support among the employees, including the identity of the union leadership. I also credit the tes- timony of Luis Leiva that Marroquin questioned him about whether and why he signed a union card, and threatened to break the Union, and I find that Mar Del Plata thereby violated Section 8(a)(1). (Although Leiva's affidavit referred to only' one conversation, Respondents did not offer in evidence either the affidavit or any perti- nent portion. Therefore it cannot be inferred that the af- fidavit either excluded the possibility of more than one conversation, or that the interrogation and threats took place in a single conversation.) I find that by reason of Schwab's showing of cards to Portuando, Marroquin's systematic interrogation of the employees, and Power Patrol's investigation, Respondents knew by March 1 which employees supported the Union and which did not, and which employees were most active on behalf of the Union.'s I further find that Marroquin's systematic inrrdgation and threats, together with other evidence that has been and will be discussed demonstrate that the termination of the union adherents on March 11 was the culmination of Respondent's avowed campaign to de- stroy the Union, and that the reasons now advanced by Respondents for that action are false or pretextual. Porter Gonzalez testified without contradiction that after the union campaign began, Chief Engineer Hernan- dez told him that the employees should try to win and get the Union into the building because Marroquin said that if they did not win, she would "step on everybody" and they would all be out of a job. I credit Gonzalez. At the time, Gonzalez had already notified Portuando of his intention to leave. I find that Hernandez was speaking for himself, and that such fact was evident 1o Gonzalez. In light of Marroquin's hostility to unionization, it is un- likely that Gonzalez would have interpreted Hernandez' statement to mean that Mar Del Plata was encouraging the employees to win their campaign. Therefore, Mar Del Plata was not responsible for Hernandez' statement. J S Abercrombie Co., 83 NLRB 524, 529 (1949). Howev- er, I find that Hernandez was aware of Respondents' in- tention to destroy the Union, and that his warning to Gonzalez was further evidence of that intention. D. Termination of the Remaining Union Adherents, the Alleged Subcontracting of Work to MDS, and Concluding Findings With Respect to Withdrawal of Recognition and Refusal to Meet Bargaining Obligations On March 11, union members working at Mar Del Plata were either notified by Power Patrol or informed by their follow' employees that they were terminated. The employees were told to go to PMS' office where they would receive their final paychecks. At PMS' office employees were also each given a form letter dated March 15, on PMS stationery and signed by Portuando as manager for Mar Del Plata, which letter read as fol- lows: TO WHOM IT MAY CONCERN: DUE TO THE CONTRACTING OF AN INDEPENDENT FIRM WHICH WILL BE PROVIDING US WITH THEIR OWN EMPLOYEES, [NAME OF EMPLOYEE'S POSITION HAS BEEN TERMINATED. THUS, IN OUR OPINION, EN- TITLING HIM TO UNEMPLOYMENT BENEFITS. Some of the employees were offered other employment. Robert Hibbs, Dean Duncan, Luis Leiva, "Monolo" Gonzalez, Antonio Leyva, Jorge Del Vecchio, and Gil- berto Rodriguez each testified that they were given a form termination letter. Antonio Leyva testified that his brother Rafael was also given a termination letter. Por- tuando, in this testimony, acknowledged that porter Juan Ramon Gonzalez was given a termination letter„ Porter Gonzalez testified that PMS Supervisor Torralbas and 16 As discussed, Alberto Perez' card was not authenticated for repre- sentational purposes. However, as Perez' card was included in those which Schwab showed to Portuando, Respondents could reasonably be- lieve that he was a union adherent. 1024 DECISIONS OF NATIONAL LABOR RELATIONS BOARD Roy Millinger of Power Patrol informed him on March 11 to tell those employees who were not then at work, that they were terminated effective as of noon that day. Francisco Enrique testified that he was not at work on March 11, but that porter Gonzalez told him that they were all fired, and that he received his final paycheck at PMS' office, but was not given a termination letter. I find that Respondents, through Torralbas and Power Patrol, authorized porter Gonzalez to inform Enrique and similarly situated employees that they were terminat- ed. The remaining alleged discriminatees, Jose Veliz and Alberto Perez, were not presented as witnesses in this proceeding. However, Respondents' payroll records, and the testimony of Chief Engineer Hernandez and Director Giamattei, indicate that they were still employed at Mar Del Plata after the termination of Rudy Garcia, but were no longer working there after March 11. Giamattei testi- fied that bartender Rogelio Gonzalez and handyman Ro- gelio Gomez were the only pre-March 11 employees who continued to work at Mar Del Plata after that date, although a doorman who worked in 1982 was recalled to work for Power Patrol at the condominium. No evi- dence was presented which would indicate that Veliz and Perez were terminated on a different date or under different circumstances than the other card signers. I find that all 12 alleged discriminatees were terminated on March 11 for the same reason . "The fact that there is no formal discharge is immaterial if the words or conduct of an employer would logically lead an employee to believe his tenure has been terminated." Pennypower Shopping News v. NLRB, 726 F.2d 626 (10th Cir. 1984). Significantly, no official of Respondents ever testified about the reason why the employees were terminated, or more specifically, why, the union adherents were termi- nated while other personnel were retained. As discussed, Portuando advanced a palpably false reason about why Mar Del Plata executed separate contracts with PMS and MDS, i.e., to avoid a conflict of interest. However, even the purported minutes of the meetings of Mar Del Plata's board of directors fail to indicate an actual deci- sion to terminate the employees. Rather the purported minutes indicate that, as of January 7, the board wanted MDS to retain the present employees. This would indi- cate that the board was satisfied with their performance. Nevertheless, Respondents presented testimony and doc- uments for the purpose of showing that the employees were not performing in a satisfactory manner . Respond- ents now argue in their brief (p. 9) that this alleged dis- satisfaction was the principal motivating factor for the al- leged replacement of Mar Del Plata personnel with MDS personnel on March 11. This evidence substantially consisted of (1) testimony by Marroquin and Giamattei concerning alleged poor conditions and work perform- ance at the condominium, (2) alleged complaints by owners concerning such conditions, and (3) the results of the Power Patrol investigation in February 1983. For reasons which have been and will be discussed, I find that the alleged deficiencies in employee performance were demonstrably pretextual and substantially lacked any credible factual basis. In order to fully evaluate Respondents' argument, it is necessary to consider the organizational structure and maintenance arrangements at Mar Del Plata during the period from January 27, when Rudy Garcia was dis- charged, to March 1, when Power Patrol ostensibly made its report to the board. Mar Del Plata did not have a building manager. Walter Hughes was terminated in October 1982, and never replaced in that capacity. Chief Engineer Hernandez, the immediate supervisor of the employees, left in mid-February after giving notice to Portuando, and was subsequently replaced by Walt Cresswell. However, there was an interim period when there was no chief engineer and, consequently, no on- the-job supervision of the employees. Meanwhile, - Rudy Garcia was replaced by handyman Rogelio Gomez. Also, in January 1983, Mar Del Plata canceled a pool maintenance contract and did not obtain another con- tractor. Portuando's desk calendar indicates an inquiry from Mar Del Plata's office ,secretary on February 7 concerning who was responsible for servicing the pool. Power Patrol's supposedly impartial investigation and report completely disregarded these circumstances. Al- though its reports were replete with accusations that the employees were lazy, unproductive, neglectful of their duties, and had a disrespectful attitude, there is no indica- tion that Power Patrol investigated whether the employ- ees_ were receiving adequate supervision or whether Cresswell was adequately performing in his new job. Al- though one of Power Patrol's investigators recommend- ed "strong supervisory personnel to enforce efficient work productivity," this recommendation was not passed on to the board as part of Power Patrol's final recom- mendation, and Cresswell remained as chief engineer after March 11. Investigator Barry Baker complained about a loose lamppost near the pool. However, Baker disregarded the fact that handyman Gomez would be re- sponsible for repairing such a condition, and Gomez also remained after March 11. The investigators' reports fo- cused entirely on the union adherents, including com- ments by Baker (the inside investigator) concerning their union attitude and activities, which culminated in his rec- ommendation to contract out the work in order to elimi- nate potential unionization. The history of Mar Del Plata's security arrangements further tends to undermine the credibility of Respond- ents' position in this case. Mar Del Plata had a contract with Force Federal Detective Bureau (Force Federal) effective from August 16, 1981, to August 16, 1982, to provide two security guards at the condominium. There- after, Force Federal continued to supply the guards, whose services were supplemented by Mar Del Plata's own two security guards and its doormen. According to Portuando, he contacted Power Patrol in August or Sep- tember 1982, recommended them to the board for "in- vestigations," and discussed Power Patrol with the board on December 7,r but nothing was agreed at the time. It is undisputed that Mar Del Plata did not enter into any agreement with Power Patrol to provide security service until at least February 23, when they ostensibly executed a 1-year contract, effective as of March 1. Portuando's desk calendar indicated that Mar Del Plata was sched- uled to sign a contract ,with Power Patrol on, January 7. However, Portuando admitted that no such action took MAR DEL PLATA CONDOMINIUM 1025 place on that date. 117 Millinger testified that Power Patrol did not begin to provide routine security service at Mar Del Plata until March 11. Thereafter, Respond- ents ceased to employ personnel in the categories of se- curity guards and doormen, although the size of the em- ployee unit was only slightly reduced. As indicated, Power Patrol conducted the undercover investigation from February 19 to 25, i.e., beginning prior to the exe- cution date of the security contract. If in fact Mar Del Plata was dissatisfied with security at the condominium as early as October 1982, and was aware of Power Patrol as an alternative, then it is unlikely that Mar Del Plata would have waited until March 11 to commence utilizing the services of Power Patrol. I fmd that Re- spondents contracted the security work as part and parcel of the same course of conduct as the arrangement involving MDS, namely, to fulfill Marroquin's promise to destroy the Union by getting rid of all the union ad- herents, and selected Power Patrol as a reward for its services in providing a pretext toward that end. The testimony of Marroquin and Giamattei, and writ- ten complaints of owners which were presented in evi- dence, were so replete with contradictions and inconsist- encies as to virtually nullify Respondents' argument in this case. Marroquin testified that the complaints began about August 1982, but subsequently testified that there were complaints about unsatisfactory conditions through- out 1982. However, Giamattei testified that conditions improved after January 7, thereby indicating satisfaction with employee performance during the period from Jan- uary 7 to March 11. The written complaints which were presented in evidence (including one by Marroquin) were all dated during the period from January 31 through February 7. Portuando's desk calendar indicates that on February 1, Marroquin asked him to provide a format for submitting written complaints about the em- ployees. It is evident that until the Union came on the scene, the owners saw no need to, submit such com- plaints. Moreover, the complaints were in many respects irrelevant to the normal work of the union adherents and to the action taken by Respondents on March 11. One owner complained that the pool was not working, and that the door to the pool was broken, and another com- plained that the shower room ceiling needed repair. However, at the time Mar Del Plata did not have anyone responsible for pool maintenance, and had termi- nated its assistant engineer , who was responsible for minor repairs. Two owners complained about the need for fumigation or an exterminator. However, Respond- 11 Portuando testified that no contract was signed on that date because they did not get to it, and the matter was tabled for the next board meet- ing. However, Portuando 's testimony was contradicted by Mar Del Plata's alleged minutes and by Power Patrol Representative Millinger The minutes for January 7 indicate that board members Marroquin and Rotunda and the "management agent" were authorized to negotiate and sign a contract with Power Patrol . Although the board met at least twice between January 7 and February 23, there is no further reference in the minutes to the matter of a security contract . Millinger, in his testimony, admitted that he had no agreement with Mar Del Plata until February, when Power Patrol was retained to conduct the undercover investiga- tion . The evidence not only undermines Portuando's credibility, but also places in question the authenticity of the purported minutes of January 7, when Mar Del Plata ostensibly decided to contract with AIDS for main- tenance work ents used an outside contractor for this work. Another owner complained that his bedroom door would not slide . However, this involved a condition within an apartment unit,' for which the employees were not re- sponsible. Giamattei, who did not,submit a written com- plaint, testified that there were constant problems with the hot water heater. However, Respondents utilized an outside contractor to maintain the heating equipment, and the chief engineer and "handyman" (Cresswell and Gomez) were responsible' for routine maintenance. In fact, the evidence, including the timing and unjustified nature of the complaints, evident satisfaction with the employees' work until the Union entered the picture, and Marroquin's request for complaint forms, indicates that in February Respondents were engaged in a campaign of harassment against the employees, which began with so- licitation of complaints and unjustified complaints against the employees and culminated with the unwarranted un- dercover investigation. Thus, porters Gonzalez and Ro- driguez described an incident in February when Gonza- lez got down on his hands and knees and wiped his hand across the floor in order to demonstrate to Marroquin and Giamattei that they had thoroughly cleaned 18 flights of stairs. Nevertheless, Marroquin falsely insisted that the floors. were not clean.18 I fmd that Respondents terminated the remaining 12 union adherents because of their support for the Union, and in order to destroy unionization at Mar Del Plata, and thereby violated Section 8(a)(1) and (3) of the Act. When Respondents were initially confronted with the spectre of unionization, they went through the motions of dealing with the Union, thereby hoping to ' buy time, while concurrently discharging the leading union adher- ent in anticipation that this would weaken the Union's position among the employees. When Respondents learned that Garcia's discharge did not shake employee support for the Union, they proceeded, as previously de- scribed, to harrass the employees and build a case against them which could be used as a pretext for their termina- tion . In the meantime , Respondents continued to go through the motions of bargaining with the Union, there- by averting a strike until they were able to obtain a new complement of employees, and possibly in hopes of ne- gotiating a "sweetheart" deal. By February 25, when Schwab and Portuando met for the second time, howev- er, it was clear to Respondents that the Union was seri- ous about wanting job security and improved benefits for the employees. Therefore, having the benefit of a "stacked deck" investigation whose result was solicited and preordained, Respondents proceeded to train new employees to the point where they were ready to take over the service work. On March 11, without prior notice to the Union or the employees, Respondents abruptly terminated the union adherents and replaced 18 Power Patrol Investigator Baker testified that he saw Luis Leiva and porters Gonzalez and Rodriguez remove a table lamp from the con- dominium The employees in their testimony denied that such an incident ever occurred. No evidence was presented concerning any complaint of missing property from the condominium. I find that Respondents have failed to present credible evidence that employees engaged in theft or vandalism at any time material to this case 1026 DECISIONS OF NATIONAL LABOR RELATIONS BOARD them with employees nominally on the payroll of MDS or, with respect to security guards, by guards employed by Power Patrol. These followup actions were an inte- gral part of the discriminatory course of action which in- cluded the termination of the employees. Therefore, I fmd that Respondents further violated Section 8(a)(1) and (3) by nominally contracting the service work to MDS and by contracting with Power Patrol to perform ,guard service to the extent that such service replaced the work formerly performed by Respondents' employees. Syufy Enterprises, 220 NLRB 738, 741 (1975). In a letter dated,August 30, 1983, to the Board's Regional Office, Respondents'- counsel asserted, by way of answer to an inquiry from the Regional Office, that "PMS presently employs employees who are performing duties referred to in the Complaint." Respondents' counsel made no ref- erence to MDS. The letter is of course evidentiary and may properly be considered as an admission by Respond- ents. McDonnell Douglas Corp., 270 NLRB 1204 fn. 1 (1984); Steve Aloi Ford, 179 NLRB 229 fn. 2 (1969). Spe- cifically, the letter may,properly be considered as an ad- mission either that (1) the ostensible transfer of work to MDS was a fiction or sham, and that PMS remains the employer or joint employer of the service employees at Mar Del Plata, or (2) that PMS and MDS are in fact a single employer, and therefore that it is immaterial whether the employees are nominally on the payroll of MDS. PMS is responsible and accountable for the ac- tions of MDS, and MDS is obligated to remedy PMS' unfair' labor practices, whether they are viewed as a single employer or whether PMS is viewed as the alter ego of MDS, or whether MDS is viewed as the succes- sor to PMS, all of which relationships would be applica- ble to the present case. This would be true regardless of the fact that MDS is,-not named as a respondent in this proceeding. NLRB v. Master Slack, 618 F.2d 6, 8 (6th Cir. 1980); Teckwal Corp., 263 NLRB 892 (1982); Custom Mfg. Co., 259 NLRB 614 (1981). Moreover, by reason of the August 30, 1983 letter, Respondents are estopped from now contending that MDS rather than PMS is the employer or joint employer of the employees at Mar Del Plata. As the Union was the lawfully designated and recog- nized collective-bargaining representative of Respond- ents' employees in an appropriate unit , and Respondents' actions on March 11 were discriminatory and unlawful, it follows that Respondents violated Section 8(a)(1) and (5) of the Act by withdrawing recognition from the Union, and cutting off contract negotiations . Jerr-Dan Corp., supra, 237 NLRB 302; Phelps Cement Products, supra, 257 NLRB 19; Lyon & Ryan Ford, supra, 246 NLRB at 4. 19 I also fmd that Respondents violated Sec- is If I had not found that Respondents initially recognized the Union, I would nevertheless find that a finding of an 8(a)(5) violation and reme- dial bargaining order would still be warranted under the principles of NLRB Y. Gissel Packing Co , 395 U S 575, 613-615 (1969). The elements of a Gissel violation are present ' Nearly all the unit employees signed union authorization cards Respondents ' massive and flagrant unfair labor practices, including the discriminatory discharge of every union adherent, constitutes the kind of conduct which is likely to destroy the conditions for a free and fair choice in an election Compare, Marchese Metal, 270 NLRB 293 (1984). Assuming , arguendo, that it were necessary for me to make a finding for Gissel purpose that the Union enjoyed majority status tion 8(a)(5) by actually or ostensibly contracting out unit work without prior notice to the Union and without af- fording the Union an opportunity to meet and bargain concerning such actions and the effects thereof. Syufy Enterprises, supra, 220 NLRB at 741. CONCLUSIONS OF LAW 1. Mar Del Plata and PMS are each employers en- gaged in commerce within the meaning of Section 2(2), (6), and (7) of the Act, and it would effectuate the poli- cies of the Act for the Board to assert its jurisdiction in this case. 2. PMS and Mar Del Plata were at all times material and are joint employers of the service employees at Mar Del Plata's Miami Beach condominium. 3. MDS and PMS together constitute a single employ- er under the Act. 4. The Union is a labor organization within the mean- ing of Section 2(5) of the Act. 5. All,service employees employed by Respondents at Mar Del Plata's Miami Beach, Florida facility, excluding all office clerical employees, guards, and supervisors as defined in the Act, constitute a unit appropriate for the purposes of collective bargaining within the meaning of Section 9(b) of the Act. 6. At all times material, the Union has been and is, the exclusive collective-bargaining representative of Re- spondents' employees in the unit described above. 7. By failing and refusing to bargain in good faith with the Union as the representative of the employees in the appropriate unit, Respondents have engaged in, and are engaging in, unfair labor practices within the meaning of Section 8(a)(5) of the Act. 8. By discriminating in regard to the tenure of employ- ment of Rudy Garcia, Jose Veliz, Rafael Leyva, Luis Leiva, Robert Hibbs, Jorge Del Vecchio, Manuel Gon- zalez, Gilberto Rodriguez, Francisco Enrique, Antonio Leyva, Dean Duncan, Alberto Perez, and Juan Ramon Gonzalez, thereby discouraging membership in the Union, Mar Del Plata, with respect to Garcia, and both Respondents with respect to the other named employees, have engaged in and are engaging in, unfair labor prac- tices within the meaning of Section 8(a)(3) of the Act. 9. By interfering with, restraining, and coercing their employees in the exercise of the rights guaranteed in Section 7 of the Act, Respondents have engaged in, and are engaging in, unfair labor practices within the mean- ing of Section 8(a)(1) of the Act. 10. The aforesaid unfair labor practices are unfair labor practices affecting commerce within the meaning of Sec- tion 2(6) and (7) of the Act. at the time the order issued in this case, I would so fmd. The discnmma- tees are, under the Act, still employees of Respondents. Excluding securi- ty guard Vehz, the deceased Rafael Leyva, and Perez, whose card was not authenticated, there remain 10 unit employees who signed valid cards and are entitled to reinstatement to unit positions . Pursuant to the Gener- al Counsel's subpoena , Respondents produced records which indicated eight employees holding unit positions at the time of the hearing . There- fore, the Union is still both in fact and law the majority representative MAR DEL PLATA CONDOMINIUM 1027 THE REMEDY Having found, that Respondents have committed viola- tions of Section 8(a)(1), (3), and (5) of the Act, I shall recommend that they be required to cease and desist therefrom and take certain affirmative action designed to effectuate the policies of the Act. In this regard it is nec- essary to address certain statements in the remedy sec- tion of the General Counsel's brief. These statements are inconsistent with the allegations of the complaint, the evidence adduced in this proceeding, and the arguments of the General Counsel with respect to the merits of the case . They also tend to indicate a lack of appreciation of the legal significance of the evidence, and a lack of fa- miliarity with certain principles of labor law. The General Counsel states that the discriminatees should be paid in the manner set forth in Transmarine Navigation Corp., 170 NLRB 389 (1968). The General Counsel further, states that: "(In view of the evidence ad- duced at the hearing, the General Counsel no longer seeks an order requiring Respondents to reinstate their operations as they existed as of March 9, 1983. Nor does the General Counsel contend that Respondents had no obligation to bargain about the decision to subcontract unit work. The status of Jose Veliz as a unit employee is unclear, thus, whether he is entitled to backpay, as a result of Respondents' 8(a)(5) and (3) violations should be left to the compliance stage.)" Transmarine Navigation provides a remedy for cases in which an employer, for lawful economic reasons and without legal obligation to bargain over its decision, ter- minates all or part of its operations, thereby causing loss of employment for its employees, but violates Section 8(a)(5) by failing to bargain with the union representative concerning the effects of its decision on the employees. Transmarine Navigation has nothing to do with the present case.20 Here, Respondents violated Section 8(a)(3) by discriminatorily discharging the 13 union ad- herents. Therefore, the employees are entitled to the conventional remedies of unconditional reinstatement and full backpay. It is difficult to understand how the Gener- al Counsel can contend, and correctly so, that Respond- ents, disciminatorily terminated most of their employees under the guise of a subcontracting arrangement with a firm which in fact comprises a single 'employer with PMS, and yet treat the case for remedy purposes as one involving an economic decision which is not even sub- ject to mandatory bargaining. Indeed, even if Respond- ents lawfully decided for nondiscriminatory reasons (which they did not), to contract out unit work, their de- cision, and not merely the effects of that decision, would be a mandatory subject of bargaining because the deci- sion involved "the replacement of employees in the exist- ing bargaining unit with 'those of an independent contrac- tor to do the same work under similar conditions of em- ployment." Fibreboard Paper Products Co. v. NLRB, 379 U.S. 203, 203-215 (1974). There ,Fibreboard, rather than First National Maintenance Corp. v. NLRB, 452 U.S. 666 (1981), would govern. See also Whitehead Bros., 263 20 The General Counsel also cites C & E Distributing, 264 NLRB 525 (1982). That is an unreported summary judgment case, and therefore has no precedential value NLRB . $95,, 898-899 (1982). In the present case, Re- spondents actually or ostensibly contracted out unit work for discriminatory and unlawful reasons. There- fore, the appropriate remedy should include restoration of the operation as it existed before March 11. Syufy En- terprises, supra, 220 NLRB at 741. As for security guard Veliz, his right to reinstatement and backpay as a discri- minatorily discharged employee is not dependent on whether he is properly included in the appropriate bar- gaining unit . Arlington Hotel Co., 127 NLRB 736, 737 (1960); see also NLRB v. White Motor Corp., 404 F.2d 1100, 1103 (6th Cir. 1968); Geary Ford, 261 @4LRl3 1149, 1151-1152 (1982). Veliz had a statutorily protected right to join the Union, Respondents discriminated against him for exercising that right and, therefore, he is entitled to the usual remedies. Therefore, I shall recommend that Respondents be or- dered to restore their service operation as it existed until March 11, and offer the named discriminatees immediate and full reinstatement to their former jobs or, if they no longer exist, to substantially equivalent positions, without prejudice to their seniority or other rights and privileges previously enjoyed, and make them whole for any loss of earnings and benefits that they may have suffered from the time of their discharge to the date of Respondents' offer of reinstatement. I shall also recommend that Re- spondents be ordered to remove' from their records any reference to their unlawful discharges, to give each of them written notice of such removal and to inform them that Respondents' unlawful conduct, will not be used as a basis for future personnel actions; against them. See Ster- ling Sugars, 261 NLRB 472 (1982). Backpay shall be computed in accordance with the formula approved, in F. W. Woolworth Co., 90 NLRB 289, (1950), with interest computed in the manner and amount prescribed in Flori- da Steel Corp., 231 NLRB 651 (1977).21 It is also recom- mended that Respondents be required to preserve and make available to the Board, or its agents, on request, payroll and other records to facilitate the computation of backpay due. I shall further recommend that Respond- ents be ordered to recognize and, on request, bargain with the Union as the exclusive bargaining representative of the employees in the unit found appropriate herein, to embody any understanding reached in a signed agree- ment, to furnish the Union with a complete and accurate list of the names, job classifications, dates of hire, wage rates, and total annual income or hours worked of all service personnel employed at Mar Del Plata since Feb- ruary 25, 1983, and to post appropriate notices in English and Spanish. I further find that the unfair labor practices in this case, which include flagrant and 'serious violations of three sections of the Act which were directed and com- mitted at the highest levels of management, demonstrate that Respondents have a general disregard or hostility to the Act. Therefore, I am recommending that Respond- ents be ordered to cease and desist from infringing in, any manner on the rights guaranteed'in Section 7 of the Act. 21 See generally Isis Plumbing Co , 138 NLRB 716, 717-721 (11962). 1028 DECISIONS OF NATIONAL LABOR RELATIONS BOARD On these findings of fact and conclusions of law and on the entire record, I issue the following recommend- ed22 ORDER The Respondents, Mar Del Plata Condominium Asso- ciation , Inc. and Property Management Services Corpo- ration, d/b/a PMS Corporation , joint employers, Miami Beach, Florida , their officers , agents, successors , and as- signs, including Miami Domestic Services , Inc., shall 1. Cease and desist from (a) Discouraging membership in Hotel , Motel , Restau- rant and Hi-Rise Employees and Bartenders Union, Local 355, Hotel and Restaurant Employees ' and Bar- tenders' International Union, AFL-CIO, or any other labor organization, by discriminatorily terminating em- ployees, subcontracting work, or in any other manner discriminating against them with regard to their hire or tenure of employment or any term or condition of em- ployment. (b) Interrogating employees about their union attitude or activities or those of their fellow employees. (c) Threatening employees with loss of employment if they join or support the Union. (d) Threatening to bribe or destroy the Union. (e) Promising benefits in order to induce employees not to support the Union. (f) Failing or refusing to recognize and bargain collec- tively in good faith with the Union as the exclusive rep- resentative or their employees in the above -described ap- propriate unit; unilaterally subcontracting unit work or otherwise changing the wages, hours, and other terms or conditions of employment of the unit employees without prior notice to the Union and without affording the Union an opportunity ' to meet and bargain concerning such matters as such representative ; and failing or refus- ing to furnish the Union with requested information which is proper and relevant to the Union's performance of its function as bargaining representative. (g) In any other manner interfering with, restraining, or coercing employees in the exercise of their rights guaranteed in Section 7 of the Act. 2. Take the following affirmative action necessary to effectuate the policies of the Act. (a) Offer Rudy Garcia, Jose Veliz, Luis Leiva, Robert Hibb, Jorge Del Vecchio , Manuel Gonzalez, Gilberto Rodriguez , Francisco Enrique, Antonio Leyva, Dean Duncan , Alberto Perez, and Juan Ramon Gonzalez, im- mediate and full reinstatement to their former jobs or, if such jobs no longer exist, to substantially equivalent posi- tions, without prejudice to their seniority or other rights and privileges previously enjoyed, and make them and the estate of Rafael Leyva whole for losses they suffered by reason of the discrimination against them , as set forth in the remedy section of this decision. 22 If no exceptions are filed as provided by Sec 102 46 of the Board's Rules and Regulations , the findings , conclusions, and recommended Order shall , as provided in Sec . 102 48 of the Rules, be adopted by the Board and all objections to them shall be deemed waived for all pur- poses. (b) Remove from their files any reference to the dis- charge of the above -named employees , and notify them in writing that this has been done and that evidence of the unlawful discharges will 'not be used as a basis for future personnel actions against them. (c) Reinstate their service operation as it existed until March 11 , 1983, at Mar Del Plata 's facility in Miami Beach , Florida. (d) Recognize and, on request , bargain collectively with the above-named Union as the exclusive representa- tive of all employees in the appropriate unit described above, with regard to rates of pay, hours of employment, and other terms and conditions of employment and, if an understanding is reached , embody such understanding in a signed agreement. (e) Promptly furnish to the Union a complete and ac- curate list of the names, job classifications , dates of hire, wage rates, and total annual income or hours worked of all service personnel employed at Mar Del Plata 's Miami Beach facility since February 25, 1987. (f) Preserve and, on request , make available to the Board or its agents , for examination and copying, all payroll records, social security payment records, time- cards, personnel records and reports, and all other records necessary to analyze the amount of backpay due. (g) Post at Mar Del Plata's Miami Beach facility and at PMS ' Miami office, the attached notice marked "Ap- pendix."23 Copies of said notice in English and in Span- ish, on forms provided by the Regional Director for Region 12, after being signed by Respondents' authorized representatives , shall be posted by Respondents immedi- ately on receipt and maintained for 60 consecutive days in conspicuous places, including all places where notices to employees are customarily posted . Reasonable steps shall be taken by Respondents to ensure that said notices are not altered, defaced, or covered by any other materi- al. (h) Notify the Regional Director in writing within 20 days from the date of this Order what steps Respondents have taken to comply. 22 If 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 Nation- al 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 " APPENDIX NOTICE To EMPLOYEES POSTED BY ORDER OF THE NATIONAL LABOR RELATIONS BOARD An Agency of the United States Government The National Labor Relations Board has found that we violated the National Labor Relations Act and has or- dered us to post and abide by this notice. WE WILL NOT discourage membership in Hotel, Motel, Restaurant and Hi-Rise Employees and Bartenders Union, Local 355, Hotel and Restaurant Employees' and Bartenders' International Union, AFL-CIO, or any other MAR DEL PLATA CONDOMINIUM 1029 labor organization, by discriminatorily terminating .em- ployees, subcontracting work, or in any other manner discriminating against them with regard to their hire or tenure of employment or any term or condition of em- ployment. WE WILL NOT interrogate you about your union atti- tude or activities or those of your fellow employees. WE WILL NOT threaten you with loss of employment if you join or support Local 355. WE WILL NOT threaten to bribe or destroy Local 355. WE WILL NOT promise benefits in order to induce you not to support Local 355. WE WILL NOT fail or refuse to recognize and bargain collectively in good faith with Local 355 as the exclusive representative of our employees in the following appro- priate unit: All service employees employed by us and/or Miami Domestic Services, Inc. at, Mar Del Plata Condominium Association's Miami, Beach„ Florida, facility, excluding all office clerical employees, guards and supervisors as defined in the Act. WE WILL NOT unilaterally subcontract unit work or otherwise change the wages, hours, and other terms or conditions of employment of the unit employees without prior notice to Local 355 and without affording Local 355 an opportunity to meet and bargain concerning such matters as such representative. WE WILL NOT fail or refuse to furnish Local 355 with requested information which is proper and relevant to Local 355s performance of its function as bargaining representative. WE WILL NOT in any other manner interfere with, re- strain, or coerce you in the exercise of your right to engage in union or concerted activities, or to refrain therefrom. WE WILL offer, Rudy Garcia, Jose Veliz, Luis Leiva, Robert Hibbs, Jorge Del Vecchio, Manuel Gonzalez, Gilberto Rodriguez, Francisco Enrique, Antonio Leyva, Dean Duncan, Alberto Perez, and Juan Ramon Gonzalez immediate and full reinstatement to their former jobs or, if such jobs no longer exist, to substantially equivalent positions , without prejudice to their seniority or other rights and privileges previously enjoyed, and make them and the estate of Rafael Leyva whole for losses they'suf- fered by reason of the discrimination against them, with interest. WE WILL remove from their` files any reference to the discharges of the above-named employees, and notify them in writing this has been done and that evidence of the unlawful discharges will not be used as a basis for future personnel actions against them. WE WILL reinstate our service operation as it existed until March 11, 1983, at Mar Del Plata's facility in Miami Beach, Florida. WE WILL recognize and, on request, bargain collec- tively with Local 355 as the exclusive representative of all employees in the appropriate unit described above, with regard to rates of pay, hours of employment, and other terms and conditions of employment, and, if an un- derstanding is reached, embody such understanding in a signed agreement. WE WILL promptly furnish to Local 355 a complete and accurate list of the names, job classifications, dates of hire, wage rates, and total annual income or hours worked of all service personnel employed at Mar Del Plata's Miami Beach facility since February 25, 1983. MAR DELPLATA CONDOMINIUM Assoc[A- TION, INC. 'PROPERTY MANAGEMENT SERVICES COR- PORATION, D/B/A PMS CORPORATION Copy with citationCopy as parenthetical citation