S. L. Industries, Inc., 1-CA-14224Download PDFNational Labor Relations Board - Board DecisionsSep 30, 1980252 N.L.R.B. 1058 (N.L.R.B. 1980) Copy Citation DECISIONS OF NATIONAL LABOR RELATIONS BOARD S. L. Industries, Inc., and Extruded Products, Corp. and United Rubber, Cork, Linoleum and Plastic Workers of America, AFL-CIO S. L. Industries, Inc. and United Rubber, Cork, Li- noleum and Plastic Workers of America, AFL- CIO, Petitioner. Cases 1-CA-14224, I-CA- 14475, -CA-14700, I-CA-14788, and I-RC- 15668 September 30, 1980 DECISION, ORDER, AND DIRECTION BY CHAIRMAN FANNING AND MEMBERS JENKINS AND PENELLO On February 29, 1980, Administrative Law Judge David S. Davidson issued the attached Deci- sion in this proceeding. Thereafter, Respondent filed exceptions and a supporting brief, and the General Counsel filed exceptions and a brief in sup- port of the Administrative Law Judge's Decision. Pursuant to the provisions of Section 3(b) of the National Labor Relations Act, as amended, the Na- tional Labor Relations Board has delegated its au- thority in this proceeding to a three-member panel. The Board has considered the record and the at- tached Decision in light of the exceptions and briefs' and has decided to affirm the rulings, find- ings, and conclusions2 of the Administrative Law Judge and to adopt his recommended Order. AMENDED) REMEDY We agree with the Administrative Law Judge that issuance of a bargaining order is warranted in this case. 3 Contrary to the Administrative law l Respondent's request for oral argument is hereby denlied because the record, exceptions, and briefs adequately set forth the issues and the par- ties' positions. 2 Member Penello agrees with the Administrative Law Judge's conclu- sion that Respondent's employees Were engaged in protected concerted activity when they walked ut of the plant on February 23. 1978, in pro- test over anticipated changes in their scheduled work hours and lver the discharge of a supervisor h ho had attempted to convince management officials inot to change the employees' scheduled hours. In so concluding, however, Member Penello does not rely on Puerto Rico Food Producrt Corp., 242 NLRB 899 (1979), enforcement denied in pertinent part 104 LRRM 2304, 88 LC 12.060 (Ist Cir. 1980). cited by the Administrative Law Judge. Rather. Member Penello relies n the test set forth in Plasti- lie Corporation, 153 NlRBH 180 (1965). enfd i perlinent part 375 F.2d 343 (8th Cir. 1967). See Ola-lnn d/b/a Ilohday Inn of Helnryeltu, 198 NL.RI 410 (1972). enfd 488 F 2d 498 (10th Cir 1973) In adopting the Administrative Ltaw Judge's conclusion that the Union did not offer al] improper inducement to employees to sign union aulhori- zation cards. Member Penello does not rely on .. D. Mcarland Conpau- ny, 219 NI.RB 575 (1975). enfd. 572 F 2d 256 (th Cir. 1978), cited h) the Administrative I.aw Judge Although Member Penello dissented in Mcfarlund, he notes that the statement made by the uion representative in his case did niot conditlilo the waiver of initiation fees upoi member- ship in the Union as did the statement involsed in MclFarland a Members Jenkins and Penello agree with the Admilistrative Law Judge that the bargaining order should issue as of March 15 1978. the date on which the nion attained its majority H1oe\cer, i accordance with his separate opinion in Beasly Eneirgy. Inc.. d/b/ua Peker Run Coal 252 NLRB No. 151 Judge, we conclude that even if the Union should win the election after a revised tally of ballots is issued, that it is entitled to both a certification and a bargaining order. If the Union prevails in the election, the bargaining order will issue only to correct any unilateral changes Respondent may have made during the time it had an obligation to bargain with the Union. 4 ORDER Pursuant to Section 10(c) of the National Labor Relations Act, as amended, the National Labor Re- lations Board adopts as its Order the recommended Order of the Administrative Law Judge and hereby orders that the Respondent, S. L. Indus- tries, Inc. and Extruded Products, Corp., Madison, Connecticut, its officers, agents, successors, and as- signs, shall take the action set forth in the said rec- ommended Order, except that the attached notice is substituted for that of the Administrative Law Judge. IT IS FURTHER ORDERED that the proceeding in Case 1-RC-15668 is hereby remanded to the Re- gional Director for Region I to take the necessary action pursuant to the following Direction. DIRECTION The Regional Director for Region I is hereby di- rected to open and count the ballots of Kathleen Blake, Doreen Bowser Cook, William Cook, Ruth Davis, Mark Faiella, Carol Gaul, Janice King, Jessie Miller, Gloria Niemi, Dana Pitts, Gregory Spaulding, Melissa Spaulding, Chris Stahlheber, and Oren Thompson and that an amended tally of ballots be served on the parties. Thereafter, the Re- gional Director shall proceed in the manner set forth by the Administrative Law Judge in his Deci- sion, except as modified by the amended remedy herein. Company. Ohio Division #1, 228 NLRB 93 (977), Chairman Fanning would issue a prospective bargaining order 4 See, e.g., The Great Arlanic & Pacific Tea Company, Inc., 230 NLRB 766., 767--768 (1977); Pope Maintenance Corporation, 228 NLRB 326, 344, 348 (1977). APPENDIX NOTICE To EMPLOYEES POSTED BY ORDER OF THE NATIONAL LABOR RELATIONS BOARD An Agency of the United States Government WE Wll.L NOT threaten our employees with plant closure because of their union activities. WE WI.L NOT promise our employees bene- fits if they reject union representation. 1058 S. L. INDUSTRIES, INC WE WIll. NOT require our employees to be interviewed as a condition of reinstatement fol- lowing any protected concerted work stop- page. WE WILL NOT interrogate employees about their protected concerted activities. WE WILL NOT grant additional paid holidays in order to discourage employees from engag- ing in union activities. WE WILL NOT announce or establish an em- ployee committee to handle employees' griev- ances. WE WIL.L NOT convey to our employees that they cannot be reinstated because charges in their behalf are pending. WE WIL.L NOT restrict our employees from communicating with one another in the plant because of their protected concerted or union activities. WE WILL NOT discharge, refuse to reinstate, layoff, or otherwise discriminate against our employees in regard to their hire or tenure, or any term or condition of employment, because they engage in protected concerted activities or activities on behalf of United Rubber, Cork, Linoleum, and Plastic Workers of America, AFL-CIO, or any other labor organization. WE WILL NOT in any other manner interfere with, restrain, or coerce our employees in the exercise of their right to engage in or to re- frain from engaging in any or all the activities specified in Section 7 of the Act. These activi- ties include the right to self-organization, the right to form, join, or assist labor organiza- tions, to bargain collectively through represen- tatives of their own choosing, and to engage in other concerted activities for the purpose of collective bargaining or other mutual aid or protection. WE WIL L offer the following employees im- mediate and full reinstatement to their former jobs or, if those jobs no longer exist, to sub- stantially equivalent jobs, without prejudice to their seniority or other rights and privileges previously enjoyed, and WE WILL make them whole for any loss of earnings they may have suffered as a result of the discrimination against them, plus interest. Alma Beecher Kathleen Blake Carol Lee Clark Doreen Bowser Cook William Cook Ruth Davis Pedro Diaz Merea Jones Janice King Christine Leibowitz Cheryl Martin Jessie Miller Goria Niemi Dana Pitts Daniel Dineen Craig Estelle Mark Faiella Mary Garigliano George Garland Carol Gaul Willaim Hawley Nelson Platts, Jr. Gregory Spaulding Melissa Spaulding Brett Stahlheber Christopher Stahlheber Francis Thompson Orin Thompson WE WILL, upon request, recognize and bar- gain collectively in good faith with United Rubber, Cork, Linoleum, and Plastic Workers of America, AFL-CIO, for the unit described herein with respect to rates of pay, wages, hours of work, and other terms and conditions of employment, and WE WILL. upon request embody in a signed agreement any understand- ing reached. The bargaining unit is: All production and maintenance employees at our Madison, Connecticut, plant, but ex- cluding truckdrivers, office clerical employ- ees, professional employees, guards, and su- pervisors as defined in the Act. S. L. INDUSTRIES, INC. AND EXTRUD- ID PRODUCTS, CORP. DECISION SIATLEMENT OF1 THE CASEI DAVI) S. DAVIDSON, Administrative Law Judge: The charges in these consolidated cases were filed by United Rubber, Cork, Linoleum and Plastic Workers of Amer- ica, AFL-CIO, referred to herein as the Union, on March 13, May 12, July 11, and August 4, 1978. An original complaint issued on April 19, 1978, and was fol- lowed by several amended consolidated complaints, the last dated January 23, 1979, which was further amended at the hearing. In its answer Respondent denies commis- sion of any unfair labor practices and asserts various af- firmative defenses. In Case -RC-15668 a petition was filed on March 28, 1978, by the Union seeking to represent the production and maintenance employees of S. L. Industries, Inc. A hearing was held on April 20, 1978, and on June 7, 1978, the Regional Director issued his Decision and Direction of Election. The election was conducted on July 7, 1978, resulting in a vote of 24 against the participating labor organizations, 6 in favor of the Union, and 25 challenged ballots. The Union thereafter filed timely objections to conduct affecting the results of the election. On August 22, 1978, the Regional Director issued a Supplemental Decision in which he found that the Union's first and third objections should be consolidated with the com- plaint for purposes of hearing and decision. ' The Re- gional Director also overruled the challenges to five bal- lots and sustained the challenges as to five ballots. With respect to the remaining 15 challenged ballots the Re- 'The Ulnion had pre\iously withdrawn is other objeclions 1059 DECISI()NS ()F NATIONAL IA()OR RL.AIlI()NS ()ARI) gional Director found that the issues raised by the chal- lenges were related to those raised by the complaint and therefore consolidated those challenges with the unfair labor practices for purposes of hearing and decision. A hearing in the consolidated cases was held before me in New Haven, and Old Saybrook, Connecticut, be- tween February 26 and March 8, 1979. At the conclusion of the hearing the parties waived oral argument arind were given leave to file briefs which have been received from the General Counsel and Respondent.2 The issues raised by the pleadings and the evidence are: 1. Whether S. L. Industries, Inc. (S.L.), and Extruded Products, Corp. (E.P.), referred to herein collectively as Respondent, constitute a single employer and/or alter egos within the meaning of the National Labor Relations Act, as amended, herein the Act. 2. Whether employees of S.L. were engaged in pro- tected concerted activity when they walked off their jobs on February 23, 1978," following the discharge of a supervisor. 3. Whether Respondent unlawfully required all em- ployees who walked off their jobs to meet individually with management to negotiate their reemployment and unlawfully interrogated them during such meetings. 4. Whether Respondent unlawfully discharged Janice King, Christine Leibowitz, and Jessie Miller on March 3 because of their participation in the walkout and union activities and thereafter refused to reinstate them because charges were pending in their behalf. 5. Whether Respondent gave unlawful assistance to a labor organization on March 7 by entering into an agree- ment with it covering S.L.'s employees at a time when it did not represent a majority of S.L.'s employees. 6. Whether Respondent unlawfully granted S.L. em- ployees a paid holiday on Good Friday, March 24. 7. Whether Respondent rendered unlawful aid to an hourly employee committee by posting a notice that it was being established to handle grievances and other problems. 8. Whether Respondent unlawfully threatened at var- ious times after March 10 that S.L. would close its busi- ness if employees chose to be represented by a union. 9. Whether Respondent discriminated against Leibowitz after reinstating her on May I by assigning her to a job more onerous than the job she previously held and denying her the normal hours and lunch period of other employees in her department. 10. Whether Respondent on May 3 unlawfully ordered employees not to speak to Leibowitz during working hours after her reinstatement. 2 In its brief Respondent reraises its oral motion a the hearing to amend its answer to add as its eighth affirmative defense the issue of racial and sex discrimination by the Union. Although Respondent now argues that it was denied the opportunity to present evidence showing discriminati on by the UJnion, Respondent's motion sought to place on the General Counsel the burden of showing an absence of discrimination, and at the hearing it never offered to prove. or represented that it had, evi- dence Io show such discrimination N'atter Manufacluring Corporalom v. N.L.R.B., 50K F.2d 948 (9th Cir 1978), cert. denied 439 U.S 1128, which Respondent cites in support or its posiion, to the contrary supports the denial (of the motion as it was made at the hearing :' All dates referred to herein occurred in 1978, unless otherwise stated. 11. Whether Respondent discriminatorily laid off ap- proximately 24 employees on May 5 and an additional employee on May 19 and thereafter discriminatorily re- fused to reinstate them. 12. Whether Respondent by letter dated July 3 im- pliedly promised benefits to employees if they voted against a union, threatened plant closure if they voted for one, and conveyed that selection of a union would be futile. 13. Whether Respondent discriminatorily refused to grant Leibowitz a vacation or vacation pay on and after May 22 and discriminatorily discharged her on July 17. 14. Whether any or all of the challenged ballots cast in the July 7 election should be counted. 15. Whether the Petitioner's objections to conduct af- fecting the results of the representation election held on July 7 should be sustained. 16. Whether Respondent engaged in unlawful conduct which destroyed the Union's majority status and made a fair election impossible so as to warrant entry of an order requiring Respondent to bargain with the Union. Upon the entire record in this case and from my obser- vation of the witnesses and their demeanor, I make the following: FINDIINGS AND CONCLUSIONS 1. THE BUSINtESS OF RESPONDENTS S.L. is a Connecticut corporation with its principal office and place of business in Madison, Connecticut, where it engaged until August 3, 1978, in the manufac- ture, sale, and distribution of extruded polyethylene products such as garbage liners, drum liners, and packag- ing items. Since 1977 Seamless Pipeline Coatings, Inc. (Seamless), a wholly owned subsidiary of S.L., has shared the Madison premises, occupying approximately one-third of the space, and has manufactured pipeline coatings for oil and gas transmission lines utilizing a sheet product made for it by S.L. on S.L.'s equipment. 4 At all times material E.P. has been a New Jersey cor- poration with its principal place of business in Clifton, New Jersey, where it also manufactures extruded poly- ethylene products but of a different gauge than those manufactured by S.L. and with different equipment. At all times material Donald Atkinson has been presi- dent of S.L. and Seamless. Until June 30, 1978, Atkinson was chairman of the board and chief executive officer of E.P., and Robert Hayes was its president. Atkinson par- ticipated in major decisions for E.P., and Hayes handled its day-to-day operations. On June 30 because of Hayes' illness, Atkinson replaced him as president of E.P. while retaining his other positions. At all times material Doro- thy Wright has been a vice president, secretary, and trea- surer of all three corporations. At all times material S.L. and E.P. also each had three or four additional vice presidents who did not hold office in the other corpora- tion. Each of the corporations had three directors of whom two were Atkinson and Wright. In the case of 4 Until 1977 Seamless was a division of S L. In 1977 it was separately incoirporated to facilitate doing business in Oklahoma where the name S. had been registered by an unrelated entity as its business name I Oh( S. L. INDUSTRIES, INC. S.L. the third director was Walter Reuman, a representa- tive of S.L.'s bank. In the case of E.P. the third director was its president, Hayes.5 Ownership of S.L. and E.P. was also interlocking. At- kinson owned 76 percent of the stock of S.L. and Wright owned 2 percent. Atkinson also owned 98 percent of the stock of a fourth corporation, Ark, Inc., which in turn owned two-thirds of the stock of E.P. The remaining third of the stock of hI.P. was owned by Hayes.6 Ark, Inc., also owned the building in Madison in which S.L. was located until August 3, 1978; in which E.P. was lo- cated after that date, and in which Seamless was located at all times material. Ark also handled the sales of laun- dry bags made by S.L.'s Ark department until August 3. Records for S.L., Seamless, and E.P. have been main- tained at all times material at Madison under the direc- tion of Wright. The three Corporations have shared the use of the common computer and utilized the same ac- countant who prepared their statements and tax returns. When E.P. negotiated a new collective-bargaining agreement for its Clifton employees which became effec- tive January 3, 1978, Atkinson was consulted and shown a copy of the document. He participated in the discus- sion of guidelines for the wage increases before the nego- tiations and participated in negotiation of an earlier col- lective-bargaining agreement covering these employees. In March 1978, as set forth below in more detail, Atkin- son and Hayes signed an agreement on behalf of S.L. and E.P. recognizing the Machinists Union as the repre- sentative of the production and maintenance employees at S.L.'s Madison plant, in which they acknowledged that S.L. and E.P. "function as a single employer within the meaning of the NATIONAL LABOR RELATIONS ACT," that "products are produced and customers served by the interproduction of the two plants," and "that ownership and control is direct and substantial with respect to the operation as a whole." Whatever operational separation may have existed be- tween S.L. and E.P. before the spring of 1978, the execu- tion of this agreement heralded a period of merging iden- tity between the two corporations. During the spring and summer when S.L. had difficulty obtaining additive resin from its suppliers to meet its production needs, it purchased E.P.'s scrap to use as raw material. From the time that Atkinson replaced Hayes as president of E.P., Atkinson and Wright made critical decisions on behalf of both corporations resulting in termination of all manufac- turing operations by S.L. and the replacement of S.L. by E.P. as the operator of S.L.'s machinery in the Madison plant, with the same employees who had been working for S.L. when operations terminated continuing to work for E.P. With the exception of a new production man- ager, supervision remained the same, and Atkinson in a single letter notified employees of both the bad news that there was no more work for them as employees of S.L. s The name of the third director of Seamless does riot appear in he record However, there is no question that Seamless a kholly oned subsidiary of S L, and S.. have at all times material constituted a single employer, and I so Find . While testimony as to the ow nership of S. . and E P is inconclusi:c. tax returns for S L. and EP. placed in evidence h the General Counsel and Respondent, and particularly the Ne%. Jerse? tax returns for E '. es- tablish the common iornership and the good news that they were all invited to work for E.P. at Madison under comparable terms of employment. While Atkinson and Wright described the transaction as a termination of business by S.L. and a leasing of its premises and equipment to E.P. on a month-to-month basis, it was Atkinson and Wright who made the deci- sions and negotiated the leases for S.L. and the same At- kinson and Wright who made the decisions and entered into the leases for E.P., without any written memorial in the form of director's minutes or lease agreements. 7 I find that in the spring and summer of 1978, Atkinson and Wright exercised the power of control over S.L. and E.P. which flowed from Atkinson's ownership of the controlling interest in both corporations and their control of both boards of directors to assert control over operat- ing and labor relations policies of both corporations to the end of having E.P. replace S.L. as the operator of the business formerly conducted by S.L. at its Madison plant. I find that S.L. and E.P. at times material herein were a single employer and that in August 1978 E.P. became the alter ego of S.L.8 As S.L. and E.P. have direct inflow and outflow of goods and materials in in- terstate commerce exceeding $50,000 a year, I find fur- ther that it will effectuate the policies of the Act to assert jurisdiction in this proceeding. II. THE LABOR ORGANIZATION INVOI VED The Union is a labor organization within the meaning of the Act. III. THE ALLEGED UNFAIR ABOR PRACTICES A. The February 23 W'alkout 1. The facts Until the spring of 1977 the S.L. Madison plant had operated with three 8-hour shifts on a schedule of 12 consecutive workdays followed by 2 days off every other weekend. In the spring of 1977 because of high ab- senteeism S.L. shifted to a 5-day workweek with every weekend off. S.L. remained on that schedule thereafter. In February 1978, S.L. lost production time on its ex- trusion machines due to bad weather. This loss of pro- duction came at a time when S.L. had for some time been experiencing increasing operational losses. S.L. also was finding it increasingly difficult to obtain additive resin, the raw material used in making S.L.'s products, from its principal supplier, Arco Polymers, because of Arco's unwillingness to ship resin to S.L. without a re- duction in the outstanding balance on S.L.'s account due Arco. Atkinson, Wright, and Plant Manager Lambert Harrison felt themselves under pressure to make up for lost production, ship products to customers as quickly as possible, and generate cash flow to alleviate its problems obtaining additive resin. In order to make up for the lost 7 Wright testified that she beliesed notes were aken of the director's meeting a;d were given to Respondent's laA er, Atkinson testified that onl rnoltes ere ritten on restaurant napkins andi destroyed at the con- clusilln of the meetings Although he General C(ounsel sbpenaed the nlllutes of these meetings, none "ere produce(d : LruZle ', nint. I, L. 224 NLRH i 5. h4 (19761 1061 DECISIONS OF NATIONAL LABOR RELATIONS BOARD production time Atkinson, Wright, and Harrison dis- cussed the possibility of reverting to the 12-day work schedule, and on the weekend of February 18 and 19 most of the employees at the plant were asked to work overtime to make up production. During the following week there were rumors throughout the plant that a return to the 12-day workweek was being considered. On February 23, day-shift employee Jessie Miller re- ported early to work overtime before her shift started at 8 a.m. In the early morning hours several employees on the midnight to 8 a.m. shift told Miller that their foreman had told them that they would be going on the 12-day schedule. Miller spoke to Day Foreman George Nadeau about it, and he showed her an outline of suggestions written by him which he felt would increase production without changing the work schedule. In his outline Nadeau listed a number of problems including material shortages, maintenance problems, mistakes in the pro- cessing of orders, employee turnover, lack of planned wage increases, poor morale, crowded working condi- tions, and lack of communication, and Nadeau asserted that if these problems were resolved weekend work would not be necessary to make up for production lost during the week. That morning Nadeau put copies of his outline on the desks of Atkinson and Wright. In midmorning Atkinson called Nadeau to his office and discharged him for dis- loyalty. Word of Nadeau's discharge spread quickly through the extrusion department, and a copy of Nadeau's out- line, which Nadeau gave one of the employees, was cir- culated among them. The employees became upset, and one of them told the operator of the machine on which she worked to shut the machine off because they were going to walk out. Operators shut off several machines but left others running, and the employees in the extru- sion department left the plant. As Jessie Miller left, she saw Atkinson, called him an "asshole," and told him she did not see how he could have fired Nadeau. Atkinson told her that Nadeau had resigned, asked her if she was through, and told her to get out before he had her arrest- ed for trespassing. As Miller left she told Atkinson that he had better go out and look to see who was running the machines. 9 Several employees testified as to their reasons for walking out, largely to the same effect. Sylvia Spaulding testified that she walked out because when she heard Nadeau was fired she felt the employees were stuck with the 12-day work schedule and they had lost the only person who would go into the office and talk to manage- ment on the employees' behalf. Janice King testified that she walked out because she was disturbed at the thought of working weekends when the working time during the week was not well used and because of Nadeau's dis- " Sceeral employees teslified that either shhortly htbefre or as they left the planl the 5 says a notice posted annoiuncing insltition of the 12-da work .chedile Wright and Atkinson testified that no decisiol to revert to that schedule had been made and that hey kn es of no such nolice Respoidenlt contends that the only notice posted was a notice of week- end work for the previous weekend Assuming that sWas tihe only itice posted rel;lating to weekend work, it is nonletheless clear thai the 12-day sihcdule i lss undeitr discussion aild that the hellef sa;s 'idespread among ellphloces that it .as about o hbe reinstituted charge. She testified that Nadeau's discharge upset her because he made employees feel like they were doing a good job, helped them with work problems, and cared about their work. Christine Leibowitz testified that she was concerned that it would be hot in the plant when warm weather came, they had not had raises in a long time, she feared changes in the work schedules, and she did not want to be there without Nadeau. With respect to Nadeau she testified that he stuck up for the employ- ees and tried to help them if they had a complaint. Jessie Miller testified that she walked out because she felt that if S.L. would fire Nadeau after 10 years for handing in his list of suggestions they would not treat other employ- ees much better and also because she did not want to work weekends. With respect to Nadeau she testified further that "he was the only real person there who seemed to have an ideal concern for the employees. We knew that if you asked for a raise or anything like that that he would go check on it which other foremen would not. And, he was also the only one who seemed to really try and communicate our interests to the front office." After the extrusion department employees walked out, management personnel went into the plant to shut down the machines that were still operating. Because of the nature of the machines, the process required about 2 or 3 hours. ' 0 During the next several days groups of employees met together on several occasions and discussed getting Nadeau reinstated and getting assurances from Atkinson that they would not be required to work more than a 40- hour week. On several occasions they attempted to send representatives to talk to Atkinson on their behalf, but Atkinson refused to deal with any of the employees, except as individuals, and made his position clear that Nadeau would not be rehired under any circumstances. At the various meetings Janice King, Christine Leibowitz, and Jessie Miller assumed responsibility for making telephone calls to keep employees informed and to give them notice of meetings. On Friday, February 24, a few of the employees who had walked out returned to work, but that afternoon the second shift did not report, and Atkinson and Wright de- cided to close the plant for the weekend. On the same afternoon Gene Thompson came to the plant and told Atkinson and Wright that he, his family, and his car had been threatened and that he no longer wanted to work at the plant. Atkinson told him that he did not want anyone working at the plant who was afraid and that if he had been threatened that he should protect his family. Atkinson told Thompson to go to the ' Respondent states in it, brief that the employees walked out leaving all the machines running and causing thousands of dollars worth of dalnage to S. However, I have credited William Cook and Dana Pitts that some of the mlachines were shut down by the operators before they left I also find that the record references cited by Respondent in its brief do noilt estlblish that there ias any damage to the machines, and there is il CeidenceI ill the record to establish that any actual damage occurred. other than testimony of Wright that, when management representatives senl i to the produclion area there was plastic falling all over the place anid bags were popping out of the machines The statemeit in Respon- dcil's brief is not suppored hby the record 1062 S. L INDUSTRIES, INC police and be kind enough to make a statement to the police officers if he wanted to, but said that he and Wright did not care to know the names of whoever made the threats to him. Later that afternoon, Atkinson and Wright spoke to police officers about their concern over possible interference with employees who wanted to work and threats which they had heard had been made. Wright and Atkinson named Nadeau, King, Leibowitz, and Miller as persons who either made threat- ening telephone calls or knew who made them. At their request, two police officers were concealed in the plant over the weekend at S.L.'s expense. Police officers remained at the plant over the weekend and no unusual incidents occurred. On Monday morning, February 27, the employees met at a Howard Johnson's restaurant. They tried once again to send an employee, Glenn Woodworth, as a representa- tive to speak with Atkinson on their behalf, but Wood- worth returned to tell them that Atkinson would not ne- gotiate with him as a representative but that they would have to go back as individuals to negotiate for their jobs and talk to Atkinson and Wright about their problems. Woodworth also reported under no circumstances would S.L. take Nadeau back. At that point Nadeau asked which of the employees were going to stick with him, and several, including King, Leibowitz, and Miller, wrote their names on a piece of paper affirming their in- tention to stay out of work in support of Nadeau. As the meeting was about to break up, Union Repre- sentative Morbidelli arrived. He had come to talk to the employees as a result of reading about the work stoppage in a newspaper. Morbidelli told the employees that they needed a union and handed out authorization cards which a number of employees signed and returned to him. Morbidelli asked them to appoint a committee and King, Miller, and Leibowitz volunteered to serve as the committee to maintain contact with the Union, pass out cards, make telephone calls, and help with organizing the plant. Morbidelli also told the employees that the most important thing for them to do at that point was to return to work to make certain that the cards they had signed would count. At the end of the meeting, the em- ployees went to the plant to return to work. 2. Concluding findings The General Counsel contends that there were dual reasons for the February 23 walkout, Nadeau's dis- charge, and the fear of mandatory weekend work, hut that the walkout was in any event protected concerted activity. Respondent contends that the only reason for the walkout was the discharge of Nadeau and that it was not protected. Assuming arguendo that Nadeau's discharge was the only cause of the walkout, I would nonetheless find that concerted action of the employees to protest the dis- charge was protected. In its recent decision in Puerto Rico Food Products Corp.. ec., the Board stated: ~ I have credited Madlslon 'Police .leutenant Darling and Delective Sargeanlt Dana. ho ,o tesltifid I do not credit Wright and Alkinion that the plice reported lalk of iollence to hem or suggestcd the plant ,takeout Whether concerted actions by employees to pro- test an employer's selection or termination of a su- pervisor fall within the purview of Section 7 of the Act depends on the facts of each case. In this regard the Board has consistently held that where facts established that the identity and capability of the supervisor involved has a direct impact on the employees' own job interests they are legitimately concerned with his identity and thereby have a pro- tected right to protest his termination. 2 Despite Respondent's contrary contention, I find that the facts here establish that the identity and capability of Nadeau had a direct impact on S.L.'s employees' job in- terests, giving them a legitimate concern with his identi- ty and thereby a protected right to protest his termina- tion. Nadeau was a line foreman who directly supervised the extrusion department employees. While there is no question that Nadeau was a supervisor, Respondent itself has taken shifting positions with respect to the status of Curry who held a comparable position. The testimony set forth above shows that employees viewed Nadeau as one who was concerned with them as individuals and that they looked to him not only for help in their work but for protection of their interests in dealing with man- agement. Lacking any other representative, they saw him as the one who brought their views to management and pursued their interests. That perception was necessarily heightened by the outline which Nadeau gave Atkinson and Wright on the morning of his discharge. The outline, seen by a least one employee before Nadeau's discharge and circulated among the employees immediately after it, showed that Nadeau had sought to persuade manage- ment to take other measures to increase production and to avoid mandatory weekend overtime work which the employees opposed. Thus, in a matter of immediate con- cern to employees, Nadeau had again taken their side, and his termination for having attempted to advance that position could only be viewed by employees as diminish- ing their future ability to communicate their needs and desires to management. I find that Nadeau's identity and capability as the immediate supervisor of the extrusion department employees had a direct impact on their job interests which gave them legitimate concern with his identity and a protected right to protest his termination. In addition, the evidence in this case supports a finding that the employees' concerted action was not simply caused by Nadeau's discharge but was also due to the employees' own concern over the rumored change in work schedules with which Nadeau had attempted to deal with in his outline. There were rumors in the plant that the employees would be required to work a 12-day schedule, fed by the fact that the employees worked the previous weekend and reports from night-shift employees that their foreman had told them weekend work would be required. Management not only was considering such a change, but it had also sounded out its foremen about it and had asked them to sound out employees about their feelings about working on a 12-day schedule. Thus, whether or not any notice had been posted, the rumors - 242 NIRB 88q 1i 97q) 1063 DECISIONS OF NATIONAL LABOR RELATIONS BOARD were more than idle speculation and employees had cause to be concerned. That Nadeau was discharged for suggesting ways to achieve Respondent's production ob- jectives without reversion to a 12-day schedule gave em- ployees cause to believe that their own negative feelings about working such a schedule were not likely to be heeded. Thus, Nadeau's discharge was the spark which ignited an existing atmosphere of dissatisfaction created by rumors of reversion to a 12-day work schedule. That both concern for Nadeau and concern over the work- week were intertwined causes for the walkout is evi- denced not only by the employees' testimony as to their reasons for walking out but by their discussions in their meetings after the walkout and their instructions to those they asked to represent them in approaching Atkinson. Thus, the employees' protest over the discharge of Nadeau, a low-level supervisor, was also "in fact a pro- test over the actual conditions of [their] employment."'3 The question remains whether, as Respondent con- tends, the manner and means employed by the employees in their protest nonetheless were unreasonable and de- prive it of protection. In Puerto Rico Food Products Corp., supra, the Board rejected a similar contention, and reaffirmed its long- standing position stating: In our view . . . the application of Section 7 does not depend on the manner or method by which em- ployees choose to press their dispute, but rather on the matter they are protesting.8 We must, therefore, respectfully disagree with any rule or holding in which the protected nature of the concerted activ- ity would depend on the reasonableness of the method of protest in relation to the subject matter in dispute. 9 Thus, in the instant case, whether the cessation of work was a wise, necessary, justifiable, or reasonable reaction to Respondent's discharge of Perez is not germane to our inquiry. What is rel- evant is that the alleged discriminatees, legitimately concerned about the impact of Perez' termination on their own working conditions, decided that a work stoppage was appropriate for their mutual aid and protection. The employees were thus engaged in a brief economic strike for which they could not lawfully be discharged. s See NL. RB. v. Washington Aluminum Company. 370 U.S. 9, 16 (1962): N.L.R.B. v. Mackay Radio & elephone Co., 304 U.S 333 (1938); Henning and Cheadle. Inc., 212 NLRB 776, 777 (1974). 9 See, e.g. Plastilite Corporation, 153 NLRB 180 (1965). Apart from any other consideration, in the light of this recent clear holding by the Board, Respondent's conten- tion must be rejected that the work stoppage lost its pro- tection because it was unreasonable. Furthermore, even if a test of reasonableness of method of protest were ap- plied, I would reach the same conclusion in this case. Respondent contends that the walkout was unreasonable because it occurred in midday, without prior notice to management, without any prior attempt by the employ- '.4 Abilities and GoCodwill. Inc. v. NI..R.B., 612 F 2d 6 (Ist Cir. 1979) See also N. L R.B. v Okla-lnn d/h/a lohldav Inn of ienry'rrta, 488 F 2d 498 (101h Cir. 1973) ees to discuss their concerns with management, and without shutting down their machines. However, offset- ting these considerations is the fact that the employees' concerns, as set forth above, were not confined to Na- deau's termination and its general impact on their work- ing conditions. They were already upset because of their fear of reversion to mandatory weekend overtime work, and in walking out they were protesting the threatened change in their own conditions of employment as well as Nadeau's discharge. The fact that Nadeau's precipitous discharge arose from his attempt to persuade manage- ment that mandatory weekend overtime was not needed both served to intensify their fears and to discourage any thought that discussion of their concerns with manage- ment would lead to a different result than Nadeau had gained. Indeed, as Miller testified, she felt that, if man- agement discharged Nadeau after 10 years for presenting his suggestions, it would not treat nonsupervisory em- ployees any better. With respect to the machines, some were turned off. Those which were not turned off could not be turned off quickly, but management was advised that the employees were leaving, and there were man- agement personnel in the plant who were able to and did shut down the machines without any demonstrated damage to them. To be sure, the employees could have handled their protest differently, but they were not previously orga- nized as a group. Insofar as it appears, they had never engaged in any protest action before, and they were clearly reacting in a charged emotional atmosphere. Moreover, management also might have acted differently so as to defuse the situation. Having just read Nadeau's outline, stating among other things, that management failed to communicate adequately and was unaware of problems on the production floor, management removed Nadeau from the floor in midshift without making any effort to tell employees what had happened and why or apparently giving any thought to how this news should be given to the employees or its possible impact on them. Thus, the walkout did not occur in a vacuum and I find that in the light of all the surrounding circumstances the method of protest used by the employees was reasonable and was protected concerted activity.' 4 B. The Interviews of the Strikers 1. The facts When the employees went to the plant on February 27, they were required to meet individually with Atkin- son, Wright, and Harrison before they were allowed to return to work. Atkinson did most of the talking for management and asked employees a number of questions, including what had happened, why they walked out, who told them to walk out, how the whole thing started, whether they had any grievances against the Company, 4 N.L.R.B. v. Okla-Inn, supra. Respondent's further contention that the alkout evidenced total disloyally to the Employer and therefore was illdefensible is without merit. N.L.R.B. v. Local No. 1229. Interna- rional Brotherhood of Electrical Workers, 346 U S. 464 (1953), on which Respondent relies, is inapposite. N.L.R.B. v Washington Aluminum Com- pany. Inc., 37(0 U.S 9, 17 (1962). 1064 S. I. IND)JSRIFI S INC what their feelings were, and whether the Company had treated them fairly. Atkinson also asked at least one em- ployee whether there were one or two employees who seemed to be leading the meeting at Howard Johnson's that morning or who were doing most of the talking. At- kinson also asked employees if they had any information about threats of violence made during the walkout but told them if they had such information to please commu- nicate it to the police. Atkinson did not ask any questions about a union. Some employees asked him what hap- pened to Nadeau, and he explained. He also told them that the 12-day work schedule would not be manda- tory.' Most of the employees told Atkinson that they were sorry about the walkout, that someone had started it, and that they all had followed but were not really sure why because they did not feel they could jeopardize their own livelihoods because of Nadeau and his problems with the Company.' 6 After the interviews, Atkinson, Wright, and Harrison conferred and decided who should return to work. Ac- cording to Atkinson, the decisions were based on the in- terviews, the information the employees gave them, their feelings toward the Company, and whether or not there were any demands or conditions connected with their return that would have to be met to make them happy. Atkinson testified that in deciding whether a person was to be allowed to return to work it was "Very simple. If a person felt that they wanted to return and work for me and accept my paycheck and expressed it so, and were not going to have a continual labor disturbance, I felt, then, that they were a good worker." 2. Concluding findings The General Counsel contends, contrary to Respon- dent, that Respondent violated Section 8(a)(l) by requir- ing the employees to be interviewed before they were al- lowed to return to work because they were entitled to unconditional reinstatement upon request. There is no doubt that management had a legitimate need for information about the walkout so as to deal in- telligently with its problems. It had been faced with a sudden work stoppage, there had been no communica- tion between the employees and management before the work stoppage occurred, and there clearly was employee dissatisfaction which management needed to know about. In addition, management had received some reports of threats which it was entitled to investigate. However, Respondent did not merely seek to interview employees to answer its legitimate questions but made the inter- views a condition of reinstatement so that it could deter- mine whether or not employees should be reinstated de- pending on what the interviews disclosed as to the likeli- hood that their discontent would continue after reinstate- ment. As the requirement of the interviews for that pur- pose had no legitimate business justification, Respondent thereby violated Section 8(a)(1) of the Act.' 7 Moreover, is These findings are based on a composite of he testimony of Atkin- son, Wright, and employee SyNIia Spaulding mi Atkinson so testified '7 Sealera Bus Service. Inc., 210 NLRB 63 (1974); Dunn Brothcrs. Incor- porated. t/a Fisher Stove Works,. 235 NLRB 1032, 1037 (1978) were of legitimate interest to Respondent and included questions about the leadership of the walkout, the leader- ship at the Howard Johnson meeting, and what hap- pened at it. To that extent I find that Atkinson engaged in coercive interrogation in violation of Section 8(a)(1) of the Act. " ' C. The Refusal 7b Reinstate King, Leihowitz, and Miller 1. The facts King, Leibowitz, and Miller were among those who went to the plant and were interviewed by Atkinson, Wright, and Harrison. Although each was interviewed separately, the interviews followed essentially the same pattern. Each of them asked what her job status was, and Atkinson replied that he could not give them an answer until he cleared up the matter of the threats that were alleged to have been made during the walkout. Atkinson asked them if they knew anything about the threats, and each denied any knowledge of them. Atkinson said that the police were investigating the threats and that until the matter was cleared up there was not much that he could do. Atkinson offered to keep in confidence any- thing they told him about threats and also urged them to go to the police if they had any knowledge of threats. Atkinson also asked each of the employees why she had walked out. As each employee left her interview, Harri- son or Wright told her to call back later in the week to see if the matter was straightened out. In addition, during King's interview, she told Atkinson that the walkout would not have occurred if manage- ment had some kind of communication with the employ- ees which let them know what was going on. At the end of Leibowitz' interview she mentioned that she really wanted to know about her job because she had a babysit- ter until the end of the week for her children. Atkinson replied that he could not give her an answer until they had cleared up the alleged threats. At the outset of Mill- er's interview she apologized to Atkinson for calling him an "asshole" at the time of the walkout, and Atkinson said that he accepted her apology, that he understood it had been a very emotional situation, and that if she had not apologized there would not have been a job for them to discuss. Miller told Anderson that she walked out be- cause she was upset with the change in the work sched- ule and with the fact they had fired Nadeau. She told him that she felt that if they treated Nadeau that way they would not treat ordinary employees any better.'9 " Salant Corporatrion, d/b/a Carrizo Manufacturing Co., Inc, 214 NLRB 171, 180 (1974); Northern Telecom. Inc., 233 NL.RB 1374 (1977) B' These findings are based on a composite of the testimony of King. Leibowitz, Miller, and Wright. The major connict in the testimony goes to whether each of the employees conditioned her request for reinstate- ment on reemployment of Nadeau, as Atkinson testified. Atkinson also testified that they were denied reinstatement for this reason. He was not corroborated in this regard by Wright, who testified only that Leiboswitz and Miller said they thought Nadeau should get his job back and asked about it Wright did not testify that they were denied reinstatement be- cause their requests were conditional I have not credited Atkinson in this regard Apart from the fact that his testimony was not corroborated by Wright, these interviews occurred after Morbidelli had advised all the Continued ()h65 I)ECISIONS ()0 NATI()NAL IABOR R.ATIONS BOARI) A day or two after the interviews, King, Leibowitz, and Miller called Harrison and asked whether a decision had been made and Harrison told them to call back again. On Friday, when they received their paychecks for the previous week, each received a termination slip indicating that she had quit. 2. Concluding findings The General Counsel contends that the refusal to rein- state King, Leibowitz, and Miller violated Section 8(a)(l) of the Act because they had a right to reinstatement upon their unconditional offer to return to work. Re- spondent contends that King, Leibowitz, and Miller did not offer to return to work unconditionally, and that Re- spondent was entitled to deny them reinstatement be- cause it entertained a reasonable belief that they were re- sponsible for threats of violence to employees in the plant. With respect to the contention that their offers to return to work were conditional, I have found above that the credible evidence does not support this conten- tion and therefore reject it. With respect to Respondent's alternative contention, I find that Respondent had no reasonable basis to believe that King, Leibowitz, and Miller were responsible for threats of violence, and that in any event the evidence shows that they were denied reinstatement because of their concerted activities and not because of such a belief. Whatever information Atkinson and Wright may have had concerning threats, the evidence establishes little or no basis for Atkinson and Wright to have attributed such threats to King, Leibowitz, and Miller. Miller's epithet applied to Atkinson as she left the plant on the day the walkout was made in the heat of the moment and clearly did not render her activities unprotected, particularly as Atkinson accepted her apology at the time of the inter- view. Testimony as to police reports of alleged bar talk, even if credited, and the statements by Thompson on February 24 did not form a basis for belief that any spe- cific employees had engaged in misconduct. The only specific incident tied to King, Leibowitz, and Miller came from Atkinson's testimony that on Tuesday or Wednesday after the walkout employees Guilloty and possibly Scales reported to him that they had been threatened at the entrance to the driveway, at a time when according to Atkinson, King, Leibowitz, and Miller were present outside the plant. However, Guilloty testified that no such threats were made to him, and, with respect to Scales, Atkinson's own testimony is con- fused. Although he named Scales initially when asked who made the report, he then testified that it was Guil- loty. In any event, by his own account, Atkinson did not ask Scales or Guilloty who had made the threats but employees to seek reinstatement, and they were clearly impelled to go back to seek their jobs by that advice Moreover if the requests had been conditional, there would have been no occasion for management to defer its decision about reinstating the three women or to discuss at length whether they should be reinstaied, as Atkinson also testified In discredit- ing Atkinson I note that his version of these interviews is in conflict with those of the other witnesses in additional respects. including ~omission of any mention of the threats. which according to all the others, were ad- vanced as the reason why no answers could be given to heir inquiries about their job status at that time simply told them to report them to the police who would handle them. Although Wright was present at all the interviews and asked to state everything she knew about threats, she did not mention any report by Guil- loty or Scales. In the light of the testimony of Guilloty and Wright, I do not credit Atkinson as to the alleged reports of threats by Guilloty and possibly Scales. Apart from the above, there is no evidence of any other infor- mation possessed by Atkinson or Wright which might have formed a basis for their claimed belief. I find that Respondent had no reasonable basis for a belief that King, Leibowitz, or Miller was responsible for any threats of violence made in connection with the walkout. As for the reasons for denying them reinstatement, al- though Wright testified that the three employees were denied reinstatement because of the threats of violence, in his testimony Atkinson did not mention this reason, and the conflict in their testimony renders each of their versions suspect. In addition, although the three employ- ees were told that a decision on their reinstatement would not be made until the matter was cleared up, the matter was never cleared up, Respondent took no initia- tive after the interviews to clear it up, and Respondent separated the three employees without any further infor- mation to establish their responsibility for threats of vio- lence. Despite Atkinson's claim that he wanted to get to the bottom of the threats, he made little or no effort to find out who had made them. When Thompson told At- kinson that he was quitting because of alleged threats, Atkinson did not ask who made the threats but advised him to go to the police. Similarly when Atkinson inter- viewed other employees after the walkout he urged them to go to the police if they had any information, and testi- fied in apparent explanation that "We did not care who made the threat. It was out of our hands." Moreover, al- though Atkinson told King, Leibowitz, and Miller that the police were investigating the threats, the police offi- cers directly involved denied that any such investigation was made or requested, and concededly Respondent never received or sought any report from the police as to the results of such an investigation after the employee interviews. In sum, although Atkinson told the three em- ployees that their reinstatement depended upon clearing the matter up, the matter never was cleared up, and Re- spondent made no effort after their interviews to pursue it. I find that the stated reason was a pretext and that Re- spondent did not deny reinstatement to King, Leibowitz, and Miller because of their participation in alleged threats of violence. In seeking the true reason for the denial of reinstate- ment to King, Leibowitz, and Miller, one need not look further than Atkinson's testimony. Atkinson testified, as set forth above, that in deciding who should be returned to work, he, Wright, and Harrison considered the em- ployees' feelings toward the Company, whether there were demands that might have to be met to make them happy, and whether the employees were likely to cause continued labor disturbances. Atkinson also testified that he knew the three employees before the walkout "be- cause their conditions were so great of what they wanted to come back that they stood out." It is apparent that 1066 S. L. INDUSTRIES, INC King, Leibowitz, and Miller stood out as the three em- ployees least likely to be content and most likely to cause continued labor disturbances if reinstated. I find that King, Leibowitz, and Miller were denied reinstate- ment for that reason and that Respondent thereby violat- ed Section 8(a)(1) of the Act. 0 D. Union Activities and Signing of the Contract Between S.L. and the AM 1. The facts After the employees returned to work on Monday, February 27, the union organizing campaign continued. Over the next few weeks a majority of the employees signed union authorization cards. Employees discussed the Union among themselves both in and away from the plant, and Union Representative Morbidelli held frequent meetings with employees on and after Friday, March 3. On a number of occasions starting on February 28, Mor- bidelli went to the entrance to the plant driveway and distributed union authorization cards and leaflets to em- ployees as shifts were changing. On March 7 Atkinson met with a representative of In- ternational Association of Machinists, District Lodge 15, AFL-CIO, referred to herein as IAM, with whom E.P. had entered into a series of agreements covering the pro- duction and maintenance employees at E.P.'s Clifton plant. The most recent of those agreements became ef- fective January 3, 1978. On March 7 Atkinson and Hayes, president of E.P., executed a two-page agreement with IAM containing the following preamble: This AGREEMENT has been made and entered this 3rd day of January 1978 by and between SL In- dustries Inc. and Extruded Products Inc. herein called the Employer and the INTERNATIONAL ASSOCIATION OF MACHINISTS, DISTRICT LODGE 15, AFL-CIO, herein referred to as the UNION. WHEREAS the parties acknowledge that SL In- dustries and Extruded Products function as a single employer within the meaning of the NATIONAL LABOR RELATIONS ACT. WHEREAS products are produced and custom- ers served by the interproduction of the two plants. WHEREAS ownership and control is direct and substantial with respect to the operation as a whole. WHEREAS the union had demonstrated that it currently represents a majority of the employees employed by the employer at the two plants in- volved herein. WHEREAS prior agreements of the parties pro- vided for recognition of the accretion principle of NLRB law governing labor relations and recogni- tion for all plants of the employer. 20 As the walkout was protected concerted activity and Respondent had no legitimate and substantial business justification to deny them rein- statement, the denial of reinstatement to the three women ould iolate Sec 8(a)(1) of the Act hether or not the General Counsel established affirmatively. as it has, that Respondent's moltise as unlavful .L.R.B v tFleetowd Troader Co(.. 389 U S 375 1967) Scalra Bus Service. Inc supro. The agreement granted recognition to IAM as the col- lective-bargaining representative of all employees of E.P. and S.L. at Clifton and Madison, and it provided for the negotiation of further agreement to cover the Madison employees. The agreement contained a no-strike, no- lockout clause and provided a duration of 3 years until January 2, 1981. Its final paragraph was: In witness whereof, the parties hereto have here- unto set their hands and seals this 3rd day of Janu- ary, 1978. Following each of the signatures was also handwritten the date "1/3/78." Before this agreement was signed, IAM had engaged in no union activity at the Madison plant, and no employees had signed IAM authorization cards. 2. Concluding findings The General Counsel contends that Atkinson knew that IAM did not represent the majority of the employ- ees at the Madison plant at the time that he signed the contract on March 17 and that execution of the contract violated Section 8(a)(2) and (1) of the Act. S.L. contends that the allegation based on the IAM contract is barred by Section 10(b) of the Act and that in any event signing of the contract did not violate the Act. The allegations based on execution of the IAM con- tract were added to the complaint by amendment at the hearing after Atkinson testified as to the time and cir- cumstances of its execution. The initial charge in Case 1- CA-14700 filed on July 11, 1978, alleged, among other things, that S.L. had violated Section 8(a)(2) and (1) of the Act, that it had entered into and fraudulently con- cealed an exclusive bargaining agreement with IAM, a minority union, and that it had granted preferential treat- ment to that organization. These portions of the charge, however, were withdrawn on the recommendation of the Regional Office because of their apparent untimeliness based on the dates which appeared on the contract. The General Counsel contends that Respondent cannot complain now that the amendment to the com- plaint was untimely because withdrawal of the charge was due to S.L.'s misrepresentation and the amendment was made promptly after Atkinson's testimony. Respon- dent contends that the employees were put on notice as to the existence of the contract in April 1978 that the 10(b) period began to run when the employees were put on notice of the violation, and that there is nothing in the record to show that Atkinson had misrepresented when the contract was signed. I find that withdrawal of the original charge is attrib- utable to S.L.'s misrepresentation and that the amend- ment is timely. The charge was filed within 6 months of the time that the employees were put on notice of the existence of the contract, since that notice occurred at the April presentation hearing and the charge was filed on July 11, less than 3 months later. The charge was deemed untimeiy at that point, however, only because the contract on its face indicated that it was executed on January 3. Although Respondent contends that Atkinson did not misrepresent the execution date of the contract 1067 DECISIONS ()F NATI()NAL LABO()R REIATIONS H()ARD because at the representation hearing no one was asked when the contract was signed, the document itself con- tains the misrepresentation in its preamble, its execution clause, and the gratuitous addition of the handwritten dates following each of the signatures.2' As withdrawal of the charge was induced by Respondent's misrepresen- tation, S.L. cannot now be heard to complain that the amendment to the complaint is untimely. 22 Notwithstanding the above, I conclude that no order may be based on these allegations because IAM was not given notice and an opportunity to be heard in this pro- ceeding. Accordingly, I shall recommend that these alle- gations be dismissed.23 However, the evidence adduced as to the execution of the IAM contract, which was received before the com- plaint was amended, may be considered as evidence showing S.L.'s animus against the Union and as bearing on the credibility of Atkinson.2 4 Atkinson denied any knowledge of union activity among the Madison employees at the time the IAM con- tract was signed.2 5 He testified that the purpose of the contract was "To satisfy many years of negotiating, of which the Machinists requested that they be recognized at the Madison plant. In negotiations for the last three contracts they have asked for that recognition; and also because on February 23rd we had a walkout. And I said I felt the time had come that I gather we need some type of additional help in order to operate the plant." Except to the extent that Atkinson admitted that the contract was signed in reaction to the walkout, his re- maining testimony as to the contract is patently incredi- ble. As set forth above, the union organizing campaign had started more than a week before the contract was signed. There was a great deal of talk in the plant about the Union, and Union Representative Morbidelli had ap- peared outside the plant to distribute cards and leaflets. Atkinson had rejected all prior claims by IAM to repre- sent the Madison employees. The history of exclusion of these employees from the unit covered by the contract between E.P. and IAM made the claim of accretion baseless, and the entire preamble of the agreement has every appearance of an attempt to rationalize actions taken for different reasons than those stated. The con- tract was executed without any indication that the Madi- son employees had any interest in representation by IAM and indeed, until the April 20 representation hearing on the Union's petition, when the agreement was urged as a 21 Atkinson's testimony that the agreement was predated so that its date would coincide with the date of the agreement between IAM and E.P. cannot be credited That result could have been achieved by provid- ing appropriate and effective termination dates without misrepresenting the date of execution. The repetition of the false execution date, and par- ticularly the handwritten dates appearing after each signature, makes it clear that the intention here was to deceive. 22 Local 825. International Union of Operating Engineers. AL -CIO, 228 NLRB 276 (1977). 21 Consolidated Edison Co. of New York v NL.R.R, 305 U.S. 197, 231-234 (1938); WJ. Graham. John Graham. II. and Marlin Gracey, a parinerihip d/b/a Grahamn Engineering. 164 NLRB 679, 697 (1967): Sec 102.8 of the Board's Rules and Regulations 24 Becket Aviation Corporation. 218 NLRB 238 (1975) 21 Atkinson testified that he first learned of the union activities when the charge based on S.L 's refusal to reinstate King, Leibowhite, and Miller was filed approximately a week later contract bar by IAM, the Madison employees were never told of the existence of the agreement. These circumstances make it abundantly clear that the reasons for the predated recognition agreement with IAM were not those stated by Atkinson and that agree- ment was entered into in an abortive effort to frustrate the union organizing campaign by establishing a possible basis for forestalling an election in the event that the Union filed a representation petition. I find that the ex- ecution of the agreement with IAM is evidence of Re- spondent's animus toward the Union. E. The Grant of Good Friday as a Holiday I. The facts On or about March 22, 1978, Wright posted a notice to all employees stating that S.L. had decided to make Good Friday an official paid holiday and that all em- ployees who had been employed for 30 days or more would receive 8 hours base pay provided they worked the day before and after the holiday as scheduled. In 1977, the plant had been closed for Good Friday but the employees were not paid for the holiday. They were, however, given a paid holiday on the Friday before Christmas 1977 when the plant closed at noon.26 Wright testified initially that from time to time S.L. had given employees Good Friday off in the past, that on occasion it had been a paid holiday, and that management made a judgment at the particular time whether or not to pay employees for it. According to Wright the decision was "Based on, perhaps, what the cash position was at that time, or how things were going. I can't say any specific reason." When Wright was asked why S.L. decided to make Good Friday a paid holiday in 1978 in the face of what she described as a very poor cash position, she re- plied, "For this reason. We knew that we had employee problems. And the absenteeism on that particular day is usually very high. So we thought perhaps this would do something to smooth employee relationships." Wright later testified that company practice with re- spect to granting holidays was to grant six holidays a year with pay and then from time to time to grant an ad- ditional holiday, sometimes with pay and sometimes without. 2. Concluding findings The General Counsel contends that the circumstances surrounding the grant of the Good Friday holiday in 1978 as well as the testimony of Wright establish that the granting of the holiday violated Section 8(a)(l) of the Act. Respondent contends that the allegation of the com- plaint based on the grant of the holiday is barred by Sec- tion 10(b) of the Act and in any event did not violate the Act because it was granted in accordance with past prac- tice. With respect to the contention based on Section 10(b), I find that the allegation of the complaint is supported by the portion of the charge in Case -CA-14700 filed on 26 First-shift emplosees were given a half day paid holiday, others were given a full day off sith pay h1068 S. L. INDUST'RIES, INC. July 11, 1978, which alleged, among other things. that Respondent violated Section 8(a)(1) of the Act, that "The employer threatened, discriminated against, and harassed its employees on account of their union mem- bership and activity and laid off employees in the extrud- ing department to interfere with the election," that "The Employer, by interference, restraint and coercion, made it impossible for a free and fair election to be held," and that "By the above and other acts, the above-named em- ployer has interfered with, restrained, and coerced em- ployees in the exercise of the rights guaranteed in Sec- tion 7 of the Act." 27 With respect to the merits of the allegation I find that the evidence establishes a prima facie case which has not been rebutted by Respondent. It is conceded that em- ployees were not always paid for Good Friday and were not paid for it in 1977. It is further conceded that the economic factors described by Wright as determinative militated against granting pay for a Good Friday holiday in 1978. The fact that absenteeism was usually very high on Good Friday may have warranted closing the plant for the day but was not a reason to make it a paid holi- day. The remaining factor mentioned by Wright, the desire to smooth employee relationships, supports the General Counsel's position rather than Respondent's. The decision was made less than a month after the wal- kout and little over a week after the filing of the initial charge by the Union. By then Wright and Atkinson con- cededly knew of the employee union activities. Even in the absence of Wright's mention of that desire, the timing of the decision, Respondent's economic condition, and the lack of a consistent past practice would warrant the inference that the paid holiday was given to induce employees to support Respondent rather than the Union. Wright's testimony reenforces that inference. I find that by granting employees a paid holiday on Good Friday, March 24, 1978, Respondent violated Section 8(a)(1) of the Act.2 8 F. The Announcement of the Formation of a Grievance Committee At some point after the February 23 walkout and before the election Plant Manager Harrison posted the following notice to all employees: IN VIEW OF THE I.ABOR PROBI.EMS WE HAVE BEEN HAVING AND NOW THE QUESTIONS OF A UNION, I AM ESTABL.ISHING, AT LEAST ON A TEMPORARY BASIS, AN HOURI.Y EMPLOYEE COMMITTEE TO HANDI.E DAY TO DAY RIEVANCES AND OTHER PROBLEMS. IN THE NEXT SEVERAI. I)AYS WE WIl.l. HAVE YOU ELECT A PERSON FROM EACH SHIFT TO SERVE AS A REPRESENTATIVE ON THIS COMMITTEE. PI.EASE NOTE THE HOURI Y EMPI OYEE COMMIT- TlEl IS FOR HANDILING JOB REI ATED PROBL EMS ONLY. 27 NL.LRB. v. Foan Milling Company 360 US 301. 307-308 (1959): National Licorice Co. N.L R.B., 309 IfS 350. 369 (1940); Benner Glav Co., 209 NLRB 686. 687 (1974). and cases cited therein at fn. 3 2 .North .4darni Inn Corporurtion 223 NLRB 807. 813 (1976), I/arvey'v Wagon Wheel Inc d/bau Ilarve'v Rort Hotel & larvlr, Inn 23 NL.RB 1670, 1682 (1978) After at most a few days this notice was taken down and nothing further was done to implement it. The General Counsel contends that the posted notice wvas part of Respondent's overall course of action de- signed to convince employees that Respondent was will- ing and able to meet their demands directly and that union representation could not be advantageous them. Respondent contends that notice was lawful because the committee was announced for the handling of job-related problems only and there was no expressed or implied promise to remedy any grievances other than job-related problems. I am unable to find significance in the distinction urged by Respondent. Most grievances are job related, even if the term is very narrowly defined. A promise to remedy such grievances is necessarily a promise to im- prove working conditions. From the content of the notice itself, it is clear that the proposed committee was to be established in direct response to the protected con- certed activity and union activity of the employees. The fact that the notice was posted for only a short time and that the proposal was never implemented may have re- duced, but did not eliminate, the coercive effect of the notice which was obviously aimed at persuading employ- ees that Respondent was ready and willing to deal with their grievances through such a committee. No further notice was ever posted to indicate rescission of the an- nouncement, and Respondent did nothing to nullify the impact of the notice. Since no committee was actually formed, I find that the posting of the notice violated Sec- tion 8(a)(1) of the Act but not Section 8(a)(2) of the Act.2 9 G. The Alleged Threats To Close the Plant I. Threats attributed to Robert Curry The complaint, as amended at the hearing, alleges that threats to close the plant were made to employees by Robert Curry, whose supervisory status is at issue.3 0 Curry was a foreman over the extrusion, conversion, and repelletizing departments. 3 ' Before Nadeau's dis- charge there were salaried foremen over these depart- ments, one for each shift. After Nadeau's discharge Robert Curry was asked to work a 12-hour shift from 8 2s Liberty Markets, Inc., 236 NLRB 1486, 1493 (1978); Crockett-Brad- Iey. Inc., 212 NLRB 435, 441 (1974), enfd. 523 F.2d 449 (5th Cir. 1975) After the notice was posted AM filed a charge alleging that Respondent unlawfully refused to bargain with it and unlawfully posted this notice The Regional Director refused to issue a complaint finding that the refus- al-to-bargain allegation Was without merit and that it would not effectu- ate the policies of the Act to issue a complaint with respect to the post- ing of the notice Respondent contends that no violation should now be found because of the earlier dismissal of the AM charge However, the Regional Director had discretion to conclude that it would effectuate the policies of the Act to issue a complaint based on this conduct when it again came before him as a result of charges filed by the Union which placed it in the broader context raised by the Union's other allegations. "' In its answer Respondent initially admitted that Curry was a super- visor, but after the General Counsel amended the complaint to allege that he had made threats Respondent amended its answer to deny his supervi- sory status :" Although Wright testified that he was a leadman. she conceded that employes referred to him as their foreman, and Respondent In a notice posted in September 1977 referred to his predecessor as a foreman 1069 DECISIONS OF: NATIONAL .ABOR RELATIONS BOARD p.m. to 8 a.m. and Robert Lawson served in a similar ca- pacity. Both had similar authority from 8 a.m. to 8 p.m. Curry and Lawson were put on hourly rates, apparently to give them the benefit of overtime pay. As a rule, no one else with supervisory authority supe- rior to Curry was present in the plant during his working hours. Curry had authority to recommend employee raises and terminations. He had authority to give em- ployees permission to leave early and generally was re- sponsible for the work assignments and performance of the employees for the last half of the second shift and all of the third shift. In the representation proceeding, Respondent and the Union stipulated that Curry and Lawson were supervi- sors within the meaning of the Act, and in this proceed- ing Respondent admits that Lawson is a supervisor. I find that Curry was a supervisor with authority to re- sponsibly direct employees in their work and to effec- tively recommend changes in their status. On one occasion before the election Curry asked Lam- bert Harrison what the chances were that S.L. would close down if the Union won the election. Harrison re- plied that Atkinson had told him that he would close the doors rather than let the Union come in the shop."' 2 Thereafter, on several occasions during the spring, em- ployees asked Curry if he thought the Union had a chance to get in and what management's reaction would be if the Union won the election. Curry told them that in his opinion Atkinson would close the plant if the Union won the election. At the time of these conversations, there were rumors in the shop that the plant would close and the possibility of plant closure was a topic of con- versation among the employees. On one or two occa- sions Curry told employees that his opinion was based on discussions with Harrison, but he also told them that he was not speaking for management and had not been instructed by management to make these statements. 3 3 In January 1979, when Curry quit his job, then Pro- duction Manager Nichols asked him why he wanted to leave. Curry told Nichols it was his impression that com- pany policy was unchanged and that Atkinson would close the doors if there were another election and the as Curry so testified without contradiction. At the time ofr the tcestim,- ny. Curry was no longer employed by Respondent but his wife was em- ployed by EP at the Madison plant Respondent contends that Curry must be discredited because allegations based on his testimony were in- troduced only by amendment at the hearing, because there are conflicts between his testimony and that of other employees as to what he told them about plant closure, and because Curry came forward only at the last moment after employee friends visited him to tell him that they had made statements concerning what he told them. However, to the extent that there are conflicts between Curry and other employees, Curry's ver- sion is generally restrained and his testimony if anything appears to have been carefully given in an attempt to avoid exaggeration. That Curry did not come forward earlier to tell what he knew may he accounted for by the fact that he continued to work for E.P. as a supervisor until several weeks before the hearing in this case In the absence of contradiction by Harrison as to this conversation or Nichols as to a later similar conversa- lion, there is no cause for me to discredit him. 3 Curry so testified Where his testimony is in conflict with that of George Dahlberg and Gloria lasparra, I have credited Curry I have nriot credited David Dykes as to similar statements which he attributed to Production Manager Kirby because of incolnsistencies im his testimony as to the timing of the statements and his unconvincing explanation of his failure to mention them in affidavits given by him. Union won. Nichols commented that Curry's feelings were correct. The General Counsel contends that Curry's statements to employees violated Section 8(a)(l) of the Act. Re- spondent contends that Curry's statements do not violate Section 8(a)(l) because they were made by a low level supervisor in response to questions addressed to him by close friends, because they were couched in terms of his opinion, and because they were made without the knowl- edge or encouragement of any higher official in manage- ment. 4 I find that Curry's statements were effective threats of plant closure which violated Section 8(a)(l). While Curry stated that he was not speaking on behalf of man- agement and that he was stating his opinion, what he said necessarily carried with it more force than an em- ployee's statement of opinion because his position made it likely that employees would attribute his opinion to inside information. Moreover, since he told at least one employee that his opinion was based on what Harrison, a responsible official of Respondent, had told him, the threat conveyed became more than a matter of Curry's opinion. The fact that Respondent did not encourage Curry to make these statements to employees is immate- rial, for the statements of Harrison formed the founda- tion for what Curry later told employees, and it is the tendency of his statements to interfere with employee rights rather than Respondent's intent which is control- ling. a3 I find that Curry's statements to employees vio- lated Section 8(a)(l) of the Act because they threatened plant closure in reprisal if the employees chose to be rep- resented by the Union.: 6 Furthermore, I find that the statements made to Curry by Atkinson and Nichols, while not themselves violations of the Act, are further evidence of Respondent's animus toward the Union. 2. Threats attributed to Hazel Mann The General Counsel contends, contrary to Respon- dent, that Hazel Mann was also a supervisor whose con- duct is attributable to Respondent. At the times at issue, Mann was an hourly paid leadlady in the ark department where she worked with six to eight other employees. Mann reported to Plant Manager Harrison. Mann spent all her time in the ark department; Harrison came through the department occasionally. 3 7 Mann spent a large portion of her time running ma- chines and doing other work similar to that done by the other employees in the department. Harrison told Mann what needed to be done in the department, and Mann a. I reject Respondent's further contention that the amendment to the complaint based on Curry's statements is barred by Sec. IO(b), as these allegations are closely related to the July I I, 1978, charge in Case I CA- 14700 See sec E2, above : Fall River Savings Bank, 247 NLRB No 88, fn 3 (1980). :' C T Manufacturing Co., 233 NLRB 1430, 1436 (1977); Coach and Equipnen Sales Corp., 228 NLRB 440 (1977); Summirville Ties. Inc., 190 NLRB 640, 642-643, 644 (1971). a' Wright testified that Harrison, who was plant manager, spent all his lime on the production areas of the plant after February 23 Doreen Bossser Cook testified that Harrison came through the ark department occasionally Harrison did not testify and Mann was not asked about Harrison's presence in her department I have credited Cook rather than Wright who normally was not in the production area of the plant. 1070 S 1. INI)IDUSTRIES, INC saw to it that the employees did what was necessary to get orders ready for shipment, assigning employees to specific jobs within the department in accordance with production needs. When overtime work was needed, she asked the others in the department if they wanted to work in the order of their seniority, but Harrison decid- ed whether overtime work was needed. When new em- ployees completed a 30-day probationary period, she ad- vised Wright whether or not she thought they were ca- pable of doing the work. and Wright decided whether they should be retained. Her recommendations were gen- erally followed. Mann sometimes initialed employee ti- mecards to verify them and was the only employee in the department who did that. When she observed an em- ployee not doing her job, she reported that fact to Harri- son. In September 1977, in connection with an internal change, Atkinson posted a notice to employees which stated: Mr. Lambert Harrison will be responsible for all phases of the Film Division, which will include ad- ministrative, Sales and Production. Reporting to him will be the foreman, George Nadeau, Gene Thompson, Robert Lawson. Also Ralph Briggs, Eileen Hagan and Hazel Mann. Assuming the posi- tion of Sales Administrator will be Mr. Richard Watson.3 On one occasion in the summer of 1978 Mann told Harrison that she wanted to discharge a probationary employee because he was smoking around flammable liq- uids and was not learning his job. The employee was later discharged. a When Leibowitz was assigned to the ark department after being reinstated in May 1978, Harrison told her to report to Mann who would be in charge of her. On her first day of work Mann told Leibowitz what her hours would be and later told her that they were changed. The evidence shows that it was Mann who had first- hand knowledge of the capacities and potential of the employees in the department. Thus, Mann reported di- rectly to Wright her recommendations for retention of employees at the end of their probationary periods, and Mann was responsible for the assignment of employees within the department. In addition, although Mann did not apparently recommend discipline to Harrison, if em- ployees were not doing their jobs properly, Mann report- ed that fact to Harrison and employees were aware that she did so. From the September 1977 notice and Harri- son's statements to Leibowitz it appears that employees were led to believe that Mann was in charge of the ark department and on a par with the foremen. I cot.clude that Mann effectively recommended the retention of pro- bationary employees and responsibly directed the work of the employees in the ark department. I find that she was a supervisor within the meaning of the Act.40 Jo This ntlice appears to colntradictl testimnony of righl that before February 23, 1978, Mann reported o Nadeau au Curry so testified Mann testified that she did not recall the incident but was not otherwise questioned about it o Suburban lonrtte Corporatton, 173 NLRH 497, fn 1,50, , fi 8 ( 1968) During the week following the walkout in conversa- tion among ark department employees. Mann said that Atkinson would not stand for it. that he had other plants. and that he would close the doors before the Union got In. Around June I when employees in the ark department were talking about the lack of ork in the plant, Mann told them that Atkinson was going to close the plant and that he always said he would rather do that than let a union come in. At the time. there ,was little work for the employees to do in the plant and employees were talking generally about the business closing down. 4 For the reasons set forth above with respect to Curry. I find that Mann's statements to the employees threat- ened that the plant would close if the Union came into the plant and these threats violated Section 8(a)(l) of the Act. H. The Further Denial of Reinstartemenlt to King. Leibowitz, and Miller On or about April 6 King, Leibowitz. and Miller sent a joint letter to Wright inquiring about returning to work and at or about the same time each of them spoke with Wright about reinstatement. Wright told them that there were charges pending before the Board and that they would have to wait until there was a ruling by the Board before she could give them an answer. In Miller's case she asked Wright what would have happened if the charge had not been filed, and Wright replied that per- haps something could have been worked out.4 2 The General Counsel contends that Respondent re- fused to consider the three employees for' reinstatement in April because they had filed charges, thereby violating Section 8(a)(4) and (1) of the Act. I have found above that on March 3 Respondent gave each of the employees a termination slip indicating that she had quit, and it is clear that, after March 3, Respondent regarded these em- ployees as terminated. There is no evidence that Respon- dent engaged in any further investigation of the alleged threats of violence, and, as found above, the alleged threats were not the cause of its refusal to reinstate the three women. Wright's answer to Miller in my view is not sufficient to establish that the charges were an opera- tive element in the denial of reinstatement to them. I find that reinstatement had been denied the three employees before the charge was filed and that the filing of the charge did not cause denial of reinstatement to them. However, as Wright's statement to Miller conveyed that I)Doreen Bowser Cook testified to Mann's statements immediately after the walkout. and l.elho itz testified to her tatements in June. Manil testified that he did not recall telling employees that Respondent ,sould close the plant if the Union came in, but did recall telling them that he did not want to he out on the street or have the Union in there Fruom Mann's own testimon, it appears that she associated the union rep- reentation with being out on the street and conveyed that association to other emplrrees I credit Cook and Leibossitz that Mann made the state- ments they a ttribtUled to her a4 King, leiboi.sit. Miller, and Wright each testified to these conver- atlion Wh5' l there are soime ariations in their ersionr of the words used by wright. there is o essential difference in import I have accept ed Wright's sersion of the words she used in answering each of them I hav e redted Miller's unconltradicted testimollny i,. to her hypothetical questl] i arld W r /ight" resplonse 1071 DECISIONS OF NATIONAL LABOR RELATIONS HOARD the filing of the charge had cut off further consideration of the possibility of reinstatement, I find that her state- ment violated Section 8(a)(1) of the Act.43 1. The Reinstatc'ment of Christine Leibowitz 1. The facts On April 19 the initial complaint in this case issued al- leging that King, Leibowitz, and Miller had been unlaw- fully discharged. On April 20 the representation hearing was held, and, on April 21, Wright sent Leibowitz a letter informing her that there was a job opening for her and asking her to report for work on April 26 at 8 a.m. According to Wright, Respondent decided that they should not wait for a Board ruling but should reinstate her at that time because they had been led to believe that she was suffering from economic hardship and had small children. When Leibowitz received the letter she called Wright to ask what the job was and what the hours were. Wright told her she would be operating a bag machine in the ark department and that the hours would be the same as those she had previously worked in the conver- sion department before the walkout. Leibowitz observed that the normal starting time in the ark department was 7:30 a.m. and said that if Wright wanted she could report for work at that time rather than at 8 a.m., her starting time in the conversion department before the walkout. Wright replied that she should report at 8 a.m. and work the same hours as before. Leibowitz told Wright she had lost the sitter for her children but would try to get an- other and would get back to her. Ultimately Leibowitz found a sitter and arranged to return to work on May 1. Before the walkout Leibowitz had worked as a bag operator on an extruder in the conversion department. Upon her return she was assigned as an operator on what was referred to as the blue bag machine in the ark department. Although the two jobs were similar in de- scription, in practice the jobs were different. In the con- version department she had been able to leave her ma- chine, to move around during the course of a workday, and to perform a variety of tasks. After her reinstatement she was required to sit at the machine in the same posi- tion and to fold bags which came off it for the entire day. Although all the others in the ark department start- ed their workday at 7:30 a.m. and had a half hour lunch period as well as two 10 minute breaks, Leibowitz start- ed a half hour later, had no lunch period, and had three 10-minute breaks.4 4 Leibowitz' assignment and hours kept her separated from the others in the department who worked together and were able to talk while they worked. Before Leibowitz was reinstated, no single employee was assigned to run the blue bag machine constantly, but operators were rotated every hour or two. On one occa- sion before the walkout Mann told several employees that at one time employees had been required to work on 4 : Sinclair & Rush. Inc.. 185 NLRB 25 (1970). 44 That schedule was necessary in he conlversionl department because some of the machines could not he shut down for a lunch break. The machines in the ark department could be hut down so that a lunch period could be taken the blue bag machine for 8 hours at a stretch but that it was too much and that she would not ask them to work on that machine for more than an hour at a time. Before May 1, when Leibowitz returned to work, em- ployees from other departments visited the ark depart- ment on their breaks and talked with ark department em- ployees while the latter were working. Shortly after Leibowitz returned to work, Foreman Lawson told em- ployees William Cook and Spaulding they were no longer allowed in the ark department for any reason. 4 5 They asked the reason, and Lawson replied that Harri- son did not want anyone in the ark department. Just before Lawson spoke to Spaulding he had been in the ark department talking to Leibowitz while she was working. Lawson told Cook not to talk to Leibowitz and not to go into the ark department because Harrison was on Lawson's back.46 During the same period, Mann approached Doreen Cook and three other employees who were talking to Leibowitz at her machine and told them that they had been there long enough, that they had to leave, and that no one from other departments was allowed in the ark department. 47 On May 8, the Union sent a letter to Atkinson charg- ing that Respondent was continuing to harass Leibowitz by denying her a normal lunch period, forbidding other employees to talk with her, and otherwise isolating her from the rest of the employees. At or about the same time, a week after Leibowitz' re- instatement, Mann asked Plant Manager Harrison if Leibowitz' hours could be changed to those observed by the others in the ark department because Mann had to work through her lunch hour as long as Leibowitz did. Thereafter Leibowitz' hours were changed to conform with the rest of the ark department. 2. Concluding findings The General Counsel contends that Respondent violat- ed Section 8(a)(3) by discriminating against Leibowitz by isolating her and giving her an arduous and confining as- signment after her reinstatement. Respondent contends 4s Where there is some variation in the testimony as to the timing of the instruction to other employees to stay out of the ark department, those involved were laid off on May 5, and it is clear that these instruc- tions were given during the first few days after Leibowitz' reinstatement. 4'" Spaulding and Cook so testified. Lawson conceded that he told em- ployees to stay out of the ark department but testified that it had nothing to do with Leibowitz and that employees simply were not supposed to go there from other departments. However, he equivocated as to wheth- er he told one employee not to talk to Leibowitz and was vague as to what instructions Harrison gave him in this regard. I have credited Spaulding and Cook and not Lawson. 4 Doreenl Cook so testified. According to Mann, she did not tell em- ployees they were not allowed in the ark department but only asked them to leave after 10 minutes when their breaks were over. She testified that employees from other departments were staying from 15 to 45 min- utes and that the department was so small that movement was impeded. She testified that she asked Harrison to do something about it after the problem had continued on at least 5 consecutive days and that, after she spoke to Harrison, employees stopped coming over I have credited Cook. It is clear that Mann exaggerated both the degree and duration of the alleged problem and that employees were stopped from visiting the ark department ery shortly after Leiboitz' return I credit Cook that Mann told her, as .awson told others that she was not allowed to visit the ark department 1072 S. I. INDUS1TRIES, INC. that Leibowitz' assignment after reinstatement was not difficult, that she was given the same hours she formerly worked until changed for her convenience, and that em- ployees from other departments were asked to stay out of the ark department after her reinstatement only be- cause their presence interfered with work. I find merit in the General Counsel's contentions. Until Leibowitz was assigned full time to the blue bag ma- chine, other employees rotated in this job every hour or two, and Mann had told others that working full time on this machine was too much. Yet after Leihowitz was re- instated she was not only assigned to the machine full time, but she was put on a different schedule which denied her the half-hour lunch break given others in the department. Leibowitz did not ask to work these hours but, to the contrary, Wright insisted on them without stating any reason even after Leibowitz offered to work the same hours as the other employees in the ark depart- ment. Leibowitz' hours were not changed until Mann complained about their adverse effect on her. Although Mann testified that Harrison told her she could change Leibowitz' schedule if Leibowitz approved, it is clear that Leibowitz' wishes had not been considered up to that point and clearly were not determinative. The effect of Leibowitz' assignment and schedule was not only to make her work more arduous and tiring4 8 but also to maximize her isolation from the other employees in the ark department. When Leibowitz' isolation was inter- rupted by visiting employees from other departments, the practice of permitting such visits was ended. I find that the inference is warranted that the combina- tion of circumstances resulting in Leibowitz' hours, work assignment, and isolation was not mere coincidence but the result of a design to restrict her contacts with other employees and to demonstrate that, despite her reinstate- ment, Leibowitz was still being made to suffer for her concerted and union activities. That the message was not lost on other employees is shown by the fact that, as Doreen Cook testified, other employees discussed Leibowitz' treatment and voiced differing views as to its fairness, depending on their own feelings about the Union. I find that Respondent discriminated against Leibowitz in the terms and conditions of her reinstate- ment in violation of Section 8(a)(3) and (1) of the Act.4 9 I find further that the instructions to employees not to speak with Leibowitz and to stay out of the ark depart- ment violated Section 8(a)(1) of the Act.50 ,8 In reaching this conclusion I do not credit Mann's testimony hat Leibowitz' job was not very difficult. Mann did not contradict teslimion as to her previous statements hat full-time assignmenl ti the blue hag machine was excessive or that the practice prior to Leihowitz' reinstate- ment was to rotate assignments to this machine While an assignment to the machine for an hour or two may not have been difficult, he evidence supports the conclusion that steady work at this machine as% arduous Dana Pitls' conrary assessment of the job was based on working oni the machine only briefly and not under condilions comparable o those im- posed on Leibowitz. 4. S, Joseph lpirual Eao, Inc.. 23h NLRIB 1450 (1978) so I/hc Dalf Corporauiron d/ha u lloJJiun Rrotthe'r, 18X NI.RH 31', 322 (1971); I'l C (Cl/U (C' tttlpaflt. INtdt I)iOl 1 9 1 NRlB 92, ot (1972). J. lhe May 5 Layoff and the Takeover of the S. L. Operations by E. P 1. The facts In its operations, S.L. used two kinds of resin. For the sheets produced for Seamless it used hare resin. For the rest of its production, S.L. used additive resin. Over the years S.L. had obtained additive resin from a number of sources, but the supplier of 90 percent of its needs was Arco Polymers Inc. (Arco). S.L.'s supplier of bare resin was Exxon. For more than a year S.L. had been operating at a loss, and during that period the balance due on its ac- count with Arco had steadily risen to exceed the credit limits which Arco had extended to S.L. Respondent also had substantial bank overdrafts during this period. In January, Respondent's accountant urged Atkinson and Wright to close and liquidate S.L.'s operations. From late 1977 on, S.L. management and Arco communicated frequently in an attempt to work out a plan for the re- duction of S.L.'s outstanding balance, but no agreement was reached, S.L. did not comply with Arco's demands for reduction of the outstanding balance on its account, and after the end of March 1978 S.L. received no further shipments of additive resin from Arco. Because of its credit problems S.L. had difficulty finding any other source for additive resin, and during the spring of 1978 there was a shortage of additive resin in the plant. 's Nonetheless, S.L. hired replacements for employees who had quit and maintained a full complement of employees, even though there was not always enough work to keep them busy. On May 2, following a demand by Arco for payment of its account, Atkinson and Wright met with representa- tives of Arco. At the conclusion of the meeting, the Arco representatives told Wright and Atkinson that they would be unable to furnish any additional raw materials to S.L. and suggested that as a last resort S.L. attempt to work something out with its banker. Over the next 2 days Wright and Atkinson spoke and met with Walter Reuman, the third director of S.L., who also represented S.L.'s bank and discussed possible ways of continuing operations. According to Wright and Atkinson, Reuman wanted them to lay off all employees and liquidate the business, but after their meeting Atkinson and Wright persuaded the bank to accept a plan for laying off ap- proximately half of the work force and operating with a reduced number of machines. According to Wright and Atkinson they did so in the hope that they could "re- group a little bit" and accumulate some cash which could be used to purchase raw materials. On May 5, S.L. laid off 24 of the 54 production and maintenance employees then on the S.L. payroll.52 From then until July 31, S.L. operated with the reduced em- I Respondent continued to receive hare resin from Exxon used on S I s sheet line to make shect malerial for Seamlcss ' here cre anll additional 13 employees on the Seamlcss payroll none of ,or hinl sscr laid iff al that lime On May 19 an additional cm- ployec. who had been ransferred from S.t to Seamles on May 5. u as also laid off Of he S . employees laid off on May 5, 17 had signed union aulhorization cards Among S 1 emploccs who remained after Nla\ 5. there ere aliso 17 card signers 1073 D)ECISIONS ()F NATIONAL L.ABOR RELATIONS BOARD ployee complement leaving some of its production lines and equipment unmanned. Although Atkinson testified that in April the bank asked him to liquidate some of S.L's equipment, from then until July 31, S.L. sold only two pieces of idle equipment which had been in storage for 2 or 3 years and netted about $2,500.5 3 During the period between May 5 and July 31 S.L. lost some customer orders, hut canceled and rejected others, telling customers that their orders could not be filled because S.L. was having labor problems. 54 In June or July, both before and after the July 7 repre- sentation election, Foreman Robert Curry told Produc- tion Manager Lambert Harrison that he needed more help to keep the machines running because he could not get employees to work overtime to fill in vacant spots. Harrison told him that Wright said that they could not hire anyone at the time because of the problem they were having with the labor dispute and the Union. 55 On Friday, July 31, S.L. ceased all manufacturing op- erations. On Monday, August 3, Seamless took over the operation of S.L.'s sheet line, utilizing S.L.'s equipment which remained in the Madison plant but was now oper- ated by Seamless employees. After July 31 the business of the ark department, including its machines, was sold as an entity to a New Jersey company. On August 3 E.P. took over the rest of the the S.L. payroll as of the close of business on July 31, including the six employees in the ark department, and all accepted. After August 3, E.P. began to obtain additive resin from Northern Petrochem- ical (Norchem), which supplied its New Jersey plant, and gradually E.P. resumed full production at the Madi- son plant, putting all the equipment idled by the May 5 election back into production. 56 E.P. hired 5 of the em- ployees who had been laid off by S.L. on May 5 and gradually hired 19 additional employees who had not previously worked for S.L. Seamless also hired eight new employees to work at the Madison plant. E.P. did not offer employment to most of the laid-off S.L. em- ployees, according to Wright, either because it deemed them undesirable for a variety of reasons or because it 51 In so finding, I have relied (on the testimony of the representatidce of the agent who handled the sales rather than the less precise general testi- mony of Atkinson that S I.. sold various pieces of equipment from Febru- ary on 54 right testified that S.L.. could not tell customers it was having dif- ficulty getting raw materials because it would then lose those customers permanently b Curry so testified Harrison did not testify and Wright was not asked about the statement attributed to her by Harrison. Respondent con- tends that Curry should be discredited because his testimony is in conflict with his affidavit and that of other witnsses. Whether or not Curry's tes- timony conflicts with his affidavit and the testimony of others depends on his and their accuracy with respect to dates. All of the witnesses con- cerned appear to have been more or less inaccurate in their recollectionl of specific dates ad time intervals as is often the case with testimony given long after the events at issue Although Curry was inaccurate a to the months of occurrences he also testified as to seasons of the year of these occurrences and their relation i time to the layoff and the election His testimony in these respects is consistent with other witnesses I find no inherent defects in his testimony that would warrant discrediting his testimony that these conversations with Harrison occurred and that they occurred before and after the election ., After July 31. apart rom the sale of the ark department as a going business, Respondent sold no other equipment except for oe machine which it replaced in January 1979 with a larger more sersatile machine at a net cost of 22,(X) above the value of the replaced machine. had information that they had taken other jobs. Accord- itg to Wright, S.L.'s decision to lease its equipment to E.P. was based on a tentative oral commitment from Norchem to furnish additive resin to E.P. at the Madison plant if it was located there. 2. Concluding findings The General Counsel does not dispute that Respon- dent was experiencing severe financial problems at the time of the May 5 layoff. The General Counsel contends, however, that the decision to lay off almost half of the S.L. work force on May 5 was not primarily motivated by S.L.'s ongoing financial problems but by a desire to eliminate as many employees as possible who may have been involved in the organizing effort and to intimidate the remaining employees by giving substance to the rumors and threats of plant closure. In support of this contention the General Counsel argues that both before and after May 5 Respondent took actions which were not consistent with its portrayal of itself as a troubled company on the verge of going out of business and that the actions taken after the union election to obtain addi- tive resin from Norchem were available to S.L. in May and would have been taken at that time but for the pen- dency of the representation election. Respondent contends that the May 5 layoff was neces- sitated by the rapidly deterioriating financial condition of S.L. culminating in a virtual ultimatum by its bank to cease its operations to which it responded with the plans for the May 5 layoff, that the July 31 shutdown of S.L. operations was a permanent termination of S.L.'s busi- ness activities, and that after August 3 E.P. was at most a successor to S.L. I have already found above that E.P. was an alter ego of S.L. after July 31, and it is clear that the July 31 shut- down cannot be considered as a permanent shutdown of S.L.'s business. While a minor portion of the business was sold, the remainder with the same employees and su- pervisors was simply divided between Seamless and E.P., under so-called oral leases which resided in the heads of Atkinson and Wright who continued to operate the plant as before, bringing in only a new production manager. The question remains whether the May 5 layoff was caused by Respondent's economic problems or whether Respondent deferred taking steps available to it at the time to solve those problems and utilized them as a pre- text to justify the layoff of a substantial portion of its work force until after the election and undermine sup- port for the Union. I find that the evidence supports the inference that the latter was the case. Thus, despite Respondent's severe problems, no action to reduce the work force and overhead was taken until after the representation case hearing, and, for the first 3 months of 1978, Atkinson and Wright gave every indica- tion that they rejected their accountants' advice and had plans and expectations to resolve their economic prob- lems and stay in business. They replaced employees who had quit, granted employees a paid holiday not previous- ly promised them, gave consideration to mandatory weekend work, and put foremen on 12-hour shifts, paying them 4 hours of daily overtime. The willingness 10)74 S INI)USTRIES. INC to spend money to preserve the work force and to keep its employees from bringing in the Union and its unsuc- cessful effort to create a basis for barring a representa- tion election indicate that Atkinson and Wright had in mind long-term operations and did not contemplate an early demise of S.L.'s operations. Even after the layoff, Respondent's actions are indica- tive of a continuing long-range plan and inconsistent with Wright's and Atkinson's testimony that the objec- tive of the layoff was to regroup and accumulate some cash to buy raw materials. Despite continuing material shortages and idleness within the plant, the only further layoff was of a single employee who had been trans- ferred to Seamless and complained about the job to which he was assigned. Respondent otherwise preserved the remaining work force despite the fact that it could not be fully productive. Although the bank had allegedly asked Atkinson to liquidate equipment, none of the equipment idled by the layoff was sold or put on sale be- tween May 5 and July 31. When Atkinson wrote to em- ployees on July 3 to urge them to vote against represen- tation, he asked employees to look to the future to decide whether they wanted to pay union dues for years to come. While suggesting that negotiations could lead to troubles including plant shutdown, Harrison asked em- ployees to give him a year to prove himself with out a union. Atkinson not only remained silent about the possi- bility that the plant might close even without a union, but affirmatively conveyed to employees that there was a better future in store for them if they rejected the Union in the election. That the election had more to do with the layoff than S.L.'s economic problems is also indicated by what Wright told customers and Harrison told Curry during the period after the layoff. Wright told customers that S.L. could not handle their orders because of labor prob- lems. While Wright sought to explain her statements away as deception engaged to conceal the true problem and to avoid discouraging customers from buying from S.L. in the future, that very motive expresses a long- range plan to continue in business. Moreover, I reject Wright's explanation for her statement to customers for it parallels other statements by Atkinson, Wright, and Harrison even as late as the hearing which attribute the IAM contract, the additional holiday, and threat of plant closure to labor problems. Wright's statement indicated to customers that, if the labor problem were resolved, S.L. would again be in position to meet their needs. Harrison's statements to Curry before and after the elec- tion that no additional help could be hired because of labor disputes and the Union is as significant for its fail- ure to mention economic reasons as for its additional in- dication that the labor problem was motivating S.L.'s ac- tions. The inference of unlawful motivation is also supported by the timing of the layoff and the resumption of oper- ations. Thus, the layoff occurred 2 weeks after the repre- sentation election when a decision and possible direction of election were imminent. The cutback continued until 3 weeks after the election when the alleged supply prob- lem was resolved and the rebuilding started. Added to the clear evidence of animus in this case and the factors summarized above, the coincidence of the timing of the layoff and then the takeover by E.P. in relation to the hearing and the election in the representation case sup- port the inference that Respondent had a long-range plan available to it which it was prepared to use in order to continue S.L.'s operations but that it deferred implemen- tation of the plan and laid off a substantial portion of its work force in order to discourage employee support for the Union in the election. Against this inference must be weighed the testimony of Wright and Atkinson as to when they decided that E.P. would take over the Madison operations and when they became aware that Norchem would supply the Madison plant. Wright testified that discussion of the takeover of S.L. by E.P. did not begin until the last 2 weeks of July, after the election, and that all arrangements were made within the next 2 weeks. Atkinson, however, testified that the takeover was first considered in June but that there were many problems and that approximately a month or a few days more elapsed between the time the takeover was first discussed and when it occurred. As for Norchem, according to Wright, throughout the period between De- cember 1977 and March 1978 she and Harrison asked Norchem to supply the Madison plant, and Norchem in- dicated that, if E.P. were responsible for the payment, Norchem would consider extending credit. However, Atkinson testified that Norchem had "turned down flat" E.P.'s request for credit for resin to be shipped to the Madison plant in early 1978, and that it made no com- mitment until after June or July 1978. While the inconsistency in the testimony of Wright and Atkinson as to the time of the initial discussion of the takeover, standing alone, might be discounted, the in- consistency in their testimony as to when they became aware that Norchem was a possible supplier of the plant is irreconcilable. These inconsistencies along with the complete absence of minutes of the critical directors meetings, the varying explanations for their absence, the absence of testimony by the third director of S.L., the absence of any other evidence as to the understanding with Norchem, and the deficiencies in the testimony of Atkinson and Wright discussed elsewhere persuade me that neither of their claims as to when the E.P. takeover was first discussed can be credited and that Wright's tes- timony as to when they became aware that additive resin was available from Norchem is closer to the mark than Atkinson's. To be sure during the entire period between May 5 and July 31, S.L. was under severe pressure from its creditors, and correspondence from that period shows persistent efforts by S.L. to stave off demands by credi- tors and proposals by S.L. for arrangements with suppli- ers which might have opened up alternative avenues of supply. But the evidence does not overcome the basis for concluding, supplied in part even by Wright's testimony as to Norchem, that during this period Atkinson and Wright had in reserve the plan to be unveiled at the ap- propriate time for the takeover of the Madison operation by E.P'. and the use of its credit to obtain the needed raw materials. 1)75 I)E CISI()NS ()I NA lI()NA. I.AB()R RIl A lI()NS ()ARI) I conclude that on May 5 Respondent refrained from taking the steps to obtain raw materials then available to it, and instead laid off almost half the S.L. work force in order to destroy the employees' support for the Union in violation of Section 8(a)(3) of the Act. ' I find further that the layoff of Dana Pitts on May 19 also violated the Act, as his transfer to a job on Seamless payroll from which he was later laid off was a consequence of the May 5 layoff." 8 Since the May 5 layoff violated Section 8(a)(3) of the Act, all the laid-off employees were entitled to immedi- ate reinstatement by Respondent, and none of the reasons advanced by Respondent for not offering jobs to the laid-off employees after August 3 would justify a refusal to reinstate them. Accordingly, it is unnecessary to con- sider further the allegations that the failure to reinstate the laid-off employees after August 3 additionally violat- ed the Act. K. Respondent's July 3 Letter On July 3 Atkinson sent the following letter to all the employees in the bargaining unit: This message is so important to our future S.L.'s and YOURS-that I am taking the liberty of send- ing it to you and your family so that you will read and consider it in the privacy of your own home. On Friday, when you vote, you will decide whether you want to pay a union a portion of your salary every month for years to come, or whether you have enough faith in me to be fair with you. It is a hard decision because before an election, the Law is very clear about what I can say to you and what the unions can say to you. They can promise you the moon and the sun and the stars; I cannot promise anything. Nevertheless, you know where your salary comes from. After all, you work hard for it, and so do I. You know that the unions do not invest in S L, do not go out and get business for the Company, and do not fight the competition, do not take the finan- cial risks and failures when there are no orders to fill, do not come day after day to New Road and pay you a salary for your work. Please, do not be fooled by impossible promises. Even if there were a union, everything-wages, vacations, holidays, working conditions-everything, would have to be negotiated. Nothing is guaranteed. And negotiations could lead to all kinds of hassles, including no work and strikes. No one needs trouble like what hap- pened to U S Rubber, Seamless Rubber and Hilde- brand, Inc. to name a few companies in the area. No one needs to speak for you to me. I already know you. And you will always do better with me without a union which can't and won't do anything for you except jeopardize your jobs. If you want job security and a good place to work, reject the unions. s: Ramos Iron WorkA, Inc., 234 NL.RB 896 (1978) Pyro Milinlg Conpo- ny, Inc., 230 NlRB 782 (1977). ,s Buanks Engineering (Conpony. Inc,. 231 NlRB 1281, 1285 (1977). I cannot appeal to you and your family in any way today except to give you my word. And when a man breaks his word, he has nothing. I give you my word now: vote NO (NEITHER) on Friday and give me the year to prove myself to you. You will never be sorry. The General Counsel contends that Respondent's July 3 letter contains threats of plant closure and promises of benefit in violation of Section 8(a)( ). Respondent con- tends that the letter was protected by Section 8(c) and was legitimate campaign propaganda. With respect to the alleged threat, at issue are the last six sentences in the third paragraph, including the refer- ence to three specific companies. These companies had been represented by the Union and had closed or moved. These statements must be read in the context of the rumors throughout the plant that it might close, the statements by Curry and Mann about plant closure which gave substance to them, and the May layoff. In this setting, I find that the references to hassles and trou- bles including no work and strikes, tied to the three named companies, went beyond a statement of possible economic consequences that may flow from collective bargaining. Rather that statement, along with the state- ment that the Union could jeopardize jobs reenforced the rumors and supervisor statements and conveyed to the employees that if the Union came in they would be faced with the same troubles as other employees who lost their jobs when their plants closed or moved. I find therefore that the letter was a further threat of plant closure which violated Section 8(a)(1) of the Act.5 9 With respect to the contention that the letter contains a promise of benefit, the General Counsel relies on At- kinson's plea for employees to vote no and to give him a year to prove himself. This statement must be read in conjunction with the statement in the preceding para- graph that the employees would always do better with him without a union. While no specific action or im- provement was promised, there is no plausible explana- tion for Atkinson's offer to prove himself other than that Atkinson would use the year without a union to prove himself by showing responsiveness to employees' dissatis- factions which led them to seek representation. I find that this statement conveyed a promise to be responsive to employee needs and violated Section 8(a)(1) of the Act.60 L. The Discharge of Leibowitz 1. The facts On May 24 Leibowitz again had a problem finding a sitter for her children. She asked Wright if she could take her 2 weeks vacation and a I-week leave of absence because she hoped that she would be able to make ar- rangements for the care of her children after their school ,U While there is some common language in the etter written by At- kinson and that at issue in Airporter nn Hotel, 215 NLRB 824 (1974). there are also material differences, and he letter in that case was consid- ered without reference Io the context of other circumstances "" Mtonroe ,uto Equipmen't Comnpany, 230 NLRB 742. 748 (1977); Hel- firch Vlnding. Inc., 20)9 NLRB 596. 602 (1974). 107 S. L. INDUSTRIES, INC. year ended about 3 weeks later.6 I Wright told her that she could not have her vacation but could have a 3-week leave of absence. 62 At the end of Leibowitz' 3-week leave she had still not been able to make arrangements for child care, and she again asked Wright if she could take her 2 weeks vaca- tion to start then. Wright again refused, telling Leibowitz that she would have to wait until the Board ruled before her right to a vacation could be decided. Wright, howev- er, gave Leibowitz 2 additional weeks of leave. On July 7, Leibowitz appeared at the plant to serve as an observer for the Union in the representation election. On the following Monday, July 10, she was scheduled to return to work. However, she called in to report that she would be absent. Later that day she spoke to Wright and asked again if she could have her 2 weeks vacation. Wright told her that she did not think so, and Leibowitz told Wright that she had been trying to find a sitter but found it difficult to pay for one, and that she needed more time to secure a sitter. Wright told her she was sorry about her problems, but that she had been out 5 weeks, that Wright believed it was long enough, and that Leibowitz should try to find a sitter and return to work. Leibowitz later called Wright to tell her she had found a sitter who required payment in advance before she would start work, and asked again for her 2 weeks vaca- tion pay so that she could pay the sitter and return to work the following Monday. Wright rejected her request and told her she would receive a letter explaining Re- spondent's position, that Leibowitz had enough time off, and that if she could not come back to work her job would be terminated. On July 11 Wright sent Leibowitz the following letter: As you know your extended leave of absence ended on Friday, July 7, 1978. On Friday you were here at the Plant on another matter and did not in- dicate to me that you would not be back to work on Monday as expected. On Monday Morning you called in to say you would not be in. On Tuesday Morning you also called in to say you would not be at work. These absences are unauthorized. Later in the morning, I spoke to you on the telephone and you explained to me that you had personal problems and did not have a babysitter available to take care of your chil- dren. Later in the day you advised me that you were able to find a sitter if you could pay her in ad- vance, but would not be able to return to work until July 17, 1978. Unless you are able to solve your sitter problems no later then Monday, July 17th and return to work 61 On two previous occasions, once before her reinstatement. Leibowitz had asked Wright whether she could get her vacation pay Wright replied that she did not know 62 Leibowitz so testified According to Wright. Leibowitz asked in the alternative for her vacation and a I-week leave of absence or a 3-wseek leave of absence, and that Wright made the choice to give her a 3 weeks leave of absence Wright's testimony in this respect is clearly distorted It is not likely that Leibowit7. who had money problems. told Wright that either of the two alternatives was satisfactory to her and left Wright the option to choose I find that Wright look the position that I.eibohwit, vwas not entitled to a vacation at that ime, and credit I.eihbor itl as to the nature of Leibowitz' request on that date I shall have no alternative but to con- sider you terminated based on your unauthorized absences. Leibowitz did not return to work the following Monday and was terminated. Under Respondent's vacation policy an employee was required to be at work on April I of each year in order to be eligible for vacation pay. If Leibowitz had returned to work immediately after the walkout, she would have been entitled to 2 weeks vacation in June. Respondent's leave of absence policy was unwritten and flexible.63 Leaves were granted depending upon the circumstances of the individual seeking them, production schedules, and the need for employees at the plant. On the same day that Leibowitz asked for her leave, Helen Ricciotti asked for and received her 2-week vaca- tion and approximately 2-1/2 week leave of absence. Her leave was granted because she had personal problems and it was not too busy in her department. On June 9 Gale Curry went on 2 weeks vacation and then was granted an extended leave of absence until August 14, after E.P. took over the Madison operations when she returned to work. Her leave was also for personal prob- lems. Another employee Perreault did not return to work after the walkout because he did not want to be involved with the plant problems, but in April, after an absence of approximately 6 weeks, he was allowed to return to work because he was a good repelletizer opera- tor. 2. Concluding findings The General Counsel contends that S.L. discriminated against Leibowitz in denying her vacation pay and termi- nating her rather than granting an extension of her leave of absence. Respondent contends that Leibowitz was not entitled to vacation pay under its vacation policy and that she was terminated only because of her refusal to return to work at the end of a leave of absence which had already been liberally extended. With respect to the vacation pay, I have found above that Leibowitz was entitled to have been reinstated fol- lowing the walkout when she sought reinstatement. But for Respondent's unlawful refusal to reinstate her, she would have been employed on April I and would have been eligible to receive her vacation pay on June 1. Therefore, the denial of her vacation pay on and after June I was further discrimination against her in violation of Section 8(a)(3) and (1) of the Act. With respect to the leave of absence, Respondent was not obligated to grant Leibowitz whatever leaves of ab- sence she sought, but it was obligated not to discriminate against her in the application of its leave policies. Those policies, according to Wright, were based on the needs of Respondent and of the employees of Respondent. The evidence adduced by Respondent otherwise estab- lishes that for much of the period in question the plant was not busy and there was not always enough produc- tive work available for those still on the payroll. A mea- ;:' After going off the record apparently to obtain a written policy. Re- spnderi did not producte one I find that the polic as sl, nurlitten 1077 DECISIONS ()F NATIONAL LABOR RELATIONS BOARD sure of Respondent's need is found in its treatment of Gale Curry who left work approximately a week after Leibowitz went on leave and did not return until a month after Leibowitz was discharged. The treatment of Perreault and Ricciotti also indicates that throughout this period Respondent's needs permitted a flexible and toler- ant approach to leaves. As for individual needs, Leibowitz' need for leave was personal and genuine. Insofar as appears, her sitter prob- lem was exacerbated by Respondent's unlawful denial of her vacation pay. Wright's inability to recall more than that Ricciotti and Curry cited personal needs as the reason for their leaves indicates that Wright was not greatly concerned about the nature of their personal needs in granting extended leaves to them. The differ- ence in the treatment of Leibowitz and Curry and the absence of any rational explanation for that difference, in the face of the history of past discrimination against Leibowitz, support the inference that the refusal to extend her leave of absence was discriminatory and that her termination violated Section 8(a)(3) and (1) of the Act IV. TIHE CHA.I.ENGES AND OBJECTIONS The challenges remaining to be resolved in this pro- ceeding are to ballots cast by Kathleen Blake, Doreen Bowser, William Cook, Ruth Davis, Mark Faiella, Carol Gaul, Janice King, Hazel Mann, Jessie Miller, Gloria Niemi, Dana Pitts, Gregory Spaulding, Melissa Spauld- ing, Chris Stahlheber, and Oren Thompson. As I have found above that Hazel Mann was a super- visor within the meaning of the Act, I find that she was not eligible to vote and recommend that the challenge to her ballot be sustained. With respect to the 14 remaining employees, I have found that King and Miller were un- lawfully denied reinstatement after the walkout, Pitts was discriminatorily laid off on May 19, and the remain- der were discriminatorily laid off on May 5. According- ly, I find that all were eligible to vote and recommend that the challenges to their ballots should be overruled. In the event that the revised tally of ballots shows that a majority voted for the Union, 64 a certification of rep- resentatives should issue, and it will become unnecessary to act further on the Petitioner's objections to the elec- tion or the General Counsel's contention that a bargain- ing order should issue, as the results of the election will govern. In the event that the revised tally of ballots shows that a majority did not vote for the Union, the objections must be considered. The first objection is that the May 5 layoff was intended to influence the outcome of the elec- tion. As I have found above that the layoff was discrimi- natory, I find merit in this objection. The remaining objection is based on the Regional Di- rector's failure to provide Spanish language ballots for Spanish-speaking employees despite Petitioner's request for them. The evidence as to that objection is not contra- ' I addition to the 14 hallots found above to hae heeli cast by eligi hie oters, here are 5 other challenrged hallots which ;rt lo be coutled puruant to the Regional Dilrector's August 22, 178, Supplecllntial )eci- st ott dicted, but, in view of the findings above, I find it unnec- essary to consider this objection further. In the event that the Union did not receive a majority of the votes as shown by the revised tally of ballots, I would recommend that first objection be sustained and the election be set aside. V. HEI REMIEDY Having found that Respondent engaged in unfair labor practices, I shall recommend that it be ordered to cease and desist therefrom and take certain affirmative action designed to effectuate the policies of the Act. As I have found that Respondent unlawfully dis- charged or laid off employees whose names are listed below, I shall recommend that Respondent be ordered to offer them immediate and full reinstatement to their former jobs, without prejudice to their seniority or other rights and privileges. 6 5 I shall further recommend that Respondent be ordered to make them whole for any loss of earnings they may have suffered as a result of the dis- crimination against them by payment to them of the amount they normally would have earned from the dates of their discharges or layoff until the dates of Respon- dent's offers of reinstatement, less net earnings, to which shall be added interest to be computed in the manner prescribed in F. W. Woolworth Company, 90 NLRB 289 (1950), and Florida Steel Corporation, 231 NLRB 651 (1977). 6 The employees entitled to reinstatement and backpay are: Alma Beecher Kathleen Blake Carol Lee Clark Doreen Bowser Cook William Cook Ruth Davis Pedro Diaz Daniel Dineen Craig Estelle Mark Faiella Mary Garigliano George Garland Carol Gaul William Hawley Merea Jones Janice King Christine Leibowitz Cheryl Martin Jessie Miller Gloria Neimi Dana Pitts Nelson Platts, Jr. Gregory Spaulding Melissa Spaulding Brett Stahlheber Christopher Stahlheber Francis Thompson Orin Thompson The General Counsel contends in addition that before the May 15 layoff the Union represented a majority of the employees in an appropriate unit consisting of Re- spondent's production and maintenance employees, that Respondent's unfair labor practices were designed to de- stroy the Union's majority and made a fair election im- possible, and that a bargaining order is therefore required to remedy Respondent's unfair labor practices. Respon- dent contends that the Union never represented a major- ity of Respondent's employees because at the February 27 Howard Johnson's meeting the Union offered to waive initiation fees for employees who signed cards, "' Ihe record indicated hat several of the amed employees were cm- ployed by E '. at some lime after August 3. Whether or not that employ- meilt satisfied Responldelit's reinstatement obligatiotn is a matter left for detertirlatilon l the compliance stage of this priceeding. ' See. gentrall,. iu lufolmbing & llring Co.. 18 NLRI 716 (19h2) 1078 S. L. INDUSTRIES. INC. rendering all cards signed there void. Respondent also contends that any unfair labor practices which may be found herein are not sufficiently serious to warrant entry of a bargaining order. These issues need not be reached if the revised tally of ballots shows that a majority of the employees voted for the Union. However, they must be considered as an al- ternative in the event that they did not. With respect to the Union's majority, the only issue raised is whether the cards signed on February 27 are void. If valid, the Union had a clear majority by March 15.67 In support of its contention Respondent relies on the following testimony of Sylvia Spaulding that Union Representative Morbi- delli told employees, "that if we signed for the union, that there would be monthly dues. There would be no- what do you call it-there would be no payment due to join it." However, that testimony was given after a series of leading questions premised on the assumption that em- ployees were told that they would not have to pay dues if they signed cards by a certain date. When Spaulding was asked simply to repeat in her own words everything that Morbidelli said relating to initiation fees, she replied, "That there would be no initiation fees for the people that were working, that there would be a monthly dues. Any new employees coming in would be paying the ini- tiation fee." The Union has no initiation fee as such, although it may charge double dues to an employee for the first month of membership in an established local. Employees who join newly chartered local unions are charged only I month's dues, and it is union policy to charter new local unions only after an election and certification. Lit- erature distributed to employees during the preelection campaign reflected that policy, and Morbidelli testified that in his statements to employees about initiation fees he told employees nothing other than what the Union's policy was. No other witness testified that Morbidelli of- fered to waive initiation fees only for employees who signed cards before the election. In the context of the evidence of union policy, I find Spaulding's initial testimony at best ambiguous and clari- fied by her later testimony that Morbidelli distinguished between employees then at work and new employees rather than between those who signed cards and those who did not." 8 I find that Morbidelli told employees what the union policy was and did not tell them that waiver of initiation fees for them would be conditioned on their signing cards. I find further that Morbidelli's de- s6 By March 15, there were 71 production and maintenance employees on the combined S.L. and Seamless payrolls, including King, Leibolwit, and Miller found above to have been discriminatoril) discharged l hirly seven of these employees had signed union authoriation cards o oe r before that date On May I there ere 67 production and maintenance employees on the payroll, including Lcihbowitz. ,lho had been reinstated. and King and Miller. Forty of these employees had signed union authori- zatiion cards on or before that date. I find it unnecessary to decide wheth- er the card signed by Donald Holmes on behalf of George Dahlberg w.as valid, as in any event the Union's majority is clear e" Spaulding denied that Morbidelli conditioned waiver of initiallion fees on signing cards by a certain date tiHer tesinllnoll that enmployee were told "if we signed for the union." there would be monthly dues but no intiation fees may simply reflec the factl halt nles a nma;ljoritl igned fir the Union and the Union 'las certified or recogllled there ,ssould he no occasion for paymentl of due r nitiallton fs scription of the union's initiation fee policy to employees at the February 27 meeting did not constitute an improp- er inducement of employees to sign union authorization cards. 69 Accordingly, I find that at all times on and after March 15, the Union represented a majority of the em- ployees in the following unit which the parties agreed is an appropriate unit for purposes of collective bargaining: All production and maintenance employees at Re- spondent's Madison, Connecticut, plant, but exclud- ing truckdrivers, office clerical employees, profes- sional employees, guards, and supervisors as defined in the Act. I further find that issuance of a bargaining order is warranted in this case. The plant closure threats and the May 5 layoff are of themselves violations which invari- ably leave "a deep and lasting impression on employees" and have a "long-term coercive influence." 7 0 Here the threats and the layoff are intertwined as the layoff neces- sarily fed the fears of closure. The coercive impact was magnified when the layoff was followed by the purport- ed closure of S.L., the takeover by E.P., and the failure to offer employment to most of the laid-off S.L. employ- ees. Respondent's hostility to union representation was pervasive, and its unfair labor practices affected every employee in the bargaining unit, almost half of whom lost their jobs and the rest of whom witnessed the dem- onstration of the adverse consequences that support for the Union could bring them. Thus, Respondent by its conduct conveyed to its employees a deep commitment to its antiunion position and its willingness to resort to utilize unfair labor practices to maintain that position As has been said elsewhere: 7 The mischief in Respondent's conduct is more than its tendency to have an immediate impact upon the employees seeking representation; the harm lies in the tendency of such conduct to imprint upon the fabric of the employment relationship Respondent's determination-so strongly expressed-that the em- ployees shall not have an opportunity to freely choose whether to be represented and its intention to punish employees if the choice is not to Respon- dent's liking. Once the fabric is contaminated, it does not so easily wash clean. The employees do not forget their past experience. New employees are reminded of what happened to their predecessors. Respondent may not here contend that having pre- vented a free election when one could have been here, it is entitled to an election now, after it has disorganized the electorate. I find that Respondent's unfair labor practices had a tendency to undermine majority strength and impede the election processes and that there is only a slight possibil- ' 1. I) lc tiurrlnd ('oinpanv, 219 NI R It 75 ( 1 9 7 5). fd 572 F 2d 2Sh (lth Cir 1 971 r right PlatiW Product. Inc . 247 NLRB No 1(01 1980) S . & .If (rotrs. In, S ('Cook Ererprs. Ltd. and (cN,A s Supernuar- kci. 2 NI RIt 1s)4. tIh (1l78) 1079 DECISIONS OF NATIONAL LABOR RELATIONS BOARD ity that traditional remedies could erase their impact and insure a fair election.7 2 Accordingly, in the event that the revised tally of bal- lots shows that a majority of the employees did not vote for the Union, I shall recommend that Case -RC-15668 be dismissed, that all proceedings in connection there- with be vacated, and that Respondent be ordered to bar- gain collectively with the Union as representative of the Madison, Connecticut, production and maintenance em- ployees from March 15, 1978, the date by which the Union had secured authorizations from a majority of the employees and Respondent had commenced its unfair labor practices. 3 Finally, the same considerations which warrant entry of the bargaining order also support the conclusion that the unfair labor practices in this case were of sufficient seriousness, scope, and impact to warrant entry of a broad cease-and-desist order.74 Upon the basis of the above findings of fact and the entire record in this case, I make the following: CONCLUSIONS OF LAW 1. S.L. Industries, Inc., and Extruded Products, Corp., constitute an employer engaged in commerce within the meaning of Section 2(2), (6), and (7) of the Act. 2. United Rubber, Cork, Linoleum and Plastic Work- ers of America, AFL-CIO, is a labor organization within the meaning of Section 2(5) of the Act. 3. All production and maintenance employees at Re- spondent's Madison, Connecticut, plant but excluding truckdrivers, office clerical employees, professional em- ployees, guards, and supervisors as defined in the Act constitute a unit appropriate for the purposes of collec- tive bargaining within the meaning of Section 9(b) of the Act. 4. At all times since March 15, 1978, the Union has been and now is the exclusive representative of the em- ployees in said unit for the purpose of collective bargain- ing within the meaning of Section 9(a) of the Act. 5. By threatening employees with closure of Respon- dent's Madison plant, by promising employees unspeci- fied improvements if they rejected union representation, by requiring employees to be interviewed before return- ing them to their jobs after a protected concerted wal- kout, by interrogating employees about their protected concerted activities, by granting employees an additional paid holiday because of their union activities, by an- nouncing the establishment of an employee committee to handle grievances, by telling employees that their rein- statement could not be considered because charges were pending, and by restricting employees' in-plant communi- cation because of their union and concerted activities Re- spondent has engaged in unfair labor practices affecting commerce within the meaning of Sections 8(a)(1) and 2(6) and (7) of the Act. 6. By refusing to reinstate and discharging Janice King, Christine Leibowitz, and Jessie Miller on February 27, 1978, because of their union and concerted activities, 72 NL.RB. v. Gl Pucking Co. 395 US 575, 614 (1969')); Wrigh Plactic Products, Inc.. upro '' Trading Prr. Inc., 219 NLRB 298 (1975) ?4 Wrighr Plastic Produrci, Inc.. upra. by laying off 25 employees on May 5 and 19, 1978, be- cause of the employees' union activities, by denying Leibowitz vacation pay, by discriminating against Leibowitz in her working conditions after her May I re- instatement, and by discriminatorily discharging Leibowitz on July 17, 1978, Respondent has engaged in unfair labor practices affecting commerce within the meaning of Section 8(a)(3) and (1) and Section 2(6) and (7) of the Act. Upon the foregoing findings of fact, conclusions of law, and the entire record and pursuant to Section 10(c) of the Act, I hereby issue the following recommended: ORDER 75 The Respondent, S. L. Industries, Inc., and Extruded Products, Corp., Madison, Connecticut, its officers, agents, successors, and assigns, shall: 1. Cease and desist from: (a) Threatening employees with plant closure because of their union activities. (b) Promising employees benefits if they reject union representation. (c) Requiring employees to be interviewed as a condi- tion of reinstatement following a protected concerted work stoppage. (d) Interrogating employees about their protected con- certed activities. (e) Granting additional paid holidays in order to dis- courage union activities. (f) Announcing the establishment of an employee com- mittee to handle grievances. (g) Conveying to employees that they cannot be rein- stated because charges in their behalf are pending. (h) Restricting employees' in-plant communications with one another because of their protected concerted or union activities. (i) Discharging, refusing to reinstate, laying off, or oth- erwise discriminating against employees in regard to their hire or tenure of employment, or any term or con- dition of employment, because they engage in protected concerted activities or activities on behalf of United Rubber, Cork, Linoleum and Plastic Workers of Amer- ica, AFL-CIO, or any other labor organization. (j) In any other manner interfering with, restraining, or coercing employees in the exercise of their right to engage in or refrain from engaging in any or all of the activities specified in Section 7 of the Act. 2. Take the following affirmative action which is nec- essary to effectuate the policies of the Act: (a) Upon request, recognize and bargain collectively with the above-named Union as the exclusive representa- tive of the employees in the appropriate unit described in 75 In the event no exceptions are filed as provided by Sec 102.46 of the Rules and Regulations of the National Labor Relations Board, the findings, conclusions, and recommended Order herein shall, as provided by Sec 102.48 of the Rules and Regulations, be adopted by the Board and become its findings, conclusions, and Order, and all objections there- ti shall be deemed waived for all purposes. In the event that the revised tally of ballots in Case I-RC-15668 shows that a majority voted for the Unicon, par. 2(a) shall be deleted from the order, the other paragraphs shall be renumbered appropriately. ad the next to the last paragraph shall he deleted from the Appendix 1080 S. I. INI)LISISRIIS, INC paragraph 3 in the section of this Decision entitled "Co1n- clusions of Law" and upon request embody in a signed agreement any understanding reached. (b) Offer the following employees immediate and full reinstatement to their former jobs, or, if those jobs no longer exist, to substantially equivalent positions, without prejudice to their seniority or other rights and privileges, and make them whole for any loss of earnings they may have suffered as a result of discrimination against them in the manner set forth in the section of the Decision enti- tled "The Remedy." The employees are: Alma Beecher Kathleen Blake Carol Lee Clark Doreen Bowser Cook William Cook Ruth Davis Pedro Diaz Daniel Dineen Craig Estelle Mark Fiella Mary Garigliano George Garland Carol Gaul William Hawley Merea Jones Janice King Christine Leibowitz Cheryl Martin Jessie Miller Gloria Neimi Dana Pitts Nelson Platts, Jr. Gregory Spaulding Mellissa Spaulding Brett Stahlheber Christopher Stahlheber Francis Thompson Orin Thompson (c) Preserve and. upon 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 re- cords relevalnt and necessary to a determination of com- pliance with paragraph (b) above. (d) Post at its Madison, Connecticut, place of business, copies of the attached notice marked "Appendix. " 7 Copies of said notice on forms provided by the Regional Director for Region I, after being duly signed by Re- spondents representative, shall be posted by it immedi- ately upon receipt thereof and be maintained by it for 60 consecutive days thereafter, in conspicuous places, in- cluding all places where notices to employees are cus- tomarily posted. Reasonable steps shall be taken by Re- spondent to insure that said notices are not altered, de- faced, or covered by any other material. (e) Notify the Regional Director for Region 1, in writ- ing, within 20 days from the date of this Order, what steps have been taken to comply herewith. 71' In the event that this Order is enforced by a Judgment of a United Stales Court of Appeals, the words in the notice reading "tosted by Order of the National L.ahor Relations Board" shall read "Posted PIursu- ant to a Judgment of the United States Court of Appeals Enforcing an Order of the National Labor Relationls Board " I(1s I Copy with citationCopy as parenthetical citation