Sidran SportswearDownload PDFNational Labor Relations Board - Board DecisionsJan 25, 194981 N.L.R.B. 270 (N.L.R.B. 1949) Copy Citation In the Matter Of JOSEPH SIDRAN , DOING BUSINESS AS SIDRAN SPORTS- WEAR and INTERNATIONAL LADIES GARMENT WORKERS UNION, AFL Case No. 16-C-1509.-Decided Januaryy_115, 1949 DECISION AND ORDER On August 5, 1948, Trial Examiner A. Bruce Hunt issued his Inter- mediate Report in the above-entitled proceeding, finding that the Respondent had engaged in and was engaging in certain unfair labor practices,' and recommending that he cease and desist therefrom and take certain affirmative action, as set forth in the copy of the Inter- mediate Report attached hereto. Thereafter, the Respondent filed exceptions to the Intermediate Report. Pursuant to the provisions of Section 3 (b) of the Act, as amended, the National Labor Relations Board has delegated its powers in con- nection with this proceeding to a three-man panel consisting of the undersigned Board Members.* The Board has reviewed the rulings made by the Trial Examiner and finds that no prejudicial error was committed. The rulings are hereby affirmed. The Board has considered the Intermediate Report, the exceptions filed by the Respondent, and the entire record in the case, and hereby adopts the findings, conclusions, and recommendations of the Trial Examiner, with the additions and modifications set forth below. 1. On October 14, 1946, the Respondent and the Union executed an "Agreement for Consent Election," providing for an election by secret ballot to be conducted by the Board's Regional Director on November 13, 1946, among the Respondent's employees at his Brownwood, Texas, plant. The agreement provided that "the determination of the Re- gional Director shall be final and binding upon any question, including questions as to the eligibility of voters, raised by any party hereto related in any manner to the election." I Those provisions of Section 8 (1) and ( 5) of the National Labor Relations Act, which the Trial Examiner found were violated , are continued in Section 8 (a) (1) and ( 5) of the Act, as amended by the Labor Management Relations Act, 1947. 'Chairman Herzog and Members Houston and Murdock. 81 N. L. R. B., No. 44. 270 SIDRAN SPORTSWEAR 271 At the time this agreement was executed, there was a dispute as to the status of a group of six employees described as "bundle girls," the Union claiming that they were supervisors , and the Respondent main- taining that they were non-supervisory. It was agreed that these six individuals would not be specifically included in or excluded from the unit, and that they would be permitted to vote subject to challenge by the Union. At the election, all six bundle girls voted, and their ballots were challenged by the Union.2 Both the Union and the Em- ployer filed memoranda with the Regional Director concerning these challenges. The Regional Director investigated the matter, and, on December 13, 1946, issued his report, finding that the bundle girls were supervisors and sustaining the Union's challenges to their ballots. Accordingly, on December 30, 1946, the Regional Director issued his Consent Determination of Representatives, finding that the Union had been designated and selected by a majority of the employees in an appropriate unit. On December 17, 1946, the Respondent appealed to the Board, which, on January 10, 1947, informed the Respondent that it refused to consider the appeal. Thereafter, on February 17, 1947, the Respondent refused to bargain with the Union on the ground that the Board "was in error" in failing to consider the appeal and to declare the election void or lost by the Union. The Respondent contends that the Regional Director's determina- tion was arbitrary and capricious, and should therefore be reversed. At the hearing, the Respondent produced evidence in support of his contention that the bundle girls are not supervisors. However, the Respondent made no claim that the Regional Director's investigation was inadequate, and produced no evidence that his findings, based on the information before him, were arbitrary or capricious. Under the circumstances, and regardless of how we might have determined the question if the Respondent had not authorized the Regional Director to determine it finally, we cannot say that the Regional Director's determination was arbitrary or capricious, or that it lacked substantial support.' 2. The Trial Examiner found that the Respondent refused on January 4, 1947, to bargain with the Union, in violation of Section 8 (5) of the Act. The Respondent's appeal to the Board was still pending on that date. The Respondent again refused, on February 17, 2 The Resrondent chillenged the ballots of certain persons on the ground that they were not on the lay roll wwhihh had been selected as the basis of eligibility to vote The Regional Director sustained one of these C hallenges and overruled the others. We agree with the Trial Examiner that the Regional Director' s determinations as to these challenges were proper . and that, in any event, the determinations did not change the outcome of the election 2 Matter of Capitol Greyhound Lines , of al , 49 N . L R B 156, enforced 140 F (2d) 7,54 (C A. (1) 272 DECISIONS OF NATIONAL LABOR RELATIONS BOARD 1947, to bargain with the Union, although its appeal to the Board had then been disposed of. Accordingly, without passing on whether there was an earlier refusal to bargain, we find that on February 17, 1947, and at all times thereafter, the Respondent refused to bargain col- lectively with the Union as the exclusive representative of its em- ployees, and thereby interfered with, restrained, and coerced his em- ployees in the exercise of the rights guaranteed in Section 7 of the Act, in violation of Section 8 (1) and (5) of the Act. 3. On November 12, 1946, the day preceding the election, Joseph Sidran, the Employer, delivered a speech to all the employees in the plant. Although much of the speech was a non-coercive argument against self-organization, several statements in the speech, which are set forth in the Intermediate Report, clearly contained a threat that the plant might be closed if the Union won the election. We find, as did the Trial Examiner, that these statements were coercive, and that the Respondent thereby violated Section 8 (1) of the Act. ORDER Upon the entire record in this case, and pursuant to Section 10 (c) of the National Labor Relations Act, as amended, the National Labor Relations Board hereby orders that the Respondent, Joseph Sidran, doing business as Sidran Sportswear, Brownwood, Texas, and his agents, successors, and assigns, shall : 1. Cease and desist from : (a) Refusing to bargain collectively with International Ladies Gar- ment Workers Union, AFL, as the exclusive representative of all pro- duction workers, at the Respondent's Brownwood, Texas, plant includ- ing operators, finishers, pressers, markers, inspectors, bundlers, and special machine operators, but excluding office workers, clericals, ship- ping clerks, porters, and supervisors; (b) In any other manner interfering with, restraining, or coercing his employees in the exercise of the right to self-organization, to form labor organizations, to join or assist International Ladies Garment Workers Union, AFL, or any other labor organization, to bargain collectively through representatives of their own choosing, and to engage in concerted activities for the purpose of collective bargaining or other mutual aid or protection, or to refrain from any and all of such activities except to the extent that such right may be affected by an agreement requiring membership in a labor organization as a condition of employment as authorized in Section 8 (a) (3) of the Act, as guar- anteed by Section 7 thereof. 2. Take the following affirmative action, which the Board finds will effectuate the policies of the Act : SIDRAN SPORTSWEAR 273 (a) Upon request, bargain collectively with International Ladies Garment Workers Union, AFL, as the exclusive bargaining represent- ative of all the production workers at the Respondent's Brownwood, Texas, plant including operators, finishers, pressers, markers, inspec- tors, bt cjlers, and, special machine operators, but excluding office workers, clericals, shipping clerks, porters, and supervisors, with respect to rates of pay, wages, hours of employment, or other condi- tions of employment and if an understanding is reached embody such understanding in a legal agreement ; (b) Post at his plant in Brownwood, Texas, copies of the notice attached hereto, marked "Appendix A."' Copies of such notice, to be furnished by the Regional Director for the Sixteenth Region, shall, after being duly signed by the Respondent or his representative, be posted by the Respondent immediately upon receipt thereof, and main- tained by him for a period of at least sixty (60) consecutive days thereafter, in conspicuous places, including all places where notices to employees are customarily posted. Reasonable steps shall be taken by the Respondent to insure that said notices are not altered, defaced, or covered by any other material; (c) Notify the Regional Director for the Sixteenth Region in writing, within 10 days from the date of this Order, what steps the Respondent has taken to comply herewith. APPENDIX A NOTICE TO ALL EMPLOYEES Pursuant to a Decision and Order of the National Labor Relations Board, and in order to effectuate the policies of the National Labor Relations Act, as amended, we hereby notify our employees that : WE WILL NOT interfere with, restrain, or coerce our employees in the exercise of their right to self-organization, to form labor organizations, to join or assist INTERNATIONAL LADIES GARMENT WORKERS UNION, AFL, or any other labor organization, to bar- gain collectively through representatives of their own choosing, and to engage in concerted activities for the purpose of collective bargaining or other mutual aid or protection or to refrain from any and all of such activities except to the extent that such right may be affected by an agreement requiring membership in a labor organization as a condition of employment, as authorized in Section 8 (a) (3) of the Act, * In the event this Order is enforced by decree of a United States Court of Appeals, there. shall be ip tted before the words, "A Decision and Order ," the words , "A Decree of the. United States Court of Appeals Enforcing " 274 DECISIONS OF NATIONAL LABOR RELATIONS BOARD WE WILL BARGAIN collectively, upon request, with the above- named union as the exclusive representative of all the employees in the bargaining unit described below with respect to wages, rates of pay, hours of employment, or other conditions of employ- ment, and, if an understanding is reached, embody such under- standing in a signed agreement. The bargaining unit is : All production workers, including operators, finishers, pressers, markers, inspectors, bundlers, and special machine operators, em- ployed at the Brownwood plant, exclusive of office workers, clericals, shipping clerks, porters, and supervisors. JOSEPH SIDRAN, DOING BUSINESS AS SIDRAN SPORTSWEAR Employer. Dated---------------- By------------------------------------ (Representative ) ( Title) This notice must remain posted for 60 days from the date hereof, and must not be altered, defaced, or covered by any other material. INTERMEDIATE REPORT AND RECOMMENDED ORDER Mr. E. Don Wilson, for the General Counsel. Corenbleth & Passman, by Mr. Emil Corenbleth, of Dallas, Tex., for the Respondent. Mr. Jack Johannes and Mr. Raymond Hagerty, of Dallas, Tex., for the Union. STATEMENT OF THE CASE Upon a charge filed on February 19, 1947, by International Ladies Garment Workers Union, AFL, herein called the Union, the General Counsel for the National Labor Relations Board,' by the Regional Director for the Sixteenth Region (Fort Worth, Texas), issued a complaint dated April 23, 1948, against Joseph Sidran, doing business under the trade name and style of Sidran Sports- wear, Dallas, Texas, herein called the Respondent, alleging that the Respondent had engaged in and was engaging in unfair labor practices affecting commerce within the meaning of Section 8 (1) and (5) and Section 2 (6) and (7) of the National Labor Relations Act, 49 Stat. 449, herein called the Act, and Section 8 (a) (1) and 8 (a) (5) and Section 2 (6) and (7) of the Act as amended by the Labor Management Relations Act, 1947, 61 Stat. 136. Copies of the com- plaint and notice of hearing thereon were duly served upon the Respondent and the Union. With respect to the unfair labor practices, the complaint as amended at the hearing, alleged in substance that (a) on or about January 4, 1947, and at all times thereafter, the Respondent refused to bargain collectively with the Union as the exclusive representative of his employees in an appropriate unit, although a majority of said employees had designated the Union as their representative for such purposes; and (b) by said act, and by disparaging and expressing dis- i The General Counsel and the attorney representing him at the hearing are referred to as the General Counsel. The National Labor Relations Board is referred to as the Board. SIDRAN SPORTSWEAR 275 approval of the Union, and urging, persuading, threatening, and warning the emr ployees to refrain from assisting or becoming or remaining members of the Union, the Respondent interfered with, restrained, and coerced, and is interfering with, restraining, and coercing his employees in the exercise of the rightg guaranteed in Section 7 of the Act. On May 4, 1948, the Respondent filed his "Motion to Dismiss and Answer," admitting certain allegations of the complaint concerning his business activitiel, but denying that he had engaged in unfair labor practices. The Answer admits that the Respondent refused to bargain collectively with the Union, but allege$ affirmatively inter alia that an election was conducted among the employees by the Board, pursuant to a consent election agreement between the Respondent and the Union, that the challenged ballots were sufficient to affect the result of the election, that the Regional Director's determinations of the issues were capricious and arbitrary, that had such determinations been otherwise the Union would not have been certified by the Regional Director as the exclusive repre- sentative of the employees, that the election should have been declared void, and that the Union does not now represent a majority of the employees. Ili addition, the Motion to Dismiss contains various motions that the complaint be dismissed in whole and in part upon grounds set forth in substance below. Pursuant to notice, a hearing was held on May 18, 1948, at Brownwood, Texas, before the undersigned Trial Examiner duly designated by the Chief Trial Ex- aminer. The General Counsel, the Respondent, and the Union were represented by counsel and all participated in the hearing. Full opportunity to be heard, to examine and cross-examine witnesses, and to introduce evidence bearing on the issues was afforded all parties. At the opening of the hearing, the Gen- eral Counsel moved to amend the complaint so that the allegations respecting the appropriate unit would coincide with the description of such unit in the consent election agreement, and the Respondent moved to amend its answer so as to show agreement therewith. These motions were granted without objec- tion. The Respondent's motions to dismiss the complaint, in whole and in part, were denied. The motions, insofar as they assert that the Labor Management Relations Act, 1947, "repealed the provisions of the Wagner Act covering the alleged violations set out in this complaint" and that "No savings provisions or clauses in the" amendatory legislation "permit the filing of, hearing or action on this complaint," is without merit.2 Likewise, the motions, insofar as they assert that the "complaint comes too late and is barred by limitations and laches," and that because "of the lapse of time the results of . . . [the consent] election are not now determinative . ." is without merit.' Finally, the assertion that 2As the Board said in Matter of Republic Steel Corporation (Upson Division), 77 N. L. It. B 1107: "The contention overlooks the general savings statute, which is as much a part of the amended Act as if specifically incorporated therein. [Authority cited] . . . We have heretofore held, with judicial approval, that `The obligations of employers arising out of violation of the National Labor Relations Act are clearly "liabilities" within the meaning of the general savings statute' and that the statute `must be held to preserve "all liabilities" arising under the National Labor Relations Act prior to amendment.' [Authority cited]." ' The Respondent acknowledges that it refused to bargain in February 1947. The charge was filed during that month, written notice thereof was given to the Respondent promptly, and a copy thereof was served upon the Respondent during June 1947. The complaint was issued on April 3, 1948. See Matter of Standard Oil Company of California, 61 N. L. It. B. 1251, 1255, and authority cited therein, where the Board said that "the doctrine of lathes does not apply to an agency of the United States Government in proceedings which are an exercise of Its public or governmental function " Moreover, the Respondent' A professed doubt about the Union' s present majority status is of no merit under authority of Matter of Marshall and Bruce Company, 75 N. L. R B. 90. 829595-50-vol 81-19 276 DECISIONS OF NATIONAL LABOR RELATIONS BOARD the charge does "not conform to the law as required by [Section] 9 (f), 9 (g) and 9 (h) of the" Labor Management Relations Act, 1947, is also meritless.4 At the close of the General Counsel's case, the Respondent renewed its motions to dis- miss, which were again denied. At the close of the hearing, the motions were again renewed, and were taken under advisement. They are hereby denied. The General Counsel moved to conform the pleadings to the proof as to formal matters, and this motion was granted without objection. The parties did not avail themselves of an opportunity to argue orally. Pursuant to leave granted, the General Counsel and the Union, but not the Respondent, filed briefs Upon the entire record in the case, and from my observation of the witnesses, I make the following : FINDINGS OF FACT 1. THE BUSINESS OF THE RESPONDENT The Respondent, an individual doing business under the trade name and style of Sidran Sportswear, has his principal office and place of business in Dallas, Texas, where he is engaged in the manufacture of ladies' sportswear. The Respondent also operates a plant in Brownwood, Texas, with which we are particularly con- cerned here. During 1946, the Respondent purchased raw materials, valued at approximately $160,000, of which 95 percent was shipped to the Respondent from points outside Texas. Approximately 30 percent of such materials was shipped to the Brown- wood plant, either directly by the sellers outside Texas or by shipment first to the Respondent's plant in Dallas and, thereafter, by the Respondent from his Dallas plant to his Brownwood plant. The finished products manufactured by the Respondent in 1946 exceeded $400,- 000 in value, of which about 30 percent was manufactured at the Brownwood plant. After manufacture there, the garments were transported by the Respond- ent to his Dallas plant, and from that point 65 percent of his total sales were made to persons outside Texas. The Respondent's business for the year 1947 was substantially the same as that for 1946, with the addition that he manufactured garments for the United States Government. Such garments were manufactured in the Brownwood plant of raw materials shipped by the Government to that plant from points outside Texas, and the Respondent's remuneration therefore was $75,000. The Re- spondent acknowledges, and I find, that he is engaged in commerce within the meaning of the Act. 4 See Matte of The Baldwin Locomotive Works, 76 N L R. B 922, wherein the Board said that the "determination of compliance with these requirements is an administrative one to be made by the Board itself, and is not litigable by the parties." G At the hearing I rejected General Counsel's Exhibit No. 12, a copy of a letter dated December 19, 1946, from the Regional Director to the Respondent, for the reason that there was an absence of proof that the original thereof had been mailed or received. By agreement of counsel, however, it was stipulated that the General Counsel should be afforded an opportunity to forward to me, subsequent to the hearing, proof that the original letter was received by the Respondent and that I might then reverse my ruling on admission of the copy in evidence. The General Counsel having furnished such proof in a letter of May 28, 1948, to me, with copies to the other parties, and having attached thereto a return receipt from the Post Office Department showing that the original of General Counsel's Exhibit No 12 was delivered to the Respondent, it is hereby ordered that said exhibit be received in evidence. It is further ordered that said letter of May 28, 1948, from the General Counsel to me be received in evidence as Trial Examiner's Exhibit No 1. SIDRAN SPORTSWEAR II. THE ORGANIZATION INVOLVED 277 International Ladies Garment Workers Union is a labor organization affiliated with the American Federation of Labor, which admits to membership employees of the Respondent. M. THE UNFAIR LABOR PRACTICES A. The chronology of events On October 14, 1946, the Respondent and the Union executed an "Agreement for Consent Election," providing that an election by secret ballot should be con- ducted by the Board's Regional Director on November 13, 1946, among the Re- spondent's Brownwood employees in a unit which the Respondent and the Union agreed was appropriate for the purposes of collective bargaining. On October 28, the agreement received the approval of the Regional Director, and at an un- disclosed time shortly thereafter the Respondent posted a notice of the election for the attention of the employees. On November 12, 1946, the day preceding the election, the employees were as- sembled on company time and property to hear an address by the Respondent. The speech, previously reduced to writing, was received in evidence, and in a num- ber of paragraphs it is a non-coercive argument against self-organization. The employees were told that they were free to join or not to join the Union without fear of discrimination, to vote as they pleased in the election, and that the Re- spondent would "abide by" the "returns" and bargain collectively with the Union if it won the election. In some respects, however, the speech contained refer- ences to a possibility that the plant would be closed. Thus, the Respondent said : I hope I can make a success of this factory so I won't have to lease it or sell it for some other manufacturing business. * * * * * I want to make this the best plant in Texas, and if I don't I'll be tempted to close it and lease it for some other manufacturing purpose, such as furniture or the like. * * * * * You know the difficult time we have had getting materials. . . . I haven't had enough to keep my three factories going. I could have closed this fac- tory and still not have had enough for my other plants I didn't do this because I wanted to give you work and prepare for the time I could really make things hum here. I honestly believe if this were a Union shop the incentive for such efforts would be gone. [Emphasis supplied.] I am deeply concerned that if you vote for the Union tomorrow you may injure this business and yourself. On November 13 the election was conducted, and the "Certification On Con- duct Of Election," dated that day, was signed by an agent of the Regional Director and the "authorized observers" of the Respondent and the Union, who certified that the balloting was fairly conducted. On the same day, the agent of the Regional Director issued a "Tally of Ballots," in which he certified that there were 33 votes cast for the Union, 30 against it, that there were no void ballots, and that 12 ballots were challenged, which were sufficient in number to affect the result of the election. This document was signed by the "authorized 278 DECISIONS OF NATIONAL LABOR RELATIONS BOARD observers" of the Respondent and the Union, who certified as to the tabulating and secrecy of the ballots. The 12 challenged ballots, unopened, were im- pounded by the agent of the Regional Director. On November 18, the Respondent filed with the Regional Director a written argument in support of its position that certain ballots, cast by persons whom the Respondent had challenged, should not be counted ; that other ballots, cast by persons whom the Union had challenged, should be counted; and alleging that one of the individuals whose ballot had been challenged by the Respondent was brought to the plant by the Union immediately before the election and had engaged in electioneering with the result that 3 employees, "who would have voted for the Company," did not vote. In addition, the Respondent withdrew 1 of its challenges, leaving the number of challenged ballots at 11. On November 20, the Union filed with the Regional Director a written statement of its position on the challenges and asserted that there was no merit to the Respondent's claim that improper electioneering had been engaged in on the Respondent's premises before the election. On November 25, the Respondent filed with the Regional Director its argument in answer to that which had been submitted by the Union. On December 13, the Regional Director issued his "Report On Objections To Election And Challenged Ballots," and served copies upon the Respondent and the Union. He found that the polling place was located " some fifty feet" from the plant, that no solicitation or electioneering at or near the polls was observed or called to the attention of his agent conducting the election, and that the alleged electioneering could not have resulted in three employees having ab- stained from voting because all but one of the eligible voters cast ballots. With respect to the six ballots which were challenged by the Respondent, one of which challenges was withdrawn, the Regional Director ruled that such ballot and four others should be counted , and sustained the objection of the Respondent in one instance. With respect to the six ballots challenged by the Union, the Regional Director ruled that the persons casting them were employed in a supervisory capacity, and sustained the challenges. Thus, five of the impounded ballots were to be opened and counted, and the Regional Director fixed Decem- ber 19 at his office as the time and place therefor! On December 17, the Respondent filed with the Board in Washington its ob- jections and exceptions to the report of the Regional Director. On January 10, 1947, the Board wrote to the Respondent, stating that it would not consider the Respondent's appeal! In the meantime, however, a revised tally of ballots had been issued by the Regional Director as described below. By telegram and mail the Regional Director informed the Respondent of his intention to count the five challenged ballots on December 19. Upon receipt of a copy of the Respondent's appeal to the Board, the Regional Director again tele- graphed the Respondent that the counting would take place as scheduled and 6 The arguments advanced by the Respondent and the Union with respect to the challenged ballots are discussed below, but it may be observed here that at the hearing the Respondent offered no evidence in connection with the alleged electioneering. T The Board informed the Respondent, in part, that it had uniformly adhered to the policy of deeming itself bound by the customary commitment of the parties to regard as final and binding the Regional Director 's determinations with respect to questions arising out of the conduct of an election held pursuant to an "Agreement for Consent Election." The Board therefore has refused to consider the merits of objections to rulings of its Regional Directors on matters relating to consent elections (except when pertinent to the issues presented in an unfair labor practice proceeding, in which event the Board will disturb the Regional Director's rulings only if it clearly appears that they are arbitrary or capricious). SIDRAN SPORTSWEAR 279 requested that the Respondent have an observer present. The Regional Director stated also that, in the absence of an observer, he would retain the ballots for a period of 30 days in order that the Respondent might examine them within that time It does not appear that the Respondent made such examination, nor did he have an observer present at the counting. Accordingly, the revised tally of ballots, issued on December 19, does not bear the signature of an observer for the Respondent. It shows that of the 5 ballots counted, 3 were cast for the Union and 2 against it, which made the final vote 36 to 32 in favor of representa- tion by the Union. A copy of the revised tally of ballots was mailed to the Respondent by the Regional Director on December 19.8 On December 30, 1946, the Regional Director issued a "Consent Determination of Representatives," and served copies upon the Respondent and the Union. He found that the Union, having received a majority of the ballots cast, was the exclusive bargaining representative of the employees within the appropriate unit set forth in the consent election agreement. On January 2, 1947, the Union wrote to the Respondent, pointing out that it had received the Regional Director's determination of representatives, and ask- ing for a bargaining conference. On January 4, the Respondent's attorney replied, asserting that there had been no determination because of its appeal to the Board, which had not been acted upon, and saying that the request of the Union was "premature." Subsequent to the Board's letter to the Respondent acting upon his appeal, the Union again asked for a conference. The Respond- ent's reply was delayed because of his absence from the State, but on Febru- ary 17,1947, lie responded, saying that the Board "was in error" in not considering the appeal and in not declaring the election void or deciding that the Union had lost it, and refusing to bargain because the matter had not "yet been deter- mined" nor had there been "a valid election." B. The refusal to bargain collectively 1. The appropriate unit In accordance with the terms of the consent election agreement and the posi- tion of the parties, I find that all production workers, including operators, finishers, pressers, markers, inspectors, bundlers, and special machine operators, of the Respondent employed at his Brownwood, Texas, plant, exclusive of office workers, clericals, shipping clerks, porters, and supervisory employees with authority to hire or discharge or effectively to recommend such action, constitute a unit appropriate for the purposes of collective bargaining within the meaning of Section 9 (b) of the Act. 2. Representation by the Union of a majority in the appropriate unit Prefatory to an examination of the positions of the parties on the challenged ballots and the rulings of the Regional Director, certain pertinent portions of the consent election agreement and a Board Decision in an analogous matter will be quoted: 1. SECRET BALLOT- . .. Said election shall be held in accordance with the National Labor Relations Act, the Board's Rules and Regulations, and the customary procedures and policies of the Board, provided that the determination of the Regional Director shall be final and binding upon any I It is this letter from the Regional Director to the Respondent which is referred to in footnote 5. 280 DECISIONS OF NATIONAL LABOR RELATIONS BOARD question, including questions as to the eligibility of voters, raised by any party hereto relating in any manner to the election. 2. ELIGIBLE VOTERS-The eligible voters shall be those employees included within the Unit described below, who appear on the Employer's pay roll for the period indicated below, including employees who did not work during said pay-roll period because they were 111 or on vacation or temporarily laid off . . . Like the first quoted paragraph, the Board's Rules and Regulations then in effect provided that ". . . the rulings and the determinations by the Regional Director of the results . . . [of the consent election] shall be final." ° In Matter of Capitol Greyhound Lines et al.,10 the Board was confronted with a problem not unlike that here, and it decided that it would not disturb a Regional Director's determinations in the absence of a showing that they were arbitrary or capricious. The Board's language, which received judicial approval, is quoted in the footnote.11 Thus, the question here is whether the Regional Director acted arbitrarily or capriciously in ruling upon the challenges and objections, and the Respondent concedes that the burden is upon him to establish the fact. The challenged ballots fall into two categories, those made by the Respondent and those made by the Union. With respect to the former, the Respondent challenged the ballots of six persons, later withdrawing one challenge. That person's ballot was counted, and of the remaining five, only one challenge was sustained by the Regional Director. The four challenges which were overruled involved employees found by the Regional Director to have been ill or tempo- rarily laid off during the pay-roll period set forth in the consent election agree- ment to determine eligibility. That agreement, as above quoted, specifically provided that employees who did not work during the particular pay-roll period because they were "ill or on vaca- tion or temporarily laid off" should be eligible to vote. While the Respondent at the hearing did not agree with the Regional Director's findings that the four employees actually had been ill or temporarily laid off, he offered no evidence to contradict the findings. Moreover, he did not dispute the Regional Director's findings that all of these employees worked prior and subsequent to that pay-roll period and that three of them were working on the day of the election. The Respondent does not contend that the Regional Director's rulings were inconsistent with the language of the consent election agreement. Instead, his ° N. L. R. B. Rules and Regulations, Series 4, Section 203 48, effective September 11, 1946. Subsequent Rules and Regulations, Series 5, Section 203 54, effective August 22, 1947, contain a like provision. 10 49 N. L. R. B. 156 1149 N. L. R. B. 156-9, aff'd N. L. R. B. v. Capitol Greyhound Lines, 140 F. (2d) 754, 758 (C C A 6), cert den. 322 U. S. 763: The factual question of majority is bottomed upon a consent agreement which expressly provided that a determination of the Regional Director as to questions arising out of the conduct of the election, including questions arising out of eligibility of voters, shall be final and binding on the parties. . . Upon these facts, we find that the Regional Director's ruling was neither arbitrary nor capricious In the absence of such conduct, we feel ourselves bound by the terms of the agreement providing for the finality and binding effect of the Regional Director's determination to the same extent as a court is bound by an agreement to abide by an arbitrator's award [authority cited) To hold otherwise would permit an employer deliberately to ignore binding commitments embodied in a consent agreement ; would open the door to subterfuges for hampering and delaying a final determination of a bargaining representative ; and would tend to defeat, rather than to effectuate, the policies of the Act. SIDRAN SPORTSWEAR 281 position is that at the time the agreement was executed in the office of his counsel, there was an oral agreement among the Respondent, the Union, and the agent of the Regional Director to the effect that only employees who actually worked during the particular pay-roll period would be eligible to vote and that employees would be ineligible if they had not worked then because of having been ill or temporarily laid off.12 The Respondent's assertion is unconvincing. It amounts to a contention that an oral understanding was reached, modifying the standard practice of the Board, but that no steps were taken to alter the language of the written agreement so that it would conform to the alleged modification, and that the Regional Director was arbitrary or capricious in following the written terms. The weakness of the Respondent's contention is apparent on its face. It is even weaker when one considers that after the execution of the written agreement, the Regional Director furnished to the Respondent a notice of the election which contained the following language : "Employees described under VOTING UNIT in this Notice of Election who did not work during the designated pay-roll period because they were ill or on vacation or temporarily laid off . . . shall be eligible to vote." The Respondent acknowledged receipt of this notice and posted it in the plant for the attention of the employees, but did not point out to the Regional Director the variance from the alleged oral agreement. Instead, the Respondent waited until the election to raise the point. Under these circumstances, there is no evidence that the Regional Director was arbitrary or capricious. His rulings were consistent with the written agreement of the parties and were wholly reasonable and proper . Moreover, since the original tally of ballots showed the vote as 33 to 30 in favor of the Union, and the revised tally, made after the counting of the 5 challenged ballots, increased the figures to 36 to 32, it is apparent that the outcome of the election would not have been different if the Regional Director had sustained all challenges by the Respondent. Therefore, the principal issue is with respect to the ballots of the persons who were challenged by the Union, and that issue is discussed immedi- ately below. At the conference in the office of the Respondent's counsel when the consent election agreement was executed, there was considerable discussion about whether a particular category of six employees should be included within the appropriate unit. The Respondent argued that the employees were non-supervisory, while the Union maintained the contrary, and agreement was not reached. The category was neither specifically included in nor excluded from the unit, and it was de- cided to leave the matter open for challenges by the Union at the polls and sub- sequent rulings by the Regional Director. Accordingly, the six employees were challenged by the Union. The Regional Director found that these employees were classified by the Re- spondent as "Bundle Girls" (not to be confused with "bundlers," a category of employees who were specifically included within the unit), by the Union as "Floorladies," and by themselves as "Supervisors." He found further inter alia that they are the "extra eyes" of the plant's superintendent, that various em- ployees work under their direction, that the "Bundle Girls" take the unfinished garments to the girls who operate sewing machines, see that the cloth progresses from one operation to another and that the operations are performed properly, report deficient work to the superintendent, instinct and train new employees, collect the employees' work sheets each day and turn them in to the pay-roll clerk, attend training programs, and are paid at a higher hourly rate than the 12 The Respondent offered no evidence to support his contention. Indeed, the admis- sibility of such evidence, had it been offered, is open to serious question. X82 DECISIONS OF NATIONAL LABOR RELATIONS BOARD sewing machine operators and receive bonuses based upon the quantity of work produced by the employees who work under their direction . Finally, the Re- gional Director found that these six employees did not have authority to hire, pro- mote, transfer , lay off or discharge employees , but that they reported "all matters of this nature" to the superintendent , that their status was supervisory and that they were "more closely associated with, and are a part of , management." To establish that these findings were arbitrary or capricious , the Respondent called as a witness , Leo Miller , the superintendent . Miller's testimony need not be detailed . The most that can be said for it is that Miller cast doubt upon the accuracy of the Regional Director 's findings in some instances and confirmed other findings, but that his testimony falls short of establishing even a prima facie case that the Regional Director was arbitrary or capricious . According to Miller, there is a "Bundle Girl" for each line of sewing machine operators , and her hourly rate of pay at the time of the election exceeded that of the operators by 50 percent . He testified also that he could not recall whether he had referred to the "Bundle Girls" as "supervisors ," but that other employees may have done so. In some instances Miller's testimony is weak indeed. Thus , lie testified that he demonstrates to each of the "Bundle Girls" how the sewing operations. on new products should be performed and that they learn to perform the opera- tions themselves . But, according to Miller, the practical experience of per- forming the operations is not acquired for the purpose of telling the individual operators who work under their direction how to perform the operations ; instead, it is for the purpose of being able to recognize whether an operation has been performed correctly and reporting to Miller when any employee has failed to meet the standard . Thereupon, Miller testified , he himself discusses the faulty oper- ation with the employee . In this respect , the work of the "Bundle Girls" would appear to overlap that of the inspectors , who examine each garment after it has passed from one end of a line to the other end . Moreover , according to Miller, the "Bundle Girls" do not supervise the operators , although they are paid a bonus which is based upon the quantity of work produced by the operators The bonus, Miller said in substance , is simply an incentive to do such minor tasks as to pick up the cloth when one operator has finished her operation and to hand it to the next operator in the line . Notwithstanding this incentive to the "Bundle Girls" to see that garments are produced in quantity, Miller testified that he does not rely upon them to inform him when an operator is loafing , but that he relies upon control sheets which he examines at the end of each day. The Respondent did not call as a witness any of the "Bundle Girls " or sewing machine operators to testify whether the functions of the former included supervision over the latter . He relies upon the testimony of Superintendent Miller, and in doing so he fails to sustain his burden of proof . Miller's testi- mony does not create a prima facie basis for concluding that the Regional Direc- tor was arbitrary or capricious . We are not concerned here with whether the judgment of the Trial Examiner , the Board , or an appropriate court would coin- cide with that of the Regional Director . We are concerned instead with whether the Regional Director acted without "any course of reasoning and exercise of judgment" and in disregard of patent facts' It will be recalled that the representatives of the Respondent and the Union advanced different views respecting the "Bundle Girls" at the time that the consent election agreement was executed . There is no indication , however, that the representatives were insincere or unreasonable in advancing such views. 13 6 C. J. S. Arbitrary, p. 145. SIDRAN SPORTSWEAR 283 Where, as here, a controversy existed respecting the "Bundle Girls," and reasona- ble men differed, it canot be said that the decision of the person to whom they entrusted their controversy was arbitrary. So long as reasonable men differ on an issue, the decision may not be stamped as arbitrary or capricious. The Regional Director's report, on its face, is a reasoned document which con- tains the facts found by him. Those facts reasonably support his conclusions. Under the circumstances here, and following the rule announced by the Board in the Capitol Greyhound case above quoted, the Regional Director's findings may not be disturbed. Therefore, I find that on December 30, 1946, the date of the Consent Deter- mination of Representatives, and at all times thereafter, the Union was the duly designated representative of a majority of the employees in the appropriate unit and, pursuant to Section 9 (a) of the Act, was the exclusive representativq of all the employees in such unit for the purposes of collective bargaining In respect to rates of pay, wages, hours of employment, and other conditions of employment. 3. The refusal to bargain It is admitted that the Respondent refused to bargain with the Union. His defense has been considered and found to be without merit. I find, therefore, that on January 4, 1947, the date of the Respondent's first refusal to meet with the Union after issuance of the Consent Determination of Representatives, and at all times thereafter, the Respondent refused to bargain collectively with the Union as the exclusive representative of his employees in an appropriate unit, and that the Respondent has thereby interfered with, restrained, and coercedi and is interfering with, restraining, and coercing his employees in the exercise of the rights guaranteed in Section 7 of the Act. C. Interference, restraint, and coercion As set forth above, on the day before the election, the Respondent addressed the employees and advocated that they vote against representation by the Union. While many of the Respondent's remarks, if considered alone, would not constitute violations of the Act because of Section 8 (c) thereof," it is nevertheless clear that portions of the speech are outside the immunizing language of that Section. Although the Respondent spoke of his willingness to "abide by" the "election returns," to bargain collectively with the Union if the employees designated it, and said that they need not fear discrimination at his hands because of union activities, there is within the address an unquestionable threat that the plant would be closed if the Union were designated. There art- three separate references to a possible closing of the plant and its lease to another employer. These references, coupled with the statement that "the incentive" to continue operations would "be gone" if "this were a Union shop" and that if the employees voted for the Union they would "injure" the business and themselves, constitute violations of the Act.1S Therefore, I find that by making said address the Respondent interfered with, restrained, and coerced, and is interfering with, restraining, and coercing his employees in the exercise of the rights guaranteed in Section 7 of the Act. Section 8 (c) reads as follows : The expressing of any views , argument, or opinion, or the dissemination thereo;, whether in written, printed, graphic, or visual form, shall not constitute or be evidence of an unfair labor practice under any of the provisions of this Act, if such expression contains no threat of reprisal or force or promise of benefit. 1o Matter of Morrison Turning Co., Inc., 77 N. L. R. B. 670. 284 DECISIONS OF NATIONAL LABOR RELATIONS BOARD IV. THE EFFECT OF THE UNFAIR LABOR PRACTICES UPON COMMERCE The activities of the Respondent set forth in Section III, above, occurring in connection with the operations of the Respondent described in Section I, above, have a close, intimate, and substantial relation to trade, traffic, and commerce among the several States, and tend to lead to labor disputes burdening and obstructing commerce and the free flow of commerce. V. THE REMEDY Having found that the Respondent has engaged in certain unfair labor practices, I shall recommend that he cease and desist therefrom and that he take certain affirmative action designed to effectuate the policies of the Act. It having been found that the Union represented a majority of the employees in the appropriate unit and that the Respondent refused to bargain collectively with it, it will be recommended that the Respondent, upon request, bargain collectively with the Union. Upon the basis of the above findings of fact and upon the entire record in the case, I make the following: CONCLUSIONS OF LAW 1. International Ladies Garment Workers Union, AFL, is a labor organiza- tion within the meaning of Section 2 (5) of the Act. 2. All production workers, including operators, finishers, pressers , markers, inspectors, bundlers, and special machine operators, of the Respondent em- ployed at his Brownwood, Texas, plant, exclusive of office workers, clericals, shipping clerks, porters, and supervisory employees with authority to hire or discharge or effectively to recommend such action, constitute a unit appropriate for the purposes of collective bargaining within the meaning of Section 9 (b) of the Act. 3. International Ladies Garment Workers Union, AFL, on December 30, 1946, was, and at all times thereafter has been, the exclusive representative of all the employees in such unit for the purposes of collective bargaining within the meaning of Section 9 (a) of the Act. 4. By refusing to bargain collectively with International Ladies Garment Workers Union, AFL, as the exclusive representative of his employees in the appropriate unit, the Respondent has engaged in and is engaging in unfair labor practices within the meaning of Section 8 (5) of the original Act and Section 8 (a) (5) of the Act as amended. 5. By interfering with, restraining, and coercing his employees in the exercise of the rights guaranteed in Section 7 of the Act, the Respondent has engaged in and is engaging in unfair labor practices within the meaning of Section 8 (1) of the original Act and Section 8 (a) (1) of the Act as amended. 6. The aforesaid unfair labor practices are unfair labor practices affecting commerce within the meaning of Section 2 (6) and (7) of the Act. RECOMMENDATIONS Upon the basis of the foregoing findings of fact and conclusions of law, I hereby recommend that the Respondent, Joseph Sidran, doing business under the trade name and style of Sidran Sportswear, his officers, agents, successors, and assigns , shall: SIDRAN SPORTSWEAR 285 1. Cease and desist from : (a) Refusing to bargain collectively with International Ladies Garment Workers Union, AFL, as the exclusive representative of all the production workers, including operators , finishers , pressers , markers, inspectors , bundlers, and special machine operators of the Respondent employed at his Brownwood, Texas, plant , exclusive of office workers , clericals , shipping clerks, porters, and supervisory employees with authority to hire or discharge or effectively to rec- ommend such action ; and (b) Engaging in like or related acts or conduct interfering with, restraining, or coercing his employees in the exercise of the rights to self-organization, to form labor organizations, or to join or assist International Ladies Garment Workers Union, AFL, or any other labor organization , to bargain collectively through representatives of their own choosing, and to engage in concerted activi- ties for the purpose of collective bargaining or other mutual aid or protection, as guaranteed in Section 7 of the Act. 2. Take the following affirmative action, which I find will effectuate the policies of the Act : (a) Upon request, bargain collectively with International Ladies Garment Workers Union, AFL, as the exclusive representative of all the production workers, including operators, finishers, pressers, markers, inspectors, bundlers, and special machine operators, of the Respondent employed at his Brownwood, Texas, plant, exclusive of office workers, clericals, shipping clerks, porters, and supervisory employees with authority to hire or discharge or effectively to recom- mend such action ; (b) Post at his plant in Brownwood, Texas, copies of the notice attached hereto, marked "Appendix A." Copies of the notice, to be furnished by the Regional Director for the Sixteenth Region, shall, after being duly signed by the Respondent's representative, be posted by the Respondent immediately upon receipt thereof, and maintained by him for a period of at least sixty (60) con- secutive days thereafter in conspicuous places, including all places where notices to employees are customarily posted. Reasonable steps shall be taken by the Respondent to insure that said notices are not altered, defaced, or covered by any other material; and (c) File with the Regional Director for the Sixteenth Region within ten (10) days from the receipt of this Intermediate Report and Recommended Order, a report in writing setting forth in detail the manner and form in which the Respondent has complied with the foregoing recommendations. It is further recommended that unless on or before ten (10) days from the receipt of this Intermediate Report and Recommended Order, the Respondent notifies said Regional Director in writing that he will comply with the foregoing recommendations, the National Labor Relations Board issue an order requiring the Respondent to take the action aforesaid. As provided in Section 203.46 of the Rules and Regulations of the National Labor Relations Board, Series 5, effective August 22, 1947, any party may, within twenty (20) days from the date of service of the order transferring the case to the Board, pursuant to Section 203.45 of said Rules and Regulations, file with the Board, Rochambeau Building, Washington 25, D. C., an original and six copies of a statement in writing setting forth such exceptions to the Intermediate Report or to any other part of the record or proceeding (including rulings upon all motions or objections) as he relies upon, together with the original and six copies of a brief in support thereof ; and any party may, within the same period, 286 DECISIONS OF NATIONAL LABOR RELATIONS BOARD file an original and six copies of a brief in support of the Intermediate Report. Immediately upon the filing of such statement of exceptions and/or briefs, the party filing the same shall serve a copy thereof upon each of the other parties. Proof of service on the other parties of all papers filed with the Board shall be promptly made as required by Section 203.85. As further provided in said Section 203.46, should any party desire permission to argue orally before the Board, request therefor must be made in writing to the Board within ten (10) days from the date of service of the order transferring the case to the Board. In the event no Statement of Exceptions is filed as provided by the aforesaid Rules and Regulations, the findings, conclusions, recommendations and recom- mended order herein contained shall, as provided in Section 203.48 of said Rules and Regulations, be adopted by the Board and become its findings, conclusions and order, and all objections and exceptions thereto shall be deemed waived for all purposes. A. BRUCE HUNT, Trial Examiner. Dated August 5, 1948. APPENDIX A NOTICE TO ALL EMPLOYEES Pursuant to the recommendations of a Trial Examiner of the National Labor Relations Board, and in order to effectuate the policies of the National Labor Relations Act, we hereby notify our employees that: WE WILL NOT interfere with, restrain, or coerce our employees in the exer- cise of their right to self-organization, to form labor organizations, to join or assist INTERNATIONAL LADIES GARMENT WORKERS UNION, AFL, or any other labor organization, to bargain collectively through representatives of their own choosing, and to engage in concerted activities for the purpose of col- lective bargaining or other mutual aid or protection. All our employees are free to become or remain members of the above-named union or any other labor organization. WE WILL BARGAIN collectively, upon request, with the above-named union as the exclusive representative of all the employees in the bargaining unit described below with respect to wages, rates of pay, hours of employment, or other conditions of employment, and, if an understanding is reached, embody such understanding in a signed agreement. The bargaining unit is: All production workers, including operators, finishers, pressers, markers, inspectors, bundlers, and special machine operators, employed at the Brown wood plant exclusive of office workers, clericals, shipping clerks, porters, and supervisory employees with authority to hire or discharge or effectively to recommend such action. Dated---------------------- JOSEPH SIDRAN, DOING BUSINESS UNDER THE TRADE NAME AND STYLE OF SIDRAN SPORTSWEAR, Employer. By----------------------------------- (Representative ) (Title) This notice must remain posted for 60 days from the date hereof, and must not be altered, defaced, or covered by any other material. Copy with citationCopy as parenthetical citation