Smith Victory Corp.Download PDFNational Labor Relations Board - Board DecisionsAug 22, 195090 N.L.R.B. 2089 (N.L.R.B. 1950) Copy Citation In the Matter Of SMITH VICTORY CORPORATION and FLORENCE MCMASTER, AN INDIVIDUAL Case No. 3-CA-212.-Decided August 22 ,1950 DECISION AND ORDER On May 15, 1950, Trial Examiner Eugene F. Frey 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 it 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 and a supporting brief and re- quested oral argument. The Respondent's request for oral argument is hereby denied as, in our opinion, the record and Respondent's brief adequately present the position of the parties. The Board 1 has reviewed the rulings made by the Trial Examiner at the hearing and finds that no prejudicial error was committed. The rulings are hereby affirmed. The Board-has considered the Inter- mediate Report, the exceptions and brief filed by the Respondent, and the entire record in the case, and hereby adopts the findings, conclu- sions, and recommendations of the Trial Examiner, with the addition and modification hereinafter set forth. The Trial Examiner found, and we agree, that the discharge of McMaster for acting as spokesman of the employees in their concerted effort to bargain with the Respondent concerning a wage increase was a violation of Section 8 (a) (1) and (3) of the Act.' Although the Trial Examiner found that the discharge was violative of the Act "even though the concerted activity did not result from any interest or activity in a labor organization," we find that the group of em- ployees, by acting in concert to seek a wage increase, did constitute 1 Pursuant to the provisions of Section 3 (b) of the National Labor Relations Act, the Board has delegated its powers in connection with this proceeding to a three-member panel ( Chairman Herzog and Members Houston and Murdock]. 2 Whether the discharge be regarded as a violation of Section 8 (a) (1) or of Section 8 (a) (3), we find that it is necessary to order reinstatement with back pay, as recom- niended by the Trial Examiner , in order to effectuate the policies of the Act. 90 NLRB No. 283. 2089 2090 DECISIONS OF NATIONAL LABOR RELATIONS BOARD themselves a labor organization.3 The Trial Examiner's finding is therefore modified in this respect. The Remedy Since the issuance of the Trial Examiner's Intermediate Report, the Board has adopted a method of computing back pay different from that prescribed by the Trial Examiner.' Consistent with that new policy we shall order that the loss of pay be computed on the basis of each separate calendar quarter or portion thereof during the period from the Respondent's discriminatory action to the date of a proper offer of reinstatement. The quarterly periods, hereinafter called "quarters," shall begin with the first day of January, April, July, and October. Loss of pay shall be determined by deducting, from a sum equal to that which this employee would normally have earned for each quarter or portion thereof, her net earnings,5 if any, in other employment during that period. Earnings in one particular quarter shall have no effect upon the back-pay liability for any other quarter. We shall also order the Respondent to make available to the Board upon request payroll and other records to facilitate the checking of the amount of back pay due.e 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, Smith Victory Corporation, Buffalo, New York, and its officers, agents, successors, and assigns, shall: 1. Cease and desist from : (a) Discouraging membership in any labor organization of its em- ployees by discharging or refusing to reinstate any of its employees, or in any other manner discriminating in regard to their hire and tenure of employment, or any term or condition of their employment; (b) In any other manner interfering with, restraining, or coercing its employees in the exercise of their right to self-organization, to form, join, or assist any labor organization, to bargain collectively 3N. L. R . B. v. Kennanietal, Inc., 182 F. 2d 817 (C. A. 3) ; Gullet Gin Company, Inc., 83 NLRB 1; Pacific Powder Company, 84 NLRB 280. F. W. Woolworth Company, 90 NLRB 289. By net earnings " is meant earnings less expenses , such as for transportation, room, and board, incurred by an employee in connection with obtaining work and working- elsewhere; which would not have been incurred but for this'unlawful. discrimination, and the conse- quent necessity of his seeking employment elsewhere . Crossett Lumber Company, 8 NLRB 440. Monies received for work performed upon Federal , State, County, municipal, or other work-relief projects shall be considered earnings. Republic Steel Corporation V. N. L. R. B., 311 U. S. 7. 6 F. W. Woolworth Company, supra. SMITH VICTORY CORPORATION 2091 through representatives of their own choosing; and to engage in con- •certed activities for the purpose of collective bargaining or other mutual aid or protection, or to refrain from any of all 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 employ- ment, as authorized in Section 8 (a) (3) of the Act. 2. Take the following affirmative action which the Board finds will effectuate the policies of the Act : (a) Offer to Florence McMaster immediate and full reinstatement to her former or substantially equivalent position, without prejudice to her seniority and other rights and privileges; (b) Make whole Florence McMaster in the manner set forth in the section entitled "The Remedy" for any loss of pay she may have suffered by reason of the Respondent's discrimination against her; (c) 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 records necessary to analyze the amounts of back pay due and the right of reinstatement under the terms of this Order; (d) Post immediately at its plant in Buffalo, New York, copies of the notice attached hereto, marked Appendix A.' Copies of such notice, to be furnished by the Regional Director for the Third Region, :shall, after being duly signed by the Respondent's representative, be posted by the Respondent immediately upon receipt thereof and maintained by it for a period of sixty (60) consecutive days there- ;after 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; (e) Notify the Regional Director for the Third Region in writing, within ten (10) days from the date of this Order, what steps the Re- =spondent 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, we hereby notify our employees that : WE WILL NOT discourage membership in any labor organization of our employees by discharging or refusing to reinstate any of . R In the event this order is enforced by. decree of a United States Court of Appeals, there shall be inserted before the words, "A Decision and Order" the words , "A Decree ,of the United States Court of Appeals Enforcing." 2092 DECISIONS OF NATIONAL LABOR" RELATIONS BOARD our employees or in any other manner discriminating in regard to their hire or tenure of employment, or any term or condition of their employment. WE WILL NOT in any other manner interfere with, restrain, or coerce our employees in the exercise of their right to self-organ- ization, to form, join, or assist any labor organization, to bargain collectively through representatives of their own choosing, and to engage in concerted activities for the purpose of collective bar-. gaining or other mutual aid or protection, or to refrain from any or all such activities. WE WILL OFFER to Florence McMaster immediate and full rein- statement to her former or substantially equivalent position with- out prejudice to any seniority or other rights and privileges prev- iously enjoyed, and make her whole for any loss of pay suffered as a result of our discrimination against her. All our employees are free to form, join, or assist any labor organ- ization and to become or remain members of any labor organization, and to engage in any self-organization and other concerted activities for the purpose of collective bargaining or other mutual aid or pro- tection. SMITH VICTORY CORPORATION, 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 Messrs. John S. Patton and Wm. Naimark , for the General Counsel. Saperston , McNaughtan and Saperston, by Mr. Howard Saperston , of Buffalo, N. Y., for the Respondent. STATEMENT OF THE CASE Upon a first amended charge filed March 13, 1950, by Florence McMaster, an individual, the General Counsel for the National Labor Relations Board, called herein respectively the General Counsel and the Board, by the Regional Di- rector for the Third Region ( Buffalo, New York ), issued a complaint dated March 22, 1950, against Smith Victory Corporation , herein called the Respondent. The complaint alleged that the Respondent had engaged in and was engaging in certain unfair labor practices affecting commerce within the meaning of Section 8 (a) (1) and ( 3) and Section 2 (6) and (7) of the National Labor Relations Act, as amended , 61 Stat. 136 , herein called the Act. Copies of the complaint and the first amended charge, together with notice of hearing were duly served upon the Respondent and the charging party. With respect to the unfair labor practices the complaint alleges in substance that : Respondent , on or about August 31 , 1949; - discharged Florence McMaster SMITH VICTORY CORPORATION 2093 and thereafter refused to reinstate her because she and other employees engaged in concerted activities for the purpose of collective bargaining and other mutual aid and protection, and that Respondent, by its officers, agents, and supervisory employees, from about August 31, 1949, interrogated its employees concerning their concerted activities and urged, persuaded, threatened, and warned its employees to refrain from assisting, remaining, or becoming members of a union, or engaging in other concerted activity. Respondent filed an answer which denied that it has engaged in- any unfair labor practices as alleged in the complaint, but admitted the discharge of Florence McMasters, stating affirmatively that her discharge was for cause. Pursuant to notice a hearing was held on April 3, 6, and 7, 1950, at Buffalo, New York, before the undersigned Trial Examiner, duly designated by the Chief Trial Examiner. The General Counsel and the Respondent were represented by counsel. All parties participated in the hearing, were afforded full oppor- tunity to be heard, to examine and cross-examine witnesses, and to introduce evidence bearing upon the issues. At the close of the Board's case, Respondent moved to dismiss the complaint upon the grounds that General Counsel had failed to prove concerted activity by the employees or that Florence McMaster had been acting on behalf of the employees, that no direct connection between her discharge and any concerted activity of the employees had been proven, and that the Board had failed to prove its case by a preponderance of the evidence. The motion was denied. During the course of Respondent's proof, General Counsel moved to strike from the record reports introduced by Respondent showing daily production and scrap coming from the bobbypin machines for the period September 1 to 15, 1949, immediately following the discharge of Florence McMaster, on the ground that such records were not material or competent proof on the question of the reason for her discharge by Respondent on August 31, 1949. The Trial Examiner reserved decision on the motion at the time. The motion is hereby denied for reasons which will be stated later in this Report. At the close of the hearing General Counsel made a motion to conform the pleadings to the proof as to names , dates, and other minor variances ; a similar motion was made by Respondent with respect to its answer ; both motions were granted without objection. General Counsel and counsel for Respondent argued orally before the Trial Examiner at the close of the hearing. Both parties were afforded an opportunity to file briefs and proposed findings of fact and conclusions of law, or both. Both General Counsel and Respondent have filed briefs, which have been given careful consideration in the preparation of this Report. Respondent also filed with the Trial Examiner proposed findings of fact and conclusions of law ; the Trial Examiner has adopted proposed findings numbered 1, 2, 3, and 4, and has rejected those numbered 5, 6, and 7, as well as all the proposed conclusions of law, for the reasons set forth in this Report. Upon the entire record in the case and from his observation of witnesses the Trial Examiner makes the following: FINDINGS OF FACT 1. THE BUSINESS OF THE RESPONDENT At all times mentioned. in the pleadings and the record, Respondent was a corporation organized and existing' under, the laws of the State of Delaware, having its principal office and place "of business in the city of Buffalo, New .York, where it is engaged in the manufacture of bobbypins, hairpins, perfumes, 2094 DECISIONS OF NATIONAL LABOR RELATIONS BOARD and related products . In the course of its business operations during the year ending December 31 , 1948, Respondent purchased raw materials and supplies valued in excess of $100 ,000, of which approximately 25 percent was shipped t© its Buffalo , New York, plant from points outside the State of New York. During the same period Respondent sold finished goods valued in excess of $150,000, of which approximately 80 percent was sold and shipped from the Buffalo, New York, plant to points and customers located outside the State of New York. At the hearing Respondent stipulated and admitted that it was and is engaged in interstate commerce within the 'meaning of the Act. On the basis of the above facts I find that Respondent is engaged in commerce. within the meaning of the Act. II. THE UNFAIR LABOR PRACTICES A. Preliminary facts The events related in this Report occurred in the manufacturing plant of Re= spondent located at 2969 Main Street, Buffalo , New York, and involved a group of approximately 30 employees employed in the bobbypin manufacturing. department on the first floor of the plant not far from the executive offices occupied by the officers of Respondent. The principal individuals involved in the events discussed below are Florence McMaster , Florence Wojdan, and Irene Rew, punch press operators in the bobby- pin department ; . William White, foreman of the bobbypin department ; Paul Kreker, former executive vice president in charge of operations of Respondent;. and Alfred H. Sachs, formerly treasurer and now president of Respondent. There is no proof in the record of any activity by an organized labor organi- zation in the plant of Respondent either prior to or on August 31, 1949. However, for about a week or more prior to that date, the punch press operators in the bobbypin department had been discussing among themselves the possibility of securing a wage increase for employees in that department . These discussions culminated in the . following events, all of which took place on August 31, 1949 The decision of the press operators to ask Respondent for a wage increase, and their appointment of Florence McMaster as their spokesman to arrange a conference with the management ; McMaster 's request to Paul Kreker for a con- ference between Kreker and the press operators ; Kreker's immediate discharge of McMaster ; and his speech to the bobbypin operators immediately thereafter. The discharge of McMaster and Kreker 's speech will be discussed in that order- B. The discharge of Florence McMaster Florence McMaster worked for Respondent as a punch press operator in the bobbypin department from June 1947, to August 31, 1949, the date of her dis- charge, except for a period from September 17, 1948, to March 29, 1949 , during. which she was laid off with other press operators for slack business in the. department . On the company . records, McMaster was known as operator num- ber 101, operating machine number 12 'in the bobbypin department . That de- partment is located on the first floor of Respondent 's plant ; there are 2 rows of punch presses in the department , 12 to 15 machines in each row ; the machines in each row are about 4 feet away 'from each other ; McMaster's machine was located about the middle of one row ;' Florence Wojdan and Irene Rew operated machines in the same row on either side of McMaster. Irene Rew is the sister- -in-law -of Florence - McMaster . - All the employees in this department are women. SMITH VICTORY CORPORATION 2095 William White is the foreman of the bobbypin department , exercising direct supervision over all employees and operations therein. For a week or two before August 31 , 1949, the employees in the bobbypin de- partment had been discussing among themselves the possibility of securing a wage increase for all operators in the department . It was the general feeling that the operators were entitled to an increase of 10 cents an hour. This subject was discussed continually by the employees before working hours, during their rest periods, and at lunch, and also at their machines during working hours. By the morning of August 31 , the employees had determined to ask the management for a wage increase . During that morning, while working at their machines, they discussed the appointment of one of their number to ask Mr. Kreker to arrange a conference with them to discuss the wage increase . After discussion back and forth from machine to machine, they decided to appoint Florence McMaster as their spokesman to ask for the conference . Florence Wojdan and Irene Rew both communicated this decision to McMaster , and asked her to speak to White, the foreman , and request him to arrange a group meeting with Mr. Kreker. Mc- Master thereupon spoke to White in the department about 11: 30 in the morning, stating that she was speaking for the operators , that they wanted to discuss a wage increase with Kreker , and asked him to arrange with Kreker for a meeting with the girls at 12: 30 p m. White at once advised Kreker of McMaster's re- quest to him , stating . McMaster wanted to arrange a . conference for all the girls to discuss a wage increase . Kreker told White to send McMaster in, stating that he was going to discharge her, "as we didn ' t want any dissatisfied employees. White went back to the department , shut off McMaster 's machine, and told her that Kreker wanted to see her in his office . He took her to Kreker's office about 11: 45 a. m., introduced her to Kreker , and said that she had come in to speak for the girls in her department . White then left the office .1 It is clear from the above facts, and I find, that prior to and on August 31, 1949, the operators in the bobbypin department , including Florence McMaster, were engaging in concerted activity involving discussion of a wage increase and result- ing in their choice of McMaster on the 31st as their spokesman to seek a conference for them with management on that subject . Such discussion and the initiation of steps to present the grievance to their Employer was a form of concerted activity protected by Section 7 of the Act 2 The fact relied on by Respondent that all of the employees in the department did not directly authorize McMaster to represent them in asking for the conference does not make their discussion and choice of a representative any less a protected concerted activity' As McMaster entered the room and before she could say anything , Kreker, told her that he had heard she was dissatisfied with her work and working con- ditions; ; that the Company was a good place to work and that they tried to make it comfortable for all the employees and they did not want anyone dissatisfied ; that apparently she was dissatisfied and "the best thing to do was just to call it quits and we would give her her release." He also said to her "if I worked for an organization and I was dissatisfied I would quit ." Kreker testified that appar- ently McMaster did not see "eye to eye" with him on that point , and that was why he gave her her release . Kreker also told McMaster she was a troublemaker and 1 These findings are based on the mutually corroborative testimony of McMaster, Rew,. Wojdan, and White . To the extent that Kreker ' s testimony conflicts with these findings, it is not credited. Z Phoenix Mutual Life Insurance Company, 73 NLRB 1463 , enforced 167 F. 2d 983,. certiorari denied by U. S. Supreme Court, 335 U. S. 845. 3 Phoenix Mutual Life Insurance Company, supra ; The Globe Company, 54 NLRB 1. 2096 DECISIONS OF NATIONAL LABOR RELATIONS BOARD that he understood she was speaking for the other girls, and if he heard any other girls speaking in the same way, he would let them go also. McMaster im- mediately asked what trouble she had made or how she was dissatisfied with her work, but Kreker refused to discuss the matter with her, gave her a final pay check, and told her to leave the building. The whole conversation lasted about 5 minutes. McMaster left the office to go back to her department, and on the way she met Mr. White in the hall and told him she had just been discharged by Kreker. White said "That is too bad, but I don't know what I can do about it." McMaster asked White if she could eat lunch in the cafeteria with the other girls in her department. He gave her permission to do so and she went upstairs to the lunchroom on the third floor. She had just begun to eat her meal with the other girls when Wiesner, the plant machinist, called her out of the lunchroom, stating she had no right to eat with the other employees, and that she must leave the plant at once. She left the plant immediately. Wiesner ordered McMaster from the plant upon direct instructions from Kreker, who testified that it was his policy not to permit discharged employees to remain in the plant or to talk with any other employees there after discharge.' At the hearing Respondent claimed that McMaster was lawfully discharged for inefficiency in her work, because she produced bobbypins of poor quality, her daily quantity of production was below average, and she had too much waste. A description of the operation of a bobbypin machine will be helpful in ananlysis of this contention. The bobbypin machine is an electrically. operated automatic punch press which under normal conditions operates at a constant speed when the power is turned on. The machines average 220 to 240 strokes a minute in normal operation. In the manufacture of a bobbypin, the machine in one operation draws a fixed length of wire from a spool of wire attached to the machine, cuts off the wire at a certain length and, by means of a die, folds it down over a flat metal rod about 24 inches long, the die simultaneously pressing into one-half of the wire a series of smooth waves or corrugations which are characteristic of a bobbypin . By this process , one complete pin is made and racked on the metal rod with each stroke or cycle of the press. During the operation of the punch press, the operator feeds the flat metal rod into the rear of the machine so that the manufactured pins can be racked on it during manufacture. When the rod has been filled with completed pins, it emerges from the opposite side of the press, and the operator walks to that side, removes the rod, and inspects the pins thereon for imperfections. If the pins appear to be properly formed, the rod with pins is placed on a tray. The operator then repeats the whole operation. When the trays are filled with rods or pins, they are taken to other departments for japanning, lacquering, and other treat- ment prior to packaging for shipment. If the pins racked on a rod have "burrs," i. e., the waves are rough or sharp, it is the duty of the operator to discard the pins into a waste pail near the machine, stop the press immediately, and call for a maintenance man who removes the 4 The above findings are based upon the testimony of McMaster , Wojdan , Rew, White, and Kreker . To the extent that Kreker ' s testimony conflicts with the above findings as to certain particulars of the conversation between him and McMaster, I do not credit his statements . McMaster impressed the Examiner as a straight -forward, honest witness. Kreker admitted , on cross-examination , most of the conversation outlined above ; his later speech to the employees of the bobbypin _ department , which will be discussed below, also lend credence to his remarks to McMaster as found above. SMITH VICTORY CORPORATION 2097 worn dies which cause the imperfections and installs sharp dies. If the operator is not diligent in inspecting the pins as they emerge from the machine and in stopping it as soon as imperfect pins appear, the machine will continue to run and turn out imperfect pins, all of which have to be rejected as waste. If this occurs, the operator's output of useable trays of pins is reduced and the amount of waste pins is increased. It is therefore incumbent upon the operator to inspect the manufactured pins promptly and to stop the machine as soon as bad pins appear, in order to keep the waste to a minimum. Even though an operator is vigilant to prevent the manufacture of bad pins, her daily output may he reduced by frequent stoppages of her press for installation of full spools of wire, change of dies, and for breakdowns of the machine due to other causes. In such instances, the operator normally continues her operations on a spare machine, if one is available, and returns to her own press after it is ready for operation.5 In support of its claim of McMaster's inefficiency, Respondent introduced in evidence a daily record of production and waste compiled for each machine in the bobbypin department. during the period August 15 through 31, 1949. In the early part of 1949 Respondent had been operating at a loss, and its officers determined to take steps to ascertain the causes of the losses and eliminate them if possible. For this purpose Treasurer Sachs conceived the daily pro- duction record as a means of checking on the production and efficiency of each press operator. He gave orders to Kreker to maintain these reports, study them daily, review them periodically, and to eliminate the operators who had con- sistently poor performance records. The reports were made up daily for Kreker by Foreman White after a count of production and weighing of scrap at each machine. The production record indicates that during the last 2 weeks in August, McMaster varied in her daily production from 42 trays to as low as 33 trays, and her daily waste varied from 4 to 6 pounds. In contrast, other operators gen- erally maintained a rather consistent daily output of between 37 and 42 trays and suffered a wastage between 2 and 4 pounds. For the period in question, McMaster's production averaged 35.4 trays per day ; Irene Rew averaged 38.9 trays, Florence Wojdan averaged 38.5, and the other employees averaged from 37.2 to 41.7 trays. McMaster's waste averaged 5.1 pounds per day, as against 3.4 pounds for Wojdan and 3.2 pounds: for Rew ; the other operators averaged from 2.5 to 3.5 per day. These figures take into consideration an admitted variance in production of 1. to 2 trays per day for. each press, which is con- sidered normal for a machine. Respondent argues from the above record that since a punch press operates automatically and at constant speed, and the operator's duties are confined to two simple operations of feeding in and removal of rods plus a final inspection of pins, the occurrence of low production and high waste at McMaster's machine is conclusive proof that she was not properly attentive to her machine and demonstrates that she was much less efficient than other operators in her department. The force of this contention is weakened, however, by other admitted facts. 1. The daily record in question covered only the last 2 weeks of McMaster's employment. There is no record or other credible evidence of similar ineffi- ciency on her part during the 2 years of her employment. 6 These findings as to the technical operations are based on testimony of McMaster, Rew, Wojdan; Kreker, and White. 903847-51-vol. 90-133 2098_ DECISIONS OF NATIONAL LABOR RELATIONS BOARD 2. The production record indicates that, in McMaster 's case at least, high wastage did not always go with low production . On August 19 and 26 she pro- duced 40 trays and had 6 pounds of waste each. day ; on August 22 she made 39 trays with 5 pounds of waste; on August 24 she again produced 39 trays with only-4 pounds of waste ( which 10 other operators also experienced one or more times in the. period ) ; and on August 31, the day of her discharge , in 4 hours of work, she produced 21 trays ( at a top rate of 42 trays per day) and had 3 pounds of waste ( a rate of 6 pounds per day ). Respondent offers no explanation for these figures. They show, however , that on at least 5 out of 13 working days covered by the records , McMaster produced as much or more than other operators , despite the,higher wastage at her machine . McMaster testified that her output was from 40 to 42 trays per day "when my machine was running good," which is corroborated by her daily production figures for August 19 , 26, and 31. 3. The testimony of McMaster , Rew, and Wojdan indicates that a drop in pro- duction and increase in waste can occur from other causes without fault of the operator . Thus, excessive die trouble in a press not only causes more waste but keeps the machine idle during the change of dies for about half an hour each time ; if the maintenance man is not immediately available , the press will remain idle a longer time until . he comes to make the change. In addition, the carrying rod may jam in going through a press, which will not only produce bad pins but will require a shut-down of the machine to clear the stoppage. If the pin wire is defective , it will cause production of bad pins and waste, and the machine must be stopped to clear out the bad pins and change the spool of wire. Finally , the machines in this department varied in age from 1 to 7 years and were subject to frequent breakdowns , which very often required a complete dismantling and rebuilding of machines , during which they were out of opera- tion. This testimony stands uncontradicted , and is corroborated by Kreker's admission that the operator was not the sole cause of variances in production and amount of waste ; his opinion that it is due in 90 percent of the cases to the operator is not credited. 4. McMaster 's machine suffered excessive die trouble , often requiring several die changes with attendant shutdowns in 1 day . In the last week 's of her employment , the wheel carrying the spool of wire in her press often stuck, requiring a shutdown of the press for adjustment and repair each time. This would also cause more waste ; since the wire is drawn into the press under tension, a sticking wheel would increase the tension , resulting in a slowing up of the wire and cutoff of a piece shorter than normal before the die impressed it; in consequence , no pins of varying lengths would appear on the rod and would have to be discarded as waste. McMaster ' s machine also suffered shutdowns, in common with other presses in the department , for the various other causes discussed above. 5. When her press was idle for any of the above reasons, McMaster was often unable to find a spare machine available for continuance of her production. Very frequently the extra presses were either not in condition to operate due to lack of dies or need of adjustment or repair , or those that could be operated were already in use by other , employees whose own machines were idle for one of the above reasons . In such cases , McMaster could do nothing to continue production until her own machine was ready to operate ." 9 These findings are based on the mutually corroborative testimony of McMaster, Rew, and Wojdan . Conflicting testimony of Kreker and White is not credited . Breker only testified substantially to the general practice of having spare machines available for the employees to operate ; White's testimony on this subject was vague and not convincing. SMITH VICTORY CORPORATION 2099 On the basis of the above facts I therefore find, contrary to Respondent's con- tention, that McMaster's low production and high scrap was not substantially the result of her own operation of her press but was due in large part to operating conditions beyond her control.' However, while the production records may have given Respondent just cause to discharge McMaster, the question to be decided is whether her inefficiency was the motivating reason for the discharge. There are certain other factors which indicate persuasively that it was not: 1. As stated above, the production record of McMaster shows a fluctuating but not a consistently low production ; she went as low as 33, 34, and 35 trays on several days, but she also reached an output of 40 trays on 2 days and the top rate of 42 trays the day of her discharge. This record covered only the last 2 weeks of her employment, and there is no proof of similar inefficiency during her pre- vious 2 years of employment. As against this, the record in this case indicates that McMaster was not considered inefficient by Respondent before August 15, when the daily production record was started. The uncontradicted testimony of McMaster, Rew, and Wojdan establishes that McMaster had an excellent at- tendance record, that while at work she did not neglect her machine, and that Respondent used her to train most of the new workers brought into the depart- ment. She had never been criticized or cautioned about her work. Furthermore, when all but 7 of the employees in the department were laid off for business reasons from September 1948 to March 1949, McMaster was 1 of the first 2 of that group recalled to work on March 29, 1949. If she had been as inefficient as Respondent contends, it is hardly likely that she would have been recalled so quickly or would have been permitted to train new employees. 2. Although McMaster was apparently a valued employee, when Kreker learned of her substandard production after August 15, he made no attempt to discover why her record was below average, and took no steps to help her correct the sit- uation. One of his main duties was to analyze operations in the bobbypin de- partment and to make changes which would increase production and reduce waste. During August he made daily observation trips through the department, once in the morning, once in the afternoon, to inspect the output at each press. On several occasions he found excessive burrs on plus coming from McMaster's press due to a worn or rough die; on each occasion he told her about it and stopped her machine so that a new die could be installed in it. This was not unusual ; he found the same condition at other presses. However, even though he knew several days before August 31 that McMaster's production was below par, he admits that he did not warn her about it or discuss ways of eliminating her excessive output of scrap. Kreker had told all the operators in group meet- ings during June, July, and August that production must be improved and scrap reduced, and that those operators who had continually high waste would have to be replaced. However, this general warning to all employees did not acquaint the poorer operators with their particular records or bring home to them the likelihood of their discharge. When asked by the Trial Examiner why he did not discuss their poor records with McMaster and other low producers individ- ually, Kreker's only explanation was that he was still studying the daily reports before making a final decision on the persons to be eliminated. This answer indicates that he intended, after studying their daily records, to talk to the less 7I attach little significance to the production record of McMaster ' s press for the two weeks following her discharge , as there is no proof that the new operator was working under the same difficulties experienced by McMaster. 2100 DECISIONS OF NATIONAL LABOR RELATIONS BOARD efficient producers about their work before dismissing them , which would have been a reasonable procedure . It is significant that he did not follow this pro- cedure in the case of McMaster! Kreker claimed the decision to release McMaster was made about 2 days before August 31, after talking only with Strauss, then president of Respondent, not with her ; but no date for the discharge was set. He put the decision into effect on the 31st, as soon as he heard that the bobbypin operators were going to ask for a wage increase and that McMaster was acting as their spokesman to arrange a conference for that purpose! Although no longer in Respondent's employ, Strauss was not called to testify by Respondent . After considering all the testimony on this point, I am compelled to discredit Kreker's testimony of the fortuitous "decision" to discharge McMaster 2 days before the event. I am impelled rather to the conclusion that this "decision" was fabricated by Re- spondent to supply an important link in the normal sequence of events which ordinarily portray a legal discharge for cause. 4. It is also significant that McMaster's alleged inefficiency was not mentioned to her by Kreker on the 31st as the reason for discharge. He gave only her alleged "dissatisfaction" with her work and working conditions as the reason. Inefficiency was advanced by Respondent as the reason for the first time at the hearing." For the reasons discussed above, I conclude and find that McMaster's ineffi- ciency was not the actual reason for her discharge. This leads to a consideration of her alleged "dissatisfaction." McMaster, Rew, and Wojdan testified without contradiction that McMaster was not unhappy or dissatisfied with her work at the plant, that she felt friendly toward the management , had no grievances against Respondent , and got along well with the other employees. Kreker admitted that his only knowledge of her "dissatisfaction" was based on statements from other individuals, but he did not name his informants and no employee was produced by Respondent to testify to any complaints or dissatisfaction by McMaster. Kreker also admitted that McMaster never expressed to him personally any dissatisfaction with her work or working conditions. I therefore conclude and find that McMaster was not a troublemaker, as charged by Kreker, and was not personally dissatisfied with her work. This conclusion is also supported by the fact that Kreker refused at the time of her discharge even to discuss McMaster's alleged "dissatisfaction," when she asked him what trouble she had made or how she was dissatisfied. The only "dissatisfaction" she had expressed and he knew about, was her state- ment a short while before to Foreman White, reported by him to Kreker, that the bobbypin operators wanted to talk to Kreker about a wage increase , and her s Since Respondent lacked an accurate record check on McMaster' s operations before August 15 but had otherwise considered her a satisfactory employee for 2 years, Kreker's failure to make any effort whatever to study the reasons for her bad performance and assist her to improve it, after reviewing her record of August 15-31, is patently contrary to Respondent's professed interest in and solicitude for its employees. 9In its brief Respondent claims "it just so happened that he discharged her after Mr. White had come in with her message," but admits " the timing was bad." 11 1 discount Rreker's statement on cross -examination that be told her at the time of discharge that Respondent was also not satisfied with her work . He did not assign this as a reason on his direct examination , nor did he mention it in his statement to the field examiner for the National Labor Relations Board; if she had in fact been discharged for that reason , it can be assumed that he would have included that reason with supporting facts in his statement to the Board investigators ; the fact that he did not warrants an inference that that reason was not the motive for the discharge. SMITH VICTORY CORPORATION 2101 request on their behalf that White arrange with Kreker for a conference with them on that subject. From these facts I further conclude and find that the concerted desire of the bobbypin operators, including McMaster, for a wage increase and for a conference with management thereon was the "dissatisfaction" Kreker had in mind but refused to discuss when he discharged McMaster abruptly and without any warning. This conclusion is further supported by the fact that, in his speech to the operators less than an hour later, Kreker mentioned their discussion at the machines, and at once offered reasons why the Company could not pay them more money, asked any dissatisfied employees to speak up, and threatened to discharge any dissatisfied employee. On the basis of all of the above facts and considerations, I therefore con- clude and find that Kreker discharged McMaster because she acted in concert with and as spokesman for the employees in her department in seeking to arrange a confererence with management to discuss a wage increase. McMaster's con- duct clearly constituted employee concerted activity for the purpose of col- lective bargaining and other mutual aid or protection within the meaning of Section 7 of the Act, and, by discharging her for engaging in such activity, Respondent interfered with, restrained, and coerced its employees in the exercise of the rights guaranteed to them by Section 7 of the Act, in violation of Sec- tion 8 (a) (1) of the Act. In addition, her discharge for acting as spokesman of the employees in their concerted effort to bargain with Respondent on wages was an unlawful discrimination by Respondent in regard to her hire and tenure of employment, having the inevitable result of discouraging the employees from self-organization or becoming members of a labor organization, which is the customary instrument utilized by employees in the exercise of their rights to engage in concerted activity for purposes of collective bargaining and other mutual aid and protection, and thus constituted a violation of Section 8 (a) (3) of the Act, even though the concerted activity did not result from any interest or activity in a labor organization." C. Kreker's speech to the employees Almost immediately after McMaster was discharged by Kreker and ejected from the plant cafeteria on his orders, Kreker met and spoke to the bobby- pin operators as they came downstairs from the lunchroom. The meeting took place around 12: 30 p. m., and about 30 press operators were present. At the outset Kreker said, "Girls, let's get together and pull our hair down and get this thing thrashed out here. What have we got to talk about?" He then referred to the improved production and scrap situation in their depart- ment, urging them to improve it further by eliminating more of the waste and increasing production. He said the Company was losing money but the man- agement was working hard to keep its employees at work and was doing every- thing it could to make working conditions better. He reminded them that they were receiving free coffee at noon, and announced that in a day or so the Company was going to give them a 10-minute rest period in the afternoon during which they would receive free coffee and cookies and could smoke in their lunchroom on the third floor. With regard to the purpose of the meeting, Kreker told the operators he under- stood they had held a discussion at their machines that morning, and suggested 11 See, e. g., General Shale Products Corporation, 26 NLRB 921 . ; Worthington Creamery and Produce Company, 52 NLRB 121; Texas Textile Mills, 58 NLRB 352; Morristown Knitting Mills, 80 NLRB 731; Weis field's, Inc., 88 NLRB 541. 2102 DECISIONS OF NATIONAL LABOR RELATIONS BOARD that if any employees had any comments or were dissatisfied, they should speak up and "get things off their chest." No one said anything except Mrs. Rew, sister-in-law of McMaster, who stated the girls would be much happier if he would call McMaster back to work. Kreker replied that he would not do so because some employees had told him McMaster was a troublemaker, and he could not have one girl disrupting the whole department. He also told them that McMaster had been given her release because she was dissatisfied, and the Company did not want any dissatisfied employees ; and that if anyone was not satisfied with her pay or, working conditions, she could step up to the office, get her pay and "call it a day." With regard to employee meetings, he told the operators that "if anything of major importance came up that we could discuss it at a group meeting but we were too busy to have a group meeting just for trival things" and that if any girl had a complaint or grievance "of that nature" on her mind she could come into his office to see him, his door was always open. On the subject of a wage increase, Kreker told the operators that the Com- pany had been losing money and could not then afford to raise their wages, but if it did more business and made more money, it would give them a raise "automatically," without them asking for it. I have found above that Kreker, before he made this speech to the press operators, knew that they were dissatisfied with their wages and wished to talk to him about a raise. , Kreker had just discharged McMaster for her at- tempt to arrange a bargaining conference for the operators on that subject, which conduct he had characterized as "dissatisfaction." When he told the operators that this was the reason for McMaster's discharge, and then said the Company would discharge any other employees who were dissatisfied, he plainly threatened the operators with discharge if they indicated "dissatisfac- tion" with their wages and spoke up for the group, as McMaster had done." When this statement was made in a group meeting of employees called for the purpose of discussing wages, right after the discriminatory discharge of their spokesman who arranged the meeting, it was clearly calculated and designed to discourage any concerted activity of the employees toward securing a wage increase. By such conduct Respondent coerced and restrained its employees in the exercise of the right of self-organization and to engage in other concerted activity for purposes of collective bargaining and other mutual aid or protec- tion, in violation of Section 8 (a) (1) of the Act." Kreker's suggestions in the same speech that the operators should not hold group meetings to discuss "trivial things" (such as a wage increase) but that the employees should come to him individually to discuss such matters, and that the Company would voluntarily give them a raise in pay "automatically" when it could afford it, without them asking for it, were direct admonitions to the operators not to engage in collective bargaining or concerted activity, and were clearly intended to discourage further concerted activity or collective bargaining, to encourage individual bargaining, and to emphasize to the em- ployees that it would be better for them to rely upon the unilateral bounty and generosity of Respondent to secure wage increases and other benefits. Coming on the heels of the discriminatory, discharge of their spokesman and coupled with threats of discharge of any others who acted similarly on behalf 12 Rew testified that , she considered Kreker's statement a threat. See Coca-Cola Bottling Worka, 46 NLRB 180. SMITH VICTORY CORPORATION 2103 of the employees or expressed dissatisfaction with their wages, these remarks were clearly coercive and violated Section 8 (a) (1) of the Act.14 Kreker's offer in the course of the speech to give the operators an additional rest period with free refreshments in the afternoon amounted to a promise of extended benefits to the employees if they desisted from further concerted activity, when considered with his advice against holding group meetings and suggestion of individual bargaining. Such. conduct is likewise an interference with and coercion of the employees in the exercise of rights guaranteed to them by Section 7• of the Act.16 I therefore find that Respondent, by Kreker's threats, suggestions, and offer to the employees Outlined above, has interfered with, coerced, and restrained its employees in the exercise of rights guaranteed to them by Section 7 of the Act, and that Respondent has thereby violated Section 8 (a) (1) of the Act. IV. THE EFFECT OF THE UNFAIR LABOR PRACTICES UPON COMMERCE. It is found that the activities of Respondent set forth in Section III, above, occurring in connection with the operations of Respondent described in Section I, above, have a close, intimate, and substantial relation to trade, traffic, and com- merce 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 Respondent has engaged in certain unfair labor practices within the meaning of Section 8 (a) (1) and (3) of the Act, the Trial Examiner will recommend that it cease and desist therefrom and take certain affirmative action in order to effectuate the purposes and policies of the Act. The Trial Examiner has found that Respondent discriminated against Florence McMaster in regard to her hire and tenure of employment because of her con- certed activity with and on behalf of other employees, thereby discouraging concerted activity by the employees for their mutual aid and protection. This discharge was found to be a violation of both Section 8 (a) (1) and 8 (a) (3) of the Act. For purposes of effectuating the policies of the Act, however, the remedy for a discriminatory discharge is the same, whether it be predicated upon a violation of one section or the other or, as here, upon both. It will therefore be recommended that Respondent offer to Florence McMaster immediate 'and full reinstatement to her former position or substantailly equivalent position, without prejudice to her seniority or other rights and privileges, and that Respondent make her whole for any loss of earnings she may -have suffered by reason of Respondent's discrimination against her, by payment to her of a sum equal to that which she would have earned from the date of the discrimination against her to the date of the offer of reinstatement, less her net earnings during that period.16 14 See , e. g., Standard Hat'Company, IT NLRB 883 ; Columbia Baking Company, 51 NLRB . 485; W. E. Lipshutz, doing business as The Monarch Company, 56 NLRB 1749, affirmed 149 F. 2d 141 (C. A. 5). 15 It is just as illegal for an employer to induce its employees to forego collective bar- gaining or self -organization by favors promised or bestowed as by threats or domination. Medo Photo Supply Corporation v. N. L. R . B., 321 U. S.. 678, 686; Western Cartridge Company v. N. L. R. B., 44 NLRB 1, enforced 134 F. (2d) 240, 244, certiorari denied, 320 U. S. 746; Hudson Hosiery Company, 72 NLRB 1434. 1e Some testimony was adduced by both parties regarding the attempts of McMaster to secure other employment after her discharge , but at the suggestion of the Trial Examiner 2104 DECISIONS. OF NATIONAL LABOR RELATIONS BOARD The record does not disclose any antiunion activity or other conduct by the Respondent violative of the Act, prior to the events of August 31, '1949, de- scribed above. However, the illegal actions of Respondent on that date, although concentrated into a period of several hours and directed toward the employees of only one department, were of such a nature as to indicate to me that the Respondent is of a mind to defeat self-organization and concerted activity of its employees by whatever means. The right to engage in self-organization afid concerted activity is of the very essence of the Act, and any conduct which rea- sonably tends or is designed to discourage or stifle the exercise of this basic right is indicative of an attitude hostile to the general purposes of the Act. I am convinced by the above-described conduct and attitude of Respondent that there is substantial danger that Respondent may in the future commit similar or other unfair labor practices proscribed by the Act. In that situation, the preventive purposes of the Act would be thwarted unless the Board's order is coextensive with the threat. The Trial Examiner will therefore recommend that Respondent cease and desist from in any manner interfering with, re- straining, or coercing its employees in the exercise of the rights guaranteed in Section 7 of the Act. Upon the basis of the foregoing findings of fact and the entire record in the case, I make the following : CONCLUSIONS OF LAW 1. By discriminating in regard to the hire and tenure of employment of Flor- ence McMaster because she engaged in concerted activities with and on behalf of other employees for the purposes of collective bargaining and other mutual aid and protection, Respondent interfered with, coerced, and restrained its em- ployees in the exercise of rights guaranteed by Section 7 of the Act, and Re- spondent has thereby engaged and is engaging in unfair labor practices within the meaning of Section 8 (a) (1) of the Act. 2. By engaging in such discrimination, thereby discouraging formation of and membership in labor organizations, Respondent has engaged in and is engag- ing in unfair labor practices within the meaning of Section 8 (a) (3) of the Act. 3. By otherwise interfering with, restraining, and coercing its employees in the exercise of rights guaranteed by Section 7 of the Act, to the extent herein found to be violative of the Act, Respondent has engaged in and is engaging in unfair labor practices within the meaning of Section 8 (a) (1) of the Act. 4. 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, and upon the entire record in this case, I recommend that Smith Victory Corporation, its officers, agents, successors, and assigns, shall: 1. Cease and desist from : (a) Discouraging concerted activity among its employees or formation of and membership in any labor organization of its employees by discriminatorily the point was not thoroughly explored, inasmuch as the Trial Examiner took the position that the resolution of the amount of back pay due, if any, was a matter for investigation by the parties and the Board in the compliance stage of the proceeding.' The Trial Examiner therefore makes no finding on this point. See Montgomery Hardwood Flooring Company, Inc., 72 NLRB 113,115; The Cuiman Lumber Company, Inc.. 82 NLRB 296, 300. SMITH VICTORY CORPORATION 2105 discharging its employees or by discriminating in any other manner in regard to their hire or tenure of employment or any term or condition of their em- ployment ; (b) In any other manner interfering with , restraining , or coercing its em- ployees in the exercise of the right to. self-organization , to form, join , or assist labor organizations, to bargain collectively through representatives of their own choosing , and to engage in other concerted activities for the purposes of collective bargaining or other mutual aid and 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) Offer to Florence McMaster immediate and full reinstatement to her former or substantially equivalent position , without prejudice to her seniority or other rights and privileges , and make said employee whole for any loss of pay she may have suffered by reason of Respondent ' s discrimination against her, by payment to her of a sum of money equal to that which she normally would have earned as wages from Respondent from the date of her discharge to the date of her reinstatement or Respondent 's offer of reinstatement , less her net earnings during that period; (b) Post in its plant in Buffalo, New York, copies of the notice attached to this Report and marked Appendix A. Copies of said notice , to be furnished by the Regional Director for the Third Region, shall , after being duly signed by Re- spondent 's representative , be posted by • Respondent immediately upon receipt thereof, and maintained by,Respondent for sixty ( 60) consecutive days there- after in conspicuous places, including all places where notices to employees are customarily posted. Reasonable steps shall be taken by Respondent to insure that said notices are not altered , defaced , or covered by any other material ; (c) Notify the Regional Director for the Third Region in writing within 10 .( 10) days from the date of the receipt of this Intermediate Report, what steps Respondent has taken to comply with the foregoing recommendations. It is further recommended that unless within ten ( 10) days from the receipt of this Intermediate Report, the Respondent notifies said Regional Director in writing that it 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, 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, 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 , 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. Statements of exceptions and briefs shall designate by precise citation the portions of the record relied upon and shall be legibly printed or mimeographed , and if mimeographed shall be double spaced . 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 2106 DECISIONS OF NATIONAL LABOR RELATIONS BOARD 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, con- clusions, and order, and all objections thereto shall be deemed waived for all purposes. Dated at Washington, D. C., this 15th day of May 1950.. EUGENE F. FREY, Trial Examiner. 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 discourage concerted activity among our employees by dis- charging any of them or in any other manner discriminating in regard to their hire or tenure of employment or any term or condition of their employment. WE WILL NOT in any other manner interfere with, restrain, or coerce our employees in the exercise of their right to self-organization, to form, join, or assist any labor organization, to bargain collectively through repre- sentatives of their own choosing, and to engage in concerted activities for the purpose of collective bargaining or other mutual aid or protection. WE WILL OFFER to Florence McMaster immediate and full reinstatement to her former or substantially equivalent position without prejudice to any seniority or other rights and privileges previously enjoyed, and make her whole for any loss of pay suffered as a result of our discrimination against her. All of our employees are free to form, join, or assist any labor organization and to become or remain members of any labor organization, and to engage in any self-organization and other concerted activities for the purpose of collective bargaining or other mutual aid or protection. SMITH VICTORY CORPORATION, Emploper. 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. Copy with citationCopy as parenthetical citation