Startler Hilton HotelDownload PDFNational Labor Relations Board - Board DecisionsJun 18, 1971191 N.L.R.B. 283 (N.L.R.B. 1971) Copy Citation STATLER HILTON HOTEL 283 Hilton Hotels Corporation d/b/a Statler Hilton Hotel and Joint Executive Board of the Hotel and Restau- rant Employees and Bartenders ' International Union, AFL-CIO , of Washington , D.C. Case 5-CA- 4725 June 18, 1971 DECISION AND ORDER BY CHAIRMAN MILLER AND MEMBERS BROWN AND JENKINS On January 29, 1971, Trial Examiner Paul Bisgyer issued his Decision in the above-entitled proceeding, finding that the Respondent had engaged in and was engaging in certain unfair labor practices and recom- mending that it cease and desist therefrom and take certain affirmative action, as set forth in the attached Trial Examiner's Decision. Thereafter, the Respondent filed exceptions to the Decision and a supporting brief. Pursuant to the provisions of Section 3(b) of the National Labor Relations Act, as amended, the Na- tional Labor Relations Board has delegated its powers in connection with this case to a three-member panel. The Board has reviewed the rulings of the Trial Ex- aminer made at the hearing and finds that no prejudi- cial error was committed. The rulings are hereby affirmed. The Board has considered the Trial Ex- aminer's Decision, the exceptions and brief, and the entire record ' in the case, and hereby adopts the findings,' conclusions, and recommendations of the Trial Examiner. ORDER Pursuant to Section 10(c) of the National Labor Re- lations Act, as amended, the National Labor Relations Board adopts as its Order the Recommended Order of the Trial Examiner and hereby orders that the Re- spondent, Hilton Hotels Corporation d/b/a/ Statler Hilton Hotel, Washington, D.C., its officers, agents, successors , and assigns , shall take the action set forth in the Trial Examiner's Recommended Order.' CHAIRMAN MILLER, dissenting: I disagree with the majority conclusion that the ban- quet captains are not supervisors as defined in the Act. The banquet captains direct the work of the banquet waiters. In my view, the record establishes that such ' The Respondent has excepted to certain credibility findings made by the Trial Examiner. It is the Board's established policy not to overrule a Trial Examiner 's resolutions with respect to credibility unless the clear prepon- derance of all the relevant evidence convinces us that the resolutions were incorrect. Standard Dry Wall Products, Inc, 91 NLRB 544, enfd. 188 F.2d 362 (C.A. 3). We find no such basis for disturbing the Trial Examiner's credibility findings in this case. 191 NLRB No. 40 direction is "responsible direction" within the meaning of our statutory definition of supervisor. Banquet captains are required to prepare a floor plan for each banquet, to see that the banquet room is prop- erly equipped, that the affair is adequately staffed, and that the food is efficiently and correctly served. The captains may vary the size of the stations to be served by each waiter2 and may designate certain waiters to come in earlier to set up tables, for which they receive extra compensation. While the function is in progress it is the captain's responsibility to see that it runs smoothly. The waiter's job may be fairly routine, but it does not necessarily follow that the captain's job is also routine. The nature of a banquet function, which involves dealing with the general public, makes likely the occurrence of nonrou- tine events; and it is the captain who must exercise his judgment in determining how to deal with these mat- ters. On these facts I would find that the banquet captains are required to use independent judgment in directing the waiters. I would therefore find that the banquet captains are supervisors within the meaning of the Act, and that Respondent was under no obligation to bar- gain with the Union concerning their compensation. I would therefore dismiss the complaint in its entirety. 2 This, in turn, affects the waiter's compensation , which depends in part on the number of guests he serves. TRIAL EXAMINER'S DECISION STATEMENT OF THE CASE PAUL BISGYER, Trial Examiner: This proceeding, with all the parties represented, was heard on September 24 and 25 and October 20 and 21, 1970, at Washington, D.C., on the complaint of the General Counsel issued on June 16, 1970,' and the answer of Hilton Hotels Corporation d/b/a/ Statler Hilton Hotel, herein called the Respondent or the Company. In issue is the question whether the Respondent, in violation of Section 8(a)(1) and (5) of the National Labor Relations Act, as amended,' refused to bargain with Joint Executive Board of the Hotel and Restaurant Employees and Bartend- ers' International Union, AFL-CIO, of Washington, D.C., herein called the Union, the exclusive representative of the Respondent's employees, by unilaterally reducing the per- centage of banquet gratuities its two banquet captains, Erich von der Lippe and Otto Kubain, had customarily been enjoy- ing, without first notifying and bargaining with the Union over the contemplated reduction. At the close of the hearing, ' The complaint is based on a charge filed by the Union on April 9, 1970, a copy of which was duly served on the Respondent by registered mail the following day. 3 Section 8(a)(1) of the Act makes it an unfair labor practice for an employer "to interfere with, restrain, or coerce employees in the exercise of the rights guaranteed in section 7." Insofar as pertinent , Section 7 pro- vides that "[e]mployees shall have the right to self-organization, to form, tom or assist labor organizations , to bargain collectively through representa- tives of their own choosing, and to engage in other concerted activities for the purpose of collective bargaining or other mutual aid or protection Section 8 (a)(5) makes it an unfair labor practice for an employer "to refuse to bargain collectively with the representatives of his employees" designated by a majority of them in an appropriate unit. 284 DECISIONS OF NATIONAL LABOR RELATIONS BOARD the parties briefly argued their positions but thereafter the General Counsel and the Respondent submitted illuminating briefs in support of their respective positions. Upon the entire record, and from my observation of the demeanor of the witnesses, and with due consideration being given to the arguments advanced by the parties, I make the following: FINDINGS AND CONCLUSIONS I THE BUSINESS OF THE RESPONDENT The Respondent, a Delaware corporation, operates a hotel enterprise in Washington, D.C., where it also maintains its principal place of business. Its gross annual revenues derived from these operations exceed $500,000. It is not disputed, and I find, that the Respondent is an employer engaged in commerce within the meaning of Sec- tion 2(6) and (7) of the Act. II. THE LABOR ORGANIZATION INVOLVED It is conceded , and I find, that the Union is a labor organi- zation within the meaning of Section 2(5) of the Act. III THE ALLEGED UNFAIR LABOR PRACTICES A. The Union's Dispute with the Respondent,- the Issues Presented As indicated above, the Respondent is charged with breaching its bargaining obligation by unilaterally reducing the share of banquet gratuities its two banquet captains had customarily enjoyed, without consultation with the Union, the employees' exclusive bargaining representative. The fac- tual setting out of which this proceeding arises is, in the main, undisputed and may be summarized, as follows: For more than 20 years, the Union has been the recognized collective-bargaining representative of the Respondent's em- ployees in a multiemployer unit, conceded to be appropriate for the purposes of this proceeding, pursuant to successive contracts negotiated with Hotel Association of Washington, D.C., Inc., herein called the Association.' The latest contract, in effect at relevant times, was executed by the Respondent and the Union for a term commencing September 16, 1969, through September 15, 1972, and covers "all of... [the Re- spondent's] employees, with the exception of managerial and supervisory employees."4 Historically included in this bar- gaining unit have been banquet captains whose wages, par- ticipation in banquet gratuities, and fringe benefits have been prescribed in the negotiated contracts along with those of other unit employees. Concerning the sharing of gratuities, the subject of controversy herein, article X of the current contract provides that 19 percent of a gratuity paid by the person booking a function "shall be retained by the officers in charge, including captains," and the remaining 81 percent shall be divided equally among the waiters and waitresses.' ' However, each hotel represented by the Association signed individual contracts with the Union. It was stipulated that 38 hotel-members of the Association participated in the 1969 contract negotiations It also appears that other hotel-members of the Association were not parties to these negotiations. ° Other excluded employees are "office employees, musicians, engineers, firemen, carpenters, barbers, and upholsterers." The full text of that provision reads, as follows- Sec. 4. Banquet waiters and waitresses shall be permitted to pass a plate unless the party booking said party guarantees a gratuity amount- ing to sixteen (16%) per cent of the cost of the meal, including food and drink. In the event of such guarantee, no plate shall be passed. Nineteen (19%) per cent of the gratuity shall be retained by the officers in charge, including captains, and Eighty-One (81%) per cent shall be sent to the Although the extent of the captains' share in the 19-percent fund is not fixed in this contract, nor was it established in prior agreements, it was the uniform practice for some 15 years until changed by the Respondent in October 1969, for the Respondent's two captains to receive 9 percent of the overall gratuity payable out of the 19 percent,' which they shared equally. As "officers in charge," the Respondent's banquet manager and the headwaiter,7 admittedly super- visory employees, have been the other participants in the 19-percent allocation. On or about October 12, 1969, without notice to the Union, the Respondent unilaterally reduced the share of its banquet captains, Erich von der Lippe and Otto Kubain, in the 19- percent fund to 6 percent of the overall gratuity, thereby increasing the distribution to the banquet manager and the headwaiter to 13 percent. The consequent reduction in each captain's share from 4% to 3 percent of the overall gratuity meant a real financial loss to them as gratuities constitute approximately 60 percent of their total earnings. Upon learn- ing of the Respondent's action on October 23, when they were given their weekly paycheck for the October 12 to 18 work period, von der Lippe promptly sought an explanation from his superior, Wolfgang F. Baere, the headwaiter. Baere in- formed him that management had made the decision to reduce the captains' share in gratuities. Shortly thereafter, von der Lippe complained to the Catering Service Director Weatherstone, who acknowledged responsibility for the re- duction. Receiving no satisfaction from him, von der Lippe reported the reduction to dames Karath, the Union's business manager. Karath telephoned Weatherstone who told him that he had been directed by his superiors to cut the captains' percentage. Karath then called the Respondent' s general manager, Richard C. Nelson, and protested the Respondent's action. In the ensuing conversation, Nelson bluntly asserted management's right to distribute the 19 percent as it saw fit' and rejected Karath's request for a meeting to discuss the matter further. Karath's subsequent effort to persuade Nel- son to change his position and meet with the Union was similarly futile. Ultimately, the Union filed the unfair labor practice charge herein against the Respondent seeking vindi- cation of its bargaining rights. It is settled law that an employer's compliance with his statutory bargaining obligation presupposes that he will not alter existing wages and conditions of employment without giving his employees' exclusive bargaining representative ad- vance'notice and an opportunity to negotiate over any con- templated change.' As the Supreme Court pointed out, such a unilateral change "is a circumvention of the duty to negoti- ate which frustrates the obligation of Section 8(a)(5) much as does a flat refusal."10 The Respondent does not question this principle and, al- though conceding its unilateral action and its persistent refusal to bargain over that matter , urges that the complaint should be dismissed on three grounds-first, the failure to join other members of the multiemployer bargaining group as indispensable parties to the action; secondly, the absence of Union to be divided equally among the other employees serving the banquets. It appears that banquet captains' share in the 19-percent allocation varies from hotel to hotel ' "Officers in charge" may encompass different people at the various hotels. ' The Union has never claimed the right to be consulted concerning the division of the remaining 10 percent among the banquet manager, head- waiter, or other management personnel. ' N.L.R.B. v. Katz, 369 U.S 736, 743 Ibid. STATLER HILTON HOTEL 285 a bargaining obligation with respect to the employment con- ditions of captains because of their supervisory status; and lastly, the Union's waiver of its right, assuming it had one, to bargain concerning the extent of the captains' share in banquet gratuities. These contentions will be separately con- sidered below. B. Analysis of Issues,- Concluding Findings 1. Alleged necessary parties The Respondent contends that the complaint must be dis- missed for failure to join the other employer-members of the multiemployer group as indispensable parties. It argues that joinder is necessary because any remedy issued herein, if a violation should be found , would require bargaining in the multiemployer unit. Moreover, it urges that the rights as- serted in this proceeding arise out of a contract common to all the employer-members of the bargaining group and that therefore their presence in this proceeding is essential. The General Counsel , on the other hand , disputes that there is a fatal nonjoinder of parties. He further argues that, in any event, the Association did not apply to intervene in this pro- ceeding, even though it was present in the courtroom at various times during the presentation of the General Coun- sel's case and was served with formal notice before the Re- spondent opened its defense. I find the Respondent 's position lacking in merit. As noted , the only employer in the multiemployer group charged with unlawfully violating its bargaining obligation is the Respondent which admittedly reduced its banquet cap- tains' customary share in banquet gratuities without notice or discussion with the Union . Obviously , this action did not affect the earnings of the banquet captains at the other hotels in the unit. There is also no question that the multiemployer contract does not fix the banquet captains" share in the 19- percent allocation . From the varying practices prevailing at the different hotels, it is quite clear that this matter has been treated by the employer group and the Union as a condition of employment handled on an individual employer basis. In- deed , implicit in the Respondent's unilateral action and its assertion of management prerogative in justification is its recognition of this fact." In these circumstances , I am unable to perceive how joinder of the other employer -members of the multiemployer group, who certainly are not responsible for the Respondent's conduct," is necessary in order to effectuate an appropriate remedy if an unfair labor practice is found . Contrary to the Respondent's contention , multiemployer bargaining is not the permissible remedy to rectify the violation . Rather, the cure for the Respondent's individual breach of its statutory obligation is bargaining by the Respondent itself with respect to the subject of its unilateral action, leaving the multiem- ployer unit intact as the basic bargaining unit for dealing with problems common to the group ." Under settled law," such " Of course, one of the issues later to be considered is whether the Respondent 's action was a permissible exercise of a management preroga- tive or an interference with the bargaining rights of its employees within the meaning of Section 8 (a)(1) and (5) of the Act 11 It is the Board's policy not to find an unfair labor practice against a party or subject him to a remedial order, where he has not been charged with violating the Act Sewanee Coal Operators Association, 167 NLRB 172, Moving Storage Negotiating Committee, 135 NLRB 387, 389, CascadeEm- ployers Association, Inc., 126 NLRB 1014, 1016; Sterling Furniture Com- pany, 94 NLRB 32, 34-35 n The KrogerCo., 148 NLRB 569, 573-575; N.L.R.B. v Miller Brewing Company, 408 F.2d 12, 15 (C.A. 9), enfg. 166 NLRB 831. 14 Ibid.; cf. Milk Drivers and Dairy Employees Local Union No. 537 (Sealtest Foods), 147 NLRB 230, 234, Guerin & Company, 92 NLRB 1698, individual bargaining, limited as it is to a matter of particular concern to that employer, is not precluded by the existence of a multiemployer unit since it is neither inconsistent with, nor destructive of, the principle of group bargaining. It there- fore follows that all the employer-members of the bargaining group are not needed to enable the Board to adjudicate the alleged unfair labor practices and afford complete relief re- quired by the circumstances." Nor do I find any basis for treating all the employer-mem- bers of the bargaining group as indispensable parties whose absence compels dismissal of the complaint simply because they are parties to the contract the Association negotiated on their behalf with the Union. Significantly, the validity of the contract is not here in issue which, if it were, might require, in certain situations, the presence of all parties to the contract to litigate the case fairly and fully. is Moreover, the bargaining rights the Union and the General Counsel seek to have vin- dicated herein derive from the Act and not solely from the contract, as the Respondent asserts. While not indispensable parties, the employer-members or their Association might, nevertheless, be proper parties enti- tled to seek intervention by reason of the Respondent's alter- native defense." As later discussed more fully, it is the Re- spondent's position that its unilateral action was an exercise of management prerogative sanctioned by the parties' con- tract and the Union's waiver of any right it possessed to bargain over the extent of the captains' share in banquet gratuities. This defense brought into question the interpreta- tion of the contract and bargaining history of common inter- est and importance to all employer -members of the bargain- ing unit , entitling them or their Association to seek intervention to protect their interests." However, no motion to intervene was made by the Respondent, Association, or any employer-member, even though Leonard E. Hickman, the Association's executive vice president, was in attendance in the courtroom at various times during the first 2 days of the hearing when the General Counsel presented his case. Nor was any application to intervene made after the General Counsel sent Hickman a letter on October 5, 1970, while the hearing was in recess and the Respondent had not yet opened its case, inviting him, as representative of the Association, to appear at the resumed hearin on October 20, 1970, in the event he "believe[d] there ... were] any interests of the As- sociation to be protected in this matter." Enclosed in that fn. 2. " The cases cited by the Respondent either do not support a contrary principle or are inapplicable to the situation here presented . See Rules of Civil Procedure for the United States District Courts, Rule 19 16 See Consolidated Edison Company v. N.L.R.B., 305 U.S. 197, 232; National Licorice Company v. N.L.R.B., 309 U S 350, 363; N.L.R.B. v. Pennsylvania GreyhoundLines Inc, 303 U S 261, 271, N.L.R.B. v. Indiana & Michigan Electric Co., 124 F.2d 50, 55 (C A. 6), affd. 318 U S. 9. See also Rules of Civil Procedure for the United States District Courts, Rule 19. 11 Section 10(b) of the Act provides that "[iln the discretion of the mem- ber, agent, or agency conducting the [unfair labor practice] hearing or the Board , any other person may be allowed to intervene in the said proceeding and to present testimony." Pursuant to this authority, Sec. 102.29 of the Board's Rules and Regulations provides, in pertinent part. Any person desiring to intervene in any proceeding shall file a motion in writing , or, if made at the hearing, may move orally on the record, stating the grounds upon which such person claims an interest. . The trial examiner shall rule upon all such motions made at the hearing or referred to him by the regional director ... The regional director or the trial examiner , as the case may be, may by order permit intervention in person or by counsel or other representative to such extent and upon such terms as he may deem proper. 16 Milk Drivers (Sealtest), supra, 234, N.L.R.B. v. Sterling Furniture Company, 202 F.2d 41,43 (C A. 9), remanding 94 NLRB 32 See also Rules of Civil Procedure for the United States District Courts, Rule 20. 286 DECISIONS OF NATIONAL LABOR RELATIONS BOARD letter was a copy of the complaint , as amended . This letter was never answered. Considering the foregoing , it cannot be seriously argued that the Board is barred from adjudicating the unfair labor practice charged herein because of the nonjoinder of employ- er-members of the bargaining group , even though the As- sociation was fully aware of this proceeding and was afforded adequate opportunity to safeguard the employers ' interests. Furthermore, the Respondent 's ability to litigate the issues herein was in nowise impaired by the nonjoinder . Indeed, much of the documentary evidence produced by the Re- spondent came from the files of the Association which for years has been representing the hotel -employers in contract negotiations and in resolving problems arising under nego- tiated agreements . In addition , the Association 's labor coun- sel and its former and present executive vice president , as well as other participants in the various contract negotiations, were available as witnesses if the Respondent wanted to call them. In the final analysis , I find nothing in the record indicating that the Respondent was prejudiced in any way by the non- joinder of the other employers in the bargaining unit to war- rant dismissal of the complaint herein . After all, "procedural regularity [is] not ... an end in itself, but [is] ... a means of defending substantive interests."19 2. Banquet captains' alleged supervisory authority Turning to the merits of the complaint , the Respondent seeks to avoid the legal consequences of its conceded unilat- eral action by arguing , in opposition to the position of the General Counsel and Union , that Banquet Captains von der Lippe and Kubain are supervisors within the meaning of Section 2(11) of the Act20 and hence it was under no duty to bargain concerning their working conditions. Initially, it is noted, as shown above, that banquet captains have for, years been members of the contractual unit, even though "managerial and supervisory employees" have been expressly excluded, and the captains ' wages, fringe benefits, and other conditions of employment have been governed by its terms. While this is a factor to be considered in resolving the super- visory question , it is, of course, not determinative , if, in fact, the captains are vested with such authority . In the latter event , there undeniably is no statutory restriction on the Employer's right to alter unilaterally the captains' working conditions whether established by the collective -bargaining agreement or practice ," whatever civil remedies might be available to the captains or their bargaining agent. Much testimony was produced on the subject of the au- thority and duties of Captains von der Lippe and Kubain and their role in the Respondent 's catering operations . In sub- stance, the credited testimony discloses the following: The Respondent maintains banquet and catering facilities on the 19 Charles Fay v Douds, 172 F.2d 720, 725 (C A 2); cf Rules of Civil Procedure, supra, Rule 21 '° Section 2(11) defines " supervisor," to mean: .. any individual having authority, in the interest of the employer, to hire, transfer, suspend, lay off, recall , promote, discharge , assign, re- ward, or discipline other employees, or responsibly to direct them, or to adjust their grievances , or effectively to recommend such action, if in connection with the foregoing the exercise of such authority is not of a merely routine or clerical nature , but requires the use of independ- ent judgment. " Cf Section 14(a) of the Act which provides: Nothing herein shall prohibit any individual employed as a supervisor from becoming or remaining a member of a labor organization, but no employer subject to this Act shall be compelled to deem individuals defined herein as supervisors as employees for the purpose of any law, either national or local, relating to collective bargaining. second floor of its hotel , which are managed by Director of Catering Weatherstone . In charge of the functions, which may be dinners or luncheon banquets , receptions, breakfasts, and other affairs, is Wolfgang F . Baere, the headwaiter, ad- mittedly a supervisor . He is assisted by the two banquet cap- tains, von der Lippe and Kubain , who alternately work the day and evening shifts, while Baere is usually at the hotel during all the scheduled functions . The captains take their orders principally from Baere and at times from Weather- stone, which are passed along to the waiters working a par- ticular affair. The captains ' responsibility is to effectuate the written in- structions relating to a scheduled function which they receive almost daily from the catering office. These instructions con- tain such information as the date and time of the functions, the room to be used, the name of the customer , the nature of the function, the approximate or guaranteed number of guests, the person in charge for the customer, the seating arrangements (the head table and the , number, type, and size of tables), the menu to be served , and many other details. Following the written instructions and established proce- dures, which obviously vary according to the type of affair, captains, among other things, prepare a floor plan and see that the banquet room is properly equipped ; the tables are properly arranged and set with appropriate linens, silver, and glassware; the affair is adequately staffed ; and the food is efficiently and correctly served . The performance of these duties involve coordination with the steward , chef, and the houseman departments , each of which has its own respon- sibilities regarding the furnishing of equipment , food, and beverages required for the function. To obtain waiters for scheduled functions , captains utilize a rotation list of steady waiters. The waiters are assigned in order of their standing on the list a day before the functions are to be held so that those at the top of the list are designated for the first function and those below them are assigned to the other scheduled affairs. If additional waiters are required, captains call the Union for extra help. According to von der Lippe and Kubain, whom I credit, they also generally assign service stations at a function in rotation ," although better waiters might be selected to cover the head and VIP tables, regardless of their position on the list , or there might be other departures for some special reason, as age. Moreover, cap- tains may vary the size of the stations so that one waiter may have more than the minimum number of guests prescribed in the bargaining contract for which he is additionally compen- sated or he may have less than the minimum for which he is paid the minimum.23 The number of waiters needed at a function is normally indicated by the written instructions or established practices or by Baere when consulted by the cap- tain . In connection with the assignment, captains may desig- nate some of the waiters to come in earlier to set up the tables for, which they receive extra compensation . Under certain circumstances where a banquet room is not available in time for a regular setup, the headwaiter or, in his absence, the captain may order the waiters to do a so-called station setup which is more costly to the hotel than the regular setup. Waiters familiarize themselves with the requirements of their 22 Art. XIII, sec 3 , of the current collective-bargaining contract provides- The Employer shall rotate watches , stations and turns so that em- ployees shall have equal opportunities . Those hotels using steady wait- ers or waitresses for banquet work during the employees' regular shift shall rotate same among all waiters or waitresses , provided they are willing to rotate and also provided that parties requesting designated waitresses or waiters shall be recognized. ' The waiters ' share of the gratuities are equally divided among them- selves, irrespective of the number of guests they serve. STATLER HILTON HOTEL assigned function, such as the menu to be served or the collec- tion of tickets, from posted written instructions or oral briefings by the headwaiter or captain. While a function is in progress, the captain handling it is always on the floor to see that it is running smoothly, direct- ing and assisting waiters if necessary, although the waiters' job is fairly routine. The captain may criticize a waiter for poor performance or alert the waiter to the headwaiter's disapproval of his work. It is also the captain's responsibility to satisfy the customer's requests as, for example, to speed up or hold back service, to open up certain bars or buffet tables, to furnish additional microphones for a speaker, or to extend the allocated time of the function, which might require the retention of several waiters on overtime pay. In the latter case of extending the time of the function, the captain discusses the matter with Baere or the catering salesman who arranged the affair. Customer complaints or problems are usually brought by the captain to the attention of Baere, who oversees all the functions. If Baere is not present or available, these matters are discussed with Catering Director Weatherstone. Accidents and intoxication incidents are reported to the Re- spondent's assistant manager or security officer. In cases of spillage, the captain investigates the matter, apologizes to the guest, arranges for the soiled clothes to be cleaned, and makes out a written report of the occurrence. Baere is also kept informed of these incidents. In addition to the foregoing, captains have many clerical duties to perform, using the same office as Headwaiter Baere for such purpose. They prepare "Headwaiter's Supervisory Report" relating to a completed function in which are noted all details of the affair, including the names of the waiters working it and the charge to the customer. They also keep a daily payroll record for each function, which contains, among other things, a detailed statement of the money due each waiter, as well as a breakdown of gratuities to be shared by the waiters, captains, and "officers in charge." There are other financial reports which captains are required to make. It appears that Captains von der Lippe and Kubam do not have the power to hire, fire, or discipline employees. This is the province of Headwaiter Baere. Nor is the evidence per- suasive that the captains possess the power to make effective recommendations in those respects.24 However, there is evi- dence that from about May 1967, when Baere's predecessor left the Respondent's employ, and November 1967, when Baere was hired, von der Lippe was requested by the person- nel manager to interview four applicants for houseman's jobs to ascertain if they were physically and mentally qualified; that he found the applicants acceptable and so advised the personnel manager; that this was during a period when housemen were difficult to come by and the Company was willing to hire anyone who was physically fit; and that he has not interviewed anyone since then. Von der Lippe and Kubain have also been instructed by Baere that he (Baere) alone had the authority to permit wait- ers to take time off, except that in case of emergency captains could grant permission in his absence. Accordingly, captains have customarily referred waiters requesting time off to Ba- ere, although von der Lippe once permitted a waiter to leave to attend a funeral and Kubain sent a waiter home sick. On one occasion when an elderly waiter fell while working and did not appear to be physically able to continue to work, von der Lippe suggested to him that he go home. That individual accepted the suggestion and his departure was excused. On another occasion in December 1968, while Baere was on vacation, von der Lippe asked an extra waiter not to seek z" To the extent that Baere's testimony differs from that of von der Lippe and Kubam, I find the captains' testimony more convincing 287 extra work at the Respondent's hotel as a result of an incident in which the waiter had dropped a plate on a guest and soiled the guest's dinner jacket.25 When a waiter arrives late for work, which is an infrequent occurrence, and he had already been replaced or his service station had already been redis- tributed because time was short before the function was scheduled to begin, captains follow the customary practice of not allowing the waiter to start work. Finally, captains do not attend supervisory meetings, as do the catering director and the headwaiter. Captains' weekly wages, which are fixed in the bargaining contract, are much higher than those paid to steady waiters and, while they share in gratuities with waiters, the amount each receives for working a particular function probably is less than the share of each waiter. In their work, the captains wear a tuxedo and the waiters wear a uniform, both of which are issued by the Respondent. On the other hand, the head- waiter's tuxedo is furnished by himself. The question thus to be resolved is purely a factual one26 and, in my opinion, close and troublesome. From a careful analysis of the evidence, I am, nevertheless, led to the conclu- sion that the responsibilities of Captains von der Lippe and Kiibain in running a function are insufficient to confer super- visory status on them within the meaning of Section 2(11) of the Act. Their directions to employees appear to be fairly routine, conforming with management instructions and es- tablished•guidelines and procedures. While some judgment is obviously required in the performance of the captains' duties, that exercised by them falls short of the independent judg- ment and responsible direction indicative of supervisory au- thority contemplated by the Act. Nor am I able to find vested in von der Lippe and Kubain effective power to affect the employment status of banquet waiters or other employees to constitute them supervisors. Whatever action they might have taken in that respect over the years has been too infre- quent and sporadic to satisfy the statutory definition of super- visor. Finally, their title of "captain" does not establish super- visory authority; such status obviously depends on duties.27 As I find that von der Lippe and Kubain are not super- visors within the meaning of the Act,26 it follows that the Respondent's unilateral reduction of their share in banquet gratuities which they had been customarily enjoying violated Section 8(a)(1) and (5) of the Act, unless there is merit in the Respondent's defense that the Union had waived its statutory right to be consulted in advance. " Von der Lippe explained that his statement to the waiter was not intended as an order but as friendly advice for fear that the waiter might otherwise run into more serious problems at the hotel which could jeopard- ize his standing in the Union He further testified that, although he thought that his advice was also in the Respondent's best interests, the waiter could not be barred from returning unless the Respondent made such a request of the Union in writing. Moreover, von der Lippe testified, he did not have the authority to prevent the waiter from working at the hotel. N.L R.B v. Elliott-Williams Co., Inc., 345 F 2d 460, 463 (C A 7). Red Star Express Lines ofAuburn, Inc. v N.L.R.B., 196 F.2d 78,79-80 (C A 2), cf. Management Directors, Inc. d/b/a/ Columbus Plaza Motor Hotel; 148 NLRB 1053, 1055-56, Don the Beachcomber, 163 NLRB 275, 276. Hotel Equities, d/b/a/ The Regency Hyatt House, 180 NLRB No. 34. 28 Plainly, the document entitled "Equal Employment Opportunity Commission-Area Director's Findings of Fact" involving the Sheraton Park Hotel, which was appended to the Respondent's brief submitted to the Trial Examiner, is not an official part of the record in the present case Moreover, the findings contained in that document are neither binding on the Trial Examiner nor require a contrary result. 288 DECISIONS OF NATIONAL LABOR RELATIONS BOARD 3. The alleged waiver of the union's statutory right As noted previously, the parties' current contract entitles "officers in charge, including captains" to 19 percent of the gratuity paid by a customer for services performed at a ban- quet with the remaining 81 percent being divided equally among the waiters and waitresses. It is also undisputed that, although the contract does not specify the precise share of the 19-percent allocation to be distributed to banquet captains, it has long been the practice-probably since 1955-for the Respondent's two captains jointly to receive 9 percent of the overall gratuity payable out of the 19 percent. Accordingly, since their employment in that capacity, Captains von der Lippe and Kubain have each received 4 1/2 percent of the overall gratuity until the Respondent in October 1969, unilat- erally reduced each one's share to 3 percent, without first notifying or bargaining with the Union or even honoring the Union's subsequent bargaining request. Significantly, this was the first instance in the Respondent's long history of bargaining relations with the Union where the Respondent had undertaken unilaterally to change the captains' share.29 It is the Respondent's inflexible position that it is under no duty to bargain with the Union over this matter because the Union had clearly and unmistakably waived this right.30 In support of this contention, the Respondent relies on the his- tory of negotiations for successive contracts from 1955 to 1969, when the current contract was concluded, in which negotiations, it argues, the parties consciously explored the subject of gratuities, adopting language indicative of manage- ment's unqualified control over the distribution of the 19- percent allocation among "officers in charge, including cap- tains."31 With equal vigor the General Counsel maintains that the record does not substantiate the Respondent's defense. As a general rule, a labor organization may waive its statu- tory right to be notified and consulted concerning a contem- plated change in working conditions. Such a waiver, however, cannot be lightly inferred but must be clearly and unmistaka- bly evidenced either in the terms of the parties' bargaining contract or in the nature of the prior contract negotiations." Silence in the consummated agreement following discussions of a controversial subject does not necessarily meet the waiver test.33 As the Board stated in an early case34: It is well established Board precedent that, although a subject has been discussed in precontract negotiations and has not been, specifically covered in the resulting contract, the employer violates Section 8(a)(5) of the Act if during the contract term he refuses to bargain, or takes 29 There is testimony, however, that the Shoreham Hotel, a participant in the multiemployer negotiations , unilaterally reduced its banquet captains' share in the allocated 19 percent in 1964, when it expanded its banquet facilities Apparently, the captains were not dissatisfied with the new ar- rangement because the expanded facilities improved the opportunity for increased earnings Besides, there is no evidence that the Union was even aware of the change 3° Except with respect to the captains ' share, there is no question of the Respondent's right to distribute the rest of 19-percent allocation among other personnel designated by the Respondent as "officers in charge." 31 Indeed, the Respondent and other employer-members of the bargain- ing unit have ignored the Union's earlier request of April 21, 1969, for information respecting the distribution that was being made to captains out of the allocated 19 percent 32 The Press Company, Incorporated, 121 NLRB 976, 977-978, The Timken Roller Bearing Company, 138 NLRB 15, 16, enfd 325 F.2d 746, 750-751 (C.A. 6), cert denied 376 U.S 971; C & CPlywood Corporation, 148 NLRB 414, 415-417, enforcement denied 351 F 2d 244 (CA 9), reversed 385 US. 421; L. C. Cassidy & Son, Inc, 185 NLRB No. 134; American Cyanamid Company, 185 NLRB No 135 33 Ibid. 34 The Press Company, supra, 977-978. unilateral action with respect to the particular subject, unless it can be said from an evaluation of the prior negotiations that the matter was "fully discussed" or "consciously explored" and the union "consciously yielded" or clearly and unmistakably waived its interest in the matter. Applying these principles to the instant case, I find that neither the language of the current or predecessor contracts nor the bargaining history supports the Respondent's waiver defense or otherwise sanctions the unilateral reduction here in question. As the evidence shows, for at least 25 years, banquet captains' right to participate in banquet gratuities has been recognized in the contracts. Thus, the successive agreements in effect from 1946 to 1955 contained clauses which provided that "[t]en per cent of the gratuity shall be retained by the officers in charge and 90% shall be sent to the union to be divided equally among the employees serving the banquets, including captains." The first relevant revision of that clause occurred in the 1955-56 negotiations when the parties provided in their new agreement, effective from Sep- tember 16, 1955, through September 15, 1957, that 19 percent of the gratuity shall be retained by "the officers in charge, including captains, and 81% shall be sent to the Union to be divided equally among the other employees serving the ban- quets."35 In identical language, this arrangement of 19 per- cent for "officers in charge, including captains" and 81 per- cent for the waiters and waitresses was continued in all subsequently negotiated contracts. The sole changes in the applicable provision made in several contracts were increases in the overall gratuity paid by the party booking the func- tion.36 Concerning the evidence relating to the 1955-56 negotia- tions which culminated in the 19-81-percent arrangement, it essentially consists of an Association memorandum dated December 21, 1955, which was directed to several interested member-hotels,37 and a copy of a letter dated January 25, 1956, sent by the Association's former counsel to the Union's 35 A proviso was added to that clause, not retained in succeeding con- tracts, which seem to suggest that the term "officers in charge" was not intended to apply to captains. Thus, the proviso read: . in the case of the Mayflower and Shoreham hotels where the cap- tain actually works the party, 10% of the gratuity shall be retained by the officers in charge , 5% shall be given the captains , and the balance shall be sent to the Union, who shall divide the balance equally among all employees serving the banquets , including captains. 36 Specifically, the overall gratuity in the September 16, 1957-September 15, 1960, contract was increased from 10 percent of the cost of meal and drink to 13 percent In the September 16, 1963-September 15, 1966, con- tract the gratuity was increased to 14 percent In the September 16, 1966- September 15, 1969, contract it was increased to 15 percent and in the current contract to 16 percent. " This memorandum, which was signed by the Association's Executive Vice President Bourbon Dawes and substantially embodies a memorandum from its labor counsel, advised that a meeting with the Union was scheduled for January 11, 1956, to consider "a definite method of computing the maitre d's , captains ' and officers in charge percentage of the banquet waiters' tips " It further stated that the Union is "going to recommend a 15% deduc- tion (of the 10% tips) to take care of all of these people. Up to this point the hotels have been deducting 10%, but the captains, etc, are being taken care of out of the remaining 90%. This would be eliminated under the 15% deduction." A handwritten notation on the memorandum, identified as that of Dawes and dated "1-13-56," notes that the Association's counsel "says we offered to deduct 19% and distribute as we see fit " Dawes, who is no longer in the Association's employ, was not produced as a witness. Accord- ing to the Respondent's attorney, he had telephoned Dawes in St. Louis, and was informed by him that he neither recalled those events nor was his recollection stimulated by the memorandum. Similar advice was conveyed to the Respondent's attorney by the Association's former labor counsel that he had no recollection concerning "the hotel's prerogative to distribute the banquet captains ' share of tips " STATLER HILTON HOTEL former counsel. In brief, the memorandum indicates that at a meeting with the Union scheduled for January 11, 1956, the Association expected the Union to propose a 15-percent dis- tribution for "matire d's, captains and `officers in charge.' " The memorandum also had a handwritten notation dated "1-13-56" which stated that "we offered to deduct 19% and distribute as we see fit." It is certainly not without signifi- cance that the resultant contractual provision makes no men- tion of management's reservation of its right to distribute the 19 percent as it saw fit, much less to determine the captains' share. As for the letter of the Association's counsel referred to above, it advised that the clause in question was rewritten by him "to allow for the 19% withholding of gratuity for officers in charge and captains, as per your request and our agreement," and similarly fails to make any reference to management's control over the captains' share. This clause was subsequently incorporated in the executed agreement. It is undisputed that since at least 1960 the Union in the various negotiations culminating in the execution of the successive contracts sought to increase the captains' share in the 19-percent allocation by reducing or eliminating the par- ticipation of "officers in charge." Such proposals have uni- formly been rejected by management . Specifically, the evi- dence shows that in the 1963 negotiations the Union proposed an increase in the overall gratuity from 13 to 15 percent paid by the party booking the banquet to be dis- tributed only among the captains and the waiters and wait- resses in indicated proportions without any sharing by "offic- ers in charge." This proposal was not acceptable to management which insisted that "officers in charge" were entitled to a part of the gratuity because of their contribution to the banquet. The end result was that the overall gratuity was raised to 14 percent," and the 19-percent allocation for "officers in charge, including captains" was retained. In the next series of contract negotiations in 1966, the Union proposed another increase in the overall gratuity, an enlargement of the captains' share in the 19-percent alloca- tion, and a concomitant reduction in the participation of "officers in charge."39 This, too, met with resistance from management, arguing for the retention of the share enjoyed by "officers in charge." Again, the overall gratuity was in- creased to 15 percent and the clause in the previous contract dealing with this subject was retained .40 The participation of "officers in charge" thus remained intact. In the 1969 negotiations for the current agreement, the Union made another fruitless attempt to increase the cap- tains' share in the 19 percent and to diminish the share of "officers in charge."41 As it had done on previous occasions, The captains' base pay was also raised. " Item 17(c) of the Union's proposal read, as follows: Amend Article X, Sect 4, to increase the guaranteed gratuity from 14% to 18% of which 90% shall be sent to the Union for equal division among the waiters and waitresses serving the function 10% to be retained by the officers in charge of which 60% shall be divided among the captains assigned to the function. 40 The base pay of captains was also increased " The Union' s proposal was as follows: Amend Article IX, Sec 4 (Banquet gratuity) to provide: (a) 18% gratuity instead of 15% (b) The 19% of the gratuity that is retained by the officers in charge, including captains, shall be divided as follows. Where there is one captain in the house, an equal division with one part to the officers and one part to the captain. Where there are two captains in the house, an equal division with two parts to the officers in charge and two parts to the captains Where there are more than two captains working, including substitute captains, pro rata shares with two shares going to the officers in charge and one share to each captain (c) Where there is no captain, in the banquet department, one-half of the 19% of the gratuity shall be divided equally among the 289 the Respondent rejected the Union's proposal and argued for the preservation of the share of "officers in charge." The only change the Union succeeded in achieving in this respect was another 1-percent increase in the overall gratuity. Otherwise, the applicable clause in the contract remained the same. I credit the testimony of the Union's attorney, Samuel Levine, who participated in all the contract negotiations since 1957,42 that never in any negotiations did management assert a right to control or determine the captains' share in the 19-percent allocation nor did that question even arise. This is borne out by the very nature of the Union's proposals which were undeniably concerned with increasing the cap- tains' share by decreasing or terminating the participation of "officers in charge" in the 19 percent, and not with any asserted management right unilaterally to alter the captains' share. In this context, and in view of the fact that captains were members of the bargaining unit whose interests the Union always represented, it is highly unlikely that manage- ment would assert a right in the discussions to change the captains' share whenever it saw fit. Not surprisingly, there is no testimony of the Union's response to this purported man- agement claim nor explicit language in the contract recogniz- ing the claim. In these circumstances, I find unpersuasive the contradictory testimony of Philip A. Hollywood, chairman of the Association's labor committee, regarding management's reservation of its right unilaterally to control and determine the captains' share in the gratuity. All things being considered, including the history of bar- gaining and the language of the clause in question embodied in past and current contracts, I find insufficient (evidence that the matter of management's asserted right of unilateral con- trol over the captains' share in banquet gratuities "was `fully discussed' or `consciously explored' and the union 'con- sciously yielded' or clearly and unmistakably waived its inter- est in the matter."" Nor am I able to find any convincing evidence of a prevailing practice, as the Respondent suggests, from which an inference may reasonably be drawn of the existence of such an acknowledged management prerogative or a surrender by the Union of its statutory right to be con- sulted concerning a contemplated change in the captains' share. Indeed, it appears that at no time prior to its action in October 1969 which gave rise to this proceeding did the Respondent ever presume to exercise its purported manage- ment right to alter the percentage of the gratuities its captains have been customarily receiving. Accordingly, I find that the Respondent's admitted reduc- tion of the individual share of Captains von der Lippe and Kubain in the overall gratuity to 3 percent from 4 % percent they had long enjoyed as an established condition of employ- ment, without bargaining with the Union, violated Section 8(a)(5) and (1) of the Act. IV THE REMEDY Pursuant to Section 10(c) of the Act, as amended, I recom- mend that the Respondent be ordered to cease and desist from engaging in the unfair labor practices found and in any like or related conduct and take certain affirmative action designed to effectuate the policies of the Act. It has been found that the Respondent, in derogation of its statutory obligation, unilaterally reduced the percentage share in banquet gratuities its banquet captains had long waiters and waitresses serving the function. In the negotiations held during the 1960-69 period, Levine was actu- ally the Union's chief spokesman. It also appears that he was a union negotiator prior to 1955. '3 The Press Company, Incorporated 121 NLRB 976, 978 290 DECISIONS OF NATIONAL LABOR RELATIONS BOARD enjoyed as a condition of employment. Accordingly, it is recommended that the Respondent rescind such reduction and restore the percentage share the captains had been receiv- ing under the prevailing practice at the time the Respondent had taken the unlawful action. A full and complete remedy further requires that the Respondent reimburse its Captains von der Lippe and Kubain for the loss of moneys suffered by them in consequence of the reduction to be computed with interest at 6 percent per annum.44 It is so recommended. To facilitate the computation, the Respondent shall make availa- ble to the Board, upon request, all records necessary and appropriate for such purposes. The posting of a notice is also recommended. Upon the basis of the foregoing findings of fact and upon the entire record in the case, I make the following: CONCLUSIONS OF LAW 1. The Respondent is an employer engaged in commerce within the meaning of Section 2(6) and (7) of the Act. 2. The Union is a labor organization within the meaning of Section 2(5) of the Act. 3. As stipulated for the purpose of this case only, all em- ployees of the Respondent at its Washington, D.C., location, excluding managerial and supervisory employees, office em- ployees, musicians, engineers, firemen, carpenters, barbers, and upholsterers, together with the employees of other hotel- employers in the Washington, D.C., area comprising a mul- tiemployer bargaining group, constitute a unit appropriate for purposes of collective bargaining within the meaning of Section 9(b) of the Act. 4. At all times material herein, the Union has been the exclusive bargaining representative of the employees in the aforesaid appropriate unit within the meaning of Section 9(a) of the Act. 5. By unilaterally reducing the share in banquet gratuities each of its banquet captains, von der Lippe and Kubain, had been customarily receiving, from 4 1/2 percent to 3 percent, without first notifying and bargaining with the Union, the Respondent had engaged, and is engaging, in unfair, labor practices within the meaning of Section 8(a)(5) and (1) of the Act. 6. The aforesaid unfair labor practices affect commerce within the meaning of Section 2(6) and (7) of the Act. Upon the foregoing findings of fact, conclusions of law, and the entire record, and pursuant to Section 10(c) of the Act, as amended, I hereby issue the following recommended:45 ORDER The Respondent, Hilton Hotels Corporation d/b/a Statler Hilton Hotel, Washington, D.C., its officers, agents, succes- sors and assigns, shall: 1. Cease and desist from: (a) Unilaterally reducing or otherwise changing the per- centage share of its banquet captains in banquet gratuities paid or guaranteed by the party booking a function, or mak- ing any unilateral changes in other terms or conditions of employment of its employees in the appropriate unit de- scribed below, without first notifying and bargaining with the employees' exclusive representative, Joint Executive Board of Isis Plumbing & Heating Co., 138 NLRB 716. In the event no exceptions are filed as provided by Section 102.46 of the Rules and Regulations of the National Labor Relations Board, the findings, conclusions, and recommended Order herein shall, as provided in Section 102.48 of the Rules and Regulations, be adopted by the Board and become its findings, conclusions, and Order, and all objections thereto shall be deemed waived for all purposes. the Hotel and Restaurant Employees and Bartenders' Inter- national Union, AFL-CIO, of Washington, D.C.: All employees of the Respondent at its Washington, D.C., location, excluding managerial and super- visory employees, office employees, musicians, engi- neers, firemen, carpenters, barbers, and upholster- ers, together with the employees of other hotel employers in the Washington, D.C., area compris- ing a multiemployer bargaining group. (b) In any like or related manner interfering with, restrain- ing, or coercing employees in the exercise of their bargaining rights through their exclusive representative, the above- named Union, which are guaranteed to them in Section 7 of the Act. 2. Take the following affirmative action which is necessary to effectuate the policies of the Act: (a) Rescind the unilateral reduction made in the share of banquet gratuities which its banquet captains, Erich von der Lippe and'Otto Kubain, had previously enjoyed and restore the percentage they had customarily received just prior to the reduction. (b) Make Erich von der Lippe and Otto Kubain whole for any loss of moneys suffered by reason of the unlawful reduc- tion, in the manner set forth in the section of this Decision entitled "The Remedy." (c) Preserve and, upon request, make available to the Board or its agents, for examination and copying, all payroll records, social security payment records, timecards, person- nel records and reports, and all other records necessary or useful in analyzing the amount of moneys due under the terms of this Order. (d) Post at its Statler Hotel in Washington, D.C., copies of the attached notice marked "Appendix."46 Copies of said notice, on forms provided by the Regional Director for Re- gion 5, after being duly signed by the Respondent's author- ized representative, shall be posted by the Respondent im- mediately upon receipt thereof, and be maintained by it for 60 consecutive days thereafter, in conspicuous places, includ- ing 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 Region 5, in writing, within 20 days from the receipt of this Decision, what steps the Respondent has taken to comply herewith.47 16 In the event that the Board's Order is enforced by a Judgment of a United States Court of Appeals, the words in the notice reading "Posted by Order of the National Labor Relations Board" shall be changed to read "Posted pursuant to a Judgment of the United States Court of Appeals enforcing an Order of the National Labor Relations Board." °' In the event that this recommended Order is adopted by the Board after exceptions have been filed, this provision shall be modified to read: "Notify the Regional Director for Region 5, in writing, within 20 days from the date of this Order what steps the Respondent has taken to comply herewith." APPENDIX NOTICE To EMPLOYEES POSTED BY ORDER OF THE NATIONAL LABOR RELATIONS BOARD An Agency of the United States Government WE WILL NOT unilaterally reduce or otherwise change the percentage share of our banquet captains in banquet gratuities paid or guaranteed by the party booking the function, or make any unilateral changes in other terms or conditions of employment of our employees in the bargaining unit described below , without first notifying STATLER HILTON HOTEL and bargaining with the employees ' exclusive represent- ative , Joint Executive Board of the Hotel and Restaurant Employees and Bartenders ' International Union, AFL- CIO, of Washington, D.C. The bargaining unit includes: All employees at our Statler Hilton Hotel in Wash- ington, D.C., excluding managerial and supervisory employees , office employees, musicians , engineers, firemen , carpenters, barbers, and upholsterers, together with the employees of other hotel employ- ers in the Washington , D.C., area comprising a multiemployer bargaining group. WE WILL NOT in any like or related manner interfere with, restrain , or coerce our employees in the exercise of their bargaining rights through the above -named Union, which are guaranteed to them in Section 7 of the Act. WE WILL rescind the unilateral reduction made in the share of banquet gratuities which our banquet captains, Erich von der Lippe and Otto Kubain, had previously enjoyed and we will restore the percentage they had customarily received just prior to the reduction. WE WILL make Erich von der Lippe and Otto Kubain 291 whole for any loss of moneys they suffered by reason of our unlawful action. HILTON HOTELS CORPORATION D/B/A STATLER HILTON HOTEL (Employer) Dated By (Representative) (Title) This is an official notice and must not be defaced by any- one. This notice must remain posted for 60 consecutive days from the date of posting and must not be altered , defaced, or covered by any other material. Any questions concerning this notice or compliance with its provisions, may be directed to the Board 's Office, Room 1019, Federal Building , Charles Center, Baltimore, Maryland 21201, Telephone 301-962-2822. Copy with citationCopy as parenthetical citation