Stehli and Co., Inc.Download PDFNational Labor Relations Board - Board DecisionsMar 30, 193911 N.L.R.B. 1397 (N.L.R.B. 1939) Copy Citation In the Matter Of STEHLI AND Co., INC. and TEXTILE WORKERS UNION OF LANCASTER, PENNSYLVANIA AND VICINITY, LOCAL # 133 1 Cases Nos. C-463 and R-595.-Decided March 30, 1939 Silk Manufacturing Industry-Interference, Restraint, and Coercion: oral and published expressions of opposition to "outside" labor organizations ; dis- crediting union and union leaders ; strike broken by soliciting and inducing individual strikers to return to work by promising the best positions to those who repudiated the strike first ; discharging employee for inciting concerted activity in protest to wage cut-Company-Dominated Union: domination of and interference with formation and administration ; use of by employer as bulwark against "outside" unionization; encouragement of inside organiza- tion by discouragement of outside organization ; participation by supervisory employees ; dominated organization passed through three phases, under a different name for each phase ; successfully established only after employer had refused to bargain with genuine union, had broken its strike, and had announced to its employees that under its policy it was unfair to deal with an outside union ; disestablished, as agency for collective bargaining-Unit Appropriate for Collective Bargaining: production and maintenance employees, excluding office help, salesmen, watchmen, firemen, truckmen, executives, super- intendents, foremen, assistant foremen, and those doing supervisory work- Representatives: proof of choice : membership in union ; participation by a majority of employees in strike called by union and preferred by employer as means of testing union membership places burden on employer to offer rea- sonable method of determining majority, if he doubts union's majority-Col- lective Bargaining: failure to cooperate with union to reasonable extent to enable it to prove its majority ; desire to test union's strength by means of a strike ; refusal to consent to election except on condition that strike, in which great majority of employees participated, be called off immediately; refusal to make available at plant anyone authorized to negotiate with union ; responsi- bility for local agent's misrepresentations to his superior of union's proposals ; deliberate plan and policy not to deal with outside union ; employer ordered to bargain with union-Strike: caused at least in substantial part, and pro- longed, by employer's unfair labor practices-Strike Broken: by soliciting strikers individually and offering most desirable jobs to those who repudiated strike and returned to work first-Discrimination: inducing strikers to return to work during strike, offering those who returned first most desirable jobs ; refusal to reinstate to former or substantially equivalent employment those who applied for reinstatement at expiration of strike; charges of, not sustained as to five persons ; charges of, sustained as to one employee who encouraged others to engage in concerted activity before organization of union-Rein- statement Ordered: employees discriminatorily laid off, discharged, or refused reinstatement to former or substantially equivalent employment at termination 'Incorrectly designated as Textile Workers of Lancaster and Vicinity, Local No 133, In the complaint. At the hearing the complaint was amended to designate the Union under the name appearing In the caption above. 11 N. L. R. B., No. 124. 164275-39-vol xi-89 1397 1398 DECISIONS OF NATIONAL LABOR RELATIONS BOARD of strike , displacement of employees hired during strike , but not employed at commencement of strike , and of employees given preferable jobs because they repudiated strike as a result of employer 's inducements ; if not enough work available , employees to be placed on preferential list to be offered employment as it becomes available-Back Pay: awarded , to employees discriminatorily laid off, discharged , or refused reinstatement to former or substantially equiva- lent employment at termination of strike , from date of discrimination to date of offer of reinstatement or placement upon preferential list, excluding period between date of Intermediate Report and date of Order in case of two em- ployees as to whom Trial Examiner recommended dismissal of complaint ; monies received by employees for work performed upon Federal , State, county, municipal , or other work-relief projects to be deducted and paid over to agency which supplied funds for said projects-Investigation of Representa- tives: petition for, dismissed , in view of order to employer to bargain- Definitions : charge; complaint-Trial Bxaminer : error to refuse to make find- ings in Intermediate Report as to specific allegation in complaint where charge though not mentioning it provides a proper basis for setting forth such a violation. Mr. Jack Davis, for the Board. Mr. S. R. Zimmerman and Mr. Bernard M. Zimmerman, of Lan- caster, Pa., for the respondent. Mr. Isadore Katz, of Philadelphia, Pa., and Mr. Sidney L. Cahn, of New York City, for the Union. Mr. W. Hensel Brown and Mr. J. Hay Brown, of Lancaster, Pa., for the Independent. Miss Anne E. Freeling, of counsel to the Board. DECISION AND ORDER STATEMENT OF THE CASE On July 7, 1937, W. Curtis Yerger, district director of Textile Workers Organizing Committee, herein called the T. W. O. C., filed with the Regional Director for the Fourth Region (Philadelphia, Pennsylvania ) a petition alleging that a question affecting com- merce had arisen concerning the representation of employees of Stehli & Co. Inc.,2 of Lancaster, Pennsylvania, herein called the respondent , and requesting an investigation and certification of representatives pursuant to Section 9 (c) of the National Labor Relations Act, 49 Stat. 449, herein called the Act. On July 20, 1937,. Local 133, Textile Workers Organizing Committee, filed with the Regional Director charges alleging that the respondent had engaged in and was engaging in unfair labor practices affecting 2It appears from several documents submitted in evidence by the respondent that this is its correct name. STEHLI AND CO., INC., ET AL. 1399 commerce within the meaning of Section 8 (1), (2), and (5) of the Act. On September 11, 1937, the National Labor Relations Board, herein called the Board, acting pursuant to Section 9 (c) of the Act and Article III, Section 3, of National Labor Relations Board Rules and Regulations-Series 1, as amended, ordered an investigation and authorized the Regional Director to conduct it and to provide for an appropriate hearing upon due notice; and, acting pursuant to Article III, Section 10 (c) (2), and Article II, Section 37 (b), of said Rules and Regulations, further ordered that the represen- tation proceeding and the proceeding in respect to the alleged unfair labor practices be consolidated for the purpose of hearing, On October 20, 1937, Textile Workers Organizing Committee 3 filed with the Regional Director amended charges alleging that the respondent had engaged in and was engaging in unfair labor practices affecting commerce within the meaning of Section 8 (1), (2), (3), and (5) of the Act. On October 22, 1937 the Acting Regional Director for the Fourth Region issued a complaint alleging that the respondent had engaged in and was engaging in unfair labor practices affecting commerce within the meaning of Section 8 (1), (2), (3), and (5) and Section 2 (6) and (7) of the Act. Copies of the complaint, accompanied by notice of hearing thereon and by notice of hearing in the representa- tion proceedings based on the petition, were duly served upon the respondent, the Union, and the Independent Silk Workers Union of Rossmere, herein called the Independent, a labor organization which is described and discussed in Section III C below. The complaint alleged in substance (a) that in May, July, and September, 1937, the respondent dominated and interfered with the formation and administration of three named labor organizations and contributed financial and other support to them; (b) that on or about June 28, 1937, the respondent refused to bargain collectively with the Union as the exclusive representative of the respondent's employees in an appropriate unit; (c) that as a result of these and other specified unfair labor, practices, many of the, respondent's em- ployees went out on strike on or about August 9, 1937; (d) that the respondent discharged and refused to reinstate certain named em- ployees, and discriminated in regard to the hire, tenure, and condi- tions of employment of certain named employees, and refused to 3 The correct name of the local organization involved in these proceedings , as it ap- pears on the charter granted to it by the T. W. 0. C., is Textile Workers Union of Lancaster , Pennsylvania and Vicinity , Local #133, herein called the Union . It is made clear by the complaint, as amended during the hearing, that Verger, who signed the petition, charges, and amended charges , was acting on behalf of the T. W. 0. C., and more specifically , as is indicated in the charges , on behalf of Local 133. 1400 DECISIONS OF NATIONAL LABOR RELATIONS BOARD reinstate them to their regular employment, because of their mem- bership in and affiliation with the Union, and because they engaged in other concerted activities for their mutual aid and protection and for the purposes of collective bargaining; and (e) that by these and other specified acts and conduct, the respondent interfered with, re- strained, and coerced its employees in the exercise of their rights to self-organization and to engage in concerted activities for their mutual aid and protection. The respondent filed an answer to the complaint, dated October 27, 1937, admitting the allegations concern- ing its incorporation and business, but denying that it had engaged in the alleged unfair labor practices. Pursuant to notice, a hearing on the complaint and petition opened at Lancaster, Pennsylvania, on November 1, 1937, before Earl S. Bellman, the Trial Examiner duly designated by the Board. The hearing closed on December 15, 1937. The Board, the respondent, and the Union were represented by counsel and participated in the hear- ing. At the outset of the hearing, the Independent filed an answer to the complaint, denying in substance that the respondent had domi- nated and interfered with the formation and administration of, or had contributed financial or other support to, any of the three named labor organizations. On November 3, 1937, the Independent filed a written motion to intervene. This motion was granted by the Trial Examiner. This ruling is hereby affirmed. The Independent was represented by counsel and participated in the hearing. Full oppor- tunity to be heard, to examine and cross-examine witnesses, and to produce evidence bearing on the issues was afforded all the parties. During the hearing, counsel for the Board moved to amend the complaint by dismissing the allegations of discrimination against cer- tain named employees, and by adding allegations of discrimination against George D. Booth. The Trial Examiner granted these mo- tions.' At the close of the Board's case, counsel for the Board moved to amend the complaint to conform to the proof in all respects, and more particularly with regard to correcting the name of the Union and the names of individuals which were misspelled in the com- plaint. The Trial Examiner granted this motion only.. in so far as it related to correcting the name of the Union and the names of indi- viduals named in the complaint. During the course of the hearing the Trial Examiner made rulings on other motions and objections to the admission of evidence. The Board has reviewed the rulings of the Trial Examiner and finds that no prejudicial errors were com- mitted. The rulings are hereby affirmed. On February 28, 1938, the Trial Examiner filed an Intermediate Report, copies of which were duly served upon all the parties, find- ' See footnote 36, infra. STEHLI AND CO., INC., ET AL. 1401 ing that the respondent had engaged in unfair labor practices af- fecting commerce within the meaning of Section 8 (1), (2), (3), and (5) and Section 2 (6) and (7) of the Act. He recommended (1) that the respondent cease and desist from its unfair labor prac- tices; (2) that the respondent, upon request, bargain collectively with the Union as the exclusive representative of the employees in a unit found to be appropriate for the purposes of collective bargain- ing; and (3) that the respondent offer to reinstate in their former positions, and make whole for any loss of pay they may have suffered by reason of the respondent's discriminatory action, 15 individuals named in the complaint. The Trial Examiner further recommended that the allegations of the complaint that the respondent discrimi- nated against eight named individuals, thereby discouraging mem- bership in the Union, be dismissed. Thereafter, the respondent and the Union filed exceptions to the Intermediate Report. We have considered all the exceptions to the Intermediate Report, and, save as to those which are consistent with the findings, conclusions, and order set forth below, find them to be without merit. On March 14, 1938, S. R. Zimmerman, counsel for the respondent, requested that the Board grant him an opportunity to argue orally before the Board or to file a brief. The Board granted him per- mission to file a brief, but he did not avail himself of the opportunity. Upon the entire record in the case, the Board makes the following : FINDINGS OF FACT 1. THE BUSINESS OF THE RESPONDENT The respondent, Stehli & Co. Inc., is incorporated under the laws of the State of New York, and is registered to do business in Penn- sylvania, Virginia, Missouri, Illinois, and California. All the stock in the corporation is owned by members of the Stehli family. The officers of the respondent are Emil J. Stehli, president and treasurer, and Henry E. Stehli, vice president and secretary. The directors are Emil J. and Henry E. Stehli of New York City, and Robert Stehli of Zurich, Switzerland. Although the present corporation was organized in this country in August 1914, the Stehli family has been engaged in the silk industry in Switzerland since 1840 and in this country since 1880, at which time Stehli & Co. A. G., of Zurich, Switzerland, had a selling agent here. The business was later carried on as a partnership, with Emil Stehli in control of the oper- ations in this country. The respondent's first weaving mill in this country was established in Lancaster, Pennsylvania, in 1898. The respondent's main office is in New York City. Its principal plant, which is the only one involved in these proceedings, is in Ross- 1402 DECISIONS OF NATIONAL LABOR RELATIONS BOARD mere, just outside of Lancaster, Pennsylvania, and is referred to as either the Rossmere or the Lancaster plant. The respondent. also owns and operates throwing plants at Waynesboro and Harrison- burg, Virginia, and owns plants at High Point, North Carolina and Manheim, Pennsylvania, which it leases to other companies. The Rossmere plant is chiefly a weaving plant. The raw mate- rials used consist mainly of rayon and silk, but also include cotton, wool, and other miscellaneous yarns. The yarns are treated when necessary, and then woven into fabrics, which are transported to plants, some of which are within and others outside Pennsylvania,, for finishing and dyeing. They are then transported to respondent's New York office for marketing. In the period from October 3, 1936, to October 2, 1937, the Ross- mere plant received more than 3,200,000 pounds of rayon and more than 150,000 pounds of silk. More than 90 per cent of this rayon and silk is imported from China, Japan, Italy, Maryland, Virginia, Delaware, Tennessee, and West Virginia. During this period, about 60 per cent of all the raw materials shipped to the Rossmere plant were produced at the respondent's throwing plants in Virginia and at other plants outside Pennsylvania not owned by the respondent. During the same period, the Rossmere plant produced in excess of 12,000,000 yards of fabric, having a total sales value of approxi- mately $5,600,000, of which in excess of 11,080,000 yards, or more than 90 per cent, were shipped to dyers and finishers located in Virginia, North Carolina, New Jersey, New York, Rhode Island, Massachusetts, and Connecticut, from which points the merchandise was then transported to the respondent's New York office for market- ing. Approximately 6,000,000 yards of the respondent's products were sold to customers in New York City, 5,000,000 yards were sold and transported to customers throughout the United States, and about 100,000 yards were exported to customers in Cuba, Mexico, Australia, and Argentina. During this period, the respondent purchased through its New York office in excess of 1,000,000 yards of woven fabrics manu- factured in North Carolina, Virginia, Massachusetts, New Hamp- shire, South Carolina, and Tennessee, having a sales value of approx- imately $500,000. This merchandise was shipped to, and dyed and finished by, plants in New Jersey, Pennsylvania, Virginia, North Carolina, Rhode Island, and Massachusetts, and was then trans- ported to the respondent's New York office for marketing. In addition to the business described above, the respondent, through its New York office, purchased on consignment from the Swiss cor- poration, and sold throughout the United States, about 6,000 yards of finished silk. The respondent admits that it is engaged in interstate commerce. STEHLI AND CO., INC., ET AL. II. THE ORGANIZATIONS INVOLVED 1403 Textile Workers Union of Lancaster, Pennsylvania and Vicinity, Local #133, is a labor organization affiliated with the Textile Work- ers Organizing Committee, from which it received its charter on July 7, 1937, and which, in turn, is affiliated with the Committee for Industrial Organization. It admits to membership employees of the respondent. Independent Silk Workers Union of Rossmere is an unaffiliated labor organization, all of whose members are employees of the re- spondent at its Rossmere plant. III. THE UNFAIR LABOR PRACTICES A. Background The dominant characteristic of the respondent's labor policy for the past 39 years has been aggressive hostility toward labor organi- zations and, in particular, "outsiders," that is, affiliated labor organi= zations. This policy is made clear by the events and the respondent's conduct set forth below. Attempts were made as early as 1907 to organize the employees at the Rossmere plant. Assistant Manager Stauffer, who was a fore- man in 1907, testified that "In 1907 there was an effort on the part of the I. W. W.6 to organize our mill. They succeeded in a way. I don't remember how many members they had, but there was a com- mittee of about a dozen that came into the office to make certain demands upon Mr. Schneebeli, who was the manager at that time. And, of course, Mr. Schneebeli refused them, even without consulting New York. At least I don't think he consulted them at that time." Stauffer further testified that "of course, these people went out of the office and went out through the mill and called the people out . . . Then they did some picketing for several days . . . My recollec- tion is that perhaps one-third of them went out." The respondent, however, claims that during that strike its plant was picketed largely by "outsiders" rather than by its own employees. The result of this experience was to leave the respondent's officials and supervisory em- ployees, several of whom are still employed at the plant, with a strong feeling of hostility toward labor organizations. In 1934, United Textile Workers of America, Local No. 2083, herein called the U. T. W., called a general strike. The Rossmere plant was picketed during this strike by a few of the respondent's employees, but for the most part, the respondent claims, by "outsiders" who were sent to Rossmere from various parts of Pennsylvania. Joseph A. 6 Industrial Workers of the World. 1404 DECISIONS OF NATIONAL LABOR RELATIONS BOARD Wolf was the respondent's personnel manager at that time. His em- ployment was severed in March 1936, after 16 years' service with the respondent, but the respondent admitted at the hearing that his dis- charge was due entirely to a general retrenchment in expenses. Wolf testified that, according to instructions among the management, "We always tried to keep down a union of employees; that is, we would not hire anybody that we knew was affiliated with the union." He testified further that "I was always informed [by the general man- ager] that if the union would ever get hold on us we would lose our jobs, or I would lose my job as well as he would lose his job." This policy of repressing union activity was discussed from time to time by the manager, superintendents, and foremen, and, from remarks made to employees by these supervisors, inevitably became known to the employees throughout the plant. Sometime in 1933 or 1934, Wolf instructed William Albert, an employee, to keep him informed concerning membership of the respondent's employees in the U. T. W. Albert became secretary of the U. T. W. and was therefore in a stra- tegic position to obtain for Wolf the desired information, which Wolf in turn conveyed to the general manager and other officials at the plant. Albert was compensated for these activities by higher wages and other payments. There were only three U. T. W. members in Wolf's department on the first shift. Wolf did not discharge any of them for union activities, but when one of them, Ray Wiley, was sent home because the work ran out on his looms, Wolf did not later call him back to work because, "to be truthful, I guess because he be- longed to the textile workers." Wiley did not reapply for work because, Wolf stated, "I believe he knew he was not wanted to come back be- cause of his affiliation with the union." Several witnesses testified that five or six employees were discharged in 1934 for joining the U. T. W. Wolf had no personal knowledge of what action was taken in regard to U. T. W. members in other departments or on other shifts than his own. He did, however, state that he understood that those employees who went out during the 1934 strike were "taken back a little while afterwards, but not for the time being." The respondent's employ- ment records indicated that most of the men who were allegedly dis- charged in 1934 for union activities had quit on or about March 21 and had been reemployed the following October or November. The respondent's officials denied that certain "disturbances" about which a number of witnesses testified constituted "labor disputes." For example, the respondent, in November 1936, experimented with a new system whereby it would be able to reduce the number of its employees. After this experiment had been in effect for a few weeks, the weavers who were affected by the new system were able to earn more than they had earned prior thereto. The amount of their work, STEHLI AND CO., INC., ET AL. 1405 however, increased to a greater extent than they thought their in- creased earnings warranted. So much dissatisfaction resulted from this experiment that it was discontinued after a few months. In February 1937, the respondent reduced the rates paid to employ- ees operating certain looms. The result of this rate reduction was a stoppage of work by some of the weavers on the third shift, which was continued by the men coming in on the first shift. Huber, general manager of the plant, consented to discuss the matter with a few representatives of the employees who had stopped work. whereupon three of their leaders were selected. It was agreed that the matter should be adjusted by removing the shuttle fillers on the looms affected by the reduction in rates, the weavers to fill their own shuttles and re- ceive the original rates. George Booth, who was one of the leaders in this dispute, was discharged the next dayr His case is discussed below in Section III D 3. In spite of the labor difficulties set forth above, the respondent, al- though admitting that there were from time to time individual com- plaints and requests for wage increases, which were to be expected in the normal course of operations, denied that there had been any "labor disputes" at the plant, or any general dissatisfaction. Stehli 6 testified that it seemed to him that "a labor dispute must represent a few more than the regular kickers. In any one thousand employees you may have ten per cent who are kickers, or at least a maximum of ten per cent. Perhaps, sometimes, it is even less than that. There are always a few people who are dissatisfied with the whole situation. If those figures constitute a labor dispute that is one thing. If they do not, I say that Stehli would never have had a labor dispute." He testified further that he knew there was no general dissatisfaction at the plant since he had talked to about 15 or 20 employees, some of whom "had been with us so long that I knew some of them since I used to come down here as a fourteen year old kid . . . I would ask them if there was any dissatisfaction or kicking; and they said it was a lot of hooey." When asked if he had not heard "witness after witness take the stand and testify that the salaries they were earning at the Stehli mill did not enable them to live properly," he answered, "That is pretty facetious. I don't know why they want to come back to work, then." When reminded that a number of his employees had voted to insert into a proposed contract, which they presented to the respondent in June 1937, a provision for a 20-per cent increase, Stehli said, "Oh! that doesn't indicate anything . . . Of course, they would vote themselves a raise if they could get it. I would vote myself a raise on somebody's money if I got a chance." Several employees testified about statements made to them 6 Except where otherwise indicated , the Stehli referred to herein is Henry Stehl! 1406 DECISIONS OF NATIONAL LABOR RELATIONS BOARD at various times by supervisory employees, particularly during 1937, when the Independent was being organized, to the effect that the respondent would never recognize any "outside" union, that it would, in fact, prefer to close the plant and move south. Stehli frankly stated, both on the witness stand and in an advertisement in the local newspapers addressed to the respondent's employees during the 1937 strike, discussed below in Section III-C-3, his dislike for and opposi- tion to "outside', organizations. The above facts and other evidence in the record show that the respondent has consistently pursued a policy of imputing to "out- siders" its labor difficulties and dissatisfaction among its employees, and for that alleged reason has always resisted the organization of its employees in an affiliated union. That this was the policy of the respondent, and that it was known to the employees, is fully borne out in Section III-C-3 below, where it is shown that the respondent frankly stated its position for the past 39 years to have been one of opposition to dealing with "outsiders." B. Domination of and interference with the formation and administration of the Independent The complaint alleges that the respondent has dominated and inter- fered with the formation and administration of, and has contributed financial and other support to, three labor organizations of the em- ployees at its Rossmere plant, one in May 1937 known as Stehli In- dependent Silk Workers Association, one in July 1937 known as Inde- pendent Silk Workers Union of Employees of Stehli, Inc., and one in September 1937 known as Independent Silk Workers Union of Rossmere. On April 17, 1937, the members of the U. T. W. voted to affiliate with the T. W. O. C., which issued a charter to this local on July 7, 1937, designating it as Textile Workers Union of Lancaster, Penn- sylvania and Vicinity, Local #133. This organization will be called the Union with reference to its activities after April 17, 1937. On May 2, 1937, the T. W. O. C. held a general meeting of all the textile workers in Lancaster. Following this meeting a number of the respondent's employees joined the Union, although they were fully aware from the respondent's known hostility to outside labor organizations that the respondent would oppose any attempt to or- ganize an outside union in its plant. Shortly after May 2, a group of employees, headed by Ivan Reich, •a brother of Walter Reich, superintendent on the third shift, began the formation of an unaffiliated union. Ivan Reich has been em- ployed by the respondent as a loom fixer for the past 2 years, and was formerly a foreman for about 8 years. Reich testified that he STEHLI AND CO., INC., ET AL. 1407 and several other employees had frequently discussed the advantages of organizing an unaffiliated union, but they took no action in the matter until they were spurred on by the T. W. O. C. meeting on May 2. Several of the organizers who aided Reich testified that their purpose was "To protect ourselves and also protect the com- pany so we would have work." They wanted to obviate the pos- sibility of strikes, which might prevent the company from operating and filling orders "to such an extent that it would have to close down, or something like that." Some of the organizers testified that one of their main purposes was to keep out the T. W. O. C. They also thought that "If for no better purpose it would be for a social organization." Reich testified that he discussed the organization of an unaffiliated union with Beazley and Lerbscher, superintendents, although he knew he had the right to organize, because "My job is my job, the same as yours is yours. . . . I don't want to do anything out there against the firm." When asked why he felt it necessary to obtain permission from his supervisors to exercise a right which he knew he had, he said he could not answer that question. Beazley testified that when Reich and Edgar Norton, another loom fixer, first came to him to discuss organized labor in general, he told them he was in a position where he did not dare advise them what to do. Reich, nevertheless, came to him again some time in May, told him he in- tended to start an unaffiliated union, and asked him for some in- formation. Beazley then told him, "Ivan, I am not allowed to do that. You fellows must have brains enough, if you have looked into this thing, to go ahead and follow your trend of mind." Although it thus appears that he was told that the management could not interfere in such matters, Ivan Reich and some of the other or- ganizers nevertheless continued to discuss their organization from time to time with supervisory employees, and to report to them on their progress. We are satisfied that this feeling on the part of the organizers that they had to secure the respondent's permission to form an unaffiliated union sprang from their knowledge that the respondent was opposed to unions and that they would run less risk of losing their jobs if they kept their supervisors informed and secured their approval. Thus the respondent's hostility to unions was from the outset a primary factor shaping the formation of this inside union. On May 15, 1937, a meeting of all the employees at the Rossmere plant was called by Ivan Reich, at which about 300 were present. Reich had invited one Lightner, an attorney, to attend for the pur- pose of explaining the Act. Some of the questions asked Lightner pertained to whether it was permissible for Anne Wilson and Paul Moore, supervisory employees, to go around the plant during work- 1408 DECISIONS OF NATIONAL LABOR RELATIONS BOARD ing hours soliciting names on a petition for an unaffiliated union. It developed during the meeting that the majority of those present seemed to be in favor of a T. W. O. C. union rather than an un- affiliated union, to the extent, as Ivan Reich testified, that the meet- ing was "stolen" from him. There was so much controversy between the two groups that it was finally decided that they should elect a chairman for the meeting. The chairman designated two com- mittees of three members each, one composed of men who advocated a T. W. O. C. union, the other of men who advocated an unaffiliated union. The committees were instructed to sign up employees in their respective organizations. During this period of organization, those in favor of 'an inside union and those in favor of affiliating with the T. W. O. C. were active in the plant during working hours, but this was true to a far greater extent of those working on behalf of an unaffiliated union. Petitions indicating a preference for an inside union were circulated openly in the mill during working hours. Some of these petitions, moreover, were circulated by Paul Moore, who was in charge of the stockroom, and Anne Wilson, a forelady. The petitions were signed by several supervisory employees. After a number of employees had testified about statements made by supervisory employees en- couraging and, in some cases, urging them to become members of the unaffiliated organization, all the parties, in order to avoid calling numerous additional employees to testify to the same effect, stipulated that if called and sworn, six additional named employees "would testify that at various times from May until September or October 1937 they were spoken to by persons heretofore identified as fore- ladies and assistant foreladies in the warping and winding depart- ments and by Paul Moore, heretofore identified in the record as being in charge of the stock room, and that the said conversations would indicate that they were approached and spoken to in the plant relative to a so-called company union and membership therein." The loom fixers also preferred an unaffiliated organization, and several of them were active in the attempts to form one. The loom fixers' duties require them to keep in repair the looms in the sec- tions to which they are assigned. Although they do not have the power to hire and discharge weavers, they do have some supervision over their work. They are responsible for the quality of the work of the weavers under them to the extent that they are penalized or receive a bonus according to whether the work is below or above a certain standard. They report inefficient weavers to their superiors, and if a weaver's inefficiency continues, they may recommend his dis- charge. They are more highly paid than other classes of employees, since their work requires more skill and training. A number of these loom fixers, furthermore, were foremen until a few years ago, when, STEHLI AND Co., INC., ET AL. 1409 during a reorganization, the classification of foremen fixers was dis- continued. Many of the weavers continue to regard the loom fixers as their supervisors. The close identity of the loom fixers with the man- agement is further borne out by the fact that when the respondent sought to break the 1937 strike by soliciting the striking employees individually to return to work, it selected as its emissaries loom fixers and foremen, as is discussed more fully in Section III-C-3 below. Under all the circumstances, it is a reasonable inference that the loom fixers were acting as agents of the respondent in assisting in the organization of the Independent, and we so find. As is shown in Section III A above, during the period when the loom fixers were foremen, repression of union activity was one of the duties of supervisory employees. There is nothing in the record to show that the respondent changed this policy after the effective date of the Act. It appears, on the contrary, that that policy continued until the time of the hearing. Their closeness to the management, and their former status as foremen, made the loom fixers even more keenly aware than were the rest of the employees of the respondent's hostility toward affiliated labor organizations. Thus, even conceding that loom fixers were not formally agents of the respondent in assist- ing in the formation of the Independent, we nevertheless impute their acts and conduct to the respondent since the loom fixers engaged in such acts and conduct as a consequence and in furtherance of the respondent's policy of opposition to outside unions. The first of the three attempts to organize an unaffiliated union began in May 1937, shortly after the meeting of the textile workers called by the T. W. 0. C. This first organization was known as Stehli Independent Silk Workers Association. The attempt was un- successful inasmuch as officers were not elected and meetings were attended" for the most part only by the organizers. These organiz- ers about a month later sought to stimulate interest in their union by changing the name, this time calling it Independent Silk Workers Union of Employees of Stehli & Co. Inc., Lancaster, Pennsylvania, by issuing new membership cards, and by distributing a number of printed circulars urging the employees to support an inside organiza- tion. This second attempt was also unsuccessful and was abandoned after about a month, no one having attended the last meeting. Reich became discouraged and discontinued his efforts to organize an inside union. Clarence Davis, who has been employed by the respondent on and off since April 1900, and some of the other organizers per- severed in their endeavors and made a third attempt to organize an inside union shortly after the termination of the August 1937 strike, discussed below. This third attempt took place after the respondent had refused to bargain with the Union even though it represented a majority of its employees, as found in Section III-C below, as a 1410 DECISIONS OF NATIONAL LABOR RELATIONS BOARD result of which unfair labor practice the members of the Union had been demoralized, and also after the respondent had made it clear to all its employees that it would not deal with an outside union. Davis, who became financial secretary of the Independent, and some of the others who had been active in all three attempts to form an inside union, testified that the three organizations were really a continua- tion of one and the same organization. This third attempt received considerable impetus from a statement and ail advertisement which the respondent had had published in the local newspapers during the August 1937 strike expressing its willingness to negotiate with its own employees and its feeling "that it is unfair to deal with outside groups," 7 as well as from the numerous oral statements made by supervisory employees before, during, and after the strike to the effect that the C. I. 0. was composed of radicals, that John L. Lewis was a communist, and that the respondent would prefer to close the plant and move south rather than deal with an outside union.,, The guiding spirit of the third organization was George Witt- linger, an employee who began working for the respondent about 33 years ago, and has worked there uninterruptedly since 1919. As a result of their long service, Davis and Wittlinger were fully cog- nizant of the respondent's hostility to outside organizations. Witt- linger had the name of the organization changed once more, this time to Independent Silk Workers Union of Rossmere, with the hope of injecting new spirit into this renewal or continuation of the attempt to form an inside union, as well as for the purpose of eliminating "Stehli" from the name of the organization. Reich turned over to Wittlinger the membership cards which he had ac- cumulated. The first few meetings of this third organization were just as sparsely attended as were the meetings of its two predecessor organizations. Almost all those who attended these meetings, more- over, were loom fixers who had formerly been foremen. W. Hensel Brown, counsel for the Independent, or his brother, J. Hay Brown, customarily attended these meetings, and dismissed some of them because there were not enough people present to take any action. At a meeting on Sunday, September 26, however, the Independent was finally organized formally to the extent that some of the officers were elected. Harry Reyburn, an employee who was chosen presi- dent at this meeting, testified that a committee was appointed to call on Huber, general manager, the following day to ascertain the steps necessary to secure recognition as bargaining agent of the employees, and whether or not it would be worth their while to have a union of the kind they were trying to organize. William ' See Section III-C-3 , infra. s See Section III-C-3, infra. STLHLI AND Co., INC., 1T AL. 1411 File, an employee who was on this committee, testified that when the committee asked Huber "if we would be allowed to organize the independent union, if he had any objection ... He met it with approval." Wittlinger, who was also on the committee, testified that "Mr. Huber told us if we had a voting majority that they would sooner recognize their own individual employees' organization than an outside organization." 9 When Huber learned, however, that the Independent did not represent a majority, he told them it was his understanding that he could not, under the Act, recognize as col- lective bargaining agent an organization which did not represent a majority of the employees. However, he told them he would con- sult with counsel or Stehli to ascertain whether or not this was correct, and would give them a definite answer the following day. Huber told the committee on the following day that his under- standing had been verified and he could not recognize them until they had obtained a majority. There was another meeting of the independent group on October 9 for which invitation cards, made out in the names of those em- ployees who were to be invited, were distributed in the plant. Frank Zuercher, a member of the Union, testified that he attempted to go to this meeting, but was refused admittance. He,remained out- side the door, however, and watched those who entered. He testified that 38 persons, practically all loom fixers, entered. Again a com- mittee was appointed to call on Huber, since the Independent had secured more members, although it still did not have a majority. One reason why those who were organizing the Independent sent committees to Huber to "demand the collective bargaining agency for the workers," although they knew they did not represent a ma- jority, was because they had been told of a plant where an organi- zation representing a minority of the employees "had control, and we thought we could do the same thing." Another reason was that a Mr. Landis, who, although not an employee of the respondent, was assisting the organizers of the Independent, had advised them to seek a bargaining contract even though they did not have a ma- 0 The following testimony of Wittlinger indicates the extent to which the organization of the Independent was aided by Huber's encouraging statements : Q . . . When you went to Mr. Huber did he give his approval of your union? A Ile did not exactly give his approval. He told us that he would sooner deal with the individual employees than he would with an outside organization. He also stated that he would be glad, if I recall correctly , to meet representatives of the workmen at least once a month, or something to that effect. Q And after that you were satisfied to go out and build up this organization? A. Well, that was one reason , I guess, that we did all get more interested in it, I would say. Q. You told the members what Mr. Huber said? A. Naturally we told them. 1412 DECISIONS OF NATIONAL LABOR RELATIONS BOARD jority. Wittlinger testified,10 on cross-examination by counsel for the Board, that although he wanted the members of the earlier or- ganizations to sign new=cards in the Independent, nevertheless, when the committee told Huber during the conferences with him how many members the Independent had, all those who had signed cards in the earlier organizations were included. On redirect examination by Mr. Brown, Wittlinger was not sure whether they were all new cards or some that had been previously signed. However, when this last-mentioned committee called on Huber on October 11, 1937, he still refused to recognize the Independent as bargaining agent until it represented a majority of the employees. In the course of trying to organize an independent union, a num- ber of circulars and various membership cards were printed from time to time. The circulars urged the employees to join whichever one of the inside unions was being organized at the time and warned them against the dangers of affiliating with an outside union. Some of this printed material bore the name of Paul Moore, a supervisory employee, who was in charge of the stockroom, as a member of the organizing committee. This printed material was for the most part prepared by Reich and Wittlinger. William Albert, who had been of such great assistance to Wolf, when Wolf was the respondent's personnel manager, in maintaining surveillance of U. T. W. activi- ties in 1934, was able to utilize that experience by aiding in the formation of the Independent. For example, he helped to prepare the various application cards for the several organizations. Reich testified that lie personally paid for the printing and other expenses incurred in the first two attempts to organize, for which he was not reimbursed. Wittlinger testified that he paid out of his own pocket the printing and other expenses for the third organization, for which he was reimbursed on, October 23 out of the treasury of the Inde- pendent, which had been accumulated from donations. 10 Wittlinger 's testimony in this connection was as follows Q. At any rate , when you went to Mr. Huber later on you told him you had some 300 and some cards signed up? A. Yes. Q. And he, Mr . Landis , an outsider who was aiding in the organization of the Independent , suggested that you go in even though you did not have a majority and try to get a bargaining contract'? A. That was our instructions from him-to try it. Q And at that time these cards included cards of the first union as well as the second? A. Yes ; I believe it did. Q. And you were willing to consider all of these people who signed cards as members of the Independent Union of Rossmere? A. I did not suggest that they do that . I suggested that we try to get our new cards signed over by those people who had signed the others . Yet we showed Mr. Huber or told him how many cards we had ; and that is when he advised us that he would have to consult his attorney Q. And you told him bow many cards you had, and you included all of them? A All of them ; yes, sir. STEHLI AND Co., INC., ET AL. 1413 The printing for the Independent was done by Harry Althoff, who also does some printing for the respondent, mostly in connec- tion with a death-benefits association maintained by the respondent and the employees jointly. Althoff entered the items of work done for the Independent on the ledger sheets containing the respondent's account, but explained that this was done only to simplify his records. Two job jackets which he submitted in evidence, containing descrip- tions of certain work done for the Independent, contain George Wittlinger's name. The name, however, was obviously written in a different handwriting. Althoff explained that his handwriting usually varies when he is interrupted while writing something, and that he must have been interrupted in the case of both job jackets while he was writing Wittlinger's name. Althoff's testimony, on the whole, was contradictory and evasive. Although the evidence tends to indicate that the printing expenses of the Independent were paid by the respondent, since the evidence is not entirely clear, we will not so find. It appears that the T. W. 0. C. was trying to organize the re- spondent's other plants at about the same time as the Rossmere plant. Unaffiliated organizations also sprang up at the Waynesboro and Harrisonburg plants simultaneously with those at Rossmere. Negotiations pertaining to the independent union at Waynesboro were taken up by Arthur Shenk, manager of the Waynesboro plant, with the New York office through Huber, general manager of all three plants. Shenk testified that he was presented with petitions for an independent union containing the names of about 90 per cent of the employees. Stehli -testified in this connection that "The manager went out and asked about 20 people and said, `Do you belong to the Independent Union?', and from general information they found practically nobody who did not belong. So we took it for granted that the big majority belonged." The independent union at the Waynesboro plant was organized around May 1937, and suc- ceeded in being recognized by the respondent as the exclusive bar- gaining agent within about a month. After discussing the negotia- tions pertaining to the Waynesboro union, Stehli stated that "almost exactly word for word the same thing took place at Harrisonburg somewhat later." Stelili testified that he did not consider it neces- sary to make any investigation as to whether or not these organiza- tions had been aided in any way by the officials of the respective plants inasmuch as the managers of both plants "were instructed to have nothing whatsoever to do with unionism . . . towards the end of April or the beginning of May, 1937 . . . shortly after" the Act had been declared constitutional by the United States Supreme,Court. 164275-39-vol. xi-90 1414 DECISIONS OF NATIONAL LABOR RELATIONS BOARD It is clear from all the evidence that the respondent was opposed to any form of organized activity on the part of its employees. It is also clear that when the respondent became aware that the Union was organizing its employees, it decided that if it must tolerate any form of labor organization, an inside union would be the lesser of two evils. The fact that the, organizers of the inside union became active only after the Union had started its campaign; the strong feeling of the organizers of the inside union that they had to consult their superiors about their organizing activities; the active role in the formation of the inside union played by supervisory employees and loom fixers; the participation in the organization of the Independent of William Albert, whose attitude toward labor organizations is illus- trated by the respondent's employment of him to spy on U. T. W. activities; the encouragement given to the organizers of the inside union by Huber's statement that he preferred to deal with them rather than with an outside organization; the stimulus given to the organizers who, undismayed by the two previous failures, conducted the third campaign, by the respondent's unlawful refusal to bargain collec- tively with the Union, as found below, and by the published state- ments of the respondent during the strike, indicating beyond a doubt that it would negotiate, if at all, only with an inside organization; the assistance flowing from the numerous statements made to employees by supervisors expressing antagonism to any outside labor organiza- tion; the simultaneous formation of unaffiliated unions and their speedy recognition at two other plants of the respondent, of which Huber was also manager; and the various other circumstances dis- cussed in this section show unmistakably that the respondent has. coerced and interfered with the right of its employees to bargain col- lectively through representatives of their own choosing, and has stifled any outside labor organization formed for the purposes of collective bargaining, by the formation of an inside union which the respondent could dominate and control. When all these facts are viewed against a background of uncompromising hostility to "outsiders," a hostility well known to its employees and on which the respondent prided itself, there can be no doubt that the Independent was a creature of the respondent. We find that the respondent has dominated and interfered, with the formation and administration of the Independent, throughout its three phases, and has contributed support to it. We further find that, by such acts, the respondent has interfered with, restrained, and coerced its employees in the exercise of their rights to self-organization, to form, join, or assist labor organizations, to bargain collectively through representatives of their own choosing, and to engage in con- certed activities for the purposes of collective bargaining or other mutual aid or protection. STEHLI AND Co., INC., ET AL. 1415 C. The refusal to bargain collectively; interference, restraint, and coercion 1. The appropriate unit The complaint alleges that the employees of the respondent engaged in production and maintenance constitute a unit appropriate for the purposes of collective bargaining. The respondent admitted this allegation in its answer. During the hearing the Trial Examiner granted a motion by counsel for the Board to amend the complaint by striking therefrom the allegations with regard to the appropriate unit and substituting therefor the following: The employees of the respondent engaged in production and maintenance, with the excep- tion of office help, salesmen, watchmen, firemen, truckmen, executives, superintendents, foremen," assistant foremen, and those doing super- visory work, constitute a unit appropriate for collective bargaining within the meaning of Section 9 (b) of the Act. This amendment amplifies the description of the appropriate unit to conform with that designated in the Union's model contract. Counsel for the re- spondent stated that he had no objection to this amendment. 1.2 The unit set forth in the amended complaint is a normal industrial unit. The record discloses no reason for departing from it. We find that the production and maintenance employees, exclusive of office help, salesmen, watchmen, firemen, truckmen, executives, superintendents, foremen, assistant foremen, and those doing super- visory work, employed in the respondent's plant in Lancaster, Pennsyl- vania, constitute a unit appropriate for the purposes of collective bar- gaining, and that such unit will insure to the employees the full benefit of their right to self-organization and to collective bargaining and otherwise effectuate the policies of the Act. 2. Representation by the Union of the majority in the appropriate unit The respondent introduced in evidence a complete list of employees taken from its pay-roll records as of July 19 to July 31, 1937. All the parties agreed to the use of the respondent's pay-roll records as of these dates for the purpose of determining the number of employees in "Apparently the stenographer inadvertently omitted the word "foremen" in reporting the motion to amend the complaint. It is clear from the context of the motion as reported that "foremen " should have been in the list of exclusions from the unit since "assistant foremen" and "those doing supervisory work " are so listed . Moreover, in subsequent references in the record to the appropriate unit, "foremen " are regarded as excluded from the unit . Finally, the motion was made to conform the unit alleged in the complaint with the unit set forth in the Union ' s model contract , which lists foremen as excluded from the unit. 12 Although we regard the Independent 's contention as to the appropriate unit as irrelevant since we have found it to be company -dominated , its claim that the appropriate unit should consist of all employees except "salaried help" does not differ substantially from that claimed by the Union 1416 DECISIONS OF NATIONAL LABOR RELATIONS BOARD the appropriate unit. The list classifies the employees alphabetically by departments and contains a total of 1,093 names. After the re- spondent indicated on this list those whom it admitted to be super- visory or clerical employees, it claimed that the remaining 1,066 were in the appropriate unit. However, we find upon checking the list of 1,066 names that it contains the names of 37 employees 13 who are not within the appropriate unit. Accordingly we find that the respondent employed at its Rossmere plant 1,029 in the appropriate unit. The Union introduced its membership cards, with permission to withdraw the cards and substitute therefor a typewritten list of its members after the cards had been inspected and checked. During the hearing the respondent checked the names on the Union's membership cards against the respondent's pay-roll records, including its signature records. On the basis of this check, the respondent conceded that the Union had membership cards signed by persons who were employees of the respondent at the time the cards were signed, and that the signa- tures were genuine, to the extent indicated below : June 28---------------------------------------------------- 383 July 20---------------------------------------------------- 432 August 10-------------------------------------------------- 530 August 11-------------------------------------------------- 541 August 12-------------------------------------------------- 543 August 13-------------------------------------------------- 545 August 16-------------------------------------------------- 547 September 23----------------------------------------------- 548 According to this list, the Union had 530 members on August 10. We have checked the Union's membership list, however, and find that the Union on August 10 had 528 members. Moreover, we find that seven members of the Union are not within the appropriate unit.14 18 The names and positions of these employees are : Harry R Braught , supervisor of the fixers on the automatic looms , and substitute on any one of the three shifts in the absence of the superintendents and assistant superintendents ; Walter L. Shenk, who described his position as "sort of a loom fixer and overseer ... All over the mill, and sort of construction work," and who was formerly foreman of the sizing department in charge of all three shifts ; Paul H. Moore, in charge of the men working in the stock- room ; Elizabeth A. Gormley, Florence M Clegg , Dorothy P . Doner, Dorothy M . Flick, Sue E . Stoner, and Helen M . Wenger, foreladies ; Emma G. Manning , Mathilda G . Myers, Elizabeth V. Snader, Grace Smith, and Irene Kiehl , referred to by Huber as substitute or assistant foreladies ; Charles Steinbaecher , foreman of sundry help ; Clarence D. Davis, who works part of the time in the office ; Jacob G. Geist , Daniel D. Geist , John A. Gib- son, Alfred C. Schneider , William J . Steinbaecher , Frederick J. Messer , Jr., E. Reese Musser, and Clarence R. Doutrich , truck drivers ; Charles E . McElroy and John A. Frank, who weigh the materials that come from the copping machines and enter the weights on the coppers ' weight records , and who appear to be clerical employees and not production and maintenance employees ; Frank Zuercher , Vernon E. Martin , Frank E. Decker, Sol E. Logan, C. Quentin Myers, and Frederick Goos, clerks ; J. Willis Barr , Elias E . Coble, and Oliver S. Herr , watchmen ; William G . Kratzert , fireman and engineer ; and Arthur A. Smith , whose name was removed by stipulation inasmuch as he was employed for only 2 days. 14 The names and positions of these members are : Sue B. Stoner and Hazel Dagen, foreladies ; Mathilda G. Myers, a substitute or assistant forelady ; Charles Steinbaecher, foreman of sundry help ; Frank Zuercher , clerk ; Clarence R. Doutrich , truck driver ; and Oliver S. Herr, watchman. STEHLI AND CO., INC., ET AL. 1417 Thus, on August 10, the Union represented 521 of the 1,029 employees in the appropriate unit. Since our check of the lists shows that on August 9 the Union represented 511 employees in the appropriate unit, August 10 is the earliest date on which the Union represented a majority of the employees in the appropriate unit. The Independent introduced in evidence a list of its members, con- taining a substantial number, although not a majority, of the em- ployees in the appropriate unit. It appears from a comparison of this list with the Union's membership list that a number of the Union's members joined the Independent after August 10, 1937. None of the membership cards submitted by the Independent are dated prior to September 1937. In view of our finding, however, that the respondent dominated and interfered with the formation and administration of the Independent, we consider irrelevant any defection in the ranks of the Union which may have occurred subsequent to August 10 through its members joining the Independent. As we have had occa- sion to state with respect to a similar situation : The unfair labor practices of the respondent cannot operate to change the bargaining representative previously selected by the untrammeled will of the majority.15 We find that on August 10, 1937, and at all times thereafter, the Union was the duly designated representative of the majority of the employees in the appropriate unit for purposes of collective bargain- ing, and, pursuant to Section 9 (a) of the Act, was the exclusive representative of all the employees in such unit for purposes of col- lective bargaining. 3. Refusal to bargain; interference, restraint, and coercion (a) Events leading up to the strike On June 26, 1937, the Union held a meeting at which about 150 employees were present, at which a shop committee of about 18 mem- bers, representing the various departments at the respondent's plant, was selected. W. Curtis Yerger, subregional director of the T. W. O. C., read aloud a contract which was to be submitted to the respondent. The meeting approved it paragraph by paragraph, added a demand for a 20-per cent increase in wages, and authorized Yerger to present the contract to Huber. On June 28 Yerger had a conference with Huber and Stauffer. Huber claims that Yerger stated that he represented over 700 employees. Yerger's version is that he claimed that if an election were held, the Union would poll 15 Matter of Bradford Dyeing Association (U. S. A ) ( a Corporation ) and Textile Workers' Organizing Comm%ttee of the 0. I. 0., 4 N. L. R. B. 604. 1418 DECISIONS OF NATIONAL LABOR RELATIONS BOARD about 700 votes out of about 1,000 employees. Stauffer stated that it was impossible for the Union to have over 700 members since the Independent, which we find above to be company-dominated, claimed to have over 300 members, and some employees, because of their religious belief, would not join either organization. Stauffer stated at the hearing that at the time of this conference he had no direct information about the membership of the Independent, but had heard rumors that it had about 300 members, which rumors he apparently believed despite his statement, made at the hearing, that anyone working in the mill heard so much gossip that "you disbelieved 971/2 per cent of everything you heard until it was proven to you." Another reason for disbelieving this particular rumor was the fact that the organizers of the inside union, as is brought out in Section III B above, were at this time unable to induce more than a handful of employees to attend meetings. Yerger suggested an election, and it was agreed at this conference that that would be the best method of settling the question of a majority. Huber, however, had no author- ity either to negotiate an agreement or to consent to an election. He stated that he would have to consult Stehli, and would give Yerger a reply on July 2, 1937. Yerger notified the Board's Acting Regional Director in Philadelphia about this conference, whereupon the latter telephoned Huber and offered to send sample ballots and notices of election. When Huber telephoned Stehli about this conference with "out- siders," Stehli told him to check up on the membership of the inside union. Huber told Beazley, a superintendent who had been employed by the respondent since 1902, to do so, and testified that Beazley reported to him that the Independent had several hundred members and he was sure the Union could not have 700 members. When this information was conveyed to Stehli, he decided, according to his own testimony, that Yerger did not represent a majority of the employees, and that the respondent need, therefore, pay no attention to him, par- ticularly since Huber assured Stehli that there were no labor disturb- ances at the plant and these were "just outsiders who . . . are trying to get in to the situation." Stehli testified that Yerger wanted to bring in a group of people to discuss an election and there was nothing to discuss, since he was an outsider and there were no labor troubles. He further testified that he felt at that time that the Board should order an election, and that the respondent "should not run around and consent to one." He did not convey that idea to Yerger, however, but simply stated that the respondent had nothing to nego- tiate with him or his committee. Thus from the very outset the respondent's hostility to the Union as "outsiders" was made manifest STEHLI AND CO., INC., ET AL. 1419 and was the reason for the respondent's continuous procrastination throughout its negotiations with the Union. Yerger testified that on July 2 Huber told him on the telephone that he agreed to an election. Thereupon Yerger made arrangements with agents of the Board for an election to be held on July 12. On July 6 Huber received a letter from the Regional Office containing sample ballots and notices of election. On July 7 the Regional Office telephoned Huber and suggested a conference concerning the election. Huber agreed to hold such a conference the following day, and agreed to permit Yerger to attend. When Huber telephoned the respond- ent's New York office to report about this proposed conference, how- ever, Emil Stehli told him that he had acted too hastily, and that he wanted to consult counsel before any step was taken regarding an election. Thereupon Huber telephoned the Board's Regional Office and, on the same day, wrote to it that "the proposed consent election and the conference ... will have to be deferred indefinitely because this matter will have to be given further consideration by our New York Office. . ." Stehli denied that Huber had consented to an election since he had not been authorized to do so. Huber also denied it, explaining that when he referred in his letter to "the proposed consent election," he meant "the proposition of the election" that had been made by agents of the Board. Sanville, a Field Examiner of the Board, notified Yerger about Huber's letter. The Regional Office wrote to the respondent on July 8, 1937, notifying it of the petition for an investigation and certification of representatives which had been filed by the Union. Huber sent the letter to New York, but both Stehlis were away. Huber answered the Board's letter on July 14, stating that the respondent could not understand about the petition, since they were "convinced that no dissatisfaction exists among our employees except such as is sought to be generated by outside organizers." Both Yerger and Sanville continued to communicate with Huber and to urge him to try to prevail upon Stehli to consent to an election. They also urged the desirability of having Stehli come to Lancaster to discuss the situa- tion. Huber's answer on each occasion was that he had not yet heard from New York, but would call again and let them know. At Stehli's suggestion, Sanville came to Lancaster on July 21 and checked the ,respondent's pay roll against the Union's membership cards. When questioned by the respondent about the results of this check, Sanville stated that it showed that the Union had a substantial membership, sufficient to justify the respondent's consent to an elec- tion. The respondent resented Sanville's failure to reveal the exact results of his investigation. On July 28 Johnson, another Field Ex- 1420 DECISIONS OF NATIONAL LABOR RELATIONS BOARD aminer, wrote to the respondent requesting its consent to an election since the check showed that the Union had an extensive membership justifying the holding of an election. Stehli received this letter in New York on Friday, July 30. After a telephone conference with S. R. Zimmerman, counsel for the respondent, who was vacationing in Massachusetts, Stehli sent to Huber on Monday, August 2, a memorandum suggesting that Huber write to the Regional Office in accordance with an enclosed draft of a letter, if he agreed with it, as promptly as possible, and otherwise telephone him. The letter stated that the respondent was agreeable to a discussion of an elec- tion with agents of the Board, but not with the Union, because the respondent felt that the Union did not represent a majority. Huber received this memorandum and letter on August 3. On the same day Sanville telephoned Huber from Yerger's office and again urged him to try to prevail upon Stehli to agree to an election. Yerger had received word that day that the T. W. O. C. was planning to call a general strike on August 9, and had conveyed this informa- tion to Sanville, who told Huber about it, adding that if the re- spondent agreed to an election before August 5 it would be excluded from the strike. When Huber telephoned the New York office and told Stehli about this conversation, Stehli was very irate and, accord- ing to his own testimony, told him "not to send that letter because at the moment we are under threat of strike. When we have been notified of that strike by a representative of the National Labor Relations Board we, do not feel that we have to answer them so promptly or so courteously, and that we would better wait to see what happens before we do anything. And Mr. Huber acceded heartily to that idea. So that letter was never sent." On the morning of August 4, Sanville telephoned Stehli directly and told him about the strike which was imminent and which the respondent could avert by agreeing to an election. Stehli told him that he would have to consult his attorney, and would give him an answer that afternoon. When Sanville called again that afternoon and asked if he had made up his mind, Stehli's answer was, as he himself testified : Yes, we have. We have made up our mind we feel you would do us an enormous favor if you leave the situation alone. We have been able to get along with our people 39 years in Lan- caster, and why you have mixed up in it and got them all excited, we don't understand. We wish you would go away and let us alone. Secondly, under threat of a strike we will not consent to an election and will not consent to anything until we have had our little strike to see how our people feel. But won't you please go away and please stay away? STEHLI AND CO., INC., ET AL. 1421 Stehli further testified that when Sanville told him that "he was only trying to be helpful, that he was only trying to avoid this terrible thing called a strike, "Stehli simply repeated that he wished Sanville would go away and stay away. Sanville also told Stehli that charges of unfair labor practices 16 which the Union had filed against the respondent would be withdrawn if the respondent would consent to an election. Stehli told him that he absolutely would not consent to an election, although he did agree that if the Board ordered one, he would permit it to be conducted. Counsel for the Board, summing up Stehli's testimony, asked "You have testified that you did not want an election and that you did not want any outsider, or labor organization coming in and you did not want the Board to come in; and we fully understand that. Is that correct?" Stehli answered "That is right." Sanville telephoned Yerger and told him about these conversations. Stehli testified that after his telephone conversations with Sanville he had no further participation in this situation except to order a curtailment of the orders of yarn until the respondent saw what happened on the following Monday, August 9. As a matter of fact, Stehli at this time preferred that the Union should call a strike because he thought that a strike "would be a good way to find out in a day or so how many people there were who wanted to strike and how many wanted to join the C. I. 0." Stehli, furthermore, did not at this time desire to avoid the strike since he was "under the belief it would be a joke." Although he admitted that the strike was far more extensive than he had expected, he stated that, even looking at it in retrospect, he did not regret that he had not sought to avoid the strike "because we would not have found out that way what was really the situation." Moreover, Stehli and several other textile manufacturers had decided, at a luncheon meet- ing, that a strike would be the best means of determining "what progress the T. W. 0. C. had made," and he felt that "if they were all going to listen to the music and see what progress the T. W. 0. C. had made, we would all sit down and see it together . . . There was one particular case of an employer in New York who signed up on Friday afternoon with the T. W. 0. C., and amongst us at the luncheon table he has been very freely criticized for preferring to run out and gain an advantage on us. That did not seem sportsman- like or decent." As was inevitable, the respondent's attitude toward the Union did cause a strike. The Union and the shop committee met regularly on 16 The charges at this time alleged that the respondent had violated Section 8 (1), (2), and (5 ) of the Act. 1422 DECISIONS OF NATIONAL LABOR RELATIONS BOARD alternate Saturdays. At the union meeting on Saturday, July 31, the sentiment of those present was strongly in favor of calling a strike. There had been talk of a strike for some time past; in fact, a strike had been expected for several weeks. At the union meeting on July 31, the employees expressed many reasons for their deter- mination to go on strike : the respondent's refusal to negotiate with their representatives or to consent to an election ; dissatisfaction with "wages, hours, working conditions and machine load"; the respond- ent's formation of an inside organization; and the respondent's general attitude of antagonism toward the Union. Their feeling was summed up in the testimony of Thomas Sechrist, secretary- treasurer of the Union, who said he had discussed the possibility of a strike with people employed throughout the plant for a period of a month or more prior to the strike to ascertain the general sentiment in regard to a strike because "I thought we were going to have a very difficult time with the company, that is, that they would use every method they could use to break the organization, and that it would be, as I would call it, a hard job to even to get them to recog- nize an organization." Yerger was present at this meeting, and argued against their going on strike because he doubted that a suffi- cient number of employees would cease work to make the strike effective. The shop committee was authorized at this meeting to act on all matters arising between union meetings. At the shop committee meeting on Saturday, August 7, a telegram from the T. W. 0. C. announcing a general strike throughout the textile industry, to be called on Monday, August 9, was discussed. It was not necessary that the Union participate in this general strike, nor was the decision of the shop committee to go on strike a result of the telegram. The Union had decided to strike independently of it, but thought its cause might be strengthened if it called a strike at the same time as the general strike. The members of the shop com- mittee voted against taking their problems to the Board because they feared that any further delay in this matter would give the unaffili- ated union which was being organized, and which they were con- vinced was a company-dominated union, too great an opportunity to obtain a strong foothold in the plant. The employees were notified by word of mouth about the strike over the week end and on Monday morning. The walk-out started at 10 a. in. on Monday, August 9. The effectiveness of the strike far surpassed the expectations of the respondent. Before the strike there were 1,081 employees on the three shifts, whereas on August 9 there were only 707, on August 10, 432, and on August 11, 372. The effectiveness of the strike may be further indicated in terms of looms. Before the strike the respond- STEHLI AND CO., INC., ET AL. 1423 ent had 1,764 looms running on the three shifts, whereas it had 741 on August 9, 504 on August 10, and 462 on August 11. Stehli denied that even this strike, which brought production almost to a standstill, was a "labor dispute" since "We had no complaints from our em- ployees. They just walked out." At this point it is "necessary to determine whether or not the strike was caused in whole or in substantial part by the respondent's unfair labor practices. The facts set forth above show, and we find, that the strike was caused at least in substantial part by the respondent's unfair labor practices, namely, its policy of open hostility to the Union as an "outside" organization and its contemptuous treatment of the Union for that reason, even to the extent of preferring a strike to cooperating with the Union to determine the majority question; its policy of repression of union activity; and its domination of and interference with the formation of an "inside" organization.17 (b) The refusal to bargain The complaint alleges that the respondent refused to bargain with the Union on June 28, 1937, and thereafter. We have found, how- ever, in subsection 2 above, that the Union did not represent a majority in the appropriate unit on June 28, and did not in fact represent a majority until August 10. On Tuesday, August 10, the second day of the strike, Sanville called on Huber and told him that if the respondent would consent to an election, the strike would be called off immediately. Huber telephoned Stehli and informed him of Sanville's proposal. Stehli told Huber to accept the proposal. Upon being informed of Stehli's response, Sanville went to the picket line outside the plant and told Yerger and a group of the strikers that Stehli had agreed to hold a consent election if the strike was called off immediately. Yerger and the group of strikers, however, were not content to give up the strike on the basis simply of the respondent's agreement to the holding of a consent election. They felt that they were winning the strike, since the plant was practically closed down, and desired that before they called off the strike, the respondent, in addition to consenting to an election, should agree that if the Union won the election the re- spondent would bargain with it in good faith and would enter into a written agreement. Sanville went back to Huber and told him that the Union was not content to give up the strike on the basis of an agreement by the respondent to a consent election. It was arranged that Sanville should return with a committee of the strikers 1^ See National Labor Relations Board v Remington . Rand, Inc., 94 F. (2d) 862, 872 (C. C. A. 2nd), certiorari denied, 304 U. S. 576. 1424 DECISIONS OF NATIONAL LABOR RELATIONS BOARD to discuss matters with Huber. This was done. The committee con- sisted, in addition to Yerger, of five of the respondent's employees, namely, Yarnall, Sheneman, Ira Kendig, Ada Pyle, and Charles Ebersole. After the conference began, Yerger sent someone to his office for copies of a model contract. This contract was in mime- ographed form and contained various blank spaces to be filled in. It contained a closed-shop provision, and a wage scale was appended to it. Huber and Assistant Manager Stauffer, who was also present at the conference, looked over the contract and stated that the re- spondent would never agree to a closed-shop provision or to certain other provisions. The union representatives assured Huber and Stauffer that these provisions were all subject to negotiation. Since, however, Huber was not authorized to negotiate the terms of an agreement or even to discuss changes in the model contract pre- sented by the union representatives, the union representatives re- quested again, as they had requested several times previously, that Stehli, or someone with authority to negotiate an agreement, come to Lancaster to confer with them. Huber would not ask Stehli to come to Lancaster. He did, however, finally consent to telephone Stehli and inform him of the Union's proposal. Huber told Stehli that a new proposal had been made-that the Union would call off the strike if the respondent would agree to sign the contract which had been presented to Huber, should the Union win a consent elec- tion. Huber further gave Stehli to understand that this proposal had been made by Sanville, and not by the respondent's own em- ployees. This information thus imparted to Stehli by Huber was erroneous in two respects, namely : (1) the proposal had not been presented by Sanville, but by a committee of the respondent's strik- ing employees, and (2) the proposal was not that the respondent agree to sign the model contract, without negotiation concerning its provisions, but that the respondent agree to bargain in good faith and negotiate an agreement on the basis of the model contract which had been presented, if the Union won a consent election. Although Huber and Stauffer testified that the union representatives demanded that the respondent agree to sign the model contract if the Union won the consent election, we find persuasive the testimony of the union representatives, that they requested the respondent only to agree to bargain in good faith and to negotiate an agreement if the Union won a consent election. The respondent is responsible for the fact that the union committee's proposal was erroneously conveyed to Stehli by Huber. As a result of this misinformation, Stehli, who learned for the first time at the hearing that the proposal had in fact been made by a STEHLI AND CO., INC., ET AL. 1425 committee of the respondent's employees and not by an "outsider",17a rejected the proposal in the strongest terms. He testified that: I must admit I got very cross with Mr. Huber for even sug- gesting such a thing and said that was the most unfair and despicable thing I ever heard of, and I wouldn't hear to anything like that, and they could just plumb go straight to the devil. And I said it a little stronger than that . . . I said, "Please deliver that message to Mr. Sanville." Huber conveyed Stehli's reply to the union representatives, and the conference ended with a statement by Yarnall that "the strike is still on." A copy of the model contract was left with Huber to be mailed to Stehli. The respondent contends that it did not refuse to bargain with the Union on August 10, and thereafter, because the Union did not prove to the respondent that it represented a majority of the employees. On August 10, however, more than 600 employees, a clear majority, were out on strike, and on August 11, more than 700 were out on strike. Thus the respondent was on notice that the situation had changed since July 21, when Sanville had checked the union membership cards against the respondent's piy roll. Certainly the fact that a clear ma- jority of the employees were on strike, particularly when a strike was the method of testing the Union's strength and representation pre- ferred by the respondent, indicated to the respondent a strong likeli- hood that on August 10, and thereafter, the Union represented a ma- jority of the employees, even if it had not represented a majority on July 21. Indeed, Stehli admitted that the strength of the Union as shown by the strike far surpassed his expectations. And, as we have found above, on August 10 and thereafter the Union actually repre- sented a majority of the employees in the appropriate unit. We are of the opinion that when a union has called a strike, as a result of which more than a majority of the employees stay away from work, and, at a time when it has actually been designated bargaining repre- sentative by a majority of the employees in the appropriate unit, 174 Stehli 's testimony in this connection was as follows • A. They did not want to discuss anything on August 10th. They plumped that contract down and said , " If we win the election you sign that contract," and we said, "Nothing doing." Q. And that is the testimony you gave? A. That is the information Mr. Huber gave to me on the afternoon of August 10th. Q. You have sat here and heard witnesses testify to other things said there. One of the other things was that they asked to please have Mr. Stehli come here and sit down and discuss this contract with them . Is that a fact? A. I don't know how that message came to me, but it was never told to me that people other than Mr. Sanville were in the office on the afternoon of August 10th. That I did not know. 1426 DECISIONS OF NATIONAL LABOR RELATIONS BOARD requests the employer to bargain with it, the employer is under a duty to do so, and cannot be relieved of his duty to bargain forthwith be- cause he may have doubts concerning the Union's majority represen- tation, unless he requests proof of the Union's majority and proposes a reasonable method for its ascertainment. The respondent did not fulfill its obligations. Its willingness on August 10 to consent to an election was conditional on the immediate termination of the strike. This required the Union to give up the strike in return for the re- spondent's cooperation in determining the Union's representation, and could be rejected by the Union as unreasonable since it was entitled to the respondent's cooperation without giving up the strike. The proposal that the strike be called off upon the respondent's consent to an election was not made by the Union, but by Sanville, a third party interested in settling the strike and the matters in dispute. Thus when the Union rejected the proposal, it was the respondent's duty to bar- gain with the Union, or, if it had any doubts concerning the Union's majority representation, to propose a reasonable method, not condi- tioned on the Union giving up the strike, of proving such majority. The respondent did neither. Instead, two officials of the respondent, without authority to bargain or negotiate for the respondent, discussed the union committe's proposal that the respondent agree to bargain in good faith and negotiate an agreement if the Union won a consent election, then seriously misinformed Stehli of the proposal, which was followed by an irate rejection of the proposal by Stehli, who had refused to come to Lancaster himself or to authorize anyone else to act for the respondent. We find that on August 10, the respondent refused to bargain collectively with the Union as the representative of the respondent's employees. We also base our finding on a ground independent of the one set forth above.. The proposal of the union committee contemplated a reasonable method of determining the Union's majority and attached no unreasonable conditions. The Union agreed to call off the strike and merely asked that the respondent agree to do what it was required by law to do, namely, cooperate with the Union in determining the Union's representation and bargain in good faith to reach an agree- ment if a majority representation by the Union was proven. The union committee's request that the respondent agree to bargain with it in good faith if it proved its majority was not an idle request, even though this duty was imposed upon the respondent by law, in view of the respondent's unfair labor practices preceding August 10, and the unwillingness of Stehli to come to Lancaster himself to deal with the Union or to invest Huber or anyone in Lancaster with authority to deal with the Union. The respondent is responsible for the fact that the union committee's proposal was erroneously con- STEHLI AND Co., INC., ET AL. 1427 veyed to Stehli by Huber, and Stehli's irate rejection of the pro- posal, as conveyed to him by Huber, was- a rejection of the Union's proposal, which provided a reasonable method of determining the majority. This refusal to cooperate in establishing the Union's right to represent its employees in the appropriate unit constituted a re- fusal to bargain with the Union as the designated representative of the respondent's employees. Independently of the grounds stated above, we are convinced that the respondent's refusal to bargain with the Union on August 10 was not motivated by any doubts concerning the Union's majority repre- sentation but by its long-established policy of opposition to "out- siders", and therefore to the Union, and by a determination not to recognize or deal with the Union. We have found above that the dominant characteristic of the respondent's labor policy for the past 39 years has been aggressive hostility toward outside unions, that at the very outset of the negotiations with the Union the respondent made manifest to the Union its hostility to it as an "outsider." The subsequent course of its dealings with the Union reflects that policy. There can be no doubt from Stehli's testimony that the angry lan- guage in which he couched his rejection of the union committee's proposal on August 10, as conveyed to him by Huber, was due in substantial part to the fact that he thought the proposal had been made by an "outsider" and not by his own employees. During the course of the 3 days following August 10, as set forth below, this policy of opposition toward the Union was openly announced and openly used to coerce the employees into repudiating the strike, and on August 12 and 13 the respondent, in newspaper advertisements to its employees, set forth below, frankly stated that it deemed it "unfair to deal with outside groups" and that "it must resist" the T. W. O. C. "in fairness" to its employees and to itself. No other conclusion can be drawn from the respondent's course of conduct than that from the outset it had determined to resist and destroy the Union and that in the execution of this policy it utilized such dilatory tactics and technicalities as it found available. We are convinced that the respondent's conduct on August 10 was in no way motivated by any doubts as to the Union's majority representation, but was part and parcel of a deliberate policy and plan based on the rejection of the principle of collective bargaining. For this reason we find that on August 10, 1937, the respondent refused to bargain with the Union as the representative of the respondent's employees in the appro- priate unit. On Wednesday, August 11, the third day of the strike, Lerbscher, a superintendent, during his regular telephone conversation with the respondent's New York office about shipments, discussed the strike 1428 DECISIONS OF NATIONAL LABOR RELATIONS BOARD with Robert Frick, head of the respondent's manufacturing depart- ment, and explained to him that he had been told by Huber that the Union had the day before presented a proposed contract containing a closed-shop provision and a request for a 20-per cent increase in wages. Frick told Lerbscher that Stehli would not agree to the first of these provisions and could not grant the second, and gave him permission to convey this message to the employees when he paid them off the following day, Thursday, the regular pay day. Follow- ing this conversation, Lerbscher and Huber, with Stehli's approval, called together the foremen and loom fixers on the first shift, most of whom came to work during the strike. They were told to go out and contact the weavers and request them to return to work, one of the inducements for returning to work being that they could have the same looms if they returned that week, but thereafter the looms would be given to those who applied first. Huber also told them that Mr. Stehli would never sign a contract containing a closed-shop provision. Stehli testified that when he had heard that the Union was asking for a 20-per cent increase in wages, he had "announced in no mean terms so that the people could hear it that if a raise of 20-per cent went through the mill . . . it would be impossible to pay it." He had notified Huber and some of the other officials at the plant, both before and after the strike, that if the respondent had to grant a 20-per cent, or even a 10-per cent, increase, it could then buy the goods more cheaply than it could weave them in its own mills. Huber repeated these statements to the foremen and loom fixers. He also pointed out that during the strike the respondent had to send some of its work to other mills in order to fulfill its con- tracts, so that, while its weavers were losing wages, employees in plants not closed down by the strike would have that work. One of the loom fixers who was present testified that Huber "said they cannot move the plant south but he said they can get the work that is in the looms woven by another concern." Lerbscher told them "that if the C. I. O. would win, no doubt Mr. Stehli would just be a converter instead of a manufacturer and buy the goods wherever he could get them the cheapest, and no doubt this would be from mills running in the South." When Beazley came in on the second shift, the foremen and loom fixers on that shift were called together for the same purpose. Although the foremen and-loom fixers were told to solicit the employees who were at home, they were not specifically told not to solicit those on the picket line. As a matter of fact, they solicited all the employees who were not at work, regardless of whether they were at home or on the picket line. Although they were not instructed to repeat to the employees what they had been STEHLI AND Co., INC., ET AL. 1429' told by the management, they did repeat it. Furthermore, there is ample evidence that the foremen and loom fixers, in their endeavors to carry out the respondent's bidding, told some of the employees that the respondent would never sign any contract with a C. I. O. union, and that, rather than recognize a C. I. O. union even if it obtained a majority, the respondent would move the plant south. Huber admitted that he knew some of the employees were reporting that the mill would be closed, the plant moved south, and that the respond- ent would never sign with a C. I. O. union, but he apparently did not see fit to issue a denial of these statements, although they were made by men authorized to act on behalf of the respondent. When Lerbscher paid the men on Thursday, he had them come in individually so he could talk to them and tell them that their looms would be held open for them only the rest of the week, and then would be given to whoever applied first. On Thursday, August 12, the respondent issued the following statement which was published in one of the local newspapers : The Stehli plant will be kept open for all employees who de- sire to work., The company pledges itself to do everything within its power to safeguard those who desire to go about their usual daily labor. The company is ready and willing to sit down with representa- tives of its employes and talk over any difference of opinion which may exist. This is not new. It has been the policy of the company for 39 years and will remain so. The Stehli company feels that it is unfair to deal with outside groups. It feels that in adopting this policy it is wholly within the letter and spirit of the Wagner Act. There was no unrest, no dissatisfaction among employees prior to the time CIO came in and instituted the present strike. There have been no demands, no complaints from any of our own employes. The company agreed with a representative of the National Labor Board that an election should be held among the employes to determine which group should represent the workers. Half an hour later the CIO opposed the election unless the company was willing to sign an agreement which automatically was to become effective after the election. The company refused to sign such an agreement. Had it done so there would have been nothing to negotiate, no basis for collec- tive bargaining. [Italics supplied.] Huber assisted in the preparation of this statement and stated that "it was perfectly presenting our feelings at _that time." 164275-39-vol. xi-91 1430 DECISIONS OF NATIONAL LABOR RELATIONS BOARD On the following day the respondent inserted a full-page advertise- ment in the two local newspapers. The advertisement was to the same general effect as the above statement, but contained the following introduction : A STATEMENT To the Public and to All of Our Employes At the present time the Stehli & Co., Inc., Silk Mill at Rossmere has curtailed production because of a strike among some of its employees, instigated and called at the instance of representatives of the Textile Workers Organizing Committee, associated with C. I. O. Because of that situation we are prompted to make this statement to the community of which we are a part. and the following concluding paragraph : ... In fairness to the great body of its employees and to itself it must resist influences which it believes to be opposed to the last- ing welfare of either. In support of this policy it will continue to keep its plant open for all employees who desire to work. This is not new. It is a policy that has endured for 39 years and is unchanged now. [Italics supplied.] Stehli, who testified that he was personally responsible for the adver- tisement, stated that the "influences" mentioned in the newspaper advertisement as threatening the welfare of the respondent and its employees referred to the T. W. O. C., as indicated by the first para- graph of the advertisement. He stated further that the respondent's policy in regard to "outside groups" is exemplified by the statement and advertisement. Stehli explained that the respondent announced in the statement and advertisement that no demands or complaints had been made by its employees because he thought that the proposed contract was presented on August 10 by "outsiders." Even when in- formed during the hearing that the proposed contract had been pre- sented by a committee of his employees, Stehli said it "was certainly a very phony demand, if I ever saw one." The statement and adver- tisement necessarily had the effect of discouraging membership in the Union and, by indicating the respondent's preference for an inside union, of encouraging the organization of the Independent. Sanville, Yerger, and Yarnall continued their efforts during the strike to obtain the respondent's consent to an election and an agree- ment of some sort that would also be agreeable to the strikers. They encountered the same barrier, however, of having to deal through intermediaries lacking authority and over the long-distance telephone. They requested a number of times that Stehli come to Lancaster and STEHLI AND Co., INC., ET AL. 1431 discuss this matter with them, feeling that if any agreement were reached, it would then be effective. Stehli, however, chose to ignore these requests. Sanville wired Stehli on August 17 that if he would reinstate the strikers without discrimination, the Union would consent to an elec- tion. A great many of the strikers had by this time been induced by the respondent to return to work, although the Union had not issued any formal order that the strike was ended. There was no reply to this telegram. On or about August 20, Sanville called on Zimmerman, counsel for the respondent, to discuss the situation. Zimmerman testified that he told Sanville at that time that "the strike was over and the em- ployees were back at work and there was no longer any trouble out at the plant. And . . . there wasn't any occasion to do anything further at the moment, as I saw it, but just let matters take their course." , On about September 8, a volunteer committee of union members went to see Huber to request that all the striking employees be rein- stated to the positions they held before the strike. The respondent, however, thought that the employees who returned first during the strike and were given jobs on the first and second shifts were entitled to retain them, in preference to the striking employees who returned later to ask for their jobs, even though, in some cases, they had worked on the first and second shifts for many years before the strike. On October 7, Davis, an attorney for the Board, wrote to the re- spondent advising it of the complaint, based on charges filed by the Union, which the Board was about to issue" against the respondent, and requesting a conference in regard thereto. After further cor- respondence and telephone conversations, in the course of which Davis urged Stehli's attendance, it was arranged that a conference should be held on October 22 at the Board's Regional Office in Philadelphia. Stehli did not attend. Zimmerman and Huber rep- resented the respondent. After considerable discussion, during which it became obvious that no agreement was going to be reached, one of the union representatives finally suggested that the respondent at least recognize the Union as the representative of its own mem- bers, but Zimmerman refused to agree to this. Zimmerman suggested an election, but the representatives of the Union refused to consent to it at this time. The conference ended thus. On October 29, Yerger sent by registered mail to Stehli, Huber, and Zimmerman, a letter offering to prove that the Union repre- sented a majority of the employees and requesting a conference and negotiations to avoid a public hearing on the complaint. Yerger received no reply. 1432 DECISIONS OF NATIONAL LABOR RELATIONS BOARD Concluding Findings An examination of the documentary evidence and the many hun- dreds of pages of testimony reveals the following facts : 1. That the strike beginning on August 9, 1937, was caused at least in substantial part by the respondent's unfair labor practices. 2. That on August 10, 1937, the respondent refused to recognize or bargain collectively with the Union. 3. That the above refusal to bargain collectively was a primary factor in the prolongation of the strike. 4. That throughout the negotiations which took place after August 10, 1937, the respondent adhered to its long-established policy of not bargaining with an "outside" union, and steadfastly refused to bar- gain collectively with the Union. That such refusal to bargain collectively was a continuing factor in the prolongation of the strike. 5. That the respondent refused to bargain collectively with the Union in good faith. This is clearly disclosed by the respondent's dilatory tactics, by its policy of opposition to an outside union, by its failure to place in charge of the negotiations at Lancaster a person with authority to negotiate, by its readiness to destroy col- lective bargaining by going over the heads of the union representa- tives and dealing directly with employees individually, and by dominating and fostering the formation of an inside organization prior to, during, and after the period in which the Union sought to bargain collectively with the respondent. 6. That the respondent, by making manifest to its employees its hostility to the Union by threatening to close the plant and move south if the Union succeeded in securing recognition, by urging its employees to join an inside union, by discrediting the Union and its leaders by derogatory statements addressed to its employees, by soliciting employees individually to return to work, accompanied by threats, warnings, and a promise of the most preferable positions to those who repudiated the strike first, has pursued a course of coercion, intimidation, and interference for the purpose of interfering with the rights of its employees to bargain collectively through representa- tives of their own choosing and to engage in other concerted activities. We find, therefore, that on August 10, 1937, and thereafter, the respondent has refused to bargain collectively with the Union as the representative of its employees in respect to wages, rates of pay, hours of employment, and other conditions of employment. We further find that the respondent, by the acts and conduct set forth in the two preceding paragraphs, has interfered with, re- strained, and coerced its employees in the exercise of their rights to self-organization, to form, join, or assist labor organizations, to bargain collectively through representatives of their own choosing, STEHLI AND CO., INC., ET AL. 1433 and to engage in concerted activities for the purposes of collective bargaining and other mutual aid and protection as guaranteed in Section 7 of the Act. D. Ending of the strike; discriminatory reinstatement of some strikers and refusal to reinstate others The complaint alleges that the respondent discriminated against 32 named employees in regard to hire and tenure of employment, and thereby discouraged membership in the Union. During the hearing the complaint was amended by dismissing the allegations of dis- crimination against 10 named employees,'8 and by adding allega- tions of discrimination against George D. Booth. The Trial Ex- aminer, in his Intermediate Report, recommended that the respond- ent offer to reinstate in their former positions, and make whole for any loss of pay they may have suffered by reason of the respondent's discriminatory action, 15 named employees,19 and further recom- mended that the allegations of the complaint as to discrimination against 8 named employees 20 be dismissed. The Union filed excep- tions to the Trial Examiner's findings and recommendations as to 5 of these 8 employees, but did not file exceptions as to the other 3, namely Robert Hertz, Charles L. Sload, and Paul Yarnall. We concur with the Trial Examiner's recommendations as to Hertz and Sload, and, although we have some doubt respecting his recom- mendation as to Yarnall, we will, in view of the failure of the Union to file exceptions as to these three persons dismiss these allega- tions of the complaint without detailed discussion. Thus there remain 20 persons against whom the respondent is alleged to have discriminated in regard to hire and tenure of employment. 1. Discrimination against 17 striking employees The 17 employees listed in the footnote below 21 went out on the August 9, 1937, strike, which we have found above was caused and 18 The names of these employees are : Hawthorne Caulwell , Charles P. Mellinger, Elva T Farmer, William Schroeder , L. Eugene Bretz , Del Dona Kellenberger, Alice Shomo, Hazel Dagen, Myrtle L. Weidman and Evelyn B Wirrick 19 The names of these employees are : Walter Zurcher, Earl Weinhold, Harold McKonly, Leroy E. Emmerich, Clarence Harman, Harold Rankin, George H. Carpenter, John Gibbs, Eugene Skiles, Alonzo W. Sheneman, William Landis, John L. McLane, John Caulwell, Lewis E. Frank, and C. Ellsworth Jones. 20 The names of these employees are : Robert H Hertz, Catherine W. Harmes, Charles L. Sload, William C. Overly, Paul Yarnall, George F. Hurter, Paul V. Schreck, and George D. Booth. n Walter Zurcber, Earl Weinhold, John Caulwell, John Gibbs, C. Ellsworth Jones, Harold Rankin, William Landis, John McLane, George Carpenter, Lewis E. Frank, Eugene Skiles , Harold McKonly , Leroy Emmerich , Alonzo W. Sheneman , Clarence Harman, Catherine W. Harmes, and George F. Hurter. 1434 DECISIONS OF NATIONAL LABOR RELATIONS BOARD prolonged by the respondent's unfair labor practices. During the strike the respondent sought to induce the striking employees to repudiate the strike and return to work by announcing that it would not deal with an outside organization and by offering the most desirable positions to those striking employees who repudiated the strike first. The most desirable positions are on the first shift, which is a day shift; the next best positions are on the second shift, which begins in the afternoon and ends in the evening; the least desirable positions are on the third shift, which begins in the late evening and continues through the early morning hours. The positions on the first shift are also most desirable because when the working force is reduced, the workers on the first shift are laid off last, while the workers on the third shift are laid off first. This, of course, means that the workers on the first shift are likely to earn more money over a period of time, even though the rates of pay on all three shifts are the same. Moreover, a considerable amount of pre- paratory work is performed on the first shift which is not per- formed on the second and third shifts, and a number of operations requiring for their performance persons with special skills are per- formed only on the first shift. Men are not transferred from one shift to another unless, Huber explained, "there is some special reason." Vacancies on each shift are generally filled by hiring new employees. The respondent claims that the strike, which began on August 9, 1937, was broken by August 13, 1937, since after that date the re- spondent did not send its foremen and loom fixers to solicit strikers to repudiate the strike by offering the most desirable positions to those who returned to work first, because as Superintendent Lerbscher testified, "we had everybody back we wanted to come back." The Union admits that the strike had petered out by August 18, 1937. Thus when the 17 striking employees involved here ap- plied for reinstatement to their former positions on August 18, 19, and 20, 1937, they were denied reinstatement to their former posi- tions because those positions were occupied by strikers who had repudiated the strike and returned to work in response to the re- spondent's offer of the best positions to those who repudiated the strike, first, and possibly by persons who had not been in the re- spondent's employ at the commencement of the strike. The respondent admitted that it placed in positions on the first shift persons who had been employed on the second and third shifts at the commencement of the strike. At the time of the hearing about 25 weavers who had been employed on the second and third shifts at the commencement of the strike were occupying positions on the first STEHLI AND CO., INC., ET AL. 1435 shift. The record does not disclose the number of persons hired by the respondent during and after the strike who had not been in the re- spondent's employ at the commencement of the strike, or the positions they occupied. As mentioned above, the'17 employees involved here applied for rein- statement to their former positions on August 18, 19, and 20, 1937, and were denied such reinstatement because their positions were occupied by employees who had returned to work at an earlier date in response to the respondent's offer of the best positions to those who repudiated the strike first, and possibly by persons who had not been in the respondent's employ at the commencement of the strike. Fourteen 22 of these 17 employees occupied positions on the first shift at the com- mencement of the strike. Of the 14 who were denied reinstatement to their positions on the first shift, 1 23 was unwilling to accept a posi- tion on another shift, 4 24 subsequently accepted positions on the second shift, 8 25 subsequently accepted positions on the third shift, and 128 was reinstated to a position on the first shift about 2 months later. Two 27 of the 17 employees occupied positions on the second shift at the commencement of the strike. Of these two employees, one 28 was unwilling to accept any other than his former position, and the other 29 subsequently accepted a position on the third shift. The remaining 130 of the 17 employees occupied a position on the third shift at the commencement of the strike. He was reinstated to a position on the third shift, but on different looms. There was a curtailment of production at the Rossmere plant around October and November 1937 because of a drop in business, and also because the respondent had arranged during the strike to send certain qualities of yarn to other mills to be woven. The respondent continued to send these yarns out 2 or 3 months after the strike because it claimed that the Rossmere plant was at that time too busy to weave these yarns, and it was not feasible to wait until the plant could handle them. The result was that some of the weavers who had been on the first or second shift at the commencement of the strike, but were reinstated to the third shift after the strike because they had not, at the respondent's request, repudiated the strike, were laid off in October and November. 22 Walter Zurcher , John Caulwell , John Gibbs , Harold Rankin , William Landis, John McLane , George Carpenter , Lewis E Frank , Eugene Skiles , Hai old McKonly, Leroy Emmerich , Alonzo W. Sheneman , Clarence Harman, and Catherine W Harmes. 21 Walter Zurcher. 24 John Caulwell , William Landis , John McLane , and Lewis E Frank 2S John Gibbs , Harold Rankin , George Carpenter , Eugene Skiles , Harold McKonly, Leroy Emmerich , Alonzo W Sheneman , and Clarence Ilaiman. 26 Catherine W. Harmes 2' Earl Weinhold and C. Ellsworth Jones. 28 Earl Weinbold. -" C Ellsworth Jones. 20 George F. Hurter. 1436 DECISIONS OF NATIONAL LABOR RELATIONS BOARD The respondent, as found above, refused to reinstate these 17 em- ployees on August 18, 19, and 20, 1937, to their former positions after application for reinstatement had been made. The strike having been caused and prolonged by the unfair labor practices of the respondent, the ordinary right which the respondent had to select its employees was "vulnerable," and its refusal to reinstate these 17 employees to their former positions was subject to such order as the Board, in effectuating the purposes and policies of the Act, might make, direct- ing the respondent to reinstate said employees ; to dismiss persons hired since, and not in its employ at, the commencement of the strike, and to displace and shift to other positions persons occupying the positions formerly held by these 17 employees and to redistribute its other em- ployees on a non-discriminatory basis, to such extent as necessary, for the purpose of making positions available for such reinstatement, and to compensate these 17 employees for any loss of wages sustained by virtue of the refusal.31 In our Order below, we will, after taking into account facts peculiar to each of these 17 employees'32 make provision to remedy the situation brought about by the unfair labor practices which caused and prolonged the strike. Moreover, the record convinces us that the respondent would have been able, by displacing or shifting to other positions the persons occupying the positions held by these 17 employees at the com- mencement of the strike, to have restored all these 17 employees to their former positions at the time of, or shortly after, their appli- cation for reinstatement. This the respondent refused to do. Aside from the respondent's intention to discriminate against these 17 em- ployees because they did not repudiate the strike, considered below, there is nothing in the record to show that the respondent's refusal of such reinstatement was based on grounds other than the desire not to shift to other positions the persons then occupying the posi- tions held by these 17 employees at the commencement of the strike. Under Section 2 (3) of the Act, these 17 employees remained em- ployees for the purposes of the Act. And we have frequently held that where, as here, a strike has been caused or prolonged in whole or in substantial part by the employer's unfair labor practices, the striking employees are entitled to their former positions upon mak- si Matter of Black Diamond Steamship Corporation and Marine Engineers ' Beneficial Association, Local No. 83, 3 N. L. R. B. 84; order enforced in Black Diamond Steamship Corporation v. National Labor Relations Board, 94 F ( 2d) 875 (C C. A. 2d), certiorari denied, 58 S. Ct. 1044; National Labor Relations Board v. Remington Rand, Inc, 94 F (2d), 862 ( C. C. A. 5th ), certiorari denied, 58 S Ct. 1046 , 1061; Matter of McKaig- Hatch, Inc . and Amalgamated Association of Iron, Steel, and Tin Workers of North America, Local No. 1139, 10 N L R. B 33; Matter of Western Felt Works , a corporation and Textile Workers Organizing Committee, Western Felt Local, 10 N. L R B 407 "See page 11,53 et seq, infra STEHLI AND CO., INC., ET AL. 1437 ing application therefor. 33 The refusal of the respondent in this case to reinstate these 17 employees to the positions to which they were entitled, by displacing or shifting to other positions the persons occupying the positions to which these 17 employees were entitled, at the time of application for reinstatement, in effect and result dis- criminated, and constituted a discrimination, concerning hire and tenure of employment against these 17 employees. Such discrimina- tion discourages union membership. We find that by the foregoing refusal to reinstate these 17 employees the respondent has engaged in unfair labor practices within the meaning of Section 8 (3) of the Act, and has interfered with, restrained, and coerced its employees in the exercise of the rights guaranteed in Section 7 of the Act 34 Independently of the foregoing, we find from the record that the actual reason for the respondent's refusal to reinstate these 17 em- ployees to their former positions lay in its desire to punish them for not repudiating the strike and to reward the employees who re- pudiated the strike in response to the respondent's offer of the best positions to employees who repudiated the strike first, thereby dis- couraging membership in the Union which was conducting the strike. The respondent contends that during the strike it offered reemploy- ment to all striking employees and that those who did not return to work while their former positions were still unoccupied are not. entitled to their former positions. As we have heretofore held, an employee may refuse an employer's offer of reemployment during the pendency of a strike resulting from the employer's unfair labor practices without impairing such employee's right to subsequent re- instatement. Moreover, the respondent's offer of reemployment was by its terms discriminatory, since it predicated the reinstatement of the striking employees to their former positions on priority in re- pudiating the strike. In view of the foregoing facts and upon the record as a whole, we find that these 17 employees were denied reinstatement to their former positions on August 18, 19, and 20, 1937, because they did not cease striking as early as the respondent desired them to do so, and that this constituted discrimination in regard to their hire and tenure s' Matter of Jeffery-DeWitt Insulator Company and Local No. 455, United Brick and Clay Workers of America, 1 N L. R. B. 618; order enforced in Jeffery-DeWitt Insulator Company v . National Labor Relations Board, 91 F . ( 2d) 134, certiorari denied, 302 U. S. 731; National Labor Relations Board V Remington Rand, Inc, 94 F. (2d) 8Q2, certiorari denied May 23, 1938, 58 S. Ct. 1046 'Matter of Black Diamond Steamship Corporation, footnote 31, supra; Black Diamond Steamship Corporation v. National Labor Relations Board, footnote 31, supra; Matter of Mc%aig-Hatch, Inc, footnote 31, supra; Matter, of Western Felt Works, footnote 31, supra; Matter of Douglas Aircraft Company, Inc. and United Automobile Workers of America, International Union, Douglas Local No. 214, 10 N . L. R. B 242; Matter of Denver Automobile Dealers Association, et al . and Capital Automotive Lodge No. 606, International Association of Machinists, 10 N. L. R. B. 1173. 1438 DECISIONS OF NATIONAL LABOR RELATIONS BOARD of employment, thereby discouraging membership in the Union. The respondent has therefore engaged in and is engaging in unfair labor practices within the meaning of Section 8 (3) of the Act, and has interfered with, restrained, and coerced its employees in the exercise of the rights guaranteed in Section 7 of the Act. We shall now set forth facts concerning each of these 17 employees, including facts occurring after they were denied reinstatement, and point out what relevance, if any, such facts have upon the remedy. Walter Zurcher had been in the respondent's employ for about 10 years. Prior to and at the commencement of the strike Zurcher worked as a weaver on the first shift. The respondent acknowledges that he was one of the best of its weavers. He applied for reinstate- ment to his former position on August 19, 1937, and was denied such reinstatement by the respondent because the positions on the first shift were already occupied. The respondent claims that it offered him a position on another shift and that he refused to accept such a position. An employee who ceases work as a consequence of unfair labor practices may refuse an offer of employment which is not substantially equivalent without impairing his right to subsequent reinstatement. Zurcher obtained employment elsewhere and was working at the time of the hearing. He earns less money at this employment and is required to work on alternating shifts. He desires to be reinstated to his former position with the respondent. We will order the respondent to reinstate Zurcher, with back pay, as provided below in the section entitled "Remedy." Earl Weinhold had been in the respondent's employ for about 10 years. Prior to and at the commencement of the strike Weinhold oc- cupied the position of weaver on the second shift. On August 19,1937, he applied for reinstatement to his former position and was denied such reinstatement because his former position was occupied by an employee who had been working on the third shift at the commence- ment of the strike. Weinhold testified that Superintendent Beazley told him there was nothing available in his department, and that he would send for him when there was. Beazley, on the other hand, testified that he offered Weinhold a position on the same shift, but on looms of a different type, and that Weinhold refused to return to work unless he was assigned to the same type of looms he had operated at the commencement of, the strike. Beazley further stated that production in the department in which Weinhold had been employed had been so drastically curtailed that there has been no occasion to send for him. Weavers who are accustomed to one type of looms are usually very reluctant to transfer to a different type of looms, even though the latter type might be generally considered preferable because of STEHLI AND Co., INC., ET AL. 1439 new improvements or some other reason. The record shows that the transfer of weavers to looms of a different type frequently resulted in a decrease in earnings. Even if we accept Beazley's statement that he offered Weinhold work on different looms, in the absence of any- thing in the record to the contrary, it is a reasonable inference that the position offered Weinhold was not substantially equivalent to his former position. It appears, moreover, that even though produc- tion in his department had been greatly curtailed, his looms were available, and were being operated by a weaver who had formerly been employed on the third shift. For the reasons stated above in connection with Zurcher, Weinhold did not impair his right to sub- sequent reinstatement even if he refused to accept the position which the respondent claims it offered him, since it was not substantially equivalent to his former position. Weinhold was not employed at the time of the hearing. During the period from August 19, 1937, when he was denied reinstatement, to the date of the hearing, he had earned about $55. He desires to be reinstated. We will order the respondent to reinstate Weinhold, with back pay, in the manner provided below in the section entitled "Remedy." John Caulwell began working for the respondent in 1905. Prior to and at the commencement of the strike he occupied the position of weaver on the first shift. On August 19, 1937, he applied for rein- statement to his former position and was denied such reinstatement. At that time his former position was occupied by another person. On August 26, 1937, he accepted a position on the second shift, where he earned less money because he was required to operate looms of a different type and because of different working hours. At the time of the hearing he was still working on the second shift. He desires to be reinstated to his former position on the first shift. We will order the respondent to reinstate Caulwell, with back pay, in the manner provided below in the section entitled "Remedy." John Gibbs had been in the respondent's employ for about 12 years. Prior to and at the commencement of the strike he occupied the posi- tion of weaver on the first shift. On August 19, 1937, he applied for reinstatement to his former position and was denied such rein- statement. His former position was occupied by another person at that time. He was offered a position on the second shift but did not accept it. On August 24, 1937, he accepted a position on the third shift, operating the same looms which he had operated on the first shift. At the time of the hearing he was still employed in the same position. During the period from August -19 to August 24 he earned about $10. He desires to be reinstated to his former position on the first 1440 DECISIONS OF NATIONAL LABOR RELATIONS BOARD shift. We will order the respondent to reinstate him, with back pay, in the manner provided below in the section entitled "Remedy." C. Ellsworth Jones had been in the respondent's employ on and off for a period of about 10 years. Prior to and at the commence- ment of the strike he occupied the position of weaver on the second shift. On August 19, 1937, he applied for reinstatement to his former position and was denied such reinstatement by, the respondent. At that time his former position was occupied by another person. On September 8, 1937, he accepted a position as a weaver on the third shift. At the time of the hearing he still occupied this position. He desires to be reinstated to his former position on the second shift. We will order the respondent to reinstate him, with back pay, in the manner provided below in the section entitled "Remedy." Harold Rankin was a weaver on the first shift prior to and at the commencement of the strike. On August 18, 1937, he applied for reinstatement to his former position and was denied such reinstate- ment by the respondent. At that time his former position was occu- pied by another person. On September 8, 1937, he accepted a posi- tion as a weaver on the third shift. At the time of the hearing he still occupied this position. He desires to be reinstated to his former position on the first shift. We will order the respondent to reinstate him, with back pay, in the manner provided below in the section entitled "Remedy." William Landis had been in the respondent's employ on and off for about 22 years, and had worked continuously for about 17 years. Prior to and at the commencement of the strike he occupied the posi- tion of weaver on the first shift. On August 19, 1937, he applied for reinstatement to his former position and was denied such reinstate- ment by the respondent. At that time his former position was oc cupied by a person who had worked on the second shift at the com- mencement of the strike. On August 25, 1937, he accepted a position as a weaver on the second shift. It appears that on October 30, 1937, he was placed on the "short" shift, working 3 days a week. We will order the respondent to reinstate him, with back pay, in the manner provided below in the section entitled "Remedy." John McLane began working for the respondent in 1905. Prior to and at the commencement of the strike he occupied the position of weaver on the first shift. On August 19, 1937, he applied for re- instatement to his former position on the first shift and was denied such reinstatement. At that time his former position was occupied by another person. On September 3, 1937, he accepted a position as a weaver on the second shift. It appears that on October 30, he was placed on the "short" shift, working about 3 days a week. He desires to be reinstated to his former position on the first shift. We will STEHLI AND CO., INC., ET AL. 1441 order the respondent to reinstate him, with back pay, in the manner provided below in the section entitled "Remedy." George Carpenter had been employed by the respondent for about 20 years on and off. For 10 years prior to the strike he occupied the position of weaver on the first shift. On August 19, 1937, he applied for reinstatement to his former position and was denied such rein- statement by the respondent. At that time his former position was occupied by another person. On August 31, 1937, he accepted a posi- tion as a weaver on the third shift. On November 16, 1937, he was laid off temporarily for lack of work. Since employees on the third shift are laid off for lack of work before employees on the first shift, he would not have been laid off if the respondent had reinstated him to his former position. We will order the respondent to reinstate him, with back pay, in the manner provided below in the section entitled "Remedy." Lewis E. Frank had been in the respondent's employ for 15 or 16 years as a weaver on the first shift. On August 19, 1937, he applied for reinstatement to his former position and was denied such rein- statement by the respondent. At that time his former position was occupied by another person. On August 24, 1937, he accepted a posi- tion as weaver on the second shift. On November 19, 1937, he was temporarily laid off for lack of work. Since employees on the second shift are laid off for lack of work before employees on the first shift, he would not have been laid off if the respondent had reinstated him to his former position. He desires to be reinstated to his former position on the first shift. We will order the respondent to reinstate him, with back pay, in the manner provided below in the section entitled "Remedy." Eugene Skiles had been employed by the respondent for about a year and a half before the strike. He was employed as a shuttle filler on the first shift until July 26, 1937, at which time, because he seemed a "promising and intelligent" young man, he was promoted to weaving. At the commencement of the strike he already had his own set of six looms. On August 18, 1937, he applied for reinstate- ment to his former position and was denied such reinstatement by the respondent. Lerbscher told Skiles that his looms were taken, but that he could probably secure a job on the third shift when it was opened. Skiles asked Reich that same evening for a position on the third shift. Reich told Skiles that he did not have a weaving job available, but could put him back on shuttle filling. Skiles told Reich he preferred a shuttle-filling job to no work at all. He went back to work on August 25, 1937, as a shuttle filler on the third shift. He was laid off on November 17, 1937, because the qualities of yarn which were being woven at that time did not require shuttle fillers. 1442 DECISIONS OF NATIONAL LABOR RELATIONS BOARD If Skiles had been reinstated at the termination of the strike to his former or substantially equivalent position on the first shift, he would not have been laid off on November 17. His lay-off is therefore a consequence of the respondent's discriminatory method of reinstat- ing the striking employees. Although Skiles testified that his aver- age earnings were higher after the strike than before, he stated that he desired to be reinstated to his position on the first shift. We will order the respondent to reinstate him, with back pay, in the manner provided below in the section entitled "Remedy." Harold McKonly and Leroy Emmerich had been employed by the respondent as shuttle fillers on the first shift for about a year prior to the strike. Because they also seemed "promising and intelligent" young men, they were promoted to weaving on the first shift on July 26, at the same time as Skiles was promoted. Thus at the com- mencement of the strike they occupied positions as weavers on the first shift. On August 19, 1937, McKonly and Emmerich applied for reinstate- ment to their former positions and were denied such reinstatement by the respondent. Lerbscher told them their looms were taken and they would have to wait until the third shift was opened. McKonly asked Reich for a job on the third shift on August 25, 1937, and that day returned to work as a shuttle filler on the third shift. Emmerich had obtained other employment and so did not again request reinstatement until August 31, 1937. He returned to work for the respondent on September 1 as a weaver on the third shift on looms he had never before operated. He had so much trouble with them that he was put back on shuttle filling about 3 weeks later. McKonly and Emmerich did not come in to work on September 23, the day after pay day, because, they claimed, they were ill. When they came in to work on the next working day, September 27 1937, they were discharged because, Reich testified, they had stayed away from work the day following pay day after they had been previously warned about such conduct. As far as the record dis- closes, they were discharged for the reason testified to by Reich. We have found above that the respondent engaged in unfair labor practices within the meaning of Section 8 (3) of the Act as to Mc- Konly and Emmerich by refusing to reinstate them to their former or substantially equivalent positions when they applied for reinstate- ment on August 19, 1937. Nevertheless, we will not, in our discretion. order the respondent to reinstate them to their former or substantially equivalent positions on the first shift because their discharge on September 23, 1937, did not spring from and was not intimately asso- ciated with their discriminatory reinstatement to positions on the third shift. STEHLI AND CO., INC., ET AL. 1443 Alonzo W. Sheneman had been in the respondent's employ for about 18 years. Prior to and at the commencement of the strike he occupied the position of loom fixer on the first shift. He was the only loom fixer who was active in behalf of the Union. On August 18, 1937, he applied for reinstatement to his former position and was denied such reinstatement by the respondent. At that time his former position was occupied by Resch, who had been a loom fixer on the third shift at the commencement of the strike and who had been active in organizing the Independent. On August 26, 1937, Sheneman accepted a position as weaver on the third shift at much less pay than he had received as a loom fixer. In its answer the respondent states that it reemployed Sheneman as a weaver because as a loom fixer he had been found neglectful of his work, unreliable, and unsatisfactory. The record shows that there had been no com- plaints about him prior to the strike. The respondent's records show that as a loom fixer he usually received the bonus which was added to a loom fixer's pay if the material woven on the looms assigned to his care measured up to certain standards. Huber and Lerbscher testified that four girls who had worked under Sheneman had complained about him and had stated that they would not work under him. The four girls were called as witnesses by the respondent and testified that they were receiving better serv- ice from Sheneman's successor.35 This testimony is of no significance since at least three of the girls and some of the respondent's super- visors admitted that Sheneman's work had always been satisfactory until the period just preceding the strike. Sheneman asked these four girls to join the Union, but they admitted that he never said he would not fix their looms if they did not join the Union. More- over, three of the girls testified that they did not suggest the notion of refusing to work under Sheneman. It appears that this notion originated with the fourth girl, Alverta Behmer. Behmer admitted that it was because of her dislike of Sheneman that she preferred not to work under him. She testified that whenever Sheneman "saw me do anything at all that wasn't my place to do . . . he would go and tell on me. And naturally I was called to the office a couple of times. So I thought some day my chance would come." Appar- ently the strike was her chance and she made use of it as stated above. However, Behmer did not go to Lerbscher and complain about Sheneman, but made her complaint to him when he questioned her and the other three girls during the strike about Sheneman. as It appears that the earnings of these four girls were to some extent increased after the strike . This was due , however, to the fact that the rates were increased on the qualities which they were weaving, and not because Resch gave them better service than Sheneman had. 1444 DECISIONS OF NATIONAL LABOR RELATIONS BOARD Although Lerbscher had talked to Sheneman several times after the strike, he did not tell Sheneman of the girls' complaint until about 2 weeks before the hearing when they were talking about the Board proceeding. It seems reasonable to suppose that if the girls' com- plaint was the real reason for Sheneman's demotion, he would have been so informed at the time of his demotion. Lerbscher and Shene- man had been very friendly prior to the strike. Lerbscher knew of Sheneman's activities and had told him that he was making a mistake. Lerbscher testified that he became angry at Sheneman be- cause the latter solicited membership in the plant despite a promise not to do so. After the strike Lerbscher preferred not to have Shene- man working on Lerbscher's shift (the first shift), and testified that their relations had grown less friendly. Lerbscher clearly resented Sheneman's interest in the Union. We find that the respondent sought out and utilized the complaint of the four girls as a pretext for not reinstating Sheneman to his former position. We will order the respondent to reinstate him, with back pay, in the manner provided below in the section entitled "Remedy." Clarence Harman had been in the respondent's employ for a total of about 9 years, and steadily for about the last 71/2 years. Prior to and at the commencement of the strike he occupied the position of weaver on the first shift. On August 19, 1937, he applied for rein- statement to his former position, and was denied such reinstatement by the respondent. At that time his former position was occupied by another person. He applied again on August 23, 1937, and was told by Lerbscher that "I don't have anything for you. Somebody will have to die before I ever take you on the first shift." Earl Lynch, an assistant superintendent who was present, told Harman, who had been a captain of the picket line, that he had been "anything but a gentleman on the picket line." As a matter of fact, as Super- intendent Reich testified, the picket line had not been disorderly. Harman had been complimented by the State police for his work on the picket lines, and informed Lynch of this fact. Since Harman realized that he could not secure reinstatement to his position on the first shift, he asked Reich on August 24, 1937, for a position on the third shift, explaining that he wanted it only temporarily since he hoped eventually to get back to the first shift. He started to work as a weaver on the third shift on August 25. On October 2, 1937, at about 1: 30 a. m., Harman was discharged, al- legedly for smoking. One night shortly after Harman began work- ing on the third shift, he asked Assistant Superintendent Keeler if he could go out into one of the courts and smoke. Keeler referred him to Superintendent Reich, who refused to grant him permission STEHLI AND CO., INC., ET AL. 1445 because it was against the rules. About 2 or 3 weeks later, Keeler saw Harman coming in through the lobby. Although he was not sure Harman had been outside, Keeler reported this incident to Reich. Reich told Keeler to watch Harman, which Keeler did, until he caught him going out again several days later. Keeler testified that he found Harman in one of the courts smoking a cigarette, and that Harman admitted to him then, and again later when Keeler brought him before Reich, that he had been smoking. Harman, however, denied that he was smoking, and explained that he had gone out for a breath of fresh air because he was not feeling well. He was not accustomed to working nights, and found it almost impossible to sleep during the day because of his children. He found it necessary oc- casionally, in order to stay awake, to leave his work and go out for. some fresh air or to splash water on his face. He felt so ill on the night on which he was discharged that he had considered not going to work, but finally decided he would since it was the last night of the week. He testified that he went to the doctor about a week after his discharge, and was told that he had shingles as a result of upset nerves. Harman testified that, on the night of his discharge, he pleaded with Reich to give him his job back, but Reich told him that "We were laying for you many times and we were going to fire you, and I didn't give a damn what it was for." Reich refused to permit Harman to operate his looms for the remainder of that shift, refused to give him his pay, and refused even to permit him to wait in the plant until the pay office opened. Harman testified further that Keeler later told him that "Mr. Reich gave me orders to keep my eye on you and fire you." Harman -vent back to the plant on October 5 to talk to Huber. He told Huber he had not been smoking, and explained that he had gone out in the yard to refresh himself. Huber refused to reinstate him, and refused also to give him a written reference. When asked if there was much smoking on the third shift, Reich stated that the first and second shifts do not "run into it like we do on the third shift . . . We have to follow it up pretty close." Never- theless, some of the supervisors who had been employed by the respond- ent for about 20 or 30 years could not recall anyone else ever having been discharged for smoking. Reich finally stated that he remembered that several employees had been discharged for smoking, but he could recall the name of only one, George Kurl. When Kurl, a 17-year old boy, was called as a witness by the Board, he testified that he had not been discharged for smoking or for any other reason, but had•ouit after working only one night because the work made him ill. 164275-39-vol. xi-92 1446 DECISIONS OF NATIONAL LABOR RELATIONS BOARD Harman had joined the Union a few days after the May 2 meeting, and was active in organizing the Union. He was on the shop com- mittee, and was a captain of the picket line. He was strongly opposed to the formation of an unaffiliated union. His activity in the Union, and his opposition to the organization of an unaffiliated union, were well known to his supervisors as a result of several conversations he had had with some of them. He had sought, on the morning of August 9, to induce Huber to consent to an election and thus prevent the strike. In the course of this conversation he told Huber that as a member of the shop committee, he would of course participate in the strike. Although it is not entirely clear from the record whether or not Harman actually was smoking on the night of his discharge, under all the circumstances the respondent's action in summarily discharging him seems unwarranted, even if he had been smoking. The court in which Keeler found Harman on the night of his dis- charge was one in which the employees were permitted to smoke before and after working hours, so apparently no serious fire hazard was involved. Since Harman's discharge, a new law has gone into effect in Pennsylvania which requires that night-shift employees be given a rest period, during which they can smoke. The refusal to permit Harman to operate his looms for the remainder of the shift, the refusal to give him a written reference, the general attitude of hostility toward him, and the rigid enforcement against him of a rule which was so rarely invoked, all lead to the conclusion that the respondent was motivated by a desire to find an excuse to discharge Harman. On the basis of the entire record, we find that Harman was discharged because of his membership in, and activity on behalf of, the Union. The respondent's discharge of Harman con- stituted a further discrimination against him in regard to hire and tenure of employment. Moreover, we have found above that the re- spondent engaged in unfair labor practices within the meaning of Section 8 (3) of the Act in refusing to reinstate Harman to his former position on the first shift when he applied for reinstatement on August 19, 1937. Even if the respondent honestly discharged Harman on October 2, 1937, because it actually thought that he had been smoking, we would nevertheless order him reinstated to his former position on the first shift since the circumstances surrounding his discharge grew out of the respondent's discriminatory refusal to reinstate him to the first shift. As a result of this discriminatory refusal to reinstate him, Harman's usual manner of living was considerably disarranged, and we cannot find that his alleged smoking on October 2, 1937, even if it did occur,•has in any way made him unfit to occupy his former posi- tion on the first shift and to perform his work under the conditions under which he was entitled to work. STI;HLI AND CO., INC., ET AL. 1447 Harman was unable to obtain employment following his discharge, and was not employed at the time of the hearing. The only work he found available was on a night shift, and this he refused because night work had already seriously affected his health. He stated that he desired to be reinstated to the position he held at the commence- ment of the strike on August 9, 1937. We will order the respondent to reinstate Harman, with back pay, in the manner provided below in the section entitled "Remedy." Catherine W. Harmes began working for the respondent on May 26, 1937, and worked steadily on the first shift in the copping de- partment until August 9, 1937, when she went out on strike. On August 19, 1937, she applied for reinstatement to her former position and was denied such reinstatement by the respondent. At that time her former position was occupied by another person. Thereafter she applied for work almost weekly, until on October 20, 1937, she was reemployed at the same work she had performed at the com- mencement of the strike. When she was reemployed she was told that it was for a 3 or 4 weeks' trial. On November 19, 1937, she was laid off for lack of work. In its answer the respondent states that Harmes was known to be an inefficient worker. This was not the reason given her when she applied for reinstatement on August 19, 1937. In fact she was not reemployed because her position was occupied by another person. The record establishes that Harmes was laid off on November 19, 1937, for lack of work and not because her work was unsatisfactory. Moreover, it is clear that the respondent regarded her as having quit her employment when she went out on strike, and that it was its policy to give preference to persons who returned to work during the strike in subsequent lay-offs for lack of work. Hence it is pos- sible that if Harmes had been fully reinstated to her former position and had not been regarded as an employee who had quit, she would not have been laid off on November 19, 1937. We will order the re- spondent to reinstate her, with back pay, in the manner provided below in the section entitled "Remedy." George F. Hurter had been in the respondent's employ on and off since 1931, and had worked steadily for about 2 years before the strike. Prior to and at the commencement of the strike he occupied the position of weaver on the third shift. On August 20, 1937, he applied for reinstatement to his former position. Reich, superin- tendent of the third shift, told Hurter there would be no position available for him until the third shift reopened. Hurter accepted reinstatement on August 24, on the third shift, but on different looms. Hurter was discharged on September 15, 1937, allegedly be- cause a piece of material he had woven was graded by Cavin, chief 1448 DECISIONS OF NATIONAL LABOR RELATIONS BOARD examiner of the woven material, as a "CC" piece, a term used to desig- nate an exceptionally bad piece of work. Hurter explained that he had woven the CC piece because- ... there was bad filling on the loom. The shuttles were no good. The fixer worked on it. He worked on that loom ever since the work was put in, and he came to my looms every night and took a couple of broken picks out. That was all that was in the piece. I have a green shuttle filler and I never run those looms before in my life. The fixer claimed that he did not work on them for about eight years. I had to weave, I had to fill shut- tles, and I had to watch for imperfections, and I had to do everything. However, the part of the piece in question that had been woven on the same looms on the first shift was perfect, and the part woven on the second shift contained five weaver's defects, none of them due to loom trouble. The piece had been started and completed on the third shift, so that Hurter had woven more than one-third of the entire piece. The parts he had woven contained 23 defects. Lavin admitted that these defects were due to loom trouble.. Hurter would be responsible for such defects unless he notified the loom fixer about them. Hurter claims that he did so. Upon being notified, the loom fixer should have marked the defects to indicate that they were due to loom trouble, and that he had been notified thereof by the weaver. One of the imperfections was marked but Cavin testified that he could not determine whether it was a loom fixer's mark, and, fur- ther, that the other 22 imperfections were not marked at all. Hurter explained that the lack of marks on the other imperfections was due to the fact that the loom fixer was not able to take care of the trou- ble himself, so the latter requested Keeler, the assistant superintend- ent, several times to look at it, but Keeler failed to do so. Under such circumstances, however, it was Hurter's duty to close down the looms and not to continue weaving obviously defective material. There is no explanation in the record for Hurter's not closing down the looms. Shortly after Hurter's discharge, a change was made in the looms whereby imperfections could be seen more readily. Huber, however, claimed that Hurter should have been able to see the imper- fections under the old arrangement since the other weavers could. Hurter had woven several other bad pieces since he returned to work after the strike, although this was his first CC piece. It also appears that he had been warned, over a period of a year or more, by Cavin, Huber, and Reich that his work was not satisfactory. Hurter ad- mitted that his work had been criticized by his superiors, but denied that it was criticized more often than that of other weavers, and also denied that he had ever been threatened with discharge because of STEHLI AND Co., INC., ET AL. 1449 poor work. Several of the pieces of cloth on which Hurter had worked had to be sold at reduced rates because of defects. The piece on which he had done CC work would probably prove to be a total loss since the customer had refused to accept it even at the greatly reduced price for which the respondent offered to sell it. Hurter testified that he was the only one on his floor who did not sign the petition for an independent union. He had been fairly active in organizing the Union. One night toward the end of June, Hurter was standing outside the mill talking about the Union to employees going in to work on the third shift. One employee named Kertz, whom Hurter tried to sign up in the Union, seemed unable to make up his mind, and came back several times to talk to Hurter further about it. Reich, who had apparently observed this incident, called Hurter to the office and warned him about interfering with the employees coming in to work. Hurter explained that Kertz kept coming back of his own accord. Kertz was called to the office and verified Hurter's story. Hurter was a member of the shop com- mittee, and a captain of the picket line. Hurter, in fact, was on the "greeting committee" which greeted the employees as they came out of the mill. Although the weight of the evidence shows that the picket lino was conducted in an orderly manner, Huber testi- fied that the sheriff had told him that "there were a few bad actors on the picket line and that Hurter was one of them." It thus appears that some of the respondent's officials knew and disapproved of Hurter's union activities. Although this case is not free from doubt, we find that Hurter was discharged on September 15, 1937, for unsatisfactory work and not for union activities. While Hurter's bad work may, to a small extent, have been due to the fact that the respondent discriminatorily reinstated him to different looms, under all the circumstances, we will not in our discretion order the respondent to reinstate him. 2. Failure to reinstate William C. Overly William C. Overly had been in the respondent's employ since May 11, 1937, as an extra man in the sizing department. He had also been employed by the respondent on a few occasions prior to that date. He told Shenk, his supervisor, on August 9, 1937, that he wanted to work during the strike. The work of the sizing de- partment was so greatly reduced because of the strike that Shenk did not need Overly in that department, but arranged to provide work for him in the twisting department. Overly worked all day August 9, but went out on strike on August 10. On August 19, 1937, he applied for reinstatement to his former position. Shenk told him that the sizing department was not running at full production, 1450 DECISIONS OF NATIONAL LABOR RELATIONS BOARD and that he would send for him when it was. Up to the time of the hearing, the sizing department had not been operating fully, so that Overly's services had not been needed. We find that Overly was not discriminatorily denied reinstatement to his former or substan- tially equivalent position. However, since he- ceased work as a con- sequence of the respondent's unfair labor practices, we will order the respondent to reinstate him in the manner provided below in the section entitled "Remedy." 3. Discharges George D. Booth 33 began working for the respondent in 1917, and had been in the respondent's employ on and off for a total of about 15 years. He occupied the position of a weaver on the third shift. When the respondent reduced the weaving rates on certain materials in February 1937, Booth's looms were affected. He was one of the three employees who stirred up the others to protest this rate reduc- tion, which protest culminated in a stoppage of work at the end of the third shift and the beginning of the first shift on the morning of February 25, 1937. He was, furthermore, one of the committee of three employees who negotiated the settlement of this dispute with Huber. He was discharged on February 26. Reich and Keeler testi- fied that Booth was discharged because he left his looms too fre- quently to go to the hydrant, and because his production was too low. They testified that they had warned him several times that he must try to increase his production. Reich testified that at the time Booth was discharged, the respondent had found it necessary to close down the section where he was employed, and since he had better weavers "Counsel for the Board made a motion at the hearing that the complaint be amended by adding allegations of discrimination against Booth . Counsel for the respondent objected to an amendment of the complaint during the hearing which would involve additional charges, even of the same nature as charges already contained in the com- plaint. The Trial Examiner granted the respondent 5 days in which to file an answer to the amended complaint . At the expiration of the 5 days he granted the motion to amend the complaint . It was agreed by counsel for the Board and counsel for the respondent "that the amendment as set forth orally and as recorded in the record and the ,denial of the allegation by counsel for the respondent , as stated orally and as included in the record , is sufficient for the purposes of this record and for the purposes of complying with the rules and regulations of the Board " The Board and the re- spondent produced testimony concerning Booth. The Trial Examiner , however, in his Intermediate Report, stated that he would make no finding concerning Booth since the amended charges contained no allegations as to Booth. The Trial Examiner erred in this respect. See Matter - o f Shell Petroleum Corporation and International Union of Operating Engineers, 10 N. L. R B. 719, in which the Board said : The function of the charge is to call the attention of the Board to the fact that certain unfair labor practices are alleged to have been committed . It is not essential that the charge described the alleged unfair labor practices with the same particularity as the complaint . . . . The portions of the complaint objected to are not extensions beyond the primary allegations of the charge , but constitute a setting forth in greater detail of the violations alleged to -lave been committed by the respondent. STEHLI AND CO., INC., ET AL. 1451 available, he let Booth go. When Huber was asked why Booth was discharged for inefficiency after so many years of employment, he answered that "when people who sometimes for years have been satis- factory became interested in or were influenced in a way like it hap- pened during the past few months, they changed so radically as not to be the same people for us any more, and . . . they take a de- fiant attitude and refuse to take orders from. their superiors. So that today, after many years of satisfactory service, he became ab- solutely unsatisfactory." When asked if he was talking generally about some of the workers, Huber answered, "Yes; but first to explain as to why George Booth, after so many years of employment, was then found unsatisfactory at that time." Huber's explanation seems to be predicated on the notion that an employee who engages in con- certed activity with other employees for their mutual protection is no longer fit for employment by the respondent. In the case of Booth, his "unsatisfactory service" can have reference only to the incident on February 25, the day preceding his discharge. When Reich discharged him, Booth stated that "I am getting fired because I went in to see Mr. Huber." Reich answered that "it isn't that at all. You know yourself what has taken place with you in the last few months, that you have given us not your best service." Even though Booth's production may have decreased for some time prior to his discharge, such fact was not, in view of Huber's explanation for Booth suddenly becoming an unsatisfactory worker after 15 years of employment with the respondent, the real reason for his discharge, but was merely utilized as a pretext to screen the respondent's true reason, his active participation and leadership of employees engaging in concerted activity on February 25. We find under all the circum- stances that Booth was discharged because of his action in stirring up the respondent's employees to protest the cut in weaving rates. By discharging Booth because he engaged in concerted activity for the purposes of collective bargaining and other mutual aid and pro- tection, the respondent has interfered with, restrained, and coerced its employees in the exercise of the rights guaranteed by Section 7 of the Act, thereby engaging in an unfair labor practice within the meaning of Section 8 (1) of the Act.37 In addition, a discharge for that reason discourages concerted activity for the purposes of col- lective bargaining, and has the effect of discouraging the formation of and membership in a labor organization, which is the customary instrument utilized by employees to achieve collective bargaining, and constitutes an unfair labor practice within the weaning of Section 8 (3) of the Act. 87Matter of Indianapolis Glove Company and Amalgamated Clothing Workers of America, Local No. 145, 5 N. L. R. B. 231. - 1452 DECISIONS OF NATIONAL LABOR RELATIONS BOARD Paul V. Schreck had been in the respondent's employ since 1924. Prior to and at the commencement of the strike he occupied the position of machine twister and spare hand on the second shift. On August 19, 1937, he applied for reinstatement, and was rein- stated to his former position on the same shift. On September 21, 1937, Schreck was discharged, allegedly for wasting too much time. Schreck admitted that his foreman had criticized him several times for leaving his department too frequently. Schreck explained that his work necessitated his going from one mill to another, but his foreman, being new on the job, did not understand that until one of the foremen explained it to him. Beazley and Huber, however, testified that Schreck had been criticized several times, beginning as early as March 1937, about leaving his work too frequently and about his attitude toward his supervisors. Schreck admitted that when Beazley told him he could come back to work, he warned him about his disposition toward his foremen. On the night on which Schreck was discharged, Beazley found him in another department talking to two girls. When Beazley asked him what he was doing, he answered that he had just stopped to say hello. Although Schreck signed up a few members in the Union during the strike, he does not appear to have been particularly active in the Union. We find that the record does not support the allegations of the complaint that the respondent discharged Schreck because of his union membership or activity. IV. THE EFFECT OF THE UNFAIR LABOR PRACTICES UPON COMMERCE The activities of the respondent set forth in Section III above, occurring in connection with the operations of the respondent de- scribed in Section I above, have a close, intimate, and substantial relation to trade, traffic, and commerce among the several States, and have led and tend to lead to labor disputes burdening and obstruct- ing commerce and the free flow of commerce. V. THE REMEDY Having found that the respondent has engaged in unfair labor practices, we will order it to cease and desist therefrom and to take certain affirmative action designed to effectuate the policies of the Act. We have found that the respondent has dominated and interfered with the formation and administration of the Independent Silk Workers Union of Rossmere and has contributed support to it. In order to effectuate the policies of the Act and free the employees of the respondent from such domination and interference, and the STEHLI AND CO., INC., ET AL. 1453 effects thereof, which constitute a continuing obstacle to the exercise by the employees of the rights guaranteed them by the Act, we will order the respondent to refrain from any recognition of the Independent as representative of any of the respondent's employees for the purpose of dealing with the respondent concerning griev- ances, labor disputes, wages, rates of pay, hours of employment, and conditions of work, and to disestablish it as such representative 33 We will also order that the respondent, upon request, bargain collectively with the Union as the exclusive representative of its employees in the appropriate unit. Since the strike was caused and prolonged by the respondent's unfair labor practices, and in view of our finding of unfair labor practices within the meaning of Section 8 (3) of the Act as to the employees listed in Appendix A,39 we shall, to effectuate the pur- poses and policies of the Act, order the respondent to offer rein- statement to the employees listed in Appendix A, and, upon appli- cation, to all the employees, including William C. Overly, who went on strike and who (1) have not since been reinstated at all, or (2) have not since been fully reinstated to their former or substantially equivalent positions on the shifts on which they were employed at the commencement of the strike, or (3) have since been reinstated to any position, but were thereafter temporarily laid off for lack of work ,40 to their former or substantially equivalent positions on the shifts on which they were employed at the commencement of the strike. The offer of reinstatement shall be without prejudice to their seniority and other rights and privileges. Such reinstatement shall be effected in the following manner : All persons not in the respondent's employ at the commencement of the strike, hired after August 9, 1937, the date of the commence- ment of the strike, shall, if necessary to provide employment for the employees referred to in the preceding paragraph and who accept reinstatement, be dismissed. If, after this is done, there is not, by reason of a reduction in the force of employees needed, sufficient 31 See Consolidated Edison Co . v. National Labor Relations Board, 59 S. Ct. 206 ( 1938), where the court said : The continued existence of a company union established by unfair labor practices or of a union dominated by the employer is a consequence of violation of the Act whose continuance thwarts the purposes of the Act and renders ineffective any order restraining the unfair practices. 3D In the case of George D. Booth, listed in Appendix A, we also found that the respondent , by discharging him, engaged in unfair labor practices within the meaning of Section 8 (1) of the Act , independently of our finding of unfair labor practices within the meaning of Section 8 (3) of the Act as to him. We would require his reinstatement, with back pay, to remedy the unfair labor practices within the meaning of Section 8 (1) of the Act, even if we had not found unfair labor practices within the meaning of Section 8 (3) of the Act. 40 We shall not order the respondent to offer reinstatement to striking employees who were reinstated following the termination of the strike , but who, we have found above, were subsequently discharged for cause. 1454 DECISIONS OF NATIONAL LABOR RELATIONS BOARD employment immediately available for the remaining employees, including those referred to in the preceding paragraph and who accept reinstatement, all available positions on each shift shall be distributed among such employees, without discrimination against any employee because of his union affiliation or activity, following a system of seniority (or other procedure) as to each shift to such extent as has heretofore been applied in the conduct of the respondent's business. Those employees remaining after such distribution, for whom no employment is immediately available, shall be placed on a preferential list prepared in accordance with the principles set forth in the preceding sentence, and shall thereafter, in accordance with such list, be offered employment in their former or substantially equivalent positions, on the shifts on which, they were employed at the commencement of the strike, as such employment becomes avail- able and before other persons are hired for such work; but if, before such employment becomes available, other employment for which they are qualified, on any shift, becomes available, they shall be offered such employment before other persons are hired for such work, pro- vided however, that those who accept such employment shall, in accordance with the preferential list, be offered employment, as it becomes available, in their former or substantially equivalent posi- tions on the shifts on which they were employed at the commence- ment of the strike, before other persons are hired for such work. Although the record shows that some of the employees listed in Appendix A had, up to the time of the hearing, earned as much as they would have earned if the respondent had reinstated them to their former positions, it is possible, however, that such has not been the case since the time of the hearing. Accordingly, we shall also order that the respondent make whole all the employees listed in Appendix A, except George D. Booth, for any losses of pay they may have suf- fered by reason of the respondent's discrimination against them, by paying to each of them an amount equal to that which he would have earned as wages during the period from August 18, 19 or 20, 1937, as the case may be, to the date of the offer of reinstatement, or place- ment on the preferential list, less his net earnings 41 during that period, had the respondent, on August 18, 19 or 20, 1937, as the case may be, reinstated him to his former or substantially equivalent posi- #I 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 else- where than for the respondent , which would not have been incurred but for his unlawful discharge and the consequent necessity of his seeking employment elsewhere . See Matter of Crossett Lumber Company and United Brotherhood of Carpenters and Joiners of America, Lumber and Sawmill Workers Union, Local 2590, 8 N L. R B. 440. Monies received for work performed upon Federal , State, county , municipal , or other work -relief projects are not considered as earnings , but, as provided below in the Order, shall be deducted from the sum due the employee , and the amount thereof shall be paid over to the appropriate fiscal agency of the Federal , State, county , municipal , or other govern- ment or governments which supplied the funds for said work -relief projects. STEHLI AND CO., INC., ET AL. 1455 tion on the shift on which he was employed at the commencement of the strike, and had the respondent, in the event of any subsequent reduction of the force of employees needed, reduced its force in accordance with its usual method of • reducing its force, without dis- crimination against any employee because of his union affiliation or activities, following a system of seniority (or other procedure) to such extent as has heretofore been applied in the conduct of the respondent's business. Since the Trial Examiner found that Cath- erine W. Harmes was not discriminated against and did not recom- mend her reinstatement, we shall exclude from the computation of her back pay the period from February 28, 1938, the date of the Intermediate Report, to the date of the Order herein. This is in accordance with our rule that the respondent could not have been expected to reinstate her after the date of the Intermediate Report which recommended the dismissal of the complaint as to her.42 We shall also order the respondent to make payment to George D. Booth of a sum of money equal to that which he would normally have earned as wages during the period from February 26, 1937, to the date of the offer of reinstatement, or placement on the preferen- tial list, less his net earnings 43 during that period. We shall exclude from the computation of his back pay the period from February 28, 1938, the date of the Intermediate Report, to the date of the Order herein, because the Trial Examiner did not find that Booth had been discriminated against and did not recommend his reinstatement. We shall also order that the respondent make whole the other em- ployees ordered to be offered reinstatement for any loss they will have suffered by reason of the respondent's refusal to reinstate them, upon application, following the issuance of this Order, by payment to them, respectively, of a sum of money equal to that which each would normally have earned as wages during the period from 5 days after the date of such application for reinstatement to the date of the offer of reinstatement or placement on the preferential list, less his net earnings 44 during that period.45 THE PETITION In vibw of the findings in Section III above as to the appropriate unit and the designation of the Union by a majority of the respond- 4-'Matter of E. R. Haf'elfinger Co., Inc. and United Wall Paper Crafts of North America, Local No. 6, 1 N. L. R. B. 760. 43 See footnote 41, supra. " See footnote 41, supra. 45 Oregon Worsted Co . v. National Labor Relations Board, 94 F . (2d) 671 (C C. A 9th), enforcing order in Matter of Oregon Worsted Company and United Textile Workers of America, Local $435, 3 N. L. R. B . 36; Bites-Coleman Lumber Co . v. National Labor Relations Board, 98 F. (2d) 18 (C. C. A. 9th), enforcing order in Matter of Bites- Coleman Lumber Company and Puget Sound District Council of Lumber and Sawmill Workers, 4 N. L. It. B. 679. 1456 DECISIONS OF NATIONAL LABOR RELATIONS BOARD ent's employees in the appropriate unit as their representative for the purposes of collective bargaining, it is not necessary to consider the petition of the Union for investigation and certification of repre- sentatives. Consequently, said petition will be dismissed. Upon the basis of the foregoing findings of fact, and upon the entire record in the case, the Board makes the following : CONCLUSIONS OF LAW 1. Textile Workers Union of Lancaster, Pennsylvania and Vicinity, Local #133, and Independent Silk Workers Union of Rossmere, formerly known as Stehli Independent Silk Workers Association and as Independent Silk Workers Union of Employees of Stehli, Inc., are labor organizations within the meaning of Section 2 (5) of the Act. 2. The production and maintenance employees, exclusive of office help, salesmen, watchmen, firemen, truckmen, executives, superin- tendents, foremen, assistant foremen, and those doing supervisory work, employed at the respondent's plant in Lancaster, Pennsylvania, constitute a unit appropriate for the purposes of collective bargain- ing, within the meaning of Section 9 (b) of the Act. 3. Textile Workers Union of Lancaster, Pennsylvania and Vicinity, Local #133, was on August 10, 1937, and at all times thereafter has been, the exclusive representative of all the employees in such unit for the purposes of collective bargaining, within the meaning of Section 9 (a) of the Act. 4. The respondent, by refusing to bargain collectively with Textile Workers Union of Lancaster, Pennsylvania and Vicinity, Local #133, as the exclusive representative of its employees in an ap- propriate unit, has engaged in and is engaging in unfair labor practices, within the meaning of Section 8 (5) of the Act. 5. The respondent, by dominating and interfering with the forma- tion and administration of Independent Silk Workers Union of Rossmere, and by contributing support to it, has engaged in and is engaging in unfair labor practices, within the meaning of Section 8 (2) of the Act. 6. The respondent, by discriminating in regard to the hire, tenure, and conditions of employment of Walter Zurcher, Earl Weinhold, John Caulwell, John Gibbs, C. Ellsworth Jones, Harold Rankin, William Landis, John McLane, George Carpenter, Lewis E. Frank, Eugene Skiles, Harold McKonly, Leroy Emmerich, Alonzo W. Sheneman, Clarence Harman, Catherine W. Harmes, George F. Hurter, and George D. Booth, thereby discouraging membership in the Union, has engaged in and is engaging in unfair labor practices, within the meaning of Section 8 (3) of the Act. STEHLI AND CO., INC., ET AL. 1457 7. The respondent, by interfering with, restraining, and coercing its employees in the exercise of their rights to self-organization, to form, join, or assist labor organizations, to bargain collectively through representatives of their own choosing, and to engage in concerted activities, for the purposes of collective bargaining or other mutual aid and protection as guaranteed in Section 7 of the Act, has engaged in and is engaging in unfair labor practices, within the meaning of Section 8 (1) of the Act. 8. The aforesaid unfair labor practices are unfair labor practices affecting commerce, within the meaning of Section 2 (6) and (7) of the Act. 9. The respondent has not discriminated and is not discriminating in regard to the hire and tenure of employment of Robert H. Hertz, Charles L. Sload, Paul Yarnall, Paul V. Schreck, and William C. Overly, and has not engaged and is not engaging in unfair labor prac- tices, within the meaning of Section 8 (3) of the Act, with regard to them. ORDER Upon the basis of the foregoing findings of fact and conclusions of law, and pursuant to Section 10 (c) of the National Labor Relations Act, the National Labor Relations Board hereby orders that the respondent Stehli & Co. Inc., and its officers, agents, successors, and assigns, shall: 1. Cease and desist from : (a) Refusing to bargain collectively with Textile Workers Union of Lancaster, Pennsylvania and Vicinity, Local #133, as the exclu- sive representative of its production and maintenance employees, ex- clusive of office help, salesmen, watchmen, firemen, truckmen, execu- tives, superintendents, foremen, assistant foremen, and those doing supervisory work, employed at the respondent's plant in Lancaster, Pennsylvania ; (b) In any manner dominating or interfering with the administra- tion of Independent Silk Workers Union of Rossmere, or dominating or interfering with the formation and administration of any other labor organization of its employees, or contributing support to said Independent Silk Workers Union of Rossmere, or to any other labor organization of its employees; (c) Discouraging membership in Textile Workers Union of Lan- caster, Pennsylvania and Vicinity, Local #133, or in any other labor organization of its employees, by discharging, laying off, refusing to reinstate any of its employees, reinstating them to less desirable posi- tions, or in any other manner discriminating in regard to hire and tenure of employment, or any term or condition of employment; 1458 DECISIONS OF NATIONAL LABOR RELATIONS BOARD (d) In any other manner interfering with, restraining, or coercing its employees in the exercise of their rights to self-organization, to form, join, or assist labor organizations, to bargain collectively through representatives of their own choosing, and to engage in concerted activities, for the purposes of collective bargaining or other mutual aid and protection, as guaranteed in Section 7 of the National Labor Relations Act. 2. Take the following affirmative action, which the Board finds will effectuate the policies of the Act : (a) Refrain from recognizing Independent Silk Workers Union of Rossmere, by whatever name now known, as a representative of any of its employees for the purpose of dealing with the respondent concerning grievances, labor disputes, rates of pay, wages, hours of work, or other conditions of employment, and completely disestablish said organization as a representative of its employees; (b) Upon request, bargain collectively with Textile Workers Union of Lancaster, Pennsylvania and Vicinity, Local #133, as the exclusive representative of the production and maintenance employees, exclu- sive of office help, salesmen, watchmen, firemen, truckmen, executives, superintendents, foremen, assistant foremen, and those doing super- visory work, employed in the respondent's plant in Lancaster, Pennsyl- vania, in respect to rates of pay, wages, hours of work, or other condi- tions of employment; (c) Offer reinstatement to the employees listed in Appendix A, and, upon application, to all the employees, including William C. Overly, who went on strike and who (1) have not since been reinstated at all, or (2) have not since been reinstated to their former or sub- stantially equivalent positions on the shifts on which they were employed at the commencement of the strike, or (3) have since been reinstated to any position, but were thereafter temporarily laid off for lack of work, but not including those employees who went on strike, who were reinstated following the termination of the strike, but who, we have found above, were subsequently discharged for cause, to their former or substantially equivalent positions on the shifts on which they were employed at the commencement of the strike, without preju- dice to their seniority and other rights and privileges, in the manner set forth in the section entitled "Remedy" above, placing those em- ployees for whom employment is not immediately available upon a preferential list in the manner set forth in said section, and there- after, in said manner, offer them employment as it becomes available; (d) Make whole all the employees listed in Appendix A, except Catherine W. Harmes and George D. Booth, for any losses of pay they may have suffered by reason of the respondent's discrimination against them, by paying to each of them an amount equal to that which STEHLI AND CO., INC., ET AL. 1459 he would have earned as wages during the period from August 18, 19 or 20, 1937, as the case may be, to the date of the offer of reinstatement, or placement on the preferential list, less his net earnings 46 during that period, had the respondent, on August 18, 19 or 20, 1937, as the case may be, reinstated him in his former or substantially equivalent position on the shift on which he was employed at the commencement of the strike, and had the respondent, in the event of any subsequent reduction of the force of employees needed, reduced its force, without discrimination against any employee because of his union activity or affiliation, following a system of seniority (or other procedure) to such extent as has heretofore been applied in the conduct of the re- spondent's business; provided that the respondent shall deduct from the back pay due each employee a sum equal to that received by such employee for work done in Federal, State, county, municipal, or other work-relief projects during the period for which back pay is due him under this Order, and shall pay any such amount deducted to the appropriate fiscal agency of the Federal, State, county, municipal, or other government or governments which supplied the funds for said work-relief projects; (e) Make whole Catherine W. Harmes for any loss of pay she may have suffered by reason of the respondent's discrimination against her, by paying to her an amount equal to that which she would have earned as wages during the period from August 19, 1937, to the date of the offer of reinstatement, or placement on the preferential list, excluding from the computation of her back pay the period from February 28, 1938, the date of the Intermediate Report, to the date of the Order herein, less her net earnings 47 during the periods for which back pay is computed, had the respondent reinstated her on August 19, 1937, in her former or substantially equivalent position on the shift on which she was employed at the commencement of the strike, and had the respondent, in the event of any subsequent reduc- tion of the force of employees needed, reduced its force, without dis- crimination against any employee because of his union activity or affiliation, following a system of seniority (or other procedure) to such extent as has heretofore been applied in the conduct of the re- spondent's business; provided that the respondent shall deduct from the back pay due flarmes a sum equal to that received by her for work done in Federal, State, county, municipal, or other work-relief projects during the periods for which back pay is due her under this Order, and shall pay any such amount deducted to the appropriate fiscal agency of the Federal, State, county, municipal, or other govern- ment or governments which supplied the funds for said work-relief projects; 40 See footnote 41, supra. 47 See footnote 41, supra. 1460 DECISIONS OF NATIONAL LABOR RELATIONS BOARD (f) Make whole George D. Booth for any loss of pay he may have suffered by reason of his discharge, by paying to him an amount equal to that which he would normally have earned as wages during the period from February 26, 1937, to the date of the offer of reinstate- ment, or placement on the preferential list, excluding from the compu- tation of his back pay the period from February 28, 1938, the date of the Intermediate Report, to the date of the Order herein, less his net earnings 48 during the periods for which back pay is computed; pro- vided that the respondent shall deduct from the back pay due Booth a sum equal to that received by him for work done in Federal, State, county, municipal, or other work-relief projects during the periods for which back pay is due him under this Order, and shall pay any such amount deducted to the appropriate fiscal agency of the Federal, State, county, municipal, or other government or governments which supplied the funds for said work-relief projects; (g) Make whole the other employees ordered to be offered rein- statement in paragraph 2 (c) above for any loss they will have suf- fered by reason of the respondent's refusal to reinstate them, upon application, following the issuance of this Order, by payment to them, respectively, of a sum of money equal to that which each would have earned as wages during the period from 5 days after the date of such application for reinstatement to the date of the offer of reinstatement or placement on the preferential list, less his net earn- ings 411 during said period; provided that the respondent shall de- duct from the back pay due each of said employees a sum equal to that received by said employee for work done in Federal, State, county, municipal, or other work-relief projects during the period for which back pay is due him under this Order, and shall pay any such amount deducted to the appropriate fiscal agency of the Federal, State, county, municipal, or other government or governments which supplied the funds for said work-relief projects; (h) Post immediately notices to its employees in conspicuous places throughout its plant in Lancaster, Pennsylvania, stating: (1) that the respondent will cease and desist in the manner set forth in para- graphs 1 (a), (b), (c), and (d), of this Order; (2) that the re- spondent will refrain from any recognition of Independent Silk Workers Union of Rossmere as a representative of any of its em- ployees, and completely disestablishes it as such representative; (3) that the respondent's employees are free to remain or become members of Textile Workers Union of Lancaster, Pennsylvania and Vicinity, Local #133, and that the respondent will not discriminate against any employee because of such membership ; and (4) that the 4" See footnote 41, supra. 40 See footnote 41, supra. STEHLI AND CO., INC., ET AL. 1461 respondent will, upon request, bargain with Textile Workers Union of Lancaster, Pennsylvania and Vicinity, Local #133, as the rep- resentative of all its employees, exclusive of office help, salesmen, watchmen, firemen, truckmen, executives, superintendents, foremen, assistant foremen, and those doing supervisory work, employed at its plant in Lancaster, Pennsylvania; (i) Maintain such notices for a period of at least sixty (60) con- secutive days from the date of posting; . (j) Notify the Regional Director for the Fourth Region in writing within ten (10) days from the date of this Order what steps the respondent has taken to comply herewith. AND IT IS FURTHER ORDERED that the complaint be, and it hereby is, dismissed in so far as it alleges, with regard to Robert H. Hertz, Charles L. Sload, Paul Yarnall, Paul V. Schreck, and William C. Overly, that the respondent has engaged in and is engaging in unfair labor practices within the meaning of Section 8 (3) of the Act. AND IT IS FURTHER ORDERED that the petition for investigation and certification of representatives, filed by Textile Workers Union of Lancaster, Pennsylvania and Vicinity, Local #133, be, and it hereby is, dismissed. APPENDIX A George D. Booth George Carpenter John Caulwell Lewis E. Frank John Gibbs Clarence Harman Catherine W. Harmes C. Ellsworth Jones William Landis John McLane Harold Rankin Alonzo Sheneman Eugene Skiles Earl Weinhold Walter Zurcher 164276-39-vol. xi-93 Copy with citationCopy as parenthetical citation