Strain Poultry Farms, Inc.Download PDFNational Labor Relations Board - Board DecisionsApr 10, 1967163 N.L.R.B. 972 (N.L.R.B. 1967) Copy Citation 972 DECISIONS OF NATIONAL LABOR RELATIONS BOARD Director to refuse to approve it. Accordingly, Employer argues that the Petitioner's execution and the Regional Director's approval of the stipulation amounted to acceptance of the Employer's modifications and revisions, and they became bound by it. We find no merit in these contentions. As to the validity of the rule, it is clear that "The control of election proceedings and the determination of the steps necessary to conduct that election fairly [are] matters which Congress entrusted to the Board alone."2 With respect to the Employer's other contentions, the Board, in adopting the Excelsior rule, made no exceptions as to the application of the rule except in the case of an expedited election conducted pursuant to Section 8(b)(7)(C). Nor did we provide for a unilateral, or for that matter, any modification or waiver of such rule. Moreover, such a policy could only lead to confusion and delay in representation proceedings. Accordingly, we find that the Employer's exceptions raise no material or substantial issue of fact or law which would warrant reversal of the Regional Director's findings and recommendations, which we hereby adopt.3 ORDER It is hereby ordered that the election conducted herein on December 21, 1966, be, and it hereby is, set aside. [Text of Direction of Second Election4 omitted from publication.] 2 N.L.R.B. v. Waterman S.S. Corp., 309 U.S. 206, 226. See also N.L.R.B. v Shirlington Supermarkets, 224 F.2d 649, 651 (C.A. 4). 8 We find no merit in the Employer's further exceptions wherein it contends that the Board's adoption of the Excelsior rule was in violation of Section 139(c) of the Federal Reports Act. This latter act is concerned with the general gathering of "information" by Federal agencies for sundry purposes and is inapplicable to the Board's procedural requirements as to elections. (See N.L.R.B. v. Waterman S.S. Corp., supra.) 4 An election eligibility list, containing the names and addresses of all the eligible voters, must be filed by the Employer with the Regional Director for Region 13 within 7 days after the date of issuance of the notice of Second Election by the Regional Director. The Regional Director shall make the list available to all parties to the election. No extension of time to file this list shall be granted by the Regional Director except in extraordinary circumstances. Failure to comply with this requirement shall be grounds for setting aside the election whenever proper objections are filed Excelsior Underwear Inc., supra. Strain Poultry Farms , Inc. and International Union of District 50, United Mine Workers of America . Cases 10-CA-6539 and 6685. April 10, 1967 DECISION AND ORDER BY CHAIRMAN MCCULLOCH AND MEMBERS BROWN AND ZAGORIA On December 9, 1966, Trial Examiner George A. Downing issued his Decision in the above-entitled proceeding, finding that the Respondent had engaged in and was engaging in certain unfair labor practices and recommending that it cease and desist therefrom and take certain affirmative action, as set forth in the attached Trial Examiner's Decision. Thereafter, the Respondent filed exceptions to the Decision and a supporting brief. Pursuant to the provisions of Section 3(b) of the National Labor Relations Act, as amended, the National Labor Relations Board has delegated its powers in connection with this case to a three- member panel. The Board has reviewed the rulings of the Trial Examiner made at the hearing and finds that no prejudicial error was committed. The rulings are hereby affirmed. The Board has considered the Trial Examiner's Decision, the exceptions and brief, and the entire record in the case, and hereby adopts the findings, conclusions, and recommendations of the Trial Examiner, except as modified herein.' ORDER Pursuant to Section 10(c) of the National Labor Relations Act, as amended, the National Labor Relations Board adopts as its Order the ' In agreement with the Trial Examiner, we find ample record evidence that the Respondent was prompted by antiunion considerations in granting economic benefits to the unit employees during the critical preelection period. We therefore adopt his ultimate conclusion that this conduct was violative of Section 8(a)(1) of the Act. N.L.R.B. v Exchange Parts Company, 375 U.S 405 We do not, however, adopt his alternative reasoning that, irrespective of the Respondent's motivation, Respondent acted unlawfully in granting the benefit involved without first discussing the matter with the Union. The Respondent's statutory obligation to bargain with the Union attached only after the Union, attained majority status. The complaint does not allege, and the' record does not show, that the Union established its majority until it won the election on August 18. In considering the violations based upon the Respondent's broad no-solicitation and no-distribution rule, we are satisfied, as was the Trial Examiner, that the Respondent's maintenance of that rule at all times here relevant had an inhibiting effect on the employees' exercise of their statutory rights. Accordingly, although the Respondent instituted the rule in 1964, some 2 years before the advent of union activity, we agree with the Trial Examiner that Respondent's continuing maintenance of the rule in its present form is violative of Section 8(a)(1) and should be enjoined. Respondent's initial promulgation of the rule is, of course, outside the scope of our inquiry, in view of Section 10(b) of the Act, and we base no violation findings on such promulgation 163 NLRB No. 132 STRAIN POULTRY FARMS 973 Recommended Order of the Trial Examiner, as modified and corrected below, and hereby orders that the Respondent, Strain Poultry Farms, Inc., Dalton, Georgia, its officers, agents, successors, and assigns, shall take the action set forth in the Trial Examiner's Recommended Order, with the following modifications and corrections: 1. Delete the word "promulgated" from paragraphs 1(a) and (b) of the Trial Examiner's Recommended Order. 2. Substitute for subparagraph 1(d) of the Trial Examiner's Recommended Order the following: "(d) Granting economic benefits to its employees for the purpose of influencing them to reject the Union as their representative or to discourage their membership in, or adherence to, the Union." 3. Amend the Trial Examiner's notice by (a) deleting the word "promulgate" from the first and second paragraphs thereof, and (b) substituting, for the fourth indented paragraph thereof, the following: WE WILL NOT grant economic benefits to our employees for the purpose of influencing them to reject the Union as their representative or to discourage their membership in, or adherence to, the Union. 4. Correct the Trial Examiner's Conclusions of Law, Recommended Order, and Notice by striking therefrom the name "Howard Holbrook" wherever it appears therein, and substituting therefor the name "Howard Holbert." TRIAL EXAMINER'S DECISION STATEMENT OF THE CASE GEORGE A. DOWNING, Trial Examiner: These consolidated proceedings, brought under Section 10(b) of the National Labor Relations Act, as amended, were heard at Dalton, Georgia, on October 25, 1966, pursuant to due notice. The complaint in Case 10-CA-6539, issued on September 2 on charges dated May 2 and August 25, 1966,i alleged that Respondent engaged in unfair labor practices proscribed by Section 8(a)(1) and (3) of the Act by maintaining and enforcing an unlawfully broad no- solicitation no-distribution rule, by threatening to sell its trucks and to subcontract its hauling, by granting economic benefits without notice to or consultation with the Union at a time when a representation petition was pending, and by discharging Howard Holbert on April 29 because of his union membership and activities. The complaint in Case 10-CA-6685, issued on September 21 on charges dated September 7 and 12, alleged that Respondent engaged in an unfair labor practice proscribed by Section 8(a)(5) and (1) of the Act by refusing since September 6 to bargain with the Union as the certified and exclusive bargaining representative of the employees, in an appropriate unit. Respondent filed separate answers in which it denied the unfair labor practices with which it was charged and in which it pleaded in part that its operations were not subject to the National Labor Relations Act because exempt therefrom as an agricultural operation. Upon the entire record in the case and from my observation of the witnesses I make the following: FINDINGS OF FACT 1. JURISDICTIONAL FINDINGS ; THE LABOR ORGANIZATION INVOLVED I conclude and find on facts alleged in the complaint and admitted by answer that Respondent, a Georgia corporation with plants at Dalton and Acworth, Georgia, where it is engaged in the production and sale of poultry products, is engaged in commerce within the meaning of Section 2(6) of the Act (through sales in the State of Georgia in excess of $50,000 annually to Cagle's Inc., which makes direct extrastate sales and shipments annually of products valued in excess of $50,000), and that the Charging Union, District 50 herein, is a labor organization within the meaning of Section 2(5) of the Act. II. THE UNFAIR LABOR PRACTICES A. Introduction; the Representation Proceedings; the Issues Respondent's operations are fully described at 160 NLRB 236, in the Board's Decision in the representation proceeding in Case 10-RC-6652, to which reference is here made. The employees involved herein are its coop truckdrivers hauling out of its Dalton and Acworth operations. Following organizational activities in March and a request for recognition on March 23, District 50 filed a representation petition on March 31 and a hearing was held on April 21. Following the Board's Decision on July 26, an election was held on August 18, and was won by the Union, which was certified by the Regional Director on August 26. The Union's request to bargain on August 29 was refused by Respondent on September 6 on the same ground on which it had sought dismissal of the representation petition before the Board; i.e., that Respondent's operations were agricultural and its employees were agricultural laborers over whom the Board had no jurisdiction under Section 2(3) of the Act. The Board, however, rejected that contention, 160 NLRB 236, supra, and Respondent made no attempt to relitigate the question herein, standing on the record as made in the representation proceeding, which was offered and received in evidence. Thus no issue is presented under the complaint in Case 10-CA-6685 save the one the Board ruled on in the representation proceeding. The issues in Case 10-CA-6539 are factual ones surrounding the alleged acts of interference, restraint, and coercion (i.e., threats, granting of benefits, an invalid no-solicitation no-distribu- tion rule) and the alleged discriminatory discharge. B. The Refusal to Bargain ; Case 10-CA-6685 There being no issue in Case 10-CA-6685 save Respondent's defense which the Board rejected in the representation case, I conclude and find that by refusing to bargain with the Union on and after September 6, Respondent engaged in unfair labor practices proscribed by Section 8(a)(5) and (1) of the Act. ' AU events herein occurred in 1966 974 DECISIONS OF NATIONAL LABOR RELATIONS BOARD C. Case 10-CA-6539 1. The evidence a. The no-solicitation no-distribution rule Respondent admits that it promulgated around January 1, 1964, the following rule: Employees may not solicit for any purpose or sell anything during their working time or on Company property. Solicitation, selling, or distribution of literature is prohibited at any time or place where such action adversely affects production or discipline. For the first violation the employee will receive a warning; for the second violation he will receive a three-day suspension; for the third violation he will receive a five-day suspension; and for the fourth violation he will be discharged. Respondent denies, however, that it enforced the rule and denies that the effect of the rule was to prohibit the employees from engaging in solicitation during the organizational campaign. Employee witnesses Lloyd Johnson, Odell O'Neal, and Howard Holbert admitted that they knew of no warnings being given for violation of the rule, but testified to their knowledge of the penalties provided in it. O'Neal testified that he knew that he would be punished in some way if he violated the rule, and Howard Holbert testified that he felt a violation of the rule would affect the terms of his employment. Though there was no evidence that the rule was violated by employees, it is undisputed that Respondent regularly permitted solicitations for the United Appeal Other evidence concerning Respondent's assessment of the rule is set forth under the subject of Holbert's discharge, section d, infra. Board, did not feel that the Company was large enough for a third party, and felt that matters could be worked out between the employees and the employer.3 Souther also stated that there would be no discrimination against the drivers because of their union activities and that they had the legal right to ask for union representation. On April 16 Souther held another meeting with the drivers and read them the following statement: I appreciate your discussing with me last week the complaints that you feel are present in your jobs. We only regret that you waited till this late date to bring them to our attention. Without indicating or implying that we could do anything, we are prevented as a matter of law from making any changes in wages, hours, or working conditions while the union is claiming to represent you. I thought we owed you the courtesy of this explanation. I think that you should know that our business is an agricultural operation and its charter obtained from the government limits it to farm operations, agricultural work is exempt from the National Labor Relations Act and laws. It is our position that we are exempt. We do not intend to keep in this operation any portion of part that is nonagricultural. This means that in the event the proper governmental authorities would find that we are subject to the National Labor Relations Act and that our coop truck operations to Atlanta from the farms are nonagricultural then in such an event it would be our intention to eliminate this nonagricultural operation. Boiled down, this means that we would plan to get rid of our trucks and truckdrivers We, however, would do so subject to the law and would attempt to meet all requirements thereof. b. The threats On March 23, the Union made a request for recognition as bargaining agent of the drivers, and on March 24 and 25, Division Manager J. Gordon Souther polled all the drivers in groups of two each concerning whether they desired union representation or whether they desired the issue to be disposed of by secret ballot in an election.2 Souther testified that he intended to learn the individual wishes of the employees as to whether they desired union representation at all or whether they wished to have an election on the question, and he tallied at the foot of the statement the results of his polling, noting opposite the name of each driver the date and the choice which each indicated. In 12 cases the result noted was "Secret Ballot," in one case it was "No Union Representation," and in one case it was "No Union." Further background evidence was supplied by testimony concerning Souther's meeting with the drivers on April 9 (again not covered by a complaint allegation). Souther told the employees that the Company did not believe the drivers were under the jurisdiction of the 2 Though there was some conflict in the evidence, I credit Souther's testimony that he read the text of a written statement, set out in Appendix A attached hereto Furthermore no issue is presented whether Souther's conduct constituted proscribed interference, restraint, or coercion, for, without seeking to amend his complaint to include that conduct, the General Counsel disclaimed it as violative of Section 8(a)(1) and stated that he was offering it only as "background " Souther informed the drivers that no questions would be answered. Holbert asked for a copy of the paper or for permission to read it but Souther refused. Testimony by Johnson, O'Neal, and Holbert differed somewhat from the foregoing text, particularly in emphasis on the threat to sell the trucks and release the drivers. They agreed, however, that Souther read from a written statement and Johnson admitted when shown the statement on cross-examination that Strain said, "Pretty close the same thing." I believe also that Johnson and O'Neal confused Souther's speech with one to similar effect which Strain made in August, as next referred to. On August 9, Vice President Strain made a speech to various groups of truckdrivers at Dalton and Acworth in which he expounded at some length on Respondent's position concerning the impending election and the alleged exemption. Both Johnson and O'Neal testified that Strain asked the employees to vote against the Union and stated that if the Union wr n the election, he would appeal to a higher court and that if the court held that his operations were subject to the National Labor Relations Act he would sell his trucks and have the chickens hauled ' Composite testimony of Johnson, O'Neal, and Holbert as reconciled I find that Johnson mistakenly ascribed the statements to Hall O'Neal's testimony that Souther stated the Company was not going to recognize the Union in any way, was not supported by Johnson and Holbert STRAIN POULTRY FARMS by contract haulers before he would recognize the Union. On cross-examination Johnson testified that Strain said he felt his business was an agricultural operation, not subject to the Act, and that he could not have any part of his business operate on a nonagricultural basis. Strain's testimony was not substantially in conflict. He admitted he asked the employees to vote "No," as the simj lest way to resolve the matter, explaining that otherwise the Company had no alternative except to stand on its claim of the agricultural exemption, and that if on appeal to the courts the ruling should be that the operation was nonagricultural, the Company had no choice under its corporate charter except to divest itself in a legal manner of any activity that was not deemed to be agricultural. In discussing how the Company would operate if its exemption were lost, Strain explained that the elimination of the trucking operation was tied to the agricultural exemption, that the Company would have to conduct its activities within the agricultural exemption as far as it went, and would terminate its operations at the chickenhouse. It is thus apparent even under Strain's testimony that he told the employees in more verbose fashion what Souther told them briefly on April 16 in his summarizing words, "Boiled down, this means that we would plan to get rid of our trucks and truckdrivers." And it was thus the employees understood it. c. The grant of benefits Effective May 23 Respondent gave a general (unsolicited) wage increase to its truckdrivers without consulting or notifying the Union. Eight drivers received 20 cents an hour, two 25 cents, and one 15 cents.4 Percentagewise the 20- and 25-cent increases ranged from 15 to 18-1/2 percent, and the single raise of 15 cents equaled 10 percent. Though the employees had not sought or requested the raise Lloyd Johnson testified that when informed of it by Foreman Jack Hall, he was given a form to sign that he had requested the raise. Hall also informed Johnson and O'Neal that their workdays would be cut from 5 to 4 and the hours from 75 or 80 to around 60 a week. Respondent offered a transcript of its payroll records which showed that it also raised its 33 other employees over a period from April 18 through July 25, 11 of those raises being given on various dates prior to May 23, 1 on May 23, and 21 on various dates on and after May 30. Nineteen of those raises were at 5 cents an hour, 12 at 10 cents, one at 15 cents, and one at 20 cents. In 31 out of the 33 cases the percentage of increase ranged from 3.2 to 8 percent: 1 amounted to 9.7 percent, and 1 to 13 percent.,') 'Vice President Strain testified that the raises were given to meet competitive conditions in the industry, that some competitors had raised their rates as much as 25 cents an hour in anticipation of wage-hour legislation by Congress, and that Georgia Broilers at Gainesville had made an increase which "rippled out" through the industry and which made it necessary for Respondent to examine the labor market and to adjust its position . Strain consulted his counsel , who advised him to avoid making the increase 4 Howard Holbert, discharged on April 29, had received a lt, cent increase on April 18, but Vice President Willard Strain testified that that was an automatic increase which followed Holbert 's successful completion of his 90-day orientation period 5 A separate transcript purported to cover only employees of Georgia Poultry Feed Mills, Inc , a separate corporation which is 975 if he could do so, for it might be misconstrued as an unfair labor practice. Feeling, however, that the labor market forced the action, it was decided to take the "calculated risk" and to grant the increase. Strain admitted that the work hours were also reduced at the same time and testified that it was due in part to reduced workloadss and in part to the fact that the drivers were working more hours than they were physically able to work. On cross-examination Strain added he also desired to make the hours compliant with ICC regulations. Also pertinent to the issue of reduced work hours was evidence concerning the contract haulers, who have been used since 1963 to supplement the regular force of employee drivers. Though Strain estimated that at the time of the hearing the contract haulers were hauling approximately 60 percent of the total volume, he deferred to Foreman Hall on the question whether the contractors were hauling more currently than they did before. Souther estimated that the employee drivers were hauling currently slightly less of the product than they did before and that the contractors were hauling slightly more, but he also stated that Hall had the firsthand knowledge. Hall estimated that the contractors were currently hauling around 50 percent of the total product but stated that for the year the proportion which they hauled ran only from 35 to 40 percent. d. The discharge of Howard Holbert Howard Holbert was hired as a coop driver on January 18, 1966, and was discharged by Souther on April 29. No issue of competency was involved, for just before his discharge he had qualified for an automatic increase upon completion of his 90-day orientation period, and he was characterized by Strain as the "most capable of employees that we have ever had." Holbert had been active in the organizational activities, had held one of the union meetings in his home, and had attended the representation hearing as a prospective union witness. Though Respondent's witnesses denied knowledge of Holbert's activities, Souther admitted that he presumed that Holbert was in favor of the Union and cited Holbert's actions in the meeting of April 16 and his assertion of "constitutional rights" at the time. Furthermore though Foreman Hall also denied knowledge of Holbert's union activities, he admitted on cross- examination that after the representation petition was filed he was informed on the telephone by a representative of Cagle's, Inc., in Atlanta of an incident on Cagle's yard when Holbert was seen talking with someone who was reported to be a union representative. Hall testified that it was his duty to report such incidents to his superior and that he informed Souther of it. Souther did not deny that testimony. Since it was Holbert's conduct at Cagle's which led ultimately to the discharge, we review briefly the setting in which that conduct occurred. Cagle's was Respondent's principal customer and George Cagle was president of both corporations. Cagle's employees were represented by District 50, whose not involved herein If considered relevant, it reflected that some 14 employees received raises from April 2 to July 25 of some 5 to 15 cents, or percentagewise from 3 to 11 percent 6 Foreman Hall testified, however, that the first half of the year is the best season 976 DECISIONS OF NATIONAL LABOR RELATIONS BOARD representative , Samuel A . Hider , sometimes visited the premises. Much of the hauling which Holbert and the other drivers did was to Cagle's yard in Atlanta , where the drivers spent considerable time (from 2 to 7 or more hours per trip) waiting for their trucks to be reached for unloading. During such time the drivers were free to use the privileges of the cafeteria and to sleep in their truck if they wished . The only requirement shown by the record was, under Lloyd Johnson 's testimony , that the drivers stay in the immediate area around their trucks. O'Neal and Holbert testified to certain occurrences in the yard which gave them the impression that Cagle's dock foreman was spying or attempting to spy upon the drivers even in the cafeteria . The evidence is undisputed that Holbert protested those activities to Cagle's vice president , Douglas Cagle , on or about Wednesday, April 20 ,7 nor is Holbert 's account of their conversation denied. Holbert reported to Cagle that the dock supervisor and another employee were trying to spy on the drivers and that their conduct was such as to remind him of attempts by juvenile delinquents to operate an international spy ring. Cagle denied knowledge of the conduct , disclaimed any dominion over Respondent's employees, and stated that he would check into the conduct of which Holbert was complaining. Holbert denied that he accused Cagle himself of running a spy ring. Holbert reported the matter to Foreman Hall upon his return to Dalton. Strain testified that Cagle reported to him on the telephone that Holbert had created a scene in Cagle's office, that he passed that information on to Souther (without attempting otherwise to describe the incident), and directed Souther to get to the bottom of it . Souther himself also called Cagle and on April 22 called in Holbert. There is sharp conflict in the testimony concerning their conversation . Holbert testified that Souther ques- tioned him as to the identity of the union representatives at Cagle's and asked when Holbert had talked to them and 'by what right he had done so. Souther accused Holbert of participating in union activities on company time, of making a slanderous statement to Cagle, and stated that Holbert was forbidden to speak with anyone at Cagle's or to any union representative there and that if Holbert violated those instructions , "[A]action would be taken ." Holbert denied stating that he would speak to Cagle or anyone else whenever he wanted to, denied stat- ing that Souther was too stupid to understand, and denied charging that Souther was looking for an excuse to fire him. Denying that any reference was made to the Union or to union activity , Souther testified that he asked Holbert to explain certain uncomplimentary remarks which Holbert made at Cagle's office , asking specifically what Holbert meant by charging them with running a spy ring. Holbert denied that he had said that , but admitted he made some comment that one would think they were running a spy ring because of certain happenings on the yard . Souther informed Holbert he should have reported such matters to his supervisor , Jack Hall , and Holbert stated he had done so. Souther replied that Holbert 's report to Hall occurred after Holbert had already committed the intrusion in ' Though Holbert fixed the date as April 26 , it is apparent from the chronology of subsequent events that it occurred on or about the 20th , as Souther 's testimony fixed it " Holbert 's testimony shows that he confused the conversation Atlanta and warned Holbert not to go into Cagle's office again or to make statements of an uncomplimentary nature. Holbert stated that he would go into the office whenever he pleased and that it was his "constitutional right" to do so. When Souther asked what Holbert meant , Holbert replied that Souther was too dumb to understand . Souther warned Holbert not to do such a thing again , and there was an angry exchange with Holbert charging that Souther was looking for an excuse to fire him and with Souther answering that, "[Y]ou do that again and you ' ll get fired." Thereupon Souther ordered Holbert to leave the office. On Monday, Souther made a memorandum of the interview and mentioned the matter to Hall but did nothing further until the following Friday, April 29, when he summoned Holbert into his office and in Hall's presence discharged him. Holbert testified that Souther inquired whether he would change his attitude and told him that because of his union activities and because of making a slanderous statement at Cagle's the Company was discharging him." Souther testified that he began by asking whether Holbert had anything to say about what had happened the week before and Holbert replied that he did not . Souther asked if Holbert remembered calling him stupid and dumb and Holbert finally admitted using one of the terms but not the other one. Souther asked if Holbert did not feel he should apologize and Holbert replied he did not believe there was anything to apologize for. Thereupon Souther told Holbert he was going to terminate Holbert's employment and asked Hall to see that the proper forms were filled out. Hall's testimony was in substantial accord. The termination notice which Souther issued under date of May 2 contained the statement that Holbert was discharged "[B]ecause of insubordination . Holbert objected to instructions to him from J. G. Souther. These instructions were that Holbert not make derogatory statements to personnel in the office of Cagle's, Inc." Souther testified that he made no further investigation after his interview with Holbert on April 22 , that he did not discuss the discharge with Strain, and that he had no instructions from Strain concerning the discharge. Souther admitted that by Monday, April 25, he had gotten over the anger and the emotion which he felt at the end of the Friday interview and that Holbert made no further insulting or insubordinate remarks though he made other trips to Cagle's during the week. He testified further that although Holbert hurt his feelings by calling him stupid, he did not fire him for that reason but because of his insubordination as described in the separation notice; i.e., that he would do as he pleased and would not follow any sort of instructions. Respondent argues that Holbert's testimony concerning the discharge is not to be credited because the Union's original charge, filed after Holbert conferred with union representatives , specified in part that , "On or about April 29, the Company discriminated against Howard Holbert because of his Union activities, particularly him appearing at the Board with the Union representative to give testimony in the hearing, if needed." As noted the charge specified both union activities and Holbert 's appearance as a prospective witness at the at the discharge interview with that at the first interview I credit the mutually corroborative testimony of Souther and Hall concerning the discharge interview , and I find that Souther made no reference to Holbert 's union activities in the latter STRAIN POULTRY FARMS 977 Board hearing and it assigned violations of Section 8(a)(1), (3), and (4). Furthermore, an amended charge filed on August 25 dropped the claim of an 8(a)(4) violation and charged that Respondent discharged Holbert "in order to discourage membership in a labor organization." I find nothing in the foregoing record which reflects unfavorably on Holbert's credibility, particularly since Hall's testimony showed Respondent's concern with Holbert's union activity at Cagle's yard. Resolving the credibility issues I conclude and find from all the evidence that the testimony of both Holbert and Souther concerning the first interview is to be believed in part and to be disbelieved in part.9 Hall's testimony, undenied by Souther, established that Holbert' s union activities at Cagle's were a matter of concern to Respondent and that Cagle's representatives reported on those activities to Respondent; and Holbert's protest to Cagle concerned what the former considered to be unwarranted spying upon those activities. I therefore credit Holbert's testimony that Souther questioned him about the union activities at Cagle's, accused him of participating in union activities on company time, and forbade him to do so again or to speak with anyone at Cagle's. Except in those respects, however, I credit Souther's version of the interview, for I find that Holbert confused the first interview with the latter one at which Hall was present. Crediting also the mutually corroborative testimony of Souther and Hall concerning the discharge interview, I find that Souther made no reference to Holbert' s union activities in the latter. 2. Concluding findings a. The no-solicitation no-distribution rules The no-solicitation rule was obviously invalid in forbidding solicitation at any time on company property. Stoddard-Quirk Manufacturing Co., 138 NLRB 615, 621. Testimony concerning absence of warnings and lack of enforcement was not persuasive since there was no evidence that the employees undertook to engage in organizational activities on Respondent 's premises and none that they did not regard the rule as prohibiting campaign activities . Cf. The Lion Knitting Mills Company, 160 NLRB 801. Indeed , employee witnesses testified to knowledge of the penalties contained in the rule and to their belief that punishment would follow from violations. Thus the employees here viewed the rule as prohibiting union activities (cf. Lion Knitting Mills, supra), and the mere promulgation was sufficient to accomplish its purpose without affirmative efforts at enforcement. Finally there was evidence that Respondent was concerned with violations of the rule even when the drivers were off its premises, i.e., as at Cagle's, for it received reports from the latter concerning the union activities of its employees there and Souther warned Holbert that he was not to continue those activities. The no-distribution rule was also presumptively invalid upon its face, for its reach was not limited to working time nor to working areas . Stoddard-Quirk Manufacturing Company, supra , at 621-622. Furthermore Respondent made no showing that the rule was necessary in nonworking areas in order to "maintain production or discipline." Id., citing N.L.R.B. v. The Babcock and Wilcox Company, 351 U.S. 105. I therefore conclude and find that by promulgating and maintaining said rules Respondent interfered with, restrained, and coerced employees in the exercise of rights guaranteed by Section 7 of the Act. b. The threats Respondent was plainly entitled to inform the drivers of its legal position that they were agricultural laborers and that their employment was therefore not subject to the Act. It was also lawfully entitled to ask them to vote against the Union. It could not, however, threaten that if the Union won the election and if the drivers were found subject to the Act it would sell the trucks and contract out the hauling. By that blunt threat the employees were told that they could not win by choosing the Union, for if they did so Respondent would terminate its hauling operation and release them. Except for the fact that a partial, rather than an entire, closing was threatened, the situation resembles the one which the Supreme Court envisaged (though as unlikely to occur) in Textile Workers Union of America v. Darlington Manufacturing Co., 380 U.S. 263, 274. After first holding that it is not an unfair labor practice for an employer to close his entire business , even if the liquidation was motivated by vindictiveness toward the Union, the Court rejected the view of the court of appeals that the same conclusion applied to a partial closing of a plant. More pertinent to the present situation was the Court's further discussion of distinctions between an actual closing and a threat to close. Thus the Court stated that its holding would not justify an employer in interfering with employee organizational activities by threatening to close his plant as distinguished from announcing a decision to close already reached by the board of directors or other management authority, and it continued (Id. at footnote 20): An employer may be encouraged to make a definitive decision to close on the theory that its mere announcement before a representation election will discourage the employees from voting for the Union and thus his decision may not have to be implemented. Such a possibility is not likely to occur, however, except in a marginal business; a solidly successful employer is not apt to hazard the possibility that the employees will call his bluff by voting to organize . We see no practical way of eliminating this possible consequence of our holding short of allowing the Board to order an employer who chooses so to gamble with his employees not to carry out his announced intention to close. I therefore conclude and find that by threatening to sell its trucks, to subcontract its hauling, and to release the drivers, Respondent interfered with, restrained, and coerced employees in the exercise of their Section 7 rights. c. The grant of benefits It is undisputed on the record that at the time Respondent granted benefits to the drivers on May 23, it was fully aware of the organizational activities and of the 9 "It is no reason for refusing to accept everything that a witness says , because you do not believe all of it, nothing is more common in all kinds of iudicial decisions than to believe some and not all " N L R B v Universal Camera Corporation , 179 F.2d 749, 754(C A 2) 978 DECISIONS OF NATIONAL LABOR RELATIONS BOARD Union's claim of majority status, and further that it took action without notice to or consultation with the Union. It is now well established that, "The granting of economic benefits by unilateral action of an employer while union organizational efforts are underway, or while a representation election is pending, is a violation of Sections 8(a)(1) and 8(a)(5) of the Act ...... Crown Tar and Chemical Works v. N.L.R.B., 365 F.2d 588 (C.A. 10), and cases there cited. Even assuming there was sound economic basis for the action, Respondent was thus required at a minimum to notify the Union before taking action. Aside from that, however, analysis of Respondent's evidence tended not to support, but to discredit, its explanations. Thus comparison of the treatment accorded the drivers with that accorded the other employees discloses striking disparities. The drivers were all raised on May 23; only one of the other employees was raised on that date, the other 32 raises being scattered over a 14- week period. The bulk of the raises to the drivers was at 20 and 25 cents (15 to 18-1/2 percent), whereas the bulk of the raises to other employees was at 5 and 10 cents, or from 3.2 to 8 percent. Thus on average the drivers' raise was several times that which Respondent gave its other employees. Respondent's evidence contains no explanation for the highly favored treatment which the truckdrivers received over the other employees nor of the fact that Respondent felt it necessary to raise all the truckdrivers at once while scattering the raises to the other employees over a 3-month period Respondent's explanations concerning the reduction in hours also do not stand scrutiny. Basic to the evaluation of the evidence is the fact that the use of contract haulers, though normal, was supplementary to the hauling done by Respondent's employee drivers. Plainly, therefore, the slacker the period, the less the need to resort to supplemental hauling But the record here showed the opposite result, for under Hall's final estimate for Respondent the contractors were hauling 50 percent of the total volume at the time of the hearing (in the fall slack season) against some 35 to 40 percent for the year. Thu; the reduction in hours resulted pro tanto in taking the work from the drivers and giving it to the contractors, a result which cannot be considered unintentional in the light of the threats made by Souther on April 16 and Strain on August 9 to sell the trucks and contract out all the hauling. As for the alleged concern over the physical limitations of the drivers, the record did not indicate they were working any longer hours than they had during comparable periods in the past, and Strain's solicitude did not arise until after the union campaign was under way. Furthermore if the concern were genuine, the solution would seem to lie more reasonably in reducing the number of daily hours rather than the number of days driven. It is not meant by the foregoing findings to say that economic justifications which an employer advances must be economically sound, but rather to say that such economic considerations must be honestly invoked, and that an employer may not attempt to disguise an antiunion motive by speaking the language of economic necessity. N.L.R.B v Savoy Laundry, Inc., 327 F.2d 370, 372 (C.A. 2). Here Respondent's evidence itself furnished part of "reasonable cause for believing that the ground put forward by [ it] was not the true one and the ground was because of union activity " N L.R.B. v. Texas Bolt Company, 313 F.2d 761, 763 (C.A. 5). I therefore conclude and find that by granting wage increases to the drivers and by reducing their hours of work, Respondent interfered with, restrained , and coerced employees in the exercise of their Section 7 rights. d. The discharge of Howard Holbert Though Respondent's witnesses denied knowledge of Holbert's union activities, the evidence established that it was fully aware of Holbert's prominence in the organizational movement, particularly through his appearance with the union representative at the representation hearing and through the report from Cagle's representative to Hall as relayed to Souther. When that evidence is coupled with Souther's warning to Holbert in the first interview and with the other evidence of Respondent's antiunion bias, "the coalescent factors" were sufficient to establish a prima facie violation of Section 8(a)(3). Cf. Maphis Chapman Corporation v. N.L R.B., 368 F.2d 298 (C.A 4). In order to overcome the resulting presumption of discrimination, Respondent must assume the burden of showing a justifiable or nondiscriminatory reason for the discharge. Id. Respondent's evidence, however, fell far short of overcoming the prima facie showing of discriminatory intent . The following factors are of most significance: 1. Souther completed his investigation of Holbert's conduct at Cagle's with his first (April 22) interview with Holbert. 2. Though that interview ended under Souther's testimony on an angry and emotional note, Souther did not discharge Holbert on the spot but was provoked only into warning him that, "You do that again and you'll get fired." 3. Souther admitted that his anger subsided completely by Monday (April 25) and that his "hurt feelings" formed no part of the reason for the discharge. 4. Holbert admittedly did nothing after April 22 which Souther regarded as insubordinate to him or as violative of his instructions, though Holbert continued to haul to Cagle's during the week. 5. Despite the week's condonation of Holbert's alleged misconduct, and with anger ended, hurt feelings disclaimed, and no claim that Holbert had violated Souther's instructions or had engaged in new misconduct, Souther sought on April 29 to resurrect the original incident as the basis for discharging Holbert. It seems obvious, however, that if Holbert's attitude had not provoked discharge at the heated and emotional end of the first interview ," it could certainly not have been the real, the genuine, reason for discharging him a week later. Cf. N.L.R.B. v. C. & J. Camp, Inc., et al. d/b/a Ktber-Camp Phosphate Enterprises, 216 F.2d 113, 115 (C.A. 5). I therefore conclude and find that Respondent's evidence was insufficient to overcome the prima facie showing of discriminatory intent , that the reasons which Souther assigned for the discharge were not the true reasons, but that he acted instead because of Holbert's union activities. I thus conclude and find that by discharging Holbert Respondent engaged in 10 Indeed, Respondent argues by brief that Souther's only error was in not terminating Holbert at the first meeting STRAIN POULTRY FARMS discrimination to discourage union membership in violation of Section 8(a)(3) and ( 1) of the Act. Upon the basis of the foregoing findings of fact and upon the entire record in the case, I make the following: CONCLUSIONS OF LAW 1. By interfering with, restraining , and coercing its employees in the exercise of rights guaranteed in Section 7 of the Act, Respondent engaged in unfair labor practices within the meaning of Section 8(a)(1) of the Act. 2. By discharging Howard Holbrook because of his union membership and activities , Respondent engaged in discrimination to discourage membership in the Union, thereby engaging in unfair labor practices proscribed by Section 8(a)(3) and (1) of the Act. 3. All coop truckdrivers employed by Respondent out of its Dalton and Acworth, Georgia, operations , excluding office clerical employees , watchmen , guards and supervisors as defined in the Act, constitute a unit appropriate for the purposes of collective bargaining within the meaning of Section 9(b) of the Act. 4. At all times since August 26, 1966, the Union has been the exclusive collective - bargaining representative of all the employees in the aforesaid unit. 5. By refusing on and after September 6, 1966, to bargain with the Union , Respondent engaged in unfair labor practices proscribed by Section 8(a)(5) and (1) of the Act. 6. The aforesaid unfair labor practices affect commerce within the meaning of Section 2(6) and (7) of the Act. THE REMEDY Having found that Respondent engaged in certain unfair labor practices, I shall recommend that it cease and desist therefrom and that it take certain affirmative action of the type which it conventionally ordered in such cases as provided in the Recommended Order below, which I find to be necessary to remedy and to remove the effects of the unfair labor practices and to effectuate the policies of the Act. For reasons which are stated in Consolidated Industries Inc., 108 NLRB 60, 61, and cases there cited, I shall recommend a broad cease-and-desist order. Upon the foregoing findings of fact and conclusions of law and the entire record, and pursuant to Section 10(c) of the Act, I hereby issue the following: RECOMMENDED ORDER Strain Poultry Farms, Inc., its officers, agents, successors , and assigns , shall: 1. Cease and desist from. (a) Promulgating, maintaining, or enforcing any rule prohibiting its employees during nonworking time from soliciting other employees to join the Union. (b) Promulgating, maintaining , or enforcing any rule prohibiting its employees, when they are on nonworking time, from distributing literature on behalf of any labor organization in nonworking areas of Respondent's property. (c) Threatening its employees that if the Union wins the election it will sell its trucks, subcontract the hauling of its products, or release the drivers. i i In the event that this Recommended Order is adopted by the Board , the words " a Decision and Order" shall be substituted for the words " the Recommended Order of a Trial Examiner" in the notice In the further event that the Board ' s Order is enforced by 979 (d) Granting economic benefits to its employees within the unit above found without notification to or consultation with the Union. (e) Discouraging membership in the Union, or any other labor organization of its employees, by discharging or failing to reinstate them or in any other manner discriminating in regard to their hire or tenure of employment or any term or condition of employment. (f) Refusing to bargain with the Union as the collective- bargaining representative of the employees in the appropriate unit. (g) In any other manner interfering with, restraining, or coercing its employees in the exercise of their right to self- organization, to form, join, or assist International Union of District 50, United Mine Workers of America, or any other labor organization, to bargain collectively through representatives of their own choosing or to engage in other concerted activities for the purpose of collective bargaining or other mutual aid or protection, or to refrain from any or all such activities. 2. Take the following affirmative action: (a) Offer to Howard Holbrook immediate and full reinstatement to his former or substantially equivalent position, without prejudice to his seniority or other rights and privileges, and make him whole for any loss of pay which he may have suffered by payment to him of a sum of money equal to that which he would normally have earned from April 29, 1966, to the date of the offer of reinstatement , less his net earnings during said period (Crossett Lumber Company, 8 NLRB 440), said backpay to be computed on a quarterly basis in the manner established by the Board in F. W. Woolworth Company, 90 NLRB 289, together with interest thereon at the rate of 6 percent per annum. Isis Plumbing & Heating Co., 138 NLRB 716. [Notify the above-named employee if presently serving in the Armed Forces of the United States of his right to full reinstatement upon application in accordance with the Selective Service Act and the Universal Military Training and Service Act, as amended, after discharge from the Armed Forces.] (b) Bargain collectively, upon request, with the Union concerning rates of pay, wages, hours of employment, or other conditions of employment of its employees in the appropriate unit herein found. (c) Preserve and, upon request, make available to the Board or its agents, for examination and copying, all payroll records, social security payment records, timecards, personnel records and reports, and all other records necessary to analyze the amount of backpay due under these recommendations (d) Post at its offices and plants at Dalton and Acworth, Georgia, copies of the attached notice marked "Appendix B.'" I Copies of said notice, to be furnished by the Regional Director for Region 10, after being duly signed by Respondent's representative, shall be posted by Respondent immediately upon receipt thereof, and be maintained by it for 60 consecutive days thereafter, in conspicuous places, including all places where notices to employees are customarily posted. Reasonable steps shall be taken to insure that said notices are not altered, defaced, or covered by any other material. a decree of a United States Court of Appeals , the words "a Decree of the United States Court of Appeals Enforcing an Order" shall be substituted for the words "a Decision and Order " 295-269 0-69-63 980 DECISIONS OF NATIONAL LABOR RELATIONS BOARD (e) Notify the Regional Director for Region 10, in writing, within 20 days from the date of this Decision, what steps have been taken to comply herewith.12 'Z In the event that this Recommended Order is adopted by the Board, this provision shall be modified to read "Notify the Regional Director for Region 10, in writing, within 10 days from the date of this Order, what steps Respondent has taken to comply herewith " APPENDIX A A talk to be given to truck drivers-not less than two each time. Do not entertain questions for discussion either before or after the speech. I have called this meeting today to discuss something which I believe to be as important to you as it is to the Company. I am reading from a prepared statement and the reason is to avoid any misunderstanding or confusion. I know exactly what I want to say, so I have written this statement. The United Mine Workers Union has contacted the Company and wants the Company to automatically recognize this union as your representative, that is for our coop truck drivers, without giving you a chance to vote in a secret ballot election. Provided our operation is subject to the jurisdiction of the National Labor Relations Board. The union has the right to ask for a government-run election, as does the Company. In such an election, you would be asked by secret ballot whether or not you want to be represented by this union. Your Company is faced with this problem; do we, 1) Recognize the union now as your exclusive representative without benefit of election or, 2) Refuse to recognize the union and leave it to you in a secret ballot? That is the reason I have called you together. Before I ask for a show of hands, let me assure you no employee will suffer reprisal or discrimination as a result of the vote today The sole purpose of the straw vote is to enable me to answer the union demand intelligently-At this time I ask for a show of hands from those who do not want union representation, or those who want the union question put to a secret ballot vote by the government-Now what I mean is that all who do not want union representation, please raise you hand and all who want a secret ballot, please raise your hand. Thank you. APPENDIX B NOTICE TO ALL EMPLOYEES Pursuant to the Recommended Order of a Trial Examiner of the National Labor Relations Board, and in order to effectuate the policies of the National Labor Relations Act, as amended, we hereby notify our employees that: WE WILL NOT promulgate, maintain , or enforce any rule which prohibits our employees during nonworking time from soliciting their fellow employees to join or support International Union of District 50, United Mine Workers of America, or any other labor organization. WE WILL NOT promulgate, maintain , or enforce any rule which prohibits our employees, when they are on nonworking time, from distributing literature on behalf of any labor organization in nonworking areas of our property. WE WILL NOT threaten employees that if the Union wins the election we will sell our trucks, subcontract the hauling of our products, or release the drivers. WE WILL NOT grant economic benefits to our employees without prior notification to or consultation with the Union. WE WILL NOT discourage membership in said District 50, or any other labor organization of our employees, by discharging or failing to reinstate them or in any other manner discriminate in regard to their hire or tenure of employment, or any term or condition of employment. WE WILL NOT in any other manner interfere with, restrain, or coerce our employees in the exercise of their right to self-organization, to form, join, or'assist said District 50, or any other labor organization, to bargain collectively through representatives of their own choosing or to engage in other concerted activities for the purpose of collective bargaining or other mutual aid or protection, or to refrain from any or all such activities. WE WILL offer to Howard Holbrook immediate and full reinstatement to his former or substantially equivalent position, without prejudice to his seniority or other rights and privileges, and make him whole in the manner provided in the Trial Examiner's Decision for any loss of pay which he may have suffered as a result of our discrimination against him. WE WILL bargain collectively upon request with International Union of District 50, United Mine Workers of America, as the exclusive representative of our employees in the appropriate unit concerning rates of pay, wages, hours of employment, and other conditions of employment. The appropriate unit is: All coop truckdrivers employed by us out of our Dalton and Acworth, Georgia, operations, excluding all office clerical employees, watchmen, guards and supervisors as defined in the Act. All our employees are free to become or remain, or to refrain from becoming or remaining, members of the above-named or any other labor organization. STRAIN POULTRY FARMS, INC. (Employer) Dated By (Representative) (Title) Note: We will notify the above-named employee if presently serving in the Armed Forces of the United States of his right to full reinstatement upon application in accordance with the Selective Service Act and the Universal Military Training and Service Act, as amended, after discharge from the Armed Forces. This notice must remain posted for 60 consecutive days HOFFMAN BEVERAGE CO. 981 from the date of posting, and must not be altered, defaced, or covered by any other material. If employees have any question concerning this notice or compliance with its provisions, they may communicate directly with the Board's Regional Office, 528 Peachtree- Seventh Building, 50 Seventh Street, N.E., Atlanta, Georgia 30323, Telephone 526-5741. Hoffman Beverage Company and Hoffman Beverage Company, Debtor in Possession and Joseph Terry, Thomas Teaton , Arthur Anderson , Arthur Termotto , Albert Valentine , Michael Cardielo , William C. Hutchinson , John J . Bryan , John J. Dohrman , Pat Torre , Stephan Halop, Andrew Pastor, Harry A. Unser, _Anthony Delasandro , Anthony Angelicola , Pasquale J. Bellino , Anthony Crispo , Michael Buona- gura , Michael Chiaramonte , Henry Num- ssen , Joseph Mottola, Anthony J. Capone, Jr., Patrick S. Sheridan , Christopher Kelly, Ragnor Nelson , Frank Sadloz Anthony Mannino , Bernard P . Reyman, Chester J. Kolinoski , Andrew Newman, Anthony Radziavich , Leo J . Brzynski, Edwin Janecki , James Merolla , Joseph Dunican , Philip Trope , Luke P. Mullally, Joseph Gambarini , John J. Rembiszewski, Otto Amari , John T. Moloney, Thomas Leonick , Edward V. O'Connor , James V. Posa , Eugene J. Scheibing , Edward Philip Clifford , Augustin De Bellis , Walter Hopkins, Charles Longboat , Jr., Anthony J. Kapela , Louis Zangrillo , Michael J. Kruk, John Giordano , Charles S. Logerfo , Charles Priola , Earle C. Barling , and Onofino Castiglie . Cases 29-CA-88-1 through 29-CA- 88-46, 29-CA-88-48 through 29-CA-88-58. April 11, 1967 DECISION AND ORDER BY CHAIRMAN MCCULLOCH AND MEMBERS FANNING, JENKINS, AND ZAGORIA On February 21, 1966, Trial Examiner Sidney Sherman issued his Decision in the above-entitled proceeding, finding that the Respondent had engaged in and was engaging in certain unfair labor practices, and recommending that it cease and desist therefrom and take certain affirmative action, as set forth in the attached Trial Examiner's Decision. He also found that the Respondent had not engaged in certain other unfair labor practices and recommended the dismissal of such allegations. Thereafter, the Respondent and the General Counsel filed exceptions to the Decision and supporting briefs. The General Counsel also filed a reply brief and Respondent a supplemental brief. The National Labor Relation's Board has reviewed the rulings of the Trial Examiner made at the hearing and finds that no prejudicial error was committed. The rulings are hereby affirmed. The Board has considered the Trial Examiner's Decision, the exceptions and the briefs, and the entire record in the case, and hereby adopts the findings, conclusions, and recommendations of the Trial Examiner with the modifications stated hereinafter. 1. From September 8 to 15, employees of Respondent's Pelham Manor plant represented by Teamsters Local 46 picketed Respondent's Long Island City plant. The employees of the latter plant were represented by Teamsters Local 282. The picketing was in protest of Respondent's conduct in closing the Pelham Manor plant after the employees had rejected a proposal to modify the current collective-bargaining agreement between Respond- ent and Local 46 by substituting an incentive pay plan for the existing hourly plan of compensation. Many of the Long Island City plant drivers refused to cross the picket line established by the Pelham Manor employees and to report to work. On Septem- ber 16, Respondent discharged those Long Island City employees who refused, or who, it believed, had refused, to cross the picket line. Ordinarily it is a violation of Section 8(a)(1) for an employer to discharge employees who join in a strike, as for example, by refusing to cross a picket line.' Respondent contends, however, that in this instance the strikers' conduct was not protected because it was in breach of the collective-bargaining contract between Respondent and Local 282.2 The Trial Examiner rejected this defense on three grounds: (1) the no-strike commitment implicit in the contract grievance-arbitration procedure is not applicable to the present situation because the grievance-arbitration provision is expressly limited to disputes over the application or interpretation of Local 282's contract and there was no such dispute here; (2) even if there was a dispute cognizable under Local 282's contract, the contract-grievance procedure expressly prohibits strikes only "during the period of arbitration," and there was no arbitration proceeding pending here; and (3) the contract provision giving drivers the right to refuse to cross picket lines in making deliveries protects the refusal of the drivers to cross picket lines at their own employer 's premises. We agree with the Trial Examiner's conclusion that the Long Island City plant employees, who refused to cross the picket line of the Pelham Manor ' Redwing Carriers , Inc and Rockana Carriers , Inc, 137 NLRB 1545, enfd sub nom Teamsters , Local Union No 79 v N L R B., 325 F 2d 1011 (C A C ), cert denied 377 U S 905, Cooper Thermometer Company, 154 NLRB 502 163 NLRB No. 134 I Respondent also contends that the strikers' conduct was minority action proscribed by N L R B v. Draper Corp , 145 F 2d 199 (C A 4) For the reasons stated by the Trial Examiner , we find this defense to be without merit Copy with citationCopy as parenthetical citation