Supak and Sons Manufacturing Corp.Download PDFNational Labor Relations Board - Board DecisionsAug 27, 1971192 N.L.R.B. 1228 (N.L.R.B. 1971) Copy Citation 1228 DECISIONS OF NATIONAL LABOR RELATIONS BOARD Supak and Sons Manufacturing Corporation and Local 26, National Council of Distributive Workers of America, successor to Local 26, affiliated with Re- tail, Wholesale and Department Store Union, AFL-CIO. Case 11-CA-4119 August 27, 1971 DECISION AND ORDER BY CHAIRMAN MILLER AND MEMBERS BROWN AND JENKINS On February 11, 1971, Trial Examiner Harry H. Kuskin issued his Decision in the above-entitled proceeding, finding that the Respondent had en- gaged 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. The Trial Examiner further found that the Respondent had not engaged in other unfair labor practices alleged in the complaint and recommended that those allegations be dismissed. Thereafter, the Respondent filed exceptions to the Trial Examiner's Decision with 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. ORDER Pursuant to Section 10(c) of the National Labor Relations Act, as amended, the National Labor Relations Board adopts as its Order the recommend- ed Order of the Trial Examiner and hereby orders that the Respondent, Supak and Sons Manufacturing Corporation, its officers, agents, successors, and assigns, shall take the action set forth in the Trial Examiner's recommended Order. CHAIRMAN MILLER, dissenting: The record here establishes that after a short but intensive series of bargaining meetings, Respondent made a final offer on December 10, which was t The Respondent has excepted to certain credibility findings made by the Trial Examiner . It is the Board 's established policy not to overrule a Trial Examiner's resolutions with respect to credibility unless the clear preponderance of all the relevant evidence convinces us that the 192 NLRB No. 181 rejected by the Union and apparently was subse- quently rejected by the membership. At this point the contract had expired, and there was no reason for either party to believe that future sessions would be fruitful. In my view, an impasse had been reached. When, therefore, on December 12, Respondent implemented its last wage offer to the Union, no violation of the Act occurred. Interestingly, the Union apparently was, at the time, also of this view, since no protest of any kind was lodged against Respondent's actions during this period. When the Union suggested that there might be an as yet unexplored avenue for settling the dispute, Respondent agreed to meet again on January 7. The meeting proved a stormy one, concluding with a union representative shouting to the management representative to "get the hell out of here." Once again, neither side could reasonably have concluded that there was not a genuine impasse. Hence Respondent did not violate the' Act when, 12 days later, it implemented its last offer to the Union as to an insurance program. Meanwhile, Respondent had been advised of increasing defections from the union ranks, which left only 83 employees out of a unit of over 250 who had not indicated a desire to resign. The Respon- dent's action in filing a representation petition on January 14 was well supported by objective consider- ations and surely did not violate the Act. The alleged threat to move the plant was, in my view of the record, no more thane a legitimate expression of Respondent's determination to move if the Union refused to recede from rather considerable economic demands and in the further context of a union threat that its intended economic action would be more than "a normal strike." The allegations of the complaint with respect to the statements allegedly coercing employees into signing up for the Blue Cross Plan should have been stricken in view of the evidence as to General Counsel's determination not to issue a complaint as to this matter. While the record is in confusion as to Respondent's alleged threat to discharge strikers, the preponder- ance of the evidence indicates that it advised employees that if they went out on strike without union authority, the Respondent would not have to hire them back. While a doubtful statement of the law, I am not convinced that, without more, such a statement is an. 8(a)(1) violation. Thus, without even commenting on the unusual credibility findings of the Examiner, in which he resolutions were incorrect . Standard Dry Wall Products, Inc., 91 NLRB 544, enfd. 188 F.2d 362 (C.A. 3). We find no such basis for disturbing the Trial Examiner's credibility findings in this case. SUPAK AND SONS MFG . CORP. 1229 credits on a crucial issue witnesses whom he had repeatedly discredited on,lesser issues , I would find this record insufficient to establish any of the violations found by the Examiner and a majority of lily colleagues . Considered as a whole , it appears to me that a rather militant faction of the Union, recently split off from its former parent organization, sought considerably more in, the bargaining than the Employer .could be persuaded to give . Asa result, on two occasions it flatly rejected the best that manage- ment was willing to offer. When it found that it was not able to command majority support for its aggressive stand, it came to the Board complaining that no impasse ever really existed , and the witnesses it offered in support of its claim proved less than truthful on a number of factual questions. Our statutory command is not to give aid, comfort, or bargaining leverage to`either employers or unions when their negotiatingtacticstail . Our only task is to see that parties . fulfill their obligation to, bargain in good -faith. While, therefore , I find no merit to the allegations herein, I do so with , no reliance on the Respondent's defense that the Union Also engaged in bad-faith bargaining; In my view, both parties. proved to be; hard bargainers , no more and -no less. The Union's problem was that its hard bargaining did not have sufficient employee backing 'to enable it successfully to take strike action . In fact, by the end of the bargaining it, had lost a very;`substantial portion of its membership . Failing on those counts , it turned to us for assistance . But those facts do not justify any action on our part. - I would dismiss the complaint - in its entirety. Act. With specific reference to the 8(a)(5) allegations, it denies that Local 26, National - Council of Distributive Workers ofAmerica, herein called Local 26,-NCDWA, (1) is a successor to Local 26, affiliated with Retail, =Wholesale and Department Store Union, AFL-CIO, herein called Local 26, RWDSU, which became the certified bargaining agent of its production and maintenance employees on September 22, -1966 , , and - with which it had a collective bargaining agreement for a 3-year period ending on December 5, 1969 ; or (2) is, in fact, currently the exclusive bargaining agent of its production and maintenance employees with which it is obligated to bargain . And as to the acts alleged -herein to constitute the-refusal to bargain in good faith, -it asserts that, if they occurred, they did not constitute a violation of-the Act. Upon the entire record,' including my observation of the witnesses, including their demeanor while on.the witness stand, and after due consideration of the briefs of the General Counsel and Respondent , I make , the following: FINDINGS OF FACT 1. THE BUSINESS OF RESPONDENT The amended complaint alleges, and Respondent admits, that it is a North Carolina corporation with a plant in Elizabeth City, North , Carolina, where it is engaged in the manufacture of children's clothing; that during the 12- month period preceding the complaint herein, a represent alive period, it shipped from this plant , directly outside North Carolina goods valued in excess of $50 ,000; and that, during a similar period, it purchased directly, from points outside North Carolina for this plant goods valued in excess of $50,000. I find,, upon the foregoing, - as Respondent also admits , that Respondent is engaged in commerce within the meaning of the Act. II. THE LABOR ORGANIZATION INVOLVED TRIAL EXAMINER'S DECISION STATEMENT OF THE CASE HARRY H . KUSKIN, Trial Examiner : This case was heard at Elizabeth City, North Carolina , on June 9 through 12. and-October 19, through 21, 1970 ; it was the outgrowth of a charge and -an, amended, charge filed on January 19 and March 10, 1970, respectively , and a complaint, which was thereafter amended at the hearing, and which issued on April 20, 1970. The questions presented are (1)-, whether, Supak and Sons Manufacturing Corporation, herein called Respondent , violated Section 8(ax5) and (1) of the Act by refusing to bargain collectively in good faith with Local 26, National Council of Distributive Workers - of ,- successor to Local 26, affiliated with Retail , Wholesale and Department Store Union, AFL-CIO , herein called the Union; and (2) whether -Respondent , in violation of Section - 8(a)(1) of the Act , interfered with, restrained, and coerced its employees in the exercise, of their Section 7 rights . Respondent 's answer denies that it has violated the ' Aso in accordance with the -motion of, the General Counsel to correct the transcript herein, which motion was included m his brief Respondent admits, and I find , that Local 26, National Council of Distributive Workers of America, successor to Local 26, affiliated with Retail, Wholesale and Department Store Union , AFL-CIO, is a labor organization within the meaning of the Act. - III. THE ALLEGED UNFAIR LABOR PRACTICES - A. Some Background Facts; the Sequence of Events; ^ and the Issues Herein As the result of an election conducted on or about September 22, 1966 , under the supervision of the Regional Director for Region 11 of the Board - in an admittedly appropriate production rand maintenance unit of,Respon- dent's employees, Local 26, RWDSU, was certified on October 12, 1966, as the exclusive bargaining agent of the employees in that unit. Thereafter , Respondent entered into a collective-bargaining agreement covering these employees with Local 26, RWDSU,, for a 3-year period ending on December 5,1969. During the third year of the contract , namely, on April 8, and to which no objection has been filed. 1230 DECISIONS OF-NATIONAL LABOR RELATIONS BOARD 1969, Local 26, RWDSU, initiated action to, disaffiliate.: from RWDSU. It thereupon sent a -letter by regular mail to- RWDSU,` dated April, 9,,1969,- advising,RSDSU that its, executive boardthad voted the day before-to discontinue, payment,of,the,per capita tax and also to disaffiliate. from RWDSU'2 - By. 'letter, dated May , l2, . 1X969, "RWDSU acknowledged' receipt-of the local's letter; but pointed out that, under the applicable provision of the constitution of=` RWD$U, such^.notification had to be by registered mail and the notification would have -to be resubmitted -in conformity therewith; that the; constitution also provided that' representatives of both the local seeking to,disaffiliate and RWDSU,, attempt-to reach agreement as to,-procedures to be followed in connection with the meeting or , meetings at which a vote is taken on the disaffiliation question; and' thattRWDSU expects and demands, until' the effective date of disaffiliation, full compliance with' the provisions of the constitution as to the subject local"s financial ' obligations` to RWDSU. The local=has never resubmitted its April 9 letter by registered mail. The next communication from it to RWDSU was by a registered letter from Lock Parker, its president, dated November 13, 1969, in which was enclosed a copy of the notice being sent to its members of the special meeting of ,the,membership to be. held on November 25, 1969, in order to,decide whether or not to disaffiliate, from, RWDSU. Parker-also invited RWDSU's` participation-in'this-meeting,and offered,,to sit down'-with RWDSU officials at anytime to discuss the question of`the disaffiliation and thependirig meeting.?The next communi- cation,between the ,local and RWDSU was by letter dated' January, 12, 1970, from Lock Parker, aspresidentof Local, 26, NCDWA,'in which-he advised that the November-25, 1969, meeting was, held and that, of the-- 1,559 eligible members , in the local,3, '1,029' members voted' in ' the disaffiliation election held it that time and that, of `those voting, 907 voted for disaffiliation, 113 voted against, and 9 cast spoiled and void ballots. ' The 'letter added=that no representative of RWDSU was present at this disaffiliation meeting, nor had ,, .WDSU contacted, the officers of the local before the,meetntg,to exercise its right'of,participa- tion and that, , asthe^local has "met all conditions provided, for under [the` applicable article of the RWDSU constitu-, tion respecting disaffiliation], it is no longer affiliated with [RWDSU]. " The record shows that the NCDWA is a relatively new International, union, having been formed on May 24, 1969. It was the outgrowth'of a decision on the part-of District 65 and various locals of RWDSU, led by their respective presidents, to-- leave that International , because of their serious' differences' with it regarding certain of its programs and, policies, part of which were racial in character. The local herein- identified itself with NCDWA at that time. Indeed; by-letter dated' May- 27, 1969, to Respondent; ? Payment„ of per, capita tax, was, Fin fact, discontinued thereafter. RWDSU later sued the, local for moneys claimed to be due, as a result, of such k"nonpayment . The litigation was thereafter settled by agreement between the litigants dated October 9, 1970 . One of the provisions of that agreement was the recognition by RWDSU of the existence of NCDWA andofcits,Local26: ', 3 Local 26, RWDSU, was an amalgamated local. 4 The covering letters in each instance were addressed by Respondent to Local 26, NCDWA. directed to, the attention of Frank Terranova, Respondent's plant manager and an admitted supervisor, Lock Parkeras president of Local 26,. NCDWA, 'wrote as` follows'i This is to notify you that the name of our Union has been changed' from Local-26, Retail; Wholesale -and Department Store Union, AFL-CIO to `Local-26 National " Council of Distributive Workers of America. This-change "took place on'Saturday, May 24, 1969% This is for your records and information.' Upon receiving this` letter, Terranova consulted with' Respondent's labor ' relations iconsultant , Edgar-A. Tug-: man, about ,its contents. Respondent made, no formal reply, to this, letter but, acting on Tugman's advice, Respondent continued,to check off dues, as required under the existing contract, and then made payment to Local 26 . under' it's. changed name until December 5, 1969, the contract's expiration date.4 On the, latter date, Respondent stopped, collecting dues for checkoff purposes. The aforesaid contract was, as already indicated, fora 3- year term; was also automatically renewable from year to'year thereafter unless written`notice of termination or of any proposed changes" was served by either party- upon the other on or before October 6, ,1969, or October 6 of --any, subsequent year. Such' a timely 4iitten ioticew*as sent'* Local-16, NCDWA, sometime in September 1969,;,request ing negotiations concerning a-new, contract. By, answering, letter, Respondent agreed to ,sit down and negotiate; but, expressed a,preference for,tvaiting!until after October 15. to, do so because,it would be very busy, until,-,that time-on.its fall garments., The irecord is it sharp conf lice as to whether bargaining, sessions began on Novemberr 3 or on, December 2, 1969, and as to how many . such sessions there were. Witnesses ` for' the General Counsel testified thattherewefe three such sessions , namely, o,n December 2'and 4,i 1969, and - on January 7,_ 1970, plus' -a special ' session on December 10,5 while witnesses for Respondent, testified concerning two additional meetings; i.e on November' 3 and 7, 1969. I shall deal with this matter in detail hereinafter. The complaint, as amended, alleges that, in the course of the bargaining that-did' ensue '=until the last session on January 7, 1970, Respondent did not bargain in good faith, and that further refusals 'to bargain in $ood faith occurred thereafter. The record shows `that the' parties have,not met since January -7, 1970, despite the efforts ^of ' they local through direct` contact and' through the'Feder~al Mediation Service' to°`effect a "resumption" of bargaining. One such attempt, was'' made by the local as late'h: April 21,^ 1970. Tlie' record ' further shows that ' ori' January' ' 14`-1970, Respondent', filed-a representation -petition as', to "its production and maintenance employees"with'the'Region ,1° Director for'Region 11;- that the initial charge herein bras filed several '' dayslater on January 19; and` th at, althougha 5 This session was an outgrowlh,of the request, of.,liresident.Nathan' Supak of Respondent at the December 4 session to talk alone 4with President Parker of the local in the hope of smaking a deal in settlement „ ,of, the, differences between both sides. However, it was unproductive. At Parker's suggestion that Cleveland Robinson;, tliepresideut of NCDWA, would have to,be present at this type of session ' ' agreement wasreaclied tomeet again on December 10 in a session, which was also to be held apart from the union negotiating committee composed of-plant employees.' SUPAK AND SONS MFG . CORP. 1231 hearing on the petition was scheduled for January 29, the hearing'was not held and the petition was dismissed by the Regional Director. As already noted; the complaint herein alleging violations- of Section 8(a)(1) and, (5) of the Act issued on-April 20.'The independent allegations of 8(a)(1) in the ,-complaint, as amended at the hearing, are that Supak made various coercive threats to the Union during the, last ^ bargaining -session on January 7; that admitted Supervisor Frank Terranova also coercively, threatened employees on January 27 and February l6 and 17, as did Leonard- Museoplat, a cutting foreman,.fon February 16, and Morris Shapiro, ,Respondent's vice president, on February 6,_ 1970; . and= finally that, on May 27, 1970, Respondent ' further violated this section of. the Act by the conduct, of Terranova in directing employees, at a meeting called by him; to initiate, for employee-signature, a petition opposing any union inetheplant. B. The "Successorship Issue It is apparent from my findings heretofore that, although the local herein had recently commenced its disaffiliation action from :RWDSU, it not only regarded as done that which it was yet- to do. respecting disaffiliation, but also took the further, step of affiliating with NCDWA. At no time, however, was there any- confusion as to the identity of the they de factoW successor ^to `the- contracting unions And so far as `appears, the continuity of 'the organizational existence `of the local has been preserved, and it has continued to function in its `day-to-day affairs with no substantial change `in' its leadership.? k'urther, from the time of the commencement=of'the disaffiliation action until the bargaining-sessions ceased, Respondent has'dealt with the local`'asthe successor to Local 26, RWDSIJ, thereby, in effect, waiving for all'practical purposes any contention to the; c' ;ntrary.:Tbus, (1) upon being apprised of the local's cbange`'of z anie by lettier dated May 12, 1969, Respondent went along with the change, checking off dues to Local 26, NCDWA-for the balance bf-the existing, contract; under which contract it had fo"rinerly checked „off dues to Local 26, R VD U;'`(2) subsea ently,''Respondent treated as valid the notice sent by ' Local-26; NCDWA, requesting, as required by =the existing contract of-, either ofthe parties thereto,-negotiations for a new contract; (3) then;'as found hereinafter, at the-very first bargaining session for a new contract,`^Respondent' agreed; without hesitation, to have the `recognition- clause' of that contract identify- the C r As' already noted,. the employees of the local, did thereafter vote to disaffiliate, from,RWDSU, andRWDSU has since recognized the affiliation of the local„with,NVCDWA. 7 Thus, 'Parker continued as president, Lee R.Ray as vice president, and F. R. Baileyas°seeretary-treasurer.'- ` ' 'k ' ,s Indeed, - Respondent's ,counsel, in effect, so conceded dunng, his opening statement herein. Thus, when asked -by the Trial Examiner, in substance, whether I correctly'understood hini to , say '[Respondent, had] been in bargaining sessions with the alleged successor to the old union," he answered,'"There's no question -about 'that, Your Honor. We didnot raise the`technical ' point that-I, have- raised a ntil'these charges were filed against us. Wie,were ,at thatvpoint :mingto negotiate with the successor union. Frankly, their affiliation did not mean anything to us, to change, that's their privilege as employees , but now when they come in and allege what we do, then I am-,.entitled to raise , that defense as part of the case ...." 9 ,See Canton Sign Co., 174 NLRB 906; Litho-Graphic ,Press, Inc.,,159 NLRB 1; N.L.R.B. v. Harris Woodson Co., 179 F.2d 720 (CA. 4); bargaining agent as Local 26, NCDWA; and,(4), as also found hereinafter, at- some of the ensuing negotiating sessions, Respondent discussed contract terms With Presi- dent Cleveland Robinson of NCDWA and with Ralph Worrell, an organizer= for NCDWA. Accordingly, in all these - circumstances, including -the- fact that Respondent has extended recognition to Local 26, NCDWA, as the bargaining agent of its production and maintenance employees prior to and during the entire , period of negotiations; I find that Respondent's contention that Local 26, NCDWA, is not the successor to Local '26, RWDSU, is an afterthoughts and is not entitled to any mitigating force in assessing Respondent's bargaining conduct herein. Furthermore, as no other organization has claimed rights as the successor to Locai'26, RWDSU; as Local- 26, NCDWA, is a continuation of=the'same Local 26 under a new affiliation; as the change of affiliation has since been recognized by RWDSU; and as Local 26's bona fide existence as an affiliate of 1CDWA can no longer be doubted, I am satisfied, and find, that Local 26,-NCDWA, is the successor to Local 26,,RWDSU, and may clawv=all the rights which derive from the status of the latter as the certified and contractual bargaining representative of Respondent's production and maintenance employees 9 C. The Bargaining Sessions and the Accompanying Events As already noted, witnesses , for the General Counsel testified, that the first - bargaining session occurred on December 2, 1969, while witnesses for Respondent. testified that there were two bargaining, sessions before the one on December 2; namely, on November 3 and 7, 1969-There is no dispute concerning the number of bargaining sessions postdating December- 2, 1969. In-support of its position that negotiation sessions were, in fact, held on November 3 and 7, Respondent relied, inter alia, on (1) attendance sheets purporting to cover each of - these' mebtings;io with signatures, thereon purporting- to be- those of employees present in behalf of the Union "' (2) testimony by`Supak, Terranova, -and Tugman that these meetings did take place and that those appearing on 'the attendance`, sheets were present; ` (3) records of =bills which were rendered to, and paid by, Respondent for meeting rooms rented on those days by it at the-local Holiday Inn; (4) payroll records and timecards of employees Betty Upton, Elsie Morgan, Betty T llett, -and-Marvin Twi€ord showing in each instance an Continental Oil Co. v. N.L.R.B., 113 F.2d 473 (CA. 10). io Also introduced into evidence were attendance, sheets for two of the three regular bargaining sessions,: the occurrence of which, is not in dispute, viz, December 4, 1969, andJanuary 7, 1970. Respondent asserted that it did - -not have an attendance sheetfor the session of December 2. 11 The names of those present in behalf of Respondent were admittedly placed on ,the. attendance sheets by Tugman, the labor relations consultant of Respondent. Employees Betty Upton, Elsie Morgan, Betty Tillett, and Marvin Twiford were the only employees on the Union' s negotiating .comm_ ittee who testified for the General Counsel . While acknowledging that their signatures appeared on the purported attendance sheets forNovember 3 and 7 , they , either could not recall , or denied attending, negotiating sessions on those dates and, except for Twiford who was noncommittal , denied that any date , appeared, on , the attendance sheets which they did- sign for meetings they did attend. 1232 DECISIONS OF NATIONAL ; LABOR RELATIONS BOARD early and virtually simultaneous checkout time by each of them on those , dates in sufficient time to--attend these meetings;12 (5), payroll records and , timecards of other employees on the Union's in-plant negotiating committee, whose purported signatures appear on the same attendance sheets, showing a similar checkout time; (6) payroll records and, timecards for those meetings , the occurrence of which is not disputed,'showing, as in the instances of November ',3 and 7; a, virtually simultaneous early checkout by witnesses for the General Counsel and by other employees on the negotiating committee who attended these meetings; (7) payroll records and timecards of employees Jean Williams and Viola Woods, who were on the same negotiating committee,and whose names appear only - on the November 7 attendance sheet, showing that they checked out about 4:30-p .m., the regular closing time ,- on November 3, but checked, out at,2:39 p.m. on November 7, thus paralleling the checkout time for the others whose.names , appeared on that attendance sheet; (8) testimony by employee Gussie Lee Thompson , whose name appears on the purported attendance sheets for November 3 and 7, and who was at all times material a ,shop -steward for the Union , that she remembers , Upton,, Tillett, and Morgan signing the attendance sheets at the meetings which she attended in November; and (9) testimony by employee Cathy Eubanks that she was in, the plant in the first part of November at a time when'Tillett'left early in'order to attend some union meetings . Accordingly, in view of all the foregoing, and as the countervailing testimony by the General Counsel's witnesses in this regard is unconvincing ,l3 I conclude and find' that' negotiating sessions did, in fact , take place on November 3 and 7, 1969, and that the attendance sheets accurately- reflect the names of those who were present at those sessions.- 1. The session on November 3 A composite , of the testimony of Supak , Terranova, and Tugman, who -attended this session in behalf of Respon- dent, establishes that they met with Parker and members of the ,Union's, in-plant negotiating committee on the after- noon -, of November 3, 1967, and that, the following occurred :. Shortly after the meeting convened , Supak made a plea to the , negotiators for the, Union to make their demands , reasonable. Thereupon, Parker presented to Respondent the , Union's contract proposals. Except for new, proposals for a health , and welfare , plan and for a pension plan , these proposals were keyed to the provisions of the existing contract. These proposals were set forth in skeletal form and, in addition to' the new proposals, covered ' recognition, subcontracting, seniority, hours, vacations, holidays, wages, break periods, leaves of absence, reporting` pay,, and checkoff. The - first item discussed was the name change , the contract ,proposals having asked for a . change to be made whenever the name appeared in the old contract ; namely, in the preamble;. in article I, the recognition: ' clause ; and in article XVI, the checkoff ' ' clause Tugman, speaking for', Respondent, advised Parker and the committee that he "saw no 1s Negotiating ;sessions, except for the special session on December 10, 1969, were held ' in the afternoon . The working day ended at 4:30 p.m., but the checkout time on - their timecards for November 3- and 7, 1969, was, in stumbling block in changing - the name , [from Local 26, RWDSU, to,, Local 26, NCDWA]." There was also some exploratory discussion as to the -Union's demands ,respect- ing subcontracting and seniority and as to its economic demands. As,to_subcontracting, the Union wanted article II (management prerogatives), of the existing contract altered in respect to subcontracting to include a provision prohibiting such action when employees are in , layoff status . Respondent's answer thereto was that it had never in the past subcontracted at the expense of its employees and, that it felt that such a change would preclude it from getting a cheaper line of goods ; produced so that it could maintain some -degree of competitiveness in that particular area. As to seniority (article III), the^Union's demand read "Change the first paragraph in seniority." The negotiators for the Union stated in , this connection that they wanted deleted from the first section of article III which read, "For the purpose of promotion to nonsupervisory jobs, lay-off and rehiring, seniority is accepted , on principle where fitness and ability are relatively equal," the words "where fitness and ability are relatively equal." In this regard, the Union, was thereby, in effect, stating Iits dissatisfaction with an arbitrator's decision holding that; , tinder article III, layoffs could be made on the basis of seniority within a given classification, there being four' such classifications among sewers, in,descending order of skills; namely, A, B, C, and 0. Respondent's, negotiators took the position, in substance, that this changewas not feasible because of the marked difference in skills between ,the "A" operator and the "0" operator and their respective ability to turn out goods in quantity and quality. Finally, . the. parties had some discussion _of the .Union's, economic -demands which encompassed, proposed changes in existing contract provi- sions relating to, , inter ^ alia, wages, vacations, holidays, reporting pay, double time for Sunday work, and, in addition, a new provision relating to health and welfare. The wage, proposal was,`in substance, for a $2.50 miinimum per hour as against the existing ,$1.62-1%2 for the "0" classification, plus the- maintenance of the present wage differentials -among the existing "classifications ; the ` vacs tion proposal was for "improveaient"; the. holiday, propos- al vas; for live more paid holidays, to be added to the two existing paid holidays; _and-the new-health and welfare and pension , proposals were for payment by Respondent into the Union's security plan for health and welfare of 9 dents per hours , for each . employee, and for 'payment by Respondent , into the Union's pension plan of, 7 .cents per hour for each employee until June 1, 1970, and thereafter 7-1/2 cents., With respect to,the above, -Respondent's negotiators after' caucusing and pricing out what a 1-cent increase in wages across-the-board woiild, co'st and" also what the Union's health and welfare demands would cost, advised the Union negotiators thereof,, stressing the magnitude of, their demand. The other economic demands were not priced out` at that: time . Thereupon, the meeting adjourned with the 'understanding that Respondent would draft and present-to the Union a counterproposal; and that the ` next meeting would be- held on November 7. each instance, around 2:30 p.m. 13. Lock Parker, the president of the Union , could not remember whether bargaining sessions were held on , November 3 and/or November 7. SUPAK AND SONS MFG. CORP. 1233 2. The session on November 7 Tugman, Ammons, his assistant,14 and Terranova were present for Respondent at this session . Supak was away from the plant at that time and authorized Tugman to negotiate in his behalf. According to a composite of such testimony- of Tugman and Terranova as I credit , they met with Parker and members of the Union's in plant negotiat- ing committee at the - appointed time and the following occurred : Tugman handed to the negotiators for the Union and counterproposal of Respondent 15 and followed this by presenting Respondent 's figures as to the cost to it of the Union's economic demands. Parker's -response to these figures was that negotiations on economic issues had to start some place, and Tugman , in turn , answered that he did, not want to make an offer in a context in which his offer would be regarded as ridiculous when measured against the Union's economic demands . In the area of wages and health and welfare , the discussion was limited to the spelling out of costs of the Union's demands, with Terranova - saying - in regard to the Union's health and welfare demands that "the demands were exorbitant and that, by putting these demands in, it would make that plant 100 percent Union , which many of the employees wanted no part of." Finally, on the matter of vacations , Tugman offered to consider reducing the number of hours of work per year which was then required , namely, 1,680 hours, in order to consider a given year toward determining entitlement to a vacation . It is apparent from the foregoing, and I find, that such discussion as did take place was not in depth but rather exploratory in nature, and that some of the Union's economic 'demands as related to holidays, reporting pay, double time for Sunday work , and such noneconomic demands as related to subcontracting and seniority were not mentionedm The counterproposal which 'Tugman and Terranova testified was furnished to the Union , a copy of which is in evidence,17 includes, inter alia, (1) a preamble and recognition clause identifying Local 26, NCDWA, as the Union, and recognizing it' as the bargaining agent of Respondent's employees; (2) proposed modifications in the seniority and grievance clauses of the existing contract; (3) a proposed expansion of the leave of absence and the management prerogative provisions of the existing con- tract; and (4) an alternative provision as to vacations. As for the rest, it is, in the main, a typewritten reproduction of 1+ The parties stipulated that Ammons would, if called as a witness, have corroborated Tugman in regard to what transpired at all the negotiating sessions as to, which Tugman gave testimony and which he attended. 15 Terranova also testified , at another point, that Respondent's counter- proposal was first presented to the Union at the December 2, 1%9, negotiating session. is Although Terranova testified that seniority was discussed, I am satisfied that he was confusing this negotiating session with the next one on December 2, Thus, Tugman , who testified from notes that he kept in his own handwriting on the various negotiating sessions, did not refer to any such discussion at the November 7 session but, placed a discussion of seniority similar to that testified to by Terranova at the December 2 session. In contrast to this, Terranova testified from memory, having made no notes on his own of these sessions, and sought to refresh his recollection by a resort to Tugman's notes from time to time. 17 Resp. Exh. S . Analysis of the document is rendered difficult by the changes and alterations therein, made apparently while the document was the existing contract , with blank spaces appearing in lieu of the provisions concerning wage rates,18 the checkoff, and the term of the agreement. 3. The session on December 2 Supak, Tugman, Ammons, and Terranova were present for Respondent at this session ; Parker and members of the in-plant, negotiating committee were presentfor the Union. Supak, Tugman, and Terranova testified for Respondent; of the negotiating committee , -employees Betty Upton, Elsie Morgan, Betty Tillett, and Marvin Twiford -were the only ones who testified concerning this meeting. As they, as well as Parker, testified that this,was the first negotiating session between Respondent and the Union during which they presented their contract proposals - and Respondent agreed to the change of name of the bargaining representa- tive, and as I have found, instead, that this occurred at the session on November 3, which was, in fact, the first negotiating session, I accord no probative weight to their testimony as to what occurred at this third negotiating session . I rely, instead, on the stipulation of the,parties relating to this session and on such testimony of Respon- dent's witnesses as I find credible .19 -According to the stipulation, the representatives of both'sides went through Respondent's counterproposal and made notations sepa- rately as to where there was agreement and where -there was disagreement "and negotiated at-least one-thing." In this connection, the notations on -Respondent's copy of-its counterproposal, in evidence, as supplemented , in part, by credited testimony of Respondent 's witnesses, establishes, I find, that agreement was reached on provisions relating to recognition, grievances, union representatives and shop stewards, a savings clause, leaves of absence, reporting pay, union shop chairman, `bulletin board use, safety and health, strikes and lockouts , and interim amendment; no agreement was reached as to seniority (both insofar as it related to promotions to nonsupervisory jobs, layoffs, and rehiring, and as it related to conditions under which seniority may be terminated), , management prerogatives, daily overtime pay (agreement was, however, reached as to payment of double time for Sunday work), break periods, and vacations .20 In the area of wages, the discussion revolved about the provision in the 1966-69 contract of paying employees according to whether they were in classifications A, B, C and 0, with the 'Union's negotiators indicating that they were dissatisfied with, this-system-of being used as a working paper by Respondent during negotiations. is Supak, who was the principal negotiator for Respondent and controlled and directed its negotiations, testified- that Respondent never submitted any written counterproposal as to wages, 19 Here, as well as at subsequent negotiating sessions , I have, in view of the variances in testimony from witness to-witness , Attached considerable weight to the plausibility of a witness' testimony in assessing its credibility. 20 Instead of the existing practice of granting 1 week's vacation with pay to employees with I to 5 years' tenure , and 2 weeks' vacation with pay to employees with over 5 years ' tenure, providing in each instance that in order to count any year toward such vacation the employee had to work 1,680 hours, Respondent proposed that the number of qualifying hours be reduced to 1,500 and that employees having I to 5 years' tenure receive, in lieu of vacations, vacation pay amounting to 2 percent of their earnings that year, and that those employees with more than 5 years of tenure receive, in lieu of vacations, 4 percent of their earnings that year. 1234 DECISIONS OF NATIONAL LABOR RELATIONS BOARD ,classification. However, there was no discussion of actual wage, sates. -Nor, was there any discussion of the term of the new agreement. At the conclusion ofAhe session, Respon- dent undertook, in regard to the management provision of its counterproposal,,to draft rules,as to,employee responsi- bilities and as to penalties for infractions of such rules. 4. 'The session on December 4 Supak, Tugman,,-Ammons, and Terranova were again present at-this session in behalf of Respondent, as were those heretofore mentioned. as being present for the,Union at the session on December 2, The Union's contingent of ,Parker, and the., in-plant_.,negotiating committee was expanded, however, 'by the presence, of Ralph Worrell, an organizer fon-the NCDWA., Also- identified for the first time in:the record asbeing present for the Union were Lee R. Ray, vice, president, and employees Vernon' White and a Miss Ivey of the in-plant negotiating committee. 'A composite of such testimony as ,I credit of, those who testified, concerning the session21,.establishes,the following: Supak, was% again the, chief, spokesman,for Respondent; however,, Worrell - rather -,than Parker was the chief spokesman for, the ,Union. ,Supak introduced for the, first time Respondent's counterproposal on wages and on holidays,; and, discussions covered, these issues as well as the, Union's4proposals as,to health,and'welfare, vacations, periodic reclassification, of, employees,, and seniority. The, wage discussion began with the Union revising its original, demand, (which was to raise the pay of those,inthe "O" classification,' ,the „lowest ,paid employees among Respondent's sewers, to $2.50an;hour and maintaining the existing differentials. as tothe'other classifications) 22 to demand, instead, 20-cents across-the-board for all classifi- cations,annually dining the period of the contract,,together with,,a -built-in cost-of-living increase of 5 percent each year.', Respondent thereafter arrived at a counteroffer of (1) no,increase to the classification until the third year of eceive athe contract when employees, so classified would receive' raise of 2-1/2 cents an hour; 23 (2) increases of 2-1/2 cents, 5 cents,' and 7-1/2^cents,per, hour each yearkto classifica- tions C, B, and A, respectively; and (3) creation of a new classification "AA" in the, sewing, room to be paid 5 cents more per hour`than the "A" classification each year of the contract., The Union's response to this counteroffer was that it was totally inadequate.24 As, to ;holiday, issue, the union negotiators indicated that they were wwilling , to -reduce their initial demands for five additional paid holidays (the employees were then receiv- ing two paid holidays) to four additional paid holidays. Respondent's counteroffer was one additional paid holi- day,' making"three in all. The Union, however, returned to its initial position of demanding" five additional `paid holidays. This change occurred after, the, negotiators for the Union had caucused on Respondent's counteroffer as to 21 I:e., Supak , Tugman, Terranova, Parker, Worrell, Upton, Tillett, and Morgan. In addition„I have taken into account the heretofore mentioned stipulation as to Ammons were he to testify. 22 At the`time, the existing Pay scale was,$1.62-1/2 per hour for the "O',' classification, $1'.67-1/2 for the "C"' classification, $1.72-1/2 for the "B- classification;"' and '$1.77-1/2 per hour for the "A" classification. '23 Respondent, at first `proposed denying the `U' classlfieation'any raise during'the' 3-year period. ` wages and on other matters, arising during the,, negotiations. The Union's position on additional paid holidays when the session ended, was that it wanted three additional, paid holidays the first year and one more,paid, holiday, during each succeeding year of a 3-year- contract . period. With respect to health and - welfare and pension, the Union negotiators also took. the position"after` the aforesaid caucus that they wanted, aspart of the economic-'pa'ckage, the `Union's"health and `welfare plan and its pension plan; under the former, Respondent was to pay 9 'cents per hour for each unit employee for" the first contract year and' 10 cents per hour for each such employee during the second and third contract year; and, under the latter, -Respondent was to' pay 7 cents per hour for each unit employee for the first contract year and 7-1/2 cents per hour for'each-unit employee for the remaining contract, year's: Respondent 'caucused and figured 'out' that this request, if granted, would cost it $300,000.' Whereupon, Supakreferred to the cost'andfsaid, according to Parker's`undenied-testimony, which `I• credit,, `-'This-'-you won't get,'because it will make ,you strong:` You just won't get this anyway. -This-would make you too strong. You just won't get it'"" Respondent made no, counteroffer to these, demands ^of the, Union during this session. As to the vacation issue, `the discussion began with the proposal made by Respondent at the session on December 2 of reducing the-number of'qualifying hours •oPwork'to 1,500 from ,1,680' and of paying a percentage of `earnings, in lieu of, vacation periods with pay. The, negotiators for the Union were agreeable, - to using 1,500 ,, hours as, the qualifying base but opposed ,the ;payment,ofpercentage of :earnings . Respondent's negotiators withdrew the percent- age- feature of their proposal but wished,to return ;to the vacation provision,, in the 1966 contract in all -other respects. This was not acceptable to the-negotiators for the Union. They proposed instead that employees_,with,to,3 years'- tenure be granted 1 week''s vacation;, that employees with, 3 to, 10 years' tenure be granted 2, weeks' vacation; and that-those with more than 10,years'' tenure get 3 weeks' vacation 25 , As to this demand, . Respondent pointed out that the cost to it of these additional vacations would be $15,000 the first; year, $20,000 the second year, and $25,000 the third year of the contract. With respect to existing classifications, the_Union sought updating of the employees on the classification list,._but there was no agreement. An understanding was, however, reached to'establish a'n "AA" classification into which 20 to 30 of the present employees would be, placed by Respondent, by, March,l, 1970; in addition, there was to be a periodic review' for placement in this classification by Respondent, and the Union, was to'have art automatic right to grieve concerning any selections among employees made by Respondent. With respect to, the Union's demand that seniority 24`According to Supak ,` the wage increases demanded by the Union over the 3-year period at $2 per hour average for- the "0" classification , "white maintaining existing "differentials as to the other classifications , 'would amount to -$930,000 ; and would = amount- to $`1,800,000 if computed on the basis of a$2.50 minimum for the"O" classification. 25 Under the 1966-69 contract,` employees with `1 to 5:years' tenure received 1 week of vacation, and those with more tenure received 2-weeks' vacation. SUPAK AND SONS MFG. CORP. 1235 should no longer be determined according to, an employ- ee's classification but should bbased on length of service with .Respondent, no progress was made. Respondent insisted on maintaining the-status quo.- 5. The further discussion on December 4 between Supak and Tugman for Respondent and Parker and Worrell for the `Union After the discussion detailed above,' Supak turned to Parker and asked him to adjourn=with, him -to another room in order to attempt to compromise the-differences between Respondent and the Union. When Parker insisted on having Worrell present as a witness, Supak agreed to meet if he could bring Tugman. The four then repaired to another room. The credible-evidence establishes that the discussion that followed was unproductive. Thereupon, the negotiators for the Union suggested that they would want Cleveland Robinson, the president'of NCDWA, in on such discussions as he was an expert in these matters and could help resolve the differences between them' Su-pak agreed. A telephone call was then made by Parker and Worrell `to Robinson and arrangements were made for a meeting of the same type to be held on December 10 at a club in Norfolk, Virginia. 6. , The December 10 meeting This meeting was attended for Respondent by Supak, Tugman, H.-Lee Kanter (counsel for Respondent herein), and one Haverson, his assistant. In attendance for the Union were Parker, Robinson, and Worrell. Drinks were served at the beginning of the session and it would appear that, at least initially, a relaxed atmosphere prevailed. Supak was again the chief spokesman for Respondent; Robinson acted as chief spokesman for the Union. A composite of such testimony as I have credited of those who testified concerning this meeting26 establishes ' the following: The discussion covered the issues of seniority, holidays, wages, vacations, and the Union's health and welfare plan. The first issue discussed was that of seniority. Robinson proposed replacing the prevailing practice of predicating seniority on the length of service in a given employee classification with straightline.seniority among Respondent's cutters as a group and among Respondent's sewers and other production employees as a group. This was opposed by Respondent's negotiators on the grounds that some of the employees in the lower classifications could not perform the work being done by other employees junior to,}them in higher classifications, and-that such a system, of seniority would interfere with the making of quality- samples which were, used by its salesmen in selling 26 i.e ., Supak, Tugman, Robinson, Parker, and Worrell. 27 There ' is testimony by Respondent's witnesses that, when concernwas expressed by Supak and Kanter over the quahty of workmanship of the ultimate product in relation to the sample if the Union's seniority ,proposal were accepted , Robinson answered, "I don't give a damn for Supak." Robinson„ denied that he made this remark . As he impressed me as a credible witness ` and as more -reliable than those who testified for Respondent in this connection, I find that Robinson did not make the remarks attributed-to him. However,„ I am satisfied, and find, that he did brush aside the statements made of how it would adversely affect Respondent and demanded, in heated fashion, the inclusion of the Umon's seniority provision, except for some accomodation for sample making. No agreement was reached on this issue. their merchandise and would, even where quality samples could be, made,-not assure comparable workmanship on its regular production. Robinson's response,,thereto was that the Union would accommodate 'Respondent so that it could disregard, the' Union's proposed seniority provision during the, -sample making period. -ft is apparent that- the discussion became heated at times- on, this issue.27 As to the issue of holidays, Robinson enlarged upon,the Union's initial proposal to add five more paid-holidays and requested a sixth paid holiday,, predicating.-the changed position on the fact that, a contract for a,3-year.period was being sought by ,Respondent. Respondent came forthwith figures as to -what each additional holiday would, cost based on the-Union's minimum wage -demand. Before the meeting was over, however, Respondent- offered to increase from,onem to,two the number-of additional paid holidays so that the employees would be getting four, paid holidays instead of two under the recently expired contract. On the issue of vacations, the discussion was unproduc- tive. Apart, from, agreeing that 1,500,hours should be-the number of -hours worked -in a given year in order to count that year in determining entitlement to a vacation, neither side was willing to change its previously asserted position; i.e., Respondent would, adhere to the existing provisions of the recently expired contract as to the years of tenure for meriting, 1 or 2 weeks of vacation, while the Union proposed vacations 1, 2, and 3 weeks, depending upon length of service of 1 to 3 years, 3 to 10 years, and over 10 years, respectively. Robinson also indicated during the discussion that employees of less than 1,500 hours and more than 1,000 hours of qualifying experience in a given year `should also be entitled to a prorated vacation. With respect to wages, Robinson expressed the view that the, wages of the "0" classification, Respondent's lowest paid classification, 29 should be advanced to somewhere over $2 an hour over a 3-year period, while maintaining existing differentials as to other employee classifications. This was, in substance, the Union's theretofore revised demand of 20 cents across-the-board for each employee annually during the contract period.30 Robinson also labeled as,a key provision in the Union's demands on wages, contributions by Respondent,-to the Union's health and welfare .fund for each employee ,of 9 cents per hour during the first year and 10 cents per hour during the second and third years 31 Respondent caucused on economic issues twice during the meeting. After the first such caucus, Supak announced that he was willing to increase his wage offer -to provide an,increase of 5, cents annually to the "0" classification. And after the second caucus, Supak announced that he was prepared to increase his original wage offer as to the C, B, and A classifications 2,8 One additional paid holiday was offered by Respondent at the December 4 negotiating session. 29 I.e ., $1'62-1/2 anhour. 30 This is referred to in the record in general terms as the Union's $2 minimum wage demand . Unlike Supak who testified that this was only intimated by the Union, I find'that the, weight of the evidence supports a finding that it was affirmatively stated. 31 Although the Union's original contract proposal included a demand for payment by Respondent into the Union's pension fund for each employee , Robinson made no mention of it. This demand was dropped thereafter at the January 7, 1970, bargaining session. 1236 DECISIONS OF NATIONAL LABOR RELATIONS BOARD by 2-1/2 cents, with the result that, these classifications would receive each year increasesof 5 cents, 7-1/2 cents, and, l0 cents, respectively.32 In addition, he offered to pay $1.92-1/2 an hour to a newly created "AA" classification during the first-contract year, and 5 cents-above the "A" classification during the remaining years of the contract. This offer made no reference to. the Union's health and welfare demand,., Although Supak pointed out that the cost to, Respondent of the Union's demands was 'prohibitive and~ furnished tithe `cost figures,which it had, Robinson pointed out that Respondent was pyramiding the cost by adding the cost for the first year and second year to the cost for the third year, and that, if cost is to be figured that way, it would make ' undesirable' any negotiating by the Union fora long-term agreement; he added that, if this was going, to be Respondent's approach, then the alternatives to a contract which provided wage increases large enough to overcome anticipated rises in the cost of living was either -a l=year contract, or a longer term contract which provided for automatic cost-of-living increases. As to Respondent's -revised wage counteroffer detailed above, December 12, Robinson replied that he would not recommend it to the employees who had the ultimate say on whether to accept or reject Respondent 's wageoffer. At this point , Tugman stated that this offer of increased wages, of two or more paid holidays, and of 1,500 hours of work in a givenyear in order to'count that' year toward qualifying for a -vacation was Respondent's final ,offer. At no. point had Robinson indicated that the Union's proposals on'monetary issues were final ones ., Whereupon, the union negotiators, got up and left the meeting. Nothing was said , at the time about when they were to meet again. - 7. Respondent's action on December 12, 1969, of announcing improvements in wages, vacations, - and the number of paid vacations, effective immediately On Friday,.December 12, Terranova , under directions from Supak, prepared the following sheet in typewritten form, listing benefits which Respondent decided to give to its employees at that time: 1969 Effective immediately the rates of pay will be., Sewing Department : Hourly, Increase New Hourly Rate AA 15 cents per hour $1.92-1/2 per hour, A 10 cents 1.82-1/2' " " 33 B 7-1/2 cents per hour 1.80 C 5 cents per hour 1.72-1/2 0 5 cents " of Cutting Room : Hourly ' Increase 11 15 cents ' per hour 2. 10 cents " it 3. 7-1/2 cents per hour To qualify for vacations 1500 hours New Tear's Day 1970 additional paid holiday Christmas Day 1970 additional paid holiday ,A letter explaining in detail will be furnished each employee. Terranova posted one- copy thereof at each of the five timeclocks in, the plant, distributed other copies to shop stewards of the Union, and gave one copy to employee Twiford for delivery to- Parker, the Union's president. 8. Respondent's action on December 15 , 1969, of posting a revised list of classifications which included old classifications and a new "AA" classification and the employees in each classification heretofore found, the Union sought a provision for the updating of employees in the A , B, C, and 0 classifications but there was no agreement. The parties did, however, reach an understanding that an "AA " classification would be established into which 20 to 30 of the present employees would be ' placed by Respondent by Match 1 , 1970; and that there was to be a periodic review for placement in this classification by Respondent ; and that the Union, had an automatic , right to grieve concerning any selections made by Respondent. The parties stipulated '' that a notice to the above effect was posted on the plant bulletin board on ,December 15, 1969, with an effective date of December 8 , 1969. As 32 This would have meant $1.72-1/2, $1.80 and $1.87-1/2 for the C, B, and A - classifications , respectively, during the first contract year. 9. The negotiating session on January 7,,1970' Respondent agreed to return to the bargaining table after 33 This would appear to be a typographical error, in that $1.87-1/2 was intended. SUPAK AND SONS MFG. CORP. a visit by Parker to Supak,at the plant, and after Parker had indicated that, if Respondent would attend one more negotiating session, "he was sure something - could be accomplished.." This negotiating session took place on January,7; 1970, it a Holiday Inn in the area around the plant., Present in , behalf , of Respondent were Supak; Tugman, Ammons, and Terranova; present for the Union were Parker, Robinson; `Worrell, Ray, and members of the in-plant negotiating committee , including Upton, Twiford, Tillett, and Morgan. All of the above testified as to this negotiating session, except Ray and Ammons. As to the latter, the parties stipulated, as indicated above, that he would corroborate Tugman,if he were called as a witness. A composite of so much, of their testimony as I find credible establishes the following: Supak, and Robinson acted as chef spokesmen during the negotiations which ensued. The Union stated its demands as to wages , health and welfare, holidays, vacations, seniority, and reclassifica- tion of employees, and stated its willingness to drop its demands for a pension plan. It adhered to its previous demands =of December 10 as .to (1) wage increases of 20, cents across-the-board, to all classifications, during each year of, a 3-year contract period; 34 (2) health and welfare, namely, payment into the Union's health and welfare plan of 9 cents-per hour for covered employees,the first year and 10 cents thereafter; (3) holidays, namely, 6 additional holidays; (4) reclassification, namely, joint review periodi. cally of the classification of each covered employee; and (5) seniority, namely, separate seniority for all sewing department employees and other production employees, and separate seniority for the cutting department employ. ees. As to vacations, the Union renewed its demand for 1 week for"employees with 1 to 3 years' tenure, 2 weeks for employees with from 3 to 10 years' tenure, and 3 weeks for those with longer tenure, with 1,500 hours of work in order to ' count any year towarcl qualifyng for a vacation; it also sought prorated vacations for those who worked less than 1,500 qualifying hours and more than 1,000 hours during a given year. Wages and health and welfare were the two areas of , concentrated discussion. -As to wages, Supak sought without' success to-persuade, the Union to accept the wage increases already given to the employees on Decem- ber 12, last. Robinson, in turn, pointed out-that the Union had already lowered its sights by eliminating its earlier demand for a -cost-of-living increase and wanted the 20 cents across-the-board-figure. He"also- made clear that included in the wage package-was the Union's demand for payment by Respondent into - the Union's health and welfare fund. Supak's reaction to the latter demand was that the Union would never get it as it would make the Unionn, stronger.35 Such discussion as was had on seniority indicated that, Respondent was adhering to its position of 84 This would mean that the "O" classification would receive $ 1.82-1/2, $2.02-1/2 and $2.22-1/2, during the successive years of the contract, while other classifications would get correspondingly more by maintaining,the existing wage differentials . The "O" classification would average a little more ,than $2 an hour over the 3 -year period. 35 T credit Parker 's undenied testimony in this respect that Supak'said "You'll never -get it, it would only make you stronger .... Next time you come around , you'll take my whole plant away from me.... You just won't get 'that." 1237 continuing , the seniority setup of the old contract; i.e., according to work classifications., After Respondent and the Union had explored their respective positions on the above issues , Respondent's negotiators caucused in order ,to.'reappraise the situation. Thereafter, the negotiating session resumed and Tugman, speaking for Respondent , stated its then position to be as follows: it would add a third paid holiday, to the two already offered ; it would adhere to .,its position,- on vacations, namely, that vacations were-to be granted, as set forth in the recently expired contract , except, that the number of hours worked per year to qualify would be 1,500 hours; it would not change its position on seniority but would agree "to propose reclassification and revision and review by Union and management every 3, months"; it would not accept the .Union's wage proposal but would adhere to the wages already put into effect , and it would offer in lieu of contributions to the Union's health and welfare plan to provide insurance -coverage 'under the Blue Cross-Blue Shield - insurance- plan for each" employee, paying one-sixth of the cost the' first year, one-third of the cost the second year, and- one-half , of the cost - the third year-36 Respondent pointed out that it had ' estimated the cost of Blue Cross-Blue,Shield coverage to itfortheperiod_ of the contract to be $24,000. There was no further negotiating beyond this point. According to a composite of such' 'testimony as I find credible,37 the following occurred : Tugman, after setting forth the above, said that this-was the -Company's ``last and final offer." Supak also added that this was as far as Respondent could go with wages, that the , Union could take it or leave it, and that if the Union pushed him he would have to move the plant " as he bad -done before in another State when the union:' 'involved r pushed , him- on wages . Robinson thereupon accused Respondent of refus- ing to bargain and warned Supak that were he` to move his plant "[they] would have to fight him. and in that fight [they] would seek the help ' of Civil Rights organizations, because they would have to - attack his merchandise wherever he sells it."38 Robinson then named the'Solithern Christian Leadership as one of those organizations, - and pointed out that the Union had a good relationship, inter alia, with the Teamsters Union, with black church groups, and with the black - college students at Norfolk State College in the vicinity. And to the `com'ment from Supak or Tugman that such conduct would constitute a, secondary boycott, Robinson answered , in substance; that the speaker did not know what secondary boycott means: -About this' time, Parker interjected that he would file-charges with the Board since Respondent was acting in an illegal manner. At this, Supak got up and said, "That's that! There's nothing else to discuss ."39 Thereupon,'he began to walk to the door of , the meeting room followed - by the other 36 1 am satisfied that the weight of the evidence establishes 'that Respondents proposed coverage was for ` employees ` only and not for their families, whereas the Union's `health and `welfare plan provided ' for the broader coverage and for payment 'into the plan only by the employer. sr In 'view of the variances in testimony from -witness - to witness, as heretoforeindicated, I have attached considerable-weiglit to the plausibility of a witness testimony in assessing its credibility. -- sa The quoted testimony is that of Robinson. 36 Although Parker testified that' Supak also said that if the Union filed (Continued) 1238 DECISIONS OF `NATIONAL LABOR RELATIONS BOARD negotiators for'Respbndent. As they were moving to or through the door, Ray shouted to them to "get the hell out of here:" 411 40. 'The abortive efforts by, the Union to resume bargaining` The January 7 meeting was the last negotiating session between Respondent and'the Union. Although the "Union made: several attempts-,thereafter to effect a resumption of bargaining, a they proved -unavailing. The first such -attempt occurred ,6n "Januarys 8, ,They record shows-that employee Marvin Twiford.requested, and obtained, an appointment with Supak at 41:45 that morning in Supak's office., Present with him was 'employee-Tillett,",also a member of ,the union negotiating ; committee:. According to . the undisputed testimony of Twiford„as -corroborated-,in -substantial part by Tillett,,,which I credit, he told Supak that at the meeting held by, the Union the night before, in the wake of the bargaining sessioh of that day, the membership voted not to, strike,and:nominated,him'to ask Supak to come back-to the bargaining table and bargain; to this, Supak replied that as long,as ,the Union insisted on its,health and welfare plan and-seniority clause he would not,-resume-bargaining, and further that they were in the "wrong union" and "two militants were, ,running,,,it "41 Another, such abortive attempt was -made within a week or so thereafter. Here, too, I - credit Parker's uncontradicted ; testimony that he requested Federal ° Mediator Robert Calloway of the Federal -Mediation. Service,over the telephone "soon after", January.. 7 to,-see if. he, Calloway, could prevail upon Respondent to return to the bargaining table; and that about a, week. later, still in the month of January, Calloway telephoned him, to say that ;he had-tried to arrange such a meeting-but was, told by management, that they ,could not meet with the Union until the Umon's pending, unfair labor practice charge, against Respondent was - "settled" by, the Board.43 The ,last such attempt,;.I,yfind, occurred ,on April 2,1, 1970, the day ,, after the complaint issued herein. Parker testified , in this connection, that he came to the plant on that day, together,with;George Roundtree,,an organizer for the local; and.;; ,.-, R, .,Bailey,, the secretary-treasurer of -the local;,that he asked Terranova if he,would get in touch with Supak, who was then out of"town, to see if they could sit down, and, resolve their differences; that Terranova agreed to do so;, and, that when he telephoned Terranova the following: week„ Terranova told him that Supak^ would not meet with him because he _,had,,filed, a ,charge with the Board, , Asa Terranova, failed specifically to , deny this charps'he would move the'plant, I note that none of'the other witnesses' for the General Counsel so testified . As I fund these omissions significant, I ant unable to creditParkerin this regard. 40 Employee Upton.so testified , as did Terranova. initially. Although Terranova testified thereafter , ' m response to a leading question by Respondents counsel, that Ray also told Respondent's negotiators to stay out,, and 'althpugh SupakC and Tuglnan gave identical testimony' to that, I find that Terranova's initial testimony in this regard, as corroborated by the testimony of Upton, ,accurately . reflects what was said by Ray. 4r There is,also some ,uneontradicted and.credible testimony by Parker which bears upon Respondent's position ,respecting , the Union's health and welfare plan . According to Parker„ after the negotiating session on January 7, he sought permission , through Terranova, for Worrell-and him-to go through the plant . Their stated ,, purpose was' to see the employees. Permissjon,was granted by Supak, and Parker and Worrell went through the attribution- to him^by Parker; and as Terranova , in effect, admitted that Parker - had asked him about the resumption of, bargaining and I that - this had 'met with a refusal,43" I conclude, and find, that; Parker. 'testified credibly that he made Tan abortive attempt , at resumption of bargaining on April, 21. -,and that Terranova, in the course thereof, indicated ,that Supak would'not resume bargaining because of ,the pending unfair labor practice _chargewhichwas filed by the Union. 11. ' Respondent 'files a petition for an election, among its , production and maintenance" employees Both Supak and Tugman testified that, after the January 7,197%, bargaining session, espondent having by ° that time received` letters 44 ' roii employees saying they had resigned from the Union,'it was decided to file a petition for an election among the production and ' maintenance employees`to ascertain whether the Union was the majority representative : °Siipak fixed the period during which these letters were received as early in January-:1970."As already found, on January 14, 1970, Respondent-filed such- a petition with the Regional , Director 'for -Region" 11; however, on January, 19,' 10' days 'before the scheduled hearing, date on the petition, the chargeherein was filed by the Union,, with the consequence-that the hearing was not held and the petition was dismissed by the Regional Director. 12. Respondent unilaterally puts Blue Cross-Blue " - Shield insurance into effect for, its employees if is admitted, that Respondent put the Blue Cross; Blue or , its ' employees into effect after theShield coverage' for,' y 7. Counsel,. for Respondentnegotiating session of Januar stated on the 'record that notice thereof to the employees was posted in the plant on January 19: Supak's explanation as'to'why Respondent took this step was, "They turned us down " and 'again we said it was-a last and final offer ands we put'np Blue -Cross,and Blue Shield." 13. _ The alleged threats--to employees "by management Employee., Elsie-,, Morgan gave the following uncontro- verted testimony 'concerning a threat to- her , by Terranova; 45 Plant , Manager. Terranova, convened a meeting of Respondent's "employees` in the sewing-room-of the plant on January27,1970. In addition to the employees and Terranova,, there were present representatives of Blue plant. On"their way out from the plant , Supak stopped them and called them into ' his office. There, Supak offered to make a deal , by-offering "them, in effect, better , increases in wages, provided toe' Union were "to forego `its demands , for its health and welfare plan, saying , in this connection ,: "I'll-give, you better increases in wages but the security plan you won't get." 42 As heretofore found, the charge was filed with the. Boardron January 19. In these circumstances,,, I conclude , and find, that Parker received this message from Calloway during January but after January 19.u '43 Terranova's testimony in this regard was asfollows:' "Yes, Mr. Bailey and Parker came to the plant several times' afier that ... asking to" talk to Nit.' Supak, and I kept "saying, `We have nothing to say to you people,' we were just at an impasse with them." 44 Respondent did not introduce any of these letters into evidence. 45 No one else testified concerning this matter. SUPAK AND SONS MFG. CORP. . 1239 Cross-Blue Shield from the various towns and counties in the 'area . Terranova told the assemblage that he wanted .employees to go up to the front of the room and , sign the cards which the above representatives had for those who accepted the Bluea Cross-Blue - Shield insurance coverage. When her ,turn . arrived -to go forward , she-- met with the representative from. Edenton, who asked her if she was already covered by Blue Cross -Blue Shield . She replied that she was completely covered and - asked that she be excused and allowed to return to work . The representative, who is unidentified in the record, then asked her to sign a card.46 When she refused , he asked , why: she -was refusing. Her reply, was that she was not interested in Blue Cross- Blue Shield,. and, she. again asked to be excused but he would not excuse her. She thereupon left him and returned to her place of work: About 30 minutes later, Terranova came to her machine , holding a card , and inquired whether she had refused -to sign such, a card . When she replied in the affirmative, Terranova said , "Well, you will have to sign it." She protested Terranova's attempts to force her to sign a card that she knew nothing about , but Terranova again said that she would have to sign 'the card . At this, she said that she "reserve[s] the right not to sign the card." Whereupon, Terranova reiterated that- she would have to sign the card' and added that "if [she ] did not sign the card he would go to the office and pull [her ] union card and destroy it . Terranova also said that "he had his right to hire and fire , if he saw fit in his plant .". As the aforesaid testimony by Morgan, including her attribution to Terra- nova, stands undenied 'on the record, I credit it and find that the entire incident occurred in' the manner testified to by Morgan.. The complaint, as amended , also alleges that Morris Shapiro, the vice president of Respondent and an admitted supervisor, and Terranova, as well, did, on February 6 and 16, 1970, `respectively,' make threats to employees of discharge if they went out on strike. There was testimony as to the first incident by employee Chester Sutton, a receiving clerk, and by Shapiro , his' supervisor. Both gave substantially different versions of their' conversation on that date, which occurred in a context of rumors that the employees were going to strike the plant . According to the testimony of Sutton, , as revised by him during cross- examination to include the mention of a North Carolina law by Shapiro , Shapiro approached him and said, "I want you to tell the fellows [the boys ' in the cutting room] that under -North Carolina law if the fellows walk out, they won't come back." According to Shapiro , his statement was, "Chester, do you realize that if there is a walkout during , working hours , and if it is ruled illegal, according to North 'Car`olina law , we could hire whoever we choose' to rehire?" Shapiro denied asking Sutton to so inform the boys in the cutting room, but admitted asking Sutton whether the other boys knew' this, and that Sutton did thereafter report back to him that he, Sutton, had conveyed his message to the other boys in the cutting room . In this latter connection, I am satisfied, and find , that Shapiro was less than forthright and that he did ask Sutton, as Sutton testified, -to convey the message to the'other boys . In view of this, and as Sutton impressed me as a more reliable witness than Shapiro,- I credit , Sutton and find that his testimony,, on cross-examination, accurately reflects what Shapiro told, him on that occasion . Accordingly, I find that the essence of Shapiro's remarks was -that ,Sutton and the boys in the cutting room would = be discharged if they engaged in a strike, and I find further that,the reference to the North Carolina law did not alter the import-of his remarks, since this reference was so broad as , to, rule= out any intimation ,that there was a distinction in that law between a - lawful and an unlawful strike by employees. The other incident occurred in the course of, a speech to all the employees by Terranova - in the sewing room. Terranova testified in this regard , as follows : He assembled the employees on that occasion, which coincided with the time when Respondent was getting ready- to make up the spring samples, of, their clothing ,line and with, the time when rumors were circulating - through ; the plant of an impending strike, in order to enlighten the many employees who had been asking about 'developmentsinnRespondent's relationship-with the Union., He, told the assemblage that, since the -contract with the Union had expired on December 5 , 1969, -Respondent was no longer recognizing the. Union as their bargaining agent and would no longer recognize the- Union's'shop -stewards on grievance matters, but that Respondent would abide-by all -the other terms of that contract, including , seniority. In addition, he said, to them, "in' case [they ] have an illegal strike or wildcat walkout,-without the authority of the Union , that under the laws of North Carolina, the Right to Work Law, that [he] would not have to take them back as employees." Employees Clifton and Eubanks , witnesses called by Respondent , gave corroborating testimony as to the above, except that, in the latter connection , Clifton had Terranova saying that "if they went out on strike that according to the State law that he would not have to hire them back," and that Eubanks had him saying , "if -the Union called a, strike which was a wildcat strike, if the Union walked out on a wildcat strike, that according , to North Carolina Right, to Work Law that he did,not have to hire the people backthat walked out." I find suspect Terranova's testimony, as well as that of Eubanks , as to what Terranova said in reference to strike activity by employees . This is , so because if, as they testified , Terranova had said to te employees, in effect, that their jobs would be in jeopardyif they called a wildcat strike without the authorityof the Union, he would be implying that the Union was still the recognized bargaining agent, in direct contradiction of , his prior statement , as to which the testimony is not in dispute and which I credit , that the Union was no longer in the picture as ,Respondent was no longer recognizing the Union. More probable under the circumstances and more consistent with the logic of the situation , I find, is the testimony of Clifton that Terranova then told the employees that, "if they went out on strike that according to-the State law that he would not have to take them back ." In view of this, and as Clifton impressed me as a reliable witness, I credit her and her attribution to Terranova, and find further , as I did, in substance, in the aforementioned incident involving Shapiro and Sutton , that the essence of the remarks made was that the employees risked being discharged if they 46 The record fails to disclose the legend on the card. 1240 DECISIONS OF NATIONAL LABOR RELATIONS BOARD went out ' on-strike, and that the reference to State law did not alter the import ' of these remarks since it was so broad as to rule out any intimation that there was any distinction in that law between a lawful and an unlawful strike. The complaint , as amended, alleges further that Leonard Museoplat,"a cutting room supervisor, and Terranova, did, on February 16 and 17, 1970,47 respectively, threaten employees by informing them that the Company no-longer recognized `the Union or the Union's stewards , and that it would no- longer follow the seniority provisions of the expired contract with the Union . I am satisfied, and find, consistently with Terranova's admission set forth above, that he did tell the employees during the aforesaid speech that Respondent would no longer recognize the Union or the Union's stewards. But I find no support in the record for the allegation that Terranova also told them that Respondent would no longer follow the seniority provi- sions of , the expired contract . Indeed, Terranova''s, testimo- ny to the, contrary was corroborated not only by Clifton and Eubanks , but by White and Upton , the witnesses for the General Counsel oin this issue . I note, however, that White did .attribute to Museoplat,. during a conversation which he .initiated just before , the above-mentioned meeting, a, statement that Respondent would no longer follow the sen iority provisions of the old contract now that the Union w s out . However, Museoplat denied making that statement, admitting only, in effect, that, when White inquired as to what . would happen in view of developments involving the Union , he'said that Respondent would not change the existing seniority setup . In view of the fact that Museoplat impressed me as amore reliable witness than White, I credit Museoplat's denial andfind,that-he did not threaten White with a change in the existing seniority setup. In addition to the foregoing , the complaint, as amended, alleges, in substance , threats by Supak during the January 7 bargaining session to move the plant (1) if the Union insisted on bargaining about wages beyond the figure set by Respondent, and (2) if the Union filed unfair labor practice charges against Respondent with the Board. As to (1), I, have found heretofore that , during the above bargaining session, after Respondent had made what it called "its last and final offer," Supak added that this was as far , as Respondent could go with wages, that the Union could take it or leave it, and that if the Union pushed him he would ' have to move the plant as he had done in another State when the Union involved pushed him on wages. As to (2), I have found also that the record falls short of establishing that Supak did , in fact, threaten at that time to move the plant if the Union filed unfair labor practice charges against Respondent with the Board. 14. The alleged' interference with employees by Respondent in,directing them at a meeting called by it to initiate , for employee signatu 'r'e, a, petition opposing any union in the plant Employees Tillett, Upton, and Morgan, who testified for the General Counsel in this connection , each ' gave substantially , similar testimony, viz, Terranova , called a meeting of all the employees in the 'plant on May 27, 1970. At first, Terranova told them about a new , training program which was to begin on June 15 , next, and discussed the work situation at the plant: Thereafter, he made reference to the fact that Respondentwas unsuccess- ful in its efforts to get a, Board -election to determine ^ the representative status of : the Union and said that the, best way to get ' the Union out of the plant was for the employees to prepare and sign a petition opposing any union in- the plant, However, Clifton as wellas Eubanks and Terranova differed in their version of what ; occurred after production"matters and the status of the petition by Respondent for a Board election were discussed. Accord- ing to their mutually corroborative testimony, Clifton inquired as to whether the employees could ,, .,,get up a petition concerning getting the Union out of the plant, and Terranova replied that he could not do anything ,^.that it was up to her if she wanted to file a petition .-Since I have heretofore discredited the testimony of Tillett, Upton, and Morgan , in other respects, e.g., as to whether bargaining sessions occurred on November 3 and 7, and' since I have heretofore found Clifton to be a reliable witness, and as her testimony finds corroboration in the'testimony of. Eubanks and Terranova and appears more plausible in the circum- stances, I credit her testimony andfind thatthe allegations of the complaint , as amended , ,in this respect have not been sustained by the record. D. Conclusions as to the Aforesaid Allegations of Threats in Violation of the Act Terranova's remarks to Morgan on January ' 27, ,1970, constituted, in the circumstances , a threat to discharge her for failing to become a member of, and , thus participating in, the Blue Cross-Blue Shield insurance program ,unilatei- ally put into effect by Respondent at the , plant, after the Union had opposed it during negotiations . In,addition, the statements by Terranova and Shapiro to employees :that they risked discharge if they engaged in a strike also constituted threats of job loss for engaging in activity protected by Section 7 of the Act. Accordingly, I find,that Respondent thereby contravened Section 8(aXl) of the Act. In addition, in view of my findings hereinafter, that the Union's representative status has continued beyond the expiration ,date of the 1966-69 contract, and since it is well established that the matter of a grievance procedure is a mandatory subject of bargaining ,48 it follows , and I find further, that by Terranova's conduct of telling-Respon- dent's , employees - during the above meeting on May 27, 1970, that , Respondent was no longer recognizing the Union as their bargaining representative and would not deal with the Union's -stewards on grievances,-as formerly,' -Respondent impliedly threatened to disregard their Section 7 rights under the Act in violation of,Section 8(a)(1),of the Act. Finally, I -find, that , by Supak's threat;at the , January,7 bargaining session , as, found, herein, that he would move the plant if the Union pushd him on wages beyond the point which he could go, Respondent further threatened 47 I am satisfied that the complaint misstated this date and find, in hght 98 See Industrial Union of Marine and Shipbuilding Workers of Amenca, of the evidence , that the statements attributed to Terranova were those AFL-CIO [Bethlehem Steel Co.] v. N.L.R.B., 320 F.2d 615 (C.)L 3), cert. occurring during the course of his speech on February 16, referred to above . demed 375 U.S. 984. SUPAK AND SONS MFG. CORP. 1241 and coerced its employees in violation of Section 8(a)(1) of the Act NCDWA, has been the exclusive bargaining agent of the employees in the aforesaid appropriate unit. E. The Allegation of Refusal To Bargain and Conclusions Thereon 1. The appropriate unit The complaint, as amended , alleges , Respondent's answer admits , and I find, that all production and maintenance employees, including janitors , head fixer, and truckdriver employed at, Respondent 's Elizabeth City, North,Carolina , plant, excluding office clerical employees, professional employees , watchmen, guards and supervisors as defined in the Act , constitute an appropriate unit for the purposes of collective bargaining within the meaning of Section 9(b) of the Act. 2. The majority status of the Union Respondent's answer asserts that at all times since October 12, 1966, when Local 26, RWDSU, was certified as the exclusive bargaining agent of the employees in the aforesaid appropriate unit, until the expiration of its 3-year contract' with Local 26, RWDSU, the latter has been such exclusive bargaining agent; however, it denies that Local 26, NCDWA, has been, or is now, the exclusive bargaining agent of the employees in the appropriate unit. In view of my' findings above that Local 26, NCDWA, is the successor to Local 26, RWDSU, and may claim all the rights which . derive from the status of the latter as the certified and contractual bargaining representative of Respondent's production and maintenance employees, it follows, and I find, that there is no merit to Respondent's contention that Local 26, NCDWA, was not, during the period of that contract which is material herein, the exclusive bargaining agent of these employees. Indeed, Respondent dealt with Local 26, NCDWA, as such exclusive bargaining representative at material times during the contract period and during the negotiations thereafter, up to`'and including the last negotiation session on January 7, 1970. Accordingly, as the presumption of continuing majority after the contract expired has not been overcome by a" clear showing that Local 26, NCDWA, no longer 'enjoyed majority support,5° and as it cannot be found, in view of Respondent's dealing with Local 26, NCDWA, as such majority representative during the postcontract period, that Respondent entertained a good- faith doubt concerning its continued majority,51 I con- clude, and find further, that at all times material herein, during the' contract and after its expiration, Local 26, 49 See Textile Workers Union of America v. Darlington Manufacturing Company, et als380 U.S. 263 (fn. 20). 5o It is manifest that even granting, without deciding, as Respondent impliedly contends, that less than a majority of the employees in the bargaining unit were members of the Union or paid union dues, this would not be the equivalent of showing lack of support, where, as here, the State of North Carolina had a "right to work" law. See Terrell Machine Company v. N.L R B., 427 F.2d 1088 (C.A. 'l. 51 See, in this connection, United Aircraft Corporation (Pratt & Whitney 3. Analysis and conclusions on the allegations of refusal to bargain As heretofore found, bargaining for a new contract began on November 3, 1969. Thereafter, additional bargaining sessions were held on November 7 and December 2 and 4,52 and a special session of the top officials of both sides followed on December 10, 1969. On the latter date, the negotiators for the Union walked out of the session apparently because of their dissatisfaction both with the terms then being,proposed by Respondent as an economic package and with the fact that the package was being presented as Respondent's final offer. Thereafter, Respondent unilaterally put - into effect wage increases, additional paid holidays, and vacation improvements. Bargaining resumed again on January 7, 1970, at the instance of the Union. This time, Respondent's negotiators walked out of the bargaining session, taking this action when the Union rejected their revised economic package which was presented as Respondent's last and final offer. The General Counsel contends, as alleged in the complaint, as amended, that the Union manifested its bad- faith bargaining by conduct during negotiations and thereafter. With respect to conduct during negotiations, he contends that (1) it unilaterally discontinued on December 5, 1969, collecting dues for checkoff as required under the 1966-69 contract; (2) it unilaterally instituted on or about December 8, 1969,53 various wage increases; (3) it unilaterally and precipitately discontinued bargaining sessions with the Union on January 7, 1970; (4) it threatened union negotiators on the same date by proffering a proposal to them relating to a health plan and informing them that they could take it or leave it; and (5) it also refused- on that date to engage in meaningful bargaining relating to a health plan by asserting that the Union's health plan would make the Union stronger. And with respect to conduct after January 7, 1970, he contends that on or about January 27, 1970, Respondent unilaterally instituted a hospitalization plan for employees and also unilaterally called meetings of its employees to encourage them to accept that plan, which was opposed by the union negotiators. Respondent, in turn, admits that "it put into effect wage increases and announced same on December 12" and that, "on or about January 27, 1970," it put into effect a Blue Cross-Blue Shield group insurance program. However, it defends such action on the ground that in no instance did the rate of wages or other benefits which were put into effect unilaterally on December 12 exceed those wages or benefits which had been offered to the Union by Respondent at the December 10 session as its last and final Division), 16$ NLRR480, where the Board held that , "so long as the contract is in effect, the presumption of continuing majority is virtually conclusive; thereafter it becomes rebuttable." See also N.L.R.B v. Gulfrnont Hotel Co., 362 F.2d 588 (C.A. 5); and Terrell Machine Company v. N.L.RB., supra. 52 The record shows that meetings were scheduled twice between November 7 and December 2 but were canceled because representatives of the Union were unable to be present. 53 The correct date as reflected by the record is December 12, 1969. 1242 DECISIONS OF NATIONAL LABOR RELATIONS BOARD offer, and rejected; and, similarly, that the increased benefits in the form of the insurance program did not exceed Respondent's offer which was rejected by the Union at the January 7, 1979, session. It contends more generally that at no time during the bargaining did it manifest an adamant or inflexible attitude. As to ,(l), contrary to the General Counsel, I find no warrant for concluding that Respondent -manifested bad faith in its bargaining by unilaterally discontinuing on December 5, 1969, to collect- dues for checkoff as required under the 1966-69 contract. Since there was no contract in existence when Respondent `discontinued collecting dues for checkoff, and since the obligation to effect such collections derived from the contract, Respondent was free to discontinue these collections 54 As to (2), the controlling consideration is whether, at the time of the unilateral changes in wages, the parties -had bargained to an impasse . For, it is only after good-faith negotiations have exhausted the prospects of concluding an agreement that an employer does not violate the Act by making unilateral changes in existing terms and conditions of employment that are reasonably comprehended with his preinripasse proposals.55 An examination of the state of bargaining at the point when these unilateral changes were made; in the light of my findings above, shows the following: Four regular bargaining sessions were held, and then a special session. The first two sessions were largely exploratory in nature, the Union submitting written contract proposals at the first session and Resporident'submitting written counterpropo- sals at the second session . At the second session, Respon- dent made no counterproposal, either written or oral, as to the Union's wage demands . The third session was devoted, in large part , to going through Respondent's written counterproposals and determining the areas of agreement and disagreement .' The parties were in agreement on numerous provisions which were identical to the 1966-69 agreement , namely, provisions as to union representatives and shop stewards, union shop chairman, bulletin board use, reporting pay, safety and health, strikes and lockouts, interim amendment, and savings clause; they also' agreed to the altered provisions therein relating to recognition, grievances, and leaves of absence. There was no agree- ment, however, as to those provisions in the counterpropo- sal 'relating to 'seniority, management prerogatives, daily overtime ', pay, break periods, holidays, and vacations. Wage rates were not explored at this session. There was as yet no written or oral counterproposal from Respondent on wages. The only discussion in this area related to whether the existing employee classifications of A, B, C, and 0, which determined an employee's rate of pay under the 1966-69 contract, should be continued. The fourth session produced an oral counterproposal from Respon- dent on wage rates. Along with wage rates, the parties discussed the issues of paid holidays, vacations, health and welfare, pensions , periodic reclassification of employees, and seniority. No progress was made on seniority, the Union requesting a change in the method of determining same and Respondent wanting to maintain the status quo. An understanding was reached on adding a new classifica- tion, "AA," by March 1, 1970, and leaving to Respondent the selection of 20 to 30 of its employees for that classification, subject to the Union' s right to grieve concerning any selections made by Respondent. Respon- dent rejected the Union's demands as to health and welfare and as to pensions on the ground that they were too costly and added that it would not grant these demands because to do so would make the Union strong. The vacation issue was not resolved either.' Although Respondent moved away from its counterproposal to pay money to employees in lieu of vacations with pay, there was still unsettled the question of whether employees could` eain up to 3 -weeks' vacation with pay and as to the number of years of service, on the basis of 1,500 qualifying hours of work per year, which were needed to qualify for such vacations . Nor was there any resolution of the paid holiday issue, Respondent offering one additional paid holiday, making three paid holidays in all, and the Union demanding five additional paid holidays, making seven paid holidays in all. On the matter of wages, the Union revised its wage demands from its, original demand ' for a minimum of $2.50 per hour to approximately $2 per hour when computed over a'3-year period, plus a 5-percent cost-of-living increase, and "then rejected as totally inadequate Respondent' s oral offer of 2- 172 cents, 5 cents, and-7-1 /2 cents per hour annually for classifications C, B, and A, respectively, and 2-1/2 cents in the third year. for the "0" classification; thus leaving the wage issue unresolved as well. The fifth session was the result of Respondent's proposal, initiated at the fourth session, to hold discussions between a top official on each side, excluding therefrom the Union's in-plant negotiating committee, in order to see whether agreement could be expedited on those issues which ' separated them. At no time did the Union,agree to abandon regular bargaining sessions in the future were this attempt to fail. At this session, discussion centered on the unsettled economic issues between the parties and on the noneconomic issue of seniority. At the, conclusion of the session, =there was no agreement on any of these issues . The Union's seniority demands were unacceptable to Respondent 's officials. There was no movement by either side on vacations. As to paid holidays, Respondent's officials offered to increase the number of paid holidays to four; but the union officials increased their demand from seven to eight paid holidays. And as to wages, Respondent twice increased its original offer on wages, but made no offer with respect to the Union's demands on health and welfare, although the union officials labeled the latter a key economic demand. The session ended upon the following note : Robinson said he would not recommend the revised wage 'counteroffer to the employees who had, the ultimate say on whether' to accept or reject it; Tugman then announced that Respon- Sa See Industrial Union of Marine and Shipbuilding Workers of America, AFL-CIO v. N.L.R.B., supra, in which the contract had both a union-shop and checkoff provision and the court reached a similar conclusion. As the contract in the instant case had no union-shop provision, North Carolina being a "right to work" State, we are presented here with an a fortiori situation. s' See Taft Broadcasting Co., 163 NLRB 475. SUPAK AND SONS MFG. CORP. dent's counteroffer as to wages, paid holidays, and vacations was its final offer; at this, the union officials got up and left the meetingi56 It was in this context that Respondent proceeded on December 12 to announce and put into effect its last and final offer-of December 10 respecting wages, paid holidays, and vacations , albeit there was also pending, apart from the above, unresolved differences as to health and welfare, seniority, management prerogatives, daily overtime pay, break ' periods, and the duration of the agreement. "Whether, a bargaining impasse exists is a matter of judgment. The bargaining `history, the good faith of the parties in negotiations , the length of the negotiations, the importance of the issues to which there is disagreement,' the contemporaneous understanding of the parties as to the state of negotiations are all relevant factors to be considered in deciding whether an impasse in bargaining existed ."57 Here, as found immediately above, it was not until the, fourth regular bargaining session that Respondent made a counteroffer on wages and that bargaining occurred on that issue . While it is true that wages, paid holidays, vacations, and other economic issues were discussed at the special session which followed and that such discussion did not produce agreement on these issues, this afforded Respondent no warrant for equating this session to a last-ditch effort at reaching agreement,58 nor was there any contemporaneous understanding by the parties to that effect., Furthermore, at the close of the special session , the issues as to which the parties were still in disagreement were undeniably important ones. Accord- ingly, applying these standards, I conclude, and find, that the parties did not, reach an impasse in negotiations on December 10, 1969. And I conclude, and find further, that by unilaterally announcing and -instituting changes in existing wage rates, paid holidays, and vacation benefits 2 days thereafter, Respondent violated its duty to bargain under Section=8(a)(5) of the Act.59, As to (3), (4),, and (5), it is apparent from my findings above that when Respondent returned to the bargaining table at the instance of the Union on January 7, 1970, the session was marked by some progress toward agreement, in that the Union dropped its demand for a pension agreement and Respondent revised upward its counteroffer on paid holidays and on employee reclassification. Howev- er, no progress was made on the matter of wage rates, as Respondent would not agree to alter the wage rates which it had unilaterally put into effect on December 12, 1969. Also, on the issue of health and welfare, Respondent 56 Although the union officials left without having set a date for the resumption of regular bargaining sessions , nowhere does it appear that they were, because of this abortive attempt at speeding up arrival at an agreement, abandoning efforts at reaching an agreement through further regular bargaining sessions. sr Taft Broadcasting Co, supra. 58 I draw no inference adverse to the Union from the size of its economic demands. For, "what may appear to be an unreasonable, obdurate demand may, be no more than the skillful practice of the negotiator's art, designed to wring concessions from the opposite side Congress has excluded the Board from interfering in this process no matter how strongly it feels about the merits of the proposals under discussion ." United Steelworkers of America, AFL-CIO v. N.LRB, 441 F.2d 1005 (C.A.D.C.). 1243 rejected the Union's demand for its own health and welfare program and gave as one of the reasons for doing so that such 'a provision would make -the Union stronger.60 While it is true that Respondent offered to its employees, instead, a Blue Cross-Blue Shield insurance program with contrib- utions by it to the cost thereof, this offer was -presented, along with the above-mentioned revised counteroffers on paid holidays and on employee reclassification, as the last and final offer. This was-followed, in turn, by-a threat that if the Union pushed Respondent, Respondent would move the plant as it had done before iii another State when the union involved pushed it on wages. And when tempers flared, with the Union charging a refusal to bargain and alluding to what might eventuate if it had to resort to economic warfare, Respondent's negotiators got up and left the meeting. It is evident that-the'Union made few concessions during this bargaining meeting. `However, taking into account the ` facts that only five bargaining sessions and one special session had been held, and that the first two -regular bargaining sessions were exploratory in nature, and in view of the fact that the Union at no time indicated that its bargaining positions were final ones, I conclude, and find, that the Union's negotiators acted more consistently with a strategy to wring concessions from Respondent than with an' unwillingness to engage in meaningful bargaining. Indeed, that the union wished to bargain further is evident from my findings heretofore as to its abortive efforts to get Respondent to resume bargaining; i.e., the next day through the efforts of Twining and Tillett, later the same month through the efforts of a Federal mediator enlisted by Parker, and still later on April 21, 1970, the day after the complaint issued herein, through the efforts of Parker, Roundtree and Bailey in contacting Terranova. Under all these circumstances, I am persuaded, and find, that by injecting as an operative factor'in its,bargaining attitude respecting the Union's demand for its health and welfare program that such a provision would make the Union stronger, by counteroffering the Blue Cross-Blue Shield insurance program on'a take-it-or-leave-it basis, and by unilaterally and precipitately discontinuing bargaining when it failed to get acceptance of its counteroffer, Respondent clearly demonstrated that it was` not bargain- ing with a serious intent to adjust differences and reach an acceptable common ground. I therefore conclude, and find further, that Respondent was not bargaining in good faith and violated Section 8(a)(5) of the Act thereby.61 There still remains the allegations that Respondent 50 See NLRB. v. Benne Katz, d/b/a Williamsburg Steel Products Co., 369 U.S. 736. I note that the parties stipulated that, on December 15, 1969, R espondent posted on its bulletin board a revised list of its employee classifications so as to include a new "AA'-' classification, and to set forth therein the, employees in each such classification. However, as no violation was alleged ,in the complaint, as amended, with respect to this unilateral action, and as the issue was not fully litigated, I do not pass upon whether such unilateral conduct also violated the Act. 60 Another reason was the cost to Respondent. 6i See General Electric Company, 150 NLRB 192, and cases cited therein; see also Basco Olympia, Inc, d/b/a Basco 5-14-25 Cent, 185 NLRB No. 110. 1244 DECISIONS OF NATIONAL LABOR RELATIONS BOARD further violated this section of the Act by unilaterally instituting on or about January 27, 1970, a hospitalization plan for its employees . Respondent admits , in substance, that, on January 19, 1970, it announced to its employees and posted in the plant its Blue Cross -Blue Shield insurance program but argues , as it did in the instance of the unilateral grant of wage increases and other benefits on December 12, 1969, that this grant of benefits did not exceed what had been offered to the Union during bargaining and was rejected . Since I have found heretofore that Respondent did not bargain in good faith at the bargaining session preceding this unilateral action, it follows therefrom that no impasse was reached during such bargaining.62 Accordingly, I conclude, and find, that, by unilaterally putting into effect a Blue Cross-Blue Shield insurance program for its employees in the course of bargaining, Respondent, as it had by its prior unilateral action on wages and other benefits, violated its duty to bargain under Section 8(a)(5) of the Act 63 In sum, therefore, I conclude, and find, in light of Respondent's illegal unilateral action on wage increases and other economic benefits on December 12, 1969, its refusal to bargain in good faith as to the hospitalization issue on January 19, 1970, and its,-illegal unilateral action on a hospitalization plan on January 19, 1970, Respondent has, since December 12, 1969, refused to bargain with the Union in good faith in violation of Section 8(a)(5) and (1) of the Act. Upon the basis of the entire record, I make the following: CONCLUSIONS OF LAW 1. Respondent is an employer engaged in commerce within the meaning of Section 2(6) and (7) of the Act. 2. The . Union is a labor organization within the meaning of Section 2(5) of the Act. 3. The following employees of Respondent constitute a unit appropriate for the purposes of collective bargaining within the meaning of Section 9(b) of the Act: All production and maintenance employees, including janitors, head fixer, and truckdriver employed at Respondent's Elizabeth City, North Carolina, plant, excluding office clerical employees, professional em- ployees, watchmen, guards and supervisors as defined in the Act. 4. At all times material herein, the Union has been the exclusive representative of all employees within said appropriate unit for purposes of collective bargaining, within the meaning of Section 9(a) of the Act. 62 See Industrial Union of Marine and Shipbuilding Workers of America, AFL-CIO v. N.LR.B., supra. 63 See N.LR.B. v. Benne Katz, d/b/a Williamsburg Steel Products Co., supra. I find it unnecessary to, and do not, pass upon whether, as alleged, Respondent further violated the Act in this connection by unilaterally calling meetings of employees in order to encourage them to accept its Blue Cross-Blue Shield insurance program . I do so because this conduct is part and parcel of the same transaction considered in the text above and because the remedy herein as to the violation already found is adequate in the premises. 5. By unilaterally granting wage increases and other employee benefits to its employees on December 12, 1969, during the course of bargaining, Respondent violated Section 8(a)(5) and (1) of the Act. 6. By refusing to bargain in good faith concerning a hospitalization plan for its employees on. January 7, 1970, and by thereafter unilaterally putting into effect a hospitalization plan opposed by the Union, Respondent violated Section 8(a)(5) and (1) of the Act. 7. By failing and refusing to bargain in good faith since December 12, 1969, in the foregoing respects, Respondent has violated Section 8(a)(5) and (1) of the Act. 8. By the following conduct which interfered with, restrained , and coerced employees in the exercise of the rights guaranteed in Section 7 of the Act, Respondent has engaged in and is engaging in unfair labor practices within the meaning of Section 8(a)(1) of the Act: (a) Threatening to move its Elizabeth City, North Carolina, plant if the Union insisted on bargaining about wages beyond the figure set by it. (b) Threatening to discharge an employee for failing to become a member of, and thus participating in, the hospitalization plan unilaterally put into effect by it at the above plant after the Union had opposed the plan during negotiations. (c) Threatening employees with the risk of discharge if they engaged in a strike. (d) Impliedly threatening to disregard the Section 7 rights of its employees by telling them that it was no longer recognizing the Union, which was their lawful exclusive bargaining agent at the time, and would not deal with the Union's stewards on employee grievances. 9. Respondent has not violated Section 8(a)(1) of the Act in any respect not found herein. THE REMEDY Having found that Respondent has engaged in unfair labor practices within the meaning of Section 8(a)(1) and 8(a)(5) of the Act, I shall recommend that Respondent cease and desist therefrom and from interfering in any like or related manner with the efforts of the Union to bargain collectively with Respondent. I shall also recommend affirmatively that Respondent, upon request, recognize, and bargain in good faith with, the Union as the exclusive representative of all its employees in the appropriate unit with respect to rates of pay, hours, and other terms and conditions of employment, embodying in a signed agree- ment any understanding reached 64 Upon the basis of the foregoing findings of fact and conclusions of law, and upon the entire record in the case, I hereby issue the following recommended: 65 84 Compliance with the terms of the recommended Order herein will require Respondent to recognize, and bargain in good faith with, the Union for a reasonable period of time, even if defections from the Union have resulted in the Union's loss of majority. See Franks Bros . Company v. N.L.R.B., 321 U.S. 702; N.L.R.B. v. Gissel Packing Co., Inc., 395 U.S. 575; N.LR.B. v. Miami Coca-Cola Bottling Co., 382 F.2d 921 (C.A. 5). 65 In the event no exceptions are filed as provided by Section 102.46 of the Rules and Regulations of the National Labor Relations Board, the findings, conclusions and recommended Order herein shall, as provided in Section 102.48 of the Rules and Regulations , be adopted by the Board and become its findings , conclusions, and Order, and all objections thereto shall be deemed waived for all purposes. SUPAK AND SONS MFG. CORP. 1245 ORDER Respondent, Supak and Sons Manufacturing Corpora- tion, its officers, agents, successors, and assigns, shall: 1. Cease and desist from: (a) Refusing to bargain collectively in good faith concerning rates of pay, wages, hours of employment, or other conditions of employment with Local 26, National Council of Distributive Workers of America, successor to Local 26, affiliated with Retail, Wholesale and Department Store Union, AFL-CIO , as the exclusive representative of the employees in the following appropriate unit: All production and maintenance employees, including janitors, head fixer, and truckdriver employed at Respondent's Elizabeth City, North Carolina, plant, excluding office clerical employees, professional em- ployees, watchmen, guards and supervisors as defined in the Act. (b) Granting unilaterally to the employees in the aforesaid appropriate unit, while engaged in bargaining with the aforesaid Union, wage increases or other economic benefits. (c) Interfering with, restraining, or coercing its employees in the exercise of their rights guaranteed in Section 7 of the Act by threatening to move its Elizabeth City, North Carolina, plant if the aforesaid Union insisted on bargain- ing about wages beyond the figure set by it; or by threatening to discharge an employee for failing to become a member of, and thus participating in, a hospitalization plan unilaterally put into effect by it but opposed by the aforesaid union during negotiations; or by threatening employees that they risked discharge if they engage in a strike; or by impliedly threatening employees to disregard their rights under the Act by telling them that it was no longer recognizing the aforesaid union and would no longer deal with the stewards of the aforesaid union concerning their grievances; or by granting them wage increases or economic benefits; provided, however, that nothing herein is to be construed as requiring Respondent to rescind, abandon, or vary any term or condition of employment heretofore establis.4ed, unless it be as a result of collective bargaining. (d) In any like or related manner interfering with, restraining, or coercing its employees in the exercise of their rights to join or assist a union, to bargain collectively through representatives of their own choosing, and to engage in other concerted activities for mutual aid or protection. 2. Take the following affirmative action which is necessary to effectuate the policies of the Act: (a) Upon request, bargain collectively with the aforesaid Union as the exclusive representative of all employees in the aforesaid appropriate unit, and embody in a signed agreement any understanding reached. (b) Post at its plant in Elizabeth City, North Carolina, copies of the notice marked "Appendix." 66 Copies of said notice, on forms provided by the Regional Director for Region 11, after being signed by a representative of Respondent, shall be posted by Respondent immediately upon receipt thereof and be maintained for 60 consecutive days thereafter in conspicuous places, including all places where notices to employees are customarily posted. Reasonable steps shall be taken by Respondent to insure that said notices are not altered, defaced, or covered by any other material. (c) Notify the said Regional Director, in writing, within 20 days from the date of the receipt of this Trial Examiner's Decision, what steps Respondent has taken to comply herewith.67 IT IS FURTHER RECOMMENDED that the complaint, as amended, be dismissed insofar as it alleges violations of Section 8(a)(1) of the Act not found herein. 66 In the event that the Board 's Order is enforced by a judgment of a United States Court of Appeals, the words in the notice reading "Posted by Order of the National Labor Relations Board" shall be changed to read "Posted Pursuant to a Judgment of the United States Court of Appeals enforcing an Order of the National Labor Relations Board." 67 In the event that this recommended Order is adopted by the Board after exceptions have been filed, this provision shall be modified to read: "Notify said Regional Director, for Region 11, in writing, 20 days from the date of this Order, what steps Respondent has taken to comply herewith." APPENDIX NOTICE TO EMPLOYEES POSTED BY ORDER OF THE NATIONAL LABOR RELATIONS BOARD An Agency of the United States Government WE WILL NOT refuse to bargain collectively in good faith with Local 26, National Council of Distributive Workers of America, successor to Local 26, affiliated with Retail, Wholesale and Department Store Union, AFL-CIO, as the exclusive representative of the employees in the following appropriate unit: All production and maintenance employees, including janitors, head fixer, and truckdriver employed at Respondent's Elizabeth City, North Carolina, plant, excluding office clerical employ- ees, watchmen, guards and supervisors as defined in the Act. WE WILL NOT grant unilaterally to the employees in the aforesaid appropriate unit, while engaged in bargaining with the aforesaid Union, wage increases or other benefits. WE WILL NOT interfere with, restrain, or coerce our employees in the exercise of rights guaranteed in Section 7 of the Act: By threatening to move our Elizabeth City, North Carolina, plant if the aforesaid Union insisted on bargaining about wages beyond the figure set by us; or By threatening to discharge an employee for failing to become a member of, and thus participating in, a hospitalization plan unilateral- ly put into effect by us but opposed by the aforesaid Union during negotiations; or By threatening our employees that they risked discharge if they engaged in a strike; or By impliedly threatening our employees to disregard their rights under the Act by telling them that we no longer recognize the aforesaid Union and would no longer deal with the 1246 DECISIONS OF NATIONAL LABOR RELATIONS BOARD stewards of the aforesaid Union concerning their grievances; or By granting them wage increases or economic benefits, provided, however, that nothing herein requires us to rescind, abandon, or vary any term or condition of employment, unless it be as a result of collective bargaining. WE WILL NOT in any like or related manner interfere with, restrain, or coerce our employees in the exercise of their rights to join or assist a union, to bargain collectively through representatives of their own choos- ing, and to engage in other concerted activities for mutual aid or protection. Dated By (Representative) (Title) SUPAK AND SONS MANUFACTURING CORPORATION (Employer) This is an official notice and must not be defaced by anyone. This notice must remain posted for 60 consecutive days from the date of posting and must not be altered, defaced, or covered by any other material. Any questions concerning this notice or compliance with its provisions, may be directed to the Board's Office, 1624 Wachovia Building, 301 North Main Street, Winston- Salem, North Carolina 27101, Telephone 919-723-2300. Copy with citationCopy as parenthetical citation