Sussex Properties, Inc.Download PDFNational Labor Relations Board - Board DecisionsMay 6, 1987283 N.L.R.B. 896 (N.L.R.B. 1987) Copy Citation 896 DECISIONS OF THE NATIONAL LABOR RELATIONS BOARD ,Sussex ; Properties , Inc. and Hotel Employees and Restaurant Employees Local Union 886, AFL- CIO. Case 10-CA-21425 6 May 1987 DECISION AND ORDER By CHAIRMAN DOTSON AND MEMBERS JOHANSEN AND BABSON On 27 May 1986 Administrative Law Judge J. Pargen Robertson issued the attached decision. The Respondent filed exceptions and a supporting brief, the General Counsel filed limited exceptions and a supporting brief, and the Respondent filed a brief in opposition to the General Counsel's exceptions. The National Labor Relations Board has delegat- ed its authority in this proceeding to a three- member panel. The Board has considered the decision and the record in light of the exceptions and briefs and has decided to affirm the judge's rulings, findings,1 and conclusions and to adopt the recommended Order as modified. We-;agree with the judge that the Respondent violated Section 8(a)(3) and (1) of the Act by dis- charging Ruth Morton, the president of the Union.s We also agree that the Respondent violat- ed Section 8(a)(1) when it solicited employee Addie Dorsey to check with the employees to see if they were going to walk out, and report back to the Respondents The General Counsel excepts to the judge's fail- ure to find in addition that about 28 or 29 Decem- ber 1985 the Respondent again unlawfully solicited Dorsey to conduct surveillance on the union activi- ties of other employees, and report those activities to the, Respondent. The Respondent contends that the General Counsel's allegation that there was a second incident of unlawful solicitation of surveil- lance goes far beyond the narrow allegations of the charge in this case. We find merit in the General ,Counsel's exception, and we agree with the judge i The Respondent has, excepted to some of the judge's credibility find- ings. The Board's established policy is not to overrule an administrative law judge's credibility resolutions unless the clear preponderance of all the relevant evidence convinces us that they are incorrect Standard Dry Wall Products, 91 NLRB 544 (1950), enfd 188 F 2d 362 (3d Cir 1951). We have carefully examined the record and find no basis for reversing the findings. 2, Member Babson agrees with the judge's finding that the Respondent knew of Morton's position In so doing, however, he does not rely on the judge's statement that "[I]t is incredible that any employer would hear of a possible strike without fully investigating the status of the employee that uttered the threat." a See, e.g, Holding Co, 231 NLRB 383, 388 (1977) In adopting the judge's conclusion, we find it unnecessary to pass on his reliance on Eagle Headers, 273 NLRB 1486 (1985). Member Babson additionally notes that no exception was filed to the judge's finding that Dorsey is not a supervisor that the surveillance allegation does not exceed the scope of the charge. In finding that the Respondent unlawfully co- erced employee Dorsey into interfering with the employees' protected union activities, the judge credited Dorsey's testimony that, on 27 December 1985, Acting General Manager Clayton asked Dorsey to check with the maids to see if they were going to walk out so he could get somebody else in there to work, and that Dorsey did report back that the maids were not going to walk out. Howev- er, Dorsey also testified that a day or two later Clayton again asked her if she would talk to 'the ladies and find out what was going on with the Union. According, to Dorsey, a couple of days after that, she reported to Clayton that the maids were not talking to her and that if they were talk- ing when she approached, they would stop talking. We find, based on this testimony of Dorsey, who was generally credited by the judge,- that by this second incident the Respondent again solicited its employee to report on the union activities of her fellow employees, and thus again interfered with their Section 7 rights in violation of Section 8(a)(1).4 ORDER The National Labor Relations Board adopts the recommended Order of the administrative law judge as modified below and orders that the Re- spondent, Sussex Properties, Inc., Birmingham, Alabama, its officers, agents, successors, and as- signs, shall take the action set forth in the Order as modified. 1. Substitute the following for paragraph 1(a). "(a) Interfering with, restraining, or coercing its employees in the exercise of rights guaranteed them by Section 7 of the Act in violation of Sec- tion 8(a)(1) of the Act by soliciting its employees to report on union activities of other employees and to engage in the surveillance of the union ac- tivities of other employees." 2. Substitute the attached notice for that of the administrative law judge. 4 See, e g ., Holding Co., supra 283 NLRB No. 139 SUSSEX PROPERTIES 897 APPENDIX NOTICE To EMPLOYEES POSTED BY ORDER OF THE NATIONAL LABOR RELATIONS BOARD An Agency of the United States Government ployees to engage in surveillance of its employees' union activities. On consideration of the entire record and briefs filed by the General Counsel and Respondent, I make the fol- lowing2 FINDINGS OF FACT The National Labor Relations Board has found that we violated the National Labor Relations Act and has ordered us to post and abide by this notice. WE WILL NOT solicit our employees to report on activities of other employees or to engage in sur- veillance of the activities of other employees on behalf of Hotel Employees and Restaurant Em- ployees Local Union 886, AFL-CIO, or any other labor organization. WE WILL NOT discharge our employees because they engage in union activities or other concerted activities protected under the National Labor Rela- tions Act. WE WILL NOT in any like or related manner interfere with, restrain, or coerce you in the exer- cise of the rights guaranteed you by Section 7 of the Act. WE WILL offer Ruth Morton immediate and full reinstatement to her former job or, if that job no longer exists, to a substantially equivalent position, without prejudice to her seniority or any other rights or privileges previously enjoyed and WE WILL make her whole for any loss of earnings and other benefits resulting from her discharge, less any net interim earnings, plus interest. WE WILL notify her that we have removed from our files any reference to her discharge and that the discharge will not be used against her in any way. SUSSEX PROPERTIES, INC. Virginia Jordan, Esq., for the General Counsel. Barry V Frederick and Charles A. Powell III, Esqs., of Birmingham , Alabama, for the Respondent. DECISION STATEMENT OF THE CASE J. PARGEN ROBERTSON, Administrative Law Judge. This case was heard in Birmingham, Alabama, on 21 March 1986. The charge was filed on 30 December 1985, and amended on 13 February 1986. The complaint, which issued on 7 March 1986, alleges that Respondent' violated Section 8(a)(l) and (3) by discharging employee Ruth Morton, and Section 8(a)(1) by soliciting its em- ' The charge and the complaint show Respondent as Columbia Sussex Corporation, Inc However, the parties stipulated during the hearing that the correct name of Respondent is Sussex Properties, Inc This case involves an admitted successor employer and the discharge of the Local Union's president because she made a statement to a nonunit employee about a strike. Respondent operates a hotel in Birmingham, Alabama, which has changed owners on several occasions during the past few years. From 1980 until 27 December 1985, the hotel was owned by the Birmingham Hilton. In 1976, the hotel was called the Kahler Plaza, and from 1978 until 1980 it was called the Plaza Hotel South. Respond- ent purchased the hotel effective 12:01 a.m., 27 Decem- ber 1985. The unit employees involved in the instant matter have been represented by Hotel Employees and Restau- rant Employees Local Union 886, AFL-CIO continuous- ly since 1977. Alleged discriminatee Ruth Morton served as vice president beginning in 1979. She also served as shop steward in the housekeeping department. From 1982 on, Ruth Morton was Local 886' s presi- dent. On 27 December, 1985 Respondent interviewed numer- ous applicants for employment, including employees of the predecessor employer. One of those applicants was Ruth Morton. Morton had worked continuously at the hotel under its various owners since August 1976. Ac- cording to Morton's testimony, which I credit, 3 she was interviewed by Acting General Manager Stan Clayton. Before beginning the interview, Morton noticed Clayton talking with Assistant Housekeeper Addie Dorsey.4 Clayton left Dorsey, walked to Morton, and -said, "Oh, you're Ruth." Morton said she was wearing an idlentifica- tion button and a union button during the interview. However, according to Clayton, he did not notice Mor- ton's name tag. On the night of 27 December, around 8:30 p.m., Morton was called by Addie Dorsey and told to report to work at the hotel the next morning. Morton reported to work on 28 December. She worked approximately 6 hours when she was paged by Addict Dorsey.' Dorsey directed Morton to report to the front office where she was discharged by Stan Clayton. 2 Neither jurisdiction nor the status of the ' Charging Party is at issue. Respondent admitted that it is an Alabama corporation with a Birming- ham, Alabama location, where it is engaged in the business of providing hotel and restaurant services to the public and is an employer engaged in commerce within the meaning of Sec 2(6)'and (7) of the Act. Respond- ent also admitted that the Charging Party is a labor organization within the meaning of Sec 2(5) of the Act. a Respondent 's acting general manager Stan Clayton demomitrated by his testimony that he did not recall Morton's interview in detail. 4 Dorsey had been employed at the hotel since it wag the Kahier Plaza When Respondent took over the hotel on 27 December, Dorsey was a member of the staff and was' mcluded in the meeting of the depart- ment heads on that day. 898 DECISIONS OF THE NATIONAL LABOR RELATIONS BOARD Present at the discharge interview were Clayton, Morton, Addie Dorsey, and Karen Mineo . Mineo testi- fied that she works "for the home office ... more or lessin quality control." Stan Clayton asked Karen Mineo to sit in the inter- view, but not to say anything. According to Morton, Stan Clayton asked her about her problems and told, her "I've got an employee that would tell me you said you, all was going to strike." Morton admitted that she denied telling any employee that she was going to strike. Clayton subsequently called in employees Norma Gaddy and Rhonda Hatcher who said that Morton had told them that "they was going to 'strike on Saturday." Morton was discharged. Her payroll charge notice states: 1 Ruth Morton was heard by Norma and Rhonda that she was going on strike Saturday. Addie Dorsey testified that she was present at a staff meeting on 27 December. During the meeting, Rhonda Hatcher told Stan Clayton that "he should know they had plans to strike that Saturday." Hatcher said to Clay- ton that "it was told to her in confidential [sic] by Ruth Morton."5 Clayton told Dorsey "to check with the ladies to see if they were going to walk out so he could get somebody else in there to work." On the day of Morton's dis- charge,,' Dorsey reported to Clayton that the ladies "weren't going to walk out because they needed to work. 116 Conclusion The evidence does not dispute that on 27 December employees, including Ruth Morton, received their final paychecks from the predecessor employer. Ruth Morton went to,the 'office to inquire why insurance premiums were deducted from both her wage and vacation checks. At the office Morton spoke with Executive Secretary Rhonda Hatcher. According to Morton, Hatcher had been Morton's "inside source" and they maintained a close relationship. After discussing Morton's,'insurance deduction prob- lems, Hatcher asked Morton "what is [International 5 Clayton's testimony about what he was told by Hatcher is similar to the above testimony of Dorsey. However, Clayton testified that Hatcher talked with him after the staff meeting outside the hearing of Dorsey I credit Dorsey who showed good demeanor Dorsey's testimony reveals personal knowledge she could not have possessed if Clayton's version of .the incident is correct. Neither Rhonda Hatcher nor Norma Gaddy testi- fied., 6 Clayton, denied that he asked anyone to "spy on the Union." When asked if he asked anyone to let him know if they heard,anything about a strike, Clayton testified- Not really. I was concerned that we were going, to be busy with the All-American Bowl and I was concerned if anyone wasn't going to show up because of the change in ownership. Again I credit Dorsey over Clayton. 'Clayton's answer demonstrated that he was concerned about a strike after hearing that a strike was predicted. His testimony that he did not mgwre about a strike appears improbable and somewhat self-contradictory Moreover, I was more impressed with Dorsey's demeanor Union Agent] Marshall Race gonna do about this mess, Ruth?" Morton responded, "We gonna strike." Morton then noticed that an' employee later identified as Norma Gaddy was standing behind her. Hatcher as- sured Morton that Gaddy would not say anything.' The record illustrates that a strike did not occur as forecast by Morton. Nevertheless, the question of wheth- er Morton's comment was correct is not of significant importance in the instant analysis. The issue at this point is whether Morton's action was protected -by the Nation- al Labor Relations Act. At the time of Morton's comment, no collective-bar- gaining agreement was in effect.8 Respondent does not quarrel with the above facts. However, Respondent argues that it was unaware on 27 and 28 December that Ruth Morton was the Local Union's president, and for that reason it did not realize if Morton was engaged in union activities. Additionally, Respondent argues that it understood Morton was threat- ening that she alone would strike; and her action was not concerted or protected. - - Respondent's argument must be rooted in jurispru- dence that has established that a so-called pretextual or mixed motive allegation must fail in those situations where the General Counsel is unable to prove that the employer knew of the alleged dischargee's union or pro- tected activities. See, e.g., Wright Line, 251 NLRB 1083 (1980), enfd. 662 F.2d 899 (1st 'Cir. 1981), cert. denied 455 U.S. 989 (1982). Here, Respondent contends that I should credit evidence that it had no knowledge that Morton was engaged in protected activities when she talked with Rhonda Hatcher. In that regard, the record evidence shows that Addie Dorsey was present when.Rhonda Hatcher told Acting General Manager Stan Clayton of Morton's comment. As indicated above, -I credit Dorsey's testimony. Dorsey testified: A. Rhonda Hatcher. She told Mr. - Clayton she thought he should know they had plans to strike that Saturday. Q. Did she say, anything else? A. She said it was told to her in confidential, you know, by Ruth. Q. Did she say Ruth who? A. Ruth Morton. - Q. Was anything else said at that time? A. Well, he asked me to check with the ladies to see if they were going to walk out so he could get somebody else in there to work. Q. What ladies are those? A. The maids. Q. And did you do that? A. Yes, I did. - - 7 Neither Hatcher nor Gaddy testified. Apparently, neither is now em- ployed by Respondent I credit Morton's testimony of the incident with Hatcher and Gaddy Her testimony is unrebutted and it is supported by record evidence about matters that flowed from that incident. The Union asked Respondent to assume the contract of the predeces- sor, but Respondent refused SUSSEX PROPERTIES 899 Q. Did you have a further conversation with Mr. Clayton after you had checked with the ladies? A. Yes, I did. Q. When was that? A. It was the same day I told him they weren't going .to walk out because they needed to work. It is, obvious from the above that Clayton was told that Ruth Morton had said that the employees planned to strike. Additionally, Clayton's subsequent action in asking Dorsey to check out the employees' plans sup- ports my conclusion that he was originally told the em- ployees planned to strike. Moreover, Respondent retained department heads, in- cluding Addie Dorsey, from the predecessor employer. All of those people knew that Ruth Morton was, and had been since 1982, president of the Local. I ami convinced that Respondent knew of Ruth Mor- ton's position as Local 886's president before her dis- charge. In the first place, as shown above , Respondent retained several department head supervisors from the predecessor employer. Therefore, Respondent, through its supervisors and agents , knew of Morton 's union posi- tion. Moreover, the actual source of Respondent's infor- mation that Morton was threatening to strike, Rhonda Hatcher, was fully aware of Ruth Morton's position as president of the Local. Finally, it is incredible that any employer would hear of a possible strike without fully investigating the status ' of the employee that uttered the threat. See Marathon LeTourneau Co. v. NLRB, 699 F.2d 248 (5th Cir. 1983); United Supermarkets, 261 NLRB 1291, 1301 (1982). Respondent also argues that Morton's comment was inconsistent with the Union's request that Respondent should assume its collective-bargaining agreement with the predecessor employer in that the predecessor em- ployer agreement contained a no-strike provision. I find no merit in that argument . The record is not in dispute that Respondent rejected the Union's efforts to extend to Respondent the terms of its predecessor agreement. Cf. Energy Coal Partnership, 269 NLRB 770 (1984), in which the union made a specific recommendation to the alleged discriminatees that they not engage in a strike. The issue here is much more fundamental than Re- spondent's arguments would imply. Here, the facts and issues are simple. An employee, Rhonda Hatcher, asked the Local Union's- president what the Union planned regarding changed working conditions. There can be no real dispute regarding the import of Hatcher 's question . That Hatcher 's question referenced union action was established by Hatcher men- tioning International Union Representative ' Marshall Race. The instant matter is similar in many ways to the land- mark case of NLRB v. Burnup & Sims, 379 U.S. 21, (1964). See also Rubin Bros. Footwear, 99 NLRB 610 (1952); K & K Transportation Corp., 262 NLRB 1481 (1982). In Burnup & Sims, the 'employer was advised by an employee that while soliciting him for membership in the union, two employees had said that "the union will use dynamite to get in if the union did not acquire the authorization." 379 U.S., at 21. There, as here, the em- ployer argued that its knowledge should be determina- tive . In Burnup & Sims, the employer argued that its good-faith belief that the two employees engaged in mise conduct should show that it did not engage in illegal ac- tivity. Here, Respondent argues that'it was unaware that Morton was engaged in protected activity. The Supreme Court in Burnup & Sims held that where employees are engaged in union activities , an employer 's good-faith belief is immaterial unless the record shows that the em- ployees actually engaged in misconduct. Here, the record shows that Rhonda Hatcher ques- tioned Ruth Morton about what the Union, through its International representative, planned . Ruth Morton re- sponded in kind (i.e., she told Hatcher the Union planned to strike). Hatcher and Gaddy understood that Morton was talking about union action . In fact, unrebutted testi- mony shows that Gaddy tried to persuade Morton to avoid calling a strike. Morton 's discussion of union ac- tivities constitutes protected activities9 as much as the employees ' solicitation efforts constituted protected ac- tivities in Burn up & Sims. Therefore, Respondent 's action against Morton is illegal unless it is shown that, Morton engaged in misconduct. The record shows that Morton did nothing more than predict a strike. She made no threat to Respondent. In fact, the evidence shows that Morton did not intend to convey her comments to Respondent. There was no in- stant - collective-bargaining agreement and, of course, there was no contractual prohibition to striking,. There- fore, neither a strike nor a prediction of a strike consti- tutes misconduct in this instance . Cf. Champion Parts, 260 NLRB 731 (1982); John Morrell & Co., 270 NLRB 1 (1984); General Electric Co., 253 NLRB 1189 (1981). I find that Morton was , engaged in union activities when she discussed the Union' s plans with employee Rhonda Hatcher on 27 December 1985. Those activities are protected by the National Labor Relations Act. Re- spondent did not have a good-faith belief that Morton's activities were unprotected. Nor did Respondent have a good-faith belief that Morton engaged in misconduct. In fact, Ruth Morton did not engage in misconduct. I find that Respondent's discharge of Morton violates the terms of the Act., The General Counsel also alleges that Respondent vio- lated Section 8(a)(l) by asking Addie Dorsey to report on its employees ' planned union activities. The only record evidence dealing with Dorsey's em- ployee status illustrates that she was not a supervisor. The credited evidence proves that Stan Clayton asked Dorsey "to check with the ladies to see if they were going to walk out so he could get somebody else in there to work." The Act protects employees from being required to report on union activities. I agree with Respondent's argument that it had a le- gitimate business interest in inquiring whether the house- keeping employees would strike. However, Respondent 9 Since the credited evidence shows that Respondent was, told that Morton had said that the employees were going to strike , I find that she was forecasting concerted activity that is protected regardless of Re- spondent 's knowledge about her position as president of the Local 900 DECISIONS OF THE NATIONAL LABOR RELATIONS BOARD had other sources to determine whether a, strike was planned. For, example, Respondent could have checked with International Representative Marshall Race. By re- quiring an employee to investigate and report, Respond- ent coerced that employee into interfering with the em- ployees' protected union activities. The Board has con- sistently found similar activities to be violative of Section 8(a)(1). Eagle Headers, 273 NLRB 1486, 1490 (1985).10 ADDITIONAL CONCLUSIONS OF LAW 1. By soliciting its employee to report on the union ac- tivities of other employees, Respondent violated Section 8(a)(1) of the Act. 2. By discharging employee Ruth Morton on 28 De- cember 1985, Respondent has engaged in conduct viola- tive of Section 8(a)(1) and (3) of the Act. 3. The aforesaid unfair labor practices are unfair labor practices affecting commerce within the meaning of Sec- tion 2(6) and (7) of the Act. THE REMEDY Having found that Respondent has engaged in unfair labor practices in violation of Section 8(a)(1) and (3) of the Act, I shall order it to cease and desist therefrom and take certain affirmative action designed to effectuate the policies of the Act. Having ' found that Respondent has illegally discharged its employee Ruth Morton in violation of Section 8(a)(1) and (3) of the Act, I shall order Respondent to offer Morton immediate and full , reinstatement to her former position or, if that' position no longer exists , to a substan- tially equivalent position without prejudice to her senior- ity or other rights and privileges , and to make Morton whole for any loss of `earnings she may have suffered as a result of the discrimination against her . Backpay and interest shall be computed in the manner described in F. W. Woolworth Co., 90 NLRB 289 (1950), and Florida Steel Corp ., 231 NLRB 651 (1977).11 On these findings of fact and conclusions of law and on the entire record, I issue the following recommend- edtz 10 Respondent argues that the General Counsel's 8(aXi) allegation should' be dismissed as outside the scope of the charge and additionally that it was misled by the General Counsel regarding the nature of the evidence in support of that allegation. That contention by Respondent must be rejected If Respondent was prevented from properly preparing a defense because of a misunderstanding as to the nature of the allegatipn, its proper recourse would have been to ask for sufficient time to prepare after the conclusion of the General Counsel's evidence. Respondent failed to make that request. I find the General Counsel's allegation does not exceed the scope of the charge. Clark Equipment Co, 278 NLRB 498, 499 (1986). '' See generally Isis Plumbing Co, 138 NLRB 716 (1962). 13 If no exceptions are filed as provided by Sea 102.46 of the Board's Rules and Regulations, the findings, conclusions, and recommended Order shall, as provided in Sec 102 48 of the Rules, be adopted by' the Board and all objections to them shall be deemed waived for all pur- poses. ORDER The Respondent, Sussex Properties, Inc., Birmingham, Alabama, its officers, agents, successors , and assigns, shall 1. Cease and desist from (a) Interfering with, restraining , or coercing its em- ployees in the exercise of rights guaranteed them by Sec- tion 7 of the Act in violation of Section 8(a)(1) of the Act by soliciting, its employees to report, on union activi- ties of other employees, (b) Discharging and refusing to reinstate employees be- cause of their protected union activities. (c) In any like or related manner interfering with, re- straining, or coercing its employees in the exercise of rights guaranteed them by Section 7 of the Act. 2. Take the following affirmative action necessary to effectuate the policies of the Act. (a) Offer immediate and full reinstatement to Ruth Morton to her former position or, if that position no longer exists, to a substantially equivalent position, with- out prejudice to her seniority or other rights and privi- leges, and make Morton whole. for any losses she may have suffered as a result of the discrimination against her in the manner set forth in the remedy section of this, de- cision. (b) Remove from Ruth Morton's personnel files any reference to its discharge of her and notify Morton in writing that this has been done and that evidence of its unlawful discharge will not be used as a basis for future personnel action against Morton. (c) Preserve and, on request, make available to the Board or its agents for examination and copying, all pay- roll records, social security payment records, timecards, personnel records and- reports, and all other records nec- essary to analyze the amount of backpay due under the terms of this Order. (d) Post at its Birmingham, Alabama facility copies of the attached notice marked "Appendix."13 Copies of the notice, on forms provided by the Regional Director for Region 10, after being signed by the Respondent's au- thorized representative, shall be posted by the Respond- ent immediately upon receipt and maintained- for 60 con- secutive days in conspicuous places, including all places where notices to employees are customarily posted. Rea- sonable steps shall be taken by the Respondent to ensure that the notices are not altered, defaced, or covered by any other material. (e) Notify the Regional Director in writing within 20 days from the date of this Order what steps the Re- spondent has taken to comply. 13 If this Order is enforced by a judgment of a United States court of appeals, the words in the notice reading "Posted by Order of the Nation- al Labor Relations Board" shall read "Posted Pursuant to a Judgment of the United States Court of Appeals Enforcing an Order of the National Labor Relations Board." Copy with citationCopy as parenthetical citation