The Associated PressDownload PDFNational Labor Relations Board - Board DecisionsOct 27, 1972199 N.L.R.B. 1110 (N.L.R.B. 1972) Copy Citation 1110 DECISIONS OF NATIONAL LABOR RELATIONS BOARD The Associated Press and William F. Achatz, Jr. and John T. Cunniff, and Noel M. Yancey Wire Service Guild , Local 222, Newspaper Guild, AFL-CIO-CLC I and The Associated Press. Cases 2-CA-12159, 2-CA-12159-2, 2-CA-12159-3, and 2-CB-4880 October 27, 1972 DECISION AND ORDER BY CHAIRMAN MILLER AND MEMBERS KENNEDY AND PENELLO Upon charges duly filed by The Associated Press, hereinafter AP, on August 20, 1970, in Case 2-CB- 4880, and upon charges duly filed by William F. Achatz, Jr., John T. Cunniff, and Noel M. Yancey, in Cases 2-CA-12159, 2-CA-12159-2, and 2-CA-121 59-3, on September 16 and 17, and October 8, 1970, respectively, the General Counsel of the National La- bor Relations Board, by the Regional Director for Region 2, issued a consolidated complaint on Decem- ber 16, 1970, against Wire Service Guild, Local 222, Newspaper Guild, AFL-CIO-CLC, hereinafter the Union, in Case 2-CB-4880, and against AP in the other cases. In essence, the consolidated complaint alleges that the Union violated Section 8(b)(1)(A) and (2) of the Act by demanding that AP check off and forward dues of employees who had prior thereto timely re- voked their dues checkoff authorizations, and by at- tempting to cause, and by causing, AP to discriminate against certain employees in violation of Section 8(a)(3) of the Act by complying with the Union's de- mand. The consolidated complaint also alleges that AP violated Section 8(a)(1) and (3) of the Act by deducting certain employees' dues after they had re- voked their checkoff authorizations, and violated Sec- tion 8(a)(2) of the Act by thereby rendering unlawful assistance and support to the Union. The Union filed its answer on January 21, 1971, denying the commission of any unfair labor practices. In its answer filed on January 15, 1971, AP admits committing the unfair labor practices alleged. A hearing was held before Trial Examiner Sam- uel M. Singer on January 6, 1972. During the hearing, and prior to the taking of testimony, the parties stip- ulated to certain facts on the record and requested that the proceeding be transferred to the Board. They also waived an evidentiary hearing before a Trial Ex- aminer and the issuance of a Trial Examiner's Deci- sion and recommended Order. The parties agreed to submit the case to the Board for findings of fact, 1 The name of the Union appears as amended at the hearing. conclusions of law, and an order based on a record consisting of the consolidated complaint, the AP and union answers, the award of an arbitrator concerning a dispute between the parties which issued on Decem- ber 3, 1971, the transcript of the arbitration hearing and the exhibits introduced thereto, a stipulation exe- cuted by the parties in March 1971 in preparation for this proceeding, and the stipulation on the record made before Trial Examiner Singer. The Trial Examiner accepted the stipulation and closed the hearing on January 6. Thereafter, on Janu- ary 19, the proceeding was transferred to and contin- ued before the Board. On January 25 the Board approved the stipulation of the parties. All parties subsequently filed briefs. Pursuant to Section 3(b) of the National Labor Relations Act, the National Labor Relations Board has delegated its authority in this proceeding to a three-member panel. Upon the basis of the stipulation, the briefs, and the entire record in this case, the Board makes the following: FINDINGS OF FACT I THE BUSINESS OF THE EMPLOYER AP, a New York corporation, has maintained an office and place of business in New York City, and various other places of business in the States of the United States and in several foreign countries, where at all times material herein it has been engaged, as an international news service, in providing world news and photo services, and related services. During the past fiscal year AP, in the course and conduct of its business operations, has performed services valued in excess of $500,000, of which services valued in excess of $50,000 were performed in, and for various enter- prises located in, States other than the State wherein it is located. The parties admitted, and we find, that AP is engaged in commerce within the meaning of the Act and that it will effectuate the purposes of the Act to assert jurisdiction herein. II THE LABOR ORGANIZATION INVOLVED The parties admitted, and we find, that the Un- ion has been at all times material herein a labor organ- ization within the meaning of Section 2(5) of the Act. III THE UNFAIR LABOR PRACTICES A. Facts AP and the Union have engaged in nationwide collective bargaining in a unit of editorial, newsphoto, newsfeatures, radio news, business office, and photo sales employees for about 30 years. None of their 199 NLRB No. 168 THE ASSOCIATED PRESS 1111 collective-bargaining agreements has contained a union-security clause, but since 1954 the following article governing dues checkoff has been included in every contract, including the two agreements involved in this proceeding: ARTICLE II CHECKOFF 1. Upon a regular employee's voluntary written request, the Employer [AP] shall deduct such an employee's monthly Guild [Union] dues, and/or assessments , according to certified schedule to be furnished by the Guild from time to time, from his salary account, unless such authorization is revoked in writing by the employee. 2. Such sums shall be paid to the Treasurer of the American Newspaper Guild on or before the end of the month in which the deductions are made. 3. Such request shall be made to the Treasurer of the Associated Press on the following form, to be supplied by the Guild: Treasurer: The Associated Press I hereby voluntarily request and authorize The Associated Press to deduct from my salary ac- count for the first payroll in each calendar month a sum equal to my regular Guild dues, as certified by the Guild Treasurer to The As- sociated Press. I further authorize The Associated Press to de- duct from my salary account from time to time whatever sums are certified by the Guild Treasurer to The Associated Press as my reg- ular Guild assessments. Such sums are to be paid to The Treasurer of the American Newspaper Guild not later than the end of the month in which the deduction has been made. This assignment and authorization shall re- main in effect until revoked by me, but shall be irrevocable for a period of one year from the date appearing below or until the termination of the collective bargaining agreement be- tween yourself and the Guild, whichever oc- curs sooner. I further agree and direct that this assignment and authorization shall be contin- ued automatically and shall be irrevocable for successive periods of one year each from the date appearing below or for the period of each succeeding applicable collective agreement be- tween the Employer and the Guild, whichever period shall be shorter, unless written notice of its revocation is given by me to the Employer and to the Guild by registered mail not more that thirty (30) days and not less than fifteen (15) days prior to the expiration of each period of one year, or of each applicable collective agreement between the Employer and the Guild, whichever occurs sooner. Such notice of revocation shall become effective for the cal- endar month following the calendar month in which the Employer receives it. This assignment and authorization supersedes all previous assignments and authorization heretofore given by me in relation to my Guild membership dues. Employee's Signature Bureau or Department Date The parties referred to the above as form A. An alter- nate form for dues checkoff, referred to as form B, provides that the "authorization may be revoked ... in writing upon 30 days' notice to both The Associat- ed Press and the Guild." The collective-bargaining agreements provide that on the written demand of either party there shall be submitted to arbitration "all disputes arising out of the application of this Agreement," with certain ex- ceptions not relevant here. The parties' so-called old agreement was due to expire on December 31, 1968, but it was extended by mutual consent on a day-to-day basis until about Jan- uary 4, 1969. On the morning of January 8 the Union commenced a strike after being informed by AP that the contract would not be in effect after January 7. The strike terminated on January 17 and on April 25 the parties signed a new collective-bargaining agree- ment which was retroactive only to January 15. During the period when no contract was in force governing the parties' labor relations (from about Jan- uary 4 to January 15), and during the 10-day strike, approximately 102 employee-members crossed the Union's picket line and worked for AP. Many of these members resigned from the Union and attempted to revoke their checkoff authorizations during the 7- to 10-day hiatus between contracts. After receiving the checkoff list for February from AP, the Union on April 14 wrote AP that "you failed to check off dues for 102 members who were heretofore on checkoff." The Union requested that AP check off and forward the February dues of the 102 enumerated members and continue future check- offs. It asserted that "effective notice to revoke check- off must have been given between and including December 2 and 16, 1968" and that "a resignation which does not specifically purport to revoke checkoff is not a revocation of checkoff." AP replied that it would not comply with the Union's request because in each instance it had been notified by the member during the hiatus to cancel or revoke his checkoff. 1112 DECISIONS OF NATIONAL LABOR RELATIONS BOARD Thereafter, on May 15 the Union demanded ar- bitration of the dispute pursuant to the parties' collec- tive-bargaining agreement. On June 5 AP replied that the matter was not arbitrable. On June 17 the Union filed a request for arbitration with the American Arbi- tration Association. AP sought to stay the arbitration proceeding, but on March 31, 1970, Judge Palmieri of the United States District Court for the Southern Dis- trict of New York denied AP's motion, and granted the Union's motion to compel arbitration in part be- cause the Union was "asserting a claim which on its face is governed by the language of the arbitration clause of the new agreement."' Prior to the arbitration hearing, AP filed unfair labor practice charges against the Union in Case 2- CB-4880. Also, on September 9, 1970, AP informed employees Achatz and Cunniff that pursuant to the' Union's demand it would resume deducting their monthly dues. A similar letter was sent to employee Yancey on September 30. Since then, AP has contin- ued to deduct and remit their monthly dues. These employees filed unfair labor practice charges against AP shortly after receiving AP's letters, and before the arbitration hearing. A hearing was held before Arbitrator Moskowitz under the auspices of the American Arbitration Asso- ciation on October 27. In an attempt to make manage- able an otherwise unwieldy fact pattern involving 102 employee-members' resignations and checkoff revo- cations, the parties stipulated to certain "types" as being typical of all other cases and agreed that the arbitrator's decision and award as' to them would gov- ern all cases in the same class. Types 1-4a dealt with form A authorizations. Type 1 involved an employee whose annual revoca- tion date was April 18' and who sent notices of revo- cation to both AP and the Union during the hiatus. In type 2, which included Charging Party Yancey, the employee's revocation date was February 1, thus os- tensibly permitting him to revoke during the January 4-15 hiatus period, but, although he sent a revocation notice to AP, the employee only sent the Union a resignation notice? The type 3 employee, who had a late June revocation date, sent a revocation notice to AP during the hiatus but no notice of any kind to the Union. Type 4 involved an employee with a June 18 revocation date, who sent notices of resignation only, to both AP and the Union during the hiatus; and, in 2 Associated Press v. Wire Service Guik>. Local 222, 73 LRRM 2908, 2910, 62 L.C. 10,778 3 By the terms of the form A checkoff authorization, the employee each year has the opportunity to revoke his authorization during the period 30 to 15 days before the date on which his checkoff was initially executed. Charging Party Cunniff, whose revocation date was March 5, sent a revocation notice to AP and a notice of resignation to the Union during the hiatus. None of the types considered by the arbitrator involved Cunndf's class, although type 2 is analogous. type 4a, the employee, who had a mid-November rev- ocation date, sent a resignation notice to AP but no notice of any kind to the Union. Types 5, 6, and 7 all involved form B checkoff authorizations which were revocable upon 30 days' written notice to the Union and AP. In type 5, which included Charging Party Achatz, the employee sent notices of revocation to both parties during the hiatus. The Union withdrew this type from the arbitration and thus the arbitrator did not pass on its merits. In type 6 the employee sent a revocation notice to AP and resigned from the Union during the hiatus, whereas the type 7 employee failed to send a notice of any kind to the Union after sending a revocation notice to AP on January 9, 1969.5 As noted, the consolidated complaint issued on December 16, 1970, after the arbitration hearing. Ar- bitrator Moskowitz apparently did not issue his opin- ion and award in time and he was subsequently discharged by the Union. The parties then on Novem- ber 1, 1971, stipulated the record of the arbitration proceeding to a second arbitrator, Simons, who on December 3 issued an opinion. In brief, Arbitrator Simons concluded that the form A authorization which employees of types 1 through 4a executed gave them the right, inter alia, to revoke their checkoff on any day during the period 30 to 15 days before the expiration date of the contract (December 31, 1968), or the actual day of expiration (January 4, 1969), that is, between December 2 and 16, or December 7 and 22, 1968, respectively. The arbitrator further found that: ... it is sufficient for disposing of most of this dispute to conclude and find that communica- tions executed with the intent of revoking check- off authorizations filed on or after the 15 day span referred to ... were without force and effect as they were not executed within the period pro- vided for in that segment of the check-off author- ization dealing with revocation. In dealing with AP' s argument that during the hiatus the revocation requirements of authorization form A were of no force and effect, thus permitting the involved employees to revoke at any time and in any manner during that period, the arbitrator, in find- ing no merit in AP's contention, reasoned that the checkoff authorization was essentially a wage assign- ment by the employee in favor of the Union which existed apart from the collective- bargaining agree- ment and therefore "survived the expiration of the contract and the employees were bound by its terms as was the employer." In this regard, the arbitrator 5 In the Board proceeding the parties' stipulations more fully detailed each of the 102 situations . Also, owing to subsequent admittedly timely revoca- tions the Union has withdrawn its demand for dues checkoff of about 43 members, including Charging Party Cunniff , but only as of the date of their later revocations THE ASSOCIATED PRESS 1113 further explained that, while termination of the con- tract, if sooner than a year from the annual revocation date, affords an employee the opportunity to revoke in less than a year, the checkoff by its terms lawfully required that this opportunity be exercised during the specified 15-day period before contract expiration. Fi- nally, the arbitrator found that Section 302(c)(4) of the Act 6 only requires that the checkoff be revocable at least once a year, and that one such time may be measured by the contract's expiration date, if sooner than the annual revocation date; however, the arbitra- tor held that the statute does not require that the authorization cease upon contract termination. In sum, the arbitrator's award granted the Union dues without interest from February 1969 until subse- quent timely revocations were received, in all instan- ces where AP honored untimely revocations (types 1, 3, 4, and 4a). In types 2,' 6, and 7 the attempt at revocation was found by the arbitrator to be timely, but since the employees in types 2 and 6, including Charging Party Yancey, only resigned from the Un- ion and "resignation is not revocation," the type 2 and 6 classes still owed dues to the Union from February 1969; in type 7, no notice was sent to the Union, and thus dues were owed. B. Contentions of the Parties 8 The General Counsel asserts that the Board should defer to the arbitrator's award under the standards set forth in Spielberg Manufacturing Com- pany, 112 NLRB 1080, and dismiss the complaint ex- cept where the award is "clearly repugnant to the purposes and policies of the Act." In particular, the General Counsel asserts that the checkoff authoriza- tions were revocable during the hiatus because the "authorizations become terminable at will after the contract expires." However, where even purportedly timely hiatus revocations were sent, he would defer to the arbitrator's award because the employees either resigned rather than revoked (to the AP or the Union, or both) or sent no notice to the Union, since, accord- ing to the General Counsel, the arbitrator's finding that such conduct does not constitute an effective revocation under the terms of the authorization "is 6 Section 302(cX4) provides an exemption from Section 302's ban on em- ployer payments to unions "with respect to money deducted from the wages of employees in payment of membership dues in a labor organization • Provid- ed. That the employer has received from each employee , on whose account such deductions are made , a written assignment which shall not be irrevoca- ble for a period of more than one year , or beyond the termination date of the applicable collective agreement, whichever occurs sooner . ." The parties stipulated that the Union's authorization forms comply with the Act 7 In this case , the revocation was timely because it was within the 30-15 day period before the annual revocation date. In view of our disposition of this case , we need not at this time pass on the Union's contention that the complaint is barred by Section 10(b) of the Act. deemed not to be inconsistent with established princi- ples of Board law." Thus, as to type 1 the General Counsel would not defer and would find that the Union violated Section 8(b)(1)(A) and (2) by demanding that AP check off the dues of employees who, during the hiatus period, sent notices of revocation to the Union and AP. Since for various reasons types 2, 3, 4, 6, and 7 involved ineffective although in some cases timely revocations, the General Counsel would dismiss the complaint with respect to conduct by the Union involving these employees, including Charging Party Yancey. How- ever, since the Union withdrew type 5 from arbitra- tion, and there Charging Party Achatz assertedly effectively and timely revoked his form B checkoff authorization, the General Counsel would find a vio- lation of Section 8(b)(1)(A) and (2). Also, since AP resumed checking off Achatz' dues in September 1970, the General Counsel asserts that AP thereby violated Section 8(a)(1), (2), and (3). Finally, although the arbitrator did not consider Charging Party Cunniff's case, the General Counsel asserts that he ineffectively revoked his checkoff during the hiatus by only sending a notice of resignation to the Union, as in type 2. However, the record indicates that in Feb- ruary 1970 Cunniff effectively revoked his authoriza- tion, the General Counsel asserts, and therefore AP violated the Act by resuming Cunniff's checkoff in September 1970. The Union contends that the arbitrator's award meets the Spielberg test in all respects and, citing Col- lyer Insulated Wire, 192 NLRB No. 150, asserts that the arbitration proceeding has resolved the unfair la- bor practice allegations. On the merits, the Union argues that the instant checkoff authorizations were executed voluntarily, as opposed to situations where contractual union-security clauses compel the execu- tion of checkoff after a certain period, and thus oper- ated according to their terms independent of the collective-bargaining agreement. Therefore, the Un- ion contends that the hiatus between contracts did not affect the authorizations and hence all revocations had to comport with the procedure outlined therein. In short, the Union would dismiss the complaint in Case 2-CB-4880 on either the merits or the Collyer- Spielberg theory. AP asserts that neither Spielberg nor Collyer is applicable to the instant proceeding since it involves the interpretation and application of basic Federal labor law and not the interpretation of an existing collective-bargaining agreement between the parties. In this latter respect, AP asserts that, since the opera- tive facts occurred during the hiatus when no contract was in force, arbitration was improvidently ordered. Also, it contends that the arbitration did not reach the issues now before the Board. AP argues on the merits, 1114 DECISIONS OF NATIONAL LABOR RELATIONS BOARD that during an hiatus an employee may terminate his checkoff at will without following any particular form of communication to express his intention to revoke. Thus it follows, AP argues, that the arbitrator's award is patently repugnant to basic Board law and the Board should find that the Union violated the Act as alleged; it admitted the 8(a)(1), (2), and (3) allega- tions. C. Dicussion and Conclusion We find merit in the contentions of the General Counsel and the Union that where appropriate herein the Board should defer to the arbitrator's award and dismiss the complaint? And, as to those aspects of this proceeding discussed above where the arbitrator did not reach certain of the matters involved in the alleged unfair labor practices, we find that deferral to the arbitration process is warranted, although we shall retain jurisdiction for the limited purposes described in "The Remedy." In Spielberg, the Board held that, where the arbi- tration proceedings appear to have been fair and reg- ular, all parties have agreed to be bound, and the decision of the arbitrator is not clearly repugnant to the purposes and policies of the Act, even though the Board would not necessarily decide the issue as the arbitrator did, the desirable object of encouraging the voluntary settlement of labor disputes would best be served by our recognition of the arbitrator's award. In the instant case, the parties' collective-bar- gaining agreement, which provides for the "arbitra- tion of all disputes arising out of the application of the" contract, including, of course, article II, check- off, states that the "decision of the arbitrator in any such arbitration shall be final and binding."10 And, although AP initially opposed arbitration of the dis- pute, it abided by the district court order directing arbitration. It is clear, therefore, that all parties have agreed to be bound by the arbitrator's award. The arbitration proceedings appear to have been fair and regular. Thus, prior to the arbitration hearing the Union invited the affected employees to testify and state their positions; all parties were ably repre- sented by counsel who examined and cross-examined various witnesses before the arbitrator; a stenograph- ic record of the proceedings was made; the 102 mem- bers who purportedly revoked their checkoff 9 AP's argument that Judge Palnuen improvidently ordered arbitration of the dispute between the parties is clearly addressed to the improper forum. AP did not appeal Judge Palmien 's decision to the appropriate Federal court of appeals . See United Steelworkers of America v. American Manufacturing Co., 363 U.S. 564, United Steelworkers of America v. Warrior & Gulf Naviga- tion Co, 363 U.S. 574, United Steelworkers of America v. Enterprise Wheel & Car Corp., 363 U.S. 593 (1960) 10 In its brief, the Union asserts that AP has complied with the arbitration award in all respects , but the stipulation fails to reflect this fact. authorizations had their position presented by AP's counsel; and the arbitrator issued a lengthy, well-rea- soned opinion and award. It is clear, furthermore, that in most respects the arbitration proceeding disposed of the issues raised by the unfair labor practice allega- tions. Finally, we need not pass on the issue whether the notices were effective to revoke the 102 AP em- ployees' checkoff authorizations during the hiatus be- tween contracts, because we find that the arbitrator's award is not clearly repugnant to the purposes and policies of the Act. Accordingly, except as noted be- low, we shall defer to the arbitrator's award herein and dismiss the complaint." The record reveals that the Union withdrew from arbitration the type 5 revocations, which included Charging Party Achatz, and that AP resumed check- ing off Charging Party Cunniff's dues in September 1970 despite his allegedly timely, effective revocation in February 1970. As noted, the arbitrator found that Charging Party Yancey ineffectively revoked his dues during the hiatus, thus disposing of the issue in Case 2-CA-12159-3, and one aspect of the case in 2-CB- 4880. However, it would appear that as to Cunniff 12 and Achatz the arbitration award has not resolved the issues in Cases 2-12159-2 and 2-CA-12159, nor with respect to Achatz, Cunniff, and other similarly situ- ated employees, certain aspects of Case 2-CB-4880. Recently, in Norfolk, Portsmouth Wholesale Beer Distributors Association, 196 NLRB No. 165, where the employer ceased checking off employees' union dues upon the expiration of the contract because, it alleged, to continue to do so would violate Section 302 of the Act, the Board said: The presence of the [checkoff authorization] clause arguably gives the Union the right to ex- pect the Respondents to carry out this service. However, the clause requires deductions only if pursuant to individual authorizations, and whether the authorizations were valid will de- termine in this case the ultimate question of whether Respondents did or did not violate the agreement by refusing to make the deductions. That is clearly a contract issue fully capable of resolution under the contractual procedures for resolving such disputes. Accordingly, and in reliance on Collyer, the Board there deferred the matter to the agreed-upon griev- ance procedure. The same considerations are present in the in- stant case. Thus the issue whether the Union wrong- s 1 See N L R B v. Hershey Chocolate Corporation, 297 F.2d 286, 293-294 (CA. 3, 1961). i2 The arbitrator found that type 2 revocations were ineffective , and the General Counsel asserts that Cunniff's revocation was analogous to those of type 2. However, the arbitrator did not specifically pass on the issue with respect to Cunniff. THE ASSOCIATED PRESS 1115 fully demanded that AP check off and remit Achatz' and Cunniff's dues essentially involves a contractual controversy , as does the issue whether AP violated the Act by complying with the Union 's request as to them. Accordingly , and since we believe it to be consistent with the Federal labor policy to promote peaceful resolutions of contractual controversies through methods agreed on by the parties , we shall not decide the merits in Cases 2-CA-12159 and 2-CA-12159-2, nor those aspects of Case 2-CB-4880 dealing with employees Achatz and Cunniff, and certain other sim- ilarly situated employees , but rather shall defer the matter to be resolved in accordance with the agreed- upon grievance-arbitration procedure. over this dispute solely for the purpose of entertaining an appropriate and timely motion for further consid- eration upon a proper showing that either (a) the dis- pute has not, with reasonable promptness after the issuance of the Decision herein , either been resolved by amicable settlement in the grievance procedure or submitted promptly to arbitration, or (b) the griev- ance or arbitration procedures have not been fair and regular or have reached a result which is repugnant to the Act. With respect to the unfair labor practice alle- gations which were, in effect, resolved by the arbitra- tion award , the complaint shall be dismissed. CONCLUSIONS OF LAW IV. THE REMEDY Without prejudice to any party and without de- ciding the merits of the controversy , with respect to certain unfair labor practice allegations described above in section III, c , we shall order that the com- plaint herein be dismissed, but we shall retain jurisdic- tion for a limited purpose . We are aware that the parties herein have not resolved these aspects of their dispute by the contractual grievance and arbitration procedure and that , therefore , we cannot inquire whether resolution of the dispute will comport with the standards set forth in Spielberg Manufacturing Company, as we did with the remaining unfair labor practice allegations . In order to eliminate the risk of prejudice to any party , we shall retain jurisdiction 1. The Associated Press is a person engaged in commerce within the meaning of Section 2(6) and (7) of the Act. 2. Wire Service Guild, Local 222, Newspaper Guild, AFL-CIO-CLC, is a labor organization within the meaning of Section 2(5) of the Act. ORDER Pursuant to Section 10(c) of the National Labor Relations Act, as amended, the National Labor Rela- tions Board orders that the complaint herein be, and it hereby is, dismissed; provided, however, that: Jurisdiction of this proceeding is hereby retained for the limited purposes , and only in those cases, indi- cated in that portion of our Decision and Order enti- tled "The Remedy." Copy with citationCopy as parenthetical citation