The Cleveland Trust Co.Download PDFNational Labor Relations Board - Board DecisionsFeb 19, 1953102 N.L.R.B. 1497 (N.L.R.B. 1953) Copy Citation THE CLEVELAND TRUST COMPANY 1497 Although both the driver-salesmen and the transport drivers operate motor vehicles, the driver-salesmen are primarily salesmen , with in- terests and conditions of work considerably different from those of the transport drivers who are over-the-road truckers without addi- tional duties. As the latter clearly are over-the-road truckers, and' because one of the parties objects to their inclusion with other cate- gories of employees, we shall, in accordance with established Board policy, exclude them from the driver-salesman unit.2 Instead, we shall establish them in a separate bargaining unit. It is clear that the Employer's sales organization operates as an integrated whole and that the interests and conditions of work of the outlying driver-salesmen are identical with those of the salesmen driv- ing routes in the Tampa area. In these circumstances, we do not believe that the distances separating the Tampa area routes from the others warrant a separate unit of the Tampa salesmen.3 As the sales- men unit requested by the Petitioner is but a segment of a group of employees having the same interests, we find that it is inappropriate for collective bargaining purposes. We find, therefore, that any unit composed of driver-salesmen must include all such employees of the Employer, wherever their sales routes are situated Accordingly, we find that the following employees of the Employer's bakery operation at Tampa, Florida, excluding from each group all other employees and all supervisors as defined in the Act, constitute units appropriate for collective bargaining within the meaning of Section 9 (b) of the Act : 5 (1) All transport drivers. (2) All driver-salesmen including those assigned routes outside the Tampa area. [Text of Direction of Elections omitted from publication in this volume.] Chesty Foods, Inc., 98 NLRB 1185, and cases cited therein. 5 American Bakeries Company , 74 NLRB 399. 4 National Brands, Inc., 81 NLRB 1163. At the hearing the Petitioner declared that it desired to appear on the ballot no matter what unit or units the Board should find appropriate . Its showing of interest was suf- ficient to justify an election in the groups herein found appropriate. THE CLEVELAND TRUST COMPANY and CONGRESS OF INDUSTRIAL ORaANI- zATIONS. Case No. 8-CA-4.68. February 19, 1953. Decision and Order On May 13, 1952, Trial Examiner Henry J. Kent issued his Inter- mediate Report in the above-entitled proceeding, finding that the Respondent had engaged in and was engaging in certain unfair labor 102 NLRB No. 164. 1498 DECISIONS OF NATIONAL LABOR RELATIONS BOARD practices, and recommending that it cease and desist therefrom and take certain affirmative action, as set forth in the copy of the Inter- mediate Report attached hereto. The Trial Examiner also found that the Respondent had not engaged in certain other unfair labor prac- tices alleged in the complaint and recommended dismissal of the com- plaint with respect to such allegations. Thereafter, the General Coun- sel and the Respondent each filed exceptions to the Intermediate Re- port and supporting briefs. The Respondent's request for oral argument is hereby denied, as the record and the exceptions and briefs, in our opinion, adequately present the issues and the positions of the parties. The Board has reviewed the rulings of the Trial Examiner and finds that no prejudicial error was committed. The rulings are hereby affirmed. The Board has considered the Intermediate Report, the exceptions and briefs, and the entire record in the case, and hereby adopts the findings, conclusions, and recommendations of the Trial Examiner with the following exceptions, additions and modifications :1 1. As found by the Trial Examiner, the Respondent in its letter to its employees of November 21, 1950, announced a wage increase and increased vacation benefits. The Trial Examiner found that the granting of this wage increase did not violate Section 8 (a) (1) of the Act, and failed to make any finding concerning the announcement of vacation benefits. The Respondent urged as reasons for the wage increase the recent raise in income taxes, the threat of a wage freeze, and the inflationary trend in the national economy. However, in view of the fact that the wage increase was announced in a letter to employees indicating the Respondent's opposition to the Union at a time when the Union's organizational campaign had become open and active and about 6 weeks in advance of the regularly scheduled review of wages, we are convinced that the wage increase was intended and calculated to in- fluence the employees to reject the Union as their collective-bargaining representative. Accordingly, we find that such conduct constituted in- terference, restraint, and coercion of the employees in violation of Section 8 (a) (1) of the Act. The Respondent claims that the increased vacation benefits were granted in order to meet the competitive situation in the banking field. However, the record shows that competing banks granted such benefits 1 We note and correct the following minor inaccuracies in the Trial Examiner ' s findings which do not affect the validity of his ultimate conclusions or our concurrence therein : (1) White was informed that Sorger had twice, rather than once , falsified his time report shortly before his discharge on September 25, 1950-once on either the first of August or of September , and again 2 or 3 days before September 25; (2) the reasons announced in the letter of November 21, 1950, from President Gund to the employees of the bank for the general wage increase do not also apply as reasons for the increased vacation benefits ; (3) the National City Bank of Cleveland announced a wage increase effective September 1, 1950, and not effective October 1S, 1950. THE CLEVELAND TRUST COMPANY 1499 between 22 and 27 months earlier. Consequently, under the circum- stances, like the wage increase we believe that the increased vacation benefits were granted to influence the employees to reject the Union. We accordingly find that the granting of the vacation benefits consti- tuted interference, restraint, and coercion in violation of Section 8 (a) (1) of the Act. 2. Although not detailed in the Intermediate Report, we find that the following acts also constituted threats to employees which inter- fered with, restrained, and coerced the employees in violation of Sec- tion 8 (a) (1) of the Act: (a) On about November 20, 1950, Golem, a supervisor, asked employee Kaschak if she was satisfied with her job, and told her that there were "things" going on in the department ; that he heard that she was a member of the Union and was soliciting for the Union; and that he hated to see her hurt herself. (b) On June 11, 1951, Eggert, a supervisor, told employee Studier that she had let him down and was "in the doghouse" with Trust Officer White because she had voted for the Union, and that she was "digging her own grave." 3. The Trial Examiner found that the Respondent unlawfully aided and assisted two antiunion committees to combat the Union, in viola- tion of Section 8 (a) (1) of the Act. For reasons appearing below, we agree. On December 1, 1950, employee Moffitt,2 who had previously decided to organize a committee to oppose the Union, informed Vice-President McClelland that he wished to do something constructive to oppose the Union. Moffitt asked McClelland if he, Moffitt, could form a committee of employees in the bank who had similar views. McClelland re- sponded that it was within the rights of employees to form such a committee, but that management's "hands were tied." On the same day or a day later, Moffitt telephoned Stark, an attorney in the legal department of the bank, and after mentioning his conversation with McClelland with respect to forming a committee to oppose the Union, said that he wanted to speak with Stark to clarify the rights of the committee and to ascertain what the committee might do as active par- ticipants in the organizational fight. Stark told Moffitt that he would rather not discuss the matter on the telephone, but that he would be glad to talk with Moffitt personally. Thereafter, on or about December 4, Moffitt, McClelland, and Stark attended a dinner meeting which had been arranged by Stark and paid for by either him or McClelland. At this meeting, Moffitt asked Vice-President McClelland for the names of any employees whom 2 Contrary tc the Trial Examiner, we find that Moffitt was not a supervisor within the meaning of tht Act at any time here material. 1500 DECISIONS OF NATIONAL LABOR RELATIONS BOARD McClelland knew, or suspected, would be opposed to the Union, so that Moffitt might enlist their aid in forming a committee. McClelland gave Moffitt the names of 4 employees, and Stark gave the names of 3, including that of employee Arnholt. Stark cautioned Moffitt that he could not solicit or organize during working hours. Shortly after this dinner meeting, Moffitt telephoned all the em- ployees who had been suggested by McClelland and Stark,3 and formed a committee. The first meeting of this committee was held the third week in December, when the committee decided the members would gather facts and present their antiunion views to other em- ployees at the bank by telephone or word of mouth. At a second meeting of the committee in February 1951, the com- mittee concluded that it should attempt to have its views printed- at this stage of the campaign, however, no member of the committee knew how this could be accomplished. Subsequently, Moffitt drafted a letter addressed to the employees, reflecting the antiunion views of the committee. During the first week of May 1951, Moffitt visited Stark in his office, stated that the committee desired to have its letter printed, and asked whether the committee could expect the assistance of management in financing or preparing such a letter for distribution to bank employ- ees. Stark replied in the affirmative, adding that the request for such assistance would have to be embodied in a letter from the employee committee to President Gund. At this time, Stark also suggested certain changes in the letter which Moffitt had drafted for circulation to employees of the bank. Moffitt discussed these changes with com- mittee members, revised the letter in accordance with Stark' s sugges- tions, and had the letter signed by committee members. Two days later he presented the final draft of the letter, dated May 9, 1951, to Stark in his office, with a request that it be processed and distributed to the employees at the bank. As previously arranged, Stark then had Moffitt sign a letter embodying the committee's request of Presi- dent Gund to print and mail to the employees copies of the committee's letter at no expense to the committee.4 The Respondent, accordingly, mailed copies of the committee's letter to the homes of the bank employees. Subsequently a second letter to the employees of the bank was drafted by Moffitt and two other committee members. This letter, dated May 18,1951, was signed by Moffitt for the employee committee, 3 About a week before Moffitt's telephone call to Arnholt , Stark told Arnholt that he, Stark , was informed that Arnholt was opposed to the Union . Arnholt responded that he was, and that he wished something could be done about the Union. Stark then said that quite a few employees felt that way, and told Arnholt that perhaps he would receive a telephone call. * Moffitt testified , and we find , that he had nothing to do with the preparation of the letter from the employee committee to President Gund. THE CLEVELAND TRUST COMPANY 1501 and given to Stark. As in the case of the first committee letter, Moffitt was obliged to sign a letter to President Gund asking that the second letter be copied and mailed to the employees of the bank. The second employee committee letter was also sent by the Respondent to the homes of the bank employees. Both of these letters were printed on plain paper without any letterhead, giving the appearance of having been prepared and mailed by the committee itself. A third letter, addressed to the employees reflecting antiunion senti- ments , was prepared by employee Wolverton and signed by employees in his department. In the same manner as above, the Respondent mailed copies of this letter to all employees. The Respondent spent $468 for reproducing, addressing, and mail- ing these 3 letters to approximately 1,900 employees. It is clear that the Respondent directly assisted and participated in the campaign of the employee committees 5 to defeat the Union in the impending election. The Respondent gave Moffitt the names of anti- union employees who would serve on the committee, suggested changes in the final draft of his letter to the employees, and, by paying for the distribution of the 3 letters, in effect made a financial contribution to both committees. That the Respondent had the right to voice its own noncoercive views, perhaps similar to those contained in the committee letters, did not privilege it to make common cause with and assist the antiunion committees in the manner described above. Concerted activity either for or against a union is a protected right of employees. We regard the subsidization of such activity-even at the request of the employee participants-to be an unwarranted intrusion upon the right of employees freely to chose their own collective-bargaining representative.6 Order Upon the entire record in this case and pursuant to Section 10 (c) of the National Labor Relations Act, as amended, the National Labor Relations Board, hereby orders that the Respondent, The Cleveland Trust Company, Cleveland, Ohio, and its officers, agents, successors, and assigns, shall: d Since these committees did not exist in whole or in part for the purpose of collective bargaining , we find that they were not labor organizations within the meaning of the Act. 6 See The Timken-Detroit Axle Company, 98 NLRB 790. Chairman Herzog would also base his finding of an unfair labor practice here on the additional ground set forth in the Timken-Detroit case, viz, that by concealing its part in the reproduction and distribution of the committee letters, the Respondent crewed the misleading impression that what was actually company antiunion campaign activity was merely unaided and spontaneous employee sentiment , and denied to employees a fair opportunity to evaluate it. Member Murdock would find, in accord with his dissent in the Timken -Detroit caI :e, that the Respondent 's conduct was protected by Section 8 (c). However, since his dissenting view has been rejected by a majority of the full Board in that case, he deems himself bound by their decision and concurs herein without further expression of dissent. 1502 DECISIONS OF NATIONAL LABOR RELATIONS BOARD 1. Cease and desist from : (a) Granting wage increases and vacation benefits for the purpose of influencing employees with respect to union activity, affiliation, assistance, or designation. (b) Assisting and supporting any employee groups organized to oppose the selection of a collective-bargaining representative. (c) Threatening employees for soliciting or voting for a labor organization. (d) In any other manner interfering with, restraining, or coercing its employees in the exercise of their right to self-organization, to form labor organizations, to join or assist Financial Employees Guild, Local Industrial Union 1757, CIO, or any other labor organization, to bargain collectively through representatives of their own choosing, to engage in concerted activities for the purposes of collective bar- gaining or other mutual aid or protection, or to refrain from any and all such activities, except to the extent that such right may be affected by an agreement requiring membership in a labor organization as a condition of employment, as authorized in Section 8 (a) (3) of the Act. 2. Take the following affirmative action which the Board finds will effectuate the policies of the Act: (a) Post immediately at its main office and at all of its branch offices in Ohio, copies of the notice attached to the Intermediate Report and marked "Appendix A." 7 Copies of said notice, to be fur- nished by the Regional Director for the Eighth Region , shall, after being duly signed by the Respondent's representative, be posted by the Respondent immediately upon receipt thereof and maintained by it for sixty (60) consecutive days in conspicuous places, including all places where notices to employees are customarily posted. Reason- able steps shall be taken by the Respondent to insure that said notices are not altered, defaced, or covered by any other material. (b) Notify the Regional Director for the Eighth Region , in writ- ing, within ten (10) days from the date of this Order, what steps the Respondent has taken to comply herewith. IT IS FURTHER ORDERED that the complaint be, and it hereby is, dis- missed insofar as it alleges that the Respondent discriminatorily dis• charged William Sorger. 7 This notice shall be amended by substituting the words "A Decision and Order " for the words "The Recommendations of a Trial Examiner " in the caption thereof. In the event that this Order is enforced by a decree of a United States Court of Appeals , there shall be substituted for the words "Pursuant to a Decision and Order " the words "Pursuant to a Decree of the United States Court of Appeals , Enforcing an Order." Intermediate Report STATEMENT OF THE CASE Upon charges duly filed by the Congress of Industrial Organizations, herein called the Union, the General Counsel of the National Labor Relations Board, THE CLEVELAND TRUST COMPANY 1503 herein called , respectively , the General Counsel ' and the Board, by the Regional Director for the Eighth Region ( Cleveland , Ohio ), issued an amended complaint dated June 11, 1951, against The Cleveland Trust Company, of Cleveland, Ohio, herein called Respondent , alleging that Respondent had engaged in and was en- gaging in unfair labor practices within the meaning of Section 8 (a) (1) and (3) and Section 2 (6) and (7) of the Labor Management Relations Act, 61 Stat. 136, herein called the Act. Copies of the charges and the complaint together with a notice of hearing were duly served upon Respondent and the Union. With respect to the unfair labor practices, the amended complaint as further amended at the hearing in substance alleges : ( a) Respondent discriminatorily discharged employee William Sorger on or about September 25, 1950, because he joined and assisted the Union and engaged in other concerted activities for the purpose of collective bargaining or other mutual aid or protection ; and (b) Respondent granted wage increases to the employees and increased vacations with pay for the purpose of discouraging membership and activities on behalf of the Union, or its affiliate; that it interrogated employees concerning their union affiliation , activities, and sympathies ; that it sponsored and encouraged the formation of antiunion groups among the employees by contributing financial and other support to such groups regarding the preparation, dissemination, and distribution of antiunion literature drafted by such groups ; that it warned employees to refrain from assisting or becoming members of the Union or its affiliates , or engaging in lawful concerted activities ; and that it advised its officers and supervisors in writing that they might voice opinions and statements derogatory to the Union, even if such statements were false. Before the opening of the hearing , Respondent filed a written motion for a specific bill of particulars regarding the several allegations of the complaint. This motion was granted in part and denied in part by Trial Examiner J. J. Fitzpatrick , to whom it had been referred for consideration and the General Counsel , in substance , complied with Mr . Fitzpatrick 's ruling and filed an amended complaint. Thereafter Respondent duly filed its answer and thereafter a supplemental answer admitting the allegations of the complaint regarding its business op- erations , but generally denying the commission of any unfair labor practices. By way of affirmative defenses the answer in substance averred that Sorger had been discharged for cause, and that it had been forced to grant certain wage benefits to its employees during the Union 's organizational campaign because of economic conditions and similar action earlier taken by competing employers in order to retain Respondent 's working force. Pursuant to notice a hearing was duly held from June 25 to 29, and from July 9 to July 17, 1951 , at Cleveland , Ohio, before the undersigned Trial Examiner. The General Counsel and the Respondent were each represented by counsel and the Union by representatives . Full opportunity to be heard , to examine and cross-examine witnesses , and to introduce evidence bearing on the issues was af- forded to all parties. At the opening of the hearing, the Respondent renewed its prehearing motion for a bill of particulars insofar as it had been denied in part by Trial Examiner Fitzpatrick and also moved for further time in which to prepare its defense. These motions were denied without prejudice to renewal of the motion for fur- ther time to prepare the defense when the General Counsel rested his case-in- chief. When the General Counsel so rested his case on June 29, I granted the Respondent a continuance until July 9, 1951 , for further preparation. 1 This term includes counsel appearing on behalf of the General Counsel. 1504 DECISIONS OF NATIONAL LABOR RELATIONS BOARD At the close of the hearing, I granted a motion by the General Counsel to conform the pleadings to the proof in respect to formal matters and denied Respondent's motion to dismiss the various allegations of the complaint without prejudice pending consideration of the entire record. Thereafter, oral argument was presented by counsel for the Respondent fol- lowing which the parties were granted 20 days in which to file briefs with the undersigned. Following the subsequent granting of an extension of time in which to file briefs, briefs have been duly received from the Respondent and the General Counsel. On August 27, 1951, after the close of the hearing, a stipulation in writing was filed with me together with a motion to correct the record pursuant to the matters set forth in the stipulation. An order is hereby entered to correct the record in accordance with the pro- visions in the said stipulation and the said stipulation has been entered in the exhibit file as Trial Examiner's Exhibit No. 1. Upon the entire record and from observation of the witnesses, I make the following: FINDINGS OF FACT 1. THE BUSINESS OF THE RESPONDENT The Cleveland Trust Company is an Ohio corporation engaged in the banking business in the city of Cleveland and the surrounding area in the northern section of the State of Ohio. Its main banking house and principal office is in Cleveland, Ohio, and it main- tains 56 branch banks in Cleveland, Ohio, and nearby communities in the State of Ohio. It operates the largest branch banking system between New York City and San Francisco, California. It is the largest bank in the State of Ohio, the seventeenth largest commercial bank with the sixth largest amount of savings deposits among all of the banks in the United States, and is a member of the Federal Deposit Insurance Corporation and the Federal Reserve System. The bank's assets are in excess of $1,166,000 and it presently holds deposits of some 700,000 customers amounting to over $1,000,000,000. A substantial amount of the funds on deposit is received by mail from depositors residing outside of the State of Ohio, and it forwards transit items to other banks doing business in States of the United States other than Ohio, amounting to several million dollars annually. It also issues annually letters of credit and traveler's checks in excess of $1,000,000, some of which are payable in foreign currency, and maintains deposit accounts in other banks in States other than the State of Ohio, aggregat- ing several million dollars. The Respondent concedes and the facts found above clearly show that the Respondent is engaged in commerce within the meaning of the Act. II. THE LABOR ORGANIZATIONS INVOLVED Congress of Industrial Organizations and its affiliate Financial Employees Guild, Local Industrial Union 1757, CIO, are labor organizations within the meaning of the Act, admitting to membership employees of the Respondent. III. THE UNFAIR LABOR PRACTICES A. Introductory brief summary of labor relations and factual background: Insofar as the record shows no substantial efforts had been made to organize the Respondent's employees until the fall of 1950. 9 There is no substantial dispute between the parties regarding the general findings made in this section. THE CLEVELAND TRUST COMPANY 1505 On the night of September 21, 1950, a preorganizational meeting was held at a CIO hall in Cleveland, Ohio, between representatives of the Union, William Sorger , the alleged discriminatorily discharged employee, and about 10 other employees of the Respondent. Just before closing time on the afternoon of September 25, 1950, Sorger was discharged by the Respondent for the asserted reason that he had falsified his time record on that day, and that previous thereto he had an unsatisfactory record as an employee. Within a week or two after Sorger's discharge, the Union commenced an open and active organizational campaign among Respondent's employees. During the course of the campaign the Union issued a charter to the Financial Employees Guild, Local Industrial Union 1757, CIO, hereinafter called the Guild. Thereafter, on April 27, 1951, the Guild and the Respondent entered into a consent-election agreement (Case No. 8-RC-1218) approved by the Acting Regional Director of the Board for the Eighth Region. Thereafter, on May 23, 1951, an election was conducted by the Board's agents. The tally of ballots disclosed that there were 1,890 eligible voters on the poll list, that 1,780 ballots were cast 733 in favor of the Union and 1,047 against, and that there were 6 challenged ballots. Following the election, the Union on May 31, 1951, filed objections to the election, but insofar as the record shows no ruling has been made in respect to the conduct of the election and the said representation case has not been consolidated with the instant case for purposes of hearing. B. Findings of Fact 1. The discharge of Sorger William Sorger, called as a witness by the General Counsel, credibly testi- fied without denial during his direct examination that he was first employed by the Respondent in 1925, that for many years last past he has been regularly employed as a stock transfer clerk in the corporate trust department of Respond- ent's bank under the immediate supervision of Trust Officer Haffner, who in turn worked under the direction of Trust Officer Henry White, the so-called operations officer of the department, and Vice-President Henry Pirtle, the bank officer in charge of the entire corporate trust department, and that he, Sorger had never been criticized regarding the quality of his work, but he admitted that on occasions he had been reprimanded by Pirtle or White for tardiness in reporting for work. According to Sorger's further credited and uncontradicted testimony he called on Sam Sponseller, the regional director for the CIO in the Cleveland area, sometime during the month of March 1950 and told Sponseller that he, Sorger, and some of the other employees of the Respondent wanted to organize a union, that a few weeks later Sorger and Alfred Vapenick, a fellow employee also working in the corporate trust department, again met with Sponseller and another union representative to further discuss organizing. That on this occasion the union representatives advised Sorger and Vapenick to select a small group of other employees interested in organizing and to arrange for another meeting between this employee group with the union representatives, that pursuant to this recommendation from the union representatives a meeting was arranged for after work on the night of September 21, 1950, at the CIO office in Cleveland, Ohio, that Sorger, Vapenick and their fellow employees Elmer Bartell, "Dave" Washington, "Mac" Jones, Maloney, Cooper, and 3 or 4 other employees of the Respondent , whose names Sorger was presently unable to recall, met with Spon- seller and other union representatives to discuss tentative plans for organizing 1506 DECISIONS OF NATIONAL LABOR RELATIONS BOARD the Respondent 's employees , and that Sorger and some of the other employees present at the meeting signed application cards for the Union on this occasion! Sorger worked as usual on Friday, September 22, the day after the pre- organizational meeting had been held, but not on the following day, Saturday, because the bank closed on Saturdays. On Monday, September 25, 1950, Sorger was late for work. He did not arrive until 8: 50 a. m. on this morning but signed in on the Respondent's daily time- sheet as arriving at 8: 40. The Respondent required employees to report at 8: 30 a. m. Sorger testified that later on this morning he recalled that he had ridden to work on a later bus than he usually took and therefore believed he arrived about 8: 50 a. m..' and that when he checked out for lunch at noon on this day he erased the 8: 40 entry he had made on the timesheet earlier that morning and wrote in the figures 8: 50 as the actual time he reported for work on that morning.` About a half hour before the end of this workday, Assistant Vice-President Kingsbury, the Respondent's personnel director, called Sorger to Kingsbury's office. Pirtle and White were present in Kingsbury's office when Sorger arrived there. Kingsbury opened the conversation, according to Sorger, by stating in sub- stance to Sorger that it would be better for all concerned if Sorger would seek a job elsewhere and resign because Sorger was apparently dissatisfied with his job and would be happier if he was working elsewhere, whereupon Sorger asserts that he denied being dissatisfied with his job and asked Kings- bury to state the reasons for the latter's position, and that he, Sorger, then requested to be permitted to work for a few months longer to fill out 25 years service after which Sorger would then resign. According to Sorger's further testimony, after this last request was denied, all persons present sat around in comparative silence for the balance of the time spent in Kingsbury' s office, except that one of the Respondent's officials, unidentified by Sorger, asserted that Sorger had "falsified the time records on this same morning" and told Sorger to take time off to look for another job e On the other hand, Kingsbury, Pirtle, and White each testified that there was no substantial break in the conversation during approximately 45 minutes the 4 men were present in Kings- bury's office and said that shortly after Kingsbury and Sorger began the dis- cussion, Pirtle entered into it and related generally complaints voiced concerning Sorger. Kingsbury, Pirtle, and White, in substance, each testified that Pirtle accused Sorger of attempting to bring about White's demotion in 1943, after the latter had been promoted to operations officer in the department , by asserting to Kingsbury that White was incompetent and was disrupting the morale of the 3 Insofar as the record shows , none of the employees who attended this preorganization meeting engaged in any further union activities until after the Union began an open and aggressive organizational campaign 2 or 3 weeks later '+ The record shows that a large wall clock was mounted on a wall in the room which was plainly visible from the place where the timesheets were kept. 5 The employees had been warned a year or two earlier that they must report their time correctly and Sorger had been previously reprimanded for making false entries regarding his time of arrival for work. White testified that several days before September 25, the departmental chief clerk bad informed White that Sorger was again falsely reporting his time and White said that he observed Sorger arrive at 8: 50 a. in on September 25, that Sorger signed in as purportedly arriving at 8 : 40 and later at noon on this day Sorger changed the entry to 8 • 50, where- upon White reported the matter to Kingsbury, the personnel director, and Pirtle and insisted that Sorger be discharged 0 In aduition , Sorger further testified that he had no clear present recollection of all that transpired at this meeting. THE CLEVELAND TRUST COMPANY 1507 employees; that, thereafter Sorger ridiculed White in conversation with other employees ; that Sorger had attempted to make fellow employees dissatisfied and to induce them to quit their employment with the Respondent ; that Sorger, during emergency periods had refused and evaded carrying his fair share of overtime work in the department ; that Sorger had a bad record for tardiness which culminated on that morning in the falsification of the recorded time he reported for work and the later alteration of the time record by Sorger on the same day, absent an explanation to the Respondent of his reason for doing it ; and that after Pirtle had recited the list of complaints regarding Sorger's conduct, he, Pirtle stated that Sorger would not be permitted to work any longer in Pirtle's department, whereupon Kingsbury, then asserted that he. Kingsbury, would not endeavor to arrange a transfer for Sorger to another department and told Sorger to look for another job and tender his resignation A realistic consideration of all of the evidence in the record in conjunction with my observation of the demeanor of the above-mentioned four persons who gave testimony regarding this meeting has convinced me that the versions of it given by Kingsbury, Pirtle, and White, are the more reliable. Sorger was carried on the payroll until October 30, 1950, but was not per- mitted to engage in any more work for the Respondent. As a defense to the General Counsel's contention that Sorger's discharge had been discriminatory, the Respondent asserts that Sorger was discharged for cause and denies having knowledge of Sorger's union activities before the discharge. There is no dispute that Sorger requested Kingsbury, the Respondent's per- sonnel director, to arrange a transfer for Sorger to another department in the bank, soon after White had been promoted to operations officer in the corporate trust department in 1943 after Sorger voiced a complaint to Kingsbury that White was incompetent to carry on the duties of the higher position and would disrupt the morale of the employees in the department. The record shows that Kingsbury related Sorger's complaint regarding White to Vice-President Pirtle and the latter thereafter called White and Sorger into Pirtle's office in an effort to iron out any ill feeling between White and Sorger. From this time on how- ever the personal relations between White and Sorger were never cordial and friendly. Some months later, Kingsbury tentatively arranged a transfer for Sorger to another department, but Sorger refused to accept the transfer for the asserted reason that Sorger believed promotional opportunities in the other department too limited and Sorger continued to work in the corporate trust department until he was discharged in 1950. It is undisputed that Sorger from about 1944 and thereafter frequently voiced objections concerning White's competency as a supervisor and regarding work- ing conditions in the department to fellow employees on numerous occasions, and that Sorger during the late war told certain of his fellow employees that they were foolish to continue working for the bank because jobs in other in- dustries in the area paid higher salaries.? * Employee Phyllis Tekanic, a witness called by the Respondent, credibly testified with- out substantial contradiction that on 2 or 3 occasions in 1950 Borger told her that jobs paying higher wages were available at other plants in Cleveland named by Borger which she could fill and suggested to Tekanic that she ought to apply for one of those jobs. Rose Rothaermel, presently auditor for the Respondent , credibly testified in substance without denial that on numerous occasions during the Second World War he, Rothaermel, heard Borger voice complaints regarding working conditions to other rank-and-file employees and telling them that they were foolish to continue working for the Respondent because they could earn more elswhere , and that he , Rothaermel , at the time advised White to get 1508 DECISIONS OF NATIONAL LABOR RELATIONS BOARD It is also undisputed that Sorger was frequently tardy in reporting for work for several weeks in the fall of 1949 and again in the spring of 1950. Sorger explained that his father had been seriously ill in the fall of 1949 and said that he spent much of his time outside of working hours attending to matters for his father and that he had been careless regarding reporting on time for work. He admitted that Pirtle reprimanded him for being tardy early in November 1949 and, in substance, that Pirtle told Sorger that he, Sorger, was setting a bad example to the younger employees and must arrange to arrive at work on time. Pirtle credibly testified that Sorger was one of the worst offenders regarding tardiness and that soon after he had personally reprimanded Sorger for this delinquency he, Pirtle, drafted a letter on or about November 8, 1949, and required all of the employees in the corporate trust department, including Sorger, to sign it. Among other things, this letter (in evidence) stated : I have requested you in the past to make it a habit of being prompt in attendance in accordance with the office rules. . . . Many of us are prompt in arriving at 8: 30 every morning and work regularly until the closing hour of 5: 00. There are others who make it a practice not to arrive at the appointed time and some of these and others leave before the closing time. This is not fair to those of our associates who observe the office hours. I have spoken to some of them from time to time about their attendance but the practice continues. Upon the continuance of such practice I shall be obliged to arrange for replacement of those who do not cooperate by leaving home early enough to enable them to observe the appointed time of arrival. I do not propose to make an exception in this respect of any employee in the Department. [Emphasis supplied.] s s s t s • s Please let me know that you have read this memorandum by writing your name on the margin. A few months later, namely in March 1950, Sorger admitted that he again was late for work over a period lasting several weeks. He asserted that the reason was due to the fact that his wife was pregnant and confined to a hospital, and that it was necessary for him to prepare breakfast for two minor children and start them off to school before leaving home. Pirtle credibly testified that when he learned of Sorger's tardiness at this time he, Pirtle, called Sorger to Pirtle's office intending to discharge Sorger but relented when Sorger informed Pirtle of the reason for his current tardiness and that Pirtle then urged Sorger to report for work on time as soon as the emergency was over .8 Despite these earlier reprimands or warnings given to Sorger regarding his tardiness, he signed in on the Respondent's daily timesheet as arriving at 8: 40 a. in. on September 25, 1950, although he did not arrive until 8: 50. Sorger later rid of Sorger because Sorger was disrupting morale in the department whereupon White replied, according to Rothaermel, that he, White, was unable to effect Sorger's discharge because Pirtle would not agree to it The record indicates that Pirtle and Sorger had been long-time friends and that the wives of these tao men had also worked together in the bank for many years before marriage and still maintained friendly social relations and that for these reasons Pirtle hesitated to impose major reprisals against Sorger. 8In view of the earlier reprimand administered by Pirtle to Sorger together with the written warning given by Pirtle regarding tardiness a few months earlier, it appears that Sorger used bad judgment in failing to notify Pirtle of the reason for his current tardiness before Pirtle administered another reprimand. THE CLEVELAND TRUST COMPANY 1509 changed the 8: 40 entry to 8: 50 when he checked out for lunch on that same day. White, on this same morning , had noted Sorger's late arrival and checked the timesheets shortly after Sorger signed in and after ascertaining that Serger had misstated the time insisted that Sorger be discharged. As previously found above, Sorger was discharged at the end of this working day for the asserted reasons, among others, that he had sought to bring about the demotion of White, that he had attempted to induce other employees to quit their employment, that he had a bad record for tardiness , and that he had falsified his time record on that same day. Pirtle, Kingsbury, and White, the only management officials or representatives who were concerned with his discharge, each testified in substance that they were the only management officials or representatives involved in Sorger's discharge. They categorically denied having any knowledge regarding any union or con- certed activities among the employees before the discharge was effected. Each of them impressed me as being reasonably trustworthy and reliable witnesses and because their testimony has not been convincingly discredited or impeached I credit their above sworn testimony that they lacked knowledge regarding Sorger's union activities before Sorger was discharged.' In concluding that the record falls to show the Respondent lacked knowledge of Sorger 's union activities before discharging him I have not overlooked other testimony in the record given by bank guards, Cannell and Bartell, each of whom were called as witnesses by the General Counsel , and William Atkinson, a vice president in the loan department of the Respondent's bank , and Nora Cannell ( Cannell 's wife ), the latter two having been called as witnesses by the Respondent. It appeared at the hearing that Cannell had signed a statement on February 5, 1951, for Field Examiner Vincek, in which Cannell purportedly stated in substance that Vice- President Atkinson asked Cannell the day after the first union meeting "How was the meeting last night ?", that Cannell told Atkinson he would find out about it; that on that same day everybody in the bank knew about it and was talking about the meeting and also knew that Sorger or some employee in the corporate trust department was leading the union movement ; that on that same afternoon Cannel! reported back to Atkinson that Sorger was one of the leading advocates for the Union; and that 90 percent of the em- ployees engaged in petty cheating regarding signing in for work and that the supervisors are not concerned regarding such cheating but only objected to any employee earning overtime pay. At the hearing, before being confronted with the above statement , Cannell testified that on one occasion during the fall of 1950 , Atkinson asked him on some date Cannell was unable to fix "How was the meeting last night?" and that this was the only conversation Cannell ever engaged in with Atkinson concerning union activities . Cannell further testified that he was intoxicated on the night Vincek interviewed him, that he has no recol- lection concerning the conversation that ensued between Cannell and Vincek at the interview, and that substantially all of the information appearing in the statement and attributed to Cannell is false. Cannell 's wife, Nora , called to testify by the Respondent also testified that Cannell was intoxicated on the night Vincek interviewed her husband and said that she asked Cannel! not to talk with Vincek on this occasion. Bartell , a witness called by the General Counsel , testified on direct examination that Cannell had asked Bartell about the meeting which had been held on the night of September 21, 1950 , but said that he, Bartell , did not mention the names of any other employees who attended it. On cross-examination Bartell admitted that during an interview by Respondent 's counsel held about 2 weeks before the hearing , he told said counsel that Cannell ' s inquiry regarding a meeting was made the day after a union meeting had been held at either the Hollanden Hotel or Carter Hotel during the latter part of October or early in November 1950 . A few days later , Bartell informed the Respondent's counsel that he had been mistaken about the date because he had ascertained after reading a statement given by Bartell to Board 's field examiner on February 1, 1951, he, Bartell , had fixed the date of Cannell 's inquiry regarding a meeting as of September 22, 1950. Atkinson, when called to testify by the Respondent , categorically denied that he had ever mentioned or discussed union activities with Cannell except for one occasion after the 250983-vol . 102-53-96 1510 DECISIONS OF NATIONAL LABOR RELATIONS BOARD C. Interference , restraint , and coercion The complaint alleges in substance and the answer denies that the Respondent interfered with the organizational rights of employees during an organization campaign , by granting wage increases to its employees for the purpose of dis- couraging membership in the Union, that it thereafter aided and assisted anti- union employee groups to combat the efforts of the union adherents regarding the selection of a bargaining represenative, and that it threatened and warned employees to refrain from assisting or joining the Union. There is no dispute that the Union began an intensive drive for membership soon after Sorger had been discharged on September 25. On numerous occasions the Union circulated literature by mail and otherwise to the employees stating claimed benefits obtainable by organization and also held numerous open organi- zational meetings for the Respondent's employees at various places in the city of Cleveland and up to and after a consent election was held on May 23, 1951. Dur- ing the same period, the Respondent issued many written statements to the employees asserting that this union was too radical to properly represent the Respondent's employees. The first two of the open organizational meetings were held on or about the nights of October 19 and November 2, 1950, at the Hollenden Hotel and the Carter Hotel at Cleveland, Ohio, respectively. These meetings were attended by many of the employees. Thereafter on November 21, 1950, George Gund, Respondent's president, issued a general letter to all of the Respondent's employees which stated that "outsiders" were attempting to organize the employees and that Sponseller and Davies, the organizers in charge of the campaign, had no previous experience or knowledge of the banking business and therefore were not qualified to represent banking employees. In brief summary, the letter (a copy of which is in evidence) among other things states : Our employees have a right to join a Union and to try to convince others to join so long as the union campaign is carried on during non-working time of both the person doing the soliciting and the person being solicited. Union had held an open and publicly announced meeting for the employees when Atkinson merely asked Cannell how the meeting came out last night. Atkinson further testified that he first learned of union activities at the bank on October 2, 1950 , when one, Trenkamp, a customer , told Atkinson that a union was organizing the bank employees From their demeanor on the witness stand at the hearing, I concluded that Atkinson, Cannell , and the latter 's wife were reasonably trustworthy and reliable witnesses , whereas Bartell , appeared to he vague and uncertain while giving his testimony . Accordingly, I credit the testimony of the two Cannells and find that Cannell was to some extent under the influence of intoxicating liquor and that his mind was muddled when he gave his statement , thus casting doubt upon the reliability and accuracy of the matters contained in this statement . Therefore , I will deny the formal admission of the statement in evidence for the purpose of impeaching Cannell's testimony at the hearing. The Respondent asserts that Vincek deliberately induced Cannell , an intoxicated person, to sign a false statement . I do not agree with this contention . Cannell testified at the hearing that he does not consider himself drunk if he can walk about without staggering and is able to carry on a conversation . He asserted , however, that his mind was muddled and that he could not think clearly at the time of the interview by Vincek and testified that he has no present recollection of what he may have said to Vincek during the inter- view. It was the first occasion that Vincek had ever talked with Cannel and Vincek may well have believed Cannell to be an agreeable, garrulous , and an unduly voluble conver- sationalist rather than a person too intoxicated to comprehend the purport of his remarks. Under the circumstances , I am of the opinion that Vineek is not open to censure for taking the statement from Cannell which the latter signed voluntarily and without objection. THE CLEVELAND TRUST COMPANY 1511 They also have an equal right to refuse to join the Union and to convince others that they should not join. If they have joined they have a right to withdraw. An antiunion campaign must also be limited to non-working time. We [management representatives] cannot threaten or intimidate em- ployees in the making of their choice. Nor can we promise any economic benefits for opposing the Union. This letter also instructed management representatives to refrain from interro- gating employees regarding union activities and specifically instructed manage- ment representatives not to ask any employee : 1. If he has joined a Union. 2. If he knows who has joined. 3. If he has attended Union meetings 4. If he knows who has attended a meeting and what happened. The letter also called attention to certain benefits presently enjoyed by the employees: such as group life and accident insurance carried without cost to the employees and the pension plan for employees which had been in effect for many years. The letter then announced that a general wage increase would be presently granted to the employees as of November 15, 1950, rather than delay them until January 1, 195120 and that employees with over 19 years' tenure would receive a 3 weeks' annual vacation instead of the 2 weeks' vacation heretofore granted them, because of the recent increase in the cost of living, the increase in the Federal income-tax rates imposed on all persons, and the possibility of a threat- ened wage freeze in the immediate future." 2. The second wage increase given to the employees on April 1, 1951 The Union carried on an intensive and active campaign during the fall and winter of 1950 and also the spring of 1951. On March 16, 1951, the Union filed a petition for certification of representatives. Thereafter on April 1, 1951, the Respondent granted a second general increase to its rank-and-file employees. The explanation regarding the reason for the second increase is not convincing. Kingsbury merely testified in substances that although Gund's announcement of the November 15 increases expressly stated that the said increase was an advance payment of the usual January wage in- crease, given to the employees, the employees seemingly expected to receive m The Respondent, according to the letter, additionally stated that the Respondent had established a policy of granting general wage increases. in January and July of each year and also of reviewing salaries of lower paid employees in April and October of each year. The record shows that the latter increases mentioned above only affected 15 or 20 percent of the employees. 11 Kingsbury, the Respondent's personnel director, testified credibly without contradiction that during the late summer or early fall of 1950, he had made a wage survey in the Cleveland area and pursuant to this survey Kingsbury ascertained that the National City Bank of Cleveland, one of the Respondent's principal competitors, had announced a wage Increase for its employees effective on October 15, or 1 month before the Respondent's November 15, 1950, increase was granted, that one of the other competing banks in Cleveland was then considering granting a cost-of-living wage increase to its employees, that the turnover of employees of the Respondent's bank was rapidly increasing in the fall of 1950, that the 2 largest bank competitors of the Respondent had previously granted 3 weeks' vacation with pay to employees with long tenure, and that for these reasons Kingsbury recommended the early granting of a general wage increase together with 3 weeks' vacation with pay to all employees with over 19 years' service and that on or about October 15, 1950, President Gund told Kingsbury that he, Gund, had recommended advancing the date of the next general wage increase and a 3-week vacation to employees with over 19 years tenure. 1512 DECISIONS OF NATIONAL LABOR RELATIONS BOARD another general increase in January and that the Respondent thereafter decided to give them another general cost-of-living increase on April 1, 1951, and advance the date of the increase that normally would be made on July 1, 1951, to bring their current salaries within the limit of the 10-percent increase permitted under the Wage Stabilization provisions of the Federal Government. On April 27, 1951 , the Respondent entered into a consent-election agreement with the Union for a bargaining unit consisting of all employees of the Company at its main and branch offices including elevator operators , messengers , secre- taries, and janitorial employees , but excluding in substance all management rep- resentatives , professional employees , guards, and other supervisors as defined in the Act. D. Assistance rendered to so-called employee committees 1. The so-called Moffitt Committee The record indicates without dispute that a few days after the Respondent distributed its November 21, 1950, letter criticizing outsiders for attempting to. organize the employees, Wayne Moffitt then chief clerk at the Detroit 117th Street branch, decided to organize a committee to combat the efforts of the Union to organize the employees.12 Moffitt went to Vice-President McClelland, the vice president in charge of all the Respondent's branch bank operations, under whom Moffitt worked, and asked McClelland if the latter believed Moffitt could engage in such activities. McClelland told Moffitt that he, McClelland, saw no reason why the employees could not engage in such activities but that management's "hands were tied." A few days later Moffitt made another call upon McClelland and asked the latter to give Moffitt the names of any employees McClelland believed might be opposed to the union organization and that on this occasion McClelland named employees Elmer Sacha , Roland Duncan , James Givens, and Ellsworth Penty, all of whom were employed at one of the various branch banks operated by the Respondent , as employees believed by McClelland to be opposed to the Union. At or about this same time Moffitt also had a conversation on the telephone with Hawley Stark, one of the house counsel for the Respondent in the legal department at the bank. According to Moffitt's credited and undenied testimony, Moffitt informed Stark that he, Moffitt, had been talking to McClelland regarding the formation of a committee to combat the Union and asked Stark to advise Moffit regarding the matter. Stark, at the time stated he did not wish to discuss the matter on the telephone. As a result of these conversations between Moffitt, McClelland, and Stark, Moffitt was invited to dine with McClelland and Stark at a restaurant in Cleve- land one night in December 1950. At the dinner a general discussion ensued between the three men concerning Moffitt's desire to organize an antiunion committee. The record fails to show the details of the conversation between the three men on this occasion, but according to Moffitt, Stark, at the dinner, informed Moffitt that he, Stark, believed that employees Harry Arnholt and Gorham Townley, both employees at the main banking office of the Respondent, were also employees who had expressed antiunion antipathies. A short time after this dinner meeting, Moffit telephoned the several employees (whose names had been furnished to Moffitt by either McClelland or Stark) at their homes after work and arranged for the group to meet together for dinner >, Moffitt was responsible for all bookkeeping , clearance , and teller work at the branch and when any special emergency work was required it was Moffitt's duty to pick out and assign 1 of the 13 or 14 men under his supervision to the emergency job. THE CLEVELAND TRUST COMPANY 1513 one night in December 1950, at a downtown restaurant in Cleveland. Sub- stantially all of the men invited by Moffitt to attend this dinner attended and according to Moffitt an informal discussion regarding further steps the group might take to oppose the Union were discussed but no concrete plan was formulated. The same group, or committee, again met together for lunch one day in February 1951 at Quad Hall in Cleveland 18 As this luncheon was held on a working day the discussion regarding their future plans, according to Moffitt, -was brief and it was only determined that they should draw up some form of written protest attacking union organization at a future date. After this February luncheon meeting the so-called committee apparently continued to exist in a more or less moribund state until about May 1, 1951, for the record fails to show any substantial activities upon the part of Moffitt or other members of the committee until after the Respondent and the Union entered into a consent-election agreement on April 27, 1951, for an election to be conducted by the Board on May 23, 1951. After the election agreement was signed, the Respondent by letter dated April 27, 1951, and addressed to all employees, in substance, notified the employees that a secret election would be conducted under the auspices of the Board and that no person could ascertain how any employee voted. Among other things this letter stated: You have a right to join the Financial Employees Guild and an equal right to refuse to join it. You have the right to vote for it and an equal right to vote against it. This is a most important election. You should, therefore, weigh all of the facts carefully before reaching your decision. Whatever your decision-be sure to vote! At or about the same time that the Respondent's letter regarding the election was distributed, Moffitt and Sacha on behalf of the committee each drafted letters discussing the problem of representation. The two men thereafter met informally with the various members of the so-called Moffitt committee group and discussed suggestions regarding further arguments that should be in- cluded in a statement to be released by the committee. Thereafter Moffitt formulated a revised draft to serve as the committee's expressed policy regard- ing the Union as a bargaining representative. On some day during the first week of May, Moffitt called upon Stark at the latter's office and submitted the committee's proposed draft concerning repre- sentation and objections to the Union as bargaining representative to Stark. After reading the draft, Stark suggested to Moffitt that certain deletions be made and Moffitt thereafter redrafted the committee's proposed release and submitted it to the various committee members for signature before work began in the morning, during employees' lunch hours, or after business hours in the various departments wherein the committee members worked. This letter" dated May 9, 1951 (in evidence) was signed by 21 members of the so-called Moffitt committee. After obtaining the signatures, Moffitt handed the letter to Stark with a re- quest that the Respondent have sufficient copies made for all of the employees in the bargaining unit and that the Respondent, also at its expense, mail copies u On January 15, 1951, Moffitt was transferred from his chief clerk job and assigned to take charge of a training school established to instruct new inexperienced employees in the clerical work required by the Respondent . The record is not clear whether or not he has continued to be a supervisory employee as definied in the Act. u Attached hereto as appendix B. 1514 DECISIONS OF NATIONAL LABOR RELATIONS BOARD of the letter to all of the said employees . Following Moffitt's above request to Stark that the "committee 's" letter be sent out by the Respondent, Stark in- formed Moffitt that he believed the Respondent would be willing to undertake this expense and handed Moffitt a copy of the letter 15 for Moffitt's signature. Copies of the said letter were thereafter caused to be made by the Respondent and mailed to all of the employees in the proposed bargaining unit. Thereafter, on May 18, 1951, Moffitt, as chairman of the so -called committee drafted -a second letter ( in evidence ) presenting further purported arguments why the committee believed the employees should vote against the Union at the election and he also handed this letter to Stark . After reading the letter Stark handed Moffitt another letter prepared by the Respondent for the signature of Moffitt similar in context to the letter dated May 10, 1951, set forth above, requesting the Re- spondent to circulate copies of the committee 's second antiunion letter to the employees . Thereafter sufficient copies of the second letter were caused to be made by the Respondent who again caused said copies to be mailed to each of the employees in the bargaining unit .16 2. The so-called Wolverton Committee John P. Wolverton, a witness called by the General Counsel , credibly testified without contradiction that he had been employed in the Respondent 's real estate loan department for about 18 years, under the top supervision of Harry Temple- ton, the vice president of the department . He further credibly testified in sub- stance without contradiction that he was opposed to the union organization among the employees and wanted to do something about it, and that he went into work early one morning in the latter part of April 1951 to talk with Vice-President Templeton regarding the matter . He told Templeton he wished to do something to convince the employees that they should vote against the Union , whereupon, according to Wolverton, Templeton replied: "Before you do anything remember this : management has nothing to do with this." Nothing concrete developed from this conversation because at the time he, Wolverton, had no definite plan in mind. Wolverton further testified that 2 or 3 days later he told Templeton that he, Wolverton, expected to draft something in writing critical of the Union's attempt to organize and represent the employees and that on this occasion Templeton replied, "Well, o. k.; be sure you are right before you go ahead." According to Wolverton's further testimony he thereafter spent considerable time after work several days drafting and revising a letter to be presented to the employees in the real estate loan department for their approval . Before submitting it to the employees he called upon Templeton at the latter 's office and handed the letter to Templeton to read , but the record failed to show what Templeton 's reaction was regarding the matters set forth therein . Thereafter, according to Wolverton, lie presented the letter 17 to fellow employees in the department requesting them to read it and sign it if they wished to do so. Forty-one of the employees in the department signed it. After the letter had been signed , Wolverton took it into Templeton' s office and handed Templeton the letter and then asked Templeton what he, Wolverton, had better do with it, whereupon Templeton in substance told Wolverton to discuss the matter with Mr. Stark. Wolverton thereupon went to Stark's 15 Attached hereto as appendix C 10 The above findings are in the main based upon the credited and undented testimony of Moffitt and the stipulation entered into by the parties on the record that the Respondent in substance caused copies of all of the so-called "Committees" letters to be prepared and mailed to the homes of all employees in the unit at a cost, including cost of postage, of $4,6824 17 Attached hereto as appendix D. THE CLEVELAND TRUST COMPANY 1515 office and presented the letter to Stark requesting the latter to read it. Accord- ing to Wolverton, Stark said, "I am busy ; when I get time I will," whereupon Wolverton left Stark's office. Three or 4 days later, according to Wolverton, Stark called Wolverton on the telephone and requested Wolverton to come to Stark's office. Upon arriving in Stark's office, Stark said, "About this letter you have written, can we use it? Can we circularize it among employees?" Whereupon Wolverton replied that the letter itself requested that it be cir- cularized among the other employees and Stark then said, "I think that we will use it. Is that all right?" Whereupon Wolverton replied in substance that is what the employees who signed the letter desired. Following this colloquy Stark asserted, "We would want something else from you" and then handed Wolverton a letter dated May 15, 1951, addressed to Respondent's President, Gund, for Wolverton to sign which reads as follows : Mr. George Gund, President The Cleveland Trust Company Cleveland, Ohio Dear Mr. Gund : Some of the employees in the Real Estate Loan Department from time to time have been discussing the union question and what the May 23rd elec- tion means to them. We have decided that we want all our fellow employ- ees to know just how we feel about this very vital question. Several of us have prepared a memorandum and circulated the same among the employees of the Real Estate Loan Department, and Appraisal Depart- ment and the Escrow Department, which memorandum has been signed by many of us. It is our desire to have copies of this memorandum made and circulated among the employees of the bank. None of the signers of this memorandum has the funds necessary to have such copies made and mailed to the employees. None of the signers of this memorandum wants to have any part in a so-called Company Union or to be a representative of all or any part of the employees of the Bank for collective bargaining, or for any other purpose. We therefore ask that the Bank, at no expense to us, cause copies of this letter to be made and mailed to the employees of the bank. Very truly yours EMPLOYEES OF TIIE REAL ESTATE LOAN APPRAISAL AND ESCROW DEPARTMENTS. By : (S) John W. Wolverton Myrtle B. Ball L. L. Pittent Wolverton signed the letter on behalf of the employees in his department who had signed his letter. Thereafter Respondent caused sufficient copies of the said letter prepared by Wolverton to be printed and thereafter mailed copies of said letter to all of the employees in the bargaining unit at Respondent's expense." E. Other alleged acts constituting interference, restraint, and coercion Evidence was adduced by the General Counsel for the purpose of showing that several minor supervisors of the Respondent interrogated employees con- cerning union activities or in one instance a minor supervisor permitted an "The above findings in this section are based upon the credited and undenied testimony of Wolverton. 1516 DECISIONS OF ' NATIONAL LABOR RELATIONS BOARD antiunion employee to make a speech derogatory of the Union to employees working in her unit during working hours. When it is considered there are approximately 200 supervisory employees with various degrees of authority employed by the Respondent in conjunction with the fact that the Respondent's president had stated in several letters issued to the employees generally that they were free to engage in union activities outside of working time and to join and vote either for or against the Union, I do not feel it necessary to consider these incidents in detail because at most they are isolated incidents and conse- quently any adverse finding if made would be merely cumulative.19 F. The issues and conclusions Upon the basis of the foregoing facts and the entire record, the General Counsel in effect contends that: (1) William Sorger was discharged on September 25, 1950, because he joined and assisted the Union; (2) or, in the alternative, be- cause Sorger engaged in concerted activities with the other employees for the purpose of collective bargaining and other mutual aid and protection thereby discouraging membership in labor organizations; (3) the Respondent granted general wage increases to its employees on November 15, 1950, and thereafter on April 1, 1951, for the purposes of influencing employees to reject the Union as their collective-bargaining representative; and (4) Respondent illegally aided and assisted antiunion employee committees to combat the efforts of other employees in connection with the selection of a bargaining representative. Regarding the General Council's first contention, the Respondent asserts that it was without knowledge concerning any union activities on the part of Sorger or other employees before discharging Sorger and as a further defense asserts that Sorger was discharged for lawful cause. Since Sorger was discharged 4 days after the first preorganization meeting held by the Union, a suspicion is aroused that the Respondent in some manner learned of Sorger's leading part in bringing about this meeting, but the record fails to show convincingly that the preorganizational activities were openly engaged in and that it was not until a week or two later that the Union's drive to organize the employees was openly and aggressively started. Furthermore (insofar as the record shows), the three Respondent's repre- sentatives involved in Sorger's discharge were the only employer representatives concerned with Sorger's discharge. They each categorically denied having any knowledge regarding any union activities before the discharge. They further asserted that such purported activities had no bearing upon Sorger's discharge. The testimony of these witnesses was not convincingly discredited or impeached at the hearing, and each of them impressed me as being trustworthy witnesses. Accordingly, their sworn testimony in this respect has been credited. Therefore I find that the first contention of the General Counsel has not been sustained by substantial and convincing proof. In respect to the General Counsel's second contention, namely, that Sorger was discharged for engaging in protected concerted activities, I also am constrained to find that this contentiou lacks substantial merit. It is true that Sorger for many years had openly criticized working conditions at the bank but the record fails to show that he was ever reprimanded or visited with reprisals because he voiced such complaints. It is also true that the personal relations between Sorger and White, the operations' officer in the department, had been strained for many 1 The record fully discloses that there was considerable activity engaged in by union employees as well as nonunion employees during working time and that no employee was visited with reprisals for engaging in such activities. THE CLEVELAND TRUST COMPANY 1517 years, that Sorger for a long period of time had built up a bad record for tardiness and that Sorger on occasions had advised fellow employees in the department to quit their employment with the Respondent and seek jobs with other employers. Sorger had been warned about his poor attendance record about a year before he was discharged and again reprimanded for tardiness about 6 months before he was discharged or long before any union activities were initiated in the bank. Despite these reprimands and warnings given Sorger regarding his tardiness record, he falsified his time record on the morning of the day he was discharged and the Respondent asserts that he was discharged primarily because of his falsification of his time record, his seeking to induce other employees to quit their employment, and the dissension that existed between Sorger and White, his supervisor. Pirtle, vice president of the department, testified in substance that he paid little attention to complaints voiced by employees concerning working conditions because such complaints are common in most places of employment. Therefore, in my opinion the Office Towel Supply Company case, 97 NLRB 449, cited by the General Counsel as authority for a finding that Sorger's discharge was based upon protected concerted activities is not controlling. The reasons advanced by the Respondent, namely, the strained relations existing over many years between Sorger and White, Sorger's suggestions to other employees that they quit their employment, and Sorger's bad record for tardiness coupled with his tardiness on the morning of discharge accompanied as it was by a false entry on the timesheet seems Justification for Sorger's discharge. In respect to the General Counsel's third contention regarding the wage in- creases, the Respondent argued that the first increase given to the employees on November 15, 1950, was due to the fact that during that year there had been a substantial increase in the cost of living, that Federal income taxes had just recently been increased, that there were imminent rumors of the imposition of a wage freeze, and that the Respondent had started to make an economic survey of the wage conditions in the Cleveland area during the late summer of 1950 because of a sudden turnover in employment among its employees. Respondent further ,contended that as a result of this survey and after ascertaining that other employers had been raising wages in the area, it determined to advance the date of its next general increase which customarily would not have not have occurred until January 1, 1951, to November 15, 1950. Under the circumstances, namely, the inflationary trend in the national economy, the recent raise in the income-tax rates, and the threat of a wage freeze it is concluded and found that the Respond- ent did not, by the granting of this increase, violate the Act. In respect to the April 1, 1951, increase, however, the undersigned is con- strained to find that this increase was granted in an effort to influence the employees to vote against the Union which had filed a petition for representation about 2 weeks earlier. No satisfactory explanation for advancing the time of this increase rather than to wait until another increase was due on July 1, 1951, was offered. At most, Vice-President Kingsbury testified that the employees were hoping and expecting to receive another increase on January 1 of this year, despite the fact that the Respondent had clearly stated that the November 15, 1950, increase was merely an advanced increase that orinarily would not have been received until January 1, 1951. In view of the Respondent's fixed policy to grant two general increases a year, namely, on January 1 and July 30, it seems unlikely that it would have also advanced the time of payment of another increase if it had not been owing to the filing of a representation petition by the Union. When it is also considered that a few weeks later or shortly after May 1, 1951, the Respondent aided and assisted dissident antiunion employee com- mittees to actively combat the efforts of union adherents to designate the Union 1518 DECISIONS OF NATIONAL LABOR RELATIONS BOARD as their collective-bargaining agent a fair inference arises that the April 1, 1951, increase was in fact granted to influence the employees to reject the Union as their collective-bargaining representative and that therefore such conduct constituted interference, restraint, and coercion of the employees in violation of Section 8 (a) (1) of the Act. Regarding the last issue raised, namely, that the Respondent illegally aided and assisted dissident antiunion employee committees to combat the efforts of other employees in connection with the latter's efforts to designate the Union as their collective-bargaining representatiN e, I am constrained to agree with the General Counsel's contention that such conduct constitutes a violation of the Act. Employees who associate themselves as a common group to concertedly combat the efforts of other employees seeking representation by a formally organized labor organization are clearly participating in a labor dispute within the meaning of Section 2 (9) of the Act thus constituting them, a labor organization within the meaning of Section 2 (5) of the Act. In my opinion it is immaterial that the so-called employee committees were not formally organized for the purpose of bargaining collectively with the employer regarding working conditions gen- erally but merely to participate in a labor dispute concerning representation. Such committees are nonetheless labor organizations within the meaning of the Act. But because the General Counsel stated on the record that he made no conten- tion that these so-called committees were labor organizations, and the complaint fails to allege an 8 (a) (2) violation no finding will be made that the Respondent aided and assisted a labor organization within the meaning of Section 8 (a) (2) of the Act. Nonetheless, it is clear that by aiding and assisting these employee committees during the height of an organization and election campaign to combat the efforts of fellow employees to freely select a collective-bargaining representa- tive, the Respondent has interfered with the rights of employees to freely organize within the meaning of Section 7 of the Act. The "Employee Committees' " letter in evidence clearly seeks to effect the defeat of the Union at the election in order that the employees may continue to bargain individually with the Respondent. By assuming the cost of preparing about 1,900 copies each of the "Employee Committees' " letters and thereafter mailing copies of the said letters to each employee in the bargaining unit, the Respondent actively participated in the preelection antiunion campaign of the committees. Such conduct by an employer, in effect, is also tantamount to solici- tation by an employer to his employees to favor 1 of 2 opposing factions of em- ployees during an election campaign. There can be no doubt, and I find, that Re- spondent's above conduct constitutes interference with the rights of employees to freely organize. Furthermore, since the record plainly shows that Moffitt was a supervisor at the time he first organized the so-called Moffitt committee, and further shows that Respondent's vice president, McClelland, and Hawley Stark, house counsel for the Respondent,20 furnished Moffitt with the names of other antiunion em- ployees who together with Moffitt formed the organizational nucleus of the said committee, the undersigned further finds that the Respondent also aided and assisted the said committee during its preorganization stages. Such con- duct also clearly constitutes interference with the right of employees to freely organize within the meaning of Section 7 of the Act. m It is also noted that Stark formally entered his appearance as one of the Respondent's attorneys at the hearing. THE CLEVELAND TRUST COMPANY 1519 Upon the basis of all the foregoing and the entire record, I conclude and find that (1) by granting wage increases to the employees on April 1, 1951, to influence the said employees to vote against the Union at the pending election, (2) by aiding and assisting dissident antiunion employees organizations to combat the efforts of union adherents in seeking to designate the Union as their collective- bargaining representative, and (3) by soliciting employees to support the anti- union organizations in their efforts to defeat the union adherents at the election, the Respondent has interfered with the rights of employees to freely organize within the meaning of Section 7 of the Act, thereby also violating Section 8 (a) (1) thereof. IV. THE EFFECT OF THE UNFAIR LABOR PRACTICES UPON COMMERCE The activities of the Respondent set forth in section III, above, occurring in connection with the operations of the Respondent described in section I, above, have a close, intimate, and substantial relation to trade, traffic, and commerce among the several States, and such of them as have been found to constitute unfair labor practices tend to lead to labor disputes, burdening and obstructing commerce, and the free flow of commerce. V. THE REMEDY It has been found that the Respondent has engaged in certain acts of inter- ference, restraint, and coercion. It will therefore be recommended that the Respondent cease and desist therefrom. It has also been found that the Respondent has violated Section 8 (a) (1) of the Act by : (1) Granting wage increases to its employees for the purpose of influencing them to vote against Financial Employees Guild, Local Industrial Union 1757, CIO, at a scheduled election ; (2) assisting and supporting the so- called Moffitt and Wolverton "Employee Committees" to combat the efforts of other employees seeking to designate the above-named Union as collective-bar- gaining representative for the employees in the said election; and (3) soliciting its employees to assist and support the said "Employee Committees" in their efforts to defeat the union adherents in the election. The unfair labor practices found to have been engaged in by the Respondent are of such a character and scope that, in order to insure the employees their full rights guaranteed them by the Act, it will be recommended that the Re- spondent cease and desist from in any manner interfering with, restraining, and coercing its employees in their right to self-organization" It will be further recommended that the allegations of the complaint that the Respondent discharged William Sorger on September 25, 1950, in violation of Section 8 (a) (3) of the Act be dismissed. Upon the basis of the foregoing findings of fact, and upon the entire record in the case, I make the following : CONCLUSIONS OF LAW 1. Congress of Industrial Organizations and its affiliate Financial Employees Guild, Local Industrial Union 1757, CIO, are labor organizations within the meaning of the Act. 2. By interfering with, restraining, and coercing its employees in the exercise of rights guaranteed in Section 7 of the Act, the Respondent has engaged in and "See May Department Stores Company, doing buaines8 a8 Famous -Barr Company V. N. L. R. B., 326 U. S. 376. 1520 DECISIONS OF NATIONAL LABOR RELATIONS BOARD Is engaging in unfair labor practices within the meaning of Section 8 (a) (1) of the Act. 3. The aforesaid unfair labor practices are unfair labor practices affecting commerce within the meaning of Section 2 (6) and (7) of the Act. 4. By discharging William Sorger on September 25, 1950, the Respondent did not violate the Act. [Recommendations omitted from publication in this volume.] Appendix A NOTICE TO ALL EMPLOYEES Pursuant to the Recommendations of a Trial Examiner of the National Labor Relations Board and in order to effectuate the policies of the National Labor Relations Act, as amended, we hereby notify our employees that : WE WILL NOT interfere with, restrain, or coerce our employees in the exercise of the right to self-organization, to form labor organizations, to join or assist FINANCIAL EMPLOYEES GUILD, LOCAL INDUSTRIAL UNION 1757, CIO, or any other labor organization, to bargain collectively through rep- resentatives of their own choosing, and to engage in concerted activities for the purpose of collective bargaining or other mutual aid or protection. WE WILL NOT grant wage increases or increase vacation benefits for the purpose of influencing employees with respect to union activity, affiliation, assistance, or designation. WE WILL NOT assist and support any organization of our employees engaged in a labor dispute concerning representation with other employees. WE WILL Nor solicit our employees to favor one employee organization engaged in a representation dispute with other employees. THE CLEVELAND TRUST COMPANY, Employer. By------------------------------------ (Representative ) (Title) Dated--------------------- This notice must remain posted for 60 days from the date hereof, and must not be altered, defaced, or covered by any other material. Appendix B May 9, 1951. Cleveland Trust Fellow Employee : You have been addressed as associates; there is an element that would like to call you brother or sister. We address you as fellow employee because we are all employees of the bank, whether we work in the Clearance Department, on the books, behind the tellers window, or in any one of the many other departments of the bank. This letter is written and signed by us because we are deeply concerned over the outcome of the election to be held May 23. We feel that you, too, must surely want to weigh the facts very carefully, as do we, before placing your banking futures in the hands of men whose interests are primarily slanted THE CLEVELAND TRUST COMPANY 1521 towards union welfare , not toward employee welfare. It is our intent to present some interesting points-not to become involved in a mud slinging campaign. On the subject of outsiders-we certainly are not so naive as to think that Sam Sponseller (and this is not to be construed as a personal affront to a man who is doing his job, such as it may be) is attempting this organization out of the goodness of his heart and to help us. Or is it possible that all this interest is being shown because the organization of "US" would put many thousands of dollars, annually, into somebody's coffers? This, plus any amount which the union may at any time feel like assessing us. The union organizers have said that the boys who left for the service of our country have not received a fair deal, since they were not paid to the end of the pay period in which they left. Interesting, yes, especially when we found that each fellow who left for service received a check after he arrived in camp- a check for two weeks pay. You have also heard that two of our pensioners were taken off pension. We checked into that one, too. They were-but only after they were deceased! Both sides of a story are more enlightening than a one sided version ! The Union organizers also said from 70 to 80% (depending on how hard you were to convince) were already signed up, and that we, as individuals, had better hop on the bandwagon. Now, we know that these statements were untrue. At least one extension had to be granted by the Labor Relations Board in order for the agitating group to muster even the required 30%. We ask you how much of our faith and our future should we place in the hands of a group that deliberately misrepresents. Do we want to place our future relationship with the bank in the hands of this union ? Surely the prospects of a strike against, or the picketing of, our bank are very unhappy and disagreeable thoughts to all of us. At the same time, any sug- gestions as to how you and we are going to live without income during any pro- longed disturbance have been conspicuously absent-all this , in addition to the deduction of union dues and special assessments which may be made for political action and strike funds whenever the union deems it necessary. As yet, the union has not even made mention of the amount of dues which would be deducted from our pay envelopes. But then, perhaps we are not expected to wonder or to ask- they will take care of that later? None of us would consider entering into a long term business association with a stranger without knowing more than we employees know about the Financial Employees Guild, its leaders-particularly Sam Sponseller-and its and their history and background. If the Union should win, we employees would be enter- ing into an association which might well last for the rest of our terms of employ- ment with the bank. Yet we are asked to turn over to Sam Sponseller and his organizers our future welfare at our bank and to make this decision on the basis of some glib talk and a few promises . We are unwilling to surrender our indi- viduality to such an organization. We have always been able to discuss our in- dividual problems with our officer staff, and we see no reason why we should give up this personal right-and we don't think you want to surrender it either. Think before you leap ! You and we know that it is far better for promotions to be based on merit, as has always been the policy of our bank, than on union seniority. We must seriously consider what the consequences might be if we shackle ourselves with the burden of carrying on our shoulders the inevitable weak links of any such group as is attempting to organize us. There is not meant to be any hidden meaning anywhere in this letter. If anyone is slyly able to point out some to you, it will be because we got the ball across the plate , and the truth is causing someone to smart a little. 1522 DECISIONS OF NATIONAL LABOR RELATIONS BOARD It is said that truth is always the victor in the end, and surely the absurd statements and false assertions made by the union, from time to time, have vio- lated the very principle of truth which is of primary importance when the work- ing futures of some 2,000 employees are at stake. Yours With The Right and Duty To Vote, EMPLOYEES COMMITTEE : [21 signatures of the so-called committee members appeared at the foot of the letter.] Appendix C May 10, 1951. Mr. George Gund, President The Cleveland Trust Company Cleveland, Ohio Dear Mr. Gund : Some of us employees have been meeting from time to time to discuss the union question and what the May 23rd election really means to us. We have decided that we want all our fellow employees to know just how we feel about this very vital question. This group, which calls itself the "Employees Committee", therefore has written and signed a letter under date of May 9, 1951, addressed to "Cleveland Trust Fellow Employees." The Committee desires to have copies of this letter made and circularized among the employees of the Bank. Neither this Committee nor the signers of this letter have the funds necessary to have such copies made and mailed to the employees. Neither this Committee nor the signers of this letter want to have any part in a so-called Company Union or to be representatives of all or any part of the employees of the Bank for col- lective bargaining, or for any other purpose. We, therefore, ask that the Bank, at no expense to us, cause copies of this letter to be made and mailed to the employees of the Bank. This letter is being written at the direction of the Employees Committee and the members thereof have full knowledge of the contents hereof. Very truly yours, EMPLOYEES COMMITTEE By: /s/ Wayne D. Moffitt. Appendix D LET'S KEEP THE RECORD STRAIGHT-AT LEAST SO FAR AS THE REAL ESTATE LOAN DEPARTMENT IS CONCERNED Whereas, we, of the Real Estate Loan Department of the Cleveland Trust Company, are aware that an election is soon to take place to decide whether or not we are to be known as a union shop affiliated with the CIO, and because of which we make the following declaration of principles. 1. We recognize the fact that wherever or whenever one man works for another that it is only human for him to feel, at times, that he is underpaid or imposed upon. We prefer relying on the integrity of the existing management and officer personnel to maintain equitable relationship, rather than to so-called union leaders either inside or outside the bank's employ. 2. We believe in maintaining our independent status as bank employees and we deplore the regimentation and inflexibility of rules that always accompany membership in a union. 3. We believe that bank employees require varied and special talents and because they do they cannot sensibly be classed, or graded or rated. Conse- TULE RIVER COOPERATIVE GIN, INC. 1523 quently the only ones who could benefit from unionization would be the least deserving and, conversely, the competent, industrious or otherwise superior worker would be deprived of his well-earned reward. 4. We deplore the continuous clashing between labor and management in those places where unions exist ; the constant friction, the lack of cooperation, the definite cleavage between management and the worker aggravated by the con- tinual agitation of the union leaders. We prefer to continue in the same spirit of mutual benefit between officers and employees that has prevailed here for so many years. 5. We are members of an institution serving the public which means that our relationship to that institution and to the public must be flexible and free from the restraint of rules and controls imposed by outside influence. We believe that any influence tending to sever or disrupt this relationship is detrimental to us as employees, to our institution and to the public as well. 6. We believe that all employees should take an active part in this determina- tion of the question of relationship of employees with management. It is a well known fact that the efforts of a vocal and active few often prevails over the better judgment of the restrained majority. Let's not say to ourselves "It can't happen here." It is our right to go on record as opposing this minority group and we hereby do so. We invite employees of all other departments and branches who feel as we do to likewise register their opposition to this move- ment. In order to accomplish this we are requesting that this letter be circulated among the other employees. [41 signatures of the employees of the Real Estate loan department are sub- scribed thereon.] TULE RIVER COOPERATIVE GIN, INC. and INTERNATIONAL CHEMICAL WORKERS UNION, LOCAL 197 , AFL, PETITIONER . Case No. 20-RC- 2042. February 19, 1953 Decision and Direction of Election Upon a petition duly filed. under Section 9 (c) of the National Labor Relations Act, a hearing was duly held before Albert Schneider,' hear- ing officer. The hearing officer's rulings made at the hearing are free from prejudicial error and are hereby affirmed. Pursuant to the provisions of Section 3 (b) of the Act, the Board has delegated its powers in connection with this case to a three-member panel [Chairman Herzog and Members Murdock and Peterson]. Upon the entire record in this case, the Board finds : 1. The Employer is a corporation, organized under the State of California cooperative law, with its principal office at Woodville, California. It is engaged in the ginning of cotton exclusively for its approximately 300 grower members. It operates 4 ginning plants in California : 2 in Woodville, a third in the area between Tipton and Pixley, and the fourth near Tulare. During the fiscal year ending March 31, 1952, the Employer ginned approximately 28,000 bales of cotton valued at about $5,000,000, for 102 NLRB No. 158. Copy with citationCopy as parenthetical citation