The Frohman Manufacturing Co., Inc.Download PDFNational Labor Relations Board - Board DecisionsFeb 25, 1954107 N.L.R.B. 1308 (N.L.R.B. 1954) Copy Citation 1308 DECISIONS OF NATIONAL LABOR RELATIONS BOARD CONCLUSIONS OF LAW 1. The Union is a labor organization within the meaning of Section 2 (5) of the Act. 2. Respondent is engaged in commerce within the meaning of Section 2 (6) and (7) of the Act. 3. Respondent has not engaged in unfair labor practices in violation of Section 8 (a) (1), (3), and (5) of the Act. [Recommendations omitted from publication.] THE FROHMAN MANUFACTURING CO., INC. and INTERNA- TIONAL ASSOCIATION OF MACHINISTS, LODGE NO. 613, A.F.L. Case No. 10-CA-1476. February 25, 1954 DECISION AND ORDER On September 2, 1953, Trial Examiner David London issued his Intermediate Report in the above -entitled proceeding, finding that the Respondent had engaged in and was engaging in certain unfair labor practices, and recommending that it cease and desist therefrom and take certain affirmative action, as set forth in the copy of the Intermediate Report attached hereto. The Trial Examiner further found that the Respondent had not engaged in certain other unfair labor practices alleged in the complaint, and recommended dismissal of those al- legations . Thereafter, the Respondent and the General Counsel filed exceptions to the Intermediate Report and supporting briefs.' The Board has reviewed the rulings made by the Trial Ex- aminer at the hearing 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 finds merit in the Respondent ' s exceptions and adopts the findings, con- clusions, and recommendations of the Trial Examiner only to the limited extent that they are consistent with this Decision and Order. 1. For the reasons fully stated in the Intermediate Report, we find, as did the Trial Examiner, that the discharge of em- ployee Nash on February 13, 1952, was not violative of Section 8 (a) (3) and (1) of the Act. 2. The complaint alleges, and the Trial Examiner found, that since January 2, 1952, the Respondent refused to bargain with the Union in violation of Section 8 (a) (5) and (1) of the Act. We do not agree. As described in the Intermediate Report, the Union was certi- fied as exclusive bargaining representative of Respondent's 'The Respondent also filed a request for oral argument . The request is denied as the rec- ord, including the exceptions and briefs , adequately presents the issues and the positions of the parties. 107 NLRB No. 279. THE FROHMAN MANUFACTURING CO., INC. 1309 employees on October 29, 1951, following a consent election. The Union thereafter requested bargaining on January 2, 1952, and the parties held five bargaining meetings between January 29 and February 20, 1952. Although not mentioned by the Trial Examiner, it is un- controverted that early in the negotiations, Respondent's attorney suggested the procedure of going through the Union's proposed contract section by section to determine what the parties did or did not agree upon and then returning to discuss further the matters upon which they disagreed. The Union accepted this suggestion. In the course of bargaining the Re- spondent agreed to a number of contract provisions, including certain changes in existing working conditions. These changes embraced such matters as permitting any employee called before his regular starting time to work out his regular shift; establishing a mihimum of 4 hours' pay when an employee reports to work on or after his regular shift; granting 1 hour off on election day, with double time if required to work that hour; agreeing to handle the administrative work in connection with health insurance; and granting 3 months' leave without pay at least for personal disability and maternity, with seniority to accumulate during such leave. The parties disagreed as to various other contract provisions and, after discussion, these sections were bypassed. However, the parties did not return fo; further discussion of the disputed items principally because of the disagreement over Respondent's request for a probationary period of 1 year after employment, during which Respondent would have the complete right to hire and discharge, and certain contract provisions such as those relating to grievances and seniority would be inapplicable. On March 18, 1952, the Union filed its charges in the present case. On September 23, 1952, the Union demanded the re- sumption of negotiations. The Respondent promptly complied with this demand and two additional meetings were held on October 3 and 8, 1952. The latter were concerned almost entirely with Respondent's request for an extended probationary period, and negotiations ended when the parties continued to be unable to reach agreement on this issue. The Trial Examiner recognizes that the probationary period issue raised the most serious obstacle to successful negotia- tion. He finds in effect that Respondent's "insistence" on a 1-year period was so unreasonable as to demonstrate its lack of good faith. In this connection, the Trial Examiner relies mainly on (1) Chief Engineer Johnson's testimony that he was able to weed out most of the deadwood within 60 days after employment and his inability to recall any employees who appeared able to work in 60 days, but were not able to work thereafter; (2) in August 1951, when Re- spondent was negotiating with an inside union, Frohman said he wanted only a 3- to 4-month probationary period; (3) Re- spondent granted a substantial number of wage increases 337593 0 - 55 - 84 13 10 DECISIONS OF NATIONAL LABOR RELATIONS BOARD within 90 days after the recipients were hired, thereby indicating Respondent had sufficiently apprised itself of the ability and suitability of its employees within that time; and (4) every employer has an unfettered right at all times to discharge employees who lack the necessary qualifications. At the outset, we cannot agree that Respondent in fact adamantly "insisted" on a 1-year period. As apparently credited by the Trial Examiner, Taylor, Respondent's vice president, originally sought an 18-month probationary period. However, after objection by the Union and after Aronovitz, Respondent's attorney, pointed out that the Miami Civil Service had a 1-year period, the Respondent reduced its demand to 1 year. Later, at a meeting on February 20, 1952, Aronovitz said he would recommend a 6-month period to Taylor.' The Trial Examiner finds it "extremely significant" that this recommendation was not transmitted to Taylor, inferring that this was attributable to Respondent' s intransigent position on a 1-year period. Yet, although not mentioned by the Trial Examiner, it is admitted that the union representatives told Aronovitz at this meeting that 6 months was "ridiculous" and that they would not even go along with 3 months. Aronovitz' failure to make his recommendation, therefore, seems to us less likely to have been attributable to Respondent' s alleged intransigence than to the Union's anticipatory refusal of even a 90-day probationary period. The testimony is in conflict as to what occurred on October 8, 1952, when the next full discussion of the probationary period occurred. However, even as credited by the Trial Examiner, the Respondent at least asked the Union if it would consider a 6-month period; the Union categorically refused and negotiations were ter- minated. Assuming, in any event, that the Respondent did insist on a 1-year probationary period, it is necessary to consider the reasons advanced by the Respondent for such period in order to determine the reasonableness of the demand. As was frequently indicated to the Union during negotiations, the Respondent was 1 of fewer than 10 companies in the United States engaged exclusively in the manufacture of precision gears. The work involved extremely close tolerances and the Respondent was almost entirely a custom-gear producer. Because of the nature of its work, Respondent required highly skilled employees with the proper temperament for protracted close-tolerance work. Such workers were difficult to find, not only because of the lack of personnel who had been exer- cising the necessary skills, but also because of the drifting element of workers in the Miami area. This resulted in a need for rather extensive training by Respondent in its attempt to build up a capable work force. At the time negotia- tions with the Union began, Respondent had been engaged in 'Taylor testified without contradiction that he always abided by Aronovitz' recommendations. THE FROHMAN MANUFACTURING CO., INC. 1311 production for considerably less than 1 year and was suffering a reject rate of 10 to 12 percent, which was over 10 times that of the precision- gear company previously operated by Frohman. The "external rejects" alone (i. e., the return of gears by customers) during 1952 amounted to about $130,000' Respondent's representatives asked the Union on a number of occasions to accept a 1-year probationary period in this first contract, with assurance that the period would be reduced in later contracts, after the work force had become more stabilized. As previously mentioned, the Union refused to go even as high as 90 days, which it asserted was the longest period for any other company in the area. However, none of the manufacturing concerns in the area performed comparable work and the Union never sought to show what probationary periods were used in other precision-gear companies else- where in the United States. White admitted that he said he would bring the Respondent contracts showing such information, but did not do so. Turning now to the specific factors relied upon by the Trial Examiner, Johnson did testify that most of the weeding out could be accomplished in 60 days and that he could not recall any instance in which an employee was first revealed to be incapable after 60 days .4 However, both Taylor and Johnson named employees who were fired for incompetency after more than 3 months had elapsed; Frohman described em- ployees who were retained only following transfers that occurred after 6 or 8 months; and both Johnson and Frohman emphasized the high labor turnover that would result if they had to make their final decision on an employee's status in less than 9 months. As to Frohman's alleged position in August 1951 that a 3- or 4-month period would be sufficient, Nash initially testified to this effect and the Trial Examiner states that his finding is based on Nash's "credited, undenied testimony." Yet Nash himself later testified, ". . . Mr. Frohman never made a solid commitment. He merely told us thirty days was too short a time. He didn't come out for sixty days, or for six months . . . He didn't agree to anything on probationary periods." Nash's testimony is thus itself contradictory. Moreover, Nash' s original testimony is controverted by other testimony in the record. For example, Bowers, who also at- tended the August 1951 meeting as an employee representative, testified Frohman said "he needed a 6-month probationary period." Porter, another employee representative, could not recall that Frohman suggested any particular time and Johnson testified that no specific issues were discussed. Frohmantesti- fied that he merely told the employees to write up what White, the Union's principal negotiator, admitted that the loss from rejects was brought up during negotiations, but claims it was not related to the probationary- period issue. 4Frohman testified as to one such employee. 13 12 DECISIONS OF NATIONAL LABOR RELATIONS BOARD they wanted and to submit it to him when he returned from Washington. Significantly, Frohman's alleged 3- or 4-month position was never mentioned by the Union in the course of its negotiations. In view of the foregoing, we find, contrary to the Trial Examiner, that Frohman did not agree in August 1951 that a 3- or 4-month probationary period would be adequate. With respect to the wage increases given during the first 90 days of employment, these do not show, as apparently in- ferred by the Trial Examiner, a fixed determination by the Respondent as to the suitability of the employees within that period. It is true that it may have reflected that the employees' skills had improved but not that the employees would finally measure up to the Respondent's needs, which were for more than machine operators. We note in this connection that at least 7 involuntarily separated employees had received in- creases during their first 90 days. Finally, as to the alleged "unfettered" right of every em- ployer at any time to discharge an employee who lacks the necessary qualifications, such observation by the Trial Ex- aminer disregards the fact that, under the Union's proposed contract, discharges by the Respondent, far from being "un- fettered," would be subject to article XVI, which includes 10 subsections and involves written charges, investigations, hearings, w. itten determinations, et cetera. Taylor was admittedly concerned lest such grievance activities impair his primary function of running the Company. Based on the foregoing and the entire record, we find that Respondent's request for an extended probationary period was not unreasonable under the circumstances, that it was not raised to block negotiations and discredit the Union, and that it was not indicative of bad faith. The Trial Examiner also predicates his finding of bad faith on certain other positions and statements of the Re- spondent. For the reasons indicated below, we are persuaded that these findings lack merit. Grievances: The Trial Examiner finds that Respondent's position that it would not consider grievances during an em- ployee ' s first year of employment in derogation of its duties under finds, is aggravated by the facts was for only a 1-year contract , insisting on a no - strike clause . was imposing a condition the Act. This position, he that the Union's proposal and that Respondent was The requested withholding of the grievance procedure during an employee's first year was an integral part of the Respondent's position on the probationary period which, as previously mentioned, was not unreasonable .5 As to the alleged "aggravating" factors, although the Union's proposal was for a 1-year contract, the Respondent was seeking a contract for 2 years or 18 5 We note that, at least by October 1952, most of Respondent's employees had been em- ployed over 1 year. THE FROHMAN MANUFACTURING CO., INC. 1313 months. The basic no-strike clause was contained in the Union' s own proposed contract and the Union never suggested that this clause be deleted if a 1-year probationary period be granted. No-strike clause : The Trial Examiner found that the Re- spondent insisted upon enlarging the Union ' s proposed no - strike clause to render the Union liable for any damage or loss sustained because of any authorized or unauthorized strike and that this position evidenced Respondent 's bad faith. We believe the record fails to establish such adamant insistence by Respondent . Although Taylor may have requested a broad provision , White, the Union ' s representative , did not deny that Aronovitz, on behalf of Respondent , said "that the law on the subject of liability of unions for wildcat strikes should be studied and that a compromise section should be drawn on what the actual legal holdings are ontuie subject." Moreover, as already indicated , the parties had agreed to the procedure of returning to disputed items for further discussion. As the parties did not return to this section because of the impasse previously described , Respondent 's ultimate position on the no-strike clause obviously cannot be determined. Unilateral wage increases : The Trial Examiner found that from October 19, 1951, through February 1952, Respondent unilaterally granted 80 wage increases ranging from 5 to 15 cents an hour , about 25 of these increases being granted on February 4 or 11 , 1952; and that more than 100 additional increases were granted between March 1 and July 1, 1952. The Trial Examiner concluded that, by such unilateral action after January 2, 1952, the earliest 8 (a) (5) date alleged in the complaint, the Respondent violated the Act. The Respondent contends in its brief before the Board, as it did in its brief to the Trial Examiner, that the above wage increases were not unlawful because the Union acquiesced therein. The Trial Examiner made no findings whatsoever with respect to this contention. Merit increases were given from October 1951 to January 29, 1952, admittedly with the knowledge of, and without protest by, the Union . White and Nash claim that the Union protested the increases beginning at the meeting on January 29, 1952. However , both Taylor and Aronovitz denied that any protest was made during negotiations or at any tine before the present hearing , even though Taylor spbcifically informed the Union that Respondent was making such increases and two of the union negotiators themselves received increases .6 Moreover , White conceded that no reference to unilateral wage increases was contained in the charges filed on March 18, 1952. He also testified that he made no reference to a protest in his statement prepared for the Board on October 30, 1952. 6 The Trial Examiner did not resolve this conflict in testimony. 1 314 DECISIONS OF NATIONAL LABOR RELATIONS BOARD Upon the entire record, we credit the testimony of Taylor and Aronovitz that no protest was made by the Union until the hearing in the present case in March 1953. The Board has previously held that if a union acquiesces in unilateral wage action by an employer , such unilateral conduct does not constitute a refusal to bargain .' Here, the Union had full knowledge of the wage increases granted by the Respondent . 8 By its failure to protest the Respondent ' s conduct until the time of the hearing , we are of the opinion that the Union acquiesced therein and that such conduct by Respondent was therefore not a refusal to bargain. Taylor ' s statements on certain employment conditions: The Trial Examiner found indicative of bad faith Taylor ' s statements at the January 29 and February 5 meetings that he would not negotiate on checkoff , grievance procedure , seniority, and wages . Even assuming these statements were made , Taylor was not an experienced negotiator and it seems obvious from the record that he meant that he would not agree to the Union's proposals on those subjects. The latter is evidenced by Taylor's admitted further statement that 80 percent of the contract was good and by the fact that the Respondent did bargain on those subjects, setting forth its position on each issue. Bulletin board : The Trial Examiner relies on the Respondent's refusal to grant the Union the right to maintain a bulletin board at the shop. Apparently, Taylor did so refuse, but Aronovitz testified that he (Aronovitz) then said, "Leave that to me . . . I'll see that it's worked out," and the subject was passed . Furthermore , as already mentioned , the parties contemplated returning to discuss disputed items generally, so the Respondent ' s fixed position on this matter is not shown. Required showing of law: According to the Trial Examiner, the Respondent ' s insistence that it be shown the law establishing that the Company was required to accept grievance and other provisions before it would negotiate thereon demonstrates bad faith. The Trial Examiner misconstrued Respondent's position. Respondent did not ask for law before it would bargain on an issue . Rather when, after discussion, it refused to accept a proposal, Respondent indicated that it would nevertheless agree if the law so required . This was, therefore , in the nature of a concession by the Respondent. Checkoff: The final indication of bad faith specifically men- tioned by the trial Examiner is Taylor's adamant refusal to 7See, e. g., Allis-Chalmers Manufacturing Company. 106 NLRB 939, in which the Board found acquiescence where the union was aware of unilateral action in December 1950 and March 1951, the union indicated no interest therein until June 1951, and the union president testified that he did not object in December 1950 because the union had no interest in de- priving employees of raises 8 These increases did not exceed those requested by the Union. THE FROHMAN MANUFACTURING CO., INC. 1315 have anything to do with checkoff , despite Frohman ' s prior agreement to such provision in negotiations with the inside union in August 1951. Here again the record fails to establish any adamant position by Respondent because the parties did not return to discuss the disputed item. Furthermore , as to Frohman ' s alleged earlier agreement which the Trial Examiner again bases on Nash ' s "credited , undenied testimony," this testimony was substantially controverted by Johnson , Porter , and Frohman. And although Nash testified that Frohman ' s prior agr`eement as to checkoff was mentioned during the later negotiations between the Union and the Respondent , he could not recall either the meeting or who brought up the matter . White admitted that he never mentioned the alleged prior agreement during negotiations . Under these circumstances , we do not find that Respondent ' s position as to checkoff demonstrates its bad faith. As the record fails to reveal any persuasive indicia of bad faith by Respondent during the course of its negotiations with the Union , 9 we find that it did not unlawfully refuse to bargain with the Union and we shall dismiss this allegation of the complaint. 3. The Trial Examiner found that the Respondent violated Section 8 (a) (1) of the Act by Johnson' s veiled threat of reprisal to Nash. Assuming Johnson's remarks constitute a threat , we believe that , because of the isolated nature of these remarks , it would not serve any useful purpose to issue a cease - and-desist order based thereon . 10 We shall, therefore , dismiss the complaint in its entirety. [The Board dismissed the complaint.] Member Murdock, dissenting: I would not reverse the Trial Examiner's finding that the Respondent violated Section 8 (a) (1) and (5) of the Act. Without necessarily endorsing all of the Trial Examiner's subsidiary findings, I in the main agree with his approach to the case and believe, he was justified in concluding that the Respondent did not approach the bargaining table with the required sincerity of desire to arrive at an agreement with the Union. 9 The General Counsel excepts to the Trial Examiner 's failure to rely on certain other alleged indicia of bad faith . We have carefully considered these exceptions and find them to be without merit. 1OBraswell Motor Freight Lines, 107 NLRB 761. The General Counsel excepts to the Trial Examiner 's failure to find that Respondent also violated Section 8 (a) (1) by denying plant access to union adherents during their nonworking hours, while permitting such access to antiunion personnel . The record fails to substantiate this contention . Accordingly , the ex- ception is found to be without merit 1316 DECISIONS OF NATIONAL LABOR RELATIONS BOARD Intermediate Report STATEMENT OF THE CASE This proceeding, brought under Section 10 (b) of the National Labor Relations Act, as amended (61 Stat. 136), hereinafter called the Act, was heard before the undersigned at Miami, Florida, between March 9-24, 1953, inclusive. The parties were represented by counsel and a representative . 1 and were afforded full opportunity to be heard , to examine and cross -examine witnesses , to introduce relative evidence , to argue orally , and to file briefs. The complaint, issued on January 16, 1953, and based on a charge duly filed and served, alleged in general terms that on and after January 2, 1953, Respondent refused to bargain in good faith with the Union which had been certified by the Board on October 29, 1951, as the bargaining representative of Respondent's production and maintenance employees at its Miami plant. The complaint also alleged that on or about February 13, 1952, Respondent discharged its employee Wilmar J. Nash because of his membership in, and activities on behalf of, the Union, and because he engaged in concerted activities with other employees for the purpose of collective bargaining and other mutual aid and protection. It further alleged that Respondent, on or about February 7, 1952, threatened its employees with discharge, shutdown of the plant, and other reprisals because of their membership in, and activities in behalf of, the Union, and that in and about February 1952, Respondent prohibited employees who were union adherents from entering the plant outside of their working hours, while permitting other employees to enter the plant outside of their working hours and to engage in solicitation against the Union. Respondent's answer, duly filed, denied generally that it had committed any unfair labor practice, denied that it refused to bargain as charged, and pleaded affirmatively that the Union in March 1952 abandoned the collective-bargaining conferences and that when negotia- tions were resumed in September and October 1952, Respondent continued the negotiations in good faith until the parties, became deadlocked on major items of the proposed contract. With respect to Nash, the answer admitted that it discharged himon or about February 13,1952, and thereafter failed and refused to reinstate him, but pleaded that the discharge was made for cause . Briefs have been received from the General Counsel and Respondent and have been duly considered. Upon the entire record in the case, and from my observation of the witnesses, I make the following: FINDINGS OF FACT 1. THE BUSINESS OF RESPONDENT Respondent is a Florida corporation maintaining its office and place of business at Miami, Florida, where it is engaged in the manufacture of precision gears and related products for use in the assembly of electronic and other devices for the United States Armed Forces. In the year prior to the issuance of the complaint, Respondent performed services valued in excess of $ 50 ,000 in the manufacture of precision gears and related products which were shipped in interstate commerce to customers outside the State of Florida. I find that Re- spondent is engaged in commerce within the meaning of the Act. II. THE LABOR ORGANIZATION INVOLVED International Association of Machinists , Lodge No. 613, A.F.L., hereinafter called the Union, is a labor organization within the meaning of Section 2 (5) of the Act. i The General Counsel of the Board and his representative at the hearing are referred to herein as the General Counsel, The Frohman Manufacturing Co., Inc., as Respondent or the Company, and the charging union as the Union. THE FROHMAN MANUFACTURING CO., INC. 1317 Ill. THE UNFAIR LABOR PRACTICES A. The refusal to bargain 1. Background and sequence of events Prior to 1949, Harry Frohman had been engaged for about 20 years in the manufacture of gears at Charlotte, North Carolina. In January 1949, he sold his interests in that business and moved to Miami with the intention of retiring. In the summer of 1950, however, he ac- quired a small building for the purpose of "research in textile machinery" and to market several inventions in which he was interested. He was subsequently contacted by a former customer of the Charlotte plant and obtained an order for the manufacture and delivery of gears. He enlarged his quarters and by the end of 1950 employed approximately 12 to 15 employees. In 1951, Respondent was incorporated and Frohman became, and has at all times since been, its president and, together with his wife, the principal stockholder therein. In October 1951, Samuel T. Taylor joined Respondent as vice president and substantial shareholder, and was placed in charge of "all administrative functions." Organizational work among the employees at the plant was commenced in July 1951 at which time 42-43 employees signed cards authorizing the Union to represent them. Of this number, approximately three-fourths were obtained by Nash. A petition (10-RC-1519), seeking the Union's certification as bargaining representative of Respondent's production and maintenance employees was filed with the Board on July 23, 1951. Several days later Orvid Johnson, Respondent's superintendent, called a meeting of the employees in the plant at which the pros and cons of union organization were discussed and during the course of which Johnson recommended the formation of an independent company union. Later that day, the employees voted to establish that type of union. A committee was appointed to draft a proposal which was submitted to Frohman. Several days thereafter, early in August, Frohman called the committee to his office and discussed the proposal with them. No agreement was reached on wages, though the committee's sug- gested scales were based on the "Wage Stabilization paper ... the Company had given" the committee. The committee's proposal for a 30-day probationary period was deemed insufficient by Frohman who stated that he would "require between 3-4 months for [suchla period " Frohman agreed to give 1 week's vacation after 6 months of employment and 2 w eks after 1 year. He also agreed to a 10-minute washup period and to deduct union dues of 25 cents a month.2 The committee redrafted its proposal in longhand and received permission from Johnson to have six copies made by one of the Respondent's stenographers. The amended proposal which was submitted to the Company expressly incorporated Frohman's concessions last aforementioned and gave effect to Frohman's demand for a 4-month probationary period.3 The committee waited several weeks but heard nothing from management. Nash, late in August or early in September, asked Johnson whether another meeting with Respondent's officials could be arranged and Johnson agreed to see Frohman about the matter. Later that day, Johnson informed Nash that Frohman "didn't want anything to do with this contract; he didn't want anything to do with the union at all." Nash then informed Johnson that under the circumstances the men would have to "get the outside union to come in and do the bar- gaining for ,[them]' to which Johnson replied: "Well, if that's what you fellows think you can do, go ahead." Nash thereupon resumed his activities in behalf of the Union. Thereafter, a meeting was held in the Board's office in Miami in connection with the Union's petition for certification following which a hearing on that petition was ordered. On October 5, 1951, Respondent and the Union entered into an "Agreement for Consent Election." The Union won that election on October 19, and on October 29, 1951, was legally certified as the exclusive representative for the purposes of collective bargaining in respect to rates of pay, wages, hours of employment, and other conditions of employment, of all of Respondent's employees in the following appropriate unit: All production and maintenance 2 The findings in this paragraph are based on the credited, undenied testimony of Nash. 3Paragraph 12 of the proposal, in pertinent part, provided that "during the [first 120 days of employmenil, the Company shall be at liberty to discharge any employee who is not satisfactory in his classification." Paragraph 14 provided that "the employees' seniority rights shall start when a man has passed [his first 120 days' period of employment]." 13 18 DECISIONS OF NATIONAL LABOR RELATIONS BOARD employees including shipping and receiving clerks and their helpers , material handlers, truckdrivers , porters, janitors , and laborers , but excluding officeclerical employees , drafts- men, guards, watchmen, and supervisors as defined in the Act. No demand to bargain, or effort to meet with Respondent was made until January 2, 1952, at which'time William H. White, then a union organizer and since February 1952 a district representative , presented Frohman with a copy of a proposed contract . The latter informed White that he would examine the contract and get in touch with him. Not receiving any word from Frohman, White called Respondent's office on January 16 and was referred to Taylor who informed him that he, Taylor, was the man to talk to in regard to the proposed contract. Taylor then told him that he had not had time to go over the contract 11d that it might "take 30, 60 or 90 more days to go over the proposals," and that he could not fix a defi- nite date for a meeting . When White remonstrated that under the circumstances he was forced to bring charges for failing to bargain, Taylor "told him to go ahead and do what[he] felt like doing." On January 22, White, by letter, requested a definite date for a meeting. On the following day, he received a telephone call from Abe Aronovitz, a member of the law firm of Aronovitz & Aronovitz,4 who advised him that he had been retained to represent Respondent. The two men arranged for a bargaining meeting to be held in Aronovitz' office on January 29 at 7:30 p. m. Aronovitz and Taylor appeared for Respondent at that conference and White for the Union. Aronovitz informed White that he was acting as a "mediator" and that if an impasse were reached in the negotiations he would attempt to reconcile the differences and recommend a solution to Respondent . He cautioned , however , that he could not guarantee the acceptance of his recommendation as the Company "had the final say in all matters." No specific issues were discussed. Though Taylor commented "that 80 percent of the contract was pretty good," he stated there were 4 items on which the Company would not negotiate--the checkoff, grievance procedure , seniority , and wages . When Taylor and White " got into an argument," Aronovitz interceded and "tried to smooth things over," following which the parties agreed to meet again on February 5 That meeting was attended in behalf of management by Taylor and Aronovitz, and in behalf of the Union by White and employees Nash and Marcoux. Taylor objected to Nash as a member of the Union's committee because he was "anti-capitalist," that he would not negotiate on the four items above mentioned , insisted upon a probationary period of 1 years with the unfettered right to hire and fire at will, and informed the union representatives that "both he and Mr Frohman didn ' t have to keep the plant open , but were so financially fixed that they could close the plant and do nothing else." He also stated on this, and several other occasions, including the October meeting hereafter described, "that all the Company was required to do by law was to sit there and talk to [the Union], that he did not have to agree to anything as long as he talked to (thern] And, as long as he did talk to them, he was negotiating as required by law." Apparently Aronovitz was disturbed by Taylor's attitude and approach to the problem at hand and suggested that "meetings in the futureD)e held] without Mr. Taylor being present" and that the negotiators "might be able to make some progress if [they]met without Mr. Taylor." Another meeting was scheduled for February 7, 1952.6 That meeting was held and attended only by Aronovitz, Nash, and White. The Union's representatives expressed a failure to understand why Respondent wanted such a long probationary period. Aronovitz told them at this meeting, and at several others, that "the Company was definitely afraid of labor unions and that he would have to sell them any- thing that they would agree to", that if the Union could show him any "legal decision or any law regarding any clauses that the Union had proposed," they would be included in his recommendation. Aronovitz, who had served as counsel for the Miami Civil Service Commission, explained that body's 1-year probationary system, urged the Union to accept such a period , and suggested that at a later date the Company would recede from its demand for a 1-year probationary period. A 6-month period was discussed, without being offered, 4Unless otherwise noted, all references herein to Aronovitz are to Abe Aronovitz. 5 Taylor testified that at either the first or second meeting "the original position that [he] took with regard to the probationary period was that[ Respondent] would require an 18-month probationary period with the right to hire and fire employees. The position was then changed to a 12-month request, after some discussion." 6Unless otherwise indicated, all references to dates are to the year 1952. THE FROHMAN MANUFACTURING CO., INC. 13 19 but Aronovitz said he could give no assurance that Respondent would accept it, even if the Union did. White emphasized the fact "they had to have a contract that was no worse than the contracts other people had in the area and that the Company's proposal would leave the men without any job security whatsoever." The conference adjourned to meet again on February 11. The meeting of February 11, attended by Aronovitz, Taylor, Nash, and White, was devoted to a paragraph-by-paragraph discussion of practically the entire contract submitted by the Union. When the section pertaining to wages was reached, an acrimonious discussion between Taylor and White ensued. Aronovitz interceded by suggesting that the subject of wages be laid aside and promised to talk to White "about that later on and see if [they couldn't] work that out " The actual negotiation of wage scales was never resumed. The checkoff requested by the Union in article V of its proposal was in the form usually found in labor bargaining contracts and no objections to its form was made by Respondent. However, Taylor informed the negotiators that the Company "would have nothing to do with a checkoff." that the Union "had stewards or officers that took care of those duties and the Company wouldn't be burdened with [the expense of] doing that type of work." Respondent never receded from that position. The Company agreed to the Union 's proposal of 1 week's vacation to employees employed from 6 months to a year, and 2 weeks to those engaged longer. There was disagreement, however, on other minor phases of the vacation proposals and paid holidays. With respect to the grant of leaves of absence. Taylor stated that Respondent "would give no leave what- soever for . . . official union business," or illness of the employee. On other demands, "the Company would grant leaves when it saw fit, or when it saw there was a case that required granting of leave." The Union's proposal on seniority rights to govern "promotion within the bargaining unit, transfer, decrease or increase of the working force" was that "length of service ... in the plant" should be determinative of such seniority status. Taylor, on the other hand, "wanted a division set up for multiple machine men[capable of running all the machines in the various departments]which would have a higher priority or seniority," so that Respondent, in case of a layoff, could keep the "multiple machine men," regardless of plantwide seniority. No agreement was reached. With respect to article XVIII of the proposal which provides that the "Company shall place bulletin boards at appropriate locations m the plant for use of the Union," Taylor said, "Nothing doing.... [ He said] in no uncertain terms that[the Union]could put up notices and bulletins that they wanted to in the union hall, that[they] had the union hall for that." Article XXIII of the Union's proposal dealing with grievances provided that the procedure established in the article was to be utilized to resolve "any dispute between the Company and the Union, or between the Company and any employee concerning the effect, interpretation, application, claim or breach or violation of this agreement, or any other dispute which may arise between the parties." The procedure proposed by the Union for resolving differences arising from such grievances was one commonly found in contracts of this nature, with arbitration as the final step. Taylor insisted that the Union "show them the law that required a grievance procedure before he would accept it,,, a demand he made in discussing other articles of the proposal. At the hearing, Taylor testified that his objection to the article was based on the fact that he "could not afford to be tied up in ... vindictive . . . nuisance grievance procedures " When asked by the Trial Examiner to describe the type of grievance he felt "ought not to be committed to a grievance procedure," Taylor gave two illustrations. The first would be a situation where employee A's classification was raised and employee B files a grievance on the ground that he is the one who is entitled to the "raise." The second example cited would be the grant of overtime work and pay to employees in one de- partment followed by complaints from an employee in another department that he was not afforded a similar opportunity. No agreement on grievance scope or procedure was reached. By article XXVII of its proposal, the Union agreed not to "call or sanction any strike or concerted stoppage during the term of [the] agreement except for (1) the Company's failure to abide by the Arbitration Clause- -or (2) the Company's failure to comply with any decision of any Board of Arbitration established--within five(5) working days after such decision of a Board of Arbitration or (3) failure of the parties to reach agreement on wage reopening which has taken place pursuant to the Wage re-opening clause" of the agreement. Taylor objected to the exceptions noted in the article, and insisted upon enlarging its coverage so as to make the Union "financially responsible, and ... [agree] to reimburse the Company for i 1320 DECISIONS OF NATIONAL LABOR RELATIONS BOARD any damages or loss that was sustained" by it by reason of any strike, whether authorized or wildcat. During the meeting of February 11, the length and effect of the probationary period demanded by Respondent dominated the discussions and presented the greatest obstacle to progress. This was due to the fact that during such probationary period Respondent insisted upon having not only the unequivocal right to hire and fire at will but its establishment would also have the effect of nullifying other provisions of the contract during the same period, e. g., seniority, grievance, etc. During this and all the other meetings the shortest probationary period which any representative of Respondent would agree to was 1 year, it being the Company's contention that it would take at least that long for Respondent to train its employees, determine whether they were capable of performing their work properly, and were otherwise acceptable as employees. Taylor testified that in 1951, Respondent suffered a substantial loss due in large part to rejects which in turn were caused by "lack of care, lack of interest, in many respects carelessness- -that is what you have to school into them--that's why we need the probationary period." The Union, on the other hand, insisted that the longest probationary period in the industry was 90 days, with most of such periods being only 30 or 60 days, and that the shorter periods were sufficient to give Respondent the opportunity to determine the suitability of its employees. At the close of the February 11 meeting, unlike the previous sessions, no date was fixed for a future conference. On February 20, Nash and W. W. Fitzgerald went to Aronovitz' office "to discuss the Nash situation," the latter having been discharged under circumstances detailed hereafter During the conference, the probationary period was discussed and Fitzgerald, who had been Grand Lodge district representative of the Machinists since 1941, tried to convince Aronovitz of the unreasonableness of a 1-year probationary period, and that a 30- or 60-day period was sufficient for the Company to determine the competency and capacity of newly hired employees. Aronovitz repeated that the Company "was afraid of unions, and they needed time to get acquainted with unions." After some discussion, Aronovitz stated he would recommend a 6-month probationary period but added: "I want it understood it will be just a recom- mendation. I don't have the authority to say it will be final and binding or not. As far as I am concerned, I don't have that authority.",? On March 6, Aronovitz wrote White asking for "a schedule of salaries ... earned by mem- bers of the Union in manufacturing plants similar in size and located in [the Miami] area." White replied on March 17 giving him the rates for machinists, specialisth, and tool and die makers, and made a counterdemand "for a listing of all employees in the unit, with their rates of pay." He also advised Aronovitz that he would contact him "for a meeting, preferably early [the following] week," but that if Aronovitz had some other date which he preferred, White would be pleased to hear from him at either his office or home. On March 18, the Union's Grand Lodge representative at Atlanta, Georgia .8 filed a charge with the Board's Regional Director at Atlanta alleging, inter alia, that Nash had been dis- criminatorily discharged on February 13, 1952, and that Respondent, since October 29, 1951, had refused to bargain collectively with the Union. Neither the Union nor Respondent made any further attempt to contact the other until Sep- tember 23, when Fitzgerald sent a letter to Frohman demanding a resumption of negotiations and suggesting that the meetings commence on September 29. Taylor acknowledged the letter on September 26 and advised Fitzgerald that he was leaving Miami that evening to be gone about 10 days. Taylor's letter continued as follows: In view of my absence, I have sent a copy of your letter to our attorneys Aronovitz and Aronovitz, and instructed them to get in touch with you, and to go into discussion where we left off some months ago. As I recall the situation, Mr. White and our attorneys were to discuss in detail the tenets of the contract and then, I, the union representative, and representative men from the job were to meet and iron out disputed items. After the above was completed, it was also understood that I would bring a rewritten contract to my board of directors for discussion and approval, and that your representatives were to present to all the men of the job the revised contract for discussion. In this we even- tually arrive at a meeting of the minds. 7 Taylor testified that Aronovitz never "recommended .. , or mentioned a 6-month pro- bationary period to him." a White's residence and office were in Miami. THE FROHMAN MANUFACTURING CO., INC. 1321 Pursuant to telephone arrangements made by Aronovitz, the parties met on October 3 in the latter's office. Present were Sidney Aronovitz, Grand Lodge Representative Estey, and White. Without effect on the negotiations, there was a discussion pertaining to the situation . . . created by a petition filed by a CIO union for representation of [Respondent's] employees." White again asked for the wage information requested in his letter of March 17, and Sidney Aronovitz told him that while he believed the requested information had been prepared, it was not available at that time. After agreeing to meet again on October 8, the conference was adjourned. The October 8 meeting, the last held between the parties, was attended by Sidney Aronovitz, Taylor, White, and Estey. At that meeting Sidney Aronovitz delivered to White the wage infor- mation requested on March 17. A compositeviewof all who were in attendance at that meeting compels the finding that the only contract provision discussed that day was the length of the probationary period Taylor testified that, concerning the probationary period, he made the following statements to the union representative at the October 8 meeting: "We offered you a year. Will you take 9 months--? They said they would not I asked if they would take 6 months as a probationary period, and they said no " Concerning that subject, Sidney Aronovitz testified as follows. I mentioned twelve months, . . . and then I, [asked] him, "Would you consider going ahead with a 6-month period? " He did not answer it. I do not recall Mr. Taylor stating at that time [anything about a 6-month period] but I do recollect that I did.... At that meeting (White did not offer any probationary period. All he did in this brief meeting was discuss 30, 60 and 90 days, but never agreed to 30, 60 or 90 days. On the entire record, and my observation of the witnesses. I am convinced, and find, that at no time during the entire negotiations, and especially during the meeting of October 8, did Respondent indicate that it would accept a probationary period of less than 1 year. While I have found that during the meeting of February 7 there was "discussion" of a 6-month period, Respondent, in its brief, admits "there is no doubt but that the Company did not offer as such a six months period." That meeting was not attended by Taylor and the possibility of such a shorter period serving as a compromise, according to Taylor's own testimony, was never recommended by, or even discussed with, Aronovitz. Aronovitz' failure to do so is extremely significant because it was the Company's insistence upon the 1-year period that was at all times the most serious obstacle to successful negotiation. Accordingly, I can only conclude that Aronovitz' failure to ever recommend to, or even discuss with, Taylor that the latter consider a 6-month period was because Aronovitz realized how futile such recommendation would be, and that Taylor had definitely and finally committed Abe Aronovitz, Sidney Aronovitz, as well as Respondent itself, to a probationary period of not less than 1 year. Taylor's testimony that on October 8 he asked the union representatives if they would accept a 6- or 9-month period is impeached by his own affidavit and is not credited 9 In that affidavit of 21 pages, General Counsel's Exhibit No. 13, given to a Board representative on October 31, 1952, 10 Taylor summarized the position Respondent took during the entire negotiations. Nowhere in that affidavit is there any suggestion or mention of a 6-month pro- bationary period, or any other than a period of 1 year. With reference to article XVI of the Union's proposal, dealing with grievances, Taylor's affidavit starts: "Acceptable only if there were to be a year probationary period for each employee during which time none of the provisions of Article XVI would apply." Dealing particularly with the meeting of October 8, Taylor's affidavit states that "We then discussed at great length the need for a year probationary period for all workers, but there apparently was a stumbling block which Mr. White and Mr. Estey could not agree to, not because it would work any undue hardship on the men in the Union, but that it would be, in the eyes of their headquarters, an inferior contract and, as mentioned before, they would not jeopardize their standing to sign a contract which had that long a probationary period. Nothing else was discussed [pertaining to any provision of the contraccJ." (Emphasis supplied.) 9Sidney Aronovitz testified that he did "not recall" Taylor saying anything about a 6- month period at the October 8 meeting. AD Ruling on the advisability of this exhibit was reserved at the hearing. It is hereby admitted into evidence. 1322 DECISIONS OF NATIONAL LABOR RELATIONS BOARD While Sidney Aronovitz may have asked at the October 8 meeting whether the Union would "consider going ahead with a 6-month period," I find that this inquiry was intended, at most, to ascertain whether the Union would consider any period longer than the 90 days which it always contended was the maximum probationary period in the industry, and not as any indication by Sidney Aronovitz that the Company had abandoned, or would recede from, its insistence upon a 1-year period. Several factors have brought me to this conclusion. First, both Abe and Sidney Aronovitz lacked authority to bind the Company to any provision in the contract, of which lack the Union had several times been advised in no uncertain terms. Second, Taylor's adamant position throughout the entire negotiations, including the meeting of October 8, that Respondent would not accept any period less than 1 year. The Union's representatives being reasonably of the opinion on October 8 that Respondent would not recede from Taylor's position with respect to the probationary period, the meeting "broke up" and further negotiation was never resumed. 2. Concluding findings The relevant mandate of the Act with respect to the duty to bargain is simple in language, but broad in its import. Both sides are required to "meet at reasonable times and confer in good faith with respect to wages, hours, and other terms and conditions of employment, or the negotiation of an agreement, or any question arising thereunder. ..."u While the duty to bargain "does not compel either party to agree to a proposal or require the making of a concession,"12 it is well settled that the Act requires the employer to bargain in good faith with respect to the subjects above mentioned and with a sincere desire to reach agree- ment. Willingness to meet, or merely meeting with a union, does not satisfy the statutory obligation to bargain. On the other hand, Respondent's failure to make concessions, or the fact that an impasse was reached on matters within the scope of compulsory bargaining, do not, standing alone , establish the bad faith which is violative of the Act. The real issue is whether or not Respondent was dealing in good faith, or engaged in mere surface bargaining without any intent of concluding an agreement on a give-and-take basis. N. L. P. B. v. Whit- tier Mills Co., 111 F. 2d 474 (C. A. 5), N. L. R. B. v. Athens Manufacturing Co , 161 F. 2d 8 (C. A. 5); N. L. R. B. v. Tower Hosiery Mills, Inc, 180 F. 2d 701 (C. A. 5). Applying the foregoing principles to the facts of this case, I have concluded, on the entire record, that Respondent did not negotiate with the Union in good faith as required by the Act. a. Grievances The right to file and process grievances has long been recognized as a most stabilizing factor in the field of labor-management relations. Grievances concern themselves with the adjustment of wage rates; with rulings on seniority, layoffs, and rehires; with discharges and other disciplinary measures, with merit increases, transfers, promotions, the operation of an incentive system, and countless other measures. Whether they are cast in the form of an interpretation of the agreement or not, any adjustments made of these questions affect the whole plant. The rulings tend to become precedents and may eventually constitute a body of industrial law supplementing the formal agreement. Is Accordingly, from the time of the passage of the Act in 1935, both the Board and the courts have uniformly held that "grievances concern conditions of work [and as such]are proper subjects for collective bargaining. "14 By refusing to consider any grievance for a period of 1 year after an employee is first engaged, Respondent imposed a condition of employment in derogation of the duty imposed on it by the Act. The underlying "purpose and policy of the Act ... to provide orderly and peaceful procedures for preventing the interference by either [employer or employees) with the legitimate rights of the other" Is would be completely frustrated if Respondent were permitted to arrogate to itself the right to dispose unilaterally of all disputes that might arise affecting "terms and conditions of employment." "Section 8 (d) of the Act. n Ibid. 13 See Cox: Some aspects of the Labor Management Relations Act, 61 Harv. L. Rev. 274, 320. 14Cities Service Oil Company, 25 NLRB 36, 44, enfd. as modified on another ground, 122 F 2d 149; Bethlehem Steel Company, 89 NLRB 341. 15 Section 1 (b) of the Act. THE FROHMAN MANUFACTURING CO., INC. 1323 Respondent ' s denial of the right aforementioned is aggravated by 2 factors . First, the Union's proposal was for a contract termofonly 1 year . Thus, at least for employees engaged after the execution of the contract, neither the employees, nor the Union on their behalf, would have any right to file or process a grievance during the entire term of the contract. The second aggravating factor is the no-strike clause demanded by the Company. Here, Respondent was not only insisting upon a surrender of their right to have grievances ad- justed through an orderly and well-established procedure , but it was also demanding a re- linquishment by the employees of their legal right to withhold their labor in connection with any dispute or grievance which might arise . The totality of the demands mode by the Re- spondent with respect to grievances constitutes not only a rejection of the " orderly and peaceful procedures for preventing the interference by either [employer or employees]with the legiti- mate rights of the other ," 16 but provides instead a road that can only lead to industrial strife. b. The no-strike clause As previously found, Respondent insisted upon a no-strike clause which would make the Union financially responsible for "any damage or loss " sustained by the Company by reason of any strike, whether authorized, or wildcat By seeking to impose liability on the Union for a strike which the Union did not authorize, sanction, or could effectively control, Re- spondent erected an effective obstacle to the successful negotiation of a contract and clearly evinced the bad faith proscribed by Section 8 (a) (5) of the Act. Cf. Standard Generator Service Co., 90 NLRB 790, enfd. 186 F. 2d 606 (C. A. 8), Brown & Root, 86 NLRB 520 c. Unilateral wage increases The Company's own records show that from October 19, 1951. when the Union won the election, through February 1952, during the latter portion of which period the parties were carrying on their negotiations, Respondent unilaterally, and without even consulting the Union , granted approximately 80 wage increases ranging from 5 to 15 cents an hour, most of them at about 10 cents. Approximately 25 of these increases were granted either on February 4, 1952, or on February 11, 1952. It was only a few days later, on February 13, that a petition to "get the Union out" of the plant was circulated among the employees. From March 1. 1952, through July 1, 1952, Respondent granted more than a hundred additional increases. In its brief. Respondent argues that these "wage increases" can only be deemed to be violative of the Act if the General Counsel has established that "they were given without rational basis or predicate, not in accordance with the needs of the Company, and that they were given for the express purpose of embarrassing the Union with its[members], and to dis- credit the Union thereby." Because Respondent has misconceived the duties imposed on it by the Act, I find it un- necessary to determine whether these increases were made for the "express purpose" above suggested . Once a union has been designated as a statutory representative and an employer is put on notice of the union's majority status, the Act not only imposes upon him the affirmative duty to bargain collectively with the designated representative with respect to wages and terms of employment , but requires him to abstain from direct dealings with individual employees 17 Whether expressly intended or not , dealing with individual employees with respect to wages and terms of employment can only have the effect of bringing employees to the conclusion that they have no need for a collective-bargaining agent. By unilaterally granting individual wage increases after January 2, 195218 Respondent breached its duty to bargain thereon with the Union as required by the Act, and thereby violated Section 8 (a) (5) and ( 1) thereof. d. The 1-year probationary period As has previously been found, Respondent insisted throughout the negotiations that it would not accede to anything less than a 1-year probationary period, which all the parties understood 16 mid. i7N. L. R. B. v. Crompton-Highland Mills, Inc., 337 U. S. 217; Reeder Motor Company, 96 NLRB 831. 18 The earliest violative date alleged in the complaint. 1324 DECISIONS OF NATIONAL LABOR RELATIONS BOARD would give Respondent the unfettered right, during that period, to hire and fire at will and without resort to any grievance procedure. It was the Company's contention that because of the specialized nature of its business and the scarcity of competent machinists in the Miami area it required 1 year to train its employees and determine whether they were qualified and suitable in every respect to continue their employment. In arriving at my conclusion on the effect that Respondent's position on this and other subjects had on the negotiations, I have been mindful that both parties are free to drive as "hard" a bargain as each thinks to its own advantage, and that the Board may not "sit in judgment upon the substantive terms of collective bargaining agreements." N. L. R. B. v. National American Insurance Company, 343 U. S. 395. "At the same time, it seems clear that if the Board is not to be blinded by empty talk and by the mere surface motions of col- lective bargaining, it must take some cognizance of the reasonableness of the positions taken by an employer in the course of the bargaining negotiations." N. L. R. B. v. Reed & Prince Manufacturing Company, 205 F. 2d 131 (C. A. 1). Though a great deal of conclusory testimony was offered by Respondent in its attempt to establish that the, nature of its business required services more highly skilled than that demanded in the manufacture of the more common type of gears, consideration of the entire record, and an inspection trip through the plant where I observed the men and machines at work, have left me unconvinced that Respondent's insistence upon the 1-year period was motivated in good faith Taylor testified that Respondent's financial lbss in 1951 was due to the employees' "lack of care, lack of interest, in many respects carelessness, ... that is what you have to school into them ... that's why we need the probationary period." Superintendent Johnson, however, testified that within 60 days after a man is first em- ployed, he was "able to weed out most of the dead wood." In support of that experience and opinion he was unable to remember a single employee "who appeared to be able to work 60 days who [wasn't] able to do it after that." Strangely enough, too, in August 1951, when Re- spondent was negotiating for a contract with an "inside" union formed at the suggestion of the Company, Frohman, its president, and who devoted practically all his time to production, informed the negotiators that he "would require between 3 and 4 months for a probationary period." The employment record and wage experience of Respondent's employees reflected by General Counsel's Exhibit No. 5 are also significant on this phase of the case. The first 4 pages of that exhibit, prepared in its entirety by Respondent, reflects the "pay differential" for the period January 1. 1951, to August 31, 1952, of all employees on its payroll on the latter date The last 2 pages of the exhibit give the same information for the same period con- cerning employees who were no longer working for the Company on August 31, 1952. The exhibit establishes that with respect to the 67 employees in the unit in August 1952, of whom approximately 90 percent were hired after June 1, 1951, 59 received a total of approximately 150 wage increases between July 1, 1951, and August 31, 1952, 55 of such increases being granted within the first 90 days after the date of original employment. Of the 8 employees on its payroll at the end of August 1952 and who received no increases during the period covered by the exhibit, 1 was employed in August 1951, 2 in October 1951, and 1 each in November and December 1951. Turning now to the 52 employees in the unit no longer working for the Company on August 31, 1952, we find that only 16 received no increases during the period of their employment However,, neither the exhibit nor 'the remainder of the record establish how many of these were voluntary separations, or the length of their service. Of the remaining 36 no longer employed by the Company, the exhibit establishes that they received approximately 90 increases during the period of their employment, about half of which were granted within 90 days after the date of first employment. With references to these increases, Respondent, in its brief, asserts that the Company "did not grant a general wage increase of x number of cents per hour to every employee in the plan. . [Instead, these increases were]in line with what the Company has continually stated as being increases necessary to recognize the higher skills and classification of the workers." (Emphasis supplied.) Accordingly, I can only conclude that by the time Respondent granted such increases, approximately half of which were granted within 90 days after the recipients thereof were first hired, Respondent had sufficiently apprised itself of the ability and suitability of its employees to warrant such increases That wage increase experience, when coupled with awareness that every employer has the unfettered right, at all times, to discharge employees who do not possess the demanded skill or competence, confirms my conclusion that Respondent's insistence upon a 1-year probationary period was not for the THE FROHMAN MANUFACTURING CO., INC 1325 reasons ascribed by it, or made in the good faith demanded by the Act Rather, it is my conclusion that it was imposed as an effective block to avoid successful negotiation and as a means of discrediting the Union with its membership. Other Indicia of Bad Faith Other positions taken by Respondent during the negotiations add weight to the ultimate conclusion that the Company did not bargain in good faith as required by the Act. Thus, Taylor's statements made at the January 29 and February 5 meeting that he would not negotiate on the checkoff, grievance procedure, seniority, and wages were, as has previously been pointed out, in derogation of a duty imposed by the Act. Indicative of a lack of good faith to establish the harmonious relationship necessary to collective bargaining was Respondent's refusal to grant the Union the right to maintain a bulletin board at the shop, a common industrial practice Such a position, "in the context of this case, indicates Respondent's basic un- willingness to accept the principle of collective bargaining and further strengthens [my] conclusion that Respondent has not bargained in good faith." N. L. R. B, v Reed & Prince Manufacturing Co , supra. Also indicative of bad faith was Respondent's insistence that it be shown the law establishing that the Company was required to accept a grievance procedure and other provisions of the contract before it would negotiate thereon The requisites for good-faith bargaining cannot be found when the lack of legal requirement to bargain is upper- most in Respondent's mind. An employer who takes such a position on a bargainable issue can hardly approach the discussion of this subject with an open mind and a willingness to reach an agreement. Nor can I be unmindful of Taylor's adamant position that he "would have nothing to do with a check-off," whereas in the prior negotiations with the "inside" union, Frohman had readily agreed to such a checkoff On the entire record and my observation of the demeanor of the witnesses. I find that since January 2, 1952, Respondent has failed and refused to bargain with the Union in good faith with respect to wages, hours, and other terms and conditions of employment and thereby vio- lated Section 8 (a) (5) and 8 (a) (1) of the Act. See Majure Transport Co v. N. L. R. B., 198 F. 2d 735 (C. A.5) B. The discharge of Nash During the afternoon of a day early in February 1952, following a bargaining meeting that Nash attended at Aronovitz' office, Ovid Johnson, the plant superintendent, accused Nash of having brought Union Representative White into the plant at night in violation of company rules. Nash denied the incident. The 2 men engaged in a heated argument during the course of which Johnson called Nash a cheat, a liar , 2 vile and indecent names, and told him that he -(Nash) "was working to break the Company, that [he] was trying to gain[his] own ends in[his] dealings, that the only thing that the Union was going to accomplish with the Company was to disrupt the entire proceedings , and if the Union made the going too rough for them, they would lock up the doors, sell the machinery and go play golf, that all fohnson] wanted Iiim] to do was make one false move and he would fire[him], that' s all he would wait for[him]to do." 9 On February 13, Nash left his machine to get a piece of stock in another building. Not finding the employee who could secure the material that he needed, he turned to leave the building and observed employees Lyons and Curry engaged in conversation Lyons called to him and asked what Nash knew about "this petition" which Curry had asked Lyons to sign. Nash was then aware that a petition was being circulated in the plant "to get the [Union] out" and told Lyons that he would be acting against his own cause if he signed the petition, and said to Curry: "If I were you I wouldn't go through with this " Curry stated that he was about to ask Nash to sign the petition to which the latter replied that if he did, he (Nash) would "probably knock [him] over the head with a hammer " Curry rejoined that, in that event, he had "the difference in the car." Nash called him several vile and indecent names and told him that if he "went through with [the petition, Nash]would see that[his]life wouldn't be worth two cents." Nash thereupon turned and left the building Curry informed Johnson of the incident who sent him to Taylor where Curry reported that "he had been threatened bodily harm." Taylor "discussed the seriousness of the 19 Johnson did not deny this testimony. He admitted that he "may have been wrong" in his accusation that Nash had brought White into the plant and also admitted that there had been an exchange of "various hot words." 337593 0 - 55 - 85 1326 DECISIONS OF NATIONAL LABOR RELATIONS BOARD situation" with Frohman. Later that day Nash was called to Taylor's office and found Taylor, Frohman, and Johnson in attendance Taylor accused Nash of having threatened to kill Curry. Curry was called in to confront Nash and accused the latter of having "threatened to beat his head in with a hammer." Nash admitted that he used the words last quoted, but claimed they were used "jokingly." Thomas Winn, who was working at a lathe about 12 feet from where the incident took place, was called to the office and reported that all he had heard of the conversation was Nash's threat that he would hit Curry in the head with a hammer 20 Taylor informed Nash that because of the disturbance and the effect it would have on the men in the plant, he was compelled to ask for his resignation. When Nash declined to resign , he was discharged On the entire record I am convinced and find that Nash was discharged for the reasons assigned by Taylor. True, Johnson's threat early in February that he was only waiting for Nash to "make one false move and he would fire him," when coupled with Nash's union activities , creates a suspicion that he may have been discharged because of that activity and that the reason assigned was a mere pretext But violations of the Act may not be found on mere suspicion. Punch & Judy Togs, Inc , 85 NLRB 499 Union membership, office, or activity does not constitute a grant of license to utter threats of bodily harm, nor does it immunize against plant discipline. On the testimony and my observation of the participating witnesses, I am convinced that Nash seriously, and not jokingly, threatened Curry with bodily harm and that Nash was discharged therefor by Taylor in the interest of plant discipline. Accordingly, I shall recommend that the allegations of the complaint pertaining to his discharge be dismissed C. Interference, restraint, and coercion Notwithstanding the finding just announced, I find that the threats made by Johnson as described in the first paragraph of section III, B, above, were violative of Section 8 (a) (1) of the Act. Though Respondent had the right to "lock up the doors... if the Union made the going too rough" economically for the Company, Johnson's warning that he was only waiting for Nash to "make one false move" and he would be fired , considered in its context, and while Nash was engaged in negotiation with the Company, clearly was intended to dis- courage Nash by a veiled threat of reprisal if he continued to conduct himself in behalf of the Union as t:e had in the past. By such conduct , Respondent interfered with , restrained, and coerced its employees in the exercise of rights guaranteed by the Act and in violation of Section 8 {a) (1) thereof. Upon the basis of the above findings of fact and upon the entire record in the case, I make the ;ollowing: CONCLUSIONS OF LAW 1. The activities of Respondent set forth in section III, above , occurring in connection with the operations of Respondent described in section I, above, have a close , intimate, and substantial relation to trade, traffic, and commerce along the several States and tend to lead to labor disputes burdening and obstructing commerce and the free flow thereof. 2. The Union is a labor organization within the meaning of Section 2 (5) of the Act. 3. All production and maintenance employees of Respondent at its plant in Miami, Florida, including shipping and receiving clerks and their helpers, material handlers , truckdrivers, porters, janitors, and laborers , but excluding office clerical employees , draftsmen , guards, watchmen , and supervisors as defined in the Act , constitute a unit appropriate for the purposes of collective bargaining within the meaning of Section 9 (b) of the Act. 4 At all times since October 19, 1951, the Union has been and now is the exclusive representative of all the employees in the aforesaid unit for the purpose of collective bargaining within the meaning of Section 9 (a) of the Act. 5. By failing and refusing at all times on and after January 3, 1952, to bargain collectively with the Union as the exclusive representative of the employees in the aforesaid unit. Re- spondent has engaged in and is engaging in unfair labor practices within the meaning of Section 8 (a) (5) and (1) of the Act 20 Lyons had already left the plant for the day. LLOYD A. FRY ROOFING COMPANY 1327 6. By interfering with, restraining, and coercing its employees in the exercise of the rights guaranteed in Section 7 of the Act, Respondent has engaged in and is engaging in unfair labor practices within the meaning of Section 8 (a) (1) of the Act. 7. The aforesaid unfair labor practices are unfair labor practices affecting commerce within the meaning of Section 2 (6) and (7) of the Act. 8. Respondent has not violated the Act by discharging Wilmar J. Nash. ,[Recommendations omitted from publication.] 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, we hereby notify our employees that: WE WILL NOT threaten our employees with reprisals because of their union desires and activities. WE WILL NOT in any other manner interfere with, restrain, or coerce our employees in the exercise of their right to self-organization, to form labor organizations, to join or assist International Association of Machinists, Lodge No. 613, A. F.L., or any other labor organization, to bargain collectively through representatives of their own choosing, to engage in concerted activities for the purpose of collective bargaining or other mutual aid or protection, or to refrain from any or all such activities except to the extent that such right may be affected by anagreement requiring membership in a labor organi- zation as a condition of employment as authorized in Section 8 (a) (3) of the Act. WE WILL bargain collectively, upon request, with the above-named union as the ex- clusive representative of all our employees in the bargaining unit described below with respect to rates of pay, wages , hours of employment, and other conditions of employment, and if an agreement is reached, embody such understanding in a signed contract. The bargaining unit is: All production and maintenance employees employed at our Miami, Florida, plant including shipping and receiving clerks and their helpers, material handlers, truckdrivers, porters, janitors, -and laborers, but excluding office clerical em- ployees, draftsmen, guards, watchmen, and supervisors as defined in the Act. THE FROHMAN MANUFACTURING CO.,.INC., Employer. Dated ................ By.............................................................................................. (Representative) (Title) This notice must remain posted for 60 days from the date hereof and must not be altered, defaced, or covered by any other material. LLOYD A. FRY ROOFING COMPANY and LOCAL 504, GENERAL WAREHOUSEMEN, SHIPPERS, PACKERS, RE- CEIVERS, STOCKMEN, CHAUFFEURS AND HELPERS, IN- TERNATIONAL BROTHERHOOD OF TEAMSTERS, CHAUF- FEURS, WAREHOUSEMEN AND HELPERS OF AMERICA, A.F.L., Petitioner. Case No. 1-RC-3412. February 25, 1954 DECISION AND DIRECTION OF ELECTION Upon a petition duly filed under Section 9 (c) of the National Labor Relations Act, a hearing was held before George A. 107 NLRB No. 274. Copy with citationCopy as parenthetical citation