The O.K. Trucking Co.Download PDFNational Labor Relations Board - Board DecisionsJun 18, 1990298 N.L.R.B. 804 (N.L.R.B. 1990) Copy Citation 804 DECISIONS OF THE NATIONAL LABOR RELATIONS BOARD The O .K. Trucking Company and Local 299, Inter- national Brotherhood of Teamsters, Chauffeurs, Warehousemen and Helpers of America, AFL- CIO. Cases 7-CA-29256 and 7-RC-18967 June 18, 1990 DECISION AND ORDER BY CHAIRMAN STEPHENS AND MEMBERS CRACRAF F AND DEVANEY On December 15, 1989, Administrative Law Judge Marvin Roth issued the attached decision. The Respondent filed exceptions and a supporting brief. The National Labor Relations Board has delegat- ed its authority in this proceeding to a three- member panel. The Board has considered the decision and the record in light of the exceptions and brief and has decided to affirm the judge's rulings, findings," and conclusions2 and to adopt the recommended Order3 as modified. ORDER The National Labor Relations Board adopts the recommended Order of the administrative law judge as modified and orders that the Respondent, The O.K. Trucking Company, Dearborn, Michi- gan, its officers, agents, successors, and assigns, shall take the action set forth in the Order as modi- fied. 1. Insert the following as paragraph 2(b) and re- letter the subsequent paragraphs. i The Respondent has excepted to some of the judge's credibility find- ings The Board 's established policy is not to overrule an administrative law judge's credibility resolutions unless the clear preponderance of all the relevant evidence convinces us that they are incorrect Standard Dry Wall Products, 91 NLRB 544 (1950), enfd. 188 F.2d 362 (3d Cir 1951) We have carefully examined the record and find no basis for reversing the findings The Respondent excepts to the judge's finding that "terminal manager Summer had authority to and did hire and lay off or discharge terminal employees ." The Respondent's district manager, Connelly , testified, how- ever, that Summer hired Garza and possessed authority to lay off em- ployees and to change their hours We note that the three office clerical employees who received a 10- percent wage cut in December 1987 did not include Garza , who was not employed by the Respondent at that time 2 To the extent that the judge may have relied on the subjective re- sponses of employees Alcoser and Garza to Connelly 's interrogations re- garding their union activity, we note that the Board does not consider such subjective reactions , but rather whether, under all the circum- stances, the interrogation reasonably tended to restrain , coerce, or inter- fere with rights guaranteed under the Act See generally American Freightways, 124 NLRB 146 (1959) We find that under this standard Connelly's interrogations of Alcoser and Garza were coercive We correct the judge 's inadvertent statement at sec III,B, par 3 that Garza was "lawfully" rather than unlawfully terminated 3 In his recommended Order, the judge inadvertently recommends that the Regional Director be directed to open and count the challenged ballot of Garza , issue a revised tally, and "certify the results of the elec- tion" when he should have recommended that the Regional Director "issue the appropriate certification " 298 NLRB No. 116 "(b) Remove from its files any reference to the unlawful discharge and change of work schedule and notify the employees in writing that this has been done and that the discharge and changed work schedule will not be used against them in any way." 2. Substitute the attached notice for that of the administrative law judge. APPENDIX NOTICE To EMPLOYEES POSTED BY ORDER OF THE NATIONAL LABOR RELATIONS BOARD An Agency of the United States Government The National Labor Relations Board has found that we violated the National Labor Relations Act and has ordered us to post and abide by this notice. WE WILL NOT discourage membership in Local 299, International Brotherhood of Teamsters, Chauffeurs, Warehousemen and Helpers of Amer- ica, AFL-CIO, or any other labor organization by discriminatorily terminating , laying off, or chang- ing the work schedules of employees, or in any other manner disriminating against them with regard to their hire or tenure of employment or any term or condition of employment. WE WILL NOT threaten employees with layoff, loss of job security, or other reprisals because of their union activity. WE WILL NOT expressly or impliedly promise or grant wage increases or other benefits in order to discourage union activity, but this does not require us to withdraw any wage increase or other benefit that we have established. WE WILL NOT interrogate employes about their union attitude or activities or those of their fellow employees. WE WILL NOT tell employees to report on their union activities and sympathies or those of their fellow employees. WE WILL NOT in any like or related manner interfere with, restrain, or coerce you in the exer- cise of the rights guaranteed you by Section 7 of the Act. WE WILL offer Frances Garza immediate and full reinstatement to her former job or, if such job no longer exists, to a substantially equivalent posi- tion, and offer James Alcoser immediate and full reinstatement to his former work schedule, all without prejudice to their seniority or other rights and privileges previously enjoyed, and make them whole for losses they may have suffered by reason of the discrimination against them, with interest. O.K. TRUCKING CO. 805 WE WILL notify each of them that we have re- moved from our files any reference to Frances Garza's discharge and the change of James Al- coser's work schedule, and that the discharge and changed work schedule will not be used against them in any way. THE O.K. TRUCKING COMPANY John Ciaramitaro, Esq., for the General Counsel. Raymond J. Buratto, Esq., of Rochester Hills, Michigan, for the Respondent. Mr. Don Smith, of Detroit, Michigan, for the Charging Party. DECISION STATEMENT OF THE CASE MARVIN ROTH, Administrative Law Judge. These consolidated cases were heard at Detroit, Michigan, on October 4, 1989. The charge was filed on May 10, 1989, by Local 299, International Brotherhood of Teamsters, Chauffeurs, Warehousemen and Helpers of America, AFL-CIO (Union).' The complaint, which issued on June 16 and was amended at the hearing, alleges that The O.K. Trucking Company (Respondent or the Com- pany) violated Section 8(a)(3) and (1) of the National Labor Relations Act. The gravamen of the complaint is that the Company allegedly engaged in unlawful interro- gation, solicitation, threats, and promises, and grants of benefit, and terminated employee Frances Garza and changed the work schedule of employee James Alcoser because of their support for the Union. The Company's answer denies the commission of the alleged unfair labor practices. Pursuant to a petition filed on April 25 by the Union, and a Stipulated Election Agreement approved on May 9, an election was conducted on June 8 among the em- ployees of the Company in the following appropriate unit: All full-time and regular part-time office clerical employees employed by the Employer at its facility located at 26600 Van Born, Dearborn, Michigan; but excluding truck drivers, managerial employees, salesmen , confidential employees, guards, and super- visors as defined in the Act. The payroll period for eligibility purposes was the weekly period ending May 5. The tally of ballots showed that of three eligible voters, one voted for and one against the Union. The Company challenged the ballot of Frances Garza on the ground that she had been perma- nently laid off prior to the election, and was therefore in- eligible to vote. Her ballot was sufficient to affect the result of the election. Neither party filed objections to the election. As Garza's eligibility relates directly to issues in the unfair labor practice proceeding, the Re- gional Director, on June 16, ordered that the unfair labor practice and representation cases be consolidated for the purposes of hearing, ruling, and decision by an adminis- trative law judge. All parties were afforded full opportunity to partici- pate, to present relevant evidence, to argue orally, and to file briefs. Only the Company filed a brief. On the entire record in this case2 and from my observation of the de- meanor of the witnesses, and having considered the Company's brief, I make the following FINDINGS OF FACT I. THE BUSINESS OF RESPONDENT The Company, an Ohio corporation with its principal office and place of business in Cincinnati, Ohio, main- tains a terminal in Dearborn, Michigan, usually called the Detroit terminal,, which is the only facility involved in this proceeding. The' Company is engaged in business as a common carrier of general commodities. In the op- eration of its business, the Company annually derives gross revenues in excess of $1 million and annually de- rives gross revenues in excess of $100,000 for the trans- portation of freight and commodities in interstate com- merce, thereby acting as an essential link in interstate commerce. I find, as the Company admits, that it is an employer engaged in commerce within the meaning of Section 2(6) and (7) of the Act. II. THE LABOR ORGANIZATION INVOLVED The Union is a labor organization within the meaning of Section 2(5) of the Act. III. THE ALLEGED UNFAIR LABOR PRACTICES AND THE CHALLENGED BALLOT A. The Facts The Company has long had a collective-bargaining re- lationship with the Teamsters' Union, and is signatory to the National Master Freight Agreement and Central States Cartage Supplement (NMFA). On August 15, 1987, the Company took over the operation of its present Detroit terminal from another firm, Duff Truck Lines. The drivers and dock workers (some 15 to 20) were and continued to be represented by the Union and covered by the NMFA. The office clerical employees were not represented by any union, although the NMFA provides for coverage of office clerical emplpyees, including wage rates. The balance of the Detroit terminal staff consisted of Terminal Manager Bob Summer, two foremen, and two salesmen. Since August 1987, the Detroit terminal has had two full-time office clerical employees: Bonnie Summer, who is terminal manager Summer's wife, and James Alcoser. In September 1987 the Company added a part-time office clerical employee, Karen Barker, who worked until she quit her job in December 1988. On Jan- uary 23 the Company hired another part-time employee, Frances Garza, to replace Barker. Bonnie Summer, who worked from 8 a.m. to 4:30 p.m., primarily handled ac- r All dates are for the period from July 1, 1988, through June 30, 1989 unless otherwise indicated 2 Certain errors in the transcript are noted and corrected 806 DECISIONS OF THE NATIONAL LABOR RELATIONS BOARD counts payable and receivable and customer service calls. Alcoser, who worked from 8:30 a.m. to 5 p.m., primarily handled overage, shortages, and damages in freight (known as 0, S, and D). Garza, like her predecessor Barker, worked from 4:30 p.m. until she finished her work, which was usually about 9:30 p.m. She primarily handled billing. In the trucking industry, billing is usual- ly performed in the late afternoon and evening, after freight deliveries have been received. Alcoser and Garza testified in sum as follows: In Feb- ruary they talked about joining the Union. Alcoser ob- tained two authorization cards from Business Representa- tive Don Smith. They signed the cards and mailed them to the Union, but heard nothing further. (Alcoser's card was dated March 1.) They later learned that the Union received only Alcoser's card. They obtained replacement cards, which they signed on March 15, and Alcoser brought the cards to the union hall. Phillip Connelly, who is based in Chicago, is a compa- ny district manager, with overall responsibility for five terminals. Connelly testified that until 1989 he was not responsible for the Detroit terminal, but beginning the first week of January the Detroit terminal was assigned to his district. In July 1988 Connelly served for 4 days as acting Detroit terminal manager while Bob Summer was on vacation. Connelly did not return to the Detroit ter- minal until at least March 29, 1989. Alcoser testified in sum as follows: Some 2 or 3 weeks after he and Garza signed the replacement cards, i.e., about the beginning of April, Connelly called him out to the loading dock. Con- nelly said he heard a rumor that Alcoser joined the Union, and that if the Union came in, there would be drastic cutbacks, because there would not be enough work if the Union came in. Connelly offered Alcoser union scale if he did not join the Union (at the time, Al- coser was making $10.80 per hour. Union scale for office clericals was about $14.75 per hour). Connelly said he could not understand why Garza would want the Union, because she had low seniority and would be the first to go. He asked Alcoser if he signed a union card. Alcoser, fearing possible adverse action, answered that he did not. Connelly said Alcoser should tell him if he did. Alcoser answered that Connelly would be the first to know. They also talked about Alcoser's complaints. Alcoser said there was a lack of communication between himself and the supervisors. Connelly gave Alcoser his telephone number, and told Alcoser to call if there was any prob- lem. After Connelly left, Alcoser saw him go into Bob Summer's office with Garza. During the second or third week of April Connelly telephoned Alcoser at work. He said he was giving Alcoser a 35-cent-an-hour increase to show that his heart was in the right place. He again told Alcoser to tell him if he signed a union card. On the fol- lowing Friday (apparently April 28, as indicated by Al- coser's chronology), Connelly telephoned Alcoser about 4:50 p.m. and again asked Alcoser if he signed a union card (in the meantime, on April 25, the Union filed its election petition). This time Alcoser answered that he did. Connelly replied that this was too bad, and he hoped it would not sever their relationship. The follow- ing week, on the loading dock, Connelly told Alcoser that he was making drastic cutbacks, and Garza would be let go, because there would not be enough work if the Union came in. Connelly said something about tonnage and revenue. Connelly asked how the changes would affect Alcoser's family situation. Alcoser indicated there would be no problem. Alcoser correctly assumed, with- out being told, that he would now be working later hours, because someone would have to handle the bill- ing, and he had less seniority than Bonnie Summer. Con- nelly then summoned Garza. It is undisputed that the three office clerical employees each received increases of 35 cents per hour in their paychecks that week, and that the increases were made effective beginning the week of April 17. Alcoser and Garza had never before received a pay increase (Bonnie Summer received a pay increase when the Company took over the terminal). All three re- ceived a 10-percent wage cut in December 1987. The Company had no periodic review or other system of granting wage increases to its nonunion office clericals. Garza was laid off on Friday, May 5, and the following Monday Alcoser commenced his new hours, working from 1 to 9:30 p.m. Garza testified in sum as follows: On April 6 or 7 Connelly introduced himself to her. He said that Detroit was not in his district, but he was visiting the terminal because union employees had received a wage increase on April 1 under the NMFA, and he was concerned the nonunion office employees might go union. Connelly said that Detroit did not have enough work for three people if the Union came in, but that if the Union did not come in, he could talk to the home office and make arrangements. He said he hoped the office clericals would "stay with the management team" instead of going union, because then the Company could keep three people. Connelly asked Garza if she signed a union card, and she answered that she did not. He said that if they decided to go union they should contact him so he could make a counteroffer. Garza said they would tell him if they decided to join the Union. About a week later Connelly again approached Garza. He said he heard from a road driver in Cincinnati that the Detroit employ- ees signed union cards, and asked if this was true. Garza avoided the question, suggesting that truckdrivers tended to gossip. Connelly responded that his information came from a very reliable source. He said that he would ap- preciate that if they decided to pursue the Union they should let him know so he could make a counteroffer. Connelly said that if the Union came in he would prob- ably have to let Garza go because she had low seniority and the Company could not afford a union shop. On May 4 Connelly said he would see her the next day. On May 5, the same day that Garza received a pay increase in her paycheck, Connelly told her she was laid off. He said he would try to find work for her. Garza asked if she would be called back if business picked up. Connelly did not answer her. At Garza's request, Connelly provid- ed her with a letter for the unemployment office. The letter indicated that Garza was laid off due to a decline in business. District Manager Connelly testified in sum as follows: In July 1988, when he temporarily replaced Terminal Manager Summer, Company Director of Operations Groscost, Connelly's immediate superior, instructed him O.K. TRUCKING CO. 807 to evaluate the operations and administration of the De- troit terminal. Connelly made an evaluation, and report- ed to Groscost that the Detroit office was overstaffed in comparison to the Chicago terminal office. He made this comparison on the basis of the number of bills processed, tonnage and revenue compiled on a daily, weekly, and monthly basis. However, Connelly subsequently testified that he relied primarily on the number of bills processed, and tonnage and revenue were not important in deter- mining office staffing. Connelly recommended that the Detroit office staff be reduced by one-half or one person. For staffing purposes, a part-time employee was regard- ed as one-half person. Therefore, for staffing purposes the Detroit terminal had at this time 2-1/2 office cleri- cals. Groscost concurred in the recommendation and in- structed Connelly to carry it out as soon as possible. Connelly said he would. Nevertheless Connelly did noth- ing about the matter, and did not return to the Detroit terminal until March 29, 1989, over 8 months later. In the meantime, as indicated, part-time office clerical Karen Barker quit in December, and the following month the Company hired Garza to replace her, thereby increasing the Detroit staff by one-half. Connelly testi- fied that Terminal Manager Summer hired Garza, and he professed inability to explain why Summer did so, al- though by this time the Detroit terminal was in Connel- ly's district. Summer was not called as a witness in this proceeding. Therefore, the Company's argument (Br. 29, 37) that Garza was hired because of an alleged substan- tial increase in the number of bills processed is unsup- ported by any record testimony. As will be discussed, there was in fact no 'significant change in the Detroit ter- minal bill count during the period from January 1988 through August 1989. Moreover, Terminal Manager Summer had authority to and did hire and lay off or dis- charge terminal employees. If the Company wanted to lay off a terminal employee, then all that had to be done was for Connelly to telephone Summer and instruct him to make the layoff. After Barker quit, Connelly could have achieved the same result by instructing Summer not to replace Barker. Furthermore, it is unlikely that the Company would make a determination to reduce the De- troit office staff for economic reasons, without first con- sulting with Summer and obtaining his opinion. Howev- er, Connelly did not claim in his testimony that he con- sulted with Summer prior to March 29. Connelly testified that at Groscost's instruction he re- turned' to the Detroit terminal on March 29 with the in- tention of reducing the work force and changing work hours. Again, Connelly failed to explain why it was nec- essary for him to do this in person. Connelly remained at Detroit for 3 days (March 29, 30, and 31). He testified in sum as follows: He talked to Terminal Manager Summer and other personnel, including Alcoser and Garza. Con- nelly testified on direct examination that he discussed planned cutbacks with Alcoser, but on cross-examination testified that he said nothing to the employees about re- ducing' the staff. Alcoser told him that there was a lack of communication and bad attitude between himself and Summer and other supervisors. Connelly suggested that they meet with Summer, but Alcoser said it would do no good. Connelly gave Alcoser his telephone number, and asked him to call if anything unusual popped up. Connel- ly offered to come to Detroit and resolve any problems. Alcoser agreed to the request. Connelly did not explain to Alcoser what he meant by "anything unusual." Con- nelly asked Alcoser how Garza felt about office morale, and Alcoser told him to ask her. Connelly introduced himself to Garza, and said that if there were any prob- lems he was available to talk to her. If Connelly intended to lay off Garza, then it is difficult to see why Connelly was concerned as to whether she had any problems. Connelly testified that he spoke to Terminal Manager Summer, who said there was no problem. Connelly re- turned to Detroit, again without effectuating any layoff. Connelly testified that on April 3 he met with Gros- cost and Company Vice President Hal Franke, who is primarily responsible for personnel and labor relations matters. According to Connelly, he told them that reso- lution of the morale problem at Detroit should take prec- edence over reduction of the work force. In view of what Connelly was allegedly told at Detroit, i.e., that Summer said there was no problem, that Garza indicated no, problems, and that Alcoser refused to meet with Summer, it is difficult to see what Connelly expected to do to resolve the morale problems. Connelly testified that Groscost told him for the third time to go to De- troit and reduce the work force and change the work hours. Connelly testified that Groscost did not ask him why he had not already done this. Connelly testified that on April 4 he heard from some Chicago road drivers that the office people in Detroit had gone or were going to the Union about their problems with Summer. On April 5 Connelly again met with Groscost and Franke, and reported this information. According to Connelly, Groscost told him for the fourth time to go to Detroit and effectuate the layoff, and also told him "to find out what was going on, resolve the problems and remain out of the Union." Groscost was not presented as a witness in this proceeding. Franke, the Company's only other witness, contradicted Connelly's testimony. Franke testi- fied that on April 28, upon receiving the Union's election petition, he told Groscost to instruct Connelly not to dis- cuss the union situation with the 'Detroit employees. Union matters fell within Franke's bailiwick rather than that of Groscost. I find that prior to April 28 Groscost did not instruct Connelly to stay out of the union matter, but that by telling Connelly to find out what was going on, he anticipated that Connelly would get very much involved. Connelly testified that he returned to Detroit on April 12 and remained until April 14. He testified that he did not go earlier because he was involved in closing the Company's Kankakee terminal. Connelly testified in sum as follows: He told Alcoser that he was going to reduce the force and change working hours, and asked Alcoser about his family problems. He assured Alcoser that his job would be protected. He told Alcoser that he heard through the grapevine that some people had visited the Union about the problems in the Detroit office, and asked Alcoser if he was involved. He may have asked Alcoser if he signed a union card. He reminded Alcoser that he could call Connelly at home and told him to call 808 DECISIONS OF THE NATIONAL LABOR RELATIONS BOARD "before he did anything of an unusual nature." Again Connelly failed to explain to Alcoser what he meant. Connelly testified that he felt Alcoser would not do any- thing unusual, and by "unusual," he was referring to Al- coser's relations with Terminal Manager Summer. How- ever, as will be discussed, Connelly's testimony in con- nection with subsequent developments, indicates a differ- ent meaning. Connelly testified that he hoped that the problems with Alcoser could be resolved in the future. If so, then his actions following filing of the election peti- tion were inconsistent with his assertions that the morale problems should be resolved before any layoff. Connelly further testified in sum as follows: On April 14 he returned to Chicago and reported his findings to Groscost. For the fourth time he had failed to carry out his superior's instructions. Connelly again said that he wanted to resolve the lack of communication problem before the "restructuring." For the fifth time Groscost told him to go to Detroit and effectuate the changes. On Monday, April 17, Connelly returned to Detroit and told Alcoser that he and all other company nonunion, non- management personnel were getting a 35-cent-an-hour pay raise. However, the Company stated in its answer to the complaint that nothing was said on or about April 22 about any wage increase, but that the wage increase was instituted more than 3 weeks later. Connelly testified that he said nothing in this conversation about Alcoser sign- ing a union card. Connelly further testified in sum as follows: On April 28 Terminal Manager Summer informed him that the Union filed an election petition. Connelly immediately telephoned Alcoser, but was not able to talk to Alcoser until Monday, May 1. Connelly said he thought Alcoser had promised to let him know "prior to any unusual cir- cumstances," so that they could "discuss it at that par- ticular time." Connelly felt they had an agreement. If so, then it is evident that by "unusual circumstances," Con- nelly was referring to union activity. On May 4 Connelly returned to Detroit. He informed Summer, Alcoser, and Garza of Garza's layoff, which he described to Garza as permanent. He offered to assist Garza to obtain employ- ment with a unionized firm. He suggested that Garza would be eligible for severance pay if she quit. However, Garza said she would take the layoff. Connelly testified that the layoff of Garza and change in Alcoser's sched- ule was unrelated to the union activity. With regard to the pay increases, Connelly testified that the Company had a policy of giving pay raises to its nonunion employees at the same time the bargaining unit employees received their raises. Connelly professed to be unable to explain why the Detroit office clericals did not receive their raises effective as of April 1, when all union employees received a general pay increase, except to suggest that it had something to do with the Company's profit-sharing plan. The Union and signatory employers are parties to an agreement whereby under certain condi- tions, including approval of the employer's employees, an employer could institute a profit-sharing plan. In 1987 the Company's bargaining unit employees voted to accept such a plan. Under the plan the unit employees took a 15-percent wage cut, and nonunit employees were required to take a 10-percent wage reduction. As indicat- ed, the Detroit office clericals took that reduction in De- cember 1987. Effective as of April 1, 1989, bargaining unit employees received a 35-cent-an-hour wage increase, pursuant to their collective-bargaining contract. Compa- ny Vice President Franke initially testified that the profit-sharing plan required the Company to give a com- mensurate increase to its nonunion employees. However, Franke subsequently admitted that the plan simply per- mitted the Company to give such an increase. Franke testified that the Detroit office clericals received a 35- cent-an hour increase as part of a systemwide increase to all nonunit employees. However like Connelly, Franke failed to explain why the Detroit office clericals failed to receive this increase until several weeks after April 1. B. Analysis and Concluding Findings I credit Alcoser and Garza. Connelly's narrative of the events leading to the layoff of Garza and change in in Alcoser's work schedule is incredible. If, as testified by Connelly, he failed to carry out the instructions of his immediate superior on five successive occasions over a period of some 9 months (instructions which could have been effectuated by one phone call) then it is probable that Connelly would have been terminated, or at least demoted. Instead, according to his narrative, he was not even reprimanded or questioned about his repeated fail- ure to carry out Groscost's alleged instruction. As indi- cated, Connelly's narrative is also incredible in other re- spects, and at other points corroborated the testimony of Alcoser and Garza in significant respects. Thus, Connel- ly at least impliedly admitted that the Company sent him to Detroit to deal with the union organizing campaign, that he questioned Alcoser as to whether he signed a union card, told Alcoser to keep him informed about any union activity, and regarded Alcoser's failure to do so as a violation of Connelly's instruction. In a signed state- ment attached to the Company's answer, Connelly stated that he decided to lay off Garza pursuant to "instructions to restructure and eliminate office personnel, if at all pos- sible, due to the steady decline of tonnage and revenue within our system which also affects the Detroit termi- nal." However, as indicated, Connelly testified that he relied on the number of bills processed, tonnage, and revenue at Detroit. Connelly then admitted that only the number of bills processed was important in determining office staffing. The Company's own records demonstrate that there was no "steady decline" in the bill count during the period in question. During the period of Janu- ary 1988 through August 1989, the number of'bills proc- essed at Detroit fluctuated on a monthly basis from a high of 3901 (March 1988) to a low of 2987 in July 1988 (the only month in which the bill count was less than 3000). The records indicate that July and December were usually slow months. During the first 6 months of 1989 the monthly bill count ranged from 3480 to 3794, with the exception of April when the count was 3269. During the first 6 months 'of 1988 the total bill count, was 21,688. During the first six months of 1989 the total bill O K. TRUCKING CO. 809 count was 21,487.3 In sum, the office volume of work re- mained stable .throughout the 20-month period. The Company never planned to lay off Garza for eco- nomic reasons. When the Company learned about union activity among the Detroit office clericals, Connelly im- mediately swung into action. He confronted Alcoser and Garza, and proceeded to extend "a fist inside the velvet glove" (NLRB v. Exchange Parts Co., 375 U.S. 405, 409 (1964)). Connelly offered them' union scale and job secu- rity if they abandoned the Union, but threatened that if they went union Garza would be terminated. Connelly did not make a "reasonable prediction .. . carefully phrased on the basis of objective . . . economic necessi- ties" beyond the Company's control. NLRB v. Gissel Packing Co., 395 U.S. 575, 618-619 (1969). Rather, he equated unionization with loss of Garza's job, i.e., that if the Union came in Garza would go. The Company vio- lated Section 8(a)(1) by promising its employees wage in- creases and job security if they abandoned their support for the Union, and by threatening them with loss of job security and termination of Garza if the Union came in. The Company, by Connelly, also violated Section 8(a)(1) by interrogating Alcoser and Garza about whether each and both of them signed union cards, and by telling them to report to him on union activities, specifically, whether they signed union cards or otherwise pursued their sup- port for unionization. The conduct was coercive. Con- nelly, a high company official, questioned and solicited information from the employees in the context of threats of reprisal and promises of benefit. Subsequently, the Company carried out those threats. Until the Union filed its representation petition, the employees refused to admit to Connelly that they signed union cards. Their re- sponses tend to corroborate Alcoser's testimony to the effect that the employees had good reason to believe the questioning was coercive. Bourne v. NLRB, 332 F.2d 47 (2d Cir. 1964). Connelly's professed reason for soliciting information from the employees, namely, to enable him to make a counteroffer, was itself unlawful. Ace Hard- ware Corp., 271 NLRB 1174 (1984). I further find that the Company violated Section 8(a)(1) by announcing and granting a wage increase to the Detroit office clerical employees in order to discourage them from supporting the Union. Connelly told Alcoser, in the context of ap- peals, threats, and promises to discourage union support, that he was giving the raise to show that his heart was in the right place. The Company' s argument that it gave a general increase to its nonunion employees because the unit employees received a general increase ' on April 1, fails to explain why the Detroit office clericals received 3In crediting the testimony of Alcoser and Garza, I have credited their testimony as to the dates or approximate dates of their conversa- tions with Connelly As indicated, there are conflicts between the testi- mony of Connelly and that of the employees concerning those dates. Connelly's assertion that he was present in Detroit on March 29, 30, and 31, but not during the period from April 1 through 11 was uncorroborat- ed, although if true corroboration presumably would be available, e g., in the form of travel vouchers or hotel bills Even if Connelly first talked to the employees in late March rather than early April, this would not im- peach the substance of the employees' testimony. Alcoser and Garza signed union cards on March 1 and 15 Therefore it is possible that Con- nelly learned about the union activity in late March, and not as he claimed, on April 4. their increases several weeks later, and why there was no general announcement of the increase. The Company failed to produce evidence to indicate when nonunion employees outside of Detroit received increases. Even if the wage increase were not unlawful, Connelly's admis- sion to Alcoser that he was giving the raise to discour- age union support was itself an unlawful statement. I find that the Company terminated Garza because of the employee's continuing support for the Union, as demonstrated by the Union's action in filing an election petition. The Company thereby violated Section 8(a)(l) and (3). When the Company initially learned that the em- ployees contacted the Union, Connelly applied intensive pressure on Alcoser and Garza in the form of threats of reprisal, promises of benefit, interrogation, and solicita- tion of information, in order to discourage them from supporting the Union. When these efforts failed, Connel- ly carried out his threats by terminating Garza and changing Alcoser's work schedule. Connelly hoped thereby to break the Union's majority support (Connelly was well aware that the Union could not maintain major- ity status without Garza). In light of the credited testi- mony of Alcoser and Garza, and the timing of the Com- pany's actions, General Counsel presented a prima facie case that the Company terminated Garza because of the employee's union activity. As the Company's professed reason for terminating Garza was pretextual, it follows that the Company failed to meet its burden of establish- ing that it would have terminated her in the absence of such activity. As the change in Alcoser's work schedule was a direct consequence of the unlawful termination of Garza, and part of the same unlawful plan to prevent unionization of the Detroit office clerical employees, it follows that the change in work schedule also violated Section 8(a)(1) and (3). See L. C. Cassidy & Son, 272 NLRB 123, 131 (1984). As Garza was lawfully terminat- ed, she remained an employee of the Company and was entitled to vote in the election. CONCLUSIONS OF LAW 1. The Company is an employer engaged in commerce within the meaning of Section 2(6) and (7) of the Act. 2. The Union is a labor organization within the mean- ing of Section 2(5) of the Act. 3. By interfering with, restraining, and coercing its em- ployees in the exercise of the rights guaranteed in Sec- tion 7 of the Act, the Company has engaged, and is en- gaging, in unfair labor practices within the meaning of Section 8(a)(1) of the Act. 4. By discriminating in regard to the tenure of employ- ment of Frances Garza and the terms and conditions of employment of James Alcoser, thereby discouraging membership in the Union, the Company has engaged, and is engaging, in unfair labor practices within the meaning of Section 8(a)(3) of the Act. 5. Frances Garza was and is at all times material an employee of the Company, and the challenge to her ballot should be overruled. 6. The aforesaid unfair labor practices are unfair labor practices affecting commerce within the meaning of Sec- tion 2(6) and (7) of the Act. 810 DECISIONS OF THE NATIONAL LABOR RELATIONS BOARD THE REMEDY Having found that the Company has committed viola- tions of Section 8(a)(1) and (3) of the Act, I shall recom- mend that it be required to cease and desist therefrom, post appropriate notices, and take certain other affirma- tive action designed to effectuate the policies of the Act. Having found that the Company discriminatorily ter- minated Frances Garza and discriminatorily changed the work schedule of James Alcoser, I am recommending that the Company be ordered to offer Garza immediate and full reinstatement to her former job or, if it no longer exists, to a substantially equivalent position, and to offer Alcoser immediate and full reinstatement to his former work schedule, all without prejudice to their se- niority and other rights and privileges previously en- joyed, and make them whole for any loss of earnings and benefits they may have suffered from the time of Garza's termination and Alcoser's change in schedule to the date of the Company's offer of reinstatement. Backpay shall be computed in accordance with the formula in F. W. Woolworth Co., 90 NLRB 289 (1950), with interest as computed in New Horizons for the Retarded, 283 NLRB 1173 (1987).4 It will also be recommended that the Com- pany be required to preserve and make available to the Board, or its agents, on request, payroll and other records to facilitate the computation of backpay due. On these findings of fact and conclusions of law and on the entire record, I issue the following recommend- eds ORDER The Respondent, The O.K. Trucking Company, its of- ficers, agents, successors, and assigns, shall 1. Cease and desist from (a) Discouraging membership in Local 299, Interna- tional Brotherhood of Teamsters, Chauffeurs, Warehou- semen and Helpers of America, AFL-CIO, or any other labor organization, by discriminatorily terminating, laying off, or changing the work schedules of employees, or in any other manner discriminating against them with regard to their hire or tenure of employment or any other term or condition of employment. (b) Threatening employees with layoff, loss of job se- curity, or other reprisal because of their union activity. 4 Under New Horizons, interest on and after January 1, 1987, is comput- ed at the "short-term Federal rate" for the underpayment of taxes as set out in the 1986 amendment to 26 U S C § 6621. 5 If no exceptions are filed as provided by Sec 102.46 of the Board's Rules and Regulations, the findings, conclusions , and recommended Order shall, as provided in Sec 102 48 of the Rules, be adopted by the Board and all objections to them shall be deemed waived for all pur- poses. (c) Expressly or impliedly promising or granting wage increases or other benefits in order to discourage union activity; provided, however, that nothing herein shall be construed as requiring Respondent to withdraw any wage increase or other benefit which it has established. (d) Interrogating employees about their union attitude or activities or those of their fellow employees. (e) Telling employees to report on their union activi- ties and sympathies or those of their fellow employees. (f) In any like or related manner interfering with, re- straining, or coercing employees in the exercise of their rights under Section 7 of the Act. 2. Take the following affirmative action necessary to effectuate the policies of the Act. (a) Offer Frances Garza immediate and full reinstate- ment to her former job or, if such job no longer exists, to a substantially equivalent position, and offer James Al- coser immediate and full reinstatement to his former work schedule, all without prejudice to their seniority or other rights and privileges previously enjoyed, and make them whole for losses they suffered by reason of the dis- crimination against them as set forth in the remedy sec- tion of this decision. (b) Preserve and, on request, make available to the Board or its agents, for examination and copying, all payroll records, social security payment records, time- cards, personnel records and reports, and all other records necessary to analyze the amount of backpay due. (c) Post at its Dearborn, Michigan office and place of business, copies of the attached notice marked "Appen- dix."s Copies of the notice on forms provided by the Re- gional Director for Region 7, after being duly signed by Respondent's authorized representative, shall be posted by Respondent immediately upon receipt thereof, includ- ing all places where notices to employees are customari- ly posted. Reasonable steps shall be taken by the Re- spondent to ensure that the notices are not altered, de- faced, or covered by any other material. (d) Notify the Regional Director in writing within 20 days from the date of this Order what steps Respondent has taken to comply. IT IS FURTHER ORDERED that the challenged ballot of Frances Garza be opened and counted, that a revised tally be furnished the parties, and that the Regional Di- rector shall certify the results of the election. 6 If this Order is enforced by a judgment of a United States court of appeals, the words in the notice reading "Posted by Order of the Nation- al Labor Relations Board" shall read "Posted Pursuant to a Judgment of the United States Court of Appeals Enforcing an Order of the National Labor Relations Board " Copy with citationCopy as parenthetical citation