The Singer Co.Download PDFNational Labor Relations Board - Board DecisionsOct 31, 1972199 N.L.R.B. 1195 (N.L.R.B. 1972) Copy Citation THE SINGER COMPANY 1195 The Singer Company , Friden Division and Internation- al Association of Machinists and Aerospace Work- ers, AFL-CIO The Singer Company, Friden Division , and Interna- tional Association of Machinists and Aerospace Workers , AFL-CIO, Petitioner. Cases 28-CA- 2192, 28-CA-2265, and 28-RC-2118 October 31, 1972 DECISION , ORDER, AND DIRECTION OF SECOND ELECTION BY CHAIRMAN MILLER AND MEMBERS FANNING AND PENELLO On April 14, 1972, Trial Examiner Irving Rogo- sin issued the attached Decision in this proceeding. Thereafter, the Respondent filed exceptions and a supporting brief, and the General Counsel filed cross- exceptions, a supporting brief, and an answering brief. The Respondent also filed a brief in answer to the General Counsel's cross-exceptions and support- ing brief. Pursuant to the provisions of Section 3(b) of the National Labor Relations Act, as amended, the Na- tional Labor Relations Board has delegated its au- thority in this proceeding to a three-member panel. The Board has considered the record and the Trial Examiner's Decision in light of the exceptions, the cross-exceptions, and briefs, and has decided to affirm the Trial Examiner's rulings, findings, and con- clusions and to adopt his recommended Order only to the extent consistent herewith. 1. The Trial Examiner found, and we agree, that the Respondent violated Section 8(a)(1) and (3) of the Act by prohibiting certain employees from wearing shirts displaying union insignia and by depriving them of earnings until they removed said shirts. We also agree that it independently violated Section 8(a)(1) by coercively interrogating employees regard- ing their union activities,' by veiled threats of plant closure, and by statements of the inevitability of strikes and the dire consequences of such strikes, in- cluding loss of jobs if the Union were selected, as reflected in the speeches of the Respondent's officials and in the Respondent's preelection portfolio and i The Trial Examiner found that Respondent 's foremen , Balderston and Stanley, coercively interrogated employees but failed to detail such interroga- tions. The record amply supports the Trial Examiner's findings in this re- spect . Thus, in August and September 1970, Foreman Balderston spoke to groups of assembled employees and, by his own admission , specifically asked them "why they wanted the Union", in November 1970, Foreman Stanley invited employee Randy Martinez to his desk, brought up the question of the Union , and asked him "Why do you want a union Why do you think you need a union" other campaign material. 2. The Trial Examiner also found that the Re- spondent further violated Section 8(a)(1) and (3) of the Act by discriminatorily enforcing its no-solicita- tion rule and by unlawfully withholding wage increas- es of employees because of their union activities. We find merit in the Respondent's exceptions to these findings. (a) The alleged discriminatory enforcement of the Respondent's no-solicitation rule: There is no dispute that the Respondent's no-solicitation rule, which was posted on August 17, 1970, is presumptively valid. With respect to the alleged discriminatory enforce- ment of said rule, the record reflects that on Novem- ber 17, 1970, General Foreman Vincent Baggetta issued written reprimands to employees Moya, Marti- nez, and Carrillo, for allegedly soliciting for the Union on company property during working hours and that, at about the same time, Baggetta also issued written reprimands to employees Carlson and Lovato for so- liciting against the Union during working time. The Trial Examiner reasoned that if this were all that was involved in this case, a finding of discriminatory treat- ment of union proponents would be unwarranted. However, the Trial Examiner found the 8(a)(1) viola- tion because of an incident in the fall of 1970, when Forelady Henderson, upon receiving complaints that two employees, Legg and Gibbard, were promoting and selling Avon (cosmetic) products to employees during working time, merely warned the two employ- ees orally that this conduct was in violation of the no-solicitation rule. The Trial Examiner, noting that Respondent had not dealt with union adherents in a similar, mild fashion, concluded that the no-solicita- tion rule was discriminatorily enforced against the Union to inhibit and restrain its organizational activi- ties. We are unable to agree with the Trial Examiner that the facts warrant the conclusion that the Respondent's no-solicitation rule was discriminatori- ly enforced. The mere fact that the Respondent did not issue written reprimands to two employees for soliciting a commerical product on working time, but only orally admonished them, as distinguished from the written reprimands accorded union (and nonun- ion) adherents, does not, in our opinion, justify the conclusion that the rule was discriminatorily enforced or disparately applied. We shall, therefore, overrule the objection and dismiss all allegations of the com- plaint with respect thereto. (b) The alleged unlawful withholding of wage in- creases: The record shows that the Respondent em- ployed two classifications of production employees, namely, assembler 1 and assembler 2. The Respon- dent did not grant promotions from assembler 1 to assembler 2 on any regularly recurring or periodic 199 NLRB No. 162 1196 DECISIONS OF NATIONAL LABOR RELATIONS BOARD basis, but did so solely on the basis of the individual progress of the employee and the informal recommen- dation of the foreman. The Petitioner filed its "RC" petition on November 4, 1970, and at about this time the Respondent's supervisors were instructed that no promotions or reclassifications would be made until after the election, when a job study would be under- taken. No promotions were granted during the period from November 4, 1970, the day the petition was filed, to December 10, 1970, the day of the election. No announcement of the decision was made, but employ- ees who inquired were told of the instructions to su- pervisors. On these facts, the Trial Examiner found that promotion or reclassifications were unlawfully withheld on the ground that the Respondent would have granted promotions but for the advent of the Union and, accordingly, that the Respondent thereby violated Section 8(a)(1) and (3) of the Act. We dis- agree with this finding. It is true, as the Trial Examiner observes, that employers have the legal duty in deciding whether to grant benefits while a representation case is pending to determine that question precisely as they would if a union were not in the picture? Yet, it is also true, that under settled Board policy, a grant or promise of benefits during the critical preelection period will be considered unlawful unless the employer comes for- ward with an explanation, other than the pending election, for the timing of the grant or announcement of such benefits. It is apparent therefore, that tension exists between these principles where, as here, the benefits are not pursuant to any fixed practice, pat- tern, or preorganizational announcement, but both the timing and eligibility for the benefits are purely within the discretion of the employer. Absent an ac- commodation of these principles, employers situated similarly to the Respondent herein would be faced with the dilemma of giving the increase without bene- fit of objective evidence excusing the timing, thereby risking an unlawful interference with the election or, as was done here, withholding the benefits and still be subject to charges of unlawful conduct. The Board has held that where an employer has made clear in its campaign statements that its only reasons for postponing expected benefits was to avoid the appearance of election interference, its action did not constitute objectionable conduct? We can per- ceive no justification for refusing to apply that rule to a situation where, as here, the benefits are not neces- sarily expected, and the withholding is for the limited purpose of protecting the employer from charges of unlawful conduct. In this case, the Employer did not withhold re- 2 McCormick Longmeadow Stone Co Inc., 158 NLRB 1237, 1242. 3 See Uarco Incorporated 169 NLRB 1153, Montana Lumber Sales Inc (Delaney & Sons Division), 185 NLRB No. 12. classifications in the 'context of antiunion propa- ganda, and indeed there does not appear to have been a formal announcement of the withholding; employ- ees who inquired about the possibility of promotion were merely told that reclassification would be de- ferred until after the election. In the circumstances, we do not believe that the employees could rea- sonably conclude that the Employer's postponement of promotions or reclassifications was intended to in- fluence organizational activities, and, accordingly, contrary to the Trial Examiner, we shall overrule Ob- jection 7 and dismiss the 8(a)(1) allegation based thereon .4 3. The Union timely filed 10 objections to the election conducted on December 10, 1970.5 Of these, the Trial Examiner sustained Objections 2, 5, 6, (in part), 7, and 10, and recommended that the election of December 10, 1970, be set aside. We adopt the Trial Examiner's recommendations only as to Objection 5, which pertains to coercive preelection speeches made by the Respondent's officials, and Objection 10, which pertains to the portfolio distributed to the em- ployees by the Respondent on December 9, 1970, the day before the election 6 These objections, we find, constitute grounds for setting aside the election, and we shall, therefore, adopt the Trial Examiner's rec- ommendation that we set aside the election of Decem- ber 10, 1970, and direct that a second election be conducted at such time as the Regional Director deems the circumstances permit the free choice of a bargaining representative. ORDER Pursuant to Section 10(c) of the National Labor Relations Act, as amended, the National Labor Rela- tions Board adopts as its Order the recommended Order of the Trial Examiner, as modified below, and hereby orders that the Respondent, Singer Company, Friden Division, Albuquerque, New Mexico, its offi- cers, agents, successors, and assigns, shall take the action set forth in the Trial Examiner's recommended Order, as so modified: 1. Delete from paragraph 1(a) of the Trial Examiner's recommended Order the words "issuing written reprimands to employees, and withholding wage increases." 2. Delete from paragraph 1(b) of the Trial For the reasons stated by the Trial Examiner and on the basis of estab- lished law, upon which he relied, Member Fanning would find that Respon- dent violated Sec . 8(a)(1) and (3) when it withheld wage increases and promotions from employees in assembler I category because of the pendency of the election. 3 The tally of ballots showed 44 votes cast for, and 63 against , the Union, with 3 challenged ballots. 6 We have overruled Objection 6 and 7, supra, and we hereby overrule Objection 2 based on events preceding the date that the election petition was filed. THE SINGER COMPANY 1197 Examiner's recommended Order the words "with- holding wage increases, issuing unwarranted written reprimands." 3. Delete paragraph 2(b) of the Trial Examiner's recommended Order, and reletter paragraphs 2(c), (d), and (e), accordingly. 4. Substitute the attached Notice for the Notice marked "Appendix B" attached to the Trial Examiner's Decision. IT IS FURTHER ORDERED that the election conducted on December 10, 1970, in Case 28-RC- 2118, be, and it hereby is, set aside, and that Case 28-RC-2118 be, and it hereby is, remanded to the Regional Director for Region 28 for the purpose of conducting a new election at such time as he deems the circumstances permit the free choice of a bargain- ing representative. IT IS FURTHER ORDERED that the com- plaint be dismissed insofar as it alleges violations of the Act other than those found in this Decision. [Direction of Second Election and Excelsior foot- note omitted from publication.] APPENDIX NOTICE TO EMPLOYEES POSTED BY ORDER OF THE NATIONAL LABOR RELATIONS BOARD An Agency of the United States Government organization as a condition of employment, in conformity with Section 8(a)(3) of the Act. WE WILL reimburse Randy Martinez, Robert Moya, and Ronald Norling for any loss of pay they may have sustained during the time they were excluded from the plant for wearing shirts displaying union insignia on September 17, 1970. All our employees are free to become, or remain or to refrain from becoming or remain- ing, members of the above-named, or any other, labor organization. Dated By THE SINGER COMPANY, FRIDEN DIVISION (Employer) (Representative) (Title) This is an official notice and must not be defaced by anyone. This notice must remain posted for 60 consecu- tive days from the date of posting and must not be altered, defaced, or covered by any other material. Any questions concerning this notice or compli- ance with its provisions may be directed to the Board's Office, 7011 Federal Building and U.S. Courthouse, P.O. Box 2146, 500 Gold Avenue SW., Albuquerque, New Mexico 87101, Telephone 505- 843-2555. WE WILL NOT discourage membership of our employees in International Association of Ma- chinists and Aerospace Workers, AFL-CIO, or any other labor organization, by discriminating in any manner in regard to hire, tenure, or any other term or condition of employment, by pe- nalizing employees with loss of wages, except as authorized in Section 8(a)(3) of the Act. WE WILL NOT coercively interrogate our em- ployees regarding their union or protected activi- ties; threaten them with reprisals because of their union or protected concerted activities; threaten plant closure and state that strikes and loss of jobs are the inevitable results of unionism. WE WILL NOT in any other manner interfere with, restrain, or coerce our employees in the exercise of their right to self-organization, to join or assist the above-named or any other labor or- ganization, to bargain collectively through repre- sentatives 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 an agreement requiring membership in a labor TRIAL EXAMINER 'S DECISION STATEMENT OF THE CASE IRVING RocoslN, Trial Examiner : These proceedings are based upon two separate complaints , issued December 3, 1970, and March 30, 1971, respectively , consolidated for heanng with objections to the conduct of election , pursuant to order of the Regional Director dated March 30, 1971.' In Case 28-CA-2192, the complaint alleges that on about September 17, 1970, Respondent prohibited seven named employees from wearing shirts displaying union in- signia , and refused to permit them to work until they re- moved that attire , thereby engaging in unfair labor practices within the meaning of Section 8 (a)(1) and (3) and Section 2(6) and (7) of the Act. In Case 28-CA-2265, the complaint alleges that on various dates , since about October 1, 1970, Respondent 'The original charge in Case 28-CA-2192 was filed on October 7, 1970; in Case 28-CA-2265, on January 25, 1971, both duly served . Designations herein are as follows: the General Counsel, unless otherwise stated , his repre- sentatives at the hearing ; The Singer Company, Fnden Division, Respon- dent, the Company or the Employer; International Association of Machinists and Aerospace Workers, AFL-CIO, the Charging Party, the Union, or the Petitioner ; the National Labor Relations Act, as amended (61 Stat. 136,,73 Stat. 519, 29 U S.C. Sec. 151, et seq.), the Act; the National Labor Relations Board, the Board . Unless otherwise stated , all dates refer to 1970. 1198 DECISIONS OF NATIONAL LABOR RELATIONS BOARD engaged in enumerated acts of interference, restraint, and coercion, including unlawful interrogation, threats of plant closure, discriminatory enforcement of a no-solicitation rule, and warnings of the inevitability of strikes if the Union were selected as bargaining agent, in violation of Section 8(a)(1). This complaint also alleges a refusal to bargain since October 26, 1970, in violation of Section 8(a)(1) and (5), but, as will presently appear, this allegation was dismissed on motion of the General Counsel at the outset of the hearing. By separate answers to the respective complaints Re- spondent admitted, with minor qualifications not here ma- terial, the procedural and jurisdictional allegations and admitted certain other allegations, but denied generally the substantive allegations and the commission of any unfair labor practices. On November 4, 1970, the Union filed a representation petition for an election among employees in an appropriate Unit .2 Pursuant to a stipulation for certification upon con- sent election agreement, approved by the Regional Director on November 13, an election by secret ballot was conducted among the employees in the appropriate unit on December 10. The tally of ballots showed the following results: Of approximately 115 eligible voters, 107 cast valid ballots, 44 in favor of, and 63 against, the Union, with 3 ballots chal- lenged, the number being insufficient to affect the results of the election. On December 17, timely objections to conduct affect- ing the results of the election were filed, and copies served on all other parties. In his report on objections, filed March 30, 1971, the Regional Director ordered that a hearing be held on all objections, 1 to 10 inclusive, before a Trial Ex- aminer for the purpose of resolving the objections, and on the same day ordered that the objections be consolidated for hearing with the complaint Cases 28-CA-2192 and 28- CA-2265. Pursuant to the order of consolidation and notice, hearing was held before the duly designated Trial Examiner from August 9, to 13, inclusive, and September 15, to 17, 1971, inclusive. The General Counsel, Respondent, and the Union were represented by counsel or a union representa- tive, were afforded full opportunity to be heard, to examine and cross-examine witnesses, to introduce evidence relevant and material to the issues, to argue orally, and file briefs and proposed findings of fact and conclusions of law. The par- ties declined to argue orally but reserved the right to file briefs. Pursuant to an extension of time duly granted, the General Counsel and Respondent each filed briefs on No- vember 8, 1971. No proposed findings of fact or conclusions of law have been filed by any of the parties. The unopposed motion of the General Counsel, attached to the brief, to correct the transcript in specified respects, and duly served 2 All production and maintenance employees , including production tech- nicians, inspectors , and group leaders (other than those employed within the Engineering Department), material handlers , stockroom employees, and shipping and receiving employees , excluding all office clerical employees, Engineering Department employees (including engineering and technicians, model makers , inspectors and group leaders), custodial and janitorial em- ployees, landscaping and grounds maintenance employees , guards, watch- men, professional employees and supervisors as defined by the Act upon the remaining parties, is hereby allowed, made part of the record, and the official report of proceedings is hereby ordered corrected accordingly. At the outset of the hearing, General Counsel intro- duced in evidence a formal request for withdrawal of the charge in Case 28-CA-2265, signed on behalf of the Union, and approved by the Regional Director, on August 9, 1971. As stated by General Counsel, the purpose of the withdraw- al was to eliminate merely the charge of refusal to bargain in violation of Section 8(a)(5) of the Act. General Counsel then moved to dismiss the corresponding allegations of the complaint, leaving the remaining allegations intact. The motion to amend the complaint, as indicated, was allowed without objection. Respondent thereupon moved to dismiss the complaint in that case in its entirety on the ground that, since the underlying charge had been withdrawn, there re- mained nothing to support the complaint. General Counsel then countered that, since the complaint in Case 28-CA- 2192, which alleged violations of Section 8(a)(1) and (3), was based on a separate, viable charge, the complaint in that case could be amended to incorporate the Section 8(a)(1) and (3) allegations of the complaint in Case 28-CA-2265. Thereafter, to obviate any possible procedural defect, and to conform the withdrawal request to the actual intention of the parties, General Counsel offered in evidence a "correct- ed" withdrawal request, limiting the withdrawal of the charge in Case 28-CA-2265 to the Section 8(a)(5) allega- tions. Since it is altogether clear from the record that the failure to so limit the withdrawal request was inadvertent, the "corrected" withdrawal of the charge was received over Respondent's objection. The General Counsel also moved to amend the complaint in Case 28-CA-2192 to include the substance of the 8(a)(1) and (3) allegations contained in the complaint in Case 28-CA-2265. The motion was allowed over Respondent's objection. The General Counsel then proceeded on the basis that the "corrected" withdrawal re- quest preserved the 8(a)(1) and (3) allegations of the charge and, hence, supported the complaint in Case 28-CA-2265, which had been amended only by the dismissal of the 8(a)(5) allegations, or, alternatively, that the substance of the 8(a)(1) and (3) allegations in that case had been incorpo- rated by amendment into Case 28-CA-2192. The General Counsel contends that, since no new issues were thereby introduced in the consolidated hearing, Respondent was in no way prejudiced by proceeding under both complaints, as amended. Although Respondent objected to this procedure, all the issues raised by the allegations of both complaints, as amended, were fully litigated at the hearing. Moreover, although informed that if it claimed surprise during the course of the hearing it would be afforded an opportunity to prepare to meet any issues claimed to have been newly raised, Respondent made no request for such opportunity. During the course of the hearing, evidence was also elicited of further alleged unfair labor practices, and both complaints were amended to allege the supervisory status of an employee, in Case 28-CA-2192, acts of interrogation by said alleged supervisor, threats by an officer and agent of Respondent of job loss, in the event of a strike, if employees selected the Union as their bargaining agent, promises of benefits by two officers, supervisors and agents of Respon- THE SINGER COMPANY dent on various dates (contained in speeches), if they reject- ed the Union as their bargaining agent, and denials by Respondent's supervisors and foremen of promotions and considerations for promotions to better paying jobs because of the employees' union and concerted activities. These alle- gations were added by amendment to both complaints, though by differently numbered paragraphs, over Respondent's objection. Upon the entire record in the case, a reconciliation of conflicts in testimony, wherever necessary, and based upon his observation of the attitude and demeanor of the witness- es, and the briefs of the parties, the Trial Examiner hereby makes the following: FINDINGS OF FACT 1. THE BUSINESS OF RESPONDENT The complaints allege, Respondent's answers admit, and it is hereby found that at all times material herein, The Singer Company, Friden Division, Respondent herein, has been a corporation duly incorporated and existing under the laws of the State of Delaware, qualified to do business in the State of New Mexico. The complaints further allege, and Respondent's an- swers admit,3 that at all times material herein, Respondent has maintained an office and plant at Albuquerque, New Mexico, and places of business in other States of the United 'States, and has been at all times material herein engaged at its Albuquerque, New Mexico, place of business in the man- ufacture of electronic calculating and office copying ma- chines. The complaints also allege, Respondent's answers ad- mit, and it is hereby found that during the 12-month period preceding the issuance of the complaints, a representative period, Respondent in the conduct of its business sold from its Albuquerque, New Mexico, plant electronic calculating and office copying machines valued in excess of $500,000. During the same period, Respondent shipped from its Albu- querque, New Mexico, plant electronic calculating and of- fice copying machines valued in excess of $50,000 to points in the United States other than the State of New Mexico and purchased goods, materials, and supplies valued in excess of $50,000 which were shipped to its Albuquerque, New Mexi- co, plant directly from points outside the State of New Mexico. The complaints further allege, Respondent's answers admit, and it is hereby found that at all times material herein, Respondent has been an employer engaged in com- merce within the meaning of Section 2(6) and (7) of the Act. II. THE LABOR ORGANIZATION INVOLVED International Association of Machinists and Aero- space Workers , AFL-CIO, the Union herein, is and at all times material herein has been a labor organization within the meaning of Section 2(5) of the Act. 3 Respondent's admission is qualified only to the extent that it denies that it has engaged in the manufacture of office products other than electronic calculating and office copying machines at its Albuquerque plant. 1199 III. THE UNFAIR LABOR PRACTICES A. The Issues 1. Union insignia and Respondent's no-solicitation rule (a) Whether by prohibiting employees from wearing work attire displaying union insignia, compelling them to remove such attire, and refusing to permit them to work until they had done so Respondent has engaged in unfair labor practices within the meaning of Section 8( a)(1). (b) Whether Respondent permitted, during working time and on company property, the manufacture and distri- bution of campaign buttons bearing the legend "NO" and "VOTE NO," and permitted antiunion solicitation during working time and on company property, in violation of its no-solicitation rule, while prohibiting similar distribution and solicitation in favor of the Union at such times and places. (c) Whether, between October and December, both inclusive, Respondent discriminatorily enforced a no-solic- itation rule. (d) Whether Respondent, through T. E. Lusk, its em- ployee relations director, during discussions with employees recalled from layoff threatened employees with plant clo- sure and resulting loss of jobs in the event the Union were selected as bargaining agent .4 2. Speeches by company officials (a) Whether Respondent's Vice President Roger W. Johnson, in speeches at meetings of assembled employees on November 19 and 25 and December 2 and 8, threatened them with plant closure and warned them of the inevitabili- ty of strikes if the employees selected the Union as their bargaining agent. (b) Whether Respondent's Vice President Johnson, in a speech at a meeting of assembled employees, on Decem- ber 2, threatened them with loss of jobs if they selected the Union as their bargaining agent, and if the employees en- gaged in a strike. (c) Whether Respondent's President R. J. Campbell, in a speech at a meeting of assembled employees on December 4, threatened employees with plant closure and loss of jobs and warned them of the inevitability of strikes if they select- ed the Union as their bargaining agent. (d) Whether Respondent's Vice President Johnson, in speeches at meetings of assembled employees, on Novem- ber 19 and 25 and December 2 and 8, and President Camp- bell, in a speech on December 4, promised employees benefits if they would reject the Union as their bargaining agent. (e) Whether Respondent, by the distribution of a so- called portfolio containing certain antiunion handbills and other materials, threatened employees with plant closure and resulting loss of jobs if the employees selected the Un- ion as their bargaining agent in the election scheduled to be held the following day, December 10. 4 Contrary to the allegations of the complaint in Case 28-CA-2265, there is no evidence or contention that Lusk interrogated employees concerning their union or concerted activities on this occasion. M 1200 DECISIONS OF NATIONAL LABOR RELATIONS BOARD 3. Alleged acts of interference by supervisors (a) Whether Respondent, through Foreman Louis Stanley, during the month of November interrogated and threatened employees with plant closure and resulting loss of jobs if they selected the Union as their bargaining agent. (b) Whether Kenneth R. Sheehan, a production scheduler, was a supervisor and agent of Respondent on or about November 26, and if so, whether he interrogated employees concerning their union membership and activi- ties. 4. Denial of promotions Whether Respondent, through Foreman Stanley and General Foreman Vince Baggetta, denied employees pro- motions or reclassifications between October and Decem- ber 10, because of their union or concerted activities and the scheduled representation election on December 10. B. Background The Singer Company, Friden Division, has for many years maintained and operated a plant for the production of calculating machines at San Leandro, California. For 25 years the production employees at the plant have been rep- resented by the IAM under a collective-bargaining agree- ment . In recent years, the Company had become increasingly alarmed by inroads into its market by foreign competition and its high labor costs, for which it held the IAM largely responsible. After an exhaustive study over a period of 9 months, Respondent decided to establish a plant facility in Albuquerque, New Mexico.5 Respondent con- cedes that it was primarily motivated in establishing its Albuquerque plant by excessive labor costs in California, in comparison with those in other areas in the country, al- though labor inefficiency and plant obsolescence at San Leandro were also factors in its decision. In August 1969, Respondent established its operation in Albuquerque at a temporary location. About a year later, it moved to a modem plant, leased from the City of Albu- querque under a 20-year lease . Initially, Respondent had planned to manufacture as its principal product a photo- copying machine, as well as a line of display and printing calculators at its Albuquerque facility, although calculator products were still being manufactured at the San Leandro plant. Personnel were recruited for the Albuquerque facility for this purpose, but in mid-summer 1970, because of pro- duction difficulties encountered with the photocopier, a lay- off occurred and manufacture of the photocopier was com- 5 According to Thomas T Gilmer, Jr., former vice president of Respondent 's Fnden Division in charge of the San Leandro operation and later the Albuquerque facility, the study which resulted in Respondent's decision to locate in Albuquerque included availability of work force and educational facilities , projections of current and future labor costs, political stability, percentage of unionized nonfarm workers , turnover rate in the labor force , training costs, climate , and acceptability of the location to employees whom Respondent might desire to relocate . Respondent had even considered the possibility of moving its Friden Division plant overseas, where it had facilities in Belgium and Holland , as well as arrangements with manufactur- ers in Japan , as President Campbell noted in his speech of December 4, adverted to later. pletely abandoned in about August 1970. Despite anticipated losses at the outset in connection with production of the photocopier, production and engi- neering problems which were encountered caused addition- alunanticipated losses . According to Director of Employee Relations T. E. Lusk, the Company sustained losses in 1970 aggregating in excess of $1 million. This resulted in two layoffs in 1970; one early in August, while the plant was still at its temporary location, and the other later that month, while the plant was being moved to its new location. At the outset of its operation in Albuquerque, in 1969, Respondent recruited a substantial number of production employees under contract with an agency known as the Concentrated Employment Program, a Federally-funded, State-administered program, commonly referred to as CEP. Under this program, CEP screened members of minori- ty groups in certain age brackets who satisfied certain pov- erty-level criteria. Applicants for the program were generally referred to CEP by various agencies , such as the Work Incentive Program, the Narcotics Rehabilitation Pro- gram, and Service Employment Redevelopment Program, generally referred to as SER. After some preliminary orien- tation by CEP, the applicants were interviewed by Respon- dent. Employees hired in this manner consisted in the main of hard-core unemployed, and their wages were subsidized by the United States Government during on-the-job train- ing lasting approximately 1100 hours. They were required to possess at least a fifth grade level of education or to have completed the seventh grade of elementaryschool. Very few had received any high school education. Most of the em- ployees recruited through the CEP program were hired by Respondent as assemblers and, according to Manager of Employee Services John Vaught, of the approximately 117 eligible voters in the Board election held on December 10, 1970, between 55 and 60 had been hired through the CEP program. Vaught testified that the labor turnover among employ- ees recruited through CEP at Respondent's Albuquerque facility was far less than the national average. Respondent prided itself on the fact that, according to Vaught, the reten- tion rate at the Company's plant was 60 percent, after a year, as compared to the nationwide experience of 40 per- cent, a record unsurpassed by any other company to Vaught's knowledge. Considering the source from which these employees were recruited-the hard-core unemployed and minority groups, primarily of Mexican or Spanish ori- gin-the relatively low rate of turnover among these em- ployees is not surprising. C. The Union Organizational Campaign Against this background the Union embarked on an organizational campaign which culminated in the Board- conducted election on December 10. Serious organizational activity began in June 1970, although authorization cards had been obtained from employees at the plant as early as May 1970. From the outset, the Union waged a vigorous and militant campaign featuring distribution of a series of 28 handbills and broadsides as well as copies of the IAM contract at San Leandro and health and welfare programs and benefits, emphasizing the wide disparity between wage THE SINGER COMPANY 1201 scales and benefits at the Company's San Leandro plant and those at its Albuquerque plant. Except for the initial bulletin addressed "TO VOLUNTEER ORGANIZERS," delivered by Grand Lodge Representative Gilbert R. Padil- la, union campaign literature was distributed to employees at various access roads to the plant. The bulletin to the volunteer organizers outlined employee rights under the Act, cited examples of employer conduct deemed unlawful under Board decisions, requested the committee members to keep a record of and to report any such incidents, and admonished them not to engage in union activity during working hours, but to confine such activity on company property to nonworking time. Respondent countered with its own campaign, and be- tween July 10 and December 10, distributed either by hand- billing, mailing, or posting at the plant some 35 separate items, including a series of weekly "fact sheets," headlined "KNOW THE FACTS," each consisting of a single ques- tion and answer, purporting to educate the employees re- garding their rights under the Act and the burdens which union affiliation involved. At the bottom of each "fact sheet" appeared the refrain, "Union Promises Won't Buy Groceries." Although not all the information contained in these sheets was altogether factual or objective, it is not contended that any of the statements , standing alone, con- stituted independent violation of Section 8(a)(1). Respondent's final release consisted of the portfolio, which received widespread circulation, distributed the day before the election. On July 10, Division Vice President Gilmer wrote a circular letter to the employees, informing them of recent unsuccessful attempts to organize the plant, and warning that they would "continue to be bothered by un- ions for a while." After cautioning them against the pitfalls of signing an authorization card , and sounding the familiar arguments against unionization , Gilmer asserted that the Company "had recently discovered and resolved certain work related problems," and did not "need a union to tell us how to run our plant." The letter continued, "We feel very strongly that having a union in our plant is not in your best interests , or the best interests of the company . None of us needs the kind of problems unions bring with them." A Spanish translation of the letter was reproduced on the reverse side. On August 17, 1970, Respondent posted, and thereafter continuously maintained, on glass-enclosed bulletin boards at the plant, the following no-solicitation rule: SINGER FRIDEN DIVISION NON-SOLICITATION RULE Solicitation of employees or distribution of litera- ture by non-employees is not permitted on company premises at any time . Distribution of literature by em- ployees in working areas is not permitted at any time. Solicitation of fellow employees for any purpose is not permitted during working time. Exceptions to these rules may be permitted in unusual circumstances only by permission of the Manager-Employee Relations. The Company has found these rules to be necessary to the orderly performance of our work. By August 29, the Company had stepped up its coun- tercampaign. On a company letterhead, signed by Roger W. Johnson as acting director, Office Products Operations, also translated into Spanish, the Company commented: Your Company does not want a union in our Albuquerque plant. We do not want the strikes, lost wages and other problems that unions cause. We will do everything legally possible to keep unions out of our plant. As you know, Friden came to Albuquerque last year. One of the main reasons we picked Albuquerque as the location for our new plant was because we felt that labor and other costs here in this area would allow us to compete successfully with foreign manufacturers, and with others whose labor costs are much lower than ours. After taking the Union to task for its reckless and irrespon- sible promises of wage increases and fringe benefits based on the labor agreement at one of the Company's other plants (presumably San Leandro), the letter continued: The union knows that if they were able to force us to accept their unreasonable wage demands, we might not be able to effectively continue in business in Albuquer- que. This could mean a loss of jobs for you and a loss of income for your families. We do not want to see this happen, and we do not believe you want to see this happen. The letter concluded: We are confident that if we all work together, we can build a good future for all of us here at Friden, Albu- querque. Don't let a union destroy your future. On September 11, Grand Lodge Representative Padil- la, on behalf of the Union, wrote Johnson, as Respondent's acting general manager, notifying him of the Union's organ- izational campaign at the plant and furnishing him with the names of eight employees who would be actively engaged in union activities .6 The letter stated that the named em- ployees had been admonished against engaging in union activities during working hours, and warned the employer against any interference with or discrimination against these employees in their legitimate union activities. During the organizational campaign, the Union held at least five meetings of Respondent's employees, two of which were held at the Fraternal Order of Police (FOP) building in the vicinity of the plant, the first in June 1970. At suc- ceeding meetings, the subject of strikes was discussed. Ac- cording to Padilla, members of the organizing committee had reported that employees were being told by the Compa- ny that the IAM was organizing the employees of the Albu- querque plant so that it could call a strike and disrupt operations, in the expectation that work from the Albuquer- que plant would be restored to the San Leandro plant. Pa- dilla explained that the Union could not call a strike except on the affirmative vote of 75 percent of the employees. In response to questions regarding strikes at one of these meet- ings, the union representatives declared that no strike had ever been called at Respondent 's San Leandro plant, but that if a strike ever were called, the employees would be assisted by a strike fund. There is an intimation that the 6 The named employees were : Paul Wilson, Robert Moya, Ronald Nor- ling, Eraldo Lucero, Margaret Caldwell , Randy Martinez , Joe F . Gallegos, and Irene Castillo. 1202 DECISIONS OF NATIONAL LABOR RELATIONS BOARD union representatives assured the employees that the Com- pany could not "take a strike." The first overt action taken by Respondent occurred on September 17, when, as will later appear, seven employees were prohibited from wearing shirts displaying the IAM insignia. On October 22, Padilla notified the Company by letter of the Union's claim to represent a majority of the produc- tion and maintenance employees and technicians, and re- quested recognition on the basis of a card check. Respondent replied that it had a good-faith doubt of the Union's claim to represent a majority of employees in any appropriate unit, and requested an election. The same day, Johnson mailed a circular letter to the employees, following his practice as stated in the letter of keeping employees informed of developments, and advising them of the ex- change of correspondence with the Union? On November 9, Respondent distributed by mail, post- mg, and personal distribution a letter over Johnson's signa- ture, notifying employees of the filing of the Union's representation petition, and outlining the election proce- dure. The letter continued: I am certain all of you know that your Company feels very strongly about this matter. We do not want a union in our plant in Albuquerque. Unions have not brought a single day's work into this plant. Unions have not signed a single paycheck for our employees. Only your Company can do these things. Your future and the future of your Company depend on all of us being able to move forward together in an atmosphere of trust and cooperation. In our opinion, the presence of a union will not create the kind of atmosphere that we believe is necessary in order for us to achieve that future. The letter concluded by urging the employees to be sure to vote in the election. On November 13, Respondent and the Union entered into a stipulation for certification upon consent election, approved by the Regional Director the same day. Johnson thereupon mailed a circular letter to the employees, an- nouncing the agreement for the consent election, and, after setting forth the description of the appropriate unit, con- cluded: The decision which you make in this election may be one of the most important decisions in your working career. As I indicated in my letter earlier this week, your future and the future of your Company depend upon all of us being able to move forward together in an atmosphere of trust and cooperation. In our opin- ion, the presence of a union will not create the kind of atmosphere that we believe is necessary in order for us to achieve that future. I am confident that as you examine the statements made by all parties concerned, you will agree it is in your best interests and in the best interests of your family and your Company not to have a union in this plant. (Emphasis in original.) On November 17, Respondent posted the following 7 As has been seen , the unfair labor practice charge of refusal to bargain was later withdrawn , and the corresponding allegations dismissed in Case 28-CA-2265. no-solicitation notice, over the signature of Director of Em- ployee Relations Lusk: Your attention is called to the Company's no solicita- tion rule which provides that no employee shall solicit any other employee for any purpose on Company premises during working hours. This means that no employee shall attempt to persuade any other employee for or against any cause or point of view during working hours. In order to assure a fair election on December 10, it is essential that all employees observe this rule. The same day, November 17, General Foreman Bag- getta issued identical written reprimands to three prounion and two antiunion employees for'allegedly soliciting on company time and premises, in violation of the Company's posted no-sohcitation rule, and warning that such further activity would result in disciplinary action. On October 26, Director of Employee Relations Lusk addressed a group of employees who had been recalled after layoff. His remarks on this occasion, as well as other speeches to assembled employees at the plant on company time, by Vice President Johnson, on November 19, 25, De- cember 2 and 8, and by President Campbell, on December 4, are discussed hereinafter. At three union meetings, held after November 19, em- ployees expressed concern and apprehension that the Com- pany might close or move the Albuquerque plant. According to Union Representative Padilla, it had also been reported to him by at least two employees, Consuelo Sedillo and Irene Castillo, the latter a member of the organizing committee, that Foreman Louis R. Stanley, an admitted company supervisor, had discussed the organizational cam- paign with most, if not all, his employees, and on several occasions mentioned that the Company might move the plant. According to Padilla, too, Eraldo Lucero, a member of the organizing committee, (who was not called to testify), had reported that Pappas, his supervisor, had told him that he had "better get off this union bit because he had it on good authority the plant would move." Respondent' s inti- mation that the Union itself planted the rumor, in effect, as a "straw man," which it could then try to knock down, is illogical and unconvincing. Rather, it appears that the Un- ion vehemently sought to dispel this rumor at every turn. The final union meeting was held on December 9, the eve of the election, at the FOP hall. D. Specific Acts of Alleged Interference 1. The union shirt episode of September 17 On the morning of September 17, seven employees, all but one members of the union organizing committee, ar- rived at work wearing shirts displaying the union insignia. The seven employees were Joe F. Gallegos, Eraldo Lucero, Randy Martinez, Freddie Marquez, Robert Moya, Ronald Norling and Paul Wilson. All but Freddie Marquez were members of the organizing committee. The shirts, obviously designed-for the purpose, were short-sleeved dress shirts, in white or blue, displaying an IAM emblem about 1-3/4 inches in diameter on the left front pocket, and a similar emblem, about 6-3/4 inches in diameter, in the center of the back of the shirt. THE SINGER COMPANY 1203 Moya, the first to arrive, was about an hour early for work and went to the break area located in the vicinity of General Foreman Baggetta's office . Soon afterward, he was joined by Martinez and Marquez, wearing similar shirts. Some 15 or 20 employees, attracted by the shirts, congregat- ed around them in the break area before the shift started. Baggetta observed the scene from his office but took no action . At about 8 o'clock, the start of the workday, Bagget- ta instructed Gene Balderston and Brenda Henderon, su- pervisors of the employees who were wearing the union shirts, to escort them to his office. Martinez, a material handler who had arrived at work wearing the IAM shirt and several union buttons, saw Bald- erston leaving the area with Moya and Marquez. After they were gone , Henderson, Martinez's forelady, instructed him to accompany her to Baggetta's office. When all the em- ployees wearing the union shirts arrived, Baggetta told them that he would have to obtain an opinion as to whether the wearing of the shirts was permissible, and sent for Lusk. Meanwhile, Consuelo Sedillo, and several other women who had been wearing union buttons on their shop coats, were also summoned to Baggetta's office. When Lusk ap- peared, he notified the three men that they were not wearing proper working attire, that they could not wear the union shirts in the plant, and ordered them to clock out and return wearing proper attire. Martinez asked Lusk if they could wear their shop coats over the shirts. Lusk said that that would not be acceptable, and that the shirts could not be worn on company premises . Lusk also stated that the wear- ing of union buttons was permissible but that buttons could not be worn on company shop coats. The three men clocked out, left the plant, and tele- phoned Union Representative Padilla to report what had occurred. They later returned to the plant and, after leaving the union shirts in Marquez's truck, clocked in. Martinez was then wearing six union buttons, three on the outside of each trouser leg. Gallegos also arrived at work that morning wearing a white union shirt displaying the IAM insignia . After the starting bell, Trig Bergseth, Gallegos' supervisor, told him that they would have to see Larry Neely, Bergseth's supervi- sor. En route to Neely's office, they encountered Lusk on his way to Baggetta 's office. Lusk reproached Gallegos for wearing improper work attire, told him that he could not wear the shirt on company property and that he would have to remove it immediately. Gallegos removed the shirt in Lusk's presence and continued to Neely's office with Berg- seth. Neely instructed Gallegos to get rid of the shirt before returning to the plant. Gallegos went to the parking lot without clocking out, left the shirt in his car, and returned to work. He apparently lost no pay over this incident. Ronald Norling, a union committeeman , reported to work about 5 minutes before starting time wearing one of the blue short-sleeved shirts displaying the IAM emblem, as well as a button bearing the legend, "IAM Committee Member" and another union button. According to Norling, Foreman Balderston, his supervisor, irately told him that he would have to leave. Asked why, Balderston told him that he would have to change his shirt, that he would not be allowed to wear it in the plant. Norling agreed to comply but wanted Balderston to repeat what he had said before wit- nesses. Balderston said he would be glad to do so. Norling then went to a group of women on the assem- bly line, and asked them to listen to what Balderston had to say. Balderston, according to Norling, took him by the arm and remarked that he, Balderston, was not a "member of this [obscenity deleted] outfit," that these girls did not work for him, and that he would make his statement in the presence of witnesses from his own department. Norling and Balderston then went to the break area, where some electronic technicians were seated, and Balderston repeated what he had told Norling regarding the wearing of the union shirt. Norling then left, with the comment, "O.K., thank you, but I will stop off at the Labor Board first." In Balderston's version, Norling had arrived at work late that day, after it had already been decided that the union shirts constituted inappropriate working attire. Act- ing on previous instructions, Balderston told Norling that he was wearing inappropriate working attire, and instructed him to go home and change. Except for denying that he had used profanity in front of the women, Balderston's version did not differ materially from that of Norling. Norling returned to work about 10 o'clock, and sought an interview with Lusk. Balderston later notified him that General Foreman Baggetta would talk to him. In a discus- sion with Baggetta. in the presence of Supervisors Balder- ston and Henderson, Baggetta told him that he had been sent home for violating the no-solicitation rule, and stated that employees could wear union buttons but not the shirts. When Baggetta commented that the union insignia on the shirts was too conspicuous and blatant, Norling replied that the Company had permitted shirts displaying the University of New Mexico emblem as well as those of other colleges, and other insignia, to be worn in the plant. Baggetta re- joined, "Oh, come on, Ron, there is a big difference between walking into a group bearing a banner that says `God Bless America' versus one that says `Mao Tse Tung or Red China or Sweden is Wonderful.' " Norling retorted, "In other words, you are discriminating against union emblems, that there is something wrong with wearing union emblems." Baggetta answered, "Yes. It may be offensive to people for you to be wearing that and you may be disrupting people at work if you are wearing that shirt." When Norling de- murred, Baggetta told him that as many as 90 employees might leave their work stations to look at the shirt, with resultant loss of man hours. According to Norling, he told Baggetta that fewer man hours would be lost because of the wearing of union shirts than from meetings of foremen with their employees and the shutting down of the plant for mass meetings and speeches .8 Although Norling estimated that he was "docked" about 2 hours due to the shirt incident, he did not question this because of a notice posted on the bulletin board to the effect that employees would not be paid for the time lost in removing the union shirts .9 8 Actually, the earliest speech disclosed in the record was Lusk's speech, on October 26, to employees returning from layoff 9 This was an apparent reference to a memorandum , dated the same day, addressed to all employees by Employee Relations Manager Lusk, on the subject of proper working attire, criticizing the Union' s "irresponsible behav- ior" in regard to the union shirt incident, summarizing the Company's re- sponse, and announcing that the employees who were wearing the union Continued 1204 DECISIONS OF NATIONAL LABOR RELATIONS BOARD It is undisputed that the Union had made the decision to have the men wear union shirts at the plant on September 17. Admittedly, no request had been made of any company official for permission to do so because, in the Union's view, the employees were within their legal rights. It is also ob- vious that Respondent knew in advance of the Union's plan. According to General Foreman Baggetta, Moya had in- formed him and Lusk to this effect, and Lusk testified that he himself had noticed one of these shirts in a car in the parking lot several days before the episode. After consulting house counsel, Lusk met with Bagget- ta and other supervisors to decide on a course of action. In Baggetta's opinion, the wearing of union shirts in the plant could cause controversy and disruption of production. It was decided that employees wearing union shirts would be sent to the general foreman's office. Lusk testified that the decision was made in part because of recent layoffs and problems arising out of resumption of production. In addi- tion, according to Lusk, he had learned through supervisors and employees that the organizing drive had engendered tensions between prounion and antiunion factions with en- suing arguments, discussions, and flareups, resulting in loss of production. He concluded that the wearing of union shirts would result in such distraction among the employees as to disrupt production. In support of this contention, Respondent introduced a summary of production reports for the period from Sep- tember 10 to September 24, expressly prepared for the hear- ing. According to this summary, which went unchallenged, the week before the shirt incident the plant was meeting its production quota. On the day of the incident, production was appreciably lower, as a direct result, in Baggetta's opin- ion, of the wearing of the union shirts. The following day and thereafter, at least until September 24, the last date covered by the summary, production had increased to with- in normal limits. According to Baggetta, he attributed the improvement in production almost entirely to the action taken by Respondent with regard to the wearing of the union shirts. This evidence is too inconclusive to warrant a finding that the drop in production on the day in question was primarily due to the wearing of the shirts. It is at least equally reasonable to infer that any disruption in produc- tion was attributable to Respondent's action in attempting to suppress the wearing of the union shirts. Respondent concedes that, under Board doctrine, in the absence of special considerations relating to employee efficiency and plant discipline, an employer's prohibition of the wearing of union insignia, including shirts bearing such insignia, is an unwarranted interference with the employees' right to engage in organizational activities.10 shirts had not been paid for the time they were away from the plant to remove their improper working attire '°Citmg Eckerd's Market, Inc, 183 NLRB No. 40, Serv-Air, Inc, 161 NLRB No. 17, enfd. in part 395 F 2d 557 (CA. 10), Fabri-Tek, Inc, 148 NLRB No. 156 (1623, 1628), also cited by the General Counsel. See also, Power Equipment Co, 135 NLRB 945 , enfd as modified 313 F.2d 438, 318 F.2d 717, 319 F 2d 861 (C A. 6), cited by the Union at the hearing While recognizing the underlying principle Respondent maintains, however, that in the cases cited by it, no special circumstances were found to justify the employer's interference ; that the employer had either introduced no evidence to show any loss of production or efficiency, or had failed to prove that the wearing of union insignia in the plant had a disruptive effect, that the company had failed to explain why the wearing of one button was less Respondent contends that the record here establishes special circumstances and considerations, justifying its deci- sion to prohibit the wearing of union shirts. Starting with the premise that the Company had encountered serious prob- lems in gearing up for production; that the abandonment of production of the photocopier had resulted in substantial unanticipated losses , resulting in two layoffs during the pre- vious month; and that the Company had sustained a loss of more than $1 million for the year, Respondent maintains that it could not risk further disruption of production. Granting all this, to conclude, as Lusk did, without any demonstrable causal relation, that the mere 'wearing of un- ion shirts in the plant would have had an adverse effect on production, employee morale, and efficiency, especially where the employer has permitted the wearing of other ap- parel bearing insignia of comparable dimension and design without hindrance, and, it might be added, without impair- ing production or efficiency, is to hold that shirts displaying union insignia are inherently disruptive of production and employee discipline or morale. It cannot be gainsaid that a union organizational cam- paign, by its very nature, controversial, particularly where it is met by vigorous opposition, not to say hositility, where competing factions are vocal and vehement, may result in disruption which could affect production, employee morale, and discipline. But this is not to say that the mere wearing of union insignia or shirts displaying union insignia is inher- ently and necessarily disruptive. The degree of disruption may often depend on an employer's countermeasures in combatting the union's efforts at organization. Here, Re- spondent expressed its strenuous opposition to the self-de- termination of its employees at a constantly accelerating rate with the approach of the election. Moreover, it is undis- puted that prior to the advent of the Union, and thereafter, while the campaign was in progress, Respondent permitted employees to wear a wide variety of shirts or sweatshirts bearing emblems, insignia , and symbols as well as medal- hons of varying types without hindrance or discipline. To equate, as Baggetta did, the wearing of shirts with union insignia with propaganda favoring foreign countries is a measure of Respondent's hostility toward the Union, and an acknowledgement that the Company was less concerned with disruption of production than with a determination to impede the Union's organizational campaign. The Company's real motivation is perhaps best epitomized by Lusk's testimony: Q. (By Mr. Hollis) Mr. Lusk, on the objections to the shirt, I take it you were not objecting to the emblem on the left front pocket of the shirt, or were you? A. Well, actually, I was objecting to the shirt as a whole, because I felt that the shirt, as a whole, the blue and white, had the emblem on the back and the em- blem on the front. And I felt the whole shirt, to me, was a symbol of the IAM, and I felt-so it was the shirt, per se. It is worth noting that, if Respondent was actually concerned about distractions, which might lead to disrup- tion of production, and interference with employee morale disruptive than the wearing of more than one, that there had been no strike or animosity among the employees, and no substantial evidence , that the wearing of buttons, which were small and innocuously labeled, affected plant production or discipline. THE SINGER COMPANY 1205 and discipline, this did not prevent it, as will later be seen, from posting and displaying conspicuously in working areas for a week before the election varicolored placards urging the employees to vote against the Union. Nor, for that mat- ter, did it permit its concern for loss of production to deter it from assembling its employees on company time and property to listen to antiunion speeches on at least four separate occasions before the election . Despite claims of heated arguments , flaring tempers , and tensions between union and antiunion factions, the record is singularly free of any evidence of violence or threats of violence, and what- ever tensions may have been generated were no more than might be expected in the course of a union election cam- paign. The preponderance of the reliable, probative, and substantial evidence does not support Respondent's conten- tion that special circumstances justified the prohibition of the wearing of shirts displaying union emblems or other union insignia. It is therefore found that by preventing employees and union adherents from wearing shirts displaying union insig- nia on September 17 and thereafter at least until December 4, and by penalizing employees with loss of wages until they ceased wearing such shirts, Respondent has interfered with, restrained, and coerced employees in the exercise of rights guaranteed in the Act. Respondent's reversal of position, mentioned in Johnson's speech on December 4, some 2-1/2 months after the episode, informing the employees that in view of the anticipated filing of an unfair labor practice complaint re- lating to this issue, employees desiring to wear union shirts were free to do so pending a determination by the Board, does not amount to an effective repudiation of its previous policy, nor is it sufficient to dissipate the effects of its other- wise unlawful conduct. It is apparent that Respondent al- tered its policy only after it became aware that the Regional Office intended to issue a complaint rather than out of a willingness to refrain from interfering with the rights of its employees. More importantly, the delay of 2-1/2 months in taking remedial action deprived the employees of the right to engage,in this form of organizational activity during this interval. It is not without significance that no shirts display- ing union insignia were thereafter worn at the plant, despite Johnson's grudging permission. 2. The wearing of campaign buttons a. Union buttons Early in the organizational campaign, members of the organizing committee as well as other employees began wearing union buttons in the plant." As has already been noted, on September 17, the day "Specimens of these buttons introduced in evidence consisted of three types. Two were about 2 inches in diameter , and the third about 1 - 1 /2 inches. Of the two larger buttons , one bearing the letter "M" in white, almost the size of the entire button, contained an insert in red, reading "GO GO," all superimposed on a blue background covering the entire button The other, contained the letters "IAM," about the size of the entire button , in white, on a red background . The third button bore the legend "IAM," in white , cover- mg the upper third of the button , with the word "COMMITTEE," on a white stripe underneath , in the middle , with the word "MEMBER," also in white beneath that, all superimposed on a red background. of the union shirt incident, Sedillo and other female employ- ees wearing union buttons on their shop coats were sent to Baggetta's office. Lusk, who had been summoned by Bag- getta, told these employees that they could wear union but- tons, but not on their shop coats. During this interview, or at some later time, they were told that they would be permit- ted to wear two union buttons. The shop coats, light or dark blue, some bearing the insignia "Singer Fnden," were supplied by the Company without charge. Employees were not required to wear shop coats, except on special occasions such as visits by company officials or other dignitaries. Some employees, however, as- sumed that they were expected to wear the shop coat at work, though there is no evidence that they were instructed to do so. When Lusk informed the employees in Baggetta's office that they could not wear the buttons on the shop coat, Sedillo removed hers but pinned them on the bodice of her dress in such a way that they would not be covered by the shop coat. About 2 or 3 weeks before the shirt incident, Forelady Henderson saw Martinez wearing three union buttons on his shirt and a similar number on the outside of each trouser leg. After checking with Baggetta, she told Martinez that he could wear only two buttons, and that he could verify this with Baggetta. Later, in Baggetta's office, in Henderson's presence, Baggetta told Martinez that he could wear two buttons but would have to remove the buttons on his trouser legs because they were attracting too much attention and creating confusion. Martinez complied. When Martinez returned to the plant on the morning of the shirt incident, he was wearing six union buttons, three on the outside of each trouser leg. About a half-hour later, Henderson took him to task for this, and told him that if he did not remove some of the buttons, he would be given a reprimand. Martinez removed all but one of the buttons, despite the fact that Lusk had told employees that they could wear two buttons. When Martinez later went to Baggetta's office to inquire whether he could wear two but- tons, he was told that that would be acceptable. b. Antiunion campaign buttons The complaint in Case 28-CA-2265 alleges, among other things, that during the period between October and December 1970 Respondent, through its officers , agents, and supervisors, "permitted, during working time on Respondent's property, the manufacture and distribution of buttons reading 'NO' and `VOTE NO' and permitted an- tiunion solicitation during working hours on Respondent's property in violation of its no-solicitation rule while prohib- iting solicitation for the Union on Respondent's property during working hours, in or out of working areas." These allegations are presumably based upon the following events. Melvin Lucero, a leadman in the wire preparation de- partment, had been employed by the Company for nearly 2 years at the time of the hearing. About 10 days before the election, Lucero made up about 24 pasteboard antiunion buttons. According to him, while on his break period, he traced the pattern of a campaign button on a manila folder, which he claimed he brought from home, and lettered each circle with the word "Vote" and the word "No" underneath 1206 DECISIONS OF NATIONAL LABOR RELATIONS BOARD in red. He then cut out the circles, thus producing 24 paste- board buttons, 3 inches in diameter.12 According to Lucero, he made up all the buttons in a single day, while he was in his break area, during his morning and afternoon breaks. Although there were other employees in the break area, he did not think they saw him making the buttons. On the other hand, it is evident that Lucero made no effort to conceal his activity. Paul Wilson, a stockroom attendant who observed Lucero making the buttons with the use of a "magic mark- er," testified that he saw no foremen or supervisors in the area at the time. He did not report the incident to any of his superiors but notified his union representative of what he had seen. Benito Aguilar saw Lucero lettering the paste- board buttons, and later noticed him toss a button in front of a woman on the assembly line, possibly as Lucero was returning from his break but after the female employees had returned from theirs. Herman Lovato testified that Lucero gave him ten such buttons at about 7:30 in the morning 10 or 12 days before the election, and that he, Lovato, distributed them to em- ployees, though not dunng working time . Lucero, however, testified that he could recall giving Lovato only one button, but that other employees might have asked him for buttons during a break period, and that he obliged them. Lovato, called as a witness by Respondent, was no longer in its employ and manifested no discernible motive for favoring either party. His testimony is credited. Despite the absence of direct evidence that any fore- men or supervisors were aware that Lucero was making up these buttons, and his testimony that his foreman, Bill Mur- ray, did not see him distribute any of these buttons, Lucero conceded that he was later warned by his foreman about soliciting. Although Lucero testified that this was the only type of button he had anything to do with, other antiunion paste- board buttons were distributed in the plant. These were somewhat smaller, on a pink background, inscribed either, "No" or "Vote NO," in black lettering. A similar button on a yellow background bearing the word "NO" in red lettering was also distributed at the plant. Joe Gallegos, a maintenance shop electrician and member of the organizing committee, testified that he saw Jim Keicher, a maintenance shop employee, passing out cardboard buttons, but was uncertain whether this occurred before or after November 13. According to Gallegos, Keich- er stated that those were the only buttons he had to start with, but that he expected some commercially-manufac- tured buttons from a lawyer friend who was opposed to union organization because he believed it would discourage other industry from coming to Albuquerque. Some time afterward, between November 13 and the date of the elec- tion, Keicher brought in a cardboard box containing manu- factured buttons with the comment, "I finally got the good ones." Gallegos later observed Keicher, on the latter's work- ing time , distributing buttons to employees who were on their break. As far as Gallegos was aware, no one registered 12 On the specimen of this makeshift button received in evidence , someone, other than Lucero apparently, had written in longhand the legend , "ILL [I'll] any complaint regarding Keicher's activity. According to Aguilar, Keicher passed him on the as- sembly line carrying a box containing "Vote No".buttons, but could not say whether Keicher was on his break at the time. Aguilar did not actually see Keicher talking to em- ployees, discussing the Union, or passing out buttons on working time. Union Committeeman Moya testified that about a month before the election, he noticed several quality control employees wearing "Vote No" buttons on shop coats. When he protested to Foreman Balderston, he was told that Bald- erston would take care of it. Moya conceded that this was done. Balderston recalled the incident as having occurred dunng the last week of the election campaign, and testified that he could recall no other such complaints, and that he had not seen employees wearing such buttons. Moya testified, too, that about 2 weeks before the elec- tion, during working time, Keicher brought a box contain- ing white metal buttons inscribed with the word "NO" in black lettering 13 to the quality control section, adjacent to Moya's work area, and remarked, "This just came in, we had to send for them by air, but they came in just in time." Moya testified that employees helped themselves to these buttons during working time from the box in Keicher's work area, but that he did not complain about the incident. When Maintenance Department Foreman Edward Sedal saw Keicher bring a cardboard box containing "Vote No" buttons into the shop about 10 o'clock in the morning, some 3 weeks before the election, Sedal told Keicher to "cool it," and cautioned him against displaying or distrib- uting the buttons during working hours. There was no evi- dence that Keicher disobeyed his foreman's instructions. According to Martinez, he observed employees wear- ing "NO" buttons on shop coats some 7 or 8 days before the election. He conceded, however, that 3 or 4 days after the "Vote No" buttons were worn on shop coats, and about 2 or 3 days before the election, Baggetta told him that he could wear his union buttons on his shop coat if he wished. Although it is evident that at the outset Respondent attempted to restrict the number of union buttons which could be wom at the plant, by mid-September it had agreed that employees would be permitted to wear two union but- tons, provided they did not wear them on shop coats. Since the shop coats were the property of the Company, wearing of union buttons on the coats might have created an impres- sion of official endorsement of the Union. The restriction therefore was not unreasonable, especially as employees were only in rare instances required to wear the coats, and had only to leave the coats off, and wear their union buttons on their work apparel, if they wished to do so. Moreover, the evidence discloses that even this restriction was removed several days before the election. With regard to the antiunion buttons, both of the makeshift variety and those commercially manufactured, there is no direct evidence that the manufacture and distri- bution of these buttons was initiated, directed, or sponsored by company officials or supervisors or conducted in the presence of any of them, or that this activity took place on working time or while any supervisor was in the vicinity. read Your Trash and Still," over the words "Vote No," and "I know Your 13 The lettering on the button, slightly larger than 2 inches in diameter, was Union," underneath actually blue THE SINGER COMPANY 1207 Indeed, Foreman Sedal admonished Keicher not to display or distribute the buttons during working hours. It may perhaps strain one's credulity to conclude that Respondent was not aware of the distribution of the antiun- ion buttons. It may also be assumed that the activities of its antiunion employees served Respondent's purpose, and that it welcomed this activity as a means of counteracting the union campaign, but it cannot be assumed that because the Company opposed the Union it became automatically re- sponsible for the conduct of antiunion factions without re- gard to whether they engaged in this activity during working time , or with Respondent's knowledge, acquiescence, or consent. The preponderance of the credible evidence fails to establish that Respondent knowingly permitted the manu- facture and distribution of antiunion buttons during work- ing time. Moreover, since Respondent permitted the wearing of prounion buttons at the plant, both during work- ing and nonworking time, it cannot be said that it accorded the rival faction preferential treatment by permitting it to distribute antiunion buttons during nonworking time and by permitting such buttons to be worn in the plant. 3. The no-solicitation rule and its enforcement The no-solicitation rule, posted on August 17, repub- lished on November 17, does not proscribe distribution of literature or solicitation in nonworking areas during non- working time. In the absence of any evidence that the rule was adopted for a discriminatory purpose or that it was discriminatorily enforced, the rule is presumptively valid.14 The General Counsel contends, however, that the rule was discriminatorily enforced as a means of preventing or impeding union organizational activity, and, to this extent, violated Section 8(a)(1). Gooch Packing Company, 162 NLRB 1, 6-7; Logan Manufacturing Company, 162 NLRB 1586. On November 17, General Foreman Baggetta issued written reprimands to Robert Moya and Randy Martinez, members of the organizing committee, and Juan Carrillo for allegedly soliciting on company property during working time in violation of the no-solicitation rule. All three em- ployees protested their reprimands, denying the charges, although Carrillo admitted that he might have discussed the Union on company time with other employees, and Moya admitted that he had tried to persuade employees to his viewpoint. Martinez also acknowledged that the Union had been discussed "up and down the line, by all the employ- ees," including himself. Forelady Henderson testified that she had received a complaint that all three employees had been soliciting on behalf of the Union during working time , and that she immediately reported this to Baggetta . Jim Fries, a techni- cian, had made a similar complaint to Baggetta about these three men. When this was reported to Director of Employee Relations Lusk, he authorized the issuance of the written reprimands. Admittedly, neither Baggetta nor Lusk made an independent investigation of the charges, and gave these 14 Stoddard-Quirk Manufacturing Company, 138 NLRB 615, 621, Walton Manufacturing Company, 126 NLRB 697; Republic Aviation Corporation v N.L.R.B., 324 U.S. 713. Cf. Farah Manufacturing Company, 187 NLRB No 83. employees no prior oral warning. At about this time, Committeewoman Castillo reported to Committeeman Moya that Nell Carlson and Herman Lovato had been soliciting against the Union during work- ing time. Moya relayed this complaint to Foreman Stanley, who warned both the employees against soliciting, remind- ing them of the no-solicitation rule. Stanley told Castillo, however, to report any such complaints to him directly in the future. Baggetta decided to issue written reprimands to these employees as well. On the surface, the issuance of written reprimands to the two antiunion as well as to the three prounion employees would tend to indicate an ab- sence of discrimination in enforcement of the rule against the union adherents. The General Counsel maintains, however, that the is- suance of the written reprimands to the two antiunion em- ployees was merely window dressing designed to lend an aura of verisimilitude to its claim of neutrality. According to Castillo, 2 days after Baggetta issued the written repri- mands, she complained to Moya that Carlson had been soliciting her against the Union during working hours. Stan- ley later summoned Castillo, and told her that Carlson had been reprimanded, presumably orally, and warned that if she continued to solicit during working hours she would be terminated. The General Counsel contends that since, according to Castillo, Carlson had solicited her against the Union 2 days after receiving her written reprimand, Respondent's failure to impose further discipline beyond a mere oral reprimand manifests a discriminatory enforcement of the no-solicita- tion rule. It is not altogether clear from Castillo's testimony whether she was referring to Carlson's initial instance of solicitation or a repetition of that conduct, and the evidence is, therefore, insufficient to warrant a finding that Carlson had engaged in further acts of solicitation for which she was not further disciplined.15 In any case, the failure to conduct an independent investigation of the complaints of solicita- tion against union adherents indicates the precipitate haste with which Respondent sought to discipline them. On the other hand, the failure to conduct a similar investigation with regard to union antagonists would tend to negate a basis for a charge of discrimination. If this were all that were involved on this aspect of the case, a finding of discrimina- tory treatment of union proponents would be unwarranted. Respondent's conduct in this regard, however, was not an isolated occurrence. As will presently be seen from the testi- mony of Forelady Henderson, her treatment of other em- ployees violating the no-solicitation rule was in decided contrast to that accorded union employees. This lends some support to the General Counsel's argument that Respon- dent issued written reprimands to antiunion employees so that it could maintain that it was enforcing the rule impar- tially as to all employees. 4. Further instances of solicitation by antiunion employees According to Committeeman Gallegos, Ronald Clot- Carlson was no longer in Respondent 's employ at the time of the hear- mg, and its counsel represented that he had been unable to locate her after a diligent effort. 1208 DECISIONS OF NATIONAL LABOR RELATIONS BOARD felter, a quality control technician (line foreman at the time of the hearing), told him once or twice that the Union would do nothing but create problems. Other union adherents, specifically Rudy Gurule, Carrillo, and Moya, had reported to him that Clotfelter had also approached them but Galle- gos knew of no complaints about Clotfelter's activities. Gallegos conceded that he himself had discussed the Union with fellow employees on working time but maintained that he "really wasn't pushing it on them." Clotfelter admitted that he discussed the Union with Gallegos frequently, but could not recall whether such con- versations occurred during working time, and could recall no such discussions in the presence of supervisors. Since Clotfelter was not a supervisor at the time, the evidence is relevant only to show disparate treatment of prounion em- ployees. In the absence of any showing that Respondent was aware of Clotfelter's antiunion activities on working time, the evidence is insufficient to support a finding that Respondent discriminated against prounion employees in regard to solicitation on company time and property. The implication in Martinez's testimony, that because employee Iva Jo Jackson ordered him away, and refused to discuss the Union, whenever he approached her wearing union buttons, she was soliciting against the Union, is wholly unwarranted. Admittedly, Martinez never complained to anyone in au- thority about her alleged solicitation. During cross-examination of Forelady Henderson, evi- dence was elicited that, in the fall of 1970, she received complaints that two of her employees, Joy Legg and Jane Gibbard, were distributing advertising and promoting and selling Avon (cosmetic) products to assembly-line employ- ees during working time. Since this obviously occurred after the August posting of the no-solicitation rule, these employ- ees were clearly in violation of the rule. Henderson testified that she gave these employees an oral warning, and that they thereafter limited their enterprise to rest and lunch periods. There was no showing that Henderson reported the violation to General Foreman Baggetta or Director of Em- ployee Relations Lusk or, for that matter, that they had even been aware that these employees had been conducting a sideline at the plant on company time. Nevertheless, Henderson's treatment of the infraction was in decided con- trast to that meted out to the employees who had been accused of soliciting in favor of the Union. Henderson's testimony that a mere oral warning sufficed to prevent any reptition of the offense does not explain why she did not deal with the union adherents in similiar fashion. This sup- ports an inference that the Company was less concerned with solicitation on company time and property in general than with solicitation for union support and allegiance, and that the no-solicitation rule was discriminatorily enforced against the Union to inhibit and restrain its organizational activities. 5. Further instances of interference, restraint, and coercion In August or September, shortly before the morning rest period, Foreman Balderston assembled some 10 of his employees in the rework department. According to Moya, Balerston told them that they did not need a union; that unions did not benefit but would only hinder the employees. Joe Baca interjected that the employees were entitled to better wages, that they were tired of "eating beans," and would like to enjoy some meat at least once a week. Balder- ston rejoined, according to Moya, "Well, if the union comes in, I will still have steaks in my refrigerator, and you will still be eating beans." Moya testified that at another meeting about a month later, Balderston stated that the Company did not need a union , and pleaded with the employees to "give it a chance," pointing out the importance of having the Company in Albuquerque. Balderston acknowledged that he met with his employ- ees frequently in small groups whenever he felt it necessary, and that he did so in August and September. He denied, however, that he questioned the employees regarding their union interests, stating that he merely asked them about their problems. At one of these meetings, according to him, Baca spoke of joining the Union and the possibility of a strike. Displeased with the turn the discussion had taken, Balderston decided to adjourn the meeting but before he could do so, Baca made some mention of "beans," and remarked, "We would like to have steak in the refrigerator." Next morning, Baggetta notified Balderston that some of the employees were bitter about the remark attributed to him by Moya. Balderston then went to the employees, branded the statement a lie, and asked who had quoted to him to that effect. Receiving no response, Balderston gave his version of what had taken place. He categorically denied at the hearing that he had made the statement, saying that he could not understand why anyone would accuse him of making such remarks. In view of Balderston's qualified admission that the substance of the remarks imputed to him by Moya was discussed, and the prompt complaint to Baggetta concern- ing these remarks, it is probable that Balderston made the remarks attributed to him out of pique prompted by his opposition to the Union. It can hardly be contended seri- ously, however, that Balderston's remarks constituted a threat of reprisal. However vindictive the remark might ap- pear, it is obvious that Balderston was merely expressing his personal opinion that the selection of the Union would not, in itself, bring about any material change in his personal economic status as compared with that of the employees under his supervision. To this extent, his remarks were pro- tected by Section 8(c) of the Act. It is, however, found that Balderston interrogated his employees regarding their union sympathies and interests, without valid excuse or justifica- tion, and that Respondent thereby violated Section 8(a)(1) of the Act. Mention should also be made of an incident which occurred on about November 17, when Foreman Stanley engaged Martinez in a discussion about the Union. After some desultory conversation, Stanley questioned him about why he felt a union was needed at the plant, and assured him that conditions would improve. According to Stanley, Martinez had stopped at his desk, and started the conversation. At some stage, Martinez asked him whether the Company would move the plant if the Union came in. Stanley replied that he had no way of knowing. Martinez then remarked, "Well, how could they move, they've got too much money [for they've got $5 mil- THE SINGER COMPANY 1209 lion] tied up in here ." Stanley commented, "That's not a great deal of money to the Company as far as I am con- cerned . As far as my opinion is concerned , it is just a drop in the bucket." In Martinez 's version, Stanley said that, as far as Singer was concerned , $5 million was a "drop in the bucket," and that the Company could move the plant at any time. Whether-, as Martinez claimed, Stanley invited him to his desk and initiated the discussion or whether , as Stanley maintained, Martinez first broached the subject, is not ma- terial . Since Martinez was a member of the organizing com- mittee , it is not inconceivable that he could have sought out Stanley in an effort to lay to rest rumors regarding the possibility of plant closure . On the other hand , Martinez's testimony that Stanley invited him over for a talk because they had not visited for some time , presumably as a pretext for discussing the Union , is, at least , equally plausible. That Stanley did not deny questioning Martinez about the Union lends credence to Martinez's version. Moreover, it is sigmfi- cant that, in a pretrial affidavit , while denying any recollec- tion of the "drop in the bucket" remark , Stanley acknowledged at the hearing that he had used it in his discussion with Martinez . There is no doubt that rumors were rife throughout the plant regarding the question of plant closure . According to Stanley , however, he told Marti- nez that he had no knowledge of the Company 's intentions. Not content with that , he admittedly proceeded to dismiss the $5 million investment as "a drop in the bucket ," thereby conveying the impression that if the Company decided to close or move its plant, rather than deal with a union, its substantial capital investment would not prove an obstacle. Whether Stanley's remarks constituted a mere expression of his personal opinion or whether they reflected high level company policy , such statements are too equivocal to war- rant a finding of threat of plant closure or to constitute an independent violation of Section 8(a)(1) of the Act. The remarks, however , are considered in the context of the speeches of company officials dealing with the issue of threats of plant closure , and the totality of Respondent's conduct. In a conversation in about mid -November , Kenneth R. Sheehan, a production analyst or scheduler , questioned Paul Wilson during working hours as to why he was in favor of the Union and suggested that if he was dissatisfied he look elsewhere for a job . According to Wilson, Sheehan told him that if he were in Russia , he could get into trouble for his views. Sheehan admitted that he spoke to hourly paid employ- ees about the Union during working time five or six times while the campaign was in progress . He asked them what the Union could accomplish for them but never recom- mended that they vote for or against the Union , though he urged them to vote in the election . Sheehan disclaimed any recollection of the conversation with Wilson , testifying that he knew of no reason for saying what Wilson had ascribed to him . In view of Sheehan's lack of recollection of the incident, Wilson's positive testimony , and the unusual na- ture of the remark , it is found that Sheehan made the state- ment. In any case, Respondent denies that Sheehan was a supervisor at the time. Sheehan possessed none of the customary indicia of supervisory authority and, according to Lusk , had never been a supervisor , though , like other production schedulers, he had been classified since September 1969 as an exempt salaried employee , at a salary of $770 per month , at the time of the hearing . As production scheduler , Sheehan's princi- pal duties consisted of obtaining monthly production quo- tas from the production control manager , and preparing a weekly list of parts required by the operators which he furnished stockroom employees for distribution to produc- tion employees. Wilson testified , however , that in the spring of 1970, Sheehan gave him half a day off for a court appearance, after Leadman Danny Vigil had referred him to Sheehan. Sheehan denied any recollection of having given Wilson time off , but recalled an incident in August or September 1969, while the Company was still at its former plant, when Vigil himself had had occasion to go to court . According to Sheehan, although he had no authority to grant employees time off, he took it upon himself to do so in Vigil 's case, advising him not to show it on his timecard . There were only about ten hourly employees at the plant at that time, only two of whom were stockroom employees. As the plant was "just starting up," and there were no production control supervisors at the time , there was no one else from whom Vigil could request the time off . He had not been aware, until the day before he testified , that anyone in management knew that he had granted time off on this occasion, and testified that he has never done so since. The evidence is insufficient to establish that Sheehan was a supervisor or agent of Respondent at the time in question , and there is no other basis for attributing his state- ments to Respondent. 6. Withholding of wage increases and promotions During the period in question , Respondent employed two classifications of production employees , designated as "Assembler 1" and "Assembler 2." In the fall of 1970, of about 115 unit employees , 70 were classified as assembler 1. Both classifications performed substantially the same tasks , assembler 1 employees being classified as assembler 2 after an appropriate interval . The wage rate for assembler 1 ranged from $ 1.70 to $2 . 10 an hour ; the rate for assembler 2, from $2 to $2.40 an hour. At the time of the Union's organizational campaign, some assembler 1 employees were performing the same work as those classified as assembler 2, but receiving the lower wage scale . Promotions from assembler 1 to assem- bler 2 were generally based on informal recommendations by the foremen . Since there was no specific job description for assemblers , dissatisfaction was prevalent among these employees . Stanley had considered submitting a list of qual- ified assembler 1 employees for promotion , but with the election in the offing , Baggetta instructed Stanley to with- hold any reclassifications until after the election . When em- ployees asked about the possiblity of promotion, Stanley told them of Baggetta's instructions . According to Stanley, no employees were promised promotions , nor were they told that promotions would depend on the outcome of the elections. Early in November, supervisors were notified that no 1210 DECISIONS OF NATIONAL LABOR RELATIONS BOARD promotions or reclassifications would be made until after the election , when a job study would be undertaken. Be- tween August and November 1, according to Lusk, one or two employees were promoted from assembler 1 to assem- bler 2 , but no promotions were granted between November 4 and December 10, the date of the election . It was disclosed at the hearing , however, that Lusk had apparently been unaware of these promotions until Stanley testified, but these employees did not receive their promotions until May 1971. Respondent contends that it withheld the promotions or reclassifications out of concern that the action might be regarded as an attempt to influence the outcome of the election . At no time prior to or during the campaign did the Company promise or announce that any employees would be promoted from assembler 1 to assembler 2 or that the Company was in the process of reevaluating the jobs. Lusk testified , however, that a step increase program , based upon length of service , had been instituted early in August, and that these increases were put into effect. The record establishes that prior to the advent of the Union , Respondent had routinely reclassified assemblers 1 to the higher rated classification after an unspecified period of time, depending, presumably, upon the progress made by the employee . Respondent 's contention that it deferred pro- motions or reclassifications because of the impending elec- tion ignores the fact that the representation petition was not actually filed until November 4, and the consent election agreement executed on November 13, 1970 . The applicable principles governing this situation have been stated as fol- lows: An employer's legal duty in deciding whether to grant benefits while a representation case is pending is to determine that question precisely as he would if a union were not in the picture . If the employer would have granted the benefits because of economic circum- stances unrelated to union organization , the grant of those benefits will not violate the Act . On the other hand, if the employer 's course is altered by virtue of the union's presence , then the employer has violated the Act, and this is true whether he confers benefits be- cause of the union or withholds them because of the union.16 The record here fairly establishes that Respondent would have granted promotions or reclassifications to assembler 1 employees for economic reasons but for the advent of the Union and the organizational activities of its employees. Respondent 's additional reason for withholding the re- classifications, that it had intended to reevaluate the jobs after the election , was not communicated to the affected employees, and appears to have been an afterthought intro- duced to bolster Respondent's position. It is , therefore , found that, by withholding promotions or reclassifications of assembler 1 employees to assembler 2, Respondent has discriminated in regard to the hire and tenure of employees to discourage membership in the Un- ion in violation of Section 8(a)(3), and has interfered with, restrained, and coerced employees within the meaning of Section 8(a)(1) of the Act. 16 McCormick Longmeadow Stone Co, Inc, 158 NLRB 1237, 1242. 7. The speeches by Respondent's management officials a. Director of Employee Relations Lusk On OL -)ber 26 , Lusk read a prepared speech to em- ployees who had been recalled from layoff . Although pur- portedly designed to answer union propaganda, the speech presaged the theme of later speeches made by Vice Presi- dent Johnson and President Campbell . Lusk branded as false statements allegedly made by union organizers that the Company could not close the plant because of some "secret contract with the Government ," and that the Union could compel the Company to deal with it because the Company would not abandon its "expensive new building ." He chal- lenged the Union's claim that the Company would not "take a strike ," and that the Union could obtain wage increases and other benefits , with no loss of income resulting from strikes. Lusk stated, It is a matter of public record that the Singer Company has taken strikes for as long as 6 months in several cases , and in each case the union was forced to give in and the employees came back for almost exactly the same offer that was made when the union called them out on strike . Two years ago, a union struck one of Singer Company's plants in Pennsylvania, and after five weeks , the employees came back to work without a single penny more . I might add that shortly after their return to work, Singer sold this plant and it is my understanding that the plant then failed , putting 400 people out of work . I don ' t have to tell you how hard it was for employees to be out of work during these strikes. It was hard on the Company too, but we are a large company and that is why we are able to success- fully resist unreasonable union demands whenever they are made. Referring to Johnson's last letter to the employees, Lusk declared , "This company does not want a union in our plant . We do not want the kind of problems that a union brings . We do not want to see you pay part of your pay- check each month to pay the union organizers ' salary. We do not want to see a union destroy what we think is going to be a very fine business and a very fine future for all of us." Lusk's statement that the Company had "closed plants in other areas for various reasons and the same thing could happen here ," while couched as a denial of the Union's assertion that the Company would be unable to close its_ plant , addressed to employees who had only just returned from layoff , could scarcely have failed to create a mood of despondency and anxiety in the minds of these employees. ti b. Vice President Johnson's speeches of November 19 and 25 and December 2 and 8 It is difficult to appreciate the full impact of these speeches without a painstaking analysis . Salient excerpts have, however, been quoted in Appendix A to this decision. In his first speech on November 19, after assuring the employees of protection against harassment from any source , Johnson undertook to outline the employees' rights under the Act, the election procedures , and basic principles of collective bargaining , concluding , "there are no legal THE SINGER COMPANY 1211 guarantees, in fact there are no guarantees of anything, that anything is going to happen as long as the bargaining con- tinues in good faith ." If the parties failed to reach agree- ment, Johnson. pointed out, the Union's only recourse would be to call a strike but the Company would have the right "to hire people to take your places." On November 25, after emphasizing that their future would be decided in the election, Johnson again raised the spectre of the consequences of a strike, remarking pointed- ly, "If you do go on strike, you not only, of course, lose the weekly pay that you have, but you could lose your jobs because the Company does have a right to bring in other people to do the work." Reminding the employees of wage increases which had been granted in the past year, Johnson posed the question, "why should you pay dues and fines to a union for wages and benefits that you already have and why should you pay dues and fines and assessments for future benefits which we continually adjust and take a look at anyway." Adverting to the Union's claims that it had succeeded in procuring higher wages and. fringe benefits for the em- ployees it represented at the San Leandro plant, Johnson stated that over the past 10 years, "the union had lost over a thousand bargaining unit jobs," which had shrunk from 2200 to 1200, adding that during the last 6 months, 187 employees had been laid off for lack of work at San Leandro. To demonstrate that the Company had sole con- trol over jobs, Johnson cited a reduction of employment from 700 to 255 employees at its Singer-Librascope plant in Glendale, California, and that the fact that they had secured additional paid holidays provided them small comfort. Johnson explained that one of the reasons the Company had established its plant in Albuquerque was its unsatisfac- tory experiences at San Leandro, which, because of prohib- itive labor costs, had rendered it no longer feasible for it to manufacture calculators and mailing equipment at that plant, and pleaded with the employees for their cooperation in insuring the success of the plant at Albuquerque. On the issue of overriding concern to the employees, whether the Company would close the plant if the Union were selected as bargaining agent, one of the employees, allegedly an IAM committeewoman, posed the question, by prearrangement, according to Respondent: Q. Mr. Johnson, if the union was to get in, is it true that the Company could [or would; the exact word used was indistinguisable on the tape recording of the speech] go somewhere else? A. The question is "If the union does get in, is it true that the Company could go somewhere else? (slight pause) Legally, ma'am, it is true that the Compa- ny could go somewhere else; however, I'd have to tell you that past that I can't comment because that is an area that could cause, that I am just not supposed to discuss , okay. I might even get kicked when I go back for saying what I did. Yes ma'am. Although Johnson's answer fell far short of a threat or prediction of plant closure, it is to be noted that at no time did he or any other company official disclaim any intention to close the plant if the Union were chosen as bargaining agent.17 17 An employer's remark that he could not say "whether the plant would Responding to a question as to the prospect of contin- ued employment, Johnson said "the only way I can answer you any differently because, of course, neither of us have any facts to back up our opinions, but the only one thing I can point out was, is that in San Leandro there are a thousand people who sure aren't enjoying those benefits any more. And in Glendale, California, there is over half of that work force who aren't .... They are no longer on, they are no longer in the representative unit of the IAM." In his speech of December 2, Johnson dwelt in exten- sive detail on the history of strikes at other plants in which the IAM was the bargaining unit, including a wildcat strike at the Company's San Leandro plant in 1967, as well as strikes at other Singer plants . Again, Johnson emphasized that, contrary to the Union' s claims, the Company had and would "take a strike," and stressed the dire consequences to employees of prolonged strikes. In this context, Johnson reiterated what he had said in earlier speeches regarding the Company's right to hire replacements during a strike, and asserted that "the law allows the company to hire replace- ments for the strikers. In that case, the striker loses both his wages during the strike and his job, and he or she cannot come back to work for the company unless the company decides to hire that person back." Johnson's remarks left no room for doubt that he attributed the drastic loss of employ- ment, and, in some instances, plant closings, to strikes re- sulting from the Union's unreasonable and excessive de- mands. By contrast, Johnson cited one of its plants in Ar- kansas with a complement of some 2,000 employees which was thriving, as an example of what could be accomplished if a plant were unorganized. Johnson blamed the Company's plight at San Leandro on the Union's continuing demands for higher wages, and stressed that that was one of the reasons the Company had moved its calculator work to Albuquerque. While impugn- ing the Union's motives . in organizing the Albuquerque plant as selfish and mercenary, Johnson repeatedly declared that it was the Union's strategy to force a strike or shutdown at the Albuquerque plant in order to compel the return of production of calculators and mailing equipment to San Leandro. During this speech, Johnson also made passing reference to the unfair labor practice charge in connection with the union shirt episode, informed the employees that he understood that a complaint was to issue, and told them that they could wear union shirts or emblems if they wished to do so. c. President Campbell's speech At the December 4 meeting, Johnson introduced R. J. Campbell, president of the Friden Division of the Compa- ny. In his introductory remarks, Johnson stated that Camp- bell was so greatly concerned about the success of the Albuquerque operation, and so convinced that "a union can do nothing but hurt our chances of success here," that he had rearranged a busy schedule to talk to the employees. In a strong appeal to the employees to vote against the Union, Campbell stressed what he regarded as a. trend in move or not," if the Union were successful , has been held to violate the Act. I.U.E. v. N.L.R.B., 287 F.2d 757 (C.A.D.C. 1960), enfg . 124 NLRB 481. 1212 DECISIONS OF NATIONAL LABOR RELATIONS BOARD American industry "because of problems created by un- ions," as well as other factors, to locate plants in foreign coun- tries or to have their products manufactured either by com- panies which they controlled, such as Respondent maintained in Belgium and in Holland, or to buy products from Japanese manufacturers, as the Company was being compelled to do. Campbell asserted that Friden's share of the electronic calculator market in the United States had drastically declined from 60 percent to 6 percent. He main- tained that the unions had contributed to this trend, and that the IAM had made it impossible for the Company to compete at its San Leandro operation. He, too, impugned the Union's motives in attempting to organize the Albu- querque plant, and alluded to the Union's effort through legal proceedings to enjoin the Ampex Corporation, which had maintained its plant in California, from moving to Al- buquerque, intimating that the Union would probably re- sort to similar proceedings with regard to the Singer Company. Referring to his previous experiences at nonunion plants, Campbell told the employees, We just would not have been able, in my opinion, to stay in the business with the problems that we had in California-many of which the Union must take re- sponsibility for. Continuing in the same vein, he declared, Today, three years later-which is why we came to Albuquerque-why we had to get out of California and why we cannot-and if the people were telling you, or the people back in California only knew-it isn't a matter of jobs going from here back to California be- cause if we are forced out of here, those jobs cannot go back to California because we will not be any more competitive than we were before. The jobs will go some place else and I think if the Californians knew this, they wouldn't be putting all the money and effort they are into doing what they are trying to do here, it appears to me. Now, the union that made it impossible-and must accept the blame-for us to produce a competive prod- uct in San Leandro has lost, to prove this point, over 1,000 jobs in San Leandro. In emphasizing that this was part of the decision that the employees would be making in the election, Campbell ob- served, If the union tries to do here in Albuquerque what it did to our plant in San Leandro, there is no question in my mind but what we will not be able to continue manu- facturing electronic calculators in this country and you can tell the people from the union who are here that it is a fact that it isn't that the jobs will go back to Califor- nia like they are hoping for, in my opinion. In his final speech on December 8, 2 days before the election, Johnson again alluded to the Company's efforts to procure more work for the Albuquerque plant, and reiterat- ed, "In order to do that, we have to be able to effectively run our business and the way you can help us be effective in running that business is by voting no this Thursday morn- ing to the union." Johnson repeated that the IAM would have to assume responsibility in "large part" for having made it impossible for the Company to continue doing busi- ness in the calculator field at San Leandro. Again, adverting to layoffs at other Singer plants where the IAM was the bargaining agent, Johnson referred to the loss of a thousand jobs in San Leandro, layoffs of more than 200 employees, and the loss of some 400 jobs at the Glendale plant. Johnson attributed the loss of jobs at San Leandro "in large part due to this union's activities [which]-had made it impossible for us to continue business in the calculating field in San Leandro." During this speech, Johnson also displayed a chart showing the number of jobs which had been lost at other Singer plants, including four represented by the IAM. The same theme was driven home in a brochure distributed by the Company to the employees on the eve of the election. While rendering lip service to the idea that the Union was not altogether responsible, Johnson nevertheless charged the Union with "one great big large share of re- sponsibility for it, and particularly in the San Leandro area. Up there this union has made it impossible to stay in busi- ness that we are trying to stay in here in Albuquerque." Challenging statements in the Union's campaign literature that "Singer-Friden is here to stay in Albuquerque," as evi- denced by the Company's 20-year lease with the City of Albuquerque, Johnson countered. The union, of course, is not a party to any agreements we have with the city of Albuquerque. We have a 20 year arrangement which provides for how we are going to pay for this facility. IF-and I repeat IF-if we stay here. Now, this Company will not get itself and has not got itself into any long term arrangement for which we couldn't get out of. Quite obviously that is the kind of a situation that we wouldn't get into. And, any rumor that says that if, we should vacate this facility for any reason-that someone else is going to come in and take over-I can tell you folks that it is just absolutely false. I think that it is interesting to note that the union started a rumor like this. Evidently, they may be afraid that Friden might move out if they should get in. It is significant that Johnson here was echoing a statement vaguely hinted at by Foreman Stanley in his conversation with Martinez, that $5 million was merely "a drop in the bucket," so far as the Company was concerned, if it came to a question of plant removal. Granting, for the sake of argument, that Respondent was merely countering the Union's propaganda that the Company could not move from Albuquerque because it was committed to a 20-year lease, Respondent utilized this de- vice as a means of instilling further doubts and anxieties in the minds of the employees as to the possibility that the Company might retaliate in the event the Union succeeded. The statement that the Company had not permitted itself to become involved in any "long term arrangement," from which it could not extricate itself, could scarcely have been calculated to allay the employees' fears.18 18 Cf. Spartus Corporation, 195 NLRB No. 17, in which the Board held that statements in a speech to employees by the employer that he had offers to move the plant but that he would not do so, constitute, in the circumstances, an implied threat to move the plant if the union were chosen, and hence violated Section 8(a)(I) of the Act Here , not only did Respondent fail to disclaim any intention of moving the plant, but deliberately nurtured in the minds of the employees the fear that it might do so THE SINGER COMPANY 8. The Company's further preelection propaganda a. The VOTE NO placards and the grocery display From the morning of Monday, December 7, through the afternoon of Wednesday, December 9, the day before the election, Respondent prominently displayed placards about 17 inches by 11-3/4 inches variously estimated as between 18 and 50 in number. On a white background, in red lettering about 1-3/4 inches high, appeared the legend "LET'S GO," with the words "VOTE NO" underneath, all surrounded by a red border. The placards were posted by the Company on plant walls and support pillars in various working areas , as well as in restrooms. On the evening of December 4, the Company arranged a special display prepared under Lusk's direction inside the employee entrance to the plant, which remained until Wednesday evening, December 9, the night before the elec- tion. As depicted in a photograph introduced in evidence, the display consisted of a table on which a variety of grocer- ies, canned goods, and foodstuffs were piled. On a wall above this display, under the legend, "ONE YEAR'S MINIMUM UNION DUES LOOKS LIKE THIS," was a glass-enclosed case, containing 70 single $1 bills, arranged in 10 columns, 7 bills to a column. Directly below this, on the table containing-the grocery display, had been placed a sign reading, "IT CAN BUY THIS," referring to the grocer- ies. According to Committeewoman Castillo, "Vote No" signs were posted in the vicinity of the display, although Lusk, who had supervised the posting of the signs, was certain that no such signs were placed any nearer than the opposite wall 17 feet away, and 20 feet higher than the display table. It is obvious that during the final days of the election, Respondent stepped up its propaganda by prominently posting "VOTE NO" placards in working areas of the plant. This, however, did not exceed permissible electioneering permitted under the Act. So, too, it cannot be said that the display of groceries and currency, however graphic and dra- matic , transgressed legitimate campaign tactics .19 It is, therefore, found that Respondent did not by this conduct interfere with, restrain , or coerce its employees in the exer- cise of rights guaranteed in the Act, nor afforded a ground for the objections to the conduct of the election. b. The portfolio On December 9, the eve of the election , Respondent distributed to all its employees a plastic-encased portfolio consisting of an 8 x 10 panoramic photograph of the exteri- or of the plant premises, and three campaign bulletins. The first of these bulletins , in large black type on a white back- ground , read as follows: 19 Great Dane Trailers, Inc., 172 NLRB No. 139; 171 NLRB No. 23. IS THIS JOB SECURITY? SAN LEANDRO , CALIF. GLENDALE, CALIF CHATTANOOGA, TENN ELIZABETH, NJ BRIDGEPORT, CONN SOUTH BEND, IND. LEWISTOWN, PA CORY, PA BUFFALO, N Y 1213 1,000 UNION JOBS LOST' 450 UNION JOBS LOST' 500 UNION JOBS LOST' 6,000 UNION JOBS LOST' 3,000 UNION JOBS LOST' 2,000 UNION JOBS LOST' 500 UNION JOBS LOST! 100 UNION JOBS LOST' 350 UNION JOBS LOST' -THESE WERE ALL AT SINGER PLANTS- WILL ALBUQUERQUE BE NEXT? Another leaflet, captioned in bold black type, "DON'T MAKE A MISTAKE," lettered in black and red, with a diagram instructing the employees to place an X in the box on the ballot marked "NO," urged employees to vote against the Union. A leaflet, bearing the legend, in red: NO STRIKES NO DUES NO FINES NO ASSESSMENTS NO UNION with the words "VOTE NO," in red, underneath, and a sample ballot, with a checkmark in the square marked "no," completed the brochure. Although neither the General Counsel nor the Union has challenged the accuracy of the statements of jobs lost at other Singer plants, as set forth in the bulletin entitled "IS THIS JOB SECURITY? " the truth or accuracy of the statements is not the sole determining factor in deciding whether the bulletin exceeded the permissible limits of free speech. While clearly attributing the loss of jobs to the mere presence of the unions in those plants, Respondent failed to demonstrate that it had any basis for attributing the loss of some 14,000 jobs to unionism. The rhetorical question, "WILL ALBUQUERQUE BE NEXT?" which climaxed this presentation could have had no other purpose than to strike fear in the hearts of the employees that Albuquerque would, indeed, be next if the Union came into the plant. It is therefore found that, by the statements in this bulletin attributing loss of jobs at other of Respondent's plants to unionism, and implying that the selection of the Union at Albuquerque would inevitably meet with the same consequences, Respondent has interfered with, restrained, and coerced employees in the exercise of rights guaranteed in Section 7, thereby violating Section 8(a)(1), of the Act. Respondent defends its statements, in its campaign lit- erature as well as in the speeches of its company officials, on the ground that they constituted no more than an expres- sion of views, arguments, or opinion protected by Section 8(c) of the Act. Contending that these statements were de- signed, in the main, to answer the claims and charges in the Union's campaign propaganda, Respondent denies that it made any promises of benefit or threats of reprisal in order 1214 DECISIONS OF NATIONAL LABOR RELATIONS BOARD to mduce the employees to reject the Union. Furthermore, Respondent contends that no promises of benefits or threats of reprisal can be inferred from its communications when considered in their totality or evaluated in the light of the surrounding circumstances. Moreover, Respondent main- tains its conduct must be viewed in light of its objectives in establishing the Albuquerque plant. Chief among these, it is evident, was its determination to locate in an area in which labor costs were at an accepta- ble level. Since it was convinced that the prohibitive labor costs at San Leandro were largely attributable to the IAM, which had represented production employees at San Leandro for 25 years, it is not surprising that Respondent was determined to keep the IAM out of the Albuquerque plant by any means at its disposal. It may be assumed, as Respondent contends, that its actions were dictated by eco- nomic considerations, including a drastic decline in its share of the office products business which, according to it, had dropped from 60 percent to 6 percent over a period of 4 years, with the possibility of losing its market to overseas production altogether. This argument, however, proves too much, for it pre- saged Respondent's determination to avoid a union at the Albuquerque plant under any circumstances. From the very outset, Respondent viewed the appearance of IAM officials with antagonism and hostility, and as an overt threat to the future of its operation. Although union representatives at the hearing, for the first time, in response to probing ques- tions by Respondent, conceded that it regarded the transfer of production from the San Leandro to the Albuquerque plant as a "runaway shop," the record as a whole establishes that the Union was concerned primarily with organizing the employees at Albuquerque. If anything, the Union was con- tinually concerned with whether the Company might decide to close or remove the plant, notwithstanding its commit- ment to a 20-year lease and the very considerable invest- ment in the plant facility, rather than by any purpose to have the Company return production to San Leandro. On the contrary, from the outset of its campaign, the Union sought the allegiance of the employees by continually im- pressing them with the more favorable wage structure and benefits at San Leandro under the IAM contract, and re- peatedly challenged the Company to justify the wage scales and benefits at the Albuquerque plant. Whatever may be said for the Company's legitimate campaign propaganda in meeting the Union's charges, which Respondent characterizes in its brief as "cynical, vi- tuperative and provocative" (while ignoring the fact that its own countercharges were not wholly free from invective), and its contention that economic realities would ultimately dictate the wages and job security of the employees, not the selection of the Union as bargaining agent, it cannot be denied that the company propaganda, in the speeches of its managing officials , as well as in its campaign literature, was interlarded with intemperate statements that the selection of the Union would inevitably result in strikes . These state- ments were underscored by long and detailed histories of the dire consequences, culminating not infrequently in plant closure or abandonment. Although Respondent nowhere explicitly threatened plant closure in the event the Union was successful in the election, the speeches of management officials were replete with innuendos that the Company would not be deterred from closing or moving the plant, notwithstanding its 20-year lease and its considerable plant investment, if the Union were successful in the election. Both the inevitability of strikes, with the attendant conse- quences, and the spectre of plant closure were the predorm- nant and insistent themes of the speeches. Whether, as claimed by Respondent, the Union itself raised the "straw man" of plant closure only to knock it down, the fact re- mains that despite widespread rumors of the possibility of plant closure, Respondent remained silent and did nothing to reassure or allay the apprehension of the employees in this regard. On the contrary, Respondent permitted the em- ployees to harbor the belief, if indeed it did not foster or encourage it, regardless of whether it had any intention of actually closing the plant, that the selection of the Union could lead to that result. Respondent's constant reiteration of the history of strikes, accompanied by widespread loss of employment culminating in actual plant closures as the re- sult of strikes at union plants, could scarcely have failed to have a chilling effect upon the self-organizational aspira- tions of the employees. The factual situation in this case is strikingly similar to that found by the Court in the Sinclair case,33 where the Court said, The Board found that petitioners' speeches, pamphlets, leaflets, and letters conveyed the following message: that the company was in a precarious financial condi- tion; that the "strike-happy" union would in all likeli- hood have to obtain its potentially unreasonable demands by striking, the probable result of which would be a plant shutdown, as the past history of labor relations in the area indicated; and that the employees in such a case would have great difficulty finding em- ployment elsewhere. In carrying out its duty to focus on the question: "[W]hat did the speaker intend and the listener understand?" (A.Cox, Law and the Na- tional Labor Policy, 44 (1960)), the Board could rea- sonably conclude that the intended and understood import of that message was not to predict that unioni- zation would inevitably cause the plant to close but to threaten to throw employees out of work regardless of the economic realities. In this connection, we need go no further than to point out (1) that petitioner had no support for its basic assumption that the union, which had not yet even presented any demands, would have to strike to be heard, and that it admitted at the hearing that it had no basis for attributing other plant closing in the area to unionism; and (2) that the Board has often found that employees, who are particularly sensi- tive to rumors of plant closings, [citation omitted] take strikes at other plants, as well as at those of Respondent , m Sinclair Company v N.LR B., affd sub nom . N LR B v Gissel Packing which had resulted in extensive loss of employment and all Company, Inc., et al., 395 U.S. 575, 619 THE SINGER COMPANY such hints as coercive threats rather than honest fore- casts. [Citations omitted.] As the Court said elsewhere in the same opinion, Any assessment of the precise scope of employer ex- pression, of course, must be made in the context of its labor relations setting. Thus, an employer's rights can- not outweigh the equal rights of the employees to asso- ciate freely, as those rights are embodied in § 7 and protected by §8(a)(1) and the proviso to §8(c). And any balancing of those rights must take into account the economic dependence of the employees on their em- ployers, and the necessary tendency of the former, be- cause of that relationship, to pick up intended implications of the latter that might be more readily dismissed by a more disinterested ear. Stating these obvious principles is but another way of recognizing that what is basically at stake is the establishment of a nonpermanent, limited relationship between the em- ployer, his economically dependent employee and his union agent .... Again, the Court said, ... an employer is free to communicate to his employ- ees any of his general views about unionism or any of his specific views about a particular union, so long as the communications do not contain a "threat of repris- al or force or promise of benefit." He may even make a prediction as to the precise effects he believes unioni- zation will have on his company. In such a case, howev- er, the prediction must be carefully phrased on the basis of objective fact to convey an employer's belief as to demonstrably probable consequences beyond his control or to convey a management decision already arrived at to close the plant in case of unionization. See Textile Workers v. Darlington Mfg. Co., 380 U.S. 263, 274, n. 20 (1965). If there is any implication that an employer may or may not take action solely on his own initiative for reasons unrelated to economic necessities and known only to him, the statement is no longer a reasonable prediction based on available facts but a threat of retaliation based on misrepresentation and coercion, and as such without the protection of the First Amendment. We therefore agree with the court below that "[c]onveyance of the employer's belief, even though sincere, that unionization will or may result in the closing of the plant is not a statement of fact unless, which is most improbable, the eventuality of closing is capable of proof." 397 F.2d 157, 160. As stated else- where, an employer is free only to tell "what he rea- sonably believes will be the likely economic consequences of unionization that are outside his con- trol," and not "threats of economic reprisal to be taken solely on his own volition." N.L.R.B. v. River Togs, Inc., 382 F.2d 198, 202 (C.A. 2d Cir. 1967). In answer to the employer's argument in the Sinclair case that "the line between so-called permitted predictions and proscribed threats is too vague to stand up under tradi- tional First Amendment analysis and that the Board's dis- cretion to detail free speech rights is correspondingly too uncontrolled." the Court said, "It is true that a reviewing court must recognize the Board's competence in the first instance to judge the impact of utterances made in the con- 1215 text of the employer-employee relationship, see N.L.R.B. v. Virginia Electric & Power Co., 314 U.S. 469, 479 (1941). But an employer, who has control over that relationship and therefore knows it best, cannot be heard to complain that he is without an adequate guide for his behavior. He can easily make his views known without engaging in 'brink- manship' when it becomes all too easy to `overstep and tumble [over] the brink,' Wasau Steel Corp. v. N. L. R. B., 377 F.2d 369, 372 (C.A. 7, 1967). At least he can avoid coercive speech simply by avoiding conscious overstatements he has reason to believe will mislead his employees. "21 Moreover, it is evident that Respondent's campaign propaganda, including the brochure, and particularly the speeches of company officials, were calculated to instill a belief in the employees that collective bargaining could ac- complish nothing for them and that selection of the Union as their bargaining representative could only lead to strikes and loss of work. 2 In evaluating the impact upon the employees of Respondent's speeches, disregarding any possible language bather,23 it must be borne in mind that the persons to whom the statements were addressed constituted to a very large extent a pool of hard-core, minority unemployed, some of whom had only recently returned from layoff, whose last desperate opportunity for gainful employment had been realized only through government intervention. It would be the height of naivete to assume that these persons would have the capacity to make the subtle distinction between legitimate propoganda, protected as free speech, and in- nuendos of threats of reprisal, which frequently defy the expertise of qualified labor relations practitioners. It is therefore found that by the speeches of Director of Labor Relations Lusk, Vice President Johnson, and Pres- ident Campbell, and by the antiunion propaganda dissem- inated by Respondent impliedly threatening the employees with economic reprisal or promises of benefits, and by the cumulative effect and totality of said statements, Respon- dent has interfered with, restrained, and coerced employees in the exercise of rights guaranteed under the Act in viola- tion of Section 8(a)(1). E. Objections to Conduct of the Election The Union's objections to the conduct of the election are as follows: The Petitioner alleges that the Employer through its Agents, Supervisors and Employees created an at- mosphere among the eligible voters prior to and during the election that was not conducive to their registering a free and untrammelled choice of a collective bargain- ing representative by the following alleged acts: 1. By making available Anti-Union "Vote No" buttons between November 13, 1970 and December 10, 21 Id. 620. See to the same effect Jervis Corporation, Bolivar Division, 159 NLRB 262, enfd. 387 F.2d 107 (C A. 6). 22 See also Glazer Steel Corporation, 163 NLRB 7; Cf Rudy's Farm Compa- ny, Inc., 190 NLRB No 62. 23 It may be noted that the initial letters mailed by the Company to its employees contained on the reverse side Spanish translations , indicating that the Company recognized the possibility of language barriers to communica- tion. 1216 DECISIONS OF NATIONAL LABOR RELATIONS BOARD 1970. Some of these buttons were made on company property during working time with supervisors knowl- edge and apparent consent. Other "Vote No" buttons were of the manufactured type made available and given out during working hours on Company premises. 2. By intimidating, reprimanding and discriminat- ing against employees because they wore "IAM" but- tons and "IAM" insignias on clothing. 3. By' certain supervisors threatening employees with disciplinary action if they showed up at the polls to vote. 4. By posting huge "Anti-Union slogans" and "Vote No" signs in the plant throughout the working areas and restrooms of the eligible voters between No- vember 13, 1970 and December 10, 1970. 5. By captive audience meetings between Novem- ber 13, 1970 and December 10, 1970 wherein threats of moving the plant out of Albuquerque, New Mexico should the Union win the election and numerous other anti-union statements were made. 6. By threatening, coercing, reprimanding and dis- criminating against employees and known union ad- herents because of their pro-union protected activity between November 13, 1970 and December 10, 1970. In some instances issuing written reprimands. 7. By withholding from certain employees previ- ously established periodic wage increases and stated to the employees the reason these increases were being withheld was because of the pending National Labor Relations Board election. 8. By establishing and enforcing a "non-solicita- tion rule" giving copies to all employees.,A copy is enclosed and identified as Attachment # 1. 9. By posting on Company bulletin boards, under glass on or about November 17, 1970 a bulletin worded as follows: November 17, 1970 All Employees From: T. E. Lusk Your attention is called to the Companys No-Solic- itation rule which provides that No employee shall solicit any other employee for any purpose on Com- pany Premises during working hours. This means that No Employee shall attempt to persuade any other employee for or against any cause or point of view during working hours. In order to assure a fair election on December 10 it is essential that all em- ployees observe this rule. T. E. Lusk 10. By the Employer on or about December 9, 1970 distributing to eligible voters a portfolio contain- ing material couched in language that purported to show that 16,000 employees of Singer Company lost their jobs because they chose a union and had the effect of instilling fear in the minds of the eligible voters that they were facing a like reprisal should they select a union. Distribution of the above was carefully timed so that the Petitioner had no opportunity to reply prior to the election of December 10, 1970. By any or all the above set-forth acts and by other acts, the Employer did cre- ate an atmosphere among the employees that was not conducive to their exercising their rights guaranteed under the Act and did thereby destroy the laboratory conditions , both before and during the election , neces- sary for the eligible voters to register a free choice in selecting a collective bargaining representative. The Petitioner hereby moves that the instant election be set aside. Attached to these objections were the contents of the port- folio distributed by the Company on the eve of the election. For reasons previously stated, Objections 1, 4, 8, and 9 are overruled. With regard to Objection 3, there is no evidence to support the charge that supervisors threatened employees with disciplinary action if they appeared at the polls to vote. Objections 2, 5, and 6 (to the extent that they relate to the issuance of written reprimands to union adher- ents), 7, and 10 are sustained. It has been found that Respondent has engaged in unfair labor practices within the meaning of Section 8(a)(1), previously detailed, both before the filing of the representa- tion petition and during the period thereafter until the date of the election. Since such a finding is a fortiori grounds for setting aside the results of the election , and certain of the objections to the conduct of the election have been sus- tained, it is clear that the election was not conducted under the laboratory conditions which the Board requires. It is further found that Respondent's unlawful conduct inter- fered with the free and untrammelled choice of the employ- ees in the election of December 10, 1970. It will therefore be recommended that the results of the election held De- cember 10, 1970, be set aside, and that the Regional Direc- tor be directed to hold an election when he is satisfied that the effects of Respondent 's unlawful conduct have been effectively dissipated. IV. THE EFFECT OF THE UNFAIR LABOR PRACTICES UPON COMMERCE The activities of Respondent set forth in section III, above, occurring in connection with the operations de- scribed in section I, above, have a close, intimate and sub- stantial relation to trade , traffic , and commerce among the several States, and tend to lead to labor disputes burdening and obstructing commerce and the free flow of commerce. V THE REMEDY Having found that Respondent has engaged in unfair labor practices within the meaning of Section 8(a)(1) and (3) of the Act by the conduct previously detailed, it will be recommended that it be ordered to cease and desist there- from and take certain affirmative action designed to effec- tuate the policies of the Act. It has been found that Respon- dent discriminatorily denied certain named employees the right to wear shirts displaying union insignia, and deprived THE SINGER COMPANY 1217 them of their wages until they removed their shirts. It will, therefore, be recommended that Respondent reimburse each of said employees for the loss of wages they sustained as a result of the discrimination against them, together with interest thereon at the rate of 6 percent per annum, in ac- cordance with customary Board policy. In view of the aggravated nature of the unfair labor practices in which Respondent has engaged, it will also be recommended that the Board issue a broad cease and desist order 24 Upon the basis of the foregoing findings of fact, and upon the entire record in the case, the Trial Examiner makes the following: CONCLUSIONS OF LAW 1. The Singer Company, Friden Division, a Delaware corporation with a plant and offices in Albuquerque, New Mexico , Respondent herein, is, and at all times material herein has been , an employer engaged in commerce and in a business affecting commerce within the meaning of Sec- tion 2(6) and (7) of the Act, and the jurisdictional standards of the Board. 2. International Association of Machinists and Aero- space Workers, AFL-CIO, the Union herein , is, and at all times material herein has been , a labor organization within the meaning of Section 2(5) of the Act. 3. By prohibiting certain named employees from wear- ing shirts displaying union insignia, and by depriving them of their wages until they removed those shirts , issuing un- warranted written reprimands , and withholding wage in- creases , Respondent has discriminated in regard to the hire or tenure of employment of employees to discourage membership in a labor organization , thereby engaging in unfair labor practices within the meaning of Section 8(a)(3), and interfering with, restraining and coercing employees in the exercise of rights guaranteed in Section 7, thereby en- gaging in unfair labor practices within the meaning of Sec- tion 8(a)(1) of the Act. 4. By Foreman Balderston 's coercive interrogation of employees regarding their union activities and his state- ments in opposition to the Union between August and Sep- tember, 1970; by Foreman Stanley's interrogation of Martinez in a similar vein, on about November 17, 1970; threats of reprisals for engaging in union activity ; withhold- ing wage increases ; issuing written reprimands to union adherents , ostensibly for violation of the no-solicitation rule; and by the veiled threats of plant closure and state- ments of the inevitability of strikes and the dire conse- quences of such strikes, including loss of jobs if the Union were selected , contained in the speeches of Director of Em- ployee Relations Lusk, Vice President Johnson and Presi- dent Campbell, and in the preelection portfolio and other campaign material , Respondent has interfered with, re- strained and coerced employees in the exercise of rights 24 N L R.B v. Entwistle Manufacturing Company, 120 F.2d 532, 536 (C.A. 4), May Department Stores v. N L. R B, 326 U.S. 376; Bethlehem Steel Compa- ny v N.LR.B, 120 F 2d 641 (C.A.D.C.). guaranteed in Section 7, thereby engaging in unfair labor practices within the meaning of Section 8(a)(1) of the Act. 5. The aforesaid unfair labor practices are unfair labor practices affecting commerce within the meaning of Section 2(6) and (7) of the Act. Upon the basis of the foregoing findings of fact, con- clusions of law, and the entire record, and pursuant to Sec- tion 10(c) of the Act, the Trial Examiner hereby issues the following recommended: ORDER25 The Singer Company, Friden Division, a Delaware corporation, its officers, agents, successors, and assigns, shall: 1. Cease and desist from: (a) Discriminating in regard to the hire or tenure of employment or any term or condition of employment of any employees by penalizing them with loss of wages, issuing written reprimands to employees, and withholding wage increases because of their union or concerted activity or in any other manner discriminating in regard to the hire or tenure of employment, or any other term or condition of employment of its employees, to discourage membership in a labor organization. (b) Coercively interrogating employees regarding their union or protected activities; threatening them with repris- als; withholding wage increases, issuing unwarranted writ- ten reprimands, all because of their union or protected concerted activities; threatening plant closure, and stating that strikes and loss of jobs are the inevitable results of unionism. (c) In any other manner interfering with, restraining or coercing its employees in the exercise of rights guaranteed in Section 7 of the Act, except to the extent that such rights may be affected by an agreement requiring membership in a labor organization as a condition of employment, as au- thorized in Section 8(a)(3) of the Act, as amended. 2. Take the following affirmative action necessary to effectuate the policies of the Act: (a) Make whole employees Randy Martinez, Freddie Marquez, Robert Moya, and Ronald Norling for any loss of earnings they may have sustained by reason of Respondent's discrimination against them by payment to each of them of the sum of money they would have earned during the time they were excluded from the plant for wear- ing shirts displaying union insignia, together with interest, as set forth in the section entitled "The Remedy." (b) Rescind and expunge from its personnel records the written reprimands issued on November 17, 1970, to Juan U. Carrillo, Randy Martinez and Robert Moya for alleged violation of the no-solicitation rule. 25 In the event no exceptions are filed as provided by Section 102.46 of the Rules and Regulations of the National Labor Relations Board , the findings, conclusions, and recommended Order herein shall , as provided in Section 102.48 of the Rules and Regulations , be adopted by the Board and become its findings, conclusions , and Order, and all objections thereto shall be deemed waived for all purposes. 1218 DECISIONS OF NATIONAL LABOR RELATIONS BOARD (c) Preserve and, upon request, make available to the Board or its agents, for examination and copying, all payroll records, social security records, timecards, personnel rec- ords and reports, and all other records necessary or useful to determine or compute the amount of the loss of wages due the named employees, if any. (d) Post at its plant and office in Albuquerque, New Mexico, copies of the attached notice marked "Appendix B."26 Copies of the notice on forms provided by the Region- al Director for Region 28 shall, after being signed by a duly authorized representative of Respondent, be posted imme- diately upon receipt thereof and maintained by it for a period of 60 consecutive days thereafter, in conspicuous places, including all places where notices to employees are customarily posted. Reasonable steps shall be taken by Re- spondent to ensure that such notices are not altered, de- faced or covered by any other material. (e) Notify the Regional Director for Region 28, in writ- ing, within 20 days from the date of the receipt of this Decision, what steps Respondent has taken to comply here- with 27 IT IS FURTHER RECOMMENDED that the complaints be dis- missed insofar as they allege violations of the Act not specif- ically found herein. IT IS FURTHER RECOMMENDED that the election in Case No. 28-RC-2118 be set aside, and that the Regional Director schedule an election to be held at such time that he is satisfied that the effects of Respondent' s unfair labor prac- tices have been effectively dissipated. 26 In the event that the Board's Order is enforced by a Judgment of a United States Court of Appeals, the words in the notice reading "Posted by Order of the National Labor Relations Board" shall be changed to read "Posted Pursuant to a Judgment of the United States Court of Appeals Enforcing an Order of the National Labor Relations Board." 27 In the event that this recommended Order is adopted by the Board after exceptions have been filed, this provision shall be modified to read : "Notify the Regional Director for Region 28,-in wasting, within 20 days from the date of this Order, what steps the Respondent has taken to comply herewith " APPENDIX A Excerpts from Speeches of Company Officials 1. Lusk's speech of October 26 6. Statements have allegedly been made by union or- ganizers that Friden cannot close the Albuquerque plant be- cause of some secret contract with the government. This statement is completely untrue. The only way that this plant can remain open is by the work that we put into it. We have no secret contract with anyone. 7. Statements have allegedly been made by union organiz- ers that it can force this company to do whatever the union wants the company to do because the company will not give up its expensive new building. This statement by the Union is absolutely false. We will remain here in Albuquerque only as long as we can effectively conduct our business and compete with other companies which make the same prod- ucts. We have closed plants in other areas for various rea- sons and the same thing could happen here. # i # M 11 9. The union organizers have allegedly stated that the Singer Company will not take a strike, and that they can get all sorts of benefits and increased wages without you losing any money because of strikes. This statement is absolutely false. It is a matter of public record that the Singer Company has taken strikes for as long as 6 months in several cases, and in each case the union was forced to give in and the employees came back for almost exactly the same offer that was made when the union called them out on strike. Two years ago, a union struck one of Singer Company's plants in Pennsylvania, and after 5 weeks, the employees came back to work without a single penny more. I might add that shortly after their return to work, Singer sold this plant and it is my understanding that the plant then failed, putting 400 people out of work. I don't have to tell you how hard it was for employees to be out of work during these strikes . It was hard on the company too, but we are a large company and that is why we are able to successfully resist unreasonable union de- mands whenever they are made. s s s s 0 11. I do want to make this fact clear to all of you. As R. W. Johnson said in his last letter to you, this company does not want a union in our plant. We do not want the kind of problems that a union brings. We do not want to see you pay part of your paycheck each month to pay the union organizer's salary. We do not want to see a union destroy what we think is going to be a very fine business and a very fine future for all Of US. 2. Johnson's November 19 speech What you decide in that election will have a bearing on the future of this plant .... On the other hand, the law says that a person in my position cannot make promises. I cannot tell you about things even if I were planning to do them during this kind of an election because the law says a person like me, I can back those promises up, and since I can, that puts the union at a disadvantage .... I cannot tell you many things. But be sure of one thing, folks, don't let anybody tell you that silence in some of these cases is a sign of weakness because I'll guarantee you it's not .... Some people have been told and some people might feel that if the union wins the election, and for all of our sakes I tell you I hope ... that doesn't happen .... In fact, at that kind of negotiation, if it should happen, all of the present wage structures, all of the present benefits, the holidays, medical plan, the pension plan, all of those are open for negotiation that we now have also .... But again, I just want to reiterate because it's the facts that the compa- ny is not bound to give anything that it doesn't want to give. THE SINGER COMPANY 1219 The union has a recourse. That recourse, of course, it's the only recourse, is they can call you out on strike. If the union, at that point then, speaking for you, that what we want to give is not appropriate, they call you out on strike. But, again as a matter of law, the company has the right at that point to hire people to take your places also .... 3. Johnson's November 25 speech Well, I don't know whether I get-it's nervous or not, but you see I do get rather emotionally involved in this situation . That plus a combination of reading might give you that impression, but as I told you before, I am very concerned about it because it is a question of our future, your's and the rest of the people in this facility and mine also that we are discussing here and that which you will decide on December 10th, and I can get kind of involved in that kind of a subject. Now, what about wages and fringe benefits? Does the union have any power to raise your wages and fringe bene- fits? No, they don' t. Sure the union can come in here, be elected in here by you folks and sign up members and they can call you out on strike so they do have that alternative. But, this doesn't mean that wages or benefits or anything automatically go up. If you do go on strike, you not only, of course, lose the weekly pay that you have, but you could lose your jobs because the company does have a right to bung in other people to do the work. I think many of you received wage increases during the past year and that was a result of these kinds of adjustments and we expect this to continue. Even if the union were to get into our plant, this wouldn't mean that your wage situ- ation would change necessarily because the law does not require a company to adhere to any demands of a union. So, I guess you have to ask yourself the question, why should you pay dues and fines to a union for wages and benefits that you already have and why should you pay dues and fines and assessments for future benefits which we contin- ually adjust and take a look at anyway. The union talked a lot about higher wages and fringe benefits in San Leandro and we'll hear a lot more about that. The union has been there for many years. I've been there for a little while also, but, they didn't bother to tell you that in the past ten years the union has lost over a thousand bargaining unit jobs. In 1959 the bar- gaining unit in San Leandro was about 2200 people. Today, it is about 1200. That doesn't sound like providing much job security to me. The union also didn't bother to tell you that in the last six months 187 people are in lack of work in San Leandro. At Albuquerque, as most of you know, I think, all of our hourly and production and maintenance workers who had recall rights have been recalled and the union didn't have a thing to do with that. We did that and we will do that. We have control over the jobs and we continue to. The union also recently mentioned that its members at Singer- Librascope in Glendale, California, which is south of San Leandro near the Los Angeles area, enjoyed more holidays than you do. What they didn't bother to tell you again was that in 1962 the union represented some 700 people at Li- brascope and that it now represents 255 active people there. That's 475 people for whom I'd have to question whether any job security was maintained for them during that time period, and I don't think holidays do a person much good if he is not working. The fact of the matter, of course, is that as I have said many times , in our judgment the union can't do anything for you that we can't do ourselves and we are looking for a chance to do that. We have had a lot of sad experiences in San Leandro, what they did up there, and that, of course, is one of the reasons why we are here in Albuquerque. We can't afford to manufacture calculators, you see, and mailing equipment in San Leandro any longer. We just cannot stand the competition and the kind of costs we have involved in the Bay Area. I think again if you give us a chance to have this plant managed by the people who are here to manage it now that we will grow , but of course it takes your help. s s s s Question: Mr. Johnson, if the union was to get in, is it true that the Company could (indistinguishable on the tape) go somewhere else? Answer: The question is, "If the union does get in, is it true that the Company could go somewhere else?" (Pause) Legally, ma'am, it is true that the Company could go somewhere else; however, I'd have to tell you that past that I can't comment because that is an area that could cause, that I am just not supposed to discuss, okay. I might even get kicked when I go back for saying what I did. Yes ma'am. s s s Question: Inaudible Answer: Well, the initial question was one regard- ing over the lifetime of work, right. And the only way I can answer you any differently because, of course, neither of us have any facts to back up our opinions, but the only one thing I can point out was, is that in San Leandro there are a thousand people who sure aren't enjoying those benefits anymore. And in Glen- dale, California, there is over half of that work force who aren't. Question: Inaudible. Answer: They are no longer on, they are no longer in the representative unit of the IAM. Thank you again. Have a very happy Thanksgiving. 4. Johnson's December 2 speech 1220 DECISIONS OF NATIONAL LABOR RELATIONS BOARD But today, I thought we ought to talk about a subject which I think the unions don't like to hear companies talk about at all and that subject is strikes. We have had a lot of comments and questions regarding strikes particularly last week. From what we hear, the union organizers are saying that they don't have many strikes. And on top of that we understand they are saying that the Singer Company doesn't take strikes. Now both of these statements are com- pletely false. I take it that everyone here knows what a strike is. But basically a strike occurs when a union calls employ- ees off the job in order to try to force a company to give higher wages or increased benefits. Anyone who has been through a strike knows-that these aren't very pleasant af- fairs, in fact they get fairly unpleasant in most cases. No- body also wins a strike-the company doesn't win a strike, the union doesn't win a strike; but people sure do lose a strike and unfortunately in most cases it's employees who lose in a strike. When employees go out on strike, they don't receive wages from the company and they cannot get unem- ployment benefits. People might get a few dollars from a union but it won't go anywhere near to covering what the lost wages were. I have been involved in several strikes from many dif- ferent vantage points, and I'll tell you unfortunately I've seen some of them last three, four, five months. I've seen people lose homes; I've seen people lose their cars and lose their furniture. The payments generally can't be kept up over the period of a kind of a strike that lasts more than a week or two. If a strike is a long one, you can work some- times the rest of your life and not make up the payments, the wages that are lost during the period of that strike. Also, when an employee is called out, as we mentioned before on strike for higher wages by the union, the law allows the company to hire replacements for the strikers. In that case the striker loses both his wages during the strike and his job, and he or she cannot come back to work for the company unless the company decides to hire that person back. What about the Singer Company? Will the Singer Company take a strike? We have and we will take a strike. There is no question about it. If we think the union's de- mands are out of line, we have no alternative. It is a matter of public record that the Singer Company has taken several strikes for as long as four, five and six months. Over the past few years the Singer Company has been involved in a num- ber of strikes and in many cases the strike ended with the employees getting just about what the company offered before the strike was called. Now the unions know that Singer is tough, but they also know we are fair and they know that a strike will not force the company to change its basic position. As an example, there was a five-week strike at our plant in Lewistown, Pennsylvania. At the end of five weeks, the steel workers union dropped its demand and allowed the employees to come back to work. Several months later Singer sold that plant, and I understand, inci- dentally that the new owners have laid-off practically all of the people. Another example just two months ago, Singer had a strike in our plant in Youngstown, Ohio. At the end of two weeks, the steel workers again dropped all their charges, all their demands, and accepted the offer the com- pany made before the strike had started. Incidentally, the company has considered closing that particular plant. You might be interested in taking a look at what's happened in some of the other Singer plants which are represented by unions . We had some questions regarding that last week. I mentioned to you that Singer had taken some long strikes. In 1949, for example, there was a six-month strike in a union plant, at a Singer plant in Elizabeth, New Jersey. At that time there were 9,000 people in that plant; today there are about 200 in the plant and just, I think, about three weeks ago, Singer announced that they were closing that facility in the National Press. I have already told you what hap- pened to Lewistown. You might also be interested in what happened to a large woodworking plant in South Bend, Indiana. That plant employed about 2,000 people and was doing fairly well until a union came into the plant. The union, in that case, kept insisting on wage rate increases without regards to what was going on in the area. In 1954, Singer had to close that particular plant and unfortunately 2,000 people were out of work. Some of them, if some of you know that particular area, I don't think have yet found jobs. Singer then opened that woodworking plant in Arkansas and today that plant is doing fine. It's not organized. It is employing about 2,000 people. We talked a little bit last week and had some questions regarding the San Leandro situation where the union has kept pushing higher wages with the result that, as we told you, the company cannot, can no longer afford to manufacture mailing equipment, or calculators in that plant. This is one of the reasons we moved our business here to Albuquerque. It is one of the reasons the calculators are being built out here now and it is one of the reasons we are considering moving mailing equipment assembly down later in 71. Another company from the San Leandro area which most of you I am sure are aware of, Ampex, did the same thing. They just moved part of their operation into Albuquerque. Now they have the same union in California that is trying to organize this plant here, the IAM. And they moved to Albuquerque for much the same reasons. They just couldn't stay in business operat- ing in the business climate and wage structure that they had in Redwood City, California. You might be interested to know that this union, the IAM, is doing everything it can to stop Ampex from coming to New Mexico. I have to wonder again, they are doing that by court injunction. I have to wonder again, folks, whether they are also trying to do this to Friden. We have a very serious question in our minds, I have told you this before, as to why the union is trying to get into this plant. Are they really interested in you and your job security and the future of the business in Albuquerque, or do they think maybe by organizing the plant, forcing a shut-down of it on a strike that they might force the company to move its calculator business and if we decide to move mailing equipment that also back to San Leandro. I wonder because I see what they are doing in the Ampex situation. In San Leandro, of course, the union dues THE SINGER COMPANY 1221 are about $8.75 per month which is a fairly attractive situ- ation to a union. I think we can ask ourself a lot of ques- tions. Why has the union sent organizers in here from California? Why is Mr. Sanchez who is a union official in the San Leandro plant helping in the organizing? Is he here to help you people, or is he here to talk to people back in San Leandro and tell them about the progress of possibly getting work back there? We don't know for certain, of course, but it makes someone whose got a mind, an open mind to think, has to ask himself those questions. I know I can't make up your mind for you, and I don't, that's why I don't speak to you in terms of table pounding, etc. But I know myself, I wouldn't turn my future over to someone who is from the outside and to someone I've got some serious questions about whether I can trust them or not. And I hope and I think you people will maybe feel the same way. So for your own sakes and your families' sakes and for sure the company's sakes, I hope you vote no on December 10th. Question: There has been some question about wheth- er or not the union can call the workers out on strike or whether there would be an election to do so. Answer: Well, I can clear it up as far as my own knowledge is concerned. Most union contracts call for elections or for votes on whether they go out on strike or not, right. I'm pretty sure this Constitution calls for that also. However, as I just read you here, in a case of this situation just reported in the newspaper in San Leandro, then without the matter of even being voted on the IAM agreed to continue the picket lines, so I would imagine there are situations that the union might be able to get around that. (Inaudible comment from the audience) I'm sorry, I'll try and do that, George. The question was, "There have been questions asked regarding whether a union can call people out on strike or whether they have people vote whether they are going out on strike. Yes sir. Question: Inaudible. Answer: The question was, "Is it true that in a contract that there could be written into the contract a "no strike" clause? I think maybe what you're re- ferring to is'that in'all the labor contracts I've been involved with there is a clause in it which says the union must go through a particular procedure before it may legally call a strike, and that procedure usually is in- volved in a grievance procedure. But, it has also been my experience that whenever a union decides it wants to strike, the matter of going through that particular series of events is not a very difficult thing for them to accomplish. Yes sir. Company and the union are negotiating to have a strike, is it possible for the union to say have a strike and everyone goes out." Well, first of all, ma'am, the question of whether to strike or not is usually not nego- tiated. The negotiations are going on over other issues, right. When the negotiations come to a point, assuming the previous contract or a reasonable time has expired where the union feels that it is not going to get what it wants, right, it would then call for a strike. Some other questions? Yes ma'am. Question: Inaudible. Answer: Sir, I would certainly hope you decide to do that. (Applause) One sure way to do that and give me a chance to get this place going in the next year is to vote no union on December 10th. (Applause) Yes ma'am. s s s s s Answer: Well, we will certainly be discussing those things directly with the people if there is no union here. If there is a union here, we cannot discuss with you because the fact the union is in here says by law we are obliged to negotiate with the union which is the legal bargaining agent for the people in the plant. Now, I think that's a pertinent question you're asking and I want to make sure I understand it. Did I repeat that one? Okay, the question was, the lady referred to an- other person who asked a question, "If the union doesn't come in here, would we negotiate with the peo- ple?" (Questioner interrupts: In other words, would we get more money?) I can't answer you that because the law prohibits me, but if Mr. Hardin [Union Represent- ative] shows up, I'll answer it. (Light laughter) 5. Johnson's introduction to Campbell's speech on December 4 He [Campbell] called me this week and Bob feels that strongly about this situation we have here, strongly regard- ing the success of Albuquerque, and strongly regarding the feelings, of course, that a union can do nothing but hurt our chances of success here that he rearranged a pretty busy schedule to come down and talk to us this morning. R. J. Campbell's December 4 Speech Question: When the union and the Company are negotiating whether to strike or not, is it possible for the union to say strike and then everyone would have to strike? Answer: The question was verbatum. "When the I feel that the decision you make next Thursday may be one of the most important decisions that you'll ever make concerning your job and your future, and by the way, my future. And the reason I say that is this. I have some data that 1222 DECISIONS OF NATIONAL LABOR RELATIONS BOARD I would just make reference to here; news publications and Now, the union that made it impossible-and must all later that you will better understand that there is a trend accept the blame-for us to produce a competitive product in American industry because of problems created by un- in San Leandro has lost, to prove this point, over one thou- ions and other factors to go foreign countries and have their sand jobs in San Leandro. products built either by companies that they control such as the one we have in Belgium and the one we have in Holland or buy from the Japanese, which we are forced to do at the present time. But, I am also a realist so I wanted to come in while there still was a chance for some possible effect of getting some facts to you on how I feel and hope that we end up going on together to bigger and better things, including job And, this really is part of the decision you will be making next Thursday. If the union tries to do here in Albuquerque what it did to our plant in San Leandro, there is no question in my mind but what we will not be able to continue manufacturing electronic calculators in this coun- try and you can tell the people from the union who are here that it is a fact that it isn't that the jobs will bo back to California like they are hoping for, in my opinion. security, better pay and so on and so forth. Now, if you mark an "X" in the NO box, it means that you want to continue your trust and confidence in your Company's efforts-in our efforts-to bring more work into the plant so that it will grow and provide better jobs and better security and better pay for all of Albuquerque em- ployees. I have always said, and I told you before we ever heard about a union; when I was at Link, we didn't have unions; we didn't even get them close enough to ever be able to call an election in the time that I was there because we treated the people fairly and as we were more prosperous, as we began to compete, as we filled our plants up, we had regular increases for our people, and this is our plan here-that we will be fair and treat people fairly and share. * s $ s s We just would not have been able, in my opinion, to stay in the business with the problems that we had in Cali- fornia-many of which the union must take responsibility for. 11 Today, three years later-which is why we came to Albuquerque-why we had to get out of California and why we cannot-and if the people were telling you, or the people back in California only knew-it isn 't a matter of jobs going from here back to California because if we are forced out of here , those jobs cannot go back to California because we will not be any more competitive than we were before. The jobs will go some place else and I think if the Californians knew this , they wouldn 't be putting all the money and effort they are into doing what they are trying to do here, it ap- pears to me. s s s I say to you, the union does not create jobs. I say to you that Friden and having products we can sell create jobs. And, why should you pay them over one week's salary to come in when I say you can get the benefits by the methods that we are trying to use of good communications, working with people and treating them properly, which has a history of every company that I have ever run, that is what we have done. s s 13 Do you think they [union] are interested in you and your future, or are they really interested in saving their dues money back where they live in San Leandro? By getting in here in Albuquerque and then calling you out on strike, and shutting this plant down .... s Now, is the union trying to force the company to send its calculators back to San Leandro? I say I believe they are but they are not going back to San Leandro because we cannot be competitive back there .... The more work we can bring into this plant the better your jobs will be. Where will this work come from? Unfortunately, it will come main- ly from San Leandro so I don't blame them for being that upset back there. But, it was going to leave San Leandro anyway. That's the thing they do not understand. The one way that they can stop this in their opinion is if this plant is on strike; then, it would appear that no work would be moved from San Leandro into a plant that is on strike and it would preserve jobs, in their opinion, possibly. s If we lie to you now, by the way, one year from now, you can have another election and you can really shove it down our throats for lying to you-so what I say is give THE SINGER COMPANY 1223 Roger Johnson, who I have great confidence in, an opportu- nity to take a young, fledgingly (sic) tree here , a small one that cannot stand the wind ... because we are small and we haven't gotten really established yet, and give him a chance to see what he can do . And, I say this to you. If Roger Johnson doesn't treat you fairly in all respects of good work- ing conditions which , my gosh , we have tried to provide the best we can here , I think they are as good as any in Albu- querque . They are as good as any in Albuquerque . They are as good as any in California . If you are not treated fairly on your seniority , on your promotions , on no discrimination, or anything else, then you still have the opportunity to make a decision at a later time . But, give him a chance is what I say. and my future . The larger we grow , the more you will grow. Let's take a look at what some of the union organizers haven't told you . Did they tell you about the layoffs at the Singer plants they represent? No, they didn 't tell you that. Did they tell you about the one thousand jobs ... the one thousand jobs ... that were lost in San Leandro? No, they didn't tell you about that . Did they tell you about the over 200 people that are now on layoff in San Leandro? No, we didn't hear anything about that . Did we talk about the 400 or so jobs they lost in Glendale , California? Of course not. They don 't talk about that . We have a plant in Tennessee which they also didn 't talk about where they originally rep- resented 700 people . At this point there are 225 there . That's over 400 jobs lost there . Now, they didn 't talk about this because these are the kinds of things that they don't like to * * * * discuss directly. Oh yes, the union likes to make noises So, when when you walk to the cafeteria to vote next Thursday , take a look at your plant and your work area and I hope , and I think , you will agree it is one we can all be proud of . Think your paycheck and your job and the future. Do you want to vote to save jobs at San Leandro ? To turn your future over to California organizers? To outsiders who have no interest in this plant 's future? Or, do you want to vote for your Company which provides your jobs here in Albuquerque , and which is engaged in daily efforts to bring more work to Albuquerque so that your plant will grow and provide better paying jobs and more security for you and your family. 6. Johnson 's December 8 speech Those of you who have been with us a year or so received a wage increase not too long ago. That was the result of reviewing the area wage patterns which we contin- uously do , we will do, and that will continue-whether a union is in here has nothing to do with what kind of wages and benefits we will be paying. You see , as a matter of fact, as this company goes in Albuquerque so goes your future about job security . But, they don 't like to talk about this because they know that that record they have proves just the opposite . They are not interested in job security , particular- ly once they get into a plant . Now, did the unions tell you why they lost these jobs in San Leandro? No, they didn't. They lost the jobs, ladies and gentlemen , very frankly be- cause we just could not stay in business in San Leandro. The situations that arose there-in large part due to this union's activities-had made it impossible for us to continue busi- ness in the calculating field in San Leandro. Job security is a function of what people do, how the business goes , and what work is brought in. The union cannot provide that . In fact , as I pointed out before, their record appears to me to be exactly contrary to that. A thousand jobs lost in San Leandro . Jobs lost all over this country. I have to say-excuse me, ladies-I don't think they give a damn about your job security once they are in and collecting your fines and your dues .... There is only one thing , of course, a union can guarantee if they want and that's the right to strike, and to go out on strike without pay. And, that's a right I just don't think any of you need or want. 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