Varo, Inc.Download PDFNational Labor Relations Board - Board DecisionsSep 17, 1968172 N.L.R.B. 2062 (N.L.R.B. 1968) Copy Citation 2062 DECISIONS OF NATIONAL LABOR RELATIONS BOARD Varo , Inc. and International Association of Machin- ists and Aerospace Workers, AFL-CIO. Cases 16-CA-3099, 16-CA-3187, and 16-RC-4758 September 17, 1968 DECISION AND ORDER BY CHAIRMAN MCCULLOCH AND MEMBERS FANNING AND ZAGORIA On June 18, 1968, Trial Examiner John M. Dyer issued his Decision in the above-entitled proceed- ing, finding that the Respondent had engaged in and was engaging in certain unfair labor practices and recommending that it cease and desist therefrom and take certain affirmative action, as set forth in the attached Trial Examiner's Decision. He further found that the Respondent had not engaged in certain other unfair labor practices alleged in the complaint and recommended that such allegations be dismissed. He also found, in Case 16-RC-4758, that the Respondent interfered with a Board elec- tion held on December 18, 1967, and recom- mended that the election be set aside. Thereafter, the Respondent filed exceptions to the Trial Ex- aminer's Decision and a supporting brief. The General Counsel filed limited exceptions to the Trial Examiner's failure to provide for the severance and remand to the Regional Director of Case 16-RC-4758. 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 powers in connection with this case to a three- member panel. The Board has reviewed the rulings of the Trial Examiner made at the hearing and finds that no prejudicial error was committed. The rulings are hereby affirmed. The Board has considered the Trial Examiner's Decision, the exceptions, and the entire record in these cases and hereby adopts the findings, conclusions, and recommendations of the Trial Examiner, as modified herein.' ORDER Pursuant to Section 10(c) of the National Labor Relations Act, as amended, the National Labor Relations Board hereby orders that the Respond- ent, Varo, Inc., Mexia, Texas, its officers, agents, successors, and assigns , shall: 1. Cease and desist from: (a) Transferring or refusing to reinstate an em- ployee to his former position in order to discourage him and other employees from being or becoming union members. (b) Maintaining in effect or enforcing its illegal written no-solicitation rule, promulgating illegal oral no-solicitation rules, or threatening employees with discharge for violation of such rules. (c) Interrogating employees unlawfully as to their union activities or desires. (d) Promising its employees economic benefits if they refrained from becoming or remaining mem- bers of the Union or assisting it. (e) Warning its employees that if they selected the Union, it would not accede to the Union's con- tract requests, and employees would be forced to strike to get a contract and would have difficulty getting other jobs, or otherwise warning its em- ployees that selecting the Union would be a futile effort. (f) Threatening its employees with removal of the plant if they engaged in a strike and the Em- ployer was unable to secure replacements for them. (g) In any other manner interfering with, restraining , or coercing its employees in the exer- cise of their rights to self-organization, to form labor organizations, to join or assist International Association of Machinists and Aerospace Workers, AFL-CIO, to bargain collectively through represen- tatives of their own choosing, and to engage in con- certed activities for the purpose of collective bar- gaining or other mutual aid or protection. 2. Take the following affirmative actions which are necessary to effectuate the policies of the Act: (a) Offer to reinstate Robert Cherry to the posi- tion of inspector- trainee in accordance with the ' We hereby correct the Trial Examiner 's apparently inadvertent mis- statement of the results of the December 18, 1967, election, which were 176 to 91 against the Union The no-solicitation rule in the Respondent's booklet " You and Varo" was promulgated before the filing of the petition in Case l6-RC-4758, and more than 6 months before the filing of the original charge herein, con- sequently , we find no violation or interference with the election in the promulgation of this rule, but do find a violation of Sec 8 ( a)(I) and inter- ference with the election in its maintenance and enforcement during the period relevant to these proceedings In adopting the Trial Examiner's con- clusion that Manager Parker's speeches at employee meetings violated Sec 8(a)( I ), we rely on his statements to the effect that if employees voted in a union, the Respondent would not accede to union contract requests, the Union would be forced to strike , and the strikers would be immediately and permanently replaced and would have difficulty in securing alternative em- ployment The Respondent requests an explicit finding that it did not violate Sec. 8(a)( I) by distributing to its employees the booklet "Some Questions An- swered About Unions," written by its attorney, John E Price Such a violation was not alleged, or litigated , or found by the Trial Examiner. Neither the General Counsel nor the Charging Party has excepted to the Trial Examiner's failure so to find In these circumstances , it is not necessa- ry to pass upon this issue, and the request is therefore denied 172 NLRB No. 236 VARO, INC. 2063 recommendation set forth in the section of the Trial Examiner's Decision entitled "The Remedy." (b) Make Robert Cherry whole for any loss of pay he may have suffered by reason of the Respond- ent's discrimination against him in accordance with the recommendations set forth in the section of the Trial Examiner's Decision entitled "The Remedy." (c) Preserve and, upon request, make available to the Board or its agents, for examination and copying, all payroll records, social security payment records, timecards, personnel records and reports, and all other records necessary to analyze the amount of backpay due under the terms of this Order. (d) Notify Robert Cherry if presently serving in the Armed Forces of the United States of his right to full reinstatement upon application in ac- cordance with the Selective Service Act and the Universal Military Training and Service Act, as amended, after discharge from the Armed Forces. (e) Post at its Mexia, Texas, plant copies of the attached notice marked "Appendix."2 Copies of said notice, on forms provided by the Regional Director for Region 16, after being duly signed by the Respondent's representative, shall be posted by it immediately upon receipt thereof, and be main- tained by it for 60 consecutive days thereafter, in conspicuous places, including all places where notices to employees are customarily posted. Reasonable steps shall be taken by the Respondent to insure that said notices are not altered, defaced, or covered by any other material. (f) Notify the Regional Director for Region 16, in writing, within 10 days from the date of this Order, what steps have been taken to comply herewith. IT IS FURTHER ORDERED that the complaint be dismissed insofar as it alleges unfair labor practices not specifically found herein. IT IS FURTHER ORDERED that the election held on December 18, 1967, in Case 16-RC-4758, be, and it hereby is, set aside, and that said case be severed from Cases 16-CA-3099 and 16-CA-3187 and re- manded to the Regional Director for Region 16 of the Board for the purpose of conducting a new election at such time as he deems the circum- stances permit the free choice of a bargaining representative. 2 In the event that this Order is enforced by a decree of a United States Court of Appeals, there shall be substituted for the words "a Decision and Order" the words "a Decree of the United States Court of Appeals Enforc- ing an Order " APPENDIX NOTICE TO ALL EMPLOYEES Pursuant to the Decision and Order of the Na- tional Labor Relations Board and in order to effec- tuate the policies of the National Labor Relations Act, as amended, we hereby notify our employees that: WE WILL NOT discriminatorily transfer any employee or in any other manner try to discourage him or you from being or becoming members of the International Association of Machinists and Aerospace Workers, AFL-CIO, or any other labor organization. WE WILL rescind both our written no-so- licitation rules contained in our booklet "You and Varo" and our oral no-solicitation rules promulgated during the Union's campaign in September 1967. WE WILL NOT promise our employees economic benefits if they do not become or remain union members or support the Union. WE WILL NOT threaten to discharge or other- wise punish any employees for violating such rules. WE WILL NOT interrogate our employees as to their union activities or desires. WE WILL NOT in any other manner interfere with, restrain, or coerce our employers in the exercise of their rights to self-organization, to form labor organizations, to join or assist Inter- national Association of Machinists and Aerospace Workers, AFL-CIO, to bargain col- lectively through representatives of their own choosing, and to engage in concerted activities for the purposes of collective bargaining or other mutual aid or protection. WE WILL NOT warn our employees that if they select the Union we will not accede to the Union's contract requests, and employees will be forced to strike to get a contract and will have difficulty in getting other jobs, or that selecting the Union would be a futile effort. WE WILL NOT threaten our employees with moving the plant if the employees engage in a strike and we are unable to secure replace- ments for them. WE WILL offer Robert Cherry reinstatement to his position as an inspector-trainee with all the rights and any backpay due him. WE WILL notify Robert Cherry if presently serving in the Armed Forces of the United States, of his rights to full reinstatement, upon application, in accordance with the Selective Service Act and the Universal Military Train- ing and Service Act, as amended, after discharge from the Armed Forces. All our employees are free to become or remain union members. 2064 DECISIONS OF NATIONAL VARO, INC. (Employer) Dated By (Representative ) (Title) 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. If employees have any question concerning this notice or compliance with its provisions , they may communicate directly with the Board 's Regional Office , 8A24 Federal Office Building , 819 Taylor Street , Fort Worth , Texas 76102 , Telephone 334-3921. TRIAL EXAMINER 'S DECISION STATEMENT OF THE CASE JOHN M. DYER , Trial Examiner : International As- sociation of Machinists and Aerospace Workers, AFL-CIO, herein called the Union , filed an original charge on August 31, 1967,' alleging that Varo, Inc., herein called the Company , Respondent, or Varo, was interrogating and threatening its em- ployees concerning their union desires . This charge was amended on October 19, to include an allega- tion that Robert A . Cherry was discriminatorily transferred from one job to another job. The original complaint issued on October 31, and an order consolidating cases, a consolidated com- plaint , and an order rescheduling hearing was is- sued on February 8, 1968 , by the Regional Director . The consolidated complaint contained some 12 independent allegations of 8(a )( 1) viola- tions and two 8 ( a)(3) allegations , one of a dis- criminatory transfer and the second of a suspension of an employee . During the hearing several of the 8(a)(1) allegations and the allegation as to the suspension of the employee were , without objec- tion, deleted. The Union filed a petition for an election on Oc- tober 6 , and following a November 22 Decision and Direction of Election , the December 18 election resulted in a vote of 267 to 176 against the Union, challenged ballots not being determinative . Timely objections to conduct affecting the results of the election were filed and the Regional Director in a Supplemental Decision and Order of February 2, 1968, determined that the validity of the unfair labor practice allegations in the then outstanding complaint, and the consolidated complaint to be is- sued , would determine the ultimate merit of the ob- jections , and ordered consolidation of the represen- tation and the complaint cases. LABOR RELATIONS BOARD Respondent , in its answer and amended answer to the complaints , admitted receipt of the various charges and amended charges , that it was a cor- poration engaged in interstate commerce , and that the Union was a labor organization within the meaning of the Act , but denied that it had in any way violated the Act . The Regional Director's Sup- plemental Decision in the representation case notes that Respondent denied the allegations set forth in the Union 's objections. The hearing herein was held in Groesbeck, Tex- as, on March 18 and 19 , 1968, and all parties were afforded full opportunity to participate in the hear- ing, to examine and cross-examine witnesses, and to argue orally . The parties waived oral arguments and briefs from Respondent and the General Counsel have been received and considered. Upon the complete record in this case and on my evaluation of the reliability of the witnesses, based both on the evidence received and my observation of their demeanor , I make the following: FINDINGS OF FACT 1. THE RESPONDENT 'S BUSINESS AND THE LABOR ORGANIZATION Respondent , a Texas corporation , maintains a plant facility at Mexia, Texas, where it is engaged in the design , development , manufacture , and sale of night vision equipment , weapons delivery equip- ment , and electronic devices for the conversion of electric power and related products . During the past year Respondent received at its Mexia plant goods valued in excess of $50 ,000 which were transported from points outside the State of Texas, and during the same time , sold and shipped from said plant to points outside the State of Texas products valued in excess of $50,000. The Respondent admits and I find that it is en- gaged in commerce within the meaning of Section 2(6) and ( 7) of the Act. Respondent admits and I find that the Union herein is a labor organization within the meaning of Section 2 ( 5) of the Act. II. THE UNFAIR LABOR PRACTICES A. Background and Undisputed Facts At its Mexia facility the Company has a two-shift operation in two structures which are called plants 1 and 2 . Respondent 's top man at the Mexia facility during the relevant period was Division Manager Morris Parker who was assisted by Plant Manager Bert Yandri and Personnel Manager Arlow Bowers. Several foremen involved in this proceeding are Doug Woods , Bobby Neely , Dave Johnson, and ' All dates herein occurred in 1967 unless specifically noted otherwise VARO, INC. 2065 Mervyn Clay, all of whom are admittedly super- visors within the meaning of the Act. Respondent's industrial relations manager for military systems, Robert E. Jones, testified without contradiction that after the Union on August 18, notified Varo it represented a majority of Varo's employees, Respondent held two group meetings, one for the day shift and the second for the night shift at each of the two Mexia plants on Monday, August 21. The employees were told that Varo had received the Union's request and that "we would make every effort to educate them on the facts of unionism , how unions worked, since we had indica- tions from the employees that they were not fully aware and familiar with what unions were and how they operated." Jones said that it was announced that the Company would gather information for their education and would have copies of a booklet available for their education on unionism and it was the Company's position on unions. (Resp. Exh. 1.) Jones testified that several hundred copies of "Some Questions Answered . . . About Unions" were thereafter purchased to be made available to the employees. According to Jones, Division Manager Parker announced that subsequent meetings would be held to further educate and explain to the em- ployees about unionism and "it was described in this booklet." There appears to be no dispute that management currently maintained and had given to its em- ployees a booklet entitled "You and Varo" which contained various topics of interest to employees and a number of rules and regulations by which em- ployees were to abide.2 Under "Rules of Conduct" in the "You and Varo" booklet, employees are given examples of offenses which require disciplinary action, rule 15 states : "Solicitation on Company property for any purpose, including pools and lotteries, at any time for a cause not sponsored or authorized by the facility manager." On page 18 of the booklet under the title "Soliciting" is the following: "Solicitations and/or collection of funds for any purpose what- soever is not permitted in the plant without specific approval of the Industrial Relations Department." Complaint paragraph 9(a) alleges that Respond- ent violated Section 8(a)(1) of the Act by main- taining a discriminatory written no-solicitation rule prohibiting its employees from soliciting union memberships and support on company property during its employees' working and nonworking time. There appears no question but what these two written rules forbid solicitation at any time on com- pany property without specific approval of manage- ment and would be violative of the Act as an un- reasonable impediment to self-organization and therefore discriminatory in the absence of evidence that special circumstances make the rules necessary in order to maintain production or discipline. See Republic Aluminum Co. v. N.L.R.B., 394 F.2d 405 (C.A. 5). Respondent maintains that the rules were not en- forced in regard to employees' lunch hours for which they were not paid, but Respondent's posi- tion is not clear as to enforcement on breaktime for which employees were paid. There is evidence that employees were told that management would en- force a no-solicitation rule in regard to breaktime. The complaint in addition alleges that Respondent by its supervisors also promulgated an invalid oral no-solicitation rule. Whether the statements of Respondent's supervisors were meant as enforce- ment of the written rule or pronouncement of a new rule is a question. Certainly the broad range of Respondent's writ- ten rules brings them within the scope of the rule enunciated by the Board in Stoddard-Quirk Manu- facturing Company, 138 NLRB 615, 617. Respond- ent's written rules are presumptively invalid and Respondent has not offered any evidence to establish any valid reason for them other than to as- sert that it does not know that they were enforced for employees' nonpaid, nonworking time. The evidence in regard to enforcement will be con- sidered infra, with the oral no-solicitation rules. In any event the evidence Respondent offered does not overturn the presumption or give legitimacy to these written rules. I therefore conclude and find Respondent has violated Section 8(a)(1) by the promulgation of the restrictive no-solicitation rules in its booklet "You and Varo." Following the August 21 announcements to the employees, Respondent purchased some 200 to 300 booklets (Resp. Exh. 1). Personnel Manager Arlow Bowers said he distributed a number of the booklets through the plant and kept others in reserve in case employees asked him for them. Several of the employees testified that they had seen the booklets in the plant and supervisors had loaned them the booklets when requested. On September 15, Division Manager Parker sent the employees a letter (G. C. Exh. 3) reminding them he had promised to give them more informa- tion about the Company and its policies and prac- tices as well as what a union would mean. He said that in the ensuing weeks he would cover a number of subjects with them making them aware of the whole situation, but in this letter he sought to cor- rect what he considered two erroneous rumors con- cerning the Company and its policies. 2 Employee Harry Taylor testified he was given the Varo booklet when Employee Larry Holmes testified without contradiction that he saw he was hired in 1966 and told that it was a brief statement of the company Foreman Winfrey hold up the Varo booklet during a group meeting on rules and regulations The booklet was used during Thanksgiving 1967 by a December 15 referring to it as our rules supervisor who had a question of whether Taylor had been on an unau- thorized absence or not 2066 DECISIONS OF NATIONAL LABOR RELATIONS BOARD Personnel Manager Arlow Bowers testified that Varo turned over a list of its employees to Respond- ent's attorneys, who decided on the employee groupings for a series of 20 to 22 meetings with em- ployees in the bargaining unit concerning the Union held just before the union election. The meetings which lasted some 2 to 3 hours were attended by 13 to 15 employees, one of the Company's attorneys, Division Manager Parker, several foremen, and in most meetings Personnel Manager Bowers. A general pattern of setting forth Respondent's posi- tion was followed in the meetings, interrupted by questions from the employees. In general Respond- ent stated what it felt the rights of the parties were and the large cost and miniscule gains of unionism. In essence, the complaint charges that Division Manager Morris Parker and Attorney Price by their statements in these meetings painted a picture of futility for the union adherents, by making various threats of withholding benefits from employees or removing the plant if they engaged in a strike, while stating that Respondent would decline the Union's unreasonable requests and that in the consequent strike the employees would lose their jobs and without income would lose all the goods they were purchasing on installment contracts. Neither Attor- ney Price or Morris Parker testified, and instead Respondent had various supervisors, who either participated in or were present during these meetings, testify as to what was said in particular meetings or deny that particular statements were made. Despite the procedure the overall message of Re- spondent to its employees is quite clear. Respond- ent made known from the outset its strong animus towards the Union, labeling it a striking union and stating that it would fight it. From its stance as an educator for its employees, who were by its stand- ards ignorant concerning unionism, it laid out for them a predicted course of what would occur if they were foolhardy enough to select the Union as their bargaining representative. Respondent emphasized its educational posture in teaching its employees what would happen beginning with the initial speeches, through the booklets and letters, through the large number of lengthy meetings held for small selected groups of employees immediately before the election. The air of futility generated at the inception was compounded to a fog. An exam- ple of Respondent's dramatization of futility oc- curred in a question by employee D. L. Donowho and answer by company Attorney Bennett as fol- lows: Q. Did he (Bennett) comment about putting people back to work after a strike? A. Yes, sir. I asked him about the charges pending today, and he said his job with the ' The parties stipulated that if Attorney John Edward Price were called to testify as to any of the allegations in the complaint with reference to him, his testimony would be that he said exactly what applies to that point as company was to keep the company out of an unfair labor practice charge and I told him we can strike now on an unfair labor due to the pending charges over there. He said, "yes, you can strike, but it may take two years before a decision comes down and you can't go to work during those two years for Varo." He said, "By that time you will probably have found another job but most of you will have lost your cars or homes and you will be looking for other em- ployment. By the time the Fifth Circuit Court of Appeals brings a decision down, most of you won't want to be reinstated on the job." Thereafter Bennett answered simply no to some questions, which allegedly came from an em- ployees' question box concerning whether if there were to be a strike it would be of short duration and whether the Company and the Union could get along in peace and harmony. He concluded by say- ing the committee (union) would be met by solid opposition. The complaint did not allege that company At- torney Bennett committed any 8(a)(1) violations, and in the present aspect of the case, since he was not so charged and Respondent did not make any effort to defend his statements , I will not find that they violated Section 8(a)(1), but I will consider the import of his remarks in regard to the represen- tation proceeding. B. Chronology of Alleged Unfair Labor Practices 1. James F . Smith was employed at Respondent as a turret lathe operator some 10 months until Oc- tober 30 , and is presently employed at the Naval Air Station in Corpus Christi , Texas . Smith testified that he gave other employees union authorization cards during the union campaign , and on August 25, Foreman Doug Woods told him he had been caught passing out pledge cards during the break period to a boy named Tommy, and that it was against company policy and against the law and the practice would have to stop or else. Smith replied that he would check into it and would not pass out any more cards until he found out what he could do. On the following afternoon Foreman Bobby Neeley talked to Smith telling him it was against company policy to talk about the Union to anyone in the shop , whether it was on break , lunchtime, or anytime except to supervisors and foremen. Smith said he had started the conversation with Neely after hearing from other employees that Neeley said Smith had been arguing union during lunchtime. Respondent did not produce either Foreman Doug Woods or Foreman Bobby Neeley and made no attempt to explain why they did not appear to stated in Resp Exh I (the book written by Mr Price "Some Questions An- swered-About Unions") VARO, INC. testify. Thus there is no contradiction of Smith's testimony other than the denials in Respondent's answer and Respondent's general position in its brief that the restrictions on solicitations and talk- ing were reasonable. Respondent's position does not raise an adequate defense. I credit James Smith, determining that he has no reason to fabricate these conversations and con- clude and find that Respondent violated Section 8(a)(1) by the action of Foreman Doug Woods in promulgating an oral no-solicitation rule prohibit- ing union solicitation on company property during an employee's nonwork time. Further Foreman Woods violated Section 8(a)(1) by threatening Smith that the practice would "stop or else" which I take to be a threat of discharge if Smith persisted in union solicitation. Foreman Neeley's warning and prohibition against talking union anywhere on company pro- perty at anytime is an extension of Respondent's no-solicitation rule and I find and conclude that as an oral no-solicitation rule it violates Section 8(a)(1) of the Act. Respondent's restriction of talking union at any time or soliciting on employees' breaktime again is presumptively invalid as an interference with the employee rights. Respondent made no effort to ex- plain why it might be necessary to so restrict em- ployees' union activities, merely asserting that it was not an unreasonable restriction. In the absence of any adequate explanation and where the rule is presumptively invalid I find it to be an invalid rule. See Stoddard-Quirk Manufactur- ing Co., cited above, and Marion Manufacturing Company, 161 NLRB 55. 2. Robert Cherry began his employment on May 5, as an engine lathe operator on the second shift under Foreman Mervyn Clay. Cherry became a union proponent, wore union buttons in the plant, and helped secure union authorizations from em- ployees. Clay and Cherry state they spoke of Cher- ry's desire to become an inspector and Clay told Cherry he would speak to then Chief Inspector J. T. Barnett about it and set up an interview for Cherry. At the interview which occurred 2 or 3 days before Cherry reported to work in the inspection depart- ment on September 5, Clay after introducing Cher- ry and Barnett told Cherry that he agreed to let him transfer to the inspection department if they wanted him, that he would be on probation there, and if he did not work out, he would take him back on the second shift in the engine lathe department. Cherry agreed and after a short conversation with Barnett regarding his use of a micrometer and other measuring instruments, the transfer was set. Robert Cherry testified that on Wednesday, Sep- tember 6, Inspection Foreman Dave Johnson ap- proached him about 15 minutes before the 7 a.m. starting time and asked if he was a union instigator and he replied he was a union agitator. Johnson told him he was not to talk about the Union on 2067 company time, that the lunch hour was his and he could talk about what he wanted, but that he might get into trouble if he talked union on coffeebreaks because the Company paid for that time. Cherry replied that he didn't think he needed any more cards signed because they had a majority. Johnson, who is now the quality engineer, stated that, as inspection foreman, he talked to Cherry about every day Cherry was in that department and on two occasions discussed Cherry's work with him. According to Johnson on the first occasion, Sep- tember 6, he told Cherry he had several complaints from the production department that the inspection department was bothering or hindering the produc- tion employees on their machines by talking and keeping the production people from their jobs resulting in a rise in the scrap rate, adding that they must not be guilty of this. As to restricting Cherry, Johnson says he told him that "the Company has some rights, one being they can restrain you from talking union or soliciting union on company time in company property. They probably won't say anything to you about what you do on your break, but they could restrain you since they do pay for the break. Your lunch hour we don't pay you for so we don't have the right to say anything about it. I went further to say I hate to see him lose his job, but in my observation of him in the way he handled himself in a day and a third of a day, if he couldn't keep himself busy and if his proficiency didn't im- prove, that since he was on probation he couldn't last in Inspection." Johnson acknowledged Cherry stated he was an agitator not an organizer. Under either Johnson's or Cherry's version of the conversation, Cherry was being warned by his su- pervisor that he could not solicit for the Union or even talk about the Union on company time on company property even on breaktimes. This prohibition is again an unreasonable invalid restric- tion on employees' legitimate activities and again, with no reasonable explanation by Respondent as in the preceding section, is a violation of Section 8(a)(1) of the Act and I so conclude and find. The complaint appears to allege that this conver- sation between Cherry and Johnson was violative of the Act as an illegal interrogation of Cherry. Con- sidering that Cherry was wearing several union but- tons at that time, I believe that Johnson's question of Cherry was somewhat rhetorical indicating knowledge that Cherry was one of those organizing the Union at the plant. In any event such an 8(a)(1) finding would not amplify the corrective measures which will be recommended. 3. Employee D. L. Donowho testified that Foreman Mervyn Clay on either Thursday, Sep- tember 7, or Friday, September 8, told him "Bob (Cherry) has let me down." When Donowho asked how, Clay said he had recommended Cherry to Barnett and that he was a good man but was doing too much politicking. Donowho agreed that Cherry was a good man and added that if a man wanted to 2068 DECISIONS OF NATIONAL LABOR RELATIONS BOARD make up his own mind that was his prerogative. Ac- cording to Donowho they talked some more about each individual having his own opinion regarding whether he wanted a union or not. M. C. Hedrick, Jr., testified that he was the lead- man inspector under Foreman Dave Johnson and had been a class A inspector for some 14 to 15 years , but no longer works for Respondent . He said Respondent had no set period or system for trainees , but that the trainee would be assigned to him and he would help him and teach him as the trainee worked and learned . Hedrick said "we give them plenty of time and a lot of help." According to Hedrick the training usually took about a month and he would be asked by Foreman Johnson and sometimes by Chief Inspector Barnett how the trainee was progressing and would report if the trainee was slow or was catching on. In regard to Cherry, Hedrick said he was asked several times how Cherry was doing and said the only complaint he had about Cherry was that he appeared to talk too much to the other men when there was such a large volume of work to be done. Hedrick said there were no complaints about Cherry's work whatsoever and that Cherry had the ability to make a good inspector in that he did what he was told and would report back after he had finished an as- signment . On the last occasion Barnett asked him about Cherry's progress, he told Barnett that Cher- ry was not an inspector yet but that he was training him and Cherry showed ability. Hedrick did not learn of Cherry's transfer back to production on September 1 1 until after it happened. Of all the in- spectors he trained during his employment with Varo, Cherry was the only one who was not made an inspector and was transferred back to produc- tion. On Monday, September 11, shortly after beginning work, Barnett told Cherry he had watched him for the past week and was convinced that he was not qualified to be an inspector . Cherry asked what he did wrong and Barnett said he read a height gauge with one hand in his pocket . Cherry said that if Barnett had his mind made up there was no use talking to him , washed up, and left. Hedrick stated that during the week Cherry worked with him, Chief Inspector Barnett on one occasion remarked he had noticed Cherry reading a height gauge with one hand in his pocket and asked how he could do that. Hedrick answered it would be difficult but that he could do it and laughed it off. During direct examination J. T. Barnett was asked why he placed Cherry back in production and responded that it was due to Cherry's "not being proficient in the type of work that was laid out in the inspection ." He testified that Foreman Johnson reported to him that Cherry didn't appear to have initiative or to be agressive and added that he had observed Cherry for a week and noting his lack of proficiency he felt it would be to the best advantage to transfer Cherry back to the produc- tion department. Therefore on September 11, while Cherry was at his work station, he told Cherry he had observed him in the past week and explained the reason he felt Cherry needed more experience in reading instruments and other equipment includ- ing drawings and that he was going to transfer him back to production . Barnett stated that when Cher- ry said he didn't understand why, he made reference to Cherry's checking a height gauge with one hand in his pocket . On cross-examination Bar- nett said that he had observed Cherry on approxi- mately three occasions during the prior week, one of which was when Cherry was reading the height gauge. Barnett referred to Cherry's reading the height gauge until Respondent 's counsel suggested the word operating which Barnett promptly adopted. He said he did not know why Cherry had his hand in his pocket and didn't bother to ask him. When asked why not , Barnett responded with a question as to why should he, although admitting that he had spoken to other men while they were working and that he had observed other trainees while working and spoken to them . Barnett did not check to see whether the part was damaged by Cherry's handling of the height gauge. In regard to Johnson 's purported conclusions that Cherry was not aggressive or enthusiastic , Barnett stated Cherry didn't show vim, vigor, vitality, and zip in learning his new job , and he believed Johnson reported this to him on Saturday and this was one of the factors he took into account in making the decision to transfer Cherry back to production. Johnson did not tell him how he arrived at this con- clusion , only that he arrived at it in the process of normal inspection or duties. When asked further about this answer Barnett replied that it was "Something of this nature; insofar as shall we say, the detailed work, at his work station, the way he progresses- or the method he uses-I don't recall exactly, but something to that nature." Two other subjects in regard to Cherry's inspec- tion work were raised, one being that Cherry had stamped a traveler which went with some " bosses" or "snubbers" which went on a missile launcher. According to the testimony the "bosses" were too small and had to be scrapped. The wording used by Barnett is peculiar in that he stated not that Cherry had misinspected them but that a dimension had been missed on them. In regard to these " snubbers " Foreman Johnson stated he had a conversation with Cherry a few days after a group of 400 "snubbers" had to be scrapped because the " bosses " were undersized and at this time Cherry was inspecting some of those "snubbers" and that is why he talked to him about the importance of inspection. He also told Cherry he was on probation and that if he didn't perform better , he and Barnett saw no alternative but that he couldn 't remain there. Regarding parts inspection , Cherry testified that VARO, INC. 2069 on occasions an employee would bring a part to him when he first made it to be sure the machine was set right and he would inspect it and stamp the traveler on that first article . As to the " snubbers" Cherry said he went to the machines which were running on the upper and lower " snubbers " and the operator called his attention to the tact tnat tney were not right according to the blueprint and he checked them and brought the matter to Hedrick's attention , putting a red tag on the "snubbers." At that time he had inspected about 60 and rejected about 45 of that number . He stated he did not re- member stamping the traveler but could have stamped it after inspecting one, as was the occa- sional custom. The second matter concerned inspection of some upper ducts for searchlights . Johnson said on a Saturday when they regularly worked a half day, he told Cherry to inspect the ducts , that they had to go out that afternoon . He said Cherry left at noontime and although he had rejected some he couldn't tell what was what , and they had to be reinspected and some of them had to be reworked before they went out. Chief Inspector Barnett stated that Johnson re- ported to him that Cherry had been inspecting duct covers for a searchlight and "it appears he (Cherry) got disgusted and walked off and left the parts without saying anything to Mr . Johnson about them and Mr . Johnson had to put another person on these items to complete the inspection . Cherry left the plant and went home ." Barnett said to the best of his knowledge Cherry did not indicate the parts had been inspected. Cherry testified that on that Saturday Johnson told him that the job had to be finished and shipped that day and that he inspected the 20 to 25 parts and rejected all of them but 5 or 6 . He then re- ported this to Foreman Dave Johnson , asking if they could take the parts when they were so many thousandths of an inch out of line and telling him that he had only a very few good parts. After re- porting to Johnson and not getting any further in- structions and having worked a half day he left for home. Johnson mentioned one other matter regarding Cherry and that was that he had complaints from Foreman Neeley on Sunday that Cherry tried to get an individual in the plant to sign a union card. According to both Barnett and Johnson, on Saturday evening they discussed Cherry and de- cided he should be put back to the production de- partment when he reported on Monday . Neither Barnett or Johnson ever attempted to determine why Cherry had left the job on Saturday afternoon. If this had been the flagrant disregard of duties Barnett and Johnson seemed to indicate it was, then it is difficult if not impossible to understand why they would have felt that Cherry should con- tinue in Respondent 's employ at all. This incident was not mentioned by Barnett to Cherry when he informed him on Monday that he was transferring him. In fact , the only incident mentioned was the one-handed reading of the height gauge along with the vague generalization that he was not qualified. Considering the various versions of the contested events and those which are uncontested and further considering Respondent 's restrictions on union ac- tivities , I conclude that Cherry's transfer from in- spection , thus prohibiting him from advancing in the inspection department to a more substantial wage , was discriminatorily motivated . Hedrick, who appeared to be an unprejudiced witness since he was no longer associated with Respondent and further appearing to me to be an honest and forthright witness , testified that as the man training all of the inspector trainees , Cherry had the ability to become an inspector and showed talent for the job. The vague generalizations of Barnett and John- son plus the rather incredible notions of not checking Cherry if he had been doing something wrong in using the height gauge and in not finding out why he had left the plant if indeed Johnson did not know , lead me to discount their testimony in re- gard to Cherry's ability and actions . In doing so I have also noted the very careful language which was used about the "snubbers ," which does not really accuse Cherry of misinspection , plus his credible explanation of the events . Respondent's testimony concerning Cherry appears to me to be framed most precisely to create an aura of wrong- doing on Cherry's part without precisely saying so. The interim remark of Clay to Donowho, which I credit despite Clay's denial, gives a further clue as to the reason for the retransfer of Cherry. I conclude and find that Respondent's interrup- tion of Cherry's training program and subsequent transfer back to production was discriminatorily motivated because of Cherry's union activities and adherence and consequently violated Section 8(a)(3) and (1) of the Act. 4. Following the Cherry transfer , James Smith sought out Foreman Dave Johnson on September 11, and finding him in the inspection department during lunchtime , asked why Bobby Cherry had been taken off inspection and put back on running the machine at nights . Johnson said he did not have to answer any questions for Smith . Smith replied he was the union steward representing Cherry and would like an answer . Johnson said there were several reasons and he would not go into them and did not have to, that they did not have a union at Varo, and he did not have to answer any questions. About that time, according to Smith, the bell rang and the conversation ended. Johnson was not questioned about this conversa- tion and I credit Smith's version. That afternoon Smith was summoned to the of- fice of Plant Manager Yandri, where he found Yan- dri with a secretary who apparently took steno- graphic notes of their conversation . Yandri asked Smith if he had talked to Johnson on company time 2070 DECISIONS OF NATIONAL LABOR RELATIONS BOARD about the Union and Smith answered he might have gone over the lunch period 1 or 2 minutes. Yandri said that was not too important, that I or 2 minutes would not make too much difference. He next asked if Smith was a union steward or posing as a union steward. Smith said he wanted a witness if that was all right with Yandri. Yandri agreed and Smith got Henry Taylor to come in the office with him. Yandri repeated the question and Smith said he would like to talk to his union representative be- fore he answered the question and would give an answer the next morning and Yandri agreed. At that point Yandri asked Smith what the people wanted out there. Smith answered that he did not know for sure, that he could not speak for all the plant, but after an election he would have a con- tract and then his questions would be answered. Yandri said that if money was all that they were concerned with, they did not have to go to all that trouble to get it. Smith answered that there were several things they would want besides money. Yandri told Taylor that would be all and Smith asked to speak to Yandri in private. The secretary and Taylor left and Smith told Yandri that Foreman Doug Woods had torn a union sticker off one of the toolboxes and thrown it on the floor, and asked Yandri to put a stop to such activity. Yandri replied that he would look into it. Henry Taylor confirmed the conversation between Yandri and Smith, stating that after Yan- dri asked the question about Smith being a union steward and agreeing with Smith's request to put off the answer until the following day, they talked on some subjects and Yandri said that if money was all the men wanted why did they go to all this trou- ble to get it. Smith said that that was not all, there were other things, seniority, etc. According to Taylor, Yandri made a statement that he thought the men could get more through the company offi- cials than through the Union. Smith said that he did not think so, that they had tried others, and that had not helped. Yandri testified that after hearing a report that Smith was talking about the Union in the shop after the bell, he had Smith come to the office, and told him he wanted a straight story whether he was in- dulging in conversation regarding union business after the bell rung. He added that if it was so, he felt that Smith was out of order and if not, that he, Yandri, was out of order for reprimanding him for the activity. He asked if Smith had been talking to Dave Johnson regarding the Cherry incident after the bell rung. Yandri said Smith answered that the bell might have gone off but he was not sure. Yan- dri then said that he had talked with Johnson and by Johnson's recollection of the conversation, at least a portion of the conversation took place after the bell. Yandri said he next accused Smith of presenting himself as a union steward to Johnson, saying he felt that this was out of order. At that point Smith asked for a witness and Henry Taylor came in. When Yandri repeated the question Smith asked to be allowed to consult with an IAM official and answer in the morning. Yandri agreed to the request and thereafter made some comment about his own experience with a union some years ago and that he had no idea of how they were presently conducting themselves. He stated that the men were about to leave when he (Yandri) said he was aware of some wage inequities in the shop, but that in his opinion it seemed ridiculous to go to all this trouble for that. He pointed out that they had been short of staff in the office and while they might have hired some people a little bit high and others a bit low, those inequities were going to be adjusted with more office help. He further stated that he might have asked a question of Smith as to what the men wanted and that Smith told him it was too early to tell what the men's wants were and what they were going to ask for, that that was a long way down the road. The complaint alleges that Yandri's question of and statements to Smith violated Section 8( a)(1) as an unlawful interrogation and as a statement of an invalid oral no-solicitation rule. Smith's testimony is corroborated by Taylor and in the main by Yandri who seeks however to draw some fine verbal distinctions. I feel that the version given by Smith and Taylor is the more nearly correct. The fact that Johnson informed Yandri of the conversation and Yandri forthwith took up the matter with Smith in the terms he said he used shows that Respondent took a very serious view of its prohibition of union solicitation on company- paid time. According to other testimony football and baseball pools and other forms of solicitation took place without employees being warned about such activities. That Yandri raised the question makes it clear Respondent was enforcing its invalid no-solicitation rules and relaxed enforcement of it as to Smith only on the assurance that the conver- sation stopped about the time the bell rang. Yan- dri's question of Smith's presentation of himself as a union steward seems to be a natural question in the absence of any arrangement between Respon- dent and the Union for stewards on the job, but the manner in which the question was put further demonstrates Respondent's animus and put Smith under fear that some disciplinary measures might be taken against him. The inquiry as to the desires of the employees and the holding out of greater benefits without the bother of having a union, at the least , constituted illegal interrogation and a promise of benefit as alleged in the complaint. I therefore find and conclude that Yandri's state- ments and questions violated Section 8(a)(1) as an unlawful interrogation , an illegal promise of benefit, and as a restatement of Respondent's in- valid no-solicitation rules. 5. Employee Palmer Colier was sent to Yandri's office on September 11, and told by Yandri that Colier had been conducting union activity on com- VARO, INC. pany time that day. Colier denied it saying that he conducted his union activities on his own time, and had just come back from lunch and Yandri could check the timecard if he wanted to do so. Yandri replied that if the men walked out, those involved would be subject to dismissal, and any union activi- ty on company time was prohibited Colier said it was his right and that of the others to believe as they saw fit. He continued that he knew of one and possibly a second person who were fired for giving 2 weeks' notice, and he didn't agree with this com- pany policy, and the word was going around and after a while Varo wouldn't be able to get machin- ists. Yandri replied that he would rather let a man go than have him stay around talking to employees about a better job elsewhere. Colier repeated that he didn't agree with this policy, and that one of the leadmen, Jerry Don Sunday, said he would not have anyone working for him that believed in a union. Colier said that this wasn't right, that the people had a right to believe in a union just as much as Sunday had a right to believe against it. Yandri offered no testimony about his conversa- tion with Colier, and such testimony being unde- nied and Colier appearing to be a credible witness, I credit Colier's version. The broad prohibition by Yandri of any union activity on company time under the extant versions of company time includ- ing breaktime is sufficient to make this oral rule an illegal prohibition of union solicitation, and I so conclude and find that it violates Section 8(a)(1) of the Act. I do not however find that Yandri's statement amounted to a threat of discharge for solicitation, as alleged in the complaint. The threat of discharge, if there is one, is the statement that employees who went on strike were subject to dismissal. This state- ment can be construed in several ways, being legal or illegal under various circumstances, but it was not alleged or litigated as a threat to discharge striking employees in violation of the Act. There- fore I do not find a violation as to Yandri as alleged in complaint paragraph 9(d). 6. About 2 weeks after his transfer from the in- spection job, Cherry talked to Foreman Clay about having received good job grades, but not getting a raise. After discussing other topics he told Clay that where he worked previously, they got regular raises because they had a union. They discussed the good and bad points of a union with Clay saying he had worked at a plant where because of a strike they had lost their jobs. Clay said they wouldn't have anything to gain if they got a union, that they had good benefits such as insurance, etc., and they would not win an election and if they did the Com- pany would never deduct union dues from their checks and offered an apparently facetious bet that the Company would never agree to such a thing. Clay testified that shortly after returning from the inspection job, Cherry started a conversation with him concerning union beliefs and the progress of 2071 union activity at Varo. To specific questions Clay replied that there was no reference in the conversa- tion to checkoff or union dues, but they did discuss Respondent benefits, and he said he didn't believe Varo would go union, that the people didn't want it, and he thought the mass of the people would vote against it because of the policies that the Com- pany had set up, the wage structure, etc., and that they didn't need a union. General Counsel alleges that Clay in this conver- sation threatened reprisals if the Union was elected in order to impress on the employees the futility of selecting the Union. Considering Cherry's version of the conversation, I could not conclude that the statements he reports Clay made could be con- sidered reprisals to be taken against employees or even promises of benefit for refraining from bring- ing the Union in. The only threat, if it can be called that, is that the Company would never deduct union dues from employees' checks. This is not a reprisal. I think that this conversation, although ex- hibiting Clay's animus toward unions, is not such that I would find it violated Section 8(a)(1) of the Act. 7. Cherry testified he spoke again with Clay con- cerning the Union during the last week of November at a time when he was discussing with Clay going on the day shift. Clay said that if he wanted the day shift he should have told him so- oner. They started talking about the Union, and Clay said they would never get a contract if they did vote the Union in, and if it was his company and they voted for the Union, he would shut the doors. Cherry asked Clay if he thought the Com- pany was that chicken, and Clay declined to answer. Clay was asked when Cherry requested an assign- ment to the day shift and placed it around October 17, and identified a letter dated October 19 from Cherry's physician concerning such a request. Clay was not thereafter asked by Respondent's counsel about a conversation at the time Clay asked for the change to the day shift, although during cross-ex- amination Clay admitted he discussed the Union with Cherry a couple of times. I believe that Cherry's identification of the con- versation at the time they talked of a change to the day shift, even though the month might be wrong, and Clay admitting they had a conversation about the transfer request, was sufficient to enable Respondent to meet and seek to refute the conver- sation if it desired to do so. I credit Cherry's version of this conversation. Clay's remarks, besides demonstrating extreme animus , indicate that even if employees are success- ful in organizing they will be frustrated since Respondent will never agree to a contract. Clay's remark about closing the plant and declining to answer Cherry's question of Respondent's inten- tions in that direction constituted a thinly veiled threat of Respondent reprisals if the employees' or- ganization attempt proved successful. 2072 DECISIONS OF NATIONAL LABOR RELATIONS BOARD I conclude and find that Respondent, by Clay's statements, violated Section 8(a)(1) of the Act by threatening reprisals if employees selected the union as their bargaining representative in order to impress on them the futility of selecting the Union. 8 Mrs. Sue Ferguson testified that on December 16, she attended one of the series of meetings held by Respondent in mid-December immediately be- fore the election. Division Manager Parker, after declaring that everyone should exercise their right to vote, said Varo had contracts to meet and if a union got in, that before they could get a contract there would have to be a strike, and if there was a strike the Company's contracts would be met. Parker said the strike would be an economic strike, and such a strike was not backed by the Labor Board nor by the Federal Government, and that the Company would bring in others to take the place of those who were on strike. He continued that if the employees were replaced while on strike that would not be a very good reference for them in trying to get another job. Ferguson denied that Parker's re- marks about not getting a contract and striking were expressed as Parker 's opinion. Plant I Production Superintendent David Schu- macker testified he attended some 9 or 10 em- ployee meetings at which Parker spoke and was present at the meeting Ferguson attended and said Parker made no reference to an economic or an un- fair labor practice strike, but said that when and if the Union won the election and when and if the people went on strike to force agreement to a con- tract, he (Parker) would be forced to ask the per- sonnel manager to supply him with people to sup- port the program to meet his contractual obliga- tions with the government. Schumacker said Parker did not read from a text and remembered nothing more of Parker's statements . Schumacker was asked: Q. Did Mr. Parker say whether or not the Union got in at Varo, before they got a con- tract there would have to be a strike? A. He did in this way- Q. Did he say that? A. No, he didn't say that. To other questions Schumacker responded he did not hear Parker mention the Federal Government. Employee Henry Taylor testified that Division Manager Parker spoke at the meeting he attended in December telling the employees about himself as a prisoner of war after being shot down in Ger- many, and then pointing out that the Union couldn't help Varo and he was there to fight it, say- ing that they had contracts to meet and they would meet them regardless of the cost . He said that to get a union and a contract they would have to strike and if there was a strike he would immediate- ly put in a notice for replacement employees, and that if it came to it he could still drive and would drive a truck and make deliveries and if anyone tried to stop him on the picket line he would run them over. Schumacker testified that Parker did not say he would run over pickets. D. L. Donowho stated that in the December meeting he attended Parker related some of his war experiences and said he wanted to stress that once the Union was elected there would be a strike and that he would replace anyone that struck and re- peated this several times during his speech. A question was asked as to whether the Federal Government subsidized the training of some em- ployees and Parker answered that the government did not subsidize the scrap parts which cost large sums of money. Personnel Supervisor Bowers testified he at- tended approximately 13 or 14 of the December meetings , and was present at the one Ferguson at- tended. He heard Parker say that when and if the Union was voted in and when and if the employees went out on strike if a contract could not be de- cided on, that was the day Parker would issue or- ders to have replacements come in and fill the jobs that were affected by the striking employees. Ac- cording to Bowers, Parker said Varo didn't want a strike and would work hard to avoid it, but they would have to meet their contractual obligations and therefore would continue to operate the plant and would find people to turn out products to meet the contracts, and that in his (Parker's) opinion, if the Union was voted in the Company would not be able to meet the Union's demands for a contract and they thought the possibilities for strike were quite high. Bowers stated he did not recall any statement that there would have to be a strike be- fore the employees got a contract, and that he heard nothing regarding strikers getting bad references from Varo, but rather that if the Varo employees were out on strike and applied for a job, the personnel officer at the other company would ask where they worked before and they would say Varo, and if it was anywhere near , he would say isn't Varo on strike and when the employees said yes, that they were coming to work because of the strike, the personnel officer would probably be a little hesitant about hiring them. According to Bowers, nothing was said regarding references from Varo as such. Bowers also testified he was present at the meeting Taylor attended. He stated that in that speech Parker did not say he would run down the pickets, but rather that a rumor was going around that if the Union got in Varo, the truck companies would not cross the picket line, and that if they didn't he (Parker) would go up there and drive the truck in, that he was able to do it. Bowers also testified he was present at the meet- ing Donowho attended and that during the meeting a question was asked of Parker about the Man- power Development and Training Act, and Parker answered that the government did partially fund the training program but didn 't pay for scrap. General Foreman Philip Winfrey testified that he was present at the Plant 2 meeting on December 16 and, in response to a series of leading questions VARO, INC. 2073 from Respondent's counsel, stated that Parker said that if and when the Union got into the Company and if and when the employees went out on strike, then he would send out an order for replacements. Further, Parker said that he could drive a truck through the picket line himself. Winfrey denied that Parker said anything about running over pickets, and denied Parker said he would send for replace- ments the day the Union was voted in. Respondent produced general and some specific denials by various supervisory personnel of state- ments attributed by various General Counsel wit- nesses to Parker, but there was no testimony from Parker and Respondent did not indicate, at any point, why Parker was not called to testify concern- ing his statements. Parker's remarks in these meetings were a part of Respondent 's overall cam- paign to defeat the Union and were not as Respon- dent would like us to believe merely free expres- sions of opinion. Parker was not a minor supervisor casually offering an opinion to an employee, but was the top management- official on the scene, setting forth in conjunction with Respondent's counsel, for all the employees, the precise course which Respondent predicted would occur if the em- ployees chose to accept the Union as a bargaining agent . The people who would guide Respondent in negotiations, presumably those who would be responsible for Respondent's tactics, were here "educating" their employees from their position of superior knowledge as to what the employees could expect if they chose the Union. The overall picture of these meetings must be balanced by the statements of Respondent's attor- neys and the foremen who spoke at the meetings, insofar as the objections in the representation case are concerned. However, it is clear to me that Parker set forth very carefully that if the employees voted in a union, the Company would not accede to union contract requests, the union would be forced to strike, and Respondent was ready and planning for a long strike,by replacing all of the strikers im- mediately. The strikers' problems would be further complicated since when they sought employment elsewhere, after being without work for a long time, other employers would view their applications with a jaundiced eye when they discovered they had lost their prior employment by being replaced while on picket duty. In essence Parker from his position as the responsible management agent told the em- ployees a union could avail them naught for Respondent would continue to exercise its judgment as to what the employees should receive, would not listen to what it termed "unreasonable union demands " and, in search of further benefits than the Company was willing to pay, the em- ployees would have to engage in a long and fruitless strike being replaced in the interim and not being able to get jobs with other employers because they had lost their present employment while engaging in union activities. Where, as here, Respondent pursues a course of treading the precipice between the ground of free speech and the brink of unfair labor practices and seeks the very edge, in order to deeply engrain in its employees its great animus to their union activi- ties, then it must bear the burden of any missteps. It is apparent that all talk of strike emanated from Respondent. There was no showing that strike talk during the early parts of the campaign began with the union adherents, but from the testimony it came from Respondent's supervisors and agents. Respondent's campaign was pitched on this precise point, not by reason of any fear by Respondent of an imminent strike of employees who were well or- ganized, but as a campaign measure to instill fear and inhibit the employees from exercising their rights to organize. Company Attorney Bennett's statement quoted above is an example of the lengths to which Respondent told its employees it was willing to go to forestall their organization, in that it would not take back employees who engaged in an unfair labor practice strike until ordered to do so by the circuit court. This statement coupled with the threat that they would lose their cars or homes in the interim was not intended as a fair responsible statement of applicable law. Rather Respondent's campaign sought to provide the employees with a distorted one-sided view, psychologically phrased and pitched to frighten them away from the Union by painting a picture of loss and doom if they chose a union. I conclude and find that Respondent through Morris Parker violated Section 8(a)(1) by threaten- ing various reprisals including employees not being able to resume their jobs and the prospect of not being able to get other employment if they chose the Union and struck, seeking to impress upon them that their choice of a union was a futile gesture since it could avail them nothing. 9. General Counsel's complaint alleges that Respondent's Counsel John Price violated Section 8(a)(1) by warning employees that selecting the Union would be a futile effort, by threatening plant removal if the employees engaged in a strike, and by threatening to withhold from employees benefits they would otherwise be entitled to if they engaged in a strike. To support the allegations General Counsel offered the testimony of Sue Ferguson, Henry Taylor, and Palmer Colier. According to Ferguson, Attorney Price began the meeting she attended by saying an employee had come to the plant office that morning stating that someone had forged his name on union literature. Ferguson spoke up and said she was present when the eight employees signed that piece of union literature and there were no forgeries. Price replied he did not know about that but could only go by what the man said. Price continued that he was there to concentrate on the 40 percent of the em- ployees who were undecided as to the Union. He said he had witnessed a strike in New Orleans 354-126 O-LT - 73 - pt. 2 - 59 2074 DECISIONS OF NATIONAL LABOR RELATIONS BOARD where a woman who tried to cross the picket line had all her clothes torn off. (The meeting attended by Ferguson was one in which most of the partici- pants were women.) Thereafter Price said that the Union was a business and the representatives were salesmen and the Union did not consist of the peo- ple. He said that the only right the Union had was to talk, and the only right that the people had was to strike, while the Company had the right to say no. Thereafter, Price compared union contracts at other companies seeking to show that the em- ployees had nothing to gain from a union contract. Ferguson asked Price if a written contract was not better than an oral contract and Price replied that a union contract was no better than Varo policy, and he would say no to any union contract. Price spoke of some employees at a company who sought his assistance because they were under a UAW con- tract and wanted to avoid paying an assessment that was being levied against them. He said he read their contract and advised them that under it the assess- ments could be taken out of their salaries. Ferguson remembered Price saying that the IAM was known as the striking union. The meeting she attended lasted 2 hours and 15 minutes and she testified that both Price and Parker said more than she recalled, but she remembered that Price held up a book which he said he wrote, and that it was put out in the plant for anyone who was interested to read. She did not recall that he read from the book. Henry Taylor testified that during the meeting he attended Attorney Price introduced himself saying he was there to represent the Company and asked if Taylor was present. When Taylor identified himself, Price said that according to an article in the local paper he needed some education. Taylor replied that Price's remark was an insult and when Price asked why, Taylor said that before talking about a person in front of a group he should have contacted him. According to Taylor, Price apologized and began setting out various points regarding the Union , discussing the number of employees and the number of union members, giving comparative data on various contracts, and stating that Varo was pay- ing a top wage of $3.77 per hour, but that Price did not reply when asked who was drawing that amount . In discussing the Union, Price said it was a moneymaking business with union representatives as salesmen and that the Union couldn't help them in any way and that Varo could do more for them. Price said that if the Union came in, there would not be any agreement on a contract and the em- ployees would have to strike and immediately the Company would put in notices for replacement of employees. He said that the benefits, such as in- surance , for anyone who walked out would be lost, since the Company couldn't afford to pay it and would not pay it while they were on strike. Price continued that there would not be any job recom- mendations, that their union activity would be a bad reflection on their individual employment abili- ty, and that the Company was going to meet any contracts it had. After talking about strikes Price said that if everyone decided to go to a football game or to get sick or for some other reason they weren 't coming to work, the Company would move to a place where they could get employees in order to meet their contracts. Questions were asked con- cerning strikes and Price said that in an economic strike the employees could be replaced but in an unfair labor practice strike they would have to be rehired. During the meeting Price referred to his book saying it was a guide he prepared for these con- ferences . Price also talked about fines and assess- ments and mentioned some figures . Taylor reported Price said the Company would not agree to a con- tract if they did not have to and that to get a con- tract the employees would have to strike. During cross -examination Taylor said Price told the employees he didn't think the Union would help at Varo and that regarding giving in to the Union the Company would not do so, that they would say no and that if the Union came in there would be no contract, there would have to be a strike and each employee who walked out would be immediately replaced. Palmer Colier testified he attended a meeting at which both Price and Parker spoke and during which he asked if Price said the Company would move the plant. Price answered that if it was neces- sary they would. He asked this question after Price spoke of strikes and said that if the Company could not meet their schedules because of a plague or sickness or everyone became a baseball fan or for some other reason , that they would move the Com- pany to where they could meet their contracts. As noted, Attorney Price did not testify in this proceeding and it was stipulated that if he were called to testify as to any of the allegations in the complaint with reference to him, his testimony would be that he said exactly what applies to that point as stated in Respondent's Exhibit 1. Respond- ent's Exhibit 1 is a 75 page booklet with a number of questions and answers about a number of topics concerning unions , bargaining , strikes, and representation. Respondent's brief claims that under the stipulation pages 10-21 and 67-69 of the booklet would be proper in considering what Price would say he said in regard to the statements at- tributed to him by Henry Taylor. Among the other topics the booklet lists what the Union would cost the employees, breaking it into two sections depending on whether there is a strike or not. If there is no strike the costs, according to the booklet, would include union dues and fees of $75 to $100 a year, the loss of the person's right to speak for himself, emotional upsets due to bitter feelings between employees working under rigid contract provisions, and indirect loss to the em- ployee as a result of reduction in the Company's ef- VARO, INC. ficiency of operation. If there is a strike the losses according to the booklet would be extended by loss of considerable wages while striking, which could lead to loss of articles purchased on credit plus possible loss of the striker's job by being replaced. The subjects are discussed in further depth from pages 26 to 40. On page 41 appears the title "About Gains From Union Representations." The booklet's short answer is that "no one can say because we don't what will happen, but we believe common sense and reason will show that there is not much to gain ." Under economic gains the booklet states that if the Union demanded a wage increase which the Company refused to grant and a 10-week strike followed during which the em- ployees lost $800, and a 5-cent-per-hour wage gain was granted, the employee might make up the $800 loss in 7 to 8 years depending on the amount of overtime he might receive. Under the heading "Possible Gains Other than Economic" the booklet states the employees might or might not get a con- tract and that a contract might not be good for them since it is a rigid instrument and enforcing it could cut both ways, which does away with the recognition of individual characteristics and com- pares unfavorably with the present system of opera- tion where employees are treated as individuals. Listed among the other " gains " is a checkoff provi- sion by which union dues and fees can be deducted from employees' paychecks, which according to the Company, is helpful for union business but does not seem particularly desirable from the employees' standpoint. Thus, the message of this Respondent-adopted booklet is that there are all costs and no gains to be had from having a union , with many grave risks of losing job, home, goods purchased on credit install- ment , etc. The booklet contains some misleading statements such as the individual loses all rights to speak for himself, which statement appears to negate the first proviso of Section 9(a) of the Act. This booklet read as a whole conveys a clear deliberate message that nothing is to be gained from union activities or from bringing a union into a plant, while the employee has much to lose for doing so. Although making a disclaimer, it becomes obvi- ous to the reader of this booklet that it is deliberately calculated to instill a feeling of futility by depicting miniscule gains and awesome losses which it claims would result from employees choosing a union as their bargaining representative. This is not done as a matter of offhand opinion, but as a work with reference to the locale and general type of industry and as here it is a statement of the Company's official position by the Respondent who will have the largest position in making its predic- tions come true. Predictions made as part of the official position 2075 of the Company are not free expressions of opinion but are forecasts by a party in a position to make them reality, and in this situation were propounded by Respondent as having superior knowledge to those ignorant of the facts. Near the end of the booklet five questions are propounded to help the employee decide if he wants a union or not. They are: (1) Do you really want to work for a week or more each year just to give the money to a stranger? (2) Do you actually want to give a complete stranger the exclusive right to speak for you, for a third of your everyday life? (3) Do you want to invite, into your everday life, argument, bitterness, unpleasantness, trou- ble, and even fighting among the people you work with? (4) Do you really want to work where everything about the job revolves around a small book of words which are carefully and closely followed, without regard to you as an individual person? (5) Even if you wouldn't go on strike yourself, do you want to invite the possibility of a strike by some of your fellow workers with all the un- pleasantness and danger to everyone? The situation of the stipulation regarding Price's testimony in addition to the booklet leaves me with the testimony of some of Respondent's supervisors who were present during these meetings who were asked some specific questions as to what was said by Price or whether he said certain things . In some instances the question asked did not relate directly to the testimony elicited by General Counsel. In other cases supervisors were asked for generaliza- tions of the testimony. In some cases Respondent's witnesses professed to recall precisely what was said at one meeting although they had attended up to 14 meetings which during other parts of their testimony they said followed the same format and were nearly identical. It is therefore difficult to credit Respondent's versions of these events, though on certain points I do. Here again Respond- ent sought to tread the edge of that dangerous path between free speech and violations of Section 8(a)(1), and where as here the effort is made against a background of vigorous union animus and individual violations of the Act, I am resolving credibility on the basis of what appears to me to be the best report of what was said in each of the meetings, and if there are doubtful issues they will be resolved against Respondent.' In doing this, I take note that some of the statements contained in Price's booklet are, to say the least, loaded and in 4 See Bush Hog, Inc ., 161 NLRB 1575 2076 DECISIONS OF NATIONAL LABOR RELATIONS BOARD some cases misleading . Respondent placed itself in the position not of the giver of free opinions but of the authoritative source in instructing employees as to the consequences of their actions if they choose a union , so when Respondent states that from its experience and from its knowledge a strike will occur because it will not be able to meet the Union 's demands , it is by its own statement speak- ing from a position of knowledge and is lecturing to employees who know nothing about it. From some of the testimony it appears that some of the topics discussed by Price were not covered by the booklet. Production Supervisor Schumacker stated he was present at the meeting Ferguson attended , and said that Price spoke of a woman coming through a picket line in Mississippi who was disrobed by pickets. Schumacker testified he did not remember whether Price said woman or women. Another in- significant change made by Schumacker in regard to Ferguson 's testimony was that he recalled Price did not refer to auto workers but rather to Bell Helicopter workers, although another Respondent witness stated that Price did refer to the employees who sought his assistance as being members of the UAW who worked for Bell Helicopter during the Ford strike who were concerned with assessments made to help the Ford workers. Personnel Manager Bowers testified he was present at some of the speeches made by Price and said that Price's reference to a woman being disrobed by a picket line was in a strike that oc- curred in Mississippi . He noted the other distinction that the workers who came to see Price concerning his representing them , against an assessment, were UAW members working for Bell Helicopter. In re- gard to the differentiation between an unfair labor practice strike and an economic strike , Bowers who was the personnel manager stated that the explana- tion by Price got a little bit confusing for him. He said Price said nothing about bad references from Varo, but that if the Varo employees were on strike and applied for a job the personnel officers at the other plants would ask where they worked before and when they would say Varo and if it was anywhere near , they would know of it and ask whether they weren 't seeking work because they were on strike and would probably be hesitant about hiring them . Bowers was asked whether in the 13 or 14 meetings he attended the same things were said at all the speeches and replied that it was and that the same procedure was followed and same subjects were covered. Further , according to Bowers, Price said that the employees had a right to strike and if the Union came in the Company would bargain in good faith but if demands were made that could not be met there would be a strike . The Company had a right to make a profit and to continue and, if the de- mands were so that the Company could not func- tion profitably , the Company would have to say no but would still continue to function . To a series of leading questions , Bowers said that Price did not say that they would have to have a strike. General Foreman Winfrey, to some leading questions , responded that Price said if the Union won there would probably be demands made which the Company could not meet and they would go on strike . As an example Winfrey was asked: Q. Did Mr. Price make any reference to a contract if the Union won the election? A. No sir . Well, he said if the Union won there would probably be demands made of the Company which they could not meet and they would go on strike. Q. Tell me whether or not Mr . Price said if the Union did come in there would not be an agreement on a contract and there would have to be a strike? A. No sir. The wording here is rather close and there are fine verbal distinctions being drawn concerning state- ments made at one meeting in a series of meetings to a number of employees where the Respondent had the obvious intention of discouraging union ac- tivity. Any ambiguity here was sought by the Respond- ent to discourage employees and in such circum- stances credibility should be resolved against it. In reference to a meeting in which Attorney Bennett spoke, Winfrey in confirmation of Dono- who's report stated: He (Bennett ) said if the Union was voted in and won the election there would probably be demands made the Company could not meet, and the employees would have to exercise their rights and strike . Also he said the Company had the right in good economical judgment to say "No " and also "Hell no." As to complaint paragraphs 9(i) and (k), I find that Respondent by its Attorney John Price in violation of Section 8(a)( I) of the Act warned the employees that if they selected the Union , it would be a futile effort on their part and further he threatened that the plant would be removed if the employees engaged in a strike and the employer were unable to secure replacements. A campaign of similar nature was indulged in by Respondent's counsel in a case entitled Hawthorne Aviation , 161 NLRB 1326. Respondent's campaign was pitched basically along the line that if the employees exercised their legitimate right to organize, that they and manage- ment would then be on a collision course resulting in no contract for the employees, no gains for them, and a strike during which they would be replaced and would lose their jobs and possessions . The em- ployees were also assured ' that they could be replaced easily and permanently . Thus , the tenor of the whole campaign was not a mere explanation of what conceivable outcomes could be , but rather a prediction that there could be no other conceivable VARO, INC. outcome than that if the employees organized they would lose most seriously and would probably lose their jobs . Where one of the moving parties to such an eventuality makes this as a flat prediction, it becomes more than an expression of opinion. It becomes a prediction as to how management will react to effect these consequences when it is set forth by Respondent 's management and counsel. See Independent, Inc., d/b/a The Daily Advertiser, 165 NLRB 405. III. THE OBJECTIONS TO THE ELECTION The petitioner 's first two objections are as fol- lows:, 1. The Employer, by its agents and employees, called its employees in groups of 10 to 15 to the of- fice on several occasions just prior to the date of the election . During these meetings the employees were threatened with loss of jobs, wages, and benefits if the Union won the election. 2. The Employer, by its agents and employees, discouraged union activities by enforcing a "no-sol- icitation" rule. Though the 20 or so meetings were not held in Respondent 's office , they were held in places away from the employees ' normal work areas. In the sec- tions above I have found that the Employer called these lengthy meetings which were planned by its counsel and in them coerced the employees in that it laid out for them that their activities in attempt- ing to organize a union were futile , and could only lead to a strike if they were successful in organizing the Union, which would in turn mean loss of their jobs with a consequent loss of goods they were acquiring by credit and loss of their insurance since the Company would not carry it during the strike. I have further found that the course of these meetings in the context of the surrounding viola- tions including the promulgation of an illegal no- solicitation rule violated Section 8 ( a)(1) of the Act. Respondent urges in its brief that the employees, if they misunderstood what was said in the meetings , should have read the booklets which were made available to them so that they could more clearly understand what Respondent was telling them . Certainly the employees were under no duty to do so. The booklet, although in its latter part declaiming that it did not say that organization by the employees was futile , expressly does so in all of its various sections up to that point , in that it sets forth numerous and grievous losses which em- ployees will likely sustain if they organize a union, and depicts no substantial or legitimate gain that could ever come from union organization. The booklet , sometimes in technical language , has but S No evidence was adduced as to Objections 3 and 4 and so they are not considered herein e It would seem that if it were shown that this booklet were distributed to 2077 one purpose and this is to discourage union activi- ties. But the disclaimer toward its end cannot serve to wipe out the patently clear message made up to that point. The Board has always endeavored to provide a free choice for the employees in deciding whether or not they wish to have a union as their collective- bargaining representative . This booklet which was put out by management as their policy in regard to unions goes a long way to remove the air of freedom the Board wishes to nourish . Certainly here where it was placed in the hands of the em- ployees together with the several statements of su- pervisors and the remarks of Bennett , Price, and Parker in the meetings and against the background of the Company 's restrictive illegal policies, there is no question but that the employees were denied a legitimate opportunity to freely choose between having a union organization or not. Here it was made perfectly clear to them that they could only lose if they sought to and did organize.6 I therefore find that objections 1 and 2 have been proven and recommend that the election which was held on December 18 be set aside and that a new election be held at such time as the effects of the unfair labor practices found herein are dissipated to the extent that a free and fair election may be held. IV. THE EFFECTS OF THE UNFAIR LABOR PRACTICES UPON COMMERCE The activities of the Respondent set forth in sec- tion II, above , occurring in connection with the Respondent 's operations described in section I, above , have a close , intimate , and substantial rela- tionship 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 engaged in the unfair labor practices as set forth above , I recom- mend that it cease and desist therefrom and take certain affirmative action designed to effectuate the policies of the Act as follows: I have found that Respondent discriminatorily transferred Robert Cherry from his position as an inspector -trainee back to his former position as en- gine lathe operator on September 11, 1967, because of his union sympathies , activities, and desires. I therefore recommend that Respondent place him again in the position of an inspector- trainee and give him a fair opportunity to become an inspector , and that Respondent make him whole for any loss of pay he may have suffered by reason all the employees as Respondent 's official position , the message of this booklet would be sufficient in itself to prevent the holding of a free and fair election 2078 DECISIONS OF NATIONAL LABOR RELATIONS BOARD of his not becoming an inspector in the course of his normal promotion to such duties 1 month after beginning his original training in September 1967, since there is uncontradicted testimony that all in- spector -trainees up until that time had become in- spectors . Such increase in pay is to be computed on a quarterly basis in the manner established by the Board in F . W. Woolworth Company, 90 NLRB 289, with interest at the rate of 6 percent per annum to be computed in the manner set forth in Isis Plumb- ing & Heating Co., 138 NLRB 716. 1 further recom- mend that Respondent make available to the Board , on request , payroll and other records in order to facilitate the checking of the amount of backpay due Robert Cherry. Respondent has also interfered with its em- ployees ' rights by maintaining and publishing a dis- criminatory written no -solicitation rule and a dis- criminatory oral no -solicitation rule. I therefore recommend that Respondent cease and desist from discriminatorily promulgating or enforcing its writ- ten and oral no-solicitation rules. Further , Respond- ent has threatened its employees with discharge for violating its discriminatory rules, threatened its employees with reprisals if a union were selected to impress upon them the futility of selecting a union, promised its employees economic benefits if they refrained from becoming union members or giving support to it, warned its employees that selecting the Union would be a futile effort , and threatened that the plant would be removed if the employees engaged in a strike and the employer were unable to secure replacements because of such strike. Due to the violation as to Robert Cherry , and the violations of Section 8(a)(1) noted above and to the manner of Respondent 's vehement campaign against the Union and its animus towards the Union and because the rights of Respondent 's employees have been seriously invaded by Respondent's ac- tions , I am of the opinion that the danger exists Respondent will commit further unfair labor prac- tices , having shown by these violations their proclivities for violating the Act . I therefore recom- mend that Respondent be placed under a broad en- joiner to cease and desist from in any other manner infringing on the rights guaranteed its employees by the Act. On the basis of the foregoing findings and the en- tire record , I make the following: CONCLUSIONS OF LAW 1. Varo, Inc., is an employer engaged in com- merce within the meaning of Section 2(6) and (7) of the Act. 2. The Union is a labor organization within the meaning of Section 2 (5) of the Act. 3. By discriminatorily transferring Robert Cherry on September 11, 1967, and not thereafter having reinstated him to his position as an inspector- trainee because of his union activities and desires, Respondent engaged in and is engaging in unfair labor practices affecting commerce within the meaning of Section 8 ( a)(3) and ( 1) and Section 2(6) and (7) of the Act. 4. Respondent has engaged in and is engaging in unfair labor practices affecting commerce within the meaning of Sections 8(a)(1) and 2 (6) and (7) of the Act by. (a) Publishing and promulgating an illegal no- solicitation rule in its booklet "You and Varo." (b) Promulgating an illegal oral no-solicitation rule by various of its supervisors. (c) Enforcing the written and oral no-solicitation rules against employees. (d) Threatening its employees with reprisals if they selected a union as their collective -bargaining representative in order to impress upon them the futility of selecting a union. (e) Promising its employees economic benefits if they refrained from becoming or remaining mem- bers of the Union or giving it assistance. (f) Warning its employees that selecting the Union would be a futile effort. (g) Threatening its employees with removal of the plant if they should engage in a strike and the Employer be unable to secure replacements for them during the strike. [Recommended Order omitted from publica- tion.] Copy with citationCopy as parenthetical citation