Ventre Packing Co., Inc.Download PDFNational Labor Relations Board - Board DecisionsMar 22, 1967163 N.L.R.B. 540 (N.L.R.B. 1967) Copy Citation 540 DECISIONS OF NATIONAL LABOR RELATIONS BOARD (c) Picketing or causing to be picketed, or threatening to picket or to cause to be picketed, Ershowsky Provision Co., Inc., for any of the aforementioned objects, where within the preceding 12 months a valid election under Section 9(c) of the Act has been conducted among the said employees and has not been won by Respondent. 2. Take the following affirmative action which is necessary to effectuate the policies of the Act: (a) Post in conspicuous places in Respondent Union's business offices, meeting halls , and all places where notices to its members are customarily posted , copies of the attached notice marked "Appendix A." 17 Copies of said notice, to be furnished by the Regional Director for Region 2, after being duly signed by official representatives of Respondent, shall be posted by Respondent immediately upon receipt thereof, and be maintained by it for 60 consecutive days thereafter. Reasonable steps shall be taken by Respondent to insure that said notices are not altered , defaced, or covered by any other material. (b) Furnish to the Regional Director for Region 2 signed copies of the aforementioned notice for posting by the Company , it willing , in places where notices to employees are customarily posted . Copies of said notice, to be furnished by the said Regional Director , shall, after being signed by Respondent , as indicated , be forthwith returned to the Regional Director for disposition by him. (c) Notify the Regional Director, in writing, within 20 days from the date of this Decision, what steps Respondent has taken to comply herewith."' 'v 'In the event that this Recommended Order is adopted by the Board , the words "a Decision and Order" shall be substituted for the words "the Recommended Order of a Trial Examiner" in the notice. In the further event that the Board's Order is enforced by a decree of a United States Court of Appeals, the words "a Decree of the United States Court of Appeals Enforcing an Order" shall be substituted for the words "a Decision and Order." 1" In the event that this Recommended Order is adopted by the Board , this provision shall be modified to read: "Notify said Regional Director , in writing , within 10 days from the date of this Order, what steps Respondent has taken to comply herewith." APPENDIX NOTICE TO ALL MEMBERS OF PROVISION SALESMEN AND DISTRIBUTORS UNION, LOCAL 627, AMALGAMATED MEAT CUTTERS AND BUTCHER WORKMEN OF NORTH AMERICA, AFL-CIO Pursuant to the Recommended Order of a Trial Examiner of the of National Labor Relations Board, and in order to effectuate the policies of the National Labor Relations Act, as amended , we hereby notify you that: WE WILL NOT picket, cause to be picketed, or threaten to picket or to cause to be picketed, Ershowsky Provision Co., Inc., an object being to force or require the Company to recognize or bargain with us as the representative of its employees or to force or require said employees to accept or select us as their collective -bargaining representative , and will abstain thereafter from picketing for such objects for a period of 12 months from September 1, 1966. WE WILL NOT picket, cause to be picketed, or threaten to picket or to cause to be picketed, Ershowsky Provision Co., Inc., for any of the aforementioned objects, while the Company is lawfully recognizing in accordance with the Act any other labor organization and a question concerning representation of the Company's employees may not appropriately be raised under Section 9(c) of the Act. WE WILL NOT picket, cause to be picketed, or threaten to picket or to cause to be picketed, Ershowsky Provision Co., Inc., for any of the afore- mentioned objects, where within the preceding 12 months a valid election which we did not win has been conducted under Section 9(c) of the Act. PROVISION SALESMEN AND DISTRIBUTORS UNION, LOCAL 627, AMALGAMATED MEAT CUTTERS AND BUTCHER WORKMEN OF NORTH AMERICA, AFL-CIO (Labor Organization) Dated By (Representative ) (Title) This notice must remain posted for 60 consecutive days from the date of posting, and must not be altered, defaced, or covered by any other material. If members have any question concerning this notice or compliance with its provisions, they may communicate directly with the Board's Regional Office, Fifth Floor, Squibb Building, 745 Fifth Avenue, New York, New York 10022, Telephone PL-1-5500, Extension 852. Ventre Packing Co ., Inc. and Truck Drivers & Helpers Local 317 , International Brotherhood of Teamsters , Chauffeurs, Warehousmen and Helpers of America. Case 3-CA-2918. March 22,1967 DECISION AND ORDER BY CHAIRMAN MCCULLOCH AND MEMBERS FANNING AND BROWN On November 17, 1966, Trial Examiner Arthur E. Reyman issued his Decision in the above-entitled proceeding, finding that the Respondent has 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. Thereafter, the Respondent filed exceptions to the Decision together with a supporting statement. Pursuant to the provisions of Section 3(b) of the National Labor Relations Act, as amended, the National Labor Relations Board has delegated its powers in connection with this case to a three- member panel. The Board has reviewed the rulings made by the Trial Examiner 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 supporting statement, and the entire record in the case, and hereby adopts the findings, conclusions, and 163 NLRB No. 47 VENTRE PACKING CO., INC. 541 recommendations of the Trial Examiner, as modified herein: 1. The Trial Examiner found, and we agree, that the Respondent violated Section 8(a)(1) of the Act (1) by Plant Manager Thomas Houmiel's coercive interrogation of employees concerning their union membership activities and desires;' (2) by Houmiel's warning and threatening employees that they would be discharged if they became involved with a labor organization or gave assistance or support to it; and (3) by granting to its employees a wage increase to induce them to refrain from becoming or remaining members of Teamster Local 317. 2. The complaint alleged, and the Trial Examiner found, that by discharging eight employees between April8 and 11, 1966, because they had joined or assisted the Union, the Respondent violated Section 8(a)(3) of the Act. While we agree that the Respondent violated the Act by terminating these employees, we so find for the following reasons only: The Respondent's hostility to the union organization is clearly manifested by its widespread unlawful interrogation of employees2 and other unfair labor practices. In addition the Trial Examiner credited testimony by employees McGregor and Black to the effect that on April 11 and 12 Houmiel had told them, respectively, that "you know I laid off them people because of the Union," and that "he had to fire them [employees] so they can't vote for the Union." The Respondent's knowledge as to which of its employees had engaged in union activity appears from the record. The circumstance that between March 30 and April 11, 1966, the Respondent interrogated only employees who had signed union authorization cards on March 30 seems more than a mere coincidence, particularly in view of the fact that the Respondent's total complement consists of only about 30 to 35 employees. It is well settled that the small size of an employer's plant affords a basis for inferring employer knowledge of the union activity of his employees.3 In view of the foregoing, and Houmiel's statements to Black and McGregor set forth above, there is ample reason to infer that the Respondent had acquired knowledge as to which of its employees had been engaging in union activity. Between April 8 and 11, eight employees were discharged. Significantly, it was on April 8 that the Respondent was formally notified of the Union's claim to be the collective-bargaining representative. Almost immediately thereafter Monsour and Buchanan, who were originally placed on temporary layoff status, were permanently discharged, and six other known union adherents were also terminated. Finally, and perhaps most important, is the fact that the eight persons discharged were all known union sympathizers. While it is theoretically possible that the Respondent could have fortuitously selected for termination only those employees active in the Union, commonsense and the laws of mathematical probability indicate that this was highly unlikely.4 The Respondent contends that it did not discharge employees because of any union activities, but that because of a decline in business, a contraction of the work force was required.5 However, even assuming that the Respondent's economic condition required that it reduce its employee complement,6 we are convinced that the Respondent selected the particular employees for termination because of their adherence to the Union. The Respondent asserts that the reason these particular employees were discharged was that it was trying to allow the employees with the greatest seniority to continue work. The record shows, however, that in several instances more recently hired employees were retained while employees with greater seniority were released. The Respondent also asserts that these junior employees were retained because their jobs could not be done by the employees with greater seniority. There is nothing in the record but this bare assertion to show that this is true. In light of all the circumstances set forth above, we find that the Respondent's explanation, as to why these particular employees were selected for discharge, is unpersuasive. Where, as here, there is evidence of such great mathematical improbability in the selection of employees for discharge, of employer hostility designed to frustrate union organization, and of discharges timed immediately upon the Respondent's receipt of the Union's request for collective-bargaining discussions, the circumstances require the conclusion that Respondent acted from discriminatory motive, rather than economic ' It is clear that , under the circumstances herein, the interrogations of employees Monsour, Rosenberger, Smorol, Black, McGregor, Cappello, O'Dell, and Cotton were unlawful 2 In this connection we note that after interrogating certain of the employees about their union activity, and although receiving responses denying participation in organizational activities, Houmiel discharged these employees He apparently did not believe their disavowals, for the record reveals that when he received an answer denying union activity, Houmiel placed a question mark next to the name of the individual on an employee list on his desk s See, e g , Quest-Shon Mark Brassiere Co , Inc , 80 NLRB 1149, enfd 185 F 2d 285 (C A 2), cert denied 342 U S 812, and Stokely Foods, Inc , 91 NLRB 1267, enfd 193 F 2d 736 (C A 5) " Syracuse Tank & Manufacturing Company, Inc, 133 NLRB 513 See also Uspensky, Introduction to Mathematical Probability (McGraw-Hill, 1937), Chapter 1, cited in Syracuse Tank & Manufacturing Company, Inc, 133 NLRB at 525, Heinrich Motors, Inc , 153 NLRB 1575, 1580 Employees Monsour and Smith were discharged allegedly for unsatisfactory work and the remaining six were discharged allegedly for business reasons Smith was never warned that his throwing spaghetti at other people in the plant , which Plant Manager Houmiel later characterized as "goofing around," was creating a disturbance or might lead to his discharge In this connection , we note that Houmiel himself had engaged in the very conduct for which he discharged Smith. 6 The Trial Examiner rejected this contention and found no economic justification for the cutback although the uncontradicted testimony indicates that Respondent 's business declined in the second quarter of 1966 and the dischargees were not replaced 542 DECISIONS OF NATIONAL LABOR RELATIONS BOARD necessity . Camco, Incorporated, 140 NLRB 361, 363, 365, enfd . in relevant part 340 F . 2d 803 (C.A. 5). Accordingly , we find that the Respondent discriminated in the selection of employees to be discharged , thereby violating Section 8 (a)(3) of the Act. THE REMEDY Having found that the Respondent has engaged in certain unfair labor practices, we shall order it to cease and desist therefrom , and to take certain affirmative action in order to effectuate the policies of the Act. We have found that the Respondent discriminatorily selected eight employees for termination in April 1966. However, as noted above, it appears from the record that the Respondent may have been economically justified in terminating some of its employees during April. While it is possible that some of the discriminatorily terminated employees might have been affected by such nondiscriminatory reduction of personnel, the record furnishes no basis for determining the order in which they might have been terminated. Under these circumstances, we shall order the Respondent to offer, to the hereinafter named employees who were unlawfully terminated in April and who have not been recalled for employment, immediate and full reinstatement to their former or substantially equivalent positions, without prejudice to their seniority and other rights and privileges, and, in the event that there is insufficient work for all such employees, to dismiss , if necessary , all persons who were newly hired after the discriminatory terminations in April . If there is not then sufficient work for the remaining employees and those to be offered reinstatement , all available positions shall be distributed among them without discrimination against any employee because of union activities, in accordance with a system of seniority or other nondiscriminatory basis. The Respondent shall place those employees, if any, for whom no employment is available after such distribution, on a preferential list, with priority in accordance with a system of seniority or other nondiscriminatory basis, and thereafter offer them reinstatement as such employment becomes available and before other persons are hired for such work: George Monsour Charles Hildreth Frank Smith Maxine Buchanan Georgianna Rosenberger Elizabeth Smorol Estella Black Shirley McGregor We shall also order the Respondent to make whole the above -named employees , against whom it has discriminated, for any losses they may have suffered because of the Respondent's discrimination, by payment to each of them of a sum of money equal to the amount that he normally would have earned as wages from the date of such discrimination to the date of the offer of reinstatement, or placement on a preferential list, as the case may be, less his net earnings during said period, the backpay to be computed on a quarterly basis in the manner established by the Board in F. W. Woolworth Company, 90 NLRB 289, 291-294, and shall include the payment of interest at the rate of 6 percent per annum to be computed in the manner set forth in Isis Plumbing & Heating Co., 138 NLRB 716. As it is possible, however, that one or more of these employees might have been laid off or discharged in a reduction of the work force even if the Respondent had selected employees for discharge on a nondiscriminatory basis, this possibility will be taken into consideration in determining the amounts of backpay due to these employees in compliance with our Order herein. In view of the nature of the unfair labor practices committed, the commission by the Respondent of similar and other unfair labor practices may be anticipated. We shall therefore order that the Respondent cease and desist from infringing in any manner upon the rights guaranteed in Section 7 of the Act. ORDER Pursuant to Section 10(c) of the National Labor Relations Act, as amended, the National Labor Relations Board adopts the recommendations of the Trial Examiner, and hereby orders that the Respondent, Ventre Packing Co., Inc., Syracuse, New York, its officers, agents, successors, and assigns, shall take the following action: 1. Cease and desist from: (a) Interrogating its employees concerning their membership in or activities on behalf of the Union, or making threats of reprisal or promises of benefits because of such activity. (b) Discouraging membership in the Union, or in any other labor organization of its employees, by discharging , laying off , or otherwise discriminating against them in regard to their hire and tenure of employment or any term or condition of employment. (c) Discriminatorily selecting employees to be discharged, in violation of Section 8(a)(3) of the Act. (d) In any other manner interfering with, restraining , or coercing its employees in the exercise of their right to self -organization, to form labor organizations, to join or assist the above-named labor organization , or any other labor organization, to bargain collectively through representatives of their own choosing, and to engage in other concerted activities for the purpose of collective bargaining or other mutual aid or protection, and to refrain from any or all such activities. VENTRE PACKING CO., INC. 2. Take the following affirmative action which it is found will effectuate the policies of the Act: (a) Offer George Monsour, Charles Hildreth, Frank Smith, Maxine Buchanan, Georgianna Rosenberger, Elizabeth Smorol, Estella Black, and Shirley McGregor immediate and full reinstatement to their former or substantially equivalent positions, without prejudice to their seniority or other rights and privileges, and make them whole in the manner set forth in the section of this Decision entitled "The Remedy." (b) Notify each of the above-named employees, if presently serving in the Armed Forces of the United States, of his or her right to full reinstatement, upon application, in accordance with the Selective Service Act and the Universal Military Training and Service Act, as amended, after discharge from the Armed Forces. (c) Preserve and, upon request, make available to the Board or its agents, for examination and copying, all records necessary for determination of the amount of backpay due under the Board's Order. (d) Post at its principal office and place of business and plant at 373 Spencer Street, Syracuse, New York, copies of the attached notice marked "Appendix A."7 Copies of said notice, to be furnished by the Regional Director for Region 3, after being duly signed by the Respondent or its authorized representative, shall be posted by Respondent immediately upon receipt thereof, and be maintained 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 Respondent to insure that said notices are not altered, defaced, or covered by any other material. (e) Mail a copy of the aforesaid notice to each of Respondent's employees at the time copies of said notice are posted at the Respondent's plant. (f) Convene during working time all its employees, at which time a responsible official of the Respondent shall read to said employees the contents of the notice, with written notice to the Regional Director at least 48 hours in advance of the time set for the reading of the notice. (g) Upon request of the Union, made within 1 month of the date of this Decision, immediately grant the Union and its representatives reasonable access for a 3-month period to its bulletin boards and all places where notices to employees are customarily posted. (h) Notify the Regional Director for Region 3, in writing, within 10 days of the date of this Decision, what steps have been taken to comply herewith. 7 In the event that this Order is enforced by a decree of a United States Court of Appeals, the words "a Decision and Order" shall be substituted for the words "a Decree of the United States Court of Appeals Enforcing an Order " APPENDIX A NOTICE TO ALL EMPLOYEES 543 Pursuant to a Decision and Order of the National Labor Relations Board, and in order to effectuate the policies of the National Labor Relations Act, as amended, we hereby notify our employees that: WE WILL NOT discourage membership in Truck Drivers & Helpers Local 317, International Brotherhood of Teamsters, Chauffeurs, Warehousemen and Helpers of America, or any other labor organization of our employees, by discriminating in regard to their hire or tenure of employment or any other term or condition of employment. WE WILL NOT interrogate our employees concerning their membership in or activities on behalf of the above Union or make threats of reprisal or promises of benefits because of such activity. WE WILL NOT discriminatorily select employees to be discharged. WE WILL NOT in any other manner interfere with, restrain, or coerce our employees in the exercise of their right to self-organization, to join or assist the above Union or any other labor organization, to bargain collectively through representatives of their own choosing, to engage in concerted activities for the purposes of collective bargaining or mutual aid or protection, and to refrain from any or all such activities. WE WILL offer George Monsour, Charles Hildreth, Frank Smith, Maxine Buchanan, Georgianna Rosenberger, Elizabeth Smorol, Estella Black, and Shirley McGregor immediate and full reinstatement to their former or substantially equivalent positions, without prejudice to their seniority or other rights or privileges. WE WILL make whole the above-named employees, against whom we have discriminated, for any loss they may have suffered because of our discrimination, by payment to each of them of a sum of money equal to the amount that he normally would have earned as wages from the date of such discrimination to the date of the offer of reinstatement, or placement on a preferential list, as the case may be, less his net earnings during said period, with interest thereon at 6 percent per annum. WE WILL, upon request from the Union, permit reasonable access for a 3 -month period 544 DECISIONS OF NATIONAL LABOR RELATIONS BOARD to our bulletin boards and all places where notices to employees are customarily posted. VENTRE PACKING CO., INC. (Employer) Dated By (Representative ) (Title) Note: We will notify the above-named employees, if presently serving in the Armed Forces of the United States of their right to full reinstatement upon application in accordance with the Selective Service Act and the Universal Military Training and Service Act, as amended, after discharge from the Armed Forces. This notice must remain posted for 60 consecutive 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, Fourth Floor, The 120 Building, 120 Delaware Avenue, Buffalo, New York 14202, Telephone 842-3100. TRIAL EXAMINER'S DECISION STATEMENT OF THE CASE ARTHUR E. REYMAN, Trial Examiner: Truck Drivers & Helpers Local 317, International Brotherhood of Teamsters, Chauffeurs, Warehousemen and Helpers of America, herein sometimes called Local 317 or the Union, on May 4, 1966, filed a charge against Ventre Packing Co., Inc., herein sometimes called the Company or the Respondent, as a basis therefor alleging that the Company has engaged in and is engaging in certain unfair labor practices affecting commerce as set forth and defined in the National Labor Relations Act, as amended, 29 U.S.C. Sec. 151, et seq., herein called the Act. On the basis of the charge so filed, the General Counsel of the National Labor Relations Board, on behalf of the Board, by the Regional Director for Region 3, pursuant to Section 10(b) of the Act and the Board's Rules and Regulations, Series 8, as amended, Section 102.15, issued a complaint and notice of hearing against the Respondent, the complaint alleging that the Company had engaged in and was engaging in unfair labor practices affecting commerce within the meaning of Section 8(a)(5), (1), and (3) of the Act.' The ' The relevant provisions of the National Labor Relations Act, as amended (61 Stat 136, 73 Stat 519, 29 U S C Sec 151, et seq ), are as follows RIGHTS OF EMPLOYEES Sec 7 Employees shall have the right to self-organization, to form , join, or assist labor organizations , to bargain collectively through representatives of their own choosing, and to engage in other concerted activities for the purpose of collective bargaining or other mutual aid or protection, and shall also have the right to refrain from any or all of such activities except to the extent that such right may be affected by an agreement requiring membership in a labor organization as a condition of employment as authorized in section 8(a)(3) Respondent filed timely answer to the complaint, effectively denying that it had engaged in or was engaging in the unfair labor practices as set forth in the complaint. Certain affirmative defenses were set up in the answer. Pursuant to notice, this case was heard before me at Syracuse, New York, on July 21, 1966, and was closed on the following day.2 At the hearing each party was represented by counsel and was afforded opportunity to call, examine, and cross-examine witnesses, introduce evidence relevant to the issues, present oral argument, file proposed findings of fact and conclusions or both, and submit briefs. A short memorandum waa submitted on behalf of the General Counsel and another on behalf of the Respondent. Upon the whole record of the case, and from my observation of the witnesses, I make the following: FINDINGS OF FACT 1. THE BUSINESS OF RESPONDENT, VENTRE PACKING CO., INC. The Respondent is, and has been at all times material herein, a corporation duly organized under, and existing by virtue of, the laws of the State of New York. During such times, Respondent has maintained its principal office and place of business at 373 Spencer Street, in the city of Syracuse, State of New York, and is and has been at all such times engaged at its plant at said location in the manufacture, packaging, sale, and distribution of Italian specialty food products and related products. During the 12-month period immediately preceding the issuance of the complaint herein, the Respondent, in the course and conduct of its business operations, purchased, transferred, and delivered to its said plant food products and other goods and materials valued in excess of $50,000, which goods and materials were transported to said plant directly from States of the United States other than the State of New York. The Respondent is, and has been at all times material herein, an employer engaged in commerce within the meaning of Section 2(6) and (7) of the Act. II. THE LABOR ORGANIZATION INVOLVED Teamsters Local 317 is, and has been at all times material herein , a labor organization within the meaning of Section 2(5) of the Act. III. THE UNFAIR LABOR PRACTICES The complaint alleges, and the answer denies, that the Respondent laid off one employee on April 6 and three employees on April? and discharged them on the UNFAIR LABOR PRACTICES Sec 8 (a) It shall be an unfair labor practice for an employer- (1) to interfere with, restrain, or coerce employees in the exercise of the rights guaranteed in section 7, (3) by discrimination in regard to hire or tenure of employment or any term or condition of employment to encourage or discourage membership in any labor organization I Unless otherwise specifically noted, all dates hereinafter mentioned are for the year 1966 VENTRE PACKING CO., INC. 545 following day, April 8. The complaint alleges that two other employees were discharged on April 8 and two others on April 11. As to each of these employees, the complaint alleges further that since the dates of layoffs and discharges, the Respondent has failed and refused, and continues to fail and refuse, to reinstate these employees to their former or substantially equivalent positions of employment, and that such discharges were and are in violation of Section 8(a)(1) and (3) of the Act. The complaint alleges that the Respondent, by Plant Superintendent Thomas Houmiel, coercively interrogated its employees concerning their union membership, activities, and desires on March 30 and April 8; that Houmiel, on April 8 and three other stated dates and places, warned and threatened employees that they would be discharged if they did not refrain from becoming or remaining members of a labor organization or giving assistance or support to it; and further, that on April 1 the Respondent granted to its employees at the plant wage increases to induce them to refrain from becoming or remaining members of Local 317, or from giving any assistance or support to it.3 The affirmative defenses set up by the Respondent are, in substance, that these employees were discharged for various reasons, including misconduct; a complete shutdown of one production line; and, further, that due to a drop of $100,000 in volume of sales between the first quarter of 1966 and the second quarter of 1966 the Company has been unable to hire any new employee or reinstate any discharged employee. General Background By letter dated April 8, 1966, directed to John Ventre, Sr. (now deceased), handed to Kathleen Zimmerman, a secretarial employee, Paul L. Gambacorto, as secretary- treasurer of Local 317, informed the Company that Local 317 represented the majority of employees in a unit of drivers, warehousemen, and production employees; requested that the Company meet and bargain immediately for a contract covering the employees; requested that the Company notify him when company representatives would be available; and, finally, offered "to satisfy you concerning our majority standing by an independent card check by a mutually agreed upon disinterested person." On the same day Paul C. DeBernardis, as attorney for John Ventre, Sr., personally and as president and sole stockholder of Ventre Packing Co., Inc., replied by letter to Gambacorto advising, among other things, that Ventre was then in Europe, was not expected to return to the United States until early in May 1966, and that he had notified a field examiner for the Buffalo Regional Office of the Board of these facts. He stated that any requests similar to those contained in Gambacorto's letter addressed to Ventre would have to await final decision and action by the latter on his return from Europe. 3 The complaint sets forth that the Respondent on and after April 8 refused to bargain collectively with the duly designated representative of employees of the Respondent in an appropriate unit, in violation of Section 8(a)(5) of the Act On the first day of the hearing herein, counsel for the General Counsel advised me that on the basis of facts determined after the issuance of the complaint, Local 317 on April 8 had been able to obtain only 12 authorization cards out of a total complement of 23 employees in the claimed unit and that , therefore, solely for the reason that the Union had not established that it did represent a majority of the employees on the crucial date, moved to withdraw the On May 4, Local 317 filed and docketed with the Regional Director for Region 3 a petition for certification as representative of the Employer in a claimed appropriate bargaining unit, not disputed by the Employer. Case 3-RC-3906. On that day, the Union filed with the Regional Director 10 signed forms of application for membership in and authorization to the Union to act as their collective-bargaining agent.4 The eight employees named in the complaint alleged to have been laid off or discharged on named dates are as follows: George Monsour signed an authorization card on March 31, was laid off on April 6, and discharged on April 8; Charles Hildreth signed an authorization card on March 30, was laid off on April 7, and discharged on April 8; Frank Smith signed an authorization card on March 31, was laid off on April 7, and discharged on April 8; Maxine Buchanan signed an authorization card on March 30, was laid off on April 7, and discharged on April 8; Georgianna Rosenberger signed an authorization card on March 31, and was discharged on April 8; Elizabeth Smorol signed an authorization card on March 30, and was discharged on April 8; Estella Black signed an authorization card on March 30, and was discharged on April 11; and Shirley McGregor signed an authorization card on March 30, and was discharged on April 11. There is in evidence (G.C. Exh. 2) a list of the names of employees of the Company in the appropriate bargaining unit on April 8. By stipulation of counsel at the hearing it is shown there were 23 persons in the unit as of that date, including each of the eight employees named above. John Ventre, Jr., now president and sole owner and stockholder of the Company, testified that on April 7 he had occasion to leave Syracuse to travel to New York City, stating that he was away from his Syracuse office from April 3, was at the plant on April 7 and again departed that day, returning to Syracuse on or about April 26. Apparently between April 3 and 7 he was taking care of other business interests in New York City and in New Jersey at Little Ferry, near the Newark Airport. Although his testimony is not precisely clear, I would find that on the basis of his testimony he left Syracuse on April 3, returned on April 6, left Syracuse on April 7, and was in Europe until his return to Syracuse on April 26. He said that he spent about a half hour at the Syracuse plant on April?-this in answer to a question put to him by company counsel. According to the testimony of Thomas Houmiel, plant superintendent, Ventre traveled to New York and to New Jersey on April 3, returned to Syracuse on April 7, and conferred with him, Houmiel, about 20 minutes in the morning in Ventre's office. Houmiel said: We talked about business. He said that if our business didn't come through from these outlying districts that we were expecting that I would have to shut down. Houmiel said that this did not mean shutting down the plant but the shutting down of one of two production lines. allegations of the complaint alleging violations of Section 8(a)(5) The motion for leave to withdraw the 8(a)(5) allegations (refusal to bargain) set forth in the complaint was granted Consequently, that issue is not contained within this case There is, however, left standing the question of whether or not the layoffs and discharges above mentioned were discriminatory and in violation of Section 8(a)(3) and (1) of the Act * Although the authorization card filled in by employee Angie Cappello was not signed by her, it affirmatively appears from her testimony that she did fill out this particular card 546 DECISIONS OF NATIONAL LABOR RELATIONS BOARD He further testified that except for this 20-minute conversation he did not see Ventre again until the latter's return from Europe "the last of the month." According to Houmiel he examined the morning mail delivered on April 8 hoping to find orders from Pittsburgh, Ohio, New York City, and New Jersey. He said he found no orders as hoped for nor were there any orders from any other source. He thereupon decided to shut down one production line. On direct examination, he testified that he was questioned by some employees at the morning coffeebreak concerning a rumor they had heard that the Company might shut down if business did not come in and he told them, "I will see you later in the day and let you know." As to those employees he did call to his office, he said on direct examination: Q. [By Mr. DeBernardis] I see. And these that you called in you did let them know that you were going to let them go because there was no business? A. Right. Q. You never told them that you were going to let them go because of union activity? A. No, sir. Q. With the exception of those that you let go for misconduct, or for whose work was unsatisfactory, all other discharged employees were let go because of lack of production on one line? A. Correct. Q. Several of these employees that you did not let go walked out in sympathy with the strike? A. That is correct. He was asked by counsel for the Respondent whether he ever at any time during the entire year of 1966 or before, with respect to any of the employees of Ventre Packing Company, attempted to coerce or intimidate or in any fashion tell them that if they joined the Union he would fire them, to which he replied, "No." His testimony was to the effect that he decided to shut down one of the two production lines on Friday, April 8, and actually did shut down one line on Monday, April 11. In substance, his testimony was to the effect, further, that within his absolute discretion he closed down one production line and because there was no established seniority system plantwise or otherwise in effect he used his judgment and kept employees with more or with less seniority at work as he saw fit. At this time, he said, the plant was working on an order involving about 4,000 cases of product but that that was close to being filled. The Layoffs and the Discharges George Monsour: According to the recollection of this employee, he was hired by the Company on or about March 4 although it is hinted but not proved that company records indicate that he was hired on or about March 17. The date of hire is not important. He testified that he was hired by Plant Superintendent Houmiel who at that time told him it was year-round work, that there would be no layoffs, and that the Company was contemplating putting on a night crew. He was first assigned to work as a cook and after 4 or 5 days was transferred to the warehouse and put to labeling jars. Subsequently, he was transferred from this job and assigned to stacking cases. On or about March 23 he sustained an injury to his foot occasioned by a tow car running over his toe, and was incapacitated for a period of approximately 9 days until April 1. He was laid off on April 6 and was discharged on April 8. He said that on March 30 he was in the cafeteria and while there Houmiel asked him if he had heard anything about a union. He replied that he had not, that Houmiel' s mention of it was the first time he had heard about it, whereupon Houmiel told him "that at one time people tried to get a Union in here, but that it didn't work and that even Mr. Ventre-him and Mr. Ventre did not want a Union in this place and if he found out that I had anything to do with the Union coming in there, it could mean my job." Monsour testified further that at or about 4:30 p.m. Houmiel called him into the office, and told him that he was laying him off because they were "going on short production"; that he called Houmiel a liar and told him "that this is the reason he is laying off, that it was because they had been told the people wanted a Union and that this was the second time he had made an accusation like that. So-and when I asked him who else he was laying off, he told me that it was none of my business." April 6 fell on a Wednesday; Monsour said that Houmiel told him then to come down Friday for his pay and not to come into the plant until after 3 o'clock. On that day, according to Monsour, he was at work labeling jars and about 10:30 that morning he observed President Ventre and his son, together with Houmiel, standing in a group. He said that he reported to the plant on Friday, April 8, for his pay at or about 3:10 p.m., that he asked Houmiel for his pay, and that employees Maxine Buchanan, Charles Hildreth, and Frank Smith were present; that after these employees had received their checks and walked out, then we went back in for our layoff slips. And Mr. Houmiel, when I went in and asked him for mine he told me that they had changed their minds; I wasn 't laid off: I was fired: And the reason for being fired was, when I asked him, "was my work unsatisfactory." He heard Houmiel tell Maxine Buchanan that her work was unsatisfactory, and that when Frank Smith asked why he was being discharged, Houmiel told him that it was because he was "goofing around, goofing on the job." On April 6, after work and when Maxine Buchanan, Frank Smith, and he had left the plant proper and were waiting for Hildreth to call a cab, Monsour testified that they observed President Ventre going up the stairs, supposedly to his office. Counsel for the Respondent was unable to establish on cross-examination that the injury to Monsour's foot was caused by his negligence and that he was not required in the course of his duties to use the electric forklift; Monsour on his part testified that Houmiel had asked him to move a skid of sauce and to use the forklift, which he did, backing the machine into the board skid, when it went over his foot, fracturing his right toe. Nor was it established on cross-examination that Monsour was simply "fooling around" with an empty truck. Frank Smith- Houmiel hired this employee and assigned him to cooking on or about March 11. According to his testimony, he was at work in the plant on April 7 when he was informed by Houmiel that "he was going to have to lay me off because they were running short on production for a couple of weeks." He was told by Houmiel to pick up his pay on the coming Friday after 3 o'clock. He said that shortly after 3 p.m. on April 8, he was handed his paycheck in the presence of Maxine Buchanan , George Monsour, and Charles Hildreth. The group started walking out toward the warehouse and then returned to ask Houmiel for their layoff slips; that when Monsour asked 'for his, Houmiel said that Monsour was not laid off, he was fired because his work was unsatisfactory. Smith then VENTRE PACKING CO., INC. 547 asked Houmiel for his layoff slip and Houmiel replied, "You're fired too," and when Smith asked him the reason why Houmiel replied, "F')r goofing off on the job." The group then left the plant building and saw President Ventre walking up the stairs to his office at the front entrance of the plant. Smith, like Monsour, was closely questioned as to whether he could not be mistaken about seeing Ventre at the plant on April 8 if it could be shown that Ventre was in London, England, on that day. Smith was sure that he did see Ventre at the plant at the time stated. In connection with his discharge and the reason therefor, Smith denied ever bringing firecrackers into the plant , admitted he had "picked up macaroni and thrown it at the girls" three or four times on different occasions, was never reprimanded by Houmiel, and on redirect examination said that other employees on occasion threw macaroni or spaghetti. Maxine Buchanan: Employed about the middle of November 1965, this employee worked for the Company until she was laid off on April 7 and discharged on April 8. She testified that on April 7 about 5 p.m. Houmiel informed her that he would have to lay her off because the Company was cutting down on production and said, "you're to give me a call in about 3 weeks." She requested her layoff slip and Houmiel told her that he would give it to her when she came in to pick up her pay on the following day, Friday. She said that she did return on Friday, April8, about 3:10 p.m., called at Houmiel's office, received her pay, spoke to some of her coworkers in the cafeteria for about 2 minutes, returned to the area where Houmiel's office is located, encountered Monsour who suggested that she accompany him to ask Houmiel why she had been laid off, and that she did, first asking Houmiel for her layoff slip, whereupon he told her that she was not laid off but that she was fired. At the suggestion of Monsour, she asked Houmiel the reason for her discharge and he told her that her work was not satisfactory. She corroborated the fact that after she left the plant building in the company of Monsour, Smith, and Hildreth, Ventre was observed "going up the stairs to his office." Shortly thereafter, she entered the plant looking for Hildreth, found him in Houmiel's office, and overheard Hildreth tell Houmiel, "Tom, you're kidding. The reason you laid me off was not because my work was unsatisfactory." Georgianna Rosenberger: Rosenberger worked for the Company during part of the year 1958 and later returned to its employ in the latter part of July or the first part of August 1965. She testified that on Friday, April 8, at Houmiel's request, she stopped by his office about noon. While in his office, according to her, he told her that he had to ask her a question and had to know "if you are on my side or if you're for the union." She replied that she had never worked where there had been a union, knew nothing about it, and would like to hear both sides; that he replied, "Well, I'll have to put a question mark behind your name." She said that Houmiel had a list of names on a sheet before him and that her name was on the bottom of the list. She testified further that about 4:30 p.m. she stopped by for her pay, and Houmiel handed her her check and said, "Jo, I have to let you go." Upon her request for a reason for her discharge, and after remarking that she had not told him that she was going to join the Union, he replied, "Well, you have got us in doubt." He instructed her to clean out her locker; she did go back in to get her clothes from the locker and when she came back Houmiel told her, "But when this thing blows over, Jo, call me and I will hire you." She testified that after retrieving her clothes from the ladies' locker room she saw Ventre in the kitchen before an open refrigerator. Elizabeth Smorol • Plant Superintendent Houmiel hired Smorol on October 28, 1965, and she worked continuously until April 8. On April 8, she testified, Houmiel requested her to call his office; that she went there and Houmiel then inquired of her concerning the Union: Tom asked me how I felt about a union. And I told him I didn't know what a union was , what they did in a union. And he said, well, he says, "haven't you heard the whispering about a union? " And I up and told him-I told him, "Tom, if they whisper, I do not hear them. If they do it during their lunch hour, I'm not even here on their lunch hour to know what they are talking about. I go out for lunch every day, and I don't come back until almost one." I told him I'd have to think about it. And he told me, "Go on back to work." She said that Houmiel had a piece of white paper containing a list of names and that she saw him make "some mark after my name." She explained that she had been deaf in one ear since she was 18 months old as a result of an attack of measles and chicken pox, which accounted for her telling Houmiel that if the employees had whispered she could not have heard them. She testified that when she received her pay at 5 p.m., Houmiel, when he handed her her check, said he would have to let her go; she asked him "was it concerning my work?"; and he replied no, that he thought she was a very good worker, but there was not enough work and he had to let her go. Estella Black- Black first started work for the Company on January 29, 1965, and worked until she was discharged on April 11. She testified that on April 8, Houmiel called her into his office and told her that he was sorry but he had to let her go remarking, "I am sorry this all had to happen." She then left the office. On the preceding Friday, April 8, she testified that about 8 a.m. Houmiel had called her into his office and asked her if she knew anything about the Union; that she said she did not; and that he said he hoped she would vote no, "so he wrote `No' after my name." She testified that on Saturday, April 9, she cleaned up his office and on that day, in the cafeteria, she asked Houmiel where all the girls were and why they did not come back; that he replied "there was a little clause there; he had to fire them so they can't vote for the Union." She testified further that on the morning of April 11 she saw Ventre near the stockroom door. On that day after 5 p.m., her quitting time, Houmiel called her into his office and told her he was sorry but he had to let her go and that he was sorry this all had to happen. At the beginning of her testimony on direct examination , and her subsequent answers, it was clearly apparent that Black was at first confused concerning the dates of the conversation she had with Houmiel the first time she met with him at his request in his office. However, later direct and more precisely on cross-examination , the times and places of these conversations were clearly fixed. Shirley McGregor: Plant Superintendent Houmiel hired McGregor on or about August 28, 1965, and she continued in the employ of the Company until April 11. During the time of her employment she was assigned to various jobs, first pasting boxes, then on a machine dumping bottles and putting them through a conveyor, and occasionally working on the packing line packing jars of spaghetti sauce. She testified that about 8:10 a.m. on April 8 while she was at work at her machine, Houmiel called her into his office and that during the course of the conversation 295-269 0-69-36 548 DECISIONS OF NATIONAL LABOR RELATIONS BOARD Hounuel questioned her concerning her knowledge of a union. She testified: He said, "Shirley, you know anything of a union?" I told him I did not know. He said, "Shirley, you mean to tell me you haven't heard anything of the union?" I told him, "I don't know." Then I said, "Well, there has been talk going around, Tom, of a union, but I don't know nothing." He then said, "Well, Shirley, you know I laid off them people there because of the union " I turned around, and he said-and he said, "You mean you haven't heard anything of a union?" And I told him, "I don't know." He then put a question mark after my name and said, "Shirley, I'll put a question mark after your name because you don't know." She said that he did then put a question mark after her name on a piece of paper before him on his desk. She testified further that on April 11, about 4:55 p.m., Houmiel informed her that he was going to have to let her go, giving no reason for her discharge. She said that on that day, April 11, she, during her lunch hour, walked down to the union hall in company with Estella Black and during the walk between the plant and the union hall observed John Ventre, III, the son of the president of the Company, in the company of Mason, a supervisor, driving slowly by. On cross-examination McGregor said that she and Black spent their lunch hour together, part of which was at the union hall, that she had eaten her lunch in Dee's Diner, the purpose being to talk to Tony Cimilluca, a union representative She said that they were in the union hall just long enough to inquire for Cimilluca and to be told he was at the diner. She said that she, together with other employees who had been discharged, discussed the situation with Cimilluca, the business agent for the Union. Her testimony substantially corroborated that of Estella Black in connection with their noon hour activities-that they called at the union hall and they talked to Cimilluca. Interrogation and Threats of Discharge Angie Cappello, employed by the Company since about the year 1958 was working for the Company on April 8 Although not too clear as to the particular date on which it occurred, she testified concerning a conversation with Houmiel in his office, where she had called at his request, about 9:15 or 9.30 a.m., at which time, she testified, Houmiel asked her if she knew if anybody was starting a union , to which she replied, "I don't know anything about it, Tom." Although not sure of the precise date, Cappello did remember that the conversation occurred some 2 or 3 weeks prior to the day on which pickets appeared in front of the Company's premises, which the record discloses occurred on April 13 Notwithstanding Cappello admitted failure to remember exact dates, I consider her to be a credible witness and accept her testimony concerning the conversation reported by her in which Houmtel made the statement he is said to have made at the time. Phyllis O'Dell was an employee of the Company on April 8 until April 13, when she voluntarily left her job to join the picket line. She testified that on April 8, about I1 a.m , Houmiel called her into his office and asked her if she would vote for the Union, to which she replied she did 5 Cotten also testified thai he observed President Ventre in the warehouse on April 8 at a time when he was talking to Charles Hildreth and that Monsour walked up and said, "You're still an employee You'd better get back to work, because Mr Ventre is down there " He placed the time as being sometime during the morning of that day He said that at the time he saw Ventre he was not know; that Houmiel then said in substance that the Union would not be able to obtain benefits "or anything like that, they wouldn't do anything for you"; that Houmiel again asked her if she would vote for the Union and she again replied she did not know. She observed that he wrote the word "No" opposite her name on a slip of paper before him on his desk. On cross- examination she iterated that she did not quit-"I just walked out on to the picket line." Richard Cotten, employed either in late August or the beginning of September 1965, was at work on April 8, his job being in the room where the production lines were located. About 4 p.m., Houmiel called him into his office, he said, and asked him if anybody had approached him and talked to him concerning a union. Cotten told him no. He testified further: Well, he [Houmiel] explained to me that the Union couldn't benefit us because in the end we'd be making less money after we got through paying our union dues and fees. And he said Mr. Ventre didn't want the Union in there and the people didn't want a union because they had one-they had had a vote before-and he asked me would I vote for the Union. And I told him no. And he said, "Fine. That's what I wanted to know." Something like that-and he told me he was trying to find out who was on his side. Cotten said that Houmiel wrote "No" opposite his name on a sheet of paper held by Houmiel. Cotten recalled that Houmiel "said something about he thought to get rid of some main ones starting the Union or trying to start a union , something like that. I don't know the exact words."5 Cotten first observed pickets outside the plant on April 13, at which time he walked off his job and joined the picket line. John W. Gleason, who started work for the Company in February 1966, worked until April 12. He testified to a conversation with Houmiel on April 12 in the backroom of the packing plant at the machine where he was working. He said that Houmiel asked him how he was doing, to which, he said, he replied, "at the present time I am doing all right, I said, but where is the help?" Cotten said that Houmiel replied that "he had to leave them go because they were all getting messed up with the Union." He instructed Gleason to "take it easy and do the best you can." Gleason testified that on Monday, April 11, while he was at work, he saw Supervisor Sully Mason and Ventre: They have a mechanic there, Sully-I don't know his last name-and he met Mr. Ventre right in front of my machine. And Mr. Ventre said he was going to New York And Sully asked him if he was going with him. And Mr. Ventre says, No. So they have some more conversation, which I did not overhear, and Mr. Ventre turned around and went back the way he come from, towards his office; and Sully walked over to my machine. He said that on the morning of April 13 he had an appointment which took him away from the plant; that when he went to work there that morning there was picketing in front of the plant and that he did not return to work because he would not cross the picket line. On cross- examination Gleason said that he had never "signed up for the union," had never been approached to sign up for the Union or asked to sign an application for membership in talking to Mason , a supervisor , that Ventre walked into the room and passed him and he, Cotten, got up to leave He said that before he left he heard Ventre ask Mason something about New York "And he handed him-put two tickets of some kind on a table, a work bench, and then talked a little while and then left " VENTRE PACKING CO., INC. Local 317, had never had any conversation with anyone inside the plant concerning the Union or conversations outside the plant , had never expressed himself to any of his fellow employees concerning the Union 's activity, had never observed any employee of the Company fill out an application for membership in the Union , and specifically denied that either Hildreth or Monsour had approached him, or that he had ever been threatened by Houmiel that if he joined the Union he would be fired. He is not a member of the Union. It is clearly apparent that he had a complete lack of interest in union activities and left his job simply because he refused to cross the picket line. The Wage Increases The complaint alleges that the Respondent granted to its employees at the plant wage increases on April 1, 1966, to induce them to refrain from becoming or remaining members of Local 317 or for giving any assistance or support to it. That these wage increases were made, to become effective as of April 1, is a fact not in dispute. There is in evidence by agreement of counsel an exhibit (G.C. Exh. 9), a list showing the names of the employees who received such wage increases, to be effective as of April 1. Included are the names of Charles Hildreth, Elizabeth Smorol, Estella Black, Maxine Buchanan, and Shirley McGregor, out of a total of 11 hourly rated employees. The names of four salaried employees also appear on this list. The Respondent offered no evidence as to its reason of the granting of these wage increases; whether they were merit increases , increases made because of past custom or usage of the Company, or for any other reason. Coming at the time it did, this action of the Company raises a strong presumption, within the circumstances of this case, that the increases could have been given to induce the employees to refrain from becoming or remaining members of the Union. The Respondent's Affirmative Economic Defense The lack of expected orders said to have caused the shutdown of one production line has been discussed above. In addition, as an economic defense, the Respondent claims that due to a drop of $100,000 in sales between the first quarter of 1966 and the second quarter of 1966, the Company has been unable to hire any new employees or reinstate any discharged employees.' Other than the testimony of Houmiel to support this assertion, no evidence was produced by way of company records or any corroborative testimony to show this defense to be grounded on fact. We have only the statement of Houmiel in support of this affirmative defense as set out in the answer to the complaint. In the memorandum submitted on behalf of the Respondent after the hearing, it is contended that there is no controversy as to the fact of the decrease in sales of Respondent's business in the first quarter of 1966 in the amount of $100,000; and that this, together with the testimony of Houmiel with regard to the lack of orders in the first week of April, certainly afforded the Respondent just cause for the discharge of certain employees on April 8. The burden of proof in respect to decrease of business certainly falls on the Respondent and not on the General Counsel. The Respondent has failed to carry the 549 burden of proof in this respect. The failure of a litigant to adduce evidence particularly within its possession warrants the inference that such evidence, if adduced, would not have been favorable. Interstate Ctrcutt v. U.S., 306 U.S. 208; N.L.R.B. v. Conlon Bros. Mfg. Co., 187 F.2d 329 (C.A. 7); N.L.R.B. v. A.P.W. Products Co., 316 F.2d 899 (C.A. 2). The effort of counsel for the Respondent at the hearing to break down the credibility of most of the employee witnesses called by the General Counsel failed even though, in certain instances, there are inconsistencies in testimony. Generally speaking, I consider that many of the answers elicited from witnesses on cross-examination strengthen their testimony rather than weaken it, in that such inconsistencies were minor and trivial and can easily be understood. The witnesses obviously had not been coached but were testifying from their own independent recollection of the events which transpired. Further than this, the argument of Respondent 's counsel at the hearing that because some employees had told Houmiel they had not signed union authorization cards, when in fact they had signed them , is an indication that their testimony was not reliable, works against the Respondent. The interrogation of employees by Houmiel was per se unlawful, and the Board has long held, in cases too numerous to be cited, that a respondent employer may not take advantage of untruthful answers given by the employee when unlawfully interrogated concerning union activity or interest. Houmiel , the plant superintendent and the main and only witness called by the Respondent at the hearing, was content only to categorically deny that he had interrogated any employee concerning his or her membership in or activities on behalf of the Union and that he had discharged any employee by reason of his or her union sympathies or activities. He did not deny that he had spoken to individual employees according to the testimony given by them as to the several conversations between them and him. Considering the demeanor of the witnesses, together with the timing of the occurrences complained of against the Respondent, I have no reason to doubt the credibility of any of the 10 employee witnesses called to testify by the General Counsel. It is clearly apparent that on April 8 the Respondent had full knowledge of the Union' s claim and interest, as evidenced by the letter of its attorney to the Union. I credit the testimony of Monsour, not specifically denied, that Houmiel questioned him on March 30. The Respondent at no time accepted the offer of the Union in its letter of April 8 to agree to a card check being made to determine the union claim of a majority in the claimed bargaining unit . There is strong evidence contained within the record to show that President Ventre was in and around the plant on April 8, the day the secretary-treasurer of Local 317 delivered his letter to the Company and the day on which the Company's attorney replied to that letter. Parenthetically, it may be noted that the Respondent failed to offer anything other than oral testimony to show that Ventre actually was not at the plant on April 7 and 8. The time pattern of events indicates that almost immediately upon gaining knowledge of the interest of some employees in the Union, the Employer laid off Monsour on April 6 and Hildreth, Smith , and Buchanan on April 7, and discharged these four employees together with four others on April 8. On March 30, Monsour was 6 The Respondent concedes that no laid-off or discharged employee has been requested to return to work since the strike began on April 13 550 DECISIONS OF NATIONAL LABOR RELATIONS BOARD questioned by Houmiel concerning union activities; and Rosenberger , Smorol , Black, McGregor , Cappello, and Cotten were questioned on April 8. In summary , I discount the economic defense set up by the Respondent for lack of sufficient proof of company instability and the failure of the Respondent to present the best evidence of its claim of inability to continue the employees at work because of lack of orders and loss of business . In regard to the questions of crediblity raised by the Respondent , I have endeavored to reconcile what I consider insubstantial conflicting evidence and to draw such inferences as the evidence reasonably supports. N.L.R.B . v. Universal Camera Corporation , 179 F.2d 749, 754 (C.A. 2), vacated and remanded 340 U.S. 474; N.L.R.B. v. West Point Mfg. Co. (Lanett Mill), 245 F.2d 783, 785 (C.A. 5); N.L.R.B. v. United Brotherhood of Carpenters and Joiners of America, Local 517, AFL (Gil Wyner Construction Co.), 230 F . 2d 256, 259 (C.A. 1). The discharges of the employees , coming when they did, presumptively would discourage membership in or activities on behalf of the Union . For the purposes of Section 8(a)(3) of the Act, the law is settled that conduct carries its own indicia of unlawful intent where the "natural consequence" of the employer ' s action is a discouragement (or encouragement ) of union membership. The Radio Officers' Union of the Commercial Telegraphers Union, AFL (A.H. Bull Steamship Company) v. N.L.R.B., 347 U.S. 17, 45; Local 357, International Brotherhood of Teamsters , etc. (Los Angeles -Seattle Motor Express) v. N.L.R.B., 365 U.S. 667, 675; N.L.R.B. v. Erie Resistor Corp., et al., 373 U.S. 221, 228. I find that the discharge of Monsour was motivated by his activity on behalf of the Union . An employer violates Section 8 (a)(3) and (1) of the Act by discharging an employee to discourage union membership and activity even though there may also exist valid reasons for discharge . N.L.R.B. v. Mid- West Towel and Linen Service, Inc., 339 F.2d 958 (C.A. 7); N.L.R.B. v. Symons Manufacturing Co., 328 F.2d 835 (C.A. 7); N.L.R.B. v. The Howe Scale Company, 311 F.2d 502 (C.A. 7). It further is found that the Respondent violated Section 8(a)(1) through Houmiel by coercively interrogating employees concerning their union membership and activities , and by threatening reprisals for such activities in violation of Section 8(a)(1) of the Act. N.L.R.B. v. Exchange Parts Company , 375 U.S. 405. It further is found that the Respondent violated Section 8 (a)(1) of the Act by granting wage incieases at the time it did for the purpose of discouraging membership in the Union . The Radio Officers' Union v. N.L. R.B., supra; N.L.R.B. v. Exchange Parts Company , supra ; N.L.R.B. v Hoffman-Taff, Inc., 276 F.2d 193, 198 (C.A. 8); N.L.R.B. v. Crown Can Company, 138 F.2d 263, 267 (C.A. 8), cert. denied 321 U.S. 769. Returning to the question of whether the Respondent was justified in the discharges of six of the eight employees , it is possible that it could be argued on behalf of the Respondent that the evidence adduced by it in this respect is uncontradicted. Such an argument in this case would be specious . In Bon Hennings Logging Cc. v. N.L.R.B. , 308 F.2d 548 , 554 (C.A. 9), the court wrote in part: . the Supreme Court in [N.L.R.B. v. Walton Manufacturing Company, et al., 369 U.S. 404] has laid to rest , quite properly , any contention that the uncontradicted evidence of an employer as to his motive for a certain course of action must be accepted by the Board . No one but the employer or his confidants are ordinarily in a position to give direct evidence of his motive , and, to understate the case, it is unlikely that unfavorable evidence would be forthcoming . Much so-called "uncontradicted" evidence is subject to conflicting inferences which may result from the evidence itself or the attendant circumstances . The duty to choose between such inferences and to assess weight in credibility is vested in the trial examiner , not the reviewing court. The Board may properly consider the context of surrounding circumstances in interpreting the effect of an employer's acts or words . N.L.R.B. v. Kropp Forge Co., 178 F.2d 822 (C.A. 7), cert. denied 340 U.S. 810; Revere Camera Co. v. N.L.R.B., 304 F.2d 162 (C.A. 7). The preponderance of the evidence herein proves that the Respondent has engaged in and is engaging in unfair labor practices within the meaning of Section 8(a)(1) and (3) of the Act. Concluding Findings It is found that the Respondent by coercively interrogating its employees at its plant concerning their union membership, activities, and desires, by warning and threatening employees that they would be discharged if they did not refrain from becoming or remaining members of a labor organization or giving any assistance for support to it, and by granting to its employees wage increases on April 1, 1966, to induce them to refrain from becoming or remaining members of Local 317, or from giving any assistance or support to it, has engaged in unfair labor practices within the meaning of Section 8(a)(1) of the Act. By laying off George Monsour, Charles Hildreth, Frank Smith, and Maxine Buchanan and by discharging these named employees and Georgianna Rosenberger, Elizabeth Smorol, Estella Black, and Shirley McGregor, the Respondent has engaged in unfair labor practices within the meaning of Section 8(a)(3) and (1) of the Act. These unfair labor practices constitute unfair labor practices affecting commerce within the meaning of Section 8(a)(1) and (3) and Section 2(6) and (7) of the Act. IV. THE EFFECT OF THE UNFAIR LABOR PRACTICES UPON COMMERCE The activities of the Respondent set forth in section III, above, occurring in connection with the Respondent's operations described in section I, above, have a close, intimate, and substantial relationship 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 the Respondent has engaged in certain unfair labor practices, it will be recommended that it cease and desist therefrom, and that it take certain affirmative action designed to effectuate the policies of the Act. It has been found that the Respondent laid off George Monsour on April 6, 1966, and Charles Hildreth, Frank Smith, and Maxine Buchanan on April 7, 1966, and discharged these four employees, together with Georgianna Rosenberger and Elizabeth Smorol on April 8, and Estella Black and Shirley McGregor on April 11, 1966. Accordingly, it will be recommended that the Respondent offer George Monsour, Charles Hildreth, Frank Smith, Maxine Buchanan, Georgianna Rosenberger, Elizabeth Smorol, Estella Black, and Shirley McGregor immediate and full reinstatement to their former or substantially AMERICAN RIVER CONSTRUCTORS equivalent positions, without prejudice to their seniority or other rights or privileges, and make them whole for any loss of pay suffered by reason of the discrimination by payment to each of them of a sum of money equal to that which he or she would have earned as wages from the date of the discrimination to the date of the reinstatement, less his or her net earnings during such period in accordance with the formula prescribed in F. W. Woolworth Company, 90 NLRB 289, together with interest on such sum, such interest to be computed in accordance with the formula prescribed by the Board in Isis Plumbing & Heating Co., 138 NLRB 716. Upon the basis of the foregoing findings of fact and upon the entire record in this case, I make the folllowing: CONCLUSIONS OF LAW 1. Ventre Packing Co., Inc., is, and has been at all times material herein, an employer engaged in commerce within the meaning of Section 2(6) and (7) of the Act. 2. Truck Drivers & Helpers Local 317, International Brotherhood of Teamsters, Chauffeurs, Warehousemen and Helpers of America is, and has been at all times material herein, a labor organization within the meaning of Section 2(5) of the Act. 3. By laying off and discharging George Monsour, Charles Hildreth, Frank Smith, and Maxine Buchanan and by discharging them and Georgianna Rosenberger, Elizabeth Smorol, Estella Black, and Shirley McGregor, the Respondent has engaged in unfair labor practices within the meaning of Section 8(a)(3) and (1) of the Act. 4. By granting to its employees increases in wages on April 1, 1966, the Respondent engaged in an unfair labor practice within the meaning of Section 8(a)(1) of the Act. 5. The Respondent, since the dates of the layoffs and discharges described in section III, above, by failing and refusing and continuing to fail and refuse to reinstate said employees to their former or substantially equivalent position of employment, has engaged in and is engaging in unfair labor practices within the meaning of Section 8(a)(1) of the Act. 6. The aforesaid unfair labor practices are unfair labor practices affecting commerce within the meaning of Section 2(6) and (7) of the Act. [Recommended Order omitted from publication.] American River Constructors and K.W. Sherrod . Case 20-CA-3795. March 22,1967 DECISION AND ORDER BY CHAIRMAN MCCULLOCH AND MEMBERS BROWN AND ZAGORIA On August 26, 1966, Trial Examiner James R. Webster issued his Decision in the above-entitled proceeding, finding that the Respondent had not engaged in unfair labor practices as alleged in the complaint, and recommending that the complaint be dismissed in its entirety, as set forth in the attached Trial Examiner's Decision. Thereafter, the General Counsel filed exceptions to the Trial Examiner's Decision and a supporting brief. The Respondent 163 NLRB No. 67 551 filed an answering brief to the General Counsel's exceptions to the Trial Examiner's Decision. Pursuant to the provisions of Section 3(b) of the National Labor Relations Act, as amended, the National 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 briefs, and the entire record in this case, and finds merit in the General Counsel's exceptions. Accordingly, the Board adopts the findings of the Trial Examiner only to the extent that they are consistent with the decision herein. The complaint alleges that the Respondent violated Section 8(a)(3) and (1) of the Act by refusing to employ K.W. Sherrod on August 25, 1965, because he had engaged in union and other protected activities. As described more fully in the Trial Examiner's Decision, Sherrod, in June 1964, was working as a driver at the Respondent's French Meadows jobsite. At all relevant times Respondent, through a chapter of Associated General Contractors, and Local 150, International Brotherhood of Teamsters, Chauffeurs, Warehousemen and Helpers of America, hereinafter referred to as the Union, were parties to a collective-bargaining agreement covering Respondent's employees in the area involved in this case. As a result of protests from a number of its drivers, Respondent on June 17 appointed Sherrod as working foreman. The drivers, however, felt that a nonworking foreman would be preferable and, at a union meeting on July 14, Union Steward McAdams proposed that employees refuse to work until a nonworking foreman was appointed. Sherrod then addressed the drivers, reminding them of the no-strike clause in the agreement and suggesting that there would be less "trouble" if they offered to quit if their demands were not met. The drivers accepted Sherrod's advice and they approached the Respondent's Superintendent Jiles. Acting as the drivers' spokesman, Sherrod explained to Jiles the nature of their complaint; he threatened that the drivers would quit unless they received orders only from their own foreman in the future. Jiles agreed that from then on only he or their foreman would give them orders, and the drivers returned to work. On July 25, the Respondent demoted Sherrod from his position as working foreman and transferred him from French Meadows to Oxbow, a less desirable site. Sherrod continued to work for Respondent at various jobsites between July and December 22, at which time he was laid off because of lack of work. Early in January 1965, Respondent sent Sherrod a termination slip, indicating for the Copy with citationCopy as parenthetical citation