Victor Ryckebosch, Inc.Download PDFNational Labor Relations Board - Board DecisionsMar 18, 1971189 N.L.R.B. 40 (N.L.R.B. 1971) Copy Citation 40 DECISIONS OF NATIONAL LABOR RELATIONS BOARD Victor Ryckebosch , Inc. and General Teamsters, Chauffeurs , Warehousemen & Helpers Local Un- ion 982 , International Brotherhood of Teamsters, Chauffeurs, Warehousemen & Helpers of America. Case 31-CA-1594 March 18, 1971 DECISION AND ORDER BY MEMBERS FANNING, JENKINS, AND KENNEDY On September 21, 1970, Trial Examiner Herman Corenman issued his Decision in the above-entitled proceeding, finding that Respondent had engaged 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, Respondent filed exceptions to the Trial Examiner's Decision and a supporting brief, and the General Counsel filed a limited exception. 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, the brief, and the entire record in the case, and hereby adopts the findings, conclusions, and recommendations of the Trial Examiner, as modified below. ORDER Pursuant to Section 10(c) of the National Labor Relations Act, as amended, the National Labor Relations Board adopts as its Order the Recommend- ed Order of the Trial Examiner as modified below and hereby orders that the Respondent, Victor Rycke- bosch, Inc., Lancaster, California, its officers, agents, successors, and assigns, shall take the action set forth in the Trial Examiner's Recommended Order, as so modified: 1. Insert the following as paragraph 1(c): "(c) In any like or related manner interfering with, restraining, or coercing its employees in the exercise of any rights guaranteed to them by Section 7 of the Act." 2. In paragraph 2(d), substitute "on forms provid- ed" for "to be furnished." 3. In footnote 16 of the Trial Examiner's Decision substitute "20" for "10" days. 4. Substitute the attached Appendix for the Trial Examiner's Appendix B. APPENDIX NOTICE TO EMPLOYEES POSTED BY ORDER OF THE NATIONAL LABOR RELATIONS BOARD An Agency of the United States Government WE WILL bargain collectively upon request with General Teamsters, Chauffeurs, Warehousemen & Helpers Local Union 982, International Brother- hood of Teamsters, Chauffeurs, Warehousemen & Helpers of America, as the exclusive representa- tive of our coop truckdrivers with respect to rates of pay, wages, hours of employment, and other conditions of employment, and, if an understand- ing is reached, embody such understanding in a signed agreement. WE WILL NOT unilaterally, and without consul- tation and bargaining with the aforesaid Union, change wage rates, wages, hours, and other working conditions. WE WILL NOT in any like or related manner interfere with, restrain, or coerce any of our employees in the exercise of any rights guaranteed to them by Section 7 of the Act. WE WILL make whole employees who have been deprived of benefits by unilateral changes effected by us since May 31, 1969. VICTOR RYCKEBOSCH, INC. (Employer) Dated By (Representative) (Title) This is an official notice and must not be defaced by anyone 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. Any questions concerning this notice or compliance with its provisions may be directed to the Board's Office, Federal Building, Room 12100, 11000 Wil- shire Boulevard, Los Angeles, California 90024, Telephone 213-824-7351. TRIAL EXAMINER'S DECISION STATEMENT OF THE CASE HERMAN CORENMAN, Trial Examiner . This case was heard on May 26, 27, and 28 and June 1 , 2, and 3, 1970, before the duly designated Trial Examiner, upon a 189 NLRB No. 8 VICTOR RYCKEBOSCH, INC. complaint of the General Counsel of the National Labor Relations Board, herein called the Board, and answer of Victor Ryckebosch, Inc., herein called Respondent. The issues litigated were whether the Respondent violated Section 8(a)(1) and (5) of the National Labor Relations Act, as amended, herein called the Act.' Upon the entire record,2 including consideration of briefs filed by the General Counsel and Respondent, and upon my observation of the witnesses, I make the following: FINDINGS OF FACT 1. THE BUSINESS OF RESPONDENT The pleadings establish, and I find, that Respondent is a California corporation with its principal office and place of business at Lancaster, California, and is engaged in the production and marketing of live poultry to poultry processing plants in California. It is further established by the pleadings, and I find, that the Respondent, in the course of its business operations, has annual gross sales in excess of $8 million, and annually purchases and receives, at its places of business in California, grain and other supplies valued in excess of $50,000 directly from States other than California. Upon the basis of the foregoing, I find that Respondent at all times material herein has been, and is now, an employer engaged in commerce and in business affecting commerce within the meaning of Section 2(6) and (7) of the Act. If. THE LABOR ORGANIZATION INVOLVED General Teamsters, Chauffeurs, Warehouseman & Helpers Local Union 982, International Brotherhood of Teamsters, Chauffeurs, Warehousemen & Helpers of America, herein called the Union, is a labor organization within the meaning of Section 2(5) of the Act. III. THE UNFAIR LABOR PRACTICES A. The Issues-Preliminary Statement Respondent , a large grower and marketer of poultry, in March 1969 bought the trucking equipment of Patterson Trucking Company, a contract carrier which previously had been devoting approximately 80 percent of its work to the hauling of Respondent 's live poultry from the farms of contract growers to processing plants which had engaged the services of Patterson Trucking Company. At the time of the purchase in March 1969 , Patterson Trucking Company was party to a collective-bargaining agreement with the Union covering a unit of its truckdrivers . After the purchase , Respondent leased back the trucking equipment to Patterson Trucking Company temporarily till June 1, 1969. On this date the Respondent took possession of the truck equipment and employed Patterson Trucking Com- ' A consolidated complaint in Cases 31-CA-1558 and 31-CA-1594 issued April 10, 1970, based on charges in Case 31-CA-1558 filed on September 8. 1969. and on charges in Case 31-CA-1594 filed on October 14, 1969. At the outset of the hearing on motion of the General Counsel and by agreement of the parties, Case 31-CA-1558 was severed and discontinued: and the 41 pany's employees to continue their truckdriving functions of hauling Respondent's live poultry from the farms of contract growers to the processing plants. The Respondent has refused to recognize or bargain with the Union which had represented Patterson's truckdrivers, contending that (1) the truckdrivers are now agricultural laborers and are, therefore, excluded from the term "employee" within the meaning of Section 2(3) of the Act, and (2) assuming, arguendo, they are employees within the definition of Section 2(3) of the Act, the Respondent nevertheless has no duty to recognize or bargain with the Union as it is not a "successor" to Patterson Trucking Company. Query: (1) Are the truckdrivers, engaged in driving Respondent's live poultry to the processing plants from the farms of contract growers, agricultural laborers excluded from the term "employee" as defined in Section 2(3) of the Act? (2) In the event the truckdrivers are "employees" within the definition of Section 2(3) of the Act and not "agricultural laborers," is the Respondent a "successor" to Patterson Trucking Company and, therefore, legally obligated to recognize and bargain with the Union? B. Background The Respondent's president and general manager is Victor Ryckebosch. He and his family own and control not only the Respondent, but also a corporate cooperative at Lancaster known as the Antelope Valley Turkey Growers Association, a turkey processor which slaughters and dresses turkeys and another corporation known as Ryckebosch & Sons which owns and operates a feed and grain mill at Lancaster producing poultry feeds for the exclusive consumption of the Respondent's poultry grown on the farms of contract growers. The Respondent owns and operates two chicken hatcheries at Lancaster, Califor- nia, and a turkey hatchery at Hemet, California. The Ryckebosch family owns three neighboring 80-acre parcels of farm land at Lancaster, where alfalfa is raised and on which are situated the family home and office headquarters as well as two of the chicken hatcheries. Ryckebosch first ventured into turkey farming in 1930 with the purchase of a small acreage at Lancaster, California, on which he began operations with eight female turkeys and one male turkey, From this humble beginning, the Ryckebosch holdings have pyramided so that today his poultry enterprise is valued by him as follows: Antelope Valley Turkey Growers Association plant (turkey processor) $750,000 240 acres (three 80-acre parcels at Lancaster owned by the Ryckebosch family) 192,000 Ryckebosch & Sons Feed Mill 815,366 complaint was deemed amended by the withdrawal of all 8 (a)(3) and derivative 8(a)(I) allegations from the complaint. 2 The transcript of record has been noted and corrected in accordance with unopposed Respondent's motion. 42 Turkey hatchery at Hemet 2 chicken hatcheries at Lancaster Hatchery chick vans Feed-hauling equipment Live poultry-hauling equipment 163,286 154,000 12,515 307,935 132,899 In addition to the aforesaid land, buildings , and truck- hauling equipment , the Respondent at all times has on hand an average inventory of chickens of 1,250 ,000 birds valued at $500 ,000, an average inventory of turkeys valued at $2,500 ,000; breeder chickens and turkeys valued at $200,000 ; poultry feeds valued at $250 ,000; and accounts receivable of $1 million . The Respondent sends to market for processing an output of about 125 ,000 chickens per week and 50 ,000 turkeys per week. The Respondent procures its chicken hatching eggs from breeder farms in Arkansas .3 The fertile eggs are transported to the Respondent 's chicken hatcheries at Lancaster, where they are hatched into baby chicks The I-day old baby chicks or baby poults are then placed in boxes and transported to anyone of 188 contract turkey or chicken growers in California These growers are spread out through the southern half of California. They operate poultry farms, roughly speaking within a radius of approximately 150 to 220 miles in every direction from Lancaster, California The major portions of the poultry farms are clustered in the vicinity of Lancaster and Los Angeles County . When the fryers or turkeys , as the case may be , reach marketable age, the Respondent picks them up at the contract growers' farms and transports them by truck to the processing plant. It appears from the evidence that the evolution of Ryckebosch from a turkey farmer growing turkeys on his own ranch to Respondent 's current practice of placing the birds (fryers or turkeys) on the farms of contract growers evolved from a number of considerations which Mr. Ryckebosch explained were ( 1) to minimize exposure to disease , 4 (2) the demand for birds became greater ; and (3) the utilization of contract growers eliminated the necessity for additional capital investment in land and poultry raising equipment.5 C. The Contract Growers There are 188 contract growers Some own their farms, others lease them. Their capital investment in their farm and equipment is substantial . For example , contract grower Herbert L. Shipp has a 10-acre farm with a capacity of 80,000 fryer chickens. He values his property at $75,000 His wife and children help him operate the poultry farm. Occasionally he hires extra help Contract grower Sher- wood owns a 40-acre poultry farm with 100,000 square feet of brooder house with a single flock capacity of 60,000 broilers He values his farm at $180 ,000 and has plans to i The turkey eggs are produced on breeder farms in California and are transported to the Respondent 's turkey hatchery at Hemet California ' it is established without dispute that as a method of preventing decimation of the flock by disease , it is the recommended practice to minimize the size of the flocks , spread them over farms several miles apart to avoid airborne disease , and to move the flock into and out of the DECISIONS OF NATIONAL LABOR RELATIONS BOARD invest an additional $ 45,000 to increase the capacity of his farm from an annual output of 250 ,000 birds to 500,000 birds. Sherwood 's son and daughter help him care for the chickens . Raising the chickens requires continuous care day and night; including such matters as proper heat and ventilation ; adequate clean water and feed, clean litter to bed down the birds, and constant attention to the automatic feeding and watering equipment so as to prevent or repair breakdowns in the mechanical equipment. The contract grower keeps a daily mortality count of the birds for submission to Respondent and is on guard at all times against illness or disease in birds which can result in destruction of the flock. Where disease occurs , the grower with the advice of one of the Respondent 's "field representatives " administers the proper medication to the birds The grower guards against predatory animals such as cats, dogs , and coyotes by enclosures and fencing. Where indicated , the grower, in cooperation with the Respondent's field representative , sends diseased chickens to the State of California Veterinary Laboratory at San Gabriel for diagnosis and advice on treatment of the flock. The Respondent enters into a written contract with each grower. Under the contract terms, the grower agrees to (1) raise Respondent 's birds, (2) furnish at his own expense land, poultry buildings and growing yards, field storage facilities , and necessary equipment such as feeders, water founts, shade , roosts, fencing , and brooders ; (3) provide at his own expense adequate supply of water and electricity, (4) provide adequate labor to carry through all operations, such as brooding, feeding, and growing, and to assist in loading of birds on trucks to the processor and in unloading feed delivered to the grower, (5) provide adequate sanitation and general care of birds to assume maximum growth and health under efficient growing practices and to give maximum protection to the birds against the hazards of fire, theft , predatory animals, and sickness; (6) follow the recommendations of Respondent or its employees and agents regarding the growing methods , care , management, disease, health , feeding, and sanitation of such chicks and to abide by the decision of Respondent as to the proper market age , market size , and market condition of the birds, and (7) supply at his own expense adequate compensation insurance to cover all of his employees Respondent agrees to (1) furnish birds in number and kind suitable to the growing area of the grower and at dates to be determined by Respondent , (2) furnish feed in amounts and qualities which Respondent deems best to properly feed the birds from date of delivery through to market age ; (3) furnish brooding fuel, litter, vaccines, and medicants necessary for the proper growth and health of the birds, (4) insure the birds at Respondent 's option to be charged to the project ; (5) make a final accounting showing the sales price , costs charged, and profit and/or loss, and should a loss occur it will be borne by the Respondent The Respondent agrees to pay the grower a minimum of I cent per pound to a maximum of 2-1/2 cents per pound ranches on an "all in - all-out" basis as baby chicks frequently succumb to diseases which older chickens harbor but from which they are immune The capital investment of a single contract grower is exemplified by the testimony of Robert Sherwood He testified his ranch contained 40 acres with a capacity of 250 ,000 broilers a year It has 100,000 square feet of brooder house He valued his present investment at $180000 VICTOR RYCKEBOSCH, INC 43 for all chickens marketed, the precise amount per pound paid depending on the total costs in relation to other growers This method of payment offers an incentive to the grower to exercise all the possible skills of poultry husbandry in raising the chickens so as to get the maximum weight at the least cost for those items supplied by the Respondent, namely, the birds, feed, litter, brooder fuel, and medicines. The agreement also provides that the Respondent retains legal and equitable title to the birds and all other supplies furnished to the growers with the full and exclusive right to sell, mortgage, transfer, or otherwise hypothecate the birds It also reserves to Respondent the right to inspect the flocks at the grower's ranch at any time and to examine the grower's facilities, and the grower agrees to permit ingress and egress on his ranch for these purposes The grower agrees to maintain adequate inventory records of the birds and to report abnormal mortalities to Respondent, and where directed to hold carcasses for inspection. The agreement further provides that the grower is an independ- ent contractor and is not a partner, agent, servant, point venturer, assistant, or employee of Respondent. The agreement also provides that if in the opinion of the Respondent, the grower is neglecting the birds or otherwise breaches the agreement, Respondent may without notice terminate the agreement and immediately retake the birds, feed, and all other supplies furnished by Respondent The record testimony shows that the Respondent and the growers are substantially carrying out the terms of the agreement. The Respondent has five field representatives who, in addition to other duties, call on the growers at least once each week and oftener where required by special problems in connection with the welfare of the flock. The Respondent's representatives determine when the birds have reached marketable state, usually in 10 weeks from date of hatching for chickens and 20 weeks for turkeys They inspect the equipment and flocks and make recommendations to the growers with respect to care of the flocks, and they make arrangements for a new flock to replace the old flock on the "all-in-all-out" system of raising and marketing the birds When the birds have reached marketable age, Respondent makes arrangements for its coop trucks to transport the birds to the processing plants located in the Los Angeles or Lancaster area To prevent cannibalism among the chickens, they are debeaked by the Respondent's employees at the hatchery before being transported to the contract growers' farms. The turkeys are debeaked by a crew of Respondent's employees after they have been delivered to the contract growers' farms This same crew also de-toes certain chickens for the kosher retail trade to prevent unsightly skin scratches on the bird and the crew occasionally inoculates birds on the contract grower's farm D The Respondent's Succecsorship to the Patterson Trucking Company Wesley Patterson had been the president and operating manager of the Patterson Trucking Company for a number of years. The true name of the corporation which did business as Patterson Trucking Company was the Scarbor- ough Corporation. Patterson Trucking Company was a contract carrier under license by the California Public Utilities Commission. Its customers were primarily poultry processing plants in the Los Angeles and Lancaster area who, when poultry became of marketable age, engaged Patterson Trucking Company to pick up the poultry at the poultry farm and deliver it to the processing plant The processing plant paid the freight. Prior to 1959, Respondent hauled the live poultry to the processing plants with its own equipment In 1959, the Respondent, desiring to discontinue transportation of its poultry with its own equipment, but at the same time wanting to assure itself of a carrier ready, able, and willing to perform all of its live poultry hauling needs to market, transferred its live poultry hauling equipment to Patterson Trucking Company and advanced approximately $ 80,000 in cash for operating capital on a long-term basis to Patterson Trucking Company. As security for the loan, Patterson Trucking Company issued 4,535 shares of its capital stock to the Respondent Although this transaction vested in the Respondent a substantial shareholder's interest in the Patterson Trucking Company, it was clearly understood between Wesley Patterson and Victor Ryckebosch that the Respondent would not participate in the operation of the Patterson Trucking Company and that the shareholder's certificates were being held by the Respondent only as security for the loan. By the year 1968, the indebtedness of Patterson Trucking Company to the Respondent had been reduced to approximately $41,000. Patterson Trucking Company began having financial difficulties in 1968 and was approaching bankruptcy Because of Ryckebosch's concern that there be sufficient live hauling coop equip- ment to carry his birds to the processing plants and to avert the impending bankruptcy of Patterson Trucking Compa- ny, the Respondent in March 1969 purchased the truck-hauling equipment used by the Patterson Trucking Company, consisting of seven diesel tractors and coop trailers.", The equipment transferred to the Respondent was effected under the California bulk sale law The total consideration for the transfer of the equipment amounted to $110,664, which consisted of $ 22,000 cash paid by the Respondent toward accounts payable by Patterson Truck- ing Company, cancellation of indebtedness due the Respondent of $47,581, cancellation of indebtedness due Ryckebosch & Sons (feed mill) of $981, and the assumption by the Respondent of $40,101 still owing as a contract balance on the trucking equipment. For an approximate 3-month period until June 1, 1969, the equipment was leased back by the Respondent to the Patterson Trucking Company On June 1, 1969, the Respondent took possession of the equipment and together with some additional equipment purchased elsewhere utilized the equipment thenceforth exclusively for the live haul of his own birds from the farms of Respondent's contract growers to the processing plants in Los Angeles and to the Antelope Valley Turkey Growers Association processing plant in Lancaster, owned and controlled by the Ryckebosch Patterson retained title to one flatbed trailer which he did not transfer to the Respondent 44 DECISIONS OF NATIONAL LABOR RELATIONS BOARD family. In May 1969, preparatory to taking possession of the equipment, Ryckebosch met with Wesley Patterson and his drivers and agreed to hire Patterson's seven drivers as his drivers He told them that he had no obligation to deal with the Union as his operations were in agriculture. Effective June 1, 1969, Patterson's seven drivers became truckdrivers of the live-haul equipment (the coop-trucks) for Respondent. The Respondent also effective June 1, 1969, hired Wesley Patterson, former president of the Patterson Trucking Company, to become the supervisor of the live poultry drivers and the catchers. These truckdrivers and catchers were the identical employees who had been employed by Patterson Trucking Company. They contin- ued in their same functions Wesley Patterson, now as Respondent's supervisor, continued to supervise his former employees As before, he continued to dispatch the truckdrivers from his home. As before, at the appointed hour, the truckdriver would go to the scale at Lancaster, weigh in his empty coop trailer, then start for the designated contract grower's farm where he would meet the catchers after dark who would then catch the poultry and load them into the coops (also called racks) on the trucks The trailer loaded, the driver would then return to the scale at Lancaster where he would weigh in again with a full load and from that point deliver the load to the designated processing plant Thus the drivers still perform substantially the same duties as before, they drive the same trucks, load up live poultry at the farms of contract growers at night time as before, are still dispatched by and work under the supervision of Patterson, but are now employed by the Respondent instead of the Patterson Trucking Company Although the Respondent employs other truckdrivers to drive the vans containing baby chicks from the hatchery to the contract growers and still other drivers to drive the tank trucks containing feed from the feed mill to the contract growers, the record is clear that there is no interchange of the live haul coop drivers-formerly employed by Patterson-with the Respondent's other drivers; and Patterson's former drivers, now in the employ of Respon- dent, remain a clearly identifiable, homogeneous group of coop truckdrivers performing a distinct and well delineated function in the Respondent's operations. The differences which now appear since the sale to Respondent, namely, that the Respondent operates the truck without a California Public Utility permit, whereas Patterson operated with such certificate; that the Respon- dent hauls only his own poultry whereas Patterson operated as a contract carrier for hire, and that 80 percent of Patterson's load involved the carrying of Respondent's poultry, whereas now 100 percent of the cargo is Respondent's poultry, in my opinion, are too insignificant to preclude the conclusion that the Respondent is the successor to the Patterson Trucking Company. It is clear and undisputed that with the transfer of the equipment, the coop truckdrivers, under the same supervi- sion, namely, that of Patterson, perform the same duties and engage in the same functions, and the employing 7 This conclusionary finding is based on the assumption that the coop truckdrivers are not excluded from the definition of "employee" in Section 2(3) of the Act industry has remained essentially the same despite the change in ownership . Having chosen a bargaining repre- sentative , there is no reason to believe that the employees will change their attitudes merely because the identity of their employer has changed. I am convinced , and I find, that the Respondent is the successor to Patterson Trucking Company within the meaning of such cases as Ranch-Way, Inc., 183 NLRB No. 116, Suffolk Mack, Inc, 183 NLRB No. 55; William J Burns Detective Agency, Inc, 182 NLRB No. 50; S-H Food Service, Inc., 183 NLRB No. 124; Overnice Transportation Company v. N L.R.B, 372 F.2d 765 (C.A. 4); N.L R B. v. Colten d/b/a Kiddie Kover Mfg Co, 105 F 2d 179 (C A. 6); Randolph Rubber Company, 152 NLRB 492 ; N L.R B v. Armato, 199 F.2d 800 (C.A. 7). Cf . Tallakson Ford, Inc., 171 NLRB No. 67 That being the case , the Respondent , I find, was burdened with the same obligation to recognize and bargain with the Union as the representative of the live haul or coop drivers as had developed upon the predecessor, Patterson Trucking Company.? E. The Coop Truckdrivers Status as "Employee" or "Agricultural Laborer" The seven coop truck, or live-haul poultry, drivers were formerly employed by the Patterson Trucking Company. After the sale of the truck-hauling equipment to Respon- dent, these seven drivers (on June 1, 1969) became employees of Respondent. The Respondent refuses to recognize or bargain with the Union as the exclusive representative of its coop truckdrivers, inter alia, on the asserted ground that they are employed in agriculture and, therefore, excluded from coverage within the meaning of Section 2(3) of the Act.8 The congressional standard for determining whether employees are agricultural laborers is set forth in Section 3(f) of the Fair Labor Standards Act (29 U.S.C Sec. 203(f)). Since 1946, the appropriations acts for the Board have regularly carried a rider which provides that the term "agricultural laborer" shall be defined in accordance with Section 3(f) of the Fair Labor Standards Act. This provision reads in pertinent part as follows: "Agriculture" includes farming in all its branches and includes the raising of poultry, and practices . . . performed by a farmer or on a farm as an incident to, or in conjunction with, such farming operations . . . . The Supreme Court stated with respect to this provision in Farmers Reservoir & Irrigation Co v McComb, 337 U S. 755, 762-763, "this definition has two distinct branches." The primary meaning, which is admittedly inapposite here, involves actual farming operations such as the raising of produce from the soil or the raising of poultry.9 The secondary definition in the Court's words, "includes any practices, which are performed either by a farmer or on a farm, as an incident to or in conjunction with `such' farming operations, including preparation for market, delivery . to market or to careers for transportation to market " (Ibid ) 8 Section 2(3) of the Act provides that the term "employee"-" shall not include any individual employed as an agricultural laborer " No one contends that the coop truckdrivers are "raising poultry " VICTOR RYCKEBOSCH, INC. Query Are the conditions of the secondary meaning satisfied with respect to the coop truckdrivers in this case? The Supreme Court in the Farmers Reservoir case, supra, specifically pointed out that under the second branch of the statutory definition of agriculture, it is not only necessary that the practices in question be performed "by a farmer or on a farm," but they must also be incidental to "such" farming as is performed under the first branch of the definition. 337 U S at 766-767. The Supreme Court's footnote 15 at pages 766-767 expressed its view concerning the second branch of the definition as follows: .. there is the additional requirement that the practices be incidental to "such" farming. Thus, processing on a farm of commodities produced by other farmers is incidental to or in conjunction with the farming operation of the other farmers and not incidental to or in conjunction with the farming operation of the farmer on whose premises the processing is done Such processing is, therefore, not within the definition of agriculture Bowie v. Gonzalez, 117 F.2d 11 (C.A. 1, 1941). In cases where the employees are claimed to be agricultural laborers by their employer, on the ground that they are engaged in the second branch of the agricultural definition, namely, in practices performed by a farmer or on a farm as an incident to or in conjunction with such farming operations, the courts have by the great weight of authority rejected the claimed agricultural status of the employees where it appeared that the employees were handling or working on agricultural products produced on farms other than their own employer.10 Thus, in N L R B v Olaa Sugar Company, 242 F.2d 714 (C.A. 9), while the employer, Olaa Sugar Company, harvested sugar cane from its own farms as well as from the farms of independent growers and then transported the cut cane to the sugar mill, the court held that the hauling of the cane from the independent grower's field was not an incident to Olaa's farming operations and hence not within the agricultural exemption The court said- Our view, however, is that this hauling from the fields of the independent growers must be treated differently from the hauling from Olaa's own fields. We have noted that there are here two groups of farming operations-one by Olaa on its farm, and the other, the farming operations of the independent growers. Since the teaching of Waialua [349 U.S 254] is that we must approach these transportation operations with the inquiry whether they are "incident to or in conjunction with" farming operations, we must note that under the language of the Act ( . . . ), these practices must be performed as an incident to such farming operations. Without doubt Olaa is a farmer and its own cane lands constitute a farm, but the hauling of the cane from the independent growers' fields cannot be said to be an incident to such farming operations, that is to say, Olaa's farming operations. This we believe is in line 10 Farmers Reservoir & Irrigation Co v McComb, 337 U S 755 766, 767, fn 15 (1949), N L R B v Olaa Sugar Compam, 242 F 2d 714, 718, (C A 9), Bowie v Gonzalez, 117 F 2d 11 (C A I), Waldo Rohnert Co v N L R B, 322 F 2d 46 (C A 9), Mitchell v Huntsville Wholesale Nurseries, Inc, 267 F 2d 286 (C A 5). Mitchell v Hunt, 263 F 2d 913 (C A 5), Chapman v Durkin, 214 F 2d 360 (C A 5), cert denied 348 U S 897 Fort Mason Fruit Co v 45 with the decision in Bowie v . Gonzalez , 1 Cir., 117 F.2d 11, 18. The Board has accorded great weight to the interpretative bulletins and the administrative advice of the Department of Labor in the construction and application of Section 3(f) of the Fair Labor Standards Act. Section 780.141 of Interpretative Bulletin, Title 29, Part 780, Code of Federal Regulations , provides in pertinent part as follows. Opera- tions must be performed "by"a farmer "Farmer" includes the employees of a farmer . It does not include an employer merely because he employs a farmer or appoints a farmer as his agent to do the actual work . . . . One who merely performs services or supplies materials for farmers in return for compensa- tion in money or farm products is not a "farmer." Thus, a person who provides credit and management services to farmers cannot qualify as a "farmer " on that account... Where crops are grown under contract with a person who provides a market , contributes counsel and advice , makes advances and otherwise assists the grower who actually produces the crop, it is the grower and not the person with whom he contracts who is the farmer with respect to that crop (Mitchell v. Huntsville Nurseries, 267 F.2d 286). Section 780 .134, Title 29, Part 780, C.F.R., provides in pertinent part as follows: "However , feeding, fattening and caring for poultry over a substantial period may constitute the `raising' of poultry." Section 780 .135, Title 29, Part 780, C.F .R., provides as follows: Contract arrangements for raising poultry Feed dealers and processors sometimes enter into contractual arrangements with farmers under which the latter agree to raise to marketable size baby chicks supplied by the former who also undertake to furnish all the required feed and possibly additional items. Typically, the feed dealer or processor retains title to the chickens until they are sold. Under such an arrange- ment, the activities of the farmers and their employees in raising the poultry are clearly exempt. The activities of the feed dealer or processor, on the other hand, are not "raising of poultry" and employees engaged in them cannot be exempt on that ground. Employees of the feed dealer or processor who perform work on a farm as an incident to or in conjunction with the raising of poultry on the farm and engage in no nonexempt activities during the workweek may, however, be exempt as employed in "secondary" agriculture (see sections 780 137 et seq., and Johnston v Cotton Producers Assn. 244 F.2d 553). The foregoing interpretative bulletins for the Department of Labor to which reference is above made justify a conclusion that the independent growers in the instant case who are caring for, feeding and fattening the poultry on Durkin, 214 F 2d 363, cert denied 348 US 897, Wirtz v Osceola Farms Company, 372 F 2d 584, 587-589 (C A 5), Sweetlake Land and Oil Co v NLRB, 334 F 2d 220, 222-223 (C A 5) Cf NLRB v John W Campbell, 159 F 2d 184, 185-187 (C A 5), Dofflemeyer Bros v N L R B, 206 F 2d 813 (C A 9) See also Maneia v Waialua, 349 U S 254, 262 (1955) 46 DECISIONS OF NATIONAL LABOR RELATIONS BOARD their farms, are farmers engaged in raising poultry, but not so the Respondent merely because it has supplied the baby chick or poult, the feed, fuel, and medicine, the market, and counsel and advice. See Mitchell v. Huntsville Nurseries, 267 F.2d 286 (C A 5, 1959). In Norton & McElroy Produce, Inc, 133 NLRB 104, in holding that truckdrivers and stitchers engaged in packing and transporting lettuce were not agricultural laborers when their employer did the harvesting, packing, and shipping grown by others on lands owned or leased by them, the Board said. If his employer ships from his own farms, but also from other growers' farms, the driver is not an agricultural laborer to the extent he regularly hauls from the independent growers' farms Even where the shipper engages in some incidental farm practices on a grower's farm, his drivers would not thereby be converted into employees engaged in work incidental to or in conjunction with these farm operations rather than to the employer's primary operation, shipping and market- ing. The same distinction applies to a stitcher, who also is performing a nonfarm task. When he stitches cartons for his employer who is not the grower of the produce, his work is incidental to the shipping operations of his employer, not the operations of the grower Although the stitcher works "on a farm," his work must be incidental to farming operations in order to qualify for the agricultural exclusion. The truckdrivers and stitchers in the instant case are agricultural laborers and subject to the Section 2(3) exclusion only to the extent that they are employed by a farmer in work incidental to or in conjunction with such farming operations. We cannot hold under any of the economic arrangements herein that the Employer is a "farmer." In all the arrangements the Employer either invested in a crop cultivated by another or, together with other parties, set up a separate entity which, with its own employees, cultivated the crop. Those employed by the shipper, in the shipping operation, are not employed in the farming operation, which is independent, even though the shipping operation has invested in, or owns a share in, the farming operation. The Board's rationale articulated in Norton & McElroy Produce, Inc, supra, is applicable to the instant case. Here even though the Respondent has invested in and owns a substantial equity in the poultry raising operation, it is nevertheless not the "farmer" who is raising the poultry on the farm The contract grower is the "farmer" raising the poultry on land in his possession and control The Respondent is predominately an investor, a marketer, and a shipper of poultry to processing plants. The Respondent's contention that it is a farmer, raising poultry "from cradle to grave" is not supported by the Board decision in Samuel B Gass, et al, 154 NLRB 728 11 In that case, the major part of the truckdrivers' work involved the delivery from the employer's feed mill to 10 farms owned by the employer and to 150 to 200 farms on which independent farmers raised the employer's chickens. In rejecting the employer's contention that these truckdri- vers were agricultural laborers, the Board said- We find, upon consideration of the above, that the work of the drivers is performed as an incident to or in conjunction with the operations of the feedmill rather than to the operations of any farmer or farm Accordingly, these drivers are "employees" within the meaning of the Act subject to the jurisdiction of the Board. On the basis of the Board's holding in Samuel B. Gass, supra, affirmed by the First Circuit, it is reasonable to conclude that the Respondent's operations in supplying feed from its feed mill to the 188 contract growers is not an agricultural operation but rather an industnal operation which, inter aha, defeats its claim that it is a farmer In Waldo Rohnert Co v. N LR.B, 322 F.2d 46 (1963), the Ninth Circuit agreed with the Board that seed mill employees handling seed, 75 percent of which was grown by farmers pursuant to contract with the employer, Rohnert, did not qualify for the agricultural exemption, notwithstanding the fact that Rohnert furnished the planting seeds for the seed crops, retained legal title to the growing plants and seeds, and controlled and supervised the farming operations, and in some instances provided harvesting machines, but in case of crop failure or undergrade seed yield, the seed contract growers were liable for the planting seed at an agreed rate; and contract growers were paid on the basis of the number of pounds of acceptable seed produced. Employer Rohnert inspected the growing crops, did all roguing (removing undesirable plants), and decided when to irrigate (with the landowners' water), when to weed and spray, and finally when to harvest; provided the harvesting equipment; and trucked the seed to the mill where it was weighed, cleaned, graded, sacked, stored, and eventually shipped to wholesale buyers and jobbers. In rejecting Employer Rohnert's contention that his seed mill employees were agricultural, the court adopted the language of the Fifth Circuit in Mitchell v Hunt, 263 F.2d 913, 917, a Fair Labor Standards Act case, concerning the meaning of "farmer" in section 3(f) of the Fair Labor Standards Act, in which the court said: To bring himself within the exception, the appellee [farmer] must prove that not merely some but substantially all of the farming operations to which the practices are incident were operations of the appellee farmer himself Also in accord with the Fifth Circuit's decision in Mitchell v. Huntsville Wholesale Nurseries, 267 F.2d 286, the Ninth Circuit in Waldo Rohnert Co., supra, quoted with approval the Fifth Circuit's language at page 290 on similar facts involving a crop-growing contract as follows: Thus processing on a farm of commodities produced by other farmers is incidental to, or in conjunction with, the farming operation of the other farmers and not incidental to, or in conjunction with, farming opera- tions of the farmers on whose premises the processing is done. Such processing is therefore not within the definition of agriculture. Attention is specially directed to Strain Poultry Farms, Inc, 160 NLRB 236. In Strain the Board directed an election in a unit of Strain's "coop" truckdrivers, who, like " Enfd N L R B v Gass, 65 LRRM 2221 (C A I, 1967) VICTOR RYCKEBOSCH, INC the "coop" truckdrivers in the instant case, hauled the poultry of marketable age from the poultry farms of independent contract growers to the processing plant Strain, the employer, opposed the holding of an election on the ground that the "coop" truckdrivers were excluded from the definition of "employee" in Section 2(3) because they were agricultural laborers within the definition of section 3(f) of the Fair Labor Standards Act. Strain's operations were very similar to that of the Respondent in the case at bar, and his relationship with the independent contract growers was similar to that of the Respondent and the contract growers in the instant case. Strain's coop truckdrivers functioned the same as the Respondent's coop truckdrivers in question. The Board recited the facts in capsule form as follows. The Employer, a Georgia corporation with its principal office and hatchery in Dalton, Georgia, is engaged in the production an' sale of poultry products. The Employer owns a numuer of poultry farms and operates a hatchery where eggs are incubated and hatched. The chicks are then transported by the Employer to its farms and to independent farmers who raise the chickens to marketable size. The farmers are paid on a per pound basis for their work, but at all times the chickens are owned by the Employer who supplies all feed and transportation and has employees who visit the farms to vaccinate and debeak the chickens. When the chickens are ready for market, between 16 and 18 "coop" truckdrivers haul coops from the Employer's Dalton and Acworth, Georgia, operations to the independent farms where contract loaders fill the coops and load the trucks with the cooped chickens. Relying on N.L R.B v. Olaa Sugar Company, Ltd., et a!, supra, Norton & McElroy Produce, supra; Farmers Reservoir & Irrigation Co v. McComb, supra; U. S. Supreme Court; and Samuel B. Gass, supra, the Board held the coop truckdrivers were not "agricultural laborers" but were "employees" and directed an election. The union won the election and was duly certified as the exclusive representative of the coop truckdrivers. Strain refused to honor the Board certification In subsequent unfair labor practice proceedings described in 163 NLRB 972, the Board, inter aka, affirmed its certification and ordered Strain to bargain with the union as the certified representative of the coop truckdrivers. The Board instituted enforcement proceedings before the Court of Appeals of the Fifth Circuit. The court of appeals at 405 F 2d 1025 denied enforcement of the Board's order Commenting on cases cited by the Board as well as other cases, the court concluded that Strain was engaged in farming as that term is used in the primary definition of section 3(f) of the Fair Labor Standards Act. The court reasoned that: The fact that Strain hired the independent growers to raise its birds and contract loaders to catch the birds for 12 The Board 's subsequent decision in Arkansas Valley Industries, Inc. 167 NLRB 391 , where truckdrivers employed at the hatchery transported eggs from breeder farms to the hatchery and the baby chicks from the hatchery to the broiler farms, held the drivers to be exempt as hatchery employees engaged in exempt activities In In 6 on page 391 , the Board referred to the Strain case D'Arrigo Bros Co of California, 171 NLRB No 5, is inapposite There all of the land on which crops were grown and 47 loading onto its trucks, would not seem to destroy its claim to having raised the poultry Furthermore, the trucking activities were part of Strain's poultry raising venture. They were performed incident to or in conjunction with Strain's poultry raising operations and Strain was not a poultry raiser conducting a trucking operation on the side. The trucking operation was a part of an integrated poultry raising operation .. . In seeking to distinguish cases cited by the Board, the court said: .. the distinction between those situations and the present one is that these birds belonged to the respondent [Strain] and, although the raising of them was shared with independent growers, Strain's activities were more nearly that of one engaged in the "raising of .. . Poultry" than of a purchaser, jobber, etc. In summary, the court concluded that Strain's arrange- ment with the independent growers did not remove it from the primary pertinent definition of agriculture, namely, "the raising of poultry." The court was not persuaded by the Board's arguments that the coop truckdrivers' work was not incidental to or in conjunction with farming, as follows: that the poultry hauled by the coop truckdrivers had been raised by independent growers on their farms and not by Strain, that Strain merely provided a necessary service essential to the agricultural activity comparable to an irrigation company's service to farmers; that the independent farmers raise the birds and Strain has little to do with the actual raising; that these coop drivers are hired by Strain and appear on Strain's payroll as a separate division "whose function is the delivery of poultry for sale", that the drivers are not involved in raising chickens and they report to and from work at Strain's garages. I am unable to discern any significant factual distinction between the instant case and the Strain case. There is nothing to indicate that the Board has abandoned its position asserted in Strain 12 Therefore, notwithstanding the fact that the Fifth Circuit in reversing the Board in Strain has taken the position which, the Respondent assets, should be applied here, I am, with due respect to the court, nevertheless required to, and I do, adhere to the Board's Decision in Strain I may not assume, as the Respondent suggests, that because the Board did not seek Supreme Court review in the Strain case, that the Board has accepted the Fifth's Circuit's decision in Strain "as the law on the facts thereof." The Board's reasons for not requesting review may be, and often are, entirely unrelated to its opinion of the broad question of the law involved Novak Logging Company, 11 9NLRB 1573,1575, from which I quote, states as follows: It has been the Board's consistent policy for itself to determine whether to acquiesce in the contrary views of a circuit court of appeals or whether, with due deference to the court's opinion, to adhere to its previous holding cultivated was land leased by the employer and, except for a small amount of broccoli, "the employer performed all of the farming operations- from preparing the land for planting to harvesting the mature crop with its own employees" With respect to the broccoli, the employer provided the seed, supervised the growing operation, and -bsequently harvested the mature crop The lessorfor $10 peracre plus costs provided the necessary machinery and labor to bring the crop to maturity 48 DECISIONS OF NATIONAL LABOR RELATIONS BOARD until the Supreme Court of the United States has ruled otherwise But it is not for a Trial Examiner to speculate as to what course the Board should follow where a circuit court has expressed disagreement with its views. On the contrary, it remains the Trial Examiner's duty to apply established Board precedent which the Board or the Supreme Court has not reversed. Only by such recognition of the legal authority of Board precedent, will a uniform and orderly administration of a national act, such as the National Labor Relations Act, be achieved 1, therefore, find that the coop truckdrivers' activities in hauling poultry from the poultry farms of the independent contract growers do not cause them to be agricultural laborers within either the primary or secondary definition of agriculture as defined by section 3(f) of the Fair Labor Standards Act I find that although the contract growers are farmers engaged in the raising of poultry, the activities of the Respondent with respect to those operations, namely, the supplying of baby chicks, feed, fuel, litter, medicines- consultation and advice, a market, and transportation from the poultry farm, do not make the Respondent a farmer Inasmuch as the coop truckdrivers are not employees of the contract growers, who are farmers, but are employees of the Respondent, and the coop truckdrivers deliver the results of someone else's farming efforts, namely, the contract growers, in that case the drivers' functions do not constitute "practices which are performed either by a farmer, or on a farm, incidental to or in conjunction with such farming operations." I. therefore, find that the coop truckdrivers are "employees" within the definition of Section 2(3) of the Act F The Respondent's Refusal to Recognize or Bargain with the Union At the time that the truck-hauling equipment of Patterson Trucking Company was sold to the Respondent in March 1969, there existed an unexpired collective--bargaining agreement between the Union and Patterson Trucking Company, covering a unit of truckdri- vers which by its terms was due to expire May 31, 1969. When the Union sought to reopen the contract in April or May 1969, Union Representative Grundy was advised by Patterson of the sale to the Respondent. Grundy sought to contact Ryckebosch on several occasions to request bargaining, but without success The Respondent concedes that it informed the Union in July 1969 that it was refusing to recognize or bargain with it because the truckdrivers formerly in the employ of Patterson Trucking Company had, by their employment with the Respondent, become agricultural employees, excluded from the coverage of the National Labor Relations Act Without consulting the Union, the Respondent increased the pay of the drivers from $ 2.75 to $3 per hour and provided its own insurance program rather than the program set forth in the collective-bargaining agreement G Conclusionary Findings I have found that the coop truckdrivers are "employees" within the meaning of Section 2(3) of the Act and not "agricultural laborers." I have also found that the Respondent is the successor to the Patterson Trucking Company. I further find that the coop truckdrivers employed by the Respondent on and after June 1, 1969, constitute a unit appropriate for the purposes of collective bargaining within the meaning of Section 9(b) of the Act, and the Union is their exclusive representative for the purposes of collective bargaining with respect to rates of pay, wages, hours of employment, and other terms and conditions of employment. Strain Poultry Farms, Inc, 160 NLRB 236. I, therefore, find that the Respondent on and after June 1, 1969, had the legal duty to recognize and bargain with the Union and to refrain from engaging in unilateral action with respect to the wages, hours, and working conditions of the coop truckdrivers The failure and refusal of the Respondent to recognize and bargain with the Union on and after June 1, 1969, and its unilateral changes in the rates of pay, fringe benefits, and insurance coverage of the coop truckdrivers constituted unfair labor practices within the meaning of Section 8(a)(1) and (5) of the Act. Upon the entire record, I make the following CONCLUSIONS OF LAW 1. The Respondent is an employer engaged in commerce within the meaning of Section 2(6) and (7) of the Act. 2 The Union is a labor organization within the meaning of Section 2(5) of the Act. 3. All the coop truckdrivers of the Respondent constitute a unit appropriate for the purposes of collective bargaining within the meaning of Section 9(b) of the Act. 4. The Union, at all times material herein, has been, and now is, the exclusive representative of all employees in the aforesaid appropriate unit for the purposes of collective bargaining within the meaning of Section 9(a) of the Act. 5 From the period commencing on June 1, 1969, and at all times thereafter to the present, the Respondent in violation of Section 8(a)(1) and (5) of the Act has refused to bargain collectively with the Union and has unilaterally changed the rates of pay, wages, and working conditions of the aforesaid coop truckdrivers without consultation or bargaining with the Union. 6 The aforesaid unfair labor practices affect commerce within the meaning of Section 2(6) and (7) of the Act. RECOMMENDED ORDER Upon the basis of the foregoing findings of fact and conclusions of law, and upon the entire record, it is recommended that the Respondent, Victor Ryckebosch, Inc , its officers, agents, successors, and assigns, shall: I Cease and desist from (a) Refusing to bargain with General Teamsters, Chauffeurs, Warehousemen & Helpers Local Union 982, International Brotherhood of Teamsters, Chauffeurs, Warehousemen & Helpers of America, with respect to wages, hours, and conditions of work, as the exclusive representative of its employees in the appropriate unit as found in this Decision (b) Unilaterally changing the rates of pay, wages, hours, VICTOR RYCKEBOSCH, INC 49 and working conditions of the employees in the aforesaid appropriate unit without consultation or bargaining with the Union. 2. Take the following affirmative action to effectuate the policies of the Act: (a) Upon request, bargain collectively with General Teamsters, Chauffeurs, Warehousemen & Helpers Local Union 982, International Brotherhood of Teamsters, Chauffeurs, Warehousemen & Helpers of America, as the exclusive representative of all employees in the appropriate unit and, if an understanding is reached, embody such understanding in a signed agreement. (b) Make whole the employees in the aforesaid appropri- ate unit for any loss of employment benefits suffered by them by reason of the Respondent's unilateral discontin- uance of benefits previously enjoyed by such employees 13 (c) Preserve and, upon request, make available to the Board or its agents, for examination and copying, all 1 i NLRB v Strong Roofing & Insulating Co, 393 U S 357, N L R B v Katz, 369 U S 736 1 Any backpay should accumulate interest as provided in Isis Plumbing & Heating Co. 138 NLRB 176 1' In the event no exceptions are filed as provided by Section 102 46 of the Rules and Regulations of the National Labor Relations Board, the findings conclusions, recommendations and Recommended Order herein shall, as provided in Section 102 48 of the Rules and Regulations, be adopted by the Board and become its findings conclusions, and Order payroll records, social security payment records, timecards, personnel records and reports, and all other records necessary to analyze the amount of backpay14 due under this Recommended Order. (d) Post at its offices at Lancaster, California, and mail to each of its drivers in the aforesaid appropriate unit , copies of the attached notice marked "Appendix B."15 Copies of said notice, to be furnished by the Regional Director for Region 31, after being duly signed by Respondent, 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 to insure that said notices are not altered, defaced, or covered by any other material. (e) Notify the Regional Director for Region 31, in writing, within 20 days from the date of this Decision, what steps have been taken to comply herewith.16 and all objections thereto shall be deemed waived for all purposes In the event that the Board 's Order is enforced by a judgment of a United States Court of Appeals, the words in the notice reading "Posted by Order of the National Labor Relations Board" shall be changed to read "Posted pursuant to a Judgment of the United States Court of Appeals enforcing an Order of the National Labor Relations Board " 16 In the event that the 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 the Respondent has taken to comply herewith " Copy with citationCopy as parenthetical citation