Walker Co.Download PDFNational Labor Relations Board - Board DecisionsJun 29, 1970183 N.L.R.B. 1322 (N.L.R.B. 1970) Copy Citation 1322 DECISIONS OF NATIONAL LABOR RELATIONS BOARD Walker Company and Chicago Truck Drivers, Chauffeurs , and Helpers Union of Chicago and Vicinity (Independent). Cases 13-CA-9271-1 and 13-CA-9271-2 June 29, 1970 DECISION AND ORDER By MEMBERS FANNING, BROWN, AND JENKINS On January 7, 1970, Trial Examiner Thomas F. Maher issued his Decision in the above-entitled proceeding, finding that the Respondent had not engaged in the unfair labor practices 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, and Respondent filed a brief in opposition to the General Counsel's exceptions. Pursuant to the provisions of Section 3(b) of the National Labor Relations Act, as amended, the Na- tional Labor Relations Board has delegated its powers in connection with this case to a three- member panel. The Board has reviewed the rulings of the Trial Examiner made at the hearing and finds that no prejudicial error was committed. The rulings are hereby affirmed. The Board has considered the Trial Examiner's Decision and the entire record in these cases, including the exceptions and briefs, and finds merit in the General Counsel's excep- tions. Accordingly, the Board adopts the Trial Ex- aminer 's factual findings to the extent consistent herewith, but does not adopt his conclusions and recommendations. The essential facts in these cases are as follows: Charles Geyer and his son, Pete Geyer, were em- ployed by Respondent as truckdriver and helper, respectively, and made deliveries to customers, in Respondent's truck, of furniture sold in Respon- dent's retail home furnishing store. On a number of occasions Charles had requested a pay raise for himself and his son, but the requests were refused. As a result, Charles joined the Charging Union on July 28, 1969, and Pete on the next day, to obtain higher wages. On the latter date, July 29, Union Representatives Bernard and Keegan visited Respondent President Miller, and Bernard in- formed Miller that they represented the Geyers ' The facts set forth with respect to this July 29 meeting represent a synthesis of the testimony of Miller and the testimony of Bernard , as cor- roborated by Keegan, which differ in some detail but not in any real sub- stance The Trial Examiner does not make any credibility resolutions as to the minor discrepancies between the two versions , but sets forth both ver- sions and apparently relies on a synthesis of both versions , as we do 2 The Trial Examiner points to the facts that for some time in the past the who had just joined the Union. Bernard presented Miller with a proposed contract and requested that Miller have his attorney examine it and sign it. Miller refused to take the contract, saying he was not interested in any union or contract. Upon further urging by Bernard not to flatly refuse to "acknowledge" the Union and to take the matter up with the Respondent's directors because Miller said he had no attorney, Miller finally took the proposed contract and promised to let the Union know on the following Monday what was decided, with Bernard asking Miller not to do anything about the Geyers until then. While Miller testified that there was nothing said by the union representa- tives to lead him to believe that the proposed con- tract was negotiable, Bernard credibly testified without contradiction that he never told Miller the proposed contract was not negotiable.' On the next day, Wednesday, July 30, Miller asked the Geyers if they had signed union cards, to which each replied that he had. Miller then said, "Well, I am sorry you did that," adding, according to the credited testimony of both Geyers, "You are in trouble." On Saturday, August 2, Miller discharged the Geyers, and, according to their credited testimony, told them: "You brought this all on yourselves by sig- ning those cards and it's too bad"; "We could have gotten along fine, but you brought it on yourselves, you forced me to do it, I have got to go into this union thing now, and I have to go into shipping everything out, and we will just sell the truck, get rid of it and that is it"; "I don't know where you got hold of those fellows, they are nothing but gang- sters." On the following Monday, Miller advised Bernard that the Union's proposed contract was too costly, that Respondent had discharged the Geyers, and that Respondent was going to sell the truck and subcontract the delivery work which had been per- formed by the Geyers. Respondent sold the truck, subcontracted the Geyers' delivery work, and has had no further dealing with the Union. The Trial Examiner found that Respondent's discharge of the Geyers, its subcontracting of their work, and its refusal to recognize or bargain with the Union were not violative of Section 8(a)(3) or (5) on the grounds that such action was primarily motivated by economic reasons,' and that this case is controlled by Textile Workers Union v. Darlington Manufacturing Co., 380 U.S. 263, and A. C. Rochat Company, 163 NLRB 421.3 The Trial Examiner delivery service performed by the Geyers had been found to be costly, and the Union's proposed contract would make it even more costly 3 Applying Darlington and Rochat to the instant case , the Trial Examiner found no antiunion motive for Respondent 's conduct except as a direct in- cident of its "economic " reasons therefor , and no purpose to "chill" unionism elsewhere in Respondent 's establishment 183 NLRB No. 136 WALKER COMPANY 1323 found further that the single inquisitory act with respect to the Geyers was not unlawful interroga- tion under the Struksnes case .4 We disagree. It is clear, and we find, contrary to the Trial Ex- aminer , that Respondent discharged Charles and Pete Geyer and subcontracted their work, because they had joined the Union, in violation of Section 8(a)(3); and that by such conduct, and Respon- dent's refusal to recognize the Union and bargain with it over the Union's proposed contract 5 and Respondent's failure to bargain with the Union over the contemplated subcontracting, Respondent re- jected the collective-bargaining principle, in viola- tion of Section 8(a)(5).1 It is also clear, and we find further, contrary to the Trial Examiner, that Respondent's interrogation of Charles and Pete Geyer as to whether they had joined the Union was a violation of Section 8(a)(1), because, assuming that this was a "polling " situation , Respondent did not comply with the requirements of the Struksnes case.7 CONCLUSIONS OF LAW 1. Chicago Truck Drivers, Chauffeurs, and Hel- pers Union of Chicago and Vicinity (Independent) is a labor organization within the meaning of the Act. 2. Respondent's delivery drivers and helpers, ex- cluding all other employees, professional em- ployees, guards, and supervisors as defined in the Act, constitute a unit appropriate for the purposes of collective bargaining within the meaning of Sec- tion 9(b) of the Act.' 3. At all times since July 29, 1969, the Union has been the exclusive bargaining representative of the employees in the unit described above for the purposes of collective bargaining.9 4. By unilaterally contracting its delivery work on August 4, 1969, without bargaining with the Union, Respondent violated Section 8(a)(5) and (1) of the Act. 5. Respondent since on or about August 4, 1969, and at all times thereafter , refused and has con- tinued to refuse to bargain collectively with the Union in violation of Section 8(a)(5) and (1) of the Act. 6. By discriminatorily discharging Charles Geyer and Pete Geyer on August 2, 1969, Respondent violated Section 8(a)(3) and (1) of the Act. 7. By coercively interrogating its employees con- cerning their union membership and activities, Respondent violated Section 8(a)(1) of the Act. THE REMEDY Having found that Respondent has engaged in certain unfair labor practices, we shall order it to cease and desist therefrom and take certain affir- mative action necessary to effectuate the policies of the Act. We have found that Respondent subcontracted its delivery operation and discharged its delivery employees, because they joined the Union and authorized the Union to bargain collectively on their behalf. Accordingly, we shall order that the Respondent reestablish that operation and reinstate its delivery employees.10 We shall also award them backpay based on the earnings which they normally would have received from the date of their discharge to the date of Respondent's offer of rein- statement , less any net interim earnings , which shall be computed on a quarterly basis, in the manner set forth in F. W. Woolworth Company, 90 NLRB 289, with interest at the rate of 6 percent annum as set forth in Isis Plumbing & Heating Co., 138 NLRB 716. ' Struksnes Construction Co , Inc , 165 NLRB 1062 ' The Union's demand that Respondent sign the proposed contract, even if backed up by the threat of picketing testified to by Miller, did not preclude negotiation on the proposed contract See Brown Transport Corp , 140 NLRB 954 , 956, 957 6 See Adkins Transfer Company, Inc, 109 NLRB 956, Brown-Dunkin Company, Inc, 125 NLRB 1379, The R C Mahon Company, 118 NLRB 1537, J M Lassing, et al, dlbla Consumers Gasoline Station , 126 NLRB 1041, Jays Foods, Inc, 129 NLRB 690, Brown Transport Corp, 140 NLRB 954 Fibreboard Paper Products Corp v N L R B, 379 U S 203 See also Metromedia , Inc (KLAC ), 182 NLRB 202, where the Board recently reaf- firmed the fundamental principle that an employer 's discharge of its em- ployees, and refusal to bargain with a union , for the asserted "economic" reason that dealing with the union would be more costly , violates Section 8(a)(3) and (5) The Trial Examiner was also in error in applying Darling- ton to this case . See Textile Workers Union Darlington Manufacturing Co , supra at 272, 273, fn 16, where the Supreme Court equated the antiunion subcontracting of part of an employer's operation , as here, with a "ru- naway" shop , and distinguished the two from the closing and discon- tinuance of part of an operation which was involved there Darlington and Rochat hold only that an employer may permanently close and discontinue a part of its operations even for antiunion reasons ( provided that it is not done to "chill " unionization in other parts of an employer 's operations), whereas Fibreboard and previous Board decisions cited above hold that an employer may not subcontract and thus c'ntinue in effect part of its opera- tions for antiunion reasons, as was done here Finally, we note that the Trial Examiner, at sec IV, E, 2d par , of his Decision , impliedly concedes that the discharge of the Geyers and the subcontracting of their work was at least partly motivated by a desire to thwart the Union, but erroneously finds, in effect , that such a discharge is not violative of Section 8(a)(3) See, e g , Town & Country Mfg Co , Inc v NLRB , 316 F 2d 846, 847 (C A 5), N L R B v Great Eastern Color Lithographic Corp, 309 F 2d 352, 355 (C A 2), cert denied 373 U S 950 ' Struksnes Construction Co , Inc , supra inter alia, Respondent not only did not give the Geyers assurances against reprisal , but on the contrary im- pliedly threatened them with reprisal, after they answered that they had joined the Union , by telling them Respondent was sorry they did that and they were "in trouble " This was a single mquisitory act, but it was directed against all employees in the unit ' The Geyers, the only driver and helper employed at the time of the de- mand for recognition , spent about 5 percent of their time loading the truck at the store , and the remaining 95 percent delivering the merchandise to customers There is no history of collective bargaining , and no union seeks to represent them in a storewide unit Accordingly, they may be represented in a separate unit J L Brandeis & Sons, Inc , 142 NLRB 825 As stated above, the only two employees in the unit , Charles and Pete Geyer, both joined the Union and authorized it to represent them , on July 28 and 29, 1969, respectively "See Brown Transport Corp, 140 NLRB 954, Trey Packing, Inc , 172 NLRB No 42 427-258 O-LT - 74 - 85 1324 DECISIONS OF NATIONAL LABOR RELATIONS BOARD We have further found that Respondent refused to recognize the Union and bargain with it over the Union's proposed contract, in violation of Section 8(a)(5). As we have decided to order resumption of the delivery operation and reinstatement of the delivery employees, we shall order that Respondent bargain collectively with the Union as the exclusive bargaining representative of its employees in the appropriate unit , and embody any understanding reached in a signed agreement." We have also found that Respondent violated Section 8(a)(5) by unilaterally subcontracting its delivery operation without bargaining with the Union over its decision to do so. We shall order that Respondent cease and desist from making such unilateral changes in the terms and conditions of employment of the delivery employees without first bargaining with their lawful collective- bargaining representatives. ORDER Upon the entire record in these cases, and pur- suant to Section 10(c) of the National Labor Rela- tions Act, as amended, the National Labor Rela- tions Board hereby orders that the Respondent, Walker Company, its officers, agents, successors, and assigns, shall: 1. Cease and desist from: (a) Refusing to bargain collectively with Chicago Truck Drivers, Chauffeurs, and Helpers Union of Chicago and Vicinity (Independent) as the exclusive bargaining representative of the Respondent's delivery drivers and helpers, exclud- ing all other employees, professional employees, guards, and supervisors as defined in the Act; and unilaterally subcontracting their work, or otherwise changing their wages, hours, and other terms and conditions of employment, without bargaining with the above-named Union or any other union which they may select as their exclusive representative. (b) Discouraging membership in Chicago Truck Drivers, Chauffeurs, and Helpers Union of Chicago and Vicinity (Independent), or any other organiza- tion of its employees, by discharging or otherwise discriminating against them in regard to their hire or tenure of employment of any other term or con- dition of employment. (c) Coercively interrogating its employees con- cerning their union membership. (d) In any other manner interfering with, restraining, or coercing its employees in the exer- cise of their right to self-organization, to form labor organizations, to join or assist Chicago Truck Drivers, Chauffeurs, and Helpers Union of Chicago and Vicinity (Independent), or any other labor or- ganization, to bargain collectively through representatives of their own choosing, and to en- gage in other concerted activities for the purpose of collective bargaining or other mutual aid or protec- tion, or to refrain from engaging in such activities. 2. Take the following affirmative action which the Board finds will effectuate the policies of the Act. (a) Reestablish its delivery operation and offer to Charles Geyer and Pete Geyer immediate and full reinstatement to their former jobs or, if those jobs no longer exist, to substantially equivalent positions, without prejudice to their seniority or other rights and privileges, and make each of them whole for any loss of earnings he may have suffered as a result of the discrimination against him in the manner provided in the section of this Decision and Order entitled "The Remedy." (b) Upon request, bargain collectively with Chicago Truck Drivers, Chauffeurs, and Helpers Union of Chicago and Vicinity (Independent) as the exclusive bargaining representative of all the employees in the appropriate unit, and embody any understanding reached in a signed agreement. (c) Preserve and, upon request, make available to the Board or its agents, for examination and copying, all payroll records, social security payment records, timecards, personnel records and reports, and all other records necessary to analyze the amount of backpay due and the rights of reinstate- ment under the terms of this Order. (d) Post at its store in Chicago, Illinois , copies of the attached notice marked "Appendix. 1112 Copies of said notice, on forms provided by the Regional Director for Region 13, after being duly signed by Respondent's 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 it to in- sure that said notices are not altered, defaced, or covered by any other material. (f) Notify the Regional Director for Region 13, in writing , within 20 days from the receipt of this Decision, what steps have been taken to comply herewith. " Respondent 's unfair labor practices destroyed the Union's majority and made a fair election impossible, and therefore clearly warrant a bar- gaining order under the Supreme Court decision in N L R B v Gissel Packing Co , 395 U S 575 " In the event that the Board's Order is enforced by a Judgment of a United States Court of Appeals , the words an 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 " WALKER COMPANY APPENDIX NOTICE TO EMPLOYEES POSTED BY ORDER OF THE NATIONAL LABOR RELATIONS BOARD An Agency of the United States Government WE WILL NOT refuse to bargain collectively with Chicago Truck Drivers, Chauffeurs, and Helpers Union of Chicago and Vicinity (Inde- pendent) as the exclusive bargaining represen- tative of all employees in the following bar- gaining unit: All delivery drivers and helpers, excluding all other employees, professional em- ployees, guards, and supervisors as defined in the Act. WE WILL NOT unilaterally subcontract our delivery work, or otherwise make changes in the wages, hours, and other terms and condi- tions of employment for the employees in the above-stated appropriate unit, without bargain- ing with Chicago Truck Drivers, Chauffeurs, and Helpers Union of Chicago and Vicinity (Independent), or any other labor organization which they may select as their exclusive bar- gaining representative. WE WILL NOT- discourage membership in Chicago Truck Drivers, Chauffeurs, and Hel- pers Union of Chicago and Vicinity (Indepen- dent), or any other labor organization of our employees, by discharging them, or in any other manner discriminating in regard to their hire or tenure of employment of any term or condition of employment. WE WILL NOT coercively interrogate our em- ployees concerning their union membership or other union activities. WE WILL NOT in any other manner interfere with, restrain, or coerce our employees in the exercise of their right to self-organization, to form labor organizations, to join or assist said union, or any other labor organization, to bar- gain collectively through representatives of their own choosing, or to engage in other con- certed activities for the purpose of collective bargaining or other mutual aid or protection, or to refrain from any or all such activities. WE WILL bargain, upon request, with the above-named Union as your exclusive representative in the appropriate unit with respect to wages, hours, and other terms and 1325 conditions of employment, and, if an un- derstanding is reached, embody it in a signed agreement. WE WILL offer to Charles Geyer and Pete Geyer immediate and full reinstatement to their former jobs or, if those jobs no longer ex- ist, to substatially equivalent positions, without prejudice to their seniority or other rights and privileges, and make each of them whole for any loss of pay he may have suffered as a result of our discrimination against him. All our employees are free to become, remain, or to refrain from becoming or remaining, members in good standing of any labor organization. WALKER COMPANY (Employer) Dated By (Representative ) (Title) This is an official notice and must not be defaced by anyone. This notice must remain posted for 60 consecu- tive days from the date of posting and must not be altered, defaced, or covered by any other material. Any questions concerning this notice or com- pliance with its provisions may be directed to the Board's Office, 881 U. S. Courthouse and Federal Office Building, 219 South Dearborn Street, Chicago, Illinois 60604, Telephone 312-353-7597. TRIAL EXAMINER'S DECISION STATEMENT OF THE CASE THOMAS F. MAHER, Trial Examiner: Upon a charge and an amendment thereto filed on Sep- tember 8 and 10, 1969, respectively, by Chicago Truck Drivers, Chauffeurs, and Helpers Union of Chicago and Vicinity (Independent) against Walker Company, Respondent herein, the Regional Director for Region 13 of the National Labor Rela- tions Board, herein referred to as the Board, issued a complaint on behalf of the General Counsel of the Board alleging violations of Section 8(a)(1), (3), and (5) of the National Labor Relations Act, as amended (29 U.S.C., Sec. 151, et seq.), herein called the Act. In its duly filed answer, Respondent, while admitting certain allegations of the com- plaint, denied the commission of any unfair labor practice. Pursuant to notice, a trial was held before me in Chicago, Illinois, where all parties were present, were represented by counsel, and were afforded full 1326 DECISIONS OF NATIONAL LABOR RELATIONS BOARD opportunity to be heard, present oral argument, and file briefs with me. Briefs were fled on December 1, 1969. Upon consideration of the entire record, includ- ing the briefs filed with me, and specifically upon my observation of each witness appearing before me,' I make the following: FINDINGS OF FACT AND CONCLUSIONS OF LAW 1. THE BUSINESS OF THE RESPONDENT Walker Company is an Illinois corporation with its office and principal place of business located in Oak Park, Illinois , where it maintains a retail store and is there engaged in the retail sale of household furniture and hardware items. During the last calen- dar year it derived a gross revenue in excess of $500,000 from the sale of goods at its Oak Park store. During the same annual period, in the course and conduct of its business operations, it has purchased and caused to be shipped directly to its Oak Park, Illinois, store from points outside the State of Illinois goods and materials valued in ex- cess of $50,000. Upon the foregoing facts admitted by Respondent, I conclude and find it to be an em- ployer engaged in commerce within the meaning of Section 2(6) and (7) of the Act. II. THE LABOR ORGANIZATION INVOLVED Chicago Truck Drivers, Chauffeurs and Helpers Union of Chicago and Vicinity (Independent), the Charging Union herein, has been shown by credible evidence in the record to be an organization ac- cepting employees to membership and bargaining collectively in their behalf with their respective em- ployers. I accordingly conclude and find it to be a labor organization within the meaning of Section 2(5) of the Act. III. THE ISSUE The right of an employer to dispose of a part of its business and terminate employees as a con- sequence for economic reasons in the face of a union 's request for recognition and bargaining. IV. THE ALLEGED UNFAIR LABOR PRACTICES FACTS A. The Company's Delivery Operations The Respondent, a retail home furnishing store, served the Chicago suburban area and provided a delivery service which forms the basis of this proceeding. Although the delivery of heavier and larger pieces of furniture was contracted to Likata Moving and Storage Co., the remainder of the deliveries had been made with the Company's own truck over an extensive suburban area. According to a survey made by the Company in 1968, its delivery services were found to be unprofitable. As a consequence, in February 1969 United Parcel Service (UPS) was awarded the delivery contract for all except packages addressed to the nearby Oak Park and River Forest communities. These latter deliveries continued to be made in the com- pany truck which, with the company name prominently displayed, was deemed to be of com- pensating prestige value and worth the loss incurred in maintaining the vehicle and retaining its driver and helper. Thus it was determined by Respondent that the UPS cost per package was 67 cents con- trasted with $2 per package delivered by its own truck and driver. Charles R. Geyer had been employed as truckdriver since September 1965 and his son, Pete Geyer, as helper since March 1969. At the time of termination Charles Geyer's hourly pay was $2.25 and Pete Geyer's was $1.75. On a number of occa- sions prior to mid-July 1969 Charles Geyer had requested a raise in pay for both himself and his son. On each occasion, however, his request was refused; Company President Edward C. Miller on one occasion detailing the high cost of deliveries and the excessive amount of overtime involved. Finally, in mid-July when overtime costs did not decline, despite the increased use of United Parcel Service, Miller directed Geyer to return the truck to the store by 5:30 every day, regardless of delive- ries still to be made, and, should he be able to make his deliveries and return before 5:30 on any day he would still be paid his full 8-hour day, thus assuring the crew a full 40-hour week. B. The Union's Appearance Shortly after Miller rejected the Geyers' request for a raise they visited the Union's office and met with Union Representative Bernard Bernard. After Bernard fully explained the benefits to be derived from union membership and assured them that he would speak to their Employer in their behalf to obtain higher wages both employees signed union application cards. Charles Geyer signed his card on July 28, 1969, and Pete Geyer signed his on the fol- lowing day, July 29. Each credibly testified that he read the contents of the card before signing it. On the same day that Pete Geyer signed his union application, Union Representative Bernard in the company of Field Representative Michael Keegan visited with President Miller at his office. After introducing themselves Bernard informed Miller that they were representing the Geyers who had just joined the Union. When Miller asked to see the cards, Bernard refused. Instead he presented Miller with what was referred to as a "booklet," saying, to quote Miller's account of the incident, "Have your attorney examine this and 'See Buho p and Malco, Inc, d/bla Walter's, 159 NLRB 1159,1161 WALKER COMPANY 1327 sign it within 48 hours. "2 When Miller protested, saying he was not interested in a union, one of the representatives told him, again according to Miller, that if he did not sign they would picket his establishment.3 Miller, reconsidering his earlier outright rejection stated, "All right, I'll take the form, but I can't let you know within 48 hours. We don't have our meeting until Saturday," referring to the weekly meeting of the Company's directors. Whereupon the union representatives agreed to a call on Monday and left. Miller called Bernard on the following Monday, August 4, and informed him that upon receiving the contract the Company found it to be too costly and the only thing left for them to do was to turn all the deliveries over to United Parcel and Likata. When asked by Bernard what had happened to the driver and helper Miller replied that they had been terminated; the Geyers receiving 12 weeks' severance pay and the truck was to be sold. The Company has since disposed of the truck. C. The Termination of Charles and Pete Geyer After the Geyers had joined the Union and its representatives , Bernard and Keegan, had sought recognition and bargaining in their behalf, the Company reacted promptly. On the next day, Wed- nesday , July 30, Miller sought out the Geyers and asked both Charles and Pete if they had signed union cards , to which each replied that he had. Miller then said , " Well, I am sorry you did that." Adding , according to the credited testimony of both Geyers, " You are in trouble." Nothing appears to have transpired between Miller and the Geyers from that Wednesday until Saturday , August 2, that date on which Miller had told the union people he would consult with the Company 's directors (supra ). When Charles and Pete Geyer returned with the truck on late Satur- day afternoon , August 2, Miller was waiting for them . Miller testified that he told Geyer he was sorry that " this" had happened but the Company was left with no alternative but to sell the truck and contract all the deliveries to United Parcel and Likata . Charles Geyer , corroborated by Pete Geyer, credibly described the incident thus: When he checked in for the day the cashier told Geyer that Miller wanted to see him and Pete before they left. When Geyer appeared Miller asked if he had parked the truck for the day. When Geyer told him that he had not Miller told him to put it in the garage and he would meet them there. Miller was waiting for them in the garage and as Geyer and his son got out of the truck Miller inquired if they had taken their personal belongings from the truck. Then, according to Geyer he stated: "Okay, now, I'm sorry about this," he says, "I don't know what to tell you,"he says, "You brought this all on yourselves by signing those cards and it's too bad," he says. "We could have gotten along fine, but you brought it on yourselves, you forced me to do it, I have got to go into this union thing now, and I have to go into shipping everything out, and we will just sell the truck, get rid of it, and that is it." Then he said, "It's all over, and he says, "I've got to-this envelope for,you Charlie and there is a statement in there which shows everything, what it is now." We had just received our paycheck at the end of the month, but we had the first and second, two days, and he added that to a check which he called-what do they call that check when-when it's the end of the job? TRIAL EXAMINER: Severance pay? He says, "That is for two weeks' pay, $90, at two and a quarter a week-an hour-he says, "$90-$180," he says, "plus your two days, and then I have deducted some money that you owe us on a TV that you still owe a balance on.,, "It's all in there," he says, "you can check it out," so-well, it was, it was okay. Then I said-now, as I said,-he said, "I'm sorry about it, and Pete, here's yours," he says. "Two days or whatever you have coming over the first of the month." Before we got through, I says, "Well, Mr. Miller, you know, I don't like it either because I asked a couple of times for a little better pay and you said it couldn't be done and I said well it's hard to make it on that kind of pay but you said yes, but you know Charlie you brought it ' Miller 's account of this meeting differs from Bernard 's and Keegan's Thus Bernard 's version , as corroborated by Keegan I told him , well, I said, "Before you flatly refuse to acknowledge us," I said , "would you please take this contract ," a copy of which I was holding in my hand , " present it to your attorney , because we have signed cards from both the driver and the helper, and have your attor- ney read it over " "We don't have an attorney ," he said I said, "Well, who do you consult whenever there is a major decision to be made9" He says, "Well, we have a board that meets on Saturdays ," I believe this was on a Tuesday , and I said , "Well, before you again flatly refuse to accept this," I said, "take it and consult with your board members and notify me on the following as to what you decide." Again , he refused to accept this, he said , " Well, no, I don't see any real reason for this," he said, "because, as far as I'm concerned," he said , " Charlie Geyer and Pete Geyer are not very good employees any way." He led me to believe the only reason that he kept Pete Geyer was as a favor to Charlie Geyer, and I said , "What do you mean, they are not good employees9" I said , "They done their work," and he said , "Yes, they have done their work," and I said, "What 's seems to be the thing9 " He said, "We can't afford your rates " I said, "You haven 't even looked at the book " He said , " I know we can't afford your rates, we can 't afford to, your rates are bad news," and I said , "Well, berore you flatly refuse, again , I am asking you to please take a copy of this and consult with your board or whoever you consult with, and let me know on Monday what you decide " He took a copy of the contract from me and I believe at this time, he mentioned that he would talk to his people and then they would let me know and I said, "Whatever you decide , don't do anything with these employees until you talk with me Monday " Bernard made no reference to picketing in his testimony Keegan testified that he did not say anything about picketing 1328 DECISIONS OF NATIONAL LABOR RELATIONS BOARD on yourselves, I have no choice, you brought me into this situation in the first place, I don't know where you ever got hold of them fellows anyway," he said, "My God," he didn't say God-but whatever-"I don't know where you got hold of these fellows, they are nothing but gangsters ," and I said I didn't know they were that bad and he said-I said, "These are union men." No more was said about it. I said, "Mr. Miller, would there be a chance of a recommendation for another job?" And he says, "Well, Charlie, I feel this way, I know you are honest and I can recommend you as being very honest, but I don't think I could go any further than that because I do think you are too slow and you know anyplace you go for a job they are going to expect somebody who can move faster than you.' I had never had that before, there had been compliments about my work, but the pay couldn't be raised, the profit, the profit margin wasn 't there. Both Charles and Pete Geyer left Respondent's premises and have not since been employed there. Respondent, after notifying the Union of its action, as described above (sec. IV, B, supra), has had no further dealing with it. D. The Nature of the Union's Request When Field Representative Bernard requested recognition as the driver's and helper's bargaining representative, he presented Miller with a docu- ment which purported to be the Union's proposal for a collective agreement. Because it is Respon- dent's contention that this document forms its basis for the action it thereafter took (selling the truck and terminating the Geyers) a consideration of it would be appropriate at this time. The document in question consists of 28 printed pages and bore a covering page on which was in- cluded the following inscription: CHICAGO TRUCKDRIVERS CHAUFFEURS AND HELPERS UNION OF CHICAGO AND VICINITY (INDEPENDENT) WAGE AGREEMENT COVERING EMPLOYEES OF PRIVATE CARRIERS OF PROPERTY BY MOTOR VEHICLE for the period from APRIL 1, 1967 THROUGH MARCH 31, 1970 On the last page of the document was inscribed the facsimile signature of the Union's executive director. Space was provided on the same page for the signatures of representatives of the employer. Union Representative Bernard quite properly identified this document as a contract. Thus when he testified to his conversation with President Miller he testified that he asked him "whether they would sign a contract with us which, of course, is what I had." By way of further describing the document, it in- cluded the usual recognition clause; provision for dues checkoff; a union shop; specific vacation and holiday provisions; seniority rights; layoff pro- cedures; safety rules; health, welfare, and pen- sion funds; grievance procedures; and a specific wage scale. President Miller credibly testified that when Bernard presented him with this document he asked him to sign it, thus corroborating Bernard's own testimony. There is no testimony that either Bernard or Keegan offered to negotiate concerning matters contained in the document that they agreed to. In fact Miller testified that he understood the contrary. When questioned at the hearing concern- ing this Bernard testified that he did not consider the wages printed in the document as being negoti- able. When asked if he was prepared to negotiate with this employer, his reply was, "I couldn't." The executive director, whose signature already appears on the document, was the only one who could make any changes and Bernard had no idea what had been done in such matters in the past. Bernard further testified that no consideration had been given to the Company's financial situation in presenting it with the contract, and that the wages printed in the contract were deemed to be minimums. Finally there is uncontradicted testimony by the same official that there are 1,500 similar contracts with the Union outstanding in the Chicago area, that he knows of none in which the wage scale is less than that printed in the booklet presented the Company, nor does he know of any instance in which the Union's executive director intervened to alter the terms of the printed agreement. E. Analysis and Conclusions At the outset it must be understood that economic considerations were at the base of Respondent's delivery problems for some time in the past. Thus a year ago it surveyed the situation, found an unprofitable operation, and sought to remedy it by subcontracting a portion to United Parcel. Subsequent experience disclosed only minimal improvement, with loss still incurred with the company-owned truck. In this regard the record is replete with testimony concerning efforts to save money in the operation involving the Geyers, in- cluding the curtailment of their overtime and the refusal of wage increases. This, it must be emphasized, was the economic situation when the Union requested recognition coupled with a request for acceptance of an agreement that on its face would double the wage cost of the delivery service. Against such a background as I have detailed above it cannot be said that the resulting termina- tion of the driver and helper, the subcontracting to United Parcel, and the selling of the truck was sole- ly motivated by a desire to thwart the Union. On the contrary the evidence clearly establishes and I WALKER COMPANY 1329 conclude and find that it was the economic con- siderations which I have detailed above that sup- plied Respondent its primary motivation to take the action it took. The United States Supreme Court has held that it is not an unfair labor practice for an employer to shut down part of its business permanently for an- tiunion reasons unless the partial closing was motivated by a purpose to "chill unionism" in any of the remaining parts of its business.4 In the instant proceeding it has not, in the first instance, been established that the delivery service was shut down for "antiunion reasons," except as a direct incident of conceded economic necessity. Hence, we have not, as in Darlington, an expressed antiunion mo- tive. Nor, as required by Darlington, do I find a pur- pose to "chill" unionism elsewhere in the em- ployer's establishment. Indeed, there is no evidence whatever that the incident herein ever came to the attention of store employees in any context except the economic one that had been plaguing the delivery service for so long. Moreover, the em- ployees of both Likata and United Parcel were known to be union members and President Miller so reminded the union representatives when he re- jected their request for recognition and bargaining. Under the foregoing circumstances, therefore, and as a consequence of the findings and conclu- sions I have made, I find this case to be controlled by the Darlington decision and by the Board's in- terpretation of that decision in A. C. Rochat Com- pany.5 I accordingly conclude and find that the ter- mination of Charles and Pete Geyer was not a violation of Section 8(a)(3) of the Act, and that following their termination, its refusal, and the con- sequent evaporation of the unit to recognize and negotiate with the Union was not a violation of Sec- tion 8(a)(5).6 One remaining facet of this case must be con- sidered: namely, the allegation that Respondent un- lawfully interrogated the Geyers. It will be recalled that when the union representatives requested recognition they told Respondent President Miller they had the signed applications in their possession, but upon request refused to show them. Under such circumstances the employer would be expected to do the next best thing short of going to an election, and that would be to inquire of the only two em- ployees in the unit if they had signed applications. I am not persuaded that this single inquisitory act constitutes the unlawful interference, restraint, or coercion contemplated by the Act and under all the circumstances herein would not find such to be a violation of Section 8(a)(1).' RECOMMENDED ORDER It is recommended that the complaint in this matter be dismissed in its entirety. 4 Textile Workers Union v Darlington Manufacturing Co, 380 U S 263, A C Rochat Company, 163 NLRB 421 5 163 NLRB 421 e In the posture of the case which places no obligation to bargain with the Union I find it unnecessary to consider Respondent 's defense to its refusal to negotiate based on the Union's predetermined and fixed demands and its "take it or leave it " approach ' Cf Struksnes Construction Co , Inc, 165 NLRB 1062 Copy with citationCopy as parenthetical citation