WGN of Colorado, Inc.Download PDFNational Labor Relations Board - Board DecisionsOct 26, 1972199 N.L.R.B. 1053 (N.L.R.B. 1972) Copy Citation WGN OF COLORADO 1053 WGN of Colorado, Inc. and Local Union No. 1823, International Brotherhood of Electrical Workers, AFL-CIO. Case 27-CA-3207 October 26, 1972 DECISION AND ORDER BY CHAIRMAN MILLER AND MEMBERS KENNEDY AND PENELLO On April 11, 1972, Administrative Law Judge 1 E. Don Wilson issued the attached Decision in this proceeding. Thereafter, the General Counsel filed ex- ceptions and a supporting brief, and the Respondent filed a brief in support of the Administrative Law Judge's Decision. Pursuant to the provisions of Section 3(b) of the National Labor Relations Act, as amended, the Na- tional Labor Relations Board has delegated its au- thority in this proceeding to a three-member panel. The Board has considered the record and the attached Decision in light of the exceptions and briefs and has decided to affirm the rulings, findings, and conclusions of the Administrative Law Judge, as here- in modified, and to adopt his recommended Order. The Administrative Law Judge found and con- cluded that the Respondent did not violate Section 8(a)(3) and (1) of the Act by locking out its employees at a time Respondent reasonably anticipated a strike and by thereafter continuing business operations with the use of its employees not covered by the expired contract and supervisors from the parent Chicago sta- tion. We agree with his conclusions that the lockout and subsequent continuation of operations with em- ployees not covered by the expired contract and su- pervisors from the parent Chicago station in the circumstances here did not violate Section 8(a)(3) and (1) of the Act. We so find for those same reasons fully set, forth in our recent decision in Ottawa Silica Com- pany.2 Thus, absent antiunion motivation, which is not shown here, an employer does not violate Section 8(a)(3) or (1) of the Act by hiring temporary replace- ments to continue operations during an otherwise lawful lockout. of the lockout, which is dealt with extensively by the Administrative Law Judge, is not, in our view , controlling or even materially relevent to the issue of the legality of the lockout . Members Kennedy and Penello would also find it unnecessary to resolve this issue in order to determine the legality of the use of temporary replacements, since , as they have previously indicated, they would in any event overrule Inland Trucking Co. and Wesley Meilahn, Co- Partners, d/bla Oshkosh Ready-Mix Co, 179 NLRB 350. On this latter issue, however, Chairman Miller continues to be of the view that N. L.R B. v Brown Food Stores, 380 U.S . 278, requires an examination of the several factors referred to in the Court 's opinion in that case in order to determine whether the use of replacements in any given case is violative of the Act He would, therefore , concur in the analysis with respect to the use of replacements, including affirming his finding that the defensive nature of the lockout here is one of the several relevant factors weighing in favor of the use of replace- ments in the particular circumstances of this case. TRIAL EXAMINER'S DECISION STATEMENT OF THE CASE E. DON WILSON, Trial Examiner : Pursuant to due no- tice , a hearing in this case was held before me on November 30, 1971, at Denver , Colorado. A complaint and notice of hearing was issued by the General Counsel of the National Labor Relations Board, herein the Board, on July 26, 1971, upon a charge filed on March 29 , 1971, by Local Union No. 1823 , International Brotherhood of Electrical Workers, AFL-CIO, herein the Union , against WGN of Colorado, Inc., herein Respondent . The complaint alleged that Re- spondent violated Section 8(a)(3) and (1) of the National Labor Relations Act, herem the Act, by various acts herein- after discussed. The parties fully participated in the hearing . General Counsel and Respondent filed briefs on January 17, 1972, and they have been fully considered. Upon the entire record in the case and from my obser- vation of the witnesses , I make the following: FINDINGS OF FACT 1. RESPONDENTS BUSINESS Respondent is a Delaware corporation and a wholly owned subsidiary of WGN Broadcasting Company of Chi- cago, Illinois. Its principal office is at Denver, Colorado, where at all material times it has been engaged in the opera- tion of television broadcasting stations. Annually, in the course and conduct of its operations, it has an income in excess of $100,000 and income in excess of $30,000 from national advertisers . It is an employer engaged in commerce within the meaning of the Act. ORDER Pursuant to Section 10(c) of the National Labor Relations Act, as amended, the National Labor Rela- tions Board hereby orders that the complaint herein be, and it hereby is, dismissed in its entirety. "The title of "Trial Examiner" was changed to "Administrative Law Judge" effective August 19, 1972 2 197 NLRB No. 53. The issue as to the "offensive" or "defensive" nature II THE LABOR ORGANIZATION At all material times, the Union has been a labor organization within the meaning of the Act. III THE ALLEGED UNFAIR LABOR PRACTICES A. The Issues The issues include whether a lockout by Respondent of its unit employees, in the circumstances of this case, on 199 NLRB No. 169 1054 DECISIONS OF NATIONAL LABOR RELATIONS BOARD or about March 6, 1971,1 and its continuance of the work normally performed by such employees through the use of nonunit employees and members of its own management personnel and those from a parent television station, consti- tuted violations of Section 8(a)(3) and (1) of the Act. The lockout and use of such replacements lasted about 5 days. B. Background Respondent operates under a license from the Federal Communications Commission which provides, among other things: The licensee shall, during the term of this license, ren- der such broadcasting service as will serve public inter- est, convenience, or necessity to the full extent of the privileges herein conferred [Emphasis supplied.] The Union has been the collective-bargaining repre- sentative of technicians employed by Respondent and its predecessors in an appropriate unit for almost 20 years, during which time ownership changed from time to time, Respondent becoming owner in 1966. Respondent's parent corporation, WGN Continental Broadcasting Company, has owned and operated television and radio stations in Chicago, Illinois, for a long period of time. Respondent and its parent have recognized unions for many years, and as of early 1971, no complaint alleging an unfair labor practice had at any time been issued against Respondent or its par- ent. As of that time, neither had ever had a strike. When Respondent took over in 1966, it assumed an existing contract with the Union and thereafter negotiated and entered into two 2-year contracts with the Union, the second covering the period from March 1, 1969, through February 28, 1971. It provided for automatic renewal. In December 1970 Respondent advised the Union of its desire to amend and modify the expiring contract. The Union later, but still in December, notified Respondent it wished to terminate the contract as of March 1, and to renew it with changes to be outlined in the future. C. Bargaining the Lockout with Replacements, and the Lockout's Termination. The parties first met on February 10, exchanging pro- posals. Respondent requested a delay in the next meeting until after February 21, to permit the conclusion of an arbi- tration scheduled for February 19. The Union protested any such delay, stating that based on past experience, about 10 meetings were required to work out an agreement. Dennis L. Thuis, the Union's business manager , testi- fied that at this meeting he told Respondent "that the time was late, that the contract did expire as of March 1, and that the employees did not want to work without a contract beyond March 1." He further testified that an employee member of the Union's negotiating'committee, Cam Sheff- ner, told Respondent's representatives he had taken a straw vote of the employees covered by the soon to expire contract and "they did not want to work without a contract." Thuis further testified that prior to this meeting he had never indi- cated to anyone an intention to have a strike if an agreement was not reached by March 1. In fact, on January 25, Thuis notified the Industrial Commission of Colorado that Respondent's employees covered by the contract intended to strike on or after March 1 because of a dispute over wages and working conditions? The contradiction is obvious. Thuis attempted to explain that the Notice of Intent to Strike was not such a notice, "As far as the Union is con- cerned, it is not actually an intent to strike, it is a legal requirement of the state laws of Colorado." Thuis further testified that "the company always gets a copy." I find that on or about January 26 or before the first meeting Respon- dent knew that the Union had notified the State of its intent to strike Respondent on or after March 1. Thuis never noti- fied Respondent that the Union's notice of intent was a mere formality. At the last negotiation meeting in February, February 26, the Union did not request that the contract be extended. A further meeting was set up for March 4. Indeed at no time did the Union ask for an extension of the con- tract. Instead of Thuis' and Sheffner's statements at the Feb- ruary 10 meeting being as testified by Thuis, i.e., that the employees did not "want" to work after March 1 without a contract, I find they were much stronger. I find Sheffner, in substance, stated at least that his poll revealed 80 percent of the men were either reluctant to or they would not work without a contract. Robert P. Irving credibly testified Sheff- ner said there had been a strike vote and 80 percent of the men had voted in favor of striking on March 1. Irving was the manager of personnel and industrial relations for Respondent's parent corporation and its subsidiaries. He dealt with seven unions, with one since the early 1930's. Irving further credibly testified that at the February 10 ne- gotiation meeting Thuis stated, "if an agreement is not reached by March 1, the men are walking off the job." This was a statement of intent by Thuis rather than a mere state- ment of desire. Thuis, at Irving's request, repeated the same statement and Irving wrote it ddivn. Two days later, Irving wrote various officials a memorandum in which he quoted Thuis' exact words, as above. In the same memo he reported Sheffner's statement that 80 percent of the men had voted to strike as of March 1. He further noted that in all his years of negotiations this had been the first time he had been given "an ultimatum at the first bargaining session." Such almost contemporaneous writing lends much corroboration to Irving's otherwise credited testimony. Thuis later testified that Sheffner indicated that as a result of a straw vote among the employees he learned 80 percent of them would not work beyond March 1 without a contract. Thuis also testi- fied that he couldn't be absolutely sure as to Sheffner's exact words. Michael L. Cannon, a member of the employees' nego- tiation team, testified that Thuis, at this first meeting, said, "the men didn't want to work after the contract had termi- nated." He testified Thuis repeated his statement exactly as he had before. He quoted Thuis as saying the men did not want to work without a contract. Donald E. Raydon, Respondent's chief engineer and vice president, credibly testified that at the February 10 meeting Thuis stated the men had decided that if they didn't have a signed contract by March 1 they were walking off the 1 Hereinafter all dates refer to 1971 unless otherwise stated. 2 Resp. Exh. 1. WGN OF COLORADO 1055 job. At that time, Respondent had the Union's letter stating it wished to terminate the contract, and a notice of the Union's intent to strike, received from the State. Raydon made notes at the meeting of what was said . They are in evidence .3 Item numbered 4 corroborates further Irving's and Raydon's credited testimony. It was made contempora- neously with Thuis' statement about the men not working after March 1. It reads, "Union states no contract-no work policy. Will not work as of 3/1 without new contract." I have not the slightest doubt that at this first meeting Thuis made it clear that the men would not work after March 1. Without a contract-they would strike. There were six more negotiation meetings in February, the last being on February 26. The parties were then apart on the duration of a new contract and the issue of whether there would be a union or open shop. After the first meeting, the Union never said it would not strike.4 At the February 26 meeting, after morning discussions and a union caucus, a Federal mediator appeared at 2 p.m. at the request of the Union and there were further discussions and the meeting ended with no further meeting set up, the parties to be at the convenience of the mediator. Raydon credibly testified that at the end of that meeting, Respondent was firmly convinced the Union planned to strike on March 1. There had never been a withdrawal of the February 10 union threats to do so. On February 26 Respondent, knowing that the contract would expire on. February 28, Sunday night, had the administrative supervisor of radio-television trans- mission from Chicago come to Denver in anticipation of a probable strike. He was to operate the transmitter if there were a strike. Other station employees and members of management were designated to work. The employees did not strike on March 1. The union employees continued working and the mediator called a meeting for March 4. There was a morning meeting. In the afternoon, Respondent reiterated its final offer-3 year contract and open shop. After caucuses, the Union was told that if it did not accept Respondent's offer by 1 a.m. on March 6, there would be a lockout. The Union at no time suggested an extension of the contract or stated it would not strike. The reason Respondent stated there would be a lock- out if its offer was not accepted was because the Colorado State Basketball Tournament was to be played on the week- end. This was a very "big feature" for Respondent which had been televising it every year since 1966. It was "the single most profitable feature" Respondent put on during the year. Also, it was a broadcast Respondent had put in its license renewal application to show the FCC that Respon- dent was serving the public interest .5 The broadcast, unlike the ordinary programs of Respondent, reached all over Col- orado through other television stations and cable systems. The poeple of the entire State could tune in and see their sons, cousins, other relatives, friends, and their high schools playing basketball. The broadcast attracted many interested viewers. Respondent believed the broadcast had a high rate of interest in the State and that the broadcast attracted "the prestige public service type of advertisers, the Public Service 3 Resp . Exh. 9. ° Nor did it repeat that it would strike. 5 See Resp. Exh 6. Company of Colorado, the Mountain Bell Telephone Com- pany, First National Bank of Denver, Continental Oil Com- pany. These people obviously felt that this was a great interest program which would reach a wide audience, or they wouldn't have put their advertising dollars into the program." Such was the credited testimony of Donald E. Raydon. It was the "high point of the youth sports activity in Colorado. Newspaper wise, radio wise, television wise, it attracts far more attention than anything else that's done for high school youth, and it comes at a time of the year when things are in the doldrums with the kids. Spring is starting to get here and anything we can do to encourage them to watch and participate or look forward to maybe next year they would be there helps us just that much from the public service viewpoint." The hall where the tournament was to be played had a capacity of about 11,000, almost always filled. It is obvious to me and I find that not only was the television broadcast of this 2-day event of great economic importance to Respondent and the sponsors of the broad- cast but also that the broadcast performed a real and great public service and convenience to the people of Colorado. Respondent's management , under these circumstances, quite properly and reasonably believed it could not take a chance on not being able to televise it. Bearing in mind the Union's declared intention to strike at the first bargaining meeting, never withdrawn, Respondent reasonably and ac- tually believed that any strike would occur on the days the tournament was to be telecast, March 12 and 13 .6 The Un- ion had never asked for an extension of the old contract during bargaining. As Irving credibly testified, Respondent believed that in the absence of a lockout, the Union would choose the days of the tournament for a strike. Respondent was convinced that the Union would procrastinate and de- lay any agreement until the tournament when it could call a strike which would have not only most serious and adverse impact upon Respondent and its sponsors but also most seriously disservice the people of Colorado. Reasonably anticipating such a strike, Respondent knew that it would have to begin protective action by March 6. Those who would operate during the reasonably antic- ipated strike were relatively inexperienced and needed time and training properly to function. It was believed the strike would take place on the Wednesday before the tournament. Those who would operate would have to be in Denver earli- er and check out equipment and utilize the first part of the week for planning and checking out equipment. Saturday was chosen as the day,to begin the lockout because on Saturday and Sunday it was easier for inexperienced people to learn the operation of the station since videotape and film were run until 9 p.m. It was reasonably believed that by Monday, Respondent would have people who were able to run the station and then time could be devoted to making plans for the tournament. Employees not covered by the expired contract and supervisors from the parent Chicago station and of Respondent were utilized. As the days of the tournament came closer, more executive personnel were brought in from Chicago. By March 10, the "color van" was ready and brought to the Coliseum so that equipment could be set up. Some such work was done but the van was . 6 Thus exerting great economic pressure upon Respondent. 1056 DECISIONS OF NATIONAL LABOR RELATIONS BOARD brought back that night. They returned on March 11 and continued to "set up." There was picketing. The Union and Respondent met at 4:30 p.m. that day. Respondent said it was not going to negotiate at that meeting but wanted to talk about televising the tournament and it had heard some of the men "wanted to do the tournament." Respondent stated that if the men would "guarantee to do the tourna- ment, we would lift the lockout." The union representative said they would take it to the men for a vote. At 1:30 a.m. on Friday, March 12, Raydon was called and was told the men had voted in favor of returning to work. They guaran- teed to do the tournament, if Respondent would lift the lockout. Respondent did so. When the station opened on March 12, the Union men ran the station and handled the pickup of the tournament' Between March 12 when the men returned to work and May 13, when an agreement was reached, there were four or five bargaining meetings between the parties. The Union got its union shop and Respondent got a 2-1/2 year con- tract, to keep the termination date more than 5 months away from the basketball tournament. Respondent considered the basketball tournament, fi- nancially and as of interest to the people of the State, as its "Number 1" broadcast. I am convinced, based upon the entire record, that Respondent has established it was entirely free from any antiunion motivation in locking out the employees and op- erating for a few days with nonunit employees and execu- tives of Respondent or its parent station. Such is abundantly clear to me from the fact that the lockout was lifted as soon as the Union guaranteed its members would work the tour- nament. Respondent's sole reasons for the lockout were its own economic interests,8 the economic interest of its spon- sors, the intense interest of the people of Colorado in seeing the tournament even if they could not attend in person, and Respondent's concern for its commitments to the FCC and its vital interest in preserving its license. Respondent's prime concern was in fulfilling its job of broadcasting the tourna- ment, and it had valid reasons to believe the Union would choose the dates of the tournament to strike. To have await- ed such a strike, and had such occurred, the tournament would not have been televised since Respondent would not have had sufficient time for preparation. The lockout oc- curred solely to protect economic interests of Respondent and the sponsors and to guarantee the telecast of an event clothed with intense public interest and convenience. The record is devoid of any evidence that the Union ever with- drew from its stated position that it would strike. That it did not strike on March 1 does not mean Respondent was not eminently reasonable in believing the Union would choose the critical days of the tournament for using its economic strength as threatened at the start of negotiations. There is nothing in the record which would justify me in second- guessing Respondent and substituting my judgment for its 7 That Respondent was not unreasonable in expecting a "quickie strike" is confirmed at least by hindsight, in the fact that the Union called a strike on April 3, with no advance notice , the station losing about 8 hours of broadcast time . The strike lasted until April 26., 9 Which might have been much more serious than those involved only in the 2 days It might have adversely affected its whole image of reliability with sponsors and the FCC. considered business judgment as to what action the Union would take on the days of the tournament. Again, I am convinced that Respondent utilized the lockout only as a defense to the threatened strike which, while not occurring on March 1, seemed most likely, to Respondent, to occur on or just prior to the critical days of the tournament. That Respondent was so acting only in a defensive and nonoffen- sive manner is amply confirmed by the fact that the lockout was called off as soon as the Union guaranteed to work the so important tournament .9 Respondent has more than met any burden of proof it may have had by establishing that it reasonably and in good faith anticipated and expected a strike at the critical time of the tournament, and based upon such anticipation it locked out the employees and used replacements as set forth above only to preserve legitimate economic interests and serve the public good. Certainly, Respondent cannot be required to prove that it had Divine Knowledge that the Union actually would have struck. It satisfied any reasonable requirement, by establishing that it took what, to it, was necessary defen- sive action to assure that the important tournament would be televised.10 I find such was the only reason for the lock- out. There is no probative or substantial evidence that Re- spondent was in any way motivated by an intention or desire to interfere with, restrain, or coerce the employees in the exercise of their rights guaranteed by Section 8(a)(1) of the Act, either by the lockout or by the use of replacements as set forth above. Respondent had to operate, and be cer- tain it would operate, to protect the obvious economic inter- ests and the public's interests and convenience. I have already found, but here emphasize, that if the tournament were to be broadcast, in the face of the expected strike, Respondent, to guarantee such televising, had to put its plans into operation not later than March 6. I have not by any means ignored nor failed fully to consider that on March 4, Respondent told the Union that in the absence of an agreement on the part of the Union to Respondent's contract proposals by signoff time on March 5, Respondent would lock out the employees on March 6. It was late on March 5 that the membership of the Union voted to reject Respondent's proposals. The lockout occurred, as pre- dicted, on March 6, with use of replacements as found above. General Counsel contends that this record estab- lishes that "the lockout was inherently prejudicial to Union interests and devoid of significant economic justification sufficient to overcome the adverse effect on unionism," cit- ing Inland Trucking Co., 179 NLRB No. 56, enfd. 440 F.2d 562 (C.A. 7). I have carefully read and considered all of what might be called the lead cases involving lockouts." I conclude that this lockout and use of replacements as found above was not unlawful in the light of existing legal prece- dent. That the proposed lockout was announced simulta- neously with Respondent's contract proposal and followed immediately upon the Union's rejection of such proposal inclines one to speculate that the announcement of the pro- posed lockout on March 4, and its implementation on the 9 Agreement on contract terms was not even mentioned by Respondent on that occasion. Indeed, Respondent refused then to negotiate . It only sought a guarantee that the men would work. Had it not been, it, the sponsors, and the public could not ever have had it Televise it or forget it 11 1 find no need to cite them They are known to all interested parties. WGN OF COLORADO 1057 heels of the Union's rejection, have a cause-and-effect rela- tionship. I find that the entire record establishes the nonex- istence of such relationship. "Timing" is always a factor which may be considered in determining whether an unfair labor practice exists. Here I find nothing but the fallacious post hoc ergo propter hoc insofar as the Union's rejection of Respondent's proposals and the subsequent lockout are concerned. I am convinced, find, and conclude that this record demonstrates fully that the employees were not locked out because the Union would not agree to Respondent's contract proposals and as a device by Re- spondent to gain such agreement , but rather, as found above, Respondent locked out the employees because it actually and reasonably believed that the Union would call its announced "strike" at or about the most advantageous time to the Union, the days before and during the soon upcoming basketball tournament, all to Respondent's and sponsors' great economic loss and to the great disservice of the people of Colorado and possibly to the real detriment of Respondent's FCC license. Respondent has here demon- strated that the lockout was not based upon antiumon con- siderations but rather was based upon legitimate and substantial business reasons. The lockout was intended to and did serve a legitimate business end. Respondent had a reasonable apprehension that the Union was soon to take hostile action against its substantial economic interests and those of its valued sponsors and to the great detriment of the public weal. I have noted perhaps too often, but here again emphasize, that the Union never withdrew its state- ment that it intended to strike on or after March 1. This lockout was legal because of overriding business purposes and because of the vital interests and convenience of the public. Respondent had a good-faith anticipation of almost simultaneous "offensive action" by the Union. The lockout was not designed to destroy the employees' rights or the capacity of the Union to represent them. At the first nego- tiation meeting in February, the Union unequivocally an- nounced itself as the protagonist and never withdrew from such position. This lockout was designed solely to further legitimate business interests and the public's good. Respon- dent has more than established by a preponderance of the probative and substantial evidence that it had no antiunion motivation in the lockout but rather it was motivated solely by legitimate objectives. Certainly, as I have found, Respon- dent was faced with unusual operational problems and haz- ards and most probable and irreplaceable economic loss should the expected and announced strike occur and had most reasonable grounds for knowing that a strike had been threatened and for believing it was imminent . Note that in the Inland case, supra, prior to the lockout, the union ad- vised each of the employers involved that it had no intention of striking at the expiration of the current contracts and would give a week's notice before a work stoppage. I have found and concluded this lockout was purely defensive. The court of appeals in Inland, supra, found the lockouts were offensive. The court in footnote 7, referring to N.L.R.B. v. Brown, 380 U.S. 278, noted that in the Inland case "the record does not show that a strike was imminent." Here, Respondent reasonably and realistically believed the con- trary was true. Concluding Findings I conclude, based upon the entire record including my close observation of the demeanor of all the witnesses, that General Counsel has failed to establish or prove any part of his case by a preponderance of the probative and substan- tial evidence. _ CONCLUSIONS OF LAW Upon the basis of the foregoing findings of fact, and upon the entire record, I make the following conclusions of law: 1. At all material times Respondent has been an em- ployer engaged in commerce within the meaning of the Act. 2. The Union is a labor organization within the meaning of the Act. 3. The record does not establish that Respondent has engaged in the unfair labor practices, or any of them, alleged in the complaint. Upon the basis of the foregoing findings of fact and conclusions of law, it is recommended that the Board issue the following: ORDER 12 The complaint herein is dismissed in its entirety. 12 In the event no exceptions are filed as provided by Section 102.46 of the Rules and Regulations of the National Labor Relations Board, the findings, conclusions , and recommended Order herein shall , as provided in Section 102 48 of the Rules and Regulations , be adopted by the Board and become its findings , conclusions, and Order , and all objections thereto shall be deemed waived for all purposes. Copy with citationCopy as parenthetical citation