Wittock Supply Co.Download PDFNational Labor Relations Board - Board DecisionsMay 2, 1968171 N.L.R.B. 201 (N.L.R.B. 1968) Copy Citation WITTOCK SUPPLY COMPANY 201 Wittock supply Company and Teamsters Local Union No. 328, affiliated with the International Brotherhood of Teamsters, Chauffeurs, Warehousemen and Helpers of America. Cases 30-CA-594 and 30-CA-634 May 2, 1968 DECISION AND ORDER By MEMBERS FANNING, JENKINS, AND ZAGORIA On January 23, 1968, Trial Examiner William J. Brown issued his Decision in the above-entitled proceeding, finding that the Respondent had en- gaged in and was engaging in certain unfair labor practices, and recommending that it cease and de- sist therefrom and take certain affirmative action, as set forth in the attached Trial Examiner's Deci- sion. He also found that the Respondent had not engaged in certain other unfair labor practices al- leged in the complaint and recommended that those allegations be dismissed. Thereafter, the General Counsel filed exceptions to the Trial Ex- aminer's Decision together with a supporting brief, and both the Respondent and Charging Party filed cross-exceptions and briefs. Pursuant to the provisions of Section 3(b) of the National Labor Relations Act, as amended, the Na- tional Labor Relations Board has delegated its powers in connection with this case to a three- member panel. The Board has reviewed the rulings of the Trial Examiner made at the hearing and finds that no prejudicial error was committed. The rulings are hereby affirmed. The Board has considered the Trial Examiner's Decision, the exceptions, cross-ex- ceptions, and briefs, and the entire record in the case, and hereby adopts the findings, conclusions, and recommendations of the Trial Examiner as herein modified. 1. Although the Trial Examiner found Section 8(a)(5) and (1) violations of the Act in the Respondent's unilateral elimination of a Christmas bonus and its unilateral change in lunch hours and starting time for warehouse employees, which reduced the number of hours worked, he made no such findings regarding the unilateral reduction in working hours of the two truckdrivers. We see no distinction between the Respondent's failure to bar- gain over the reduction of hours for the warehousemen and its failure to bargain regarding the reduction of hours worked by the truckdrivers. As was the case wiui me warehouse employees, the working hours of the two unit truckdrivers, Grunlund and Burkman, were unilaterally reduced after January 1, 1967. In fact, not only did they lose their overtime hours, but each was laid off 1 day per week without notice to or consultation with the Union. In the 3 months prior to January 1, 1967, as was the case with the employees in the warehouse, the two truckdrivers had worked a substantial amount of overtime, Grunlund averaging 11.6 hours per week and Burkman about 15.9 hours per week. Moreover, no reason was given at the time for their reduction in the workweek, which was ap- parently announced in each case by the posting of a new schedule. This was the first time that Grun- lund, Respondent's most senior employee with some 10 years of service, had been reduced to a 4- day working week. This was also true of Burkman who had worked for Respondent since April 1965. It is also clear that one of the principal causes of this reduction in working hours was the Respon- dent's admitted unilateral action in completely eliminating the Kohler pickup runs in early January 1967 and contracting this work out to Prefab Trucking Company, an independent carrier. Although it is true that Respondent had utilized primarily common carriers to transport incoming materials from three of its four major suppliers, it had in the past almost exclusively used its own trucks in the semimonthly hauling of plumbing sup- plies from Kohler, some 157 miles each way. How- ever, commencing early in January 1967, Respon- dent completely ceased using its own trucks for the Kohler run and thereafter used exclusively the ser- vices of Prefab Trucking Company to deliver these materials. It is thus clear that Respondent's conduct in this regard was a significant departure from previously established operating practices.' Furthermore, the Respondent did not afford the Union an opportunity to bargain over the decision to eliminate the truck route prior to its actual im- plementation by entering into arrangements with Prefab Trucking Company to haul the incoming materials from Kohler. Regardless of the Respondent' s motivation in eliminating these unit work opportunities , as in the case of the elimination of the Christmas bonus and the change in working times which reduced hours of work in the warehouse, the Union had the statu- tory right to be notified in advance of the proposed seven 1-day per week layoff and the elimination of the Kohler pickup run and given an opportunity to bargain over the decision to make these contem- ' Cf Westinghouse Electric Corporation (Mansfield Plant), 150 NLRB 1574, 1576 171 NLRB No. 33 202 DECISIONS OF NATIONAL LABOR RELATIONS BOARD plated operational changes and the effects of that decision upon the work opportunities for the bar- gaining unit employees involved .' Accordingly, we find that Respondent violated Section 8(a)(5) and (1) of the Act by unilaterally laying off the two unit truckdrivers 1 day per week and by unilaterally eliminating the Kohler pickup truck runs, all of which reduced the number of hours worked and eliminated regularly scheduled overtime work. 2. The complaint alleges that on or about May 17, 1967, certain of Respondent's employees ceased work and went on strike, that the strike con- tinued since that date , and that it was caused and prolonged by Respondent's unfair labor practices. The Trial Examiner found that this allegation was not properly before him on the ground that there were "no allegations of specific unfair labor prac- tices in connection with any treatment accorded the strikers," and, accordingly, he made no findings as to the character of the strike here involved. We disagree. Although Respondent has contended that the strike was based on economic factors , it is well set- tled that if the strike was motivated because of un- fair labor practices in addition to economic or other factors, it is an unfair labor practice strike.3 Moreover, and contrary to the Trial Examiner, the Board has uniformly issued prospective reinstate- ment orders for unfair labor practice strikers without regard to the existence of issues concerning discriminatory treatment accorded strikers or a refusal to reinstate.' For example, in Buffalo Arms, Inc.,' we adopted the following finding made by the Trial Examiner: As noted, the Respondent's employees struck on June 14, 1954, in consequence of its refusal to bargain with the Steelworkers. At the hearing , counsel for the General Counsel and the Steelworkers requested the Trial Examiner to find, as alleged in the complaint, that the ex- isting strike is an unfair labor practice strike and that the striking employees are therefore unfair labor practice strikers. While the Trial Examiner expressed doubt as to the efficacy or propriety of such findings in this proceeding, in the belief that they were beyond the scope of the refusal to bargain issue implicit in the Sec- tion 8(a)(5) ... violation alleged in the com- plaint, reference to pertinent Board precedents reveals not only the necessity here for these findings but recommendation of an appropriate order pursuant thereto. Accordingly, as it has been found that the Respondent's refusal to bargain with the Steelworkers was an unfair labor practice, it follows that the strike which was caused and prolonged thereby is an unfair labor practice strike, and hence that the strik- ing employees are unfair labor practice strikers, and it is so found." More recently, in Louisville Chair Company, Inc.,7 we adopted the Trial Examiner's finding that the strike involved was caused by Respondent's viola- tion of Section 8(a)(5) of the Act in refusing to bargain and rejected Respondent 's contentions re- garding the propriety of the unfair labor practice al- legation which are very similar to the reasons ad- vanced by the Trial Examiner in the present in- stance for his failure to make a determination of the character of the strike involved: Respondent contends that these allegations [that the strike was caused and/or prolonged by Respondent's unfair labor practices] are not proper for consideration in this case because Respondent has not been charged with dis- criminatorily refusing to reinstate any striker or any other violation of the Act to which the nature of the strike has any relevance.... I am satisfied that the allegations pertaining to the strike are properly considered herein and may be the basis of an appropriate order as part of the remedy for the unfair labor practices, if the strike was an unfair labor practice strike." Thus, while the Trial Examiner in the present case refused to make a finding concerning the nature of the strike on the ground that he has no authority to do so, it is clear that he does possess such authority. His authority under Section 10(c) of the Act is to prescribe and recommend remedies for unfair labor practices, and the underlying purpose of a prospec- tive reinstatement order for unfair labor practice strikers speaks to the question of remedy. Ac- cordingly, if the instant strike were caused in part by Respondent's unfair labor practices, the custom- ary prospective reinstatement order is clearly warranted to restore, to the extent possible, the status quo as it existed prior to the commission of ' Winn-Dixie Stores, Inc., 147 NLRB 788, modified 361 F.2d 512, cert. denied 385 U.S 935, Aircraft Specialties, Inc., 148 NLRB 1127, enfd. 360 F 2d 600 (C A. 6), Cloverleaf Cold Storage Co., 160 NLRB 1484; M. Snack Iron and Steel Co., 146 NLRB 1068 ' Louisville Chair Company , Inc., 161 NLRB 358. The Little Rock Downtowner , Inc, 145 NLRB 1286, 1311-12 , enfd as modified 341 F.2d 1020(C.A 8) 1 See , e g , Louisville Chair Company, Inc., supra; Schill Steel Products, Inc, 144 NLRB 69, 78, enfd. 340 F.2d 568 (C.A. 5); National Furniture Manufacturing Company, Inc., 130 NLRB 712; Buffalo Arms, Inc., 110 NLRB 816 , 824, enforcement denied on other grounds 224 F.2d 105 (C.A. 2). ' Supra, fn. 4 s Id at p. 824 v Supra, in 3. " Id. at 376. WITTOCK SUPPLY COMPANY 203 those unfair labor practices. We believe, and so find, that the allegation of an unfair labor practice strike in the complaint is sufficient to permit the Trial Examiner to exercise his authority in this re- gard. Moreover, the record amply supports a finding that the strike was in fact caused and prolonged by the Respondent's unfair labor practices. Following the Union's certification, Respondent engaged in numerous acts of unlawful conduct, including Sec- tion 8 (a)(1) violations for interrogating an em- ployee about his own union activity and that of others, for interfering with employees' protected activities by promising to assist employees in withdrawing from the Union, and by threatening employees with the destruction of their majority under the proposed 1-year contract by hiring management relatives to vote the Union out at the end of the contract period, as well as Section 8(a)(5) violations for the unilateral reduction of working hours and the elimination of a Christmas bonus. On May 16, 1967, the employees held a meeting to take a final strike vote. At the meeting and prior to voting, the employees discussed, among other things, the Employer's unfair labor practices. Both employees Mercier and Grunlund testified that the discussion preceding the strike vote concerned the Employer's unfair labor prac- tices in addition to any economic considerations. Specifically, it is uncontroverted that the men com- plained of the reduction of working hours and the Employer's threat to hire relatives to vote out the Union's majority at the termination of the proposed 1-year contract, both of which have heretofore been found as violations of the Act. Moreover, when the strike commenced at least two of the Union's picket signs identified the strike as being directed specifically toward Respondent's unfair labor practices. It is also clear that these problems were not resolved up to and including the time of the hearing in this case. Thus the causal connection between the unfair labor practices and the pro- longed strike is clear. Accordingly, we believe, and so find, that the strike from its inception has been an unfair labor practice strike. THE REMEDY Although the Trial Examiner found that Respon- dent violated Section 8(a)(5) and (1) of the Act by unilaterally eliminating employee Christmas bonuses and by unilaterally changing starting and shift times and regularly scheduled overtime, thereby reducing total weekly hours of work, he failed in his recommended remedy to fashion a make-whole provision based on these findings for the employees involved. We believe that the Trial Examiner's failure to prescribe such a remedy, in these circumstances, is contrary to well-established Board policy. As we have stated: It is the Board's customary policy to direct a respondent-employer to restore the status quo where he has taken unlawful unilateral action to the detriment of his employees. Such an order is warranted to prevent the wrong-doer from enjoying the fruits of his unfair labor practices and gaining an undue advantage at the bargaining table.' There are many cases specifically involving, as in the instant case, the unilateral withholding of a Christmas bonus where the Board has followed this customary policy and prescribed a make-whole remedy.10 Similarly, such remedies have been fashioned for a unilateral reduction in working hours. As in the present case, restitution of lost pay has been ordered by the Board where truckdrivers were unilaterally laid off 1 day per week" and in another instance where loss of pay was suffered as result of a 1-hour per week unilateral reduction in working time.l2 In the present case the unilateral actions of the Respondent in eliminating the bonus and reducing the working hours of the warehouse employees as well as the working hours of the two truckdrivers took place in an atmosphere permeated with union animus, coupled with several unfair labor practices. Although the record reveals that Respondent was in a period of declining sales at the time, Respon- dent's profit for the fiscal year ending February 1967 was one of its highest. The record further reflects that during the several month period preceding January 1967, Respondent had granted wage increases to its employees, many of which ex- ceeded those given theretofore. In these circum- stances we do not believe that Respondent should be permitted to benefit from its unlawful conduct at the expense of the employees whose interests in the decisions were denied the protection afforded them by the bargaining process. Accordingly, we shall order the Respondent to make its employees whole 9 Herman Sausage Company, Inc., 122 NLRB 168, 172 , enfd 275 F.2d 229 (C.A. 5). 10 See , e.g., Gravenslund Operating Company, 168 NLRB 513, Beacon Journal Publishing Company. 164 N LRB 734, Exchange Parts Company, 139 NLRB 710, enfd 339 F.2d 829 (C A 5) " Cloverleaf Cold Storage Co , supra 12 Aircraft Specialties, Inc, supra 204 DECISIONS OF NATIONAL LABOR RELATIONS BOARD for the monetary loss suffered by them as a result of the unlawful withholding of the 1966 Christmas bonus, the amount of the loss to be determined by the method used in making bonus payments in previous years with interest at the rate of 6 percent per annum , to be computed in the manner set forth in Isis Plumbing & Heating Co., 138 NLRB 716. We shall also order the Respondent to make whole its warehouse employees for any loss of pay they in- curred as a result of Respondent 's unilateral change in working hours by the payment to them of a sum of money equal to that which they normally would have earned before the reduction in hours from the date, in each instance, when the particular hours were reduced until the occurrence of any of the fol- lowing events: ( 1) reaching mutual agreement with the Union regarding the subjects which Respondent is ordered to bargain about; (2) bargaining to a bona fide impasse; (3) the failure of the Union to commence negotiations within 5 days of the receipt of the Respondent's notice of its desire to bargain; or (4) the failure of the Union to bargain thereafter in good faith. Such loss of pay shall be computed in the manner established by the Board in F. W. Wool- worth Company, 90 NLRB 289, with interest thereon at the rate of 6 percent per annum in ac- cord with the decision in Isis Plumbing & Heating Co., supra. Furthermore, having found that the Respondent violated Section 8(a)(5) and (1) by implementing 1-day per week layoffs and by contracting out the Kohler pickup runs, thereby eliminating hours worked by unit truckdrivers without first giving a bargaining opportunity to the Union, we shall order the Respondent to cease and desist therefrom, and from like and related conduct. We shall also order the Respondent to undo the specific violation found by offering now to bargain with the Union, not only about the effects on the employees involved in this action, but also about the resumption of the opera- tion. Moreover, it is clear that if the Respondent had honored its statutory bargaining obligation, the truckdrivers affected would not have suffered a reduction in hours worked without the protection afforded them through collective bargaining about the proposed action . In any event , it may be presumed, they would not have lost hours worked until Respondent had fulfilled its bargaining obliga- tion by negotiating to a bona fide impasse. Ac- cordingly, we shall further order that the Respon- dent shall make the truckdriver employees whole for any loss of pay they may have suffered as a result of the Respondent's unfair labor practice by a payment to them of a sum of money equal to that which they would have earned from the date of the unfair labor practice to the occurrence of the earli- est of one of the following events: (1) reaching mu- tual agreement with the Union relating to the sub- jects which Respondent is herein required to bar- gain about; (2) a bona fide impasse in such bargain- ing; (3) the failure of the Union to commence negotiations within 5 days of the receipt of the Respondent's notice of its desire to bargain with the Union; or (4) the failure of the Union to bargain thereafter in good faith. Of course, if the Respon- dent desires to eliminate the layoff and reinstate the Kohler pickup run under the same or substantially equivalent conditions as previously existed, backpay shall not run beyond the date it does so. The loss of pay shall be computed in the manner established by the Board in F. W. Woolworth Com- pany, supra, with interest thereon at the rate of 6 percent per annum in accord with Isis Plumbing & Heating Co., supra. In addition, it having been found that at the time of the hearing Respondent's employees were en- gaged in a strike caused and prolonged by Respond- ent's unfair labor practices, the striking employees are therefore entitled to reinstatement upon applica- tion, whether or not their positions have been filled by the hire of replacements. As Respondent asserts in its brief, however, that it has recently reinstated the striking employees upon their abandonment of the strike, we believe it unnecessary at this time to issue a prospective reinstatement and make-whole order. Nevertheless, we reserve the right to modify this order if the strikers have not been or are not in fact timely reinstated to their prior positions upon application. AMENDED CONCLUSIONS OF LAW 1. Renumber the Trial Examiner's Conclusion of Law 10 as 12. 2. Renumber Conclusion of Law 9 as 10. 3. Add the following: "9. By reducing employee work opportunities and regularly scheduled overtime by implementing a 1-day per week layoff for truckdrivers and by eliminating a regularly scheduled truck pickup run, all without notice to or consultation and bargaining with the Union, the Company has engaged in unfair labor practices defined in Section 8(a)(5) and (1) of the Act." "11. The strike engaged in by employees in the aforesaid appropriate bargaining unit which com- menced on May 17, 1967, was an unfair labor practice strike." ORDER WITTOCK SUPPLY COMPANY 205 Pursuant to Section 10(c) of the National Labor Relations Act, as amended, the National Labor Relations Board adopts as its Order the Recom- mended Order of the Trial Examiner as modified below and hereby orders that the Respondent, Wit- tock Supply Company, Iron Mountain, Michigan, its officers, agents , successors , and assigns, shall take the action set forth in the Trial Examiner's Recommended Order, as herein modified. 1. Renumber paragraph 1(f) of the Trial Ex- aminer 's Recommended Order as 1(g). 2. Add the following paragraph, to be numbered 1(f), to the Trial Examiner's Recommended Order: "Refusing to bargain with the Union by laying off unit truckdrivers 1 day per week and by eliminating regularly scheduled truck pickup runs without notice to or consultation with the Union, thereby unilaterally eliminating customary overtime and hours worked." 3. Renumber paragraph 2(d) of the Trial Ex- aminer 's Recommended Order as 2(f) and para- graph 2(e) as 2(g). 4. Add the following to paragraph 2 of the Trial Examiner 's Recommended Order: "(d) Upon request, bargain collectively with the Union with respect to the 1-day week layoff of the unit truckdrivers and the reinstitution of the truck pickup runs to the Kohler Company, and embody any understanding reached as a result of such bar- gaining in a signed memorandum of agreement." "(e) Make whole the unit warehouse and truckdriver employees for any loss of pay suffered by them in the manner and under the conditions and circumstances set forth in the section of the Board 's Decision entitled `The Remedy."' 5. After the subparagraph contained in the fifth indented paragraph of the "Appendix", insert the following: WE WILL NOT refuse to bargain with the above-named Teamsters local by implementing layoffs and eliminating regularly scheduled truck routes and customary overtime without notice to and bargaining with the aforesaid Teamsters local and WE WILL upon request bargain with the Teamsters on these and other matters of collective bargaining. 6. After the sixth indented paragraph of the "Appendix", insert the following: WE WILL make whole the warehouse and truckdriver employees for any loss of pay suf- fered by them as a result of our failure and refusal to bargain with the aforenamed Union concerning the aforementioned layoffs and the elimination of the Christmas bonus, regularly scheduled truck routes, and customary over- time. TRIAL EXAMINER'S DECISION WILLIAM J. BROWN, Trial Examiner: This proceeding under Section 10(b) of the National Labor Relations Act, as amended, hereinafter referred to as the "Act," came on to be heard at Iron Mountain, Michigan, on September 19 through 22, 1967. The original charge of unfair labor practices was filed May 18, 1967, by the above-indicated Charging Party, hereinafter referred to as the "Union" and the original com- plaint in Case 30-CA-594 issued July 7, 1967, by the General Counsel of the National Labor Rela- tions Board acting through the Board's Regional Director for Region 30. Thereafter charges were filed and a complaint issued in Case 30-CA-634 and the cases were consolidated by order of the Re- gional Director on September 8, 1967. The com- plaints allege, in addition to jurisdictional matter, the commission of unfair labor practices defined in Section 8(a)(1), (3), and (5) of the Act, on the part of the above-indicated Respondent, hereinafter sometimes referred to as the "Company." The Company's duly filed answers admit the jurisdic- tional allegations of the complaints and the status of the Charging Party as a labor organization within the meaning of Section 2(5) of the Act; they deny the commission of the alleged unfair labor prac- tices. At the hearing the parties appeared and par- ticipated as noted above with full opportunity to present evidence and argument on the issues; sub- sequent to the close of the hearing briefs were received from the General Counsel and the Com- pany and they have been fully considered. On the entire record herein and on the basis of my obser- vation of the witnesses, I make the following: FINDINGS OF FACT I. THE BUSINESS OF THE RESPONDENT COMPANY The pleadings and evidence indicate and I find that the Company is a wholesale supplier of plumb- ing and heating supplies, industrial pipe, valves, and fittings. Its office and warehouse is in Kingsford, Michigan,' and its customers, contractors, industri- al accounts, municipalities, and retailers are located throughout the Upper Peninsula of Michigan and in the northeastern counties of Wisconsin. During the calendar year preceding issuance of the complaints ' The Company maintains its post office address in Iron Mountain, Michigan 206 DECISIONS OF NATIONAL LABOR RELATIONS BOARD herein the Company purchased and received in in- terstate commerce from points outside the State of Michigan products valued in excess of $50,000. I find, as the Company concedes, that it is an em- ployer en aged in commerce within the meaning of Section 2(6) and (7) of the Act. II. THE LABOR ORGANIZATION INVOLVED The pleadings and evidence establish that the Union is a labor organization within the meaning of Section 2 (5) of the Act. III. THE UNFAIR LABOR PRACTICES A. Introduction and Summary of Events In the conduct of its wholesaling operations the Company has employed at material times a total work force of some 30 employees of whom 10 com- prise the driver-warehouseman category involved in the present case.2 The employees work under the supervision of Jack Wittock, secretary-treasurer and manager ; James Wittock and Frank McKinnon, vice presidents; and Joseph Rahoi, warehouse su- perintendent. Sometime in September 1966, Grunlund commu- nicated with Union Business Agent Kenneth Davis looking to union organization of company em- ployees . Meetings were held in Grunlund's home any a number of employees signed union authoriza- tion cards. On October 3 and 4, 1966, the Union, by telegram and letter , demanded recognition in a unit of drivers and warehousemen and on October 5 filed a representation petition with the Board's Regional Office. A Board-conducted election was held December 7 resulting in a vote of seven to three in favor of union representation; the Union was certified as bargaining representative of the driver-warehousemen unit on December 15. Bargaining sessions thereafter failed to produce an agreement and on May 8, 1967, the Michigan State Labor Mediation Board conducted a strike- vote election by secret ballot on the issue of ac- ceptance of the Company's proposed agreement or rejection and strike. The company proposal was re- jected and the seven supporters of the Union went on strike on May 17, 1967. They were still on strike as of the time of the hearing in this case . The un- contradicted testimony of Davis is that the strikers picketed the company premises with signs bearing the legends "On Strike," "Wittock Supply on Strike" and "Wittock Supply Company Charged 2 Employees in the driver-warehouseman bargaining unit are Holger Grunlund and Bruce Burkman , truckdrivers , and Walter Bilsky , Theophil DeNeve, Marvin Mercier , Robert Freeman , Kenneth Hamby , Lloyd Peter- son, George Servia, and Ronald Struebing , warehousemen. ' General Counsel's brief urges that , as alleged in paragraph 10 of the complaint and denied in the Company's answer , the strike which com- menced on May 17, 1967, and continued at least throughout the hearing, be found to be an unfair labor practice strike There are, however, no al- with Federal Violations."3 The case presents the question as to whether, as alleged by the General Counsel and denied by the Respondent, the Company engaged in unfair labor practices by: (1) McKinnon's questioning of Bilsky on December 23, 1966, concerning his union activi- ties; (2) McKinnon's soliciting employees on December 23, 1966, to abandon their support of the Union, while offering assistance in formation of an independent union; (3) Jack Wittock's threatening Grunlund with discharge and creating an impression of surveil- lance of employee union activities in March 1967; (4) Jack Wittock's threat on May 1 and 3, 1967, to hire relatives and vote the Union out after 1 year; (5) The elimination of a Christmas bonus in December 1966; (6) The change of shift and lunch hours and other reduction of employee hours of work dis- criminatorily and without consultation with the Union in December 1966; (7) The elimination of pickup truck runs in December 1966 without consultation with the Union; and (8) The layoff of employees Hamby and Nygard on January 3 and May 21, 1967, respectively. B. Interrogation Respecting Employee Union Activity The testimony of both Bilsky and McKinnon establishes that McKinnon called Bilsky to the of- fice on the morning of December 23, 1966. McKin- non testified that his purpose in summoning Bilsky to the office was to inquire into the reasons why employees were dissatisfied with the Company. He did not deny Bilsky's testimony, which I credit, that -in the course of their conversation he asked Bilsky if he were a union member and if the employees were paying dues to the Union. This questioning of Bilsky concerning his union activity and that of other employees occurring in circumstances plainly lacking in assurances of innocence of purpose in the inquiry constituted an unfair labor practice defined in Section 8(a)(1) of the Act. C. Suggested Formation of Independent Union The complaint alleges that McKinnon, at an em- ployee meeting on December 23, 1966, solicited legations of specific unfair labor practices in connection with any treat- ment accorded the strikers In the circumstances it appears that the allega- tion that the strike was an unfair labor practice strike is not properly before the Examiner for determination at this stage. The Examiner's authority under the statute and regulations (see Board's Rules, Section 102.35) is to hear and determine allegations rejecting specific unfair labor practices, not to issue advisory opinions or declaratory judgments Accordingly, I make no findings as to the character of the strike here involved WITTOCK SUPPLY COMPANY employees to abandon the Union and offered help in their withdrawal from the Union and the forma- tion of an independent union. The evidence establishes that , in accordance with longstanding custom , the Company provided several bottles of liquor in the conference room toward the latter part of the workday immediately preceding the Christmas holiday. All employees of the bargaining unit were present except for the two truckdrivers. There was some extended discussion among em- ployees with respect to whether or not they should continue their support of the Union. In the course of the discussion, employees Peterson, Struebing, and Servia spoke up in favor of supporting the Company as against the Union. No decision was reached, however, because of the absence of the two drivers. The evidence indicates that after the employee discussion McKinnon was called into the meeting . While Bilsky's account is somewhat con- fusing as to occurrences on this occasion, the ac- counts of Mercier and Freeman are credible in my judgment and are to the effect that when McKin- non was called into the meeting and informed that the employees were going to continue their support of the Union, he offered a blank check to pay for the services of a lawyer in setting up an independ- ent union. McKinnon's account of the incident is that when he was called into the meeting Bilsky inquired as how employees could withdraw from the Union if they felt that they had erred in joining and supporting it. McKinnon , according to his ac- count , stated that a legal document would be neces- sary and, although he could make no commitment, possibly the Company would pay the fee for such an attorney . The evidence clearly establishes that McKinnon made either a firm commitment respect- ing company payment of an attorney fee for ser- vices in connection with employee withdrawal from the Union or an intimation that the Company would seriously consider such a payment. In either event his statements on the occasion plainly con- stitute interference with the right of employees to make their own decisions respecting union representation. Respondent 's reliance on Frito-Lay, Inc., 151 NLRB 28, and N.L.R.B. v. Reeves Broadcasting and Development Corporation, 336 F.2d 590 (C.A. 4), is misplaced. I find and conclude that in the course of the December 23 afternoon meeting McKinnon of- fered to pay the attorney's fee necessary to effectu- ate employee withdrawal from the Union and thereby interfered with the employees' rights under Section 8 (a)(1) of the Act.4 D. Threat of Discharge and Creation of Impression of Surveillance Holger "Hack" Grunlund, a truckdriver, is the senior employee in the bargaining unit and was the ' At a subsequent meeting on December 27 all 10 unit employees met in the lunchroom with Jack Wittock who asked their decision regarding for- 207 leader in organizational activity on behalf of the Union. He testified that sometime in March 1967 he was called in to Jack Wittock's office and told that he was being warned for interference with work on the dock, that the Union had been notified of the warning, and that if it happened again he would be laid off. Grunlund also testified that in this meeting Wittock accused him of being out to get the Company and of being the leader. Wittock's testimony is that the warning was based on Grun- lund's gathering of the warehousemen about the dock during working hours. The evidence plainly fails to make out a case of threat to discharge for union activity. With respect to the creation of the impression of surveillance it cannot be said in the circumstances of this case that, assuming Wittock made the statement that Grunlund was the leader of the union activity, that would constitute the creation of an impression of surveillance particu- larly in view of the indications that some union ac- tivity was openly carried on by Grunlund on com- pany premises. E. Threat To Hire Relatives The complaint alleges, and the Company denies, that on or about May 1 and 3, 1967, Jack Wittock threatened to hire his relatives to vote the Union out after a 1-year contract. About a week prior to the State Mediation Board election respecting em- ployee acceptance or rejection of the Company's proposed agreement employees were given copies of the company proposal which was for a 1-year term. Bilsky testified that on this occasion he asked Wittock why he resented the union shop and that Wittock replied that it really made no difference in a 1-year contract and said, "What's to stop me from hiring eight or ten of my relatives, and putting this vote in my favor in the next election, and that would be the end of the union." Burkman testified to a substantially identical conversation with Wit- tock on May 3. Wittock testified that on that day he talked to employees individually about their status under the company profit-sharing plan and also the Com- pany's final contract proposal. His account is that Bilsky stressed the employees' desire for a union shop and in that connection Wittock replied that the Company could, either under a union shop or an open shop, hire friends and relatives to ensure a procompany majority but that it had not done so in the December election and he couldn't see why it would happen later. I credit the testimony of Bilsky and Burkman as against that of Wittock and find that in May 1967 prior to the State Board election Wittock interfered with employees' self-organization by impliedly threatening to hire relatives to vote the Union out after a 1-year contract. matron of an independent union and was told that the employees were committed to the Teamsters. 208 DECISIONS OF NATIONAL LABOR RELATIONS BOARD F. Elimination of the Christmas Bonus The evidence reveals that for some 8 or 10 years prior to the 1966 Christmas season the Company had sponsored Christmas parties for all employees and their wives and for the years 1963, 1964, and 1965 all employees received $50 cash bonuses. No cash bonuses were distributed to employees (both those in and outside the bargaining unit) at the December 1966 Christmas party which was held December 10, 1966, at the Hollywood Supper Club and was somewhat more pretentious and expensive than those immediately preceding it. The General Counsel contends that the failure to pay a Christ- mas bonus on the occasion of the 1966 Christmas party was both discriminatory within the meaning of Section 8(a)(3) and a refusal to bargain within the meaning of Section 8(a)(5) of the Act. Since the evidence clearly indicates that the withholding of a cash bonus in December 1966 affected not only those employees who supported the Union but those in the unit who did not as well as all of the larger number of nonunit employees and in view of the lack of specific indications of union animus in the departure from precedent, I conclude that the evidence does not preponderate in favor of the con- clusion that the 1966 withholding of a cash bonus constituted discriminatory treatment within the meaning of Section 8 ( a)(3) of the Act. The refusal to notify and consult with the Union concerning the departure from precedent, however, stands on different footing. I conclude that in the circumstances of a 3-year practice of paying a uniform cash bonus of $50 at Christmas time to employees, the departure from that practice follow- ing the Union 's securing representative status con- stituted a unilateral alteration of a term or condi- tion of employment. The circumstance that there might have been justification in the departure from precedent does not justify management's failure to notify and on request discuss the situation with the bargaining representative. By its unilateral withholding of the Christmas bonus in 1966 from employees in the bargaining unit, the Company has engaged in an unlawful refusal to bargain within the meaning of Section 8(a)(5) of the Act. New Or- leans Board of Trade, Ltd., 152 NLRB 1258. G. Discriminatory and Unilateral Reduction in Hours of Work The complaint alleges and the answer denies that the Company engaged in unfair labor practices in the nature of refusal to bargain and discrimination by company action in December 1966 and thereafter by unilaterally and discriminatorily reducing employee worktime through changes in shift and lunch periods , starting times, and other methods. The contentions respecting changes in shift and lunch hours relate to employees DeNeve, Freeman, Bilsky, and Hamby. DeNeve, who had worked in the pipe shop since sometime in 1965 , testified that after some 2 to 3 months in the pipe shop his work- ing hours were changed from 8 to 5 to 7 to 5, with an unpaid lunch hour . Sometime after the December 27 meeting in the lunchroom Rahoi changed his hours to the 8 to 5 schedule resulting in the loss of 5 hours' weekly overtime at rate and one-half. Freeman testified that sometime in January 1967 his hours of work were changed by increasing the length of his unpaid lunch period by one-half hour with resultant loss of regular weekly overtime. It appears, however, as both the General Counsel and Company point out in their briefs, that Freeman erred in placing the change as occurring in January and that in fact it occurred in December . Bilsky and Hamby also testified to a similar increase of one-half hour in their unpaid lunch periods about January 1, 1967. In addition to the foregoing the General Counsel alleges a discriminatory and unilateral reduction in generally reducing the overtime hours of the warehousemen and truckdrivers . It is also alleged that the reduction of overtime was less in the case of nonunion employees Servia , Struebing, and Peterson ; but the record indicates that Peterson and Struebing were possessed of special qualifica- tions in that Peterson was the only unit employee qualified to do layout work and billing and that Struebing was a trainee salesman . It also appears that Servia possessed relatively superior qualifica- tions since he apparently bypassed the usual initial stage of loading work and was immediately engaged on hire in regular warehouse work. Jack Wittock testified that in mid-December 1966, he instructed Rahoi to cut back on labor costs in view of declining sales and a relatively un- favorable cash position. The documentary evidence establishes that the Company was experiencing a substantial decline in sales. Furthermore the ratio of direct labor costs to sales was running substan- tially higher than in prior years. The evidence also indicates that whereas in prior years some effort had been made to furnish make-work employment, that was not feasible in the winter of 1966-67 because of a relatively unsatisfactory cash position as compared to prior years. Jack Wittock' s uncon- tradicted testimony also establishes that in the winter of 1966-67 office employees were also cut back as to overtime work. The changes in shift times, lunch periods, and overtime work effected in the winter of 1966-67 by the Company are not shown by a preponderance of the testimony to have been discriminatorily motivated. The evidence clearly establishes, how- ever, that there was no notice to or consultation with the Union respecting changes in established hours of work and regularly scheduled overtime. I conclude that, while there has been no unfair labor practice in the nature of discrimination under Sec- WITTOCK SUPPLY COMPANY 209 tion 8 (a)(3) of the Act, the Company engaged in an unfair labor practice under Section 8(a)(5) of the Act by its failure to notify and consult on request with the Union concerning the changes in existing practice as to starting and shift times and regularly scheduled overtime. Stevenson Brick and Block Company, 160 NLRB 198. H. Elimination of Pickup Truck Runs The complaint alleges and the Company denies an unlawful refusal to bargain in the unilateral elimination of employee truck routes. The evidence reveals that prior to January 1, 1967, the company drivers, Grunlund and Burkman , did most of their driving on outbound runs over somewhat well- established schedules and routes. It also indicates that incoming materials were mainly transported from suppliers to the Company by common carrier but that incoming materials from the Company's principal supplier, Kohler, of Kohler, Wisconsin, were generally hauled by the Company's own equipment and drivers on semimonthly pickup runs to Kohler. It is clear that sometime in January 1967 the Company ceased making pickup runs from Ko- hler and arranged for the transportation of incom- ing material from Kohler by Prefab Trucking Com- tany. In this regard I credit the testimony of drivers urkman and Grunlund that they made no pickup runs from Kohler after January 1, 1967, up to the commencement of the strike. I also credit testimony of Jack Wittock that the decision to uti- lize Prefab services resulted from a combination of circumstances : the aging of company equipment, need of substantial overhaul of such equipment coupled with a lack of funds to make required over- haul at the time, and a 50-percent concession respecting a minimum weight limitation on the part of Prefab in December 1966. There appears to be no question but that the decision to change from company equipment to Prefab hauling was economically and not dis- criminatorily motivated. Neither can there be any question but that change to Prefab constituted a significant impairment of the earnings of the drivers since the distance involved (some 157 miles each way) is such that the elimination of the run either deprived the drivers of substantially a whole day's work or of the loss suffered due to a lower rate if they were put on warehouse work. The evidence in- dicates, however, that the Company had utilized the services of common carriers in pickups from Kohler and its other major suppliers on previous occasions . It does not appear that the Company has disposed of any of its hauling equipment, nor unlike Adelson, Inc., 163 NLRB 407, does it appear that the Union ever requested bargaining on the matter. Under all the circumstances set forth above I con- clude that the Company's action in increasing its use of Prefab in pickup hauls from Kohler did not amount to an unfair labor practice. 1. The Discriminatory Layoffs 1. Kenneth Hamby Kenneth Hamby was hired October 1, 1966, as a warehouseman and at all material times was the jun- ior employee in point of service with the Com- pany. He was laid off January 3, 1967, his first workday after the holidays, when Rahoi told him he was laid off due to slack work. No mention was made as to the probable duration of the layoff. Hamby had signed a union authorization card, paid dues, and attended one meeting but does not ap- pear to have been otherwise active for the Union and certainly not as active as Grunlund and, ap- parently, Mercier. Under all the circumstances of this case, however, including the relatively small size of the warehouse operation and the testimonyy which I credit that on election day Jack Wittock referred to Hamby, along with Bilsky and Freeman, as a union supporter, I conclude that the Company knew of his support of the Union. Hamby was, however, the junior employee in the unit and the evidence indicates that the Company was experiencing not only a decline in sales but also a substantial impairment of its cash position. Also there was an economically motivated decision to eliminate certain make-work projects which had been furnished employees in the slack seasons of prior years. Rahoi appears to have been the one to select Hamby for layoff and I credit his testimony that the decision was on the basis that Hamby was the junior employee. While there is no doubt of the Company's op- position to the Union and of its knowledge that Hamby was a union supporter, the record indicates that his layoff as the junior employee was based on economic considerations and clearly does not pre- ponderate in favor of the conclusion that he was laid off in reprisal for his relatively insignificant union activity. 2. Emil Nygard Nygard, father-in-law of Grunlund, the employee leader of union organizational efforts, was hired by S Hamby was offered recall by company letter dated March 14, 1967 Sometime in January 1967 Hamby encountered McKinnon and Jack Wit- tock at a supper club. On that occasion Jack Wittock apparently expressed his surprise that Hamby had been a union supporter The General Counsel urges that a violation , unalleged in the complaint , be found in the contents of this casual conversation it does not appear, however, that this was litigated as a violation nor does it appear that any questioning of Hamby was not attributable solely to one Moss whose connection or capacity with the Company is unexplained 210 DECISIONS OF NATIONAL LABOR RELATIONS BOARD the Company in 1959 as a maintenance employee, transferred 1 year later to the pipe shop job in the warehouse , and on January 1, 1966, voluntarily reduced his hours to 3 per day , spent mainly in sweeping and minor maintenance work, to retain social security eligibility . As a part-time employee he was not among the eligible voters in the union election . On the first day of the strike, May 17, 1967, Jack Wittock asked him what Grunlund was going to do and Nygard replied that he had nothing to do with Grunlund and the boys. On the following day Jack Wittock, according to both Nygard and Jack Wittock , offered him full-time employment but Nygard demurred at taking on more than his 3- hour employment . On the night of Sunday , May 19, Jack Wittock called and told him that there was trouble at the gate and that Nygard should not re- port until further notice . No further notice was ever received , and Nygard was replaced by Berg, also a social security retiree. Jack Wittock testified that Nygard was laid off because of his relationship to Grunlund, and, somewhat remotely , to Burkman , and his apprehen- sion that Nygard would furnish information to the strikers as to the routing of company trucks par- ticularly in view of a union letter of May 15, 1967, to company customers intimating that they might undergo union picketing of company trucks at their premises . Wittock also testified that he had a report from Peterson of Nygard's communicating with pickets at the company fence . Peterson testified to the giving of such report to Wittock on the second day of the strike after he saw Nygard near the com- pany fence and near Grunlund and other union sup- porters . While the contention is also made that the ,layoff of Nygard was also motivated by consider- ations of economy, I discount this assertion in view of his replacement by Berg who performed substan- tially the same work. Nygard testified that, although he exchanged "Good mornings " with the strikers through the fence, he did so at a distance of some 100 feet and never furnished them information as to delivery routes . I found him a thoroughly credible witness. It is also noted that Wittock never questioned Nygard concerning any leaking of information to the strikers nor does it appear that Nygard was in any position to acquire such information . On all the evidence I conclude that the only reason for the layoff of Nygard was his relation to Grunlund, one of those active for the Union . His discharge con- stituted an unfair labor practice within the scope of Section 8(a)(3). Golub Bros . Concessions, 140 NLRB 120. IV. THE EFFECT OF THE UNFAIR LABOR PRACTICES UPON COMMERCE The activities of the Company set forth in section III, above , and there found to constitute unfair labor practices , occurring in connection with the o erations of the Company as set forth in section I, above, have a close, intimate , and substantial rela- tion to trade, traffic, and commerce among the several States , and tend to lead to labor disputes burdening and obstructing such commerce and the free flow thereof. V. THE REMEDY In view of the findings set forth above to the ef- fect that the Company has engaged in unfair labor practices affecting commerce , it will be recom- mended that it be required to cease and desist from such unfair labor practices and take appropriate af- firmative action including the offering of reinstate- ment to Emil Nygard with backpay computed in ac- cordance with the remedial principles set forth in F. W. Woolworth Company, 90 NLRB 289, and Isis Plumbing & Heating Co ., 138 NLRB 716. Since the layoff of Nygard has been found to be in reprisal for employees ' participation in the exercise of rights guaranteed in the Act, the cease -and-desist provisions recommended should be appropriately broad . ,N.L.R.B. v. Entwistle Mfg. Co., 120 F.2d 532 (C.A. 4). On the basis of the foregoing findings of fact and upon the entire record in this case , I make the fol- lowing: CONCLUSIONS OF LAW 1. The Company is an employer engaged in com- merce within the meaning of Section 2(6) and (7) of the Act. 2. The Union is a labor organization within the meaning of Section 2(5) of the Act. 3. By interrogating an employee respecting whether he and other employees were paying dues to the Union in connection with an offer of finan- cial assistance in withdrawal from the Union and by such offer of financial assistance , the Company has engaged in unfair labor practices defined in Section 8(a)(1) of the Act. 4. By threatening employees with the hiring of relatives of company officials as a means of destroyirg the Union's majority status, the Com- pany has engaged in unfair labor practices defined in Section 8(a)(1) of the Act. 5. By laying off and refusing to recall employee Emil Nygard because of his relationship to the em- ployee leader of concerted activities on behalf of the Union, the Company has engaged in unfair labor prac' ces defined in Section 8(a)(3) and (1) of the Act. 6. All truckdrivers and warehousemen employed by the Company , excluding the warehouse super- visor , office clerical employees and supervisors as defined in the Act, constitute a unit appropriate for purposes of collective bargaining. 7. At all times since December 7, 1966, the Union has been the exclusive representative for WITTOCK SUPPLY COMPANY 211 purposes of collective bargaining of employees in the aforesaid unit. 8. By eliminating a customary Christmas bonus and by reducing employee work opportunities and regularly scheduled overtime by changing shift and lunch periods , all without notice to or consultation and bargaining with the Union , the Company has engaged in unfair labor practices defined in Section 8(a)(5) and (1) of the Act. 9. The aforesaid unfair labor practices affect commerce within the meaning of Section 2(6) and (7) of the Act. 10. Except as specifically found herein, the Company has not engaged in unfair labor practices alleged in the complaint. RECOMMENDED ORDER Upon the basis of the foregoing findings of fact and conclusions of law , and upon the entire record in this case, it is recommended that the Company, its officers , agents, successors , and assigns , shall: 1. Cease and desist from: (a) Interrogating employees concerning whether they are paying dues to the Union for the purpose of including their withdrawal from the Union. (b) Offering employees financial assistance in connection with their withdrawing from member- shi in the Union. (c) Threatening employees with the hiring of relatives of company officials as a means of dis- sipating the Union 's representative status. (d) Laying off and refusing to recall employees because of their relationship to other employees ac- tive in concerted activities protected under the Act. (e) Refusing to bargain with the Union by uni- laterally and without notice to or consultation with the Union eliminating a customary bonus and customary regularly scheduled overtime. (f) In any manner interfering with, restraining, or coercing employees in the exercise of their rights guaranteed under Section 7 of the Act. 2. Take the following affirmative action which is necessary and appropriate to effectuate the policies of the Act: (a) Offer Emil Nygard immediate and full rein- statement to his former or a substantially equivalent position without prejudice to his seniority and other rights and privileges, and make him whole for loss of earnings in accordance with the provisions of this Decision above entitled "The Remedy. "6 (b) 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 or appropriate to analyze and give effect to the backpay require- ments hereof. (c) Upon request, bargain collectively with the Union with respect to customary bonuses, shift starting and ending hours, and duration of lunch periods, and embody any understanding reached as a result of such bargaining in a signed memoran- dum of agreement. (d) Post at its premises copies of the attached notice marked "Appendix."' Copies of said notice, on forms provided by the Regional Director for Re- gion 30, after being duly signed by the Company's authorized representative, shall be posted im- mediately upon receipt thereof, and be maintained thereafter for 60 consecutive days, in conspicuous places, including all places where notices to em-1 ployees are customarily posted. Reasonable steps' shall be taken by the Company to ensure that said notices are not altered, defaced, or covered by other material. (e) Notify the Regional Director for Region 30, in writing, within 20 days from the date of this Decision, what steps have been taken to comply, with the terms hereof.8 IT IS FURTHER RECOMMENDED that the complaint be dismissed with respect to those allegations of un- fair labor practices not herein found to have been committed. APPENDIX NOTICE TO ALL EMPLOYEES Pursuant to the Recommended Order of a Trial Examiner of the National Labor Relations Board, and in order to effectuate the policies of the Na- tional Labor Relations Act, as amended, we hereby notify our employees that: WE WILL NOT question employees as to whether they are paying dues to Teamsters Local Union No. 328, affiliated with Interna- tional Brotherhood of Teamsters, Chauffeurs, Warehousemen and Helpers of America. WE WILL NOT offer employees financial assistance in connection with replacement of the above-named Teamsters local by any other union. WE WILL NOT threaten employees with the destruction of the above-named Teamsters lo- cal's majority status by the hiring of numbers of relatives of company officials. ' Since Nygard is approaching the age of 69 years, no provisions are recommended herein respecting the possibility of his service in the Armed Forces. r In the event that this Recommended Order is adopted by the Board, the words "a Decision and Order" shall be substituted for the words "the Recommended Order of a Trial Examiner" in the notice. In the further event that the Board 's Order is enforced by a decree of a United States Court of Appeals, the words "a Decree of the United States Court of Ap- peals Enforcing an Order" shall be substituted for the words "a Decision and Order" " In the event that this Recommended Order is adopted by the Board, this provision shall be modified to read - " Notify said Regional Director, in writing , within 10 days from the date of this Order, what steps Respondent has taken to comply herewith." 353-177 0 - 72 - 15 212 DECISIONS OF NATIONAL LABOR RELATIONS BOARD WE WILL NOT lay off employees because they are relatives of other employees who are leaders in activities on behalf of the above- named Teamsters local. WE WILL NOT refuse to bargain with the above-named Teamsters local by eliminating Christmas bonuses and customary overtime without notice to and bargaining with the aforesaid Teamsters local and WE WILL on request bargain with the Teamsters on these and other matters of collective bargaining. The appropriate unit for collective bargaining is: All truckdrivers and warehousemen em- ployed by the Company, excluding the warehouse supervisor , office clerical em- ployees and supervisors as defined in the Act. WE WILL offer Emil Nygard immediate and full reinstatement to his former or a substan- tially equivalent position and make him whole for loss of pay as a result of our discriminating against him. All our employees are free to join or assist the Teamsters Local No. 328. WITTOCK SUPPLY COMPANY (Employer) Dated By (Representative ) (Title) This notice must remain posted for 60 consecu- tive days from the date of posting and must not be altered , defaced, or covered by any other material. If employees have any question concerning this notice or compliance with its provisions, they may communicate directly with the Board 's Regional Office, Second Floor Commerce Building, 744 North Fourth Street , Milwaukee , Wisconsin 53203, Telephone 272-3861. Copy with citationCopy as parenthetical citation