118 NLRB 174
Nassau and Suffolk Contractors' Association, Inc.
174
DECISIONS OF NATIONAL LABOR RELATIONS BOARD
Nassau and Suffolk Contractors' Association, Inc., and its mem-
bers listed in Appendix A and Peter Batalias and Local 138,.
International Union of Operating Engineers, AFL-CIO, Party
to the Contract
Local 138, International Union of Operating Engineers , AFL-CIO,
and Peter Batalias and Nassau and Suffolk Contractors' As-
sociation, Inc., and its members listed in Appendix A, Party to
the Contract
Hendrickson Brothers, Inc. and Peter Batalias and Nassau and
Suffolk Contractors' Association, Inc., and its members listed.
in Appendix A, Local 138, International Union of Operating
Engineers, AFL-CIO, Parties to the Contract.
Cases Nos..
2-CA-4208,2-CB-1438, and 2-CA-4f09. June 18,1957
DECISION AND ORDER
On September 18, 1956, Trial Examiner David London issued his.
Intermediate Report in the above-entitled proceeding, finding that
the Respondents had engaged in and were engaging in certain unfair
labor practices and recommending that they cease and desist therefrom
and take certain affirmative action, as set forth in the copy of the Inter-
mediate Report attached hereto.
Thereafter, the Respondents filed
exceptions to the Intermediate Report and supporting briefs.
The
Board heard oral argument at Washington, D. C., on January 24, 1957..
Representatives of the General Counsel, the Charging Party, the
Respondent Association, the Respondent Hendrickson, and the Re-
spondent Union appeared and participated in the oral argument.
Pursuant to the provisions of Section 3 (b) of the National Labor
Relations Act, the Board has delegated its powers in connection with
this case to a three-member panel [Chairman Leedom and Members
Murdock and Bean].
The Board has reviewed the rulings made by the Trial Examiner at
the hearing and finds that no prejudicial error was committed. The
rulings are hereby affirmed.'
The Board has considered the Intermedi-
ate Report, the exceptions and briefs, the oral argument, and the entire
record in the case, and hereby adopts the Trial Examiner's findings,
conclusions, and recommendations, except as modified hereinafter.2
1. We agree with the Trial Examiner that the 1944 collective-
bargaining agreement between the Association and the Union as re-
newed periodically thereafter contains unlawful hiring provisions
I The Trial Examiner erred in taking official notice of the criminal conviction of John
De Boning, Sr.
We have not considered the fact of his conviction in reaching our deci-
sion.
Accordingly, we do not deem the Trial Examiner's error prejudicial.
2 The Trial Examiner found that Frank Fatscher was an official of Ted Fatscher, Inc.
The record shows, and we find, that he was only an employee of that Respondent.
118 NLRB No. 19.
NASSAU AND SUFFOLK CONTRACTORS' ASSOCIATION, INC. 175,
and that the so-called savings clause is not sufficient to purge those
provisions of their illegal effect.3
The Respondents contend that the unlawful clauses have not been
enforced and consequently there has been no violation of the Act.
Where contracting parties agree not to enforce and in fact do not en-
force an unlawful union-security clause, the Board has held that there
is a violation of Section 8 (a) (1) and 8 (b) (1) (A), but not of
Section 8 (a) (3) and 8 (b) (2). If the contracting parties go further
and inform employees of their intention, no violation at all will be
found.'
There is no evidence in this case either of an agreement by the
Respondents not to enforce the hiring provisions of their contract or
of notification to employees to that effect.
On the contrary, the evi-
dence is overwhelming that the unlawful hiring clauses were in fact
enforced according to their terms.5
The fact that a few individuals.
may have been hired without clearance from the Union does not
destroy the cumulative effect of testimony by numerous master me-
chanics and company officials establishing that hiring was done in
conformity with the provisions of the 1944 agreements
Accordingly,,
we find, as did the Trial Examiner, that by continuing in effect the
closed-shop provisions of the 1944 collective-bargaining agreement,
Respondent Association and Respondent Hendrickson violated Section
8 (a) (1), (2), and (3), and Respondent Union violated Section 8 (b).
(1) (A) and (2) of the Act.'
2. We agree with the Trial Examiner that Respondents Hendrick-
son and Davis Construction Corp., but not Ted Fatscher and William
H. Greene, have unlawfully interfered with the administration of the
affairs of Respondent Union by the voting of certain executives and
supervisors at union meetings.
There are insinuations in this case of corruption in and maladminis-
tration of the affairs of the Union and collusion between union officials
and Employers intended to give trade advantages to some Employers as
against others.
Because of the public importance of such issues, with
which the Board Members as individuals are as much concerned as
any other citizens, something must be said of the Board's power as an
agency of the United States Government to deal with them. The
' N. L. B. B. v. Gottfried Baking Co ., Inc., et al., 210 F. 2d 772 ( C. A. 2) ; Gaynor
News Company, Inc. v. N. L. P. B., 197 F. 2d 719 (C. A. 2), affd. 347 D. S. 17.
1 Gottfried Baking Company, Inc., 103 NLRL' 227, 246, enfd. 210 F. 2d 772 (C. A. 2) ;
Port Chester Electrical
Construction Corporation, 97 NLRB 354 ;
see County Electric
Co., Inc., 116 NLRB 1080.
5 Testifying to this effect were Master Mechanics Louis Wilkens , Clifford Smith, George
Henry, Gerard Douglas, William Kreischer, and Charles Hansen. Company executives giv-
ing similar testimony were Charles Davis, Joseph Brennan, and Frank Marmorale. John
De Koning,, a former business representative of the Union, also testified that the closed-
shop provisions were enforced.
6 N. L. R. B. v. Local 369, International Hod Carriers' Building and Common Laborers'
Union of America, AFL, 240 F. 2d 539 (C. A. 3).
7N. L. P. B. v. Gottfried Balking Co ., Inc., et al., 210 F. 2d 772 (C. A. 2).
176
DECISIONS OF NATIONAL LABOR RELATIONS BOARD
National Labor Relations Board is a creature of statute. It has only
those powers which Congress has delegated to it. The primary purpose
of the Act is to prescribe and protect the rights of employers and
employees in dealing with one another.
The Board does not have
criminal, restraint of trade, or antitrust jurisdiction 8
It has been
given no power to deal with corruption within a labor union. Neither
the possibility of the perpetration of such offenses nor whatever find-
ings may be made respecting their commission by duly constituted
authority has any bearing upon our determination of whether, on
the record before us, the statute has been violated?
The Board has no authority to interfere with the internal ad-
ministration of a labor organization.
Although Section 8 (b) (1)
(A) makes it an unfair labor practice for a labor organization to re-
strain or coerce employees in the exercise of rights guaranteed in
Section 7, Congress added a caveat that this does not "impair the right
of a labor organization to prescribe its own rules with respect to the
acquisition or retention of membership therein."
This limitation
means, according to the courts and the legislative history, that labor
organizations may "enforce their internal policies upon their member-
ship as they see fit." 10
The Board cannot interfere. It is only if the
labor organization causes or attempts to cause an employer to dis-
criminate, by discharge or otherwise, against an employee ousted from
the union for some reason other than the failure to tender periodic
dues and initiation fees that the Board has the authority to step in
and protect the employee in his job rights."
There is, incidentally, no
allegation in the present case that Respondent Union or its agents re-
strained or coerced employees in the exercise of rights guaranteed by
the Act,.except by being a party to an unlawful closed-shop contract.
There is an allegation that the Union caused or attempted to cause
the Association to deny employment to members of the so-called re-
form group within the Union, but no proof was offered in support of
this allegation.
The Trial Examiner recommended its dismissal and
no exceptions thereto have been filed by the General Counsel.
We
have accordingly adopted this recommendation pro forma.
Although the Board has no jurisdiction over what employees them-
selves do in the administration of their labor union affairs, the Act
does make it unlawful for an employer "to dominate or interfere
with the formation or administration of any labor organization or
contribute financial or other support to it." (Section 8 (a) (2).)
The
principal allegations of the complaint are based upon this section.
8 Cf. Allen-Bradley Co . v. Local Union No. 3, 1 . B. E. TV., 325 U. S. 797.
0 Cf. Imperial Reed & Rattan Furniture Co., 117 NLRB 495.
10 American Newspaper Publishers Association V. N. L. R. B ., 193 F. 2d 782, 800, 806
(C. A. 7), affd. 345 U. S. 100; Legislative History of the Labor Managements Relations
Act, 1947, pp. 1097, 1141, 1142, 1420.
12 Union Starch & Refining Co . v. N. L. R. B., 186 F. 2d 1008, 1012 (C. A. 7).
NASSAU AND SUFFOLK CONTRACTORS' ASSOCIATION, INC. 177
The complaint alleges in general terms that Respondent Association
and its members dominated, assisted, contributed to the support of
and interfered with the administration of Respondent Union by caus-
ing its supervisors to become and remain members of the Union, to
attend and participate in general membership and executive board
meetings of the Union, and to assume and retain official positions on the
Union's executive board and in other official positions of a policy-
making, executive, and governing nature. There is no allegation that
Respondent Association dominated or interfered with the administra-
tion of Respondent Union through the medium of corruption. The
complaint allegations rest entirely on the role played within the Union
by certain supervisors, principally master mechanics.
The Trial
Examiner made the following findings of Section 8 (a) (2) violations:
... by voting at membership meetings of the Union on matters
involving the administration of that organization's affairs,
officers and supervisors of Respondents Hendrickson Brothers,
Inc., Ted Fatscher,12 Davis Construction Corp., and William H.
Greene interfered with the administration of the Union... .
... by the participation, in behalf of the Union, by Supervisors
Smith and Dean in bargaining negotiations with the Association,
their employers, Hendrickson Brothers, Inc., and Radory Con-
struction Corp., respectively, interfered with and dominated the
administration of the Union's affairs... .
[As Hendrickson] was negotiating as the duly authorized rep-
resentative and agent of the Association and all its members .. .
his conduct in continuing to acknowledge, recognize, and deal
with Smith as a representative of the employees must be attributed
to his principal, the Association and all its members.
It will be noticed that the Trial Examiner has found to be violative
of Section 8 (a) (2) only (a) the voting by officers and supervisors at
union meetings, and (b) the participation of Master Mechanics Smith
and Dean in bargaining negotiations in behalf of the Union. It will
be further noted that the Trial Examiner found the voting by super-
visors and officers to constitute only interference with the administra-
tion of the Union, and that the finding of domination rests entirely
on the fact that Master Mechanics Smith and Dean were members of
the Union's negotiating committee.
There is no finding that employers
influenced union action by bribes or other corrupt means and no
finding that the bonuses annually paid to Smith were intended to in-
fluence his action as a member of the Union's negotiating committee.
19 The Trial Examiner found Ted Fatscher responsible because of his erroneous finding
that his brother Frank Fatscher was an officer of the Ted Fatscher firm. In fact, Frank
Fatscher is only an employee of his brother 's company, as the General Counsel conceded
at the oral argument.
On the Trial Examiner's theory, no violation should therefore be
found against Ted Fatscher.
450553-58-vol. 118
13
178
DECISIONS OF NATIONAL LABOR RELATIONS BOARD
In fact, Radory Construction Corp., the employer of Master Mechanic
Dean, is found to have dominated the Union, although there is no
evidence that Dean was the recipient of any kind of bonus from his
employer.
The General Counsel has not filed exceptions to the Trial
Examiner's report.
Accordingly, the issues posed are :
(1) Whether the fact that officers and supervisors of certain Asso-
ciation members voted at union membership meetings constitutes un-
lawful interference with the administration of that labor organization.
(2) Whether in dealing with,a union negotiating committee which
included two master mechanics the employers of those master me-
chanics unlawfully interfered with and dominated the administration
of the affairs of the Union.
(3) Whether the other members -of the Association are equally
responsible for the conduct described in issue (2) above.
In order to treat these issues adequately some background facts are
necessary.
The Union has been in existence since about 1933. There
is no contention and no evidence that it was employer dominated in
its inception.
In accordance with the constitution of the Union's
International, Local 138 has two branches-Locals 138A and 138B.1'
The membership of Local 138 comprises qualified operating engineers,
that of 138A apprentices, oilers, and firemen, and that of 138B engi-
neers engaged in other than heavy and building construction work.
Again according to the International's constitution, both branches
function under the direction and control of the parent local-138.
Members of branch locals may not vote in their parent local except
with the consent of the parent; "provided, however, that they may
not vote, even should such consent be granted, in any election of of-
ficers of the parent Local Union, nor shall they hold office in their
parent Local Union, nor shall they elect officers in their subdivi-
sions.""
Local 138 has about 518 members, 138A about 435, and 138B
about 270.15
Among the members of Local 138 are master mechanics. They are
mostly long-time union adherents and are very active in the ad-
ministration of the affairs of the Union.
At least one master mechanic,
Louis Wilkens, employed by a member of the Association, is a leader
of the reform faction within the Union.
The collective-bargaining
contract between the Respondents requires that a master mechanic
be employed where there are five or more operating engineers at work.
They are supervisors.ls
Some of the master mechanics have regular
13 Constitution of International Union of Operating Engineers
( 1952), article XiV,
sections 1 and 4.
14 Id. article XIV, section 5.
1, The Trial Examiner found that Local 138 had 158 members. The testimony shows,
however, and the General Counsel conceded at the oral , argument, that the correct figure is
about 518.
13 The Respondents contend that the master mechanics are not supervisors .
Although
there is some testimony to this effect , we find that the preponderance of the testimony es-
NASSAU AND SUFFOLK CONTRACTORS' ASSOCIATION, INC. 179
jobs with one employer.
Some shift from job to job. Those doing
so may be it master mechanic on one job and an ordinary operating
engineer on another.
An individual working for a single employer
may also be a master mechanic at one time and an operating engineer
at another, depending upon whether the number of operating engi-
neers employed falls below or rises to the level of five.
Master mechanics are included in the unit represented by the Union.
They are covered by the existing collective-bargaining contract per-
taining to rank-an.d-file employees and are required to be members in
good standing of the Union.
The contract says that the "master
mechanic shall be designated by the employer."
However, Local
138's bylaws (article 7, section 10) provide that "Employment of
Master Mechanics is to be governed by agreement, and they shall be
members of this Local Union. They may accept such employment
only with the consent of this Local Union." This requirement of union
approval for master mechanics is lived up to. In fact, in some cases
the Union appears actually to designate the individual who is to act
as master mechanic on a given job.'
The master mechanic is not only a union member, he is also the
Union's shop steward on the job.
A shop steward, according to the
Union's' bylaws, is appointed by the business manager and is "re-
sponsible for working conditions on the job." (Article 7, section 7.)
A member arriving on or leaving a job must report to the shop steward,
who is required to make a weekly report in writing to the business
manager. (Article 7, sections 8 and 9.)
In addition to the master mechanics who are required to be members
of the Union, there are other supervisors and company executives who
are members of the Union although not required to be such. These
are individuals who became members of the Union when they were
tablishes ,
as concluded by the Trial Examiner, that they are supervisors .
Thus, the
collective -bargaining contract between the Respondents provides that there shall he 1
master mechanic where there are 5 or more operating engineers employed and "under
the direction of the employer
[ he] shall be responsible for the hiring and firing of and
the performance of their duties by the engineers , maintenance engineers, junior and ap-
prentice engineers , firemen and oilers ."
The agreement also provides that when an engi-
neer , fireman , or apprentice is employed intermittently to operate a machine , "he shall
do such other work during the period when his machine cannot be operated as may be
determined by the Master Mechanic."
These powers of the master mechanic bring him
within the definition of supervisor contained in Section 2 (11) of the Act.
ss In a companion case, A.
Cestoac Company, 118 NLRB 669, involving charges of
discrimination made against another employer and the Union, Trial Examiner London
found that the master mechanic appeared on the job and bluntly introduced himself "as
the
master
mechanic [who ]
had just come from the Union hall." He was hired
although lie had never previously spoken to company representatives.
At the hearing the
company president was asked whether the company had had anything to do with the
"selection or hiring of the master mechanic ."
He answered :
No, truthfully a master mechanic , as far as a contractor is concerned , is not desir-
able.
we know that you have to have one, that is a union ruling , so I went to Mr.
Sofield , and I said so long as I have to have a master mechanic, please send me someone
who has worked on this kind of work before, who has watched these types of ma-
chines that are on these jobs.
At least I can get the best service out of him.
180
DECISIONS OF NATIONAL LABOR RELATIONS BOARD
ordinary operating engineers and have retained their membership
in order to enjoy the various benefits of that membership, especially
the right of union employment should they revert to rank-and-file
status.18
Among these executives is Milton Hendrickson, president
of Respondent Hendrickson Brothers, Inc., who has been a member
of the Union since 1936.
He was employed as an operating engineer
from 1936 to 1942, A a master mechanic from 1942 to 1947, and as an
executive of his present company since 1947.
The Trial Examiner
specifically held that the mere maintenance of membership in the
Union by executives and supervisors was not violative of the Act.10
An employer, particularly a corporate employer, acts through
agents, among whom are his supervisors. The employer is responsible
for the conduct of his supervisors on the basis of common law rules
of agency.20
Ordinarily when a supervisor injects himself into union
affairs the employer is held liable for his conduct.
But this is not
invariably so.
In certain situations, the Board and the courts have
recognized that a supervisor participating in union matters is acting
in his individual rather than in his representative capacity and have
refused to hold the employer responsible for his conduct.
For ex-
ample, in quite a number of industries foremen are members of the
same union and are included in the same bargaining contract as rank-
and-file production workers.21
This is particularly true in the building
trades.
Nearly all the building-trades unions require foremen to be
union members.
Foremen usually work with tools along with
the men they supervise.
Union contracts therefore often regulate
their wages, hours, ratio to journeymen, and the conditions under
which they may use tools. Foremen are considered agents of
the employer, with power to hire and fire under the terms of the
contract.
They are under the control of the union, however, to the
's Some individuals who rise above the rank of master mechanic take withdrawal cards
from the Union. It seems to be an individual choice whether to drop membership entirely,
retain membership, or secure a withdrawal card.
The holder of a withdrawal card seek-
ing reinstatement to full good-standing membership must file an application with the
local union, must submit to examination by a committee which reports on his character
-and qualifications, and to a vote by the membership of the local.
By a majority vote the
membership may accept or reject the application for reinstatement. (International con-
stitution, article XV, section 4.)
19 Section 14 (a) of the Act provides : "Nothing herein shall prohibit any individual
employed as a supervisor from becoming or remaining a member of a labor organization,
but no employer subject to this Act shall be compelled to deem individuals defined herein
as supervisors as employees for the purpose of any law, either national or local, relating
to collective bargaining."
20 Section 2 (13) of the Act.
-
21 "Foreman membership in unions and the inclusion of foremen under agreements cov-
ering production workers are general in. the printing and building trades , in the metal
trades insofar as they operate on a craft basis, in many of the railroad trades, and to a
greater or lesser extent , among the teamsters , longshoremen , and others."
United States
Department of Labor, Bulletin No. 745 , Union Membership and Collective Bargaining by
Foremen ( 1943), p. 1.
NASSAU AND SUFFOLK CONTRACTORS' ASSOCIATION, INC. 181
extent that foremen who violate union rules are suspended and
this automatically ends their foremanship.22
Before the enactment of the Taft-Hartley Law, the Board included
foremen in the same unit with production and maintenance employees
when such inclusion was customary in the industry 23
Where foremen are members of the rank-and-file unit and union, it
is reasonable to expect that they will have a voice and vote in the ad-
ministration of the affairs of the union. It is obvious that in a setting
where foremen are included in bargaining units together with the rank
and file some modification of the ordinary rules of respondent superior
must be made. The Board and the courts have indeed recognized this
fact and have adapted a more limited theory of employer liability for
the conduct of supervisors included in a rank-and-file bargaining unit.
Thus, when a supervisor who was included in a bargaining unit with
nonsupervisory employees made certain antiunion remarks, the Board
refused to hold his employer automatically responsible for what the
supervisor had said. Supervisors included in the unit, the Board said,
"had the same right as rank and file employees to express their views
as to the undesirability of representation by the Union.
Liability
for such statements and activities may be attributed to the respondent
only upon a showing that the respondent `encouraged, authorized, or
ratified their activities or acted in such manner as to lead the em-
ployees reasonably to believe that the foremen [supervisors] were
acting for and on behalf of management.' " 24
Applying this principle
to a case of alleged domination, the Board refused to consider the fact
that supervisors were active in behalf of a union as evidence of assist-
ance to, or domination of, that union where supervisors were included
in the bargaining unit and campaigned for both the charging and
the alleged dominated union, in the absence of evidence that the re-
spondent had "encouraged, authorized, or ratified" such activities .21
And in the Wayside Press case,26 the circuit court of appeals refused
to uphold a Board finding of violation of Section 8 (a) (2) based on
the participation of foremen in the affairs of an independent union,
23 Id. at p. 3.
23E. g., La Salle-Crittenden Press, Inc., 72 . NLRB 1166 ; Grace Line, Inc., 74 NLRB
174.
By redefining the term "employee" so as to exclude supervisors, the Taft-Hartley
Act has made mandatory the exclusion of supervisors from any unit found appropriate
by the Board .
It does not , however, prohibit employers and unions from voluntarily in-
cluding supervisors in bargaining units.
4 Mississippi Valley Structural Steel Company, 64 NLRB 78, 79.
When a supervisor is included in the unit . . . the employees obviously regard him as
one of themselves .
Statements made by such a supervisor are not considered by em-
ployees to be the representations of management, but of a fellow employee .
Thus they
do not tend to intimidate employees.
Montgomery Ward & Co., Incorporated, 115 NLRB 645 , 647, enfd. 242 F. 2d 497 ( C. A. 2).
25 Indianapolis Newspapers , Inc., 103 NLRB 1750, set aside on other grounds in 210 F.
2d 501 (C. A. 7).
26 Wayside Press, Inc. v. N. L. R. B .; 206 F. 2d 862 (C. A. 9), denying enforcement to
Wayside Press, Inc., 103 NLRB 11.
182
DECISIONS OF NATIONAL LABOR RELATIONS BOARD
where the charging union, as did the independent union, customarily
admitted foremen to membership.
The court said (at p. 866)
In attending the meeting, and in nominating the officers to run the
Independent Union, the foremen were only exercising their rights
as union members. . . . It must be kept in mind that acts of
such minor supervisory employees must be considered in their
setting.
We have been told that "acts of supervisory officials are not to be
viewed in vacuo.
Instead they are to be `taken in their setting.' , 1 21
In other words, the responsibility of an employer for the conduct of
a supervisor cannot be ascertained by mathematical formulas.
Rather
it is the circumstances which determine the liability. If we examine
the circumstances of this case, we find that the master mechanics are
foremen with the powers accompanying such positions in the con-
struction industry.
They are not executives, or officers, as the dissent
seems to imply. In addition the master mechanics owe allegiance at
least as much to the Union as to their employers. They are agents of
both?3
They obtained their positions only with the approval of the
Union and the latter can cause their discharge by ousting them from
membership. In long-unionized industries, the impetus for requiring
foremen to be members of the rank-and-file union has come from the
latter.
In this setting it is totally unrealistic to attribute automatic respon-
sibility to an employer for the role played by the foreman in his union.
Certainly in the printing, publishing, and construction industries,
where the inclusion of foremen in rank-and-file units and unions is
a practice of long standing, employers would ridicule the idea that they
dominate or interfere with the administration of such union because
some of their foremen may be active within the union's administration.
There is an obvious difference between the situation where foremen
organize employees into one union in a context of unfair labor practices
and hostility to another union, and the situation where, as here, the
foremen are merely active in the administration of their own union to
which they have belonged for many years as is customary in the in-
dustry.
All the cases relied on by the dissent to support the charge
of alleged deviation from precedent are representative of the former
type of situation.
We have been able to find only two cases analogous to the present
one.
In both cases, the alleged dominated union was an unaffiliated
union.
In one case 29 the Board, and in the other the court,30 refused to
2.;V. L. B. B. v. Brown Co., 100 F. 2d 449, 455 (C. A. 1), setting aside 65 NLRB 208.
21 N. L. B. B. v. Local .1976, United Brotherhood of Carpenters ( Sand Door & Plywood
Co.), 241 F. 2d 147 (C. A. 9) ; Grove Shepherd Wilson & Kruge, Inc., 109 NLRB 209, 215.
'° Indianapolis Newspapers, Inc., supra.
30 Wayside.Press, Inc. v. N. L. R. B., supra.
NASSAU AND SUFFOLK CONTRACTORS' ASSOCIATION, INC. 183
find unlawful assistance to, or domination of, the unaffiliated union
because of the conduct of supervisors included in the unit.
A majority
of the Board, which included Member Murdock, said in the Indian-
apolis case (at p. 1751) :
The record shows that zone supervisors, whose supervisory status
is conceded by all the parties, and district managers, whose alleged
supervisory status is disputed, were in the unit bargained for by
the complainant Guild and were active on its behalf.
In the ab-
sence of evidence, as here, that the Respondent encouraged, author-
ized, or ratified their activities or acted in such manner as to lead
employees reasonably to believe that the supervisors were acting
for and on behalf of management, we, like the Trial Examiner, do
not believe that their conduct constituted assistance to, or domina-
tion of, the Association.
We believe that this represented good sense and good law when it was
written in 1953 and that it is good sense and good law today. The
rule makes no distinction between kinds of unions. It was applied
in that case to a newly organized unaffiliated union ; we apply it in this
case to a long established affiliated union.
Member Murdock is there-
fore in error in saying that we are applying a different rule for a long
established union than we would for a newly organized union.
As the rule points out the Respondent Employers may be liable for
the intraunion conduct of the master mechanics if it can be shown that
they "encouraged, authorized, or ratified" the activities of the master
mechanics or "acted in such manner as to lead employees reasonably
to believe" that the master mechanics were acting for and on behalf
of management. There is not a scintilla of evidence that could support
a finding to that effect.
Under the circumstances, we find, contrary to
the Trial Examiner, that the Respondent Association and its mem-
bers are not responsible for the conduct of master mechanics and by
such conduct did not therefore unlawfully interfere with the adminis-
tration of the Union.
In addition to master mechanics, certain other supervisors not in-
cluded in the bargaining unit and some executives were identified as
having participated in union elections.
These included : Milton Hen-
drickson, president of Hendrickson Brothers; Charles Verity, Walter
Hagen, and Edward Cahill, job superintendents for Hendrickson
Brothers; Albert Penn, shop foreman for Hendrickson Brothers;
and Charles Davis, secretary and master mechanic of Davis Construc-
tion Co."
So far as appears from the record, these individuals did
at Charles Salerno, an executive of R. Salerno Bros., Inc., a member of the Association,
was also identified as having been present at the October 1954 union election.
How-
ever, the Trial Examiner has not made a finding that Salerno Bros. thereby interfered with
the administration of the Union and no exceptions to this failure to find have been filed.
184
DECISIONS OF NATIONAL LABOR RELATIONS BOARD
nothing more than appear at a union meeting and vote at a secret elec-
tion concerning administration of the Union.
However, voting in
union elections is plainly a form of interference with the administra-
ation of a labor organization. It may not be unlawful for company
executives and high-ranking supervisors to retain the union member-
ship they acquired as rank-and-file employees as job insurance in the
event they should revert to ordinary employee status, but that does
not make it lawful for them to participate in elections to determine
who is to administer the affairs of the union. It is quite conceivable
that in a closely divided vote executive and high-ranked supervisors
would have the balance of power and be in a position to select the union
officials who are to deal with them in their separate capacity as em-
ployer agents.
Accordingly, we find, as did the Trial Examiner, that
by the foregoing conduct Respondents Hendrickson Brothers, Inc.,
and Davis Construction Corp. unlawfully interfered with the admin-
istration of the Union in violation of Section 8 (a) (1) and (2) of the
Act. 12
3. As stated, the Trial Examiner found that the participation of
Master Mechanics Smith and Dean in bargaining negotiations on be-
half of the Union proves that their employers unlawfully dominated
and interfered with the administration of the Union's affairs.
We
agree that this conduct constitutes unlawful interference, but not
domination.
On July 1, 1955, after unfair labor practice charges in this case had
been filed, the Union's executive board selected a committee of 12
members to negotiate for changes in the existing collective-bargaining
contract with the Association .13
Of the 12 members appointed 8 were
master mechanics, including 2-Clifford Smith and William Dean-
who were employed by members of the Association. The Trial Ex-
aminer holds the Association responsible only for the participation
of Smith and Dean in bargaining negotiations. The other six master
mechanics were employed by companies which are not members of the
Association and for whom the latter is not shown to have any re-
sponsibility.
Except for proof that the 1955 negotiations resulted in
substantial wage increases for employees," there is no evidence of
how negotiations were conducted or the extent of participation in
these negotiations by Smith and Dean.
The complaint alleged that Respondent Association caused its rep-
resentatives to assume and retain official positions of a policy-making
or administrative nature with the Union.
There is no evidence that
32 Cf. Birmingham Post Company, 49 NLRB 206 , 207, enfd. 140 F. 2d 638 (C. A. 5).
Si Article 5, section 1 of the Union 's bylaws provides that members of the executive
board shall be selected by the president.
34 The 1955 negotiations resulted in a wage increase for employees of 45 cents per hour
sbread over a 2-year period .
The rate for master mechanics was fixed at not less than
$225 per week.
NASSAU AND SUFFOLK CONTRACTORS' ASSOCIATION, INC. 1b'a
Respondent Association or its members were in any way responsible
for the appointments of Smith and Dean to the negotiating committee
or for their retention on such committee.
The Trial Examiner's find-
ing apparently rests entirely on the fact that Smith and Dean par-
ticipated in the negotiations without protest from their employers.
This is not sufficient, in our opinion, to establish that the employers
of Smith and Dean thereby dominated the Union.
The statute does not define what is meant by a dominated labor.
organization.
Nor has the Board enunciated such a test. The courts
have, however, stated that ". . . the test, whether a challenged organi-
zation is employer controlled, is not an objective one but rather sub-
jective, from the standpoint of employees." 35
As pointed out above,
there is no evidence that Respondent Association or its members were
.in any way responsible for the appointment of Smith and Dean to
the negotiatincommittee. In fact, since the appointments were
made after the-unfair labor practice charges had been filed, it seems
extremely improbable that the Respondent Employers would have
been guilty of so stupid an act if they had had any part in these selec-
tions.
Moreover, we do not believe that the appointments of Smith
and Dean would give members of the Union just cause to believe that
they were employer instruments for the control of the negotiating
committee.
First, as master mechanics they were among the oldest
members of the Union. Secondly, as the Union's job stewards they
were the representatives of the Union and of the Union's members on
the job.
Thirdly, they were included in the bargaining unit and were
required to be members of the Union.
And finally, they held their
positions as master mechanics only with the approval of the Union
and subject at all times to its discipline. In the absence of some
other evidence of employer control employees are not likely to believe
that their labor organization is controlled by the Respondent Em-
ployers from the mere fact that the heads of the Union selected Smith
and Dean as 2 of the 12-man negotiating committee.
A far more
likely employee inference from all the facts is that the Union is strong
enough to dominate the Employers.
However, Congress has not seen
fit to make it an unfair labor practice for a labor organization to
dominate or interfere with the administration of an employer's busi-
ness. Accordingly, we do not adopt the Trial Examiner's finding that
Respondent Association or its members have dominated Respondent
Union in violation of Section 8 (a) (2) of the Act.
Our dissenting colleague's belief that the Union is a bad union and
should be dissolved has likely influenced his conclusion that it is under
the control of Respondent Association.
We can share his moral indig-
se N. L. R. B. v. Thompson Products, Inc., 130 F. 2d 363, 368 (C. A. 6) ; N. L. R. B. v.
Sharple8 Chemicals, Inc. 209 F. 2d 645, 652 (C. A. 6).
Accord : N. L. R. B. v, Jay Com-
pany, Inc., 227 P. 2d 416, 419 (C. A. 9) ; Sperry Gyroscope Co. v. N. L. R. B., 129 F. 2d
922, 924 (C. A. 2).
186
DECISIONS OF NATIONAL LABOR RELATIONS BOARD
nation, yet we cannot permit that feeling to override our duty to apply
the law as it is and not as we think it ought to be.
We have already
referred to the fact that the Board does not have power to police the
internal operations of labor unions. It cannot dissolve or disestablish
labor unions because the leadership is corrupt, criminal, dictatorial, or
otherwise insufficient.
These problems of internal union management
or government must be resolved by the members themselves, the
Union's International, or perhaps in specific aspects by other agencies
of the Government.
Member Murdock would, we believe, subscribe
to this statement of the limitation of the Board's powers.
Yet it
seems to us that he is acquiescing in a recommendation to do indirectly
what the Board cannot do directly and what he would not even do
indirectly but for the nature of the Union's leadership.
There are many industries where for a very long time foremen have
been included in the same bargaining unit and union as the rank and
file.
No doubt in many such cases the foremen are active in the affairs
of the union, serve on union committees, and are even union officers.
It has not heretofore been contended, to the best of our knowledge,
that where such conditions exist the employer must necessarily be
considered as dominating the bargaining representative.
We are not
willing to hold that the voluntary inclusion of foremen in a bargaining
unit of nonsupervisory employees is per se proof of employer domina-
tion and justifies disestablishment of the union representing such unit.
And to require the employer to exercise some sort of veto power over
the appointment of foremen to official positions within the union to
avoid the charge of domination would seem to involve interference in
the affairs of the union, which is precisely what Section 8 (a) (1) of
the Act is designed to prevent.
Apparently contrary to our colleague's views, it seems clear to us
that in some industries, particularly construction, unions are strong
enough to compel employers to relinquish control of their supervisors
to the union. In this industry and in this Union, the presence of master
mechanics on various union committees is not sufficient to establish that
the employers control the Union without some evidence connecting the
employers with these appointments.36
36 The dissent refers to the presence of master mechanics on the various union coin-
mittees, but fails to mention that only some of these master mechanics are employed by
members of the Respondent Association .
Thus none of the Respondent Employers' mas-
ter mechanics are on the 13-man executive board , or on the 4-man pension committee ;
only 1 is a member of the 4-man examining committee, only 2 on the 9-man bylaws com-
mittee , and only 2 on the 12-man negotiating committee .
The dissent does not explain
the theory upon which the Respondent Employers can be held responsible for the agents
of other employers .
Similarly , the dissent refers to 50 unidentified owner -operators pres-
ent at 1 of the critical union meetings as represenatives of management and inferentially
at least as responsive to Respondent Association.
The owner-operators are individuals
owning and operating their own
,machines .
There is no connection shown between them
and the members of the Respondent Association.
NASSAU AND SUFFOLK CONTRACTORS' ASSOCIATION, INC. 1.87
Although we have rejected the Trial Examiner's finding that Re-
spondent Association dominated Respondent Union because 2 master
mechanics employed by members of the Association were on the 12-
member union negotiating committee, we do believe that it is improper
for supervisors, even those with predominantly union loyalty, to serve
as negotiating representatives of employees; and to the extent that the
employer acquiesces in such participation the employer is guilty of un-
lawful interference with the administration of the Union. It is true
that we have held that the employers of master mechanics are not re-
sponsible for the roles played by the latter in the internal affairs of
the Union and that their participation in bargaining negotiations in
behalf of the employees does not, under the circumstances of this case,
justify a finding of union domination by the employers of such master
mechanics.
But participation in bargaining negotiations vis-a-vis
the employer is not merely a matter of a union's internal affairs, and,
although conduct may fall short of proving control, it may neverthe-
less constitute unlawful interference with a union's administration.
Despite the large measure of control exercised over master mechanics
by the Union, the mechanics remain in part agents of their employers
with a resulting divided loyalty and interests.
That conflict of in-
terest may be accentuated, as in the case of Clifford Smith, by the
payment of special bonuses at the discretion of the employer.
Em-
ployees have the right to be represented in collective-bargaining nego-
tiations by individuals who have a single-minded loyalty to their in-
terests.
Conversely, an employer is under a duty to refrain from any
action which will interfere with that employee right and place him
even in slight degree on both sides of the bargaining table.
There
is no evidence that employers were responsible for the naming of any
master mechanics to the Union's negotiating committee.
But they
were under a duty, we think, when confronted with a union negotiating
committee which included their own agents, to protest the composition
of the committee and to refuse to deal with it because it was tainted
with an apparent,employer interest. By failing to register such protest
and by actually dealing with the committee as constituted, Respond-
ents Hendrickson and Radory acquiesced in such appointments and to
that extent, we find, interfered with the administration of the Union
in violation of Section 8 (a) (2) and (1) of the Act.
We also find,
in agreement with the Trial Examiner, that as Milton Hendrickson
and the other representatives of the Association who negotiated with
the Union's bargaining committee were acting as agents of the Associa-
tion, the latter and its members as principals are responsible for their
agents' conduct and thereby also violated Section 8 (a) (2) and (1)
of the Act.
188
DECISIONS OF NATIONAL LABOR RELATIONS BOARD
THE REMEDY
We have found that the Respondent Union is a party to an operative
unlawful hiring arrangement with the Respondent Association.
We
shall order the Respondents to cease giving effect to such arrange-
ments.
There is reason for believing that the Union has the same
unlawful hiring arrangement with employers who are not members
of the Association and are not parties to this proceeding.
We shall
therefore order the Union not to give effect to similar unlawful hiring
arrangements with any employer in its jurisdictional area.
We have found that Respondents Hendrickson Brothers, Inc., and
Davis Construction Corp. unlawfully interfered with the administra-
tion of the Union through the participation of supervisors and ex-
ecutives, other than master mechanics, in elections to determine the
Union's officers.
It appears that similar officials employed by other
members of the Association are also likely to have participated in
such elections.37
Our order directing the cessation of such interference
will therefore extend to all members of the Association 38
We shall
also order the Association to cease dealing with any negotiating com-
mittee of the Union which includes in its membership Master Me-
chanics Clifford Smith, William Dean, or any other master mechanic,
whether or not employed by members of the Association. Further,
in view of the serious interference found, we believe that it is necessary,
in order to effectuate the policies of the Act, to require the Association
to withdraw all recognition from the Union unless and until it is
certified as bargaining agent by the Board.
ORDER
Upon the entire record in this case, and pursuant to Section 10 (c)
of the National Labor Relations Act, as amended, the National Labor
Relations Board hereby orders that :
A. Nassau and Suffolk Contractors' Association, Inc., and its mem-
bers listed in Appendix A attached to the Intermediate Report,
Mineola, Long Island, their officers, agents, successors, and assigns,
shall :
1. Cease and desist from :
(a) Maintaining.in their collective-bargaining agreement with the
Respondent Union any provision which requires membership in, or
clearance from, the Respondent Union as a condition of employment,
or which requires that preference in employment be given to members
17 See footnote 31.
38 Employers who are not members of the Association are not before the Board and there-
fore we may not make our order run against them .
However, we expect that the Union
will voluntarily exclude executives and supervisors , other than master mechanics, employed
by nonmembers of the Association from participation in the selection of union officials and
in the administration of its affairs .
This is not intended to bar such individuals from re-
taiAing the membership they may have acquired as nonsupervisory employees.
NASSAU AND SUFFOLK CONTRACTORS' ASSOCIATION, INC. 189
of the Respondent Union, except as authorized in Section 8 (a) (3)
of the Act.
(b) Maintaining and enforcing any agreement, understanding, or
practice wi.preby membership in, or clearance from, the Respondent
Union is required as a condition of employment, or which requires that
preference in en' ployment be given to members of the Respondent
Union, except as authorized in Section 8 (a) (3) of.the Act.
(c) Interfering wish the administration of the Respondent Union,
or contributing support to it by permitting executives and supervisors,
other than master mechanics, to vote at union elections or otherwise
participate in the internal administration of the Respondent Union,
and by conducting collective-bargaining negotiations with any com-
mittee representing the Respondent Union, which includes in its
membership Clifford Smith, William Dean, or any other master
mechanic.
(d) Recognizing Local 138, International Union of Operating
Engineers, AFL-CIO, or any successor thereto, as the representative
of any of their employees for the purposes of collective bargaining
with respect to grievances, labor disputes, wages, rates of pay, hours
of employment, or other conditions of employment, unless and until
such organization shall have been certified by the Board.
(e) In any other manner interfering with, restraining, or coercing
employees or applicants for employment in the exercise of the rights
guaranteed in Section 7 of the Act, except to the extent that such
rights may be affected by an agreement requiring membership in a
labor organization as a condition of employment, as authorized in
Section 8 (a) (3) of the Act.
2. Take the following affirmative action which the Board Finds will
effectuate the policies of the Act :
(a) Withdraw and withhold all recognition from Local 138, Inter-
national Union of Operating Engineers, AFL-CIO, as the represent-
ative of any of Respondent Association's employees for the purposes
of collective bargaining with respect to grievances, labor disputes,
wages, rates of pay, hours of employment, or other conditions of em-
ployment, unless and until said organization shall have been certified
by the Board.
'
(b) Post at their respective business offices in Nassau and Suffolk
Counties, Long Island, New York, and at all projects now being op-
erated by them within the territorial jurisdiction of the Respondent
Union, copies of the notice attached hereto marked "Appendix B." as
Copies of such notice, to be furnished by the Regional Director for the
Second Region, shall, after being duly signed by representatives of
' In the event that this Order is enforced by a decree of a United States Court of Ap-
peals, there shall be substituted for the words "Pursuant to a Decision and Order" the
words "Pursuant to a Decree of the United States Court of Appeals, Enforcing an Order."
190
DECISIONS OF NATIONAL LABOR RELATIONS BOARD
the Respondent Employers, be posted by each of them immediately
upon receipt thereof, in conspicuous places, including all places where
notices to employees are customarily posted.
The notices shall remain
posted for sixty (60) consecutive days thereafter.
Reasonable steps
shall be taken by Respondent Association and its members to insure
that said notices are not altered, defaced, or covered by any other
material.
(b) Notify the Regional Director for the Second Region in writing,
within ten (10) days from the date of this Order, as to what steps
Respondent Association and its members have taken to comply
herewith.
B. Respondent Local 138, International Union of Operating Engi-
neers, AFL-CIO, Uniondale, Long Island, New York, its officers,
agents, successors, and assigns, shall :
1. Cease and desist from:
(a) Maintaining in their collective-bargaining agreements with
Respondent Association and any other.employer within its territorial
jurisdiction over whom the Board would assert jurisdiction, any pro-
vision which requires membership in, or clearance from, the Respond-
ent Union as a condition of employment, or which requires that pref-
erence in employment be given to members of the Respondent Union,
except as authorized in Section 8 (a) (3) of the Act.
(b) Maintaining and enforcing any agreement, understanding, or
practice with Respondent Association or any other employer within
its territorial jurisdiction over whom the Board would assert juris-
diction, whereby membership in, or clearance from, the Respondent
Union is required as a condition of employment, or which requires that
preference in employment be given to members of the Respondent
Union, except as authorized in Section 8 (a) (3) of the Act.
.. (c) In any like or related manner restraining or coercing employees
or prospective employees of members of the Respondent Association
or any other employer within the territorial jurisdiction of the Re-
spondent Union over whom the Board would assert jurisdiction, in
,the exercise of the rights guaranteed in Section 7 of the Act, except
to the extent that such rights may be affected by an agreement requir-
ing membership in a labor organization as a condition of employment,
as authorized by Section 8 (a) (3) of the Act.
2. Take the following affirmative action which the Board finds will
effectuate the policies of the Act :
(a) Post at its business offices in Uniondale, Long Island, New
York, copies of the notice attached hereto marked "Appendix C." 40
Copies of said notice, to be furnished by the Regional Director for
the Second Region, shall, after being duly signed by the represent-
atives. of the. Respondent Union, be posted by it immediately upon
10 See footnote 39.
NASSAU AND SUFFOLK CONTRACTORS' ASSOCIATION, INC. 191
receipt thereof, and maintained by it for sixty (60) consecutive days
thereafter in conspicuous places, including all places where notices
to employees are customarily posted.
Reasonable steps shall be taken
by Respondent Union to insure that such notice is not altered, defaced,
or covered by any other material.
(b) Mail to the Regional Director for the Second Region signed
copies of the notice attached hereto marked "Appendix C" for posting,
the Respondent Association and its members willing, at their business
offices and at construction projects within the territorial jurisdiction
of Respondent Union on which members of the Respondent Union
are employed or may expect to be employed, in places where notices
to employees are customarily posted.
Copies of said notice, to be
furnished by the Regional Director for the Second Region, shall, after
being signed as provided above, be forthwith returned to said Regional
Director for posting.
(c) Notify the Regional Director for the Second Region in writing,
within ten (10) days from the date of this Order, what steps the
Respondent Union has taken to comply herewith.
IT IS HEREBY FURTHER ORDERED that the complaint be, and it hereby
is, dismissed insofar as it alleges that (1) Respondent Association
dominated Respondent Union, and (2) Respondent Association and
its members discriminated against, and Respondent Union caused or
attempted to cause Respondent Association and its members to dis-
criminate against, employees because of their concerted activities in
behalf of a reform group within Respondent Union.
MEMBER MURDOCK, dissenting in part :
I concur in my colleagues' finding that Respondents have violated
the various sections of the Act indicated in the majority opinion,
without necessarily embracing all of their language.
However, I must
strongly disagree with their conclusions, and various grounds and
authorities they advance therefor, that the Employer Respondents
have merely interfered with the administration of Local 138, Inter-
national Union of Operating Engineers, AFL-CIO. I fully sub-
scribe to the well-developed and.documented report of the Trial Ex-
aminer holding that the Respondents have dominated Local 138
within the meaning of Section 8 (a) (2), and should therefore be
required to disestablish it.
On such an issue the best criteria are the facts themselves.
We
may thus directly penetrate the elaborate rationale of the majority
opinion by forthwith examining and retaining in mind these facts.
I am firmly of the view that there is no room for doubt on the evidence,
if the same rules of decision are applied as the Board has used in other
cases, that the Trial Examiner's finding of domination was warranted
and required.
192
DECISIONS OF NATIONAL LABOR RELATIONS BOARD
It is not disputed, as the Trial Examiner found, that at least 36
management representatives, largely, but not limited to, master me-
chanics, actively participated in the most vital affairs of this union.
Master mechanics have at least five employees under their supervision
and spend all of their time in supervision. They hire, fire, and direct
the performance of engineers, fireman, and oilers on the job.
They
receive salary and bonuses in excess of $10,000 per year.
Master
Mechanic Smith, employed by Hendrickson Brothers, was paid about
$17,000, including a $5,000 yearly bonus, in 1954 and again in 1955.
Any effort to make the master mechanics appear as minor or border-
line supervisors is plainly misplaced.
Nor can my colleagues, for
purposes of these issues, create an extrastatutory supervisory category
of "executives, or officers," as distinguished from supervisors generally.
That the master mechanics are "supervisors" under the Act's definition
is explicitly found by my colleagues, and is all too obvious for argu-
ment.
We need no more, especially in the present circumstances, to
impute employer responsibility.
As the majority opinion states, master mechanics "are very active
in the administration of the affairs of the Union."
They constitute
a dominant. majority of most of the important committees of Local
138.
Three of the four members of the examining committee, which
passes upon applications for membership in the union, are master
mechanics.
Five of the nine members of the bylaws committee are
master mechanics. (It may be noted that the record shows that the
bylaws were changed to give the executive board complete power to
operate the Union.)
Three of the five members of the pension plan
committee are master mechanics. Some master mechanics serve on
the board of trustees and 3 serve on the executive board, but the record
does not disclose whether or not they are a majority on these 2 boards.
When we reach the heart of the very reason for the existence of a labor
union-free collective bargaining -we find that there, too, supervisors
constitute a majority of Local 138's negotiating committee.
Of the 12
members, 8 are master mechanics and now of the remaining 4 members
is an employee in the bargaining unit.
When we look at the composi-
tion of both the Union's bargaining committee and the 5-member em-
ployer committee, we find that 2 of the latter are Milton Hendrickson
and Edward Regnall, president and personnel manager of Hendrick-
son Brothers, while seated on the Union's side of the table is Master
Mechanic Smith, the $17,000-a-year man mentioned above, also of
Hendrickson Brothers.
The largest contractor among the employers
is literally represented on both sides of the bargaining table; and the
only "union" representative at the job site is the master mechanic who
doubles as shop steward as well as supervisor.
Active participation in the direction of union affairs and the shap-
ing of its policies is also shown by the attendance of management
NASSAU AND SUFFOLK CONTRACTORS' ASSOCIATION, INC. 193
representatives at union meetings where officers were chosen and im-
portant policy made and where their votes might be determinative.
About 705 members of the Union in Local 138A and 138B have no voice
in the-election of their officers.
Voting rights are vested exclusively in
581 members of Local 138. Some 700-750 persons were present (the
number of nonvoting Local 138A and B members present does not
appear) at a meeting in October 1954 where vital union policy was
shaped.
At this meeting full power was voted to the executive board
for the operation of the organization, and a slate of officers was elected.
More management representatives were present than at any time since
1933.
Those who could be identified as having been present included
20 master mechanics and a "number" of job superintendents.
Also
about 50 owner-operators were there.
And among the executives in
attendance was Milton Hendrickson, President of Hendrickson
Brothers, who participated in the voting.
Further evidence of employer domination of Local 138 is found in
the testimony of a former business representative who was a leader
in the so-called reform group that as business representative he had
been instructed "not to go on places where there were master mechanics
especially [their] own local contractors, mainly Hendrickson Broth-
ers . . . ," but to enforce "to the letter" against outside contractors the
working conditions imposed by the contract.
Despite this he made six
visits to Hendrickson jobs and found contract violations, but when he
reported these to higher union officials he was told to "mind his own
God damned business"; and when he later visited the same jobs the
contract violations were still taking place.
Further incentive and
motive to dominate the Union, as well as a definite product of the
domination, are thus shown.
As the Trial Examiner points out, "The cases that have dealt with
the subject [of domination] do not single out any one activity or
circumstance as determinative of whether or not a labor organization
is employer dominated. . . . In each of the cases a series of acts have
been revealed which, in their totality, constitute domination of, or
interference with, a labor organization."
The Board has heretofore
refrained from laying down any single test for domination.
But if
a union so infiltrated with supervisors who constitute a majority on
important committees-from that controlling admission to the union
to the bargaining committee itself-is not "dominated" by manage-
ment., then that term has lost all meaning 41 This is entirely apart from
all the other evidence properly taken into consideration on the issue
of domination, such as the role of management agents, other than
41 Domination does not necessarily mean complete control.
E. g., Neptune Meter Co. v.
N. L. R. B., 158 F. 2d 448 (C. A. 2) : "There may be domination within the meaning of the
Act which does not reach the point of abject servility. . . . Negotiations by a union only
partially free of employer influence are not what the statute contemplates."
450553-58-vol. 118-14
194
DECISIONS OF NATIONAL LABOR RELATIONS BOARD
master mechanics, in meetings and vital affairs of the Union, the
illegal closed-shop contract,"' and the favored treatment accorded
Respondents, as against "outside contractors." 43
"Collective bargain-
ing becomes ,a delusion and a snare if supervisors are permitted to sit
on both sides of the table." 44
Yet that is literally what this situation
has developed into with supervisors directly seated on both sides of
the bargaining table and in all the high councils of the Union.
Local 138, although a "long established" affiliated union, is so per-
meated with supervisors and therefore dominated by management that
it is simply not a fit labor organization to represent rank-and-file
employees.
Disestablishment of this Union would be the best thing
which could possibly happen to its rank-and-file members.
Disestab-
lishment would mean that the Employer Respondents could never
again recognize it even if good-faith compliance by them with the dis-
establishment order did not immediately result in its actual extinction.
(Nor, of. course, could it ever appear on a ballot in a Board election.)
As a practical matter a disestablishment order would undoubtedly
result in the disappearance of Local 138 and the international union
chartering a new local in this area which could start out with a clean
slate-a salutary change from the status quo.
Domination has been
found by the Board and disestablishment ordered where the taint of
employer control of the labor organization was certainly no more,
and in many cases much less, flagrant than here.45
At this point I cannot permit to stand unchallenged one paragraph
of the majority opinion which charges that considerations as to the
general character of the Union and its leadership rather than proper
42 _N. L. R. B. v. Gottfried Baking Co., Inc., 210 F. 2d 772 (C. A. 2), holding that such an
illegal contract furnishes "very substantial support to the Union."
43 N. L. R. B. v. Mt. Clemens Pottery Co., 147 F. 2d 262, 265 (C. A. 6), "The charge of
domination cannot be insulated from the unfair labor practices held to have interfered
with the organizational activities of the employees."
44 E. g., Report of House Comm.
non Labor on 14. R. 1147, 74th Cong., 1st Sess. 3 ; see also
N. L. R. B. v. Pennsylvania Greyhound Lines, 303 U. S. 261; N. L. R. B. v. Stow Mfg. Co.,
217 F. 2d 900 (C. A. 2) ; American Enka Corp. v. N. L. R. B., 119 F. 2d 60 (C.
Virginia Ferry Corp. v. N. L. R. B., 101 F. 2d 103 (C. A. 4).
45 E. g., N. L. R. B. v. Link. Belt Co., 311. U. S. 584; S. 11. Camp v. N. L. R. B., 160 F.
2d 519 (C. A. 6) ; N. L. R. B. v. M. E. Blatt, 143 F. 2d 268 (C. A. 3) ; N. L. R. B. v. Idaho
Refining Co., 143 F. 2d 246 (C. A. 9). See also Standard Oil of Calif., 62 NLRB 449
(where on facts showing supervisory licensed personnel as members of the union and
on the executive board which negotiated contracts with the employer, the union was held as
incapable of representing the employees, free and uncoerced) ; Kresge Department Store,
77 NLRB 212 (where the employer failed to take effective steps to remove his supervisory
staff from union activity) ; C. Ray Randall Manufacturing Company, 88 NLRB 140 (where
the leading role played by the employer's foremen in the union affairs was held the determi-
native factor in finding "domination," as opposed to "mere support").
To the same effect;
Beaver Machine & Tool Co., 97 NLRB 33; Duro Test Corporation, 81 NLRB 976; Majestic
Metal Specialties,
92 NLRB 1854. And compare cases where "interference" but not
"domination" was found, on the basis that management representatives took no part in
the meetings or activities of the union or attempted to influence its policies, e. g., Nutone,
Incorporated, 112 NLRB 1153; Ephraim Haspel, 109 NLRB 37; N. L. R. B. v. Edwin D.
Wemyss, 212 F. 2d 465 (C. A. 9) ; Hershey Metal Products, 76 NLRB' 695 ("limited
participation of
minor supervisors who exercised little influence on the employees'
committee").
NASSAU AND SUFFOLK CONTRACTORS' ASSOCIATION, INC. 195
legal considerations are responsible for my conclusion that it is a
dominated union.
That paragraph further states that such feelings
cannot override the Board's duty to apply "the law as it is" to the
case.
In answer to this charge I would point out that nowhere in my
opinion have I even discussed the character of the leadership of this
Union except insofar as it is controlled by supervisors in violation of
Section 8 (a) (2).
On the contrary, it is obvious from the paragraph
referred to and the introductory portions of the majority opinion
that it is the majority which has found it necessary to discuss what
they characterize as "insinuations in this case of corruption in and
maladministration of the officers of the Union," and their inability to
deal with the situation.
That is their prerogative.
But I must em-
phatically reject the majority's assertion that considerations as to
the general character of this Union or its leadership have been re-
sponsible for my conclusion that it is a dominated union rather than
the overwhelming weight of legal authority with respect to super-
visory control over the administration of a labor organization.
My colleagues take a curious approach to the issue of domination.
In their view the issue turns solely on whether the rank-and-file mem-
bers of the union are "likely to believe" that their union is controlled
by the employers because of the role played by master mechanics and
other management representatives; they conjecture the absence of
such a belief.
But, as the statute expressly prohibits the fact of a
union's domination by an employer, where the fact of domination is
amply evidenced, as here, whether or not the employees realize it can-
not be deemed controlling 46
Still, the impelling inference, one which
the Trial Examiner apparently drew, is that the employees were aware
of the true situation, as recited above, revealing the Employers' dom-
inating influence in the Union.
My colleagues' heavy reliance on the assertion that master mechanics
are included in the bargaining unit, and on two cases which they say
are the only ones they can find "analogous to the present one," is mis-
placed.
In the first of the "two cases," Wayside Press,47 the Board did
find domination, where three working foremen, who were also mem-
bers in the Charging Union, participated in a meeting and other
activity to reactivate the independent union.
The court reversed the
Board, stating, inter alia, that "acts of minor supervisors must be con-
sidered in their setting." It was a small plant, and such supervision
as was exercised by the 3 working foremen consumed only 20 to 25
percent of their time. Said the court, "To attempt, as the Board has
96 Indeed , evidence that the employees were "satisfied" with the dominated union, and
that they sought by positive action to continue the status quo, has been decisively re-
jected and the union nonetheless disestablished.
E. g., N. L. R. B. v. Newport News Ship-
building, 308 U. S. 241; N. L. R. B. v. Donnelly Garment, 330 U. S. 219; N. L. R. B. v.
Thompson Products, 130 F. 2d 363 (C. A. 6).
4' Wayside Press, Inc. v. N. L. R. B., 206 F. 2d 862 (C. A. 9) (1953), denying enforce-
ment to Wayside Press, Inc., 103 NLRB 11.
196
DECISIONS OF NATIONAL LABOR RELATIONS BOARD
done, to apply the same standards to such a plant as are applied to
plants employing hundreds of persons with full-time supervisory emn-
ployees is to ignore reality." [Emphasis supplied.]
This is an obvious
magnitude of difference between the character of the master mechanics
here and those of the 3 working foremen in Wayside, apart from other
distinctions apparent between the 2 cases, such as the fact that 2
unions were involved, and the foremen were identified with both. I
note, moreover, that in the 4 years since the court decision in Wayside,
the Board has at no time indicated its acceptance of that case as good
law despite the fact that it did not seek certiorari.
And in the other
case, Indianapolis Newspapers,"' a divided Board held that an em-
ployer was not responsible, in the absence of specific authorization or
ratification, for the statements of five zone supervisors and district man-
agers with equivocal supervisory status who were included in a bar-
gaining unit as a consequence of consent election and Regional Director
certification.
(That case also, as did Wayside Press, involved a two-
union situation where supervisors were members of first one, then
another union.)
As the Board pointed out in a more recent case,
which too is cited by my colleagues, where a union agrees for purposes
of a consent election, and without the knowledge of the Board, to
include a supervisor in the unit, this "cannot result in nullification of
the statutory exclusion of supervisors from the definition of `employee'
in the Act," and the supervisor, "though mistakenly permitted to vote
in the election," remained an "arm of management," even though
under the circumstances the Board found his statements not violative
of Section 8 (a) (1).49 It is utterly inconceivable that my colleagues
should accept the proposition and find, as they do, that the master.
mechanics here, though patently supervisors under the Act, "are part
of the same bargaining unit as the rank-and-file employees."
They
are certainly not included in the unit by Board process, nor were they,
as in the unusual circumstances of Indianapolis Newspapers, "mis-
takenly" permitted to vote at a consent election, which in no event
48 Indianapolis Newspapers, Inc., 103 NLRB 1750, set aside in 210 F . 2d 501 (C. A. 7).
49 Montgomery Ward & Co ., Incorporated, 115 NLRB 645 .
As pointed out in the Second
Circuit Case 242 F.
2d 497 enforcing the Board decision ,
the fact that the Board
found that statements by DuFour, a supervisor who had voted in a consent election, did
not iritimidate - eniployees because he was considered by the employees as one of them, did
not preclude the Board , which had not formally determined his status ; from treating
DuFour as a supervisor on an 8
( a) (3) violation .
"These subjective employee reactions
have no bearing on whether he actually was an agent of management for he could very
easily have been very high in management circles without the other employees having
any notion of this .
.
.
. iTjhe fact that DuFour voted in the election has no necessary
connection with his also being an agent of management for purposes of 8 (a )
( 3)."
This
would also be true of Section 8
( a) (2).
Mississippi Valley Structural Steel Co., 64 NLRB
78, also relied on in the majority opinion , involves the similar holding under the Wagner
Act that an employer was not responsible for certain antiunion statements of a super-
visor who was mistakenly included in a unit for purposes of a Board consent election.
In N. L. R. B. v. Jas. H. Matthews & Co., 156 F. 2d 706 (C. A. 3), to the same effect, the
court stressed the distinction that the assistant foremen there in question spent at least 80
. precerit of their time in working.
NASSAU AND SUFFOLK CONTRACTORS' ASSOCIATION, INC. 197
would lawfully entitle them to inclusion in the unit.
Voluntary bar-
gaining for supervisors in a unit not certified by the Board cannot re-
verse congressional policy to exclude supervisors from employee
bargaining units.50
Surely, a history of employer domination through
intrusion of supervisors into controlling positions in the union and into
the unit, as here, cannot be turned into a defense to a charge of
domination.
I do not think it can be gainsaid that if Local 138 were an independ-
ent union, in view of the degree of supervisory infiltration, the Board
would find it a dominated organization and direct the usual disestab-
lishment order. Yet Congress has explicitly told the Board in Section
10 (c) of the amended Act that ". .. in deciding such [8 ( a) (2) ]
cases, the same regulations and rules of decision shall apply irre-
spective of whether or not the labor organization affected is affiliated
with a labor organization national or international in scope."
Con-
gress specifically rejected the Board's prior disparate practice of not
finding domination and not disestablishing affiliated unions, a prac-
tice which had rested on the Board's view that a labor organization
affiliated with a national or international federation that was outside
the ambit of the employer's control "could not be permanently and
completely subjugated to the employer' s will." 51
The foregoing, I believe, presents all the facts, argument, and au-
thority needed to substantiate my position on the domination issue.
I have not therein touched on certain aspects of the majority opinion
which appear to me unsupported, inaccurate, or inconsistent.
How-
ever, I think it necessary, because of possible repercussions on future
Board cases, to comment briefly on selected points.
(1) My colleagues apparently place considerable reliance upon an
assumption of fact that a "widespread practice exists in certain in-
dustries in which supervisors or foremen are active members in the
same union and included in the same bargaining unit as the rank and
file employees." [Emphasis supplied.]
The sole basis for such as-
sumption is a 14-year-old bulletin of the United States Department
of Labor (dated 1943) written before passage (1947) of the Taft-
Hartley Act, and at a time when the Board itself included certain
supervisors in a rank-and-file unit "where customary in the industry."
(Stich rulings are, of course, emphatically precluded by the amended
Act, the coverage of which was expressly limited to employees, re-
60 ". . . one purpose of the Act was to draw a clear line of demarcation between super-
visory representatives of management and employees because of the possible conflicts in
allegiance if supervisors were permitted to participate in union activities with employees."
Bausch & Lomb Optical Co ., 108 NLRB 1555, 1557.
61 Carpenter Steel Company, 76 NLRB 670.
In this case , initially construing the Sec-
tion 10
( c)
provision , the Board flatly stated : " So plain a mandate must be carried
out without reservation or purpose of evasion no matter how great the practical diffi-
culties," and announced the policy that it would uniformly order disestablishment in those
cases in which "an employer's unfair labor practices have been so extensive as to constitute
domination."
198
DECISIONS OF NATIONAL LABOR RELATIONS BOARD
defined to exclude supervisors.)
That such a "widespread practice"
exists today in view of the amended Act may be seriously doubted,
and the majority opinion furnishes no current documentation to sup-
port the statement or to indicate how "active" a form such member-
ship takes.
But even assuming, arguendo, that such condition does
now exist, traditional practices can scarcely provide justification for
conduct which violates the law.
The closed shop was perhaps also
traditional in the construction industry, but nevertheless had to give
way to the proscriptions of the Act.
For the majority to advance
as a reason for not finding domination the doctrine that employers
,are not to be held responsible in 8 (a.) (2) cases for conduct of their
foremen who are "active in the administration of their own union
to which they have belonged for many years as is customary in the
industry," is to engraft an exception on Section 8 (a) (2) of the Act
by administrative fiat, and to accord special treatment under the
Act to employers and affiliated unions in certain industries.
Yet the
Act neither provides nor permits such special treatment, and, and as
already pointed out, this runs directly counter to the express mandate
in Section 10 (c) of the Act that in deciding 8 (a) (2) cases "the
same regulations and rules of decision shall apply irrespective of
whether or not the labor organization affected is affiliated with a labor
organization national or international in scope."'
Section 14 (a) of
the Act permits to supervisors only "remaining a member" of a labor
organization. Neither that section nor traditional practices can justify
.according to foremen a right to be active to the point of controlling
the operations of a labor organization, as is the case here, thereby
impinging upon the rights of rank-and-file employees under Section 7
and emasculating the prohibitions of Section 8 (a) (2) which are
designed to protect those rights from interference by employers and
their supervisors.
I doubt that my colleagues would find that a union
is permitted to strike to seek agreement of the employer that a super-
visor be a member of the union or part of the rank-and-file bargaining
unit, or that they would fail to find an unlawful refusal to bargain
where one of the parties insists on including supervisors in the rank-
and-file unit 52
Cf. Section 8 (b) (1) (B), forbidding a union to
restrain or coerce "an employer in the selection of his representatives
for the purposes of collective bargaining or - the adjustment of
grievances."
(2) My colleagues assert that the master mechanics "obtained their
positions only with the approval of the union,53 and the latter can cause
ezSee Retail Clerks International Assn., etc. (Safeway Stores . Inncorporated), 90 NLRB
581; N. L. R. B. v. Retail Clerks Union (Safeicay Stores, Inc.), 203 F. 2(1165, 211 F. 2d
739 (C. A. 9).
O Contrary to the majority opinion , union approval in the employment of master me-
chanics is not required by the contract, which simply provides that the "master mechanic
shall be designated by the employer."
NASSAU AND SUFFOLK CONTRACTORS' ASSOCIATION, INC. 199
their discharge by ousting them from the membership." I cannot
conceive that my colleagues mean, while maintaining that the master
mechanics are in the bargaining unit, that such a discharge could
legally be effected, under Section 8 (b) (2) and 8 (a) (3), and espe-
cially here where the union membership requirement of the contract, a
closed shop, itself is unlawful.
(3) My colleagues say that "to require the employer to exercise some
sort of veto power over the appointment of foremen to official positions
withinthe union to avoid the charge of domination would seem to in-
volve interference in the affairs of the union, which is precisely what
Section 8 (a) (1) of the Act is designed to prevent." I must vigor-
ously dispute this conception of the law.
Neither Section 8 (a) (1)
nor any other provisions of the Act afford protection to supervisors as
such.
Congress has prescribed .a strict standard of integrity in dis-
tinguishing between employees and supervisors.
Under the scheme
of the amended Act, an employer not only has every right,54 but in
such circumstances as here has a duty to prevent his supervisors, for
whose activities in relation to the employees he is responible, from
occupying positions of power in the union representing the employer's
rank-and-file employees. Indeed, it seems strangely inconsistent for
my colleagues to make the statement quoted while in the same opinion
ordering the Respondents 55 (a) to forbid their executives and super-
visors, other than the master mechanics, from participating in the
Union's internal administration, and (b) to cease dealing with any
negotiating committee of the Union which has in its membership a
master mechanic of any employer.
(4) The different findings and rationale which my colleagues apply
with respect to the master mechanics on the one hand and "executives
and high ranking supervisors" on the other-all of these being "super-
visors" under the Act-are inherently inconsistent, and patently irrec-
oncilable with the statute.
(5) In determining whether Local 138 is a dominated union, my
colleagues pointedly refuse to take cognizance of 6 of the 8 master
mechanics on the bargaining committee for the technical reason that
the employers of these 6 were not made respondents.
Yet they proceed
cs Sen. Rep. No . 105, 80th Cong., 1st Sess. , 5 : "Employers are due 'undivided loyalty'
wherever their interests conflict with those of the ran', and file ."
See also Senator Smith
of New Jersey on Section 2 (3) of the amended Act
( 93 Cong. Ree. 4411 ) : "It recognizes
that a supervisor is a representative of management , and not a representative of labor, and
when the supervisor has.to represent management , it seems only proper that he should not
be in the category of being union -minded because unfortunately controversies between
management and the union do occur."
55 illy colleagues repeatedly advert to the "absence of evidence " ( and "not a scintilla")
connecting the Respondents with the activities of the supervisors in the Union .
Of course,
evidence rarely is , and need not be, so direct .
The Board may draw proper inferences, for
which , as shown , there is ample evidence .
Certainly the same evidence upon which my col-
leagues rest their findings of merely "interference" is available at least to support the
finding of "domination."
200
DECISIONS OF NATIONAL LABOR RELATIONS BOARD
nonetheless to order the Respondents to cease dealing with any bar-
gaining committee of Local 138 which includes any master mechanic.
(6) In judging the various activities of master mechanics in Local
138, my colleagues draw an artificial distinction by finding objection-
able only the membership on the bargaining committee.
Essentially
all activities in a union relate immediately or ultimately to the bargain-
ing process, which is the union's recognized reason for existence.
(7) Although the majority opinion in considering the domination
question speaks in terms only of prohibiting "company executives and
high ranking supervisors from voting in union elections," the Board
order enjoins the Respondents from "permitting the executives and
supervisors, other than master mechanics, to vote at union elections or
otherwise participating in the internal administration. of the Respond-
ent Union."
[Emphasis supplied.]
The evidence of union participa-
tion of the company executives and supervisors at the October 1954
union meeting can only be regarded as illustrative, and showing gen-
erally the extent and gravity of the entire union participation of these
employer agents.
Domination under Section 8 (a) (2) differs from mere interference
and support in degree only51
Although my colleagues fail to find
violative of Section 8 (a) (2) the extensive part played by the super-
visory master mechanics in running the Union (except for the bargain-
ing committee) and fail to consider other significant evidence in the
case bearing on the domination issue, they nevertheless conclude that
Respondents were guilty of "serious interference." In their reasoning,
no discernible basis is shown why the conduct should not be found
"domination."
The evidence in my opinion demonstrably supports
the Trial Examiner's conclusion of "domination" and his recom-
mendation of disestablishment. I would so find.
56 Supra .
See also Board 's Annual Reports, e . g., Fifteenth at p. 101 ; Third at p. 112;
Thirteenth at p. 54; Fourteenth at p. 57; and Seventeenth at p. 128.
APPENDIX B
NOTICE TO ALL EMPLOYEES ANb APPLICANTS
FOR EMPLOYMENT
Pursuant to a Decision and Order of the National Labor Relations
Board, and in order to effectuate the policies of the National Labor
Relations Act, we hereby notify our employees and prospective em-
ployees that :
WE WILL NOT maintain in our collective-bargaining agreement
with Local 138, International Union of Operating Engineers,
AFL-CIO, any provision which requires membership in, or clear-
ance from, Local 138, International Union of Operating Engi-
neers, AFL-CIO, as a condition of employment, or which requires
that preference in employment be given to members of that labor
NASSAU AND 'SUFFOLK CONTRACTORS' ASSOCIATION, INC.
201
organization, except as authorized in Section 8 (a) (3) of the Act.
WE WILL NOT maintain and enforce any agreement, understand-
ing, or practice whereby membership in, or clearance from, Local
138, International Union of Operating Engineers, AFL-CIO, is
required as a condition of employment, or which requires that
preference in employment be given to members of that labor or-
ganization, except as authorized in Section 8 (3) of the Act.
WE WILL NOT interfere with the administration of Local 138,
International Union of Operating Engineers, AFL-CIO, or
contribute support to it by permitting executives and supervisors
other than master mechanics to vote at its elections or otherwise
participate in its internal administration, or conduct collective-
bargaining negotiations with any committee representing Local
138, International Union of Operating Engineers, AFL-CIO,
which includes in its membership Clifford Smith, William Dean,
or any other master mechanic.
WE WILL NOT in any other manner interfere with, restrain, or
coerce our employees or applicants for employment in the exercise
of the rights guaranteed in Section 7 of the Act, except to the
extent that such rights may be affected by an agreement requiring
membership in a labor organization as a condition of employment,
as authorized in Section 8 (a) (3) of the Act.
WE WILL withdraw and withhold all recognition from Local
138, International Union of Operating Engineers, AFL-CIO, as
the representative of any of our employees for the purposes of
collective bargaining with respect to grievances, labor disputes,
wages, rates of pay, hours of employment, or other conditions of
employment, unless and until said organization shall have been
certified by the Board.
(Employer)
Dated----------------
By-------------------------------------
(Representative )
(Title)
NASSAU AND SUFFOLK CONTRACTORS'
ASSOCIATION, INC.,
Dated----------------
By-------------------------------------
(Representative )
( Title)
APPENDIX C
NOTICE TO ALL MEMBERS OF LOCAL 138, INTERNATIONAL UNION OF
OPERATING ENGINEERS, AFL-CIO .
Pursuant to a Decision and Order of the National Labor Relations
Board, and in order to effectuate the policies of the National Labor
202
DECISIONS OF NATIONAL LABOR RELATIONS BOARD
Relations Act, we hereby notify our members and all employees and
prospective employees that :
WE WILL NOT maintain in our collective-bargaining agreement
with Nassau and Suffolk Contractors' Association, Inc., and any
other employer within our territorial judisdiction over whom the
Board would assert jurisdiction, any provision which requires
membership in, or clearance from, Local 138, International Union
of Operating Engineers, AFL-CIO, as a condition of employ-
ment, or which requires that preference in employment be given
to members of our labor organization, except as authorized in
Section 8 (a) (3) of the Act.
WE WILL NOT maintain and enforce any agreement, understand-
ing, or practice with Nassau and Suffolk Contractors' Association,
Inc., or any other employer within our territorial jurisdiction
over whom the Board would assert jurisdiction, whereby member-
ship in, or clearance from, Local 138, International Union of
Operating Engineers, AFL-CIO, is a condition of employment,'
or which requires that preference in employment be given to mem-
bers of our labor organization, except as authorized in Section
8 (a) (3) of the Act.
WE WILL NOT in any like or related manner restrain or coerce
employees or prospective employees of members of Nassau and
Suffolk Contractors' Association, Inc., or any other employer
within the territorial jurisdiction of Local 138, International
Union of Operating Engineers, AFL-CIO, over whom the Board
would assert jurisdiction, in the exercise of the rights guaranteed
in Section 7 of the Act, except to the extent such rights may be
affected by an agreement requiring membership in a labor or-
ganization as a condition of employment, as authorized by Section
8 (a) (3) of the Act.
LOCAL 138, INTERNATIONAL UNION OF
OPERATING ENGINEERS, AFL-CIO,
Labor Organization.
Dated----------------
By-------------------------------------
(Representative)
(Title)
INTERMEDIATE REPORT
STATEMENT OF THE CASE
Upon charges and amended charges filed by Peter Batalias, the General Counsel
of the National Labor Relations Board, by the Regional Director for the Second
Region, issued (1) an order consolidating the above-entitled cases, and (2) an
amended complaint, dated December 27, 1955, against Nassau and Suffolk Con-
tractors' Association, Inc., hereinafter called the Association, its members listed in
Appendix A hereto attached and made a part hereof, and Local 138, International
Union of Operating Engineers, AFL, herein called the Union.
The amended com-
plaint alleges that all Respondents had engaged in and were engaging in unfair labor
practices affecting commerce, the Association and its members in violation of Sec-
tion 8 (a) (1) (2) and (3), and the Union in violation of Section 8 (b) (2) and
NASSAU AND SUFFOLK CONTRACTORS' ASSOCIATION, INC. 203
8 (b) (1) (A) of the National Labor Relations Act, 61 Stat. 136, herein called the
Act.
The charges and, amended charges, order of consolidation , the amended
complaint, and notice of hearing were duly served upon all the parties hereto.
The amended complaint alleges that since on or about August 19, 1954, the Asso-
ciation and its members have assisted , dominated, contributed to the support of,
and interfered with, the administration of the Union by:
(a) Causing their representatives, agents and supervisory personnel to attend
and participate in general membership and Executive Board meetings of the
Union;
(b) Causing their representatives , agents and supervisory personnel to be-
come and remain members of Respondent Union;
(c) Causing their representatives , agents and supervisory personnel to assume
and retain official positions on the Executive Board of the Union and in other
official positions of a policy making, executive , administrative and governing
nature.
(d) Maintaining in effect and enforcing the term of its collective bargaining
agreement with the Union containing , inter alia, union security provisions which
did not and do not comply with the requirement of Section 8 (a) (3) of the
Act.
The amended complaint 'also alleges that the Association and its members have
discriminated, and are discriminating , against their employees in regard to hire or
tenure of employment, or terms or conditions of employment, by maintaining in
effect and enforcing the terms of the collective -bargaining agreement with the Union
containing, inter alia, union-security provisions which are violative of Section 8
(a) (3) of the Act and by being parties to an arrangement, and/or understanding,
and/or practice, with the Union whereby:
(1) The hiring of employees has been and is accomplished exclusively
through the Union ; and/or
(2) Preference in employment and/or an employment referral has been and
is granted to members of the Union; and/or
(3) Employees have been denied employment and/or employment referrals
because of nonmembership in the Union; and/or
(4) Nonmembers of the Union are required to procure job clearances or
referrals from Respondent Union as a condition of employment ; and/or
(5) Employees have been denied employment and/or employment referrals
because of their concerted activities on behalf of a reform or dissident group
in the Union.
The amended complaint further alleges that since on or about August 19, 1954,
the Union, by its officers , agents, organizers, and representatives , has caused and/or
attempted to cause the Association and its members to discriminate against employees
in regard to hire or tenure of employment or other terms or conditions of employ-
ment by maintaining in effect and enforcing the terms of the collective-bargaining
agreement with the Association containing illegal union -security
provisions in
violation of Section 8 (a) (3) of the Act, and by being parties to an arrangement
and/or understanding and/or practice with the Association and its members whereby
the Association and its members engaged in the hiring practices described in para-
graphs ( 1) through ( 5) immediately above.
By their answers all the Respondents denied the commission of any conduct
violative of the Act.
Pursuant to notice , a hearing was held at Hempstead and
Mineola, New York, on various days between March 20, 1956, and June 7, 1956,
before the Trial Examiner duly designated to conduct the hearing .
The General
Counsel, all the Respondents , and the Charging Party appeared through counsel.
Full opportunity to be heard , to examine and cross-examine witnesses, and to pro-
duce evidence was afforded all parties.
After the close of the testimony , brief oral
arguments were presented by all the parties .
Since the close of the hearing, briefs
have been filed by the Union, the Association and its members other than Hendrick-
son Brothers, Inc., and a separate brief by the latter, all of which have been duly
considered.
The Association and its members other than Hendrickson Brothers , Inc., have
also filed a motion requiring me to issue 30 separate Intermediate Reports each deal-
ing separately with the activities of each Respondent "or, in the alternative, [to]
issue such consolidated Intermediate Report as will be just and proper in the
premises."
No adequate reason having been assigned therefor, the motion to issue
separate Intermediate Reports is hereby denied.
204
DECISIONS OF NATIONAL LABOR RELATIONS BOARD
FINDINGS OF FACT'
1. THE BUSINESS OF THE ASSOCIATION AND ITS MEMBERS
Nassau and Suffolk Contractors' Association, Inc., is an association of 28 em-
ployers whose names are listed in Appendix A attached hereto and made a part
hereof.
The Association is, and at all times material herein was, a corporation
duly organized under and existing by virtue of the laws of the State of New York.
The Association exists for the purpose, inter alia, of negotiating and administering
collective-bargaining agreements made for and on behalf of its member employers
with the Union and other labor organizations .
By reason of the contract between
the Association and the Union hereinafter discussed , the members of the Associa-
tion constituted themselves a single employer for bargaining and "jurisdictional pur-
poses."
N. L. R. B. v. Gottfried Baking Co., 210 F. 2d 772 (C. A. 2); Electrical Con-
tractors of Troy and Vicinity, 116 NLRB 354; Insulation Contractors of Southern
California, Inc., 110 NLRB 638.
Each member of the Association maintains a place of business in the State of
New York and each is engaged in the building and construction industry in Nassau
and Suffolk Counties in the State of New York.
During the year ending December
31, 1954, in the course and :conduct of their business operations , the members of
the Association purchased building materials and equipment valued in excess of
$500,000, which were shipped from outside the State of New York to building projects
and other places located in the State of New York.
During the year ending December 31, 1954, Hendrickson Brothers, Inc., a member
of the Association, in the course and conduct of its business operations , caused to be
purchased, transferred, and delivered to its building projects and other places located
in the State of New York, building materials and equipment valued in excess of
$500,000, which were transported to said places in interstate commerce directly
from States of the United States other . than the State of New York.
On the entire record I find that the totality of the operations , in volume and
character, of the Association and all its members has a substantial effect on commerce,
and that Hendrickson Brothers , Inc., is engaged in commerce, all within the meaning
of the Act.
II. THE LABOR ORGANIZATION INVOLVED
The Union is, and during all times mentioned herein was , a labor organization
within the meaning of Section 2 (5) of the Act.
III. THE UNFAIR LABOR PRACTICES
A. Discrimination
On April 8, 1944, the Union and the Association entered into a collective-bargain-
ing agreement for a period of 3 years covering all engineering and building con-
struction work to be done in Nassau and Suffolk Counties, New York, by members
of the Association and by any other employer who might thereafter become a
member thereof.2
The contract provided that it was to remain in effect during each
calendar year after its original terminal date unless written notice of termination
or proposed change be served by either party on the other on or before the 15th day
of any following January commencing with the year 1947 .
The parties also agreed
that if such changes are agreed upon , "a new agreement embodying such changes,
shall be drawn and signed on or before the 1st day of April of the year in which
the notice has been served."
Verner W. Sofield , the Union's present recording-
corresponding secretary and one of its officers continuously since 1934 or 1935,
testified that the aforementioned contract is "presently in force." It has been
amended only with respect to certain wage changes reflected in an exchange of
correspondence between the parties dated May 12 , 1947, January 23 , 1948, June 19,
1952, August 3 and 5, 1955.3
Article IV of the agreement provides that the employers "shall employ . . . only
such workmen [as] are members in good standing of the Union ," a common-and
prior to the effective date of the Taft -Hartley Act in 1947, a legal-closed-shop
I All the findings that follow are based on the undenied testimony received in support of
the complaint.
No evidence was offered by any of the Respondents.
2 At the hearing, the parties stipulated that at all times relevant herein, the employers
named in Appendix A hereof were members of the Association.
8 Sofield's testimony was given in compliance with a subpoena duces tecum
which re-
quired him to produce
" the existing contract" between the Association and the Union.
NASSAU AND SUFFOLK CONTRACTORS' ASSOCIATION, INC. 205
provision found in many contracts of that period.
The agreement contains other
conditions implementing this closed-shop provision.
Thus, article VIII, section
2 (w) provides that the Union "agrees to, furnish competent men, when requested,
upon twenty-four hours notice; and in the event [it] is unable to furnish such
men, then the [employer] may hire nonunion men until such time as the Union
can supply competent Union men."
And article IX, section 2, dealing with shopmen,
provides that "when mechanics and helpers are employed in the shop, they shall
be members of the [Union]." 4
In addition to requiring membership as a condition of employment, the agree-
ment, in its "Declaration of Principles," also provides that "in case any employee
becomes ineligible under the rules of the Union and the employer is notified, then
the said employer shall promptly discharge such employee."
Article VI, section 5
contains an express prohibition against lockouts and strikes by the respective parties
except that if any member of the Association "employs non-union help . ., the
Union shall have power to adopt immediately such measures with respect thereto
as are prescribed by its rules and regulations."
Respondents do not challenge the General Counsel's contention that the closed-
shop provisions as found in the 1944 contract are, and since 1947 have been, vio-
lative of the Act.5
Their only defense to that contention is that the illegality of
the challenged provisions is avoided by a so-called saving clause found in the same
1944 contract reading as follows: "Whenever any provision herein may conflict with
existing law, Federal or State, such conflicting provision shall be considered as
amended in order to conform with such law."
Saving clauses of substantially the same character and substance have, however,
been held by the courts and the Board not sufficiently specific enough to purge the
illegal provisions from the existing contract.
N. L. R. B. v. Gottfried Baking Co.,
210 F. 2d 772 (C. A. 2); Red Star Express Lines v. N. L. R. B., 196 F. 2d 78 (C. A.
2); N. L. R. B. v. Gaynor News Co., 197 F. 2d 719 (C. A. 2), affd. 347 U. S. 17;
Louis Goren, d/b/a City Window Cleaning Co., 114 NLRB 906; Ebasco Services
Incorporated, 107 NLRB 617.
The alleged saving clause inserted in 1944, 3 years before the enactment of, the
Taft-Hartley Act, fails to identify specifically which, if any, of the provisions of
the existing contract were to be severed from the bargaining agreement.
The parties
could not have had reference to the closed-shop provision because that type of union
security was not then violative of any "existing law, Federal or State."
And I can
only speculate in what manner, and how, the violative provision "shall be con-
sidered as amended." In all the circumstances, "the very existence in the contract
of the [illegal] clauses
. act as a restraint upon employees desiring to refrain
from union activities within the meaning of Section 7 of the Act."
Hazel-Atlas
Glass Company et al., 85 NLRB 1305; Louis Dix, d/b/a Hickey Cab Company, 88
NLRB 327. By allowing these provisions to remain as part of'the contract presently
in force, the Association and its members, at all times since August 19, 1954, have
restrained and coerced employees in the exercise of rights guaranteed by the Act,
unlawfully given support to the Union, and discriminated against employees in
order to encourage membership in the Union, all in violation of Section 8 (a) (1),
(2), and (3) of the Act. Similarly, by maintaining the same provisions of the con-
tract, the Union, at all times since August 19, 1954, also has restrained employees in
the exercise of guaranteed rights, and caused, or attempted to cause,'members of the
Association to discriminate against their employees to encourage membership in the
Union, thereby violating Section 8 (b) (2) and 8 (b) (1) (A) of the Act.
New York
State Employers Association, Inc., 93 NLRB 127; H. 0. Wheeler et al., d/b/a Tacoma
Harbor Lumber and Timber Co., 108 NLRB 912; Consolidated Western Steel Corpo-
ration, 108 NLRB 1041.
Assuming, arguendo, that the existing contract had been legally purged. of its
closed-shop provision and that I were to "consider" the agreement "amended
. to
conform with" the Taft-Hartley Act as the saving clause allegedly does, the findings
and conclusions of violation against all the Respondents announced immediately
above would, for the reasons that follow, nevertheless have to be entered.
4 Article XXIII, subdivision 3 (a) of the Union's international constitution requires
that "each member shall hire none but those in good standing with a Union having juris-
diction over the work to be done."
5 Under Section 8 (a) (3) thereof, the only union-security provision which may be in-
corporated in such an agreement is one which "require[s] as a condition of employment
membership [in the union] on or after the thirtieth day following the beginning of employ-
ment or the effective date of such agreement, whichever is later, . . .
206
DECISIONS OF NATIONAL LABOR RELATIONS BOARD
Section 8 (a) (3) of the Act flatly and broadly forbids all forms of discrimination
to encourage or discourage membership in a labor organization except only those
which come strictly within the terms of the single proviso to that broad proscription.
By that proviso, since its amendment in 1951, the execution of a valid union-security
agreement is authorized only if the union "at the time the agreement was made or
within the preceding twelve months [has] received from the Board a notice of com-
pliance with section 9 (f) (g) (h)" of the Act. Sofield testified that he has never
complied with the section just referred to, and the parties stipulated that the Union,
to the time of. the hearing herein, has never been in compliance therewith.6 In this
state of the record, the existence of an otherwise valid union-securtiy clause must
be deemed to be violative of the Act.7.
Edwin D. Wemyss, d/b/a Coca-Cola Bottling
Company of Stockton, 102 NLRB 586, enfd, as mod. in another respect, 212 F. 2d
465 (C. A. 9).
Having found that the 1944 closed-shop provisions are still part of the contractual
arrangement between the parties and therefore violative of the Act, I find it un-
necessary to burden this report with detailed findings upon undisputed evidence sub-
stantiating the additional allegations of the complaint that the employer members.
of the Association were "parties to an arrangement and/or understanding and/or
practice with the Respondent Union" whereby union membership, or a union referral
or permit to work for nonunion members, was a condition of employment by the
members of the Association.
While the testimony of master mechanics, hereafter
found to be supervisors, establishes that a number of the individual Employer Re-
spondents engaged in such an illegal practice, and I so find, neither the conclusions
of law to be drawn therefrom, nor the remedy required to undo the same, would be
broader than the conclusions and remedy pertaining to the closed-shop provisions of
the contract heretofore found to have been violative of the Act.
In its brief, the Union lays great emphasis on the construction industry's "unique
. problems in obtaining skilled men" other than through the Union's hiring hall,
and argues "that it would be impossible for contractors to operate without a ready
source of available skilled operators." I am 'fully mindful of that problem, but
nothing contained in these findings, or the recommended remedy that follows, is
intended to cast doubt on the right of a labor organization. to maintain a legal hiring
hall operated on a nondiscriminatory basis.
There remains for consideration on this phase of the case the allegations of the
complaint that the Union caused, or attempted to cause, the Association and its
members to deny employment to employees "because of their concerted activities
on behalf of a reform or dissident group in Respondent Union."
While the record
establishes that a substantial number of employees were active in a so-called reform
movement within the Union, no evidence was offered that any employees, or pro-
spective employees, were denied employment for that reason. It will, therefore, be
recommended that the allegations pertaining to that type of discrimination be dis-
missed.
B. Domination and interference by the Employers
Turning now to the allegations of the complaint that the Association and its mem-
bers dominated the Union and interfered with the administration of its affairs, it is
the position of the General Counsel that the record establishes that master mechanics
(alleged by the General Counsel to be supervisors within the meaning of the Act),
superintendents, and officers of the employer members of the Association main-
tained membership in the Union, actively participated in its affairs, and directed its
policies.
Such being the case, he contends, a finding of interference with and domina-
tion of the Union must follow.
Respondents, on the other hand, contend that master mechanics are not super-
visors within the meaning of the Act, and that their participation in union meeings
and affairs was a proper exercise of their rights as ordinary employees and members
of t_he Union without pressure or influence by their Employers.
With respect to all
the alleged participation in union activities and affairs by company officials, it is
the position of the Employers that this activity was confined to mere membership
O During the hearing, the Union announced that it was then engaged in the preparation
of the necessary documents to bring it into compliance.
4 Prior to its amendment in 1951, the Act provided that no valid union-security clause
could be made a part of a labor bargaining agreement unless, pursuant to a Board-conducted
election, "at least a majority of the employees eligible to vote in such election have voted to
authorize . . . such an agreement." In view of the Union's non-compliance, the Board
could not have conducted such an election, nor is any claim made that any such election
was ever held.
NASSAU AND SUFFOLK CONTRACTORS' ASSOCIATION, INC. 207
in the Union with a rare attendance at its meetings .
They expressly deny the exercise
of any influence in the direction of the Union 's affairs or policies, and also deny the
exercise of any pressure on their supervisory personnel in connection with the union
activities or affairs of such supervisors.
Membership in the Union is divided into three divisions .
Local 138 consists of
master engineers, master mechanics ,8 and contractor executives who earlier in their
lives were employed as engineers; 138-A consists of junior or apprentice engineers,
oilers, and firemen ; and 138-B is made up of engineers engaged in other than heavy
and building construction work.
The same officers and committees serve all 3
divisions of the Union and the agreement with the Association covers work per-
formed by members of all 3 divisions .
Dues of 133 and 138-A are $8 per month,
and those of 138-B $6 a month.
At the time of the hearing, 138 had approximately 158 members, 138-A about 435,
and 138-B approximately 270. Included in the membership of 138 are an un-
disclosed number of executives of Association members.
Among them are Milton
A. Hendrickson, hereafter referred to as Hendrickson , president of Respondent
Hendrickson Brothers , Inc., considered to be one of the biggest contractors on Long
Island and employing 600-1 ,000 men; Charles Davis, secretary of Respondent Davis
Construction Corp.; Charles and Joseph Salerno, officers of Respondent R. Salerno
& Sons; Joseph Brenner, president of Respondent Grefe & Brenner .
Also included
in the membership of 138 are at least 31 master mechanics, assistant master me-
chanics, foremen , and job superintendents employed by contractors under con-
tractual relationship with the Union.
Monthly meetings of the Union are attended by members of all three divisions.
At these meetings , the members of 138 have an absolute right to vote on all issues
put to a vote , and in the election of officers .
Members of 138-A and B, however,
cannot vote in the election of officers ; on all other matters at issue, they may vote
only with "the permission of the chairman , . . . if he so chooses, . . . it is within
his discretion ."
And, while the denials of such right to vote may be appealed
"to the body, . . . it would be up to the chairman " to decide who votes on that
appeal.
In this connection , Sofield, the Union's secretary since 1935, testified that
such a ruling "has never been appealed to the floor." 0
As Respondent Association points out in its brief , the Union prior to the time
that the charges herein were filed, was "rent by factional warfare."
The dissension
manifested itself at the election of union officials in June 1954 at which meeting,
attended by approximately 75-100 persons , Sofield presented "the slate of officers"
who were to serve during the following term .
The slate did not include the name
of William DeKoning , Jr., its then president and business manager, who explained
that "he couldn't run for office any more because of his probation and requested that
Charles Britton's name be substituted for his." 10
The request was granted.
The
slate also failed to include the name of John DeKoning ," a leader in the so-called
reform group , as business representative , and who was then serving in that capacity
and had done so since October 1951.
A number of members wanted to know the
reason for this latter omission and were informed by Sofield, who was presiding,
that "they weren't allowed to elect a business representative ; that it was an ap-
pointed job."
A motion was nevertheless made and carried that John DeKoning's
name be included , and the slate, as amended , was adopted "by a shout vote," the
only dissenting voice being that of Sofield .
All of the elected candidates, including
Britton and John DeKoning, were then sworn in by a past president of the Union.
No meetings of the Union were held in July or August 1954.
At the following
meeting in September, when the minutes of the June meeting were read by Sofield,
8 The contract with the Association provided that all master mechanics must be members
of the Union.
8 Louis Wilkens testified that at one meeting "a motion was put to give the A and B
men the right to vote , and it was denied
.
.
. by the President and (the men] were told that
the only one who could interpret its constitution was the general president."
11 As the record does not otherwise explain this "probation," I take official notice of the
criminal court records of Nassau County which disclose that on April 9, 1954, William
DeKoning,
Sr., a former president of the Union , pleaded guilty to 2 indictments for ex-
tortion and 1 for grand larceny , in connection with the operations of contractors on Long
Island , and was sentenced to 3 concurrent terms of 1 year to 18 months in Sing Sing
prison .
At the same time, William DeKoning , Jr., his son , was given a suspended sentence
of 1 year, and placed on probation, upon his plea of guilty to a. charge of coercion. In
connection with these sentences , it was made a condition thereof that neither DeKoning
hold official union position in Nassau County.
11 John DeKoning
is a nephew of William DeKoning ,
Sr.,
and a cousin of William
DeKoning, Jr.
208
DECISIONS OF NATIONAL LABOR RELATIONS BOARD
they failed to disclose the election of, or oath taken by, John DeKoning as business
representative; the minutes also stated that Britton was elected business manager,
but, according to Peter Batalias' undenied testimony, this "hadn't happened."
Much
commotion followed and, by a secret ballot which then was ordered, the minutes
of the June meeting, as read by Sofield, were rejected. Instead, they were corrected
to show.John DeKoning's election as business representative and to strike the name
of Britton as business manager.
The next meeting, in October 1954, was attended by 700-750 persons, the largest
attendance in recent years, if not in the Union's entire history.
Among those who
attended the meeting and voted thereat were executives, or "bosses," of the follow-
ing members of the Association: Hendrickson, president of Hendrickson Brothers,
Inc.; Charles Salerno of R. Salerno & Sons; Frank Fatscher of Ted Fatscher; and
Charles Davis, secretary of Davis Construction Corp.
Other contractors in attend-
ance were not identified by name, but Wilkens, a member of the Union since 1933
and its first president, testified, without contradiction, that there were more "con-
tractors" present at this meeting than at any prior meeting he had ever attended.
Also present were approximately 50 "owner-operators," a number of job superintend-
ents, and approximately 20 master mechanics.
During this meeting, and over
objection of the so-called reform group which was denied the opportunity to fully
present its views, a motion "to give the Executive Board full power for the operation
of *he organization" was adopted.
On separate occasions, between the union meetings of September and October 1954,
Wilkens, Garrett Nagle, and John DeKoning called on Hendrickson and told him
about the reform movement which they were leading in the Union.
Wilkens told
Hendrickson that "the contractors had an awful crowd of contractors at the last
meeting, . . . and that it would be a good idea [for Hendrickson] to stay away
from the meetings and . . . not throw his weight for the men to vote one way or
the other."
Hendrickson replied to Wilkens that he was maintaining "a hands-off
policy" in the struggle then going on within the Union and which precipitated the
large attendance at the October meeting.
He nevertheless added that he was a
member entitled to come to a meeting, and "he would not stay away."
Hendrickson,
however, not only attended the October meeting, but contrary to his, expressions
of neutrality, voted on the motion to give the executive board the plenary powers
above described.
The record also establishes, and I find, that master mechanics serve on the Union's
executive board, its board of trustees, and its committees.
With respect to 1 of these
committees, the evidence discloses that on July 1, 1955, a union committee of 12
members was appointed to negotiate changes in its agreement with the Association
"covering wages and working conditions." Serving thereon were eight master me-
chanics including Clifford Smith and William Dean, employed by members of the
Association, Hendrickson Brothers, Inc., and Radory Construction Corp., respectively.
The remaining six were employed by other contractors who were also "under con-
tractual relations with [the Union]." In behalf of the Association and its members,
these negotiations were conducted by a committee of five including Milton A.
Hendrickson and Edward Regnell, the latter being the personnel manager of
Hendrickson Brothers, Inc. It is the argument of the General Counsel that Hen-
drickson's participation in these negotiations on one side of the bargaining table
while Smith, one of his supervisors, is on the other side, brings into focus, by such
duality of roles, the Employers' control over the Union.
During the time John DeKoning was the Union's business representative, it was
his duty to visit various jobs on which the members of the Union were employed to
ascertain whether the working conditions and other terms of the contract with the
Association were observed and fully complied with. In connection with these duties,
however, he had been instructed by William DeKoning, Sr., William DeKoning, Jr.,
and Sofield "not to go on places where there were master mechanics, especially
[their] own local contractors, mainly Hendrickson Brothers
. that they have a
master mechanic there [who] can take care of that job." 12, With respect "to outside
contractors, that come in from New York or from other areas, [John DeKoning]
was told to [enforce the working conditions imposed by] the contract to the letter."
In the winter of 1953 and 1954, John DeKoning made approximately six visits
to jobs of Hendrickson Brothers on which occasions he reported what he considered
to be contract violations to either DeKoning, Jr., or Sofield, and was told that the
matter would be taken care of by them.
On one such occasion, Sofield told John
12 The contract between the Association and the Union required every Employer to engage
1 master mechanic for every 5 engineers employed on any shift.
NASSAU AND SUFFOLK CONTRACTORS' ASSOCIATION, INC. 209
DeKoning "to mind [his] own God damned business land to] stay off the job." 13
Nevertheless, he later visited the jobs in question to "see if there was any change in
conditions," and found that there was not.
Though John DeKoning had been elected
business representative by the membership in June 1954, he was "fired" from that
position on October 15, 1954, by Britton, the Union's president.14
Because so much that is involved here relates to the activities of master mechanics,
consideration should first be given to their status and a determination of whether
or not they are supervisors within the meaning of the Act so as to make their em-
ployers liable for their conduct and activities.
The briefs of the Respondents obliquely, but without merit, challenge the posi-
tion of the General Counsel that Master Mechanic Clifford Smith is such a super-
visor.
Smith is responsible for the maintenance of pumps, steam shovels, and all
other equipment owned by Hendrickson Brothers, Inc., and for the maintenance
of 60-70 trucks.
The value of this equipment "varies from a $200 pump to a shovel
that may have cost $80,000"; its total value "is at least a million dollars."
He has
two assistants and maintains a desk in the general offices of the company.
When work
is about to start on a project, Smith does the hiring.
When the job is completed,
he decides "which men are to be laid off." He earns a weekly salary of $225 and, in
the last 4 years, has been awarded an annual bonus mounting from $1,000 to $5,000,
which latter amount he received in 1954 and 1955, thereby increasing his annual
earnings to approximately $17,000.
During the last 4-5 years, the company has
furnished to, and maintained for, him 4-5 automobiles, the latest a 1956 Buick.
While the car is used by him in connection with his work, he is allowed to drive it
to his home evenings and over weekends.
Though the testimony establishes that other master mechanics were not treated
as generously by their employers as Smith was by Hendrickson, and that his re-
sponsibilities covered a more extensive field of operations than that of other master
mechanics employed by Hendrickson Brothers, Inc., and the other contractors, on
the entire record I am convinced, and find, that all other master mechanics employed
by members of the Association are also supervisors within the meaning of the Act.
Louis Wilkens has been employed as a master mechanic by 9 or 10 different con-
tractors since 1933.
At the time of the hearing, he was so employed by Respondent
John C. Peterson Construction Co.
As such master mechanic, he had authority to
hire, fire, or lay off employees; it is his responsibility to keep all equipment in
working condition; his salary is $55 or $60 a week more than that paid to engineers
on the job.15
Bernard J. Pelgrim and Johannes Lamberton are employed by Hendrickson
Brothers, Inc., the first as assistant master mechanic, and the latter as master mechanic.
Both make recommendations on the hiring of engineers, and direct their work.
Their salaries are respectively $200 and $225 a week, while the hourly rate paid
engineers aggregates about $140 for a 40-hour week.
Additionally, in 1955, Pelgrim
received a bonus of $1,500 and Lamberton $750.
George Henry, a master mechanic for Good Roads Engineering & Contracting
Co., hires engineers for his employer.
While the president of the company tells him
how many men are to be employed, he is never told whom to hire. His salary is
$225 per week plus overtime.
Gerard Douglas, employed by the Union since October 1955, was engaged as a
master mechanic prior thereto by Slattery Contracting Co.
As such, it was his duty
"to see that the equipment was running, and see that the jobs were manned and all
is During the September meeting of the Union ,
DeKoning ,
Jr.,
referred to Arthur
Hendrickson , chairman of the board of directors for Hendrickson Brothers, Inc., and
its former president , as "godfather of the local."
14 While I ain mindful that the events referred to in the preceding paragraph pertain
to, and had their origin in, instructions given more than C )nonths prior to the filing and
service of any charge herein , both the courts and the Board have held that "a state of
affairs once shown to exist is presumed to continue to exist until the contrary is shown."
X. L. R. B. v. A'atio,al Motor Bearing Co.. 105 F. 2d 052 (C. A . 9) ; N. L. R . B. v. Piqua
MnnisinqWood Products Co., 109 F. 2d 552
( C. A. 6) ; and Local a0, Bakery and Conjec-
tiontsry Workers International Onion, AFL-CIO
( Arnold Bakers, Inc.), 115 NLRB 1333.
to The findings in this and the following paragraphs pertaining to the supervisory status
of waster mechanics are based on the undenied testimony of the named individuals.
All
their employers are members of the Association.
450553-58-Pol. 115
15
210
DECISIONS OF NATIONAL LABOR RELATIONS BOARD
equipment covered with engineers."
As master mechanic he made the necessary
arrangements with the Union to supply his employer with the required engineers.
William H. Kreischer, a master mechanic for Tully & DiNapoli, Inc., during the
latter part of 1955, testified that it was his job "to make sure" that the machines
were running properly.
Charles Brandenstein is employed by W. H. Greene as master mechanic.
As
such, it is his duty to see to it that Greene's 75 pieces of equipment, cranes, bull-
dozers, etc., are kept in running condition.
For that task, Greene employs 15
operating engineers and 8 oilers and shopmen.
Charles Hansen has been employed by Respondent Karlson & Reed, Inc., as a
master mechanic since 1951.
The firm employs about 300 men of whom 50-90
are engineers and oilers, the number varying with the season. It is his responsibility
to "see that [the equipment] is kept in first class shape; [he] travels from one job
to the other, all around the Island, checking on different equipment; . . . if a
machine needs repair, [he] directs a man how to repair it."
At the hearing, the parties stipulated that William Dean, then confined to a hos-
pital, if called as a witness, "would testify to his employment as master mechanic
for Respondent Radory Construction Company, and that in all other respects his
testimony would be similar to that of the other master mechanics, such as Branden-
stein, Kreischer, Henry, and the others who have testified in this case."
The evidence also establishes that every master mechanic supervises the work
of at least five engineers.
Article II (z) of the contract between the Association and
the Union requires the employment of a master mechanic when five or more engineers
are employed on any shift. It further provides that the master mechanic, "under
the direction of the employer, shall be responsible for the hiring and firing of, and the
pe4rformance of their duties by the engineers, maintenance engineers, junior and ap-
prentice engineers, firemen and oilers."
[Emphasis supplied.]
Under the Union's
bylaws, master mechanics are "not permitted to operate, . . . except in case of
emergency," and the testimony establishes that such was the practice.
In the light of all the foregoing, and the absence of any evidence that the authority
of other master mechanics was more narrow in scope than that possessed by those
described above, I find that the master mechanics employed by members of the
Association are supervisors within the meaning of the Act, and that the activity of
the master mechanics in the affairs of the Union hereafter found to be violative of the
Act must be, and is, attributed to their respective employers.
Turning next to the problem of whether the union activities of supervisors and
officials of members of the Association are proscribed by the Act, we begin with
Section 7 thereof which guarantees to employees "the right of self-organization"
and "to bargain collectively through representatives of their own choosing."
Section
8 (a) (2) declares that it shall be an unfair labor practice for an employer "to dom-
inate or interfere with the formation or administration of any labor organization or
contribute
. support to it."
The latter section is thus clearly intended to protect
the guaranteed rights aforementioned by proscribing any form of employer participa-
tion in the administration of a labor organization of employees. In other words,
"we are dealing here
. with a clear legislative policy to free the collective bargain-
ing process from all taint of an employer's compulsion, domination or influence.
The
existence of that interference must be determined by a careful scrutiny of all the
factors, often subtle," by which that interference or domination asserts itself.
Inter-
national Association of Machinists v. N. L. R. B., 311 U. S. 72. [Emphasis supplied.]
The cases that have dealt with the subject do not single out any one activity or
circumstance as determinative of whether or not a labor organization is employer
dominated as to be violative of Section 8 (a) (2) of the Act. In each of the cases
a series of acts has been revealed which, in their totality, constitute domination of,
or interference with, a labor organization.
And, although conduct and events oc-
curring beyond the limitation period imposed by Section 10 (b) of the Act cannot
be, and herein are not, made, the basis for any finding of violation, such earlier
conduct may be considered insofar as it sheds light on, and imparts meaning to,
events properly alleged in the complaint.16 Indeed, here, such background evidence
is a requisite to a proper understanding and appraisal of the subsequent conduct
of the parties, and the issues involved.
10N. L. R. 13. v. Sharpies Chemicals, Inc., 209 F. 2d 645 (C. A. 6) ; N. L. R. B. v. Reed cE
Prince 31fg. Co., 205 F. 2d 131 (C. A. 1) ; Senorita Hosiery Mills, Inc., 115 NLRB 1304
(11ay 14, 1950).
NASSAU AND SUFFOLK CONTRACTORS' ASSOCIATION, INC. 211
The General Counsel points first to the fact that master mechanics, job superin-
tendents, and company executives are members of the Union, attend its meetings,
and cast votes thereat.
On this phase of the case, the evidence establishes that
these supervisors and company officials joined the Union while they were engaged
as journeymen but have maintained their membership as they became master
mechanics or otherwise progressed in their employment status, or went into business
for themselves.
The General Counsel concedes, and I conclude, that mere membership in the
Union by supervisors and company officials is not violative of the Act.
Certain
insurance and welfare benefits available to members of the Union, and a desire by
contractors or company executives to retain their status as engineers so as to again
make them eligible for employment as journeymen if financial misfortune overtook
them as employers, may well have been, as Hendrickson and others testified, the
factors that prompted them to retain their membership in the Union.17
What the
General Counsel attacks, however, is not mere membership in the Union by manage-
ment executives and supervisors so as to deprive them of any of the benefits for
which it was claimed membership was retained.
Objection here goes solely to their
active participation in the direction of the Union's affairs and the shaping of its
policies.
In this Union, as in practically all organizations, labor or other, its activities
are not carried on by its members but are entrusted to its officers, executive board,
and committees. It therefore becomes pertinent to ask how those who govern and
direct the affairs of this Union are elected.
As previously reported, the Union has a total membership of approximately 863.
About 705 of these members, however, have no voice in the election of those who
are to govern their affairs, negotiate in their behalf, and maintain relationship with
their employers.
That elective power is vested exclusively in the approximately 158
members of Local 138.
And who constitutes this electorate?
Pursuant to subpena,
Sofield, the Union's secretary, produced General Counsel's Exhibit No. 7, purport-
ing to be "a list of all members of Local 138 . .. who have served at any time
since August 19, 1954, as master mechanic, assistant master mechanic, or foreman
for any contractor under contractual relationship with Local 138."
The list con-
tained 22 names but apparently was not an accurate or complete list. It did not
include the names of the following union members who testified credibly, and
without contradiction, that they served the named Respondent Employer in the
supervisory classification designated after their names:
Bernard Pelgrim--_-_---__--_
Hendrickson Brothers,Inc --------
Assistant master mechanic.
Johannes Lamberton-----__-_- ----- do-----
------------
Master mechanic.
Albert J. Penn------------------ -----do-----
----------
Foreman.
Raymond Edwards-_-----------
Switzer Contracting Co. Inc------
Master mechanic.
Edward Smith ------------------
Davis Construction Corp-----_--
Foreman.
loan Dellegati-------------------
Cirefe & Brennan --------- --_----_
Do.
The subpena aforementioned did not request the names of job superintendents or
management officials of members of the Association who were also members of
Local 138, nor was any other evidence offered concerning the employment status
of the total membership of Local 138.
The credible, oral testimony, however,
establishes that while the following named persons were employed by and served
it The insurance and welfare funds aforementioned were maintained by the Union with
the deposit or payment, by the contractors, of 5 percent of the wages earned by the' em-
ployees covered by the agreement with the Union.
However, no payment into the fund
was made by Hendrickson Brothers, Inc., in behalf of Hendrickson, and he testified rh -^ he
did not know whether he was entitled to the welfare benefits or not.
He neverthe'less
maintained his membership in the Union.
The testimony also establishes that some com-
pany executives and supervisors took withdrawal cards from the Union after they ;achieved
higher status in their organizations and thereby remained eligible for reentry to full mem-
bership whenever the occasion would thereafter 'arise.
Hendrickson took such a ti llli-
drawal for a 3-year period while a member of the Armed Forces,- and other executives or
supervisors took similar withdrawals.
212
DECISIONS OF NATIONAL LABOR RELATIONS BOARD
the named contractors in the capacity designated after their respective names, they
were also members of Local 138 in good standing:
Edward Cahill-----------_-----
Hendrickson Brothers , Inc--------
Job Superintendent.
Charles Verity------------------- ----- do-----------------------------
Do.
Walter Hagen -----------_------ ----do----------------------------
Do.
Milton Hendrickson ------------- -----do-------
---------
President.
Charles Davis-------------------
Davis Construction Corp ---------
Secretary.
Charles Salerno ------------------
It. Salerno & Sons---_-_---------
Officer.
Joseph Brennan -----------------
Crefe & Brennan------------------
President.
-- Grefe--- ----------------- -----do-----------------------------
Secretary-Treasurer.
Though, as just noted, no testimony was offered to show how many more super-
intendents and management executives were members of Local 138, it seems highly
improbable that others in these categories employed by the 28 contractor members
of the Association did not also maintain membership in that Union .
Without specu-
lating, however, as to how many more superintendents or company executives hold
membership in Local 138, the record, as made, shows that at least 36 out of the ap-
proximately 158 members of Local 138 are representatives of management.
Because only members of Local 138 are eligible to vote at the election of officers,
it is thus apparent that management officials and supervisors play an important and
influential part, and under some circumstances may well have the controlling voice,
in the selection of those who are to administer the entire Union's affairs and its
relations with the contractor members of the Association .
The potency of the power
so lodged takes on added significance in view of the authority vested in the officials
so elected to appoint the committee which negotiates the contract with the Employers
concerning wages and conditions of employment for rank-and -file employees (about
which more will be said later ), and the business agents who police that contract.
"Whether or not [management representatives and supervisors ] actually exercise
this [voting] power is beside the point .
The significant fact is that they possessed
this power."
Sharples Chemicals, Inc., 100 NLRB 20, 33, enfd . 209 F. 2d 645
(C. A. 6).
The voting power vested in management officials and supervisors manifests itself
at union meetings other than those involving the election of officers .
The General
Counsel places special emphasis on the October 1954 meeting at which far-reaching
changes in the administration of union affairs were brought about. It will be re-
called that it was at this meeting that "the Executive Board was given full power
for the operation of the organization," a power broad enough, and so understood
by Hendrickson, to grant authority to the executive board for the appointment of
business representaitves.
It was also apparently sufficient to authorize the discharge
of John DeKoning who had been elected by the membership at a meeting in the
preceding June. Included among those who voted at the October meeting on this
important issue was Hendrickson , notwithstanding his protestations of neutrality
concerning the internal affairs of the Union , and his promise to Wilkens and others
to maintain a "hands-off policy" with respect thereto .
The September and October
meetings were the only meetings attended by him in a span of approximately 31h
years between either December 1952 or January 1953, and April 26, 1956 , the day
he testified herein . 18
Similarly present at this October meeting were other manage-
ment executives , more in number than union charter member Wilkens had seen at
any prior meeting (including those named in the finding that immediately follows)
and more than a score of job superintendents , foremen, and master mechanics.
On the entire record I find that by voting at membership meetings of the Union
on matters involving the administration of that organization's affairs, officers and
supervisors of Respondents Hendrickson Brothers , Inc., Ted Fatscher, Davis Con-
struction Corp., and William H. Greene interfered with the administration of the
Union.
By that conduct, the Respondents just named violated Section 8 (a) (2)
and 8
( a) (1) of the Act.
No credible evidence having been offered that other
Respondents engaged in that specific conduct , it will be recommended that the
allegations of the complaint charging them therewith be dismissed.
1s I do not credit Hendrickson 's testimony that he attended these meetings only "out
of curiosity" and so that those who had spread uncomplimentary remarks about him would
have an opportunity to repeat them "to [his ] face." ^No explanation was offered by him
why he failed to request that such an opportunity be given .
According to his own testi-
mony, he did not speak at the meeting and his own activity thereat was to cast a vote.
a
NASSAU AND SUFFOLK CONTRACTORS' ASSOCIATION, INC. 213
Supervisors exert even a greater influence in the administration of the Union's
affairs than merely casting their vote at its meetings .
Thus, on its executive board
are found Master Mechanics James Belcher, John Vario, and Gerard Douglas, the
latter having been so employed prior to the time he was appointed as business
representative of the Union in September or October 1955.
Three of the four
members of the Union's examining committee , which has the important function of
passing on applications for membership in Local 138, are master mechanics.
The
General Counsel , however, points his heaviest guns at the presence of master
mechanics on the union committee "to negotiate for changes in [its] conditions."
Sofield's testimony , and the exhibits produced by him, disclose that of the member-
ship of 12 on this committee , 8 are master mechanics employed by either members of
the Association or contractors maintaining "contractual relationship with Local 138,"
1 is a retired union business representative , and 3 are present employees of the
Union.
This committee was "appointed" on July 1, 1955, and at the time of
the hearing had not yet been dismissed .
Without minimizing the effect of the
overloading of this committee with master mechanics and the complete absence of
journeyman representatives thereon , the General Counsel's principal shaft is di-
rected at the presence on this committee of Master Mechanic Clifford Smith,
employed by Hendrickson Brothers , Inc., and his participation in negotiations as a
representative of the employees concerning wages and working conditions with
Milton Hendrickson and Edward Regnell, respectively the president and personnel
manager of his Employer, on the other side of the table as the representative of
the Employers.
In considering the effect of the presence of master mechanics on the Union's
bargaining committee and in policy-making positions , there must be borne in mind
the control wielded by the Employer over their continuing status in such supervisory
positions .
Furthermore, and without intimating that the additional bounties awarded
to Smith and other master mechanics were corruptly intended to influence their action
in union affairs or negotiations , human frailties being what they are, the fact that
the grant of a bonus , and its amount, are within the absolute and uncontrolled'
.discretion of the employer cannot be ignored in appraising the impact that such
generosity has on the recipient thereof in guiding or determining his conduct and.
vote in the administration of the Union's affairs.
To illustrate by considering the position of Smith sitting on one side of the bar--
gaining table with Hendrickson, his Employer, on the other.
Already earning-
$ 11,700 a year, in 1954 and 1955 he was awarded an additional bonus of $5,000.
Can it realistically be assumed that in negotiating with his Employer concerning
wages of journeymen and apprentice engineers, oilers, and others for whom the-
Union is bargaining , be is not swayed more by, and responsive to, the views expressed'
and positions taken by Hendrickson than he would be if he were not treated so•
generously by his Employer?
The test,
whether a challenged organization is
employer controlled, "is not an objective one, but rather subjective from the stand
-point of employes."
N. L. R. B. v. Thompson Products, Inc.,
130 F. 2d 363,
368 (C. A. 6); N. L. R. B. v. Tappan Stove Co., 174 F. 2d 1007, 1014 (C. A. 6);
N. L. R. B. v. Donnelly Garment Co., 330 U. S. 219, 231.
Applying that test, r
cannot attach controlling significance, as urged by Respondents , to the self-serving
declarations and testimony of Smith and other master mechanics and superintendents
that their employers had never "interfered in [their] union activities, dominated'
[them] in any way, or told [them] what to do or how to conduct [themselvesi
in the union or at a union meeting." 19
Section 8 (a) (2) of the Act was intended to vouchsafe to rank-and -file employees
that in the bargaining relationship and process those purporting to act for them not
be rendered so subject to employer control , or dependent upon employer favor,
as to tend to deprive them of the will and capacity to give their faithful devotion
to the interests of the group they represent.
The proscription against any inter-
ference by employers in union affairs is so vital to the successful operation and
administration of the Act that, "as a matter of policy, the Board has held that a
supervisor cannot . . . represent employees of an employer for purposes of collective
bargaining, regardless of whether the employees desire such a bargaining agent and
despite the employees' right in Section 7 to bargain collectively through represent-
atives of their own choosing .
In so holding, the Board indicated that one purpose
of the Act was to draw a clear line of demarcation between supervisory represent-
atives of management and employees because of the possible conflicts in allegiance
if supervisors were permitted to participate in union activities with employees." 20
ifl Insofar as the record discloses , master mechanics and job superintendents were the
only recipients of an annual bonus.
a Bausch t' Lomb Optical Company, 108 NLRB 1555.
2 1.4
DECISIONS OF NATIONAL LABOR RELATIONS BOARD
Indeed, "collective bargaining becomes a delusion and a snare if the employer , either
directly or indirectly, is allowed to sit on both sides of the table." [Emphasis sup-
plied.]
American Enka Corp. v. N. L. R. B., 119 F. 2d 60, 62 (C. A. 4); Virginia
Ferry Corp. v. N. L. R. B., 101 F. 2d 103, 105 (C. A. 4).
I find no merit in the contention of Respondents that the allegations of the com-
plaint under consideration have not been sustained because "the wage scale of the
Respondent Union is as high or higher than any other local of the International
Union of Operating Engineers in the United States."
First, not one scintilla of evi-
dence was offered in support of any such claim. But even if it be assumed , arguendo,
that the wage scale negotiated between these parties compared favorably with that
prevailing elsewhere, that fact would not be diapositive of the issue posed here. It
is not for me to speculate what wages, or conditions of employment , the negotiators
might ultimately have agreed upon if employer representatives were not found on
both sides of the table.
My responsibility is limited to an analysis of the relationship
existing between the negotiators, consideration of the innate dangers involved in that
relationship , and a determination of whether or not those who purport to act as
negotiators for the employees have the independence of judgment and action en-
visaged and prescribed by the Act. It is enough for me to recognize that there are
"two parties to a labor bargaining contract ,
[and that the Act] requires that the
employees in bargaining be completely independent of the employer so that . .
labor will be represented by persons or organizations having only its interests in
mind, and acting wholly uninfluenced by fear or favor, of or from the management."
[Emphasis supplied.]
N. L. R. B. v. Brown Paper Mill Co., 108 F. 2d 867, 871
(C. A. 5).
On the entire record I find that by the participation, in behalf of the Union, by
Supervisors Smith and Dean in bargaining negotiations with the Association, their
employers, Hendrickson Brothers, Inc., and Radory Construction Corp., respectively,
interfered with and dominated the administration of the Union's affairs , and thereby
violated Section 8 (a) (1) and (2) of the Act.
There remains for consideration what effect the violative conduct just found has
on the Association and the remaining individual respondent contractors .
While the
record does not establish that any of the other members of the Association were
directly aware of Smith's status or presence at the bargaining table, when Hendrick-
son sat at those conferences and dealt with Smith who attended in the guise of a
representative of the employees , Hendrickson was not there in his individual capacity
as president of Hendrickson Brothers, Inc.
He was negotiating as the duly author-
ized representative and agent of the Association and all its members. In that state
of the record, his conduct in continuing to acknowledge , recognize, and deal with
Smith as a representative of the employees must be attributed to his principal, the
Association and all its members Z1
Accordingly, and for the same reasons that
Hendrickson Brothers, Inc., and Radory Construction Corp. were found to have
violated Section 8 (a) (1) and (2) of the Act, I similarly find that the Association,
and the remaining members thereof, violated the same sections of the Act.
Pacific
American Shipowners Association, 98 NLRB 582; N. L. R. B. v. Waterfront Em-
ployers of Washington, 211 F. 2d 946 (C. A. 9).
In arriving at these conclusions I have not ignored Section 14 (a) of the Act read-
ing as follows : "Nothing herein shall prohibit any individual employed as a super-
visor from becoming or remaining a member of a labor organization, but no employer
subject to this Act shall be compelled to deem individuals defined herein as super-
visors as employees for the purpose of any law, either national or local, relating
to collective bargaining."
Respondent Hendrickson Brothers, Inc., contends that
this section "guarantees the right of supervisory personnel to remain members of the
Union," and to exercise all the privileges thereof.
Certainly such a construction is
not justified by a literal application of the words of the section. Indeed, supervisors
have no guaranteed rights under the Act.
To construe the sections as suggested by
Respondents would be to run counter to one of the underlying objectives of the
Taft-Hartley amendments to the Act.
Section 14 (a) came into the Act in 1947 together with the amendment of Section 2
(3) thereof by which it was made clear that supervisors were to be deemed repre-
sentatives of management and no longer included in the definition of "employee" as
that term is used throughout the Act.
By that change, supervisors lost the only
rights "guaranteed" by the Act, the right of "employees."
However, because the
21 "In determining whether any person is acting as an 'agent' of another person so as to
make such other person responsible for his acts, the question of whether the specific acts
performed were actually authorized or subsequently ratified shall not be controlling."
Section 2 (13) of the Act.
NASSAU AND SUFFOLK CONTRACTORS' ASSOCIATION, INC.
215
testimony before the 80th Congress showed that many employers were desirous
of negotiating with a union composed exclusively of foremen , Section 14 (a) was
enacted to make such negotiation permissive.
Thus, the Senate Report dealing with
the amendments concerning "supervisory personnel" reported that the amendments
do "not prevent anyone from organizing nor does it prohibit any employer from
recognizing a union of foremen." 22
[Emphasis supplied.]
Contrary to Respondent's aforementioned contention, therefore, the legislative
history establishes that the 1947 amendments took away, rather than "guaranteed,"
the protected status of supervisors' union activities.
And one of its expressed reasons
for such action was congressional belief that the pressure of supervisors in labor
organizations admitting rank-and-file employees to membership is a source of man-
agement pressure on such ordinary employees.
The House Report accordingly
observed that to accord statutory protection to supervisors in their union affairs is,
in effect, "inconsistent with the policy of Congress to assure to [rank-and-file]
workers freedom from domination or control by their supervisors in their organizing
and bargaining activities." 23 It is thus clear that the caveat to Section 14 (a) was
not intended to extend the rights of supervisors, nor can it be construed to give man-
agement representatives and supervisors license, and the sanction of law, to nullify
both the underlying objectives of the Act and the expressed proscriptions imposed
by Section 8 (a) (2) thereof.24
IV. THE EFFECT OF THE UNFAIR LABOR PRACTICES UPON COMMERCE
The activities of Respondents set forth in section III, above, occurring in connection
with the operations of Respondent Association and its members described in section
I, above, have a close, intimate, and substantial relation to trade, traffic, and commerce
among the several States and tend to lead to labor disputes burdening and obstruct-
ing commerce and the free flow thereof.
V. THE REMEDY
Having found that all the Respondents have engaged in unfair labor practices in
violation of the Act, it is recommended that they be required to cease and desist there-
from and to take certain affirmative action designed to effectuate the policies of the
Act.
It has been found that the Respondent Association and its members and the
Respondent Union have maintained and enforced an illegal discriminatory agree-
ment, and have similarly engaged in the practice of, requiring employees or prospec-
tive employees to be members of, or to obtain job referrals or permits from, the
Respondent Union as a condition of employment. It is, therefore, recommended
that all the Respondents cease and desist from that practice, and from performing
or giving effect to the foregoing contract, or any modification, extension, supplement,
or renewal thereof.
Nothing in this recommendation, however, shall be deemed to
require any of the Respondents to vary or abandon any substantive provisions of
such contract as amended or extended, or to prejudice the assertion by employees
of any rights they may have acquired thereunder.
I have also found that the Union maintains contractual relationship with con-
tractors other than those who are members of the Association.
On the entire record
I am convinced that it is reasonable to anticipate that the Union will also discrimina-
torily require union membership or referral as a condition of security employment
by employees, or prospective employees, of such other employers with whom the
Union maintains contractual relationship.
Because I believe that to effectuate the
policies and purposes of the Act it is necessary to have a remedial order which is co-
extensive with the violations which are reasonably to be anticipated, it is recom-
mended that a cease and desist order be issued enjoining the Union from committing
this and similar violations against employees of any other employer provided such
other employer parties to such agreements or arrangements are employers over whom
the Board would assert jurisdiction in an appropriate proceeding.
International
Brotherhood of Teamsters, etc. (DePrizio Construction Company), 110 NLRB 287.
21 Senate Report No. 1.05, 80th Congress, 1st Session, pp. 3-5.
23 House Report No. 245, 80th Cong., 1st Session, p. 14.
24 In any event, as heretofore noted, I have not found violative of the Act the mere
maintenance of membership by company executives and supervisors so that they may enjoy
the insurance, welfare, social, and employment benefits which membership in the Union may
bestow.
It was the desire to retain these benefits that Hendrickson and several supervisors
testified that they continued to remain members of the Union.
All that has been found
violative of the Act herein has been the interference with, and domination of, the ad-
ministration of the Union's affairs by supervisors and management representatives.
216
DECISIONS OF NATIONAL LABOR RELATIONS BOARD
Having found that the Respondent Association and its members contributed
support to, interfered with, and dominated the Union, it will be recommended, in
order to effectuate the policies of the Act and to free employees from the effect of the
unfair labor practices committed by the Association and its members, that these
Employers cease and desist therefrom, and that they no longer recognize the Union,
or any successor thereto, as the representative of any of their employees for the
purpose of dealing with the Association or any of its members concerning grievances,
labor disputes, wages, rates of pay, hours of employment, or other conditions of
employment.
For the above reasons, and because the effect of the forbidden con-
tract indulged in by the members of the Association in the affairs of the Union is so
overpowering, I conclude that the only effective remedy therefor is to completely dis-
establish the Union as the representative of the employees of the members of the
Association, and I so recommend.
In making that recommendation, I have not been unmindful of the Union's
affiliation with a great and powerful international union.
Indeed, that affiliation
caused me to pause and inquire, as the Board did in earlier years,25 whether a labor
organization affiliated with a national or international federation that was outside
the ambit of the employer's control could be so completely and permanently sub-
jugated to the will of the employer as to require its complete disestablishment.
Thus, for a period of 11 years, from the time of the enactment of the Wagner Act
until 1947, though domination of an affiliated labor organization was found, the
Board consistently was of opinion that the drastic remedy of disestablishment of
such an affiliated union was not required.
Undoubtedly, the power and control
which the national or international federation is capable of exercising over its con-
stituent organizations, and the likelihood that it would, and indeed should, exercise
that power and influence to rid its constituent organizations of such domination,
played a prominent part in limiting the remedy under consideration.
Accordingly,
in the case of such affiliated unions, in addition to directing the cessation of the
illegal interference, the Board merely ordered that recognition be withheld from
the employer-controlled organization until it was certified by the Board.26
However,
in the case of a dominated nonaffiliated union, the Board always ordered complete
disestablishment as the only adequate remedy for such domination.
By its 1947 amendment of Section 10 (c) of the Act, Congress expressed its
disagreement with the foregoing distinction drawn by the Board.
By that amend-
ment, the Board was directed to' apply the "same regulations and rules of decision
.
irrespective of whether or not the labor organization affected is affiliated with a labor
organization national or international in scope."
Accordingly, since that time, in
the comparatively rare cases involving a dominated union with such affiliation, the
Board has ordered complete disestablishment.
See Jack Smith Beverages, Inc., 94
NLRB 1401, enfd. as mod. in another respect, 202 F. 2d 100 (C. A. 6), and Poly-
nesian Arts, Inc., 100 NLRB 542, enfd. as mod. in another respect, 209 F. 2d 846
(C. A. 6). In the circumstances here, I believe that disestablishment is the only
remedy.
The scope of the unfair labor practices indulged in by all of the Respondents dis-
closes a purpose to interfere with, restrain, and coerce employees in the exercise of
the rights guaranteed in Section 7 of the Act, and that danger of other unfair labor
practices in the future is to be anticipated from the course of Respondents' conduct
in the past. In order, therefore, to make effective the interdependent guarantees of
Section 7 of the Act and effectuate the policies of the Act, it is recommended that
all the Respondents cease and desist from in any manner infringing upon the rights
guaranteed employees in the Act.
Upon the basis of the foregoing findings of fact, and upon the entire record in the
case, I make the following:
CONCLUSIONS OF LAW
1. Respondent Union, Local 138, International Union of Operating Engineers,
AFL-CIO, is a labor organization within the meaning of Section 2 (5) of the Act.
2. By discriminating in regard to the hire and tenure of employment of their
employees, and by maintaining in effect an unlawful union-security agreement,
Respondent Nassau and Suffolk Contractors' Association, Inc., and all of its members
have engaged in and are engaging in unfair labor practices within the meaning of
Section 8 ( a) (1) and 8 (a) (3) of the Act.
25 See Carpenter Steel Company,76 NLRB 670.
20 "No certification would, of course, issue, until the effect of the employer's illegal
control . . . had been dissipated, but thereafter it could issue to the same organization."
Carpenter Steel Co., supra.
ORANGE CRUSH OF P. R., INC.
217
3. By interfering with, giving support to, and dominating the administration of
the affairs of the above-named Union, the aforesaid Association and all its mem-
bers violated Section 8 (a) (2) and 8 (a) (1) of the Act.
4. By causing the said Association and its members to discriminate against em-
ployees and prospective employees in violation of Section 8 (a) (3) of the Act, the
above-named Union has engaged in and is engaging in unfair labor practices within
the meaning of Section 8 (b) (1) (A) and 8 (b) (2) of the Act.
5. The aforesaid unfair labor practices are unfair labor practices affecting
commerce within the meaning of Section 2 (6) and (7) of the Act.
[Recommendations omitted from publication.]
APPENDIX A
Bancker-Tooker & Co., Inc., 67 Orchard Street, Manhasset, L. I.
Buchanan & Eberhard, Inc., Shore Road, Glenwood Landing, L. I.
William Casey & Sons, Inc., 2 Lakeview Avenue, Lynbrook, L. I.
Craft & Brucia, Inc., 158 Irving Place, Woodmere, L. I.
Davis Construction Corp., Charlotte Ave., Hicksville, L. I.
Ted Fatscher, 17 Emerson Place, Valley Stream, L. I.
Gifford Construction Co., Inc., 146 Newbridge Road, Hicksville, L. I.
Good Roads Engineering & Contracting Co., Inc., Burns Avenue, Wantagh, L. I.
Grant Park Construction Co., Inc., 65 Prospect Avenue, Lynbrook, L. I.
Grefe & Brennan, 71 S. Long Beach Road, Long Beach, L. I.
William H. Greene, Grand Boulevard, Westbury, L. I.
J. J. Hagerty, Inc., Westhampton Beach, New York
The Hallen Co., Inc., 45-24 37th Street, Long Island City, New York
Hendrickson Brothers, Inc., Valley Stream, Long Island, New York
Hinkle & Finlayson, Inc., Sea Cliff Avenue, Glen Cove, L. I.
Horn Construction Co., Inc., 2174 Hewlett Avenue, Merrick, L. I.
Karlson & Reed, Inc., W. Barclay Street, Hicksville, L. I.
Frank Marmorale, Oyster Bay Road, Locust Valley, L. I.
Merrick Utility Associates, Inc., 26 Surrey Drive, Merrick, L. I.
John C. Peterson Construction Co., 958 Church Street, Baldwin, L. I.
Radory Construction Corp., 94 Cherry Valley Road, West Hempstead, L. I.
Vincent Provenzano Construction Co., 1955 Franklin Place, Woodmere, L. I.
W. E. Sexton, Inc., 193-195 Jericho Turnpike, Mineola, L. I.
Slattery Contracting Co., Inc., 46-36 54th Road, Maspeth, L. I.
R. Salerno & Sons, 116 Harbor Road, Port Washington, L. I.
Standard Bitulithic Co., Woodside Avenue, Baldwin, L. I.
Switzer Contracting Co., Morris Avenue, Glen Cove, L. I.
Tuly & DiNapoli, Inc., 127-50 Northern Boulevard, Corona, New York
Orange Crush of P. R., Inc. and Unidad General de Trabajadores
de P. R., Petitioner. Case No. P34-RC-954. June 18,1957
DECISION AND DIRECTION OF ELECTION
Upon a petition duly filed under Section 9 (c) of the National Labor
Relations Act, a hearing was held before George L. Weasler, hearing
officer.
The hearing officer's rulings made at the hearing are free
from prejudicial error and are hereby affirmed.
Upon the entire record in this case, the Board finds :
1. The Employer is engaged in commerce within the meaning of the
Act.'
2. The labor organization involved claims to represent certain em-
ployees of the Employer.
1 See Orange Crush of Puerto Rico, Inc., Case No. 24-RC-784, not reported in printed
volumes of Board Decisions and Orders.
118 NLRB No. 25.