129 NLRB 937
Local 450, Int'l Union of Operating Engineers
LOCAL 450, INT'L UNION OF OPERATING ENGINEERS
937
carrier boys are not employees of the Employer.'
Accordingly, and
as the record clearly indicates that circulation salesmen do not exer-
cise supervisory functions as to distributors, we find that they are
not supervisors within the meaning of the Act.
As for the Employer's. contention that the proposed unit is inappro-
priate because circulation salesmen lack the same interests as dis-
tributors, it is clear that the efforts of both groups of employees are
directed toward the distribution and sale of the Employer's news-
papers, and that they have sufficient interests in common to warrant
their establishment in a single unit.
Accordingly, we find that a unit of the following employees is
appropriate for the purposes of collective bargaining within the mean-
ing of Section 9 (b) of the Act :
All employees in the outside circulation department of the Em-
ployer, including distributors and circulation salesmen; but excluding
independent contractors, office clerical employees, supervisors as de-
fined in the National Labor Relations Act, guards, and professional
employees.
[Text of Direction of Election omitted from publication.]
6 Solar Electric Corporation, 128 NLRB 35 ; Lampcraft Industries, Inc., at al., 127
NLRB 92.
Local Union No. 450, International Union of Operating Engi-
neers, AFL-CIO [Proton] and Charles C. Hart, et al.
Cases
Nos. 23-CB-208, 23-CB-209, 23-CB-232, 23-CB-234, 23-CB-237,
23-CB-239, 23-CB-242, 23-CB-248, 23-CB-249, and 23-CB-256.
December 15, 1960
DECISION AND ORDER
On July 27, 1959, Trial Examiner Eugene K. Kennedy issued his
Intermediate Report in the above -entitled proceeding , finding that
the Respondent, Local Union No. 450, International Union of Operat-
ing Engineers, AFL-CIO, hereinafter referred to as the Union, had
engaged in and was engaging in certain unfair labor practices, and
recommending that it cease and desist therefrom and take certain
affirmative action, as set forth in the copy of the Intermediate Report
attached hereto.
The Trial Examiner also found that the Respondent
had not engaged in certain other unfair labor practices and recom-
mended that the complaint be dismissed with respect thereto. There-
after the General Counsel and the Respondent filed exceptions to the
Intermediate Report.
129 NLRB No. 115.
938
DECISIONS OF NATIONAL LABOR RELATIONS BOARD
Pursuant to the provisions of Section 3(b) of the Act, the Board
has delegated its powers in connection with this case to a three-
member panel
[Chairman Leedom and Members Rodgers and
Jenkins].
The Board has reviewed the rulings of the
Trial
Examiner
made at the hearing and finds that no prejudicial error was committed.
The rulings are hereby affirmed. The Board has considered the Inter-
mediate Report, and the exceptions, and the entire record in the case.
The Board finds merit in certain of the General Counsel's exceptions,
and adopts the findings, conclusions, and recommendations of the
Trial Examiner only to the extent consistent herewith.
1. The General Counsel excepts to the Trial Examiner's failure to
find the existence of an illegal hiring-hall arrangement between
Procon, hereinafter referred to as the Company, and the Union.
We
find merit in this exception.
In 1957 the Company commenced construction of an oil refinery in
Port Arthur, Texas.
The construction of the project was broken
down into various jobs designated by numbers.
Operating engineers
employed for work on these jobs were secured by the Company ex-
clusively through the Union.
Although the record reflects that only
union members were employed by the Company, it does not appear
that the Union at that time had requested any arrangement or threat-
ened sanctions if the Company did not employ union members, or if
the Union was not made the Company's exclusive hiring source.
The
particular jobs involved in this proceeding are 1269, 1270, and 1405.
Jobs 1269 and 1270 were in progress during the fall of 1957, and a
number of the Union's members were employed thereon. Job 1405
was scheduled to begin in early 1958, a fact which was commonly
known, and employees expressed an interest in being transferred to
1405 when their work on 1269 and 1270 ended.
In December 1957 Homer Pierce, a representative of the Union, re-
quested a meeting with the Company' s superintendent, McReynolds.
At this meeting, Pierce told McReynolds that he "had people .. .
loafing in the hall," and that, on job 1405, he wanted "to rotate his
people so that he could offer more jobs to his people."
Pierce also
told McReynolds that he wanted the Company "to hire new people
for 1405, or otherwise, hire them out of the hall."
Pierce stated that
the Company "possibly . . . might get some of the same people back
if they was on the list, that way [the Company] might get some of the
same people back that was working for [the Company] at present."
Pierce wanted the Company "to start off with a new crew on 1405."
After contacting his home office, McReynolds, on January 30, 1958,
told Pierce he would hire a new crew for 1405, and on February
7, 1958, three operating engineers referred by the Union were em-
ployed to work on the new project.
LOCAL 450, INT'L UNION OF OPERATING ENGINEERS
939
In agreement with the Trial Examiner, we find that by the con-
versations between Pierce and McReynolds an arrangement was made
obligating the Company to staff 1405 with union members. Contrary
to the Trial Examiner, we further find that by this arrangement the
Company also agreed to use the union hiring hall exclusively as the
source of its operating engineers. In the light of the Company's past
practice of hiring exclusively through the Union, it is obvious that
both Pierce and McReynolds understood that the members employed
on 1405 were to be similarly obtained.
Moreover, as noted above,
Pierce referred to the possibility of the Company's obtaining for
work on 1405 some of its old employees if those employees were "on
the list."
We think it also clear that Pierce was, in this connection,
referring to the Union's out-of-work list which was to be the basis
for employment under the Union's job rotation plan; and that, by
its acceptance of the Union's rotation proposal, the Company obli-
gated itself to hire exclusively through the Union.
Thus, what may
have previously been a unilateral practice on the Company's part now
became a commitment.
In the Mountain Pacific case,' the Board established the rule that
an exclusive hiring-hall agreement or arrangement could be valid only
if it provided certain safeguards.
None of these safeguards was made
a part of the arrangement between the Company and the Union here.
As this arrangement thus did not conform with the Mountain Pacific
standards, and also because this arrangement obligated the Company
to employ none but members of the Union, we find that the Union by
entering into and maintaining this arrangement violated Section
8(b) (1) (A) and (2) of the Act.
2. The General Counsel also excepts to the Trial Examiner's failure
to find that all 10 of the Charging Parties were discriminated against
as alleged.
As to these 10 employees (all of whom were terminated
from jobs 1269 and 1270 and, during the period material here, were
not employed on job 1405), the Trial Examiner found that 1 (Smith)
was discharged' for cause,,2 (Stirling and McNeil) were terminated
in violation of the Act, and that the General Counsel failed to estab-
lish a violation as to the remaining 7.
We agree with the Trial Examiner that Smith was discharged for
cause, in view of McReynolds credited testimony that Smith was dis-
charged because of a delay in reporting back from a doctor.
We also
agree with the Trial Examiner that Stirling and McNeil were un-
lawfully terminated, and we do so not only for the reasons stated by
the Trial Examiner, 2 but for the additional reasons given herein.
'Mountain Pacific Chapter of the Associated General Contractors , Inc., et
al.,
119
NLRB 883.
2 Contrary to the Respondent's contention, the record clearly establishes, as found by
the Trial Examiner, that it was the custom in that locality for operating engineers to
follow their rigs and equipment ; and it is also apparent that the Company 's failure to
940
DECISIONS OF NATIONAL LABOR RELATIONS BOARD
Contrary to the Trial Examiner, and in agreement with the General
Counsel, we also find that the remaining seven employees were dis-
criminated against.
As noted above, the fact that the Company intended to begin work
on 1405 in early 1958 was common knowledge. As McReynolds testi-
fied, operating engineers employed on jobs 1269 and 1270 "consist-
ently" asked him if they were going to be employed on job 1405.
As also noted, however, before commencement of work on 1405 Mc-
Reynolds entered into the arrangement with Pierce, the effect of which
was to bar 1269 and 1270 operating engineers from employment on
1405.
While it may be, as the Trial Examiner found, that after
February 1958 the Company no longer used the union hiring hall
exclusively, it is clear that the parties did continue in force the Com-
pany's obligation to employ a new crew of union members for work
on 1405.
McReynolds testified that Wolaver, Phelps, McNeil, and
Serrat, all of whom were terminated after February 1958, would
have been transferred to 1405.
Although McReynolds stated that
their transfer would have depended upon the availability of work
for them on 1405, the clear import of his testimony is that lack of
work was not the reason they were not so transferred ; for McRey-
nolds further testified that he did not know whether there was work
for them when they were terminated. The only reasonable inference
to be drawn from McReynold's testimony is that it was the arrange-
ment-unlawful because it provided for a closed shop-that caused
him to deny these employees work on 1405.
McReynold's gave similar
testimony with respect to the employees on 1269 and 19,70 in general.
Thus, in response to a question of whether there was any reason other
than the arrangement with Pierce why employees on 1269 and 1270
were not transferred to 1405, McReynolds testified : "I am sure we
would have transferred some of the operating engineers over there
if it had been possible, yes." It is thus clear that in refusing to give
those employees who worked on 1269 and 1270 employment on 1405,
McReynolds was carrying out the unlawful arrangement with Pierce,
and that the net effect of McReynold's action was discrimination
against the 1269 and 1270 employees as a group.
While it does not appear that any of the operating engineers in
question made formal application to the Company for employment on
1405 subsequent to the arrangement between the Company and the
Union, we do not consider their failure to do so material. It is clear
that any such application would have been futile.
Not only did the
transfer Stirling and McNeil to 1405 with their equipment contrary to this custom, was
in furtherance of the unlawful arrangement .
With respect to Stirling, it is not material
that this employee may have been offered continued employment on jobs 1269 and 1270 in
lieu of employment on job 1405.
His failure to accept the offer may have a bearing
upon his right to backpay, but that does not change the fact that
Stirling was dis-
criminatorily denied employment of undoubtedly longer tenure of fob 1405.
LOCAL 450, INT'L UNION OF OPERATING ENGINEERS
941
arrangement prevent the Company from assigning them to work on
1405, but the Union threatened to strike if they were so assigned. In
fact, as the Trial Examiner found, the temporary assignment, in
February 1958, of job 1269 and 1270 operating engineers to job 1405
work occasioned a short union-sanctioned strike.
Nor do we consider
material, as the Trial Examiner did, the fact that no showing was
made that there were specific jobs available for these seven employees
on 1405.
The record establishes that new operating engineers were
hired on 1405 continually during the period of the layoffs on 1269
and 1270.
McReynolds testified that he had been satisfied with the
crew he had had on 1269 and 1270, but notwithstanding this satis-
faction, McReynolds staffed 1405 with new employees.
Thus, it is
readily apparent that McReynolds did not even consider the 1269
and 1270 operating engineers for employment on 1405, and that the
only reason he did not consider them was because of the arrangement
with Pierce. In these circumstances, we think it clear that these em-
ployees were victims of the unlawful arrangement.
Accordingly, we
find that the Union, by maintaining and enforcing the unlawful ar-
rangement caused the Company to discriminate against these em-
ployees in violation of Section 8(b) (1) (A) and (2) of the Act.
THE REMEDY
Having found that the Union engaged in certain unfair labor
practices within the meaning of Section 8(b) (2) and (1) (A) of the
Act, we shall order it to cease and desist therefrom and to take certain
affirmative action designed to effectuate the policies of the Act.
Specifically, we have found that the Union caused the Company to
discriminate against Hendrix, Hart, Brady, Stirling, Cassel, Wolaver,
Phelps, McNeil, and Smith.
Accordingly, we shall order these indi-
viduals to be made whole for any loss of pay suffered as a result of
this discrimination.
The record does not clearly establish the exact
dates these discriminatees would have been employed on job 1405 but
for the unlawful arrangement, but this can be determined in com-
pliance proceedings.
The backpay ordered herein shall be computed
in accordance with the formula stated in F. W. Woolworth Company,
90 NLRB 289.
We have also found the arrangement between the Company and the
Union unlawful in that it originally provided for an exclusive hiring
arrangement which did not meet Mountain Pacific standards, and fur-
ther because at all times it provided for a closed shop.
We shall,
therefore, order the Union to cease and desist from entering into, per-
forming, maintaining, or otherwise giving effect to any agreement
or arrangement which conditions employment on membership in the
Union, or which provides for an exclusive hiring arrangement with-
out containing the Mountain Pacific safeguards.
942
DECISIONS OF NATIONAL LABOR RELATIONS BOARD
Contrary to the Trial Examiner, we find that the unlawful hiring
arrangement necessarily had the effect of coercing those opening en-
gineers who received employment on job 1405 into making dues and
other payments to the Union.
We shall, therefore, order a reimburse-
ment to these employees of the dues and other payments thus unlaw-
fully exacted .
United Association of Journeymen c.0 Apprentices of
Plumbing f Pipe fitting Industry of the United States and Canada,
Local 213, AFL-CIO (J. S. Brown-E. F. Olds Plumbing d Heating
Corporation), 115 NLRB 594.
ORDER
Upon the entire record in the case, and pursuant to Section 10(c)
of the National Labor Relations Act, as amended, the National Labor
Relations Board hereby orders that the Respondent, Local Union No.
450, International Union of Operating Engineers, AFL-CIO, its of-
ficers, representatives, agents, successors, and assigns, shall:
1. Cease and desist from :
(a) Entering into, performing, maintaining, enforcing, or other-
wise giving effect to any agreement, arrangement, or understanding
or practice with Procon, or any other employer over whom the Board
would assert jurisdiction, which provides for an exclusive hiring hall
but does not explicitly provide for the minimum safeguards stated in
Mountain Pacific, etc., supra, or which requires membership in the
Respondent Union as a condition of employment, except as authorized
by the proviso to Section 8 (a) (3) of the Act, as modified by the Labor-
Management Reporting and Disclosure Act of 1959.
(b) Causing or attempting to cause Procon, or any other employer
over whom the Board would assert jurisdiction, to discriminate against
employees or applicants for employment in violation of Section
8(a) (3) of the Act, as modified by the Labor-Management Reporting
and Disclosure Act of 1959.
(c) In any other manner restraining or coercing employees or ap-
plicants for employment in the exercise of the rights guaranteed in
Section 7 of the Act, except to the extent that such rights may be af-
fected by an agreement requiring membership in a labor organization
as a condition of employment, as authorized in Section 8(a) (3) of the
Act, as modified by the Labor-Management Reporting and Disclosure
Act of 1959.
2. Take the following affirmative action, which the Board finds will
effectuate the policies of the Act :
(a) Reimburse all employees of Procon employed on job 1405 under
the arrangement between Procon and the Respondent Union for
moneys illegally exacted from them in the manner set forth in the
section herein entitled "The Remedy."
LOCAL 450, INT'L UNION OF OPERATING ENGINEERS
943
(b) Make whole L. C. Hendrix, Earl C. Stirling, Charles Hart,
Harry R. Brady, V. E. Cassel, Billy F. Wolaver, John M. Phelps, T.
H. McNeil, and Mert Serratt for any loss they may have suffered as the
result of the discrimination against them in the manner set forth in
the section herein entitled "The Remedy."
(c) Preserve and, upon request, make available to the Board or its
agents, for examination and copying, all records necessary to analyze
the amounts of backpay and of reimbursement due under the terms of
this Order.
(d) Post in conspicuous places at the business offices, hiring hall,
meeting places, and all other places where notices or communications
to its members are customarily posted, copies of the notice attached
hereto and marked "Appendix." 3 Copies of such notice, to be fur-
nished by the Regional Director for the Twenty-third Region, shall,
after being duly signed. by an authorized representative of the Re-
spondent Union, be posted immediately upon receipt thereof, and
maintained for a period of 60 consecutive days.
Reasonable steps shall
be taken by the Respondent Union to insure that said notice posted
and maintained by it shall not be altered, defaced, or covered by any
other material.
(e) Mail to the Regional Director for the Twenty-third Region
signed copies of the notice attached hereto marked "Appendix" for
posting, Procon willing, at Procon's operations at the Gulf refinery
project, Port Arthur, Texas.
(f) Notify the Regional Director, in writing, within 10 days from
the date of this Order, as to what steps the Respondent has taken to
comply herewith.
MEMBER JERKINS, dissenting in part:
I disagree with my colleagues' imposition of a Brown-Olds reim-
bursement remedy in this case.
I stated in my separate concurrence and dissent in Shear's Phar-
macy, Inc., 128 NLRB 1417, that I regard the existence of a causal
relationship between the unfair labor practices and the moneys paid
to the Union as a sine qua non in determining whether or not the im-
position of this reimbursement remedy is appropriate.
A careful
analysis of the facts and circumstances of this case convinces me that
no such causal relationship exists here.
As found by the Trial Examiner, the record in this case "is replete
with evidence" that approximately half of the employees obtained em-
ployment through the Union and half by direct application to the
Employer.
Moreover, the Trial Examiner found on the basis of the
3In the event that this Order is enforced by a decree of a United States Court of
Appeals, 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 "
944
DECISIONS OF NATIONAL LABOR RELATIONS BOARD
preponderance of testimony of the General Counsel's own witnesses
that dues were paid by union members "as a matter of choice and not
of coercion." In the light of the record evidence, the Trial Examiner
concluded, correctly in my opinion, that the record does not establish
a causal connection, i.e., coercion in the payment of dues arising out of
the unfair labor practices, and would therefore be unrelated to the
remedial function of the Board in rectifying and preventing unfair
labor practices.
This was stated in even more precise language by the
Supreme Court in the Virginia Electric case (319 U.S. 533, at pp.
539-540) when the Court adverted to the Board's administrative de-
termination in fashioning a remedy by a clear indication that such a
determination will stand "unless it can be shown that the order is a
patent attempt to achieve ends other than those which can fairly be
said to effectuate the policies of the Act." I submit that where no
causal relationship exists between the unfair labor practices and the
payment of moneys to the Union, it cannot fairly be said that the impo-
sition of the drastic Brown-Olds remedy effectuates the policies of the
Act.
Applying this reasoning to the facts of this case, it seems clear that
the Union's attempt to obtain work for members by requesting a rota-
tion of employees on job 1405 could not have had any coercive effect
with respect to their payment of dues to the Union. And while I con-
cur in the finding of unfair labor practices in this case, I would not, in
the factual context of this case, and in the absence of causality between
the unfair labor practices and the moneys paid, invoke the reimburse-
ment remedy. As I view it, there must be a predicate based upon proof
of coercion.
A remedy should be related to the facts of each case and
tailored to meet the needs of each case. It should not be used as a puni-
tive weapon or become an unjust penalty to the union or provide a
windfall to employees.
The Supreme Court in N.L.R.B. v. Express Publishing Company,
312 U.S. 426, stated :
... The breadth of the order, like the injunction of a court, must
depend upon the circumstances of each case, the purpose being to
prevent violations, the threat of which in the future is indicated
because of their similarity or relation to those unlawful acts
which the Board has found to have been committed by the em-
ployer in the past.
Consistent with this statement of principle, it is my belief that the
Boards determination with respect to the applicability of the Brown-
Olds reimbursement remedy is a matter of "informed discretion," as
that term was used by the Supreme Court in the Virginia Electric case,
and not a matter of strict stare decisis.
Facts differ from case to case;
no two are ever alike.
The informed discretion that the Board has
LOCAL 450, INT'L UNION OF OPERATING ENGINEERS
945
been admonished to exercise in fashioning a remedy should not be con-
verted into a mechanistic application of precedent which, if permitted
to operate as an automatic formula , will be neither informed nor an
exercise of discretion.
For these reasons, I decline to join in the remedial provision which
imposes the reimbursement remedy on the basis of the Brown-Olds
formula.
APPENDIX
NOTICE TO ALL MEMBERS OF LOCAL UNION No. 450 INTERNATIONAL
UNION OF OPERATING ENGINEERS, AFL-CIO, AND TO ALL EM-
PLOYEES OF PROCON
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, as amended, we hereby notify you that:
WE WILL NOT enter into, perform, maintain, enforce, or other-
wise give effect to any agreement, arrangement, or understanding
or practice with Procon, or any other employer over whom the
Board would assert jurisdiction, which requires membership in
our organization as a condition of employment, except as author-
ized by the proviso to Section 8(a) (3) of the National Labor
Relations Act, as modified by the Labor-Management Reporting
and Disclosure Act of 1959.
WE WILL NOT enter into, perform, maintain, enforce or other-
wise give effect to any agreement, arrangement, or understanding
or practice with Procon, or any other employer over whom the
Board would assert jurisdiction, which requires that the employer
hire its employees through us exclusively unless that agreement,
arrangement, understanding, or practice explicitly provides that:
(1) Selection of applicants for referral to jobs shall be on a non-
discriminatory basis and shall not be based on, or in any way
affected by, union membership, bylaws, rules, regulations, con-
stitutional provisions, or any other aspect or obligation of union
membership, policies or requirements; (2) the employer retains
the right to reject any job applicant, which we may refer; and
(3) all parties to the agreement, arrangement, understanding, or
practice post in places where notices to employees and job appli-
cants are customarily posted, all provisions relating to the func-
tioning of the hiring arrangement, including these provisions.
WE WILL NOT cause or attempt to cause Procon, or any of her
employer over whom the Board would assert jurisdiction, to
discriminate against employees or applicants for employment in
violation of Section 8 (a) (3) of the Act, as modified by the Labor-
Management Reporting and Disclosure Act of 1959.
586439-61-vol 129--61
946
DECISIONS OF NATIONAL LABOR RELATIONS BOARD
WE WILL NOT in any other manner restrain or coerce employees
or applicants for employment in the exercise of the rights guar-
anteed 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 Sec-
tion 8(a) (3) of the Act, as modified by the Labor-Management
Reporting and Disclosure Act of 1959.
WE WILL make whole L. C. Hendrix, Earl C. Stirling, Charles
Hart, Harry R. Brady, V. E. Cassel, Billy F. Wolaver, John M.
Phelps, T. H. McNeil, and Mert Serratt for any loss of pay each
may have suffered as a result of the discrimination against them.
WE WILL reimburse all employees of Procon employed on job
1405 under our arrangement with Procon for the dues and other
moneys they were required to pay our Union.
LOCAL UNION No. 450, INTERNATIONAL UNION
OF OPERATING ENGINEERS, AFL-CIO,
Labor Organization.
Dated----------------
By-------------------------------------
(Representative)
(Title)
This notice must remain posted for 60 days from the date hereof,
and must not be altered, defaced, or covered by any other material.
INTERMEDIATE REPORT AND RECOMMENDED ORDER
STATEMENT OF THE CASE
A hearing in this matter was conducted in Beaumont, Texas, on 5
hearing
days between April 6 and 13, 1959.
The consolidated complaint was issued on
10 individual charges alleging that Local Union No. 450, International Union of
Operating Engineers, AFL-CIO, herein called the Union, had violated Section
8(b).(1)(A) and 8 (b)(2) of the National Labor Relations Act, herein called the
Act.
The Union's verified answer denied the charging allegations of the complaint
which will be summarized below.
The Union's motion to dismiss the complaint in
whole or part, on which ruling was reserved, is disposed of by the findings and
conclusions herein.
At the conclusion of the General Counsel's case the Union did not offer any
evidence, but contended that violations of the Act had not been established by
the evidence.
A brief filed by the Union has been considered.
There are two general issues raised by this record: (1) Whether the Union and
the Employer Procon, herein called Procon, entered into an illegal hiring arrange-
ment; and (2) whether any or all of the 10 charging parties were terminated or
refused employment in violation of Section 8(b) (2) of the Act.
Upon .the entire record and my observation of the witnesses, I make the following:
FINDINGS OF FACT
1. THE JURISDICTION OF THE BOARD AND NATURE OF THE COMPANY' S BUSINESS
Procon, a construction company with main offices in
Ilinois, is found to be
engaged in interstate commerce within the meaning of the Act and to have inter-
state operations bringing it within the jurisdiction of the National Labor Relations
Board i
'The parties stipulated and It Is so found that : The Employer in the course and con-
duct of Its business operations during the past 12 -month period, which period is repre-
LOCAL 450, INT'L UNION OF OPERATING ENGINEERS
947
The operations of Procon involved in this proceeding occurred at the Gulf Oil
Company refinery in Port Arthur, Texas. In 1957, Procon started the first of five
construction projects at this location.
Each project had a number the first being
1251, the second 1269, the third 1270, the fourth 1405, and the fifth 1408.
The
total value of all five projects approximated $20,000,000.
II. THE LABOR ORGANIZATION INVOLVED
The complaint alleges and the answer admits and it is found that the Union is
a labor organization within the meaning of Section 2(5) of the Act.
111. THE ALLEGED UNFAIR LABOR PRACTICES
The complaint alleges that on or about August 13, 1957, the Union and Procon
entered into an illegal hiring arrangement whereby the Union was the exclusive hir-
ing agent causing discrimination against employees.
Although this paragraph al-
leges the Union entered into an illegal exclusive hiring arrangement with other
employers at the same time, the General Counsel was explicit that his case was,
aimed only at the arrangement between Procon and the Union.
The evidence
adduced at the hearing in the opinion of the Trial Examiner reflects that the Gen-
eral Counsel was correct in limiting the issue to the hiring practice of Procon and
the Union, and it is found that the evidence does not support a finding that an un-
lawful hiring arrangement existed between other employers than Procon and the
Union.
The complaint alleges that the Union caused Procon to discharge and failed to
reinstate the employees listed below because the Union did not approve of their
union activities or because they engaged in concerted activities for the purpose of
collective bargaining or other mutual aid or protection.
These activities by the
Union are alleged to have violated Section 8(h)(1)(A) and (2) of the Act.
The complaint also charges that since the date of the discharge the Union has
caused Procon to refuse reinstatement to the employees listed below.
The termina-
tion of the Charging Parties occurred on the dates indicated.
L. C. Hendrix ------------------------------------ January 8, 1958
Charles C. Hart __________________________________ February 7, 1958
Harry R. Brady---------------------------------- February 7, 1958
Earl C. Stirling_________________________________ February 12, 1958
Archie B. Smith -------------------------------- February 12,
1958
V. E. Cassel____________________________________ February 28,
1958
Billy F. Wolaver__________________________________ March 25,
1958
John M. Phelps___________________________________ March 24,
1958
T. H. McNeil______________________________________ April 4,
1958
Mert Serratt_______________________________________ April 24,
1958
The Alleged .Illegal Hiring Practices
As previously noted, the complaint alleges that on August 13, 1957, the Union
entered into an illegal exclusive hiring arrangement with Procon.
The evidence
presented does not support this contention.
Proton's superintendent, McReynolds,
a witness for the General Counsel, specifically denied that either Procon or the
Union had requested any hiring arrangement. In 1957 when McReynolds assumed
charge of the Procon construction he unilaterally started the practice of securing
operating engineers through the Union.
He also testified that he reserved the
right to reject employees sent by the Union but that he did not find it necessary
inasmuch as the Union sent him competent personnel.
The question of an unlaw-
ful hiring arrangement on job 1405 will be considered separately, but with respect
to a general practice of an illegal exclusive hiring arrangement between Procon and
the Union the record is barren of any request or act by the Union or Procon aimed
at securing an illegal hiring arrangement between Procon and the Union.
In addition to using the union hall as a means of expeditiously obtaining employees
with the requisite skills, it is quite likely that McReynolds regarded this mode of
securing operating engineers as an aid in avoiding labor disputes and work stoppages.
sentative of all times material hereto, purchased raw materials, equipment, products,
supplies consisting principally of steel, machinery, building products, chemical and refining
equipment, necessary for the construction and erection of chemical and petroleum plants
valued in excess of
$500,000,
which was shipped in interstate commerce into the State
of Texas from points other than the State of Texas and in interstate commerce generally
and in foreign commerce
948
DECISIONS OF NATIONAL LABOR RELATIONS BOARD
Such an impression is not a sufficient substitute for an essential element necessary
to establish that an exclusive illegal hiring arrangement existed.2
The area practice with respect to the method of hiring operating engineers sup-
ports the conclusion that the decision to use the union hiring hall was a voluntary
unilateral determination by Procon.
Master Mechanic Smith, one of the Charging
Parties, testified that commencing in February 1957, operating engineers secured work
by direct application to employers who paid the union wage scale.
Moreover, after
their termination at various times in 1958, the Charging Parties testified they secured
some jobs through the union hall and some by direct application.
McReynolds also
testified that at no time did the union representatives threaten a strike if Procon
did not use the Union as its exclusive agent to obtain operating engineers.
Although it appears from the record that probably all of Procon's operating
engineers were members of the Union, this does not provide a basis for a finding
that the Union was a party to an illegal exclusive hiring arrangement. It appears
that the operating engineers in the Union here involved, value their membership
apart from any right to secure employment through the Union. In addition to the
fact that union members secured employment by direct application to employers,
commencing in February 1957, all of the Charging Parties testified that they were
union members in April 1959, despite the fact that they all returned to work at Procon
in the fall of 1958 without being referred by the Union, and that since their earlier
termination in 1958 the general pattern of employment was that some of the jobs
were obtained through the Union and some were obtained by direct application to
an employer.
The evidence in this case does not support a finding that Procon
delegated its hiring of operating engineers to the Union or made the Union its agent
for such a purpose.
At all times material herein, Procon not only reserved the
right to reject any operator sent by the Union but also as far as this record indicates
it was also completely free to change its hiring policies and take direct applications
as did other employers in the area, where union operating engineers were employed,
which it in fact did in February 1958.
On this record it is found that the general practice of obtaining employees from
the Union resulted from a unilateral determination by Procon.
Since the Union was not a party to a hiring arrangement the question of the
exclusive utilization of the Union to obtain employees by Procon is not a determina-
tive factor on the question as to the legality of the hiring practice.
However,
McReynolds' testimony here quoted reflects the conflict as to when the Union ceased
being the exclusive supplier of Procon's operating engineers and is relevant in
showing union members did not hire operating engineers for Procon.3
(By Mr. WHITTAKER) :
Q. Would you tell us what has been your practice up until, say, September
of 1958, of recruiting people to do operating engineers work?
A. Our hiring practice has been that we would, either the assistant super-
intendent in the field or the master mechanic under his instructions, would
issue a request for labor; in other words, we put in a requisition for labor.
That would come up to my office and be initialed by me and would either go
to our accounting man, which was John Infield; he would call the hall, or in
some cases I would call the people, that is, for people we needed as the
classification.
Later, in response to another question, McReynolds testified with respect to
Procon's hiring practice before September 1958 as follows:
z International Alliance of Theatrical Stave Emploijeas and Moving Picture Machine
Operators, etc (Columbia Broadcasting System, Inc ), 119 NLRB 810: in NLRB v
Brotherhood of Painters, etc (Spoon Tile Co ), 242 F 2d 477 (CA. 10), enfg as mod
114 NLRB 1171, the court found that a unilateral policy of an employer to obtain em-
ployees from a union could not constitute a violation of the Act on the part of the union
involved
While the court disagreed with the Board on the inference to be drawn from
the evidence presented, I do not find in the Board's opinion anything opposed to the
principle that a unilateral decision by an employer to secure employees through a union
does not provide a basis for finding that the union has violated the Act.
3 The General Counsel introduced a copy of the constitution of the International Union
of Operating Engineers, which included a provision requiring that members hire only
people in good standing Inasmuch as this record does not indicate any hiring done by
members of the Union, this provision does not aid in establishing an illegal exclusive
arrangement between Procon and the Union
Also Procon's knowledge of this provision
was not shown
LOCAL 450, INT'L UNION OF OPERATING ENGINEERS
949
I don't think we have deviated from calling the hall. I will put it that way.
It may have been that we might have seen one of the business agents and told
him we needed a certain man. It might have been verbal or by calling the ha1L
On cross-examination by counsel for the Union, McReynolds gave the following
testimony:
Q. Since-and I would like to ask you particularly on this question if you
would just confine yourself to answering it since February of '58.
Has Procon abandoned calling Local 450 to send out operators when they
need them on the job?
A. Yes we have.
Q. Since February of 1958, how do you recruit your workmen?
A. Usually calling them by name.
Q. You call the workmen by name?
A That's right.
Q. You mean you contact them at their home?
A. That's correct. In most cases, they are rehired, people that we have
had on the payroll before.
It is noted that Hart filed the first unfair labor practice charge here involved
on February 13, 1958, and Brady on February 17, 1958, presumably against Procon
at the same time the charges were filed against the Union.
These unfair labor
practice charges could well explain why Procon changed its hiring policy in Febru-
ary 1958
Because of the repetitive allusions to February 1958 in the above ques-
tioning, the timing of the filing of the labor practice charges, and the previous
testimony above quoted wherein McReynolds stated that before September 1958
he would sometimes call the people, it is found, despite other conflicting testimony
of McReynolds, Procon's practice of using the union hall as the exclusive source
of labor supply ended sometime during February 1958.
The Question of an Illegal-Hiring Arrangement on Job 1405
The record reflects that at least some employees on jobs 1269 and 1270 expressed
an interest in being transferred to job 1405 which started on February 7, 1958, by
making such requests to McReynolds.
Homer Pierce, the main union business representative, met with McReynolds in
December of 1957 and requested that, because many operating engineers were
unemployed, 1405 be made a new job so that the employees could be rotated and
new operating engineers be employed on 1405.
The exact testimony of McReynolds with respect to this conversation is important
because it is susceptible of at least three interpretations:
(By Mr. WHITTAKER) :
Q. What did Mr. Pierce say about 1405?
A. Well, he wanted us to hire new people for 1405, or otherwise, hire them
out of the hall; he said possibly we might get some of the same people back
if they was on the list, that way we might get some of the same people back
that was working for us at present.
"Otherwise" as used by McReynolds might reflect his conclusion that Pierce
was giving him an ultimatum on using the hiring hall with respect to 1405, or it
might reflect Pierce's statement of what the practice was with respect to other
employers.
That is, the request to rotate was aimed at getting new Union operating
engineers for 1405 whether through the hall or "otherwise " Because the record is
devoid of any request or strikes aimed at securing an exclusive hiring hall, the
above statement appears more compatible with the conclusion either that it expressed
an assumption of McReynolds rather than a statement by Pierce, or it expressed a
desire by Pierce to get new Union operating engineers on 1405 whether or not
obtained through the union hall rather than as a threat designed to force Procon
to use the union hall exclusively, and it is so found.
The subsequent conduct of McReynolds also suggests that Pierce did not make
a threat in connection with his request for rotation
McReynolds called his home
office in Illinois and testified:
They told me they couldnt see anything wrong with the idea and we at that
time thought the 1269 would be nearer finished before 1405 started.
And
unfortunately, we had bad weather and delayed the completion of 1269.
And
there was an overlapping of operating engineers .
We still had operating engi-
neers on 1269 when 1405 started.
950
DECISIONS OF NATIONAL LABOR RELATIONS BOARD
On January 30, 1958, McReynolds told Pierce that he had decided to hire a
new crew for 1405, more than a month after the initial request without any evidence
,of any union activity suggesting threatened economic coercion in the interim.
On February 7, three operating engineers were employed to work on job 1405.
Later in February there was a strike of an hour or so occasioned by operating
engineers from 1269 and 1270 being assigned to work on 1405.
After this strike,
MMcReynolds gave orders to Master Mechanic Smith not to send operators from
1269 or 1270 to 1405. The record is clear that this strike was sanctioned by the
'nion to prevent employees from 1269 and 1270 working on 1405.4
The two conversations between Pierce and McReynolds establish that an arrange-
ment eventuated from such conversations designed to get union operating engineers
to work on 1405 who were out of work. This arrangement is a violation of
8(b) (1) (A) and (2) of the Act as it was union conduct affecting tenure of employ-
ment which at least would tend to encourage union membership on the part of
employees hired on 1405.
As previously indicated, the evidence does not warrant a finding that Procon was
agreeing to use the union hiring hall exclusively, but it is found that Procon agreed
in January 1958 to staff 1405 with union operators, resulting in discrimination with
respect ,to tenure of employment of some of Procon's employees on 1269 and 1270.
The employees who were adversely affected by this arrangement will be included
below in an examination of the facts relating to the termination of each of the
Charging Parties.
Since Procon had been employing union operators prior to this
agreement it may be reasonably inferred that it continued to do so with respect to
job 1405. It is also reasonable to infer .that the reason for Procon's employment of
union operators rather than using the U.S. Employment Service to secure nonunion
operators was because of a preference by Procon to have all union employees on its
construction projects.5
This preference can logically be attributed to the fact that
the various crafts in .the construction industryare usually organized and employment
of nonunion and union employees in one craft would be a potential source of discord
among the employees of that craft as well as among the employees of other crafts,
with a potential of adversely affecting .the progress of the construction project.
The Question of Discrimination Because of Union Activities
The contention of the General Counsel that the employees on 1269 and 1270
were caused to be terminated because of their past union activities is not supported
by the evidence.
The General Counsel relies on two strikes unrelated to any issues
in this case in the fall of 1957 by some of Procon's operating engineers to establish
discriminatory motivation against the Charging Parties by the Union.
During the
course of these strikes, according to some versions of the testimony, the union repre-
sentatives in Beaumont were displeased at the lack of promptness with which some
of the operating engineers left their jobs and there were comments attributed to a
union representative evidencing displeasure with five of the employees who were
slow in walking off.
When jobs 1269 and 1270 were being diminished in the
number of employees, many of the people who did not participate in these strikes
were being laid off along with the people that did.
This evidence is too remote and
conjectural on which to base a finding that the Charging Parties, many of whom did
not participate in the 1957 strikes, were discriminated against because of the conduct
of some of them during these strikes.
The General Counsel also uses as a basis for establishing discriminatory moti-
vation on the part of the Union a talk given by Homer Pierce, the main union busi-
ness representative, on one noon occasion at the Procon construction site in December
1957.
The testimony of various witnesses may be summarized by saying that Pierce
expressed his disapproval of what was going on at the Procon site in that the com-
plaints which he had heard directed against him were hurting the Union. It is
probable that the dissatisfaction among the operating engineers on 1269 and 1270
stemmed from the fact that Archie Smith, one of the Charging Parties, was made
master mechanic on those jobs rather than one B. A. Scott.6 Since several of the
4 The uncontroverted testimony which attributes to Union Representative Musgrove the
statement that 1405 would be shut down if operators from 1209 and 1270 worked on 1405
establishes that the short strike in February 1958 was sanctioned by the local union.
5 McReynolds testified that he was aware that nonunion operators could be obtained
through the U.S. Employment Service but he did not utilize it.
6 McReynolds testified that the operating engineers were talking about quitting when
Smith was made a master mechanic instead of Scott in 1957.
LOCAL 450, INT'L UNION OF OPERATING ENGINEERS
951
Charging Parties at that meeting were not involved in either of the 1957 strikes, the
remote inference claimed by. the General Counsel is nonexistent as establishing union
reprisal for concerted employee activity.
The testimony of the Charging Parties also
completely fails to establish animus by Pierce as a reason for their termination.
The
rotation arrangement of employees provides the only unlawful basis for the termi-
nation of some of the employees, and it is so found.
The Question of Discrimination With Respect to Each Charging Party
Before discussing the individual cases, there are common factors which will apply
to all of the Charging Parties.
McReynolds' testimony makes it clear that absent any arrangement between Procon
and the Union the whole complement of the operating engineers on 1269 and 1270
would not have been used on 1405, but that some of them would have been used if
possible.
It is noted that the Charging Parties were terminated on various dates be-
tween January 8 and April 24, 1958. Job 1405 did not commence until February
7, 1958, as far as the records of Procon were concerned-each job had its own bank
account, badge numbers, and accounting.?
The record also reflects that 1405 grad-
ually expanded until about July of 1958, when all production was shut down for
about 3 months by a carpenters' strike.
The General Counsel has the burden of proving which of the Charging Parties
were terminated because of union action in initiating the rotation policy and which
employees were refused reinstatement because of this rotation practice.
All of the Charging Parties were long-time members of Local 450 and were still
dues-paying members of Local 450 in April 1959 despite the fact that they were re-
employed by Procon in October and November of 1958 after the National Labor Re-
lations Board entered into a settlement agreement with Procon.
The record demonstrates that it was a common practice among the operating
engineers to be laid off a job when the work for their particular equipment was not
required.
The record does not definitely answer whether Procon after February 1958 ob-
tained union members for 1405, although because of the past practice of Procon in
hiring union operators it will be assumed that Procon called for employees at their
home who were members of the Union.
After the termination of the Charging Parties the record reflects that none of them
requested the Union or Procon that they be employed on job 1405.
The testimony
of McReynolds indicates that after February of 1958 he was calling some people
directly rather than through the union hall.
There is no probative evidence that
Procon would have called any of the Charging Parties to work on 1405, absent the
unlawful rotation policy.8 It is evident that when a man finished on 1269 or 1270
he would have been laid off unless there was work available on 1405 at that time.
The individual cases of the Charging Parties will be discussed separately.
L. C. Hendrix
Hendrix started his employment at Procon in April 1957, and was terminated on
or about January 8, 1958.
The following illustrates that all of the employees at
1269 and 1270 would not have been transferred to 1405. In response to a question
by Mr. Whittaker, counsel for the General Counsel, McReynolds testified as follows:
Q (By Mr. WHITTAKER.) Other than Mr. Pierce wanting to make 1405 a new
job, was there any other reason why you would not have tried to use the crew
of operating engineers you had on 1269 and 1270 on Job 1405?
A. I am sure we would have transferred some of the operating engineers
over there if it had been possible, yes.
'The General Counsel introduced considerable evidence that operating engineers from
1269 and 1270 did preparatory work such as building roads and delivering materials to
the site where the construction labeled as job 1405 was to be accomplished.
This does
not seem to have significance in connection with any issue presented here.
8In addition to the fact that after their respective terminations none of the Charging
Parties asked either Procon or the Union for work at Procon, the record establishes that
all the Charging Parties secured other work either through the Union or by direct appli-
cation.
Consequently, it is left to conjecture as to the availability of the
Charging
Parties for work on 1405, as well as the determination as to whether Procon would have
called the Charging Parties for work on 1405.
Although Pierce, according to McReynolds,
stated some of the 1269 and 1270 men might be obtained through the Union, the record
does not indicate that Procon ever called the Union to obtain men on 1405 who were
formerly employed on 1269 and 1270.
952
DECISIONS OF NATIONAL LABOR RELATIONS BOARD
The record is clear that Hendrix would not have been one of the individuals trans-
ferred there. Job 1405 had not started and there was no work for him on 1269 and
1270 or on 1405.
McReynolds was specific in stating that the termination of Hendrix
was in no way caused by the Union.9 It is found that the Union did not cause the
termination or failure to reinstate Hendrix by Procon.
Charles C. Hart
Hart was employed on August or September , 1957, and terminated on February
7, 1958.
His work on 1269 and 1270 was completed and there was no evidence that
there was any work available for him on 1405.
McReynolds testified that he would
not have employed Hart or Brady on 1405, indicating they were not qualified to start
the job, and that the termination of Hart was due solely to lack of work and that
the Union had nothing to do with his termination.
It is found that the Union did not
cause the termination or failure to reinstate Hart by Procon.
Harry R. Brady
Brady was employed in June 1957, and terminated on February 7, 1958.
Mc-
Reynolds testified, as in the case of Hart, that Brady was laid off because there was
no more work for him on 1269 or 1270, and his termination was caused solely because
of lack of work. Because of this, it is found that the Union did not cause Procon to
terminate Brady or fail to reinstate him.io
Earl C. Stirling
Stirling started working for Procon in January 1957, and was terminated on Feb-
ruary 12, 1958.
He was appointed union steward sometime after his employment.
The circumstances of Stirling's termination are distinct from the other Charging
Parties.
Stirling's equipment was sent to 1405 and he was informed by Master Me-
chanic Smith that he could continue working on some other equipment on 1269 and
1270.
Stirling stated that he would not want to work under these circumstances.
McReynolds testified about Stirling's conversation with him which was undenied
and is credited and which indicated that Stirling's rig was going to be used and the fair
inference was that it was going to be used on 1405 with another operator. In view
of the custom among the operating engineers to continue with the rig or piece of
equipment that they were using, this incident involving Stirling must be regarded as
affecting his tenure of employment, as the record supports a finding that Stirling would
probably have worked longer on 1405 than on 1269 and 1270. Consequently, it is
found that the arrangement between the Union and Procon adversely affected the
tenure of Stirling's employment with Procon and was a violation of Section 8(b) (2)
of the Act, thereby causing Procon to violate Section 8(a)(3) of the Act.11
Archie B. Smith
Smith was employed by Procon in April 1957, and terminated February 12, 1958.
Smith was the master mechanic and did not employ operating engineers but when
instructed to lay off operating engineers would select the individuals pursuant to
instructions from his superiors.
McReynolds testified that Smith was fired on February 12, 1958, because of a
delay in reporting back from the doctor.
He also admitted that he was quite put out
with Smith on this date and that this was the reason for his discharge even though
9 McReynolds, a witness called by the General Counsel and the superintendent of con-
struction for Procon, was uncontradicted in his testimony and it is credited wherever
quoted
The conflict in his testimony as to whether Procon stopped using the union
hiring hall in February or September 1958 presents the only credibility resolution, which
was made above
10 McReynolds, as a witness for the General Counsel, had testified that he was dis-
pleased with the oilers on 1269 and 1270
The record reflects that an oiler was hired
just before Brady's termination.
Although Brady was an oiler, the credited testimony
of McReynolds precludes a finding that his termination was caused by the rotation
arrangement
II Whether or not there was any economic loss to Stirling caused by the Union's viola-
tion of the Act must be determined in a compliance conference or proceeding.
LOCAL 450, INT'L UNION OF OPERATING ENGINEERS
953
he was the master mechanic and the master mechanic is ordinarily the last one to be
terminated on any job.
The General Counsel offered evidence that Smith was currently in the employ of
Procon as a master mechanic following his employment in October 1958, as a result
of settlement between Procon and the National Labor Relations Board. In view of
McReynolds' credited testimony , it is found that the Union had nothing to do with
the termination of Smith nor did it prevent his reinstatement between February 12,
1958, and the date he was recalled by Procon .
In view of this finding it is imma-
terial whether Smith was a supervisor within the meaning of the Act.
V. E. Cassel
Cassel was employed by Procon on February 4, 1958 , and terminated on February
15, 1958.
As far as the record indicates, Cassel was terminated because of lack of
work on 1269 and 1270 , and he stated that there were no jobs available on 1405,
and it is so found .
The General Counsel in connection with Cassel has introduced
no evidence which would suggest that he would have been recalled by Procon prior
to his employment in October 1958, following a National Labor Relations Board
settlement with Procon .
It is found that the Union did not cause Procon to termi-
nate Cassel or to refuse to reinstate him.
Billy F. Wolaver
Wolaver was employed at Procon in April of 1957, and terminated on March 25,
1958.
With respect to Wolaver , it is found that the General Counsel has failed to
offer proof upon which a finding could be made that Wolaver would have been
employed on 1405 absent any agreement between the Union and Procon to make
1405 a new job.
There is nothing in the record that would suggest that Wolaver
would be recalled rather than any other operating engineer between the date of his
termination and when he returned to work for Procon in October 1958. It is found
that the Union did not cause Procon to terminate Wolaver or fail to reinstate him.
John M. Phelps
Phelps was employed by Procon in April of 1957, and terminated on March 24,
1958.
The evidence fails to establish that on the date of his termination there was
employment for Phelps on 1405.
Absent such proof there can be no finding that
the Union caused Procon to fail to transfer Phelps to 1405. It is found that the
Union did not cause Procon to terminate Phelps or fail to reinstate him.
T. H. McNeil
McNeil was employed by Procon in July 1957, and terminated on April 4, 1958.
McNeil was taken off a winch truck that was assigned to 1405.
As in the case of
Stirling, it is found that this establishes that the Union adversely affected McNeil's
tenure of employment with Procon and that the Union violated Section 8 (b) (2) of
the Act with respect to McNeil's termination , and thereby caused Procon to violate
Section 8 (a) (3) of the Act.
Mert Serratt
Serratt was employed January 7 , 1958, and terminated April 24, 1958.
There is
no evidence that Serratt had work available for him on 1405 at the time be was
terminated .
Consequently , it cannot be assumed that the termination of Serratt was
caused by any arrangement between the Union and Procon.
It is found that the
Union did not cause Procon to terminate Serratt or fail to reinstate him.
Summary of Findings
In view of the above, it is found that Stirling and McNeil were the only Charging
Parties whose employment was unlawfully affected as a consequence of the Union's
request for rotation of employees.
It is also found that the rotation arrangement and the strike in support of it con-
stituted violations of Section 8(b) (1) (A) and (2 ) of the Act, causing Procon to
violate Section 8 (a) (3) of the Act.
V
954
DECISIONS OF NATIONAL LABOR RELATIONS BOARD
IV. THE EFFECT OF THE UNFAIR LABOR PRACTICES UPON COMMERCE
The activities of the Union described in section III, occurring in connection with
the operations of Procon set forth in section I, 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 obstructing commerce and the free flow thereof.
V. THE REMEDY
The appropriate remedy to be recommended in this case with respect to Stirling
and McNeil, and the Union's action in causing violations of the Act with respect
to them has clear guidelines set by the Board.
However, the question as to whether this is an appropriate case to order the Union
to refund moneys to Procon's employees presents a more complex problem.
This
entails a consideration of the remedy first prescribed by the Board in the Brown-Olds
case.12
This remedy has been considered again in the Nassau Contractors' case.13
In this
case the Board stated:
In our opinion, the existence of an unlawful contract is sufficient in and of
itself to establish the element of coercion in the payment of moneys by em-
ployees pursuant to the requirements of such a contract.
Accordingly, the above
remedy is applicable to all closed-shop and exclusive hiring hall agreements,
which do not provide the safeguards set forth in the Mountain Pacific decision,
119 NLRB 883, 893, whether or not proof of actual exaction of payments is
established.
It will be assumed that this record warrants a finding in connection with the rotating
arrangement that Procon and the Union entered into an agreement to employ only
union members on 1405.
Since the agreement existed only with respect to job 1405, and two employees
on 1269 and 1270 were terminated because of this agreement, it appears obvious
that the employees on 1269 and 1270 were not coerced by the Union into paying
dues.
The Brown-Olds case, supra, and its sequels, impose the Brown-Olds remedy
because the contract or hiring arrangement is regarded as coercive in requiring
union members to obtain or retain employment by paying moneys to a union.
Stated another way, coercion in paying moneys to a union is an essential predicate
for imposition of the Brown-Olds remedy.
I do not read the Nassau Contractors' case, supra, as calling for the Brown-Olds
remedy where the facts of a particular case negate convincingly the element of
coercion in paying moneys to a union.
Here the Union attempted to obtain work for members "loafing around the hall,"
by requesting a rotation of employees on 1405. Since the reasonable inference is
that the union members for whom work was sought were already paying dues, it
is difficult to see how seeking to obtain work for them had any coercive effect with
respect to their payment of moneys to the Union.
The duration of the hiring arrangement on 1405 is not established by the record,
although ,it existed in at least part of February 1958.
The testimony of the Charging
Parties in connection with the Union's meeting in February demonstrated that the
agreement as to rotation may have been suspected but was not known by the union
membership.
This seems significantly different from the import of the facts in the
Nassau Contractors' case where the union's contumacious persistance in enforcing
a closed-shop contract in defiance of the Board and a Federal court would spell out
to its members the necessity of paying moneys to the union to gain or retain
employment.
In the case at bar the record is replete with evidence that union operating engi-
neers obtained approximately half their employment through the Union and half by
direct application.
As previously indicated, the testimony of the General Counsel's
witnesses preponderate in establishing that dues were paid by union members as a
matter of choice and not of coercion.
'2 United Association of Journeymen & Apprentices of Plumbing & Pipe fitting Industry
of the United States and Canada, Local 231, AFL-CIO (J. S. Brown-E. F Olds Plumb-
ing & Heating Corporation), 115 NLRB 594.
's Local 138, International Union of Operating Engineers, AFL-CIO, et at. (Nassau
and Suffolk Contractors' Association, Inc., et al. ), 123 NLRB 1393.
LOCAL 450, INT'L UNION OF OPERATING ENGINEERS
955
The Nassau Contractors' case in imposing the Brown-Olds remedy finds casual
connection, i.e., coercion in the payment of moneys between the unfair labor practice
and the payment of moneys to the Union.
This record does not provide such a
connection.
The Trial Examiner is persuaded that the imposition of the Brown-Olds remedy
with respect to employees on 1405 is not indicated by Board precedents. Such a
recommended order would be unrelated to the remedial function of the Board in
rectifying and preventing unfair labor practices.
In N.L.R.B. v. Express Publishing Company, 312 U.S. 426, which analogized the
function of the Board to that of a court of equity the Supreme Court stated at 436:
. . . The breadth of the order, like the injunction of a court, must depend
upon the circumstances of each case, the purpose being to prevent violations,
the threat of which in the future is indicated because of their similarity or
relation to those unlawful acts which the Board has found to have been com-
mitted by the employer in the past.
The sense of the Express Publishing case as projected into a consideration of the
case at bar would prevent an application of Brown-Olds remedy because the record
does not demonstrate any relationship between the payment of moneys to the Union
and the unfair labor practices and an order requiring such, would be punitive rather
than remedial.
The total effect of the rotation arrangement was to cause discrimination against
Stirling and McNeil on jobs 1269 and 1270 and by that fact to permit two employees,
presumably union members, to work on 1405 instead of them.
This single episode by which the Trial Examiner finds the Union has violated the
Act, even though initiated for a beneficient purpose requires the application of the
Board's remedial processes.
However, for the reasons stated the Brown-Olds remedy
is not indicated.
It will be recommended that Stirling and McNeil be made whole for any loss of
wages suffered, according to the usual Board formula 14 and that notices be posted as
set out in the Appendix. Since Stirling and McNeil were both reemployed by Procon
and since the record reflects that job 1405 has been completed, it would be useless
to require the Union to notify Procon of its nonopposition to having Stirling and
McNeil employed on job 1405 and it will not be recommended in this case. It will
be recommended that the Union notify, in the manner set forth below, its members
that employment by Procon or the lack of it will not be affected by union
membership.
CONCLUSIONS OF LAW
1. Procon, a corporation, is engaged in commerce within the meaning of Section
2(6) and (7) of the Act.
2. Local Union No. 450, International Union of Operating Engineers, AFL-CIO,
is a labor organization within the meaning of Section 2(5) of the Act.
3. By causing or attempting to cause Procon to discriminate against Earl C.
Stirling and T. H. McNeil in violation of Section 8(a)(3) of the Act, the Respond-
ents have engaged in unfair labor practices within the meaning of Section 8(b) (2)
of the Act.
4. The arrangement entered into between Procon and the Union and the strike
of the Union to enforce this arrangement, was a violation of Section 8(b)(1) (a)
and 8(b)(2) of the Act, since the arrangement to rotate employees with respect to
job 1405 of Procon initiated by the Union, would have a tendency to encourage or
discourage union membership.
5. By the aforementioned acts the Union has restrained and coerced the em-
ployees of Procon in the exercise of their rights guaranteed by Section 7 of the Act
and has thereby engaged in and is engaging in unfair labor practices within of
Section 8 (b) (1) (a) of the Act.
6. The aforesaid unfair labor practices are unfair labor practices affecting com-
merce within the meaning of Section 2(6) and (7) of the Act.
7. Except as herein indicated the allegations of the complaint charging unfair
labor practices have not been established.
[Recommendations omitted from publication.]
14P. W. Woolworth Company, 90 NLRB 289.