164 NLRB 23
Associated Musicians, Local 802
ASSOCIATED MUSICIANS, LOCAL 802
23
Associated Musicians of Greater New York,
Local 802 ,
AFM
and Ben Cutler. Case
2-CB-4296-2
April 17,1967
DECISION AND ORDER
BY CHAIRMAN MCCULLOCH AND MEMBERS FANNING
AND ZAGORIA
On December 6, 1966, Trial Examiner Paul
Bisgyer issued his Decision in the above-entitled
proceeding, finding the Respondent had not engaged
in the unfair labor practices alleged in the complaint,
and recommending that the complaint be dismissed
in its entirety, as set forth in the attached Trial
Examiner's
Decision.
Thereafter, the
General
Counsel and the Charging Party filed exceptions to
the Trial Examiner's Decision and supporting briefs,
and the Respondent filed a brief in support of the
Trial Examiner's Decision.
Pursuant to the provisions of Section 3(b) of the
National Labor Relations Act, as amended, the
National Labor Relations Board has delegated its
powers in connection with this case to a three-
member panel.
The Board has reviewed the rulings of the Trial
Examiner made at the hearing and finds that no
prejudicial error was committed. The rulings are
hereby affirmed. The Board has considered the Trial
Examiner's Decision, the exceptions' and briefs, and
the entire record in this proceeding, and hereby
adopts
the
findings,
conclusions,
and
recommendations of the Trial Examiner.
ORDER
Pursuant to Section 10(c) of the National Labor
Relations Act, as amended, the National Labor
Relations Board hereby orders that the complaint
be, and it hereby is, dismissed.
September 8 and 9, 1966, in New York, New York, on the
complaint of the General Counsel' and the answer of
Associated Musicians of Greater New York, Local 802,
AFM, herein called the Respondent or Union. The issues
formulated by the pleadings and litigated at the hearing
are whether the Respondent, as the exclusive bargaining
representative of the musicians employed as sidemen for
single engagements by the Charging Party, Ben Cutler,
violated Section 8(b)(3) of the National Labor Relations
Act, as amended,2 by unilaterally raising minimum wage
scales for these employees and establishing a welfare fund
plan requiring employer contributions of $1 per employee
per
engagement,
without first affording Cutler an
opportunity to bargain with respect to these matters, and
by threatening Cutler's employees who were assigned to
perform at a social function with union discipline if they
performed on terms less than those prescribed above. At
the close of the hearing the parties waived oral argument.
Thereafter, briefs were filed by the General Counsel and
the Respondent.3
Upon the entire record, and from my observation of the
demeanor of the witnesses, and with due consideration
being given to the arguments advanced by the parties, I
make the following:
FINDINGS AND CONCLUSIONS
1.
THE BUSINESS OF CUTLER
Ben Cutler, an individual proprietor doing business in
New York City under the trade name and style of Ben
Cutler Orchestras, is engaged in providing orchestras,
bands,
musicians,
and related services for single
engagements to night clubs, country clubs, restaurants,
hotels,
and private individuals.
During 1965 Cutler
received
for
his
single
engagement
services"
approximately $172,650, of which more than $50,000 was
derived from engagements performed outside New York
State, and approximately $72,000 was derived from single
engagement performances for nonretail clients such as
hotels, country clubs, and private schools.
For the purposes of this case, the Respondent con-
cedes, and I find, that Cutler is an employer engaged
in commerce within the meaning of Section 2(6) and (7)
of the Act. I further find that it will effectuate the policies
of the Act for the Board to assert jurisdiction herein.
i We do not find adequate support in the record for finding, as
the Charging Party requests, that the Respondent, by its overall
conduct failed to bargain in good faith. We also note, however,
that the complaint herein alleges that the Respondent violated
Sec 8(b)(3), not by its bargaining in general, but by specific acts
The Rangaire Corporation, 157 NLRB 682, fn 12
TRIAL EXAMINER'S DECISION
STATEMENT OF THE CASE
PAUL BISGYER , Trial Examiner: This proceeding, with
all
parties
represented,
was heard before me on
' The original charge was filed on October 1, 1965, a copy of
which was served on the Respondent by registered mail on
October 4, 1965 An amended charge was thereafter filed on
November 3, 1965, and a copy was similarly served on the
Respondent the next day
2 Sec. 8(b)(3) of the Act makes it an unfair labor practice for a
labor organization or its agents "to refuse to bargain collectively
with an employer provided it is the representative of his
employees subject to the provisions of section 9(a) " The latter
II.
THE LABOR ORGANIZATION INVOLVED
The Respondent is a labor organization within the
meaning of Section 2(5) of the Act.
III.
THE ALLEGED UNFAIR LABOR PRACTICES
This is one of a long series of cases instituted by
orchestra leaders, individually and jointly, in the courts
and before the Board to test the lawfulness of certain of
the Respondent's activities and conduct. As indicated
above, the present case is concerned solely with the
section states that "[r]epresentatives designated or selected for
the purposes of collective bargaining by the majority of the
employees in a unit appropriate for such purposes, shall be the
exclusive representative of all the employees in such unit for the
purposes of collective bargaining in respect to rates of pay, wages,
hours of employment, or other conditions of employment "
9 In view of my disposition of this case, I deny the Respondent's
motion for leave to file a supplemental brief
" These were principally one-night performances
164 NLRB No. 8
24
DECISIONS OF NATIONAL LABOR RELATIONS BOARD
Respondent's alleged failure to discharge its statutory
bargaining obligation when, after Cutler's request for
contract negotiations, it unilaterally revised its bylaws to
raise the single engagements wage scales of musicians,
commonly known in the trade as sidemen, and to provide
for single engagement welfare fund coverage for these
employees. Not involved in this case, as the General
Counsel made perfectly clear at the hearing and in the
complaint, is the Respondent's overall good or bad faith in
its contract negotiations with Cutler.
A. The Facts
The relevant facts are, for the most part, undisputed and
are as follows:
Cutler is a professional orchestra leader operating
principally in the single-engagement fields Over a period
of a year he employs more than 200 different sidemen to
play at some 400 functions which he books. About 26 of
these sidemen work regularly for him, performing at an
estimated 50 jobs a year.? Cutler usually conducts his own
orchestra
except that
when he has simultaneous
engagements he employs subleaders to act in that
capacity." All the musicians employed by him for single
engagements
within
the
Respondent's
territorial
jurisdiction, which embraces New York City and Nassau
and Suffolk Counties, are members of that organization, as
is Cutler. The Respondent's membership consists, among
others, of sidemen, orchestra leaders, and subleaders and
well exceeds 10,000.9 A relatively small number of
members are professional orchestra leaders, although
sidemen may act in that capacity once or a few times a
year when they obtain their own engagements.10 The
Respondent readily conceded at the hearing that it
"represent[s] the sidemen who have worked over the
years for Mr. Cutler for the purposes of protecting them
with respect to their wage scales, hours and conditions of
employment."
Until recently the Respondent admittedly has refused to
recognize orchestra leaders as employers of performing
musicians in the single-engagement field. In its answer to
the complaint, the Respondent states that:
throughout its
existence,
Local 802
[the
Respondent] regarded the purchaser of the musical
services of orchestras as the employer and the
sidemen and orchestra leader as employees, and that
this had been the custom and accepted practice in the
musical industry throughout the country; that
Local 802 has not bargained collectively with the
purchasers of musical services or with orchestra
leaders on single engagements ... ; that with regard
to single engagements, Local 802, acting through its
membership or its Executive Board pursuant to its
By-Laws, has voted the minimum scales and other
terms and conditions below which its members will
not offer their services on single engagements . . . .11
On August 6, 1965,12 Cutler sent the Respondent a
letter,
requesting 'a date to commence collective-
bargaining
negotiations
for
a
contract covering his
regularly employed sidemen whose names he listed. On
October 1, the Respondent replied that it was prepared to
bargain with him and suggested that he submit contract
proposals to facilitate the negotiations before scheduling a
meeting. In response, Cutler on October 26 delivered,to
the Respondent his written proposals consisting of 40
general subjects to serve as a basis of discussion.
In the meantime, in the early part of October, the
Respondent's executive board, pursuant to authority,
increased by $1.50 per hour the minimum wage scales
prescribed in article X of the Respondent's bylaws for
sidemen
performing
on
single
engagements
and
inaugurated a welfare fund plan for these musicians
supported by employer contributions of $1 per employee
per engagement.13 These changes were announced in the
October issue of Allegro, the Union's official publication,
and were made effective on and after November 15. Under
its bylaws,'" members are subject to disciplinary action if
they fail to observe the new wage scales and render
services below these requirements.
The foregoing were the first wage changes made in the
single-engagement field since the previous scales were
voted in 1959, effective June 15, 1960. Although several
years thereafter members had introduced resolutions to
revise the wage scales upwards, as provided in the
Respondent's bylaws,', the executive board deferred
acting favorably thereon, on advice of counsel, because of
the pendency of a certain suit instituted in the Federal
district
court
by a number of orchestra leaders.16
Following the dismissal of this suit on May 17, 1965, the
executive board proceeded to review the wage scales and
concluded that various factors, including the rise in the
cost of living and the fees orchestra leaders were charging
the purchasers of music, warranted the changes which are
5 Article X of the Respondent 's bylaws defines engagement of
less than 1 week as single engagements
(sec 1 ) and those of a
week or longer as steady engagements (sec 2)
6 It appears that Cutler also has some steady engagements
which are not here involved
' Occasionally these
musicians
may also work for other
orchestra leaders
Four of them have at times booked single
engagements of their own at which affairs they acted as orchestra
leaders
" In the course of a year , Cutler uses about 50 subleaders who
on other occasions perform as sidemen
0 In Carroll v American Federation ofMusicians of the United
States and Canada , 241 F Supp . 865, 870 (D C S N Y -),-the court
made a factual finding that the Respondent had over 30.000
members
who perform
musical
services
as
conductors,
instrumentalists , arrangers , and copyists
10 Cutler estimated that there are approximately 500 members
who are full-time orchestra leaders
Max L Arons, president of
the Respondent , testified that there are 8 ,000 to 10,000 musicians
performing as orchestra leaders , most of whom act in that
capacity once or a few times a year In Cutler v American
Federation of Musicians of the United States and Canada, 316
F 2d 546, 547 (C A 2), the court noted that 2 percent of the
musicians in the Union always act as orchestra leaders and 98
percent do so on some occasions , and play as sidemen on others
i i The General Counsel has apparently accepted this statement
of the Respondent's historical policy in the single-engagement
field It appears that in the steady- engagement field, however, the
Respondent has bargained collectively with purchasers of musical
services. See Carroll v American Federation of Musicians, supra,
883
12 All dates refer to 1965 unless otherwise specified
i3 Before the bylaws were thus amended welfare fund benefits
and contributions were limited to the steady-engagement field.
14 Article IV, secs 1(k), (a), (o), (p), (s), and (Wand article IX
is Article VIII, secs 2 and 3
i6 Carroll v American Federation of Musicians, supra. This
was a suit brought against the Respondent and its parent body for
allegedly violating the Federal antitrust laws or common law
restraint
of trade by
reason, among others, of the unions'
practices of fixing minimum wage scales of sidemen and the
minimum fees leaders may charge purchasers of the music Judge
Levet dismissed the complaint on the ground that the unions'
conduct fell within the definition of labor dispute in Norris-La
Guardia Act and was exempted from the antitrust laws.
ASSOCIATED MUSICIANS, LOCAL 802
25
the subject of this proceeding. However, because of the
intervening death of the then union president and the
resultant intraunion controversy over successorship, final
action was not taken until early October, as stated above.
On November 22, the parties held their first and only
meeting to consider Cutler's proposals which consisted of
40 items whose details were to be worked out later during
negotiations
and embodied in a collective-bargaining
contract.
Among others, the proposals provided the
following:
(4) Agreement upon a suitable schedule of wage
scales and overtime rates.
(11) Provision for a suitable, reasonable and lawful
welfare program for protection of Cutler's employees.
(12) Stipulations
which exempt Cutler as an
orchestra-leader-employer from any Union by-law,
regulation or ordinance with respect (i) to the prices
(whether minimum, maximum or intermediate) which
Cutler charges or will charge to his clients and (ii) to
his minimum profits or income as orchestra-leader-'
employer.
Concerning the wage scales, Cutler made it quite clear
that he desired bargaining from "scratch" as if the new
scales
had never been promulgated, whereas the
Respondent suggested, as its counterproposal, the
acceptance of the new rates or alternatively higher rates
in view of Cutler's ability to command better prices for his
engagements than other orchestra leaders. As for the
welfare program, the Union, of course, accepted in
principle Cutler's proposal for the establishment of a
welfare fund for his sidemen but urged adoption of its
recently instituted plan. On the other hand, if Cutler
insisted that a separate welfare fund be created for his
sidemen alone, the Respondent took the position that
provision should be made for larger contributions by
Cutler.
As these discussions were essentially exploratory in
nature and dealt mainly in generalities, the meeting
concluded with the understanding that Cutler's attorney
would submit to the Respondent specific contract
proposals
following the receipt of which another
conference
would be arranged. However, no other
proposals were forthcoming from Cutler and no further
bargaining sessions were held." As stated above, the
General Counsel does not challenge the Respondent's
good faith at the aborted bargaining negotiations.
By letter dated February 4, 1966, the Respondent's
attorney
notified
Cutler
that
the
Respondent
"cannot-accept
or
approve
any
notices
of
engagements-[he had] filed since December 8, 1965,
which do not provide for the new Wage Scales and the
Welfare Fund Contributions." The letter also stated that
this action was in conformity with a statement the writer
had made to the court in a lawsuit not identified'' that,
unless the orchestra leaders paid its members the new
wage scales and made the welfare fund contributions, it
would instruct its members not to work for them.
it The foregoing findings are based on a synthesis of the
credible testimony adduced at the hearing I credit the denial of
Ashe, an attorney long experienced in the labor relations field and
a spokesman for the Respondent at the negotiating meeting, that
at any time did he or any union representative exclude any
subject, particularly wage rates and the welfare plan, from the
bargaining table or indicate an inability to bargain on those
subjects because they were covered by the Respondents bylaws
It is noted that, notwithstanding the existence of bylaws affecting
On April 12, 1966, the Respondent returned to Cutler 26
notices of engagement which he had previously forwarded
to it. In its covering letter, the Respondent explained that
it did so because there was not on file a signed agreement
in the form enclosed therein which would give the Union
assurance that he would pay its members the current wage
scales and make the required contributions to the welfare
fund. The letter also pointed out, as the Respondent's
attorney had previously done, that, unless Cutler complied
with those terms, its members would not work on his
engagements.
The form agreement that was enclosed describes itself
as an agreement between the "Leader-Employer" and the
Respondent and contains a preamble which acknowledges
that:
... the Leader-Employer is desirous of employing
members of the Union for musical performances in
the single engagement field, and the Union is willing
to have its members work for the Leader-Employer on
the payment to them of applicable Union wage scales
and the compliance by the Leader-Employer of all
applicable Union rules and regulations, as well as of
the terms set forth below.
Among other things, the agreement proceeds to set forth
the procedures to be followed by the "Leader-Employer"
after he enters into a contract with a client or purchaser of
the music. It also provides that the "Leader-Employer"
warrants that such contract with the client or purchaser of
the music will provide for payment of at least the minimum
wage scales required by article X of the bylaws and the $1
welfare fund contributions. Also enclosed in the letter was
another form entitled "Notice of Engagement Contract"
which prescribes the information an orchestra leader is
required to furnish the Union concerning the engagement
contract
made with the purchaser of the music. In
addition, this form contains substantially the same
commitment by the leader regarding wage scales and
welfare fund contributions as that required of the
"Leader-Employer"
in
the
agreement
previously
described. The Respondent's President Arons testified
that the "Notice of Engagement Contract" is customarily
used by sidemen who occasionally act as leaders on
engagements for which they themselves contract.
On April 16, 1966, Lou Russ, a union delegate, appeared
at Cromwell Center in Staten Island, New York, where
one of Cutler's orchestras was scheduled to perform under
Subleader
Leroy E.
Parkins.
Shortly
before
the
performance was to begin, Russ told Parkins and the
musicians that if they played this engagement they would
be taken before the Union's trial board on charges of
playing below scale and without arrangements being made
for
welfare contributions by the employer. Parkins
thereupon telephoned Cutler and put Russ on the
telephone. In the ensuing conversation, Russ informed
Cutler that, as he had not signed the form agreement
which would assure the Respondent that the current wage
scales would be paid and welfare fund contributions would
be made, the men could not perform. Cutler replied that
terms and conditions of employment in the steady-engagement
field,
the
Respondent
has
negotiated
collective-bargaining
agreements in that area
iN In his brief, the General Counsel identifies this suit as Ames
v Associated Musicians of Greater New Yorb, Local 802 AFM, No
65-3702 (D C S N Y) This is an action brought by orchestra
leaders, including Cutler. in which they c hallenge the Union's
welfare plan and regulations as violative of Sec 302 of the Labor
Management Relations Act
26
DECISIONS OF NATIONAL LABOR RELATIONS BOARD
he would not sign such an agreement and consented to
appear before the Union's executive board the following
Tuesday (April 19).
With this understanding, the
musicians
were
permitted
to
proceed
with
the
engagement.
On Tuesday, Cutler came before the executive board.
After the Cromwell Center episode was related, the
executive board warned Cutler that if he did not sign the
agreement described above, he would be unable to secure
the
services
of
any
musician.
Cutler repeated his
disinclination to do so, referring to his pending NLRB
charges in the instant case. President Arons then
indicated his awareness of five engagements that Cutler
was scheduled to perform the following Friday and
threatened to prevent the musicians from playing them.
Cutler responded that he would report this to the NLRB
Regional Office. As it turned out, the Union did not
interfere with these engagements.
On April 22, 3 days later, the Respondent and Cutler
entered into a written stipulation whereby, in return for
the Respondent's agreement to permit its members to
work for Cutler without being subject to union discipline,
Cutler agreed to deposit in escrow the difference between
the new and old wage scales his musicians would
otherwise receive under the new rates and to make the
welfare fund contributions. It was further stipulated that,
"[s]hould it be held by the courts, or by the N.L.R.B. and
affirmed by the courts, that any of the payments-[were]
illegal," the welfare fund contributions would cease and
the escrow moneys would be returned to Cutler.
B. Contentions of the Parties; Concluding Findings
Section 8(b)(3) of the Act makes it an unfair labor
practice for the employees' bargaining representative to
refuse to bargain collectively with their employer much
the same as its counterpart, Section 8(a)(5), imposes a
correlative
obligation
upon the employer to bargain
collectively with the employee representative. Section 8(d)
defines the phrase "to bargain collectively" as "the
performance of the mutual obligation of the employer and
the representative of the employees to meet at reasonable
times and confer in good faith with respect to wages,
hours, and other terms and conditions of employment
Although the new wage scales and welfare fund
requirements prescribed in the bylaws are applicable to all
of the Respondent's members and orchestra leaders who
perform in the single-engagement field, not alone to Cutler
and his sidemen, the General Counsel strenuously
contends that the Respondent's unilateral action in thus
changing the terms and conditions of employment of
Cutler's sidemen after the latter's request for the initiation
of contract negotiations constituted a refusal to bargain
violative of Section 8(b)(3) of the Act. Analogizing the
statutory obligation of the representative to that of an
employer, the General Counsel argues that, just as an
employer is prohibited from altering the terms and
conditions of employment of his employees without first
affording their representative an opportunity to bargain
over such contemplated changes, as the Supreme Court
held in N.L.R.B. v. Katz,is so is the representative under a
corresponding duty to refrain from taking unilateral action
without offering the employer a similar opportunity to
negotiate. The Respondent, on the other hand, urges with
equal vigor that, absent an existing collective-bargaining
agreement limiting its right, the Act does not bar a union
from withholding the services of its members from an
employer to compel acceptance of the terms under which
its members will work.
Whether a union's unilateral imposition of new terms
and
conditions
of
employment could be treated
analogously to an employer's unilateral action in setting
working conditions as to offend Section 8(b)(3) is a
question the Supreme Court has expressly left open.20
However, assuming that there are circumstances where a
union's unilateral conduct may amount to a breach of its
bargaining duty, I am not convinced that the facts of this
case warrant such a determination, whatever surface
appeal the General Counsel's contention may have.21
Section 7 guarantees to employees the right to engage in
concerted activities for their mutual aid and protection.
Traditionally, labor organizations have served such vital
interests. In furtherance of these interests, it has not been
an uncommon practice for unions to promulgate work
rules designed to advance their members' economic
welfare.
Indeed,
many well-established terms and
conditions of employment, such as minimum wage rates,
the 40-hour week, restrictions on overtime, job referral
systems, and others too numerous to mention, whose
validity is beyond challenge, have had their genesis in
union rules, bylaws, and policies.22
It is not, nor can it seriously be, argued that the bylaws
herein involved, particularly as they relate to minimum
wage scales and a welfare fund program, are per se
unlawful.23 Certainly, these subjects are
matters of
legitimate concern to the Respondent and its members
and, being nondiscriminatory attempts to benefit all the
represented employees and clearly not in conflict with the
purpose and policies of the Act, may appropriately be
included in collective-bargaining
agreements .24
Nor,
under Board precedent' 25 is it beyond the scope of the
Respondent's prerogative in the
management of its
internal affairs to require its members to observe these
11 N.L R B v. Benne Katz d(b(a Williamsburg Steel Products
Co,369 U.S 736
20 N L R.B v Insurance Agents' International Union, AFL-CIO
(Prudential Ins Co.), 361 U.S. 477, 496-497; N L R B v Benne
Katz, supra, 747.
21 If the Respondent still adheres to its position indicated at the
hearing, but which is not apparent from its brief , that it does not
represent Cutler's sidemen for collective -bargaining purposes, I
find such contention wholly without ment The Respondent's
demonstrated interest in the working conditions of Cutler's
musicians , its concession that it represented them for the purpose
of protecting their wage scales, hours, and other terms of
employment, and its participation in contract negotiations with
Cutler plainly reveal that it has been serving in that capacity in its
dealings with Cutler
22 N L R.B v. Furriers Joint Council of New York, 224 F.2d 78,
80(C.A 2)
23 Joliet Contractors Association v N L R B., 202 F.2d 606, 608,
612 (C.A 7), denying petition to review and modify order in 99
NLRB 1391 , 1394, cert . denied 346 U S 824 The court there
pertinently observed that union "by-laws not being illegal per
se,-neither the
Board nor this court could order their
discontinuance "
24 N L R B v News Syndicate Company, Inc , 365 U.S 695
25 Local 248, United Automobile , Aerospace and Agricultural
Implement Workers of America, AFL-CIO (Allis -Chalmers Mfg
Co), 149 NLRB 67, reversed and remanded 358 F 2d 656 (C A. 7),
petition for cert pending U.S. Supreme Court [reversed 388 U.S
175], Local 283 , United Automobile , Aircraft and Agricultural
Implement
Workers of America,
UAW, AFL-CIO ( Wisconsin
Motor Corp.), 145 NLRB 1097
ASSOCIATED MUSICIANS, LOCAL 802
27
rules or else suffer union discipline short of impairing the
offender's job tenure.
To be sure, the Respondent's action in amending its
bylaws to raise the minimum wage scales and inaugurate a
welfare fund without consulting Cutler is in a sense
unilateral action, as is the promulgation of any work rule or
regulation by unassisted unions.26 However, such union
conduct cannot be equated to a unilateral change in
working conditions made by an employer which subverts
the union's exclusive representative status and, as the
Supreme Court held in
N.L.R.B. v.
Katz,27
"is
a
circumvention of the duty to negotiate which frustrates the
objectives of § 8(a)(5) much as does a flat refusal." On the
contrary, as shown above, the Respondent placed its
revised wage scales and its welfare fund on the bargaining
table for acceptance by Cutler, which it was undoubtedly
entitled to do, lust as Cutler was privileged to reject them
and insist on bargaining from "scratch" on specific
proposals he agreed to formulate and submit to the
Respondent but which he failed to do. Moreover, unlike
the employer's unilateral action in the Katz case, the
Respondent's revised wage scales and benefit fund
realistically could not become terms and conditions of
employment in Cutler's business until accepted or
adopted by him. Nor, by the same token, did they
automatically become working conditions simply because
the Respondent offered its members' services on those
terms.28
The court's decision in
Associated
Home
Builders'29 on which the General Counsel relies, does not
hold otherwise and the facts of that case are plainly
distinguishable from those in the present case. There, the
:union, in violation of a collective-bargaining agreement,,
fixed, by internal rule, production ceilings which its
members were not permitted to exceed. The court held
that the union's unilateral modification of the terms of an
existing contract without complying with the requirements
of Section 8(d)30 constituted a breach of the union's
bargaining duty and violated Section 8(b)(3). But this is
quite different from the Respondent's action in the present
case where the parties were not bound to an effective
collective-bargaining contract
which established terms
and conditions of employment and therefore the
restrictions of Section 8(d) are manifestly inapplicable.
The Respondent's right to withhold the services of its
members except on the basis of the new wage scales and
the welfare fund requirements can hardly be questioned.
It is well settled that such withholding of services, like a
strike, is not only an activity protected by the Act,81 but
also is consistent with a desire to reach agreement.
Indeed, the Supreme Court in the Insurance Agents'
case,32 refused to find a union's harassing tactics during
contract negotiations, consisting of unilaterally imposed
working
conditions,
to
be incompatible
with the
performance of its bargaining duty in violation of Section
8(bX3), stating that the "presence of economic weapons in
reserve, and their actual exercise on occasion by the
parties, is part and parcel of the system [of collective
bargaining] that the Wagner and Taft-Hartley Acts have
recognized." By parity of reasoning, the Respondent's
complete withholding of services unless Cutler met its
economic demands cannot be viewed by itself to be
inconsistent
with the performance of its bargaining
obligation. In fact, the Court in the Insurance Agents' case
expressly
approved the correctness of the Board's
concession there (p. 491) "that a `total' strike called by the
union would not have subjected it to sanctions under
§ (b)(3), at least if it were called after the old contract,
with its no-strike clause, had expired." In the subsequent
Katz case,33 where the Court held that an employer's
unilateral
action
constituted
an unlawful refusal to
bargain, the Court expressly noted that its holding was not
in conflict with the exoneration of the union in the
Insurance Agents' cse, because, unlike the employer's
action, the union's conduct did not foreclose genuine
contract negotiations.
As indicated above, the Respondent placed its new
wage rates and welfare plan on the bargaining table as its
proposals and it was only Cutler's failure to pursue
negotiations any further that prevented the Respondent's
good faith from actually being tested. Perhaps it is for this
reason that the General Counsel does not impugn the
Respondent's sincere desire to come to agreement with
Cutler on the only occasion on which they met to negotiate
a contract. In these circumstances, it cannot be assumed,
without more, that the Respondent's promulgation of the
new work standards "inhibit[ed] the actual process of
discussion, or ... reflect[ed] a cast of mind
against
reaching agreement"34 in contravention of the objectives
of the Act. This is especially so because the wage rates
and the welfare program in question were designed to
21 Sec 8(aXl) of the Act , which makes it an unfair labor
practice for an employer "to interfere with, restrain or coerce
employees in the exercise of the rights guaranteed in section 7"
has been construed to prohibit an employer from participating in
the affairs of a labor organization Sec 8(a)(2) also makes it an
unfair labor practice for an employer "to
. interfere with the
administration of any labor organization
21 369 U.S at 743
28 The cases cited by the General Counsel (C
C Conn, Limited
v
N L R B ,
108 F 2d 390 (C.A
7), Honolulu Rapid Transit
Company, Limited,
110
NLRB 1806,
Valley City Furniture
Company, 110 NLRB 1589), do not support his position that the
Respondent's action violated the Act. There, the court and the
Board held that employees engaged in unprotected conduct
rendering them vulnerable to discharge or other disciplpie when,
instead of completely withholding their services by going out on
strike over their demands, they remained at work, but on their
own terms , for which they were paid As the court so aptly noted
in Conn at 397, "[ w] e are unable to accept [the] argument to the
effect that
an employee can be on a strike and at work
simultaneously
We think he must be on the job subject to the
authority and control of the employer , or off the job as a striker, in
support of some grievance " Here, however, the latter approach
was precisely the one pursued by the musicians , through their
representative, in withholding their services unless Cutler agreed
to employ them on their terms
Cf N.L.R.B. v
Washington
Aluminum Co., Inc , 370 US 9
29 Associated Home Builders of the Greater East Bay, Inc v
N L R.B., 352 F.2d 745, 751-755 (C A. 9).
20 Insofar as relevant , Sec. 8(d) provides that "where there is in
effect a collective-bargaining contract covering employees in an
industry affecting commerce, the duty to bargain collectively shall
also mean that no party to such contract shall terminate or modify
such contract , unless the party desiring such termination or
modification" first complies with certain specified conditions
Si Sec. 13 states that "[n]othing in this Act, except as
specifically provided for herein, shall be construed so as to
interfere with or impede or diminish in any way the right to strike,
or to affect the limitations or qualifications on that right."
32 N L.R.B
v
Insurance
Agents'
International
Union
(Prudential Ins. Co.), 361 U.S 477.
31 369 U S 736
34 Id at 747
28
DECISIONS OF NATIONAL LABOR RELATIONS BOARD
advance the economic interests of its entire membership
performing in the single-engagement field,35 of which
Cutler and his sidemen comprised only a small segment,
and were subjects that were under consideration by the
Respondent's
executive
board long before Cutler
requested bargaining negotiations.
In view of the foregoing, I find no compelling reason to
conclude that the Respondent's action in amending its
bylaws to provide higher minimum wage scales and a
welfare fund plan for its member-musicians who perform
in the single-engagement field constituted a per se refusal
who bargain with the Charging Party Cutler concerning
terms and conditions of employment of the latter's
employees within the meaning of Section 8(b)(3) of the Act.
Similarly, I find that the Respondent did not breach its
bargaining obligation by directing Cutler's musicians,
under threat of union discipline, to withhold their services
from
Cutler
unless
he
complied
with
the
new
requirements. Accordingly, I recommend dismissal of the
complaint in its entirety. 36
RECOMMENDED ORDER
Upon the basis of the foregoing findings and upon the
entire record in the case, I recommend that the complaint
issued herein against Associated Musicians of Greater
New York, Local 802, AFM, be dismissed.
as It seems safe to assume that many orchestra leaders who
hire musicians may not even have sufficient business to warrant
the assertion of jurisdiction by the Board.
36 In view of my determination herein, I find it unnecessary to
consider other contentions urged by the Respondent.