165 NLRB 167
Sunshine Biscuits, Inc.
W. P. IHRIE & SONS
167
W. P. Ihrie & Sons, Division of Sunshine
Biscuits,
Inc.
and Local Union No. 68,
American Bakery & Confectionery Workers
International
Union ,
AFL-CIO.
Case
5-CA-3524
May 31,1967
DECISION AND ORDER
On December 23, 1966, Trial Examiner A.
Norman Somers issued his Decision in the above-
entitled
proceeding,
recommending that the
complaint be dismissed, as set forth in the attached
Trial Examiner's Decision. Thereafter, the General
Counsel filed exceptions to the Trial Examiner's
Decision and a supporting brief. The Respondent
filed an answering brief.
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, the briefs, and
the entire record in the case, and finds merit in the
General Counsel's exceptions.
For the reasons detailed in his Decision, the Trial
Examiner viewed this proceeding as presenting an
issue involving the interpretation and application of
a dues-checkoff provision contained in the existing
contract between the Respondent and the Union,
and he regarded the entire matter as involving
"something less than `basic' to the collective-
bargaining relationship." Such a case, he believes,
lends itself
more
properly
"to the kind of
particularized and individual adjustments which an
arbitrator is in a position to make by applying his
sound judgment and sense of equity in interpreting
the contract" rather than to the unfair labor practice
procedures
of the Act. The Trial Examiner
accordingly concluded that the complaint should be
dismissed and that it was unnecessary to determine
the merits of the complaint's allegation that the
Respondent violated Section 8(a)(5) and (1) of the Act
by repudiating the checkoff provision of its contract
with the Union. We do not accept his view of the
case.
As appears hereinafter, the record supports the
complaint's charge that Respondent repudiated its
checkoff obligation under the contract. By this
action,
Respondent
unilaterally
changed
a
contractual term or condition of employment,
modifying its contract with the Union in a significant
respect; its action will have a continuing impact on
its relationship with the Union and the affected
employees.
We thus have before us what is
essentially a matter of statutory violation (under
Section 8(d) and 8(a)(5) of the Act), rather than of
contract interpretation. The issue presented as a
result of Respondent's conduct is the effect under
the Act of an affirmative deauthorization vote upon a
contractual dues-checkoff obligation of employer; it
relates directly to the employer's statutory duty and
is one which the Board is specially competent to
resolve. We note, moreover, that neither party has
even sought to invoke the contract's grievance-
arbitration procedure herein. As the circumstances
do not persuade us that we should, in the exercise of
our discretion, defer to any other forum in this
matter, we shall proceed to a consideration of the
real question presented by this case.'
In the deauthorization election held on May 26,
1966, the employees voted, 20 to 9, in favor of
withdrawing from the Union the contractual
authority to require membership in it as a condition
of employment. The Regional Director certified the
results of the election on June 6. On June 8, the
Respondent sent a letter to the Union in which it
stated that it deemed the vote to have eliminated
from the contract both the union-shop clause and the
dues-checkoff provision, and advised that it was
returning to the employees the $5 that it had
deducted from their wages in May toward payment
of the June dues and that dues would no longer be
deducted
from
the
employees'
wages.
The
Respondent also enclosed a copy of a notice to
employees which had been posted in the plant on the
same day. This notice, which was posted after
several employees inquired when their already-
deducted union dues would be returned to them,
contained a statement that the employees were no
longer required to be members of the Union or to pay
dues to keep their jobs, that the dues deducted from
the
May paycheck would be returned to the
employees, and that those employees who wished to
retain their
membership and pay dues should
contact the Union, as the Respondent would no
longer "handle any of these arrangements." Not one
of the employees contacted the Union, either to
resign his membership or to revoke his checkoff
authorization. On June 13, however, the Respondent
refunded to all employees the dues which had been
deducted from their May wages and it has ceased
the further checkoff of dues.
The Board held in Penn Cork2 that, when there
has
been an affirmative deauthorization vote,
outstanding
checkoff
authorizations
originally
executed by employees while a union-shop provision
was in effect become vulnerable to revocation by
employees regardless of their terms. As is also
evident in the more recent Bedford Can decision,3
such affirmative vote does not automatically cancel
existing authorizations for the checkoff of dues or
' See N L.R B v C & C Plywood Corp, 385 U S 421, The
Crescent Bed Company, Inc, 157 NLRB 296, C & S Industries,
Inc., 158 NLRB 454 Member Brown notes his concurring opinion
in CloverleafDivision of.4dams Dairy Co , 147 NLRB 1410
2 Penn Cork & Closures, Inc , 156 NLRB 411, 414-415, enfd
376 F 2d 52 (C.A. 2)
J Bedford Can Manufacturing Corp , 162 NLRB 1428
165 NLRB No. 2
168
DECISIONS OF NATIONAL LABOR RELATIONS BOARD
alone require an employer to cease deducting dues
in the face of a contractual checkoff provision. In the
cited cases, the Board found that the employer
violated the
Act by
continuing to
make such
deductions
after
the
employees ,
following
deauthorization
elections ,
revoked their prior
authorizations . In this case, the employer repudiated
the checkoff provision of its collective -bargaining
contract with the Union, not only in its application to
employees who might not have wished to revoke
their existing authorizations , but in its application
generally as a continuing contractual provision
which allowed new employees voluntarily to
authorize this mode of paying their dues . It follows,
and
we find,
that
the
Respondent thereby
unilaterally modified its contract with the Union in
violation
of Section 8(a)(5) and
(1) of the Act.
Contrary to the Respondent 's contention , the record
reveals no unusual circumstances which justify its
conduct.
THE EFFECT OF THE UNFAIR LABOR PRACTICES ON
COMMERCE
The activities of the Respondent set forth above,
occurring in connection
with the operations
described in section I of the Trial Examiner's
Decision, 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 of commerce.
THE REMEDY
Having found that the Respondent has engaged in
unfair labor practices, we shall order it to cease and
desist therefrom and to take certain affirmative
action designed to effectuate the policies of the Act.
We have found that in June 1966 the Rspondent
unlawfully repudiated its obligation to deduct dues
from its employees' wages for transmittal to the
Union. To remedy the Respondent's unfair labor
practices, we shall order it to reimburse the Union,
with interest at 6 percent per annum, for all
membership dues it has improperly failed to
transmit to the Union since June 1966, and to resume
the monthly transmittal of such dues to the Union
until effective revocation of checkoff authorizations
are given.4
The Board, upon the basis of the foregoing
findings and the entire record, makes the following:
CONCLUSIONS OF LAW
1. The
Respondent is engaged in commerce
within the meaning of Section 2(6) and (7) of the Act.
2. The Union is a labor organization within the
meaning of Section 2(5) of the Act.
3. By repudiating, refusing to honor, and
unilaterally
modifying the collective-bargaining
agreement entered into between it and the Union,
the Respondent has engaged in and is engaging in
unfair labor practices within the meaning of Section
8(a)(5) and (1) of the Act.
4. The aforesaid unfair labor practices are unfair
labor practices within the meaning of the Act.
ORDER
Pursuant to Section 10(c) of the National Labor
Relations Act, as amended , the National Labor
Relations Board hereby orders that the Respondent,
W. P. Ihrie & Sons , Division of Sunshine Biscuits,
Inc.,
Baltimore ,
Maryland ,
its
officers ,
agents,
successors , and assigns , shall:
1. Cease and desist from:
Repudiating, refusing to honor , or, except as
permitted by Section 8(d) of the Act, unilaterally
modifying
the
collective-bargaining
agreement
entered into between it and Local Union No. 68,
American
Bakery
&
Confectionery
Workers
International Union , AFL-CIO, or from engaging in
any like or related conduct in derogation of its
statutory duty to bargain with the Union.
2. Take the following affirmative action designed
to effectuate the policies of the Act:
(a) Reimburse the Union for all membership dues
it has failed to transmit to the Union since June 1966,
as required by its contract with the Union, in the
manner set forth in the section of this Decision and
Order entitled "The Remedy."
(b) Post at its plant in Baltimore , Maryland,
copies of the attached notice marked "Appendix."5
Copies of said notice, to be furnished by the
Regional Director for Region 5, shall , after being
duly signed by the Respondent 's representative, be
posted by the Respondent immediately upon receipt
thereof, and be maintained by it for 60 consecutive
days thereafter, in conspicuous places, including all
places where notices to employees are customarily
posted.
Reasonable steps shall be taken by
Respondent to insure that said notices are not
altered, defaced, or covered by any other material.
(c) Notify the Regional Director for Region 5, in
writing, within 10 days from the date of this Order,
what steps have been taken to comply herewith.
' The parties' checkoff agreement also applied to initiation fees
"which may from time to time be fixed and assessed by the
Union," and the employees ' authorizations also applied to such
fees. But the record does not show that such fees are an issue in
this case.
S In the event that this Order is enforced by a decree of a
United States Court of Appeals, there shall be substituted for the
words "a Decision and Order" the words "a Decree of the United
States Court of Appeals Enforcing an Order."
APPENDIX
NOTICE TO ALL EMPLOYEES
Pursuant to a Decision and Order of the National
Labor Relations Board , and in order to effectuate
W. P. IHRIE & SONS
the policies of the National Labor Relations Act, as
amended, we hereby notify you that:
WE WILL NOT refuse to deduct union
membership dues pursuant to our agreement
with Local Union No. 68, American Bakery &
Confectionery
Workers International Union,
AFL-CIO, and the checkoff
authorizations
maintained by our employees.
WE WILL NOT engage in any like or related
conduct in derogation of our statutory duty to
bargain with the Union.
WE WILL reimburse the Union for all dues we
have failed to transmit to the Union since June
1966.
W. P. IHRIE& SONS,
DIVISION OF SUNSHINE
BISCUITS, INC.
(Employer)
Dated
By
(Representative)
(Title)
This notice must remain posted for 60 consecutive
days from the date of posting and must not be
altered, defaced, or covered by any other material.
If employees have any question concerning this
notice or compliance with its provisions, they may
communicate directly with the Board 's Regional
Office,
Sixth Floor, 707 North Calvert Street,
Baltimore , Maryland 21202, Telephone 752-8460,
Extension 2159.
TRIAL EXAMINER'S DECISION
STATEMENT OF THE CASE
A. NORMAN SOMERS, Trial Examiner: This case, with all
parties represented , was heard in Baltimore , Maryland, or
October 18 and 25, 1966, on complaint of the General
Counsel,' alleging that Respondent, by repudiating the
checkoff provision of its contract with the Union (upon the
Union's losing a union-shop "deauthorization" election),
defaulted in its bargaining obligation with the Union in
violation of Section 8(a)(5) and (1) of the Act. The parties
presented evidence and oral argument , and the General
Counsel
and
Respondent have filed briefs.
Upon
consideration of the entire record,2 the arguments of
counsel both oral and written , and my observation of the
witnesses , I hereby make the following:
FINDINGS OF FACT
1.
THE BUSINESS OF THE EMPLOYER
The Respondent, W. P. Ihrie & Sons, Division of
Sunshine
Biscuits , Inc., is
a New York
corporation
operating in Baltimore , Maryland, where it makes and
sells potato chips and similar items. During the preceding
I Issued August 24, 1966 on a charge filed by the Union on
June 22,1966
169
representative year , the sale and shipment of its products
outside of Maryland and its receipt of goods from outside
the State exceeded $50,000 in each category. It is not
disputed and I find that Respondent is engaged in
commerce within the meaning of the Act.
II.
THE LABOR ORGANIZATION INVOLVED
The Charging Party, Local Union No. 68 , American
Bakery & Confectionery Workers International Union,
AFL-CIO,
hereinafter called the Union, is a labor
organization within the meaning of the Act.
III.
THE ALLEGED UNFAIR LABOR PRACTICE
A. The Union-Shop and CheckoffProvisions of the
Contract, and the Checkoff Authorizations Signed by the
Employees
On November 22, 1965 , the Union after being duly
certified ,
following
a
Board election ,
as
exclusive
bargaining
representative
of
a
unit
composed of
Respondent's
(approximately
30)
production
and
maintenance employees , executed a 3-year contract with
Respondent covering these employees. The contract,
among other things, provided for a grievance procedure
culminating in arbitration , and it also included a union-
shop provision and a checkoff clause. Article II required
that all regular employees , after the 30-day grace period
prescribed by the Act,
shall, as a condition of continued employment be
members of the Union
.
and thereafter shall
continue membership in good standing in the Union
by tender of periodic dues and initiation fees....
Article II-A provided that:
From the last pay of each month the Company shall
deduct the dues which may from time to time be fixed
by the Union for the next succeeding months [and
also the initiation fees of newly hired regular
employees] but only in reference to such employees
who shall have authorized the Company in writing to
deduct such dues . This authorization shall remain in
effect for the duration of this agreement , or for a
period of one year from the date thereof, whichever
occurs sooner. The Company shall transmit such dues
to the official designated by the Union to receive the
same.
Ultimately, in January 1966 (after a first but abortive
petition by a number of employees to have the Union
"deauthorized" of its power, under the union -shop clause,
to require membership as a condition of the job) all
employees signed the two papers submitted to them by the
Union; namely, an application for membership in the
Union , and a checkoff authorization card. The card stated
that the employee authorized the employer to deduct from
his wages and pay to the Union his monthly dues ($5 in this
case), that the authorization was "irrevocable for the
period of one year or until the termination of the
[contract], whichever occurred sooner ," and that it shall
continue in effect "unless written notice to terminate this
authorization is given by [the employee] to the Employer
and the Union, by registered mail, not more than twenty
(20) days and not less than (10) days [sic] prior to the
expiration of each period of one year [or of the contract]."
2 As corrected by order issued on notice to all parties.
170
DECISIONS OF NATIONAL LABOR RELATIONS BOARD
B. The Events Culminating in the Deauthorization
Election and Respondent 's Repudiation of the Checkoff
Provision
1. The basic facts as relied on by General Counsel
From the point of view of the General Counsel,3 all we
need to know further is the following: Pursuant to a new
petition duly filed April 15, 1966, a "deauthorization"
election was held on May 26, 1966, under Section 9(e)(1) of
the Act.4 In that election a majority of the employees in the
unit voted in favor of withdrawing from the Union the
authority, under the contract, to require membership in it
as a condition of employment.5 The Regional Director, on
June 6, certified the results to the Respondent and the
Union. Thereupon, on June 8, the Respondent wrote the
Union that it deemed the deauthorization vote to have
"eliminated" both the union-shop clause and the checkoff
provision of the contract and that it was accordingly
returning to the employees the $5 that it had deducted
from the employees' wages the last week in May toward
payment of the June dues. The letter also enclosed a copy
of a notice Respondent was posting that day to the
employees, reading:
AT THE U.S. LABOR BOARD ELECTION HELD ON
MAY 26, 1966, YOU VOTED 20 TO 9 TO REMOVE THE
UNION SHOP PROVISIONS FROM YOUR LABOR
CONTRACT. ON JUNE 6, 1966, YOUR VOTE BECAME
FINAL AND OFFICIAL.
THIS ELECTION RESULTED FROM THE PETITION
WHICH YOU FILED WITH THE U.S. LABOR BOARD. AS
A RESULT OF THE FILING OF THIS PETITION AND YOUR
MAJORITY VOTE AT THE ELECTION, NONE OF THE
EMPLOYEES OF W. P. IHRIE & SONS ARE NOW
REQUIRED TO BE UNION MEMBERS AND PAY UNION
DUES TO KEEP THEIR JOBS. ALL OTHER PROVISIONS
OF YOUR LABOR CONTRACT REMAIN IN EFFECT.
THE $5.00 UNION DUES WHICH YOUR COMPANY
WAS REQUIRED TO DEDUCT FROM YOUR PAY CHECK
DATED MAY 25, 1966, COVERING UNION DUES FOR THE
MONTH OF JUNE, WILL BE RETURNED TO YOU
PROMPTLY.
ANY OF YOU WHO WANT TO BE MEMBERS OF THE
UNION AND PAY UNION DUES MUST CONTACT THE
UNION
REPRESENTATIVE
AND
MAKE ALL THE
NECESSARY
ARRANGEMENTS
WITH
HIM.
YOUR
COMPANY CAN NO LONGER HANDLE ANY OF THESE
ARRANGEMENTS.
IF
YOU HAVE ANY QUESTIONS ABOUT THIS
SITUATION PLEASE FEEL FREE TO SEE ME AND I WILL
DO MY BEST TO ANSWER ANY OF YOUR QUESTIONS.
PAUL D. IHRIE
GENERAL MANAGER
3 And the Union also, whose position concurs with that of the
General Counsel, unless otherwise indicated.
' Section 9(e)(1) provides that upon the filing with the Board of
a petition by 30 percent or more of the employees in the unit
covered by an employer-union agreement , that they want to
rescind the authority of a labor organization to make membership
in it a condition of employment, "the Board shall take a secret
ballot of the employees in such unit and certify the results to such
labor organization and to the employer "
5 Of 31 eligible employees, 29 cast valid ballots, 20 in favor and
9 against deauthorization
6 The paper was not placed in the record, nor was evidence of
its contents otherwise proffered. However, in the brief filed with
The notice was posted from June 8 to 13, inclusive. On
June 13, Respondent refunded to all the employees the
June dues which it had deducted from their wages on
May 25, and ceased checking off dues any further. No
employees, either before Respondent's letter of June 8 or
since, submitted to Respondent or the Union a written
revocation of the checkoff authorization, or notified either
party of an actual or intended resignation from the Union.
Also, before Respondent wrote the Union on June 8, it
neither notified the Union nor consulted with it concerning
its intended action. (The Union, in response, did not ask
for any consultation. It replied by a letter from its attorney
to the effect that it was filing with the Board the 8(a)(5) and
(1) charge which initiated the instant proceeding (supra,
fn. 1).)
2. The "background" facts as relied on by Respondent
The Respondent contends that to evaluate the situation
properly, we must take account of all events from the time
the contract was executed to the time it repudiated the
checkoff provision on June 8. In its answer to the
complaint in this proceeding, Respondent seemed to
assert as its defense the broad proposition, similar to that
stated in its letter to the Union of June 8, that the majority
vote in the deauthorization election "rescinded" both the
union-security
provision
and the checkoff clause.
However, at the hearing, in response to my request for a
threshold statement of the positions of the parties
preceding the presentation of evidence, Respondent,
through counsel, stated it was not urging this as a general
proposition but as the specific "practical" result of all the
circumstances of this case from their outset. I therefore
permitted Respondent to develop what occurred from the
time the contract was signed to the time it repudiated the
checkoff obligation in June.
When the contract was signed on November 22, 1965,
Respondent posted on its bulletin board a copy of the
contract and an abstract of its terms. Thereupon employee
Almeta Ball and about seven other employees told Robert
Disney, the plant manager, that they did not wish to pay
dues to the Union and asked how they could get out of
doing so. Disney passed this on to Paul Ihrie, general
manager of Respondent. Pursuant to consultation with
Respondent's counsel, Ihrie prepared a paper which was
signed by at least 30 percent of the employees and brought
by Mrs. Ball to the Regional Office.6 The Regional Office
thereupon prepared a deauthorization petition on the
Board's standard form, and Mrs. Ball signed it on
November 26. The Regional Director sent Respondent and
the Union a copy of the petition with a notification of its
filing. The Union then, on December 1, filed a charge, and
on December 15 an amended charge with the Board,
accusing Respondent of having, in violation of Section
8(a)(1) of the Act, instigated the deauthorization petition
me, Respondent's counsel , who drafted the document, volunteers
the information concerning its contents Since it accords with the
assumption on which the record shows Respondent acted
throughout the events here considered ,
it
is
pertinent to
reproduce Respondent 's admitted version of the document it
prepared to assist the deauthorization group in their project It
reads.
We, the undersigned, hereby notify the Labor Board that we
desire an immediate election of all of the employees of this
company for the purpose of deciding whether or not Articles
II and Ila should be removed from the contract under the de-
authorization setup of the Board
W. P. IHRIE & SONS
and assisted the employees
in it. The charges were
disposed
of
by an informal settlement
agreement,
executed January 19, 1966, by both parties and approved
by the Regional Director, in which Respondent promised
not to repeat this conduct or otherwise infringe upon the
employees' Section 7 rights, and agreed to post a notice to
that effect, which it did for the customary 60 days.
On December 22, while the charges were still pending,
the Union had written the employees reminding them of
the union-shop and checkoff clauses in the contract and of
the expiration of the grace period for joining. The Union
enclosed, as it put
it, for the "convenience" of the
employees, a membership application and also a dues-
checkoff authorization card, with a request that they be
signed and returned to the Union. On December 27,
Respondent posted a notice saying:
It has been brought to our attention that you have
received a letter from [the Union] calling your
attention to the union shop and checkoff clause in our
labor contract. A petition to take these clauses out of
your contract has been filed by your members with the
Labor Board of the United States Government. As we
told you in the notice posted in the bulletin board on
December 10, 1965, until final action is taken on your
petition by the Labor Board you are not required to
join
the
Bakery
Union,
sign
a
Bakery
Union
membership card, or pay any dues.
About this time, Mrs. Ball, employee Elizabeth Brooks,
and another employee called at the Regional Office to
inquire about the status of the deauthorization petition.
They were informed by Mrs. Louise Felton, the field
examiner assigned to the matter, that it was held up
pending
investigation of the Union's charges
against
Respondent. When the charges were settled in January,
Field Examiner Felton informed Mrs. Ball and her group
that the deauthorization petition was subject to dismissal
because of the assistance given the project by the
employer, but that they could file a new petition after the
expiration of the 60-day notice-posting period in the unfair
labor practice case. Mrs. Ball then withdrew the petition
"without prejudice."
Thereupon in January, all the
employees signed the union membership applications and
checkoff authorization cards.' After this Respondent
checked off from the employees' wages the dues for each
month from February to May inclusive, in the manner
provided in article II-A of the contract. As earlier stated,
Respondent ceased doing so in June following the
deauthorization election held May 26 on the new petition
filed in
April.
Respondent's
witnesses testified that
immediately after the election of May 26 employee Ball
asked Plant Manager Disney when the employees would
' Mrs. Ball testified that Field Examiner Felton told her group
they had to sign the checkoff authorization card. This is not
credited As she and employee Brooks testified, the group asked
Mrs.
Felton if the Union was within its "rights" when it
"threatened" the employees with discharge if they did not join,
and Mrs Felton replied that under the contract as then in force,
membership in the Union was a condition of their job and the
Union had the right to tell them so Mrs Ball's testimony that
Examiner Felton said they had to sign the checkoff authorization
reflects her interpretation of Examiner Felton's affirming to them
that membership in the Union was a requirement of the job It is
evident that Mrs. Ball assumed that a membership application
and a checkoff authorization were part of a single mandatory
package-a rather natural and reasonable assumption , under all
the circumstances, from the time the Union, in its letter of
171
be refunded the $5 that Respondent on May 25 had
withheld from their wages toward payment of the union
dues for June. Disney passed this on to Ihrie, and Ihrie
then consulted Respondent's counsel. The latter then
drafted Ihrie's letter of June 8 to the Union repudiating the
checkoff obligation and Respondent's notice posted that
day to the employees.
Respondent elicited testimony from employees Ball and
Brooks concerning the discussions with Board agents in
connection with the second petition. Since as Respondent
stressed, and still does, at no time since the withdrawal of
the first deauthorization petition did any employee consult
with Respondent in regard to the second petition or
disclose the nature of the discussions with the Regional
Office, Respondent could hardly have relied on the course
of dealings of these employees with the Board's agents for
the action Respondent took on the strength of the outcome
of the deauthorization election. However, the discussion
with the Regional Office will be briefly sketched for such
bearing as the reasonable expectation the employees
might have on the ultimate issue. In April, employees Ball
and Brooks and another employee inquired at the Regional
Office about filing a new petition. They testified they were
referred to a "gentleman" who advised them to prepare a
paper for the employees' signatures, this time in their own
"wording" and "handwriting." On April 12, Mrs. Ball
submitted a handwritten paper, prepared by her and
signed by 20 employees, which read:
Petition to National Labor Relations Board
April 12th, 1966
We the undersigned,
employees of Mrs. Ihries
Potatoes Chip Co., would like to stop paying union
dues to Local#68 AFL-CIO and have the Closed
shop clause removed from our contract"
The gentleman to whom Mrs. Ball presented the paper
said it would be examined for conformity with Board
requirements. The Regional Office thereupon prepared on
its standard form the deauthorization petition signed for
Almeta Ball on April 15, which culminated in the
deauthorization election held on
May 26.
Mrs.
Ball
testified that in her conversation of April 12 she asked the
gentleman to whom she had submitted her paper whether
this meant "that we won't have to pay union dues, if we are
fortunate
enough to win," and that the gentleman
answered it did, but that in all other respects they would
December 22, reminded the employees of their membership
obligation , and enclosed the membership application and the
checkoff-authorization card for their "convenience "
8 Upon the refusal of the General Counsel's representative to
produce the original because it was a "showing-of-interest"
document, which is part of the Board 's "confidential files," I
admitted into evidence the copy which Mrs. Ball testified she
retained in her possession from the time she drafted the paper
given to the Region.
Respondent saw this paper for the first time only 2 or 3 days
prior to the hearing in this case The occasion was when
Respondent's counsel, in preparing for this hearing, asked Mrs
Ball if she had a copy of the document she had brought to the
Board in April
172
DECISIONS OF NATIONAL LABOR RELATIONS BOARD
still "be under the contract" for its 3-year duration.9 It
does not appear that the gentleman in question was told of
their having meanwhile joined the Union and signed
checkoff authorization cards. On the other hand, a more
positive indication of the source of the assumption of the
employees
concerning the effect of a successful
deauthorization vote is the one which Respondent is
shown to have expressed in its various communications
throughout the events here reviewed-namely, that such a
vote, as Respondent put it in its notices to the employees
in
December, would "take [the union-security and
checkoff] clauses out of the contract," or as it put it in its
letter of June 8 to the Union "eliminated" them, or, as it
put it in its answer to the complaint, "rescinded" them. It
must be said, however that the language of the preelection
notices and the phraseology of the question on the
deauthorization ballot are hardly calculated to shed a new
light on such a view, if entertained.10
C. Conclusions
1. The opposing contentions concerning the impact of the
deauthorization result on the checkoff clause
The General Counsel contends that the deauthorization
vote
merely
did
away
with the clause requiring
membership in the Union as a condition of employment,
but did not eliminate the clause requiring Respondent to
check off the union dues from the employees' wages in
accordance with their checkoff authorizations, and that by
unilaterally repudiating its obligation under the checkoff
clause in its entirety, at a time when no employee had
submitted
a revocation of the authorization or a
resignation from the Union, Respondent "modified" a
term of the agreement, and thereby violated its bargaining
obligation under Section 8(a)(5) and (1) of the Act.
Respondent, on the other hand, shying away, as
previously stated, from its prior broad assumption
concerning the effect of a deauthorization vote as such on
the checkoff clause, contends that the circumstances
taken as a whole gave the employees reason to think they
could rest on the results of the deauthorization vote,
without more, and justified the course it, Respondent,
took. Each side claims support for its position in Penn
Cork & Closures, Inc., 156 NLRB 411. There, after a
majority of the employees voted to withdraw the Union's
authority under the contract to require membership as a
condition of employment, they delivered to the employer
and the union a paper signed by each, stating that they
were resigning from the union as of that date and that "no
dues shall be deducted from our wages." At the union's
request, the employer continued to deduct the dues from
the employees' pay and notified the employees that it was
doing so because the checkoff authorization they signed
"by its terms cannot be revoked at this time," but that the
9 Mrs. Ball gave this testimony on her direct examination. On
cross-examination , she claimed that every other Board agent,
including Mrs. Felton , told her the same thing in the discussions
during the first petition . I do not credit this, since on direct Mrs
Ball detailed her various conversations with Board agents during
the first petition , and it would seem clear that she had no
discussion with any Board agent concerning the legal effect of a
"successful"
deauthorization vote until she introduced the
subject to the "gentleman " with whom she discussed the filing of
the second petition
Nor do I credit the testimony of employee Brooks corroborating
Mrs. Ball concerning the alleged talks on that subject preceding
the April visit. Mrs. Brooks testified they raised the subject in
presenting the second petition because they disliked what Mrs
dues were "being kept in a special fund," and that "when
the right to the dues has been judicially determined, the
dues will be either refunded to [them] or paid to the
Union." The Board concluded that in these circumstances
the employer "by continuing to deduct union membership
dues pursuant to checkoff authorizations" unlawfully
assisted the union in violation of Section 8(a)(1) and (2) of
the Act, and ordered reimbursement of all dues checked
off from the pay of these employees from the date they
resigned from the union and "attempted to revoke their
dues checkoff authorizations." The General Counsel sees
the followup action taken by the employees in Penn Cork
as the indispensable basis for the employees' being
released from their individual checkoff authorizations and
of the employer's being relieved of the obligation to check
off the employees' dues as stated in the contract.
Respondent, on the other hand, sees the case as
supporting the proposition that the strict language of the
individual checkoff authorizations, and by that token the
checkoff clause of the contract, can be overcome by the
particular circumstances of the case. The trough in which
each side finds nourishment is the Board's treatment of
the contention there made by the union" "that the right to
discontinue union membership is not the right to revoke
outstanding checkoff authorizations inasmuch as signing a
checkoff authorization is optional with employees and not
dependent upon the existence of union security." The
Board observed (p. 414):
Checkoff is optional, of course, but on the facts before
us we cannot agree that the exercise of this option by
employees is in all circumstances independent of the
impact of union security. Here the Respondent and
the Union had agreed to a contract containing both
union-security and checkoff provisions. The contract
not only required the employees to be union members
but
offered
them the convenience of paying
membership
dues
effortlessly
through
wage
deduction which the Employer agreed to make. When
executing
these
checkoff
authorizations,
the
employees can hardly have been unmindful of the fact
that
they
had to pay union dues. In these
circumstances it would be unreasonable to infer that
all employees who authorized the checkoff would
have done so apart from the existence of the union-
security provision and the necessity of paying union
dues, or to infer that these same employees would, as
a
whole,
wish
to
continue
their
checkoff
authorizations even after the union-security provision
was inoperative. Hence we conclude that when there
has
been an affirmative deauthorization vote,
outstanding
checkoff
authorizations
originally
executed while a union-security provision is in effect
become vulnerable to revocation regardless of their
terms.
Felton said to them in the talks during the first petition (supra,
footnote 7). They could hardly have felt so if she had told them
what they claimed the gentleman had said to them in April and
which, Mrs Brooks testified , pleased them
11 The Board's notice of election (which was posted at the plant
for about 3 days before the deauthorization election) contained a
sample ballot showing that the employees were to vote "Yes" or
"No" on the following question:
Do you wish to withdraw the authority of your bargaining
representative to require, under its agreement with the
Employer, that membership in the Union be a condition of
employment 9
11 The employer stood mute as a neutral "stakeholder."
W. P. IHRIE & SONS
The General Counsel stresses that being "vulnerable to
revocation" is not the same as having been revoked, and
that
until the employees have exercised the option
achieved by the deauthorization vote of resigning from the
Union and revoking the checkoff authorization the
checkoff authorizations continued in effect, and so too did
the Respondent's obligation under article II-A of the
contract to check off their monthly dues to the Union.
Respondent
meets the above with the contention,
previously stated, that the employees, as a result of their
course of dealing with the Board, had reason to believe
that the deauthorization vote as such would accomplish for
them their declared objective of being free of any further
dues obligation to the Union, that no one advised them of
the need for the followup action of the kind taken in Penn
Cork, and that Respondent was in no position to advise
them because its hands were tied and lips sealed by the
restraints placed on it in the settlement of the prior unfair
labor practice proceeding. This explanation, whatever its
plausibility, would account for Respondent's construing
the vote of 20 of the 31 employees in the unit (supra,
footnote 5) as an implied severance from the Union and
revocation of the checkoff authorization. But what of the
other 11-the 9 who voted against deauthorization and the
2 who did not vote? Respondent' s answer is that it could
not distinguish the majority who wanted out from the
minority who might still have wanted in, so it wiped the
slate clean as to the lot. But would that not have been
reason to stand by and wait for those who wanted out to
come forward and say so in the manner that the checkoff
authorization
cards said they must do? If indeed
Respondent felt itself in the dilemma it claimed, it would
seem rather strange that it acted immediately on the
receipt
of the certification of the results of the
deauthorization election, instead of either waiting for the
defectors to identify themselves or communicating its
asserted dilemma to the Union so as to exchange views
regarding a practical solution. On the other hand, the
Union too could have initiated steps with Respondent to
try to salvage the checkoff clause in respect to the
remnant still adhering to it. It did not do so. This may have
been because the Union saw some hazard in a
communication to the employees that if they want to be
free of any further obligation to the Union they must take
some followup action of the kind taken by the employees
in Penn Cork. Such a course could touch off a stampede of
resignations that might well carry along all or part of the
loyal remnant in its momentum. Or it may have felt that it
was not incumbent on it to suggest to the working force the
taking of steps that were adverse to its own interests.
Whatever its reasons, the Union did not initiate any
12 Crown Zellerbach Corporation, 95 NLRB 753; McDonnell
Aircraft Corporation, 109 NLRB 930, 934-935; United Telephone
Company of the West, 112 NLRB 779; Morton Salt Company, 119
NLRB 1402, National Dairy Products Corporation, 126 NLRB
434; Montgomery Ward & Co , Incorporated, 137 NLRB 418, 423,
Hercules Motor Corporation, 136 NLRB 1648, 1652
" In Title 11 of the Labor- Management Relations Act of 1947
(establishing the Federal Mediation and Conciliation Service)
Congress declared
Sec 203 (d). Final adjustment by a method agreed upon by
the parties is hereby declared to be the desirable method for
settlement of grievance disputes arising over the application
of an existing collective bargaining agreement
To avoid misunderstanding, the policy has always been limited
to instances where the issue turned on the interpretation of the
contract as distinguished from the Act Thus it was not applied to
cases where the dispute turned on a direct application of
principles of the statute, such as, for example, a discriminatory
173
overtures
with
Respondent for a practical way to
distinguish the loyal from the defecting employees.
The above is not to say that overtures by the Union to
the Respondent would necessarily have borne fruit, since
it is manifest that however Respondent hedges on that
position now, it was quite explicit from the outset about
assuming that if the union-security clause were voted out in
the deauthorization election, the checkoff clause would go
with it. Since Respondent has avoided taking that position
before us in this litigation, I do not see that we are called
upon to reach out on our own to pass upon that broad
proposition.
2. Applicability of the policy of relegating disputants to
their contractual remedies
The sum of all the foregoing, it would seem to me, is to
call into play that aspect of Board policy in which it
sometimes, in the exercise of a sound discretion, leaves
the parties to the remedies provided in the contract they
made. As earlier noted, the contract here provides a
grievance-arbitration
machinery for resolving disputes
concerning the interpretation of provisions of the
contract-albeit it was neither used nor sought to be
invoked by either party. For years the Board as a matter of
policy, where the unfair labor practice issue turned not on
the interpretation of the Act but on the interpretation of
particular clauses in a contract, refrained from deciding
the unfair labor practice issue and relegated the parties to
their contract remedies. 12 The policy stemmed from the
belief that it would advance the objective of industrial
peace and stability if the parties were encouraged to
incorporate in their contracts a peaceful machinery for
resolving disputes over the interpretation and application
of provisions of the contract.13 The policy was also an
accomodation between two doctrines that are sometimes
in collision course-namely, at the one end, that "the
breach of a contract is not per se an unfair labor
practice"14 and at the other, that an unfair labor practice
does not cease to be such merely because it is also a
breach of contract.15
Such a policy would have been sufficient to dispose of
the instant case, since the unfair labor practice accusation
is admittedly premised upon the claim that Respondent
breached the checkoff provision of the contract, and the
dispute turns on the scope of that clause and the individual
checkoff authorizations. However, the Board in a recent
line of decisions has limited the doctrine. In Cloverleaf
Division of Adams Dairy Co., 147 NLRB 1410, the Board
declared that except where there
is
an outstanding
arbitration award or a pending arbitration proceeding,
discharge case The Board, in such instance, has always decided
the unfair labor practice issue even where discrimination against
employees was forbidden by the collective -bargaining contract
and the contract
had a provision for processing grievances
through arbitration. Thor Power Tool Company, 148 NLRB 1379,
1381, enfd. 351 F.2d 584,587 (C A 7) The only exception is where
the grievance-arbitration machinery has advanced to the stage of
an actual rendition of an arbitrator 's award There the Board,
since Spielberg Manufacturing Company, 112 NLRB 1080, has
deferred to the award if rendered under the safeguards laid down
under the doctrine of that case See Precision Fittings, Inc., 141
NLRB 1034,1040-43
'4 United Mine Workers (Boone County Coal Corp) v N.L.R.B.,
257 F.2d 211 (C.A.D.C.).
i" See
Dunau,
Contractual
Prohibition
of Unfair Labor
Practices
Jurisdictional Problems, 57 Col L Rev. 52, 65, 80
(1957).
174
DECISIONS OF NATIONAL LABOR RELATIONS BOARD
which should "also put at rest the unfair labor practice
controversy in a manner sufficient to effectuate the
policies of the Act," the Board will decide the unfair labor
practice issue even if in the process it must also interpret
the contract. The Cloverleaf doctrine underlies a number
of recent cases in which the Board decided the unfair
labor practice issue despite the fact that to do so it had to
interpret the contract, and the contract provided a
grievance-arbitration
machinery
for
disputes
over
interpretation and application of its provisions, but which
the parties had not used or which had not advanced to the
stage of an arbitrator's award rendered or being awaited. 16
A fortiori would the Board not permit a question of
contract interpretation to deter it from deciding the unfair
labor practice issue where the contract does not provide
for arbitration. 17
An analysis of the new line of decisions, however,
indicates that they represent a limitation on, not an
abandonment of, the old doctrine. The limitation, as a
reading of the pilot cases of Cloverleaf, Smith Cabinet, and
Century Papers show (supra, footnote 16), was the result of
efforts by respondents to avoid liability for conduct which
but for the contract would clearly be a violation of the
Act-in each instance a unilateral change of working
conditions-by claiming that under the contract the union
waived the right to be consulted about the change. The
Board, in each instance, on examination of the contract,
concluded that the reliance on the contract was a sham,
and did not warrant deferral to the grievance-arbitration
machinery of the contract, since the issue, in essence,
turned on the interpretation of the statute, not the
contract. 18
In the case before us, the contract is not raised by the
accused as a defense, but by the accuser as the affirmative
basis for the accusation. The conduct is not one which but
for the contract would be a violation of the Act, but one
which but for the contract would not be a statutory
violation. Indeed, the General Counsel admits that if there
has been no breach of the contract here, then no unfair
labor practice has been committed. On that score, this
case differs from Penn Cork. There the basis for the
accusation against the employer was that in violation of
the strictures
in the Act
against
assisting
a labor
organization, the employer was taking money from the
employees and giving it to the Union, and the employer
asserted
his
obligation
under the contract as the,
justification for its conduct. Here, as stated, the obligation
under the contract is asserted as the affirmative basis for
the accusation that the statute was violated, namely, that
because the employer breached the provision of the
contract requiring him to take from the employees and
give to the Union, it thereby violated the Act.
On the face of it at least, an accusation thus founded
solely on a breach of a contract conflicts with the
previously stated proposition that a breach of a collective-
bargaining contract as such is not a violation of the Act.19
The "as such" or "per se" (supra, footnote 14) or "ipso
facto" qualification (C & S Industries, 158 NLRB 454) has
undergone progressive shrinkage through the application
of the competing policy underlying Section 8(d) of the Act.
(Though the General Counsel does not mention Section
8(d), it is presumably, if indeed not the necessary, basis for
his claim that a violation of Section 8(a)(5) was committed.)
Section 8(d) forbids a party to a collective -bargaining
contract to "terminate or modify such contract" except
under the procedures there prescribed (which were not
followed here). On that score, the General Counsel relies
on such cases as C & S Industries, supra, and Crescent Bed
Co., supra, footnote 16, enfd. 63 LRRM 2480 (C.A.D.C.).
There the Board found 8(a)(5) violations based upon
8(d)-forbidden
modifications of the contract by the
employer. But in each instance there was no genuine issue
over whether what the employer did was in fact a
modification. In C & S Industries, the employer, as in
Cloverleaf
and
Smith
Cabinet,
changed a working
condition. It instituted an incentive pay system (about
which the contract was silent) and defended on the ground
that the contract did not forbid it (and anyway, it had
several months earlier broached the general subject to the
Union). The Board found the change to have been made in
the teeth of the explicit provision in the contract that
"there shall be no change in the method of payment ...
without prior negotiations and written consent of the
Union." [Emphasis supplied.] In concluding that the
employer thereby "modified" the contract within the
meaning of Section 8(d), and hence violated Section 8(a)(5),
the Board stated the following qualification (p. 458):
Of course, the breadth of Section 8(d) is not such as to
make any default in a contract obligation an unfair
labor practice .... But ... where an employer
unilaterally effects a change which has a continuing
impact on a basic term or condition of employment,
wages for example, more is involved than just a
simple default in a contractual obligation. [Emphasis
supplied.]
16 Smith Cabinet Manufacturing Company, Inc, 147 NLRB
1506;
Century Papers, Inc,
155
NLRB 358;
Crescent
Bed
Company, Inc, 157 NLRB 296, enfd 63 LRRM 2480 (C.A.D C ,
Nov. 16, 1966), C & S Industries, Inc., 158 NLRB 454; Long Lake
Lumber Company, 160 NLRB 1475 But see Flintkote Company,
149 NLRB 1561
17 C & C Plywood Corporation, 148 NLRB 414 The Ninth
Circuit set aside the Board's 8(a)(5) order in that case (351 F 2d
224), on the ground that where an issue of contract interpretation
is involved, the parties must be relegated to their breach-of-
contract remedies under Section 301 of the LMRA, and the Board
is divested of power to decide the issue The question of whether
the Board retains or is divested of its authority in such an instance
is pending on certiorari granted by the Supreme Court in that
case 384 U S 903 The discussion in this Decision assumes the
existence of the Board's power to decide the unfair labor practice
issue despite the need for interpreting the contract We here are
concerned with when the Board, as a matter of discretion and in
advancement of the policy earlier stated , will voluntarily refrain
from deciding the issue and relegate the parties to their contract
remedies See Flintkote Co , supra, 1563, fn 1
iS Cloverleaf (p
1415). "[T] he . dispute
before us
.
involves basically a disagreement over statutory rather than
contractual obligations " Smith Cabinet (p
1508)- "The Union's
complaint
.
does not grow out of the collective-bargaining
agreement or its administration
[but] is directed at
. the
denial of a statutory right
of the Union to bargain about terms
and conditions of employment which are not covered by the
contract." Century Papers
"Respondent's effort[s] to invoke a
question of contract interpretation is wholly untenable and must
fall in view of the plain and unambiguous provisions of the
contract."
11 The Congress which enacted the Taft-Hartley Act of 1947
rejected a proposal to make the breach of a collective -bargaining
agreement as such an unfair labor practice , and provided instead
a remedy by court suit under Section 301 H. Conf. Rept. 510, 80th
Cong , 1st Sess 41-42; 1 Leg Hist 545-546 (1947) The House
Conference Report stated that "once the parties have made a
collective bargaining contract , the enforcement of that contract
should be left to the usual processes of the law and not to the
National Labor Relations Board " 1 Leg Hist at 546.
W. P. IHRIE & SONS
And as reasons for refusing to defer to the contract's
grievance-arbitration procedure (which was not utilized by
either party) the Board stressed that (pp. 459-460):
Here we do not have an issue which, although cast in
unfair labor practice terms, is
essentially
one
involving a contract dispute, making it reasonably
probable that arbitration
will
put the statutory
infringement finally at rest in a manner sufficient to
effectuate the policies of the Act. Nor does resolution
of the unfair labor practice issue here involved
primarily turn on
an interpretation
of specific
contractual provisions of ambiguous meaning, within
the special competence of an arbitrator to determine.
[Emphasis supplied.]
I would think the matter of whether "the issue .
primarily turns on an interpretation of specific contractual
provisions of ambiguous meaning" is the key to the
problem.
This appears in even clearer focus in the
Crescent Bed case. The central issue there was not the
alleged
breach or modification by the employer of
particular parts of the contract but the employer's total
repudiation of it (on the ground that though it was signed
by itself and the local, the International, whose approval
and countersignature were required, had unduly delayed
signing it). The Board held that despite the delay the
contract did go into effect, and Respondent's complete
repudiation of the product of the prolonged negotiations
was a violation of Section 8(a)(5). The Board also found
that "other changes unilaterally instituted by Respondent
in the terms and conditions established by the contract,
such as its refusal to process grievances, to accept Union
checkoff cards, and to furnish the Union with an up-to-date
seniority list,
are independent violations of Section
8(a)(5)." The items other than the refusal to accept the
checkoff cards are outright violations by an employer of
his
bargaining
obligation
with
the
employees'
representative as imposed by the Act. As to the refusal to
accept the checkoff cards, no rationale was given for
including it among the "independent " violations-except
as part of a general caveat to the employer to "honor" the
contract as a whole, which in fact, was the remedy the
Board provided. See Hyde's Super Market, 145 NLRB
1252, enfd. 339 F.2d 568 (C.A. 9). The Board made no
specific mention of the checkoff in its cease-and-desist
order, and, in its discretion, refused to require the
employer to reimburse the union for dues not checked off,
because of the union's own dereliction in delaying prompt
execution of the contract by the International. In any
event, once the existence of the contract was established,
the refusal to accept the checkoff cards was a clear
flouting of an explicit term of the contract , involving no
dispute over its meaning or application ,
within the
province of an arbitrator . In striking contrast was the
Board's statement in that same case regarding a provision
in genuine dispute, as follows:
... It is not for the Board to construe the full meaning
or effect of the contractual provision by which
Respondent was permitted to make certain unilateral
changes in incentive rates which has given rise to this
20 In Crescent Bed, a court suit by the union under Section 301
of the Act
(supra,
fn
19) to compel the employer to go to
arbitration (infra, In 21) was then pending but undecided Before
the Board , neither side disputed the Board 's concurrent power to
decide the unfair labor practice issue if it chose See supra, fn 17
It was merely a matter of discretion whether the Board , in respect
to the incentive clause issue , would relegate the parties to their
contract remedies or decide that issue, as it did the other issues
175
proceeding.2 The parties are free to pursue their
respective contentions as to the proper interpretation
of this provision
under the grievance-arbitration
clause of the contract which is presently in effect and
which we are ordering Respondent to abide by.
[Emphasis supplied.]
2 United Telephone Company of the West, and United Utilities,
Incorporated, 112 NLRB 779, Morton Salt Company, 119 NLRB
1402, National Dairy Products Corporation, Detroit Creamery
Division , 126 NLRB 434
As is to be observed, the cases relied on by the Board
are from among those cited in footnote 12 of this Decision
as illustrative of the policy, preceding the Cloverleaf case,
of relegating parties to available , even if unused , contract
remedies, where the unfair labor practice issue turns on
the interpretation of a contract.20 This indicates that the
Cloverleaf doctrine and the line of decisions cited in
footnote 16 as illustrative of the "newer" policy, were not
intended to put an end to the "older" doctrine, but to
assure a more discriminating and selective application of
it. The intent was to confine it to instances where the issue
"is essentially one involving a contract dispute" and where
the
particular
circumstances justify relegating the
disputants to the grievance-arbitration machinery of the
contract even before the parties have exhausted its use (cf.
Flintkote Co., 149 NLRB 1561), or begun to use it (Crescent
Bed, on the incentive rates issue).21
In the instant case, while it is true that a checkoff
provision is a mandatory subject of good-faith bargaining
in the formulation of a contract (H. K. Porter Company v.
N.L.R.B.,
363
F.2d
272 (C.A.D.C.), cert.
denied
385 U.S. 851), it is also true that the issue here turns
on the resolution of the conflict over the interpretation and
application of the checkoff clause of the contract as
drawn. Was it the intention of the parties that the checkoff
clause survive the union-security provision or that with the
demise of the one, the other should go too? If the checkoff
clause had an independent life of its own, is the entire
working force to be regarded as having continued as
members of the Union, even though, as a practical matter,
the 20 who voted in favor of deauthorization presumably
sought to proclaim their desire to be free of all further
obligation to the Union, instead of merely to vindicate their
freedom of choice in the abstract? The question of
whether the employees retained or severed their
membership involves the relationship of the Union to its
members
inter se.
Such a relationship is ordinarily
controlled by the terms of the "contract" of membership
between the Union and the employees who joineed it.
I.A.M. v. Gonzalez,
356 U.S. 617, 618. The duties,
obligations,
and conditions of that relationship are
ordinarily the subject of State law, and under our Act,
Congress "expressly denied" the assertion of power over
them. Id. at 620. Wisconsin Motor Corporation (Local 283,
U.A.W.), 145 NLRB 1097, 1121-22. If the entire working
force is to be deemed to have continued as members
because of failure to take express resignation steps, is the
21 If the Respondent should refuse to go to arbitration, the
Union can compel it to do so by court suit under Section 301 of the
LMRA for specific performance of the arbitration provision
Lincoln Mills of America v. Textile Workers , 353 US 448 Cf
supra, fn 20; Steelworkers v Warrior & Gulf Navigation Co , 363
U S 574
176
DECISIONS OF NATIONAL LABOR RELATIONS BOARD
Union to be reimbursed to the extent of the dues accruing
for the entire working force or should it be equitably
limited to the 11 in the unit who did not vote in favor of
deauthorization? If the latter, can a practicable method be
worked out for identifying them and what efforts, if any,
has the Union made to seek out this Gideon's army? This
last brings us to the next consideration. Not only is the
interpretation of the checkoff clause in this particular
instance beset with traps and pitfalls reaching into the
domain of the "contract" of membership between the
Union and the employees, but our whole travail would be
over something less than "basic" to the collective-
bargaining relationship. To be sure, the checkoff provides
a convenient means of collecting dues from the remnant
who are still content to adhere to the Union, but it is hardly
assuming too much to say that in an urban community like
Baltimore, access to that group for purpose of dues
collection is not beset with the kind of difficulty which
would undermine the Union's capacity to act as collective-
bargaining representative. Such undermining as the Union
has sustained, unhappily to it, flows not from the failure to
salvage the checkoff in respect to the loyal remnant, but
from the deauthorization choice of the majority, which has
some of the practical stigmata of a no-confidence vote.
This, to be sure, weakens a representative's bargaining
position, but it stems from how the Act is written. An
adverse deauthorization vote is a hazard a union assumes
when it has included a union-shop clause in its contract.
But unlike an actual decertification, the result of a
deauthorization vote is not irreversible, because the
Union, for the duration of the contract, retains the
opportunity to prove its value to the working and thus to
win the disaffected back to its fold. Also, Respondent must
still deal with the Union for the duration of the contract as
the employees' exclusive bargaining representative in
respect to grievances and other terms and conditions of
the job. Should the Respondent fail to do so and resort to
22 We might perhaps have had a different case if the Board, in
the deauthonzation proceeding ,
perhaps in the preelection
notices or even on the face of the ballot (see supra, fn. 10),
inserted a caveat to employees who joined the Union and signed a
checkoff authorization, of the need, even in the event of a
contrivances calculated to discredit the Union's status as
exclusive bargaining representatives of the employees, the
doors of the Agency are still open to what, in such an
instance, would be preponderantly an unfair labor practice
issue, rather than the other way around.
In sum , the situation involves the adjustment of
individual equities turning on a multiplicity of variables
and particulars, some of them reaching outside the
specific issue before us. In the posture before us, they are
a briar patch, which, as I see it at least, would make it the
better part of wisdom for us not to seek to meet them on
the basis of a rationale of general application, that a quasi-
judicial body of Government must make. (See Securities
and Exchange Commission v. Chenery Corporation, 318
U.S. 80; 332 U.S. 194.) Rather, do they lend themselves to
the kind of particularized and individual adjustments,
which an arbitrator is in a position to make by applying his
sound judgment and sense of equity in interpreting the
contract of the Union with the Respondent (as well as of
the Union with the employees who became members), in
the light of all the particulars unfolded by the situation in
this case. As a corollary, his award would apply to the
instant situation , and would control no other case for the
future.22
On the basis of the foregoing, I reach the following:
CONCLUSION OF LAW
Under the particular circumstances of this case, it will
better effectuate the policies of the Act to have the issue of
whether Respondent breached the checkoff provision of
the contract resolved under the grievance-arbitration
procedure of the contract or under the Union's remedy for
breach of contract by court suit under Section 301 of the
LMRA (supra, footnote 21) than determined as an unfair
labor practice issue arising under the Act.
[Recommended Order omitted from publication.]
successful outcome of a deauthonzation vote, to take the follow-
up action of the kind exemplified by the Penn Cork case Some
thought, however, would have to be given to whether this might
not create more problems than it solves