168 NLRB 378
Sprouse-Reitz Co., Inc.
378
DECISIONS OF NATIONAL LABOR RELATIONS BOARD
Sprouse-Reitz Company, Inc. and Retail Clerks
Union Local 324, Retail Clerks International As-
sociation, AFL-CIO. Case 21-CA-7383
November 22, 1967
DECISION AND ORDER
BY CHAIRMAN MCCULLOCH AND MEMBERS
FANNING AND BROWN
National Labor Relations Act, as amended , hereinafter
called the Act.
Pursuant to notice , a hearing was held before me at
Santa Ana, California , on April 18 , 19, and 20 , 1967. All
parties were represented at the hearing and were afforded
full opportunity to be heard , to introduce relevant
evidence , and to file briefs with me . The parties waived
oral argument and on June 12 filed briefs with me.
Upon consideration of the entire record and the briefs
of the parties , and upon my observation of the witnesses,
I make the following:
On August 1, 1967, Trial Examiner James T.
Barker issued his Decision in the above-entitled
proceeding, finding that the Respondent had not en-
gaged 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 Charging Party filed exceptions to the
Trial Examiner's Decision with supporting briefs
and 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 Na-
tional Labor Relations Board has delegated its
powers in connection with this case to a three-
member panel.
The Board has reviewed the rulings of the Trial
Examiner made at the hearing and finds that no
prejudicial error was committed. The rulings are
hereby affirmed. The Board has considered the
Trial
Examiner's
Decision, the exceptions and
briefs, and the entire record in the case, and hereby
adopts the findings, conclusions,' and recommenda-
tions 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
herein be, and it hereby is, dismissed in its entirety.
I We agree with the Trial Examiner that the decision of the court in
Retail Clerks Union, Local 1179, AFL-CIO v. N L R B, 376 F 2d 186
(C.A 9, 1967), does not compel a finding of a bad-faith refusal to bargain
in the present case The instant case is factually distinguishable, based
upon the findings that here the Union made no significant tender of its
cards to Respondent, and Respondent neither inspected the cards nor in-
dicated its actual or possible acceptance of the Union 's claim of majority.
TRIAL EXAMINER'S DECISION
STATEMENT OF THE CASE
JAMES T. BARKER , Trial Examiner : Upon a charge filed
on November 17, 1966 ,' the Regional Director of the
National Labor Relations Board for Region 21, on Janu-
ary 23, 1967, issued a complaint and notice of hearing
alleging violations of Section 8(a) (1), (3), and (5) of the
i Unless otherwise specified all dates referred to herein relate to the
calendar year 1966.
FINDINGS OF FACT
1.
THE BUSINESS OF THE RESPONDENT
Respondent is an Oregon corporation engaged in the
operation of a chain of retail stores in 10 Western States
of the United States, including a store in Stanton, Califor-
nia.
In the course and conduct of Respondent's business
operations during the 12-month period preceding the is-
suance of complaint herein, the Respondent received
gross revenue valued in excess of $500,000. During the
same period of time, Respondent received goods valued
in excess of $50,000 which goods were transported to its
various places of business in interstate commerce directly
from States of the United States other than the State of
California.
Upon these admitted and undisputed facts, I find that
at all times material herein, the Respondent has been an
employer engaged in commerce within the meaning of
Section 2(6) and (7) of the Act.
Ii.
THE LABOR ORGANIZATION INVOLVED
Retail Clerks Union Local 324, Retail Clerks Interna-
tional
Association ,
AFL-CIO,
hereafter called the
Union, is admitted to be a labor organization within the
meaning of Section 2(5) of the Act , and I so find.
III.
THE UNFAIR LABOR PRACTICES
A.
The Issues
The principal issues posed by the complaint are (a)
whether Respondent violated the Act by discharging em-
ployees Norra Pomeroy and Ola Stearman because they
had engaged in union or concerted activities ; (b) the inclu-
sion in the bargaining unit of employees Pomeroy and
Stearman and of employees Laura Vanderwaal and Bar-
bara Cook ; and (c) whether, on or about August 6 and/or
September 15, repectively , the Respondent unlawfully
refused to bargain collectively with the Union.
B. Pertinent Facts
1.
Respondent's operations
Respondent's principal office is in Portland, Oregon.
The Stanton, California, store - the only branch of
Respondent's operation involved in this proceeding - is
under the management of Alfred Cook. Cook reports
directly to
District Manager Jack Watkins, who is
headquartered in Laguna Beach, California, and who has
under his direction and supervision 23 retail stores. Wat-
kins is responsible for the direction of personnel em-
168 NLRB No. 56
SPROUSE-REITZ CO., INC.
379
ployed by the stores in his district and for the oversight of
operations of each store , including the responsibility for
implementing all policies emanating from the Portland,
Oregon , headquarters.
Alfred Cook became manager at the Stanton store in
September 1965. As manager he has direct supervision
over the personnel employed in the store and is charged
with general responsibility of store operation and of or-
dering merchandise for the store.
2. The employee complement
During the payroll period ending August 6, Respond-
ent employed Irene Cullum, Evelyn Rickett, Laura
Vanderwaal, Richard Finefrock, and Barbara Cook, the
wife of Manager Alfred Cook.2
Laura Vanderwaal was terminated during the payroll
period ending August 6.3 During the payroll period end-
ing September 18 which encompasses the September 15
date, alleged by the General Counsel as an alternate date
upon which the Union demanded recognition, in addition
to Cullum, Rickett, and Finefrock, Respondent also em-
ployed Rose Marie Leabo, Norra Pomeroy, and Ola
Stearman. The General Counsel conceeds the propriety
of Leabo's inclusion in the bargaining unit pertinent
herein and also urges the inclusion of Pomeroy and Stear-
man. On the other hand, while not contesting Leabo's in-
clusion, Respondent asserts that both Stearman and
Pomeroy were temporary employees who had been hired
merely to accomplish certain duties in connection with
the reorganization and refurbishment of stock and the
relocation of store counters and fixtures.
Subsequently, on September 8, Ola Stearman and
Norra Pomeroy duly signed authorization cards.5
Subsequently the cards of Rickett, Vanderwaal, and
Cullum came into the possession of Robert Giffan.6
4. The August 6 bargaining demand
Robert Giffan testified that by June 24 or 25 he had
received the authorization cards of three of Respondent's
employees. He testified further that through a conversa-
tion with Evelyn Rickett he ascertained the number of
employees in Respondent's employ. He thereby deter-
mined mathematically that the Union 'represented a
majority of the employees.
On August 4 Union Secretary and Treasurer Arthur
Berland directed a letter to Frank Selover who, until
November 17, served as Respondent's labor relations
representative.7 Selover received the letter on August 6
in the due course of the mail. The letter read as follows:
This is to advise you that Retail Clerks Union Local
324 represents a majority of the employees working
at the Sprouse Reitz store located at 11332 Beach
Boulevard, Stanton, California.
Verification
of the majority status has been
established by a cross check of authorization cards
against the employers payroll records , certified by
Raymond E . Vierrerrer, C.P.A., a copy of which is
enclosed herein.
We would appreciate your contacting this office to
arrange for a meeting at a time and place mutually
agreeable to both parties to commence negotiations.
3. The union organizational effort
In
mid-June employee Evelyn Rickett contacted
Robert Giffan, business representative of the Union, for
the purpose of learning the procedures necessary for the
employee to follow in obtaining union representation at
the Stanton store. During the conference Giffan in-
structed
Rickett with respect to the use of union
authorization cards as a method of obtaining employer
recognition of the Union. Giffan furnished Rickett with
several blank authorization cards which she took with her
and later used in obtaining employee signatures. On June
24 Rickett executed an authorization card and, thereafter,
she gave cards to Irene Cullum and Laura Vanderwaal.
Laura Vanderwaal executed a card on June 24 and Irene
Cullum executed one dated June 25.4
At approximately this point in time Rickett conversed
with Richard Finefrock, a 17-year-old youth employed as
a stockboy. Finefrock informed Rickett that he was not
interested in becoming affiliated with the Union.
2 The parties stipulated the exclusion of Eileen Rohmer The evidence
of record leaves no doubt that during the payroll period ending August 6,
1966, Barbara Cook was in the employ of Respondent, albeit on leave of
absence due to the illness of her infant child The evidence also reveals
that during payroll penods preceding August 6 and following August 6
Barbara Cook worked substantial periods in the employ of Respondent
9 Her termination is not herein alleged as violative of Act The precise
time of her termination - subsequently considered - is relevant to the al-
leged status of the Union as the majority representative of employees on
August 6, on which date it is stipulated an agent of Respondent received
the Union's bargaining demand, dated August 4.
4 The parties stipulated as to the authenticity of the signature contained
on the Cullum card. They did not stipulate as to the accuracy of the June
25 date contained thereon. However, there is no evidence of record cast-
5. Company responses to bargaining requests
a.
Management told of "union trouble"
Subsequently on August 10 Jack Watkins spoke with
Selover by telephone and Selover informed Watkins that
the Company had union "trouble" in its Stanton store.
Selover asked Watkins what he knew of this. Watkins as-
serted that he had no information but that he would be in
the area and would check into the matter. Watkins in-
formed Selover that if he heard anything concerning the-
Union he would let Selover know. Selover asserted that
he would be in touch with the union organizers and if he
obtained any information he would communicate it to
Watkins. During the conversation no mention was made
of the Union's demand letter of August 4.8
Commencing on August 10 and for a 2-week period
thereafter Watkins served as manager of the Stanton
store while Alfred Cook was on vacation. Watkins did not
mg doubt on the accuracy of this date
5 All of the foregoing is predicated principally upon the credited
testimony of Evelyn Rickett as supported by that of Robert Giffan, Norra
Pomeroy, and Laura Vanderwaal
6 The testimony of the record indicates that after executing her card
Irene Cullum displayed some reluctance concerning the wisdom of
having done so However, her doubt was not followed by any overt
action seeking to accomplish a retraction of the authorization The
testimony of Evelyn Rickett and of Robert Giffan reveals that the
card of Irene Cullum was mailed by Cullum to the Union and was
ieceived by Giffan through the mails
7 The parties so stipulated
" The testimony of record is to this effect, and in his brief the General
Counsel conceeds that Selover failed to mention the demand letter
380
DECISIONS OF NATIONAL LABOR RELATIONS BOARD
converse with Cook concerning the Union until Cook
returned from vacation on August 24. Upon Cook's
return Watkins asked him if he knew anything about
union activity in the store and whether he was aware of
any dissatisfaction among his employees . Cook informed
him that he had heard nothing.9 Watkins stated that
Selover had informed him that the Union claimed to
represent the majority of the employees and had signed
authorization cards from them Watkins instructed Cook
to say nothing to the employees concerning the Union but
urged him to remain alert. He told Cook that he would
check with him later.
Thereafter, on September 1, Giffan conversed with
Selover by telephone . During the conversation Giffan
asked Selover what response the Company was going to
make to the Berland letter of August 4. Selover stated
that he would have to consult with Jack Watkins , the dis-
trict manager of the Stanton store. The conversation
between Selover and Giffan was a brief one and appears
to have terminated on this note.
b.
Management learns of demand for recognition
Soon thereafter in early September Watkins again con-
ferred by telephone with Selover. 10 Selover asked Wat-
kins if he had obtained any further information with
respect to the union organizational effort at the Stanton
store . Watkins responded that he had not. He stated,
however, that he had conversed with Cook and that Cook
was of the opinion that there were no employees that
would be interested in joining the Union . Selover stated
that he had had a demand for recognition from the Union.
Watkins responded , in substance, that the Company
should extend recognition only after a Board election.
c. Management analysis ofunion strength
Within the ensuing few days, Watkins again conversed
with Cook. During this conversation Watkins and Cook
discussed employees Evelyn Rickett ,
Irene
Cullum,
Richard Finefrock , and Barbara Cook. Alfred Cook
discounted the likelihood of his wife having any interest
in union representation and, similarly , based upon his per-
sonal friendship with Richard Finefrock, expressed the
opinion that Finefrock would not be interested. Watkins
expressed the conviction that Irene Cullum , a long-term
employee who had indicated satisfaction with her work
would not seek union representation. Cook and Watkins
reached no consensus with respect to Evelyn Rickett.I I
Watkins credibly testified he contacted Selover and in-
formed him that he and Cook had "checked employment
cards and the best [they] could come up with was a two
and two situation ." He stated that neither he nor Cook
thought the Union represented a majority and that
Selover should so inform the Union.
d. Respondent denys recognition
Thereafter, on September 15 Selover contacted Giffan
by telephone . Selover stated that he had spoken with
Watkins and asserted it was the Company's position that
the Union did not represent a majority of the employees.
Giffan responded that he had obtained additional
authorization
cards
from
"new-hires. "12
Selover
responded that he would again contact Watkins and
would be in touch with Giffan.
e.
Union majority again challenged
On September 22 or 23 Selover conversed with Wat-
kins by telephone . Selover requested Watkins to furnish
him with a list of all permanent employees at the Stanton
store. During the conversation Watkins observed that all
"extra help" had been "eliminated." 13
On September 26 Selover again contacted Giffan by
telephone . 14 Selover stated that the Company was of the
opinion that the Union did not represent a majority of the
employees . During the conversation Selover stated that
the Respondent presently employed four employees and
asserted that employees Stearman and Pomeroy had been
terminated . There then followed a discussion of the ter-
mination of employees Pomeroy and Stearman that had
transpired on the previous Saturday.
With respect to the Company's position regarding the
Union's majority status, in asserting that the Company
employed only four employees , Selover mentioned the
name of one employee. In response Giffan stated that he
had a card for that employee . Thereafter Selover ran
through the list of employees then on the payroll, men-
tioning Evelyn Rickett , Irene Cullum , Richard Finefrock,
and Barbara Cook. As Selover mentioned the name of
Rickett and Cullum , Giffan answered that he had cards
for them. However, with respect to Finefrock and Bar-
bara Cook he asserted that he did not have signed
authorization cards for them. However, Giffan stated that
Barbara Cook was the manager's wife and was not car-
ried on the payroll as an employee and was not con-
sidered to be part of the unit. Selover asserted that Bar-
bara Cook was part of the four employee unit.
During the conversation the status of Laura Van-
derwaal was discussed. Giffan stated that he had her sign
the authorization card but the fact of her prior termination
was also discussed . The conversation turned to the
discharge of employees Pomeroy and Stearman . Giffan
asserted that he was going to file charges with respect to
their termination. 15
"Giffan testified that sometime between July 12 and August 4 he
called on Cook at the Stanton store and informed him that the Union
represented a majority of the employees and warned him against harrass-
ment of the employees . Giffan testified there had been reports of har-
rassment
He conceded that he made no demand for recognition I do
not credit the testimony of Giffan concerning this alleged visit The
testimony of record is uniform in establishing that Cook undertook no
discussion of the Union , or of its organizational efforts, at least -assert-
edly-until Stearman and Pomeroy were discharged in September The
testimony of Cook himself, while not directly refutive of Giffan's
testimony , may be interpreted only as a denial of having been informed of
union activity or of the Union' s claim to majority status In the circum-
stances, I credit Cook
10 Jack Watkins placed their conversation as having occurred in Sep-
tember I am convinced that Giffan's call to Selover stimulated this con-
versation between Selover and Watkins
11 The foregoing is based upon a composite of the credited testimony of
Jack Watkins and Alfred Cook.
12 Documents in evidence reveal that at that point in time Norra
Pomeroy, Ola Stearman , and Rose Marie Leabo were "new -hires " The
former two worked full time and the latter part time
" Jack Watkins so testified
" Giffan testified that between September 15 and September 26 he had
made "repeated" calls to Selover.
15 The foregoing is predicated upon a careful analysis of the testimony
of Robert Giffan both on cross-examination and direct examination, in-
cluding an analysis of statements contained in Giffan's pretrial affidavit
and his response to questions propounded to him on cross -examination by
counsel for Respondent
f.
Further union demands
SPROUSE-REITZ CO., INC.
381
On October 28 Arthur Berland contacted Selover by
telephone. During this conversation Berland inquired of
Selover as to the Company's intentions with respect to
the Union's request for recognition. Berland also stated
that the
Union desired to commence negotiations.
Selover responded that the Union did not command
majority status in the unit. Selover stated that he would
endeavor to contact the company representatives and the
conversation ended on this note.
Subsequently on November 4 Berland and Selover
again conversed by telephone. Selover stated that the
Company doubted the Union's majority status. 16
6. Pomeroy and Stearman employed
Jack Watkins testified credibly without contradiction
that when he assumed the managership of the Stanton
store dunng Cook's vacation he found the store in "very
bad shape" and that he observed there was an urgent
need for the relocation of the toy counters in order to
avoid a pilferage problem which he observed to exist.
Watkins and Cook credibly testified that upon Cook's
return from vacation Watkins discussed the condition of
the store with Cook and informed him of the pilferage
problem which he had discovered. Watkins apprised
Cook of certain actions which he deemed essential in
order to solve the deficiencies which he felt existed in the
store. He instructed Cook to relocate certain counters in
the store and noted the need for separating and sorting
counter and under stocks. He advised Cook that he
should hire additional full-time employees for a few
weeks in order to rearrange the merchandise and make
the counter changes he felt were essential."
Within a few days thereafter Cook placed in the store
window a "saleslady wanted" sign. Ola Stearman was in-
terviewed by Cook and hired on August 29 and Norra
Pomeroy on August 30.
Alfred Cook credibly testified that upon interviewing
and hiring Stearman and Pomeroy he explained to each of
them that the work for which they were being hired would
be temporary work and would include changing of coun-
ters and cleaning up the store and getting the store ready
for the back-to-school,
Halloween, and Christmas
seasons to follow. He indicated to them that the work
would be of some 2 to 4 weeks' duration.
Contrary to Cook, however, Stearman and Pomeroy
testified that not until after they commenced working did
Cook inform them that their employment was of a tempo-
rary nature. Thus Stearman testified that a day or two
after she was hired Cook informed her that he planned to
employ a full-time salesgirl and that in 2 to 4 weeks, when
they had completed the temporary work for which they
had been employed, he would retain either Stearman or
Pomeroy, whomever, in Cook's judgment, was the su-
perior employee.
Similarly, Pomeroy testified that soon after she was
employed Cook informed her that she had been employed
to "change things around." Pomeroy further testified that
Cook stated he did not know how long the employment
would last but that he anticipated it would last from 3 to
4 weeks. Additionally, Pomeroy testified that approxi-
mately 2 weeks after she was initially employed Cook
mentioned the subject of employee benefits to her. Ac-
cording to Pomeroy she inquired why, if she were to be
only temporary, Cook was discussing this with her. Cook
stated that as far as he was concerned she would be a per-
manent employee. Pomeroy further testified that she then
informed Cook she desired to know her status because
she planned to purchase some furniture and did not wish
to go into debt if her employment were only temporary.
Cook denies the substance of the foregoing testimony
of Stearman and Pomeroy. Specifically, Cook denies hav-
ing discussed with Stearman the need for an additional
employee and the retention of one; and denies having
discussed the company benefits with Pomeroy. He
further denies having informed Pomeroy at any time that
she was a permanent employee. However, he conceeds
that he did discuss with Pomeroy her stated intentions to
purchase some new furniture. In this regard, according to
Cook, Pomeroy informed him that she had purchased fur-
niture and she hoped that she could continue to work in
order to pay for it. Cook stated that he would like very
much to call her back for the Christmas season.
I credit Alfred Cook in this respect and find that, con-
trary to the testimony of Stearman and Pomeroy, he did
not, as alleged by them, inform them either, specifically
or inferentially, that they were being considered for or
had achieved permanent employment status. The
evidence of record is strongly supportive of the finding,
which I make, that the employment of Stearman and
Pomeroy was intended to be of a temporary nature only.
This being so, I do not accept the testimony of Stearman
and Pomeroy that they were not apprised by Cook at the
time of their employment interview of the temporary na-
ture of their work. Rather, I credit the testimony of Cook
that upon interviewing and hiring both Stearman and
Pomeroy he told them candidly that their employment
was for a 2- to 4-week period. The version of Stearman
and Pomeroy to the effect that within a day or two after
their employment Cook conveyed to them for the first
time that their employment was temporary and not per-
manent is, in my opinion, highly implausible. Nothing had
transpired dunng the few days between their hire and
Cook's allegedly belated articulation of their status to
have caused a change of mind on Cook's part. Cook had
discussed the Union with Watkins prior to interviewing
both Stearman or Pomeroy. He did not again converse
with Watkins about the Union until after the time Stear-
man and Pomeroy assert they were informed by Cook
that their employment was temporary. Thus, Cook had
no reason for suddenly changing his mind concerning the
nature of their employment in the few days that elapsed
between the hire of Stearman and Pomeroy and the time
he assertedly first told them they were temporary. Con-
vinced, as I am, that at all times Cook intended the em-
ployment of Stearman and Pomeroy to be temporary, I
credit his testimony and reject that of Stearman and
Pomeroy.
16 The foregoing is predicated upon the undisputed testimony of Arthur
question, it was a practice of the store to hire additional temporary em-
Berland During the conversation Selover stated that he personally had no
ployees in order to handle the demand for back-to-school merchandise
doubt concerning the Union's majority status .
and for Halloween and Christmas merchandise which commences to ar-
t' Watkins also testified credibly that dunng the season of the year , in
rive in the store dunng the months of August and September
382
DECISIONS OF NATIONAL LABOR RELATIONS BOARD
Further, in face of the deficit which the Stanton store
was accumulating during 1966, there is no justification for
finding that Cook intended to retain either or both the em-
ployees as permanent employees and held out this
prospect to them.18
7. The discharge of Pomeroy and Stearman
On Saturday, September 24 Norra Pomeroy and Ola
Stearman were discharged by Alfred Cook. Stearman and
Pomeroy were informed of their respective discharges
during separate interviews which transpired on the morn-
ing of September 24 in the office of Alfred Cook. Stear-
man was called into the office first. Cook told her that the
work for which she had been hired had been completed
and that she had done a good job. Cook further stated that
if she had not found employment before Christmastime
he would welcome her back. Stearman responded by stat-
ing that she desired to find a regular job and that perhaps
she would go to work with her daughter at a nearby clean-
ing establishment.
Soon thereafter Cook spoke with Pomeroy in his office.
He informed Pomeroy that the work for which she had
been employed had been completed and that there was no
more work for her.19 Cook stated that Pomeroy had done
an excellent job and that if she had not found employment
before the Christmas season he would employ her at
Chnstmastime. Pomeroy observed that she needed work
because she had to pay for some furniture which she had
purchased. Cook stated that she could remain until Wed-
nesday, September 28 if she desired. Additionally, Cook
suggested two places of possible employment, and
thereafter gave her a written recommendation.20
Alfred Cook credibly testified that he chose his Christ-
mas help from among applicants who had made applica-
tion for holiday work just prior to the Christmas season
which commenced in November. He further testified
credibly he did not contact either Stearman or Pomeroy
to offer them Christmas employment. He also testified
that he had learned that Stearman and Pomeroy had ob-
tained employment subsequent to their discharge.21
8. The employment status of Barbara Cook
Barbara Cook, the wife of manager Alfred Cook, was
initially employed by the Respondent at its Stanton store
in May 1966. She was employed in the job category sales-
clerk and worked on an "as needed" basis. She was
hourly paid but received none of the employee benefits
accorded other permanent employees. During normal
store operating hours Barbara Cook spent the majority of
her time straightening counter stock. In addition, while
working on the sales floor, she greeted and assisted
customers,
and,
during
busy periods,
waited
on
customers at the checkout counter. She occasionally
operated the cash register. Moreover, during normal
operating hours, Barbara Cook had occasion to work in
the stockroom and also to perform miscellaneous main-
tenance and cleanup duties. Further, occasionally, as
required, she made up the weekly payroll and performed
other clerical duties.
Moreover, outside of normal operating hours, Barbara
Cook worked with her husband during late evening hours
accomplishing certain renovating and rejuvenating work
designed to improve the physical condition of the store;
and also worked during these hours to accomplish a
physical transfer and rearrangement of merchandise and
store fixtures. Additionally, during nonoperating hours
Barbara Cook decorated windows.22
Barbara Cook did not conform to the regularly
scheduled lunch and break schedule required of other
personnel and her working hours during normal store
operating hours followed no established schedule. In this
regard, they were uniform neither with respect to report-
ing time or number of hours worked per day.
On the days in which she worked Barbara Cook often
reported to work at 10 or 10:30 a.m. with her husband,
whereas the store opened at 9:30 a.m. She worked more
frequently after 6 p.m. than she did during daytime
operating hours.23 On many occasions, as found above,
Barbara and Alfred Cook worked past closing hours until
10 or 12 p.m. performing store-related tasks .24
11 I credit the testimony of Alfred Cook and Jack Watkins to the effect
that just prior to the hire of Stearman and Pomeroy, Watkins hired two
stockboys to commence the cleanup work he regarded as essential to be
performed in the Stanton store I further credit the testimony of Cook to
the effect that these stockboys performed work in the upstairs portion of
the store and not on sales floor where Stearman and Pomeroy later per-
formed their duties. Additionally, I credit Cook's testimony to the effect
that during the tenure of Pomeroy and Stearman an additional stockboy,
Jerry Lindenstem, was employed as a replacement for one of the previ-
ously hired stockboys who resigned after working during one pay period
only Further, I credit the testimony of Cook that while Stearman and
Pomeroy were in the employ of the Company, Roberta Fell was hired to
perform certain clerical work on company records
" While, in addition to their principal tasks of moving counters and
relocating and sorting stock, both Stearman and Pomeroy assisted
customers in their selection of merchandise , Pomeroy , unlike Stearman,
appears to have worked at the cash register on occasions
20 The foregoing is predicated upon the credited testimony of Alfred
Cook To the extent that the testimony of Nona Pomeroy and Ola Stear-
man is inconsistent with that of Cook , I do not credit it Specifically, I do
not credit the testimony of either Stearman or Pomeroy to the effect that
in discharging them Cook asserted that the reason for their discharge was
Union related "trouble" that had arisen in the store In the circumstances,
as Cook had been instructed by his superior , Jack Watkins, to remain
silent in his discussions with employees regarding the question of union
representation, and as the Company had refrained theretofore from engag-
ing in conduct calculated to discograge union activity on the part of em-
ployees, it is inherently implausible , in my view , to assume that Cook
would have so blandly engaged in the indicting behavior attributed to him
by Pomeroy and Stearman Moreover , militating against Pomeroy's ver-
sion of the discharge interview , is the testimony of Pomeroy herself in-
dicating that Cook offered her 3 days additional employment as a means
of softening the financial impact of her discharge. It is quite unlikely that
this offer of further employment would have been articulated in conjunc-
tion with a confession of antiunion motivation borne of a strategem
designed to deplete the unit of union followers
2 1 Cook was told by Stearman's daughter that Stearman was employed
and was contacted by telephone by Pomeroy who was soliciting subscrip-
tions for a newspaper
2 2 The foregoing is predicated upon a composite of the credited
testimony of Barbara Cook, Alfred Cook, and Robert Brooks I rely on
the testimony of Robert Brooks to the extent that it supports the
testimony of Barbara and Alfred Cook relative to their late evening and
after hour work
23 During the months of May through August 1966 the store remained
open until 9 p.m 5 days per week Prior to May and commencing in Sep-
tember the store remained open only 1 night per week until 9 p in. On the
other days the store closed at 6 p in.
24 The foregoing is predicated upon a composite credited testimony of
Barbara and Alfred Cook. I have considered the testimony of Evelyn
Rickett and Laura Vanderwaal concerning the daytime working hours of
Barbara Cook and conclude that it is not inconsistent with the testimony
of Barbara and Alfred Cook
SPROUSE-REITZ CO., INC.
383
The payroll records of Respondent reveal that Barbara
Cook was paid during the designated payroll period for
the following number of hours:
Payroll Period Ending
Hours
5/7
24
5/14
24
5/21
18
5/29
40
6/4
40
6/11
24
6/18
24
6/25
24
7/2
15
8/27
3
9/3
24
10/1
40
10/8
32
10115
40
10/23
40
10/29
40
11/5
32
11/12
16
11/19
40
11/26
19
12/10
40
12/17
24
12/24
8
Alfred Cook credibly testified that during the period
July 19 through 30 Barbara Cook did not work because
of the illness of their infant daughter. He further credibly
testified that during the payroll period August 6 through
20 he and his wife were on vacation. Additionally he
testified that during the 3-week period September 10
through 24 Barbara Cook was ill and did not work.
Laura Vanderwaal, whose duty it was to keep payroll
records for certain of the employees - but not for Barbara
Cook - credibly testified she disputed the Company's
practice of compensating Barbara Cook for more hours
than she actually worked. Subsequently, according to Al-
fred Cook he explained to employees Cullum and Rickett
that, with knowledge of higher management, Barbara
Cook was being paid for 40 hours work as a means of
compensating him and his wife for their overtime work .2.5,
A composite of the credited testimony of record
reveals that during normal store operating hours when
Barbara Cook would work she frequently brought her in-
fant daughter to the store with her. When Barbara Cook
worked on the stock or in the store office the infant was
kept in a crib in the stockroom. When Barbara Cook was
performing tasks on the sales floor of the store, the infant
was kept in a crib near her.
Although during duty hours other female store person-
nel wore dresses or skirts and blouses, on many occasions
when she was working on stock during normal store
operating hours Barbara Cook wore slacks.26
9. The employment status of Laura Vanderwaal
Laura Vanderwaal commenced working for Respond-
ent on November 15, 1965. She last worked in Re-
spondent's employ during the payroll period ending
August 6, 1966. During the term of her employment by
Respondent she was employed as a general salesgirl and
cashier.
During the payroll period ending August 6 Vanderwaal
was credited for 16-1/2 hours regular worktime and for
23-1/2 hours sick leave. Upon her termination she was
compensated for 40 hours.
Alfred Cook credibly testified that during the period of
August 1 through 4 he was out of the store attending a
store opening in a nearby community. He testified that
upon returning to his home on the evening of August 4 he
was informed by his wife that Laura Vanderwaal had
failed to open the store at 10 a.m. on Thursday morning
as it had been her responsibility to do. Alfred Cook
testified further that on the following day, Friday, August
5, Vanderwaal was not at work and he was informed by
one of the employees that Vanderwaal was ill. Cook
further testified that on the morning of August 5 he filled
out an employee termination slip for Vanderwaal and
caused a salary check to be prepared reflecting her pay
for the week ending August 6 and a week's vacation due
Vanderwaal. He further testified that he informed Jack
Watkins of Vanderwaal's termination the following morn-
ing, Saturday, August 6, and that the termination forms
were forwarded to the Portland home office on Saturday,
August 6.
On the other hand, Laura Vanderwaal testified that she
became ill during the morning of Friday, August 5, and
that at noon or I p.m. informed Alfred Cook of her illness
and requested the balance of the day off. She testified that
Cook granted her this time off and also informed her that
if she were not feeling well on the following day, Satur-
day, August 6, a normal working day for her, she need
not report to work.
Vanderwaal did not work on Saturday, August 6, and
reported to work on August 8 at the normal work com-
mencement time. Soon after her arrival, and before she
commenced work, Cook informed her that she was being
discharged for having failed to open the store on
Thursday at 10 a.m. as instructed. Cook presented her
with her final paycheck.
Upon a careful evaluation of the evidence of,record, I
am convinced that the testimony of Alfred Cook more ac-
curately reflects the events that transpired during this
period of time than does that of Laura Vanderwaal. Ini-
tially, the evidence establishes that Vanderwaal was
credited with 23-1/2 hours sick leave during the payroll
period ending August 6. She did not work on Saturday.
On Friday, the store remained open for approximately
11-1 /2 hours in accordance with the established Friday
operating schedule. As Vanderwaal conceeded she took
no sick leave early in the week of August 6, only by ab-
senting herself on Friday and Saturday, and for a portion
of the day on Thursday, could Vanderwaal have been en-
titled to 23-1/2 hours of sick leave compensation during
the payroll period ending August 6. Thus, in view of the
foregoing, and in view of the further certitude shown by
Alfred Cook with respect to the events that transpired on
August 5 - including his conviction that he did not speak
with Vanderwaal on that day and did not have occasion
to grant her permission to leave work - I am convinced
25 Evelyn Rickett testified that Cook asserted his wife was being com-
26 She also wore slacks while decorating the store windows during off
pensated for 40 hours work as a means of reimbursing him for his over-
duty hours
time
384
DECISIONS OF NATIONAL LABOR RELATIONS BOARD
that, contrary to the testimony of Laura Vanderwaal, she
left work due to illness on Thursday, August 4, when
Cook was away from the store, and did not report to work
again until August 8.
Additionally, there is no evidence of record to cast
doubt on the testimony of Alfred Cook to the effect that
he prepared the termination slip for Vanderwaal on Au-
gust 5. I find that he did and I further find that he in-
formed Jack Watkins of Vanderwaal's termination on the
morning of August 6 as he and Watkins testified.
However, I conclude and find that it was not until
sometime on August 6 that the payroll voucher for Van-
derwaal was prepared. I do not accept the testimony of
Alfred Cook to the effect that the voucher was prepared
on August 5, for the voucher reflects sick leave pay for a
period encompassing the Saturday, August 6, date on
which Vanderwaal did not work because of illness. It
would thus have been impossible for Cook to have
prepared the voucher on Friday, August 5, and to have
included the sick leave pay data. However, I do credit
Cook's testimony to the effect that the voucher and
paycheck presented to Vanderwaal had been prepared
prior to her discharge interview on the morning of August
8.
C.
Conclusions
1. The alleged discriminatory discharges
I conclude and find that Norra Pomeroy and Ola Stear-
man were terminated not because they had engaged in
union activity but solely because the temporary work for
which they had been employed had been accomplished
and there remained no need for their services.
I have found that both Pomeroy and Stearman were in-
formed when they were interviewed for hire that their
work was to be of a temporary nature and was expected
to last a maximum of 4 weeks. I have further found, as a
fact, that they were employed as temporary employees.
I further find that when on or about September 22 or 23,
Jack Watkins instructed Alfred Cook to terminate the
employment of Pomeroy and Stearman, the stock and
counter work for which they had been employed had been
accomplished.
But despite these findings there remains the questions
whether Respondent had knowledge of the card-signing
activity of either Pomeroy or Stearman; whether, as con-
tended by the General Counsel, Pomeroy had attained
the status of a permanent employee and was discharged
to serve antiunion purposes; and whether, assuming a
negative resolution of the last stated issue, the termina-
tion of either Pomeroy or Stearman, or both of them, from
their temporary employment was accelerated to serve an-
tiunion purposes.
With respect to the issue of knowledge the evidence
establishes that on September 15 Respondent's agent,
Selover, was told by Union Representative Giffan that
the Union had signed up the "new hires." Pomeroy and
Stearman were the full-time employees in this category;
although the reference could, as well, have applied to the
regular, part-time employee Leabo. On or about Sep-
tember 22 or 23 Watkins spoke with Selover by
telephone. Selover requested Watkins to send him a list
of all permanent employees. During the conversation
Watkins indicated that all "extra employees" had been
"eliminated." At approximately this point in time the
decision to terminate Pomeroy and Stearman was made.
It is the General Counsel's contention that Giffan's ad-
visory to Selover concerning the sign up of "new hires"
- communicated to Watkins by Selover on or about Sep-
tember 23 - actuated Watkins' decision to terminate
Pomeroy and Stearman.
I view the record differently. If it is assumed - there
being no direct support for a finding otherwise - that on
September 22 or 23 Selover conveyed to Watkins Gif-
fan's assertion concerning the signing of the new hires,
the unrefuted evidence of record, brought out on cross-
examination by the General Counsel, and buttressed by
statements in the pretrial affidavit of Watkins, is, none the
less, to the effect that, on September 22 or 23 Watkins in
informing Selover that all temporary employees had been
"eliminated" from the unit spoke in terms of a fait accom-
pli." Clearly, Watkins' statement to Selover, cast in the
past tense, requires a finding, which I make, that before
his September 22 or 23 conversation with Selover,
Watkins had issued instructions to Cook to terminate
Pomeroy and Stearman. Thus, Watkins' instructions
to Cook could not have been predicated upon the in-
formation
concerning
the
card-signing
activities
Of "new hires," osteusmly communicated to him by
Selover during their conversation of September 22 or 23.
Accordingly, the General Counsel's claim that Respond-
ent discharged Pomeroy and Stearman as an antiunion
device is substantially diluted.
To be certain, Respondent had general knowledge of
union activities extant among the employees, but, in my
view of this record, including my conviction that
Pomeroy and Stearman were hired as temporary em-
ployees to accomplish work of no continuing and recur-
ring nature, it is not likely, absent knowledge of the card-
signing
activity
of Pomeroy and/or Stearman, that
Respondent would consider it necessary to take punitive
action against either of them as a deterrent to the Union's
organizational efforts, or in order to defeat the Union's
claim of majority status.
With respect to the alleged change in the status of
Pomeroy from temporary to permanent employment, I
find that the evidence does not sustain the contention of
the General Counsel. Initially, the testimony of Pomeroy
regarding the alleged assurances given her by Cook con-
cerning her future employment status is convincingly de-
nied by Cook and gains no substantial support from the
objective evidence of record. The evidence concerning
her purchase of furniture, assertedly in reliance upon
Cook's assurances of permanent employment, derogates
from rather than strengthening the General Counsel's
case. Thus, Pomeroy testified that approximately 2
weeks after her August 29 hire, Cook for the first time in-
dicated her employment would be permanent and thus
gave her assurances which caused her the next day to
order furniture for her home. The record reveals that
within 5 days of being employed Pomeroy ordered ap-
proximately $1150 worth of furniture and 4 days
thereafter placed an additional order for $600 worth of
27 Assessing this statement in context with Selover's request for a list of
permanent employees and of Watkins ' subsequent act of supplying such
a list, the reference to the "elimination" of temporary employees assumes
no antiunion connotation but merely connotes a factual categorizing and
differentiation between employees who were considered permanent and
therefore includable in the unit and those whose employment was fleeting
and not includable.
SPROUSE-REITZ CO., INC.
furniture. Thus, viewing Pomeroy's own testimony in its
most favorable light, it is clear that when she made these
purchases she had received no assurances of permanent
employment from Cook. The conclusion required is that
her purchase of furniture bore no causal relationship to
her employment by Respondent and carries no substan-
tial probative weight in resolving favorably to the General
Counsel the conflict between the testimony of Cook, on
the one hand, denying any promise of permanent employ-
ment to Pomeroy, and Pomeroy's testimony, on the
other.
The General Counsel further contends that with the
discharge of Vanderwaal from her position of full-time
salesclerk, there arose a need for the services of Pomeroy
to augment the partially depleated sales staff. However,
this overlooks the evidence revealing that after Van-
derwaal's discharge, Rose Marie Leabo was employed on
a part-time basis and during October and November
worked, in terms of hours, at a level in excess of 25 per-
cent of the 40 hours per week previously worked by Van-
derwaal; and the evidence revealing that Barbara Cook
began to work a significantly greater number of daytime
hours soon after Vanderwaal's termination. The increase
in hours worked by Barbara Cook was of even greater im-
pact in meeting Respondent's manpower needs as it oc-
curred at a time when the total store operating hours per
week had been reduced by discontinuation of the late-
closing practice that had been in effect during Van-
derwaal's tenure.
Contrary to the General Counsel, I do not view the
continued employment of Leabo- who was in Respond-
ent's employ for all of the payroll periods during which
Pomeroy worked-and the greater utilization of Barbara
Cook's services as indicative of Pomeroy's intended per-
manent status. On the record before me, only the rarest
exercise of occult power or the unwarranted elevation of
surmise to the status of fact would justify a substitution of
judgment for that reached by Respondent as to the best
means of filling its manpower needs. That management
may have preferred to operate through use of a regular
part-time employee and through increased use of the ser-
vices of the manager's wife, Barbara Cook, rather than
through the use of a full-time employee is reasonable
when viewed in the light of Respondent's profitless
operations and the limitations imposed by its established
wage/gross sales ratio.
I am further unable to find merit in the General Coun-
sel's contention that the termination of Stearman or
Pomeroy was accelerated out of antiunion considera-
tions. The record strongly supports the conclusion that
the cleanup work for which both were employed had been
accomplished. The terminations occurred at a normal in-
terval, at the end of a pay period, and at the conclusion of
a workweek. The failure of Respondent to give advance
notice of the impending termination, viewed in context of
record evidence showing the absence of further need for
the services, and in context of its previous instructions to
both employees that their employment was for a 3- to 4-
week period, carries little impugning affect.
Nor do I find Respondent's failure to subsequently
offer either Stearman or Pomeroy Christmas work to be
indicative of a hostility toward them. Cook had reason to
believe each had obtained other employment; and neither
Stearman nor Pomeroy approached Cook in search of
Christmas work. Considering that Cook made his selec-
385
tion of Christmas help from among applicants who had af-
firmatively indicated a desire for employment, the great
number of temporary employees employed by Respond-
ent in its variety store operation, and the frequency of
turnover among part-time personnel, I am not persuaded
that Cook's failure to take the initiative in locating Stear-
man and Pomeroy and offering them interim, temporary
Christmas work may be viewed as persuasively suggest-
ing antiunion motivation in the discharge actions here in-
volved.
I find that the temporary employment of neither Stear-
man nor Pomeroy was prematurely terminated to serve
antiunion purposes. I further find that their respective ter-
minations did not violate Section 8(a)(1) or (3) of the Act.
2. The alleged refusal to bargain
a.
The composition of the unit
On August 6, at which time I find the Union perfected
its written demand on Respondent for recognition, em-
ployees Cullum, Rickett, Finefrock, Vanderwaal, and
Barbara Cook were in Respondent's employ. I find that
Vanderwaal was carried on Respondent's payroll records
until the close of business on August 6, and is to be in-
cluded in the collective-bargaining unit in which the
Union sought recognition. On the other hand, I find that
Barbara Cook must be excluded from the unit.
My conclusion with respect to Laura Vanderwaal is
predicated upon evidence revealing that she was compen-
sated for a full 40-hour week which included pay for
Saturday, August 6. 1 conclude therefore that in making
up the termination slip it was Cook's intention to have
Vanderwaal's termination take effect at the close of busi-
ness on Saturday, August 6, and, that the usual operative
effect of the termination slip which on August 5, Alfred
Cook completed was to be postponed. Contrary to the
testimony of Alfred Cook, if it were indeed the intention
of Cook to have Vanderwaal's termination become effec-
tive immediately upon completion of the termination slip,
it seems apparent that he could have easily provided for
the immediate tolling of Vanderwaal's compensation ef-
fective August 5 and, upon completion of her final payroll
check, paid her for a period coinciding with the alleged
point of termination He did not do this. Thus I am con-
vinced that Cook decided on August 5 to terminate Van-
derwaal but to carry her to the end of the pay period
which ended on August 6. When Vanderwaal did not re-
port to work on August 6, Cook nonetheless adhered to
his decision deferring only the rendering of notice to Van-
derwaal who could not be reached by telephone.
Barbara Cook, as wife of the store manager, is ex-
cluded from the unit because of the special status as an
employee which she enjoyed and which dictates her ex-
clusion on policy grounds .L11 Thus, not only does she
enjoy a latitude and flexibility in her lunch hour, and in
her reporting and quitting time, but her hours of work per
week vary and she is permitted personal accomodations
not granted other employees to care for her infant on
store premises during working hours and to interrupt her
work schedule to do personal shopping. Moreover, part
of her duties are of a clerical and maintenance nature dis-
similar to the duties of employees in the unit and she does
not share in the employee benefits accorded other per-
manent employees in the unit. Additionally she possesses
11 See International Metal Products Company, 107 NLRB 65
386
DECISIONS OF NATIONAL LABOR RELATIONS BOARD
special responsibilities, not shared by other employees,
to devote her efforts affirmatively to the creation of
customer good will and to directly assist the manager in
performing work tasks closely related to his managerial
responsibilities and interests, and not directly related to
the work tasks of other unit employees.20
b.
The Union's majority
The Union's demand letter of August 4 was received
by Respondent's labor relations advisor, Frank Selover,
on August 6, and thus the Union's majority is to be mea-
sured from the latter date.30 On August 6 the appropriate
unit in which the Union sought recognition and bargain-
ing was comprised of Irene Cullum, Evelyn Rickett,
Laura Vanderwaal, and Richard Finefrock. All, save
Finefrock, had executed valid authorization cards. Thus,
when Respondent's agent, Frank Selover, received the
Union's demand, the Union commanded majority status.
Selover did not communicate the Union's demand to any
representative of management until early September. On
September 15 the Respondent informed the Union that
it was declining recognition and desired a Board election.
However, at this time the Union reiterated its bargaining
demand. But, in a unit comprised of four employees -
Cullum, Rickett, Finefrock, and Rose Marie Leabo'31 the
Union
commanded
only
two
authorizations.32
Accordingly, it lacked a majority, and was, as a con-
sequence no longer entitled to recognition unless its loss
of majority was attributable to unlawful conduct of
Respondent.33
c.
The Respondent's good faith declination
The Respondent's alleged refusal to bargain collective-
ly in good faith with the Union in accordance with the
requirements of Section 8(d) of the Act, arises in a con-
text free of accompanying unfair labor practices or unlaw-
ful conduct on the part of Respondent calculated to inter-
fere with employee organizational rights or designed to
undermine or defeat the Union.
There had been no prior bargaining relationship involv-
ing Respondent at its Stanton store and the Union. There
is no substantial credible evidence that Respondent at
any time after learning of the Union's organizational ef-
forts, or after receiving a bargaining demand from the
Union even broached the subject of unionization with its
employees.
The unit in which the Union sought recognition and
bargaining was a small one. Theoretically comprising the
unit on August 6, at the time the original bargaining de-
mand was communicated, was the store manager's wife,
Barbara Cook; a personal friend of the store manager,
Richard Finefrock; a long-time employee of the store,
Irene Cullum; an employee whose tenure had approxi-
mately 9 months, Laura Vanderwaal; and an employee of
some 10 months standing, Evelyn Rickett. By September
15 these employees - absent Laura Vanderwaal who had
been lawfully terminated - were joined by a newly hired
regular part-time employee, Rose Marie Leabo and by
two temporary employees Ola Stearman and Norra
Pomeroy.
When the Union's demand letter was received by
Respondent's labor relations advisor on August 6, he im-
mediately endeavored to contact Jack Watkins, the Com-
pany's divisional manager and the responsible company
official to whom he would logically convey such informa-
tion. Watkins, whose supervision of some 23 retail stores
requires frequent absence from his office, returned
Selover's call on August 10. Selover informed Watkins
that the Union was endeavoring to organize the em-
ployees at the Stanton store. Watkins expressed surprise
and promised to investigate the claim and speak further
with Selover. Watkins was disadvantaged in his opportu-
nity to accurately assess the extent to which the Union
had successfully marshalled employees' support by the
absence on vacation of the store manager, Alfred Cook.
Upon the August 24 return from vacation of Cook, how-
ever, Cook and Watkins discussed the matter. Cook dis-
claimed knowledge of dissatisfaction among his em-
ployees and discounted the Union's claim of a following.
Cook and Watkins decided upon a course of quiet
vigilance designed to best provide them with an informed
insight into the extent of the Union's following among the
employees. They did nothing to undermine the Union or
derogate from its following. Thereafter, at a time when
the Union had again contacted Selover in order to ascer-
tain the Company's position with respect to the Union's
bargaining demands, Selover again contacted Watkins
and for the first time informed him the Union demanded
recognition. Watkins was insistent upon a Board election.
However, Cook and Watkins immediately undertook a
detailed discussion and evaluation of the employee com-
plement from the standpoint of the likelihood of the union
allegiance of each individual employee. They eliminated
two employees in the small contingent - one on the basis
of her marital relationship to the manager and another
upon the basis of his friendship with the manager.
From their analysis, Watkins and Cook omitted Van-
derwaal whose lawful termination had so closely coin-
cided in time to the receipt of the Union's demand letter.
" Wagner's Food Mart, 146 NLRB 1650, 1653, 1656-57 , See also
Sullivan Surplus Sales, Inc, 152 NLRB 132, 154-155 Cf Payless Drug
Stores, 150 NLRB 518, 521, Giordano Lumber Co, Inc, 133 NLRB
205
Allegheny Pepsi-Cola Bottling Company, 134 NLRB 388
31 I find Leabo to have been a regular part- time employee includable in
the unit The General Counsel at the hearing and in his brief asserted her
proper inclusion and evidence of record reveals that her employment both
from the standpoint of continuity and of hours worked warrant her inclu-
sion
32 Although Norra Pomeroy and Ola Stearman had signed authonza-
tion cards on September 8, they were temporary employees and were not
includable in the unit Moreover, the fortuitous affect of their lawful ter-
mination upon the Union's majority may not be assessed adversely
against Respondent Hvidsten Transport, 82 NLRB 1236
13 Joy Silk Mills, Inc , 85 NLRB 1263, enfd in relevant part, 185 F 2d
752 (C A D C.), cert denied 341 U S 914
No purpose is served by postulating the ultimate decision which would
be dictated by findings contrary to those here made , i e , that Pomeroy and
Stearman , or either of them , were permanent employees , or were
discharged for antiunion purposes Suffice to find that , under the facts of
record, as I view them , the obligation , if any, upon Respondent to recog-
nize and bargain with the Union , finds it predicate in the August 6 demand
of the Union , transmitted to management in early September , and under,
by view of the facts , was neither amplified nor diminished by the events of
September 15, or by the fortuity of the union majority status as of that
date This is so because, clearly , whatever the effect of the failure of
Selover to communicate to management before early September the
Union's demand for recognition and bargaining , by early September- the
first few days thereof- prior to the discharge of either Pomeroy or Stear-
man, management did become fully apprised of it, and accorded the
Union's demand legal effect of a continuing nature
SPROUSE-REITZ CO., INC.
387
Her unit placement posed a close legal issue; patently not
of the variety so simple of resolution as to cast doubt
upon the good faith of the evaluators. Additionally they
concluded that the long tenure of Cullum and her outward
manifestations
of equanimity and job satisfaction,
rendered her favoritism of the Union unlikely. Upon
these evaluations Watkins and Cook reached the conclu-
sion that the Union could not command a majority and
that an election should resolve the issue.
This was communicated to Selover, and the following
day, on September 15, Selover summarized manage-
ment's position in his conversation with Giffan. How-
ever, on behalf of the Union, Giffan reiterated its right to
recognition as the majority representative of the em-
ployees in the unit. The parties next conversed on Sep-
tember 26. Then, for the first time, Giffan disclosed the
basis of the Union's majority claim by designating by
name the employees who had signed authorization cards.
Three of the five card signers had been terminated. Each
for cause; two because they were temporary employees
only. The Respondent, in response, reiterated that the
question of the Union's majority should be decided by an
election. The Union did not further attempt to document
the validity of its claim of majority status. No face-to-face
meeting of management or counsel with union representa-
tives was held where cards were proferred.
Upon the foregoing, I conclude and find that Respond-
ent did not violate Section 8(a) (5) and (1) of the Act. In
Aaron Brothers Company of California,
158 NLRB
1077, 1078 the Board held:
While an employer's right to a Board election is
not absolute, it has long been established Board pol-
icy that an employer may refuse to bargain and insist
upon such an election as proof of a union's majority
unless its refusal and insistence were not made with
a good-faith doubt of the union's majority. An elec-
tion by secret ballot is normally a more satisfactory
means of determining employees' wishes, although
authorization cards signed by a majority may also
evidence their desires. Absent an affirmative show-
ing of bad faith, an employer, presented with a
majority card showing and a bargaining request, will
not be held to have violated his bargaining obligation
under the law simply because he refuses to rely upon
cards, rather than an election, as the method for
determining the union's majority.
Here, the Trial Examiner, in effect, found that
good faith was missing because Respondent did not
offer any evidence "warranting a conclusion that the
Union's claim [of majority] was inaccurate or un-
supportable." But where, as here, there is no prior
bargaining relationship between the parties, as the
Board recently held in John P. Serpa, Inc., it is the
General Counsel who must come forward with
evidence and affirmatively establish the existence of
such bad faith.
Whether an employer is acting in good or bad faith
in questioning the union's majority is a determination
which of necessity must be made in the light of all the
relevant facts of the case, including any unlawful
conduct of the employer, the sequence of events, and
the time lapse between the refusal and the unlawful
conduct.
In my view of this zase, the only evidence adduced by
the General Counsel from which bad faith might be in-
ferred is the time lapse between the advice of Selover to
Watkins that the Union was seeking recognition and de-
manding bargaining negotiations and Respondent's first,
definitive refusal communicated approximately 2 weeks
later on September 15.34
As Selover had no independent authority on behalf of
Respondent to grant or to withhold recognition, and as
the managing agents possessed of such authority were
blameless in their failure prior to early September to
become fully apprised of the full measure of the Union's
August 6 communication, I find no warrant for attribut-
ing to Respondent bad faith during the period of August
6 through early September arising from their failure to
respond to the Union's August 6 demand.
Moreover, the failure of Respondent to reply dunng the
2-week period preceeding September 15 is not, in my
view, indicative of bad faith. Upon becoming aware of the
nature of the Union's demands, Watkins, who is charged
with oversight and labor relations responsibility for 23
stores, met with Cook and undertook an in depth evalua-
tion of potential sources of union allegiance among the
employees. Upon reaching a conclusion in this regard, the
Union was contacted and advised that its claim to majori-
ty status was considered specious and an election was
desired. Respondent acted with reasonable promptness
for so far as Watkins and Cook were aware, the Union
had established no deadlines and Respondent had com-
mitted itself to none. Management was entitled to a
reasonable time in which to assess the validity of the
Union's claim,35 and in the circumstances, absent urgen-
cy dictating priority status, the serious business of union
recognition received the timely attention of management.
Moreover, precedent does not dictate a finding of bad
faith merely upon a showing by the General Counsel of a
significant time lapse between bargaining demand and
refusal. The Serpa case36 is not to the contrary. While, in
Serpa a time lapse was a decisional factor, it is clear that
the decision of the court in Serpa turned on facts render-
ing Serpa quite distinguishable from the case at bar.
Beyond the absence of deadline considerations adverted
to above, here, contrary to Serpa, the Union had made no
significant card proffer, and the Respondent had engaged
in no inspection of the cards nor did it indicate its ac-
ceptance, tacitly or otherwise, of the Union's claim of
majority.
Moreover, here, unlike Serpa,
immediately
upon becoming fully apprised of its legal position Respon-
dent without delay communicated its response to the
Union and urged a Board election. The delay between
early September and September 15, which I find was oc-
casioned solely in order to provide management with a
reasonable opportunity for guaging the accuracy of the
Union's claim of a following, was punctuated by no
hostile action suggesting or disclosing an antiunion mo-
tive. When, on September 26, Giffan made what may be
characterized as a verbal "card showing," by specifying
the identity of employee card signers, the Respondent
defined in detail the basis - reasonable in my view - for its
34 Watkins' insistence upon an election as a prerequisite to recognition
municate a rejection of the demand to the Union until after his assessment
communicated to Selover dunng their early September conversation was
had been completed
not vacuous for he had discussed the Union 's strength with Cook
35 See Retail Clerks Union, Local 1179, Retail Clerks International As-
Moreover , it is clear his mind was not closed on the subject of recognition
sociation , AFL-CIO v. N L R B , 376 F 2d l86 (C A 9)
because he undertook an analysis of employee sentiment and did not com-
36 Supra, in 35
336-845 0 - 70 - 26
388
DECISIONS OF NATIONAL
insistence upon an election. It is no moment here that the
analysis upon which the declination of recognition was
predicated may have been faulty; it is pertinent merely to
find that it was not actuated or premised upon bad faith.
In view of the foregoing and upon the record as a
whole, I find no basis for concluding that the Respondent
rejected the collective-bargaining principle and sought to
gain time in which to undermine the Union.37 Further, I
impute no bad faith to Respondent arising from its un-
willingness to accept at face value, the Union's card-
based claim to majority status articulated in its August 4
demand letter and more specifically described during the
September 26 telephone conversation between Giffan
and Selover.3S Thus, I conclude and find that in the
3' Hammond & Irving Incorporated, 154 NLRB 1071, cf Joy Silk
Mills, Inc, supra
a" Cf Fred Snow, Harold Snow and Tom Snow, dlbla Snow & Sons,
LABOR RELATIONS BOARD
absence of accompanying unfair labor practices revealing
bad faith or antiunion hostility on the part of Respondent,
and in the absence of a prior, established bargaining rela-
tionship between the parties, the General Counsel has
failed to adduce proof which supports a finding of bad
faith on the part of Respondent in insisting upon the
Board-conducted election as a means preferable to the
reliance upon authorization cards for resolving the claim
of majority advanced by the Union.39
RECOMMENDED ORDER
Upon the foregoing, I shall recommend that the com-
plaint be dismissed in its entirety.
134 NLRB 709, enfd 308 F 2d 687 (C A. 9)
a" Aaron Brothers Company ofCalifornia, supra
11